Question ID: 2456
Regulation Reference: (EU) No 2015/2450 - templates for the submission of information to the supervisory authorities
Topic: Reporting Templates
Article: Article 35 of SII Directive
Template: S.02.01
Status: Final
Date of submission: 07 Jul 2022
Question
We are an insurance company that will adopt IFRS 17 next year, and we have some questions regarding the implementation. According to IFRS 17.78, an entity should present separately assets and liabilities for insurance and reinsurance contracts. As a result, in the statement of financial position, there is no single total value of technical provisions and reinsurance recoverables. Could you please confirm that for the purposes of S.02.01 (MVBS), column C0020 (statutory accounts): • in row R0270 (Reinsurance recoverables) reinsurance contracts held that are assets should be presented together with reinsurance contracts held that are liabilities, i.e. the net value should be presented, • in row R0510 (Technical provisions - non-life), R0600 (Technical provisions - life (excluding index-linked and unit-linked)) and R0610 (Technical provisions - index-linked and unit-linked) insurance contracts issued that are assets should be presented together with insurance contracts issued that are liabilities i.e. the net value should be presented?
Background of the question
IFRS 17.78 An entity shall present separately in the statement of financial position the carrying amount of portfolios of: (a) insurance contracts issued that are assets; (b) insurance contracts issued that are liabilities; (c) reinsurance contracts held that are assets; and (d) reinsurance contracts held that are liabilities.
EIOPA answer
The assessment is correct. R0270 / C0020 in S.02.01 should include reinsurance recoverables from all contracts, regardless whether they are assets or liabilities. Consistently, R0510, R0600 and R0690 / C0020 in S.02.01 should include the technical provisions from all insurance and accepted reinsurance contracts regardless whether they are assets or liabilities.