(1) In arriving at its Chargeable Profits, an Insurer shall be entitled to a deduction for any specific provisions established in respect of a present obligation arising from a past event, provided that the past event occurred after the commencement date of these Regulations.

(2) In arriving at the Chargeable Profits of an Insurer, no deduction may be allowed in respect of provisions of a general nature or for equalisation or catastrophe reserves established in respect of future events.