Question ID:
Legal Act:
Regulation (EU) No 575/2013 (CRR)
Own funds
4, 18
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations:
Not applicable
Disclose name of institution / entity:
Type of submitter:
Credit institution
Subject Matter:
Inclusion of insurance undertakings in prudential consolidation

Should an insurance undertaking be included in prudential consolidation according to Art. 18 of CRR?

Background on the question:

According to Art 18 (1) of CRR only institutions and financial institutions should be included in prudential consolidation. Insurance undertaking is not an institution (credit institution as well as investment fund), additionally does not meet the conditions to be treated as financial institution according to Art. 4 (1_26).

Date of submission:
Published as Final Q&A:
Final Answer:

The entities to be included in the scope of prudential consolidation pursuant to Article 18 of Regulation (EU) No 575/2013 (CRR) are institutions (i.e. credit institutions and investment firms) and financial institutions (as defined in point 26 of Article 4(1) of the CRR).

Insurance undertakings, reinsurance undertakings, insurance holding companies and mixed-activity insurance holding companies are not considered as financial institutions pursuant to the definition in point 26 of Article 4(1) of the CRR:

- the principle activity of insurance and reinsurance undertakings is not listed as an activity under points 2 to 12 and point 15 of Annex I to Directive 2013/36/EU;
- insurance holding companies and mixed-activity insurance holding companies are explicitly excluded from the definition of a "financial institution".

This is without prejudice to the possibility set out in Article 18(5) of the CRR for competent authorities to include undertakings in the consolidation in the case of participations or capital ties other than those referred to in paragraphs 1 and 4 of that Article.*

Furthermore, t The exclusion of insurance sector entities from the scope of banking prudential consolidation under the CRR is without prejudice to the inclusion of these entities into the scope of supplementary supervision for the purposes of the Financial Conglomerates Directive 2002/87/EU.

*This answer has been modified as highlighted on 16/10/2015 to correct the inaccurate referencing of an Article of the CRR.


This question goes beyond matters of consistent and effective application of the regulatory framework. A Directorate-General of the Commission (Directorate General for Financial Stability, Financial Services and Capital Markets Union) has prepared the answer, albeit that only the Court of Justice of the European Union can provide definitive interpretations of EU legislation. This is an unofficial opinion of that Directorate General, which the European Banking Authority publishes on its behalf. The answers are not binding on the European Commission as an institution. You should be aware that the European Commission could adopt a position different from the one expressed in such Q&As, for instance in infringement proceedings or after a detailed examination of a specific case or on the basis of any new legal or factual elements that may have been brought to its attention.


Final Q&A
Answer prepared by:
Answer prepared by the European Commission because it is a matter of interpretation of Union law.
Note to Q&A:

Update 26.03.2021: This Q&A has not yet been reviewed by the European Commission in the light of the changes introduced to Regulation (EU) No 575/2013 (CRR).