Insurance Companies Act

Marginal note:Payments to shareholders from participating account

461 A company that has share capital may, from a participating account maintained pursuant to section 456, in a financial year and at any time within six months after the end of that financial year, make a payment to its shareholders, or transfer an amount to an account (other than a participating shareholder account as defined in section 83.01) from which a payment can be made to its shareholders, if

• (a) the aggregate of the amounts so paid or transferred in that financial year does not exceed the percentage of the portion of the profits of the participating account that is determined by the directors as the portion to be distributed for that financial year to the shareholders and participating policyholders, which percentage shall not exceed the number, expressed as a percentage, that is the aggregate of

  • (i) 10 multiplied by the lesser of

    • (A) the sum of the opening balances for that financial year of all participating accounts of the company, and

    • (B) two hundred and fifty million dollars,

  • (ii) 7.5 multiplied by the amount, if any, by which the lesser of

    • (A) the sum of the opening balances for that financial year of all participating accounts of the company, and

    • (B) five hundred million dollars

    exceeds two hundred and fifty million dollars,

  • (iii) 5 multiplied by the amount, if any, by which the lesser of

    • (A) the sum of the opening balances for that financial year of all participating accounts of the company, and

    • (B) one billion dollars

    exceeds five hundred million dollars, and

  • (iv) 2.5 multiplied by the amount, if any, by which the sum of the opening balances for that financial year of all participating accounts of the company exceeds one billion dollars,

  divided by the sum of the opening balances for that financial year of all the participating accounts;

• (b) the company pays dividends or bonuses to its participating policyholders out of the profits of the participating account for that financial year in accordance with its dividend or bonus policy established pursuant to paragraph 165(2)(e); and

• (c) the payment to the shareholders, or the transfer to the account from which a payment can be made to the shareholders, would not, in the opinion of the actuary of the company, materially affect the company’s ability to continue to comply with its dividend or bonus policy or to maintain the levels or rates of dividends or bonuses paid to the company’s participating policyholders.