Section 453 | Insurance entities

(1)This section applies where—

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

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

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

(2)For the purposes of this Part—

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

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

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

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

(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.

(4)In this section—

“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.