Circular NBB_2024_08 / Supplementary life data - Supplementary life data

boulevard de Berlaimont 14 - BE-1000 Bruxelles tel. +32 2 221 27 31 numero d'entreprise: 0203.201.340 RPM Bruxelles www.bnb.be rt eNationaleBank DE BELCIQUE VAN BELCIE Eurosystem Circulaire Brussels, 15 May 2024 Reference:
your contact:
Frank Van Steen tel. +32 2 221 21 23 frank.vansteen@nbb.be NBB_2024_08 Supplementary life data Scope Insurance companies subject to the Act of 13 March 2016 on the status and supervision of insurance or reinsurance companies and operating in the Life and Work Accident branches. This circular does not apply to insurance companies referred to in Articles 275, 276 or 294 of the aforementioned Act of 13 March 2016. Summary/Objectives This circular regulates the collection of supplementary life data from insurance companies operating in the Life and Work Accident branches. This circular constitutes an update of Circular NBB_2022_01. Legal references Life Decree: Royal Decree of 14 November 2003 relating to life insurance activity Solvency II Act: Act of 13 March 2016 on the status and supervision of insurance or reinsurance companies Regulation 2015/35: Delegated Regulation (EU) 2015/35 of the Commission of 10 October 2014 supplementing Directive 2009/138/EC of the European Parliament and of the Council on the taking up and pursuit of the business of Insurance and Reinsurance (Solvency II) IFRS Regulation: Commission Regulation 2023/1803 of 13 September 2023 adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council. NBB_2024^08 - 15 May 2024 Circular - Page 1/3

Madam,
Sir,
I. Objective
In light of the macroeconomic context, it can be observed that the life insurance sector offers higher technical interest rates for new production. However, there is a risk that interest rates may fall again in the medium term. This can lead to interest rate risk. In order to estimate the impact of interest rate risk on solvency, the National Bank of Belgium (hereinafter 'the Bank'), in its capacity as prudential supervisor, currently requires reporting on interest rate risk via its Circular NBB_2018_16. This information also allows it to analyze the asset-liability management of the insurance sector. To have a more detailed view of the impact of interest rate risk on profitability, the Bank must have supplementary information. In accordance with Article 312 §1 of the Solvency II Act, the Bank may request the required information from the sector. In the past, the Bank requested 'supplementary life data', relating to the development of the supplementary life provision and the actuarial analysis of the current GAAP result of the life technical account. Part of the actuarial analysis is replaced by supplementary data concerning new production. The supplementary data currently include the following elements:
1.1. Supplementary provision
The first part of the reporting includes information on the supplementary life provision to be established and already established. The objective is to establish a statement of the development (the difference between) these two amounts. For this reason, data for the last three financial years must be reported, as well as the company's forecasts for the following four financial years. Data on the supplementary life provision to be established and already established must be reported for individual insurance and group insurance.
1.2. Actuarial analysis of the current result
The second pillar of the reporting aims to break down the result of the life technical account into the following elements:

• Financial result;
• Technical result;
• Management result.
  A supplementary breakdown is applied to these components in the reporting table. The content of the columns in the reporting table is described and clarified in the document attached to this circular. This document also describes how certain of the data to be reported must be reconciled with data from the life technical account and the profitability collection. The reporting of data concerning the actuarial analysis of the current result of the life technical account must be done according to the following dimensions:
• Direct business in Belgium and direct business abroad;
• Life insurance not linked to investment funds (branches 21, 22 and 26) and life insurance linked to investment funds (branch 23);
• Individual insurance and group insurance;
• Life insurance and death insurance as referred to in Annex 2, § 32, e) and f), of the Life Decree.
  Furthermore, current inventory reserves and required solvency capital are requested at the same level of granularity to estimate retrospective profitability.
  The data must be reported in units (€).
  Circular - Page 2/3 NBB_2024_08 - 15 May 2024

1.3. New production
The third pillar of the reporting aims to obtain an overview of new production and the proposed technical interest rates. New production is defined as the production resulting from the sale of new policies during the period considered. The reporting makes a distinction based on the duration of the guarantee and the level of average interest rate guarantees. The content of all columns of the reporting table is described and explained in the document attached to this circular. This document also describes how to reconcile certain data from the reporting with figures from other reportings. The reporting of data concerning the actuarial analysis of future results is done according to the following dimensions:

• Direct business in Belgium and abroad;
• Life insurance not linked to investment funds (branches 21, 22 and 26) and life insurance linked to investment funds (branch 23);
• Individual insurance and group insurance;
• Life insurance and death insurance (for individual branch 21) as referred to in Annex 2, § 32, e) and f), of the Life Decree.
  The data must be expressed in units (€).
  II. Reporting procedures
  The reporting must be annual and the data must be transmitted no later than 30 June of the accounting year following the accounting year to which they relate. The reporting tables can be found in the annex to this circular. The data will be transferred electronically using the 'OneGate' application (CPA domain) of the Bank. Companies can either enter the data manually or automate the reporting using files generated in CSV or XML format. An exchange protocol has been made available on the Bank's website1.
  III. Entry into force
  This circular applies from 1 January 2025. A first report must be submitted on 30 June 2025 based on the figures at the end of the 2024 financial year.
  A copy of this is sent to the commissioner(s), approved auditor(s) of your establishment.
  Please accept, Madam, Sir, the expression of my distinguished consideration.
  Pierre Wunsch
  Governor
  Stefaan Vanackere
  Vice-governor
  Annex 1: document 'Actuarial analysis of the result - explanation'
  Annex 2: reporting tables
  1 http://www.nbb.be/onegate
  NBB_2024_08 - 15 May 2024 Circular - Page 3/3