The FSA Handbook (rule 9.2 of IPRU(INS)) requires a non-EEA insurer to file an FSA return as follows:
Any other company (one whose head office is outside the EEA and
whose only EEA business is in the UK) must file a global return and
a UK branch return.
Each of the forms in the FSA return contains a narrative
heading ‘Global business/UK branch business/EEA branch
business’ and a heading ‘GL/UK/CM’. The
appropriate item is identified by deleting the others.
There are particular requirements for Form 13 – a
separate form is required for deposited assets, assets maintained
in the UK and those maintained in the UK and other EEA States.
These assets will be ones which are appropriated to the UK branch,
even though not necessarily held in the UK. This format is required
to demonstrate that the company has UK branch assets equal to the
UK margin of solvency.
A note to Form 20 (revenue account for general business)
must for each accounting class give separately for business
accounted for on an accident year basis and on an underwriting year
basis the following
For this purpose, gross premiums written must be shown or
included as ‘UK premiums’ if, in the case of direct or
facultative reinsurance, the contract of insurance was effected in
the United Kingdom or if, in the case of a reinsurance treaty, the
cedant was an insurer with head office in the UK or was a member of
Lloyd’s. ‘Overseas premiums’ are other premiums.
Gross written premiums are those shown in the profit and loss
account at general business technical account item I.1.(a). Net
written premiums are after reinsurance premiums payable on
reinsurance ceded.
The directors’ certificate on the return must certify
that the requirements as to solvency margins and maintenance of
assets have been observed.
