Solvency capital requirement - for undertakings on standard formula and solvency capital requirement - for undertakings using an internal model (partial or full): a total must equal the sum of its parts (S.25.01, S.25.05, EIOPA rule BV1086)

The rule in plain words

The headline gives only the template and the kind of check, because the rule is too long to say in a headline. The plain words above say all of it.

What to do if your return fails it

1. 01Open the tables below and find the cells the rule reads.
2. 02Add up the parts in your return and compare the result with the total.
3. 03If they differ, a part is missing, a value sits in the wrong cell, or the total is out of date.
4. 04EIOPA allows a small rounding difference, worked out from the decimals each value is reported with.
5. 05It runs only when your filing indicators mark S.25.01 as reported.
6. 06This is a warning. It does not stop the return on its own, but your supervisor may ask you to explain it.

The cells it reads

Which returns it applies to

Line4 Check runs it on annual solo (ARS) and annual branch (ARB) returns on EIOPA taxonomy 2.10.0. EIOPA applies it to annual ECB solo (AES), annual ECB branch (AEB), annual solo (ARS) and annual branch (ARB) returns, as a warning.

EIOPA’s own words and formula

In EIOPA’s list of validations, word for word:

The item "DTA" reported in S.25.01 - Solvency Capital Requirement - for undertakings on Standard Formula, should be equal to sum of items "DTA carry forward" and "DTA due to deductible temporary differences".

Other rules on Solvency capital requirement - for undertakings on standard formula (S.25.01)

Every Solvency II rule on S.25.01

Checks like this one, run at the point of submission, are the first step to real-time supervision. Line4 builds SupTech software for financial regulators that runs checks like these as each return arrives.