The rule in plain words
Excess capital end of period = own funds less SCR at end of period
This is a blocking check. A return that fails it is normally rejected, so fix it before you submit. It runs only when your filing indicators mark IR.05.10 as reported.
The cells it reads
Excess capital generation (IR.05.10.01.01)
Rows
- R0510Own Funds - at the end of the period
- R0530SCR at the end of the period
- R0550Excess capital - at the end of the period
Columns
- C0010Most recent reporting period
- C0020Plan year 1
- C0030Plan year 2
- C0040Plan year 3
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 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.05.10.01.01, r: R0550, z: Z0001} = {t: IR.05.10.01.01, r: R0510, z: Z0001} - {t: IR.05.10.01.01, r: R0530, 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
- SCR end of period should be consistent with IR.23.01 (IR_bv1999)
- 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
- Excess capital generation management actions, assumption and model changes = sum of components (IR_bv2083)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.