Changes from plenary report to adopted text

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Removed(d) in paragraph 5, the words ‘Directive 2006/48/EC’ are replaced by the words ‘Directive 2013/36/EU’;

Removed(63) the following Article 213a is inserted:

Removed‘Article 213a Use of proportionality measures at the level of the group

Removed1. Groups within the meaning of Article 212 that are subject to group supervision in accordance with Article 213(2), points (a) and (b), shall be classified as low risk profile groups by their group supervisor, following the procedure set out in paragraph 2 of this Article where they meet all the following criteria at the level of the group for the two financial years directly prior to such classification:

Removed(a) where at least one insurance or reinsurance undertaking in the scope of the group is not a non-life undertaking, all of the following criteria shall be met:

Removed(i) the interest rate risk submodule referred to in Article 105(5), point (a), is not higher than 5 % of the group technical provisions, gross of the amounts recoverable from reinsurance contracts and special purpose vehicles, as referred to in Article 76;

Removed(ii) the return on investments, excluding investments held for insurance obligations with index-linked and unit-linked benefits, is higher than the average guaranteed interest rates;

Removed(iii) the total of the technical provisions of the group defined as gross of the amounts recoverable from reinsurance contracts and special purpose vehicles is not higher than EUR 1 000 000 000;

Removed(b) where at least one insurance or reinsurance undertaking in the scope of the group is not a life undertaking, all of the following criteria shall be met:

Removed(i) the averaged combined ratio net of reinsurance of the last three financial years is less than 100 %

Removed(ii) the annual gross written premium of the group is not higher than EUR 100 000 000;

Removed(iii) the sum of the annual gross written premiums in classes 4 to 7 and classes 14 and 15 of Section A of Annex I is not higher than 30% of total annual gross written premiums of non-life business of the group;

Removed(c) business underwritten by insurance and reinsurance undertakings in the scope of the group which have their head offices in Member States other than the Member State of the group supervisor in aggregate is not higher than 25 % of the total annual gross written premium of the group;

Removed(d) business underwritten by the group in Member States other than the Member State of the group supervisor is not higher than 25 % of its total annual gross written premium;

Removed(e) the gross market risk module referred to in Article 105(5) is not higher than 20 % of total investments;

Removed(f) the reinsurance business accepted of the group does not exceed 50 % of its total gross written premium income of the group;

Removed(fa) the consolidated group Solvency Capital Requirement is complied with and a capital add-on in accordance with Article 232 has not been set.

Removed2. Article 29b shall apply mutatis mutandis at the level of the ultimate parent insurance or reinsurance undertaking, insurance holding company or mixed financial holding company

Removed3. Groups to which group supervision applies in accordance with Article 213(2), points (a) and (b), for less than two years shall take into account only the last financial year when assessing whether they meet the criteria set out in paragraph 1 of this Article.

Removed4. Without prejudice to paragraph 1, groups which use an approved partial or full internal model to calculate their group Solvency Capital Requirement may be classified as low risk profile groups after approval from the group supervisor.

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Removed6. Articles 29c and 29d ▌ shall apply mutatis mutandis.’;

Removed(64) Article 214 is amended as follows:

Removed(a) paragraph 1 is replaced by the following:

Removed‘1. The exercise of group supervision in accordance with Article 213 shall not imply that the supervisory authorities are required to play a supervisory role in relation to the third-country insurance undertaking, the third-country reinsurance undertaking or the mixed-activity insurance holding company taken individually.’;

Removed(b) in paragraph 2, the following subparagraph is inserted after the first subparagraph:

Removed‘When assessing whether an undertaking is of negligible interest with respect to the objectives of group supervision pursuant to the first subparagraph, point (b), the group supervisor shall ensure that all the following conditions are met:

Removed(i) the size of the undertaking, in terms of total assets and of technical provisions, is small in comparison with that of other undertakings of the group and the group as a whole;

Removed(ii) the exclusion of the undertaking from the scope of group supervision would have no material impact on the group solvency;

Removed(iii) the qualitative and quantitative risks, including those stemming from intragroup transactions, that the undertaking poses or may pose to the whole group, are immaterial.’;

Removed(c) the following paragraph 3 is added:

Removed‘3. Where the exclusion of one or more undertakings from the scope of group supervision in accordance with paragraph 2 of this Article would result in a case that would not trigger the application of group supervision under Article 213(2), points (a), (b), and (c), the group supervisor shall consult EIOPA and, where applicable, other supervisory authorities concerned before taking the decision on exclusion. Such decision shall only be taken in exceptional circumstances and shall be duly justified to EIOPA and, where applicable, other supervisory authorities concerned. The group supervisor shall regularly reassess whether its decision remains appropriate. Where that is no longer the case, the group supervisor shall notify EIOPA and, where applicable, other supervisory authorities concerned that it will start exercising group supervision.

RemovedBefore excluding the ultimate parent undertaking from group supervision pursuant to paragraph 2, point (b), the group supervisor shall consult EIOPA, and where applicable, other supervisory authorities concerned, and shall assess the impact of exercising group supervision at the level of an intermediate participating undertaking on the solvency position of the group. In particular, such an exclusion shall not be possible if it would result in a material improvement in the solvency position of the group.’;

Removed(65) Article 220 is amended as follows:

Removed(a) in paragraph 1, the words ‘set out in Articles 221 to 233’ are replaced by the words ‘set out in Articles 221 to 233a’;

Removed(b) in paragraph 2, the second subparagraph is replaced by the following:

Removed‘However, Member States shall allow their supervisory authorities, where they assume the role of group supervisor with regard to a particular group, to decide, after consulting the other supervisory authorities concerned and the group itself, to apply to that group method 2 in accordance with Articles 233 and 234, or, where the exclusive application of method 1 would not be appropriate, a combination of methods 1 and 2 in accordance with Articles 233a and 234.’;

Removed(c) the following paragraph 3 is added:

Removed‘3. Without prejudice to the treatment of undertakings referred to in Article 228(1), supervisory authorities may only decide to apply method 2 pursuant to paragraph 2, second subparagraph, of this Article to insurance and reinsurance undertakings, third-country insurance and reinsurance undertakings, insurance holding companies, mixed financial holding companies, and holding companies of third-country insurance and reinsurance undertakings.’;

Removed(66) in Article 221, the following paragraph 1a is inserted:

Removed‘1a. By way of derogation from paragraph 1 of this Article, for the sole purpose of Article 228, irrespective of whether method 1 or method 2 is used, ‘proportional share’ means the proportion of the subscribed capital that is held, directly or indirectly, by the participating undertaking in the related undertaking.’;

Removed(67) in Article 222, paragraph 4 is replaced by the following:

Removed‘4. The sum of the own funds referred to in paragraphs 2 and 3 shall not exceed the contribution of the related insurance or reinsurance undertaking to the group Solvency Capital Requirement.’;

Removed(68) in Article 226, the following paragraph 3 is added:

Removed‘3. For the purposes of paragraphs 1 and 2, holding companies of third-country insurance and reinsurance undertakings shall also be treated as insurance or reinsurance undertakings.’;

Removed(69) in Article 227(1), first subparagraph, the words ‘and Article 233a’ are inserted after the words ‘Article 233’;

Removed(70) Article 228 is replaced by the following:

Removed‘Article 228 Treatment of specific related undertakings from other financial sectors

Removed1. Irrespective of the method used in accordance with Article 220 of this Directive, for the purpose of calculating the group solvency, the participating insurance or reinsurance undertaking shall take into account the contribution to the group eligible own funds and to the group Solvency Capital Requirement of the following undertakings:

Removed(a) credit institutions or investment firms within the meaning of Article 4(1), point (1) or (2), of Regulation (EU) No 575/2013 ;

Removed(b) UCITS management companies within the meaning of Article 2(1), point (b), of Directive 2009/65/EC and investment companies authorised pursuant to Article 27 of that Directive provided that they have not designated a management company pursuant to that Directive;

Removed(c) alternative investment fund managers within the meaning of Article 4(1), point (b), of Directive 2011/61/EU;

Removed(d) undertakings other than regulated undertakings which carry one or more of the activities referred to in Annex I to Directive 2013/36/EU where those activities constitute a significant part of their overall activity;

Removed(e) institutions for occupational retirement provision within the meaning of Article 6, point (1) of Directive (EU) 2016/2341.

Removed2. The contribution to the group eligible own funds of the related undertakings referred to in paragraph 1 of this Article shall be calculated as the sum of the proportional share of the own funds of each undertaking, where those own funds are calculated as follows:

Removed(a) for each undertaking referred to in paragraph 1, point (a), of this Article in accordance with the relevant sectoral rules, as defined in Article 2, point (7), of Directive 2002/87/EC;

Removed(b) for each related undertaking referred to in paragraph 1, point (b), of this Article in accordance with Article 2(1), point 1, of Directive 2009/65/EC;