Amount of reduction.
Amount of reduction. The reduction required by this paragraph (g)(3) equals the amount obtained by dividing
(i) The portion of the capitalization shortfall (as defined in paragraph (g)(4) of this section) allocated to the reinsurance agreement under paragraph (g)(7) of this section; by
(ii) The applicable percentage set forth in section 848(c)(1) for the category of specified insurance contracts reinsured by the agreement.