French Insurance Code
In forceI.-The group solvency of the undertaking referred to in the first paragraph of Article R. 356-8 is calculated on the basis of consolidated data.
The group solvency is equal to the difference between the own funds eligible to cover the Solvency Capital Requirement, calculated on the basis of consolidated data, and the Solvency Capital Requirement at group level, calculated on the basis of consolidated data.
The rules laid down in Section 3 of Chapter I and in Section 1 of Chapter II of this Title shall apply to the calculation of the own funds eligible to cover the Solvency Capital Requirement and of the Solvency Capital Requirement at group level on the basis of consolidated data.
The classification at group level of own-fund items of related undertakings shall be carried out in accordance with the arrangements laid down in Article 331 of Commission Delegated Regulation (EU) No 2015/35 of 10 October 2014.
Where an own-fund item originates from a related undertaking in a third country, the participating undertaking shall classify the own-fund item in accordance with the criteria laid down in Article 332 of the same Regulation.
Where an own-fund item originates from an insurance group company, a group mutual insurance association, a social protection group company, an intermediary insurance group company, an intermediary group mutual insurance association, an intermediary social protection group company or the subsidiary of an ancillary services undertaking, the participating undertaking shall classify the own-fund item in accordance with the criteria laid down in Article 333 of the same Regulation.
The classification of the own funds items of undertakings whose business is non-regulated financial activities and of related undertakings is established in accordance with Article 334 of the same Regulation.
The consolidated data to be taken into account for the calculation of group solvency are set out in Article 335 of the same regulation.
II - The Solvency Capital Requirement at Group level based on consolidated data is calculated using the standard formula or an approved internal model, in accordance with the general principles set out respectively in Articles L. 352-1, L. 352-2, R. 352-2 to R. 352-12-1 for the standard formula, and in Articles L. 352-1, L. 352-2, R. 352-2 to R. 352-3 and R. 352-13 to R. 352-25 for an internal model.
The group's Solvency Capital Requirement on a consolidated basis is at least equal to the sum of the Minimum Capital Requirement, referred to in Article R. 352-29, of the participating insurance or reinsurance undertaking in the case referred to in the second paragraph of Article L. 356-15 and the proportional share of the Minimum Capital Requirement of the related insurance and reinsurance undertakings.
This minimum is covered by the eligible basic own funds set by IV of Article R. 351-26.
In order to determine whether these eligible own funds enable the Minimum Solvency Capital Requirement of the group to be covered on a consolidated basis, the principles set out in Articles R. 356-11 to R. 356-18 apply.
In the event of failure to cover this minimum consolidated group Solvency Capital Requirement, the undertaking referred to in the first paragraph of Article R. 356-8 and the Autorité de contrôle prudentiel et de résolution in its capacity as group supervisor shall apply the provisions of the first two paragraphs of Article L. 352-8.
The Solvency Capital Requirement at group level on the basis of consolidated data shall be calculated in accordance with the procedures laid down in Article 336 of Commission Delegated Regulation (EU) No 2015/35 of 10 October 2014. Account shall be taken of the foreign exchange risk as provided for in Article 337 of the same Delegated Regulation.
Where a combination of the first method and the second method is decided by the group supervisor pursuant to Article R. 356-10, Article 341 of the same Regulation shall apply.
Where the calculation of the Solvency Capital Requirement at group level on the basis of consolidated data is based on an internal model, the procedure and the applicable criteria are set out in Articles 343 to 346 of the same regulation.
In application of the standard formula and subject to the agreement of the Autorité de contrôle prudentiel et de résolution as group supervisor as provided for in Article 356 of the same Regulation, the Solvency Capital Requirement at group level may be calculated on the basis of parameters specific to the group concerned in accordance with Article 338 of that Regulation.
The application of an internal model for the calculation of the Solvency Capital Requirement at group level on the basis of consolidated data shall be subject to the prior procedure laid down in Article 343 of that Regulation.
Withdrawal of the application shall be subject to the information of the group supervisor and the college of supervisors in accordance with Article 343 of the same Regulation.
The application is examined in accordance with Articles 344 and 345 of the same Regulation.
