Grandfathering for reinsurance undertakings

(1) For undertakings that conduct exclusively reinsurance business, have already conducted this business before 21 December 2004, and are registered as reinsurance undertakings with the supervisory authority, the authorisation under section 8(1) is deemed to have been granted to the extent of the business operations previously conducted. These undertakings are, however, subject without limitation to ongoing supervision.
(2) For third-country reinsurance undertakings that continue existing branches and have notified the Federal Institute of this by 31 December 2007, the necessary authorisation is deemed to have been granted to the extent of the notified business operations, provided they are authorised to conduct reinsurance business in their home state, have their head office there, are supervised there in accordance with internationally recognised principles, and satisfactory cooperation between the competent authorities of the home state and the Federal Institute is ensured. These undertakings are, however, subject without limitation to ongoing supervision.