Balance sheet and overall calculation of the transitional on technical provisions: a value must not be more than another (S.02.01, S.22.05, EIOPA rule BV732)

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 (BV732-2 and BV732-4), 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 bigger 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.02.01 and S.22.05 as reported.
5. 05This 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 annual solo (ARS) and annual branch (ARB) returns on EIOPA taxonomy 2.10.0. EIOPA applies it to annual branch (ARB) and annual solo (ARS) returns, as a warning.

EIOPA’s own words and formula

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

The item "Technical provision after transitional on technical provisions" reported in template S.22.05 - Overall calculation of the transitional on technical provisions should be equal or lower than the sum of the Technical provisions - life, Technical provisions - non-life and technical provisions unit-linked and index-linked reported in template S.02.01 - Balance sheet.

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.