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Section 843: Realised profits and losses of long-term insurance business of certain insurance companies

Companies Act 2006 · 2006 c. 46View on legislation.gov.uk

Part 23: Distributions — Chapter 3: Supplementary provisions

The provisions of this section have effect for the purposes of this Part as it applies in relation to an authorised insurance company carrying on long-term business, other than—

a person to whom section 833A applies; or
an insurance special purpose vehicle.

An amount included in the relevant part of the company's balance sheet that—

represents a surplus in the fund or funds maintained by it in respect of its long-term business, and
has not been allocated to policy holders or, as the case may be, carried forward unappropriated in accordance with asset identification rules made under Part 9A of the Financial Services and Markets Act 2000 (c. 8),

is treated as a realised profit.

For the purposes of subsection (2)—

the relevant part of the balance sheet is that part of the balance sheet that represents accumulated profit or loss;
a surplus in the fund or funds maintained by the company in respect of its long-term business means an excess of the assets representing that fund or those funds over the liabilities of the company attributable to its long-term business, as shown by an actuarial investigation.

Subject to subsections (2) and (4), any profit or loss arising in the company's long-term business is to be left out of account.

For the purposes of this section an "actuarial investigation" means an investigation made into the financial condition of an authorised insurance company in respect of its long-term business—

carried out once in every period of twelve months in accordance with rules made under Part 9A of the Financial Services and Markets Act 2000, or
carried out in accordance with a requirement imposed under section 166 of that Act,

by an actuary appointed as actuary to the company.

In this section " insurance special purpose vehicle " means a special purpose vehicle within the meaning of Article 13(26) of Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) .

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This legislation text comes from legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. These source and reuse terms cover the legislation text, not Remedy's commentary.

Reuse reviewed 21 August 2026 under Open Government Licence v3.0.