1.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 small and non-complex 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 last two financial years directly prior to such classification:
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:
the interest rate risk submodule referred to in Article 105(5), second subparagraph, point (a), calculated on the basis of consolidated data, is not higher than 5 % of the group consolidated technical provisions, gross of the amounts recoverable from reinsurance contracts and special purpose vehicles, as referred to in Article 76, excluding undertakings to which method 2, which is laid down in Article 233, is applied;
the total of the consolidated technical provisions from life insurance activities of the group, gross of the amounts recoverable from reinsurance contracts and special purpose vehicles, is not higher than EUR 1 000 000 000;
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:
the averaged combined ratio for non-life insurance activities net of reinsurance of the last three financial years is less than 100 %;
the annual gross written premium income of the group is not higher than EUR 100 000 000;
the sum of the annual gross written premiums in classes 5 to 7, 11, 12, 14 and 15 in Part A of Annex I is not higher than 30 % of total annual written premiums of non-life activities of the group;
annual gross written premium income from 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 is lower than either of the following thresholds:
EUR 20 000 000;
10 % of the group’s total annual gross written premium income;
annual gross written premium income from business underwritten by the group in Member States other than the Member State of the group supervisor is lower than either of the following thresholds:
EUR 20 000 000;
10 % of the group’s total annual gross written premium income;
the sum of the following is not higher than 20 % of total investments calculated on the basis of consolidated data:
the market risk module referred to in Article 105(5);
the part of the counterparty default risk module referred to in Article 105(6) that corresponds to exposures to securitisations, derivatives, receivables from intermediaries and other investment assets which are not covered in the spread risk sub-module;
any capital requirement that is applicable to investments in intangible assets that are not covered by the market risk and the counterparty default risk modules;
the reinsurance accepted by the undertakings of the group does not exceed 50 % of the total annual gross written premium income of the group;
the difference referred to in Article 230(1) where method 1 is used, in Article 233(1) where method 2 is used, or in Article 233a(1) where a combination of methods is used, is positive;
where method 2 or a combination of methods 1 and 2 is used, each undertaking to which method 2 is applied is a small and non-complex undertaking.
The criteria laid down in the first subparagraph, point (a)(i) and point (e), shall not apply to groups where only method 2 is used.
2.Article 29b shall applymutatis mutandisat the level of the ultimate parent insurance or reinsurance undertaking, insurance holding company or mixed financial holding company
3.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.
4.The following groups shall never be classified as small and non-complex groups:
groups which are financial conglomerates within the meaning of Article 2, point 14, of Directive 2002/87/EC;
groups where at least one subsidiary undertaking is an undertaking referred to in Article 228(1);
groups which use an approved partial or full internal model to calculate their group Solvency Capital Requirement.
5.Articles 29c, 29d and 29e shall applymutatis mutandis.
6.The Commission shall supplement this Directive by adopting delegated acts, in accordance with Article 301a, specifying:
the criteria laid down in paragraph 1, including the approach for calculating the sum referred to in the first subparagraph, point (e), of that paragraph;
the methodology to be used when classifying groups as small and non-complex groups; and
the conditions for granting or withdrawing supervisory approval for proportionality measures to be used by groups not classified as small and non-complex groups.