PartnerRe Ireland dac and Partner Reinsurance Europe SE

BACKGROUND PRIID is a non-life insurance company, which has been authorised under the Solvency II Regulations to carry on insurance business in Ireland. It was first authorised on 1 April 2005. PRESE is a reinsurance company, which has been authorised under the Solvency II Regulations to carry on reinsurance business in Ireland. It was first authorised on 20 July 2007. The Solvency II regime came into effect on 1 January 2016. As insurance and reinsurance firms, both PRIID and PRESE are required to comply with the Solvency II regime and the Corporate Governance Requirements. The Central Bank has responsibility for securing the compliance of firms with the Solvency II regime and the Corporate Governance Requirements. In October 2014, as part of their preparation for Solvency II, PRESE and PRIID received guidance from an external actuarial firm in respect of PRIID’s treatment of a specific nonproportional reinsurance arrangement and PRESE’s treatment of a proportional reinsurance arrangement (the “Reinsurance Arrangements”) in the calculation of their respective Solvency Capital Requirements (SCR). The guidance alerted PRIID and PRESE that their approach regarding the Reinsurance Arrangements may not be accepted by the Central Bank as it was not fully compliant with the Solvency II Technical Specifications. The guidance recommended that PRIID and PRESE seek clarification on the issue from the Central Bank and noted that if the Central Bank did not accept their approach, their ratio of eligible capital to SCR (SCR coverage ratio), which must be maintained at a minimum of 100% at all times, would decrease significantly.