Pursuant to the Delegated act (EU 2015/35) art. 330.5 some own fund items may only be included in the calculation of group solvency up to the contribution of that related undertaking to the group SCR. Pursuant to the Directive (2009/138/EC) art. 230.2 the group SCR shall have a minimum of the sum of the MCR of the related undertakings (or their proportional shares where applicable), when applying method 1 for calculating the group solvency. There are cases where a specific undertaking has a MCR that exceeds the SCR. When such undertakings are part of a group, the undertaking may contribute to the group SCR with an amount lower than its contribution to the minimum level for the group SCR. If the contribution of this undertaking to own funds available on group level do not consider its contribution to the minimum group SCR it will negatively impact group solvency for some groups comprising small undertakings. We do not believe that such consequences are intended. We have asked the Swedish FSA (Finansinspektionen) this question as it relates also to the Swedish transposition of provisions of the Directive. The Swedish FSA referred us to EIOPA.

 The availability of own funds at group level depends on the contribution of relating undertaking to the group Solvency Capital Requirement (SCR) pursuant Article 330 of the Delegated Regulation.

According to Article 330 (6) of the Delegated Regulation, the calculation of the contribution of a related undertaking to the group SCR shall always be based on the SCR of the individual undertaking, and not its solo MCR.