In QRT S.23.01.01 Own Funds cell R0070/C0020, undertakings should report the total amount of surplus funds that fall under Article 91(2) of the Directive 2009/138/EC. The article does not restrict the line of business although the situation would be more common in the life business, as referred in Recital (50).

For UK undertakings, the Solvency II concept of 'surplus funds' is only relevant in the context of profit-participation business (i.e. with-profits). Article 91(2) of the Solvency II Directive allows for surplus funds to be authorised under national law. In the UK, the PRA made rules pertaining to the calculation of surplus funds and also issued a supervisory statement (SS13/15) setting out its expectations of firms with respect to surplus funds. Those rules and supervisory statement only apply to UK Solvency II firms carrying on with-profits insurance business. Therefore, UK undertakings without with-profits insurance business should leave cell R0070/C0020 of QRT S.23.01.01 Own Funds blank. UK general insurance undertakings should report all accumulated profits as part of the 'Reconciliation reserve' in cell R0130/C0020.

The PRA has also set out an expectation that the restrictions on assets and own funds within a with-profits fund will generally mean that each with-profits fund displays the characteristics of a Solvency II ring-fenced fund. A UK Solvency II firm will therefore be required to reflect the lack of availability of assets and own funds within a with-profits fund to cover the risks of the rest of the firm. An amount of surplus funds reported in R0070/C0020 of QRT S.23.01.01 Own Funds should be net of any adjustments to ring-fenced own funds as required by Articles 80 and 81 of the Delegated Regulations.