Surplus Funds and Technical Provisions


A firm shall not treat surplus funds as insurance and reinsurance obligations when valuing payments to policyholders and beneficiaries in the calculation of technical provisions in accordance with Technical Provisions 2.

[Note: Art. 78(3) and Art. 91(2) of the Solvency II Directive]


In order to comply with 2.1, a firm must calculate the amount, if any, of its surplus funds in accordance with 3.