The Companies Act 2006 (Distributions of Insurance Companies) Regulations, SI 2016/1194, set out a new methodology for insurers to segregate life and non-life business, following the implementation of the EU ‘Solvency 2’ directive, to ensure that firms only make distributions out of realised profits. Under the new rules, the concept of a ‘long-term fund’, as contained in Companies Act 2006, can no longer be used. The regulations come into force on 30 December 2016 and have effect for distributions made on or after that date by reference to relevant accounts prepared for any period ending on or after 1 January 2016. HM Treasury consulted on a draft of the regulations between October and November 2016.
The Companies Act 2006 (Distributions of Insurance Companies) Regulations, SI 2016/1194, set out a new methodology for insurers to segregate life and non-life business, following the implementation of the EU ‘Solvency 2’ directive, to ensure that firms only make distributions out of realised profits. Under the new rules, the concept of a ‘long-term fund’, as contained in Companies Act 2006, can no longer be used. The regulations come into force on 30 December 2016 and have effect for distributions made on or after that date by reference to relevant accounts prepared for any period ending on or after 1 January 2016. HM Treasury consulted on a draft of the regulations between October and November 2016.
