I-3, r. 1 - Regulation respecting the Taxation Act

Section 818r53.4 Disposition versions

2023-09-26

818R53.4. The property and casualty insurance surplus of an insurer for a taxation year means the amount determined by the formula

0.075 × (A + B + C + D – E – F) + 0.5 × (G + H).

In the formula in the first paragraph,

(a)  A is the aggregate of all amounts each of which is the liability for remaining coverage for a group of insurance contracts of the insurer at the end of the year that is in respect of property and casualty insurance;

(b)  B is the aggregate of all amounts each of which is the liability for remaining coverage for a group of insurance contracts of the insurer at the end of the preceding taxation year that is in respect of property and casualty insurance;

(c)  C is the aggregate of all amounts each of which is the liability for incurred claims for a group of insurance contracts of the insurer at the end of the year that is in respect of property and casualty insurance;

(d)  D is the aggregate of all amounts each of which is the liability for incurred claims for a group of insurance contracts of the insurer at the end of the preceding taxation year that is in respect of property and casualty insurance;

(e)  E is the aggregate of all amounts each of which is an amount, in respect of a group of reinsurance contracts held by the insurer at the end of the year, that is

i.  if no portion of the reinsurance contract held amount for the group is in respect of the reinsurance of a risk under a policy other than a policy that is in respect of property and casualty insurance, the reinsurance contract held amount for the group, or

ii.  in any other case, the amount that would be the reinsurance contract held amount for the group if the reinsurance contract held amount were determined without taking into account any portion that is in respect of the reinsurance of a risk under a policy other than a policy in respect of property and casualty insurance;

(f)  F is the aggregate of all amounts each of which is an amount, in respect of a group of reinsurance contracts held by the insurer at the end of the preceding taxation year, that is

i.  if no portion of the reinsurance contract held amount for the group is in respect of the reinsurance of a risk under a policy other than a policy that is in respect of property and casualty insurance, the reinsurance contract held amount for the group, or

ii.  in any other case, the amount that would be the reinsurance contract held amount for the group if the reinsurance contract held amount were determined without taking into account any portion that is in respect of the reinsurance of a risk under a policy other than a policy in respect of property and casualty insurance;

(g)  G is the insurer’s investment valuation reserve as at the end of the year in respect of its property and casualty insurance business; and

(h)  H is the insurer’s investment valuation reserve as at the end of its preceding taxation year in respect of its property and casualty insurance business.

S.Q. 2023, c. 19, s. 153.