Insurance Companies (Accounts and Forms) Regulations 1968
| Jurisdiction | UK Non-devolved |
| Citation | SI 1968/1408 |
| Year | 1968 |
1968 No. 1408
INSURANCE
The Insurance Companies (Accounts and Forms) Regulations 196829thAugust 1968
11thSeptember 1968
1stJanuary 1969
The Board of Trade, in pursuance of the powers conferred upon them by sections 4, 5, 7, 9, 13, 33 and 34 of the Insurance Companies Act 1958(a) as amended by the Companies Act 1967(b), hereby make the following Regulations:—
1. These Regulations apply to every insurance company to which the Insurance Companies Act 1958 as so amended applies other than a company which carries on in Great Britain no insurance business other than industrial assurance business (that Act as so amended being hereinafter referred to as "the Act").
Accounts
2.—(1) The accounts of every company which are prepared in pursuance of section 4 of the Act and all statements, certificates and reports annexed thereto which by this Regulation or by Regulation 3, 4 or 6 are required or permitted to be so annexed shall give a true and fair view of the state of affairs of the company as at the end of its financial year and of the profit or loss of the company for the financial year:
Provided that such accounts, statements, certificates and reports shall not be deemed not to give such a true and fair view by reason only of the fact that the amount at which any asset of the company has been included in the balance sheet is less than the full value of that asset.
(2) Without prejudice to the general requirements of paragraph (1) of this Regulation there shall be shown, stated or included, as the case may be, in or in a note on the accounts of every company which are prepared in pursuance of section 4 of the Act or in a statement or report annexed thereto the matters and particulars which, by virtue of sections 196 and 197 of the Companies Act 1948(c) and sections 3 to 8 (inclusive) of the Companies Act 1967, would have been required to be so shown, stated or included if those accounts had been the accounts of a company within the meaning of the Companies Act 1948 laid before the company in general meeting and in addition—
(a) the balance sheet and profit and loss account of a company which are so prepared shall comply with the requirements of Schedule 1 hereto so far as applicable thereto;
(b) the revenue account of a composite company which is so prepared shall be in two parts, one part relating to the company's long-term business and the other part relating to the company's general business;
(a) 1958 c. 72.
(b) 1967 c. 81.
(c) 1948 c. 38.
(c) the revenue account of a company which in the financial year carried on no insurance business other than long-term business and which is so prepared and that part of the revenue account of a composite company which relates to its long-term business and which is so prepared (each being hereinafter referred to as the "long-term business revenue account") shall be in the form set out in Part I of Schedule 2 hereto;
(d) the long-term business revenue account shall have annexed to it a statement relating to the company's long-term business for the financial year in the form set out in Part II of Schedule 2 hereto;
(e) the revenue account of a company which in the financial year carried on no insurance business other than general business and which is so prepared and that part of the revenue account of a composite company which relates to its general business and which is so prepared (each being hereinafter referred to as the "general business revenue account") shall be in the form set out in Part III of Schedule 2 hereto: except that a company which at no time in the financial year carried on any general business other than marine, aviation and transport insurance business may prepare its general business revenue account in the form set out in Part IV of Schedule 2 hereto;
(f) a general business revenue account may have annexed to it a revenue statement in the form set out in Part IV of Schedule 2 hereto relating to any one or more of the categories of marine, aviation and transport insurance business (any statement so annexed being hereinafter referred to as a "three-year business revenue statement");
(g) every general business revenue account shall have annexed to it a statement relating to the company's general business for the financial year in the form set out in Part V of Schedule 2 hereto (such statement being hereinafter referred to as the "general business premium analysis");
(h) all amounts which are required to be shown in the accounts or in any statement, certificate or report annexed thereto which by this Regulation or by Regulation 3 or 4 is required or permitted to be so annexed shall be shown in sterling but may be shown to the nearer £1,000 and the basis on which foreign currencies have been converted into sterling, where the amount affected is material, shall be stated in a statement annexed to the accounts;
(i) for all items shown in the accounts or in any statement, certificate or report annexed thereto which by this Regulation or by Regulation 3 or 4 is required or permitted to be so annexed, other than a three-year business revenue statement or a general business revenue account prepared in the form of such a statement, there shall, except in the case of accounts relating to the first financial year of the company beginning after 31st December 1968, be shown the corresponding amounts for the immediately preceding financial year.
Certificates
3. There shall be annexed to every balance sheet of a company prepared in pursuance of section 4 of the Act a certificate signed by the secretary or manager, if any, and where there are more than two directors of the company by at least two of those directors, and where there are not more than two directors by all the directors, and such certificate shall state—
(a) whether or not, in the opinion of those signing the certificate, the value of the company's assets at the end of the financial year was in the aggregate at least equal to the aggregate of the amounts thereof shown in the balance sheet and, if for the purpose of giving this opinion any of the assets dealt with in the statement or report prepared in pursuance of paragraph 10 of Schedule 1 hereto have been valued at other than their market value, the basis on which each such valuation was made;
(b) whether or not, in their opinion, the aggregate of the market values at the end of the financial year of such of the company's realisable domestic assets as were free from any mortgage or charge together with the aggregate of the market values at that time of the company's equities of redemption in such of its realisable domestic assets as were mortgaged or charged otherwise than to secure the liabilities of a person other than the company was at least equal to the aggregate of the values at that time of the company's domestic liabilities (as defined in section 65(9) of the Companies Act 1967) to the extent that those liabilities were unsecured by mortgages or charges upon the company's realisable domestic assets; and for the purposes of this statement:
(i) assets shall be deemed to be realisable domestic assets if they were, in the opinion of those signing the statement, realisable in the United Kingdom at the end of the financial year and the documents of title to which (where documents of title existed) were then in the United Kingdom,
(ii) the extent to which a domestic liability of the company shall be deemed to be unsecured is the amount by which the value of that liability (as stated or included in the balance sheet) exceeds the market value at the end of the financial year of any realisable domestic assets of the company mortgaged or charged to secure that liability, and
(iii) the reference to equities of redemption in assets mortgaged or charged shall, in relation to Scotland, be construed as a reference to rights to redeem such assets;
(c) in the case of a company which at the end of the financial year was carrying on general business—
(i) the aggregate amount of the premiums as shown in the general business revenue account,
(ii) the amount of the minimum solvency margin applicable to that company in the period immediately following the end of the financial year, and
(iii) the amount by which, in their opinion, the aggregate of the amounts of the company's assets as stated in the balance sheet exceeded the company's liabilities at the end of the financial year after taking into account all prospective and contingent liabilities but not liabilities in respect of share capital.
4. In the case of a company which annexes a three-year business revenue statement to its general business revenue account or which prepares its general business revenue account in the form of such a statement there shall be contained in a note to that statement or account, as the case may be, a certificate signed by all the persons required to sign the certificate referred to in Regulation 3 stating—
(a) whether or not, in the opinion of those signing the certificate, the fund carried forward in that statement or account in relation to business transacted in the year of account is sufficient to meet all the liabilities outstanding at the end of the year of account in relation to that business (including those in respect of risks to be borne by the company after the end of the year of account in relation to that business),
(b) whether or not, in their opinion, the total of the funds carried forward in that statement or account in relation to business transacted in the first year preceding the year of account is sufficient to meet all the liabilities outstanding at the end of the year of account in relation to that business,
(c) if funds are carried forward in that statement or account in relation to business transacted before the beginning of the first financial year preceding the year of account, whether or not, in their opinion, the total of the funds so carried forward is sufficient to meet all the liabilities outstanding at the end of the year of account in...
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