Which liability and asset values are used by the traffic light system?
Refer to the instructions for the valuation of each risk.
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What is the capital buffer against which the traffic light gauges risk?
The capital buffer is defined as subordinated liabilities, untaxed reserves and equity after the revaluation of assets and liability items.
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What about shares in subsidiaries?
Insurance companies that are parent companies must measure including the risks in subsidiaries whose main operations comprise the owning and managing of properties, shares, participations or other securities. These risks are taken into account under each risk in relation to the ownership interest. The value of the holdings in these subsidiaries is not included in calculating the equity price risk. The value of shares and participations in subsidiaries that conduct operations other than the aforementioned, for example insurance operations, are calculated in equity price risk. Accordingly, the risks in these subsidiaries shall not be distributed among each type of risk.
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Is there any difference between how the model treats mutual and non-mutual insurers?
No. But note how conditional bonus, which arises primarily in dividend-paying companies, is handled in the measurement.
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How does FI define the ten-year interest rate? Does FI mean a duration of 10 years or exactly a 1049?
The closing yield on the 10-year benchmark rate on the date covered by the report.
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