Prudential Regulation Authority Rulebook

1.1

Unless otherwise stated, this Part applies to:

1. (1) a UK Solvency II firm; and
2. (2) in accordance with Insurance General Application 3, the Society, as modified by 5.

1.2

In this Part, the following definitions shall apply;

captive insurer

means a Solvency II undertaking owned by:

1. (1) a financial undertaking other than a Solvency II undertaking; or
2. (2) a group of Solvency II undertakings; or
3. (3) a non-financial undertaking;

the purpose of which is to provide insurance cover exclusively for the risks of the undertaking or undertakings to which it belongs, or of an undertaking, or undertakings, of the group of which that Solvency II undertaking is a member.

[Note: Art. 13(2) of the Solvency II Directive]

captive reinsurer

means a Solvency II undertaking that is a pure reinsurer owned by:

1. (1) a financial undertaking other than a Solvency II undertaking; or
2. (2) a group of Solvency II undertakings; or
3. (3) a non-financial undertaking;

the purpose of which is to provide reinsurance cover exclusively for the risks of the undertaking or undertakings to which it belongs or of an undertaking or undertakings of the group of which that pure reinsurer is a member.

[Note: Art.13(5) of the Solvency II Directive]