1. Where Article 88 is complied with, insurance and reinsurance undertakings may calculate the capital requirement for fire risk referred to in Article 132(1) as follows:

SCR_fire = max(SCR_firei; SCR_firec; SCR_firer) 

where:

a) SCR_firei denotes the largest industrial fire risk concentration;

b) SCR_firec denotes the largest commercial fire risk concentration;

c) SCR_firer denotes the largest residential fire risk concentration.

2. The largest industrial fire risk concentration of an insurance or reinsurance undertaking shall be equal to the following:

SCR_firei = max(E_1,i; E_2,i; E_3,i; E_4,i; E_5,i) 

where E_k,i denotes the total exposure within the perimeter of the k-th largest industrial fire risk exposure.

3. The largest commercial fire risk concentration of an insurance or reinsurance undertaking shall be equal to the following:

SCR_firec = max(E_1,c; E_2,c; E_3,c; E_4,c; E_5,c)

where E_k,c denotes the total exposure within the perimeter of the k-th largest commercial fire risk exposure.