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Ring-Fenced Funds and Restricted Capital

Calculate the Total Locked Restricted Own Funds, Accessible Solvency Capital Requirement Own Funds Before Deductions, and Accessible Solvency Capital Requirement Coverage Ratio instantly.

€
€
Restricted SliceAttached Own FundsRequired SCRTransferabilityTransferableLockedCoverageShortfall
Ring-Fenced Fund 1
€
€
%
€2 400 000€13 600 000145.45%€0
Ring-Fenced Fund 2
€
€
%
€600 000€11 400 000141.18%€0
Ring-Fenced Fund 3
€
€
%
€0€9 000 000125.00%€0
Matching-Adjustment Portfolio 1
€
€
%
€4 200 000€9 800 000133.33%€0
Matching-Adjustment Portfolio 2
€
€
%
€1 600 000€6 400 000133.33%€0

Locked Restricted Own Funds

€50 200 000

=

Total Attached Own Funds

€59 000 000

−

Total Transferable Own Funds

€8 800 000

Accessible SCR Own Funds

€74 800 000

=

SCR Own Funds Before Deductions - Locked Restricted Own Funds

€74 800 000

>

Zero Floor

€0

Buffer vs Article 217 SCR

€8 800 000

=

Accessible SCR Own Funds

€74 800 000

−

Article 217 Final SCR

€66 000 000

Accessible SCR Coverage Ratio

113.33%

=

Accessible SCR Own Funds

€74 800 000

÷

Article 217 Final SCR

€66 000 000

Restricted Capital Diagnostics

Total Restricted Required SCR

€43 200 000

1Step 1

Convert each restricted slice into transferable and locked own funds

Transferablei=OFi×ti,Lockedi=max⁡(OFi−Transferablei,0)Transferable_i=OF_i\times t_i,\quad Locked_i=\max(OF_i-Transferable_i,0)
2Step 2

Measure any restricted-slice shortfall against the notional SCR requirement

Shortfalli=max⁡(SCRi−OFi,0)Shortfall_i=\max(SCR_i-OF_i,0)
3Step 3

Deduct locked restricted capital from SCR own funds before deductions

AccessibleOF=max⁡(OFpre−∑Lockedi,0)AccessibleOF=\max(OF_{pre}-\sum Locked_i,0)

Understand the Ring-Fenced Funds and Restricted Capital

Overview

This calculator extends the Article 217 split branch into a dedicated restricted-capital availability step.[1] It classifies own funds attached to ring-fenced funds and matching-adjustment portfolios into transferable versus locked amounts, then computes the accessible SCR own-funds amount available before deductions after restrictions.[2][3]

Input Terms

  • SCR Own Funds Before Deductions: Upstream cap-compliant own funds amount before explicit deduction items are applied.
  • Article 217 Final SCR: SCR baseline from the Article 217 notional split chain.
  • Slice Attached Own Funds: Capital legally attached to each ring-fenced fund or matching-adjustment portfolio.
  • Slice Required Notional SCR: Required notional SCR for each restricted slice.
  • Slice Transferability Percent: Portion of attached own funds assessed as transferable outside the slice under legal and operational constraints.

Technical Rationale

For each restricted slice, the calculator converts transferability percentages into factors, computes transferable own funds, locked own funds, coverage ratio, and shortfall. It then aggregates totals across all restricted slices and derives:

  • total restricted required SCR,
  • total transferable restricted own funds,
  • total locked restricted own funds,
  • accessible SCR own funds before deductions, and
  • accessible SCR coverage ratio against the Article 217 final SCR baseline.

This keeps restricted-capital mechanics atomistic and separate from SCR aggregation itself.

Important Notes

  • No full build: The calculator only performs restricted-capital availability logic and does not recompute full SCR.
  • Upstream dependencies: It assumes Article 217 split outputs and the `own-funds-eligibility-caps` result are provided upstream.
  • Governance sensitivity: Transferability percentages are policy/legal controls and should be evidence-backed in production governance.
  • Current-rule check: Because post-2015 Solvency II amendments include own-funds and group-solvency changes, restricted-capital availability assumptions must be verified against the current consolidated rulebook before professional use.

Sources

  1. Delegated Regulation (EU) 2015/35 - Art. 217 (Solvency Capital Requirement calculation method for ring-fenced funds and matching adjustment portfolios) - EIOPA
  2. Directive 2009/138/EC - Art. 81 (Recoverables from reinsurance contracts and special purpose vehicles) - EIOPA
  3. Delegated Regulation (EU) 2015/35 - Art. 216 (Calculation of the Solvency Capital Requirement in the case of ring-fenced funds and matching adjustment portfolios) - 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.