The rule in plain words
Total expenditure must be equal to sum of net claims incurred, net expenses incurred, interest payable, taxation and other expenses
The headline gives only the template and the kind of check, because the rule is too long to say in a headline. The plain words above say all of it.
What to do if your return fails it
- 01Open the table below and find the cells the rule reads.
- 02Add up the parts in your return and compare the result with the total.
- 03If they differ, a part is missing, a value sits in the wrong cell, or the total is out of date.
- 04The Bank of England allows a small rounding difference, worked out from the decimals each value is reported with.
- 05It runs only when your filing indicators mark IR.05.03 as reported.
- 06This is a blocking check. A return that fails it is normally rejected, so fix it before you submit.
The cells it reads
Life income and expenditure (IR.05.03.01.01)
Rows
- R0150Net
- R0200Net
- R0280Interest payable
- R0290Taxation
- R0300Other expenses
- R0310Total expenditure
Column
- C0070Total life and health
Which returns it applies to
Line4 Check runs it on annual solo (ARS) and annual third-country branch (ARB) returns on Bank of England taxonomy 2.2.0. The Bank of England applies it to annual third-country branch (ARB) and 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.05.03.01.01, r: R0310, c: C0070} = sum({t: IR.05.03.01.01, r: R0150; R0200; R0280; R0290; R0300, c: C0070})Other rules on Life income and expenditure (IR.05.03)
- Life income and expenditure and life premiums and claims by country: a value must not be less than another (IR_bv2625)
- Life income and expenditure: a total must equal the sum of its parts (IR_bv2622_01)Blocking
- Life income and expenditure and life premiums and claims by country: a value must not be less than another (IR_bv2626)
- Total gross written premiums should be consistent with IR.05.03 (IR_bv2094)
- The sum of written premiums reported in IR.14.01 must equal total gross written premiums reported in IR.05.03 (IR_bv2089)Blocking
- The sum of claims incurred reported in IR.14.01 must equal total gross claims incurred reported in IR.05.03 (IR_bv2076)Blocking
- Life income and expenditure: total = sum of parts (IR_bv2074_01)Blocking
- Life income and expenditure: total = sum of parts (IR_bv2074_02)Blocking
Every Solvency UK rule on IR.05.03
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.