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TP Gross-Net Reconciliation

Calculate the Net Technical Provisions instantly.

€
€
€

Net TP

€-16 434 291

Gross to net bridge

Gross TP

€19 601 709

Net Reinsurance Recoverables

€36 036 000

Reinsurance Relief Ratio

183.8%

Net to Gross TP Ratio

-83.8%

Reconciliation Residual

€0

1Step 1

Gross TP

Gross TP=Gross Best Estimate Liability+Risk Margin\textit{Gross TP} = \textit{Gross Best Estimate Liability} + \textit{Risk Margin}
2Step 2

Net TP

Net TP=Gross TP−Net Reinsurance Recoverables\textit{Net TP} = \textit{Gross TP} - \textit{Net Reinsurance Recoverables}
3Step 3

Governance-Adjusted Gross TP

Governance-Adjusted Gross TP=Governance-Adjusted Gross Best Estimate Liability+Governance-Adjusted RM\textit{Governance-Adjusted Gross TP} = \textit{Governance-Adjusted Gross Best Estimate Liability} + \textit{Governance-Adjusted RM}
4Step 4

Governance-Adjusted Net TP

Governance-Adjusted Net TP=Governance-Adjusted Gross TP−Governance-Adjusted Net Reinsurance Recoverables\textit{Governance-Adjusted Net TP} = \textit{Governance-Adjusted Gross TP} - \textit{Governance-Adjusted Net Reinsurance Recoverables}
5Step 5

Reinsurance Relief Ratio

Reinsurance Relief Ratio=Net Reinsurance RecoverablesGross TP\textit{Reinsurance Relief Ratio} = \frac{\textit{Net Reinsurance Recoverables}}{\textit{Gross TP}}
6Step 6

Net to Gross TP Ratio

Net to Gross TP Ratio=Net TPGross TP\textit{Net to Gross TP Ratio} = \frac{\textit{Net TP}}{\textit{Gross TP}}
7Step 7

Reconciliation Residual

Reconciliation Residual=Gross TP−Net Reinsurance Recoverables+Net TP\textit{Reconciliation Residual} = \textit{Gross TP} - \textit{Net Reinsurance Recoverables} + \textit{Net TP}
8Step 8

Governance-Adjusted Net TP Gap

Governance-Adjusted Net TP Gap=Net TP−Governance-Adjusted Net TP\textit{Governance-Adjusted Net TP Gap} = \textit{Net TP} - \textit{Governance-Adjusted Net TP}
9Step 9

Governance-Adjusted Net TP Absolute Gap

Governance-Adjusted Net TP Absolute Gap=max⁡(Governance-Adjusted Net TP Gap,1×Governance-Adjusted Net TP Gap)\textit{Governance-Adjusted Net TP Absolute Gap} = \max(\textit{Governance-Adjusted Net TP Gap}, 1 \times \textit{Governance-Adjusted Net TP Gap})
10Step 10

Governance-Adjusted Net TP Breach Flag (0/1)

Governance-Adjusted Net TP Breach Flag (0/1)=gte⁡(Governance-Adjusted Net TP Absolute Gap,Governance-Adjusted TP Gap Tolerance Amount)\textit{Governance-Adjusted Net TP Breach Flag (0/1)} = \operatorname{gte}\left(\textit{Governance-Adjusted Net TP Absolute Gap}, \textit{Governance-Adjusted TP Gap Tolerance Amount}\right)
11Step 11

Reconciliation Residual Absolute Value

Reconciliation Residual Absolute Value=max⁡(Reconciliation Residual,1×Reconciliation Residual)\textit{Reconciliation Residual Absolute Value} = \max(\textit{Reconciliation Residual}, 1 \times \textit{Reconciliation Residual})
12Step 12

Reconciliation Residual Breach Flag (0/1)

Reconciliation Residual Breach Flag (0/1)=gte⁡(Reconciliation Residual Absolute Value,Reconciliation Residual Tolerance Amount)\textit{Reconciliation Residual Breach Flag (0/1)} = \operatorname{gte}\left(\textit{Reconciliation Residual Absolute Value}, \textit{Reconciliation Residual Tolerance Amount}\right)
13Step 13

Trace Gross Best Estimate Liability Gap

Trace Gross Best Estimate Liability Gap=Gross Best Estimate Liability−Trace Input Gross Best Estimate Liability\textit{Trace Gross Best Estimate Liability Gap} = \textit{Gross Best Estimate Liability} - \textit{Trace Input Gross Best Estimate Liability}
14Step 14

Trace RM Gap

Trace RM Gap=Risk Margin−Trace Input RM\textit{Trace RM Gap} = \textit{Risk Margin} - \textit{Trace Input RM}
15Step 15

Trace Net Reinsurance Recoverables Gap

Trace Net Reinsurance Recoverables Gap=Net Reinsurance Recoverables−Trace Input Net Reinsurance Recoverables\textit{Trace Net Reinsurance Recoverables Gap} = \textit{Net Reinsurance Recoverables} - \textit{Trace Input Net Reinsurance Recoverables}
16Step 16

Trace Signed Total Gap

Trace Signed Total Gap=Trace Gross Best Estimate Liability Gap+Trace RM Gap+Trace Net Reinsurance Recoverables Gap\textit{Trace Signed Total Gap} = \textit{Trace Gross Best Estimate Liability Gap} + \textit{Trace RM Gap} + \textit{Trace Net Reinsurance Recoverables Gap}
17Step 17

Trace Absolute Total Gap

Trace Absolute Total Gap=max⁡(Trace Signed Total Gap,1×Trace Signed Total Gap)\textit{Trace Absolute Total Gap} = \max(\textit{Trace Signed Total Gap}, 1 \times \textit{Trace Signed Total Gap})
18Step 18

Trace Gap Breach Flag (0/1)

Trace Gap Breach Flag (0/1)=gte⁡(Trace Absolute Total Gap,Trace Gap Tolerance Amount)\textit{Trace Gap Breach Flag (0/1)} = \operatorname{gte}\left(\textit{Trace Absolute Total Gap}, \textit{Trace Gap Tolerance Amount}\right)
19Step 19

Handoff Gross Best Estimate Liability Gap

Handoff Gross Best Estimate Liability Gap=Gross Best Estimate Liability−Handoff Gross Best Estimate Liability from BEL Calculator\textit{Handoff Gross Best Estimate Liability Gap} = \textit{Gross Best Estimate Liability} - \textit{Handoff Gross Best Estimate Liability from BEL Calculator}
20Step 20

Handoff Net Reinsurance Recoverables Gap

Handoff Net Reinsurance Recoverables Gap=Net Reinsurance Recoverables−Handoff Net Reinsurance Recoverables from Reinsurance Calculator\textit{Handoff Net Reinsurance Recoverables Gap} = \textit{Net Reinsurance Recoverables} - \textit{Handoff Net Reinsurance Recoverables from Reinsurance Calculator}
21Step 21

Handoff Net TP Gap

Handoff Net TP Gap=Net TP−Handoff Gross Best Estimate Liability from BEL Calculator+Risk Margin−Handoff Net Reinsurance Recoverables from Reinsurance Calculator\textit{Handoff Net TP Gap} = \textit{Net TP} - \textit{Handoff Gross Best Estimate Liability from BEL Calculator} + \textit{Risk Margin} - \textit{Handoff Net Reinsurance Recoverables from Reinsurance Calculator}
22Step 22

Handoff Absolute Net TP Gap

Handoff Absolute Net TP Gap=max⁡(Handoff Net TP Gap,1×Handoff Net TP Gap)\textit{Handoff Absolute Net TP Gap} = \max(\textit{Handoff Net TP Gap}, 1 \times \textit{Handoff Net TP Gap})
23Step 23

Handoff Gap Breach Flag (0/1)

Handoff Gap Breach Flag (0/1)=gte⁡(Handoff Absolute Net TP Gap,Handoff Gap Tolerance Amount)\textit{Handoff Gap Breach Flag (0/1)} = \operatorname{gte}\left(\textit{Handoff Absolute Net TP Gap}, \textit{Handoff Gap Tolerance Amount}\right)
24Step 24

Combined Gap Breach Flag (0/1)

Combined Gap Breach Flag (0/1)=max⁡(Trace Gap Breach Flag (0/1),Handoff Gap Breach Flag (0/1),Reconciliation Residual Breach Flag (0/1))\textit{Combined Gap Breach Flag (0/1)} = \max(\textit{Trace Gap Breach Flag (0/1)}, \textit{Handoff Gap Breach Flag (0/1)}, \textit{Reconciliation Residual Breach Flag (0/1)})
25Step 25

Trace Snapshot Freshness Flag (0/1)

Trace Snapshot Freshness Flag (0/1)=lte⁡(Trace Input Snapshot Age (Days),Maximum Snapshot Age (Days))\textit{Trace Snapshot Freshness Flag (0/1)} = \operatorname{lte}\left(\textit{Trace Input Snapshot Age (Days)}, \textit{Maximum Snapshot Age (Days)}\right)
26Step 26

Handoff Snapshot Freshness Flag (0/1)

Handoff Snapshot Freshness Flag (0/1)=lte⁡(Handoff Input Snapshot Age (Days),Maximum Snapshot Age (Days))\textit{Handoff Snapshot Freshness Flag (0/1)} = \operatorname{lte}\left(\textit{Handoff Input Snapshot Age (Days)}, \textit{Maximum Snapshot Age (Days)}\right)
27Step 27

Snapshot Staleness Breach Flag (0/1)

Snapshot Staleness Breach Flag (0/1)=max⁡(max⁡(0,1−Trace Snapshot Freshness Flag (0/1)),max⁡(0,1−Handoff Snapshot Freshness Flag (0/1)))\textit{Snapshot Staleness Breach Flag (0/1)} = \max(\max(0, 1 - \textit{Trace Snapshot Freshness Flag (0/1)}), \max(0, 1 - \textit{Handoff Snapshot Freshness Flag (0/1)}))
28Step 28

Upstream TP Governance Breach Flag (0/1)

Upstream TP Governance Breach Flag (0/1)=max⁡(BEL Curve Governance Breach Flag (0/1),RM Curve Governance Breach Flag (0/1),Reinsurance Governance Breach Flag (0/1),Options and Guarantees Governance Breach Flag (0/1),Reserve Adequacy Management Actions Governance Breach Flag (0/1))\textit{Upstream TP Governance Breach Flag (0/1)} = \max(\textit{BEL Curve Governance Breach Flag (0/1)}, \textit{RM Curve Governance Breach Flag (0/1)}, \textit{Reinsurance Governance Breach Flag (0/1)}, \textit{Options and Guarantees Governance Breach Flag (0/1)}, \textit{Reserve Adequacy Management Actions Governance Breach Flag (0/1)})
29Step 29

TP Governance Bridge Breach Flag (0/1)

TP Governance Bridge Breach Flag (0/1)=max⁡(Upstream TP Governance Breach Flag (0/1),Combined Gap Breach Flag (0/1),Governance-Adjusted Net TP Breach Flag (0/1))\textit{TP Governance Bridge Breach Flag (0/1)} = \max(\textit{Upstream TP Governance Breach Flag (0/1)}, \textit{Combined Gap Breach Flag (0/1)}, \textit{Governance-Adjusted Net TP Breach Flag (0/1)})
30Step 30

Combined Reconciliation Governance Breach Flag (0/1)

Combined Reconciliation Governance Breach Flag (0/1)=max⁡(TP Governance Bridge Breach Flag (0/1),Snapshot Staleness Breach Flag (0/1))\textit{Combined Reconciliation Governance Breach Flag (0/1)} = \max(\textit{TP Governance Bridge Breach Flag (0/1)}, \textit{Snapshot Staleness Breach Flag (0/1)})

Understand the TP Gross-Net Reconciliation

Overview

This calculator reconciles gross technical provisions to net technical provisions by combining gross BEL, risk margin, and net reinsurance recoverables.[1][2] It is the final bridge step in the basic technical-provisions chain.

Input Terms

  • Gross Best Estimate Liability: The discounted gross liability value produced by the `BEL Valuation` page.
  • Risk Margin: The additional amount held above the best estimate to reflect the cost of capital for transferring the obligations.
  • Net Reinsurance Recoverables: The recoverables amount after the dedicated recoverables page has applied its own treaty and haircut logic.

Technical Rationale

Gross and net technical-provisions views should not be mixed together too early. This page keeps the bridge explicit. It first forms gross technical provisions by adding the risk margin to gross BEL, then subtracts the recoverables benefit to arrive at the final net position.

That separation matters for controls, because the user can see whether movements come from the liability valuation itself, from the risk margin, or from reinsurance relief. It also makes the page a clean handoff point into balance-sheet and reporting checks.

Important Notes

  • Use net reinsurance recoverables here, not gross treaty amounts.
  • The Reconciliation Residual should remain at zero because the page derives net technical provisions directly from the visible building blocks.
  • The output supports gross-to-net technical-provisions review for balance-sheet reporting and related control packs, including the S.02.01.01/S.02.01.02 bridge context.[[ref: qrt-s0201]]

Sources

  1. Directive 2009/138/EC - Art. 77 (Calculation of technical provisions) - EIOPA
  2. Directive 2009/138/EC - Art. 81 (Recoverables from reinsurance contracts and special purpose vehicles) - EIOPA
  3. Commission Implementing Regulation (EU) 2023/894 - QRT S.02.01.01/S.02.01.02 (Balance sheet) - 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.