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Intra-Group Double Gearing

Calculate the Double-Gearing Elimination, Adjusted Group Eligible Own Funds for Solvency Capital Requirement, and Adjusted Group Solvency Capital Requirement Coverage Ratio instantly.

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Adjusted Group Eligible Own Funds SCR

€69 450 000

1Step 1

Double-Gearing Candidate

Double-Gearing Candidate=Intra-Group Cross-Holdings Amount+Reciprocal Participations Amount+Own-Funds Reuse Amount+Structural Overstatement Amount\textit{Double-Gearing Candidate} = \textit{Intra-Group Cross-Holdings Amount} + \textit{Reciprocal Participations Amount} + \textit{Own-Funds Reuse Amount} + \textit{Structural Overstatement Amount}
2Step 2

Double-Gearing Elimination

Double-Gearing Elimination=min⁡(Double-Gearing Candidate,Group Eligible Own Funds SCR)\textit{Double-Gearing Elimination} = \min(\textit{Double-Gearing Candidate}, \textit{Group Eligible Own Funds SCR})
3Step 3

Uncovered Double-Gearing Amount

Uncovered Double-Gearing Amount=max⁡(0,Double-Gearing Candidate−Group Eligible Own Funds SCR)\textit{Uncovered Double-Gearing Amount} = \max(0, \textit{Double-Gearing Candidate} - \textit{Group Eligible Own Funds SCR})
4Step 4

Adjusted Group Eligible Own Funds SCR

Adjusted Group Eligible Own Funds SCR=max⁡(0,Group Eligible Own Funds SCR−Double-Gearing Elimination)\textit{Adjusted Group Eligible Own Funds SCR} = \max(0, \textit{Group Eligible Own Funds SCR} - \textit{Double-Gearing Elimination})
5Step 5

Adjusted Group SCR Coverage Ratio

Adjusted Group SCR Coverage Ratio={0Group SCR Requirement≤0100×Adjusted Group Eligible Own Funds SCRGroup SCR RequirementGroup SCR Requirement>0\textit{Adjusted Group SCR Coverage Ratio} = \begin{cases}0 & \textit{Group SCR Requirement} \le 0 \\ 100 \times \frac{\textit{Adjusted Group Eligible Own Funds SCR}}{\textit{Group SCR Requirement}} & \textit{Group SCR Requirement} > 0\end{cases}
6Step 6

Adjusted Group Buffer vs SCR

Adjusted Group Buffer vs SCR=Adjusted Group Eligible Own Funds SCR−Group SCR Requirement\textit{Adjusted Group Buffer vs SCR} = \textit{Adjusted Group Eligible Own Funds SCR} - \textit{Group SCR Requirement}

Understand the Intra-Group Double Gearing

Overview

This calculator implements an atomistic intra-group double-gearing elimination step.[1] It removes overlapping capital recognition caused by cross-holdings, reciprocal participations, and own-funds reuse before final group SCR coverage is assessed.

Input Terms

  • Group Eligible Own Funds for SCR: Upstream group-eligible own funds from the transferability step.
  • Group SCR Requirement: Group SCR denominator used to measure post-elimination coverage.
  • Intra-Group Cross-Holdings Amount: Capital counted multiple times through intra-group holdings.
  • Reciprocal Participations Amount: Duplicate recognition from reciprocal ownership structures.[2]
  • Own-Funds Reuse Amount: Capital resources reused across entities/chains.
  • Structural Overstatement Amount: Additional identified overstatement to eliminate.

Technical Rationale

The calculator first aggregates all duplication drivers into a double-gearing candidate. It then caps elimination at available group-eligible own funds and derives:

  • elimination amount,
  • uncovered duplicate amount,
  • adjusted group-eligible own funds for SCR,
  • adjusted coverage ratio, and
  • adjusted buffer versus group SCR.

This keeps duplication controls separate from group transferability and from group SCR consolidation logic.

Important Notes

  • Atomistic scope: This calculator only performs elimination mechanics; it does not perform full group consolidation.
  • Upstream dependency: Inputs should come from the group transferability step and group SCR chain.
  • Governance: Duplicate-capital identification should be evidence-backed with legal/entity mapping.

Sources

  1. Directive 2009/138/EC - Art. 222 (Intermediate insurance holding companies) - EIOPA
  2. Directive 2009/138/EC - Art. 223 (Elimination of intra-group creation of capital) - EUR-Lex

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.