Intra-group transactions
1.Member States shall provide that the competent authorities exercise general supervision over transactions between:
an insurance undertaking or a reinsurance undertaking and:
a related undertaking of the insurance undertaking or of the reinsurance undertaking;
a participating undertaking in the insurance undertaking or in the reinsurance undertaking;
a related undertaking of a participating undertaking in the insurance undertaking or in the reinsurance undertaking;
an insurance undertaking or a reinsurance undertaking and a natural person who holds a participation in:
the insurance undertaking, the reinsurance undertaking or any of its related undertakings;
a participating undertaking in the insurance undertaking or in the reinsurance undertaking;
a related undertaking of a participating undertaking in the insurance undertaking or in the reinsurance undertaking.
These transactions concern in particular:
loans,
guarantees and off-balance-sheet transactions,
elements eligible for the solvency margin,
investments,
reinsurance and retrocession operations,
agreements to share costs.
2.Member States shall require insurance undertakings and reinsurance undertakings to have in place adequate risk management processes and internal control mechanisms, including sound reporting and accounting procedures, in order to identify, measure, monitor and control transactions as provided for in paragraph 1 appropriately. Member States shall also require at least annual reporting by insurance undertakings and reinsurance undertakings to the competent authorities of significant transactions. These processes and mechanisms shall be subject to overview by the competent authorities.
If, on the basis of this information, it appears that the solvency of the insurance undertaking or the reinsurance undertaking is, or may be, jeopardised, the competent authority shall take appropriate measures at the level of the insurance undertaking or of the reinsurance undertaking.