Core capital (CC)

Core capital (CC) is a broader risk buffer intended to absorb the risk of a decline in valuations. It is calculated to absorb the losses that would ensue if a drop of one grade on the internal rating scale was sustained by claims from losses and restructuring, by credit balances from debt rescheduling agreements, and by the elements of all existing insurance contracts as well as all new insurance contracts that are expected to be concluded based on current growth forecasts. The calculations use the same actuarial model as the calculation of the risk-bearing capital (RBC).