Solvency margin for assurance undertakings conducting reinsurance activities
1.Each Member State shall apply to insurance undertakings whose head office is situated within its territory, the provisions of Articles 35 to 39 of Directive 2005/68/EC in respect of their reinsurance acceptance activities, where one of the following conditions is met:
the reinsurance premiums collected exceed 10 % of their total premium;
the reinsurance premiums collected exceed EUR 50 000 000;
the technical provisions resulting from their reinsurance acceptances exceed 10 % of their total technical provisions.
2.Each Member State may choose to apply to assurance undertakings referred to in paragraph 1 of this Article and whose head office is situated within its territory the provisions of Article 34 of Directive 2005/68/EC in respect of their reinsurance acceptance activities, where one of the conditions laid down in the said paragraph 1 is met.
In that case, the respective Member State shall require that all assets employed by the assurance undertaking to cover the technical provisions corresponding to its reinsurance acceptances shall be ring-fenced, managed and organised separately from the direct assurance activities of the assurance undertaking, without any possibility of transfer. In such a case, and only as far as their reinsurance acceptance activities are concerned, assurance undertakings shall not be subject to Articles 22 to 26.
Each Member State shall ensure that their competent authorities verify the separation provided for in the second subparagraph.