Question ID: 1378
Regulation Reference: (EU) No 2015/2450 - templates for the submission of information to the supervisory authorities
Article: 35
Template: S.29.01
Status: Final
Date of submission: 03 Apr 2018
Question
How to undestand "Variation in investment in UL" R0300? For eg, for a new UL contract with written premiums of 100Euro, say UL fund investment of 100Euro too and assume no change in financial market till year end. So BEL increases by 100Euro and the same for "variation in investments in UL".
Then the total impact to R0360 due to this contract would be (-delta BEL - variations in investment in UL + technical flows)=-100-100+100=-100, which does not seem to be right. Is that what is expected? Perhaps somewhere else in S.29.01, there is another positive item with +100?
EIOPA answer
In S.29.03.R0300 the net impact of the amount of the assets held by index-linked and unit-linked business and of Technical provisions – index-linked and unit-linked (calculated as best estimate and risk margin or calculate as a whole) should be reported for information.
In the technical flows affecting technical provisions but that are not reflected in the best estimate, the amounts should include the technical flows related to index-linked and unit-linked. So, the amount should be calculated as (- variations in investment in UL + technical flows)= -100+100=0, because delta BEL = 0 in this case because it is reflected in the closing BE.