Annual appropriation for surplus

(1) Until the surplus of a local company equates or exceeds the liability of the company in respect of outstanding un- matured policies required to be included in the annual statement in accordance with section 145, the company shall at the end of each year appropriate towards surplus at least twenty-five per cent of the profits of the company for the year last past. (2) For the purposes of this section, the expression “surplus” means the excess of assets over the paid-up capital of the company and all the liabilities of the company including the liability in respect of outstanding un-matured policies required to be included in the annual statement in accordance with 157