Equity Risk

Calculate the Equity Risk instantly.

Type One Equity Risk

€

Type Two Equity Risk

€

Type 1 + Type 2 SCR

€32 133 795

Before Article 168 correlation

Diversification Benefit

€2 065 537

−6.4% of standalone

Capital relief

Equity Risk

€30 068 258

After Article 168 correlation

Equity Risk

Step	Impact	Running
Type 1 Equity Risk	17154958.858560942	17154958.858560942
Type 2 Equity Risk	14978836.43084028	32133795.289401222
Type 1 + Type 2 SCR	32133795.289401222	32133795.289401222
Diversification Benefit	-2065537.302928932	30068257.98647229
Equity Risk	30068257.98647229	30068257.98647229

Equity component shares

Module	Share	Amount
Type One Equity Risk	53.4%	€17M
Type Two Equity Risk	46.6%	€15M

Article 168 equity correlation matrix

1.000.75

Article 168 equity correlation matrix
	T1Type 1 Equity	T2Type 2 Equity
T1Type 1 Equity	1.00	0.75
T2Type 2 Equity	0.75	1.00

1Step 1

Article 168 Correlation Formula

SCR_{equity}=\sqrt{SCR_{type\,1}^{2}+SCR_{type\,2}^{2}+1.5\times SCR_{type\,1}\times SCR_{type\,2}}

2Step 2

Diversification Benefit

\textit{Article 168 Diversification Benefit} = \max(0, \textit{Article 168 Standalone Equity Risk} - \textit{Article 168 Correlated Equity Risk})

3Step 3

Equity Risk

\textit{Equity Risk} = \sqrt{\textit{Type One Equity Risk} \times \textit{Type One Equity Risk} + 2 \times 0.75 \times \textit{Type One Equity Risk} \times \textit{Type Two Equity Risk} + \textit{Type Two Equity Risk} \times \textit{Type Two Equity Risk}}

\textit{Equity Risk} = \sqrt{\textit{Type One Equity Risk} \times \textit{Type One Equity Risk} + 2 \times 0.75 \times \textit{Type One Equity Risk} \times \textit{Type Two Equity Risk} + \textit{Type Two Equity Risk} \times \textit{Type Two Equity Risk}}

\begin{aligned}\textit{Equity Risk} &= \sqrt{\textit{Type One Equity Risk} \times \textit{Type One Equity Risk} + 2 \times 0.75 \times \textit{Type One Equity Risk} \times \textit{Type Two Equity Risk} + \textit{Type Two Equity Risk} \times \textit{Type Two Equity Risk}}\end{aligned}

Understand the Equity Risk

Overview

This calculator implements the gross capital requirement for the Equity Risk sub-module by aggregating the prepared Type 1 and Type 2 equity capital amounts under Article 168.^[1]

Input Terms

Type 1 Equity Risk: Prepared Type 1 equity risk capital after the relevant Type 1, strategic, long-term, duration-based, transitional, and symmetric-adjustment treatment has already been calculated.^[1]
Type 2 Equity Risk: Prepared Type 2 equity risk capital after standard Type 2, qualifying infrastructure equity, qualifying infrastructure corporate equity, strategic, long-term, duration-based, transitional, and symmetric-adjustment treatment has already been calculated.^[1]

Technical Rationale

Article 168 does not add Type 1 and Type 2 equity capital requirements directly. It applies the equity correlation structure, using a 0.75 correlation between the prepared Type 1 amount and the prepared Type 2 amount.

The standalone sum and diversification benefit are shown so the bridge from prepared component amounts to the final Equity Risk amount remains visible.

Important Notes

Calculation scope: This page is the final Article 168 equity aggregation. It does not classify individual assets, run Article 84 look-through, test preferential-treatment eligibility, or calculate the Type 1 / Type 2 branch amounts.
Look-Through Approach: Per Article 84 of the Delegated Regulation, insurers must "look through" investment funds to the underlying holdings so exposures are allocated to the correct equity buckets before this standalone amount is applied.^[2]
Gross vs. Net SCR: This calculator determines the standalone Equity Risk SCR. Solvency II risk is only finalized as a net impact on Basic Own Funds after diversification in Market Risk, then within BSCR, and after the top-level LAC TP and LAC DT adjustments.
Regulatory deviation: Material deviation from standard-formula assumptions at this layer may support a capital add-on or a move toward an internal model where justified.^[3]
Reporting: The displayed result is intended to support the corresponding standard-formula component for the S.25.01.01 standard-formula reporting view.^[4]

Sources

Default values are illustrative sample inputs for navigation, training, and QA. Replace them with controlled data before using the result in capital analysis, governance, or reporting decisions.