Financial and capital market Commission, the provisions of regulations No 131 in Riga august 12, 2015 (financial and capital market Commission Council meeting Protocol No 28 5. p.) Insurance or reinsurance undertaking in the Group solvency calculation rules, regulations Issued under the insurance and reinsurance law 205 of the fourth part of article i. General questions 1. "insurance or reinsurance undertaking the solvency of the group calculates the regulations" (hereinafter-the rules) determines the Group solvency capital requirement and the Group's equity to be used in the calculation. 2. The rules are binding: 2.1 the insurance or reinsurance undertaking which is a participating company in at least one insurance undertaking, reinsurance undertaking or non-Member State, the Member State or Member State insurers or reinsurers in the Member State; 2.2. insurance and reinsurance companies whose parent company is established in a Member State of the insurance holding company or a mixed financial holding company; 2.3. insurance and reinsurance companies whose parent company is not registered in a Member State of the insurance holding company or a mixed financial holding company, not a member insurer or reinsurer with a Member State, provided that: 2.3.1 European Commission European monitoring group needs is not recognized by the application is not registered in a Member State of the parent company's supervisory regime of equivalence or equivalence of the interim European Union requirements, or 2.3.2. Financial and capital market Commission (hereinafter the Commission) pursuant to insurance and reinsurance law requirements of article 241 is not recognized by that the supervisory mode is equivalent to the insurance and reinsurance legal group monitoring mode or 2.3.3. The European Commission has adopted a decision for the Member State monitoring mode not provisional equivalence the European Union requirements, but registered in the Republic of Latvia of an insurance or reinsurance undertaking's balance sheet amount exceeds not registered in a Member State of the parent company's balance sheet. II. General principles 3. Group solvency calculation shall take account of the proportional share of the public for participation in its associated company, calculated on the basis of: 3.1 consolidated accounts the interest used for dialing (if used in chapter IV of these regulations is described in method 1 – consolidated financial statement method); 3.2. the share capital subscribed proporcionālaj shares, directly or indirectly, holds membership in public (if used in this provision is described in chapter V 2. deduction and aggregation method-method). 4. Where an associated undertaking is a subsidiary of the company, and it does not have sufficient equity to be used, with which to cover the solvency capital requirement, then, notwithstanding the method used, the subsidiary of the solvency capital requirement and the disposable equity is included in the calculation of the Group solvency in full without the application of this provision in paragraph 3, the principle of proportionality. If the Commission or the other supervisory authorities concerned consider that the parent company owning a share of the capital, the liability is limited to that share of the capital, taking into account the different responsibilities of the shareholders or members, the Commission, if it is a group, the supervisory authority may permit a subsidiary of the solvency capital requirement and the capital to be taken into account on a proportional basis. 5. The rules referred to in paragraph 3 of the proportional part of the calculation principles set by the Commission, if it is a group of supervisory authority, after consultation with the other supervisory authorities concerned and the group, the parent company of the following circumstances: 5.1 if between individual companies in the group do not have capital links; 5.2. If the supervisory authority concerned has determined that voting rights or shares a direct or indirect holding in the company classified as participation, since the supervisory authority considers that the public is affected significantly; 5.3. If a participating supervisory authority has determined that the company is the parent company of another company, because in accordance with the opinion of the supervisory authority, it is the dominant influence on the society. 6. Group capital used, used one of the company's solvency capital requirements, are not allowed to reuse in another insurance undertaking or reinsurance undertaking the solvency capital requirements. The calculation of the solvency of the group, if the solvency calculation method does not provide otherwise, turn off the following amounts: 6.1. participation in insurance or reinsurance companies, of any asset the value of which finances related insurance or reinsurance undertakings solvency capital requirements to cover equity to be used; 6.2. participation in insurance or reinsurance company related insurance or reinsurance undertakings value assets, which finances these insurance or reinsurance company solvency of participation capital equity used for cover; 6.3. participation in insurance or reinsurance company related insurance or reinsurance undertakings value assets, which finances these insurance or reinsurance company of participation of any other related insurance or reinsurance undertaking the solvency capital requirement of the disposable equity. 7. the Group solvency calculation is allowed to include such items as equity if they are used to cover the affiliates: the solvency capital requirement 7.1. insurance or reinsurance companies, which participate in the Group solvency is calculated, related life insurance or reinsurance undertaking additional funds (surpl funds) if they fulfil own funds items established criteria; 7.2. participation of the insurance or reinsurance undertaking for which the Group solvency is calculated, related insurance or reinsurance undertakings, but not paid-up subscribed capital. 8. the Group solvency calculation shall not include: 8.1. signed but not paid-up capital, if it is a membership society potential; 8.2. participation in insurance or reinsurance companies, signed but not paid-up capital which is a related insurance undertaking or a reinsurance undertaking of the potential; 8.3. related insurance or reinsurance undertakings signed but not paid-up capital which is its own insurance or reinsurance company of participation of other insurance or reinsurance companies associated potential liability. 9. If the Commission considers that insurance or reinsurance related companies cover the solvency capital requirement of own funds to be used for the item that is not listed in point 7 of these rules, is not actually available to cover insurance or reinsurance company solvency requirement of participation for which the Group solvency is calculated, the equity item can be included in the calculation only to the extent that it is related to public solvency capital requirements. 10. This provision 7 and 9 above equity items amounts less than the related insurance or reinsurance company solvency capital requirements. 11. participation in insurance or reinsurance companies, for which the Group solvency is calculated, related insurance or reinsurance undertakings of any additional equity (ancillary own funds) item that requires the Commission or other relevant supervisory authorities prior approval, may be included in the calculation only if it is approved by the Commission or other participating supervisory authority responsible for those individual affiliates. 12. Calculation of the own funds of the group used solvency requirements, shall not be included in the calculation of own funds to be used from the insurance or reinsurance undertaking and of participation of such firms in the mutual funds: 12.1. affiliates; 12.2. participation in society; 12.3. the participation of any other company affiliates. 13. Calculation of the Group solvency, no account shall be taken of the insurance or reinsurance undertaking for which the Group solvency is calculated, related insurance or reinsurance company solvency capital requirements to cover equity, to be used if the equity consists of reciprocal financing with any other of that insurance or reinsurance undertaking concerned for membership of the community. 14. the reciprocal financing exists when an insurance or reinsurance undertaking or other undertaking has its associated membership in another society or its loans to another company, which directly or indirectly owns the first public solvency capital requirements to cover disposable equity.

III. Application of the calculation methods 15. If the insurance or reinsurance undertaking has more than one related insurance or reinsurance undertaking, the Group solvency is calculated, including each of these related insurance and reinsurance undertakings. 16. If insurance or reinsurance related company's head office is situated in another Member State than the membership of the society, which the Group solvency is calculated, the Head Office of the calculation in respect of the related undertaking is taken into account in the solvency capital requirement and the use of equity capital, calculated according to the relevant company's home country.
17. the calculation of the insurance or reinsurance undertaking for which the Group solvency of the insurance holding company or mixed financial holding company is indirectly through the participation in the related insurance undertaking, a related reinsurance undertaking, an insurance company of a Member State or the Member State of the reinsurance undertaking, the solvency of the Group also included in the calculation of intermediate insurance holding company or mixed financial holding company. 18. the Group solvency calculation needs the insurance holding company or vicariously vicariously mixed financial holding company shall be considered as insurance or reinsurance undertaking subject to the Republic of Latvia and the European Commission regulations set requirements for the individual company's solvency capital requirements and the determination of own funds. 19. If the insurance holding company or the immediate direct financial holding company for mixed has subordinated capital or other capital used, is the subject of a European Commission Delegation Regulation (EU) 2015/35 (2014-10 October), complementary to the European Parliament and Council directive 2009/138/EC relating to the taking-up and pursuit of the business of insurance and reinsurance (Solvency II) (hereinafter – EU Regulation No 2015/35) the quantitative limits , considered disposable equity to an amount calculated by applying the EU Regulation No 2015/35 quantitative limits laid down for the common equity around the group level. 20. Direct insurance holding company or mixed financial holding company of the direct-equity items used requiring insurance or reinsurance company equity to be used in the individual purposes would need to get permission in accordance with the Commission's 2015 august 12, Regulation No 130 of the laws "of the insurer and reinsurer solvency capital requirements and the calculation of the own funds regulations ' requirements can be included in the calculation of the Group solvency only after authorization by the Commission If it is a group of supervisory authority. 21. the calculation of the insurance or reinsurance undertaking the solvency of the group, which is not a member of the public for participation in the insurer or reinsurer, in accordance with the provisions laid down in chapter V of the method 2, no Member referred to the insurer or reinsurer purposes is considered a related insurance or reinsurance undertaking. 22. If the Member State in which the Head Office of the related company, requires the licensing and supervisory regime it established what is considered equivalent to the insurance and reinsurance law, the Group solvency calculation shall include affiliates of the solvency capital requirement and the requirement for adequate capital, determined according to the requirements of the Member State concerned. 23. paragraph 22 of these provisions the purpose of the application of the supervisory regime not recognised as equivalent if: 23.1. The European Commission has adopted a regulation on delegated the supervision of the Member State of the European Union, the equivalence regime laid down in the monitoring or the solvency regime 23.2. If the Commission is the supervisory authority, after public demand for participation or on its own initiative, on the basis of EU Regulation No 2015/35 379. the criteria set out in article and before taking a decision, in consultation with the other supervisory authorities concerned is that not the supervisory mode is equivalent to the insurance and reinsurance law. 24. If the European Commission has adopted a regulation delegated to the monitoring mode is a Member State on a temporary basis equivalent to that laid down in the European Union solvency surveillance mode, the mode of supervision of the Member State is considered to be the equivalent of 22 of these rules for the application of the requirements. 25. the calculation of the insurance or reinsurance undertaking the solvency of the group, which is a membership community credit institution, financial institution or investment brokerage firm, insurance and reinsurance company concerned shall apply for membership in the Commission 21 April 2006 no. 84 of the provisions of the "rules for the financial conglomerate's capital adequacy calculation procedure and on the provision of information on significant risk concentration and significant intra-group transactions" in paragraph 1 of annex 1 of the prescribed method of consolidation (Accounting consolidation method) or the provisions laid down in paragraph 4, the reduction and addition method (Marbles and aggregation method). Consolidation method can be applied only if the Commission is received, if it is a group of supervisory authority authorisation. The Commission shall issue the permit if the insurance or reinsurance undertaking shall ensure adequate participation in the integrated management and internal control level for corporations, which would be suitable for the consolidation. The method chosen shall be applied consistently in all the time. 26. the Commission, if it is a group of the supervisory authority, on the basis of the membership application by the company or on its own initiative, inform the membership of the company, may decide that rules listed in paragraph 25 of the participation in the credit institution, financial institution or investment brokerage company deduction from equity, you can use the membership of the Group solvency of the public.

27. If the Commission does not have any available insurance or reinsurance undertaking the solvency of the group calculates the necessary information about a related company with a head office in another Member State or in a Member State, participation in the public participation in that associated society appreciates the value zero. With the participation of the following related unrealised gains shall not be recognised as a group own funds used for solvency. IV. method 1 (standard method): a consolidated financial statement method 28. Insurance or reinsurance groups in society membership solvency calculation shall be carried out using the consolidated financial statements. Methods of consolidation the Group companies for inclusion in the consolidated data of EU Regulation No 2015/35. An insurance or reinsurance group solvency of public participation is the difference between: 28.1. own funds used for covering the solvency capital requirement, calculated using consolidated data; 28.2. the solvency capital requirement at group level calculated using consolidated data. 29. in order to calculate the solvency capital requirement to cover the use of the equity and the solvency capital requirement at group level based on the data in the consolidated report, the Republic of Latvia and the European Union legislative requirements relating to individual insurance or reinsurance undertakings for the assets and liabilities that are not technical reserves, evaluation, calculation of technical provisions, own funds and the solvency capital requirement. 30. The solvency capital requirement at group level, on the basis of consolidated data (consolidated Group solvency capital requirement), calculated either according to a standard formula or an internal model, if the permission of the Commission, according to the Republic of Latvia and the European Union law the General principles laid down by the solvency capital requirement and the corresponding requirements for the calculation, if the calculation is based on the standard formula, or using a full or partial internal model. 31. the minimum consolidated Group solvency capital requirement is the sum of the following: 19.3. participation in insurance or reinsurance companies, the minimum capital requirements under the insurance and reinsurance law and EU Regulation No 2015/35; 19.4. insurance and reinsurance companies relating to minimum capital requirements proportional share. 32. The minimum consolidated Group solvency requirement provides a first level and second level-use the basic equity items total according to the Commission, on 12 august 2015. the provisions in laws No 130 "insurer and reinsurer solvency capital requirements and the calculation of the own funds regulations ' and the EU Regulation No 2015/35 requirements.

33. in order to determine whether use of basic own funds sufficient to cover the minimum consolidated Group solvency requirement, the use of this provision in paragraph 3 to 27. 34. If insurance or reinsurance company of participation notes that groups use basic equity is less than the minimum consolidated Group solvency capital requirement, or if there is a risk that the coming three months, the possible minimum consolidated Group solvency requirements is not met, the insurance or reinsurance undertaking: 34.1. membership shall inform the Commission immediately, if it is a group of the supervisory authority; 21.3. within one month of the minimum consolidated Group solvency requirements, submitted to the Commission for harmonisation, if it is the supervisory authority of the group, plans to use the Group's equity base to restore the minimum consolidated Group solvency requirements. The plan provides that insurance or reinsurance company of membership within three months from the date of the consolidated Group, the minimum solvency requirements not met, restores the group used the base until the minimum equity consolidated Group solvency requirements around or reduces the risk by providing a minimum consolidated Group solvency requirements. V.2. method (alternative method): deduction and aggregation method 35. An insurance or reinsurance group solvency of public participation is the difference between: 21.8. summarized the Group's equity to be used, as indicated in paragraph 36 of these regulations; 35.2. an insurance or reinsurance undertaking of the related insurance or reinsurance the value of membership in the society and summarized the Group solvency capital requirement, as stated in paragraph 37 of these regulations. 36. The aggregated groups of use of own capital of the following amounts: 36.1. participation in insurance or reinsurance company solvency capital requirements to cover use of own funds; 36.2. the participation of the insurance or reinsurance company's proportional share of the related insurance or reinsurance undertaking the solvency capital requirement to cover the use of capital. 37. the Group's solvency capital Totalled requirement shall be the sum of the following amounts: 37.1. an insurance or reinsurance undertaking the solvency capital of membership requirement; 37.2. related insurance or reinsurance undertaking the solvency capital requirement rate. 38. Where participation in related insurance or reinsurance undertakings fully or partially manifested as indirect ownership, insurance or reinsurance undertaking of the related insurance or reinsurance value membership in the society includes the value of indirect participation, taking into account the rights arising from it, and this rule 37.2 36.2 and items referred to in paragraph shall include appropriate insurance or reinsurance company related to the solvency capital requirement using the equity and related insurance or reinsurance undertaking the solvency capital requirements the corresponding proportional parts. Vi. the insurance holding company or a mixed financial holding company of the Group solvency 39. If the insurance and reinsurance undertaking is an insurance holding company or a mixed financial holding company of the subsidiaries, the Group solvency is calculated with the insurance holding company or mixed financial holding company level, the application of these provisions and insurance and reinsurance law requirements of the Group solvency calculation. 40. the Group solvency calculation needs the insurance holding company or mixed financial holding company shall be considered as insurance and reinsurance companies, to which the Republic of Latvia and the European Union legislative requirements relating to individual insurance or reinsurance undertaking the solvency capital requirement and the solvency capital requirement to cover the use of equity capital. VII. Closing questions 41. Group solvency purposes apply Commission 2015 august 12, Regulation No 130 of the laws "of the insurer and reinsurer solvency capital requirements and the calculation of the own funds regulations ' 49-53. 42. participation in insurance or reinsurance company, insurance holding company or a mixed financial holding company (or group of the public, appointed by the Commission, if it is a group of supervisory authority, after consultation with the other supervisory authorities concerned and the Group) and the insurance or reinsurance undertaking, which the parent company is not registered in a Member State of the insurance holding company or a mixed financial holding company, not a member insurer or reinsurer, the Member State shall take the Group solvency calculation shall submit to the Commission If it is the supervisory authority of the group, the following time limits: 26.2. Group solvency calculation: the year. for the current period 42.1.1 ending in 2016, on 31 December, no later than 26 weeks after the end of the reporting period, the current period 42.1.2. ending December 31, 2017, not later than 24 weeks after the end of the reporting period, the 42.1.3. report period ending 2018 31 December not later than 22 weeks after the end of the reporting period, the current period 42.1.4. ending December 31, 2019, not later than 20 weeks after the end of the reporting period; 26.2. the Group solvency calculation for the quarter: 42.2.1. for each quarter of 2016, no later than 14 weeks after the end of the reporting period, 42.2.2. for each quarter of the year 2017. not later than 1 week after the end of the reporting period, 42.2.3.2018 quarter not later than 12 weeks after the end of the reporting period, 42.2.4. for each quarter of the year 2019. not later than 12 weeks after the end of the reporting period; 26.3. for the reporting period, from 1 January 2020, according to the EU Regulation No 2015/35 particular recurrence and deadlines. 43. Decisions adopted by the Commission on the issue of the direct insurance holding company or mixed financial holding company of the direct-equity items used for the calculation of the Group solvency, according to paragraph 20 of these rules and requirements for membership in a credit institution, financial institution or investment brokerage company deduction from equity, you can use the membership of society cover the solvency, according to this provision the requirements of paragraph 26 shall enter into force not earlier than 1 January 2016. 44.3-19, 21-25 and 27 to 42 shall enter into force on January 1, 2016. 45. By January 1, 2016, the Commission shall lapse on May 22, 2009. the legislative provisions of no. 64 "the legislative provisions concerning the supplementary supervision of insurance undertakings under reinsurance companies adjusted solvency margin and adjusted the calculation of own funds and for providing information on the supplementary supervision of insurance undertakings under reinsurance groups in society or mutual transactions".
Informative reference to European Union directive rules included provisions arising from the directive of the European Parliament and of the Council in 2009/138/EC relating to the taking-up and pursuit of the business of insurance and reinsurance (Solvency II). Financial and capital market Commission President k. Zakuli States