Consolidation method

(1) Under the consolidation method, the group solvency of the participating insurance undertaking is calculated on the basis of the consolidated accounts. The group solvency of the participating insurance undertaking is the difference between the own funds, calculated on the basis of the consolidated accounts, eligible for complying with the Solvency Capital Requirement, and the group Solvency Capital Requirement calculated on the basis of the consolidated accounts. Part 2, Chapter 2, Division 2, applies correspondingly to calculating the own funds eligible for the Solvency Capital Requirement and the group Solvency Capital Requirement using the consolidation method.
(2) The consolidated group Solvency Capital Requirement is calculated either using the standard formula or using an approved internal model.
(3) The minimum amount of the consolidated group Solvency Capital Requirement is the sum of the Minimum Capital Requirement of the participating insurance undertaking and the proportional Minimum Capital Requirements of the related insurance undertakings corresponding to the participation ratio. This minimum amount must be covered by eligible basic own funds under section 95. Section 250(1), second sentence, sections 253 to 260, and section 135(1) and (2) apply correspondingly.