Solvency II
Pillar 1: own funds – Solvency II

Solvency II Art.87-90: Arts 87 to 90 Determine own funds and obtain approval for ancillary own funds

What does Art.87-90 require?

Own funds are basic own funds (excess of assets over liabilities, less own shares held, plus subordinated liabilities) and ancillary own funds (items that can be called up to absorb losses, such as unpaid capital, letters of credit, guarantees or mutual supplementary calls). The amounts of ancillary items counted require prior supervisory approval of an amount or method, based on counterparty ability and willingness to pay, recoverability and past call experience.

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