Question ID: 3519
Regulation Reference: Guidelines on classification of own funds
Topic: Own Funds (OF)
Article: SECTION 2 - Classification of Own Funds
Status: Rejected
Date of submission: 23 Feb 2026
Question
Could you please confirm if an insurance bond issuer is allowed to reclassify the excessive available basic own funds (bonds) beyond the quantitative limit into another tier? For example, when the amount of Restricted T1 bonds issued by an insurer surpasses the 25% of Unrestricted T1, can the issuer reclassify partially / in whole the excessive available RT1 into eligible Tier 2, assuming Tier 2 layer has enough headroom?
EIOPA answer
This question has been rejected because the issue is already addressed in Article 82 of Commission Delegated Regulation (EU) 2015/35 and in EIOPA Guideline 20 on classification of own funds. For the purposes of calculating eligible own funds, any excess available Restricted Tier 1 above the applicable Article 82 limit may be taken into account as eligible Tier 2 basic own funds, provided the relevant conditions are met and there is sufficient Tier 2 headroom.