Question ID: 653
Regulation Reference: (EU) No 2015/2450 - templates for the submission of information to the supervisory authorities
Article: 35
Template: S.06.02
Status: Final
Date of submission: 05 Aug 2016
Question
In the event an insurer is acquired by a group, the solo submissions for the acquired insurer are not expected to be affected.
It is not clear how the group submission may be affected. The issue also applies to the internal transfer of an insurer within the Group (a Part VII transfer).
1. Specific fields in QRTs related historic value or date
Is the group submission to report the information below based on the acquired insurer’s perspective (as per the solo)? Or should the information be based on the date of acquisition of the insurer by the group (differing from the solo)?
S.06.02 – List of Assets
C0160(A25) Acquisition value
S.08.01 – Open Derivatives
C0220(A26) Initial date
C0150(A17) Premium paid to date
C0160 Premium received to date
S.08.02 – Closed Derivative Trades
C0140(A17) Premium paid to date
C0150 Premium received to date
C0160(A18) Profit and loss to date
2. Scope of trading activity of QRTs
Is the scope of the group submission based on the acquired insurer’s full period (as per the solo)? Or should the scope be limited to the proportion of trading activity occurring from the date of acquisition of the insurer by the group (differing from the solo)?
S.08.02 – Closed Derivative Trades
S.09.01 – Income gains/losses
S.10.01 – Security lending and repo – the QRT requires contracts closed over the period to be listed (which may fall prior to the insurer acquisition).
EIOPA answer
EIOPA confirms that solo submissions for the acquired are not expected to be affected.
Regarding the group submission, by default the date of acquisition of the insurer should be considered as the general principle of consolidation states that only the profit/loss after the acquisition date should be considered in the consolidation. If a group buys an entity, all assets and liabilities are revalued. This means:
- S.06.02.C0160 - Acquisition value: should reflect the Solvency II value at the date of insurer acquisition. Please note that, if the same asset is held by different entities within the group are subject to consolidation, the acquisition value should be reported as a weighted average. Different acquisition values do not originate additional lines in S.06.02;
- S.08.01.C0220 - Initial date; C0150 - Premium paid to date; C0160 - Premium received to date: should reflect the information since the date of insurer acquisition;
- S.08.02.C0140 - Premium paid to date; C0150 - Premium received to date; C0160 - Profit and loss to date: should reflect the information since the date of insurer acquisition;
- S.09.01: should reflect the information since the date of insurer acquisition.
Regarding the scope of trading activity, the contracts closed prior to the insurer acquisition of the company should not be reported.