The rule in plain words
SCR = sum of notional SCRs (SF firms)
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.01.02, IR.25.04 and IRR.25.04 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
Solvency capital requirement (IRR.25.04.01.01)
Row
- R0480Solvency capital requirement including capital add-on
Column
- C0010c
Basic information - general (IR.01.02.01.01)
Row
- R0130Method of Calculation of the SCR
Column
- C0010c
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
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}.
if ({t: IR.01.02.01.01, r: R0130, c: C0010} = $[s2c_AP:x3]) then {t: IR.25.04.01.01, r: R0480, c: C0010} = sum({t: IRR.25.04.01.01, r: R0480, c: C0010, z: Z0001}) else true()Other rules on Solvency capital requirement (IRR.25.04)
- Solvency capital requirement: SCR including CAO = SCR including undisclosed CAO + disclosed CAO components (IR_bv2049_03)Blocking
- SCR excluding capital add-on (PIM and IM firms) = sum of IR.25.05 components + diversification between risk modules (IR_bv2048_03-01)Blocking
- SCR excluding capital add-on (PIM and IM firms) = sum of IR.25.05 components + diversification between risk modules (IR_bv2048_03-02)Blocking
- Solvency capital requirement: SCR excluding CAO (SF firms) = total after diversification + LACTP + LACDT + other adjustments (IR_bv2047_03)Blocking
- Solvency capital requirement: total after diversification = total before diversification + diversification (IR_bv2046_03)Blocking
- Solvency capital requirement: total before diversification between risk modules = sum of risk modules (IR_bv2045_03)Blocking
- Solvency capital requirement: operational and other risks = sum of parts (IR_bv2044_03)Blocking
- Solvency capital requirement: non-life underwriting risk = sum of parts (IR_bv2043_03)Blocking
Every Solvency UK rule on IRR.25.04
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.
