FME releases today Consultation Paper No. 1/2006, a draft Guidance on the treatment of changes in insurance companies' own funds and liabilities, as a consequence of the take up of International Financial Reporting Standards (IFRS).

The FME has processed figures showing defaults by borrowers of depository institutions at the end of the 4th quarter of fiscal year 2005 and comparable figures for the preceding quarters.

The FME has issued Rules No 177/2006 amending Rules on FME criteria for assessing the exposure of financial undertakings and decisions on capital adequacy ratios above the statutory minimum.

Circular regarding Article 82 in the Insurance Contract Law no. 30/2004 on obligation of the policyholder and insured to provide information on the risk, restrictions on information provision.

The Financial Supervisory Authority has on 30th of March 2006 set guidelines on the use of financial derivatives instruments for undertakings for collective investment in transferable securities.

All Icelandic banks passed FME's stress test based on their financial position at year end 2005

FME has asked insurance companies to participate in QIS2, in order to acquire insight into the impact of Solvency II, the new solvency and supervisory standard in preparation by the European Commission, with the advice of CEIOPS.

Annual Accounts For 2004 and Other Information

The Guidelines are directed to insurance companies which already have implemented or will in the future implement IFRS.

Balance Sheets, Dec. 31. 2005, Profit and Loss Accounts 2005, and Diverse Figures From the Annual Accounts

Balance Sheets, Dec. 31. 2005, Profit and Loss Accounts 2005, and Diverse Figures From the Annual Accounts