EIOPA · 2565
Reporting Templates
- Regulation
- Guidelines on loss-absorbing capacity of technical provisions and deferred taxes
- Article
- 207 of the Delegated Regulation 2015/35
- Topic
- Reporting Templates
- Submitted
- 2023-01-27
- Answered
- 2023-06-07
Question
I would kindly ask for clarifications on how the LAC on TP, required in QRT S.25.03 R300/C0100, should be estimated. Is the estimated amount to be calculated pre or post any tax effect?
The regulation is clear regarding QRT S.25.01 for the SM, but for IM there are not clear guidance on that topic also in the QRT Log.
Are insurance undertakings free to decide which approach to use to fill it?
Answer
The loss absorbing capacity of Deferred Taxes (LAC DT) is applied after the loss absorbing capacity of Technical Provisions (LAC TP) under the standard formula as laid down in Article 207 of the Delegated Regulation 2015/35, which implies that the LAC TP is before taxes in the standard formula. Therefore, to enhance comparability, in all cases the internal model structure allows to calculate the amount of LAC TP before taxes without and undue burden, LAC TP before taxes should be reported.
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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