TITLE IU.K. [X1VALUATION AND RISK-BASED CAPITAL REQUIREMENTS (PILLAR I), ENHANCED GOVERNANCE (PILLAR II) AND INCREASED TRANSPARENCY (PILLAR III)]

CHAPTER XU.K. CAPITAL ADD-ON

SECTION 2 U.K. Methodologies for calculating capital add-ons

Article 282U.K.Calculation of add-ons in relation to deviations from SCR assumptions

For the purposes of imposing a capital add-on [F1in relation to deviations from SCR assumptions], supervisory authorities shall calculate the capital add-on as the difference, at a given point in time, between the following:

(a)

the Solvency Capital Requirement of the insurance or reinsurance undertaking, excluding any previous or simultaneous capital add-on, that would be calculated if the standard formula or internal model, as appropriate, were modified so as to reflect the actual risk profile of the insurance or reinsurance undertaking and to ensure compliance with Article 101(3) of Directive 2009/138/EC;

(b)

the Solvency Capital Requirement of the insurance or reinsurance undertaking, excluding any previous or simultaneous capital add-on.