Business unrelated to insurance

(1) In addition to insurance business, direct insurance undertakings may conduct only such business as is directly connected with insurance business. In the case of futures transactions and transactions involving options and similar financial instruments, such a connection is assumed where they serve to hedge against price or interest-rate change risks affecting existing assets or the future acquisition of securities, or where additional income is to be generated from existing securities without a shortfall in the cover assets being capable of arising upon fulfilment of delivery obligations. In the case of raising external funds, there is generally no direct connection within the meaning of the first sentence. In the case of other business, such a connection is assumed only where it is not associated with an additional financial risk.
(2) Reinsurance undertakings may conduct only reinsurance business and business and services connected with it. The function and activities as a holding company in relation to undertakings of the financial sector within the meaning of section 2(3) of the Financial Conglomerates Supervision Act are also deemed to be business connected with reinsurance business.
(3) Insurance distribution within the meaning of section 7, point 34a, forms part of the business operations of an insurance undertaking.