For the purposes of regulation 3.2, the assets of the kinds set out in Schedule 1 of an asset-holding intermediary of a short-term insurer, other than a claim thereof against that short-term insurer, shall be deemed to be assets of the short-term insurer—
| (a) | in place of the net loans made by it to the asset-holding intermediary, to the extent determined in accordance with the formula— |
A/B x C
| (b) | in place of its shares, other than equity shares, in the asset-holding intermediary, to the extent determined in accordance with the formula— |
A/B x D
| (c) | in place of its equity shares in the asset-holding intermediary, to the extent determined in accordance with the formula— |
E x F/G
in which formulae—
| A | represents the market value of each asset or kind or category of assets specified in column 1 of the Table to this Part of the asset-holding intermediary; |
| B | represents the aggregate market value of all the assets of the asset-holding intermediary; |
| C | represents the amount of any claim arising from any net loans to the asset-holding intermediary; |
| D | represents the value of shares, other than equity shares, held by the short-term insurer in the asset-holding intermediary, plus or minus the amount to be apportioned to those shares by virtue of the excess or shortfall of the assets of the asset-holding intermediary over its liabilities; |
| E | represents A minus the sum of the amounts determined in accordance with the formulae referred to in paragraphs (a) and (b); |
| F | represents the value of the equity shares held by the short-term insurer in the asset-holding intermediary; |
| G | represents the aggregate value of all equity shares of the asset-holding intermediary. |
