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Own Funds Eligibility Caps

Calculate the Solvency Capital Requirement Own Funds Before Deductions instantly.

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SCR Own Funds Before Deductions

€125 000 000

1Step 1

Tier 1 Restricted Cap

Tier 1 Restricted Cap=Tier 1 Unrestricted×0.25\textit{Tier 1 Restricted Cap} = \textit{Tier 1 Unrestricted} \times 0.25
2Step 2

Eligible Tier 1 Restricted

Eligible Tier 1 Restricted=min⁡(Tier 1 Restricted,Tier 1 Restricted Cap)\textit{Eligible Tier 1 Restricted} = \min(\textit{Tier 1 Restricted}, \textit{Tier 1 Restricted Cap})
3Step 3

Tier 1 Restricted Excess

Tier 1 Restricted Excess=max⁡(0,Tier 1 Restricted−Eligible Tier 1 Restricted)\textit{Tier 1 Restricted Excess} = \max(0, \textit{Tier 1 Restricted} - \textit{Eligible Tier 1 Restricted})
4Step 4

Tier 1 Total

Tier 1 Total=Tier 1 Unrestricted+Eligible Tier 1 Restricted\textit{Tier 1 Total} = \textit{Tier 1 Unrestricted} + \textit{Eligible Tier 1 Restricted}
5Step 5

Tier 2 Total

Tier 2 Total=Tier 2 Basic+Tier 2 Ancillary\textit{Tier 2 Total} = \textit{Tier 2 Basic} + \textit{Tier 2 Ancillary}
6Step 6

SCR Combined Tier 2 and Tier 3 Cap

SCR Combined Tier 2 and Tier 3 Cap=Final SCR×0.5\textit{SCR Combined Tier 2 and Tier 3 Cap} = \textit{Final SCR} \times 0.5
7Step 7

SCR Tier 2 Cap

SCR Tier 2 Cap=Final SCR×0.5\textit{SCR Tier 2 Cap} = \textit{Final SCR} \times 0.5
8Step 8

SCR Tier 3 Cap

SCR Tier 3 Cap=Final SCR×0.15\textit{SCR Tier 3 Cap} = \textit{Final SCR} \times 0.15
9Step 9

SCR Eligible Tier 2

SCR Eligible Tier 2=min⁡(Tier 2 Total,SCR Combined Tier 2 and Tier 3 Cap)\textit{SCR Eligible Tier 2} = \min(\textit{Tier 2 Total}, \textit{SCR Combined Tier 2 and Tier 3 Cap})
10Step 10

SCR Eligible Tier 3

SCR Eligible Tier 3=min⁡(Tier 3 Total,SCR Tier 3 Cap,max⁡(0,SCR Combined Tier 2 and Tier 3 Cap−SCR Eligible Tier 2))\textit{SCR Eligible Tier 3} = \min(\textit{Tier 3 Total}, \textit{SCR Tier 3 Cap}, \max(0, \textit{SCR Combined Tier 2 and Tier 3 Cap} - \textit{SCR Eligible Tier 2}))
11Step 11

SCR Tier 2 Excess

SCR Tier 2 Excess=max⁡(0,Tier 2 Total−SCR Eligible Tier 2)\textit{SCR Tier 2 Excess} = \max(0, \textit{Tier 2 Total} - \textit{SCR Eligible Tier 2})
12Step 12

SCR Tier 3 Excess

SCR Tier 3 Excess=max⁡(0,Tier 3 Total−SCR Eligible Tier 3)\textit{SCR Tier 3 Excess} = \max(0, \textit{Tier 3 Total} - \textit{SCR Eligible Tier 3})
13Step 13

SCR Own Funds Before Deductions

SCR Own Funds Before Deductions=Tier 1 Total+SCR Eligible Tier 2+SCR Eligible Tier 3\textit{SCR Own Funds Before Deductions} = \textit{Tier 1 Total} + \textit{SCR Eligible Tier 2} + \textit{SCR Eligible Tier 3}
14Step 14

MCR Tier 2 Cap

MCR Tier 2 Cap=Final MCR×0.2\textit{MCR Tier 2 Cap} = \textit{Final MCR} \times 0.2
15Step 15

MCR Eligible Tier 2

MCR Eligible Tier 2=min⁡(Tier 2 Total,MCR Tier 2 Cap)\textit{MCR Eligible Tier 2} = \min(\textit{Tier 2 Total}, \textit{MCR Tier 2 Cap})
16Step 16

MCR Tier 2 Excess

MCR Tier 2 Excess=max⁡(0,Tier 2 Total−MCR Eligible Tier 2)\textit{MCR Tier 2 Excess} = \max(0, \textit{Tier 2 Total} - \textit{MCR Eligible Tier 2})
17Step 17

MCR Own Funds Before Deductions

MCR Own Funds Before Deductions=Tier 1 Total+MCR Eligible Tier 2\textit{MCR Own Funds Before Deductions} = \textit{Tier 1 Total} + \textit{MCR Eligible Tier 2}
18Step 18

MCR Tier 1 Coverage Ratio

MCR Tier 1 Coverage Ratio={0MCR Own Funds Before Deductions≤0100×Tier 1 TotalMCR Own Funds Before DeductionsMCR Own Funds Before Deductions>0\textit{MCR Tier 1 Coverage Ratio} = \begin{cases}0 & \textit{MCR Own Funds Before Deductions} \le 0 \\ 100 \times \frac{\textit{Tier 1 Total}}{\textit{MCR Own Funds Before Deductions}} & \textit{MCR Own Funds Before Deductions} > 0\end{cases}
19Step 19

MCR Tier 1 Requirement Met (0/1)

MCR Tier 1 Requirement Met (0/1)=gte⁡(MCR Tier 1 Coverage Ratio,80)\textit{MCR Tier 1 Requirement Met (0/1)} = \operatorname{gte}\left(\textit{MCR Tier 1 Coverage Ratio}, 80\right)

Understand the Own Funds Eligibility Caps

Overview

This calculator is the atomistic Article 82 cap layer for own-funds eligibility.[1][2] It applies SCR and MCR tier limits to Tier 1, Tier 2, and Tier 3 amounts and outputs pre-deduction eligible amounts for downstream deduction and final-eligibility calculators.

Input Terms

  • Tier Inputs: Tier 1 unrestricted/restricted, Tier 2 basic/ancillary, and Tier 3.
  • Final SCR / Final MCR: Denominators used to apply cap constraints.

Technical Rationale

The calculator computes total tier amounts, caps restricted Tier 1 at 25% of unrestricted Tier 1, applies the combined SCR lower-tier cap so Tier 2 plus Tier 3 do not exceed 50% of final SCR, applies the Tier 3 15% SCR cap with remaining lower-tier headroom, applies the MCR cap to Tier 2, and reports excess over cap where relevant. It outputs the cap-compliant pre-deduction own-funds amounts for SCR and MCR, plus a Tier 1 coverage check for MCR.

Important Notes

  • Atomistic scope only: This calculator does not apply deduction items or produce final eligible own funds.
  • Chain position: Outputs are intended to feed `own-funds-eligibility-deductions` and then `eligible-own-funds`.
  • Article 82 caps: The restricted Tier 1 and combined lower-tier limits are visible as separate outputs so cap breaches can be traced before deductions are applied.

Sources

  1. Directive 2009/138/EC - Art. 98 (Eligibility of own funds) - EUR-Lex
  2. Delegated Regulation (EU) 2015/35 - Art. 82 (Eligibility and limits applicable to Tiers 1, 2 and 3) - EIOPA

Default values are illustrative sample inputs for navigation, training, and QA. Replace them with controlled data before using the result in capital analysis, governance, or reporting decisions.