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European Insurance and Occupational Pensions Authority

721

Q&A

Question ID: 721

Regulation Reference: Guidelines on reporting for financial stability purposes

Article: 35

Template: S.25.02

Status: Final

Date of submission: 06 Jul 2016

Question

Please could you advise what group SCR you expect to be disclosed in cell R0010 of S.25.04.13 (quarterly FS QRT)?  Do you expect the total group SCR (i.e. equivalent to annual S.25.02.04 R0570), or do you expect the group SCR for method 1 entities only (i.e. excluding method 2 entities)?

Guideline 12 (g) of EIOPA-BoS-15/107 implies that the S.25.04.13 QRT excludes method 2 only entities (i.e. only include the SCR for method 1 entities within the group).  This is also consistent with our approach for other FS QRTs with this same instruction (e.g. S.14, S.38, S.40, S.41) where we are assuming that only method 1 entities are in scope for group submission of these QRTs, as these QRTs relate to technical provision related disclosures (where method 2 entities are not included in technical provisions in the group BS, but rather as single line under participations).

As this is a Q1 2016 QRT, a quick response would be appreciated.

EIOPA answer

The text in Guideline 12 (g) follows the wording used in Implementing Technical Standards with regard to the templates for the submission of information to the supervisory authorities. Unfortunately this text is not fully appropriate for Financial Stability Reporting of group Solvency Capital Requirements because (unlike regular reporting under the above mentioned ITS) there is no requirement to report group SCR including undertakings covered by method 2 in the Own Funds template (S.23).

As a consequence, Guideline 12 should be updated to reflect that for FS reporting, the SCR reported in 25.04.13 should be reported regardless of the method used for the calculation of the group solvency, including exclusive application of method 2. It is therefore expected that the reported information contains the total group SCR, as indicated in the instructions.