The rule in plain words
The sum of the values in "Reinsurers’ share of Premiums written" (C0200) on template IR.31.01.01, should equal the value in "Total life and health" for "Reinsurers’ share" in template IR.05.03.01 plus the value in all business for "Gross Premiums Written" (R0110C0015 + R0110C0525 + R0110C0545) in template IR.05.04.01 minus all business for "Net written premiums" (R0160C0015 + R0160C0525 + R0160C0545) on IR.05.04.01
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
- 01Open the tables below and find the cells the rule reads.
- 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.
- 03The Bank of England allows a small rounding difference, worked out from the decimals each value is reported with.
- 04It runs only when your filing indicators mark IR.05.03, IR.05.04 and IR.31.01 as reported.
- 05This is a blocking check. A return that fails it is normally rejected, so fix it before you submit.
The cells it reads
Life income and expenditure (IR.05.03.01.01)
Row
- R0040Reinsurers' share
Column
- C0070Total life and health
Non-life income and expenditure: non-life income, expenditure and business model analysis: reporting period (IR.05.04.01.01)
Rows
- R0110Gross written premiums
- R0160Net written premiums
Columns
- C0015All non-life business (ie excluding annuities stemming from accepted insurance and reinsurance contracts)
- C0525Annuities stemming from non-life insurance contracts
- C0545Annuities stemming from non-life accepted reinsurance contracts
Outwards reinsurance balance sheet exposures (IR.31.01.01.01)
Column
- C0200The reinsurer’s share of premiums written
Which returns it applies to
Line4 Check runs it on annual solo (ARS) and annual third-country branch (ARB) returns on Bank of England taxonomy 2.2.0. The Bank of England applies it to annual third-country branch (ARB) and annual solo (ARS) returns, as a blocking check.
The Bank’s own words and formula
The plain words above are the Bank of England’s own, word for word, from its list of validations.
Show the formulaShowHide
The Bank of England's formula. Cells are written as {t: table, r: row, c: column}.
if count({t: IR.31.01.01.01, c: C0200, z: Z0001}) > 0 and (count({t: IR.05.03.01.01, r: R0040, c: C0070}) > 0 or count({t: IR.05.04.01.01, r: R0110, c: C0015; C0525; C0545}) > 0 or count({t: IR.05.04.01.01, r: R0160, c: C0015; C0525; C0545}) > 0) then sum({t: IR.31.01.01.01, c: C0200, z: Z0001}) = {t: IR.05.03.01.01, r: R0040, c: C0070} + sum({t: IR.05.04.01.01, r: R0110, c: C0015; C0525; C0545}) - sum({t: IR.05.04.01.01, r: R0160, c: C0015; C0525; C0545}) else true()Other rules on Life income and expenditure (IR.05.03)
- Premiums written: net = gross - reinsurer's share (IR_bv2000)Blocking
- Net = gross - reinsurer's share (IR_bv2001)Blocking
- Expenses incurred: net = gross - reinsurer's share (IR_bv2002)Blocking
- Premiums written: net = gross - reinsurer's share (IR_bv2003)Blocking
- Life income and expenditure: net = gross - reinsurer’s share (IR_bv2005)Blocking
- Expenses incurred: net = gross - reinsurer's share (IR_bv2007)Blocking
- Life income and expenditure: premiums written: gross = gross direct business + gross reinsurance accepted (IR_bv2070_01)Blocking
- Life income and expenditure: gross = gross direct business + gross reinsurance accepted (IR_bv2070_02)Blocking
Every Solvency UK rule on IR.05.03
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.