French Insurance Code
In forceI.-For the application of Article L. 356-12, insurance or reinsurance undertakings shall apply either the general principles and methods mentioned in Articles L. 356-6 to L. 356-10 and L. 356-15 to L. 356-24 at the level of the parent undertaking in the third country in accordance with the procedures set out in II, or one of the methods set out in III.
II.For the sole purpose of calculating group solvency, the non-member country parent undertaking is considered to be an insurance or reinsurance undertaking subject to the same conditions as those set out in Section 3 of Chapter I of this Title as regards the own funds eligible to cover the Solvency Capital Requirement, and to one of the following requirements:
a) A Solvency Capital Requirement determined in accordance with the principles set out in Article R. 356-16 in the case of an insurance group company or a mixed financial holding company;
b) A Solvency Capital Requirement determined in accordance with the principles set out in Article R. 356-23 in the case of a third-country insurance or reinsurance undertaking.
III - Upon authorisation of the Autorité de contrôle prudentiel et de résolution and, where appropriate, at its request, insurance or reinsurance undertakings may apply other methods which ensure appropriate supervision at group level. Those methods shall be approved by the group supervisor if that function is exercised by another supervisory authority.
If the Autorité de contrôle prudentiel et de résolution in its capacity as group supervisor is approached by another supervisory authority which wishes to apply other methods to ensure appropriate supervision of insurance and reinsurance undertakings in a group, it shall approve or disapprove those methods after consultation with the other supervisory authorities concerned.
The methods chosen shall be communicated to the other supervisory authorities concerned and to the Commission.
