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Directive 2009/138/EC of the European Parliament and of the CouncilDangos y teitl llawn
Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) (recast) (Text with EEA relevance)
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Article 230Method 1 (Default method): Accounting consolidation-based method
1.The calculation of the group solvency of the participating insurance or reinsurance undertaking shall be carried out on the basis of the consolidated accounts.
The group solvency of the participating insurance or reinsurance undertaking is the difference between the following:
(a)the own funds eligible to cover the Solvency Capital Requirement, calculated on the basis of consolidated data;
(b)the Solvency Capital Requirement at group level calculated on the basis of consolidated data.
The rules laid down in Title I, Chapter VI, Section 3, Subsections 1, 2 and 3 and in Title I, Chapter VI, Section 4, Subsections 1, 2 and 3 shall apply for the calculation of the own funds eligible for the Solvency Capital Requirement and of the Solvency Capital Requirement at group level based on consolidated data.
2.The Solvency Capital Requirement at group level based on consolidated data (consolidated group Solvency Capital Requirement) shall be calculated on the basis of either the standard formula or an approved internal model, in a manner consistent with the general principles contained in Title I, Chapter VI, Section 4, Subsections 1 and 2 and Title I, Chapter VI, Section 4, Subsections 1 and 3, respectively.
The consolidated group Solvency Capital Requirement shall have as a minimum the sum of the following:
(a)the Minimum Capital Requirement as referred to in Article 129 of the participating insurance or reinsurance undertaking;
(b)the proportional share of the Minimum Capital Requirement of the related insurance and reinsurance undertakings.
That minimum shall be covered by eligible basic own funds as determined in Article 98(4).
For the purposes of determining whether such eligible own funds qualify to cover the minimum consolidated group Solvency Capital Requirement, the principles set out in Articles 221 to 229 shall apply mutatis mutandis. Article 139(1) and (2) shall apply mutatis mutandis.
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