1.The part of the solvency and financial condition report targeted at policy holders and beneficiaries shall start with an indication that policy holders and beneficiaries have the right to request a version of that part in the official language of the Member State where they reside, provided that the insurance or reinsurance undertaking operates in that Member State through the right of establishment or the freedom to provide services. Where versions in other languages are available online, the insurance or reinsurance undertaking shall also provide the internet links to each version at the beginning of that part of the solvency and financial condition report.
2.The part of the solvency and financial condition report consisting of information targeted at policy holders and beneficiaries shall contain a section about the business and performance of the undertaking, which shall cover all of the following information:
the name and legal form of the undertaking;
the name and contact details of the supervisory authority responsible for financial supervision of the undertaking;
a list of the shareholders of qualifying holdings in the undertaking;
where the insurance undertaking belongs to a group, the name of the group, its legal form, the jurisdiction of the group and where applicable, the supervisory authority responsible for financial supervision of the group;
any significant business development or other significant event that has occurred over the reporting period that has a material impact on the undertaking’s risk profile;
clear and simple information on the insurance undertaking’s underwriting and investment performance at an aggregate level over the reporting period.
3.The part of the solvency and financial condition report consisting of information targeted at policy holders and beneficiaries shall contain a section about the capital management and risk profile of the undertaking, which shall cover all of the following information:
a brief definition of the Solvency Capital Requirement and Minimum Capital Requirement;
the Solvency Capital Requirement and Minimum Capital Requirement, the eligible own funds, and the ratio of coverage both at the end of the reporting period and the previous reporting period;
regarding any non-compliance with the Minimum Capital Requirement or the Solvency Capital Requirement during the reporting period or at the time of disclosure, the period of each non-compliance, an explanation of its origin and consequences, any remedial measures taken, and an explanation of the effects of such remedial measures;
a description of the material risks the undertaking is exposed to, including in relation to sustainability risks, any material changes to those material risks over the reporting period, and a description of the applied risk mitigation techniques.
The description referred to in the first subparagraph, point (a), shall contain the following text:
‘Two capital requirements aim at measuring the financial soundness of the undertaking: the Solvency Capital Requirement (SCR) and the Minimum Capital Requirement (MCR). The SCR should deliver a level of capital that enables an undertaking to absorb significant unforeseen losses over a one-year time horizon and should give reasonable assurance to policy holders that payments will be made as they fall due. The MCR is intended to provide a minimum level of security to be held at all times by the undertaking and below which the amount of financial resources (own funds) should not fall.
The capital requirements will need to be covered by capital (own funds) of sufficient quality to ensure that losses can be covered on a going-concern basis as well as in the event of winding-up’.
4.The part of the solvency and financial condition report targeted at policy holders and beneficiaries shall contain a section covering any other material information for policy holders. That section shall in particular indicate whether the undertaking discloses the plans referred to in Article 19a or Article 29a of Directive 2013/34/EU, and where applicable, contain the internet link to these plans.
5.The part of the solvency and financial condition targeted at policy holders and beneficiaries shall not exceed five pages.
Compliance with the first subparagraph shall not result in an omission or the abridgement of the relevant information referred to in paragraphs 1 to 4.