French Insurance Code
In forceI.-Without prejudice to Articles L. 352-1 and L. 352-5, insurance undertakings undertaking both the risks referred to in 1° and 2° of Article L. 310-1 calculate:
a) A notional amount of the life Minimum Capital Requirement, in respect of their life insurance or reinsurance activities, calculated as if the undertaking concerned carried on only those activities; and
b) A notional amount of the non-life Minimum Capital Requirement, in respect of their non-life insurance or reinsurance activities, calculated as if the undertaking concerned carried on only those activities.
These notional amounts shall be calculated in accordance with Article 252 of Commission Delegated Regulation (EU) No 2015/35 of 10 October 2014, subject to the cases of application provided for in Article 253 of the same Regulation.
II.-As a minimum, the insurance undertakings referred to in I of this Article shall cover the following requirements with an equivalent amount of eligible basic own-fund items:
a) The notional amount of the life Minimum Capital Requirement, for life business;
b) The notional amount of the non-life Minimum Capital Requirement, for non-life business.
The minimum financial obligations referred to in the preceding paragraphs, relating to life insurance and non-life insurance activities, may not be borne by the other activity.
Insurance undertakings shall draw up a document in which the eligible basic own-fund items covering each notional amount of the minimum capital requirement referred to in I are clearly identified in accordance with Article R. 351-26.
If the amount of eligible basic own-fund items allocated to one of the activities is insufficient to cover the minimum financial obligations mentioned in the first paragraph, insurance undertakings may, unless the Autorité de contrôle prudentiel et de résolution objects, use the explicit eligible own-fund items still available for one or other activity.
Where this transfer does not enable the insurance undertaking to cover its minimum financial obligations, the Autorité de contrôle prudentiel et de résolution shall apply the measures provided for in Article L. 352-8 to the loss-making activity, regardless of the results obtained in the other activity.
As long as the minimum financial obligations referred to in this II are met, and subject to informing the Autorité de contrôle prudentiel et de résolution, the undertaking may use the explicit elements of eligible own funds still available for either activity to cover the Solvency Capital Requirement referred to in Article L. 352-1.
