Regulations Governing the Consolidated Capital Adequacy of Financial Holding Companies Article 8

If an insurance subsidiary of a financial holding company has been approved by the competent authority to apply the Directions for Insurance Enterprise Applying for Optional Transitional Measures on Capital Resource and Capital Requirement (hereinafter referred to as the "Directions"), the financial holding company may calculate the capital adequacy ratio of its group during the application period in accordance with the following provisions:1.When calculating the capital adequacy ratio of the group, calculate the eligible capital and statutory capital requirement of the insurance subsidiary as adjusted after applying the Directions. 2.The capital surplus of insurance subsidiaries set forth in Subparagraph 4, Paragraph 1 of Article 4 is not deducted from the total eligible capital of the group. However, starting from 2026, the amount exempted from deduction shall decrease in equal proportions based on the remaining transitional years, and revert to the calculation required under the aforementioned subparagraph.3.If the insurance subsidiary terminates the application of the Directions ahead of schedule, the financial holding company shall cease applying the provisions of the preceding two subparagraphs starting from the date of termination by the subsidiary.