Section 3: Regulatory capital requirement for groups.

Articles in this section · 34

R356-8R356-9R356-10R356-11R356-12R356-13R356-14R356-15R356-16R356-17R356-18R356-19R356-20R356-20-1R356-20-2R356-20-3R356-21R356-22R356-23R356-24R356-25R356-25-1R356-25-2R356-26R356-26-1R356-27R356-27-1R356-28R356-28-1R356-28-2R356-29R356-30R356-30-1R356-31

Article R356-12

French Insurance CodeIn force
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Updated 7 Nov 2023

I.-The double use of own funds eligible to cover the Solvency Capital Requirement of the various insurance or reinsurance undertakings taken into account in the calculation is prohibited.

To this end, when calculating the solvency of the group, if the methods described in articles R. 356-19 to R. 356-22 do not so provide, the following amounts are excluded:

a) The value of any assets of the undertaking mentioned in the first paragraph of article R. 356-8 which corresponds to the financing of eligible own funds covering the Solvency Capital Requirement of one of its related insurance or reinsurance undertakings;

b) The value of any asset of an insurance or reinsurance undertaking related to the undertaking mentioned in the first paragraph of Article R. 356-8 which corresponds to the financing of eligible own funds covering the Solvency Capital Requirement of the latter undertaking;

c) The value of any asset of an insurance or reinsurance undertaking linked to the undertaking mentioned in the first paragraph of Article R. 356-8 which corresponds to the financing of eligible own funds covering the Solvency Capital Requirement of any other insurance or reinsurance undertaking linked to the undertaking mentioned in the first paragraph of Article R. 356-8.

II.Without prejudice to I, the following may only be taken into account in the calculation insofar as they are eligible to cover the Solvency Capital Requirement of the related undertaking concerned:

a) Surplus funds covered by the second paragraph of Article R. 351-21, of a related life insurance or reinsurance undertaking of the undertaking mentioned in the first paragraph of Article R. 356-8 for which the group solvency is calculated;

b) The subscribed but unpaid portions of the capital of a related insurance or reinsurance undertaking of the undertaking mentioned in the first paragraph of Article R. 356-8 for which the group solvency is calculated.

However, the following elements must in all cases be excluded from the calculation:

i) Subscribed but unpaid portions of the capital which represent a potential obligation on the part of the undertaking referred to in the first paragraph of Article R. 356-8;

ii) Subscribed but unpaid portions of the capital of the undertaking referred to in the first paragraph of Article R. 356-8 which represent a potential obligation incumbent on a related insurance or reinsurance undertaking;

iii) The subscribed but unpaid portions of the capital of a related insurance or reinsurance undertaking which represent a potential obligation incumbent on another related insurance or reinsurance undertaking of the same undertaking mentioned in the first paragraph of Article R. 356-8.

III - Where the supervisory authorities consider that certain own funds eligible to cover the Solvency Capital Requirement of a related insurance undertaking or a related reinsurance undertaking, other than those mentioned in II, cannot effectively be made available to cover the Solvency Capital Requirement of the participating insurance undertaking or the participating reinsurance undertaking for which the group solvency is calculated, those own funds may be included in the calculation only in so far as they are eligible to cover the Solvency Capital Requirement of the related undertaking.

IV-The sum of the own funds referred to in II and III may not exceed the Solvency Capital Requirement of the related insurance undertaking or the related reinsurance undertaking.

V.-The eligible own funds of a related insurance undertaking or a related reinsurance undertaking of the undertaking mentioned in the first paragraph of Article R. 356-8 for which the group solvency is calculated, where they are subject to the prior approval of the supervisory authority of the related undertaking in accordance with Article R. 351-20, may only be included in the calculation insofar as they have been duly approved by that authority.

The conditions for the availability at group level of eligible own funds of affiliated undertakings are defined in Article 330 of Commission Delegated Regulation (EU) No 2015/35 of 10 October 2014.

Mariela Petrova

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Mariela Petrova

Mariela Petrova

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