The rule in plain words
SCR end of period should be consistent with IR.23.01
What to do if your return fails it
- 01Open the tables 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.05.10 and IR.23.01 as reported.
- 04This 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
Excess capital generation (IR.05.10.01.01)
Row
- R0530SCR at the end of the period
Column
- C0010Most recent reporting period
Impact of long term guarantees measures and transitionals (IR.22.01.01.01)
Row
- R0090Solvency Capital Requirement
Column
- C0010Amount with Long Term Guarantee measures and transitionals
A worked example
With simple numbers.
SCR at the end of the period, Most recent reporting period 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 solo (ARS) return on Bank of England taxonomy 2.2.0. The Bank of England applies it to annual solo (ARS) returns, as a warning.
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.05.10.01.01, r: R0530, c: C0010, z: Z0001} = {t: IR.23.01.01.01, r: R0580, c: C0010, z: Z0001}Other rules on Excess capital generation (IR.05.10)
- Excess capital generation: excess capital start of period = own funds start of period - SCR at start of period (IR_bv2009)Blocking
- Excess capital generation: excess capital end of period = own funds less SCR at end of period (IR_bv2010)Blocking
- Own funds end of period should be consistent with IR.23.01 (IR_bv1936)
- Excess capital generation existing business total = sum of components (IR_bv2078)Blocking
- Excess capital generation new business total = sum of components (IR_bv2079)Blocking
- Excess capital generation underlying capital generation = sum of components (IR_bv2080)Blocking
- Excess capital generation total variances = sum of components (IR_bv2081)Blocking
- Excess capital generation organic capital generation = sum of components (IR_bv2082)Blocking
Every Solvency UK rule on IR.05.10
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.