We would like to clarify the calculation of Linear MCR in QRT S.28.02, R300/C0130 which came up in Q&A Number 1653.

Based on our understanding C0130/R0300 is not necessarily the sum of C0010/R0010 + C0010/R0020 + C0070/R0200 + C0080/R0200 since the linear MCR should be calculated based on the TPs and WPs for the whole segment s (in Q&A Number 1653 you state that the floor of zero for linear MCR calculation should not be applied to any sub-component. We would interpret subcomponent as nl and l).

In addition ITS 2015/2450 states that the floor of zero should also be applied to C0030-C0060/R0020-R0170 and C0090-C0120/R0210-R250.

Therefore we would clarify whether following example is correct?

Following example is given for segment (medical expense); all other non life and life activities assumed to be 0.
TP nl part: 100
TP l part: -50
P nl part: 0
P l part: 0
MCR(NL,NL): C0010/R0010 = max(100, 0) * 4.7% = 4.7
MCR(NL,L): C0020/R0020 = max(-50, 0) * 4.7% = 0
Linear MCR: C0130/R0300 = max(100 - 50, 0) * 4.7% = 2.35

As you can see the sum of the MCR (NL,NL) and MCR (NL,L) is not matching the Linear MCR, since no offsetting of TPs is in the calculation.
Given that the example is correct what is the reason that the disclosure of TPs and Ps and the calculation of linear MCR are not in line? May I kindly ask you to provide us with your answer