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Own Funds Eligibility Deductions

Calculate the Total Deductions for Solvency Capital Requirement instantly.

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Total Deductions for SCR

€53 700 000

1Step 1

Common Deductions Total

Common Deductions Total=Foreseeable Dividends Deduction+Non-Available Participations Deduction+Other Deduction Items\textit{Common Deductions Total} = \textit{Foreseeable Dividends Deduction} + \textit{Non-Available Participations Deduction} + \textit{Other Deduction Items}
2Step 2

Restricted-Capital Deduction Adjustment

Restricted-Capital Deduction Adjustment=max⁡(0,SCR Own Funds Before Deductions−Restricted-Capital Accessible SCR Own Funds Before Deductions)\textit{Restricted-Capital Deduction Adjustment} = \max(0, \textit{SCR Own Funds Before Deductions} - \textit{Restricted-Capital Accessible SCR Own Funds Before Deductions})
3Step 3

Total Deductions for SCR

Total Deductions for SCR=Common Deductions Total+Restricted-Capital Deduction Adjustment\textit{Total Deductions for SCR} = \textit{Common Deductions Total} + \textit{Restricted-Capital Deduction Adjustment}
4Step 4

Total Deductions for MCR

Total Deductions for MCR=Foreseeable Dividends Deduction+Non-Available Participations Deduction+Other Deduction Items\textit{Total Deductions for MCR} = \textit{Foreseeable Dividends Deduction} + \textit{Non-Available Participations Deduction} + \textit{Other Deduction Items}
5Step 5

SCR Deduction Ratio

SCR Deduction Ratio={0SCR Own Funds Before Deductions≤0100×Total Deductions for SCRSCR Own Funds Before DeductionsSCR Own Funds Before Deductions>0\textit{SCR Deduction Ratio} = \begin{cases}0 & \textit{SCR Own Funds Before Deductions} \le 0 \\ 100 \times \frac{\textit{Total Deductions for SCR}}{\textit{SCR Own Funds Before Deductions}} & \textit{SCR Own Funds Before Deductions} > 0\end{cases}
6Step 6

MCR Deduction Ratio

MCR Deduction Ratio={0MCR Own Funds Before Deductions≤0100×Total Deductions for MCRMCR Own Funds Before DeductionsMCR Own Funds Before Deductions>0\textit{MCR Deduction Ratio} = \begin{cases}0 & \textit{MCR Own Funds Before Deductions} \le 0 \\ 100 \times \frac{\textit{Total Deductions for MCR}}{\textit{MCR Own Funds Before Deductions}} & \textit{MCR Own Funds Before Deductions} > 0\end{cases}

Understand the Own Funds Eligibility Deductions

Overview

This calculator is the atomistic deduction layer for own-funds eligibility.[1][2] It applies explicit deduction items and the restricted-capital adjustment to cap-compliant pre-deduction own funds.

Input Terms

  • Pre-Deduction Own Funds: SCR and MCR pre-deduction values from the caps calculator.
  • Restricted-Capital Accessible SCR Own Funds Before Deductions: Upper-bound control from the restricted-capital branch after ring-fenced / MA restrictions but before explicit deduction items.
  • Deduction Items: Foreseeable dividends, non-available participations, and other deduction items.

Technical Rationale

The calculator computes common deductions, adds SCR-only restricted-capital adjustment where applicable, and outputs total deductions for SCR and MCR. It also reports deduction ratios to support governance checks.

Important Notes

  • Atomistic scope only: This calculator does not apply tier caps and does not compute final eligibility by itself.
  • Chain position: Outputs are intended to feed the final `eligible-own-funds` calculator.

Sources

  1. Directive 2009/138/EC - Art. 98 (Eligibility of own funds) - EUR-Lex
  2. Delegated Regulation (EU) 2015/35 - Art. 82 (Eligibility and limits applicable to Tiers 1, 2 and 3) - EIOPA

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.