1
Application and Definitions
1.1
Unless otherwise stated, this Part applies:
- (1) to a UK Solvency II firm that is not a small firm for external audit purposes;
- (2) to the Society in accordance with General Application 3; and
- (3) at the level of a group, that is not a small group for external audit purposes, to which Group Supervision 2.1(1) or 2.1(2) applies and where the PRA is the group supervisor, to a relevant insurance group undertaking; and
- (4) to an external auditor of such a firm or group.
- 15/11/2018
1.2
This Part applies to a firm or a relevant insurance group undertaking, as the case may be, in respect of financial years ending on or after 15 November 2016.
- 10/09/2016
1.3
In this Part, the following definitions shall apply:
means one or more pension schemes managed by an insurer on behalf of an employer and for which liabilities are calculated by the insurer only at scheme level.
general insurance best estimate liability
means:
- (1) the sum of items entered under row codes R0370, R0380, R0410 and R0420, column code C0180, of template IR.17.01.01 set out in the Reporting Part; plus
- (2) the item entered under row code R0030, column code C0090, of template IR.12.01.01 set out in the Reporting Part,
in each case as required to be reported to the PRA for the relevant financial year end.
general insurance gross written premium
means the total of items entered under row code R0110, as expressed in column code C0015 where this column is completed for those row codes, of template IR.05.04.01 set out in the Reporting Part, in each case as required to be reported to the PRA for the relevant financial year end.
life insurance best estimate liability
means:
- (1) the item entered under row code R0030, column code C0070 of template IR.12.01.01 set out in the Reporting Part; minus
- (2) the item entered under row code R0030, column code C0040 of template IR.12.01.01 set out in the Reporting Part; minus
- (3) corporate pensions business reported under column code C0180 of template IR.14.01.01, set out in the Reporting Part,
in each case as required to be reported to the PRA for the relevant financial year end.
life insurance gross written premium
means:
- (1) the item entered under row code R0030, column code C0070 of template IR.05.03.01 set out in the Reporting Part; minus
- (2) corporate pensions business under column code C0060 of template IR.14.01.01 set out in the Reporting Part,
in each case as required to be reported to the PRA for the relevant financial year end.
means the templates and information in 2.2
means for the relevant financial year end the sum of the following:
- (1) general insurance gross written premium x (6.71 x 10-7);
- (2) general insurance best estimate liability x (3.97 x 10-8);
- (3) life insurance gross written premium x (3.11 x 10-7); and
- (4) life insurance best estimate liability x (1.18 x 10-8),
- where:
- (a) each of the four components to the calculation of score is floored at a zero value, such that where any calculation at (1) to (4) produces a negative number, that number shall be substituted with a zero; and
- (b) general insurance gross written premium, general insurance best estimate liability, life insurance gross written premium and life insurance best estimate liability are all expressed in pounds sterling. Where a firm reports in a currency other than pounds sterling, this means the relevant reported figures converted into pounds sterling using the daily spot exchange rate as published on the Bank of England website applicable on the “as at date” of the reporting.
small firm for external audit purposes
- (1) For the purposes of external audit of a SFCR relating to a financial year ending
on or after 15 November 2018 but before 15 November 2019, means a UK Solvency II firm where its score is less than 100. - (2) For the purposes of external audit of a SFCR relating to a financial year ending
on or after 15 November 2019, means a UK Solvency II firm where: - (a) its score is less than 100 for its two most recent financial year ends; or
- (b) its score is greater than 100, if the financial year end to which the score relates immediately follows a financial year end in which that UK Solvency II firm met the condition in (2)(a).
small group for external audit purposes
means a group in which every UK Solvency II firm in the group is a small firm for external audit purposes.
- 31/12/2024