Question ID: 134
Regulation Reference: Guidelines on submission of information to NCAs (Preparatory phase)
Article: 230, 35
Template: S.35.01
Status: Final
Date of submission: 04 Feb 2015
Question
Technical Annex I says that template S.35.01.g (old G14) is a list of technical provisions that contribute to group technical provisions. It also mentions that it is applicable to method 1 and method 2. Are non-controlled entities meant to be included as well (since they do not contribute to group technical provisions)?
The definition of cell R1 includes the following: "When method 1 as defined under Article 230 of the Solvency II Directive is used for the (re)insurance undertaking, the total amount of technical provisions in cell R1 accounts for its contribution net of reinsurance ceded within the group to the group technical provisions. The total amount of technical provisions in cell R1 for all (re)insurance undertakings under method 1 can be reconciled with the amount of group technical provisions in the group balance sheet (sum of the cells L1+L4+L6B+L7+L10)"
However, if non-controlled entities were included this reconciliation would not hold.
EIOPA answer
EIOPA confirms that non-controlled entities (NCP) are excluded from the scope of template S.35.01.g (old G14) as NCP are assessed through the adjusted equity method and consequently the technical provisions are already included in such assessment.
The aim of the template is to make the link with the consolidated balance sheet and NCP do not contribute to TP in the consolidated balance sheet (NCP are not consolidated line by line).