Off-balance sheet items - general and share of reinsurers (including finite reinsurance and SPV's): a value must not be less than another (S.03.01, S.31.01, EIOPA rule BV404)

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.

EIOPA writes it out as separate checks, one for each table or return it covers. Line4 Check runs two of them (BV404-3 and BV404-4), and a failure names the one that failed.

What to do if your return fails it

1. 01Open the tables below and find the cells the rule reads.
2. 02Compare the values in your return. If the first is smaller than it may be, one of them is wrong: check both before you change either.
3. 03EIOPA allows a small rounding difference, worked out from the decimals each value is reported with.
4. 04It runs only when your filing indicators mark S.03.01 and S.31.01 as reported.
5. 05This is a blocking check. A return that fails it is normally rejected, so fix it before you submit.

The cells it reads

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 group (ARG), annual branch (ARB), annual solo (ARS), annual ECB solo (AES) and annual ECB branch (AEB) returns, as a blocking check.

EIOPA’s own words and formula

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

Sum of ‘Assets pledged by reinsurers in template S.03.01 - Off-Balance sheet items - general’ must be equal or higher to sum of ‘Assets pledged by reinsurers’ reported in S.31.01 - Share of reinsurers [including Finite Reinsurance and SPV's].

Other rules on Off-balance sheet items - general (S.03.01)

Every Solvency II rule on S.03.01

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.