Instructions for completion of Form 1
1. An insurer (other than a Swiss general insurer or an EEA deposit insurer) carrying on general insurance business must complete Form 1 in respect of its entire general insurance business.
An external insurer (other than a non-EEA insurer whose insurance business in the United Kingdom is restricted to reinsurance or an insurer whose head office is in any EEA State except the United Kingdom whose insurance business in the EEA is restricted to reinsurance) that is carrying on general insurance business must complete Form 1 in respect of business carried on through a branch in the United Kingdom.
A UK deposit insurer that is carrying on general insurance business must complete Form 1 in respect of business carried on through its branches in EEA States taken together.
Form 1 is not required for Swiss general insurers or EEA-deposit insurers.
2. In the case of a marine mutual completing an abbreviated return under rule 9.36A, units must be the same as those used in Form M1.
3. For financial years commencing on or before 31 December 2004 lines 11 to 42, column 2 must be blank.
4. The entry at line 13 must be equal to the total capital resources after deductions at line 79, column 1 on Form 3. The entry at line 11 includes also capital resources allocated towards the long-term insurance business (and included in column 2 on Form 3) that arise outside the long-term insurance fund. For a branch the entry at line 11 is equal to Form 10 line 23.
5. For a firm carrying on long-term insurance business the entry at line 12 on Form 1 must equal the entry at line 12 on Form 2. For a firm not carrying on long-term insurance business the entry at line 12 on Form 1 is nil.
Instructions 6-12 only apply to firms that do not meet the conditions specified in GENPRU2.1.13R(2), i.e. that are not required to perform an adjusted solo calculation under INSPRU 6.1.
6. For an insurer other than a pure reinsurer writing both nonlife and life business, the guarantee fund requirement at line 21 is calculated by reference to GENPRU 2.2.34R as the higher of line 33 and 1/3 of line 31. For a pure reinsurer writing both nonlife and life business, the guarantee fund calculated by reference to GENPRU 2.2.34AR must be allocated between F1.21 and F2.21 in the ratio of the general insurance capital requirement to the sum of the long-term insurance capital requirement and the resilience capital requirement.
7. The excess (deficiency) of available capital resources to cover the guarantee fund requirement at line 22 is equal to line 81 on Form 3 less line 21, except for a branch.
For a branch this is equal to line 13 less line 21 less an adjustment because assets held to cover the guarantee fund must be held in the United Kingdom (or for UK-deposit insurers, in the EEA States where the firm carries on insurance business); the adjustment is the difference between Form 13 line 89 for categories 1 and 3 (or 5), except for branches carrying on both long-term insurance business and general insurance business(composite branches); composite branches will need to state how the difference is allocated between general insurance business and long-term insurance business in a note to the Form (Note 0102).
8. The general insurance capital requirement at line 31 must be equal to the amount shown at line 43 of Form 12, which is calculated in accordance with GENPRU 2.1.34R.
9. The base capital resources requirement at line 33 must be taken from GENPRU2.1.30R.
For a branch, this figure should be halved. For a pure reinsurer writing both nonlife and life business, the base capital resources requirement must be allocated between F1.33 and F2.33 in the ratio of the general insurance capital requirement to the sum of the long-term insurance capital requirement and the resilience capital requirement.
9A. The individual minimum capital requirement at line 34 is calculated in accordance with GENPRU 2.1.24R and is the higher of lines 31 and 33.
9B. The capital requirements of regulated related undertakings at line 35 must be nil.
9C. The minimum capital requirement at line 36 is equal to the sum of lines 34 and 35.
10. The excess (deficiency) of available capital resources to cover 50% of the minimum capital requirement at line 37 is equal to line 82, column 1 on Form 3 less 50% of line 36. For a branch, line 37 is to be left blank.
11. The excess (deficiency) of available capital resources to cover 75% of the minimum capital requirement at line 38 is equal to line 83, column 1 on Form 3 less 75% of line 36. For a branch, line 38 is to be left blank.
12. The capital resources requirement at line 41 is calculated in accordance with GENPRU 2.1.17R and is equal to line 36.
Instructions 13-20 only apply to firms that meet the conditions specified in GENPRU 2.1.9 R(2), i.e. that perform the adjusted solo solvency calculation in accordance with INSPRU 6.1.
13. The guarantee fund requirement at line 21 is calculated as the share of the general insurance business of ⅓X + (R – S – U – X) by reference to INSPRU 6.1.45R.
14. The excess (deficiency) of available capital resources to cover the guarantee fund requirement at line 22 is equal to line 81, column 1 on Form 3 less line 21.
15. The general insurance capital requirement at line 31 is taken from the amount shown at line 43 of Form 12, which is calculated in accordance with GENPRU 2.1.34R.
16. The base capital resources requirement at line 33 must be taken from GENPRU2.1.30R.
For a branch this figure should be halved. For a pure reinsurer writing both non-life and life business, the base capital resources requirement must be allocated between F1.33 and F2.33 in the ratio of the general insurance capital requirement to the sum of the long-term insurance capital requirement and the resilience capital requirement.
16A. The individual minimum capital requirement at line 34 is calculated in accordance with GENPRU 2.1.24R and is the higher of lines 31 and 33.
16B. The capital requirements of regulated related undertakings at line 35 is line 36 less line 34.
17. The minimum capital requirement at line 36 must equal the amount represented by (R-S) with reference to INSPRU 6.1.45R.
18. The excess (deficiency) of available capital resources to cover 50% of the minimum capital requirement at line 37 is equal to line 82, column 1 on Form 3 less 50% of line 36.
19. The excess (deficiency) of available capital resources to cover 75% of the minimum capital requirement at line 38 is equal to line 83, column 1 on Form 3 less 75% of line 36.
20. The entry at line 41 must equal the amount represented by R with reference to INSPRU 6.1.45R.
Instructions 21 onwards apply to all firms
21. The entry at line 51 must not include provision for any liability to tax on capital gains referred to in paragraph 13(1)(b) of Appendix 9.1. Amounts in related undertakings must not be included.
22. Where a direction under section 148 of the Act has been issued disapplying or modifying any of the provisions of the Accounts and Statements Rules, a note to Form 1 explaining the effect of the order is usually required. The requirement for such a note would be specified in the direction itself. [Code 0101].
