Impact of long-term guarantees measures and transitionals and solvency capital requirement - for undertakings using an internal model (partial or full): two values must match (S.22.01, S.25.05, EIOPA rule BV872)

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 (BV872-1 and BV872-2), 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 two values must be the same. Find which of the two is right, and correct the other one.
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.23.01 and S.25.05 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

A worked example

The first of its checks, with simple numbers.

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

EIOPA’s own words and formula

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

The SCR reported in template S.23.01 - Own funds must be equal to the SCR reported in template S.25.05 - Solvency Capital Requirement - for undertakings using the standard formula and partial internal model.

Other rules on Impact of long-term guarantees measures and transitionals (S.22.01)

Every Solvency II rule on S.22.01

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.