EIOPA · 1244
1244
- Regulation
- (EU) No 2015/2450 - templates for the submission of information to the supervisory authorities
- Submitted
- 2018-10-09
- Answered
- 2019-10-10
Question
Suppose one insurance group has company A and B, A reinsured one participating business to B. So B gave the discretionary benefit to A, then A gave discretionary benefit to its policyholders.
In this case, should A include this discretionary benefit in the S.40 as gross amount in its LoB "Insurance with profit participation"? Should B include this business into its LoB "Accepted Reinsurance - Insurance with profit participation"?
If both answers are yes, there will be a double accounting for the same business from one whole group level. Is that allowed?
Answer
For a group that reports for FS purposes, information should be provided on a group (consolidated) basis. Please note that according to Guideline 1, individual insurance undertakings which belong to an insurance group that is reporting according to these Guidelines should not report individually.
This means that in this case, A and B would not be expected to report S.40 individually as they belong to the same group and this group is reporting for financial stability purposes.
This Q&A is published by European Insurance and Occupational Pensions Authority and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.
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