Changes from report parliamentary committee draft to plenary report

Added(b) paragraph 1a is replaced by the following:

RemovedDirective 2009/138/EC

Added‘1a. The part of the solvency and financial condition report consisting of information addressed to policyholders and beneficiaries shall contain the following information:

RemovedArticle 1 – paragraph 1 – point 63, Article 213a – paragraph 6: 6. Articles 29c and 29d shall apply mutatis mutandis.;

Added(a) a description of the business and the performance of the undertaking; and

RemovedReflects suggested deletion of 29e.

Added(b) a brief description of the capital management and the risk profile of the undertaking, including in relation to sustainability risks and the principal adverse impacts of the insurance or reinsurance undertaking on sustainability factors.’;

RemovedDirective 2009/138/EC

Added(c) the following paragraphs 1b and 1c are inserted:

RemovedArticle 1 – paragraph 1 – point 64 – point a, Article 214 – paragraph 1: deleted / (deleted)

Added‘1b. The part of the solvency and financial condition report consisting of information addressed to other market participants shall contain the following information, either in full or by way of references to equivalent information, both in nature and scope, disclosed publicly under other legal or regulatory requirements:

RemovedText currently in the Directive is clearer and should be kept. Proposed wording introduces ambiguity as to whether supervisors may directly supervise non-insurance holding companies.

Added(a) a description of the system of governance;

RemovedDirective 2009/138/EC

Added(b) a description, separately for assets, technical provisions, and other liabilities, of the bases and methods used for their valuation;

RemovedArticle 1 – paragraph 1 – point 70, Article 228 – paragraph 1 – point e: deleted

Added(c) a description of the capital management and the risk profile, including at least the following:

RemovedReflects the rapporteur's suggestion not to adapt the definition of regulated entity.

Added(i) the structure and amount of own funds, and their quality;

RemovedDirective 2009/138/EC

Added(ii) the amounts of the Solvency Capital Requirement and of the Minimum Capital Requirement;

RemovedArticle 1 – paragraph 1 – point 70, Article 228 – paragraph 2 – subparagraph 1 – point e: deleted

Added(iii) for insurance and reinsurance undertakings relevant for the financial stability of the financial systems in the Union, information on risk sensitivity;

RemovedDirective 2009/138/EC

Added(iv) the option set out in Article 304 used for the calculation of the Solvency Capital Requirement;

RemovedArticle 1 – paragraph 1 – point 70, Article 228 – paragraph 3 – point g: deleted

Added(v) information allowing a proper understanding of the main differences between the underlying assumptions of the standard formula and those of any internal model used by the undertaking for the calculation of its Solvency Capital Requirement;

RemovedDirective 2009/138/EC

Added(vi) the amount of any non-compliance with the Minimum Capital Requirement or any significant non-compliance with the Solvency Capital Requirement during the reporting period, even if subsequently resolved, with an explanation of its origin and consequences as well as any remedial measures taken.

RemovedArticle 1 – paragraph 1 – point 80, Title III – Chapter IIA: deleted / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted)

Added(ca) where the undertaking conducts a climate change scenario analysis as described in Article 45a, a description of the latest results of it;

RemovedIf liquidity risk management is done properly on solo level, there is little added value of liquidity management on group level. Hence, the Article should be deleted.

Added(cb) a description of the implementation of the plan described in Article 44(2b), including the targets and milestones defined in the undertaking’s plan.

RemovedDirective 2009/138/EC

Added1c. Where the matching adjustment referred to in Article 77b is applied, the description referred to in paragraph 1b, points (b), (c)(i) and (c)(ii), of this Article shall also describe the matching adjustment and the portfolio of obligations and assigned assets to which the matching adjustment is applied, as well as a quantification of the impact of a change to zero of the matching adjustment on the undertaking’s financial position.

RemovedArticle 1 – paragraph 1 – point 83, Article 256: deleted / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted) / (deleted)

AddedThe description referred to in paragraph 1b, points (b), (c)(i) and (c) (ii), of this Article shall also contain a statement on whether the volatility adjustment referred to in Article 77d is used by the undertaking and, where the volatility adjustment is used, it shall disclose the following information:

RemovedReflects the rapporteur’s suggestions in relation to Article 51.

Added(a) a quantification of the impact of a change to zero of the volatility adjustment on the undertaking's financial position;

RemovedDirective 2009/138/EC

Added(b) for each relevant currency or, as applicable, country, the volatility adjustment calculated in accordance with Article 77d and the corresponding best estimates for insurance or reinsurance obligations.’;

RemovedArticle 1 – paragraph 1 – point 84 – introductory part, Article 256c: (84) the following Article 256b is inserted:

Added(d) paragraph 2 is replaced by the following:

RemovedDirective 2009/138/EC

Added‘2. The description referred to in paragraph 1b, point (c)(i), shall include an analysis of any significant changes as compared to the previous reporting period and an explanation of any major differences in relation to the value of such elements in financial statements, and a brief description of the capital transferability.

RemovedArticle 1 – paragraph 1 – point 84, Article 256b – paragraph 1 – subparagraph 1: Member States shall require participating insurance and reinsurance undertakings to submit to the supervisory authorities, on an annual basis, a regular supervisory report at the level of the group. Article 35(5a) shall apply mutatis mutandis.

AddedThe disclosure of the Solvency Capital Requirement referred to in paragraph 1b, point (c)(ii), of this Article shall show separately the amount calculated in accordance with Chapter VI, Section 4, Subsections 2 and 3 and any capital add-on imposed in accordance with Article 37 or the impact of the specific parameters the insurance or reinsurance undertaking is required to use in accordance with Article 110, together with concise information on its justification by the supervisory authority concerned.

RemovedThese undertakings are not subject to supervision under Solvency II.

AddedThe disclosure of the Solvency Capital Requirement shall be accompanied, where applicable, by an indication that its final amount is still subject to supervisory assessment.’;

RemovedDirective 2009/138/EC

Added(e) the following paragraphs 3 to 8 are added:

RemovedArticle 1 – paragraph 1 – point 84, Article 256b – paragraph 2 – subparagraph 1 – introductory part: A participating insurance or reinsurance undertaking may, subject to the agreement of the supervisory authorities concerned, provide a single regular supervisory report which shall comprise the following:

Added‘3. Captive insurance undertakings shall not be required to disclose the part addressed to policyholders and beneficiaries and they shall only be required to include in the part addressed to other market participants the quantitative data required by the implementing technical standard referred to in Article 56 provided that these undertakings meet the following conditions:

RemovedThese undertakings are not subject to supervision under Solvency II.

Added(a) all insured persons and beneficiaries are legal entities of the group of which the captive insurance undertaking is part or natural persons eligible to be covered under that group’s insurance policies and the business covering natural persons eligible to be covered under the group insurance policies remains below 5% of technical provisions;

RemovedDirective 2009/138/EC

Added(b) the insurance obligations of the captive insurance undertaking do not consist of any compulsory third-party liability insurance.

RemovedArticle 1 – paragraph 1 – point 84, Article 256c: deleted / (deleted) / (deleted) / (deleted) / (deleted) / (deleted)

Added4. Captive reinsurance undertakings shall not be required to disclose the part addressed to policyholders and beneficiaries. Such undertakings shall only be required to include the quantitative data required by the implementing technical standards referred to in Article 56, and the part addressed to other stakeholders provided that these undertakings meet the following conditions:

RemovedDirective 2009/138/EC