Line4

2 min readBlockingBank of England taxonomy 2.2.0Updated 11 November 2026

Non-life income and expenditure: a total must equal the sum of its parts (IR.05.04, Bank of England rule IR_bv3042_01)

A blocking check on the non-life income and expenditure template (IR.05.04), in the annual solo (ARS) and annual third-country branch (ARB) returns.

Check your file for this ruleWhat to do if it fails

The rule in plain words

All business (including annuities stemming from accepted non-life insurance and reinsurance contracts) values should equal to All non-life business (ie excluding annuities stemming from accepted insurance and reinsurance contracts) values plus Annuities stemming from non-life insurance contracts values, and Annuities stemming from non-life accepted reinsurance contracts values for rows R0410;R0620;R0621;R0622;R0700; R0701;R0702;R0730;R0810;R0820;R0830;R0831;R0940;R0950;R0960;R0970;R0985

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

  1. 01Open the table below and find the cells the rule reads.
  2. 02Add up the parts in your return and compare the result with the total.
  3. 03If they differ, a part is missing, a value sits in the wrong cell, or the total is out of date.
  4. 04The Bank of England allows a small rounding difference, worked out from the decimals each value is reported with.
  5. 05It runs only when your filing indicators mark IR.05.04 as reported.
  6. 06This is a blocking check. A return that fails it is normally rejected, so fix it before you submit.

The cells it reads

Non-life income and expenditure: non-life income, expenditure and business model analysis: reporting period (IR.05.04.01.01)

Rows

  • R0410Net earned premiums from business transfers-in
  • R0620Gross claims paid during the period
  • R0621Gross claims paid during the period - insurance (direct)
  • R0622Gross claims paid during the period - accepted reinsurance
  • R0700Net claims paid during the period
  • R0701Net claims paid during the period - insurance (direct)
  • R0702Net claims paid during the period - accepted reinsurance
  • R0730Net (discounted) claims incurred
  • R0810Net (discounted) claims incurred - business transfers-out
  • R0820Allocated loss adjustment expenses (ALAE) incurred - insurance (direct)
  • R0830Allocated loss adjustment expenses (ALAE) paid - insurance (direct)
  • R0831Allocated loss adjustment expenses (ALAE) paid - accepted reinsurance
  • R0940Claims management costs - other than ALAE
  • R0950Acquisition costs - commission
  • R0960Acquisition costs - other
  • R0970Reinsurance commissions and profit participations
  • R0985Acquisition costs, commissions, claims management costs - other than ALAE

Columns

  • C0010All business (including annuities stemming from accepted non-life insurance and reinsurance contracts)
  • C0015All non-life business (ie excluding annuities stemming from accepted insurance and reinsurance contracts)
  • C0525Annuities stemming from non-life insurance contracts
  • C0545Annuities stemming from non-life accepted reinsurance contracts

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 formulaShow

The Bank of England's formula. Cells are written as {t: table, r: row, c: column}.

{t: IR.05.04.01.01, c: C0010} = sum({t: IR.05.04.01.01, c: C0015; C0525; C0545})

Every Solvency UK rule on IR.05.04

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.