The solvency ratio stood at 196% as at 31 December 2021 after distribution of the proposed dividend and is based on the standard formula as a result of € 8,189 million EOF and € 4,185 million SCR.
The decrease of EOF was mainly driven by the contribution of the organic capital creation, higher equity markets and interest and spread developments partly offset by a lower VA, the UFR reduction, the impact of higher inflation and capital distributions such as dividend.
This increase of the SCR was driven mainly by increased equity risk due to higher equity valuations and higher insurance risk related to Non-life due to the growth of the business, partly offset by lower required capital for insurance risk Life due to higher interest rates and an increased LAC DT due to an increase in the corporate tax rate from 25.0% to 25.8%.
Adjustment of other equity instruments (the other equity instruments excludes any discretionary interest);
Total net revaluation of assets, such as loans and mortgages, and revaluation of the technical provisions;
Other revaluations mainly elimination of goodwill;
Own fund items, for example addition of subordinated liabilities, other equity instruments (excluding any discretionary interest), foreseeable dividend and valuation difference of financial institutions.