(1) In the absence of equivalent supervision referred to in Regulation 264, or where Regulation 265 does not apply in the event of temporary equivalence in accordance with Regulation 264(8), the Bank where it is group supervisor shall apply either of the following to insurance undertakings and reinsurance undertakings:

(a) Regulations 221 to 238 and 245 to 263 subject to any necessary modifications;

(b) one of the methods set out in paragraph (4).

(2) The general principles and methods set out in Regulations 221 to 263 shall apply at the level of the insurance holding company, mixed financial holding company, third-country insurance undertaking or third-country reinsurance undertaking.

(3) For the sole purpose of the group solvency calculation, the parent undertaking shall be treated as if it were an insurance undertaking or reinsurance undertaking subject to the same conditions as laid down in Regulations 102 to 112 as regards the own funds eligible for the Solvency Capital Requirement and to either of the following: