French Insurance Code
In forceI.-The group solvency of the undertaking referred to in the first paragraph of Article R. 356-8 calculated using the deduction and aggregation method is equal to the difference between:
a) The group's eligible own funds on an aggregated basis, as defined in II of this Article;
b) And the sum of the value of the insurance or reinsurance undertakings linked in the undertaking referred to in the first paragraph of Article R. 356-8 and the group's Solvency Capital Requirement on an aggregated basis as defined in III of this Article. 356-8 and the Group Solvency Capital Requirement on an aggregated basis as defined in III of this article.
II.-The group's eligible own funds on an aggregated basis correspond to the sum of:
a) The own funds eligible to cover the Solvency Capital Requirement of the undertaking mentioned in the first paragraph of Article R. 356-8; and
b) This undertaking's proportional share of the own funds eligible to cover the Solvency Capital Requirement of related insurance or reinsurance undertakings.
III - The group Solvency Capital Requirement on an aggregated basis corresponds to the sum of:
a) The Solvency Capital Requirement of the undertaking referred to in the first paragraph of Article R. 356-8; and
b) The proportional share of the Solvency Capital Requirement of the related insurance or reinsurance undertakings.
IV.Where the holding in related insurance undertakings or related reinsurance undertakings corresponds, wholly or in part, to indirect ownership, the value in the undertaking referred to in the first paragraph of Article R. 356-8 of the related insurance or reinsurance undertakings includes the value of that indirect ownership, taking into account the relevant successive interests, and the items mentioned in b of II, and b of III, include the corresponding proportional shares, respectively, of the own funds eligible to cover the Solvency Capital Requirement of the related insurance or reinsurance undertakings and of the Solvency Capital Requirement of those related undertakings.
V.-Where an undertaking referred to in the first paragraph of Article R. 356-8 and its related undertakings request authorisation to calculate their Solvency Capital Requirement on the basis of an internal model, Articles R. 356-20 to R. 356-20-3 apply.
VI - For the purposes of calculating, in accordance with this Article, the group solvency of an undertaking referred to in the first paragraph of Article R. 356-8 which is a participating undertaking in a non-member country insurance undertaking or a non-member country reinsurance undertaking, that undertaking is treated, for the sole purpose of that calculation, as a related insurance undertaking or a related reinsurance undertaking.
