Regulatory Alerts2020-07-11
Added · Updated
Consolidation of credit institutions in Solvency II reports
Insurance-led mixed financial holding companies must adjust the elimination of intra-group transactions to ensure group solvency calculations reflect binding regulations under Article 329 of the Solvency II Regulation. This approach requires removing the impact of intragroup transactions on the equity of the insurance group only when they directly or indirectly affect equity, with resulting valuation differences explained in the regular supervisory report and solvency financial condition report. Insurance undertakings are required to apply this methodology in their annual and quarterly statements for 2020 Q4.