Prudential Regulation Authority Rulebook

12.1

The group solvency of the participating Solvency II undertaking in a group is the difference between the following:

1. (1) the aggregated group eligible own funds, as provided for in 12.2; and
2. (2) the value in the participating Solvency II undertaking of the related Solvency II undertakings and the aggregated group SCR, as provided for in 12.3.

[Note: Art. 233(1) of the Solvency II Directive]

12.2

The aggregated group eligible own funds of a group is the sum of the following:

1. (1) the own funds eligible for the SCR of the participating Solvency II undertaking; and
2. (2) the proportional share of the participating Solvency II undertaking in the own funds eligible for the SCR of the related Solvency II undertakings.

[Note: Art. 233(2) of the Solvency II Directive]

12.3

The aggregated group SCR of a group is the sum of the following:

1. (1) the SCR of the participating Solvency II undertakings; and
2. (2) the proportional share of the SCR of the related Solvency II undertakings.

[Note: Art. 233(3) of the Solvency II Directive]

12.4

Where, in a group, the participation in the related Solvency II undertaking consists, wholly or in part, of an indirect ownership, the value in the participating Solvency II undertaking of the related Solvency II undertaking must incorporate the value of that indirect ownership. The value of that indirect ownership must take into account the relevant successive interests, and the items referred to in 12.2(2) and 12.3(2) must include the corresponding proportional shares, respectively, of the own funds eligible for the SCR of the related Solvency II undertaking and of the SCR of the related Solvency II undertakings.

[Note: Art. 233(4) of the Solvency II Directive]

12.5

Any application for permission to calculate 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 undertakings of an insurance holding company or a mixed financial holding company, must be submitted to the group supervisor.

[Note: Art. 233(5) of the Solvency II Directive]