Complementary provision in Life and Worker’s Compensation insurance

NBB_2024_18 – 10 December 2024 Circular – Page 1/1 14 Berlaimont Boulevard – BE-1000 Brussels tel. +32 2 221 27 31 company number: 0203.201.340 RPM Brussels www.nbb.be Circular Brussels, 10 December 2024 Reference NBB_2024_18 your contact:
Frank Van Steen tel. +32 2 221 21 23 frank.vansteen@nbb.be Complementary provision in life and worker’s compensation insurance Scope Insurance companies operating in life and worker’s compensation branches. Summary/Objectives This circular aims to determine the pivot rate applicable on 31 December 2024 in the context of the complementary provision in life and worker’s compensation insurance.

Madam,
Sir,

The method for calculating the complementary provision to be established when the guaranteed interest rate exceeds the average interest rate over the last 5 years of 10-year OLOs (hereinafter "pivot rate") by more than 0.1% (10 basis points) is described in Article 34quinquies §3, paragraph 2 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 pivot rate is determined using the reference rates at the end of the month communicated by the National Bank of Belgium (hereinafter "the Bank") for the yield of linear bonds on the secondary market. These rates can be consulted on the Bank's website (http://stat.nbb.be), under the section "Financial Markets > Interest Rates" in the summary.

The average value is calculated for the period from December 2019 to November 2024 inclusive.

Thus, the pivot rate to be applied on 31 December 2024 is 1.20%.

Please note that a copy of this circular is sent to the auditor(s) and approved auditor(s) of your establishment.

Please accept, Madam, Sir, the expression of my distinguished sentiments.

Pierre Wunsch
Governor