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Combined MCR

MCR

Calculate the Combined MCR instantly.

Capital inputs
€
€

Combined MCR

€14 100 000

MCR Floor

€14 100 000

MCR Ceiling

€25 380 000

Minimum Capital Requirement corridor

25.0%0%100% SCR25%Floor45%Ceiling
At floor
1Step 1

MCR Floor

MCR Floor=Final SCR×0.25\textit{MCR Floor} = \textit{Final SCR} \times 0.25
2Step 2

MCR Ceiling

MCR Ceiling=Final SCR×0.45\textit{MCR Ceiling} = \textit{Final SCR} \times 0.45
3Step 3

Combined MCR

Combined MCR=min⁡(max⁡(Linear MCR,MCR Floor),MCR Ceiling)\textit{Combined MCR} = \min(\max(\textit{Linear MCR}, \textit{MCR Floor}), \textit{MCR Ceiling})
Understand the Combined MCR

Overview

This calculator implements Combined MCR within the minimum-capital chain.[1][2] It applies the 25% to 45% SCR corridor to the Linear Minimum Capital Requirement before the separate absolute-floor comparison.[2]

Use it after the linear MCR has been prepared and the final SCR is available. The output is an intermediate regulatory step, not yet the final minimum-capital requirement.

Input Terms

  • Linear Minimum Capital Requirement: Linear MCR result before applying the corridor.
  • Final Solvency Capital Requirement: Final SCR used to derive the lower and upper corridor bounds.

Calculation

The corridor is applied directly to the visible inputs.

  • Minimum Capital Requirement Floor: = `25% × Final Solvency Capital Requirement`.
  • Minimum Capital Requirement Ceiling: = `45% × Final Solvency Capital Requirement`.
  • Combined Minimum Capital Requirement: is the Linear Minimum Capital Requirement clamped between that floor and ceiling.[2]

Important Notes

  • This page does not apply the statutory absolute floor. If the combined result is below the legal floor, Final MCR will still move up at the next step.
  • The corridor is risk-sensitive only through the SCR input. If SCR changes, both corridor bounds move even when the linear MCR does not.
  • A binding floor means the linear MCR is too low relative to SCR. A binding ceiling means the linear MCR is too high to exceed the 45% cap.

Sources

  1. Directive 2009/138/EC - Art. 129 (Calculation of the Minimum Capital Requirement) - EIOPA
  2. Delegated Regulation (EU) 2015/35 - Art. 248 (Minimum Capital Requirement) - EUR-Lex

Solvency II - Pillar 1, Minimum Capital Requirement. 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.