Circular NBB_2020_046 / Supplementary provision for life and accident insurance

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De Berlaarmonlaan 14 - BE-1000 Brussels tel. +32 2 221 38 12 - fax +32 2 221 31 04 enterprise number: 0203.201.340 RPR Brussels www.nbb.be DE BELGIQUE VAN BELGIË Eurosystem Circular Brussels, 9 December 2020 Reference:
your correspondent:
Stany Zabinski tel. +32 2 221 3467
Stany.zabinski@nbb.be
NBB 2020 046
Supplementary provision for life and accident insurance Scope Insurance companies active in the life and accident insurance branches. Summary/Objective This circular aims to determine the reference interest rate to be applied on 31 December 2020 in the context of the supplementary provision for life and accident insurance. Dear Madam, Dear Sir, The method for calculating the supplementary provision to be applied when the guaranteed interest rate exceeds 80% of the average interest rate over the last five years of the OLOs at 10 years (hereinafter referred to as the reference interest rate) by more than 0.1% (10 basis points) is described in Article 34quinquies §3, 2nd paragraph for life insurance and in Article 34sexies §5, 1° of the Royal Decree of 17 November 1994, as amended on 1 June 2016, concerning the annual accounts of insurance companies. The reference interest rate is determined based on the interest rates provided by the National Bank of Belgium, for the yield at the end of the month of linear bonds on the secondary market. These interest rates can be consulted on the website of the National Bank of Belgium (http://stat.nbb.be) under the section "Financial markets > Interest rates" in the table of contents. The average value was calculated for the period from December 2015 to November 2020. Accordingly, the reference interest rate to be applied on 31 December 2020 is 0.33%. Please note that we send a copy of this circular to the commissioner(s), certified auditor(s) of your institution. Yours faithfully, Pierre WUNSCH Governor NBB 2020 046 - 9 December 2020 Circular - Page 1/1