Companies Ordinance Cap 32

Section Num: 79E     Version Date 30/06/1997

Realised profits of insurance company with long term business

(1) Where an insurance company to which Parts III to VI of the Insurance Companies Ordinance (Cap 41) apply carries on long term business-

(a) any amount properly transferred to the profit and loss account of the company from a surplus in the fund or funds maintained by it in respect of that business; and

(b) any deficit in that fund or those funds,

are to be (respectively) treated, for the purposes of this Part, as a realised profit and a realised loss; and, subject to this, any profit or loss arising in that business is to be left out of account for those purposes.

(2) In subsection (1)-

(a) the reference to a surplus in any fund or funds of an insurance company is to an excess of the assets representing that fund or those funds over that liabilities of the company attributable to its long term business, as shown by an actuarial investigation; and

(b) the reference to a deficit in any such fund or funds is to the excess of those liabilities over those assets, as so shown.

(3) In this section-

"actuarial investigation" means an investigation to which section 18 of the Insurance Companies Ordinance (Cap 41) applies or which is made in pursuance of a requirement imposed by section 32 of that Ordinance;

"long term business" has the same meaning as in the Insurance Companies Ordinance (Cap 41).

[cf. 1985 c. 6 s. 268 U.K.]

(Part IIA added 77 of 1991 s. 6)