Regulatory Alerts2024-12-05
Order on the Calculation of the Capital Base and Solvency Capital Requirements for Groups
The Danish Financial Supervisory Authority issued this Order to implement Solvency II directives regarding the calculation of capital bases and solvency capital requirements for insurance groups. It establishes two primary methods for group solvency calculation—accounting consolidation and deduction/aggregation—and defines strict rules for proportional share inclusion, elimination of double counting, and treatment of third-country parent companies. The regulation mandates specific supervisory assessments for equivalence of third-country oversight and details how to handle intermediate holding companies and affiliated entities within the group structure.
Share