Debt

  • SCS has developed strong relations with a variety of debt providers
  • Both Solvency II and the Scandinavian regulations impose, or are likely to impose, rigid rules that clearly define which debt can be included as solvency qualifying capital
  • Generally speaking SCS expects the following to apply:
    • To qualify as admissible solvency capital all debt must be subordinated debt
    • To achieve full value this subordinated debt must also have an original term of at least 5 years at time of inception
    • Once the remaining duration of the subordinated debt reaches 4 years or lower this will reduce the eligible value that can be counted as solvency qualifying capital
    • The maximum percentage of subordinated debt that will be allowed as solvency qualifying capital is 50% of the full qualifying solvency capital
  • SCS has and continues to develop the most suitable construction of debt to best meet the needs of clients and this will likely evolve as the new regulations are invoked
Scandiavian Capital Solutions Territories