Underwriting Stressed BoF Loss Bridge

Overview

This calculator isolates the stressed basic-own-funds loss bridge used by life, health, and non-life underwriting shock calculators.^[1]

Input Terms

• Basic Own Funds Before Stress: The opening own-funds amount before the selected underwriting stress.
• Asset Change: The change in stressed asset value.
• Technical Provisions Increase: The stressed increase in technical provisions.
• Other Liabilities Increase: The stressed increase in other liabilities.
• Tax Effect: The tax effect recognized in the stressed balance sheet.
• Other Own-Funds Change: Any other stressed own-funds movement included in the bridge.
• Evidence Flags: Internal completeness flags for full balance-sheet revaluation and model-run evidence.

Technical Rationale

The bridge rebuilds stressed basic own funds from the visible balance-sheet movements:

`Stressed BoF = base BoF + asset change + tax effect + other own-funds change - technical provisions increase - other liabilities increase`

The standalone loss is then:

`Underwriting stressed BoF loss = max(base BoF - stressed BoF, 0)`

Important Notes

• This is an educational atomistic calculator for the valuation-delta bridge. It does not decide which underwriting stress applies.
• Use the relevant life, health, or non-life shock calculator for the legal stress rate, scenario branch, or module aggregation.
• Evidence controls remain internal audit scope. Public calculators should disclose the calculation basis and assumptions without exposing audit-only control detail.
• The bridge supports direct shock calculators that feed the S.25.01.01 standard-formula reporting view through their module results.[[ref: qrt-s2501]]