Regulations amending Finansinspektionen’s regulations on non-life insurance contingency reserves (FFFS 2015:19)

Finansinspektionen’s Regulatory Code Publisher: Finansinspektionen, Sweden, www.fi.se ISSN 1102-7460 This translation is furnished for information purposes only and is not itself a legal document. 1 Regulations amending Finansinspektionen’s regulations and general guidelines (FFFS 2013:8) regarding standard regulations for non-life insurance undertakings’ calculation of contingency reserves; decided 25/11/2015. Finansinspektionen prescribes the following pursuant to the Authorisation for Issuance of Contingency Reserves in Non-life Insurance Undertakings by Finansinspektionen Ordinance (2000:1127) in part that Chapter 1, section 1, Chapter 2, section 4 and the title for Chapter 4 shall have the following wording, and in part that a new section, Chapter 4, section 3, shall be inserted with the following wording. Chapter 1 Section 1 These regulations and general guidelines apply to non-life insurance undertakings that conduct non-life insurance business in accordance with the Insurance Business Act (2010:2043). The regulations shall also be applied to non-life insurance business that foreign insurers conduct in a branch in Sweden and that is covered by Chapter 39, sections 6 and 8 of the Income Tax Act (1999:1229). Chapter 2 Section 41 To determine the maximum amount for a branch of insurance, the following formulas apply. The premium income is indicated by P and provisions for outstanding claims by E. a. Direct insurance in Sweden, excluding credit insurance and suretyship insurance Insurance related to: – Sickness and accident insurance: 0.10P+0.20E – Worker's compensation insurance: 0.00P+0.45E

1 Under the amendment, the third paragraph is repealed. FFFS 2015:19 Published 07/12/2015

FFFS 2015:19 2 – Home insurance: 0.50P+0.25E – Commercial property and casualty insurance: 0.50P+0.20E – Motor vehicle insurance: 0.75P+0.40E – Third party motor insurance: 0.25P+0.15E – Marine insurance: 2.00P+0.20E – Aviation insurance: 2.00P+0.15E – Transport insurance: 0.50P+0.40E – Redundancy-pay insurance: 0.30P+0.15E – Hail damage insurance: 1.20P+0.15E – Livestock and domestic animal insurance: 0.50P+1.00E – unemployment insurance: 3.00P+0.00E b. Direct insurance abroad, excluding credit insurance and suretyship insurance Direct insurance provided by a Swedish non-life insurance undertaking through cross-border operations or from a fixed place of business (branch office or agency) abroad: 1.50P+0.45E c. Direct credit and suretyship insurance in Sweden or abroad 6.00P+0.00E d. Accepted reinsurance Where reinsurance is ceded by a Swedish insurance undertaking that is a part of the same group as the accepting non-life insurance undertaking, the same formula applies for the maximum amounts as that applicable if the transaction had been retained in the ceding undertaking, i.e. according to items a, b or c. Group refers here to a group as defined in the Swedish Companies Act (2005:551), the Economic Associations Act (1987:667) or the Insurance Business Act (2010:2043). Otherwise, the following applies: – credit reinsurance: 6.00P+0.00E – other insurance: 1.50P+0.45E Chapter 4 Special provisions regarding the contingency reserve Section 3 If a non-life insurance undertaking does not fulfil the solvency capital requirement in accordance with Chapter 8 of the Insurance Business Act (2010:2043), the undertaking may utilise all or part of the contingency reserve to cover the shortfall.

FFFS 2015:19 3 A non-life insurance undertaking shall notify Finansinspektionen before utilising the contingency reserve in accordance with the first paragraph.

---

These regulations enter into force on 1 January 2020 in respect of Chapter 2, section 4 and on 1 January 2016 for the remainder of the regulations and apply to the financial year that commences on each respective date of entry or later. ERIK THEDÉEN Sabina Arama Ström