Circular NBB_2020_046 / Supplementary Provisions for Life and Accident Insurance

m deBeriaimontlaan14-BE-1000Brussel tel. +322221 38 12-fax + 32 2 221 31 04 ondernemingsnummer: 0203.201.340 RPR Brussels www. nbb. be DE BELGIQUE VAN BELGIË Eurosystem Circular Brussels, 9 December 2020 Reference:
your correspondence:
Stany Zabinski tel. +32 2 221 3467
Stany.zabinski@nbb.be
NBB 2020 046
Supplementary Provisions for Life and Accident Insurance Scope Insurance companies active in the life and accident insurance branches. Summary/Objective This circular aims to determine the applicable pivot interest rate on 31 December 2020 in the context of supplementary provisions 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 10-year OLOs (hereinafter referred to as the pivot interest rate) by more than 0.1% (10 basis points) is described in Article 34 quinquies §3, 2nd paragraph for life insurance and in Article 34 sexies §5, 1st paragraph for accident insurance of the Royal Decree of 17 November 1994, as amended on 1 June 2016, concerning the annual accounts of insurance companies. The pivot interest rate is determined based on the interest rates reported 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 inclusive. Consequently, the pivot 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. Respectfully, Gouverneur NBB 2020 046 - 9 December 2020 Circular - Page 1/1