The rule in plain words
Value of "Adjustment for expected losses due to counterparty default" should be negative
What to do if your return fails it
- 01Open the table below and find the cells the rule reads.
- 02Compare the values in your return. If the first is bigger than it may be, one of them is wrong: check both before you change either.
- 03It runs only when your filing indicators mark S.31.01 as reported.
- 04This 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
Share of reinsurers (including finite reinsurance and SPV's): share of reinsurers (S.31.01.01.01)
Column
- C0090Adjustment for expected losses due to counterparty default
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
The plain words above are EIOPA’s own, word for word, from its list of validations.
Show the formulaShowHide
EIOPA's formula. Cells are written as {t: table, r: row, c: column}.
{t: S.31.01.01.01, c: C0090, z: Z0001} < 0Other rules on Share of reinsurers (including finite reinsurance and SPV's) (S.31.01)
- Value of "Adjustment for expected losses due to counterparty default" should be negative (BV1615)
- Item "Reinsurance recoverables: Total reinsurance recoverables" should always be provided (BV1616)
- Items "Reinsurance recoverables: Total reinsurance recoverables" and "Legal name of reinsured undertaking" should always be provided (BV1617)
- Items "Legal name reinsurer" and "Type of reinsurer" should always be provided (BV1618)
- Items "Legal name reinsurer" and "Type of reinsurer" should always be provided (BV1619)
- There is at least one reinsurer reported in Table 1 of S.31.01 that is not reported in Table 2 of S.31.01 (BV1291)Blocking
- There is at least one reinsurer reported in Table 1 of S.31.01 that is not reported in Table 2 of S.31.01 (BV1290)Blocking
- Country of residency should be reported in Share of reinsurers [including Finite Reinsurance and SPV's] (BV935)
Every Solvency II rule on S.31.01
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.