Cap. 403 Art. 37Transfer of business restricted to reinsurance.

Where an undertaking authorised under this Act carrying on business restricted to reinsurance ("the transferor") proposes to transfer all or part of its business, the competent authority shall not approve a transfer unless it is satisfied that:

(a) (i) the transferee is, or immediately after the approval will be, authorised under article 7 to carry on business of reinsurance;

(ii) the transferee is, or immediately after the approval will be, authorised under Article 14 or 162 of the Solvency II Directive, to carry on in a Member State or an EEA State, business of reinsurance to be transferred under the scheme; or

(iii) if the transferee does not fall within subparagraphs (i) and (ii), the transferee has the authorisation required (if any) to enable the business, or part which is to be transferred, to be carried on in the place to which it is to be transferred or will have it before the scheme takes effect; and

(b) (i) the transferee referred to in sub-paragraph (i) of paragraph (a) possesses, after taking the proposed transfer into account, the necessary eligible own funds to cover the Solvency Capital Requirement required to be maintained under this Act;

(ii) the transferee referred to in sub-paragraph (ii) of paragraph (a) possesses, after taking the proposed transfer into account, the necessary eligible own funds to cover the Solvency Capital Requirement referred to in Article 100 or 166 of the Solvency II Directive; or

(iii) if the transferee does not fall within subparagraphs (i) and (ii), the transferee satisfies the solvency requirements required of it by, or under, the law applicable in the place to which the business is being transferred;

(c) (i) if the transferee is an undertaking authorised under this Act, the transferee’s financial resources are, consequential to the transfer, adequate to fulfil the other obligations required of it by or under this Act;

(ii) if the transferee is a third country reinsurance undertaking, the transferee’s financial resources are, consequential to the transfer, adequate to fulfil (if any) the other obligations required of it by, or under, the law applicable in the place to which the business is being transferred.