(1) An insurance undertaking or reinsurance undertaking shall calculate its Solvency Capital Requirement in accordance with paragraphs (2) to (8).

(2) The Solvency Capital Requirement shall be calculated on the presumption that the undertaking will pursue its business as a going concern.

(3) The Solvency Capital Requirement shall be calibrated so as to ensure that all quantifiable risks to which an insurance undertaking or reinsurance undertaking is exposed are taken into account.

(4) The Solvency Capital Requirement shall -

(a) cover existing business, as well as the new business expected to be written over the following 12 months, and

(b) with respect to existing business, cover only unexpected losses.

(5) The Solvency Capital Requirement shall correspond to the Value-at-Risk of the basic own funds of the undertaking subject to a confidence level of 99.5 % over a one year period.

(6) The Solvency Capital Requirement shall cover at least the following risks:

(a) non-life underwriting risk;

(b) life underwriting risk;

(c) health underwriting risk;