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Risk Margin Cost-of-Capital Charge

Calculate the Risk Margin instantly.

€
%

Risk Margin

€104 738

1Step 1

Risk Margin

Risk Margin=Discounted Sum of Future Reference Undertaking Solvency Capital Requirements×Cost-of-Capital Rate\textit{Risk Margin} = \textit{Discounted Sum of Future Reference Undertaking Solvency Capital Requirements} \times \textit{Cost-of-Capital Rate}

Understand the Risk Margin Cost-of-Capital Charge

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.
  • Cost-of-Capital Rate: The Article 39 Cost-of-Capital rate.

Technical Rationale

The calculator applies the final legal multiplication:

`Risk margin = discounted SCR sum x Cost-of-Capital rate`

Important Notes

  • Commission Delegated Regulation (EU) 2026/269 changed the Article 39 Cost-of-Capital rate from the original 2015/35 basis to 4.75%.
  • This is the atomistic final risk-margin amount. It does not own the reference-undertaking SCR build, projection run-off, discount curve, or evidence workflow.
  • The result feeds 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]][4]

Sources

  1. Delegated Regulation (EU) 2015/35 - Art. 37 (Risk margin) - EIOPA
  2. Delegated Regulation (EU) 2015/35 - Art. 39 (Cost-of-Capital rate) - EIOPA
  3. Commission Implementing Regulation (EU) 2023/894 - QRT S.12.01.01/S.12.01.02 (Life and Health SLT technical provisions) - EUR-Lex
  4. Commission Implementing Regulation (EU) 2023/894 - QRT S.17.01.01/S.17.01.02 (Non-life technical provisions) - EUR-Lex

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.