Related insurance undertakings of a third country

(1) Where an insurance undertaking is a participating undertaking in a third-country insurance undertaking, and group solvency is calculated using the deduction and aggregation method, the third-country insurance undertaking is treated, for this calculation, as a related insurance undertaking. Where the third-country insurance undertaking is subject, in its country of establishment, to a licensing requirement and to solvency provisions that are at least equivalent to those laid down in Title I, Chapter VI, of Directive 2009/138/EC, the calculation of the Solvency Capital Requirement and of the eligible own funds is carried out in accordance with the provisions of that third country.
(2) Every participating undertaking may apply for an equivalence assessment under subsection (1), second sentence. The group supervisory authority decides on equivalence after consulting the other affected supervisory authorities and involving the European Insurance and Occupational Pensions Authority. The decision is taken on the basis of the criteria laid down by the Commission in delegated acts under Article 227(3) of Directive 2009/138/EC. The group supervisory authority is bound by a decision previously taken in respect of a third country. This does not apply where a fresh assessment is necessary because the supervisory system described in Title I, Chapter VI, of Directive 2009/138/EC, or the third country's supervisory system, has changed materially. Where the other affected supervisory authorities do not agree with the decision taken by the group supervisory authority, they may, under Article 19 of Regulation (EU) No 1094/2010, refer the matter to the European Insurance and Occupational Pensions Authority within three months of the group supervisory authority's notification of the decision, and request its assistance.
(3) A delegated act of the European Commission under Article 227(4) of Directive 2009/138/EC on whether or not the solvency provisions of a third country are equivalent is binding on the group supervisory authority and precludes an assessment under subsection (2). The same applies where, and for as long as, a delegated act of the European Commission under Article 227(5) of Directive 2009/138/EC on provisional equivalence exists.