Question ID: 1463
Regulation Reference: (EU) No 2015/2450 - templates for the submission of information to the supervisory authorities
Article: 35
Status: Final
Date of submission: 30 Jan 2018
Question
R0770&R0780 (C0060) - Expected profits included in future premiums (EPIFP): Do you expect the EPIFP to be reported before or after tax and reinsurance? From our persepctive the SII regulations are clearly saying that EPIFP is a pre-tax figure, but SII regulations are silent on reinsurance. Could you please clarify?
EIOPA answer
"In R0770&R0780 (C0060) the Expected profits included in future premiums (EPIFP) to be filled in is to be reported:
- Net of "taxation payments which are, or are expected to be, charged to policy holders or are required to settle the insurance or reinsurance obligations." as per Article 28(h) of the Delegated Regulation
- Gross of taxation payments of the insurance undertaking
- Gross of reinsurance, as the best estimate is to be calculated gross (ref Solvency II Directive article 77(2) 4th paragraph), and the EPIFP in the reconciliation reserve is based on the best estimate (ref Delegated regulations articles 70(2) and 260(2)). "