Minimum capital requirement - only life or only non-life insurance or reinsurance activity: a total must equal the sum of its parts (S.28.01, EIOPA rule BV915)

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.

What to do if your return fails it

1. 01Open the tables below and find the cells the rule reads.
2. 02Add up the parts in your return and compare the result with the total.
3. 03If they differ, a part is missing, a value sits in the wrong cell, or the total is out of date.
4. 04EIOPA allows a small rounding difference, worked out from the decimals each value is reported with.
5. 05It runs only when your filing indicators mark S.28.01 as reported.
6. 06This 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

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 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:

The overall Combined MCR reported in S.28.01 - Minimum Capital Requirement - Only life or only non-life insurance or reinsurance activity must be equal to sum of the "Linear formula component for non-life insurance and reinsurance obligations" and the "Linear formula component for life insurance and reinsurance obligations".

Other rules on Minimum capital requirement - only life or only non-life insurance or reinsurance activity (S.28.01)

Every Solvency II rule on S.28.01

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.