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The cash flow projections used in the calculation of best estimates for life insurance obligations shall be made separately for each policy. Where the separate calculation for each policy would be an undue burden on the insurance or reinsurance undertaking, it may carry out the projection by...

1. The best estimate for non-life insurance obligations shall be calculated separately for the premium provision and for the provision for claims outstanding.2. The premium provision shall relate to future claim events covered by insurance and reinsurance obligations falling within the contract...

1. The risk margin for the whole portfolio of insurance and reinsurance obligations shall be calculated using the following formula: RM= CoC ·sum(t>=0)SCR(t)/(1+r(t+1))^t+1 where:(a) CoC denotes the Cost-of-Capital rate;(b) the sum covers all integers including zero;(c) SCR(t) denotes the Solvency...

1. The calculation of the risk margin shall be based on all of the following assumptions:(a) the whole portfolio of insurance and reinsurance obligations of the insurance or reinsurance undertaking that calculates the risk margin (the original undertaking) is taken over by another insurance or...

The Cost-of-Capital rate referred to in Article 77(5) of Directive 2009/138/EC shall be assumed to be equal to 6 %.

1. For the purposes of the second subparagraph of Article 77(4) of Directive 2009/138/EC, reliability shall be assessed pursuant to paragraphs 2 and 3 of this Article and technical provisions shall be valued pursuant to paragraph 4 of this Article.2. The replication of cash flows shall be...

1. The amounts recoverable from reinsurance contracts and special purpose vehicles shall be calculated consistently with the boundaries of the insurance or reinsurance contracts to which those amounts relate.2. The amounts recoverable from special purpose vehicles, the amounts recoverable from...

1. Adjustments to take account of expected losses due to default of a counterparty referred to in Article 81 of Directive 2009/138/EC shall be calculated separately from the rest of the amounts recoverable.2. The adjustment to take account of expected losses due to default of a counterparty shall...

1. The rates of the basic risk-free interest rate term structure shall meet all of the following criteria:(a) insurance and reinsurance undertakings are able to earn the rates in a risk-free manner in practice;(b) the rates are reliably determined based on financial instruments traded in a deep...