Setting the Interest Rate for Life Insurance Contracts

Conakry, June 24, 2019

REPUBLIC OF GUINEA
CENTRAL BANK

INSTRUCTION N°I/07/19/REA ON THE SETTING OF THE INTEREST RATE FOR LIFE INSURANCE CONTRACTS.

THE GOVERNOR

Having regard to Law L/2017/017/AN of June 8, 2017, repealing Law L/2016/064/AN of November 9, 2016, itself amending Law/2014/016/AN of July 2, 2014 on the status of the Central Bank of the Republic of Guinea;

Having regard to Law N°L/2016/034/AN/SGG of July 28, 2016 on the Insurance Code of the Republic of Guinea;

Having regard to Decree N°D/2010/004/PRG/SGG of December 27, 2010, appointing the Governor of the Central Bank of the Republic of Guinea;

Having regard to Instruction N°I/96/REA/Setting the interest rate for life insurance contracts.

DECIDES

ARTICLE 1:

The tariffs presented for approval to the Insurance Supervisory Authority by life insurance companies must be established taking into account an interest rate not exceeding 5%.

ARTICLE 2:

The tariffs for immediate life annuity contracts subscribed by persons aged at least 65 years, as well as single-premium life and capitalization contracts with a maximum duration of ten years, may be established at an interest rate higher than the rates mentioned in Article 1.

In this case and for each of the tariffs, approval is subject to the following conditions:

1°) the assets representing the commitments corresponding to these contracts must be isolated in the Company's accounting;

2°) these assets must be able to provide a yield rate at least one-third higher than the tariff's interest rate.

For contracts mentioned in the first paragraph of this article, when the rate of new investments made during the financial year and allocated to represent the commitments corresponding to a determined tariff is lower than the rate of this tariff increased by 33%, the contracts cease to be offered to the public.

ARTICLE 3:

This Instruction, which takes effect from its date of signature, repeals all previous contrary provisions and will be registered and published in the Official Gazette of the Republic.

Conakry, June 24, 2019

Dr. Lounceny NABE

P.O. Box N° 692 - Conakry - Telephone: (+224) 664 67 77 77 Fax: +224 669 08 88 88 - E-mail: secretariat.gouv@bcrg-guinee.org www.bcrg-guinee.org / 6 Boulevard du Commerce C/Kaloum