Skip to main content
European Insurance and Occupational Pensions Authority

638

Q&A

Question ID: 638

Regulation Reference: (EU) No 2015/2452 - procedures, formats and templates of the solvency and financial condition report

Article: 35

Template: S.25.01

Status: Final

Date of submission: 26 Apr 2016

Question

I have a question related to group aggregation reported in S.25.01.04. Do you have any information if the values for Capital requirements for other financial sectors (row R0510 to R0550 of S.25.01.04 ) are reported proportionally to the diversification effect at group level that is attributed to those undertakings or in full size (as for SCR for undertakings included via D and A on row R0560). Is the Total SCR for group (row R0570) calculated as a simple sum of the other applicable items reported in S.25.01.04?

EIOPA answer

As a general rule the values in R0510 to R0550 are reported without any diversification effect, as the sum of solo capital requirements. However, in accordance with Guideline 11 of the EIOPA Guidelines on group solvency, where the undertakings from other financial sectors form a sub-group subject to non-insurance sectoral capital requirements, and are all covered by the calculation carried out according to method 1 set out in Annex I to Directive 2002/87/EC, as provided in Article 228 of the Solvency II Directive, the participating insurance or reinsurance undertaking, the insurance holding company or the mixed financial holding company may use the solvency requirement of such a sub-group instead of the sum of the requirements of each individual undertaking  (i.e. diversification effects between entities subject to another sector’s regulatory capital requirements may be recognised if provided in relevant sectoral rules).

There will be no diversification effects recognised between the insurance undertakings in the group and the other financial sector entities in the group.  In this specific case the amount reported in cell R0510 should consider those diversification effects.
The total solvency capital requirement in R0570 is expected to be a simple sum of R0220 and R0560.