S.L. 403.24 Art. 12Prohibition of pledging of assets.

Where the reinsurer is -

(a) a third country insurance undertaking or a third country reinsurance undertaking with its head office in a third country whose solvency regime is deemed to be equivalent to that laid down in the Solvency II Directive in accordance with Article 172 of the said Directive;

(b) a third country reinsurance undertaking with its head office in a third country whose solvency regime is deemed to be temporarily equivalent in accordance with Article 172(4) of the Solvency II Directive, in each case, the competent authority shall not retain or introduce for the establishment of technical provisions a system with gross reserving which requires pledging of assets to cover unearned premiums and outstanding claims provisions.