Question ID: 2375
Regulation Reference: (EU) 2023/894 - ITS with regard to the templates for the submission of information necessary for supervision
Topic: Reporting Templates
Template: S.09.01
Status: Final
Date of submission: 21 Dec 2021
Question
Guidance
Net gains and losses resulting from assets sold or matured during the re[1]porting period. The gains and losses are calculated as the difference between selling or maturity value and the value according to Article 75 of Directive 2009/138/EC at the end of the prior reporting year (or, in case of assets acquired during the reporting period, the acquisition value). The net value can be positive, negative or zero.
Our Approach
We are following the guidance, i.e., the calculation of the realised gains and losses under Solvency II differs to how they are calculated in our Financial Statements.
Guidance
Unrealised gains and losses resulting from assets not sold nor matured during the reporting period. The unrealised gains and losses are calculated as the difference between the value according to Article 75 of Directive 2009/138/EC at the end of the reporting year end and the value according to Article 75 of Directive 2009/138/EC at the end of the prior reporting year (or, in case of assets acquired during the reporting period, the acquisition value). The net value can be positive, negative or zero.
Our approach
From reading the guidance, it would appear that the unrealised gains and losses calculation under Solvency II is the same as that under GAAP? This would then suggest that our total gains and losses under Solvency II does not match our total gains and losses in our Financial Statements? However, our current approach for this field has been to include the difference between our total gains and losses in the Financial Statements and the net gains and losses under Solvency II above. Therefore, the total gains and losses under Solvency II is the same as our total gains and losses reported in our Financial Statements.
Can you please advise on which approach we should use in this QRT?
EIOPA answer
The definition of realised and unrealised gains and losses in the financial assessments may depend on whether IFRS or local GAAP are applied, for this reason EIOPA defined realised and unrealised gains and losses for the purposes of S.09.01 reporting. In any case, the total amount of gains and losses reported in S.09.01, i.e. the sum of C0070 to C0110 is not expected to reconcile with gains and losses from investments in the financial statements as valuation in Solvency II and the financial statements is not equivalent. The same holds true for net (realised) gains and losses and unrealised gains and losses. In S.09.01 net (realised) gains and losses should include gains and losses from assets sold or matured during the period excluding interest, dividends and rent; while unrealised gains and losses should include gains and losses from assets that have neither matured nor been sold during the period also excluding interest, dividends and rent". The cells for interest, dividends and rent include the amounts of interest, dividends and rent earned during the period regardless whether the asset has matured or been sold during the period.