The QRT Log provides the following guideline: „The amount of discretionary benefits distributed, vested, declared or allotted to policyholders (profit or loss sharing) over the monitoring period (previous year) divided by total technical provisions for contracts displaying such features (e.g. insurance with profit participation) at the start of the period (1 January).”    

If we consider a traditional Life Insurance Policy, does this translate to the sum of direct credit to the policyholder (“Direktgutschrift”) and the inflow during the year into the account “Liability for policyholders’ share in accumulated participating earnings”, in German -“Rfb”( Rückstellung für Beitragsrückerstattung) divided by the Reserves at the beginning of the year?