The rule in plain words
Technical provisions - life = best estimate
What to do if your return fails it
- 01Open the table below and find the cells the rule reads.
- 02The two values must be the same. Find which of the two is right, and correct the other one.
- 03It runs only when your filing indicators mark IR.02.01 as reported.
- 04This is a blocking check. A return that fails it is normally rejected, so fix it before you submit.
The cells it reads
Balance sheet (IR.02.01.07.01)
Rows
- R0515Technical provisions - life
- R0546Best estimate - life
Column
- C0010Solvency II value
A worked example
With simple numbers.
Technical provisions - life must then be 1,200.
A file that reports 1,200 passes. One that reports 1,300 fails, by 100.
The numbers are illustrative.
Which returns it applies to
Line4 Check runs it on annual third-country branch (ARB) return on Bank of England taxonomy 2.2.0. The Bank of England applies it to annual third-country branch (ARB) 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}.
{t: IR.02.01.07.01, r: R0515, c: C0010} = {t: IR.02.01.07.01, r: R0546, c: C0010}Other rules on Balance sheet (IR.02.01)
- Balance sheet: technical provisions - non-life = best estimate (IR_bv0265_01)Blocking
- Reinsurance recoverables life linked must be consistent between IR.02.01 and IR.12.01 (IR_bv0264_01)Blocking
- Reinsurance recoverables life linked must be consistent between IR.02.01 and IR.12.01 (IR_bv0264_02)Blocking
- Reinsurance recoverables life linked must be consistent between IR.02.01 and IR.12.01 (IR_bv0264_06)Blocking
- Balance sheet: transitional (TMTP) >=0 (IR_bv0263_01)Blocking
- Balance sheet: transitional (TMTP) >=0 (IR_bv0263_02)Blocking
- Reinsurance recoverables life excl. linked must be consistent between IR.02.01 and IR.12.01 (IR_bv0261_01)Blocking
- Reinsurance recoverables life excl. linked must be consistent between IR.02.01 and IR.12.01 (IR_bv0261_02)Blocking
Every Solvency UK rule on IR.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.