“Group r
isk” arises for insurance legal entities that are members of groups. Group risk also arises for an insurance group in respect of the widest group of which it is part. Group risk includes the risk that an insurance legal entity may be adversely affected by an occurrence (financial or non-financial) in another group entity. For instance, losses in one group member may create pressure to divert the financial resources of other members of the group to that entity or otherwise lead to a depletion of those financial resources. Group risk also includes the risk that the financial stability of a group or insurance legal entities within the group may be adversely affected by an event in a legal entity, a group-wide occurrence or an event external to the group. For example, the positive aspects of being a member of a group might be lessened due to restructuring.