Risk Margin Cost-of-Capital Amount

Overview

This calculator isolates the final Article 37 cost-of-capital multiplication for the risk margin.^[1][2]

Input Terms

• Discounted Sum of Future Reference Undertaking SCRs: The prepared sum of discounted projected SCR terms.^[3]
• Cost-of-Capital Rate: The Article 39 Cost-of-Capital rate.^[1]

Technical Rationale

Article 37 frames the risk margin as the compensation a reference undertaking would require for holding capital over the run-off of the transferred obligations.^[1] The discounted SCR sum represents the future capital profile; the Article 39 Cost-of-Capital rate translates that profile into a market-consistent transfer cost.^[2]

This final multiplication is kept distinct so changes in projection, discounting, or the regulatory Cost-of-Capital rate remain separately auditable.

Important Notes

• Commission Delegated Regulation (EU) 2026/269 changes the Article 39 Cost-of-Capital rate from the original 2015/35 basis to 4.75% from 30 January 2027.
• This is the final risk-margin amount. It does not own the reference-undertaking SCR build, projection run-off, discount curve, or source evidence.
• The result supports technical-provisions reconciliation and the S.12.01.01/S.12.01.02 and S.17.01.01/S.17.01.02 technical-provisions reporting views where the risk margin is required.[[ref: qrt-s1201]]^[5]