Question ID: 324
Regulation Reference: Guidelines on group solvency
Article: 330
Status: Final
Date of submission: 04 Sep 2015
Question
Minority Interest – Article 330 appears to suggest that minority interest is excluded from the calculation of own funds eligible for the SCR. Can you confirm that this is indeed the case?
EIOPA answer
- As provided by Article 330 (4) (a) of the Commission Delegated Regulation 2015/35, any minority interest in a subsidiary exceeding the contribution of that subsidiary undertaking to the group solvency capital requirement is not available to cover the group solvency capital requirement.
Guideline 14 of EIOPA Guidelines on group solvency describes how a participating (re)insurance undertaking, an insurance holding company or a mixed financial holding company should calculate the amount of minority interests to be deducted from the group own funds. Examples are also provided in the explanatory text.
The technical annex of EIOPA Guidelines on group solvency describes the contribution of the (re)insurance subsidiary to the group solvency capital requirement.
- As provided by Article 330 (4) (b) of the Commission Delegated Regulation 2015/35, any minority interest in a subsidiary ancillary services undertaking shall not be considered available to cover the group solvency capital requirement.