Question ID: 1394
Regulation Reference: (EU) No 2015/35 - supplementing Dir 2009/138/EC - taking up & pursuit of the business of Insurance and Reinsurance (SII)
Article: 204
Status: Final
Date of submission: 26 Jul 2018
Question
Could you please explain how Premiums Earned should be calculated in case of the merger of 2 undertakings (t.i. one company takes over all business of another company and continues to operate, another company ceases operations)?
EIOPA answer
The premiums referred to in Article 204(3) of Commission Delegated Regulation (EU) 2015/35 should be the premiums earned by the insurance or reinsurance undertaking for which the capital requirement for operational risk is calculated. These premiums may differ from the premiums earned on the portfolio of insurance and reinsurance contracts currently held by the undertaking, for example because one company has taken over all business of another company or two companies have merged. No adjustments to the premiums earned by the insurance or reinsurance undertaking for portfolio transfers should be made.