Regulation 20

the unit reserves, calculated as the value of the underlying assets backing the units relating to the policy; and

the non-unit reserves, calculated as the value of expected future payments arising from the policy (other than those relating to the unit reserves), including any expense that the insurer expects to incur in administering the policies and settling the relevant claims and any provision made for any adverse deviation from the expected experience, less expected future receipts arising from the policy (other than those relating to the unit reserves).

the value of expected future payments arising from guaranteed benefits of the policy, including any expense that the insurer expects to incur in administering the policies and settling the relevant claims, less expected future receipts arising from guaranteed benefits of the policy; (b)the value of expected payments arising from non-guaranteed benefits of the policy in respect of —

future allocations by way of bonus under section 17(6)(b) of the Act; and

future allocations to the surplus account under section 17(6)(c) of the Act; and

any provision made for any adverse deviation from the expected experience.

the sum of the liability (net of reinsurance) in respect of each policy of the fund determined in the manner provided in paragraphs (1) and (3);

the minimum condition liability of the fund; (c)the value of policy assets of the fund less the reinsurers’ share of policy liabilities determined in the manner provided in regulation 16A(8).

the insurer has verified (in accordance with paragraph (9)) that using the simplified method results in a value that is not less than the value determined in the manner provided in paragraphs (1) to (7) (as applicable); and

the insurer has determined that using the simplified method is appropriate, taking into consideration the risks covered by each policy and any other factors that may be relevant.

in a case where the licensed insurer uses the simplified method for the purpose of preparing the “Annual Returns” mentioned in MAS Notice 129 for that year — as part of the actuarial investigation under section 37 of the Act; or

in a case where the licensed insurer uses the simplified method for the purpose of preparing any of the “Quarterly Returns” mentioned in MAS Notice 129 for that year — before the first time in that year it uses that method.

the premium liabilities (net of reinsurance) of the policies, being an amount that is not less than the higher of the following:

the unearned premiums reserves (net of reinsurance) of the policies, being an amount that is the aggregate of the unearned premium reserves (net of reinsurance) for each policy determined in the manner provided in paragraph (14);

the unexpired risk reserves (net of reinsurance) of the policies, being an amount that is the aggregate of the expected future payments arising from future events insured under each policy in force as at the valuation date (including any expense expected to be incurred in administering the policy and settling claims against the policy) and any provision for any adverse deviation from the expected experience, calculated based on 75 per cent level of sufficiency;

the claim liabilities (net of reinsurance) of the policies, being an amount that is not less than the value derived from the formula A + B, where —

A is the aggregate of the expected future payments in relation to claims under each policy incurred before the valuation date (including any expense expected to be incurred in settling the claims) and that fall due for payment after the valuation date, whether or not the claims have been reported to the insurer; and

B is any provision for any adverse deviation from the expected experience, calculated based on 75 per cent level of sufficiency.

make separate estimates of the gross incurred claims and recoveries from the reinsurance counterparty; and

take into account the likelihood of default by the reinsurance counterparty and any non-reinsurance recovery such as salvage and subrogation.

the manner in which liabilities are reinsured during the period to which the data used to determine the unexpired risk reserves (net of reinsurance) and claim liabilities (net of reinsurance) relates; and

the manner in which liabilities are reinsured at the valuation date.

subject to sub-paragraph (b) and paragraph (15), an amount calculated on a basis not less accurate than the 1/24th method; or

in the case of an insurer that carries on the business of reinsurance of liabilities under insurance policies —

an amount not less than 40% of the net premiums written in the accounting period for the policy; or

an amount calculated on a basis not less accurate than the 1/24th method.

in a case where the 1/24th method or some other more accurate method is used — using an amount of net premiums written for the policy that is reduced by the actual commissions payable for the policy; or

in any other case — using an amount of net premiums written for the policy without any deduction for commissions payable from the net premiums for the policy.