(i)information regarding deferred taxes that shall contain as a minimum all of the following:
(i)a description of the calculated amount of deferred tax assets without assessing their probable utilisation, and the extent to which those deferred tax assets have been recognised;
(ii)for deferred tax assets which have been recognised, a description of the assets likely to be utilised by reference to probable future taxable profit and by reference to the reversion of deferred tax liabilities relating to income taxes levied by the same taxation authority;
(iii)with regard to net deferred taxes assets calculated as the difference between the amount of deferred tax assets which has been recognised and the amount of deferred tax liabilities, all of the following information:
confirmation that those net deferred tax assets are available as basic own-fund items classified as Tier 3 in accordance with Article 76(a)(iii);
a description of the amount of those net deferred tax assets that are recognised as eligible own funds, applying the eligibility limits set out in Article 82;
where the amount of deferred tax assets is material, a description of the underlying assumptions used for the projection of probable future taxable profit for the purposes of Article 15.
(e)where applicable, a statement that the undertaking's Member State has made use of the option provided for in the third subparagraph of Article 51(2) of Directive 2009/138/EC;
(f)unless the undertaking's Member State has made use of the option provided for in the third subparagraph of Article 51(2) of Directive 2009/138/EC, the impact of any undertaking-specific parameters that undertaking is required to use in accordance with Article 110 of that Directive and the amount of any capital add-on applied to the Solvency Capital Requirement, together with concise information on its justification by the supervisory authority concerned;
(i)information regarding the loss-absorbing capacity of deferred taxes that shall contain as a minimum all of the following:
(i)the amount with which the Solvency Capital Requirement has been adjusted for the loss-absorbing capacity of deferred taxes, and a description of the deferred tax liabilities, carry-back and probable future taxable profit used to demonstrate likely utilisation;
(ii)where the amount of deferred tax assets is material, a description of the underlying assumptions used for the projection of probable future taxable profit for the purposes of Article 207.
1.The solvency and financial condition report shall includecontain all of the following information regarding the own funds of the insurance or reinsurance undertaking:
(a)information on the objectives,objectives policies and processes employed byof the insurance or reinsurance undertaking forin managing its own funds, including information on the time horizon used for business planning and onexplanations for any material changes to those objectives over the reporting period;
(b)separately for each tier, information on the structure,eligible amount and quality of own funds to cover the Solvency Capital Requirement, classified by tiers, at the end of the reporting period and at the end of the previous reporting period, including an analysis of the significantmaterial changes in each tier over the reporting period;
(c)(d) the eligible amount of basic own funds to cover the Minimum Capital Requirement, classified by tiers;
(d)where the phasing-in mechanism for extrapolation referred to in Article 77a(2) of Directive 2009/138/EC is applied, a quantification of the impact of not applying the phasing-in mechanism on:
(i)the basic own funds;
(ii)(c) the eligible amountamounts of own funds eligible to cover the Minimum Capital Requirement and the Solvency Capital Requirement, classified by tiers;Requirement;
(e)(f) for each basic own-fund item that is subject towhere the transitionalmatching arrangementsadjustment referred to in ArticlesArticle 308b(9) and 308b(10)77b of Directive 2009/138/EC,2009/138/EC is applied, a descriptionquantification of the natureimpact of a change to zero of the itemmatching andadjustment its amount;on:
(i)the basic own funds;
(ii)(g) information on the inputsamounts usedof byown thefunds undertakingeligible to calculatecover the Minimum Capital Requirement and the Solvency Capital Requirement;
(f)where the volatility adjustment referred to in Article 77d of Directive 2009/138/EC is used by the undertaking a quantification of the impact of a change to zero of the volatility adjustment on:
(i)the basic own funds;
(ii)the amounts of own funds eligible to cover the Minimum Capital Requirement and the Solvency Capital Requirement;
(g)where the transitional risk-free interest rate-term structure referred to Article 308c of Directive 2009/138/EC is applied a quantification of the impact of not applying the transitional measure on:
(i)the basic own funds;
(ii)the amounts of own funds eligible to cover the Minimum Capital Requirement and the Solvency Capital Requirement;
(h)where the transitional deduction referred to in Article 308d of Directive 2009/138/EC is applied a quantification of the impact of not applying the deduction measure on:
(i)the basic own funds;
(ii)the amounts of own funds eligible to cover the Minimum Capital Requirement and the Solvency Capital Requirement;
(i)a quantification of the combined impact on the undertaking’s financial position of not applying the transitional measures laid down in Article 77a(2), Articles 308c and 308d and, where relevant, Article 111(1), second subparagraph, of Directive 2009/138/EC;
(j)an analysis of significant changes in own funds during the reporting period, including:
(i)the value of own fund items issued during the year;
(ii)the extent to which an issuance as referred to in point (i) has been used to fund redemption;
(iii)the value of instruments redeemed during the year;
(iv)changes with regard to the key elements of the reconciliation reserve;
(k)(e) a quantitative and qualitative explanation of any material differences between equity as shown in the undertaking'sundertaking’s financial statements and the excess of assets over liabilities as calculated for solvency purposes;
(l)for each material item of ancillary own funds:
(i)a description of the item concerned;
(ii)the amount of the ancillary own-fund item;
(iii)where a method by which to determine the amount of the ancillary own-fund item has been approved:
(1)that method;
(2)(g) for each material item of ancillary own funds, a description of the item, the amount of the ancillary own-fund item and, where a method by which to determine the amount of the ancillary own-fund item has been approved, that method as well as the nature and the names of the counterparty or group of counterparties for the items referred to in Article 89(1), points (a), (b) and (c) of Article 89(1) of Directive 2009/138/EC;
(m)(h) a description of any item deducted from own funds and a brief description of any significant restriction affecting the availability and transferability of own funds within the undertaking;
For the purposes of paragraphthe (g),first subparagraph, point (l), the names of the counterparties shall not be disclosed where such disclosure is legally not possible or impracticable or where the counterparties concerned are not material.
2.The solvency and financial condition report shall includecontain all of the following information regarding the Solvency Capital Requirement and the Minimum Capital Requirement of the insurance or reinsurance undertaking:
(a)the amounts of the undertaking'sundertaking’s Solvency Capital Requirement and the Minimum Capital Requirement and the eligible own funds and ratio of coverage for both the Solvency Capital Requirement and the Minimum Capital Requirement at the end of the reporting period, accompanied, where applicable, by ana indicationstatement that the final amount of the Solvency Capital Requirement is still subject to supervisory assessment;
(b)with regard to risk sensitivity, a description of the methods used, the assumptions made and the outcome of the sensitivity analysis for material risks and events;
(c)where the phasing-in mechanism for extrapolation laid down in Article 77a(2) of Directive 2009/139/EC is applied, a quantification of the impact of non applying that phasing-in mechanism on the Solvency Capital Requirement and the Minimum Capital Requirement;
(d)where the matching adjustment referred to in Article 77b of Directive 2009/138/EC is applied, a quantification of the impact of a change to zero of that matching adjustment on the Solvency Capital Requirement and on the Minimum Capital Requirement;
(e)where the volatility adjustment referred to in Article 77d of Directive 2009/138/EC is used, a quantification of the impact of a change to zero of that volatility adjustment on the Solvency Capital Requirement and on the Minimum Capital Requirement;
(f)where the transitional risk-free interest rate-term structure referred to Article 308c of Directive 2009/138/EC is applied a quantification of the impact of not applying that transitional risk-free interest rate-term structure on the Solvency Capital Requirement and on the Minimum Capital Requirement;
(g)where the transitional deduction referred to in Article 308d of Directive 2009/138/EC is applied a quantification of the impact of not applying that transitional deduction on the Solvency Capital Requirement and on the Minimum Capital Requirement;
(h)(b) the amount of the undertaking'sundertaking’s Solvency Capital Requirement split by risk modules where that undertaking applies the standard formula, and by risk categories where the undertaking applies an internal model;model and a qualitative description of the material risks captured by the Solvency Capital Requirement calculation;
(i)(c) information on whether the undertaking is using simplified calculations, and for which risk modules and sub-modules of the standard formula that undertaking is using simplified calculations;formula;
(j)(d) information on whether and for which parameters of the standard formula that undertaking is using undertaking-specific parameters pursuant to Article 104(7) of Directive 2009/138/EC;
(k)information on the inputs used by the undertaking to calculate the Minimum Capital Requirement;
(l)(h) any material change to the Solvency Capital Requirement and to the Minimum Capital Requirement over the reporting period, and the reasons for any such change;change.
3.The solvency and financial condition report shall includecontain all of the following information regarding the option set out in Article 304 of Directive 2009/138/EC:
(a)ana indicationstatement that thatthe undertaking is using the duration-based equity risk sub-module set out in that Article for the calculation of its Solvency Capital Requirement, after approval from its supervisory authority;
(b)the amount of the capital requirement for the duration-based equity risk sub-module resulting from such use.
4. Where an internal model is used to calculate the Solvency Capital Requirement, theThe solvency and financial condition report shall also includecontain all of the following information:information regarding the application of Article 105a of Directive 2009/138/EC:
(a)a statement on whether the insurance and reinsurance undertaking applies the prudential treatment set out in Article 105a of that Directive for the calculation of its Solvency II capital requirement, and where applicable, the amount of equity investments that are classified as long-term equity investments, and the share of such investments within the equity portfolio;
(b)information on any non-compliance with the conditions laid down in Article 105a(1), second subparagraph, of that Directive during the financial year covered by the report, including all of the following:
(i)information on the conditions that are or were not met and the reasons for non-compliance;
(ii)the duration of the non-compliance;
(iii)whether the insurance or reinsurance undertaking has restored compliance.
An insurance or reinsurance undertaking that is required to cease to classify any equity investment as long-term equity investments in accordance with Article 105a(3), fourth subparagraph, of that Directive shall disclose that information and the remaining duration of the prohibition to apply the risk factor referred to in Article 105a(4) of Directive 2009/138/EC.
4.Where an internal model is used to calculate the Solvency Capital Requirement, the solvency and financial condition report shall also contain all of the following information:
(a)a description of the various purposes for which that undertaking is using its internal model;
(b)a description of the scope of the internal model in terms of business units and risk categories;
(c)where a partial internal model is used, a description of the technique which has been used to integrate any partial internal model into the standard formula including, where relevant, a description of alternative techniques used;
(d)a description of the methods used in the internal model for the calculation of the probability distribution forecast and the Solvency Capital Requirement;
(e)an explanation, by risk module, of the main differences in the methodologies and underlying assumptions used in the standard formula and in the internal model;
(f)the risk measure and time period used in the internal model, and where they are not the same as those set out in Article 101(3) of Directive 2009/138/EC, an explanation of why the Solvency Capital Requirement calculated using the internal model provides policy holders and beneficiaries with a level of protection equivalent to that set out in Article 101 of that Directive;
(g)a description of the nature and appropriateness of the data used in the internal model.
(c)regarding any significant non-compliance with the undertaking's Solvency Capital Requirement during the reporting period: the period and maximum amount of each significant non-compliance and, in addition to the explanation of its origin and consequences as well as any remedial measures taken, as provided for under Article 51(1)(e)(v) of Directive 2009/138/EC and an explanation of the effects of such remedial measures;
(g)a statement on whether a dynamic volatility adjustment is used in the internal model.
5.For risk concentration and liquidity risk, the solvency and financial condition report shall contain all of the following:
(a)6. The solvency and financial condition report shall include in a separatedescription sectionof any otherthe material informationrisk regardingconcentrations theto capital management ofwhich the insurance or reinsurance undertaking.undertaking is exposed;
(b)the total amount of the expected profit included in future premiums as calculated in accordance with Article 260(2);
(c)the total amount of the expected profit included in future fees for servicing and management of funds as calculated in accordance with Article 260(2a).
6.For risk mitigation, the solvency and financial condition report shall describe the techniques used for mitigating risks.
7.The solvency and financial condition report shall contain both quantitative information regarding the reporting period, and information on the risk exposure arising from off-balance sheet positions and the transfer of risk to special purpose vehicles.
8.The solvency and financial condition report shall describe how the undertaking has determined its overall solvency needs given its risk profile and how its capital management activities and its risk management system interact with each other.
9.5. The solvency and financial condition report shall includecontain all of the following information regarding any non-compliance with the Minimum Capital Requirement or significant non-compliance with the Solvency Capital Requirement of the insurance or reinsurance undertaking:
(a)(b) whereregarding any non-compliance with thethat undertaking'sundertaking’s Minimum Capital Requirement has not been subsequently resolved: the amount of the non-compliance at the reporting date;Requirement:
(i)the period and maximum amount of each non-compliance during the reporting period;
(ii)explanation of the origin and consequences of the non-compliance;
(iii)any remedial measures taken, as provided for under Article 51(1b), point (d)(vi), of Directive 2009/138/EC;
(iv)an explanation of the effects of the remedial measures referred to in point (iii);
(b)(d) where a significant non-compliance with the undertaking'sundertaking’s SolvencyMinimum Capital Requirement has not been subsequently resolved:resolved, the amount of and the consequences of the non-compliance at the reporting date.date;
(c)regarding any non-compliance with the undertaking’s Solvency Capital Requirement during the reporting period:
(i)the period and maximum amount of each significant non-compliance;
(ii)(a) regarding any non-compliance with that undertaking's Minimum Capital Requirement: the period and maximum amount of each non-compliance during the reporting period, an explanation of its origin and consequences,consequences and any remedial measures taken, as provided for under Article 51(1)(e)(v)51(1b), point (d)(vi), of Directive 2009/138/EC and an explanation of the effects of such remedial measures;2009/138/EC;
(iii)an explanation of the effects of such remedial measures referred to in point (ii);
(d)where a non-compliance with the undertaking’s Solvency Capital Requirement has not been subsequently resolved, the amount of and the consequences of the non-compliance at the reporting date.
10.The solvency and financial condition report shall contain in a separate section any other material information regarding the risk profile and the capital management of the insurance or reinsurance undertaking.