Prudential Regulation Authority Rulebook

6.1

In meeting the reporting requirements for third-country branch undertakings as set out in Third Country Branches 9.1, the PRA expects third-country branch undertakings to use the reporting templates set out in the EIOPA Branch Guidelines (as at the end of the transition period). The PRA may decide which quarterly or annual quantitative reporting templates (QRTs) should be submitted by each third-country branch undertaking.⁸

6.2

Third-country branch undertakings should contact their usual supervisory contact to confirm which templates the PRA expects the undertaking to submit. The PRA’s expectation is that reporting will fall into one of three groups:

• group 1 - branches designated by the PRA as Category one, two or three undertakings;
• group 2 - branches designated by the PRA as Category four undertakings; and
• group 3 - branches that are pure reinsurance branches.

6.3

Full reporting is expected for branches allocated to group 1 and limited reporting for branches allocated to groups 2 and 3. All branches are expected to report minimum capital requirement (MCR) templates S.28.01.01 and S.28.02.01 on an annual basis, at the end of firms’ financial year.

6.4

The templates to be submitted for each of these three reporting groups are set out in table 1.

6.5

[Deleted].

6.6

The PRA expects branches to use the XBRL format for the submission of quarterly and annual reporting QRTs.

6.7

The branch assets which may be included in the branch reporting templates depend upon the analysis of how branch assets would be distributed in a winding up. This is relevant where the winding up regime applicable to the third-country branch undertaking does not deliver the protection to branch insurance policyholders that Solvency II requires. The analysis required to assess this may take some time to procure. Third-country branch undertakings should agree with the PRA through their supervisory contact a reasonable time for this to be obtained and the basis on which branch assets are reported while that analysis is being assessed. 

6.8

[Deleted].

6.9

Third-country branches should refer to Supervisory Statement 40/15, ‘Solvency II: Reporting and public disclosure - options provided to supervisory authorities.⁹ SS40/15 specifies the PRA’s approach where discretion is given to supervisory authorities in the instructions accompanying the QRTs. The supervisory statement sets out the PRA’s expectations in the following areas that are relevant to branches:

• accident or underwriting year reporting for templates, where this is relevant (section 4); 
• claim size bands for reporting loss distribution risk profile (section 5);
• sum insured bands for reporting non-life distribution of underwriting risks by sum insured (section 6);
• lines of business to be reported for the reporting of non-life distribution of underwriting risks by sum insured (section 7);
• reporting of annuities stemming from non-life obligations by currency (section 8); and
• development of the distribution of reported but not settled (RBNS) claims - reporting of numbers of claims (section 9).

Table 1 reporting templates

6.10

Where the EIOPA Branch Guidelines (as at the end of the transition period) refer to templates that the PRA has deleted or amended after the end of the transition period, firms should treat these specific guidelines as no longer relevant, and should base the reporting requirements in relation to these specific templates in light of the subsequent amendments implemented by the PRA.