The application submitted by the insurance or reinsurance undertaking shall seek approval of a specified monetary amount for an ancillary own-fund item or a method to determine the amount of an ancillary own-fund item.
Where the insurance or reinsurance undertaking seeks approval of a specified monetary amount, the application shall include an explanation of the calculation of the amount, based on prudent and realistic assumptions in accordance with Article 90(2) of Directive 2009/138/EC.
Where the insurance or reinsurance undertaking seeks approval of a calculation method, it shall provide the following information:
(a) an explanation of the method and how it reflects the loss-absorbency of the ancillary own-fund item;
(b) a description of any assumptions upon which the method relies and how these assumptions are prudent and realistic;
(c) the item's expected initial amount that has been calculated in accordance with the method and a justification of that amount;
(d) an explanation of
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