S.L. 403.17 Art. 12Choice of method.

(1) The calculation of the solvency at the level of the group of the authorised insurance undertakings and authorised reinsurance undertakings referred to in regulation 3(2)(a), shall be carried out:

(a) in accordance with the technical principles in regulations 13 to 26; and

(b) in accordance with method 1, unless the group supervisor has determined under Article 220(2) of the Solvency II Directive that method 2 or a combination of method 1 and method 2 shall be applied.

(2) Where the competent authority is the group supervisor of a group, the authority shall consult the group and the other European regulatory authorities concerned in the supervision of the group, before taking a decision in accordance with sub-regulation (1)(b) on requiring the particular group to use method 2 or a combination of method 1 and method 2, for the calculation of the solvency at the level of the group, where the exclusive application of method 1 would not be appropriate.

(3) Where the competent authority is one of the authorities responsible for the supervision of an individual insurance or reinsurance undertaking in a group and is not the group supervisor, the competent authority shall apply the method chosen by the group supervisor for the ultimate parent insurance or reinsurance undertaking, insurance holding company or mixed financial holding company at Union level, in relation to:

(a) group supervision at national level in accordance with regulation 8(1); and

(b) supervision at sub-group level in accordance with regulation 8(11).