Insurers and Reinsurers are required to have Own Funds as follows:

• - Insurers: €2.2m - €3.2m (depending on whether they are writing life or non-life business).
• - Reinsurers: €3m.
• - Captive Reinsurers: €1m.

The Own Funds are to be composed of eligible assets and at least 50% of which must be in the form of paid up share capital.

Companies are required to maintain a Solvency Margin at all times. The precise solvency margin (and the minimum solvency margin) required is calculated in accordance with regulations modeled on the European Union Directives.