Frequency of actuarial reports on long term insurers

(1) Every company carrying on long-term insurance business shall, annually– (a) cause an independent actuary, approved by the Supervisor, to make an investigation into its financial position including valuation of its liabilities in respect of every class of long- term insurance business and to furnish the Supervisor with a report of the result of the investigation; and (b) cause an abstract of the report of the independent actuary and statement of its long- term insurance business to be prepared. (2) A valuation balance sheet shall be annexed to every abstract prepared under this section. (3) The basis of valuation adopted shall be such as to place a proper value upon the liabilities, having regard to the average rate of interest from investments and to expenses of management, including commissions, and shall be such as to ensure that no policy shall be treated as an asset. (4) Nothing in this section shall prohibit the Supervisor from requesting a long-term insurance company to submit each year a certificate signed by its actuary confirming his satisfaction that to the best of his knowledge and belief the company’s liabilities do not exceed the funds earmarked for meeting those liabilities as disclosed in the company’s annual financial statement, and that taking into account the company’s financial position and business in general, its current reinsurance arrangements are adequate, appropriate and satisfactory. 132