Financial and capital market Commission Regulation No 111 in Riga in 2005 (30 September. Nr. 37, 2. p.)
Rules on the supplementary supervision of insurance undertakings subject to the adjusted solvency margin and adjusted the calculation of own funds and for providing information on the supplementary supervision of insurance undertakings subject to transactions between group Issued under the supervision of insurance companies and the law of the third part of article 131 and 132. the first part of the article and the financial and capital market Commission of law article 6, paragraph 1 of article 7, paragraph 1, first subparagraph, and article 17, paragraph 2 (I). General questions 1. "rules on the supplementary supervision of insurance undertakings subject to the adjusted solvency margin and adjusted the calculation of own funds and for providing information on the supplementary supervision of insurance undertakings subject to transactions between group "(hereinafter-the rules) within the meaning of the insurance group is a group of companies, which includes additional monitoring for the insurance company, in the presence of company affiliates, the membership society related companies and natural persons, directly or by way of control have acquired 20 percent or more of the voting rights or direct or by way of control got participation covering 20 percent of the share capital and over or the number of voting shares of a company, its related companies, membership or participation in public companies in the related company.
2. in accordance with the requirements of this regulation the insurance company group structure diagram and adjusted solvency margin and adjusted the calculation of own funds shall be prepared and information about insurance group provides insurance to transactions between the company, which is: 2.1. membership company in at least one insurance company, insurer, reinsurer or foreign;
2.2. intermediate insurance holding companies, reinsurers or insurers of the Member State of the subsidiary company.
3. the insurance company, which is a multidisciplinary insurance holding company subsidiaries, in accordance with the requirements of this regulation, prepare the insurance companies of the group structure of the schema, and information about the Group's mutual insurance company transactions.
4. the insurance company with the financial and capital market Commission (hereinafter "Commission") permission: 4.1 may not be included in the individual group company solvency margin and adjusted solvency margin funds and adjusted the calculation of own funds, if this company is non-essential additional management objectives, i.e., they are not included in the adjusted solvency margin and adjusted the calculation of own funds do not interfere with getting a picture of adjusted solvency requirement;
4.2. you may not submit information about an insurance company mutual dealings with individual group company or natural person if the supplementary supervision of insurance undertakings subject to a single transaction or series of transactions, the total of the same type with a single counterparty in the reporting period does not exceed the lesser of 35 000 lats or 1 percent of the supervision of additional insurance companies subject to total assets.
5. item 2.1, the insurance company is not required to prepare an adjusted solvency margin and adjusted the calculation of own funds if: 5.1. insurance company this is related to another company in the Republic of Latvia for monitoring the registered and further subject to the insurance company and that company included it in its adjusted solvency margin and adjusted the calculation of own funds;
5.2. this insurance company is clouded for a public commitment in the Republic of Latvia registered insurance holding company or an insurance holding company reinsurers and the reinsurers or is registered in the Republic of Latvia to the subsidiary, in accordance with the requirements of these provisions make the adjusted solvency margin and adjusted the calculation of own funds of an insurance company and its related companies;
5.3. this insurance company is clouded by a public commitment by the insurance company, holding company or reinsurer that is registered in the Member State in which the insurer's supervisory authority, the Commission has concluded an agreement that Member insurer's supervisory body shall carry out the additional monitoring, and the insurance company, holding company or reinsurer shall include it in its adjusted solvency margin and adjusted the calculation of own funds.
6. in paragraph 2.2 the insurance company is not required to prepare an adjusted solvency margin and adjusted the calculation of own funds if: 6.1. this insurance company is also an associated undertaking is registered in the Republic of Latvia, and subject to the supplementary supervision of insurance undertakings and is included in the adjusted solvency of insurance undertakings and adjusted the calculation of own funds;
6.2. in the Republic of Latvia has established a holding company of the same insurance, reinsurers or insurers of the Member State of the subsidiary with a larger total amount of assets in the parent company shall submit to the Commission an adjusted solvency margin and adjusted the calculation of own funds, which includes all in Latvia registered subsidiaries, and with the authorization of the Commission, the insurance company is exempted from parent company adjusted solvency margin and adjusted the calculation of own funds.
7. the insurance company, which is both the company's participation in at least one insurance company, a foreign insurer, reinsurer or insurance holding company, and whether or not the Member State the reinsurers, insurer's subsidiary company, prepare an adjusted solvency margin and adjusted the calculation of own funds of the insurance company and its affiliates, as well as the parent company and its affiliates only at the level of the parent.

8. Insurance companies for at least two years must keep the information the insurance company group company supplies the adjusted solvency margin and adjusted the calculation of own resources and information for the insurance companies to transactions between the group.
II. The adjusted solvency margin and adjusted the calculation of own funds of general principles 9. subject to the supplementary supervision of insurance company's adjusted solvency margin and adjusted the calculation of own funds include: 9.1. insurance companies, which is a membership society for at least one insurance company, insurer, reinsurer or foreign, solvency margin and own funds;
9.2. where an insurance undertaking is an insurance holding company, or a Member State the reinsurers insurer's subsidiary company, solvency margin and own funds, the application of paragraph 12 of the principle of proportionality;
9.3. the insurance company's parent company, which is an insurance holding company, or a Member State the reinsurers, insurer solvency requirements and own funds, as well as the proportionate share of parent company other related companies, which are insurance companies, reinsurers or foreign insurer solvency requirements and own funds;
9.4. the proportional part of the insurance company affiliates, which are insurance companies, reinsurers or foreign insurer solvency requirements and own funds.
10. If an insurance company is a membership society for another insurance company, insurer, reinsurer or foreign, through the intermediate insurance holding companies, insurance holding company to be included in the adjusted own funds calculation.
11. The adjusted own funds are not included in the calculation of own funds elements, i.e., capital and reserves and subordinated capital resulting from cross-funding between: 11.1. insurance company and its associated corporations, membership or participation in other companies related to the community;
11.2. the insurance company related companies;
11.3. the insurance company participation societies.
12. When calculating the adjusted solvency margin and corrected the same features, take into account the public-owned of participation proportional share in the related company. Proportional share of the solvency requirement of the related companies and own funds is determined based on the paid-up capital of the associated undertaking's part, directly or by way of control belongs to the membership.
13. If the affiliates, which are the insurance company subsidiaries, the equity is less than the amount of the solvency margin, required solvency margin and the same features are fully included in the adjusted solvency of insurance undertakings and adjusted the calculation of own funds, without application of paragraph 12 of the principle of proportionality.
III. The adjusted solvency margin and adjusted the calculation of own resources arrangements 14. Adjusted solvency margin and corrected the same features as follows: 14.1 are calculated to be included in the calculation of the company's own funds and the solvency margin according to 15-17;
14.2. each company's own funds are reduced by affiliates or other related companies participate in the company's investment in the company's capital and reserves and subordinated capital, if this reduction is already taken into account in the calculation of the related company or membership other related public corporations own funds in accordance with 15-17;
14.3. each company is calculated for the same features to be included in the own funds calculation is adjusted under the 10, 12 and 13 of the terms;
14.4. every commercial companies is calculated solvency margin to be included in the calculation of the adjusted solvency margin, pursuant to paragraph 10 and 13;
14.5. the adjusted solvency margin and revised figures for own funds calculated by summing all the calculation of the solvency margin of the participating company and own funds calculated pursuant to paragraph 14.1, 14.4.
15. The adjusted solvency margin and adjusted the calculation of own funds of the Republic of Latvia to be included in the registered company solvency margin and own funds are the following: 15.1 the insurance companies: 15.1.1. non-life insurance undertakings solvency margin and own funds shall be calculated in accordance with the Council of the Commission of 28 May 2004 decision No 111 approved "non-life insurance solvency requirements and own funds calculation";
15.1.2. the assurance undertaking's solvency margin and own funds shall be calculated in accordance with the Council of the Commission of 28 May 2004 decision No 117 confirmed "the life insurer solvency requirements and own funds calculation";
15.2. reinsurance companies: 15.2.1. own funds are calculated as insurance companies, subject to the Council by the Commission on 28 May 2004 decision No 111 in approved "non-life insurance solvency requirements and the calculation of the own funds regulations" established procedure;
15.2.2. in respect of non-life insurance liabilities reinsurance solvency margin is calculated pursuant to the Council of the Commission of 28 May 2004 decision No 111 in approved "non-life insurance solvency requirements and the calculation of the own funds regulations" established procedure;

15.2.3. in the case of life insurance liabilities reinsurance solvency margin is calculated according to the Council of the Commission of 28 May 2004 decision No 117 confirmed "the life insurer solvency requirements and rules for the calculation of own resources" in paragraph 2.2., 2.4. In cases where it is not possible to apply these provisions, life insurance reinsurance undertaking the solvency margin is calculated according to the Council of the Commission of 28 May 2004, decision No. 111 of approved "non-life insurance solvency requirements and rules for the calculation of own funds of" 2.2. the procedure laid down in paragraph 1;
15.3. the insurance holding company: 15.3.1. own funds are calculated using a notional Commission of the Council of 28 May 2004 decision No 111 in approved "non-life insurance solvency requirements and the calculation of the own funds regulations" established procedure;
15.3.2. intermediate insurance holding companies to solvency margin relatively is assumed equal to zero.
16. The adjusted solvency margin and adjusted to be included in the calculation of own funds of the insurer, of the Member States Member States registered reinsurers and insurance holding company solvency margin and own funds is determined in accordance with the requirements of the home State. In cases where the host country is not set requirements for the reinsurer or insurance holding company solvency margin and for the calculation of own funds, the reinsurers and insurance holding company solvency margin and own funds is determined in accordance with paragraph 15.2 and 15.3.
17. The adjusted solvency margin and adjusted the calculation of own funds in the Member States not to be included in the registered company solvency margin and the features are set as follows: 17.1 no Member insurer. own funds and the solvency requirements for the inclusion of adjusted solvency margin and adjusted the calculation of own funds is determined in accordance with the requirements of paragraph 15.1;
17.2. not registered in a Member State the reinsurers for own funds and the solvency requirements for the inclusion of adjusted solvency margin and adjusted the calculation of own funds is determined in accordance with 15.2. pun k ta;
17.3. not registered in a Member State of the insurance holding company's own funds and the solvency requirements for the inclusion of determining adjusted solvency margin and adjusted the calculation of own funds in accordance with the requirements of paragraph 15.3.
IV. information on the insurance company group transactions between 18. Information is provided concerning transactions between the supplementary supervision of insurance undertakings subject to the following insurance companies and group companies and individuals: 18.1. related insurance undertaking;
18.2. the insurance company's participation in society;
18.3. the insurance company participation societies associated undertaking;
18.4. a natural person who, directly or by way of control has gained 20 percent or more of the voting rights or direct or by way of control acquired a participation, which covers 20 percent of the share capital and over or the number of voting shares (hereinafter: the natural person who is a presence), the insurance company related society, membership in the society or the public participation in the related company.
V. supplementary supervision of insurance undertakings subject to reporting 19. Supplementary supervision for insurance undertakings shall draw up in the "adjusted solvency margin and adjusted the calculation of own funds reporting" under UPDK 0651272 form (annex 1), which reported the following: 19.1. adjusted solvency margin and adjusted to be included in the calculation of own funds of the company registered the name; nais Castle
19.2. the company's own funds;
19.3. company own funds elements, i.e., capital and reserves and subordinated capital resulting from mutual financing result, subject to the conditions of paragraph 14.2;
19.4. the solvency margin of the company and own funds ratio applicable;
19.5. the company's own funds, which is to be included in the calculation of the adjusted own funds;
12.2. the company's solvency margin;
19.7. the company's solvency margin to be included in the calculation of the adjusted solvency margin.
20. subject to the supplementary supervision of insurance undertakings shall draw up in the "report on the mutual insurance company group transactions" under UPDK 0651273 form (annex 2), in which the following information is provided: 20.1. about the insurance company's group companies and individuals issued loans and from an insurance company group companies and natural persons received loans during the reporting period: 20.1.1. insurance companies group company registered the full name or the name of the natural person first name, last name;
20.1.2. each issued during the period of the loan and the loan amount received;
20.1.3. each loan and loan the original term;
20.1.4. each loan and the loan annual interest rate;
20.1.5. each issued during the period of the loan and receive a loan in the amount of outstanding shares at the end of the reporting period;
20.2. on the supplementary supervision of insurance undertakings subject to investment in insurance companies group company subordinated capital and insurance companies group company and individual investments in insurance companies subordinated capital in the period: 20.2.1. insurance companies group company registered the full name or the physical person's name;
20.2.2. in the reporting period, each contribution made to the subordinated capital;
20.2.3. each investment in the subordinated capital in the original term;
20.2.4. each of the subordinated capital investment annual interest rate;
20.2.5. each reporting period investment in the subordinated capital in the amount at the end of the reporting period;

20.3. the insurance companies group company and physical persons issued guarantees and other contingent liabilities from insurance companies and group companies and individuals received guarantees and other off-balance sheet contingent liability reflected in the reporting period: 20.3.1. insurance companies group company registered the full name or the physical person's name;
20.3.2. each issued during the reporting period, or the received bail or other guarantee issued or received similar potential liabilities;
20.3.3. each guarantee issued or received date or issued or received other guarantees like the starting date of the commitment;
20.3.4. issued or received bail or other guarantee issued or received a similar possible relationship end date;
20.4. the insurance company group companies and investments of natural persons subject to the supplementary supervision of insurance undertakings in share capital paid: 20.4.1. insurance companies group company registered the full name or the physical person's name;
20.4.2. in the reporting period, the contributions paid in share capital of the insurance company;
20.4.3. in the reporting period, the investment in an insurance company in the share capital reduction paid sales;
20.5. subject to the supplementary supervision of insurance undertakings in an insurance company's investment group paid in share capital of the company: 20.5.1. insurance companies group company registered the full name;
20.5.2. insurance companies made investments in share capital paid in the reporting period;
20.5.3. the investment made in the reporting period the share capital reduction paid sales;
20.6. reinsurance transactions with the insurance company group companies: 20.6.1. insurance companies group company registered full name and registration number;
20.6.2. in the reporting period, premiums written and the compensation paid out of insurance for youth groups in society adopted reinsurance companies;
20.6.3. insurance companies group company as reinsurers share in premiums paid in subscribed and remuneration in the reference period;
20.7. the cost of the joint business with insurance companies of the Group companies and individuals: 20.7.1. the expenditure of the type and nature of the transaction (such as brokerage, Commission fee for the assessment of claims experts);
20.7.2. insurance companies group company registered the full name or the physical person's name;
20.7.3. customer acquisition, administrative expenditure the remuneration adjustment and other technical expenses that the insurance company pays the insurance company group company or natural person in the reporting period;
20.7.4. customer acquisition, tratīv, remuneration administra settlement expenses and other technical expenses that insurance companies of the group or individuals pay for insurance company during the reporting period.
21. subject to the supplementary supervision of insurance undertakings shall draw up in "insurance company group structure diagram" (annex 3), which contains the following information: 21.1. insurance companies group company registered in the complete name and the name of a natural person, the surname;
21.2. company way according to the following groupings: life insurance, non-life insurance companies, reinsurers, insurance holding company, a diversified insurance holding company, another company;
21.3. the country in which the company is registered or in which the person is domiciled;
21.4. the share capital of the company (as a percentage), directly or by way of control belongs to the insurance company to another group company or natural person.
22. a number of reports and the scheme referred to in paragraph 19 – 21, must be shown in whole 1000s dollars or as a percentage.
23. Insurance undertakings shall draw up an "adjusted solvency margin and adjusted the calculation of own funds reporting" (UPDK 0651272; Annex 1) and "insurance company group structure diagram" (annex 3) concerning the situation in the reporting year on 31 December. "Report on the insurance companies to transactions between group" (UPDK 0651273; Annex 2) prepare for the period for which an annual report is prepared.
24. "adjusted solvency margin and adjusted the calculation of own funds reporting" (UPDK 0651272; Annex 1), "report on the insurance companies to transactions between group" (UPDK 0651273; Annex 2) and "insurance company group structure diagram" (annex 3) the insurance company shall be drawn up in accordance with the Commission's Council of 16 July 2004 decision No 156 in the electronic format approved "submit statistical reports preparation and dispatch rules" arrangements and to report to the Commission in the following year the year 30 April.
25. If the Commission finds that the report submitted by the insurance companies or group structure diagram prepared incorrectly, it is notified by email the report or preparer of the scheme. If the Commission has not indicated otherwise, statements or the scheme must be submitted not later than on the working day following notification of the existence of the error from the Commission.
26. Consultations on the preparation of reports and diagrams provide the regulatory requirements of the Commission and the Department of statistics.
Vi. the Informative reference to European Union directive 27. Rules included provisions arising from the European Union Directive 98/78/EC "on the supplementary supervision of insurance undertakings in an insurance group".
Financial and capital market Commission President When the U.