If the item "Best estimate" reported in Balance sheet is not equal to zero, the item "Risk margin" should be strictly positive (S.02.01, EIOPA rule BV711)

The rule in plain words

EIOPA writes it out as separate checks, one for each table or return it covers. Line4 Check runs two of them (BV711-2 and BV711-6), 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. 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.
3. 03It runs only when your filing indicators mark S.02.01 as reported.
4. 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

Which returns it applies to

Line4 Check runs it on quarterly solo (QRS), quarterly group (QRG) and quarterly branch (QRB) returns on EIOPA taxonomy 2.10.0. EIOPA applies it to quarterly branch (QRB), quarterly group (QRG) and quarterly solo (QRS) returns, as a warning.

EIOPA’s own words and formula

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

If the item "Best estimate" reported in S.02.01 - Balance sheet is not equal to zero, the item "Risk margin" should be strictly positive.

Other rules on Balance sheet (S.02.01)

Every Solvency II rule on S.02.01

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.