The rule in plain words
The item "Total guarantees received" reported in Share of reinsurers (S.31.01) [including Finite Reinsurance and SPV's] must be equal to the sum of "Assets pledged by reinsurer", "Financial guarantees" and "Cash deposits"
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.
EIOPA writes it out as separate checks, one for each table or return it covers. Line4 Check runs two of them (BV164-1 and BV164-2), and a failure names the one that failed.
What to do if your return fails it
- 01Open the tables below and find the cells the rule reads.
- 02Add up the parts in your return and compare the result with the total.
- 03If they differ, a part is missing, a value sits in the wrong cell, or the total is out of date.
- 04EIOPA allows a small rounding difference, worked out from the decimals each value is reported with.
- 05It runs only when your filing indicators mark S.31.01 as reported.
- 06This is a blocking check. A return that fails it is normally rejected, so fix it before you submit.
The cells it reads
Share of reinsurers (including finite reinsurance and SPV's): share of reinsurers (S.31.01.01.01)
Columns
- C0120Assets pledged by reinsurer
- C0130Financial guarantees
- C0140Cash deposits
- C0150Total guarantees received
Share of reinsurers (including finite reinsurance and SPV's): share of reinsurers (S.31.01.04.01)
Columns
- C0120Assets pledged by reinsurer
- C0130Financial guarantees
- C0140Cash deposits
- C0150Total guarantees received
Which returns it applies to
Line4 Check runs it on annual solo (ARS), annual group (ARG) and annual branch (ARB) returns on EIOPA taxonomy 2.10.0. EIOPA applies it to annual branch (ARB), annual solo (ARS), annual ECB solo (AES), annual ECB branch (AEB) and annual group (ARG) returns, as a blocking check.
EIOPA’s own words and formula
In EIOPA’s list of validations, word for word:
The item "Total guarantees received" reported in S.31.01 - Share of reinsurers [including Finite Reinsurance and SPV's] must be equal to the sum of "Assets pledged by reinsurer", "Financial guarantees" and "Cash deposits".
Show the formulaShowHide
EIOPA's formula, for BV164-1. Cells are written as {t: table, r: row, c: column}.
{t: S.31.01.01.01, c: C0150, z: Z0001} = {t: S.31.01.01.01, c: C0120, z: Z0001} + {t: S.31.01.01.01, c: C0130, z: Z0001} + {t: S.31.01.01.01, c: C0140, z: Z0001}BV164-2:
{t: S.31.01.04.01, c: C0150, z: Z0001} = {t: S.31.01.04.01, c: C0120, z: Z0001} + {t: S.31.01.04.01, c: C0130, z: Z0001} + {t: S.31.01.04.01, c: C0140, z: Z0001}Other rules on Share of reinsurers (including finite reinsurance and SPV's) (S.31.01)
- Share of reinsurers (including finite reinsurance and SPV's): double, trailing or leading whitespaces are not allowed (TV49)Blocking
- The item "Country of residency" should be reported in Share of reinsurers [including Finite Reinsurance and SPV's] (BV934)
- Country of residency should be reported in Share of reinsurers [including Finite Reinsurance and SPV's] (BV935)
- 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
- 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
- Value of "Adjustment for expected losses due to counterparty default" should be negative (BV1614)
- 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)
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.