Section 453 | Insurance entities ^F1

(1)This section applies where—^F1

(a)an insurance entity is a member of a worldwide group,^F1

(b)the entity has a subsidiary (“S”) which it holds as a portfolio investment, and^F1

(c)apart from this section, S would be a member of the group.^F1

(2)For the purposes of this Part—^F1

(a)the group does not include S (or its subsidiaries), and^F1

(b)accordingly, none of those entities is regarded as a consolidated subsidiary of any member of the group.^F1

(3)For the purposes of this section an insurance entity holds an interest in an entity as “a portfolio investment” if—^F1

(a)the insurance entity holds the interest as an investment, and^F1

(b)the insurance entity judges the value that the interest has to it wholly or mainly by reference to the market value of the interest.^F1

(4)In this section—^F1

“insurance entity” means—

(a)an insurance company,

(b)a friendly society within the meaning of Part 3 of FA 2012 (see section 172), or

(c)a body corporate which carries on underwriting business as a member of Lloyd's, and

“subsidiary” has the meaning given by international accounting standards.