1. Solvency II Reporting and Disclosure
11/5/2010
Solvency II Reporting and Disclosure
Tim O’Hanrahan

2. Overview What reports will be required? What is in those reports?
11/5/2010
Overview
What reports will be required?
What is in those reports?
Are the reports Public or Private?
Process
Frequency
Submission Dates
Format
Sign-off/Audited
Groups
Proportionality
Open Questions 2

3. 11/5/2010
Important Note
The presentation is based on a combination of the Directive, Draft Level 2 Implementing Measures and current early drafts of Level 3 Guidance.
The resulting requirements will evolve and develop over time and all undertakings should keep up to date with developments. 3

4. What reports will be required?
11/5/2010
What reports will be required?
Art. 35 Supervisory reporting
Regular Supervisory Report (RSR)
-All information necessary for the purposes of supervision
-Narrative Report
-Quantitative reporting templates
Solvency and Financial Condition Report (SFCR)
- Publicly disclosed data 4

5. What is in those reports? i) SFCR and ii) RSR
B. Governance and remunerationpolicy
C. RISK profile
a. Business, External Environment and performance
Sfcr AND rSR
D. Valuation for solvency purposes
E. Capital management 5

6. Contents of SFCR and RSR
A) Business, External Environment and Performance
B) Governance and Remuneration Policy
C) Risk Profile
Business and external environment
Underwriting Performance
Investment Performance
Performance from other activities
Governance Arrangements
Fit and Proper
Risk Management & ORSA
Internal Control
Internal Audit
Actuarial
Outsourcing
Any other disclosures
Following risks
Underwriting Risk
Market
Credit
Liquidity
Operational
Other material Risk Exposures 6

7. Contents of SFCR and RSR
D) Valuation for Solvency Purposes
E) Capital Management
Assets
Technical Provisions
Other Liabilities
Other Disclosures
Own Funds - structure, amount & quality
MCR and SCR
SCR differences if standard formula or internal model used
Non-compliance with SCR/MCR 7

8. What do you disclose for Underwriting Performance?
SFCR (Public)
RSR (Private)
The undertaking’s underwriting performance by material line of business and geographical area;
The undertaking’s underwriting expenses by material line of business and geographical area over the year and compared to the prior year.
A discussion and analysis by the administrative, management or supervisory body of the undertaking’s overall underwriting performance;
Details of the undertaking's underwriting performance by line of business against plan, and significant factors affecting deviations from plan;
Projections of the undertaking's underwriting performance over the business planning period with details of significant factors that might affect underwriting performance;
Details of any reinsurance, ART and finite reinsurance programmes purchased, including those currently not being claimed on. 8

9. Contents of SFCR and RSR
And also...
Quantitative forms
Current draft, 59 different forms!!!
Including forms on:
Profit and Loss Account
Balance Sheet
Off Balance Sheet
Solvency Capital Requirement
List of each investment held
List of each derivative
Technical Provisions
Risk Profile
Loss Profile
All forms will be reported annually, a subset will be reported every quarter. 9

10. Example List of Investments
Each investment held with details such as:
Identification
ID Code
Security Type
Issuer Name, Sector, Country
Price & Quantity
Price
Valuation Method
Cost
Risk Section
External Rating
Rating Agency
Underlying of Securitisation
Duration

11. Reporting required on other occasions?
11/5/2010
Reporting required on other occasions?
Predefined events
Predefined events are those that can lead to material changes to an undertaking’s risk profile
May require supervisory authorities to reassess the frequency and intensity of supervisory actions.
Supervisory Enquiries
Supervisors may request any information required to assess the situation of an undertaking 11

12. Are the reports Public or Private?
Private for Supervisors
SFCR
Yes
RSR No
Predefined Events
Yes for items such as non-compliance with MCR or significant non-compliance with SCR and no satisfactory action taken in required timeline
Supervisory Enquiry
Generally no but may give rise in certain circumstances to a public disclosure 12

13. Frequency of Reporting External auditing requirements
11/5/2010
Process of Reporting
Process of Reporting
Frequency of Reporting
Submission dates
Format of Reporting
External auditing requirements 13

14. Process of Reporting – Frequency and Submission Dates
SFCR
RSR
Quantitative Forms
Frequency
Annual
1) Full report at least every 3 years or when required by Supervisors
2) Material Updates Annually
Quarterly and Annual
Submission Date
14* weeks after year end
Quarterly 6* weeks after end.
Annual 16* weeks after year end
* There is a limited extension until 2015 14

15. Process of Reporting –Submission Dates
Due dates
Year end 31/3/13
Year end 31/12/13
SFCR – Annual Narrative & Quantitative
Mid July 2013
April 2014
RSR
Narrative & Quantitative
Quarterly Quantitative
Mid August 2013 for Q1 ended 30/6/13
Mid May 2013 for Q1 ended 31/3/13 15

16. Process of Reporting – Frequency and Submission Dates
SFCR
RSR
Quantitative Forms
Format
Common Template as developed by CEIOPS
Sign off -internal – administrative or management body
Yes
Sign off – external auditing or verification No
Yes to be developed 16

17. Group reporting Solvency and Financial Condition Report
Report to Supervisors
Quantitative Forms
Group
Yes
Same as Single entity + additional requirements
Same as Solo + additional requirements
Subsidiary
Could include in Group report (subject to agreement) i.e. Subsidiary would not have to complete 17

18. Proportionality How is Proportionality Demonstrated
Regular Supervisory Reporting (RSR)
Frequency of RSR is not required annually
Qualitative forms
Qualitative reporting and disclosure requirements are principled based
Quantitative Forms
You do not have to complete forms that are Not applicable 18

19. Open Questions Audit requirements : scope ? level of assurance ?
11/5/2010
Open Questions
Audit requirements : scope ? level of assurance ?
Public disclosure of some templates : which ones ?
National specificities : content ? role of EIOPA ? Can local GAAP be used for Solvency II ?
Proportionality : less requirements for small or less complex undertakings ? impact on comparability & aggregation of data ? “automaticity” of proportionality ? 19

20. Overview What reports will be required What is in those reports
11/5/2010
Overview
What reports will be required
What is in those reports
Are the reports Public or Private
Process
Frequency
Submission Dates
Format
Sign-off/Audited
Groups
Proportionality
Open Questions 20

21. Thank you