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BLAGAB and share pooling

Given the significant equity holdings of life insurance companies, the share pooling rules are of particular importance and are modified to deal with the particular circumstances of the equity holdings of such companies¹.

The legislation identifies five separate pools that may potentially exist:

1. Ìý

   •ÌýÌýÌýÌý securities matched to BLAGAB liabilities

2. Ìý

   •ÌýÌýÌýÌý securities matched to other long-term liabilities

3. Ìý

   •ÌýÌýÌýÌý securities held for the purposes of any with-profits fund but which are not matched to any long-term business liabilities

4. Ìý

   •ÌýÌýÌýÌý securities held for the purposes of the company's long-term business but neither matched to any long-term liabilities nor held for the purposes of any with-profits fund, and

5. Ìý

   •ÌýÌýÌýÌý other securities (ie securities not held for the purposes of the company's long-term business)²

If the company has more than one with-profits fund, each