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European Insurance and Occupational Pensions Authority

2659

Q&A

Question ID: 2659

Regulation Reference: (EU) 2023/894 - ITS with regard to the templates for the submission of information necessary for supervision

Topic: Reporting Templates

Template: S.05.01

Status: Final

Date of submission: 01 Jun 2023

Question

Our inquiry pertains to the removal of “Changes in other technical provisions” and the addition of “Balance- other technical expenses/ income” in S.05.01. We report according to Local GAAP and not IFRS 17. As we understand it, S.05.01 it is not supposed to be a full Income statement or even present ”the full technical result” that is reported? Is this correct? If correct, but that it raises some questions about what should be the difference between S.05.01 and ”the full technical result”? Previously, life-insurance companies reported the following under “Changes in other technical provisions”: Change in other technical provisions after ceded reinsurance - Life-assurance reserve - Conditional bonus - Changes in market value Unit-linked Question 1: Is the interpretation correct that the above mentioned posts would no longer be reported in S.05.01? Instead, under row “Balance - other technical expenses/ income”, these posts would be reported (examples): - Other technical income/costs - Bonuses and discounts (after ceded reinsurance) - Investment income profit/loss - Unrealised profit/losses on investment assets - Investment income transferred from financial operations Question 2: Should all the remaining posts in the Technical result, that were did not previously where reported on row “Changes in other technical provisions” and is missing from S.05.01 as a whole now be reported ion row “Balance - other technical expenses/ income”? 

Background of the question

Taxonomy 2.8.0

EIOPA answer

S.05.01 is not supposed to be a full Income statement or even present "the full technical result.

Question 1:“Changes in other technical provisions" has been removed from S.05.01. The amounts previously reported as “Changes in other technical provisions" are no longer reported in any cell of S.05.01.

Question 2: The new row “Balance - other technical expenses/ income" has extended its scope compared to the old row “Other expenses" as it also includes other income. Please see Q&A 2648 - European Union (europa.eu)