PET - Plain English Taxonomy

Label: Financial Risk Solvency Resilience Total Amount
TREF ID: DE5549
Data Type: xbrli:monetaryItemType
Period Type: instant
Balance Type: credit
Business Description & Guidance:
Report the total Resilience Reserve (RR) for this reporting party, to be calculated as:RR    =   L' x [A / A'] ' L;Where:A        =  Admissible Assets with a resilience requirement (see below) prior to prescribed change; L       =  Liabilities prior to prescribed change - the total liabilities as determined in accordance with the solvency prudential standard, for capital requirements purposes.L'    =  Liabilities adjusted for the prescribed yield change in the discount rate used in their valuation, in accordance with the solvency standard.A'    =  Adjusted value of admissible assets (see below); Adjusted value of admissible assets is the value of total admissible assets with resilience requirement adjusted for:- Credit Risk Yield Changes;- Prescribed Yield Changes (allowing for diversification factor);- Adverse Exchange Movement factor; and- Credit Risk Default factorsas determined in accordance with the solvency standards.Total admissible assets is the value of total assets as determined in accordance with the accounting standards, including accrued income, less the value of those deemed to be inadmissible, as per the solvency standard. The inadmissible assets are: a) assets which have a value that is dependent upon the continuation of the business;b) holdings in an associated or subsidiary entity which is a Financial Services entity;c) non-realisable (in the context of the solvency tests) intangible assets;d) assets with too little diversification, are too illiquid or have too great an exposure to one obligor of low credit standing;e) reinsurance assets which may not be fully recoverable in the context of the solvency tests; andf) amounts by which the recorded value of an asset exceeds its net realisable value.The Resilience Reserve is determined as the additional amount that needs to be held before the happening of a prescribed set of changes in the economic environment, such that after the changes the admissible assets of the reporting party are able to meet the policy owner and other liabilities of the statutory fund. There is no resilience requirement where the policy owner liabilities of the statutory fund move in harmony with the assets supporting them. 

Usage
Form Labels
Label:
Total Amount of Solvency Resilience Reserve for this Fund