INSURANCE BUSINESS (SUPERVISION OF INSURANCE 
AND REINSURANCE UNDERTAKINGS IN A GROUP) [S.L.403.17 1
SUBSIDIARY LEGISLATION 403.17
INSURANCE BUSINESS (SUPERVISION
OF INSURANCE AND REINSURANCE 
UNDERTAKINGS IN A GROUP) REGULATIONS
1st January, 2016*
LEGAL NOTICE 410 of 2015, as amended by Legal Notices 63 of 2017
and 278 of 2021.
Citation and scope. 1. (1) The title of these regulations is the Insurance Business
(Supervision of Insurance and Re insurance Undertakings in a
Group) Regulations.
(2) The purpose of these regulations is to implement in part
Title III of the Solvency II Directive.
Interpretation. 2. (1) In these regulations, unless the context otherwise
requires -
Cap. 403. "the Act" means the Insurance Business Act;
"authorised insurance undertaking" means an undertaking whose
head office is in Malta, which has received authorisation pursu ant
to article 7 of the Act to carry on direct general business and , or
long term business, and includes an undertaking authorised to c arry
on direct and reinsurance business;
"authorised reinsurance undertaking" means an undertaking
whose head office is in Malta, which has received authorisation
pursuant to article 7 of the Act to carry on business restricte d to
reinsurance;
"college of supervisors" mean s a permanent but flexible
structure for the cooperation, coordination and facilitation of
decision making concerning the supervision of a group;
"Directive 2002/87/EC" means Directive 2002/87/EC of the
European Parliament and of the Council of the 16 December 2002
on the supplementary supervision of credit institutions, insura nce
undertakings and investment firms in a financial conglomerate a nd
amending Council Directives 73/239/EEC, 79/267/EEC, 92/49/
EEC, 92/96/EEC, 93/6/EEC and 93/22/EEC, and Directives 98/78/
EC and 2000/12/EC of the European Parliament and of the Council ,
as amended from time to time;
"European insurance undertaking" means an undertaking having
its head office in a Member St ate or an EEA State, other than
Malta, pursuing the activity of d irect insurance within the mea ning
of Article 2 of the Solvency II Directive, which has received
authorisation in accordance with Article 14 of the Solvency IIDirective;
"European regulatory authority" means the supervisory authority
or supervisory authorities as defined in Article 13 of the Solv ency
II Directive, designated by a Member State or EEA State, other
*see regulation 1(3) of these Re gulations as originally promulg ated.
2 [S.L.403.17INSURANCE BUSINESS (SUPERVISION OF INSURANCE 
AND REINSURANCE UNDERTAKINGS IN A GROUP)
than Malta, empowered by law or r egulation to supervise insuran ce
or reinsurance  undertakings;
"European reinsurance undertaking" means an undertaking
having its head office in a Member State or an EEA State, other
than Malta, pursuing business restricted to reinsurance within the
meaning of Article 2 of the Solvency II Directive which has
received authorisation in accordance with Article 14 of the
Solvency II Directive;
"group" means a group of undertakings that:
(a) consists of a participating undertaking, its subsidiaries
and the entities in which the participating undertaking
or its subsidiaries hold a participation, as well asundertakings linked to each  other by a relationship as
set out in Article 22 of Directive 2013/34/EU of the
European Parliament and of the Council of 26 June2013 on the annual financial statements, consolidated
financial statements and related reports of certain
types of undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council and
repealing Council Directiv es 78/660/EEC and 83/349/
EEC; or
(b) is based on the establishment, contractually or
otherwise, of strong and sustainable financial
relationships among those undertakings, and that may
include mutual or mutual-type associations, providedthat:
(i) one of those undertakings effectively exercises,
through centralised coo rdination, a dominant
influence over the decisi ons, including financial
decisions, of the other undertakings that are part
of the group; and
(ii)  the establishment and dissolution of such
relationships for the purposes of Title III of the
Solvency II Directive are subject to prior
approval by the group supervisor,
where the undertaking exercising the centra lised coordination s hall
be considered as the parent undertaking, and the other undertak ings
shall be considered as subsidiaries;
"group supervisor" means the supervisory authority responsible
for group supervision in accord ance with Article 247 of the
Solvency II Directive;
"insurance holding company" means a parent undertaking, which
is not a mixed financial holding company and the main business of
which is to acquire and hold participations in subsidiaryundertakings, where those subsid iary undertakings are exclusive ly
or mainly authorised insurance undertakings, authorised
reinsurance undertakings, European insurance undertakings,European reinsurance undertakings, or third country insurance
undertakings or third country reinsurance undertakings, at leas t one
of such subsidiary undertakings being an authorised insurance
INSURANCE BUSINESS (SUPERVISION OF INSURANCE 
AND REINSURANCE UNDERTAKINGS IN A GROUP) [S.L.403.17 3
undertaking, an authorised reins urance undertaking, a European
insurance undertaking or a Eur opean reinsurance undertaking;
"intra-group transaction" means any transaction by which an
authorised insurance undertaking, an authorised reinsuranceundertaking, a European insurance undertaking or a European
reinsurance undertaking, relies,  either directly or indirectly,  on
other undertakings within the sam e group or on any natural or l egal
person linked to the undertakings within the same group by clos e
links, for the fulfilment of an obligation, whether or not
contractual, and wheth er or not for payment;
"Malta Solvency II parent" mean s a parent undertaking with
head office in Malta which is: 
(a) an authorised insurance undertaking or an authorised
reinsurance undertaking which is a participating
undertaking in at least one authorised insurance
undertaking, authorised reinsurance undertaking,European insurance undertaking, European
reinsurance undertaking, third country insurance
undertaking or third country reinsurance undertaking;
(b) an insurance holding company; or
(c) a mixed financial holding company;
"method 1" means the method of calculating group solvency as
described in regulation 22;
"method 2" means the method of calculating group solvency as
described in regulation 25;
"mixed-activity insurance hold ing company" means a parent
undertaking, other than an authorised insurance undertaking, anauthorised reinsurance undert aking, a European insurance
undertaking, a European reinsurance undertaking, a third countr y
insurance undertaking, a third country reinsurance undertaking,  an
insurance holding company or a mixed financial holding company,
which includes at least one authorised insurance undertaking,
authorised reinsurance undertaking, European insuranceundertaking or European reinsurance undertaking among its
subsidiary undertakings;
"mixed financial holding com pany" means a mixed financial
holding company as defined in Article 2( 15) of Directive 2002/8 7/
EC;
Cap. 330."overseas regulatory authority" m eans an authority in a country
or territory outside Malta, that  is not a Member State or EEA S tate,
which exercises any re gulatory or supervisory function in relat ion
to financial services corresponding to a function of the compet ent
authority as defined in the Malt a Financial Services Authority Act;
Cap. 368."parent undertaking" has the sam e meaning as assigned to it by
article 2 of the Companies Act, and for the purposes of these
regulations includes any undertaking which, in the opinion of t he
competent authority, effectively exercises a dominant influence
over another undertaking;
"participating undertaking" means an undertaking which is eithe r
4 [S.L.403.17INSURANCE BUSINESS (SUPERVISION OF INSURANCE 
AND REINSURANCE UNDERTAKINGS IN A GROUP)
a parent undertaking or other undertaking which holds a
participation or an undertaking linked with another undertaking  by
a relationship as set out in Ar ticle 22 of Directive 2013/34/EU  of
the European Parliament and of the Council of 26 June 2013 on t he
annual financial statements, cons olidated financial statements and
related reports of certain types of undertakings, amending Dire ctive
2006/43/EC of the European Parliament and of the Council and
repealing Council Directives 78/660/EEC and 83/349/EEC;
"participation" means the ownership, direct or by way of contro l,
of 20% or more of the voting rights or capital of an undertakin g,
and for the purposes of these re gulations, includes, the holdin g,
directly or indirectly of voting rights or capital in an undert aking,
over which, in the opinion of th e competent authority, a signif icant
influence is effectively exercised;
"related undertaking" means either a subsidiary or another
undertaking in which a participation is held, or an undertakinglinked with another undertaking by a relationship as set out in
Articles 22(7), (8), and (9) of Directive 2013/34/EU of the
European Parliament and of the Council of 26 June 2013 on theannual financial statements, cons olidated financial statements and
related reports of certain types of undertakings, amending Dire ctive
2006/43/EC of the European Parliament and of the Council andrepealing Council Directives 78/660/EEC and 83/349/EEC;
"Solvency II Directive" means Directive 2009/138/EC of the
European Parliament and of the Council of 25 November 2009 on
the taking-up and pursuit of the business of Insurance and
Reinsurance (Solvency II) (recast ), as amended from time to tim e,
and includes any delegated acts and any technical standards tha t
have been or may be issued thereunder;
Cap. 368."subsidiary undertaking" means an undertaking within the
meaning of article 2 of the Companies Act, and for the purposes  of
these regulations, includes, any undertaking over which, in the
opinion of the competent authority, a parent undertaking effect ively
exercises a dominant influence;
"third country" means a country which is not a Member State or
EEA State,
and other words and expressions which are also used in the Act
shall, in these regulations, have  the same meaning as in the Ac t. 
(2) The provisions of these regulations shall be applicable in
addition to the Commission Delegated Regulation (EU) 2015/35 10
October 2014 supplementing Directive 2009/138/EC of theEuropean Parliament and of the Council on the taking-up and
pursuit of the business of Insur ance and Reinsurance (Solvency II).
PART I
Group Supervision: Cases of Application, Scope and Levels
Applicability of 
regulations.3. (1) For the purpose of these re gulations, supervision at the
level of the group shall apply to every authorised insuranceundertaking and authorised reins urance undertaking which is par t
of a group.
INSURANCE BUSINESS (SUPERVISION OF INSURANCE 
AND REINSURANCE UNDERTAKINGS IN A GROUP) [S.L.403.17 5
(2) Where the competent authority is the group supervisor of a
group, or where it is one of the authorities responsible for th e
supervision of an individual insurance or reinsurance undertaki ng
in a group and is not the group supervisor, group supervision s hall
apply in the follo wing cases, where:
(a) either:
(i) an authorised insurance undertaking or an
authorised reinsurance undertaking which is a
participating undertaking in at least one other
authorised insurance undertaking, authorisedreinsurance undertaking, European insurance
undertaking European r einsurance undertaking,
third country insurance undertaking or thirdcountry reinsurance unde rtaking, in accordance
with regulations 9 to 43; or
(ii) a European insurance undertaking or a European
reinsurance undertaking which is a participatingundertaking in at least an authorised insurance
undertaking or an authorised reinsurance
undertaking, in accordance with regulations 9 to
43; or
(b) an authorised insurance undertaking or an authorised
reinsurance undertaking, the parent undertaking of
which is an insurance holding company or a mixedfinancial holding company which has its head office in
Malta or in another Member State or EEA State, in
accordance with regul ations 9 to 43; or
(c) an authorised insurance undertaking or an authorised
reinsurance undertaking, the parent undertaking of
which is an insurance holding company or a mixed
financial holding company which has its head office ina third country, or is a third country insurance
undertaking or a third country reinsurance
undertaking, in accordance wi th regulations 44 to 47;
or
(d) an authorised insurance undertaking or an authorised
reinsurance undertaking, the parent undertaking of
which is a mixed-activity i nsurance holding company,
in accordance with regulation 48.
(3) For the avoidance of doubt, the provisions of the Act,
regulations or Insurance Rules issued thereunder, concerning th e
supervision of an authorised insurance undertaking or an author ised
reinsurance undertaking taken i ndividually shall continue to ap ply
to such an undertaking, except wh ere it is otherwise provided u nder
these regulations.
Level of 
application with 
regard to mixed financial holding 
companies.4.(1) Where a mixed financial h olding company is subject to
equivalent provisions under the Solvency II Directive and under
Directive 2002/87/EC, in particular in terms of risk-basedsupervision, and where the com petent authority is the group
supervisor of the group, the authority may, after consulting ot her
European regulatory au thorities concerned, apply only the relev ant
6 [S.L.403.17INSURANCE BUSINESS (SUPERVISION OF INSURANCE 
AND REINSURANCE UNDERTAKINGS IN A GROUP)
provisions of Directive 2002/87/EC to that mixed financial hold ing
company.
(2) Where a mixed financial holding company is subject to
equivalent provisions under the Solvency II Directive and under
Directive 2013/36/EU of the European Parliament and of theCouncil of 26 June 2013 on access to the activity of credit
institutions and the prudential supervision of credit instituti ons and
investment firms, in particular in terms of risk-based supervis ion,
and where the competent authority is the group supervisor of th e
group, the authority may, in agreement with the consolidating
supervisor in the banking and in vestment services sector, apply
only the provisions of the Directive relating to the most signi ficant
sector as determined in accordance with Article 3(2) of Directi ve
2002/87/EC.
(3) Where the competent authority is the group supervisor of
the group, it shall inform the European Banking Authority,established by Regulation (EU) No 1093/2010 of the European
Parliament and of the Council of 24 November 2010, and EIOPA,
of the decisions taken under  sub-regulations (1) and (2).
Levels at which 
supervision need not be exercised in 
relation to risk 
concentration or intra-group 
transactions, or 
both.5. Where the competent authority i s the group supervisor of a
group, it may, after consultation with other European regulator y
authorities concerned, decide not to carry out supervision of t he
risk concentration, intra-group tr ansactions, or both, as refer red to
in regulation 33, only in the following cases:
(a) in the cases referred to in regulation 3(2)(a) and (b),
where the participating insurance or reinsurance
undertaking or the insurance holding company or
mixed financial holding company which has its head
office in Malta, or in another Member State or EEAState, is either a related undertaking of, or is itself a
regulated entity or a mixed financial holding company
which is subject to supplementary supervision inaccordance with Article 5(2) of Directive 2002/87/EC,
at the level of that par ticipating insurance or
reinsurance undertaking or that insurance holdingcompany or mixed financial holding company;
(b) where the ultimate parent insurance or reinsurance
undertaking or insurance holding company or mixed
financial holding company which has its head office inMalta, or in another Member State or EEA State, as
referred to in regulation 7, is a subsidiary undertaking
of an undertaking which is subject to supplementarysupervision in accordance with Article 5(2) of
Directive 2002/87/EC, at the level of that ultimate
parent undertaking or company.
Scope of group 
supervision.6. (1) Without prejudice to regulation 42 and in so far as
insurance holding companies or mixed financial holding companie s
are concerned, the exercise of group supervision by the compete nt
authority in accordance with regulations 3, 4 and 5, shall not imply
that the competent authority is required to play a supervisory role
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AND REINSURANCE UNDERTAKINGS IN A GROUP) [S.L.403.17 7
in relation to the third country insurance undertaking, third c ountry
reinsurance undertaking, the ins urance holding company, mixed
financial holding company or the mixed-activity insurance holdi ng
company, taken individually.
(2) Where the competent authority is the group supervisor of a
group, it may decide on a case-by-case basis not to include an
undertaking in the group supervis ion referred to in regulations  3, 4,
and 5, where:
(a) the undertaking is situated in a third country, where
there are legal impediments to the transfer of the
necessary information, without prejudice to theprovisions of regulation 21;
(b) the undertaking which should be included is of
negligible interest with res pect to the objectives of
group supervision; or
(c) the inclusion of the undertaking would be
inappropriate or mislead ing with respect to the
objectives of the group supervision.
(3) Where several undertaking s of the same group, taken
individually, may be excluded pursuant to sub-regulation (2)( b),
such undertakings shall nevertheless be included where,collectively, they are of  non-negligible interest.
(4) Where the competent authority is the group supervisor of
the group and is of the opinion that an insurance or reinsuranc e
undertaking is not to be included in the group supervision, bas ed on
sub-regulation (2)( b) or ( c), it shall consult other regulatory
authorities concerned in the sup ervision of the group, before t aking
a decision in accordance w ith sub-regu lation (2).
(5) Where the competent authority is one of the authorities
responsible for the supervision of an individual insurance or
reinsurance undertaking in a gr oup and is not the group supervi sor,
and the group supervisor has d ecided, in accordance with Articl e
214 of the Solvency II Directive,  not to include that authorise d
insurance undertaking or authorised reinsurance undertaking in the
group supervision, the competent authority may require the
undertaking which is at the head of the group to provide any
information which may facilitate the competent authority’ssupervision of the excluded authorised insurance undertaking or
authorised reinsurance undertaking.
Ultimate parent 
undertaking at 
Union level.7. Where the partic ipating insurance or reinsurance
undertaking or the insurance holding company or the mixed
financial holding company, referred to in regulation 3(2)( a) and
(b), is itself a subsidiary undertaking of another authorised
insurance undertaking, authorised reinsurance undertaking,
European insurance undertaking or European reinsuranceundertaking, or of another insurance holding company or mixed
financial holding company which h as its head office in Malta, o r in
another Member State or EEA State, regulation 9 to 43 shall app ly
only at the level of the ultimate parent insurance or reinsuran ce
undertaking, insurance holding company or mixed financial
8 [S.L.403.17INSURANCE BUSINESS (SUPERVISION OF INSURANCE 
AND REINSURANCE UNDERTAKINGS IN A GROUP)
holding company which has its head office in Malta, or in anoth er
Member State or EEA State.
Ultimate parent 
undertaking at 
national level.8. (1) The competent authority may subject the ultimate
Malta Solvency II parent t o group supervision, where:
(a) the ultimate parent undertaking at Union level referred
to in regulation 7, has its head office in a Member
State or EEA State, other than Malta;
(b) the ultimate parent undertaking at Union level referred
to in regulation 7, has not obtained permission inaccordance with Articles 237 or 243 of the Solvency II
Directive, for the ultimate  M a l t a  S o l v e n c y  I I  p a r e n t ,
which is its subsidiary, to be subject to regulations 29and 30; and
(c) the competent authority is one of the authorities
responsible for the supervision of an individual
insurance or reinsurance und ertaking in a group and is
not the group supervisor.
(2) The competent authority shall:
(a) before taking the decision to exercise supervision in
accordance with sub- regulation (1), consult both the
group supervisor and the ultimate parent undertaking
at Union level; and
(b) where such a decision has been taken, explain its
decision to both the group supervisor and the ultimate
parent undertaking at Union level.
(3) Where the competent authority is the group supervisor of a
group and a decision has been taken to subject the ultimate par ent
insurance or reinsurance undertaking, insurance holding companyor mixed financial holding company to group supervision, pursua nt
to Article 216(1) of the Solvency II Directive, the competent
authority shall inform the colle ge of supervisors in accordance  with
article 32B(3)( a) of the Act.
(4) ( a) Where the competent authority is one of the authorities
responsible for the supervision of an individual
insurance or reinsurance unde rtaking in a group and is
not the group supervisor, and takes a decision inaccordance with regulation 8(1) and (2) or concludes
an agreement in accordance with regulation 8(11) to
(13), regulations 9 to 43 shall apply mutatis mutandis ,
subject to paragraph (b) and to sub-regulations (1)( b),
(5) to (10) of this regulation.
(b) The decision or agreement referred to in paragraph (a)
is subject to the decision which the competent
authority may take, to restrict group supervision of theultimate Malta Solvency II parent to one or more of
the following:
(i) Articles 218 to 243 of Title III, Chapter II,
Section 1 of the Solvency II Directive; 
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AND REINSURANCE UNDERTAKINGS IN A GROUP) [S.L.403.17 9
(ii) Articles 244 and 245 of Title III, Chapter II,
Section 2 of the Solvency II Directive;
(iii) Article 246 of Title III, Chapter II, Section 3 of
the Solvency II Directive.
(5) Where the competent authority decides to apply Articles
218 to 243 of the Solvency II Directive to the ultimate Malta
Solvency II parent or concludes an agreement in accordance with
sub-regulations (11) to (13), the choice of method made in
accordance with Article 220 of the Solvency II Directive by the
group supervisor in respect of the ultimate parent undertaking at
Union level referred to in Artic le 215 of the Solvency II Direc tive,
shall be recognised as determinative and applied by the compete nt
authority.
(6) Where the competent authority decides to apply Articles
218 to 243 of the Solvency II Directive to the ultimate MaltaSolvency II parent or concludes an agreement in accordance with
sub-regulations (11) to (13), the competent authority shall
recognise as determinative and apply any permission granted inaccordance with Articles 231 or 233(5) of the Solvency II
Directive, to the ultimate paren t undertaking at Union level re ferred
to in regulation 7 to calculate the group Solvency CapitalRequirement, as well as the Sol vency Capital Requirement of
insurance undertakings and reinsurance undertakings in the grou p,
on the basis of an internal model.
(7) In the situation referred to in sub-regulation (6), where th e
competent authority considers that the risk profile of the ulti mate
Malta Solvency II parent deviates significantly from the intern al
model approved at Union level, and as long as that undertaking
does not properly address the concerns of the competent authori ty,
the competent authority may decide to impose a capital add-on t o
the group Solvency Capital Req uirement of that undertaking
resulting from the application of such model or, in exceptionalcircumstances, where such capital  add-on would not be appropria te,
to require that undertaking to calculate its group Solvency Cap ital
Requirement on the basis of the standard formula.
(8) The competent authority shall explain the decisions taken
in accordance with sub-regulations (6) or (7) to both the MaltaSolvency II parent and the group supervisor.
(9) Where the competent authority is the group supervisor of a
group and a decision has been taken pursuant to Article 216(4) of
the Solvency II Directive, the competent authority shall inform  the
college of supervisors in accordance with article 32B(3)( a) of the
Act.
(10) Where the competent author ity decides to apply Articles
218 to 243 of the Solvency II Directive to the ultimate Malta
Solvency II parent that undertaking shall not be permitted to
introduce, in accordance with regulations 27 to 32, an applicat ion
for permission to subject any of its subsidiaries to Articles 2 38 and
239 of the Solvency II Directive.
(11) Where the competent au thority makes a decision in
accordance with sub-regulation (1), the competent authority may
10 [S.L.403.17INSURANCE BUSINESS (SUPERVISION OF INSURANCE 
AND REINSURANCE UNDERTAKINGS IN A GROUP)
conclude an agreement with the E uropean regulatory authorities in
other Member States or EEA States where another related ultimat e
parent undertaking at national le vel, other than Malta, is pres ent,
with a view to carrying out group supervision at the level of a
subgroup covering Malta and such other Member States or EEA
States.
(12) Where the compet ent authority h as concluded an agreement
as referred to in sub-regulation (11), group supervision shall not be
carried out at the level of any ultimate parent undertaking ref erred
to Article 216 of the Solvency II Directive, present in Member
States or EEA States, other than the Member States or EEA State s
where the subgroup re ferred to in sub-regulation (11) is locate d.
(13) Where an agreement is con cluded in accordance with sub-
regulation (11), the competent authority shall explain the
agreement to the group supervis or and to the ultimate parent
undertaking at Union level.
(14) Where the competent authorit y is the group supervisor of a
group and an agreement to carry out group supervision at subgro up
level in the Member States or EEA States concerned, has been
concluded pursuant to Article 217 of the Solvency II Directive,  the
competent authority shall inform the college of supervisors inaccordance with article 32B(3)( a) of the Act.
PART II
Financial Position
Group Solvency: 
general provisions.9. (1) Supervision of the group solvency shall be exercised in
accordance with sub-regulations (2) and (3), and regulations 34  to
43.
(2) In the case referred to in regulation 3(2)( a)(i), a
participating insurance or reinsurance undertaking in a group, shall
ensure that eligible own funds ar e available in the group which  are
always at least equal to the gr oup Solvency Capital Requirement  as
calculated in accordance w ith regulations 12 to 25.
(3) In the case referred t o in regulation 3(2)( b), an authorised
insurance undertaking or an authorised reinsurance undertaking in
a group, shall ensure that eligible own funds available in the group
are always at least equal to the group Solvency Capital
Requirement as calculated in  accordance with regulation 26.
(4) An undertaking referred to in sub-regulations (2) and (3),
shall have procedures in place to  identify deteriorating financ ial
conditions within the group and shall notify the group supervis or,
without delay, when such deterioration occurs.
(5) An undertaking, as referred to in sub-regulations (2) and
(3), shall:
(a) immediately inform the group supervisor, as soon as
such undertaking observes that the group Solvency
Capital Requirement is no longer complied with, orwhere there is the risk of non-compliance within the
following three months;
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AND REINSURANCE UNDERTAKINGS IN A GROUP) [S.L.403.17 11
(b) within two months from the observation of non-
compliance with the group Solvency CapitalRequirement, submit a realistic recovery plan for
approval by the group supervisor;
(c) take the necessary measures to achieve within six
months from the observation of non-compliance withthe group Solvency Capital Requirement, which period
may be extended for a further three months by the
group supervisor, the re-establishment of the level of
eligible own funds covering the group Solvency
Capital Requirement or the reduction of the riskprofile to ensure complianc e with the group Solvency
Capital Requirement;
(d) submit a progress report to the group supervisor every
three months, setting out the measures taken and theprogress made to re-establish the level of own funds
covering the group Solvency Capital Requirement or
to reduce the risk profile t o ensure compliance with the
group Solvency Capital Requirement, in the event of
exceptional adverse situations affecting such
undertaking, as declared by EIOPA, and whereappropriate in consultation with the European
Systematic Risk Board.
(6) Where the competent authority is the group supervisor of a
group, the authority:
(a) shall require an authorised insurance undertaking or an
authorised reinsurance undertaking, a European
insurance undertaking or a European reinsuranceundertaking, in a group, which has informed the
competent authority as soon as it was observed that the
group Solvency Capital Requirement is no longercomplied with, or where there is a risk of non-
compliance in the following three months, to take the
necessary measures to achieve , within six  months from
the observation of non-compliance with the Solvency
Capital Requirement, the re- establishment of the level
of eligible own funds covering the Solvency CapitalRequirement or the reduction of its risk profile to
ensure compliance with the Solvency Capital
Requirement;
(b) may, if appropriate extend the period of six months
referred to in paragraph ( a) by three months;
(c) may, in the event of exceptional adverse situations
affecting any of the authorised insurance undertaking,
authorised reinsurance undertaking, European
insurance undertaking o r European reinsurance
undertaking, in a group, extend the period set out in
paragraph ( b) by a maximum period of seven years,
taking into account all rele vant factors, including the
average duration of the technical provisions;
(d) may, request EIOPA to declare the existence of
12 [S.L.403.17INSURANCE BUSINESS (SUPERVISION OF INSURANCE 
AND REINSURANCE UNDERTAKINGS IN A GROUP)
exceptional adverse situations, if any, of the authorised
insurance undertaking, authorised reinsurance
undertaking, European insurance undertaking orEuropean reinsurance undertaking, in a group,
representing a significant sha re of the market or of the
affected lines of business are unlikely to meet one ofthe requirements set out in paragraph ( a);
(e) shall cooperate with EIOPA:
(i) to assess on a regular basis whether the
conditions referred to in sub-regulation (7) still
apply;
(ii) to declare when an exceptional adverse situation
has ceased to exist;
(f) shall require any affected undertaking to submit a
progress report setting out the measures taken and the
progress made to re-establish the level of eligible ownfunds covering the group Solvency Capital
Requirement or to reduce the risk profile to ensure
compliance with the group Solvency CapitalRequirement;
(g) shall withdraw the extension referred to in paragraph
(c) where that progress repor t shows that there was no
significant progress in achie ving the re-establishment
of the level of eligible own funds covering the group
Solvency Capital Requirement or the reduction of the
risk profile to ensure compliance with the groupSolvency Capital Requireme nt between the date of the
observation of non-compliance of the group Solvency
Capital Requirement and the date of the submission ofthe progress report.
(7) For the purposes of this regulation, "exceptional adverse
situations" exist where the financial situation of an authorise d
insurance undertaking, an authorised reinsurance undertaking, aEuropean insurance undertaki ng or a European reinsurance
undertaking, representing a significant share of the market or of the
affected lines of business, is se riously or adversely affected by one
or more of the following conditions:
(a) a fall in financial markets  which is unforeseen, sharp
and steep;
(b) a persistent low interest rate environment;
(c) a high-impact cat astrophic event.
Frequency of 
calculation.10. (1) The group solvency calculations referred to in
regulation 9(2) and (3), shall be  carried out at least annually  by the
participating insurance or reins urance undertaking referred to in
regulation 9(2), by the insurance holding company or by the mix ed
financial holding company refe rred to in regulation 9(3).
(2) The relevant data for, and the results of, the calculations
referred to in regulation 9(2) and (3) shall be submitted to th e group
supervisor:
INSURANCE BUSINESS (SUPERVISION OF INSURANCE 
AND REINSURANCE UNDERTAKINGS IN A GROUP) [S.L.403.17 13
(a) by the participating insurance or reinsurance
undertaking referred to in regulation 9(2); or
(b) by the insurance holding company or the mixed
financial holding company referred to in regulation
9(3), or by such other undertaking in the group as may
be identified by the group supervisor, after consultingthe competent authority, the European regulatory
authorities concerned and th e group itself, where the
group is not headed by an authorised insurance
undertaking, an authorised reinsurance undertaking, a
European insurance undertaking or a Europeanreinsurance undertaking.
(3) ( a) The authorised insurance undertaking and authorised
reinsurance undertaking referred to in regulation 9(2),
and the insurance holding company and mixed
financial holding company, referred to in regulation9(3) shall monitor the group Solvency Capital
Requirement on an ongoing basis.
(b) Where the risk profile of the group deviates
significantly from the assumptions underlying the last
reported group Solvency Capital Requirement, thegroup Solvency Capital Requirement shall be
recalculated without delay and reported to the group
supervisor. 
Supervision of 
group solvency.11. Where the competent authority is the group supervisor of a
group, the authority:
(a) shall ensure that the calculations referred to in Article
218(2) and (3) of the Solvency II Directive are carried
out at least annually, by the participating insurance orreinsurance undertaking, by the insurance holding
company or by the mixed financial holding company;
(b) shall conduct supervisory reviews in accordance with
Articles 247 to 259 of the Solvency II Directive, todetermine whether insurance or reinsurance
undertakings in the group are complying with Articles
218(2) and (3) of the Solvency II Directive;
(c) shall inform the other European regulatory authorities
within the college of supervisors, which shall analyse
the situation of the group, as soon as a participatingundertaking in the group informs the competent
authority, that it is no longer in compliance with the
Solvency Capital Requirement, or that there is a risk ofnon-compliance in the following three months;
(d) shall, where the group is not headed by an insurance
undertaking or reinsurance undertaking, consult the
undertakings in the group and the European regulatoryauthorities concerned in the supervision of the group,
before identifying an undertaking other than an
insurance holding company or a mixed financialholding company to supply relevant data for, and the
results, of, the calculati ons referred to in Articles
14 [S.L.403.17INSURANCE BUSINESS (SUPERVISION OF INSURANCE 
AND REINSURANCE UNDERTAKINGS IN A GROUP)
218(2) and (3) of the Solvency II Directive;
(e) may, where there is evidence to suggest that the risk
profile of the group has altered significantly since the
date on which the group Solvency CapitalRequirement was last repor ted, require a recalculation
of the group Solvency Capital Requirement.
Choice of method. 12. (1) The calculation of the solvency at the level of the
group of the authorised insuran ce undertakings and authorised
reinsurance undertakings referre d to in regulation 3(2)(a), sha ll be
carried out:
(a) in accordance with the technical principles in
regulations 13 to 26; and
(b) in accordance with method  1, unless the group
supervisor has determined under Article 220(2) of the
Solvency II Directive that  method 2 or a combination
of method 1 and method 2 shall be applied.
(2) Where the competent authority is the group supervisor of a
group, the authority shall consult the group and the other Euro pean
regulatory authorities concerned in the supervision of the grou p,
before taking a decision in acco rdance with sub-regulation (1)( b)
on requiring the particular group to use method 2 or a combinat ion
of method 1 and method 2, for the calculation of the solvency a t the
level of the group, where the exclusive application of method 1would not be appropriate.
(3) Where the competent authority is one of the authorities
responsible for the supervision of an individual insurance or
reinsurance undertaking in a group and is not the group supervi sor,
the competent authority shall ap ply the method chosen by the gr oup
supervisor for the ultimate parent insurance or reinsurance
undertaking, insurance holding company or mixed financial
holding company at Union  level, in r elation to:
(a) group supervision at natio nal level in accordance with
regulation 8(1); and
(b) supervision at sub-group  level in accordance with
regulation 8(11). 
Inclusion of 
proportional share.13. (1) The calculation of the group solvency shall take into
account the proportional share held by the participating
undertaking in its r elated undertakings.
(2) Subject to sub-regulation (3), for the purposes of sub-
regulation (1), the proportional share shall comprise either of  the
following:
(a) where method 1 is used, the percentages used for the
establishment of the consolidated accounts; or
(b) where method 2 is used, the proportion of the
subscribed capital that is held, directly or indirectly,
by the participating undertaking.
(3) Notwithstanding sub-regulation (2) and regardless of the
INSURANCE BUSINESS (SUPERVISION OF INSURANCE 
AND REINSURANCE UNDERTAKINGS IN A GROUP) [S.L.403.17 15
method used:
(a) where the related undertaking is a subsidiary
undertaking and does not have sufficient eligible own
funds to cover its Solven cy Capital Requirement:
(i) the total solvency deficit of the subsidiary
undertaking shall be t aken into account; or
(ii) a proportional share of t hat solvency deficit shall
be taken into account, if the group supervisor so
determines in accordance with sub-regulations
(4) or (5);
(b) the proportional share shall be determined by the
group supervisor if such a determination is made inaccordance with sub -regulation (6).
(4) Where the competent authority is one of the authorities
responsible for the supervision of an individual insurance or
reinsurance undertaking in a gr oup and is not the group supervi sor,
and is of the opinion that the responsibility of the parentundertaking owning a share of the capital is strictly limited t o that
share of the capital, the group supervisor may nevertheless all ow
for the solvency deficit of the subsidiary undertaking to be ta ken
into account on a pr oportional basis.
(5) Where the competent authority is the group supervisor of a
group, and in the opinion of a European regulatory authority
concerned the responsibility of the parent undertaking owning a
share of the capital is strictly limited to that share of the c apital, the
competent authority may nevertheless allow for the solvency
deficit of the subsidiary undertaking to be taken into account on a
proportional basis.
(6) Where the competent authority is the group supervisor of a
group, the authority shall, after consulting the European regul atory
authority concerned and the group itself, determine the
proportional share which sha ll be taken into account in the
calculation of group solvency, in any of the following cases:
(a) where there are no capital ties between some of the
undertakings in a group;
(b) where a European regulatory authority has determined
that the holding, directly or indirectly, of voting rights
or capital in an undertaking qualifies as a participation
because, in its opinion, a significant influence iseffectively exercised over that undertaking;
(c) where a European regulatory authority has determined
that an undertaking is a parent undertaking of another
because, in the opinion of that regulatory authority, iteffectively exercises a dom inant influence over that
other undertaking.
Elimination of 
double use of 
eligible own funds.14. ( 1 ) T h e  o w n  f u n d s  e l i g i b l e  f o r  t h e  S o l v e n c y  C a p i t a l
Requirement shall not be taken into account more than once amon g
the different insurance or reins urance undertakings, in a group , in
the calculation of the group solvency.
16 [S.L.403.17INSURANCE BUSINESS (SUPERVISION OF INSURANCE 
AND REINSURANCE UNDERTAKINGS IN A GROUP)
(2) For the purposes of sub-regulation (1), when calculating the
group solvency and where method 1 and method 2 do not provide
for it, the following amounts shall be excluded:
(a) the value of any asset of the participating insurance or
reinsurance undertaking, which represents thefinancing of own funds eligible for the Solvency
Capital Requirement of one of its related insurance or
reinsurance undertakings;
(b) the value of any asset of a related insurance or
reinsurance undertaking of the participating insurance
or reinsurance undertaking which represents the
financing of own funds eligible for the SolvencyCapital Requirement of that participating insurance or
reinsurance undertaking;
(c) the value of any asset of a related insurance or
reinsurance undertaking of the participating insuranceor reinsurance undertaking, which represents the
financing of own funds eligible for the Solvency
Capital Requirement of any other related insurance orreinsurance undertaking of that participating insurance
or reinsurance undertaking.
(3) Without prejudice to sub-regulation (2), the following may
be included in the calculation only in so far as they are eligi ble for
covering the Solvency Capital Requirement of the relatedundertaking concerned:
(a) surplus funds falling under Article 91(2) of the
Solvency II Directive arising in a related insurance or
reinsurance undertaking carrying on long term
business, of the participati ng insurance or reinsurance
undertaking for which the group solvency is
calculated;
(b) any subscribed but not paid-up capital of a related
insurance or reinsuran ce undertaking of the
participating insurance or reinsurance undertaking for
which the group solvency is calculated.
(4) Notwithstanding sub-regulation (3), the following shall in
any event be excluded from the calculation:
(a) subscribed but not paid-up capital which represents a
potential obligation on the part of the participatingundertaking;
(b) subscribed but not paid-up capital of the participating
insurance or reinsuran ce undertaking, which
represents a potential obligation on the part of arelated insurance or r einsurance undertaking;
(c) subscribed but not paid-up capital of a related
insurance or reinsurance undertaking which represents
a potential obligation on the part of another relatedinsurance or reinsurance undertaking of the same
participating insurance or  reinsurance undertaking.
INSURANCE BUSINESS (SUPERVISION OF INSURANCE 
AND REINSURANCE UNDERTAKINGS IN A GROUP) [S.L.403.17 17
(5) Where the competent authority considers that certain own
funds eligible for the Solvency Capital Requirement of a relate d
insurance or reinsurance undertak ing other than those referred to in
sub-regulations (3) and (4), canno t effectively be made availab le to
cover the Solvency C apital Requirement of the participating
insurance or reinsurance undertaking for which the group solven cy
is calculated, those own funds may be included in the calculati on
only in so far as they are eligib le for covering the Solvency C apital
Requirement of that related undertaking.
(6) The sum of the own funds referred to in sub-regulations (3)
to (5), shall not exceed the Solvency Capital Requirement of th e
related insurance or reinsurance undertaking.
(7) Any eligible own funds of a related insurance or
reinsurance undertaking of the participating insurance orreinsurance undertaking for which the group solvency is calcula ted
that are subject to prior authorisation from the competent auth ority
or the relevant European regulat ory authority in accordance wit h
Article 90 of the Solvency II Directive, shall be included in t he
calculation only in so far as they have been duly authorised by  the
competent authority or the relevant European regulatory authori ty,
responsible for the supervisi on of that related undertaking.
Elimination of 
intra-group creation of capital.15. (1) When calculating group solvency, no account shall be
taken of any own funds eligi ble for the Solvency Capital
Requirement arising out of reci procal financing between the
participating insurance or reinsurance undertaking and any of t he
following:
(a) a related undertaking;
(b) a participating undertaking;
(c) another related undertaking of any of its participating
undertakings.
(2) When calculating group solvency, no account shall be taken
of any own funds eligible for the Solvency Capital Requirement of
a related insurance or reinsurance undertaking of the participa ting
insurance or reinsurance undertaking for which the group solven cy
is calculated where the own f unds concerned arise out of recipr ocal
financing with any other related undertaking of that participat ing
insurance or reinsurance undertaking.
(3) Reciprocal financing shall be  deemed to exist at least where
an insurance or reinsurance undertaking, or any of its relatedundertakings, holds shares in, or makes loans to, another
undertaking which, directly or indirectly, holds own funds elig ible
for the Solvency Capital Requirem ent of the first  undertaking.
Valuation. 16. The value of the assets and liabilities shall be assessed in
accordance with Insurance Rules issued under article 18D of the
Act.
Related insurance 
or reinsurance 
undertakings.17. (1) Where an authorised insurance undertaking or an
authorised reinsurance undertaking has more than one related
insurance or reinsurance unde rtaking, the group solvency
calculation shall be carried out by including each of those rel ated
18 [S.L.403.17INSURANCE BUSINESS (SUPERVISION OF INSURANCE 
AND REINSURANCE UNDERTAKINGS IN A GROUP)
insurance or reinsur ance undertakings.
(2) Where the related insurance o r reinsurance undertaking has
its head office in a Member Stat e or EEA State other than that of
the authorised insurance undertaking or authorised reinsurance
undertaking for which the group solvency calculation is carried  out,
the calculation is to take into account, in respect of the rela ted
undertaking, of the Solvency Capital Requirement and the own
funds eligible to satisfy that requirement as laid down in that  other
Member State or EEA State.
Intermediate 
insurance holding companies.18. (1) When calculating the group solvency of an authorised
insurance undertaking or an auth orised reinsurance undertaking,  in
a group, which holds a  participation in:
(a) a related insurance undertaking;
(b) a related reinsur ance undertaking;
(c) a related third-country insurance undertaking; or
(d) a related third-country  reinsurance undertaking,
through an insurance holding company or a mixed financial
holding company, the situation of such an insurance holding
company or mixed financial holding company shall be taken into
account.
(2) For the sole purpose of tha t calculation, the intermediate
insurance holding company or intermediate mixed financialholding company shall be treated as if it were an insurance or
reinsurance undertaking, subject to the rules laid down in Arti cles
100 to 127 of the Solvency II Directive, in respect of the Solv ency
Capital Requirement and were subject to the same conditions as are
laid down in Articles 87 to 99 of the Solvency II Directive, in
respect of own funds eligible for the Solvency CapitalRequirement.
(3) In cases where an intermedia te insurance holding company
or intermediate mixed financial holding company holds
subordinated debt or other eligible own funds subject to limita tion
in accordance with Article 98 of the Solvency II Directive, the y
shall be recognised as eligible own funds up to the amounts
calculated by application of the limits set out in the said Art icle to
the total eligible own funds out standing at group level as comp ared
to the Solvency Capital Requirement at group level.
(4) Any eligible own funds of an intermediate insurance
holding company or intermediate mixed financial holding
company, which would require prior authorisation from the
competent authority or the European regulatory authorityconcerned, in accordance with A rticle 90 of the Solvency II
Directive if they were held by an authorised insurance undertak ing,
an authorised reinsurance undertaking, a European insuranceundertaking or a European rei nsurance undertaking, may be
included in the calculation of th e group solvency only in so fa r as
they have been duly authorised by the group supervisor, or by t he
competent authority where it is t he group supervisor of a group .
INSURANCE BUSINESS (SUPERVISION OF INSURANCE 
AND REINSURANCE UNDERTAKINGS IN A GROUP) [S.L.403.17 19
Equivalence 
concerning related third-country 
insurance and re-
insurance undertakings.
Amended by:
L.N. 63 of 2017.19. (1) When calculating the group solvency of an authorised
insurance undertaking or an authorised reinsurance undertakingwhich is a participating undertaking in a third-country insuran ce
undertaking or third-country reinsurance undertaking, in
accordance with method 2, such third-country insurance or
reinsurance undertaking shall, solely for the purposes of that
calculation, be treated as a re lated insurance or reinsurance
undertaking.
(2) Notwithstanding sub-regulation (1), where the third country
in which that undertaking has its head office is subject toauthorisation and has a solvency regime at least equivalent to that
specified in Articles 75 to 135 of the Solvency II Directive, t he
competent authority may provide that the calculation in sub-regulation (1) shall take into account, as regards that underta king,
the Solvency Capital Requirement and the own funds eligible to
satisfy that requirement as laid down by the third countryconcerned.
(3) Where the competent authority is the group supervisor of a
group and no delegated act has been adopted in accordance with
Article 227(4) or (5) of the Solvency II Directive, the compete nt
authority shall at the request of the participating undertaking , or on
its own initiative, make the ve rification of whether the third
country solvency regime is at least equivalent to Articles 75 t o 135
of the Solvency II Directive.
(4) Where the competent authority is the group supervisor of a
group, the authority shall:
(a) consult the other European regulatory authorities
concerned in the supervision of the group beforetaking a decision on equivalence under sub-regulation
(3), with the assistance of EIOPA in accordance with
Article 33(2) of Regula tion (EU) No 1094/2010;
(b) take the decision on equivalence in accordance with
the criteria set out in any delegated acts adopted under
Article 227(3) of the Sol vency II Directive; and
(c) ensure that its decision in relation to a third country is
not contradicting any decision taken vis-à-vis that
third country previously, except where it is necessary
to take into account si gnificant changes to the
supervisory regime laid down in Articles 75 to 135 of
the Solvency II Directive and to the supervisory
regime in the third country.
(5) Where the competent authority is one of the authorities
responsible for the supervision of an individual insurance orreinsurance undertaking in a gr oup and is not the group supervi sor,
and disagrees with the decision  taken in accordance with sub-
paragraph (2) of Article 227(2) o f the Solvency II Directive, t he
competent authority may refer the matter to EIOPA and request i ts
assistance in accordance with Article 19 of Regulation (EU) No
1094/2010 within three months after notification of the decisio n by
the group supervisor.
(6) Where the European Commission adopts delegated acts in
20 [S.L.403.17INSURANCE BUSINESS (SUPERVISION OF INSURANCE 
AND REINSURANCE UNDERTAKINGS IN A GROUP)
accordance with Article 227(5) of the Solvency II Directive,
determining the provisional equivalence of the supervisory regi me
of a third country, that regime s hall be considered equivalent for
the purposes of sub-regulation (2), and sub-regulations (3) to (5)
shall not apply.
Related credit 
institutions, 
investment firms 
and financial institutions.20. When calculating the group solvency of an authorised
insurance undertaking or an authorised reinsurance undertaking,
which is a participating undertaking in a credit institution,
investment firm or financial institution, the participating ins urance
and reinsurance undertaking shall:
(a) apply methods 1 or 2 set out in Annex I to Directive
2002/87/EC mutatis mutandis , provided that, method 1
set out in that Annex shall be applied only where the
group supervisor or where the competent authority is
the group supervisor of a group, the competent
authority, as applicable, is s atisfied as to the level of
integrated management and internal control regarding
the undertakings which wou ld be included in the scope
of consolidation, and provided always that the methodchosen shall be applied in a consistent manner over
time; or
(b) deduct any participation as  referred to in paragraph ( a)
from the own funds eligible for the group solvency ofthe participating undertaking, where the group
supervisor or the competent authority as group
supervisor so decides, either at the request of theparticipating undertaking or on its own initiative.
Non-availability of 
the necessary information.21. Where the information necessa ry for calculating the group
solvency of an authorised insuran ce undertaking or an authorise d
reinsurance undertaking, in a group, concerning a related
undertaking with its head office in a Member State or EEA State , or
in a third country, is not available to the competent authority , where
it is the group supervisor of a group:
(a) the book value of that related undertaking in the
participating insurance or reinsurance undertaking
shall be deducted from the own funds eligible for the
group solvency; and
(b) the unrealised gains connect ed with such participation
shall not be recognised as own funds eligible for the
group solvency.
Method 1 (Default 
Method): 
Accounting consolidation-
based method.22. (1) The calculation of the group solvency of the
participating insurance or reinsurance undertaking, shall be ca rried
out on the basis of the  consolidated accounts.
(2) The group solvency of the participating insurance or
reinsurance undertaking is the difference between the following :
(a) the own funds eligible to cover the Solvency Capital
Requirement, calculated on the basis of consolidateddata; and
INSURANCE BUSINESS (SUPERVISION OF INSURANCE 
AND REINSURANCE UNDERTAKINGS IN A GROUP) [S.L.403.17 21
(b) the Solvency Capital Requirement at group level
calculated on the basis of consolidated data.
(3) The rules laid down in Article s 87 to 127 of the Solvency II
Directive shall apply for the calculation of the own funds elig ible
for the Solvency Capital Requirement and of the Solvency Capita l
Requirement at group level based on consolidated data.
(4) The Solvency Capital Requirement at group level based on
consolidated data ("consolidated group Solvency Capital
Requirement") shall be calcula ted on the basis of either the
standard formula or an approved internal model, in a manner
consistent with the general principles contained in Articles 87  to
97, 100 to 102 and 112 to 127 of  the Solvency II Directive.
(5) The consolidated group So lvency Capital Requirement
shall have as a minimum the sum of the following:
(a) the Minimum Capital Requirement as referred to in
Article 129 of the Solvency II Directive, of the
participating insurance or reinsurance undertaking;
and
(b) the proportional share of the Minimum Capital
Requirement of the related insurance and reinsurance
undertakings.
(6) That minimum shall be covered by eligible basic own funds
as determined in Article 98(4)  of the Solvency II Directive.
(7) For the purposes of determining whether such eligible own
funds qualify to cover the minimum consolidated group Solvency
Capital Requirement, the principles set out in Articles 221 to 229 of
the Solvency II Directive shall apply mutatis mutandis . Article
139(1) and (2) of the Solvency II Directive shall also apply mutatis
mutandis .
Group internal 
model.
Amended by:L.N. 278 of 2021.23. (1) An application for pe rmission to calculate the
consolidated group Solvency Capital Requirement, as well as the
Solvency Capital Requirement of an authorised insuranceundertaking, an authorised reins urance undertaking, a European
insurance undertaking or a European reinsurance undertaking, in  a
group, on the basis of an internal model, submitted by such an
undertaking and its related undertakings, or jointly by the rel ated
undertakings of an insurance holding company, shall be submitte d
to the group supervisor or to th e competent authority where it is the
group supervisor of a group, as applicable.
(2) Where the competent authority is the group supervisor of a
group, upon receipt of an appli cation as referred to in sub-
regulation (1), i t shall inform:
(a) the other members of the college of supervisors; and
(b) EIOPA, 
of the receipt of application.  The competent authority as group
supervisor shall forward the complete application, including th e
documentation submitted under sub-regulation (1) by the underta king,
to the other members of the colle ge of supervisors and EIOPA wi thout
delay. The competent authority may request EIOPA to provide
22 [S.L.403.17INSURANCE BUSINESS (SUPERVISION OF INSURANCE 
AND REINSURANCE UNDERTAKINGS IN A GROUP)
technical assistance pursuant to point (b) of Article 8(1) of R egulation
(EU) No 1094/2010, with respect t o the decision on the applicat ion.
(3) Where the competent authority is one of the authorities
responsible for the supervision of an individual insurance or
reinsurance undertaking in a gr oup and is not the group supervi sor:
(a) it shall cooperate with o ther European regulatory
authorities concerned, to decide whether or not togrant the permission referred to in sub-regulation (1)
and to determine the terms and conditions, if any, to
which such permission is subject;
(b) it shall do everything within its power to reach a joint
decision on the application within six months from the
date of receipt of the co mplete application by the
group supervisor; and
(c) it may, within the six-month period referred to in
paragraph ( b) or before a joint-decision has been
reached, refer the matter to EIOPA in accordance with
Article 19 of Regulation (EU) No 1094/2010, and thedecision of the group super visor which is taken in
conformity with EIOPA’s decision, shall be recognised
as determinative and shall be applied by the competentauthority.
(4) Where EIOPA does not take a decision as referred to in the
second sub-paragraph of Article 2 31(3) of the Solvency II Direc tive, in
accordance with Article 19(3) of Regulation (EU) No 1094/2010, the
group supervisor shall take the final decision and that decisio n shall
be recognised as determinative and applied by the competent
authority.
(5) Where the competent authority is the group supervisor of a
group:
(a) if within the six-month period referred to in Article
231(3) of the Solv ency II Directive or before a joint-
decision has been reached, any of the European
regulatory authorities concerned has referred the
matter to EIOPA in accordance with Article 19 ofRegulation (EU) No 1094/2010, the competent
authority shall defer it s decision and await any
decision that EIOPA may take in accordance withArticle 19(3) of that Regulation, and shall take its
decision in conformity w ith EIOPA’s decision. That
decision shall be recognised as determinative andapplied by the European regulatory authorities
concerned; and
(b) where EIOPA does not take a  decision, as referred to in
the second sub-paragraph of Article 231(3) of theSolvency II Directive, in accordance with Article 19(3)
of Regulation (EU) No 1094/2010, the competent
authority shall take a final decision, and that decisionshall be recognised as determinative and shall be
applied by the European regulatory authorities
INSURANCE BUSINESS (SUPERVISION OF INSURANCE 
AND REINSURANCE UNDERTAKINGS IN A GROUP) [S.L.403.17 23
concerned.
(6) Where the competent authority is the group supervisor of a
group, the authority shall:
(a) where the competent authority and the European
regulatory authorities concerned have reached a joint
decision, provide the appl icant referred to in sub-
regulation (1) with a document setting out the full
reasons; and
(b) in the absence of the adoption of a joint decision
within six months from the receipt of the complete
application sent by it, make its own decision on the
application, taking into account any views andreservations of the other European regulatory
authorities concerned expressed during that six-month
period and shall provide the applicant referred to insub-regulation (1) and the other European regulatory
authorities concerned, with a document setting out its
fully reasoned decision which shall be recognised asdeterminative and shall be applied by the European
regulatory authorities concerned.
(7) Where the competent authority is one of the authorities
responsible for the supervision of an individual insurance or
reinsurance undertaking in a gr oup and is not the group supervi sor,
in the absence of the adoption of a joint decision within six m onths
from the date of receipt of the complete application by the gro up,
the decision of the group supervisor on the application, shall be
recognised as determinative.
(8) Where the competent authority is one of the authorities
responsible for the supervision of an individual insurance or
reinsurance undertaking in a gr oup and is not the group supervi sor,
and it considers that the risk profile of an authorised insuran ce
undertaking or an authorised reinsurance undertaking deviates
significantly from the assumptions underlying the internal mode l
approved at group level, and that undertaking has not properlyaddressed the concerns of the competent authority, the competen t
authority may:
(a) in accordance with Article 37 of the Solvency II
Directive, impose a capital add-on to the Solvency
Capital Requirement of that insurance or reinsuranceundertaking resulting from the application of such
internal model;
(b) in exceptional circumstances , where such capital add-
on imposed under paragraph ( a) would not be
appropriate, require the undertaking concerned to
calculate its Solvency Capital Requirement on the
basis of the standard formula referred to in Articles 87to 97 of the Solvency II Directive; or
(c) where the competent authority has exercised its
discretion under paragraph ( b), to require an
authorised insurance unde rtaking or an authorised
reinsurance undertaking to calculate its Solvency
24 [S.L.403.17INSURANCE BUSINESS (SUPERVISION OF INSURANCE 
AND REINSURANCE UNDERTAKINGS IN A GROUP)
Capital Requirement on the basis of the standard
formula, impose a capital add-on to the Solvency
Capital Requirement in accordance with Article37(1)( a) and ( c) of the Solvenc y II Directive.
(9) The competent authority shall explain any decision referred
to in sub-regulation (8) to the authorised insurance undertakin g or
authorised reinsurance undertak ing concerned and the other
members of the college of supervisors.
Group capital add-
on.24. (1) Where the competent authority is the group supervisor
of a group, the authority shall, in determining whether the
consolidated group Solvency Capital Requirement appropriatelyreflects the risk profile of the group, pay attention to any ca se
where the circumstances  referred to in Arti cle 37(1)(a) to (d) of the
Solvency II Directive may arise at group level, in particular w here:
(a) a specific risk existing at  g r o u p  l e v e l  w o u l d  n o t  b e
sufficiently covered by the standard formula or the
internal model used, because i t is difficult to quantify;
(b) a capital add-on to the So lvency Capital Requirement
of the related insurance or r einsurance undertakings is
imposed by the European regulatory authorities
concerned, in accordance wi th Article 37 and Article
231(7) of the Solv ency II Directive.
(2) Where the competent authority is the group supervisor of a
group, the authority may, where the risk profile of the group i s not
adequately reflected, impose a capital add-on to the consolidat ed
group Solvency Cap ital Requirement.
(3) Article 37(1) to (5) of the Solvency II Directive, together
with the delegated act s and implementing technical standards ta ken
in accordance with Article 37(6), (7) and (8) of the Solvency I I
Directive, shall apply mutatis mutandis .
Method 2 
(Alternative Method): 
Deduction and 
aggregation method.25. (1) The group solvency of the participating insurance or
reinsurance undertaking shall be the difference between thefollowing:
(a) the aggregated group eligible own funds, as provided
for in sub-regulation (2);
(b) the value in that participa ting insurance or reinsurance
undertaking of the related  insurance or reinsurance
undertakings and the aggregated group SolvencyCapital Requirement, as pr ovided for in sub-regulation
(3).
(2) The aggregated group eligible  own funds are the sum of the
following:
(a) the own funds eligible for the Solvency Capital
Requirement of the participating insurance orreinsurance undertaking;
(b) the proportional share of the participating insurance or
reinsurance undertaking in the own funds eligible for
the Solvency Capital Requirement of the related
INSURANCE BUSINESS (SUPERVISION OF INSURANCE 
AND REINSURANCE UNDERTAKINGS IN A GROUP) [S.L.403.17 25
insurance or reinsurance undertakings.
(3) The aggregated group Solvency Capital Requirement is the
sum of the following:
(a) the Solvency Capital Requirement of the participating
insurance or reinsurance undertaking;
(b) the proportional share of the Solvency Capital
Requirement of the related insurance or reinsurance
undertakings.
(4) Where, in a group, the partic ipation in the related insuranc e
or reinsurance undertakings consists, wholly or in part, of an
indirect ownership, the value in  the participating insurance or
reinsurance undertaking of the rel ated insurance or reinsurance
undertakings shall incorporate the value of such indirect
ownership, taking into account t he relevant successive interest s,
and the items referred to in sub- regulations (2)(b) and (3)(b) shall
include the corresponding proportional shares, respectively, of  the
own funds eligible for the Solvency Capital Requirement of therelated insurance or reinsuran ce undertakings and of the Solven cy
Capital Requirement of the related insurance or reinsurance
undertakings.
(5) Any application for permission to calculate the Solvency
Capital Requirement of author ised insurance undertakings,
authorised reinsurance undert akings, European insurance
undertakings or European reinsurance undertakings in the group,
on the basis of an internal mode l, submitted by the insurance o r
reinsurance undertaking concerned and its related undertakings,  or
jointly by the related undertakings of an insurance holding
company or mixed financial holding company, shall be submitted to
the group supervisor, or where t he competent authority is the g roup
supervisor of a group, the compet ent authority, as applicable, and in
such a case the provisions o f regulation 23 shall apply mutatis
mutandis .
(6) Where the competent authority is one of the authorities
responsible for the supervision of an individual insurance or
reinsurance undertaking in a group and is not the group supervi sor:
(a) in determining whether the aggregated group Solvency
Capital Requirement, as set out in sub-regulation (3),
appropriately reflects the risk profile of the group, itshall pay particular attention to any specific risks
existing at group level which  would not be sufficiently
covered, because they are difficult to quantify;
(b) it may impose a capital add-on to the aggregated group
Solvency Capital Requirement, where the risk profile
of the group deviates significantly from the
assumptions underlying the aggregated groupSolvency Capital Requirement.
(7) Article 37(1) to (5) of the Solvency II Directive, together
with the delegated act s and implementing t echnical standards ta ken
in accordance with Article 37(6), (7) and (8) of the Solvency I I
Directive, shall apply mutatis mutandis .
26 [S.L.403.17INSURANCE BUSINESS (SUPERVISION OF INSURANCE 
AND REINSURANCE UNDERTAKINGS IN A GROUP)
Group solvency of 
an insurance 
holding company 
or a mixed financial holding 
company.26. (1) Where the competent authority is the group supervisor
of a group, the authority shall, where authorised insurance
undertakings, authorised reinsurance undertakings, European
insurance undertakings or European reinsurance undertakings aresubsidiaries of an insurance holding company or of a mixed
financial holding company, ensure that the calculation of the
solvency of the group is carried out at the level of the insura nce
holding company or the mixed financial holding company applying
Article 220(2) to Article 233 of the Solvency II Directive.
(2) For the purpose of that cal culation, the insurance holding
company or mixed financial holdi ng company shall be treated as if
it were an insurance or reinsur ance undertaking  subject to the  rules
laid down in Articles 100 to 127 of the Solvency II Directive a s
regards the Solvency Capital Requirement and subject to the sam e
conditions as laid down in Articl e 87 to 99 of the Solvency II
Directive as regards the own fu nds eligible for the Solvency Ca pital
Requirement.
Subsidiaries of an 
insurance or 
reinsurance undertaking: 
conditions.27. (1) Where the competent authority is one of the authorities
responsible for the supervision of an individual insurance or
reinsurance undertaking in a group and is not the group supervi sor,
and an authorised insurance undertaking or an authorised
reinsurance undertaking is the subsidiary undertaking of an
authorised insurance undertaking, an authorised reinsuranceundertaking, a European insurance undertaking or a European
reinsurance undertaking, Article s 238 and 239 of the Solvency I I
Directive shall apply, where a ll of the following conditions ar e
satisfied:
(a) the subsidiary undertaking, in relation to which the
group supervisor, has not made a decision under
Article 214(2) of the Solvency II Directive is included
in the group supervision carried out by the groupsupervisor at the level of the parent undertaking in
accordance with Articles 212 to 266 of the Solvency II
Directive;
(b) the risk-management processes and internal control
mechanisms of the parent undertaking cover the
subsidiary undertaking and the parent undertaking
satisfies the competent authority regarding the prudentmanagement of the subsidiary;
(c) the parent undertaking has received the agreement
referred to in Article 246(4) of the Solvency II
Directive;
(d) the parent undertaking has received the agreement
referred to in Article 256(2) of the Solvency II
Directive;
(e) an application for permission to be subject to Articles
238 and 239 of the Solvency II Directive has been
submitted by the parent undertaking and a favourable
decision has been made on such application in
accordance with the procedure set out in Article 237 of
the Solvency II Directive.
INSURANCE BUSINESS (SUPERVISION OF INSURANCE 
AND REINSURANCE UNDERTAKINGS IN A GROUP) [S.L.403.17 27
(2) Where the competent authority is the group supervisor of a
group, and an authorised insurance undertaking or an authorisedreinsurance undertaking, a Europe an insurance undertaking or a
European reinsurance undertaki ng is the subsidiary undertaking of
an authorised insurance undertak ing, an authorised reinsurance
undertaking, a European insurance undertaking or a European
reinsurance undertaking, Articles 238 and 239 of the Solvency I I
Directive shall apply, where all of the following conditions ar e
satisfied:
(a) the subsidiary undertaking, in relation to which the
competent authority has not made a decision under
Article 214(2) of the Solven cy II Directive, is included
in the group supervision carried out by the group
supervisor at the level of the parent undertaking in
accordance with the se regulations;
(b) the risk-management processes and internal control
mechanisms of the parent undertaking cover the
subsidiary undertaking and the parent undertaking
satisfies the other responsible authorities in the groupregarding the prudent management of the subsidiary;
(c) the parent undertaking ha s received the agreement
referred to in Article 246(4) of the Solvency II
Directive;
(d) the parent undertaking ha s received the agreement
referred to in Article 256(2) of the Solvency II
Directive;
(e) an application for permission to be subject to Articles
238 and 239 of the Solvency II Directive has beensubmitted by the parent undertaking and a favourable
decision has been made on such application in
accordance with the procedure set out in Article 237 of
the Solvency II Directive.
Subsidiaries of an 
insurance or reinsurance 
undertaking: 
decision on the application.
Amended by:
L.N. 278 of 2021.28. (1) Where the competent authority is one of the authorities
responsible for the supervision of an individual insurance orreinsurance undertaking in a gr oup and is not the group supervi sor,
and where the subsidiary undertaking is an authorised insurance
undertaking or an authorised reinsurance undertaking, an
application for permission to subject that subsidiary undertaki ng to
the rules laid down in Articles 238 and 239 of the Solvency IIDirective, shall be submitted to the competent authority by its
parent undertaking. The competent authority shall, without dela y,
inform the other members of the college of supervisors and forw ard
the complete application to them.
(2) For the purposes of sub-regulation (1), the competent
authority shall work together with other European regulatory
authorities concerned, within the  college of supervisors, in fu ll
cooperation, to decide whether or not to grant the permissionsought and to determine the other terms and conditions, if any,  to
which such permission should be subjected.
(3) A joint decision by all the European regulatory authorities,
including the competent authority, within the college of
28 [S.L.403.17INSURANCE BUSINESS (SUPERVISION OF INSURANCE 
AND REINSURANCE UNDERTAKINGS IN A GROUP)
supervisors, shall be made within three months from the date of
receipt of the comp lete application.
(4) Where EIOPA does not take a decision in accordance with
Article 19 of Regulation (EU) N o 1094/2010 and where the compet ent
authority is the group supervisor, the competent authority shal l take
the final decision. The decision by the competent authority act ing as
group supervisor shall be recognised as determinative and shall  be
applied by all the regulato ry authorities concerned.
(5) If, in accordance with Articles 41(2) and (3) and Articles
44(1) and (3) of Regulation (EU) No 1094/2010, the decisionproposed by the panel is rejected, the final decision taken by the
group supervisor shall be recognised as determinative and shall  be
applied by all the regulatory authorities concerned.
(6) Where the competent authority is the group supervisor of
the group: 
(a) if within the three-month period or before a joint
decision has been reached, as  referred to in Article 273
of the Solvency II Direc tive, any of the European
regulatory authorities concerned has referred the
matter to EIOPA in accordance with Article 19 ofRegulation (EU) No 1094/2010, the competent
authority shall defer it s decision and await any
decision that EIOPA may take in accordance withArticle 19(3) of that Regulation, and shall take its
decision in conformity with EIOPA's decision. That
decision shall be recognised  as determinative and shall
be applied by the European regulatory authorities
concerned; and
(b) if, in accordance with Art icles 41(2) and (3) and
Articles 44(1) and (3) of Regulation (EU) No 1094/
2010, the decision proposed by the panel is rejected,
the competent authority shall take a final decision andthat decision shall be recognised as determinative and
shall be applied by the European regulatory authorities
concerned.
(7) Where the competent authority is one of the authorities
responsible for the supervision of an individual insurance orreinsurance undertaking in a gr oup and is not the group supervi sor:
(a) if a joint decision referred to in sub-regulation (3) has
been reached, it shall provid e the applicant referred to
in sub-regulation (1), with the decision stating the full
reasons, and such joint decision shall be recognised asdeterminative and shall be applied by the regulatory
authorities concerned;
(b) in the absence of a joint decision in accordance with
sub-regulation (3), the decision of the groupsupervisor with regard to the application shall be
recognised as determinative and applied by all the
regulatory authorities concerned.
(8) Where the competent authority is the group supervisor of a
INSURANCE BUSINESS (SUPERVISION OF INSURANCE 
AND REINSURANCE UNDERTAKINGS IN A GROUP) [S.L.403.17 29
group:
(a) in the absence of a joint  decision of the European
regulatory authorities concerned within the three-
month period set out in Article 237(2) of the SolvencyII Directive, the competent a uthority shall take its own
decision with regard to the application referred to in
Article 237(1) of the S olvency II Directive;
(b) during the three-month period referred to in paragraph
(a), the competent authority shall duly consider any
views and reservations of the European regulatory
authority concerned which authorised the subsidiary
undertaking and any reservations of the other
European regulatory authorities within the college ofsupervisors.
(9) A decision taken in accord ance with sub-re gulation (8),
shall state the full reasons and shall contain an explanation o f any
significant deviation from the reservations of the other Europe an
regulatory authorities concerned,  and shall provide the applica nt
and the other European regulatory authorities concerned with a
copy of the decision taken by the competent authority, which
decision shall be recognised as determinative and shall be appl ied
by the European regulator y authoritie s concerned.
Subsidiaries of an 
insurance or reinsurance 
undertaking: 
determination of the Solvency 
Capital 
requirement.29. (1) Where the subsidiary undertaking is an authorised
insurance undertaking or an auth orised reinsurance undertaking,
without prejudice to regulation 23, the Solvency Capital
Requirement of the subsidiary shall be calculated in accordance
with sub-regulations  (2) and (4) to (7).
(2) Where the Solvency Capital Requirement of the subsidiary
undertaking is calculated on the basis of an internal modelapproved at group level in accordance with regulation 23 and th e
competent authority con siders that the risk profile of the subs idiary
undertaking, deviates significantly from this internal model, a nd as
long as that undertaking does not properly address the concerns  of
the competent authority, the competent authority may, in the ca ses
referred to in Article 37 of  the Solvency II Directive: 
(a) propose to set a capital add-on to the Solvency Capital
Requirement of that subsidiary undertaking resulting
from the application of such model; or
(b) in exceptional circumstances where such capital add-
on would not be appropriate, to require thatundertaking to calculate its Solvency Capital
Requirement on the basis of the standard formula.
(3) Where the Solvency Capital Requirement of the subsidiary
undertaking is calculated on the basis of the standard formula and
the competent authority considers that the risk profile of thesubsidiary undertaking, deviates  significantly from the assumpt ions
underlying the standard formula, and as long as that undertakin g
does not properly address the concerns of the competent authori ty,
the competent authority may, in  exceptional circumstances, prop ose
that the undertaking replace a s ubset of the parameters used in  the
30 [S.L.403.17INSURANCE BUSINESS (SUPERVISION OF INSURANCE 
AND REINSURANCE UNDERTAKINGS IN A GROUP)
standard formula calculation b y parameters specific to that
undertaking when calculating the long-term business of insuranc e,
general business of insurance and health underwriting risk
modules, as set out in Article 110 of the Solvency II Directive , or in
the cases referred to in Article 37 of the Solvency II Directiv e, to
set a capital add-on to the Solvency Capital Requirement of tha t
subsidiary undertaking.
(4) In the cases referred to in sub-regulations (2) and (3):
(a) the competent authority shall discuss its proposal
within the college of supervisors and communicate thegrounds for such proposals to both the subsidiary
undertaking and the coll ege of supervisors; and
(b) the college of supervisors shall do everything within
its power to reach an agreem ent on the proposal of the
competent authority or on other possible measures and
the agreement reached shall be recognised as
determinative and shall be applied by the competentauthority and by the European regulatory authorities
concerned.
(5) Where the competent authority and the group supervisor
disagree, any one of them may, within one month from the propos al
of the competent authority and before an agreement has beenreached within the college of supervisors in accordance with su b-
regulation (4), refer the matter to EIOP A and request its assis tance
in accordance with Ar ticle 19 of Regulation (EU) No 1094/2010.
(6) In the circumstances refer red to in sub-regulation (5):
(a) the competent authority shall defer its decision and
await any decision  that EIOPA may take in accordance
with Article 19 of that Regulation;
(b) the competent authority shall take its decision in
conformity with EIOPA’s d ecision and shall state the
full reasons on which it is based; and
(c) the decision taken by the competent authority shall be
submitted to the subsidiary undertaking and to the
college of supervisors.
(7) In the cases referred to in Article 238(2) and (3) of the
Solvency II Directive, where the competent authority is the gro up
supervisor of a group, and where the competent authority and th e
European regulatory authority having authorised the subsidiary
undertaking disagree, the competent authority may, within one
month from the proposal and bef ore an agreement has been reache d
within the college of supervisors in accordance with Article 23 8(4)
of the Solvency II Directive, refer the matter to EIOPA and req uest
its assistance in accordance with  Article 19 of Regulation (EU)  No
1094/2010.
INSURANCE BUSINESS (SUPERVISION OF INSURANCE 
AND REINSURANCE UNDERTAKINGS IN A GROUP) [S.L.403.17 31
Subsidiaries of an 
insurance or reinsurance 
undertaking: non- 
compliance with the Solvency 
Capital 
Requirement and Minimum Capital 
Requirement.
Amended by:L.N. 63 of 2017.30. (1) Where the subsidiary undertaking is an authorised
insurance undertaking or an auth orised reinsurance undertaking,  in
the event of non-compliance with the Solvency Capital
Requirement and without prejudice to article 16 of the Act, the
competent authority shall, without delay, forward to the colleg e of
supervisors the recovery plan submitted by the subsidiary
undertaking, in order to achieve, within six months from the
observation of non-complianc e with the Solvency Capital
Requirement, the re-establishment of the level of eligible own
funds or the reduction of its risk profile to ensure compliance  with
the Solvency Cap ital Requirement.
(2) The college of supervisors shall do everything within its
power to reach an agreement on the proposal of the competentauthority in accordance with sub -regulation (1), regarding the
approval of the recovery plan within four months from the date on
which non-compliance with the Solvency Capital Requirement wasfirst observed.
(3) In the absence of an agr eement in accordance with sub-
regulation (2), the competent authority shall decide whether th e
recovery plan should be approved, taking due account of the vie ws
and reservations of the other Eu ropean regulatory authorities w ithin
the college of supervisors.
(4) Where the subsidiary undertaking is an authorised
insurance undertaking or an authorised reinsurance undertaking and
the competent authority identifi es, in accordance with Article 136
of the Solvency II Directive, d eteriorating financial condition s:
(a) it shall notify the college of supervisors without delay
of the proposed measures to be  taken, provided that, in
emergency situations, the measures to be taken shall
be discussed within the college of supervisors;
(b) the college of supervisors shall do everything within
its power to reach an ag reement on the proposed
measures to be taken within  one month of notification;
and
(c) in the absence of such agreement referred to in
paragraph ( b), the competent authority shall decide
whether the proposed measures shall be approved,
taking due account of the views and reservations of the
other European regulatory authorities within the
college of supervisors.
(5) In the event of non-compliance with the Minimum Capital
Requirement by a subsidiary undertaking, which is an authorised
insurance or reinsurance under taking and without prejudice to
article 18 of the Act, the competent aut hority shall:
(a) without delay, forward to the college of supervisors
the short-term finance scheme submitted to it by the
subsidiary undertaking, in order to achieve, within
three months from the date on which non-compliancew i t h  t h e  M i n i m u m  C a p i t a l  R e q u i r e m e n t  w a s  f i r s t
observed, the re-establishment of the level of eligible
own funds covering the Minimum Capital
32 [S.L.403.17INSURANCE BUSINESS (SUPERVISION OF INSURANCE 
AND REINSURANCE UNDERTAKINGS IN A GROUP)
Requirement or the reduction of its risk profile to
ensure compliance with the Minimum Capital
Requirement; and
(b) shall also inform the college of supervisors of any
measures taken to enforce the Minimum Capital
Requirement at the lev el of the subsidiary.
(6) The competent authority as one of the authorities
responsible for the supervision of an individual insurance or
reinsurance undertaking in a group and is not the group supervi sor,
or the group supervisor, as app licable, may refer the matter to
EIOPA and request its assistan ce in accordance w ith Article 19 of
Regulation (EU) No 1094/2010 where they disagree regardingeither of the following:
(a) on the approval of the recovery plan, including any
extension of the recovery period, within the four-
month period referred to in  sub-regulation (2); or
(b) on the approval of the pr oposed measures, within the
one-month period referred to in sub-regulation (4)(b).
(7) Where the competent authority is the group supervisor of a
group, in the circumstances ref erred to in Article 239 of the
Solvency II Directive, when the European regulatory authority
having authorised the subsidiary  undertaking and the competent
authority disagree, any one of th em may refer the matter to EIO PA
and request its assistance in a ccordance with Article 19 of
Regulation (EU) No 1094/2010, regarding either of the following :
(a) on the approval of the recovery plan, including any
extension of the recovery period, within the four-
month period referred to in Article 239(1) of theSolvency II Directive; or
(b) on the approval of the pr oposed measures, within the
one-month period referred to in Article 239 (2) of theSolvency II Directive.
(8) The matter shall not be referred to EIOPA:
(a) after the end of the four-month or the one-month
period respectively referred  to in sub-regulation (7)( a)
and ( b);
(b) after an agreemen t has been reached  within the college
of supervisors in accordance with Article 239(1) and
(2) of the Solvenc y II Directive; and
(c) in the case of emergency situations as referred to in
Article 239(2) of the Solvency II Directive.
(9) Where the subsidiary undertaking is an authorised
insurance undertaking or an auth orised reinsurance undertaking the
competent authority shall:
(a) defer its decision and await any decision that EIOPA
may take in accordance with Article 19(3) ofRegulation (EU) No 1094/2010;
(b) take its final decision i n conformity with EIOPA’s
INSURANCE BUSINESS (SUPERVISION OF INSURANCE 
AND REINSURANCE UNDERTAKINGS IN A GROUP) [S.L.403.17 33
decision, and state the full reasons on which that
decision is based, which decision shall be recognisedas determinative and shall be applied by the European
regulatory authorities concerned; and
(c) submit the decision referred to in paragraph ( b) to the
subsidiary undertaking and to the college ofsupervisors.
Subsidiaries of an 
insurance or 
reinsurance undertaking: end of 
derogations for a 
subsidiary.31. (1) Regulations 29 and 30 shall no longer be applicable
where:
(a) the condition referred to in Article 236(a) of the
Solvency II Directive is no longer complied with;
(b) the condition referred to in Article 236(b) of the
Solvency II Directive is no longer complied with andthe group does not restore compliance with this
condition in an appropria te period of time; or
(c) the conditions referred to in Article 236(c) and (d) of
the Solvency II Directive ar e no longer complied with.
(2) In the case referred to in sub-regulation (1)( a), where the
competent authority is the group supervisor of a group, and itdecides, after consulting the college of supervisors, to no lon ger
include the subsidiary undertaking in the group supervision it
carries out, it shall immediately inform the European regulator y
authority concerned and the parent undertaking.
(3) For the purposes of Article 236(b), (c) and (d) of the
Solvency II Direc tive, the parent undertaking shall:
(a) be responsible for ensuring that the conditions are
complied with on an ongoing basis;
(b) in the event of non-compliance, it shall inform,
without delay, the competent authority, where the
authority is the group supervisor of a group, and theEuropean regulatory authority of the subsidiary
undertaking concerned; and
(c) present a plan to restore compliance within an
appropriate period of time to the competent authority,where the authority is the group supervisor of a group,
and to the European regulatory authority of the
subsidiary undertaking concerned.
(4) Without prejudice to sub-regulation (3), where the
competent authority is the gr oup supervisor of a group, the
authority shall:
(a) verify at least annually, on its own initiative, that the
conditions referred to in regulation 27(2)( b), (c) and
(d) continue to be complied with; and
(b) also perform such verifi cation upon request from the
European regulatory authority concerned, where the
latter has significant concerns related to the ongoing
compliance with those conditions.
(5) Where the verification performed identifies weaknesses,
and where the competent authority is the group supervisor of a
34 [S.L.403.17INSURANCE BUSINESS (SUPERVISION OF INSURANCE 
AND REINSURANCE UNDERTAKINGS IN A GROUP)
group, the authority shall require the parent undertaking to pr esent
a plan to restore comp liance within an appropriate period of ti me.
(6) Where the competent authority is the group supervisor of a
group, and after consulting the college of supervisors, the aut hority
determines that the plan refer red to in sub-regulations (3)( b) or (5),
is insufficient or subsequently that it is not being implemente d
within the agreed period of time, the competent authority shall
conclude that the conditions referred to in regulation 27(2) ar e no
longer being complied with and it shall immediately inform the
European regulatory authority concerned.
(7) Where the parent undertaki ng submits a new application
and obtains a favourable decisi on in accordance with the proced ure
set out in regulation 27, the pr ovisions of regulations 29 and 30
shall apply again.
Subsidiaries of an 
insurance holding 
company and 
mixed financial holding company.32. Articles 236 to 242 of the Solvency II Directive shall apply
mutatis mutandis  to an authorised insurance undertaking, an
authorised reinsurance undertakings, a European insurance
undertaking or a European reinsurance undertaking, which is asubsidiary undertaking of an insurance holding company or a
mixed financial holding company.
Supervision of risk 
concentration and 
supervision of 
intra-group transactions.33. (1) Supervision of the risk concentration at group level
and supervision of intra-group transactions shall be exercised in
accordance with sub-regulations (2) and (3), regulation 34 and
Articles 247 to 259 of th e Solvency I I Directive.
(2) Subject to sub-regulation (4), an authorised insurance
undertaking, an authorised reinsurance undertaking, an insuranc e
holding company and a mixed financial holding company, shall
report, on a regular basis, and at least annually to the group
supervisor:
 (a) any significant risk concentr ation at the level of the
group, unless regulation 5( b) applies;
(b) all significant intra-group transactions by authorised
insurance undertakings, authorised reinsurance
undertakings, European insurance undertakings and
European reinsurance undertakings, within a group,including those performed with a natural person with
close links to an undertaking in the group, unless
regulation 5(b) applies; in addition, where an intra-group transaction is very significant, it shall be
reported as soon as practicable.
(3) The risk concentrations and intra-group transactions
referred to in sub-regulation (2 ), shall be subject to supervis ory
review by the group supervisor.
(4) The necessary information referred to in sub-regulation
(2)(a) and ( b) shall be submitted to the group supervisor:
(a) by the authorised insurance undertaking or authorised
reinsurance undertaking which is at the head of the
group; or
INSURANCE BUSINESS (SUPERVISION OF INSURANCE 
AND REINSURANCE UNDERTAKINGS IN A GROUP) [S.L.403.17 35
(b) where the group is not headed by an authorised
insurance undertaking or an authorised reinsuranceundertaking, by the insurance holding company, or by
the mixed financial holding company, or by the
authorised insurance und ertaking, authorised
reinsurance undertaking, European insurance
undertaking or European reinsurance undertaking in
the group, as may be identified by the group
supervisor, after consulti ng the competent authority,
the other European regulat ory authorities concerned
and the group.
(5) Where the competent authority is the group supervisor of a
group, the authority shall:
(a) carry out a superviso r y  r e v i e w  o f  t h e  r i s k
concentrations and intr a-group transactions;
(b) identify, taking into account the specific group and
risk management structure of the group, the type of
risks and intra-group trans actions which insurance and
reinsurance undertakings, in the group, shall report to
the competent authorit y in all circumstances;
(c) impose appropriate thre sholds based on solvency
capital requirements, technical provisions, or both, inorder to identify which significant risk concentrations
and significant intra-group transactions shall be
reported;
(d) where the group is not headed by an insurance or
reinsurance undertaking, identify the insurance
holding company, mixed financial holding company,
authorised insurance und ertaking, authorised
reinsurance undertaking, European insurance
undertaking or European reinsurance undertaking, in a
group, responsible for submitting the informationrequired under Articles 244(2) and 245(2) of the
Solvency II Directive;
(e) review the risk concentra tions of a group and intra-
group transactions at group  level, and in particular
monitor the possible risk of contagion within the
group, the risk of a conflict of interests and the level or
volume of risks.
(6) The competent authority shall consult the group and the
other European regulatory authorities concerned in the supervis ion
of the group whilst carrying out the activities referred to in sub-
regulation (5)( b) to ( d).
(7) Where the competent authority is one of the authorities
responsible for the supervision of an individual insurance or
reinsurance undertaking in a gr oup and is not the group supervi sor,
and the competent authority is consulted by the group superviso r in
relation to the supervision of r isk concentration at group leve l or
the reporting of intra-group transactions, the competent author ity
shall, when giving its opinion about the type of risks to be re ported,
take into account the specific group and risk management struct ure
36 [S.L.403.17INSURANCE BUSINESS (SUPERVISION OF INSURANCE 
AND REINSURANCE UNDERTAKINGS IN A GROUP)
of the group.
Supervision of the 
system of governance.34. (1) The requirements set out in Articles 40 to 49 of the
Solvency II Directive shall apply mutatis mutandis , at the level of
the group.
(2) Without prejudice to sub-regulation (1), the risk
management and internal control systems and reporting procedure s
shall be implemented consistently in all the undertakings inclu ded
in the scope of group supervision pursuant to regulation 3(2)( a) and
(b) so that those systems and reporting procedures can be
controlled at the level of the group.
(3) Without prejudice to sub-regulation (1), the group internal
control mechanisms shall include at least the following:
 (a) adequate mechanisms as regards group solvency to
identify and measure all material risks incurred and to
appropriately relate eligible own funds to risks;
(b) sound reporting and accounting procedures to monitor
and manage the intra-group transactions and the risk
concentration.
(4) The systems and reporting procedures referred to in sub-
regulations (1) to (3) shall be subject to supervisory review b y the
group supervisor or in accordance with the rules laid down in
regulations 35 to 43.
(5) A participating insurance undertaking or reinsurance
undertaking, or the insurance holding company or the mixed
financial holding company, shall undertake at the level of the group
the assessment required by Article 45 of the Solvency II Direct ive.
The own-risk and solvency assessment conducted at group level
shall be subject to supervisory review by the group supervisor in
accordance with regul ations 35 to 43.
(6) Where the calculation of the solvency at the level of the
group is carried out in accordance with method 1, as referred t o in
regulation 22, the participating insurance or reinsurance
undertaking, or the insurance holding company or the mixedfinancial holding company, shall provide to the group superviso r a
proper understanding of the difference between the sum of the
Solvency Capital Requi rements of all the related insurance or
reinsurance undertakings of the group and the group consolidate d
Solvency Capital Requirement.
(7) The participating insurance or reinsurance undertaking, the
insurance holding company or  the mixed financial holding
company, may, subject to the agr eement of the group supervisor,
undertake any assessments required pursuant to Article 45 of th e
Solvency II Directive at the lev el of the group and at the leve l of
any subsidiary undertaking in th e group at the same time, and m ay
produce a single document covering all the assessments.
(8) Where the group exercises the option provided in sub-
regulation (7), it shall submit the document to all the Europea n
regulatory authorities concerned at the same time, and the exer cise
of that option shall not exempt the subsidiaries concerned from  the
INSURANCE BUSINESS (SUPERVISION OF INSURANCE 
AND REINSURANCE UNDERTAKINGS IN A GROUP) [S.L.403.17 37
obligation to ensure that the requirements of Article 45 of the
Solvency II Dir ective are met.
(9) Where the competent authority is the group supervisor of a
group, the authority shall:
(a) review the risk management and internal control
systems and reporting procedures implemented by thegroup in accordance with Art icle 246(1) and (2) of the
Solvency II Directive;
(b) review the own-risk and solvency assessment
conducted at group leve l by the group; and
(c) consult the members of the c ollege of supervisors and
duly take into account their views and reservations
before granting an agreement to a request from aparticipating insurance or reinsurance undertaking,
insurance holding company or mixed financial holding
company to undertake its own-risk and solvencyassessment in accordance with Article 45 of the
Solvency II Directive, at the level of the group and at
the level of any subsidiary in the group at the sametime, and produce a single document covering all such
assessments.
PART III
Measures to facilitate group supervision
Group supervisor. 35. (1) The group supervisor designated from among the
competent authority and the Eu ropean regulatory authorities
concerned, shall be responsible for coordination and exercise o f
group supervision.
(2) Where the competent authority is the supervisor of all the
insurance undertakings and reinsurance undertakings in a group,
the competent authority shall be  the group supervisor of the gr oup.
(3) In all other cases and subject to Article 247(3) of the
Solvency II Directive:
(a) where the group is headed by an authorised insurance
undertaking or an authorised reinsurance undertaking,
the competent authority shall be the group supervisor
of the group;
(b) where the group is not headed by an insurance or
reinsurance undertaking, the competent authority is thegroup supervisor of a group in any of the following
circumstances:
(i) where an insurance undertaking or reinsurance
undertaking has an insurance holding companyor a mixed financial holding company as a
parent, and the competent authority has
authorised that insurance undertaking orreinsurance undertaking;
(ii) where the group contains two or more insurance
undertakings or reinsurance undertakings which
have their head offices in Member States or EEA
38 [S.L.403.17INSURANCE BUSINESS (SUPERVISION OF INSURANCE 
AND REINSURANCE UNDERTAKINGS IN A GROUP)
States, and such undertakings have the same
insurance holding company or mixed financial
holding company as a p arent, and one of such
undertakings has been authorised by the
competent authority, and the insurance holding
company or mixed financial holding companyhas its head office in Malta;
(iii) where the group is headed by two or more
insurance holding compan ies or mixed financial
holding companies which have their head officesi n  d i f f e r e n t  M e m b e r  S t a t e s  o r  E E A  S t a t e s ,  a n d
there is an insurance u ndertaking or reinsurance
undertaking in the group in each of thoseMember States or EEA States, and the competent
authority has authorised the insurance
undertaking or reinsurance undertaking with thelargest balance sheet total;
(iv) where two or more insurance undertakings or
reinsurance undertakings which have their head
o f f i c e s  i n  M e m b e r  S t a t e s  o r  E E A  S t a t e s ,  h a v ethe same insurance hold ing company or mixed
financial holding company as their parent, and
none of those undertakings has been authorisedin the Member State or EEA State in which the
insurance holding company or mixed financial
holding company has its head office, and thecompetent authority has a uthorised the insurance
undertaking or reinsurance undertaking with the
largest balance sheet total; or
(v) where the group is a group without a parent
undertaking, or in any circumstances not
referred to in sub-paragraphs (i) to (iv), and the
competent authority has a uthorised the insurance
undertaking or reinsurance undertaking with the
largest balance sheet total.
(4) Where another European regulatory authority has been
designated as the group supervisor in accordance with Article 2 47
of the Solvency II Directive, the competent authority shall
recognise that supervisory author ity as the group supervisor of  the
group.
Exceptions to the 
rule for deciding 
the group supervisor.36. (1) Notwithstanding regulation 35:
(a) the competent authority is the group supervisor of a
group, if all the supervisor y authorities concerned take
a joint decision that the competent authority shall be
the group supervisor; and
(b) the competent authority must recognise a joint
decision taken by all th e supervisory authorities
concerned that a supervisory authority other than the
competent authority shall be the group supervisor of agroup.
INSURANCE BUSINESS (SUPERVISION OF INSURANCE 
AND REINSURANCE UNDERTAKINGS IN A GROUP) [S.L.403.17 39
(2) The competent authority may request the other supervisory
authorities concerned to consider whether:
(a) the criteria specified in Article 247(2) of the Solvency
II Directive are appropriate for determining whichsupervisory authority shall be the group supervisor;
and
(b) a supervisory authority other than the supervisory
authority satisfying those criteria shall be the group
supervisor.
(3) The competent authority may make a request referred to in
sub-regulation (2) not more than once a year.
(4) Where the supervisory authorities responsible for the
supervision of an insurance or reinsurance undertaking are
considering, at the request of th e competent authority or of an other
supervisory authority, whether the criteria are appropriate or
whether a particular supervisor y authority shall be the group
supervisor:
(a) the competent authority shall do everything in its
power to reach a joint decision on the request within aperiod of three months commencing on the date of the
request;
(b) the competent authority shall permit the group
concerned to give its opinion on the request;
(c) t h e  c o m p e t e n t  a u t h o r i t y  m a y  r e f e r  t h e  m a t t e r  t o
EIOPA, in accordance with A rticle 19 of Regulation
(EU) No 1094/2010, within a period of three months
commencing with the date of the request;
(d) where the matter is referred to EIOPA, the competent
authority shall take a joi nt decision in accordance with
any decision taken by EIOPA, and where the
competent authority is designated as group supervisorof a group, the competent authority shall submit the
joint decision to the group and to the college of
supervisors stating the full reasons;
(e) where the matter is not referred to EIOPA or EIOPA
takes no such decision on such a referral, the
competent authority may tak e a joint decision with the
other European regulatory authorities that:
(i) the criteria referred to in Article 247(2) of the
Solvency II Directive ar e inappropriate, taking
into account the structu re of the group and the
relative importance of the activities ofauthorised insurance undertakings, authorised
reinsurance undertakings, European insurance
undertakings, and European reinsuranceundertakings, in the different countries; and
(ii) a supervisory authority, other than the
supervisory authority sa tisfying the criteria,
shall be the group supervisor; and
(f) where the joint decision designates the competent
40 [S.L.403.17INSURANCE BUSINESS (SUPERVISION OF INSURANCE 
AND REINSURANCE UNDERTAKINGS IN A GROUP)
authority as the group supervisor of a group, the
competent authority shall su bmit the joint decision to
the group and to the college of supervisors stating thefull reasons.
(5) In the absence of a joint  decision referred to in sub-
regulation (4), the task of the group supervisor shall be exerc ised
by the supervisory authority identified in accordance with Arti cle
247(2) of the Solv ency II Directive.
Rights and duties 
of the group 
supervisor and the other supervisors 
(College of 
supervisors).37. (1) Where the competent authority is the group supervisor
of a group, the authority shall, in order to facilitate the exe rcise of
the group supervision tasks, carry  out the functions referred t o in
article 32B(3) of the Act.
(2) In order to facilitate the exe rcise of the tasks referred to  in
sub-regulation (1), the competent authority shall establish and  chair
a college of superv isors comprising:
(a) the competent authority;
(b) the supervisory authorities of the Member States or
EEA States in which the head office of everysubsidiary undertaking in the group is situated; and
(c)E I O P A .
(3)  The competent author ity as group supervisor:
(a) shall permit the European  regulatory authorities of
significant branches and related undertakings toparticipate in the college of supervisors, provided that
their participation is limited to achieving an efficient
exchange of information;
(b) shall ensure that the processes for cooperation,
exchange of information and consultation between the
competent authorit y and the other European regulatory
authorities that are members of the college ofsupervisors, are effectivel y applied in accordance with
Articles 212 to 266 of the Solvency II Directive, with a
view to promoting the convergence of their respectivedecisions and activities;
(c) may agree with the other European regulatory
authorities concerned th at some activities of the
college of supervisors be carried out by a reducednumber of European regulat ory authorities where the
effective functioning of the college of supervisors
requires it;
(d) shall, without prejudice to any measure adopted
pursuant to the Solvency  II Directive, conclude
coordination arrangements with the other European
regulatory authorities for the establishment andfunctioning of the col lege of supervisors.
 (4) The coordination arrangements referred to in sub-regulation
(3)(d):
(a) shall specify the procedures for:
INSURANCE BUSINESS (SUPERVISION OF INSURANCE 
AND REINSURANCE UNDERTAKINGS IN A GROUP) [S.L.403.17 41
(i) the decision-making process among the
supervisory authorities concerned in accordancewith Articles 231, 232 and 247 of the Solvency
II Directive;
(ii) consultation under Articles 218(5) and 248(4) of
the Solvency II Directive; and 
(b) may, in addition, set out procedures for:
(i) consultation among the supervisory authorities
concerned, in particular as referred to in Articles
213 to 217, 219 to 221, 227, 244 to 246, 250,256, 260 and 262 of the S olvency II Directive;
(ii) cooperation with other supervisory authorities.
(5) Without prejudice to the rights and duties allocated by the
Solvency II Directive, the coordination arrangements may entrus t
additional tasks to:
(a) the competent authority:
(i) where it is the group s upervisor of a group; or
(ii) where it is one of the authorities responsible for
the supervision of an individual insurance or
reinsurance undertaking in a group and is not thegroup supervisor; or
(b)E I O P A ,
and, in each case, where this would result in the more efficien t
supervision of the group and would not impair the supervisory
activities of the members of the college of supervisors in resp ect of
their individual responsibilities.
(6) Where diverging views concerning the coordination
arrangements arise:
(a) any member of the college of supervisors may refer the
matter to EIOPA and request its assistance inaccordance with Article 19 of Regulation (EU) No
1094/2010; and
(b) where the competent authority is the group supervisor
of a group, the authority shall:
 (i) where it has received advice from EIOPA, after
consulting the European r egulatory authorities
concerned, duly consider any advice produced
by EIOPA within two months of the receiptthereof, before taking  its final decision;
(ii) take its final decision in conformity with
EIOPA’s decision;
(iii) ensure that the decisi on states the full reasons
and contains an explanation of any significantdeviation from any advice given by EIOPA;
(iv) transmit that decision t o the European regulatory
authorities concerned.
(7) The competent authority as group supervisor, shall send
EIOPA any information on the functioning of the college of
42 [S.L.403.17INSURANCE BUSINESS (SUPERVISION OF INSURANCE 
AND REINSURANCE UNDERTAKINGS IN A GROUP)
supervisors and any difficulties encountered that are relevant for
EIOPA’s reviews of the operational functioning of colleges of
supervisors.
Cooperation with 
authorities 
responsible for credit institutions 
and investment 
firms.38. (1) Where an authorised insurance undertaking, an
authorised reinsurance undertaking, a European insurance
undertaking or a European reinsurance undertaking and either acredit institution as defined in Directive 2013/36/EU of the
European Parliament and of the  Council of 26 June 2013 on acces s
to the activity of credit institutions and the prudential super vision
of credit institutions and investment firms, or an investment f irm as
defined in Directive 2004/39/EC, or both, are directly or indir ectly
related or have a common participating undertaking, the compete nt
authority or the European regulatory authorities concerned and the
authorities responsible for the supervision of those credit
institutions or investment firms shall cooperate closely.
(2) Without prejudice to their respective responsibilities, thos e
authorities referred to in sub-re gulation (1) shall provide one
another with any information likely to simplify their task, in
particular as set out in Title III of the Solvency II Directive .
Access to 
information.39. (1) The competent authority shall have access to any
information relevant for the pur pose of that supervision regard less
of the nature of the undertaking concerned and Article 35(1) to  (5)
of the Solvency II Directive shall apply mutatis mutandis .
(2) Where the competent authority has requested the
information from all the European regulatory authorities in the
group, and none of them has provided such information to the
competent authority, within a reasonable period of time, theauthority may address the undertakings in the group directly to
obtain the necessary information.
(3) Where the competent authority is the group supervisor of a
group, the authority may:
(a) limit regular supervisory reporting with a frequency
shorter than one year at the level of the group where
all authorised insurance undertakings, authorised
reinsurance undertaking s, European insurance
undertakings and European reinsurance undertakings
within the group, benefit from the limitation inaccordance with Article 35 (6) of the Solvency II
Directive taking into acco unt the nature, scale and
complexity of the risks inherent in the business of thegroup;
(b) exempt from reporting on an item-by-item basis at the
level of the group where all authorised insurance
undertakings, authorised reinsurance undertakings,
European insurance undertakings and European
reinsurance undertakings within the group, benefitfrom the exemption in acco rdance with Article 35(7)
of the Solvency II Directiv e, taking into account the
nature, scale and complexity  of the risks inherent in
the business of the group and  the objective of financial
INSURANCE BUSINESS (SUPERVISION OF INSURANCE 
AND REINSURANCE UNDERTAKINGS IN A GROUP) [S.L.403.17 43
stability.
Group solvency 
and financial 
condition report.40. (1) A participating insurance and reinsurance undertaking,
insurance holding company and a mixed financial holding company
shall disclose publicly, on an annual basis, a report on the so lvency
and financial condition at the level of the group, and Articles  51,
53, 54 and 55 of the Solvency II Directive shall apply mutatis
mutandis .
(2) A participating insurance or  reinsurance undertaking, an
insurance holding company or a mixed financial holding companyreferred to in sub-regulation (1) may, subject to the agreement  of
the group supervisor, provide a single report on its solvency a nd
financial condition which shall comprise the following:
(a) the information at the level of the group to be
disclosed in accordance with sub-regulation (1); and
(b) the information for any of the subsidiaries within the
group, which information must be individually
identifiable and must be disclosed in accordance with
Articles 51, 53, 54 and 55 of the Solvency II Directive.
(3) Before an agreement is grant ed by the group supervisor in
accordance with sub-regulation (2), the competent authority, wh en
consulted by the group supervisor, may submit its views or make
reservations.
(4) Where a subsidiary undertak ing is an authorised insurance
undertaking or authorised reins urance undertaking, and such
undertaking fails to include information which the competentauthority requires comparable undertakings to provide, and wher e
the omission is material, the competent authority shall have th e
power to require the subsidiary undertaking concerned to disclo se
the necessary additional information.
(5) Where the competent authority is the group supervisor of a
group and the authority has received a request from a participa ting
insurance and reinsurance undertaking, an insurance holding
company or a mixed financial  holding company, for such
undertaking or company to be able to provide a single solvency and
financial condition report, the competent authority shall consu lt
and duly take into account any views and reservations of the ot her
members of the college of supervisors, before agreeing to the
request.
Public disclosure 
of group structure.41. An insurance and reinsurance undertaking, an insurance
holding company and a mixed financial holding company shall
disclose publicly, at the level of the group, on an annual basi s, the
legal structure and the governance and organisational structure ,
including a description of all s ubsidiary undertakings, materia l
related undertakings and signific ant branches belonging to the
group.
44 [S.L.403.17INSURANCE BUSINESS (SUPERVISION OF INSURANCE 
AND REINSURANCE UNDERTAKINGS IN A GROUP)
Administrative, 
management or 
supervisory body 
of insurance holding companies 
and mixed 
financial holding companies.42. The competent authority shal l require that all persons who
effectively run the insurance holding company or the mixed
financial holding company whose head office is in Malta, are fi t
and proper to perform their duties and Article 18I(2)(a) of the  Act
shall apply mutatis mutandis .
Enforcement 
measures.43. (1) Where authorised insuran ce undertakings, authorised
reinsurance undertakings, European insurance undertakings andEuropean reinsurance undertakings in a group, do not comply wit h
the requirements provided for in Articles 218 to 246 of the
Solvency II Directiv e, or where the requ irements are met but
solvency may nevertheless be jeo pardised or where the intra-gro up
transactions or the risk concentr ations are a threat to the fin ancial
position of such undertakings, measures necessary to rectify th e
situation as soon as pos sible shall be adopted:
(a) where the competent authority is the group supervisor
of a group, by:
(i) the competent authority with respect to:
(aa) insurance holding companies and mixed
financial holding companies; and
(bb) authorised insurance undertakings and
authorised reinsurance undertakings;
(ii) the European regulator y authorities with respect
to European insurance undertakings and
European reinsur ance undertakings;
(b) where the competent authority is one of the authorities
responsible for the supervision of an individual
insurance or reinsurance und ertaking in a group and is
not the group supervisor, by:
(i) the group supervisor with respect to insurance
holding companies and mixed financial holding
companies; and
(ii) the competent auth ority, with respect to
authorised insurance undertakings andauthorised reinsur ance undertakings.
(2) Where in the case referred to in sub-regulation (1)( a)(i), the
competent authority is not one o f the supervisory authorities o f the
Member State in which the insurance holding company or mixed
financial holding company has its head office, the competentauthority shall inform the European regulatory authorities
concerned of its findings with a view to enabling them to take the
necessary measures.
(3) In the case referred t o in sub-regulation (1)( a)(ii), the
competent authority shall in form the European regulatory
authorities concerned of its findings with a view to enabling t hem
to take the necessary measures.
(4) Without prejudice to regulatio n 49, the competent authority
shall determine the measures whi ch may be taken with respect to
insurance holding companies and mixed financial holding
INSURANCE BUSINESS (SUPERVISION OF INSURANCE 
AND REINSURANCE UNDERTAKINGS IN A GROUP) [S.L.403.17 45
companies, whose head  office is in Malta.
(5) Where the competent authority is the group supervisor of a
group, or where the competent authority is one of the authoriti es
responsible for the supervision of an individual insurance orreinsurance undertaking in a gr oup and is not the group supervi sor,
the competent authority shall, where appropriate, coordinate an y
measures it may take, with the European regulatory authoritiesconcerned or with the group supervisor, as applicable.
PART IV
Third countries
Parent 
undertakings 
outside the Union: verification of 
equivalence.44. (1) In the case referred to in regulation 3(2)(c), the
competent authority shall verify  whether an authorised insuranc e
undertaking and authorised reinsurance undertaking, the parentundertaking of which has its head  office in a third country is
subject to supervision, by an overseas regulatory authority whi ch is
equivalent to that set out in Articles 212 to 266 of the Solven cy II
Directive, on the supervision at the level of the group of insu rance
and reinsurance undertakings referred to in Article 213(a) and (b)
of the Solvency II Directive.
(2) Where no delegated act has been adopted in accordance
with Articles 260(2), (3) and (5) of the Solvency II Directive,  the
verification referred to in sub-regulation (1), shall be carrie d out by
the competent authority, which would be the group supervisor if  the
criteria set out in Article 247(2) of the Solvency II Directive  were
to apply (the "acting group supervisor"), at the request of the  parent
undertaking or of any of the authorised insurance undertakings,
authorised reinsurance undert akings, European insurance
undertakings or European reinsurance undertakings, or on its ow n
initiative.
(3) Where the competent authority, is the acting group
supervisor, the authority:
(a) shall, with the assistance of EIOPA, consult the
supervisory authorities concerned before taking a
decision on equivalence;
(b) shall, where applicable, take a decision on equivalence
in accordance with the criteri a set out in any delegated
act adopted by the European Commission pursuant toArticle 260(2) of the S olvency II Directive;
(c) shall not take any decision in relation to a third
country that is in opposition to any previous decision
taken vis-à-vis that third c ountry, except where it is
necessary to take into account significant changes to
the supervisory regime laid down in Title I of the
Solvency II Directive and to  the supervisory regime in
the third country; and
(d) shall notify its decision to the supervisory authorities
concerned.
(4) Where the competent authority is not the acting group
supervisor and disagrees with the decision on equivalence taken  by
46 [S.L.403.17INSURANCE BUSINESS (SUPERVISION OF INSURANCE 
AND REINSURANCE UNDERTAKINGS IN A GROUP)
the acting group supervisor in accordance with the third sub-
paragraph of Article 260 of the S olvency II Directive, it may r efer
the matter to EIOPA and reques t its assistance in accordance wi th
Article 19 of Regulation (EU) No 1094/2010, within three months
after notification of that deci sion by the acting group supervi sor.
(5) Where a delegated act determining that the prudential
regime of a third country is tem porarily equivalent, is adopted  in
accordance with Article 260(5) of the Solvency II Directive, th e
competent authority shall apply regulation 45, unless there is an
authorised insurance undertaking, an authorised reinsurance
undertaking, a European insurance undertaking, or a Europeanreinsurance undertaking, in the group, which has a balance shee t
total that exceeds the balance s heet total of the parent undert aking
situated in a third co untry. In that case, the task of the grou p
supervisor shall be exercised by the acting group supervisor.
Parent 
undertakings 
outside the 
Community: equivalence.45. (1) In the event of equivalent supervision referred to in
Article 260 of the Solvency II Di rective, the competent authori ty
shall rely on the equivalent group supervision exercised by the
overseas regulatory authorities,  in accordance with sub-regulat ion
(2).
(2) Articles 247 to 258 of the Solvency II Directive shall apply
mutatis mutandis  in relation to the cooperation with the overseas
regulatory authorities.
Parent 
undertakings 
registered in a third 
country: absence of equivalence.46. (1) Where regulation 3(2)( c) applies, in the absence of
equivalent supervision referred to in Article 260 of the Solven cy II
Directive, or where the compet ent authority as the acting group
supervisor does not apply Article 261 of the Solvency II Direct ive
in the event of temporary equivalence in accordance with Articl e
260(7) of the Solvency II Direct ive, the competent authority sh all
apply either of the following to authorised insurance undertaki ngs
and authorised reinsurance undertakings:
(a) Articles 218 to 235, and Articles 244 to 258 of the
Solvency II Directive, mutatis mutandis ; or
(b) any other method which:
(i) ensures appropriate supervision of the insurance
and reinsurance undertakings in a group;
(ii) allows the objectives o f the group supervision as
defined in Title III of t he Solvency II Directive
to be achieved.
(2) The general principles and methods set out in Articles 218
to 258 of the Solvency II Directive shall apply at the level of  the
insurance holding company, mix ed financial holding company,
third-country insurance undertaking or third-country reinsuranc e
undertaking.
(3) For the sole purpose of the group solvency calculation, the
parent undertaking shall be treated as if it were an insurance or
reinsurance undertaking subject to the same conditions as laiddown in Articles 87 to 99 of the  Solvency II Directive as regar ds
the own funds eligible for the Solvency Capital Requirement, an d
INSURANCE BUSINESS (SUPERVISION OF INSURANCE 
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to either of the following:
(a) a Solvency Capital Requirement determined in
accordance with the principles of Article 226 of the
Solvency II Directive where the parent undertaking is
an insurance holding comp any or mixed financial
holding company; or
(b) a Solvency Capital Requirement determined in
accordance with the principles of Article 227 of the
Solvency II Directive, whe re the parent undertaking is
a third-country insurance undertaking or a third-country reinsurance undertaking.
(4) The reference in sub-regulation (1)( b) to any other method,
may include:
(a) requiring the establishment of an insurance holding
company which has its head office in a Member State
or EEA State, or a mixed financial holding company
which has its head office in a Member State or EEAState; and
(b) applying Articles 212 to 266 of the Solvency II
Directive to the insurance and reinsurance
undertakings in the group headed by that insuranceholding company or mixed financial holding company.
(5) Before applying any other method under sub-regulation
(1)(b), the competent authority shall:
(a) w h e r e  i t  i s  t h e  g r o u p  s u p e r v i s o r ,  c o n s u l t  t h e  o t h e r
supervisory authorities con cerned in the supervision of
the group;
(b) where it is one of the authorities responsible for the
supervision of an individual insurance or reinsuranceundertaking in a group and i s not the group supervisor,
agree the method with the group supervisor.
(6) Where the competent authority is the group supervisor, and
where the competent au thority applies any other method under su b-
regulation (1)( b), it shall notify the European Commission and the
other supervisory authorities concerned.
Parent 
undertakings 
outside the 
Community: levels.47. (1) Subject to sub-regulation (2), where the parent
undertaking referred to in regulation 3(2)( c) is itself a subsidiary
undertaking of:
(a) an insurance holding company which has its head
office in a third country;
(b) a mixed financial holding company which has its head
office in a third country;
(c) a third-country insurance undertaking; or
(d) a third-country reinsurance undertaking,
the verification provided for in regulation 44 shall apply only  at the
level of the ultimate parent undertaking which is a third-count ry
insurance holding company, a third-country mixed financial
holding company, a third-country insurance undertaking or a thi rd-
48 [S.L.403.17INSURANCE BUSINESS (SUPERVISION OF INSURANCE 
AND REINSURANCE UNDERTAKINGS IN A GROUP)
country reinsurance undertaking.
(2) The competent authority, as the acting group supervisor,
may, however, in the absence of equivalent supervision referred  to
in Article 260 of the Solvency  II Directive, carry out a new
verification at a lower level where a parent undertaking of anauthorised insurance undertaking or an authorised reinsurance
undertaking exists, whether at t he level of a third-country ins urance
holding company, a third country mixed financial holding compan y,
a third-country insurance undertaking or a third-country
reinsurance undertaking.
(3) In such a case referred to in sub-regulation (2), where the
competent authority is the acting  group supervisor in accordanc e
with regulation 44(2), it shall explain its decision to the gro up.
(4) Article 262 of the Solvency II Directive shall apply mutatis
mutandis .
PART V
Mixed-activity insurance holding companies
Mixed-activity 
insurance holding 
companies: Intra-
group transactions.48. (1) In the case referred to in regulation 3(2)( d), where the
parent undertaking of one or more insurance undertakings or
reinsurance undertakings is a mixed-activity insurance holding
company and the competent author ity supervises one or more of t he
insurance undertakings or reinsurance undertakings in the group ,
the competent authority shall ex ercise general supervision over
transactions between:
(a) the mixed-activity holding company and its related
undertakings; and
(b) the authorised insurance undertakings or authorised
reinsurance undertakings s upervised by the competent
authority.
(2) Articles 245, 249 to 255 and 258 of the Solvency II
Directive shall apply mutatis mutandis .
PART VI
General provisions
Penalties. 49. (1) Any insurance holding company and mixed financial
holding company, or any person  effectively managing those
companies, who contravenes any  of the provisions of these
regulations, applicable to them, shall be liable to an administ rative
penalty which may not be greater than a financial penalty of on e
hundred and fifty thousand euro (€150,000) in respect of eachinfringement or failure to comply, as the case may be, and, whe re
such infringement or failure to comply continues, a further pen alty
not exceeding one hundred and six teen euro (€116) for each day
during which the infringement or failure to comply continues:
Provided further that a penalty imposed under this
regulation, whether in the form of a fixed amount, a daily pena lty,
or both, may, in no case, exceed one hundred and fifty thousandeuro (€150,000).
INSURANCE BUSINESS (SUPERVISION OF INSURANCE 
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(2) The competent authority shall cooperate closely with the
European regulatory authorities concerned, to ensure that thesanctions or measures referred to  in Article 258(3) of the Solv ency
II Directive are effective, in particular where the central
administration or main establishment of an insurance holdingcompany or mixed financial hol ding company is not located in
Malta.
Insurance Rules. 50. (1) For the better carrying out of these regulations, the
competent authority m ay, from time to time , issue Insurance Rul es.
(2) Such Insurance Rules may contain such incidental,
supplementary and consequential provisions as appear to the
competent authority to be expedient for the purposes of theseregulations.