S.L. 403.17 Art. 18Intermediate insurance holding companies.

(1) When calculating the group solvency of an authorised insurance undertaking or an authorised reinsurance undertaking, in a group, which holds a participation in:

(a) a related insurance undertaking;

(b) a related reinsurance undertaking;

(c) a related third-country insurance undertaking; or

(d) a related third-country reinsurance undertaking, through an insurance holding company or a mixed financial holding company, the situation of such an insurance holding company or mixed financial holding company shall be taken into account.

(2) For the sole purpose of that calculation, the intermediate insurance holding company or intermediate mixed financial holding company shall be treated as if it were an insurance or reinsurance undertaking, subject to the rules laid down in Articles 100 to 127 of the Solvency II Directive, in respect of the Solvency Capital Requirement and were subject to the same conditions as are laid down in Articles 87 to 99 of the Solvency II Directive, in respect of own funds eligible for the Solvency Capital Requirement.

(3) In cases where an intermediate insurance holding company or intermediate mixed financial holding company holds subordinated debt or other eligible own funds subject to limitation in accordance with Article 98 of the Solvency II Directive, they shall be recognised as eligible own funds up to the amounts calculated by application of the limits set out in the said Article to the total eligible own funds outstanding at group level as compared to the Solvency Capital Requirement at group level.

(4) Any eligible own funds of an intermediate insurance holding company or intermediate mixed financial holding company, which would require prior authorisation from the competent authority or the European regulatory authority concerned, in accordance with Article 90 of the Solvency II Directive if they were held by an authorised insurance undertaking, an authorised reinsurance undertaking, a European insurance undertaking or a European reinsurance undertaking, may be included in the calculation of the group solvency only in so far as they have been duly authorised by the group supervisor, or by the competent authority where it is the group supervisor of a group.