Hi, I am having 2 questions: 1. the notes mention the reinsurance recoveries. in a S2 BS i see reinsurance recoverables and re receivables. What is the difference ? 2. Also mentions participations for groups/subsidiaries. any additional info/list of examples of participations? thanks D
Hi Dimitris Under Solvency 2, the recoverables are those which will be based on best estimate assumptions regarding expected amounts paid to the insurer by the reinsurer arising from expected policyholder claims. Whereas, receivables are based on what has already been claimed and settled between insurer and policyholder and what the company and reinsurer has agreed to be paid from the reinsurer; the insurer is just waiting for payment. The Solvency II Framework defines participation as the ownership of 20% or more of the voting rights or capital of an undertaking.
