Indicators to be included in every recovery plan (Insurance Companies)

(Insurance Companies may justify not including an indicator that is not sufficiently relevant to them)

1. Capital indicators

a) Admissible assets less liabilities

b) Own funds eligible to meet the minimum capital requirement (MCR)

c) MCR surplus/ deficit

d) Own funds to meet solvency capital requirement (SCR)

e) SCR surplus/ deficit

f) Own funds eligible to meet the MGF

g) SCR ratio - groups

h) SCR ratio - non-life/general

i) SCR ratio - life/family

j) SCR underwriting

k) SCR market

l) SCR counterparty default

m) SCR operational

2. Liquidity indicators

a) Liquid assets ratio

3. Profitability indicators

a) Net combined ratio - non-life

b) Investment return - non-life/general (considering the segregation of accounts for takaful)

b) Investment return - life/family (considering the segregation of accounts for takaful)

c) Assets over liabilities

d) Return on excess of assets over liabilities

e) Return on assets

f) Return to premiums/contributions (both Gross and Net)

g) Underwriting surplus

4. Market-based indicators

a) Concentration of assets

b) Duration mismatch (years)

5. Credit Risk indicators

a) Average rating of investments (credit quality step)

b) Share of below investment grade assets (credit quality step > 3)

6. Reserving indicators

The Insurer or Re-insurer/Takaful insurance or Re-takaful insurance companies must consider including reserving indicators that measure and monitor the development of its technical provisions. Reserving indicators may include key reserving assumptions such as relevant yield curve, lapse rates or changes to the value of options and guarantees or expected profits included in future premiums/contributions.