Home / Acts & Regulations / Reporting Explanations / S.03.01 — Off–balance sheet items — General

S.03.01 — Off–balance sheet items — General

Download PDF

S.03.01 — Off–balance sheet items — General

General comments:

This section relates to annual submission of information for individual entities.

This section includes the information referring to off–balance sheet items and the maximum and solvency II value of contingent liabilities in Solvency II balance sheet.

A pool of assets that secure an investment (e.g. the pool of assetsthat are a collateral for covered bonds) should not be reported in this template.

As regards the Solvency II value, the instructions define the items from a recognition perspective. Valuation principles are laid down in Directive 2009/138/EC, Delegated Regulation (EU) 2015/35, Technical Standards issued under Directive 2009/138/EC and EIOPA Guidelines.

Guarantees require the issuer to make specified payments to reimburse the holder for a loss it incurs if a specified debtor fails to make payment when due under the original or modified terms of a debt instrument. These guarantees can have various legal forms, such as financial guarantees, letters of credit, credit default contracts. These items shall not include guarantees stemming from insurance contracts, which are recognised in technical provisions.

A contingent liability is defined as:

  • a) a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non–occurrence of one or more uncertain future events not wholly within the control of the entity; or
  • b) a present obligation that arises from past events even if:
    • i. it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or
    • ii. the amount of the obligation cannot be measured with sufficient reliability.

Collateral is an asset with a monetary value or a commitment that secure the lender against the defaults of the borrower. The value of the collateral should be reported as the economic value of the collateral at per reference date (Solvency II value of the assets), not as the risk-adjusted value of a collateral according to Article 197 of the Delegated Regulation.

Only limited guarantees are to be reported in this template excluding information about any provided or received unlimited guarantee.

This template shall be submitted when any of the following conditions apply:

  • a) the amount of any of the following sums is higher than 2% of Total Assets:
    • i. (C0020/R0010) Value of guarantee/collateral/contingent liabilities Guarantees provided by the undertaking, including letters of credit + (C0020/R0300) Value of guarantee/collateral/contingent liabilities — Total collateral pledged + (C0010/R0400) Maximum value — Total Contingent liabilities;
    • ii. (C0020/R0030) Value of guarantee/collateral/contingent liabilities Guarantees received by the undertaking, including letters of credit + (C0020/R0200) Value of guarantee/collateral/contingent liabilities — Total collateral held; or
  • b) the undertaking has provided or received unlimited guarantee.
ITEM INSTRUCTIONS
C0010/R0010 Maximum value —
Guarantees provided by the
undertaking, including
letters of credit
Sum of all possible cash out–flows related to
guarantees if events triggering guarantees
were all to happen in relation to guarantees
provided by the undertaking to another party.
It includes cash–flows related to letter of
credit.
In case any guarantee is also identified as
contingent liability under R0310, the
maximum amount shall also be included in
this row.
C0010/R0020 Maximum value —
Guarantees provided by the
undertaking, including
letters of credit, of which,
guarantees, including letters
of credit provided to other
undertakings of the same
group
Part of C0010/R0010 related to guarantees,
including letters of credit, provided to other
undertakings of the same group.
C0020/R0010 Value of
guarantee/collateral/conting
ent liabilities —
Guarantees
provided by the
undertaking, including
letters of credit
Solvency II value of the guarantees provided
by the undertaking, including letters of credit
C0020/R0020 Value of
guarantee/collateral/conting
ent liabilities —
Guarantees
provided by the
undertaking, including
letters of credit, of which,
guarantees, including letters
of credit provided to other
undertakings of the same
group
Part of C0020/R0010 related guarantees,
including letters of credit provided to other
undertakings of the same group.
C0010/R0030 Maximum value —
Guarantees received by the
undertaking, including
letters of credit
Sum of all possible cash in–flows related to
guarantees if events triggering guarantees
were all to happen in relation to guarantees
received by the undertaking from another
party to guarantee the payment of the
liabilities due by the undertaking (includes
letter of credit, undrawn committed
borrowing facilities).
C0010/R0040 Maximum value —
Guarantees received by the
undertaking, including
letters of credit, of which,
guarantees, including letters
of credit received from
other undertakings of the
same group
Part of C0010/R0030 related to guarantees,
including letters of
credit received from other
undertakings of the same group.
C0020/R0030 Value of
guarantee/collateral/conting
ent liabilities —
Guarantees
received by the undertaking,
including letters of credit
Solvency II value of the guarantees received
by the undertaking, including letters of credit.
C0020/R0040 Value of
guarantee/collateral/conting
ent liabilities —
Guarantees
received by the undertaking,
including letters of credit, of
which, guarantees,
including letters of credit
received from other
undertakings of
the same
group
Part of C0020/R0030 related to guarantees,
including letters of credit received from other
undertakings of the same group.
C0020/R0100 Value of
guarantee/collateral/conting
ent liabilities –Collateral
held for loans made or
bonds purchased
Solvency II value of the collaterals held for
loans made or bonds purchased.
C0020/R0110 Value of
guarantee/collateral/conting
ent liabilities –Collateral
held for derivatives
Solvency II value of the collaterals held for
derivatives.
C0020/R0120 Value of
guarantee/collateral/conting
ent liabilities —
Assets
pledged by reinsurers for
ceded technical provisions
Solvency II value of the assets pledged by
reinsurers for ceded technical provisions.
C0020/R0130 Value of
guarantee/collateral/conting
ent liabilities —
Other
collateral held
Solvency II value of other collaterals held.

Solvency II software

ent liabilities –Total
collateral held
C0030/R0100 Value of assets for which
collateral is held —
Collateral held for loans
made or bonds purchased
Solvency II value of the assets for which the
collateral for loans made or bonds purchased
is held.
C0030/R0110 Value of assets for which
collateral is held —
Collateral held for
derivatives
Solvency II value of the assets for which the
collateral for derivatives is held.
C0030/R0120 Value of assets for which
collateral is held —
Assets
pledged by reinsurers for
ceded technical provisions
Solvency II value of the assets for which the
collateral on assets pledged by reinsurers for
ceded technical provisions is held.
C0030/R0130 Value of assets for which
collateral is held —
Other
collateral held
Solvency II value of the assets for which the
other collateral is held.
C0030/R0200 Value of assets for which
collateral is held —
Total
collateral held
Total Solvency II value of the assets for
which the total collateral is held.
C0020/R0210 Value of
guarantee/collateral/conting
ent liabilities —
Collateral
pledged for
loans received
or bonds issued
Solvency II value of the collaterals pledged
for loans received or bonds issued.
C0020/R0220 Value of
guarantee/collateral/conting
ent liabilities —
Collateral
pledged for derivatives
Solvency II value of the collaterals pledged
for derivatives.
C0020/R0230 Value of
guarantee/collateral/conting
ent liabilities —
Assets
pledged to cedants for
technical provisions
(reinsurance accepted)
Solvency II value of the assets pledged to
cedants for technical provisions (reinsurance
accepted).
C0020/R0240 Value of
guarantee/collateral/conting
ent liabilities —
Other
collateral pledged
Solvency II value of the collateral pledged for
other collateral.
C0020/R0300 Value of
guarantee/collateral/conting
Total Solvency II value of the collateral
pledged.
ent liabilities —
Total
collateral pledged
C0040/R0210 Value of liabilities for
which collateral is pledged

Collateral pledged for
loans received or bonds
issued
Solvency II value of the liabilities for which
the collateral for loans received or bonds
issued is pledged.
C0040/R0220 Value of liabilities for
which collateral is pledged

Collateral pledged for
derivatives
Solvency II value of the liabilities for which
the collateral for derivatives is pledged.
C0040/R0230 Value of liabilities for
which collateral is pledged

Assets pledged to
cedants for technical
provisions (reinsurance
accepted)
Solvency II value of the liabilities for which
the assets are pledged to cedants for technical
provisions (reinsurance accepted).
C0040/R0240 Value of liabilities for
which collateral is pledged

Other collateral pledged
Solvency II value of the liabilities for which
other collateral is pledged.
C0040/R0300 Value of liabilities for
which collateral is pledged

Total collateral pledged
Total Solvency II value of the liabilities for
which the collateral is pledged.
C0010/R0310 Maximum value —
Contingent liabilities not in
Solvency II Balance Sheet
Maximum possible value, regardless of their
probability (i.e. future cash out–flows
required to settle the contingent liability over
the lifetime of that contingent liability,
discounted at the relevant risk–free interest
rate term structure) of contingent liabilities
that are not included in those valued in
Solvency II Balance Sheet (item
C0010/R0740 of S.02.01).
This shall relate to contingent liabilities that
are not material.
This amount shall include guarantees
reported in R0010 if considered as contingent
liabilities.
C0010/R0320 Maximum value —
Contingent liabilities not in
Solvency II Balance Sheet,
of which contingent
liabilities toward entities of
the same group
Part of C0010/R0310 related to contingent
liabilities toward entities of the same group.
C0010/R0330 Maximum value —
Contingent liabilities in
Solvency II Balance Sheet
Maximum possible value, regardless of their
probability (i.e. future cash out–
flows
required to settle the contingent liability over
the lifetime of that contingent liability,
discounted at the relevant risk–free interest
rate term structure) of contingent liabilities
that are valued in Solvency II Balance Sheet
as defined in Article 11 of
Delegated
Regulation (EU) 2015/35.
C0010/R0400 Maximum value —
Total
Contingent liabilities
Total maximum possible value regardless of
their probability (i.e. future cash flows
required to settle the contingent liability over
the lifetime of that contingent liability,
discounted at the relevant risk–free interest
rate term structure) of contingent liabilities.
C0020/R0310 Value of
guarantee/collateral/conting
ent liabilities —
Contingent
liabilities not in Solvency II
Balance Sheet
Solvency II value of the contingent liabilities
not in Solvency II Balance Sheet.
C0020/R0330 Value of
guarantee/collateral/conting
ent liabilities —
Contingent
liabilities in Solvency II
Balance Sheet
Solvency II value of the contingent liabilities
in Solvency II Balance Sheet. This value shall
only be reported in relation to contingent
liabilities for which a value in item
C0010/R0330 in S.03.01 was reported.
If this
value is lower than C0010/R0740 in
S.02.01 an explanation shall be provided in
the narrative reporting.
C0050/R0510 Unlimited guarantees -
received
Indication if the undertaking has received any
unlimited guarantees. One of the options in the
following closed list shall be used:
0 -
no unlimited guarantees received;
1 -
Unlimited guarantees received only from
entities of
the same group;
2 -
Unlimited guarantees received only from
entities not belonging to the same group;
3 –
Unlimited guarantees received from
entities of the same group and from entities
not belonging to the same group.
C0050/R0520 Unlimited guarantees –
provided
Indication if the undertaking has provided any
unlimited guarantees. One of the options in the
following closed list shall be used:
0 –
no unlimited guarantees provided;
1 –
Unlimited guarantees provided only to
entities of the same
group;
2 -
Unlimited guarantees provided only to
entities
not belonging to same
group;
3 -
Unlimited guarantees provided to entities
of the same group and to entities not
belonging to same group.