306/2016 Coll.
DECREE


Dated 8 September 2016

Implementing certain provisions of the Insurance Act

Czech National Bank pursuant to § 136 paragraph. 1 of Act no. 277/2009 Coll.
On insurance, as amended by Act no. 304/2016 Coll., To implement §
paragraph 7b. 7, § 54b paragraph. 1 and 4, § 78 para. 2, § 81 paragraph. 5, § 82 para. 2, §
89c paragraph. 6, § 100 paragraph. 3 and § 123 paragraph. 3 and § 136 paragraph. 2
to implement § 76 par. 2 of this Act:
PART ONE

PRELIMINARY PROVISIONS


§ 1
Subject Matter


This Decree implements the relevant regulations of the European Union ^ 1), while
follows directly applicable legislation of the European Union ^ 2) and regulates

A) the method of calculation of the Solvency Capital Requirement

B) the conditions for the use of full or partial internal model for the calculation
Solvency Capital Requirement

C) the calculation of group solvency,

D) conditions for use and method of calculation of compensatory adjustments
risk-free yield curve

E) the extent, manner and deadlines for disclosure,

F) evaluation of the sensitivity of technical provisions and eligible capital,

G) the terms and structure of the report on the management and control
system and the verification report disclosed information in the report on
solvency and financial condition

H) the method of payment and the remuneration and reimbursement of cash expenses forced
Administrator home insurance or domestic reinsurance, his representative and the liquidator
home insurance, domestic reinsurance branches
insurance from a third country or branches of reinsurance third State.

§ 2


Definitions
For the purposes of this Decree

A) diversification effects reduce exposure to insurance, reinsurance and
insurance or reinsurance groups to risks associated with
diversification of their business, resulting from the fact that
negative impact from one risk can be offset by a more favorable impact | || another risk, where those risks are not fully correlated,

B) the liquidation property asset balance remaining after
perform all acts necessary to carry out the liquidation prior to the settlement of remuneration
liquidator,

C) test used in evaluating the use of an internal model
in the management and control system, in particular the integration of the internal model into the system
risk management and the relevant decision-making processes

D) calibration standards, calibration requirements specified in § 74 para. 2 and 3
Insurance Act and calibration standards for internal model under §
12th
PART TWO


SOLVENCY OF INSURANCE AND REINSURANCE
TITLE
I

Solvency Capital Requirement calculation according to the standard FORMULA


§ 3

Basic Solvency Capital Requirement

(1) Basic Solvency Capital Requirement
includes capital requirements for at least the risk modules

A) non-life underwriting risk

B) life underwriting risk

C) health underwriting risk

D) market risk

E) counterparty default risk and

F) other risk modules provided directly applicable regulation
European Union governing the calculation of the Solvency Capital Requirement
.

(2) Risk modules under paragraph 1. a) to e) consist of at least
risk sub-modules specified in Annex no. 1 hereto and
risk of sub-modules, according to the directly applicable European Union
governing the calculation of the Solvency Capital Requirement.

(3) For the purpose of calculating the Basic Solvency Capital Requirement
capital requirements to risk modules referred to in paragraph 1.
A) to e) aggregated using correlation coefficients listed in the Annex.
2 hereto.

(4) For the purposes of paragraph 1 point. a) to c) the insurance and reinsurance operations
allocated to underwriting risk module that best reflects
technical nature of the underlying risks of the operation.

§ 4

The capital requirement for operational risk

Capital requirement for operational risk shall reflect operational risks
extent that they are not reflected in the risk modules according to § 3.

§ 5

Editing a capacity of technical provisions and deferred taxes absorb losses


(1) The adjustment of the capacity of technical provisions and deferred taxes

Absorb losses ^ 3) reflects the possible partial settlement
unexpected losses through a simultaneous decrease in technical provisions or
deferred taxes or a combination of both.

(2) Adjustment of the capacity of technical provisions and deferred taxes
absorb losses reflects the effect of reducing risk through
future discretionary benefits of insurance contracts to the extent
for which the domestic insurance undertaking or domestic reinsurance
able to demonstrate that a reduction in such benefits may be used to cover any unexpected losses
.

§ 6
Simplified calculation


Home insurance or domestic reinsurance for the risk modules or sub-modules
under § 3 para. 2 use a simplified calculation provided
directly applicable EU regulation governing the calculation of the Solvency Capital Requirement
if it is proportionate to the nature,
scale and complexity of the risks associated with the activities of home insurance
or domestic reinsurance. Simplified calculation of the domestic insurance undertaking or domestic reinsurance
carried out in accordance with the provisions of § 74 para. 2 and 3
Insurance Act.

§ 7

Implementing measures for Solvency Capital Requirement

Calculation of the Solvency Capital Requirement, capital requirements
risk to the individual modules and sub-modules according to § 3,
capital requirement for operational risk under § 4 adaptations according to § 5 and implementation
conditions and rules for use of the simplified calculation in accordance with § 6
governed by a directly applicable EU regulation governing the calculation of the Solvency capital requirement
.

§ 8

SCR insurance from a third country or
reinsurance from a third country

The provisions of § 3-7 shall apply mutatis mutandis for the insurance company from a third country
or reinsurance undertaking from a third country in relation to the liabilities from insurance or reinsurance activities
operating in the Czech Republic.
TITLE II


Calculation of the SCR through full or partial internal

MODEL
§ 9


Use Test
Home insurance or reinsurance domestic use in the test
shows that the model is the management and control system
widely and consistently used, at least in the scope of § 78 para. 4 point.
) And b) of the Insurance Act.


Statistical quality standards
§ 10

(1) Home insurance or reinsurance domestic ensure that internal
model, including the determination of the probability distribution forecast from which
internal model is based, meets the requirements set out in paragraphs 2 to 6
and § 11 .

(2) Methods used to determine the probability distribution forecast
must be based on adequate actuarial and statistical methods
and must be consistent with the methods used to calculate technical provisions
by the directly applicable European Union.
The methods used to determine the probability distribution forecast
must be based on current and reliable information and
realistic assumptions. Home insurance or reinsurance justify domestic
Czech National Bank assumptions
basis for its internal model.

(3) Data used for the internal model shall be accurate, complete, adequate and reliable
. Home insurance or reinsurance domestic
least once annually updated data files that are used in determining the prognosis
probability distribution.

(4) The internal model must include the risks set out in § 74 para. 4 of the
insurance and any other significant risks that it is or could be
domestic insurance undertaking or domestic reinsurance undertaking is exposed.

(5) Home insurance or reinsurance domestic in their internal model
accurately assess the particular risks associated with financial
guarantees and any contractual options, if they are significant.
Also assess the risks associated with both policyholder and insured
beneficiaries and contractual options for home insurance or reinsurance domestic
, including the impact that could have
future changes in financial and non-financial terms of the application those options.

(6) Home insurance or reinsurance domestic
take into account in their internal model, all payments to policyholders and beneficiaries insured

Persons for which expected to be performed, regardless of whether
those payments are contractually guaranteed or not.

§ 11

(1) Home insurance undertaking or domestic reinsurance may, in its internal model
take into account the dependencies within risk categories and
between these categories in terms of diversification effects while
justify the Czech National Bank, that the system used for measuring
diversification effects is appropriate.

(2) Home insurance undertaking or domestic reinsurance may, in its internal model
fully take into account the effects of risk-mitigation techniques, if they
internal model credit risk and other risks arising from the use of such techniques
properly taken into account.

(3) Home insurance undertaking or domestic reinsurance may, in its internal model
take account of future actions of their leadership, whose implementation
can be expected with regard to the time required for their implementation.

§ 12


Calibration Standards
(1) Home insurance or reinsurance domestic
can for the construction of the internal model to use a different time period or risk
than those set out in § 74 para. 2 and 3 of the Law on Insurance
if the outputs can use an internal model for the calculation of the Solvency capital requirement
way that policyholders
insured and beneficiaries with a level of protection under § 74
insurance Act.

(2) Home insurance or reinsurance domestic
derive the Solvency Capital Requirement directly from the probability distribution forecast
generated by the internal model method using value at risk according to §
74 paragraph. 3 of the Insurance Act.

(3) Where a domestic insurance undertaking or domestic reinsurance
can not derive the Solvency Capital Requirement directly from the probability distribution forecast
generated by the internal model can
in the calculation of the Solvency Capital Requirement to use approximations, if it is able
Czech national Bank show that policyholders are provided
level of protection under § 74 of the insurance Act.

§ 13

Standards for validating the internal model

(1) Home insurance or reinsurance domestic
periodically verifies the validity of the internal model in accordance with § 78 of the Insurance Act and
directly applicable EU regulations governing the calculation
SCR.
Part of validating the internal model is at least watching its behavior, review the appropriateness of its permanent
specifications and comparing its results with the observed
experience.

(2) The process of validating the internal model must include
effective statistical process for validating the internal model which
domestic insurance undertaking or domestic reinsurance shows Czech National Bank
that the internal model set resulting capital requirements are
appropriate according to § 74 para. 2 and 3 of the insurance Act.

(3) Verifying under paragraph 2 of the home insurance or reinsurance domestic
statistical methods tested for suitability probability distribution forecast
towards

A) he claims experience and

B) any other significant new data and related information.

(4) The process of validating the internal model must include an analysis
its stability, especially susceptibility testing results
internal model to changes in key assumptions. It must also include an assessment
accuracy, completeness, suitability and reliability of data used in
internal model.

§ 14

Documentation standards of the internal model

(1) Home insurance or reinsurance domestic
documents in some detail the construction of its model and its functioning.

(2) Documentation must demonstrate compliance with the requirements set out in § 73 paragraph
. 3 and § 78 par. 3 of the Insurance Act and § 9 to 13

(3) The documentation must include a description of the theory, assumptions and
mathematical and empirical basis underlying the internal model.

(4) The documentation should include the circumstances under which the internal model does not work properly
.

(5) Home insurance or reinsurance domestic
documents all major changes to their internal model.

§ 15

Implementing measures for the internal model

Method of meeting the requirements of § 9-14, requirements for external

Models and data, attribution of profits and losses, and a way of integrating
partial internal model to the standard formula for the calculation of the Solvency Capital Requirement
governed by a directly applicable regulation
European Union governing the calculation of the Solvency Capital Requirement through
internal model or partial internal model.

§ 16

Internal models for the insurance company from a third country or reinsurance undertaking from a third country


Provisions of § 9-15 shall apply mutatis mutandis for the insurance company from a third country
or reinsurance undertaking from a third country in relation to the liabilities from insurance or reinsurance activities
operating in the Czech Republic.
PART THREE


RULES FOR CALCULATING group solvency

§ 17
General


(1) When the group solvency calculation take into account the person undertaking
according to § 89c paragraph. 1 of the Insurance Act (hereinafter "
responsible person") proportional share held in affiliated entities. A pro rata share is determined as


A) the percentages used for the preparation of consolidated accounts in accordance
directly applicable EU regulations governing the calculation of the group solvency
if the person responsible is used for calculating the group solvency
method of accounting consolidation, or

B) the sum of direct and indirect participation of the responsible person in the share capital
affiliates if the responsible person uses
group solvency calculation method for deducting the aggregated data.

(2) If any of the controlled undertakings, or use
capital is lower than the Solvency Capital Requirement is used when
group solvency calculation, the total solvency deficit of such
insurance or reinsurance, not just pro-rata share.

(3) If the responsibility or liability of the person responsible for the obligations
controlled by the undertaking and unambiguously limited by
of the share capital of the controlled entity, after approval
Czech National Bank, je- If the group supervisor, after
consultation with other supervisory authorities within the college
possible when the group solvency calculation take into account the discrepancy between the amount
eligible capital and SCR controlled this
insurance or reinsurance relative share.

§ 18

Prohibition of multiple use of capital

(1) When calculating the group solvency is excluded reusable items
capital to cover its Solvency Capital
requirements by different people in the same group.

(2) For the purposes of paragraph 1, the group solvency calculation excludes the value of assets


A) insurance or reinsurance undertakings, which are used to finance items
capital to cover its Solvency Capital Requirement her
related insurance or reinsurance

B) a related insurance or reinsurance undertakings, which are used to finance items
capital to cover its Solvency Capital Requirement
insurance or reinsurance, to which it holds
participation or other insurance or reinsurance undertaking of the insurance
or reinsurance undertaking.

(3) to cover the group Solvency Capital Requirement may be used


A) surplus funds in accordance with § 65 of the Insurance Act
insurers operating activities by the life insurance industry
listed in Part A of the Annex no. 1 to the Insurance Act or
undertaking conducting business in life reinsurance affiliates
responsible person and

B) subscribed but not paid-up capital of the insurance or reinsurance
affiliated person responsible,

And in the extent to which these items are useful to cover
Solvency Capital Requirement of the related insurance or reinsurance
. This is without prejudice to the provisions of paragraphs 1, 2 and 4.

(4) to cover the group Solvency Capital Requirement not use


A) subscribed but not paid-up capital which represents a commitment
insurance or reinsurance undertaking

B) subscribed but not paid-up capital
insurance or reinsurance undertaking which represents a commitment related insurance or reinsurance
or


C) subscribed but not paid-up capital of a related insurance or reinsurance
which represents a commitment to another insurance or reinsurance
associated with that insurance or reinsurance undertaking.

(5) If the competent supervisory authority decides that any of the other
capital items related insurance or reinsurance is not applicable
to cover the Solvency Capital Requirement
insurance or reinsurance undertaking in the related insurance or reinsurance involvement,
may be the value of the items included in the funds to cover
group Solvency capital requirement only to the
amount to which these items are useful to cover
Solvency capital requirement of the related insurance or reinsurance.

(6) The total value of the applicable items listed in the capital
paragraphs 3 and 5 shall not exceed the Solvency Capital Requirement
the related insurance or reinsurance.

(7) Items funds to cover the Solvency Capital Requirement
related insurance or reinsurance
subject to prior approval by the supervisory authority of the home Member State, can be used to cover
group Solvency Capital Requirement,
only if they have been approved by the supervisory authority.

§ 19

Excluding mutual funding

For group solvency calculation can not take into account any item
eligible capital, which arose from mutual funding between
persons belonging to the same group. Mutual financing means
situation where the undertaking or its affiliated
person directly or indirectly holds an interest in an entity that directly or indirectly holds
items usable capital to cover the Solvency Capital Requirement of that insurance
or reinsurance, or the person providing
loans.

§ 20

Method of accounting consolidation

(1) The calculation of the group solvency using the method of accounting consolidation
based on the consolidated accounts. Group solvency is determined as the difference between


A) own funds to cover
group Solvency Capital Requirement determined from the consolidated accounts and

B) group Solvency Capital Requirement calculated from
consolidated accounts.

(2) Group Solvency Capital Requirement, calculated from the consolidated accounts
shall not be less than the sum

A) the Minimum Capital Requirement responsible person and

B) the relative amount of the minimum capital requirement associated
insurance or reinsurance undertakings included in the calculation.

(3) At group level shall be a primary capital amounting
according to § 71 para. 4 of the Insurance Act at least equal to the sum
according to paragraph 2. The provisions of § 89c paragraph. 4 and 5 and § 89d to 89 g
Law on insurance and § 17-19, for the purposes of determining the applicable
capital in the first sentence shall apply mutatis mutandis.

§ 21

Deduction method aggregate data

(1) Group solvency is calculated by deducting the aggregate data
determined as the difference between

A) the sum of the capital stock pursuant to paragraph 2

B) the sum of the carrying value of the share capital items and the person responsible for
associated insurance, reinsurance or insurance holding entity
to the balance sheet date and the aggregate
Solvency Capital Requirement in accordance with paragraph 3.

(2) Sum of eligible capital equals the sum

A) funds to cover the Solvency Capital Requirement
responsible person and

B) the proportional share of the responsible person in the capital
related insurance or reinsurance to cover its Solvency Capital Requirement
the related insurance or reinsurance.

(3) The aggregate solvency capital requirement is equal to the sum

A) the Solvency Capital Requirement responsible person and

B) the proportional share of the Solvency Capital Requirement of the related insurance or reinsurance
.

(4) Where the participation on related insurance or reinsurance
fully or partially in an indirect shareholdings in the items referred to in paragraph 1
point. b) shall incorporate the value of indirect participation with regard to
relevant successive interests, and items pursuant to paragraph 2. b) and

Para 3. b) shall include the corresponding proportional shares of the applicable
capital related insurance or reinsurance undertakings and shares
Solvency Capital Requirement of the related insurance or reinsurance
.

§ 22

Implementing measures for the group solvency

Principles and methods for calculating group solvency
group Solvency Capital Requirement and eligible own funds to cover its
according to § 17 to 21 are governed by a directly applicable regulation
European Union governing the calculation of the group solvency.
PART FOUR


Scope, manner and deadlines for disclosure of information

§ 23

Data that domestic insurance undertaking or domestic reinsurance publishes
about themselves, about their shareholders or members and the group to which it belongs, their
structure and the order in which states specified in Annex no. 3 to this | || Decree.

§ 24

(1) Home insurance or reinsurance domestic
publishes required information on its website is always at least in the Czech language in the form
unlocked data file download in an appropriate and
commonly used format, in * .pdf, * .doc, * .docx or * .odt. Here
contained figures are published also in an additional dataset
in a suitable and commonly used format, in * .xls, * .xlsx, or .ods *.
Figures under the second sentence refers to the content of financial statements, especially
balance sheet and profit and loss account under the laws governing
insurance accounting.

(2) Requirements for the method of publication of information pursuant to paragraph 1
on 31 December of the calendar year shall be considered fulfilled also publishes
If the domestic insurance undertaking or domestic reinsurance directly in the performance of duties
which has such an entity or issuer of listed securities
in an annual report or consolidated annual report
within a period to § 25 paragraph. 1st

(3) Home insurance or reinsurance domestic
publishes on its website at the same time the annual report and consolidated annual report
, if he holds a domestic insurance undertaking or domestic reinsurance
obligation to prepare, at least for the last 3 previous financial year.

(4) Home insurance or reinsurance domestic
publishes the information referred to in paragraph 1 on its website so that
accessible on one page with information uveřejňovanými by
directly applicable EU regulations governing disclosure | || information under the collective title "Compulsory published information".

§ 25

(1) Home insurance or reinsurance domestic disclose information according
§ 23 as of the date

) 31 March, 30 June and 30 September to 6 weeks after the end of the relevant calendar quarter
,

B) 31 December to 4 months after the end of the calendar year.

(2) Home insurance or reinsurance domestic
publishes quarterly data along with data for the previous three quarters.

(3) Simultaneously with the publication of data under paragraphs 1 and 2 shall
domestic insurance undertaking or domestic reinsurance date when the data were published, as well
state the date of completion or correction of already published data.

§ 26

(1) The provisions of § 23-25 ​​shall apply mutatis mutandis for the insurance company from a third country or reinsurance
from a third country in relation to the insurance or reinsurance activities
operating in the Czech Republic.

(2) In relation to the overall extent of the insurance company from a third country or
reinsurance from a third country, the scope of the information disclosed is limited to
point 1. a), point 2 and point 4 point. a) to e) of Appendix.
3 to this Decree and the annual report provides an obligation of
copy of that third country with the following information publicly disclosed by
§ 25 paragraph. 1 point. b).

(3) An insurance undertaking from a third country or a third country reinsurance
publishes information accordingly by the directly applicable European
Union, which provides a report on the solvency and financial condition, in relation to
insurance or hedging activities carried on within
Czech Republic.
PART FIVE


DISCLOSURE OF THE CZECH NATIONAL BANK INSURANCE COMPANY OF THIRD COUNTRY
or reinsurance undertaking from a third country

§ 27


Insurance company from a third country or a third country reinsurance presents
Czech National Bank information by analogy directly applicable
European Union, which governs the submission of regular reports to the authorities
supervision and report to supervisors on their own risk assessment and
solvency in relation to insurance or reinsurance
operating in the Czech Republic.
PART SIX


Compensatory adjustments riskless YIELD CURVE

§ 28

Disclaimer compensatory adjustments risk-free yield curve

(1) Balancing risk-free yield curve adjustment pursuant to § 54b paragraph. 1
Insurance Act can be used if

A) domestic insurance undertaking or domestic reinsurance
allocated portfolio of assets consisting of bonds or other financial instruments with similar characteristics
cash flows (hereinafter referred to as "portfolio of assets assigned
") intended to cover the value of best estimate of the portfolio liabilities, which will be
calculating best estimate used compensatory adjustment
risk-free yield curve (hereinafter referred to as "portfolio allocated
liabilities")

B) domestic insurance undertaking or domestic reinsurance maintains
composition of the portfolio of assets assigned for the duration of the relevant commitment with
except where the modification of the composition of the portfolio necessary to preserve
replication of expected cash flows from
assets and liabilities under d) in the case of a significant change in the cash flows,

C) identify, organize and manage a portfolio of assets and portfolio assigned
earmarked commitments are carried out separately from other activities
home insurance or reinsurance domestic and portfolio assigned
assets can not be used to cover losses arising from
other activities, home insurance or domestic reinsurance

D) the expected cash flows from the portfolio of assets allocated
replicate all individual cash flows from the portfolio earmarked
liabilities in the same currency and risks of any discrepancy
those cash flows are insignificant given the risks | || connected with the activities of domestic insurance or reinsurance domestic, to which
compensatory adjustment applies

E) the insurance and reinsurance contracts portfolio allocated liabilities
not receive any future payments of premiums,

F) in connection with the underwriting risk portfolio is allocated liabilities
only exposed to longevity risk, cost risk, the risk of revision and
risk of mortality

G) contains an underwriting risk arising from the portfolio earmarked
liabilities, the risk of mortality, the best estimate of the value of this portfolio
as a result of the application úmrtnostního shocked by
directly applicable EU regulations governing the calculation
SCR module
life underwriting risks calibrated in accordance with § 74 of the insurance Act
not increase by more than 5% of its original value

H) insurance contracts portfolio allocated liabilities include no
option for policyholders; the right to surrender may be part of the insurance contract
only if they do not exceed the amount of the surrender value of the assets
awarded pursuant to § 51 of the Insurance Act intended to cover this
commitment at the time of exercising the right to surrender, || |
I) cash flows from the portfolio allocated to fixed assets are determined and
issuer nor any third party has the right to change or otherwise modify
and

J) obligations arising from one insurance or reinsurance contracts are
apart when compiling a portfolio allocated liabilities are separated.

(2) Condition immutability of cash flows under paragraph 1. i)
is deemed to be met if the home insurance or reinsurance for domestic
assigned portfolio of assets will use assets from which
resulting cash flows are the exception, depending on inflation
firmly established and at the same time by paragraph 1 point. d)
replicate the cash flows arising from the portfolio earmarked commitments depend on inflation.

(3) The right of the issuer or a third party to change the cash flows of
assets contained in the portfolio assigned to the asset does not breach the conditions
for compensatory adjustments under paragraph 1. i) in the case
this right includes compensation to allow domestic insurance or

Domestic reinsurance receive the same cash flow reinvestment in assets
same or higher credit quality.

§ 29

Compensatory adjustments Determining the risk-free yield curve

(1) For each currency, the compensatory adjustment of the risk-free yield curve is the difference


A) the annual effective interest rate expressed as a single discount rate
whose application to cash flows from a portfolio of dedicated liabilities
results in a value that is equal to the value assigned to the portfolio of assets valued
according to § 51 of the insurance, and

B) the annual effective interest rate expressed as a single discount rate
whose application to cash flows from a portfolio of dedicated liabilities
leads to a value that is equal to the best estimate of the portfolio allocated
obligations calculated in accordance with § 53 of the insurance
.

(2) Compensatory adjustment does not take into account the basic ranges risks
that the domestic insurance undertaking or domestic reinsurance leaves (hereinafter
"basic range").

(3) Home insurance or reinsurance domestic basic margin increased
so that balancing adjustment arising from holding assets with finite useful to
maturity and type with a credit rating lower than investment grade
was no more than compensatory adjustments resulting from holding assets
with the same maturity, the same type as
investment grade credit ratings.

(4) Home insurance or reinsurance domestic
used for the purposes of determining the amount of compensatory adjustments external credit ratings manner
which is in accordance with applicable regulations of the European Union
governing the use of external credit ratings.

(5) The range referred to in paragraph 2 shall be determined as the sum

A) credit spread corresponding to the probability of failure of assets
whose calculation is based on long-term credit default
statistics relevant to the assets in question, given the time to maturity,
credit quality and type of such assets, and | ||
B) credit spread corresponding to the expected loss arising from the reduction in credit ratings
assets.

(6) If it is not possible to determine credit spreads in accordance with paragraph 5 shall be used in calculating basic
span procedure in paragraph 7 or paragraph 8
depending on the type of exposure.

(7) In the case of exposures to the central government and the central bank of the Member State responsible
basic range, according to paragraph 2 of at least 30% of the value
long-term average margin observable on financial markets
derived from assets with the same period in maturity, credit quality and type
due to the risk-free yield curve.

(8) In the case of exposures to entities other than in accordance with paragraph 7
corresponds to the basic range, according to paragraph 2 of at least 35% of the value
long-term average margin observable on financial markets
derived from assets with the same maturity , credit quality and type
due to the risk-free yield curve.

§ 30

Compensatory adjustments for the insurance company from a third country or reinsurance from a third country


The provisions of § 28 and 29 shall apply mutatis mutandis to insurance from a third country
or reinsurance undertaking from a third country in relation to the liabilities from insurance or reinsurance activities
operating in the Czech Republic.
PART SEVEN


EVALUATION OF SENSITIVITY technical provisions and eligible capital

§ 31

(1) Home insurance or reinsurance domestic
conducts an evaluation of the sensitivity of technical provisions and eligible capital
least quarterly.

(2) Home insurance or reinsurance domestic
evaluates the sensitivity of technical provisions and capital stock, especially a change in the amount
technical provisions and own funds is due to changes in used
data or parameters, on the basis of realistic and appropriate assumptions
and corresponding methods. This evaluation is also assessing the suitability
and the reasonableness of such assumptions and methods.

§ 32

Insurance company from a third country or a third country reinsurance
proceed in relation to the liabilities of insurance or reinsurance activities
operated in the Czech Republic according to § 31 mutatis mutandis.
PART EIGHT


Reports on other verifications carried AUDITOR

§ 33

Report on the management and control system


(1) Report on the management and control system includes

A) the result of verification, whether the control system or part
in accordance with legal requirements, including the evaluation of its functionality and effectiveness
and

B) determining the identified deficiencies, including inadequate specifications or missing
management or control mechanisms.

(2) The structure and other elements of the verification
management and control system laid down in Annex no. 4 hereto. If orders
Czech National Bank verification of the management and control system
used for sktrukturu news annex no. 4 hereto
appropriately.

(3) The statutory auditor in a report under paragraph 1 of data on its
person, registration number, signature and date of preparation of this report.
Auditing company in the report referred to in paragraph 1 shall provide particulars about their
person, registration number and the name of the statutory auditor, the audit firm for
drew up the report, its registration number,
his signature and the date of issue of this news. In the report referred to in paragraph 1
always give particulars of the undertaking for which the verification
done.

Report on the disclosed information in the report on solvency and financial condition


§ 34

(1) The terms and structure of the verification report published information
report on the solvency and financial condition laid down in Annex no. 5 to this Decree
. Ordered by the Czech National Bank verify only a defined group
information will be used for sktrukturu news annex no. 5 to this Decree
appropriately.

(2) Statutory auditor in a report under paragraph 1 of data on its
person, registration number, signature and date of preparation of this report.
Auditing company in the report referred to in paragraph 1 shall provide particulars about their
person, registration number and the name of the statutory auditor, the audit firm for
drew up the report, its registration number,
his signature and the date of issue of this news. In the report referred to in paragraph 1
always give particulars of the undertaking for which the verification
done.

§ 35

(1) If orders the Czech National Bank disclosed information to verify
applicable capital of the report is in accordance with § 34 para. 1
result of the assessment of its determination, structure and usability in accordance with § 71 of the Law on Insurance
due to the limits of the capital under the laws governing
capital requirements of the domestic insurance undertaking or domestic reinsurance
including the directly applicable European Union regulations. In the case
domestic home insurance or reinsurance undertaking subject to supervision
group of the report is also the result of an assessment whether there is multiple use items
own funds at group level.

(2) orders the Czech National Bank if disclosed information to verify
Solvency Capital Requirement calculated in accordance with the standard formula
includes report under § 34 para. 1 of the assessment
correctness of the calculation and even if they were used in the calculation
parameters specific to that undertaking.
In relation to the Solvency Capital Requirement calculated
through full or partial internal model includes
report pursuant to § 34 para. 1 of the assessment of whether the model used in
compliance with permit conditions and in accordance with legislation
Solvency capital requirement home insurance or reinsurance domestic
.

(3) orders the Czech National Bank if disclosed information to verify
Minimum Capital Requirement includes a report pursuant to § 34 para. 1
result of the assessment of its calculation with respect to regulations governing minimum capital requirement
home insurance or reinsurance domestic
.

(4) As part of the verification report disclosed information says
auditor, whether the information which is subject to verification, in all material respects
in accordance with the laws
valuation of assets and liabilities, technical reserves, investments and solvency
home insurance or reinsurance domestic and whether they contain important
factual misstatements.

§ 36

Report on the disclosed information in the report on solvency and financial condition
by the undertaking from a third country


The provisions of § 33-35 shall apply mutatis mutandis for the insurance company from a third country
or reinsurance undertaking from a third country in relation to the insurance or reinsurance activities
operating in the Czech Republic.
PART NINE


WAY determining remuneration and cash expenses conservator,
his representative and the liquidator AND METHOD OF THEIR PAYMENTS

§ 37

Determination of the remuneration of the forced administrator of home insurance or reinsurance domestic
and his deputy

(1) Forced Administrator home insurance or reinsurance domestic
entitled to a monthly remuneration amounting

A) 75 000 CZK, if the equity value home insurance
or domestic reinsurance increased by the value of assets held to cover
technical provisions under the law governing accounting
insurance does not reach 100 million CZK, || |
B) 100,000 CZK, if the equity value home insurance
or domestic reinsurance increased by the value of assets held to cover the technical provisions
under the laws on insurance accounting
reaches at least 100 million CZK, but less than 1 billion CZK
,

C) 125,000 CZK, if the equity value home insurance
or domestic reinsurance increased by the value of assets held to cover
technical provisions under the law governing accounting
insurance amounts to at least 1 billion CZK, but less than 10 000 000
000 CZK or

D) 150,000 CZK, if the equity value home insurance
or domestic reinsurance increased by the value of assets held to cover
technical provisions under the law governing accounting
insurance amounts to at least 10 billion CZK.

(2) representatives of the trustee includes proportionate part of the remuneration referred to in paragraph 1
, a number of reasonably efficiently and reasonably conducted operations
related activities representative proven Czech National Bank.
For the purposes of approval, the amount of remuneration, the representative of the Czech National Bank
later than 30 days after the end of the calendar month for which the fee is to be paid
, a list of operations conducted.

(3) For purposes of determining the amount of remuneration referred to in paragraph 1 shall be the latest known
equity value home insurance or reinsurance and domestic
last known value of the assets intended to cover technical
reserves under legislation governing accounting
insurance before that, before Czech national Bank decided to introduce its receivership.
The trustee will submit this information to the Czech National Bank, within 10 days
end of the calendar month for which the fee is payable.

§ 38

Method of payment of remuneration trustee home insurance or reinsurance domestic


(1) Remuneration trustee home insurance or reinsurance domestic
is due back in a calendar month, by the end of the following calendar month
after proving decisive
data for determining its amount according to § 37 paragraph. the reward is the third representative
payable retrospectively for the calendar month within 3 months from the date of submission of the list
acts performed pursuant to § 37 para. 2nd

(2) If the forced administrator domestic home insurance or reinsurance
ceased trading during a calendar month, he is entitled to for this month
proportional part of his remuneration corresponding to the ratio of the number of working days, during which he exercised
activity forced administrator, and the total number
working days of the calendar month in which they ceased trading.
This is without prejudice to the provisions of § 37.

§ 39
Determination of the remuneration of the liquidator


(1) The basis for determining the amount of remuneration of the liquidator home insurance,
domestic reinsurance, insurance branch from a third country or branches
reinsurance from a third country for carrying out the liquidation (hereinafter referred to as "base")
's value the liquidation of assets; base increases

A) one tenth of the value of the assets to cover technical provisions
under the laws on insurance accounting for commitments of
insurance or reinsurance activities, if there is a transfer of insurance
strain of these commitments, and || |
B) the value of assets held to cover technical provisions under the law
regulations governing insurance accounting for liabilities from insurance or reinsurance
activities that were not transferred to another insurance or reinsurance
.


(2) The liquidator, a fee in the amount

A) 50 000 CZK increased by 1% from the base when the base is
maximum of 10,000,000 CZK,

B) 150,000 CZK increased by 0.3% from the difference between the base and 10 000
000 CZK if the base does not exceed 100 million CZK,

C) 420 000 CZK plus 0.07% of the difference between the base and 100
000 000 CZK if the base is not more than 1 billion CZK,

D) 1,050,000 CZK plus 0.01% of the difference between the base and 1,000
000 000 CZK if the base does not exceed 10 000 000 000 CZK, or

E) 1,950,000 CZK plus 0.001% of the difference between the base and 10
000 million CZK in case the base is more than 10 billion CZK.

(3) insufficient when liquidating assets wholly or partly to reward
liquidator home insurance, domestic reinsurance branches
insurance from a third country or reinsurance branches of third country
pays this fee liquidator stand the extent to which it can not be
paid from the liquidation of assets, up to a maximum of 150 000 CZK for the whole period
liquidation, the liquidator who received unsatisfactory due to the liquidation of assets
reward.

(4) For the purposes of determining the basis referred to in paragraph 1 shall apply
value of the assets held to cover technical provisions under the law governing insurance accounting
, determined from the opening balance sheet date of entry
home insurance, domestic reinsurance, insurance branch
from a third country or a reinsurance branch from a third country into liquidation.

(5) On cessation of liquidation before the liquidation value is encountered
property belonging liquidator reward in the amount of CZK 25 000. In the event that a liquidator has performed
portfolio transfer increases the royalty
procedure in paragraph 2 that the basis used tenth
value of the assets to cover technical provisions in accordance with legal regulations
governing insurance accounting for liabilities from insurance or reinsurance activities
detected from the opening balance sheet at the date of entry
home insurance, domestic reinsurance, insurance branch from a third country or branches
reinsurance from a third country into liquidation. For her
payment to § 40 shall apply mutatis mutandis.

§ 40

Manner of payment of remuneration of the liquidator

(1) the remuneration payable to the liquidator is due within 30 days of the cancellation
home insurance, domestic reinsurance, insurance branch of
third country or reinsurance branches of third country of incorporation, or 30
days from the date of entry into force of the decision on bankruptcy
domestic insurers, domestic reinsurance, insurance branch from a third country
branch or reinsurance undertaking from a third country.

(2) If you participated in the liquidation of domestic insurance companies, domestic
reinsurance, insurance branch from a third country or reinsurance
branches of third country progressively more liquidators, belongs to each of them
proportion of remuneration in accordance with § 39 corresponding to the length of their activities, their complexity and difficulty
a number efficiently and reasonably related to the operations conducted
their activities.

(3) For the purposes of determining the remuneration of the liquidator shall submit to the Czech National Bank information


A) the amount of the proposed remuneration of the liquidator,

B) the amount of the liquidation of assets and

C) the course and outcome of a possible transfer of the insurance portfolio or its
part or reinsurance portfolio or its part.

(4) The information referred to in paragraph 3, the liquidator of the Czech National Bank
later than 30 days before convening a general meeting which is to decide on the draft
liquidation distribution, or 30 days before submitting the proposal to the deletion of
Commercial register if the General Assembly can take place
.

§ 41

Cash expenses of the liquidator, conservator and his deputy

(1) The liquidator, forced administrator and his deputy is entitled to compensation
cash expenditures in particular judicial and other fees, travel expenses, postage
, telecommunication charges, expert reports and
statements, translations, transcripts and photocopies which were purposeful and
reasonably incurred in connection with the liquidation of home insurance, domestic
reinsurance, insurance branch from a third country or a reinsurance branch
from a third country or in connection with the receivership domestic insurers
or domestic reinsurance.


(2) To determine the amount of reimbursement of travel expenses paid labor code
analogy.

§ 42

The manner of payment of compensation cash expenditure of the forced administrator and his deputy

Cash expenses shall be reimbursed in proven amount for each month when their
release occurred. Compensation of cash expenditures worth of property
domestic insurance or reinsurance domestic after with practicality and substantiation
spending cash expenses Czech National Bank agreed.
Czech National Bank sends a statement to the submitted bill forced
administrator or his representative without delay.

§ 43

Payment of reimbursement of cash expenses of the liquidator

(1) Finished expenses are paid in proven amount for each month, when the
their release occurred. Compensation of cash expenditures pays off in the liquidation of assets
home insurance, domestic reinsurance, insurance branch of
third country or reinsurance branches of third country after the
expediency and substantiation of spending cash expenses Czech National Bank
He agreed. Czech National Bank sends a statement to the submitted bill
liquidator without undue delay.

(2) insufficient if liquidating the assets of home insurance, domestic
reinsurance, insurance branch from a third country or a reinsurance branch
from a third country to the reimbursement of cash expenses liquidator pays
these expenses up to the amount what can not be paid from the liquidation of assets
happen, however, the maximum total amount of CZK 300 000 for expenditure referred to in § 41 paragraph
. 1. Compensation shall be paid within 30 days after the effectiveness and substantiation
spending cash expenses Czech National Bank has agreed, paragraph 1
first sentence shall apply mutatis mutandis. Czech National Bank sends a statement to the bill submitted
liquidator without undue delay.

§ 44

Increase in remuneration of the forced administrator or his representative and the liquidator

Remuneration of the liquidator or trustee in accordance with § 37 para. 1 and § 39 paragraph
. 2 may be increased by the Czech National Bank by up to 100% that
reason to increase rewards are extraordinary complexity, intensity, duration
their activities, or extremely efficiently and reasonably
conducted operations associated with their activities.
PART TEN


COMMON, TRANSITIONAL AND FINAL PROVISIONS

§ 45

Editing parameters of the standard formula for the Solvency Capital Requirement


(1) Exposure to central governments and central banks of the Member States are
until 31 December 2017 for the purpose of calculating the capital requirement for
risk concentration of market risk and credit spread risk by
directly applicable European Union regulating their calculation
considered risk-free even if they are formulated and funded
in the currency of another Member State other than the currency of the relevant Member State
.

(2) parameters to calculate capital requirement for
risk concentration and credit spread risk by
directly applicable EU regulations governing the calculation of exposures to
central governments and central banks of the Member State denominated in
a Member State other than the currency of that country for the purpose
calculating the Solvency capital requirement standard formula through


A) for 2018 decreased by 80% in value determined
directly applicable EU regulation governing the calculation of the Solvency Capital Requirement and


B) for 2019 decreased by 50% in value determined
directly applicable EU regulation governing the calculation of the Solvency Capital Requirement
.

(3) From 1 January 2020 for the purpose of calculating the Solvency Capital Requirement
to concentration risk and market risk, credit risk
spread through the standard formula used untreated
parameters laid down by the directly applicable EU regulation || | governing the calculation of the Solvency capital requirement.

§ 46

Edit Parameters sub-module equity risk

(1) All shares that were 1 January 2016
owned domestic insurance undertaking or domestic reinsurance as a parameter for calculating
capital requirement for equity risk in point 4. b) Annex
No. 1 hereto uses a weighted average


A) equity risk sub-module parameter takes into account the long-term
obligations laid down by the directly applicable EU regulation
governing the calculation of the Solvency Capital Requirement and

B) parameter set directly applicable EU regulation for
calculating the capital requirement for equity risk by
directly applicable EU regulations governing the calculation
SCR.

(2) Weighted average according to paragraph 1 is set so that the weight parameter
pursuant to paragraph 1. b) as from 1 January 2017
annually growing at least linearly, so that its share amounted to January 1, 2023 of 100%.

§ 47

Information published in accordance with Decree no. 434/2009 Coll.

Home insurance, domestic reinsurance or insurance branch of
third country or a branch of a reinsurance from a third country which operates
insurance or reinsurance business in the Czech Republic, leaving
data published by Decree no. 434 / 2009 Sb.
on its web site fully accessible even after the effective date of this decree, and it
for at least the next 3 years.

§ 48

Transitional provision for remuneration

To determine the amount of remuneration, method of their payment and reimbursement of cash expenses
liquidator or forced administrator and his deputy, who was
appointed or appointed before the effective date of this decree, the
proceed under the existing legislation .
PART ELEVEN



EFFICIENCY
§ 49

This Decree shall take effect on the date of its publication.
Governor
:

Pp. Prof. PhDr. Ing. Tomšík, Ph.D., vr
Vice Governor



Příl.1
Structure risk modules calculating basic
Solvency Capital Requirement standard formula

First Non-life underwriting risk module under § 3 para. 1 point. a)
captures the risk arising from commitments concerning
non-life insurance in connection with podstupovanými risks and procedures used
conduct of business. This module takes into account the uncertainty of the results of domestic
domestic insurance or reinsurance undertakings related to the existing
treaties and the Treaties on which the domestic insurance undertaking or domestic reinsurance
expected to be closed within the next 12 months
. Non-life underwriting risk module consists at least of these
risk sub-modules and sub-modules, or other risky
provided directly applicable EU regulation governing
calculation of the SCR

A) the risk of loss or of adverse change in the value of insurance liabilities
resulting from fluctuations in the timing, frequency and severity of insured events
and the timing and amount of damage (risk premiums and technical
reserves in non-life insurance) and || |
B) the risk of loss or of adverse change in the value of insurance liabilities
resulting from the significant uncertainty of assumptions in determining the tariffs
premiums and technical provisions associated with
extraordinary or extreme events (catastrophic risk
life insurance).

Second Life underwriting risk module under § 3 para. 1 point. b)
captures the risk arising from commitments concerning
life insurance in connection with podstupovanými risks and procedures used
conduct of business. Life underwriting risk module consists least
risk of these sub-modules and sub-modules, or other risky
provided directly applicable EU regulation governing
calculation of the SCR

A) the risk of loss or of adverse change in the value of insurance liabilities
arising from changes in the level, trend or volatility of mortality rates, where
increase in the mortality rate leads to an increase in the value of insurance liabilities
(mortality risk in life insurance) ,

B) the risk of loss or of adverse change in the value of insurance liabilities
arising from changes in the level, trend or volatility of mortality rates, where
mortality rate leads to an increase in the value of insurance liabilities
(longevity risk in life insurance) ,

C) the risk of loss or of adverse change in the value of insurance liabilities
arising from changes in the level, trend or volatility of disability,
sickness and morbidity rates (risk of disability or job

Disability and morbidity in life insurance)

D) the risk of loss or of adverse change in the value of insurance liabilities
arising from changes in the level, trend or volatility of the expenses incurred
in servicing insurance and reinsurance contracts (life-expense risk insurance
)

E) the risk of loss or of adverse change in the value of insurance liabilities
resulting from fluctuations in the level, trend or volatility of the revision rates applied to annuities
which are caused by the changes in the legal environment
or health condition of insured persons (risk
revision in life insurance)

F) the risk of loss or of adverse change in the value of insurance liabilities
arising from changes in the level or volatility of cancellations, terminations,
renewals and purchase of insurance contracts (lapse risk in life insurance
) and | ||
G) the risk of loss or of adverse change in the value of insurance liabilities
resulting from the significant uncertainty of assumptions in determining the tariffs
premiums and technical provisions associated with
extraordinary or extreme events (catastrophe risk in life || | insurance).

Third Health underwriting risk module under § 3 para. 1 point. c)
captures the risk arising from commitments concerning
health insurance in connection with podstupovanými risks and processes used in the conduct of business
regardless if the health insurance
pursued on a similar technical basis to
life insurance or not. Health underwriting risk module consists at least of these
risk sub-modules and sub-modules, or other risky
provided directly applicable EU regulation governing
calculation of the SCR

A) the risk of loss or of adverse change in the value of insurance liabilities
resulting from fluctuations in the timing, frequency and severity of insured events
and the timing and amount of claims settlement,

B) the risk of loss or of adverse change in the value of insurance liabilities
arising from changes in the level, trend or volatility of the expenses incurred in servicing insurance
health insurance contracts and related hedging contracts and


C) the risk of loss or of adverse change in the value of insurance liabilities
resulting from the significant uncertainty of assumptions in determining the tariffs
premiums and technical provisions associated with
outbreaks of major epidemics, as well as the unusual accumulation of risks | || under these extreme circumstances.

Fourth The market risk module under § 3 para. 1 point. d) captures
risk arising from the level or volatility of market prices of financial instruments
which affect the value of assets and liabilities of domestic insurance and reinsurance domestic
. This module shows the proper way
structural mismatch between assets and liabilities, in particular in terms of their duration.
Risk module market consists at least of these risk sub-modules and possibly other
risk sub-modules provided directly applicable regulation
European Union governing the calculation of the Solvency Capital Requirement

A) the sensitivity of the values ​​of assets, liabilities and financial instruments to changes
yield curves or volatility (interest rate risk)

B) the sensitivity of the values ​​of assets, liabilities and financial instruments to changes
level of stock market prices or volatility (equity risk)
including symmetric adjustment parameters equity risk sub-module
taking into account risks arising from changes in share prices pursuant to section 6 of this Annex
,

C) the sensitivity of the values ​​of assets, liabilities and financial instruments to changes in the level of market prices
immovable property or their volatility (property
risk)

D) the sensitivity of the values ​​of assets, liabilities and financial instruments to changes
levels of credit spreads or volatility relative to the risk-free yield curve
(credit spread risk)

E) the sensitivity of the values ​​of assets, liabilities and financial instruments to changes
level of market exchange rates or volatility (
currency risk) and

F) additional risks arising from lack of diversification
asset portfolio or from excessive exposure to risk failure
against a single issuer of securities or a group of affiliated
issuers (market risk concentrations).

Fifth Counterparty default risk module under § 3 para. 1 point. E)

Captures the potential losses in the coming 12 months, arising from the credit
unexpected failure or deterioration in the credit ratings of counterparties and borrowers
home insurance or domestic reinsurance.
Counterparty default risk module covers the legal proceedings concerning the
risk mitigation techniques such as hedging contracts
securitization and derivative contracts on receivables
intermediaries, as well as any other credit exposures, which are not covered
risk sub-module credit spreads. This module
properly reflects the security held by domestic insurance and reinsurance
domestic or for the account and risk associated with it. The default risk module
counterparty into account the size of the overall exposure to domestic
domestic insurers and reinsurance exposed to the risk of credit default
counterparty to each counterparty, whatever its legal form
contractual obligations to domestic insurance and reinsurance domestic .

6th Calibration symmetric adjustment parameters equity risk sub-module
in point 4. b) is performed in accordance with § 74 para. 3 of the
insurance to cover the risk arising from changes in stock prices.


Příl.2
Correlation coefficients for calculating the Basic Solvency Capital Requirement

Non-life Life Health Market risk exposure
subscription subscription subscription counterparty risk
risk, credit risk

Non 1 0 0 0.25 0.5 underwriting risk


Life 0 1 0.25 0.25 0.25
subscription

risk
Health 0 0.25 1 0.25 0.25
subscription

risk
Market risk 0.25 0.25 0.25 1 0.25

The risk of failure 0.5 0.25 0.25 0.25 1
counterparty


Příl.3
Data on the domestic insurance undertaking or domestic reinsurance
of its shareholders or members and the group of which it is part

I. Data on the domestic insurance undertaking or domestic reinsurance:

First business name, legal form, registered address and identification number
home insurance or reinsurance by domestic entry in the commercial register
,

Second date of registration of home insurance or reinsurance domestic
into the commercial register and the date of last change, indicating the purpose
recent changes

Third the amount of the share capital registered in the Commercial Register

Fourth the amount of paid-up capital,

Fifth the type, form, and the number of issued shares, indicating their
nominal value if the home insurance or reinsurance
domestic joint-stock company,

6th on acquisition of own participating securities, specifying the type,
form, shape and number when the domestic insurance undertaking or domestic reinsurance
stock company,

7th an increase in capital, the share capital has been increased since the last publication


A) the manner and extent of the increase in capital,

B) if the new shares issued, home insurance or reinsurance domestic
publishes the type, form, shape and number of issued shares with
stating the nominal value, a range of repayment of the newly subscribed shares and the deadline for repayment
newly subscribed shares

C) an increase in capital from its own resources
domestic insurance undertaking or domestic reinsurance publishes the amount by which the
capital increases, marks its own resources, all of which are essential
capital increases; Home insurance or domestic reinsurance, which is
joint stock company shall also state whether increasing the nominal value of the shares
, and if it increases, the amount of which increases

8th the organizational structure of the domestic insurance undertaking or domestic reinsurance
indicating the number of branches and number of employees (FTE
state)

9th on the persons who effectively run home insurance or reinsurance
domestic or control the operation of the domestic insurance undertaking or domestic reinsurance


A) the name or names, surname and title

B) function, if it is a member of an administrative or supervisory body, and
date from which the person performing the relevant function,

C) the position of the person who actually manages domestic insurance or reinsurance
domestic or supervises the activities of domestic insurance or
domestic reinsurance, in the organizational home insurance or

Domestic reinsurance

D) previous experience and qualifications to perform the function
or for the position,

E) in the elected bodies of other legal entities, stating
functions performed,

F) the aggregate amount of loans, loans granted by domestic insurance companies
or domestic reinsurance persons who effectively run
domestic insurance undertaking or domestic reinsurance or control the operation of domestic
insurance or reinsurance domestic and

G) the aggregate amount of guarantees issued by domestic insurance undertaking or domestic reinsurance
for persons who effectively run home insurance or reinsurance
domestic or control the activities of domestic insurance or reinsurance
domestic.

II. Details of the shareholders or members of the home insurance or reinsurance domestic
with a qualified interest in the domestic insurance undertaking or domestic reinsurance
that

First Shareholders or members who are legal persons, domestic
domestic insurance or reinsurance company publishes business or
name, legal form, registered address and the amount of the share of voting rights
percentage

Second Shareholders or members who are natural persons, domestic
domestic insurance or reinsurance publish the name or names
surname and the share of voting rights percentage.

III. Details of group structure, which is the home insurance or reinsurance
domestic part

First Information about persons who are related to domestic insurance undertaking or domestic reinsurance
controlling entities or majority shareholder
which includes

A) the company name, legal form and registered address of such person
; in the case of an individual name, or names and surnames,

B) direct or indirect share in the capital of home insurance
or domestic reinsurance percentage

C) the direct or indirect share in the voting rights of home insurance
or domestic reinsurance percentage

D) the method, under which the domestic insurance undertaking or domestic reinsurance
entity controlled if it is not the share capital or voting rights
,

E) the aggregate amount of receivables home insurance or reinsurance
domestic and aggregate amount of liabilities of domestic insurance or reinsurance domestic
against these persons,

F) the aggregate amount of securities that have home insurance or reinsurance domestic
in assets and which are issued by these entities, and the aggregate amount of liabilities
home insurance or reinsurance of domestic
these securities | ||
G) the aggregate amount of the domestic insurance undertaking or domestic reinsurance
issued guarantees for these persons, and the aggregate amount of domestic
domestic insurance or reinsurance guarantees received from such persons
.

If a person who is directly controlling entity
home insurance or reinsurance domestic, bank, securities dealer, foreign
bank or a foreign person providing investment services, sufficient
publication of information pursuant to a ) only for this controlling person.

Second Information about persons who are related to domestic insurance undertaking or domestic reinsurance
controlled entities, which includes

A) the company name, legal form and registered address of such
person

B) direct or indirect holding home insurance or reinsurance
domestic capital as a percentage

C) the direct or indirect share of the domestic insurance undertaking or domestic reinsurance
voting rights percentage

D) the method, under which the domestic insurance undertaking or domestic reinsurance
controlling person, if it is not
share in the capital or voting rights,

E) number, nominal value and the purchase price of the shares or the amount and
purchase price of shares acquired in such a person and changes in
During the reporting period,

F) the aggregate amount of receivables home insurance or reinsurance
domestic and aggregate amount of liabilities of domestic insurance or reinsurance domestic
against these persons,

G) the aggregate amount of securities that have home insurance or reinsurance domestic
in assets and which are issued by such persons,
and the aggregate amount of liabilities from the securities


H) the aggregate amount of the domestic insurance undertaking or domestic reinsurance
issued guarantees for such a person and the aggregate amount of home insurance
domestic reinsurance or guarantees received from such persons.

Third graphical representation of the structure of the group, which includes all
controlled affiliates and home insurance or reinsurance domestic
, all of its controlling entity and any controlled or affiliated persons
controlling persons home insurance or reinsurance domestic
; unless the controlling person home insurance or reinsurance domestic
subject to supervision in a group or supervision on a consolidated basis or
supplementary supervision of financial conglomerates and the
publicly disclose information about their group, graphical representation may include
only controlled and associate people home insurance or reinsurance
domestic and all of its controlling entity.

IV. Information on the activities of domestic insurance or reinsurance domestic

First line of business (activities) entered in the Commercial Register

Second an overview of the activities actually performed,

Third Overview of activities the execution or providing it
Czech National Bank limited or suspended

Fourth balance sheet of domestic insurance or reinsurance domestic
by the law governing accounting,

Fifth Profit and loss of home insurance or domestic reinsurance

6th Ratios home insurance or reinsurance domestic

A) return on average assets (ROAA) 100% * profit or loss for the period
/ total assets,

B) Return on average equity (ROAE) 100% *
profit or loss for the period / Equity,

C) "combined ratio" in the non-life insurance 100% * (cost
claims, including changes in reserves for claims, net of reinsurance
+ Net operating expenses) / earned
premiums net of reinsurance.
Appendix 4


Structure and other elements of the verification of the management and control system


I. Evaluation of the functionality and efficiency of the individual parts
management and control system, including compliance with laws and concepts written


The report contains the results of the verification of individual parts management and control system
:

First general assumptions of effective management and control system, and it is always at least


A) management system, including risk management,

B) of the own risk and solvency assessment,

C) internal control system

D) organizational and operational structure, defining the powers and responsibilities
and decision-making and approval process,

E) avoid conflicts of interest and

F) the acquisition, transfer and storage of information,

Second Business risk management, controls ensuring compliance with laws and regulations
, internal audit, actuarial and potentially
other activities identified by the undertaking as a key,

Third The fit and proper persons with key functions and
competence of employees or persons working for an insurance or reinsurance
,

Fourth outsourcing of activities and

Fifth remuneration.

The evaluation is unclear whether and how the requirements are met
legislation on individual parts of the control system,
whether and how to ensure compliance with approved written
concepts and whether they are individual parts management and control system
functional and effective. In the event that deficiencies were found in
listed under this chapter; detail the individual deficiencies
analyzed in Chapter II.

II. Specifications deficiencies and assess their seriousness

This chapter describes in detail the deficiencies identified.
Includes an evaluation of the seriousness of the shortcomings of the scale:

First shortcoming with a very high degree of seriousness - has a fundamental lack
impact on the functionality and effectiveness of the control system on
management, creation and distribution of profit and significantly
endangers the fulfillment of the minimum capital requirement or the Solvency Capital
request a home insurance or domestic reinsurance
or to meet its commitments arising from the operation
insurance or reinsurance business;


Second the lack of a high degree of seriousness - the lack of systemic
character has a major impact on the efficiency and effectiveness of multiple parts
control system in accordance with Chapter I, on the economy, creating
and distribution of profit and may endanger the fulfillment of the minimum || | capital requirement or SCR
home insurance or reinsurance domestic or
meet its obligations arising out of the insurance or reinsurance
activities;

Third the lack of an intermediate degree of seriousness - less significant shortage
systemic character, or significant deficiency
unsystematic character has an impact on the efficiency and effectiveness of at least one part
control system in accordance with Chapter I, jeopardizes the fulfillment of the minimum capital
or request Solvency capital requirement
home insurance or reinsurance undertaking or domestic
meet its liabilities arising from insurance
or reinsurance business and has no significant impact on the economy and creating
and distribution of profit;

Fourth lack of seriousness with low levels - less significant shortage
unsystematic character has an impact on the efficiency and effectiveness
least one part of the control system referred to in Chapter 1
jeopardizes the fulfillment of the minimum capital requirement or the Solvency Capital Requirement domestic
insurance or reinsurance
domestic or meet its obligations arising from operating
insurance or reinsurance business and has no impact on the management and
creation and distribution of profit.

III. The overall evaluation of the functionality and effectiveness of the management and control system


This chapter evaluates the efficiency and effectiveness of the management and control system
as a whole. The evaluation is unclear whether and in what manner
are fulfilled legal requirements for the management and control
system as a whole including the assessment of whether the management and control system as a whole
functional and effective. In the event that deficiencies were found
they are under this chapter also analyzed in detail and assessed
in accordance with Chapter II.
Annex 5


The terms and structure of the verification report disclosed information in
report on solvency and financial condition

A. Report on the disclosed information in the report on solvency and financial condition
has the following structure covering subjects such verification
:

I. The area of ​​the balance sheet, which will be valued assets and liabilities according to § 51
Insurance Act, includes

First part of the report describing the valuations for solvency purposes

Second The following quantitative statements:

A) balance sheet,

B) the technical provisions of non-life insurance

C) the technical provisions of life insurance and health insurance
practiced on a similar technical basis to that of life insurance and

D) the technical provisions of non-life insurance and health insurance
operated on a different technical basis than life insurance.

II. Capital Region includes

First part of the report describing the management of capital and

Second quantitative statement of capital.

III. The area includes the capital requirements

First part of the report devoted to the Minimum Capital Requirement and the Solvency Capital Requirement
in full by
directly applicable EU regulations governing the area of ​​capital requirements
report on the solvency and financial condition

Second The following quantitative statements:

A) the Solvency Capital Requirement of insurance or reinsurance
counts Solvency Capital Requirement standard formula,

B) the Solvency Capital Requirement the insurance or reinsurance
counts Solvency Capital Requirement in combination with a partial internal model
or

C) the Solvency Capital Requirement of insurance or reinsurance
counts Solvency Capital Requirement full internal model and


D) minimum capital requirement of the insurance or reinsurance
only operate life or non-life insurance, or

E) minimum capital requirement of the insurance or reinsurance
operating concurrently life and non life insurance.


B. In the case of a home insurance undertaking or domestic reinsurance undertaking subject to group supervision
verification report has disclosed information in
report on solvency and financial condition following structure
covering these subjects Verification:

I. part of the report describing the operation and performance of the group

II. part of the report on the valuation for the purposes of group solvency

III. section reports on capital management group in its entirety by
directly applicable EU regulations governing the area
report on solvency and financial condition as a group and

IV. Quantitative statements:

First balance sheet, if not a domestic insurance undertaking or domestic reinsurance
subject to group supervision, which counts
group Solvency Capital Requirement only method of deduction
aggregated data

Second description of the persons in the group

Third capital within the group and

Fourth Solvency Capital Requirement.

1) Directive of the European Parliament and Council Directive 2009/138 / EC of 25 November 2009
access to insurance and reinsurance business and its performance
(Solvency II), as amended.

2) Regulation Commission Delegated Regulation (EU) 2015/35 of 10 October 2014
supplementing Directive of the European Parliament and of the Council
2009/138 / EC on access to insurance and reinsurance and
her performance (Solvency II), as amended.

3) Art. 103 Directive of the European Parliament and Council Directive 2009/138 / EC of 25 November 2009
access to insurance and reinsurance business and its performance
(Solvency II), as amended.