Question ID: 2485
Regulation Reference: (EU) No 2015/35 - supplementing Dir 2009/138/EC - taking up & pursuit of the business of Insurance and Reinsurance (SII), (EU) No 2015/2011 - lists of regional governments & local authorities, exposures to be treated as to central government
Topic: Solvency Capital Requirement (SCR)
Article: Article 1 of Commission Implementing Regulation (EU) 2015/2011; Article 180(2) of the Delegated Regulation (EU) 2015/35
Status: Final
Date of submission: 12 Sep 2022
Question
Which SCR ratio should be applied to CADES bonds ? CADEs is treated as a central government agency but is not explicitely guaranteed by the french government even if under control of french parliement ? Thanks for your answer
EIOPA answer
For the calculation of the spread risk and market concentration risk sub-modules, bonds issued by public entities should be treated as central government bonds only if:
- the entity is a regional government or local authority listed in Article 1 of Commission Implementing Regulation (EU) 2015/2011 or;
- there is a guarantee for the bond of the entity provided by one of the counterparties mentioned in points (a) to (d) of Article 180(2) of the Delegated Regulation (EU) 2015/35 or by an entity listed in Article 1 of Commission Implementing Regulation (EU) 2015/2011, and the guarantee is full, unconditional and irrevocable and meets the requirements set out in Article 215 of the Delegated Regulation (EU) 2015/35.
EIOPA did not assess whether CADES falls in one of the criteria above at the time of publication of this Q&A.