The rule in plain words
Best estimate minus recoverables = gross best estimate minus recoverables after the adjustment
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 IRR.12.01 as reported.
The cells it reads
Life technical provisions (IRR.12.01.01.01)
Rows
- R0030Gross Best Estimate
- R0080Total Recoverables from reinsurance/SPV and Finite Re after the adjustment for expected losses due to counterparty default
- R0090Best estimate minus recoverables from reinsurance/SPV and Finite Re
Columns
- C0010Insurance with profit participation
- C0020Index-linked and unit-linked insurance
- C0030Life annuities
- C0040Non-life annuities
- C0050Other life insurance
- C0060Health insurance
- C0070Total life and health
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: IRR.12.01.01.01, r: R0090, z: Z0001} = {t: IRR.12.01.01.01, r: R0030, z: Z0001} - {t: IRR.12.01.01.01, r: R0080, z: Z0001}Other rules on Life technical provisions (IRR.12.01)
- Life technical provisions: technical provisions = gross best estimate + risk margin - TMTP (IR_bv0258_03)Blocking
- Life technical provisions: gross best estimate = sum of direct business and reinsurance accepted (IR_bv0256_03)Blocking
- Life technical provisions: total = sum of parts (IR_bv0255_02)Blocking
Every Solvency UK rule on IRR.12.01
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.