Prudential Regulation Authority Rulebook

2.1

Subject to 2.2, the amount of liabilities of a firm in respect of long-term insurance business and general insurance business and other lawful activities must be determined in accordance with generally accepted accounting practice or other generally accepted methods appropriate for insurance business.

2.2

In determining under 2.1 the amount of liabilities of a firm, all contingent and prospective liabilities must be taken into account.