Capital requirement

EIOPA consults on the amendments of supervisory reporting and disclosure requirements

Retrieved on: 
星期六, 七月 24, 2021
Capital requirement, European Insurance and Occupational Pensions Authority, European Union, Insurance regulation, Money, Solvency II, Business law, Own risk and solvency assessment

The European Insurance and Occupational Pensions Authority (EIOPA) published today a consultation on the amendments of supervisory reporting and disclosure requirements under Solvency II.

Key Points: 
  • The European Insurance and Occupational Pensions Authority (EIOPA) published today a consultation on the amendments of supervisory reporting and disclosure requirements under Solvency II.
  • After a number of years of the implementation of Solvency II and the information received by national supervisory authorities it is important to ensure that the regular supervisory reporting remains fit for purpose.
  • In this consultation paper, EIOPA proposes amendments to the reporting requirements, which are mainly based on the Report on quantitative reporting templates published together with the 2020 Solvency II Opinion.
  • In addition to those changes, the proposals include simplification of quarterly reporting for all undertakings, elimination of some reporting templates for all undertakings and new thresholds to promote better risk-based and proportionate reporting requirements.

Supervisory statement on the ORSA in the context of COVID-19

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星期二, 七月 20, 2021
Capital requirement, Financial risk management, Own risk and solvency assessment, European Insurance and Occupational Pensions Authority, Contemporary history, Orsa, Insurance, Articles, COVID-19 pandemic

The European Insurance and Occupational Pensions Authority (EIOPA) published today the supervisory statement on Own Risk and Solvency Assessment (ORSA) in the context of COVID-19 pandemic.With the aim to foster supervisory convergence, EIOPA in this supervisory statement focuses on the supervision of the internal processes of undertakings that are necessary for having a good quality ORSA in place.

Key Points: 
  • The European Insurance and Occupational Pensions Authority (EIOPA) published today the supervisory statement on Own Risk and Solvency Assessment (ORSA) in the context of COVID-19 pandemic.With the aim to foster supervisory convergence, EIOPA in this supervisory statement focuses on the supervision of the internal processes of undertakings that are necessary for having a good quality ORSA in place.
  • Given that COVID-19 pandemic has already its impact on undertakings,EIOPA expects that most of them have captured such a scenario in their ORSA by now.
  • For instance, some national supervisory authorities have also already issued guidance to reflect the pandemic situation in the ORSA.
  • The statement specifically addresses the pandemic situation, however the recommendations are applicable to any similar situation with the necessary adaptations.

Metro Phoenix Bank Reports Earnings of $1,703,000, or $0.45 per Diluted Share in 2Q 2021; Loan Growth (net PPP) of 7.09% Realized; Asset Quality Remains Strong as Non-Performing Asset Ratio is Negligible at 0.01%

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星期五, 七月 16, 2021
Finance, Money, Economy, Capital requirement, Paycheck Protection Program, United States responses to the COVID-19 pandemic, Bank, Capital adequacy ratio

We established very aggressive goals for core deposit growth in 2021 and through the first half of the year, the team has not disappointed.

Key Points: 
  • We established very aggressive goals for core deposit growth in 2021 and through the first half of the year, the team has not disappointed.
  • Excluding the PPP loan balance of $19.1 million, an adjusted allowance for loan losses equates to 1.40% of total loans.
  • The Bank's capital ratio exceeded the regulatory guidelines established under Section 201 of the Economic Regulatory Relief and Consumer Protection Act.
  • Effective January 2020, community banks are tested for capital health based on a single capital ratio, the Community Bank Leverage Ratio (CBLR).

Consultation on the revision of the Solvency II Guidelines on Contract Boundaries and Valuation of Technical Provisions

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星期五, 七月 16, 2021
Capital requirement, Insurance, European Insurance and Occupational Pensions Authority, European Union, Insurance regulation, Solvency II, Money, Actuarial science, Reinsurance, Own risk and solvency assessment

The European Insurance and Occupational Pensions Authority (EIOPA) launched two consultations today on the revision of the Solvency II Guidelines on contract boundaries and the valuation of technical provisions, in place since the implementation of Solvency II in 2016.

Key Points: 
  • The European Insurance and Occupational Pensions Authority (EIOPA) launched two consultations today on the revision of the Solvency II Guidelines on contract boundaries and the valuation of technical provisions, in place since the implementation of Solvency II in 2016.
  • As part of the 2020 review of Solvency II, EIOPA identified several divergent practices regarding the implementation and supervision of calculation of technical provisions.
  • The Guidelines on contract boundaries promote a consistent application of an insurance or reinsurance contract boundary.
  • The Guidelines on valuation of technical provisions aim to increase consistency and convergence of professional practice for all types and sizes of undertakings across the EU Member States and to support undertakings in calculating their technical provisions under Solvency II.

Supervisory statement on supervisory practices and expectations in case of breach of the Solvency Capital Requirement

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星期二, 七月 13, 2021
Capital requirement, European Insurance and Occupational Pensions Authority, European Union, Insurance regulation, Insurance, Solvency II, Finance, Reinsurance, Money, Own risk and solvency assessment, Pan-European Pension

The European Insurance and Occupational Pensions Authority (EIOPA) published today the statement on supervisory practices and expectations in case of breach of the Solvency Capital Requirement (SCR).

Key Points: 
  • The European Insurance and Occupational Pensions Authority (EIOPA) published today the statement on supervisory practices and expectations in case of breach of the Solvency Capital Requirement (SCR).
  • With this supervisory statement EIOPA aims to foster supervisory convergence in the situations where insurance and reinsurance undertakings breach their capital requirement, in particular addressing the recovery plan required.
  • The supervisory practices in such situations need to be flexible and should consider the specific situation of the insurance or reinsurance undertaking.
  • Solvency II allows supervisory authorities to take early actions, therefore acting promptly to ensure supervisory convergence in this area is needed.

AM Best Revises Outlooks to Positive for Active Capital Reinsurance, Ltd.

Retrieved on: 
星期四, 七月 8, 2021
Banking, Professional services, Insurance, Finance, Actuarial science, Reinsurance, Insurance, Reinsurance companies, Capital requirement

AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of a- (Excellent) of Active Capital Reinsurance, Ltd. (Active Re) (Barbados).

Key Points: 
  • AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of a- (Excellent) of Active Capital Reinsurance, Ltd. (Active Re) (Barbados).
  • Active Res balance sheet strength is underpinned by its risk-adjusted capitalization at the strongest level, as measured by Bests Capital Adequacy Ratio (BCAR).
  • The ratings also reflect Active Res adequate reinsurance program and a supporting risk management framework for its risk profile.
  • The companys capital base, consistently grown through reinvestment of earnings and capital contributions, has helped maintain Active Res risk-adjusted capitalization at the strongest level.

Monthly update of the symmetric adjustment of the equity capital charge for Solvency II – end June 2021

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星期一, 七月 5, 2021
Capital requirement, Money, Solvency II, European Insurance and Occupational Pensions Authority, European Union, Business law, Own risk and solvency assessment, Gabriel Bernardino

The European Insurance and Occupational Pensions Authority (EIOPA) has published the technical information on the symmetric adjustment of the equity capital charge for Solvency II with reference to the end of June 2021.

Key Points: 
  • The European Insurance and Occupational Pensions Authority (EIOPA) has published the technical information on the symmetric adjustment of the equity capital charge for Solvency II with reference to the end of June 2021.
  • The symmetric adjustment is regulated mainly in Article 106 of Directive 2009/138/EC (Solvency II Directive); Article 172 of the of the Delegated Regulation of Solvency II as well as in EIOPA's Final report on ITS on the equity index for the symmetric adjustment of the equity capital charge: Read more

EIOPA publishes monthly technical information for Solvency II Relevant Risk Free Interest Rate Term Structures – end-June 2021

Retrieved on: 
星期一, 七月 5, 2021
Capital requirement, European Insurance and Occupational Pensions Authority, European Union, Insurance regulation, Solvency II, RFR, Risk, Technical documentation, Articles, Magazines, Business law, Own risk and solvency assessment

Background

Key Points: 
  • Background

    Technical information relating to risk-free interest rate (RFR) term structures is used for the calculation of the technical provisions for (re)insurance obligations.

  • In line with the Solvency II Directive, EIOPA publishes technical information relating to RFR term structures on a monthly basis via a dedicated section on EIOPA's Website also containing the release calendar for 2021, the RFR Technical Documentation, the RFR coding and Frequently Asked Questions.
  • With this publication, EIOPA ensures consistent calculation of technical provisions across Europe.

EBA publishes its final revised Guidelines on sound remuneration policies

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星期五, 七月 2, 2021
Financial services, Capital requirement, Bank regulation, European Union, Finance, European Union directives, Capital Requirements Directives, European Banking Authority, Gender neutrality

02 July 2021

Key Points: 
  • 02 July 2021

    The European Banking Authority (EBA) published today its revised Guidelines on sound remuneration policies.

  • This update takes into account the amendments introduced by the fifth Capital Requirements Directive (CRD V) in relation to institutions sound remuneration policies and, in particular, the requirement that remuneration policies should be gender neutral.
  • In this context, the final revised Guidelines specify further that institutions should implement a gender-neutral remuneration policy.
  • The EBA will follow up on institutions practices with a report to be published within two year after the publication of the final Guidelines.

EBA confirms quality of unsolicited credit assessments

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星期四, 七月 1, 2021
Finance, Financial services, Money, ECAI, Bank regulation, Capital requirement, Credit rating agencies, European Banking Authority, Capital Requirements Regulation, CRR

01 July 2021

Key Points: 
  • 01 July 2021

    The European Banking Authority (EBA) published today a revised Decision confirming the quality of unsolicited credit assessments assigned by certain External Credit Assessment Institutions (ECAIs) for calculating institutions' capital requirements.

  • Institutions may use unsolicited credit assessments of an ECAI for determining their capital requirements only if the EBA has confirmed that those unsolicited ratings do not differ in quality from solicited ratings of that same ECAI.
  • Legal basis and background

    The EBA Decision has been developed on the basis of Article 138 of Regulation (EU) No 575/2013 (Capital Requirements Regulation CRR), which establishes that institutions may use unsolicited credit assessments of an ECAI for the determination of capital requirements only if the EBA has confirmed that those unsolicited ratings do not differ in quality from solicited ratings of that ECAI.

  • On 17 May 2016, the EBA issued a Decision allowing the use of unsolicited credit assessments for 22 ECAIs in the context of the Capital Requirements Regulation (CRR).