Insurance Companies Act 1982: Issue and Withdrawal of Authorisation

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    - 2000

FSA/PN/049/2000
10/04/2000

A report on the issuance and withdrawal of authorisations under the Insurance Companies Act 1982 for the period 1 January 2000 to 31 March 2000 has been published today by the Financial Services Authority.

The report for the period shows that under the Act:

Four companies were authorised to carry on business in the UK under Section 3 of the Act (Table A);

the power under Section 11 of the Act to withdraw authorisation to effect new contracts was used in respect of one company (Table B);

final withdrawal of authorisation under Section 13 of the Act was issued in respect of three companies (Table C).

In addition:

Table D1 shows the companies which have their head office in other EC Member States and have become entitled to carry on business through a branch in the UK and it indicates the nature of the risks which they may cover;

Table D2 lists the companies which have their head office in another state of the European Economic Area (EEA) and which have become entitled to provide life or non-life insurance in the UK (i.e. to cover risks here from an establishment in another EEA state rather than through a local branch or agency);

Table E1 shows that the supervisory authority of one EC member states was notified of one UK company, which had notified the UK supervisory authority of its intention to begin to carry on business through a branch in that Member State; and

Table E2 lists the UK companies which notified their intention to begin to provide insurance in other EEA states.

Notes for editors

The classes of business for which a company may be authorised are set out in Schedules1 and 2 of the Insurance Companies Act 1982.
This information supplements that published in the Insurance Annual Report 1998, available from The Stationery Office (formerly HMSO).
Authorised insurance companies which have their head office in the European Economic Area (EEA) may become entitled to insure risks in the UK either through a branch or by the provision of cross border services in the UK without needing to obtain authorisation here. Similarly, companies with their head office in the UK may become entitled to carry on business in other EEA states through a branch or provide cross border services in other Member States.
The Third EC Directive on Non-Life Insurance (92/49/EEC) and the Third EC Directive on Life Assurance (92/96/EEC) were implemented in the UK by the Insurance Companies (Third Insurance Directives) Regulations 1994, the Insurance Companies Regulations 1994 and the Insurance Companies (Accounts and Statements) (Amendment) Regulations 1994.
Regulations 45 and 46 of the Insurance Companies (Third Insurance Directives) Regulations 1994 amend Part IIIA of the Insurance Companies Act 1982 and insert two new Schedules (Schedules 2F and 2G) into the Act.
Schedule 2F contains the regime to be complied with where an EEA company wishes to carry on business through a branch in the United Kingdom, or where an EEA company wishes to provide insurance in the UK under the freedom of services. Before the company concerned can begin to cover risks in the UK, the UK supervisory authority must be notified and supplied with specified information and confirmation of the solvency of the company.
Schedule 2G contains the regime to be complied with before an UK company can begin to carry on business through a branch in another EEA State or to provide insurance under the freedom of services in another EEA State. This regime includes a requirement that the company must notify the UK supervisory authority of its intentions and provides them with specified information.
With effect from 1 January 1999 the Financial Services Authority has been authorised to exercise functions of the Treasury under insurance legislation pursuant to the Contracting Out (Functions in Relation to Insurance) Order 1998.

Appended information

TABLE A

Authorisations to carry on Insurance Business in the UK issued under Section 3 of the Insurance Companies Act 1982 from 1 January 2000 to 31 March 2000

Company	Country of incorporation if outside the UK	Classes of business for which authorisation was issued	Classes of business for which authorisation was previously held	Date of authorisation
Evergreen Retirement Assurance Limited	UK	I, III	Nil	21.3.2000
Pinnacle Insurance plc	UK	1-3, 7-10, 13-18 I-IV, VI, VII	1, 2, 14-17 I-IV, VI, VII	6.3.2000
Scottish Widows Annuities Limited	UK	I, III	Nil	4.2.2000
Scottish Widows Plc	UK	I, III, IV, VII	Nil	4.2.2000

TABLE B

Authorisations to effect new contracts of insurance withdrawn under Section 11 of the Insurance Companies Act 1982 from 1 January 2000 to 31 March 2000

Company	Country of Incorporation if outside the UK	Classes of business for which authorisation to effect new contracts of insurance was withdrawn	Classes of business for which company remains authorised	Date of withdrawal
Intercargo Insurance Company	USA	7	Nil	17.1.2000

TABLE C

Authorisations to carry on insurance business in the UK finally withdrawn under Section 13 of the Insurance Companies Act 1982 from 1 January 2000 to 31 March 2000

Company	Country of Incorporation if outside the UK	Classes of business for which authorisation was withdrawn	Classes of business for which company remains authorised	Date of withdrawal
Newcastle War Risks Indemnity Association Limited		1, 4-7, 11, 12, 15	Nil	10.2.2000
Transamerica Occidental Life Insurance Company	USA	I-IV, VI, VII	Nil	17.1.2000
Wessex Life Assurance Company Limited		I, IV	Nil	11.2.2000

TABLE D1

Companies established in other EEA member states which have become entitled to carry on through a branch in the UK under Part IIIa of the Insurance Companies Act 1982 between 1 January 2000 and 31 March 2000

Company	Country of incorporation	Classes of business the company proposes to write in the UK * and **	Date on which notification received
British Marine Luxembourg S.A.	Luxembourg	6, 12, 17	10.2.2000
Forsakringsaktiebolaget Viator	Sweden	1, 2, 7, 13, 16-18	9.2.2000
Hitachi Credit Insurance Corporation Limited	Ireland	1, 2, 9, 16	5.1.2000

* Large risks are as defined in Section 96B of the Insurance Companies Act 1982 and other risks (the so-called mass risks) are all risks falling within Schedule 2 of the Act (general business) other than Large risks. This is subject in each case to the exclusion of risks to which Part IIIa of the Act (provision of insurance) does not apply (see Section 81A).

** Numbered classes are classes of general business as classified in Part I of Schedule 2 to the Act. Only part of this class may be within the definition of Large or other risks (see note * above), as the case may be. All means risks of all classes and parts of classes falling within the definition of Large or other risks, as the case may be.

TABLE D2

Companies established in other EEA states which have become entitled to provide life or non-life in the UK from an establishment in another EEA state Part IIIa of the Insurance Companies Act 1982 between 1 January 2000 and 31 March 2000

Company	Country of incorporation	Country in which establishment covering the risks is situated	Nature of the risks the company has become entitled to cover *Large or other classes	Date on which entitlement commenced
Allianz Globus MAT Versicherungsaktiengesellschaft	Germany	Germany	1, 3-9, 10b, 11-13, 16, 18	23.12.99
AXA Colonia Versicherungs AG	Germany	Germany Belgium Ireland Luxembourg	1, 4-9, 11-13, 16	15.11.99
British Marine Luxembourg S.A.	Luxembourg	Luxembourg	6, 12, 17	7.2.2000
Federlux SA	Luxembourg	Luxembourg	I, III, VI, VII	13.12.99
Linea Directa Aseguradora S.A. Compania de Seguros y Reaseguros	Spain	Spain	1, 3, 10, 16-18	15.2.2000
Nieuwe Hollandse Lloyd Schadeverzekeringmaatschappij N.V.	Netherlands	Netherlands	6, 7, 12	29.2.2000
Norwich Union International Limited	Ireland	Ireland	III, VI	21.1.2000
N.V. Nationale Borg-Maatschappij	Netherlands	Netherlands	15	22.2.2000
Quinn Life Direct Limited	Ireland	Ireland	I, III	13.3.2000
Schadeverzekering Maatschappij Erasmus N.V.	Netherlands	Netherlands	3, 6-9, 10b, 12	31.1.2000
Societe Belge dAssistance Internationale	Belgium	Belgium	16, 18	8.3.2000
Societe Francaise dAssistance is now known as AXA Assistance France
Space Insurance Company Limited	Ireland	Ireland	1, 2, 8, 9, 16	18.2.2000
Space Life Company Limited	Ireland	Ireland	I	29.3.2000
The Tokio Marine & Fire Insurance Company (UK) Limited	UK	Netherlands	1, 7-9, 13, 16	5.1.2000
Victoria-Volksbanken Versicherungsaktiengesellschaft	Austria	Austria	1, 7-9, 13, 16 I, II	15.2.2000
White Horse Insurance Ireland Limited	Ireland	Ireland	18 (already 1-3, 6-9, 13, 14, 16, 17)	4.1.2000

*Large risks are as defined in Section 96B of the Insurance Companies Act 1982 and other risks (the so-called mass risks) are all risks falling within Schedule 2 of the Act (general business) other than Large risks. This is subject in each case to the exclusion of risks to which Part IIIa of the Act (provision of insurance) does not apply (see Section 81A).

** Numbered classes are classes of general business as classified in Part I of Schedule 2 to the Act. Only part of the class may be within the definition of Large or other risks (see note * above), as the case may be. All means risks of all classes and parts of classes falling within the definition of Large or other risks, as the case may be.

TABLE E1

Companies authorised to carry on business in the UK which have notified the UK supervisory authority of its intention to begin to carry on business through branches in other EC member states under Part IIIa of the Insurance Companies Act 1982 between 1 January 2000 and 31 March 2000

Company	Country of proposed branch	Classes of business company intends to write from the branch * and **	Date on which supervisory authority of the country of the branch was notified by the UK supervisory authority
Sun Life Assurance Company of Canada (UK) Limited	Irish Republic	I, III	26.1.2000

*Large risks are as defined in Section 96B of the Insurance Companies Act 1982 and other risks (the so-called mass risks) are all risks falling within Schedule 2 of the Act (general business) other than Large risks. This is subject in each case to the exclusion of risks to which Part IIIA of the Act (provision of insurance) does not apply (see Section 81A).

** Numbered classes are classes of general business as classified in Part I of Schedule 2 to the Act. Only part of the class may be within the definition Large or other risks (see note * above), as the case may be. All means risks of all classes and parts of classes falling within the definition of Large or other risks, as the case may be.

TABLE E2

Companies authorised to carry on business in the UK which have notified the UK supervisory authority of their intention to begin to provide insurance in other EEA states under Part IIIa of the Insurance Companies Act 1982 between 1 January 2000 and 31 March 2000.

Company	Country of Incorporation	Country in which establishment covering the risks is situated	Country in which it is proposed to provide insurance	Nature of the risks the company has become entitled to cover *Large or other classes
The British United Provident Association Limited	UK	UK	Germany Iceland	1, 2 1, 2
Criterion Insurance Company Limited	UK	UK	Italy	8, 9
Criterion Life Assurance Limited	UK	UK	Germany	I-IV, VI, VII
European Nichido Insurance Company Limited	UK	UK	Irish Republic	13

*Large risks are as defined in Section 96B of the Insurance Companies Act 1982 and other risks (the so-called mass risks) are all risks falling within Schedule 2 of the Act (general business) other than Large risks. This is subject in each case to the exclusion of risks to which Part IIIA of the Act (provision of insurance) does not apply (see Section 81A).

** Numbered classes are classes of general business as classified in Part I of Schedule 2 to the Act. Only part of the class may be within the definition of Large or other risks (see note * above), as the case may be. All means risks of all classes and parts of classes falling within the definition of Large or other risks, as the case may be.

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