For insurance companies capital, along with reserves (or ‘technical provisions’), provides support for risks insured. The capital and reserves are backed by investment assets and consequently investment income makes up a significant part of the total income of an insurer's business. The attribution of capital and reserves is therefore an important component in calculating the profit attributable to a PE of an insurance company.

Want to read more?

This content requires a Croner-i Tax and Accounting subscription.

Existing subscriber? Log in

No subscription?

Contact us to discuss your requirements.