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Application provision

1.1 Unless otherwise stated, this Part applies to:

  1. (1) every UK Solvency II firm:
    1. (a) that is a member of a group for which the PRA is the group supervisor;
    2. (b) that is a member of a group for which a supervisory authority (other than the PRA) is the group supervisor, subject to (c) and to the extent this Part gives effect to the Solvency II EEA implementing measures in the EEA State of its group supervisor; and
    3. (c) where the group supervisor of a group of which a firm is a member is a supervisory authority in an EEA State other than the UK, the requirements of the Solvency II EEA implementing measures in that EEA State apply to the firm in relation to its capacity as a member of that group;
  2. (2) in accordance with Insurance General Application 3, the Society as a mixed activity insurance holding company, as modified by 21; and
  3. (3) a UK holding company.

11.1

01/01/2016

  1. (1) The calculation of the group solvency of the participating Solvency II undertaking in a group must be carried out on the basis of the consolidated accounts.
  2. (2) The group solvency of the participating Solvency II undertaking in a group is the difference between the following:
    1. (a) the own funds eligible for the group SCR, calculated on the basis of consolidated data; and
    2. (b) the group SCR calculated on the basis of consolidated data.
  3. (3) Own Funds and the SCR Rules apply to the calculation of the own funds eligible for the group SCR and of the group SCR based on consolidated data.

Additional Notes


[Note: Art. 230(1) of the Solvency II Directive]

11.2

01/01/2016

The group SCR of a group based on consolidated data (consolidated group SCR) must be calculated on the basis of either the standard formula or an approved internal model, in a manner consistent with the general principles contained in the SCR Rules

Additional Notes


[Note: Art. 230(2) of the Solvency II Directive]

11.3

01/01/2016

  1. (1) The consolidated group SCR of a group must have as a minimum the sum of the following:
    1. (a) the MCR of the participating Solvency II undertaking; and
    2. (b) the proportional share of the MCR of the related Solvency II undertakings.
  2. (2) That minimum must be covered by eligible own funds within paragraph 2 of the definition of “eligible own funds”.
  3. (3) For the purposes of determining whether those eligible own funds qualify to cover the minimum consolidated group SCR of a group, the principles in 8 to 10 apply with any necessary changes. Undertakings In Difficulty 3 also applies with any necessary changes.

Additional Notes


[Note: Art. 230(2) of the Solvency II Directive]

11.4

01/01/2016

Any application for permission to calculate the consolidated group SCR, as well as the SCR of Solvency II undertakings in the group, on the basis of an internal model, submitted by a Solvency II undertaking and its related undertakings, or jointly by the related Solvency II undertakings of an insurance holding company or a mixed financial holding company, must be submitted to the group supervisor.

Additional Notes


[Note: Art. 231(1) of the Solvency II Directive]