Question ID: 386
Regulation Reference: Guidelines on group solvency
Article: 230
Status: Final
Date of submission: 18 Aug 2015
Question
In consolidation method, Group Risk Margin being a function of Risk Margin at solo level (as the sum), is the "undertaking" reference a "solo net of intra-group" or "solo gross of intra-group" ?
EIOPA answer
Consolidated risk margin should be calculated as the simple sum of the risk margin of the participating insurance or reinsurance undertaking and the proportional shares of the risk margin of related insurance and insurance undertakings, which means it should be gross of intra-group transactions.