Clifford Chance

Distribution of long term (life) insurance profits

19 April 2017

On 7 April 2017, the Institute of Chartered Accountants in England and Wales ("ICAEW") and the Institute of Chartered Accountants of Scotland published TECH 02/17 (the "Technical Release") which sets out guidance on realised and distributable profits under the Companies Act 2006 (the "Act"). The change in the Act concerning distributable profits in relation to long-term insurance business is addressed in paragraphs 2.48 to 2.60 of the Technical Release.

Significantly, the combination of the Technical Release and amendments to the Act should make the calculation and distribution of long-term insurance profits more manageable for insurers.

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