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The effect of the transitional measures shall decrease linearly at the end of each year from 100% during the year starting from 1 January 2016 to 0% on 1 January 2032. So the calculation of the technical provisions at the end of the year should not reflect the reduction of the adjustment related to that year. The reduction should only be made on the first day of the following financial year.
In this case the information referring to the amounts of technical provisions, Solvency Capital Requirement, Minimum Capital Requirement, basic own funds and eligible own funds considering the use of the transitional measures reflect an event that might materially change immediately on the first day of the following financial year the information to be disclosed.
The European Insurance and Occupational Pensions Authority‘s (EIOPA) Opinion clarifies that in view of complying with the principles of public disclosure and with Chapter XII of Title I of Commission Delegated Regulation (EU) 2015/35, the Solvency and Financial Condition Report (SFCR), group SFCR or single SFCR should contain the information necessary to reflect the estimated impact of the decrease of the portion of the adjustment performed on the first day of the next financial year in the technical provisions, Minimum Capital Requirement, Solvency Capital Requirement and Eligible own funds to cover the capital requirements.
This information is considered relevant only where the recalculation of technical provisions would lead to a material impact in the solvency position of the undertaking in accordance with Article 291 of Commission Delegated Regulation (EU) 2015/35.