Instruction No. 2023-I-14 of October 12, 2023, repealing and replacing Instruction No. 2016-I-04 of January 14, 2016, regarding information to be communicated for financial stability purposes (Insurance Sector)

PRUDENTIAL CONTROL AND RESOLUTION AUTHORITY

Instruction No. 2023-I-14 repealing and replacing Instruction No. 2016-I-04 of January 14, 2016 regarding information to be communicated for financial stability purposes (Insurance Sector) modified by Instruction No. 2021-I-24 of December 16, 2021

The Prudential Control and Resolution Authority, Having regard to the Monetary and Financial Code, particularly Article L. 612-24; Having regard to the Insurance Code, particularly Articles L. 300-1, L. 310-3-1, L. 351-1, L. 355-1, L. 356-1, L. 356-2 and L. 356-21; Having regard to the Mutual Code, particularly Article L. 211-10; Having regard to the Social Security Code, particularly Article L. 931-6; Having regard to EIOPA Guidelines 15/107 on information to be communicated for financial stability purposes; Having regard to EIOPA Guidelines 22/198 entitled "Erratum: Guidelines on information to be communicated for financial stability purposes"; Having regard to Commission Implementing Regulation (EU) No 2023/894 of April 4, 2023 defining, for the application of Directive 2009/138/EC of the European Parliament and of the Council, implementing technical standards concerning the models to be used for the communication, by insurance and reinsurance undertakings to their supervisory authorities, of information necessary for their supervision, and repealing Implementing Regulation (EU) No 2015/2450; Having regard to Instruction No. 2023-I-09 repealing and replacing Instruction No. 2022-I-13 of July 8, 2022 regarding the transmission to the Prudential Control and Resolution Authority of prudential documents by insurance and reinsurance undertakings subject to the so-called "Solvency II" regime; Having regard to the opinion of the Prudential Affairs Advisory Commission of October 10, 2023, DECIDES

Article 1: The following are subject to this Instruction:

• The groups referred to in point 5 of Article L. 356-1 of the Insurance Code and subject to group supervision in application of the second and third paragraphs of Article L. 356-2 of the same Code (hereinafter "groups") whose total assets, evaluated in accordance with Article L. 351-1 of the Insurance Code (hereinafter "Solvency II assets"), exceed 13 billion euros at the close of the previous financial year or 12 billion euros during two consecutive financial years;
• The entities subject to the so-called "Solvency II" regime referred to in Articles L. 310-3-1 of the Insurance Code, L. 211-10 of the Mutual Code and L. 931-6 of the Social Security Code, which do not belong to a group communicating information under the preceding paragraph in France or in another member state of the European Economic Area (hereinafter "solo entities") and whose total "Solvency II" assets at the end of the 2014 financial year in accordance with the accounting rules applicable at that date exceed 13 billion euros at the close of the financial year or 12 billion euros during two consecutive financial years;
• The branches of undertakings referred to in Article L. 310-3-1, 4° of the Insurance Code and operating on the territory of the French Republic within the meaning of I a) of Article L. 300-1 of the Insurance Code, which do not belong to a group communicating information under the first paragraph in France or in another member state of the European Economic Area (hereinafter "solo entities") and whose total Solvency II assets exceed 13 billion euros at the close of the financial year or 12 billion euros during two consecutive financial years.

The submission obligations defined by this Instruction take effect from the third quarter of the financial year following the breach of the thresholds.

Article 2: The following cease to be subject to this Instruction, according to the procedures described below:

• Solo entities and groups whose Solvency II assets are less than 11 billion euros at the end of an annual financial year will no longer need to communicate the information provided for by this Instruction from the first quarter of the following annual financial year;
• Solo entities and groups whose Solvency II assets are between 11 and 12 billion euros at the end of two consecutive annual financial years will no longer need to communicate the information provided for by this Instruction from the first quarter of the annual financial year following these two consecutive years.

Article 3 Parent and participating undertakings, referred to in points 1° and 3° of Article L. 356-1 of the Insurance Code, of groups subject to this Instruction in accordance with Article 1 are required to communicate data to the Prudential Control and Resolution Authority at the group level.

Solo entities subject to this Instruction in accordance with Article 1 are required to communicate data to the Prudential Control and Resolution Authority at the entity level.

The parent and participating undertakings and solo entities mentioned in the preceding paragraphs are designated hereinafter as "reporting entities".

Article 4: Reporting entities communicate the information provided for by this Instruction according to the procedures defined in Articles 2 and 4 of Instruction No. 2023-I-09 repealing and replacing Instruction No. 2022-I-13 of July 8, 2022 regarding the transmission to the Prudential Control and Resolution Authority of prudential documents by insurance and reinsurance undertakings subject to the so-called "Solvency II" regime.

Article 5: Reporting entities must ensure that the data communicated reflect the best assessment of the financial and operational situation of the entity and are based on the most up-to-date information available to them, without this constituting a disproportionate burden for the entity.

Taking into account the submission deadlines mentioned in Article 8, they must strive to ensure that, to their knowledge, the data do not contain any error or omission that could lead to a prudential assessment significantly different from that of the entity.

They must strive to improve working procedures to reduce over time the existing gaps between the communication of information in accordance with this Instruction and the regular communication of information provided for in Articles L. 355-1 and L. 356-21 of the Insurance Code.

Article 6: Reporting entities must ensure that the quarterly information on the Solvency Capital Requirement ("SCR") provided for by this Instruction provides a good approximation of the actual SCR level. Within the framework of the simplifications used in this quarterly calculation, the information transmitted must reflect the best estimate of the financial and operational situation of the reporting entity.

Given its volatile nature, reporting entities must strive to calculate as best as possible all the components of the "market risk" module of the SCR to communicate them quarterly. The other modules of the SCR may be filled in by extrapolation of annual figures.

Article 7: The data are submitted by reporting entities according to the following models, detailed in the annex to EIOPA Guidelines 15/107 on information to be communicated for financial stability purposes, supplemented by subsequent modifying guidelines and their annexes, according to the instructions provided by the European authority, and according to the frequency indicated below:

1. For group heads, at group level:

• Semi-annually, models S.14.04.11, S.14.05.11, S.38.01.11, S.39.01.11
• Quarterly, models S.01.01.13, S.01.02.04, S.02.01.01, S.05.01.13, S.06.02.04, S.23.01.13, S.25.04.13, S.41.01.11

2. For solo entities, on an individual basis:

• Semi-annually, models S.14.04.11, S.14.05.11, S.38.01.11, S.39.01.11
• Quarterly, models S.01.01.11, S.01.02.11, S.25.04.11, S.41.01.11

The methodological procedures relating to this data are determined by the General Secretariat of the Prudential Control and Resolution Authority.

Article 8: Instruction No. 2016-I-04 of January 14, 2016 regarding information to be communicated for financial stability purposes (Insurance Sector), modified by Instruction No. 2021-I-24 of December 16, 2021, is repealed and replaced by this Instruction. References to the repealed Instruction No. 2016-I-04 appearing in other Instructions shall be understood as references to this Instruction.

Article 9: This Instruction enters into force the day following its publication. The modifications made to the previous provisions take effect as of the collections closed on December 31, 2023.

Paris, October 12, 2023 For the Insurance Sector Sub-Collegium The President, Jean-Paul FAUGÈRE