Question ID: 1017
Regulation Reference: (EU) No 2015/35 - supplementing Dir 2009/138/EC - taking up & pursuit of the business of Insurance and Reinsurance (SII), (EU) No 2015/2450 - templates for the submission of information to the supervisory authorities
Topic: Group Own funds
Article: 82, 330, 35
Template: S.23.01
Status: Final
Date of submission: 12 Jun 2017
Question
Question on group own funds reporting in conjunction with articles 82 and 330 of the Delegated Regulation (EU) 2015 / 35
This question regards the case that net deferred tax assets on group level (S.23.01.04, r0160, c0050) are zero while there are non-available net deferred tax assets according to article 330 (3c) and (5) of the Delegated Regulation (EU) 2015 / 35. Following the logic of S.23.01.04 this can lead to total available own funds to meet the minimum consolidated group SCR (S.23.01.04, r0530, c0010) that surpass the total available own funds to meet the consolidated group SCR (S.23.01.04, r0520, c0010). Is (S.23.01.04, r0530, c0010) > (S.23.01.04, r0520, c0010) admissible? If not, how should the amount of non-available net deferred tax assets be reported?
EIOPA answer
The solo net DTA of the related undertaking should be reflected in Tier 3 in the group own funds and should not be netted against any potential net DTL of another related undertaking.
In the proposed example, if the total amount of net DTA from the related undertaking is 10, then 10 should be deducted from the excess of assets over liabilities as other basic own-funds items (R0730) in order to obtain the reconciliation reserve of 990.
The 10 are then recorded as Tier 3 deferred tax assets (R0160).
The non-available part can then be reflected in R0170.
The proposed answer is simplified (since the case proposed is simple in itself) and in practice other elements should be considered, such as the nature and relationship within undertakings (if insurance undertakings and if consolidated or not) and the fiscal regime applicable.