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 bridge context.[[ref: qrt-s0201]]