Deduction and aggregation method

(1) Under the deduction and aggregation method, the group solvency of the participating insurance undertaking is the difference between 1. the group's aggregated eligible own funds under subsection (2), and 2. the value of the related insurance undertaking held by the participating insurance undertaking, plus the group's aggregated Solvency Capital Requirement under subsection (3).
(2) The group's aggregated eligible own funds consist of 1. the own funds eligible for the Solvency Capital Requirement of the participating insurance undertaking, and 2. the proportional shares of the participating insurance undertaking in the own funds eligible for the Solvency Capital Requirements of the related insurance undertakings.
(3) The group's aggregated Solvency Capital Requirement consists of 1. the Solvency Capital Requirement of the participating insurance undertaking, and 2. the proportional shares of the Solvency Capital Requirements of the related insurance undertakings.
(4) In the case of a partial or full indirect participation, the value of the indirect participation is determined by ascertaining the look-through share. The shares named in subsection (2), point 2, and subsection (3), point 2, are determined correspondingly.
(5) Sections 262 and 263 apply correspondingly to the application to calculate the Solvency Capital Requirement for the group's insurance undertakings using an internal model.
(6) The group's aggregated Solvency Capital Requirement must adequately reflect the group's risk profile. In doing so, risks specific to group level that are difficult to quantify must in particular be adequately taken into account. Where the group's risk profile deviates materially from the assumptions for the group's aggregated Solvency Capital Requirement, the group supervisory authority may prescribe a capital add-on to the group's aggregated Solvency Capital Requirement. Section 301 and the delegated acts issued under Article 37 of Directive 2009/138/EC apply correspondingly.