Regulation 22

The FANIL of a constituent entity of an MNE group that is a life insurer for a financial year must be adjusted to exclude any amount charged to the constituent entity’s policyholders for taxes payable by the constituent entity in respect of amounts accruing to or paid to the policyholders, unless such taxes are taken into account by the constituent entity as an expense (other than as a tax expense amount as defined in regulation 11(f)) in its FANIL.

The FANIL of a constituent entity of an MNE group that is a life insurer for a financial year must be adjusted to take into account any returns to its policyholders (if not already taken into account) that correspond to increases or decreases in its liability to its policyholders that are reflected in its FANIL.

The FANIL of a constituent entity of an MNE group that is an insurer for a financial year must be adjusted to exclude any expense resulting from any change in its insurance reserves in the financial year where the change is economically matched by excluded dividends (after deducting any investment management fees of the constituent entity paid from such excluded dividends) from a security held by the insurer on behalf of a policyholder.

The FANIL of a constituent entity of an MNE group that is an insurer for a financial year must be adjusted to exclude any expense resulting from any change in its insurance reserves in the financial year where the change is economically matched by an excluded equity gain or loss from a security held by the insurer on behalf of a policyholder.