We have a question relating to the solo reporting in S.06.02.01, cell C0100 “Asset pledged as collateral”. In line with the instructions, assets kept in the undertaking's balance-sheet that are pledged as collateral should be identified.

We are wondering whether the following commitment gives rise to such collateral as intended to be captured in cell C0100 of the QRT?

In order to ensure insurance claims take precedence over other claims, Sweden as an EEA member state has upon implementation of Solvency II adopted legislation in line with the option set out in article 275(1a), i.e., with regard to assets in the undertaking’s balance sheet representing the technical provisions, insurance claims shall take absolute precedence over any other claim on the insurance undertaking.

In line with the requirements of 275.3 and 276, Sweden requires insurance undertakings to establish and keep up to date a “special register”, in accordance with the requirements as set out in Article 276. The special register is referred to as the “förmånsrättsregister” in the Insurance Business Act (Försäkringsrörelselagen 2010:2043, effective from 1st January 2016). The provisions of this act together with section 4 (a) of the Priority Rights Act (Förmånsrättslagen 1970:979), establishes the special preferential rights of policyholders and beneficiaries, against other creditors’ claims. According to Insurance Business Act, and in line with article 276, an insurance company must keep a register (förmånsrättsregister) which at all times shows which assets are used (or "pledged as collateral") to cover the technical provisions and which indicates how assets used to cover the technical provisions are calculated and invested in accordance with the Swedish governing law.

In case a Swedish insurance undertaking has occupational retirement provision business, certain provisions of the IORP Directive may still continue to be applied in accordance with Article 4 of the IORP Directive, under a transitional period (in accordance with article 308b(15) of the Solvency II Directive, the transitional period is active until 31 December 2022). In that case, similar measures to article 275 and 276 have been adopted by Sweden through article 10 and the Annex of Directive 2001/17/EC, which continue to be applied through provisions set out in the Insurance Business Act and Priority Rights Act applicable immediately prior to Solvency II implementation. The special register is referred to as the “skuldtäckningsregister” in the Insurance Business Act (Försäkringsrörelselagen 2010:2043, effective until 31 December 2015).

Regarding the information to be detailed in S.06.02.01, we are wondering whether an asset recorded in the “special register” either should be regarded as “1 — Assets in the balance sheet that are collateral pledged” or “9 — Not collateral”.