The rule in plain words
It is expected that administrative expenses will be recognised, provided that Expenses incurred are also provided
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
- 01Open the table below and find the cells the rule reads.
- 02The check applies only when its first part holds in your return. When it does, the second part must hold too: fix the second part, or correct the first.
- 03It runs only when your filing indicators mark S.05.01 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
Premiums, claims and expenses by line of business: non-life (direct business/accepted proportional reinsurance and accepted non-proportional reinsurance) (S.05.01.01.01)
Rows
- R0550Expenses incurred
- R0700Net
Column
- C0200Total
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 ECB solo (AES), annual group (ARG), 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}.
if not(isNull({t: S.05.01.01.01, r: R0550, c: C0200, z: Z0001})) then {t: S.05.01.01.01, r: R0700, c: C0200, z: Z0001} > 0 else true()Other rules on Premiums, claims and expenses by line of business (S.05.01)
- Premiums, claims and expenses by line of business and non-life obligation analysis: a value must not be less than another (BV2057)
- Premiums, claims and expenses by line of business: a check on its values (BV1190)
- Premiums, claims and expenses by line of business: a value must not be negative (BV1189)
- Premiums, claims and expenses by line of business: a value must not be negative (BV1188)
- Premiums, claims and expenses by line of business: a value must not be negative (BV1187)
- Premiums, claims and expenses by line of business: a check on its values (BV1186)
- Premiums, claims and expenses by line of business: a value must not be negative (BV1185)
- Premiums, claims and expenses by line of business: a value must not be negative (BV1184)
Every Solvency II rule on S.05.01
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.