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Companies Act 2006 · Chapter 3 Supplementary provisions

843 Realised profits and losses of long-term insurance business of certain insurance companies

s. 843 · in force: yes

Captured statutory text (L5)

843 Realised profits and losses of long-term insurance business of certain insurance companies

(1)The provisions of this section have effect for the purposes of this Part as it applies in relation to an authorised insurance company carrying on long-term business, other than—
(a)a person to whom section 833A applies; or
(b)an insurance special purpose vehicle.
(2)An amount included in the relevant part of the company's balance sheet that—
(a)represents a surplus in the fund or funds maintained by it in respect of its long-term business, and
(b)has not been allocated to policy holders or, as the case may be, carried forward unappropriated in accordance with asset identification rules made under Part 9A of the Financial Services and Markets Act 2000 (c. 8),
is treated as a realised profit.
(3)For the purposes of subsection (2)—
(a)the relevant part of the balance sheet is that part of the balance sheet that represents accumulated profit or loss;
(b)a surplus in the fund or funds maintained by the company in respect of its long-term business means an excess of the assets representing that fund or those funds over the liabilities of the company attributable to its long-term business, as shown by an actuarial investigation.
(4)A deficit in the fund or funds maintained by the company in respect of its long-term business is treated as a realised loss. For this purpose a deficit in any such fund or funds means an excess of the liabilities of the company attributable to its long-term business over the assets representing that fund or those funds, as shown by an actuarial investigation.
(5)Subject to subsections (2) and (4), any profit or loss arising in the company's long-term business is to be left out of account.
(6)For the purposes of this section an “actuarial investigation” means an investigation made into the financial condition of an authorised insurance company in respect of its long-term business—
(a)carried out once in every period of twelve months in accordance with rules made under Part 9A of the Financial Services and Markets Act 2000, or
(b)carried out in accordance with a requirement imposed under section 166 of that Act,
by an actuary appointed as actuary to the company.
(7)In this section “long-term business” means business that consists of effecting or carrying out contracts of long-term insurance. This definition must be read with section 22 of the Financial Services and Markets Act 2000, any relevant order under that section and Schedule 2 to that Act.
(8)In this section “ insurance special purpose vehicle ” means a special purpose vehicle within the meaning of Article 13(26) of Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) .
Full captured verbatim text
(1) The provisions of this section have effect for the purposes of this Part as it applies in relation to an authorised insurance company carrying on long-term business, other than—

(a) a person to whom section 833A applies; or

(b) an insurance special purpose vehicle.

(2) An amount included in the relevant part of the company's balance sheet that—

(a) represents a surplus in the fund or funds maintained by it in respect of its long-term business, and

(b) has not been allocated to policy holders or, as the case may be, carried forward unappropriated in accordance with asset identification rules made under Part 9A of the Financial Services and Markets Act 2000 (c. 8),

is treated as a realised profit.

(3) For the purposes of subsection (2)—

(a) the relevant part of the balance sheet is that part of the balance sheet that represents accumulated profit or loss;

(b) a surplus in the fund or funds maintained by the company in respect of its long-term business means an excess of the assets representing that fund or those funds over the liabilities of the company attributable to its long-term business, as shown by an actuarial investigation.

(4) A deficit in the fund or funds maintained by the company in respect of its long-term business is treated as a realised loss.

For this purpose a deficit in any such fund or funds means an excess of the liabilities of the company attributable to its long-term business over the assets representing that fund or those funds, as shown by an actuarial investigation.

(5) Subject to subsections (2) and (4), any profit or loss arising in the company's long-term business is to be left out of account.

(6) For the purposes of this section an “actuarial investigation” means an investigation made into the financial condition of an authorised insurance company in respect of its long-term business—

(a) carried out once in every period of twelve months in accordance with rules made under Part 9A of the Financial Services and Markets Act 2000, or

(b) carried out in accordance with a requirement imposed under section 166 of that Act,

by an actuary appointed as actuary to the company.

(7) In this section “long-term business” means business that consists of effecting or carrying out contracts of long-term insurance.

This definition must be read with section 22 of the Financial Services and Markets Act 2000, any relevant order under that section and Schedule 2 to that Act.

(8) In this section “ insurance special purpose vehicle ” means a special purpose vehicle within the meaning of Article 13(26) of Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) .

What this provision means

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Governs determination of realised profits and losses from actuarially investigated surpluses or deficits in long-term insurance business.

Only the one-line summary above is stored for this provision; the text itself is the evidence.

Refers to

other law external_cite · s. 22

cross-reference internal_cite · s. 833A

Referred to by

No captured references.

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Change history as published

S. 112A omitted (26.10.2023 for specified purposes, 26.1.2026 in so far as not already in force) by virtue of Economic Crime and Corporate Transparency Act 2023 (c. 56), ss. 49(2)(a), 219(1)(2)(b); S.I. 2026/57, reg. 2

Pt. 8 Ch. 2A omitted (26.10.2023 for specified purposes, 26.1.2026 in so far as not already in force) by virtue of Economic Crime and Corporate Transparency Act 2023 (c. 56), ss. 49(2)(b), 219(1)(2)(b); S.I. 2026/57, reg. 2 · repeated 11×

S. 159 omitted (26.10.2023 for specified purposes, 4.3.2024 in so far as not already in force) by virtue of Economic Crime and Corporate Transparency Act 2023 (c. 56), ss. 41(4), 219(1)(2)(b); S.I. 2024/269, reg. 2(z5)

Ss. 161A-167F omitted (26.10.2023 for specified purposes, 18.11.2025 in so far as not already in force) by virtue of Economic Crime and Corporate Transparency Act 2023 (c. 56), s. 219(1)(2)(b), Sch. 2 para. 2(a); S.I. 2025/1118, reg. 2(1)(i)(4) · repeated 13×

S. 274A-279F and cross-heading omitted (26.10.2023 for specified purposes, 18.11.2025 in so far as not already in force) by virtue of Economic Crime and Corporate Transparency Act 2023 (c. 56), s. 219(1)(2)(b), Sch. 2 para. 5; S.I. 2025/1118, reg. 2(1)(i)(4) · repeated 6×

S. 398 omitted (with application in accordance with reg. 1(2) of the amending S.I.) by virtue of The Companies, Partnerships and Groups (Accounts and Non-Financial Reporting) Regulations 2016 (S.I. 2016/1245), regs. 1(1), 3(2)(a)

S. 410 omitted (with effect in accordance with reg. 2(2)-(5) of the amending S.I.) by virtue of The Companies, Partnerships and Groups (Accounts and Reports) Regulations 2015 (S.I. 2015/980), regs. 2(1), 5(13) (with reg. 3)

S. 417 omitted (with effect in accordance with reg. 1(4) of the amending S.I.) by virtue of The Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 (S.I. 2013/1970), reg. 1(2)(3)5

S. 427 omitted (with effect in accordance with reg. 1(4) of the amending S.I.) by virtue of The Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 (S.I. 2013/1970), regs. 1(2)(3), 11

S. 428 omitted (with effect in accordance with reg. 1(4) of the amending S.I.) by virtue of The Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 (S.I. 2013/1970), regs. 1(2)(3), 11

S. 429 omitted (with effect in accordance with reg. 1(4) of the amending S.I.) by virtue of The Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 (S.I. 2013/1970), regs. 1(2)(3), 13

S. 449 omitted (with effect in accordance with reg. 2(2)-(5) of the amending S.I.) by virtue of The Companies, Partnerships and Groups (Accounts and Reports) Regulations 2015 (S.I. 2015/980), regs. 2(1), 8(8) (with reg. 3)

S. 450 omitted (with effect in accordance with reg. 2(2)-(5) of the amending S.I.) by virtue of The Companies, Partnerships and Groups (Accounts and Reports) Regulations 2015 (S.I. 2015/980), regs. 2(1), 8(9) (with reg. 3)

S. 487A omitted (with effect in accordance with reg. 1(6)(8) of the amending S.I.) by virtue of The Statutory Auditors and Third Country Auditors Regulations 2017 (S.I. 2017/516), regs. 1(2), 12(7)

S. 491A omitted (with effect in accordance with reg. 1(6)(8) of the amending S.I.) by virtue of The Statutory Auditors and Third Country Auditors Regulations 2017 (S.I. 2017/516), regs. 1(2), 12(13)

S. 512 omitted (1.10.2015) by virtue of Deregulation Act 2015 (c. 20), s. 115(7), Sch. 5 para. 2; S.I. 2015/1732, art. 2(d) (with arts. 4 6)

S. 517 omitted (1.10.2015) by virtue of Deregulation Act 2015 (c. 20), s. 115(7), Sch. 5 para. 4; S.I. 2015/1732, art. 2(d) (with arts. 4 6)

S. 780 omitted (26.5.2015) by virtue of Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(3)(g)(ii), Sch. 4 para. 26(1) (with Sch. 4 para. 26(2))

S. 1039 omitted (26.5.2015 for specified purposes, 1.10.2015 in so far as not already in force) by virtue of Small Business, Enterprise and Employment Act 2015 (c. 26), s. 164(1), Sch. 7 para. 25; S.I. 2015/1329, reg. 3(c); S.I. 2015/1689, reg. 2(g)

S. 1069 omitted (26.10.2023 for specified purposes, 5.3.2024 in so far as not already in force) by virtue of Economic Crime and Corporate Transparency Act 2023 (c. 56), ss. 75(3), 219(1)(2)(b); S.I. 2024/269, reg. 3

S. 1075 omitted (26.10.2023 for specified purposes, 4.3.2024 in so far as not already in force) by virtue of Economic Crime and Corporate Transparency Act 2023 (c. 56), ss. 80(2), 219(1)(2)(b); S.I. 2024/269, reg. 2(z22)

S. 1079A omitted (31.12.2020) by virtue of The Companies, Limited Liability Partnerships and Partnerships (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/348), reg. 2, Sch. 1 para. 19; 2020 c. 1, Sch. 5 para. 1(1)

S. 1087ZA omitted (26.10.2023 for specified purposes, 4.3.2024 in so far as not already in force) by virtue of Economic Crime and Corporate Transparency Act 2023 (c. 56), ss. 82(3), 219(1)(2)(b); S.I. 2024/269, reg. 2(z24)

S. 1095 omitted (26.10.2023 for specified purposes, 4.3.2024 in so far as not already in force) by virtue of Economic Crime and Corporate Transparency Act 2023 (c. 56), ss. 85(5), 219(1)(2)(b); S.I. 2024/269, reg. 2(z27)

S. 1095A omitted (26.10.2023 for specified purposes, 4.3.2024 in so far as not already in force) by virtue of Economic Crime and Corporate Transparency Act 2023 (c. 56), ss. 85(6), 219(1)(2)(b); S.I. 2024/269, reg. 2(z27)

S. 1175 omitted (26.5.2015) by virtue of Deregulation Act 2015 (c. 20), s. 115(3)(r), Sch. 23 para. 1

S. 1189 omitted (26.10.2023 for specified purposes, 4.3.2024 in so far as not already in force) by virtue of Economic Crime and Corporate Transparency Act 2023 (c. 56), ss. 42(a), 219(1)(2)(b); S.I. 2024/269, reg. 2(z6)

S. 1273 omitted (31.12.2020) by virtue of The Official Listing of Securities, Prospectus and Transparency (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/707), regs. 1(2), 39 (with savings in S.I. 2019/680, reg. 11 (as amended by S.I. 2019/1234, regs. 1(3), 29(2))); 2020 c. 1, Sch. 5 para. 1(1)

Sch. 9 omitted (26.5.2015) by virtue of Deregulation Act 2015 (c. 20), s. 115(3)(r), Sch. 23 para. 1 · repeated 16×

Sch. 10 Pt. 3 repealed (17.6.2016) by The Statutory Auditors and Third Country Auditors Regulations 2016 (S.I. 2016/649), reg. 1(1)(a), Sch. 3 para. 72 (with reg. 1(3)(8)(9)) · repeated 10×

Sch. 11A para. 53 repealed (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 19 (with Sch. 20); S.I. 2013/423, art. 3, Sch.

Sch. 11A para. 64 omitted (1.10.2015) by virtue of Deregulation Act 2015 (c. 20), s. 115(7), Sch. 6 para. 22(15)(b); S.I. 2015/1732, art. 2(e)(vi) (with art. 7)

Sch. 15 para. 2 repealed (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 19 (with Sch. 20); S.I. 2013/423, art. 3, Sch.

Sch. 15 para. 9 repealed (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 19 (with Sch. 20); S.I. 2013/423, art. 3, Sch.

Parser observation, not a legal amendment: the publisher XML contains 1 empty paragraph element.

Pending effects amendments not yet applied to this text

Pt. 3 Ch. 3 excluded by Charities Act (Northern Ireland) 2008 s. 112(7) · Effective date unknown

Sch. 1 para. 6(4) words inserted by Charities Act (Northern Ireland) 2008 Sch. 8 para. 13(6) · Effective date unknown · Sch. 1 para. 6

s. 155 omitted by Small Business, Enterprise and Employment Act 2015 s. 87(2) · Effective date unknown · s. 155

s. 156(1) words substituted by Small Business, Enterprise and Employment Act 2015 s. 87(3)(a) · Effective date unknown · s. 156

s. 156(4) words substituted by Small Business, Enterprise and Employment Act 2015 s. 87(3)(b) · Effective date unknown · s. 156

Show all 44

s. 495(2)-(4) applied (with modifications) by Local Democracy, Economic Development and Construction Act 2009 s. 44(2)(b) · Effective date unknown · s. 495

s. 496-501 applied (with modifications) by Local Democracy, Economic Development and Construction Act 2009 s. 44(2)(b) · Effective date unknown

s. 498-501 applied (with modifications) by Local Democracy, Economic Development and Construction Act 2009 s. 44(3)(b) · Effective date unknown

s. 834(5) words inserted by Finance Act 2009 Sch. 22 para. 11(4) · Effective date unknown · s. 834

s. 394C(2)(b) substituted by The Accounts and Reports (Amendment) (EU Exit) Regulations 2019 Sch. 2 para. 6(a) · Effective date unknown · s. 394C

s. 448C(2)(b) substituted by The Accounts and Reports (Amendment) (EU Exit) Regulations 2019 Sch. 2 para. 14(a) · Effective date unknown · s. 448C

s. 479A amendment to earlier affecting provision S.I. 2008/1911, reg. 34A by The Statutory Auditors and Third Country Auditors (Amendment) (EU Exit) Regulations 2019 reg. 50(b) · Effective date unknown · s. 479A

s. 479A(1)(b) words inserted by The Statutory Auditors and Third Country Auditors (Amendment) (EU Exit) Regulations 2019 reg. 4(a) · Effective date unknown · s. 479A

s. 479A(2)(c)(i) words inserted by The Statutory Auditors and Third Country Auditors (Amendment) (EU Exit) Regulations 2019 reg. 4(b)(ii) · Effective date unknown · s. 479A

s. 479A(2)(c)(zi) inserted by The Statutory Auditors and Third Country Auditors (Amendment) (EU Exit) Regulations 2019 reg. 4(b)(i) · Effective date unknown · s. 479A

Sch. 10 para. 6(1)(c) substituted by The Statutory Auditors and Third Country Auditors (Amendment) (EU Exit) Regulations 2019 reg. 28(a) · Effective date unknown · Sch. 10 para. 6

Sch. 10 para. 6(2D) inserted by The Statutory Auditors and Third Country Auditors (Amendment) (EU Exit) Regulations 2019 reg. 28(e) · Effective date unknown · Sch. 10 para. 6

Sch. 10 para. 7(2)(a)(ii) words omitted by The Statutory Auditors and Third Country Auditors (Amendment) (EU Exit) Regulations 2019 reg. 29(a) · Effective date unknown · Sch. 10 para. 7

Sch. 10 para. 7(2)(b)(ii) words omitted by The Statutory Auditors and Third Country Auditors (Amendment) (EU Exit) Regulations 2019 reg. 29(a) · Effective date unknown · Sch. 10 para. 7

Sch. 10 para. 7(2A) inserted by The Statutory Auditors and Third Country Auditors (Amendment) (EU Exit) Regulations 2019 reg. 29(b) · Effective date unknown · Sch. 10 para. 7

Act amendment to earlier affecting provision S.I. 2008/373 reg. 3(4) by The Companies (Revision of Defective Accounts and Reports) (Amendment) Regulations 2013 reg. 4 · Effective date unknown

Act amendment to earlier affecting provision S.I. 2008/373 reg. 11(1) by The Companies (Revision of Defective Accounts and Reports) (Amendment) Regulations 2013 reg. 9(a) · Effective date unknown

s. 414A(5) applied by S.I. 2008/373, reg. 4A(2) (as inserted) by The Companies (Revision of Defective Accounts and Reports) (Amendment) Regulations 2013 reg. 5 · Effective date unknown · s. 414A

s. 414D(1)(2) applied (with modifications) by S.I. 2008/373, reg. 4A(1) (as inserted) by The Companies (Revision of Defective Accounts and Reports) (Amendment) Regulations 2013 reg. 5 · Effective date unknown · s. 414D

s. 422A applied (with modifications) by S.I. 2008/373, reg. 6A (as inserted) by The Companies (Revision of Defective Accounts and Reports) (Amendment) Regulations 2013 reg. 6 · Effective date unknown · s. 422A

s. 474(1) word substituted by The Financial Services and Markets Act 2000 (Markets in Financial Instruments) (No.2) Regulations 2017 (revoked) reg. 7(b) · Effective date unknown · s. 474

s. 854-859 amendment to earlier affecting provision S.I. 2009/2436, Sch. 2 para 13(1) by The Information about People with Significant Control (Amendment) Regulations 2017 reg. 34 · Effective date unknown

s. 159A amendment to earlier affecting provision S.I. 2009/1804, reg. 17ZC by The Limited Liability Partnerships (Application of Company Law) (No. 2) Regulations 2024 reg. 4 · Effective date unknown · s. 159A

s. 1002A applied (with modifications) by S.I. 2009/1804, reg. 50A (as inserted) by The Limited Liability Partnerships (Application of Company Law) (No. 2) Regulations 2024 reg. 5 · Effective date unknown · s. 1002A

s. 1024-1028 amendment to earlier affecting provision S.I. 2009/1804, reg. 56 by The Limited Liability Partnerships (Application of Company Law) (No. 2) Regulations 2024 reg. 6 · Effective date unknown

s. 1029-1032 amendment to earlier affecting provision S.I. 2009/1804, reg. 57 by The Limited Liability Partnerships (Application of Company Law) (No. 2) Regulations 2024 reg. 7 · Effective date unknown

s. 1095 amendment to earlier affecting provision S.I. 2004/2326, Sch. 1A para. 5 by The Economic Crime and Corporate Transparency Act 2023 (Consequential, Supplementary and Incidental Provisions) Regulations 2024 Sch. 2 para. 2(2)(b) · Effective date unknown · s. 1095

s. 1127-1133 amendment to earlier affecting provision S.I. 2009/1804, reg. 73 by The Limited Liability Partnerships (Application of Company Law) (No. 2) Regulations 2024 reg. 8 · Effective date unknown

s. 1181 heading words omitted by Leasehold and Freehold Reform Act 2024 Sch. 9 para. 13(a) · Effective date unknown · s. 1181

s. 1181(1)(a) omitted by Leasehold and Freehold Reform Act 2024 Sch. 9 para. 13(b) · Effective date unknown · s. 1181

s. 1181(4) words omitted by Leasehold and Freehold Reform Act 2024 Sch. 9 para. 13(c) · Effective date unknown · s. 1181

s. 1253D(2)(f) omitted by The Companies Act 2006 (Transfer of Audit Working Papers to Third Countries) Regulations 2010 reg. 4(1) · Effective date unknown · s. 1253D

s. 1253D(2)(g) omitted by The Companies Act 2006 (Transfer of Audit Working Papers to Third Countries) Regulations 2010 reg. 4(1) · Effective date unknown · s. 1253D

s. 1253DE(1)(a) words substituted by The Companies Act 2006 (Transfer of Audit Working Papers to Third Countries) Regulations 2010 reg. 4(2)(a) · Effective date unknown · s. 1253DE

s. 1253DE(1)(c) words substituted by The Companies Act 2006 (Transfer of Audit Working Papers to Third Countries) Regulations 2010 reg. 4(2)(b) · Effective date unknown · s. 1253DE

s. 1253E(8) words substituted by The Companies Act 2006 (Transfer of Audit Working Papers to Third Countries) Regulations 2010 reg. 4(3)(a) · Effective date unknown · s. 1253E

s. 1253E(8)(a) words substituted by The Companies Act 2006 (Transfer of Audit Working Papers to Third Countries) Regulations 2010 reg. 4(3)(b) · Effective date unknown · s. 1253E

Sch. 7 para. 5-11 applied by 2014 c. 2, Sch. 1D para. 2(8) (as inserted) by English Devolution and Community Empowerment Act 2026 Sch. 35 · Effective date unknown

Sch. 11A para. 17E-17G substituted for Sch. 11A para. 17A-17D by English Devolution and Community Empowerment Act 2026 Sch. 36 para. 35 · Effective date unknown

Provenance

Every claim the system makes about this text is traceable to these identifiers.

Instrument
uk:ukpga/2006/46
Part
Chapter 3 Supplementary provisions
Version
17c130320052da87380f5984…
Content hash
sha256 8c1e576ebaa5c9d40975fa87…
Source
legislation.gov.uk/ukpga/2006/46