8. 2. 90 Official Journal of the European Communities No C 30/51 
ANNEX 
LESS-FAVOURED AREAS PURSUANT TO ARTICLE 3 (4) OF DIRECTIVE 75/268/EEC 
AREA 31 — Prefecture of KORINTHIA 
No 
14 Commune 
Koutalas 
Amended proposal for a Council Directive on the annual accounts and consolidated accounts of 
insurance undertakings 0) 
COM(89) 474 final — SYN 78 
[Submitted by the Commission pursuant to Article 149 (3) of the EEC Treaty 
on 30 October 1989] 
(90/C 30/04) 
(i) OJ No C 131, 18. 5. 1987, p. 1. 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European 
Economic Community, and in particular Article 54 
thereof, Having regard to the Treaty establishing the European 
Economic Community, and in particular Article 54 
thereof, 
Having regard to the proposal from the Commission, Having regard to the proposal from the Commission, 
Having regard to the opinion of the European Parliament, In cooperation with the European Parliament, 
Having regard to the opinion of the Economic and Social 
Committee, Having regard to the opinion of the Economic and Social 
Committee, 
Whereas Article 54 (3) (g) of the Treaty requires the 
coordination to the necessary extent of the safeguards 
which, for the protection of the interests of members and 
others, are required by Member States for companies or 
firms within the meaning of the second paragraph of 
Article 58 of the Treaty, with a view to making such 
safeguards equivalent throughout the Community; Unchanged 
Whereas the Fourth Council Directive 78/660/EEC of 
25 July 1978 based on Article 54 (3) (g) of the Treaty on the 
annual accounts of certain types of companies ('), as last 
amended by the Act of Accession of Spain and Portugal, 
need not be applied to insurance companies, hereinafter 
referred to as 'insurance undertakings', pending sub­
sequent coordination: whereas, in view of the importance 
of insurance undertakings in the Community, such 
coordination cannot be delayed any longer following 
implementation of Directive 78/660/EEC; Unchanged 
(!) OJ No L 222, 14. 8. 1978, p. 11. 
No C 30/52 Official Journal of the European Communities 8. 2. 90 
Whereas the Seventh Council Directive 83/349/EEC of 
13 June 1983 based on Article 54 (3) (g) of the Treaty on 
consolidated accounts (*) provides for derogations for 
insurance undertakings only until expiry of the deadline 
imposed for the application of this Directive; whereas this 
Directive must therefore also contain provisions specific to 
insurance undertakings in respect of consolidated ac­
counts ; 
Whereas such coordination is also urgently required owing 
to the Community-wide operations of insurance undertak­
ings; whereas, for creditors, debtors, members, policy­
holders and their advisers and for the general public, 
improved comparability of the annual accounts and 
consolidated accounts of these undertakings is therefore of 
crucial importance; 
Whereas, in the Member States, insurance undertakings of 
different legal forms are in competition with each other; 
whereas undertakings engaged in the business of direct 
insurance customarily engage also in the business of 
reinsurance and are therefore in competition with specialist 
reinsurance undertakings; whereas it is therefore ap­
propriate not to confine coordination to the legal forms 
covered by Directive 78/660/EEC, but to choose a scope 
which is in line with the First Council Directive 73/239/ 
EEC of 24 July 1973 on the coordination of laws, 
regulations and administrative provisions relating to the 
taking-up and pursuit of the business of direct insurance 
other than life insurance (2) and the First Council Directive 
79/267/EEC of 5 March 1979 on the coordination of laws, 
regulations and administrative provisions relating to the 
taking-up and pursuit of the business of direct life 
assurance" (3), both as last amended by the Act of Accession 
of Spain and Portugal, but which also includes certain 
undertakings that are excluded from the scope of those 
Directives and companies and firms which are specialist 
reinsurance undertakings; 
(!) OJ No L 193, 18. 7. 1983, p. 1. 
(2) OJ No L 228, 16. 8. 1973, p. 3. 
(3) OJ No L 63, 13. 3. 1979. Unchanged 
Unchanged 
Whereas, in the Member States, insurance undertakings of 
different legal forms are in competition with each other; 
whereas undertakings engaged in the business of direct 
insurance customarily engage also in the business of 
reinsurance and are therefore in competition with specialist 
reinsurance undertakings; whereas it is the therefore 
appropriate not to confine coordination to the legal forms 
covered by Directive 78/660/EEC, but to choose a scope 
which is in line with the First Council Directive 73/239/ 
EEC of 24 July 1973 on the coordination of laws, 
regulations and administrative provisions relating to the 
taking-up and pursuit of the business of direct insurance 
other than life insurance (2) and the First Council Directive 
79/267/EEC of 5 March 1979 on the coordination of laws, 
regulations and admnistrative provisions relating to the 
taking-up and pursuit of the business of direct life 
assurance (3), both as last amended by the Act of Accession 
of Spain and Portugal, but which also includes certain 
undertakings that are excluded from the scope of those 
Directives and companies and firms which are reinsurance 
undertakings; 
0) OJ No L 193, 18. 7. 1983, p. 1. 
(2) OJ No L 228, 16. 8. 1973, p. 3. 
(3) OJ No L 63, 13. 3. 1979. 
8. 2. 90 Official Journal of the European Communities No C 30/53 
Whereas although, in view of the specific characteristics of 
insurance undertakings, it appears appropriate to propose 
a separate Directive on annual accounts and consolidated 
accounts for such undertakings, this must not result in a set 
of standards being established which is separate from those 
of Directives 78/660/EEC and 83/349/EEC; whereas such 
separate standards would be neither appropriate nor 
consistent with the basic principles underlying the 
coordination of company law since, given the important 
place they occupy in the economy of the Community, 
insurance undertakings cannot be excluded from the 
framework of standards devised for undertakings gen­
erally; whereas for this reason only the particular 
characteristics of insurance undertakings are taken into 
account, and this Directive therefore deals only with 
exceptions to the rules contained in Directives 78/660/EEC 
and 83/349/EEC; Unchanged 
Whereas there are important differences in the structure 
and content of the balance sheets of insurance undertakings 
in the various Member States; whereas this Directive must 
therefore lay down the same structure and the same item 
designations for the balance sheets of all insurance 
undertakings in the Community; Unchanged 
Whereas, if the annual accounts and consolidated accounts 
are to be comparable, a number of basic questions 
regarding the presentation of certain transactions in the 
balance sheet must be settled; Unchanged 
Whereas, in the interests of greater comparability, it is also 
necessary that the content of certain balance sheet items be 
determined precisely; Unchanged 
Whereas the same also applies to the composition and 
definition of certain items in the profit and loss account; 
Whereas the comparability of figures in the balance sheet 
and profit and loss account also depends crucially on the 
values at which assets and liabilities are entered in the 
balance sheet; whereas for a proper understanding of the 
financial situation of insurance undertakings it is necessary 
to disclose the current value of investments as well as their 
value based upon the principle of purchase price or 
production costs; Unchanged 
Unchanged 
Whereas, in view of the special nature of insurance 
undertakings, certain changes are necessary with regard to 
the notes on the annual accounts and on the consolidated 
accounts; Unchanged 
Whereas, in line with the intention to cover all those 
insurance undertakings which are within the scope of 
Directives 73/239/EEC and 79/267/EEC as well as certain 
others, derogations are not provided for small and 
medium-sized insurance undertakings such as are provided 
for under the terms of Directive 78/660/EEC, but certain 
small mutual undertakings which are excluded from the 
scope of the said Directives 73/239/EEC and 79/267/EEC 
should not be covered; Unchanged 
No C 30/54 Official Journal of the European Communities 8. 2. 90 
Whereas for the same reasons, the scope allowed Member 
States under Directive 83/349/EEC to exempt parent 
undertakings from the consolidation requirements if the 
undertakings to be consolidated do not together exceed a 
certain size has not been extended to insurance undertak­
ings; whereas in view of its particular nature special 
provisions are needed for the association of underwriters 
known as Lloyd's; 
Whereas the provisions of this Directive should also apply 
to the consolidated accounts drawn up by a parent 
undertaking which is a financial holding company and 
where its subsidiary undertakings are either exclusively or 
mainly insurance undertakings; 
Whereas the examination of problems which arise in 
connection with this Directive, notably concerning its 
application, requires the cooperation of representatives of 
the Member States and the Commission in the form of a 
contact committee; whereas, in order to avoid the 
proliferation of such committees, it is desirable that the said 
cooperation be achieved by means of the committee 
provided for in Article 52 of Directive 78/660/EEC; 
whereas nevertheless, when examining problems concern­
ing insurance undertakings, the committee will be 
appropriately constituted; 
Whereas, in view of the complexity of the matter, the 
insurance undertakings covered by this Directive must be 
allowed a longer period than usual to implement the 
provisions thereof, 
HAS ADOPTED THIS DIRECTIVE: 
SECTION 1 
Preliminary provisions and scope 
Article 1 Unchanged 
1. The provisions of Directive 78/660/EEC shall apply to • 
insurance undertakings within the meaning of Article 2 of 
this Directive, except where this Directive provides 
otherwise. 
2. Where reference is made in Directive 78/660/EEC to 
Articles 9 and 10 (balance sheet) or to Articles 23 to 26 
(profit and loss account) of that Directive, such references 
shall be construed as references to Article 5 (balance sheet) 
or to Article 29 (profit and loss account) of this Directive. 
3. Where reference is made in Directive 78/660/EEC to 
balance sheet items for which this Directive makes no 
equivalent provision, such references shall be deemed to be 
references to the items in Article 5 of this Directive which 
include the assets and liabilities in question. Unchanged 
Unchanged 
Unchanged 
Unchanged 
8. 2. 90 Official Journal of the European Communities No C 30/55 
Article 2 Article 2 
The coordination measures prescribed by this Directive 
shall apply to companies or firms within the meaning of the 
second paragraph of Article 58 of the Treaty which are: 
(a) undertakings within the meaning of Article 1 of 
Directive 73/239/EEC, excluding those mutual associ­
ations which are excluded from the scope of that 
Directive by virtue of Article 3 thereof but including 
those institutions referred to in Article 4 thereof except 
where their activity does not consist wholly or mainly 
of the carrying-on of insurance business; 1. The coordination measures prescribed by this 
Directive shall apply to companies or firms within the 
meaning of the second paragraph of Article 58 of the 
Treaty which are: 
(a) undertakings within the meaning of Article 1 of 
Directive 73/239/EEC, excluding those mutual associ­
ations which are excluded from the scope of that 
Directive by virtue of Article 3 thereof but including 
those institutions referred to in Article 4 thereof except 
where their activity does not consist wholly or mainly 
of the carrying-on of insurance business; 
(b) undertakings within the meaning of Article 1 of 
Directive 79/267/EEC, excluding those institutions, 
organizations and mutual associations referred to in 
Article 2 (2) and (3) and Article 3 of that Directive; (b) undertakings within the meaning of Article 1 of 
Directive 79/267/EEC, excluding those institutions, 
organizations and mutual associations referred to in 
Article 2 (2) and (3) and Article 3 of that Directive; 
or 
(c) undertakings whose whole or main activity consists of 
reinsurance operations. 
Such undertakings are referred to in this Directive as 
insurance undertakings. (c) undertakings carrying on reinsurance operations. 
Such undertakings are referred to in this Directive as 
insurance undertakings. 
2. The provisions applicable to undertakings referred to 
in paragraph 1 b) shall apply by analogy to the annual 
accounts of undertakings writing separately health insur­
ance, exclusively or principally according to the technical 
principles of life insurance. 
Article 3 Article 3 
1. This Directive shall apply to the association of 
underwriters known as Lloyd's with such adaptations as 
are necessary to take account of the particular nature and 
structure of Lloyd's. 1. This Directive shall apply to the association of 
underwriters known as Lloyd's with such adaptations as 
are necessary to take account of the particular nature and 
structure of Lloyd's. 
For the purposes of this Directive, Lloyd's shall be 
considered to be an insurance undertaking, although the 
information relating to the syndicates of Lloyd's must meet 
certain requirements in accordance with the objectives of 
this Directive. 
2. The Commission shall submit to the Council, not later 
than ..., a report on the adaptations made under para­
graph 1. Unchanged 
SECTION 2 
General provisions concerning the balance sheet and the profit and loss account 
Article 4 Article 4 
Article 4 (2) of Directive 78/660/EEC shall not apply to Articles 4 (2) and 5 of Directive 78/660/EEC shall not apply 
insurance undertakings. to insurance undertakings. 
No C 30/56 Official Journal of the European Communities 8. 2. 90 
SECTION 3 
Layout of the balance sheet 
Article 5 
The Member States shall prescribe the following layout for 
the balance sheet: Article 5 
The Member States shall prescribe the following layout for 
the balance sheet: 
Assets 
A. Subscribed capital unpaid 
of which there has been called (unless national law 
provides that called-up capital be shown under 
'Liabilities'. In that case, the part of the capital called 
but not yet paid must appear as an asset either under A 
or under D.4) 
B. Intangible assets 
as described under assets headings B and C.I of 
Article 9 of Directive 78/660/EEC, showing sep­
arately : 
— formation expenses, as defined by national law and 
in so far as national law permits their being shown 
as an asset 
(unless national law requires their disclosure in the 
notes on the accounts) 
— goodwill, to the extent that it was acquired for 
valuable consideration (unless national law requires 
its disclosure in the notes on the accounts) 
C. Investments 
I. Land and buildings: 
— showing separately land and buildings occupied 
by the insurance undertaking for its own 
activities 
II. Investments in affiliated undertakings and par­
ticipating interests: 
1. Shares in affiliated undertakings 
2. Debt securities issued by, and loans to, 
affiliated undertakings 
3. Participating interests 
4. Debt securities issued by, and loans to, 
undertakings with which the insurance under­
taking is linked by virtue of a participating 
interest 
HI. Other financial investments: 
1. Shares and other variable-yield securities 
2. Debt securities 
3. Loans guaranteed by mortgage 
4. Other loans 
5. Deposits with credit institutions Assets 
A. Subscribed capital unpaid 
of which there has been called (unless national law 
provides that called-up capital be shown under 
'Liabilities'. In that case, the part of the capital called 
but not yet paid must appear as an asset either under A 
or under D.4) 
B. Intangible assets 
as described under assets headings B and C.I of 
Article 9 of Directive 78/660/EEC, showing sep­
arately : 
— formation and extension expenses, as defined by 
national law and in so far as national law permits 
their being shown as an asset 
(unless national law requires their disclosure in the 
notes on the accounts) 
— goodwill, to the extent that it was acquired for 
valuable consideration (unless national law requires 
its disclosure in the notes on the accounts) 
C. Investments 
I. Land and buildings: 
showing separately land and buildings occupied by 
the insurance undertaking for its own activities 
(including the apportioned values of land and 
buildings partly so occupied) unless national law 
requires their disclosure in the notes on the 
accounts 
II. Investments in affiliated undertakings and par­
ticipating interests: 
1. Shares in affiliated undertakings 
2. Debt securities issued by, and loans to, 
affiliated undertakings 
3. Participating interests 
4. Debt securities issued by, and loans to, 
undertakings with which the insurance under­
taking is linked by virtue of a participating 
interest 
III. Other financial investments: 
1. Shares and other variable-yield securities 
2. Debt securities 
3. Participation in investment pools 
4. Loans guaranteed by mortgage 
5. Other loans 
6. Deposits with credit institutions 
8. 2. 90 Official Journal of the European Communities No C 30/57 
IV. Investments for the benefit of life insurance policy 
holders who bear the investment risk 
V. Own shares (with an indication of their nominal 
value or, in the absence of a nominal value, their 
accounting par value) to the extent that national 
law permits their being shown in the balance sheet 
VI. Deposits with cedant undertakings 
D. Debtors 
1. Debtors arising out of direct insurance operations, 
with a separate indication of amounts owed by: 
(a) affiliated undertakings 
(b) undertakings with which the insurance under­
taking is linked by virtue of a participating 
interest 
2. Debtors arising out of reinsurance operations, with 
a separate indication of amounts owed by: 
(a) affiliated undertakings 
(b) undertakings with which the insurance under­
taking is linked by virtue of a participating 
interest 
3. Other debtors, with a separate indication of 
amounts owed by: 
(a) affiliated undertakings 
(b) undertakings with which the insurance under­
taking is linked by virtue of a participating 
interest 
4. Subscribed capital called but not paid (unless 
national law provides that called-up capital be 
shown as an asset under A) 
E. Tangible assets and consumables 
1. Tangible assets as listed under assets heading C II 
of Article 9 of Directive 78/660/EEC, other than 
land and buildings 
2. Consumables IV. Deposits with cedant undertakings 
D. Investments for the benefit of life insurance policy 
holders who bear the investment risk 
E. Debtors 
For items I, II and III, a separate indication must be 
given of amounts owned by: 
— affiliated undertakings 
— undertakings with which the insurance undertaking 
is linked by virtue of a participating interest 
I. Debtors arising out of direct insurance operations 
1. Policyholders 
2. Agents 
3. Other debtors arising out of direct insurance 
operations 
II. Debtors arising out of reinsurance operations 
III. Other debtors 
IV. Subscribed capital called but not paid (unless 
national law provides that called-up capital be 
shown as an asset under A) 
No C 30/58 Official Journal of the European Communities 8. 2. 90 
F. Cash at bank and in hand 
G. Prepayments and accrued income 
1. Accrued interest and rent 
2. Deferred acquisition costs (distinguishing those 
arising in non-life and life insurance business) 
3. Other prepayments and accrued income 
H. Loss for the financial year 
(unless national law provides for it to be shown under 
A.VI under 'Liabilities') 
Liabilities 
A. Capital and reserves 
I. Subscribed capital 
(unless national law provides for called-up capital 
to be shown under this item. In that case, the 
amounts of subscribed capital and paid-up capital 
must be shown separately) 
II. Share premium account 
III. Revaluation reserve 
IV. Reserves 
V. Profit or loss brought forward 
VI. Profit or loss for the financial year 
(unless national law requires that this item be 
shown under H under 'Assets' or under H under 
'Liabilities') 
B. Subordinated liabilities 
C. Technical provisions 
1. Unearned premiums (and unexpired risks) 
(a) gross amount 
(b) reinsurance amount (—) F. Other assets 
I. Tangible assets as listed under assets heading C II 
of Article 9c Directive 78/660/EEC, other than 
land and buildings 
II. Cash at bank and in hand 
HI. Own shares (with an indication of their nominal 
value or, in the absence of a nominal value, their 
accounting par value) to the extent that national 
law permits their being shown in the balance sheet 
G. Prepayments and accrued income 
1. Accrued interest and rent 
2. Deferred acquisition costs (distinguishing those 
arising in non-life and life insurance business) 
3. Other prepayments and accrued income 
H. Loss for the financial year 
(unless national law provides for it to be shown under 
A.VI under 'Liabilities') 
Liabilities 
A. Capital and reserves 
I. Subscribed capital 
(unless national law provides for called-up capital 
to be shown under this item. In that case, the 
amounts of subscribed capital and paid-up capital 
must be shown separately) 
II. Share premium account 
III. Revaluation reserve 
IV. Reserves 
V. Profit or loss brought forward 
VI. Profit or loss for the financial year 
(unless national law requires that this item be 
shown under H under 'Assets' or under H under 
'Liabilities') 
B. Subordinated liabilities 
C. Technical provisions 
1. Unearned premiums (and unexpired risks) 
(b) gross amount 
(b) reinsurance amount (—) 
8. 2. 90 Official Journal of the European Communities No C 30/59 
2. Life insurance provisions 
(a) gross amount 
(b) reinsurance amount (—) 
— showing separately the amounts in respect 
of contracts under which the policy bears 
the investment risk 
3. Claims outstanding 
(a) gross amount 
(b) reinsurance amount (—) 
4. Provision for bonuses and rebates 
(a) gross amount 
(b) reinsurance amount (—) 
5. Equalization provisions required by national law 
6. Other technical provisions 
(a) gross amount 
(b) reinsurance amount (—) 
D. Provisions for other liabilities and charges 
1. Provisions for pensions and similar obligations 
2. Provisions for taxations 
3. Other provisions 
E. Deposits withheld from reinsurers 
F. Creditors 
(For each of the following items, a separate indication 
must be given of amounts owed to: 
(a) affiliated undertakings 
(b) undertakings with which the insurance underta­
king is linked by virtue of a participating interest) 
1. Debenture loans, showing convertible loans sep­
arately 
2. Amounts owed to credit institutions 
3. Creditors arising out of direct insurance operations 
4. Creditors arising out of reinsurance operations 
5. Other creditors, including tax and social security 
G. Accruals and deferred income 
H. Profit for the financial year 
(unless national law provides for it to be shown under 
A.VI under 'Liabilities') 2. Life insurance provisions 
(a) gross amount 
(b) reinsurance amount (—) 
3. Claims outstanding 
(a) gross amount 
(b) reinsurance amount (—) 
4. Provision for bonuses and rebates unless it is not 
shown under C.2 
(a) gross amount 
(b) reinsurance amount (—) 
5. Equalization provisions required by national law 
6. Other technical provisions 
(a) gross amount 
(b) reinsurance amount (—) 
Unchanged 
Unchanged 
Unchanged 
Unchanged 
No C 30/60 Official Journal of the European Communities 8. 2. 90 
Article 6 
Articles 11,12,27,44,47 (2) and (3) and 51 (2) of Directive 
78/660/EEC shall not apply to insurance undertakings. 
The provisions of Article 14 of Directive 78/660/EEC shall 
not apply to those commitments which axe taken into 
account in determining the amount of the technical 
provisions. 
Article 8 
1. Article 15 (1) and (2) of Directive 78/660/EEC shall 
not apply to insurance undertakings. 
2. The requirements of paragraph 3 of the abovemen-
tioned Article shall apply to each item of B, C and E.l under 
'Assets' in the layout prescribed in Article 5. 
Assets: item C.HI.2 
Debt securities 
1. This item shall comprise negotiable fixed-interest debt 
securities issued by credit institutions, by other undertak­
ings or by public bodies, in so far as they are not 
appropriate to asset items C.II.2 and C.II.4. 
2. Securities carrying interest rates that vary in line with 
specific factors, for example the interest rate on the inter­
bank market or on the Euromarket, shall also be regarded 
as fixed-interest debt securities. 
Assets: item C.III.3 and 4 
Loans guaranteed by mortgages and other loans 
Loans to policy holders for which the policy is the main 
security shall be included under the heading of 'Other 
loans' and their amount shall be disclosed in the notes on 
the accounts. Loans guaranteed by mortgages shall be 
shown as such even where they are also secured by an 
insurance policy. Where the amount of 'other loans' not 
secured by a policy is significant an appropriate breakdown 
shall be given in the notes on the accounts. Unchanged 
The provisions of Article 14 of Directive 78/660/EEC shall 
not apply to those commitments which are linked to the 
normal activity of insurance. 
Unchanged 
Assets: item CM.4 and 5 
Loans guaranteed by mortgages and other loans 
Loans to policy holders for which the policy is the main 
security shall be included under the heading of 'Other 
loans' and their amount shall be disclosed in the notes on 
the accounts. Loans guaranteed by mortgages shall be 
shown as such even where they are also secured by an 
insurance policy. Where the amount of 'other loans' not 
secured by a policy is significant an appropriate breakdown 
shall be given in the notes on the accounts. Article 7 Article 7 
SECTION 4 
Special provisions relating to certain balance sheet items 
Article 9 Unchanged 
Article 10 Article 10 
D.^0 Official journal of the European communities ^OL^OBDl 
Assets^itemsC^.HL^and^ 
deposits with credit institutions 
C^ash at bank and in hand 
deposits with credit institutions^comprises amounts the 
withdrawal of which is subject to a time restrictions 
whereas sums deposited with no such restriction shall 
appear under assets item re, even if they bear interest. 
Arr^^ 
Assets^ item CA1V 
Investments for the benefit oflife insurance policy holders 
who bear the investment risk 
Investments for the benefit oflife insurance policy holders 
who bear the investment risk shall comprisethe amount of 
all investments which the insurance undertaking holds by 
virtue of its commitment under Irfe insurance contracts the 
benefits ofwhich are expressed by reference to the value of 
those investments. Pending further harmonizations 
member states may however require or permit insurance 
undertakings to include such investments under the 
headings wheretheywouldappearbutfortheprovisionsof 
this Article.^here use is madeofthis option theamount of 
such investments under eachoftherespectiveheadings 
shall be separately disclosed. 
Assets^ item CAV1 
deposits with cedant undertakings 
In the balance sheet of an undertaking accepting reinsure 
ance^ this item shall comprise amounts deposited with^ or 
withheld by^otherinsurance undertakings underinsurance 
contracts.^fhese amounts may not be merged with other 
amounts owed by orto the otherundertakings in question. 
securities deposited with cedant undertakings which 
remain the property of the undertaking accepting reinsure 
ance shall not be shown here but under the appropriate 
heading for the type of asset in question, 
Ar^^^ 
Assets^itemdi 
Accrued interest and rent Ar^^^ 
Assets^ items C^.^L^^^^^ 
deposits with credit institutions 
C^ash at bank and in hand 
deposits with credit institutions^comprises amounts the 
withdrawal of which is subject to a time restrictions 
whereas sums deposited with no such restriction shall 
appear under assets item fu even if they bear interest, 
Arr^n^ 
Assets^ ^^f^ 
Investments for the benefit of life insurance policy holders 
who bear the investment risk 
investments for the benefit ofhfe insurance policy holders 
who bearthe investment risk shall comprise the amount of 
all investments which the insurance undertaking holds by 
virtue ofits commitment under life insurance contracts the 
benefits ofwhich are expressed by reference to the value of 
those investments. 
Arr^^ 
Assets^ ^^^V 
deposits with cedant undertakings 
In the balance sheet of an undertaking accepting reinsure 
ance^ this item shall comprise amounts deposited with^ or 
withheld by^other insurance undertakings underinsurance 
contracts.^fhese amounts may not be merged with other 
amounts owed by orto the otherundertakings in question. 
securities deposited with cedant undertakings which 
remain the property of the undertaking accepting reinsur 
ance shall not be shown here but under the appropriate 
heading for the type of asset in question. 
Unchanged 
Accrued interest and rent shall comprise those items that 
representinterestandrentthathavebeen earned up todate 
of the balance sheet but have not yet become receivable. 
No C 30/62 Official Journal of the European Communities 8. 2. 90 
Article 15 Article 15 
Assets: item G.2 Assets: item G.2 
Deferred acquisition costs Deferred acquisition costs 
Deferred acquisition costs shall comprise the amount of 
expenditure incurred on the acquisition of insurance 
business premium income which relates to a subsequent 
financial year or years having regard to the period to which 
the individual contract relates. Member States may 
prohibit the deferral of such amounts in life insurance 
business; any such prohibition must be disclosed in the 
notes on the accounts. 1. Deferred acquisition costs shall comprise the amount 
of expenditure incurred on the acquisition of insurance 
business premium income which relates to a subsequent 
financial year or years having regard to the period to which 
the individual contract relates. 
2. Member States may prohibit the deferral of such 
amounts in life insurance business; any such prohibition 
must be disclosed in the notes on the accounts. 
Where the zillmerization of life insurance contracts results 
in a negative amount in respect of particular contracts the 
total of such negative amounts shall be included in deferred 
acquisition costs and disclosed in the notes on the accounts. Where the zillmerization of life insurance contracts results 
in a negative amount in respect of particular contracts the 
total of such negative amounts shall be included in deferred 
acquisition costs and disclosed in the notes on the accounts. 
Where the deferred acquisition costs of life insurance 
contracts is computed separately from the life insurance 
provision and exceeds the said provision the excess shall be 
disclosed in the notes to the accounts. 
Article 16 Article 16 
Liabilities: item A.I Liabilities: item A.I 
Subscribed capital Subscribed capital 
This item shall comprise all amounts, irrespective of their 
actual designations, which, in accordance with the legal 
structure of an insurance undertaking, are regarded under 
the national law of the Member State concerned as equity 
capital subscribed by the share-holders or other pro­
prietors. This item shall comprise all amounts, irrespective of their 
actual designations, which, in accordance with the legal 
structure of an insurance undertaking, are regarded under 
the national law of the Member State concerned as equity 
capital subscribed by the share-holders or other persons. 
Article 17 Article 17 
Liabilities: item A.IV Liabilities: item A.IV 
Reserves Reserves 
Reserves shall comprise all the types of reserves listed in 
Article 9 of Directive 78/660/EEC under 'Liabilities' A.IV, 
as defined therein. The Member States may also require 
other types of reserves if necessary for insurance undertak­
ings the legal structures of which are not covered by 
Directive 78/660/EEC. Reserves shall comprise all the types of reserves listed in 
Article 9 of Directive 78/660/EEC under 'Liabilities' A.IV, 
as defined therein. The Member States may also require 
other types of reserves if necessary for insurance undertak­
ings the legal structures of which are not covered by 
Directive 78/660/EEC. 
These reserves shall be shown separately, as sub-items to 
'Liabilities' item A.IV, in the balance sheets of the insurance 
undertakings concerned, except for the revaluation reserve, 
which is shown under 'Liabilities' item A.III. Reserves shall be shown separately, as sub-items to 
'Liabilities' item A.IV, in the balance sheets of the insurance 
undertakings concerned, except for the revaluation reserve, 
which is shown under 'Liabilities' item A.III. 
8. 2. 90 Official Journal of the European Communities No C 30/63 
Article 18 
Liabilities: item B 
Subordinated liabilities 
Where it has been contractually agreed that, in the event of 
winding up or of bankruptcy, liabilities, whether or not 
represented by certificates, are to be repaid only after the 
claims of all other creditors have been met, the liabilities in 
question shall be shown under 'Liabilities' item B. Unchanged 
Article 19 
Liabilities: item C 
Technical provisions 
Article 20 of Directive 78/660/EEC shall not apply to the 
technical provisions disclosed under 'Liabilities' item C. 
Article 20 
Liabilities: item C 
Reinsurance amount (deduction) 
The reinsurance amounts shall be determined in accord­
ance with the stipulations of the reinsurance contracts. Unchanged 
Unchanged 
Article 21 
Liabilities: item C.I 
Unearned premiums 
Unearned premiums shall comprise the amount represent­
ing that part of gross premiums written which is to be 
allocated to a subsequent financial year or subsequent 
financial years. In the case of life insurance Member States 
may, pending further harmonization, permit or require the 
unearned premiums to be included in the life insurance 
provisions. Unchanged 
Article 22 
Liabilities: item C.6 (or C.I) 
Unexpired risks 
Unexpired risks shall comprise the amount set aside in 
addition to unearned premiums in respect of risks to be 
borne by the insurance undertaking after the end of the 
financial year, in order to provide for all claims and 
expenses in connection with insurance contracts in force in 
excess of the related unearned premiums and any premiums 
receivable on those contracts. The amount provided for 
unexpired risks shall be included in the amount for 'other 
technical provisions' at 'Liabilities' item C.6, unless 
national legislation provides that it shall be added to 
unearned premiums as defined in Article 21 and included in 
the amount disclosed at 'Liabilities' item C.l, in which case 
the description of that item shall be 'unearned premiums 
and unexpired risks'. In either case, where the amount of 
unexpired risks is material it shall be separately disclosed 
either in the balance sheet or in the notes on the accounts. Unchanged 
No C 30/64 Official Journal of the European Communities 8. 2. 90 
Article 23 Unchanged 
Liabilities: item C.2 
Life insurance provisions 
The life insurance provisions shall comprise the actuarially 
estimated value of the liabilities net of future premiums in 
respect of life direct insurance and reinsurance contracts. 
Negative amounts resulting from the zillmerization of life 
insurance provisions shall be disclosed in accordance with 
the provisions of Article 15. 
Article 24 Unchanged 
Liabilities: item C.3 
Claims outstanding 
1. The provision for claims outstanding shall be the total 
estimated ultimate cost to the insurance undertaking of 
settling all claims arising from events which have occurred 
up to the end of the financial year, whether reported or not, 
less amounts already paid in respect of such claims. 
2. The provision created through the application of 
Methods 1 or 2 described in Article 40 (1) shall be included 
in the provision for claims outstanding. The amount so 
included shall be disclosed in the notes on the accounts. 
Article 25 • Unchanged 
Liabilities: item C.4 
Provision for bonuses and rebates 
The provision for bonuses and rebates shall comprise 
amounts intended for policy holders and other insured 
parties by way of bonuses and rebates as defined in 
Article 34 to the extent that such amounts have not been 
attributed to individual policy holders or other insured 
parties through inclusion in the life insurance technical 
provisions shown under 'Liabilities' item C.2 or otherwise. 
8. 2. 90 Official Journal of the European Communities No C 30/65 
Article 26 Article 26 
Liabilities: item C.5 Liabilities: item C.5 
Equalization provisions required by national law Equalization provisions required by national law 
The amount shown under 'Liabilities' item C.5 shall 
comprise any amounts set aside in compliance with legal 
provisions to equalize fluctuations in loss ratios in the 
coming years. Amounts set aside for similar purposes other 
than by virtue of a legal requirement shall be separately 
disclosed under 'Liabilities' item A.IV. Member States may 
however permit or require them to be included in 'other 
technical provisions' at 'Liabilities' item C.6, in which 
event their amount shall be disclosed in the notes on the 
accounts if it is material. 1. The amount shown under 'Liabilities' item C.5 shall 
comprise any amounts set aside in compliance with legal or 
statutory provisions to equalize fluctuations in loss ratios 
in the coming years. The provisions set up for a similar 
purpose for special risks should also figure amongst these 
equalization provisions. 
2. Amounts not set aside for equalizing fluctuations in 
loss ratios by virtue of a legal requirement shall be 
separately disclosed under 'Liabilities' item AIV. Member 
States may however permit or require them to be included 
in 'other technical provisions' at 'Liabilities' item C.6 in 
which event their amount shall be disclosed in the notes on 
the accounts if it is material. 
Article 27 Unchanged 
Liabilities: item E 
Deposits withheld from reinsurers 
In the balance sheet of an undertaking ceding reinsurance, 
this item shall comprise amounts deposited by, or withheld 
from, other insurance undertakings under reinsurance 
contracts. These amounts may not be merged with other 
amounts owed to or by the other undertakings in question. 
Where the undertaking ceding reinsurance has received as a 
deposit securities which have been transferred to its 
ownership, this item shall comprise the amount owed by 
the cedant undertaking by virtue of the deposit. 
SECTION 5 
Layout of the profit and loss account 
Article 28 Article 28 
1. The Member States shall prescribe the layout provided 1. The Member States shall prescribe the layout provided 
in Article 29 for the profit and loss account. in Article 29 for the profit and loss account. 
No C 30/66 Official Journal of the European Communities 8. 2. 90 
2. The technical account for non-life-insurance business 
is to be used for those classes of direct insurance which are 
within the scope of Directive 73/239/EEC and for the 
corresponding classes of reinsurance business. 2. The technical account for non-life-insurance business 
is to be used for those classes of direct insurance which are 
within the scope of Directive 73/239/EEC and for the 
corresponding classes of reinsurance business. 
3. The technical account for life insurance business is to 
be used for those classes of direct insurance which are 
within the scope of Directive 79/267/EEC and for the 
corresponding classes of reinsurance business. 3. The technical account for life insurance business is to 
be used for those classes of direct insurance which are 
within the scope of Directive 79/267/EEC and for the 
corresponding classes of reinsurance business. 
4. Member States may allow or require undertakings 
whose activity consists wholly or principally of reinsurance 
to use the technical account for non-life insurance business 
for all their business. This shall also apply to undertakings 
writing direct non-life insurance only and also reinsurance. 
Article 29 Article 29 
Profit and loss account Profit and loss account 
I. Technical account — Non-life-insurance business I. Technical account — Non-life-insurance business 
1. Premiums: 1. Premiums: 
(a) gross premiums written (a) gross premiums written 
(b) outgoing reinsurance premiums (—) (b) outgoing reinsurance premiums (—) 
(c) change in provision for unearned premiums, 
net of reinsurance [( + ) or ( —)] (c) change in provision for unearned premiums, 
and in so far as national legislation authorizes, 
the entry of this provision in liabilities under C 
1, the unexpired risks provision [(+) or (—)], 
net of reinsurance 
(d) earned premiums [result of (a), (b) and (c)] (d) earned premiums [result of (a), (b) and (c)] 
2. Other technical income 2. Other technical income, net of reinsurance 
3. Claims incurred: 3. Allocated investment return ( + ) [HI (8)] 
(a) gross claims paid 
(b) amounts recoverable from reinsurers (—) 
(c) change in provision for claims, net of reinsur­
ance [( + ) or ( —)] 
(d) net claims incurred [result of (a), (b) and (c)] 
8. 2. 90 Official Journal of the European Communities No C 30/67 
4. Changes in other technical provisions, net of 
reinsurance: 
(a) change in unexpired risks provision [( + ) or 
(-)] 
(b) changes in other technical provisions (not 
shown under other headings) [( + ) or ( —)] 
(c) results of (a) and (b) [( + ) or (-)] 
5. Bonuses and rebates 
(a) gross bonuses and rebates 
(b) amounts receivable from reinsurers (—) 
(c) net bonuses and rebates [a) — b)] 
6. Commissions and other technical charges: 
(a) commissions 
(b) administrative expenses 
(c) commissions and profit participation from 
other insurance undertakings (—) 
(d) variations in deferred acquisition costs [(+) or 
(e) net amount of commissions and other tech­
nical charges [result of (a), (b), (c) and (d)] 
7. Other technical charges, net of reinsurance 
8. Subtotal (first technical result) 
9. Changes in equalization provisions and reserves 
(a) changes in legally prescribed equalization 
provisions [( + ) or ( —)] 
(b) changes in other equalization provisions and 
reserves [( + ) or ( —)] 
(c) result of (a) and (b) 4. Claims incurred: 
(a) claims paid: 
(aa) gross amount 
(bb) amounts recoverable from reinsurers ( — ) 
(cc) net amount [result of (aa) and (bb)] 
(b) change in provision for claims, net of reinsur-
ance[( + )or(-)] 
(c) net claims incurred [result of (a) and (b)] 
5. Changes in other technical provisions, net of 
reinsurance: 
(a) change in unexpired risks provisions (unless it 
is included under 1 (c) [( + ) or ( —)] 
(b) changes in other technical provisions not 
shown under other headings [( + ) or ( — )] 
(c) result of (a) and (b) [( + )or(-)] 
6. Bonuses and rebates, net of reinsurance 
(a) Bonuses, net of reinsurance 
(b) Rebates, net of reinsurance 
7. Operating expenses 
(a) Acquisition costs thereof: provisions 
(b) administrative expenses 
(c) commissions and profit participation from 
reinsurance undertakings ( — ) 
(d) variations in deferred acquisition costs [( + )of 
(-)] 
(e) Operation expenses, net of reinsurance [result 
of (a), (b), (c) and (d)) 
8. Other technical charges, net of reinsurance 
9. Subtotal (first technical result) 
No C 30/68 Official Journal of the European Communities 8. 2. 90 
10. Allocated investment return ( + ) (III. 10) 
11. Subtotal second technical result (III.l) 
II. Technical account — Life insurance business 
1. Premiums: 
(a) gross premiums written 
(b) outgoing reinsurance premiums (—) 
(c) change in provisions for unearned premiums, 
net of reinsurance [( + ) or ( —)] 
(d) earned premiums [result of (a), (b) and (c)] 
2. Income from participating interests, with a sep­
arate indication of that derived from affiliated 
undertakings 
3. Income from other investments, with a separate 
indication of that derived from affiliated under­
takings : 
(a) income from land and buildings 
(b) income from other investments 
(c) result of (a) and (b) 
4. Profit on the realization of investments 
5. Value adjustments on investments 
6. Unrealized gains on investments 10. Changes in equalization provisions and reserves 
(a) changes in legally or statutorily prescribed 
equalization provisions [( + ) or ( — )] 
(b) changes in other equalization provisions and 
reserves [( + ) or ( — )] 
(c) result of (a) and (b) 
11. Subtotal (second technical result) (III.l) 
II. Technical account — Life insurance business 
1. Premiums: 
(a) gross premiums written 
(b) outgoing reinsurance premiums (—) 
(c) change in provisions for unearned premiums 
[( + )or(-)] 
(d) earned premiums [result of (a), (b) and (c)] 
2. Investment income 
(a) income from participating interest, with a 
separate indication of that derived from 
affiliated undertaking 
(b) income from other investments, with a sep­
arate indication of that derived from affiliated 
undertakings: 
(aa) income from land and buildings 
(bb) income from other investments 
(c) value adjustments from investments 
(d) profit on the realization of investments 
3. Unrealized gains on investment 
4. Other technical income 
5. Subtotal: total technical income 
6. Claims incurred 
(a) claims paid: 
(aa) gross amount 
(bb) amount recoverable from reinsurers ( — ) 
(cc) net amount [result of (aa) and (bb)] 
(b) change in provision for claims, net of reinsur­
ance [( + ) or ( — )] 
(c) net claims incurred [results of a) and b)[ 
8. 2. 90 Official Journal of the European Communities No C 30/69 
7. Other technical income 
8. Subtotal: total technical income 
9. Claims incurred 
(a) gross claim paid 
(b) amounts recoverable from reinsurers (—) 
(c) net claims incurred [result of (a) and (b)] 
10. Changes in technical provisions, as far as not 
shown under 1 (c) 
(a) life insurance provision, net of reinsurance 
[( + )or(-)] 
(b) other technical provisions, net of reinsurance 
[( + )or(-)] 
11. Bonuses and rebates: 
(a) gross bonuses and rebates 
(b) amounts receivable from reinsurers (—) 
(c) net bonuses and rebates [(a) — (b)] 
12. Commissions and other technical charges: 
(a) commissions 
(b) administrative expenses 
(c) commissions and profit participations from 
other insurance undertakings (—) 
(d) variations in deferred acquisition costs [(+) or 
(-)] 
(e) net amount of commissions and other tech­
nical charges [result of (a), (b), (c) and (d)] 
13. Investment charges: 
(a) charges, including interest, relating to land and 
buildings 7. Changes in technical provisions, as far as not 
shown under 1 (c) or 6 (b) 
(a) life insurance provision, net of reinsurance 
[( + )or(-)J 
(b) other technical provisions, net of reinsurance 
[( + )or(-)] 
8. Bonuses and rebates, net of reinsurance 
(a) bonuses, net of reinsurance 
(b) rebates, net of reinsurance 
9. Operating expenses 
(a) acquisition costs (thereof provisions) 
(b) administrative expenses 
(c) commissions and profit participation from 
reinsurance undertakings ( — ) 
(d) variations in deferred acquisition costs [( + )or 
(-)] 
(e) operating expenses, net of reinsurance [result 
of(a),(b),(c)and(d)] 
10. Investment charges : 
(a) charges, including interest, relating to land and 
buildings 
(b) other investment management charges, includ­
ing interest 
(c) value adjustments on investments 
(d) losses on the realization of investments 
11. Unrealized losses on investments 
12. Other technical charges 
13. Allocated investment return transferred to the non­
technical account (II1.5) (—) 
No C 30/70 Official Journal of the European Communities 8. 2. 90 
(b) other investment management charges, includ­
ing interest 
14. Losses on the realization of investments 
15. Value adjustments on investments 
16. Unrealized losses on investments 
17. Other technical charges 
18. Subtotal: total technical charges 
19. Subtotal (first technical result) 
20. Allocated investment return (—) (III.9) 
21. Subtotal (second technical result) (III.2) 14. Subtotal: technical result (III.2) 
III. Non-technical account 
1. Result of technical account — non-life insurance 
business (1.11) 
2. Result of technical account — life insurance 
business (11.21) 
3. Income from participating interests, apart from 
that shown in the technical account, with a 
separate indication of that derived from affiliated 
undertakings 
4. Income from other investments, with a separate 
indication of that derived from affiliated undertak­
ings: 
(a) income from land and buildings 
(b) income from other investments 
5. Value adjustments on investments [(+) or (—)] 
6. Investment charges: 
(a) charges, including interest, related to land and 
buildings 
(b) other investment management charges, includ­
ing interest III. Non-technical account 
1. Result of technical account — 
business (1.11) 
2. Result of technical account 
business (11.14) non-life insurance 
— life insurance 
3. Income from investment: 
(a) income from participating interests, with a 
separate indication of that derived from 
affiliated undertakings 
(b) income from other investments, with a sep­
arate indication of that derived from affiliated 
undertakings: 
(aa) income from land and buildings 
(bb) income from other investments 
(c) value adjustments on investments 
(d) profits on the realization of investments 
4. Unrealized gains on investments 
5. Allocated investment return from 11.13 ( + ) 
6. Investment charges: 
(a) charges, including interest, relating to land and 
buildings 
(b) other investment management charges, includ­
ing interest 
(c) investment value adjustments 
(d) losses on the realization of investments 
8. 2. 90 Official Journal of the European Communities No C 30/71 
7. Profits on the realization of investments 
8. Losses on the realization of investments 
9. Allocated investment return transferred from life 
insurance technical account (11.20) (+) 
10. Allocated investment return transferred to non-
life-insurance technical account (1.10) ( —) 
11. Non-investment income 
12. Non-investment charges, including value adjust­
ments 
13. Tax on profit or loss on ordinary activities 
14. Profit or loss on ordinary activities after taxation 
15. Extraordinary income 
16. Extraordinary charges 
17. Extraordinary profit or loss 
18. Tax on extraordinary profit or loss 
19. Other taxes not shown under the above items 
20. Profit or loss for the financial year 7. Unrealized losses on investments 
8. Allocated investment return (1.3) 
9. Other income 
10. Other charges, including value adjustments 
11. Tax on profit or loss on ordinary activities 
12. Profit or loss on ordinary activities after taxation 
13. Extraordinary income 
14. Extraordinary charges 
15. Extraordinary profit or loss 
16. Tax on extraordinary profit or loss 
17. Other taxes not shown under the above items 
18. Profit or loss for the financial year 
SECTION 6 
Special provisions relating to certain items in the profit and loss account 
Article 30 
Non-life technical account item 1.1 (a) 
Life technical account item II. 1 (a) 
Gross premiums written 
1. Article 28 of Directive 78/660/EEC shall not apply to 
insurance undertakings. 
2. Gross premiums written shall comprise all amounts 
received and receivable in respect of insurance contracts 
issued by or on behalf of the insurance undertaking, 
including: 
(a) single premiums, inclusive of annuity considerations; Article 30 
Non-life technical account item 1.1 (a) 
Life technical account item II. 1 (a) 
Gross premiums written 
1. Article 28 of Directive 78/660/EEC shall not apply to 
insurance undertakings. 
2. Gross premiums written shall comprise all amounts 
received and receivable in respect of insurance contracts 
issued by or on behalf of the insurance undertaking, 
including: 
(a) single premiums, inclusive of annuity considerations, 
also in life insurance single premiums resulting from 
bonus and rebate provisions in so far as they must be 
considered as premiums on the basis of contracts and 
where national legislation prescribes or authorizes 
their entry under premiums; 
No C 30/72 Official Journal of the European Communities 8. 2. 90 
(b) additions to premiums in the case of semi-annual, 
quarterly or monthly payments and recoveries from 
policy holders of expenses borne by the company; (b) additions to premiums in the case of semi-annual, 
quarterly or monthly payments and recoveries from 
policy holders of expenses borne by the company; 
(c) in the case of coinsurance, the insurance undertakings's 
portion of total premiums (excluding premiums to be 
allocated to coinsurance partners); in the case of coinsurance, the insurance undertakings's 
portion of total premiums (excluding premiums to be 
allocated to coinsurance partners); 
(d) reinsurance premiums in respect of business acquired 
from ceding companies; (d) reinsurance premiums in respect of business acquired 
from ceding companies; 
after deduction of cancellations and of taxes and parafiscal 
contributions or levies charged by reference to the amount 
of individual premiums or the volume of premiums. after deduction of cancellations and of taxes and parafiscal 
contributions or levies charged by reference to the amount 
of individual premiums or the volume of premiums. 
Article 31 Unchanged 
Non-life technical account item I.I (b) 
Life technical account item II. 1 (b) 
Outgoing reinsurance premiums 
Outgoing reinsurance premiums shall comprise all 
amounts paid and payable in respect of outgoing reinsur­
ance contracts entered into by the insurance undertaking. 
Article 32 Unchanged 
Non-life technical account item 1.1 (c) 
Life-technical account item II. 1 (c) 
Change in provision for unearned premiums, net of 
reinsurance 
The change in the provision for unearned premiums, net of 
reinsurance, shall comprise the difference between the 
provision for unearned premiums at the beginning of the 
financial year and at its end, and shall not include the 
change in the provision for unexpired risks. Pending further 
coordination, Member States may in the case of life 
insurance require or permit the change in unearned 
premiums to be included in the change in the life insurance 
provision. 
8. 2. 90 Official Journal of the European Communities No C 30/73 
Article 33 Article 33 
Non-life technical account: item 1.3 Non-life technical account: item I. 4 
Life technical account: item II.9 Life technical account: item 11.6 
Claims incurred CI aims incu rred 
1. Claims incurred shall comprise all amounts paid and 
payable, after taking into account provisions made in 
previous years, in respect of liabilities arising in relation to 
events occurring up to and including the balance sheet date. 
The amounts in question include annuities, surrenders, 
adjustments of claims in respect of previous years still 
outstanding at the balance sheet date, losses incurred but 
not reported, external and internal direct and indirect 
claims settlement costs and entries and withdrawals of loss-
provisions to and from ceding insurance undertakings and 
reinsurers. Amounts received or receivable as a result of 
obtaining the legal ownership of insured property or 
acquiring the rights of the policy holder against third 
parties in connection with the settlement of a claim (salvage 
and subrogation) shall be deducted. Where such amounts 
are material they shall be disclosed in the notes on the 
accounts. 1. Claims incurred shall comprise all amounts paid and 
payable, after taking into account provisions made in 
previous years, in respect of liabilities arising, in relation to 
events occurring up to and including the balance sheet date. 
The amounts in question include annuities, surrenders, 
adjustments of claims in respect of previous years still 
outstanding at the balance sheet date, losses incurred but 
not reported, external and internal direct and indirect 
claims settlement costs and entries and withdrawals of loss-
provisions to and from ceding insurance undertakings and 
reinsurers. Amounts received or receivable as a result of 
obtaining the legal ownership of insured property or 
acquiring the rights of the policy holder against third 
parties in connection with the settlement of a claim (salvage 
and subrogation) shall be deducted. Where such amounts 
are material they shall be disclosed in the notes on the 
accounts. 
2. Where the amount of adjustments of claims in aspect 
of previous years still outstanding at the balance sheet date 
is material, it shall be disclosed in the notes on the accounts. 2. Where the amount of adjustments of claims in a given 
class in respect of previous years still outstanding at the 
balance sheet date is material, it shall be disclosed in the 
notes on the accounts. 
Article 34 Article 34 
Non-Life technical account: item 1.5 Non-Life technical account: item 1.6 
Life technical account: item 11.11 Life technical account: item 11.8 
Bonuses and rebates Bonuses and rebates 
Bonuses shall comprise all amounts chargeable for the 
financial year which are paid or payable to policy holders 
and other insured parties or provided for their benefit, 
including amounts used to increase technical provisions or 
applied to the reduction of future premiums, to the extent 
that such amounts represent an allocation of surplus or 
profit arising on business as a whole or a section of 
business, after deduction of amounts provided in previous 
years which are no longer required. Bonuses shall comprise all amounts chargeable for the 
financial year which are paid or payable to policy holders 
and other insured parties or provided for their benefit, 
including amounts used to increase technical provisions or 
applied to the reduction of future premiums, to the extent 
that such amounts represent an allocation of surplus or 
profit arising on business as a whole or a section of 
business, after deduction of amounts provided in previous 
years which are no longer required. 
Rebates shall comprise such amounts to the extent that 
they represent a partial refund of premiums resulting from 
the experience of individual contracts. Rebates shall comprise such amounts to the extent that 
they represent a partial refund of premiums resulting from 
the experience of individual contracts. 
Where material, the amount charged for bonuses and that 
charged for rebates shall be distinguished in the notes on 
the accounts. Where material, the amount charged for bonuses and that 
charged for rebates shall be distinguished in the notes on 
the accounts. 
No C 30/74 Official Journal of the European Communities 8. 2. 90 
Article 35 
Non-life technical account: item 1.6 (a) 
Life technical account: item 11.12 (a) 
Commissions 
Commissions shall comprise all amounts paid or payable in 
respect of insurance contracts which constitute a fee paid, 
otherwise than by virtue of a contract of employment, for 
services rendered in respect of business introduced to the 
insurance undertaking. They include amounts paid to 
agents and brokers but exclude amounts paid to employees 
(such as members of the direct sales force) acting in the 
ordinary course of their service to the undertaking. 
Article 36 
Non-life technical account: item 1.6 (b) 
Life technical account: item 11.12 (b) 
Administrative expenses 
Administrative expenses shall include in particular value 
adjustments on tangible assets other than land and 
buildings and all staff costs, including commissions paid to 
employees acting in the ordinary course of their service to 
the undertaking, with the exception of staff costs incurred 
in connection with claims settlement and those that are 
properly charged under investment expenses. 
Article 37 
Non-life technical account: item 1.10 
Non-technical account: item III. 10 
Allocation of part of investment return to the non-life 
technical account 
Where part of the investment return is allocated to the 
technical account for non-life insurance business, the 
transfer from the non-technical account shall be deducted 
at item III. 10 and added at item 1.10. The reason for the 
allocation and the basis on which it is made must be 
disclosed in the notes on the accounts. Article 35 
Non-life technical account: item 1.7 (a) 
Life technical account: item 11.9 (a) 
Commissions 
Commissions shall comprise all amounts paid or payable 
for the conclusion of insurance contracts which constitute a 
fee paid, otherwise than by virtue of a contract of 
employment, for services rendered in respect of business 
introduced to the insurance undertaking. They include 
amounts paid to agents and brokers but exclude amounts 
paid to employees (such as members of the direct sales 
force) acting in the ordinary course of their service to the 
undertaking. 
Article 36 
Non-life technical account: item 1.7 (b) 
Life technical account: item 11.9 (b) 
Administrative expenses 
Administrative expenses shall include in particular value 
adjustments on tangible assets other than land and 
buildings and all staff costs, including commissions paid to 
employees acting in the ordinary course of their service to 
the undertaking, with the exception of staff costs incurred 
in connection with claims settlement and those that are 
properly charged under investment expenses. 
Article 37 
Non-life technical account: item 1.3 
Non-technical account: item III.8 
Allocation of part of investment return to the non-life 
technical account 
1. Where part of the investment return shown in the non­
technical account is allocated to the technical account for 
non-life insurance, the transfer from the non-technical 
account shall be deducted at item 111.8 and added to item 
1.3. The reason for the allocation and the basis on which it 
is made must be disclosed in the notes on the accounts. 
8. 2. 90 Official Journal of the European Communities No C 30/75 
Article 38 
Life technical account: item II 
Investment income, etc. 
1. In the case of an undertaking carrying on only life 
insurance business, all investment income and charges and 
profits and losses on the realization of investments shall be 
disclosed in the technical account for life insurance 
business. 
2. In the case of an undertaking carrying on both life 
insurance and non-life insurance business, all investment 
income and charges and profits and losses on the 
realization of investments shall to the extent that they are 
directly connected with the carrying-on of the life insurance 
business be disclosed in the technical account for life 
insurance business. 
3. That part of the investment income and charges and of 
profits and losses on the realization of investments 
disclosed in the technical account for life insurance 
business which is not used or set aside for the benefit of 
policy holders and insured parties may be allocated in 
whole or in part to the non-technical account, the amount 
allocated being deducted at item 11.20 and added at item 
III.9. The reason for the allocation and the basis on which it 
is made must be disclosed in the notes on the accounts. 
Article 39 
Life technical account: items II.6 and 16 
Unrealized gains and losses in life insurance business 
Variations in the amount of the difference between the 
valuation of investments in accordance with current value 
and their valuation in accordance with the principle of 
purchase price or production cost shall be shown at items 
II.6 and 16 only to the extent that Article 43 (2) applies. 2. That part of the investment income and charges and of 
profits and losses on the realization of investments 
disclosed in technical account for life insurance business 
which is not used or set aside for the benefit of policy 
holders and other insured parties may be allocated in whole 
or in part to the non-technical account, the amount 
allocated being deducted at item 11.13 and added at item 
III.5. The reason for the allocation and the basis on which it 
is made must be disclosed in the notes on the accounts. 
3. Member States may fix the methods and the basis for 
the transfer of allocated returns from one part of the profit 
and loss account to another. 
Article 38 
Non-life technical account: item I 
Life technical account: item II 
Investment income and charges 
1. All income and charges from investments together 
with profits and losses arising from the realization of 
investments relating to non-life insurance shall be indicated 
in the non-technical account. 
2. In the case of an undertaking carrying on only life 
insurance business, all investment income and charges and 
profit and losses on the realization of investments shall be 
disclosed in the technical account for life insurance 
business. 
3. In the case of an undertaking carrying on both life 
insurance and non-life insurance business, all investment 
income and charges and profits and losses on the 
realization of investments shall to the extent that they are 
directly connected with the carrying-on of the life insurance 
business be disclosed in the technical account for life 
insurance business. 
4. Member States may also prescribe or authorize the 
indication of income and charges from investments 
together with profits and losses arising from the realization 
of investments according to their origin, i.e. partly in the 
technical accounts and partly in the non-technical account 
depending on the allocation of these amounts to the 
insurers' or the shareholders' fund. 
Article 39 
Life technical account: items 11.3 and 11 
Unrealized gains and losses in life insurance business 
Variations in the amount of the difference between the 
valuation of investments in accordance with current value 
and their valuation in accordance with the principle of 
purchase price or production cost shall be shown at items 
11. 3 and 11 only to the extent that Article 43 (2) applies. 
No C 30/76 Official Journal of the European Communities 8. 2. 90 
SECTION 7 
Valuation rules 
Article 40 Article 40 
1. Pending further coordination Member States may Unchanged 
require or permit the application of the following methods 
where, owing to the nature of the class or type of insurance 
in question, information about premiums receivable, 
claims payable, or both, for the underwriting year is 
insufficient at the time at which the annual accounts are 
drawn up to enable accurate estimates to be made. 
Method 1 
The excess of the premiums received over the claims and 
expenses paid in respect of contracts commencing in the 
underwriting year forms a technical provision, which in 
accordance with Article 24 (2) is included in the technical 
provision for claims outstanding shown in the balance 
sheet at 'Liabilities' item C 3. The amount of this technical 
provision is if necessary increased to make it sufficient to 
meet present and future obligations. No amount in respect 
of the contracts in question *is included in the technical 
provisions for unearned premiums and unexpired risks 
referred to respectively in Articles 21 and 22. The technical 
provision formed in accordance with this method is 
replaced by a provision for claims outstanding estimated in 
the usual manner at the end of the year following the 
underwriting year or at the end of a later year. 
Method 2 
The rules of Method 1 apply, except that the technical 
provision referred to in the first sentence of the description 
of that method is calculated as a particular percentage of 
the premiums receivable. 
Method 3 
The figures shown in the whole of the technical account or 
at certain items within it relate to a year which wholly or 
partly precedes the financial year. 
The amount of the technical provisions shown in the 
annual accounts is if necessary increased to make them 
sufficient to meet present and future obligations. 
8. 2. 90 Official Journal of the European Communities No C 30/77 
2. Where a method referred to in paragraph 1 is adopted, 
it shall be applied systematically in successive years unless 
circumstances justify a change. The use of any such method 
shall be disclosed in the notes on the accounts together with 
an explanation of the reasons for it and a statement of its 
effect on the assets, liabilities, financial position and profit 
or loss, with particular reference to its effect on the 
provisions for unearned premiums and claims outstanding. 
Where Methods 1 or 2 are used, the length of time that 
elapses before a provision for claims outstanding is created 
on the usual basis shall be disclosed in the notes on the 
accounts. Where Method 3 is used, the length of time by 
which the year to which the figures relate precedes the 
financial year shall be disclosed in the notes on the 
accounts. 
3. Where Methods 1 or 2 are used, a provision for claims 
outstanding shall be created on the usual basis not later 
than the end of the third year following the underwriting 
year. Where Method 3 is used, the length of time by which 
the year to which the figures relate precedes the financial 
year shall not exceed 12 months. 
4. For the purposes of this Article the expression 
'underwriting year' means the financial year in which the 
insurance contracts in the class or type of insurance in 
question commenced. 
Article 4\ 
Article 32 of Directive 78/660/EEC, which provides that 
the valuation of items shown in the annual accounts shall 
be based on the principle of purchase price or production 
cost, shall in its application to investments be subject to 
Article 42 to 45 of this Directive. 
Article 42 
1. As regards the valuation of investments shown in 
Article 5 under 'Assets' item C Member States may require 
or permit insurance undertakings to apply current value 
calculated in accordance with Articles 44 and 45. 
2. Where in life insurance business the benefits provided 
to policy holders and insured parties are related to the 
current value of particular investments or investments as a 
whole, those investments shall be shown in the balance 
sheet at current value. 
3. Where the principle of purchase price or production 
cost referred to in Article 32 of Directive 78/660/EEC is 
applied to investments, the current value shall be disclosed 
in the notes on the accounts. 2. Where a method referred to in paragraph 1 is adopted, 
it shall be applied systematically in successive years unless 
circumstances justify a change. The use of any such method 
shall be disclosed in the notes on the accounts together with 
an explanation of the reasons for it; in the event of a change 
of the method applied, its effect on the assets, the financial 
situation and the profit or loss shall be indicated in the 
notes on the accounts. Where Methods 1 or 2 are used the 
length of time that elapses before a provision for claims 
outstanding is created on the usual basis shall be disclosed 
in the notes on the accounts. Where Method 3 is used, the 
length of time by which the year to which the figures relate 
precedes the financial year shall be disclosed in the notes on 
the accounts. 
Unchanged 
Unchanged 
Unchanged 
Article 42 
Unchanged 
2. Where in life insurance business the benefits provided 
to policy holders and other insured parties are directly 
related to the current value of particular investments or 
investments as a whole, those investments shall be shown in 
the balance sheet at current value. 
Unchanged 
No C 30/78 Official Journal of the European Communities 8. 2. 90 
4. Where investments are shown at current value, the 
value resulting from the application of the principle of 
purchase price or production cost shall be disclosed in the 
notes on the accounts. 
5. The same basis shall be applied to all investments 
included in any item denoted by an arabic number. 
6. The method applied to each item of investments shall 
be disclosed in the notes on the accounts. 
1. Where current value is applied to investments, 
Article 33 (2) and (3) of Directive 78/660/EEC shall apply, 
except as provided in paragraph 2. 
2. In the case described in Article 42 (2), the amount of 
the difference between valuation in accordance with 
current value and valuation in accordance with the 
principle of purchase price or production cost shall be 
entered in the life insurance provisions in Article 5 at 
'Liabilities' item C 2. Variations in this difference shall be 
disclosed in the technical account for life insurance 
business at Article 29, items II.6 and 16. 
1. In the case of investments other than land and 
buildings, current value shall mean market value, save as 
provided in paragraph 6. 
2. Where investments are quoted on a recognized stock 
exchange, market value shall mean the middle market value 
on the balance sheet date or on the last day of trading 
preceding that date. 
3. Where an active market exists for investments other 
than those referred to in paragraph 2, the market value 
shall mean the average figure at which such investments 
were traded on the balance sheet date or the last day of • 
trading preceding that date. 
4. Where the application of a method referred to in 
paragraphs 2 and 3 produces a figure for particular 
investments which, owing to exceptional circumstances at 
the date in question, is materially higher than the figure 
which would have been obtained in the absence of those 
circumstances, the latter figure shall be taken as the market 
value. 
5. Where at the date at which the accounts are drawn up 
investments referred to in paragraphs 2 or 3 have been sold 
or there is an intention to sell them within the short term, 
the market value shall be reduced by the incurred or 
estimated realization costs. Unchanged 
Unchanged 
Unchanged 
1. Where current value is applied to investments, Article 
33 (2) and (3) of Directive 78/660/EEC shall apply, except 
as provided in paragraph 2. 
2. In the case described in Article 42 (2), the amount of 
the difference between valuation in accordance with 
current value and valuation in accordance with the 
principle of purchase price or production cost shall be 
entered in the life insurance provisions in Article 5 at 
'Liabilities' item C 2. Variations in this difference shall be 
disclosed in the technical account for life insurance 
business at Article 29, items II.3 and 11. 
Unchanged 
2. Where investments are quoted on a recognized stock 
exchange, market value shall mean the market value on the 
balance sheet date or on the last day of trading preceding 
that date. 
3. Where a market exists for investments other than those 
referred to in paragraph 2, the market value shall mean the 
average figure at which such investments were traded on 
the balance sheet date or the last day of trading preceding 
that date. 
Unchanged 
Unchanged Article 43 Article 43 
Article 44 Article 44 
8. 2. 90 Official Journal of the European Communities No C 30/79 
6. Except where the equity method is applied in 
accordance with Article 59 of Directive 78/660/EEC, all 
other investments shall be valued on a basis which has 
prudent regard to the likely realizable value. 
7. In all cases the precise method of valuation and the 
reason for adopting it shall be disclosed in the notes on the 
accounts. 
Article 45 
1. Except as provided in paragraph 6, current value in the 
case of land and buildings shall mean the market value 
determined at the date of valuation, reduced as provided in 
paragraphs 4 and 5. 
2. Market value shall mean the price at which the land 
and buildings could be sold under private contract between 
a willing seller and an arm's length buyer at the date of 
valuation, it being assumed that the property is publicly 
exposed to the market, that market conditions permit 
orderly disposal and that a normal period, having regard to 
the nature of the property, is available for the negotiation 
for the sale. 
3. The market value shall be determined through the 
separate valuation of each item of land and buildings 
carried out not less frequently than every five years by 
persons approved for the purpose by the Member State in 
which the head office of the insurance undertaking is 
situated. 
4. Where the value of any item of land and buildings has 
diminished at the balance sheet date, the appropriate value 
adjustment shall be made. The lower value thus arrived at 
shall not be increased in subsequent balance sheets unless 
such increase results from a new determination of market 
value arrived at in the conditions prescribed in para­
graphs 2 and 3. 
5. Where at the date at which the accounts are drawn up 
land and buildings have been sold or there is an intention to 
sell them within the short term, the value arrived at in 
accordance with paragraphs 2 and 4 shall be reduced by the 
incurred or estimated realization costs. 
6. Where it is impossible to determine the market value of 
an item of land and buildings, the value arrived at on the 
basis of the principle of purchase price or production cost 
shall be treated as the current value. 
7. In all cases the method by which current value has been 
arrived at and the year or years in which valuations were 
last carried out in accordance with paragraph 3 shall be 
disclosed in the notes on the accounts. Unchanged 
Unchanged 
Article 45 
1. Except as provided in paragraph 6, current value in the 
case of land and buildings shall mean the market value 
determined at the date of valuation, reduced as provided in 
paragraphs 4 and 5. 
2. Market value shall mean the price at which the land 
and buildings could be sold under private contract between 
a willing seller and an arm's length buyer at the date of 
valuation, it being assumed that the property is publicly 
exposed to the market, that market conditions permit 
orderly disposal and that a normal period, having regard to 
the nature of the property, is available for the negotiation 
for the sale. 
3. The market value shall be determined through the 
separate valuation of each item of land and buildings 
carried out not less frequently than every five years by 
persons approved for the purpose either by the Member 
State in which the head office of the undertaking is situated 
or, where different, by the Member State in which the land 
and buildings are situated. 
4. Where the value of any item of land and buildings has 
diminished at the balance sheet date, the appropriate value 
adjustment shall be made. This adjustment may be on the 
basis of a percentage reduction recommended by persons 
approved as aforesaid in respect of land and buildings the 
value of which has diminished since the last valuation by 
such persons. The lower value thus arrived at shall not be 
increased in subsequent balance sheets unless such increase 
results from a new determination of market value arrived at 
in the conditions prescribed in paragraphs 2 and 3. 
5. Where at the date at which the accounts are drawn up 
land and buildings have been sold or there is an intention to 
sell them within the short term, the value arrived at in 
accordance with paragraphs 2 and 4 shall be reduced by the 
incurred or estimated realization costs. 
6. Where it is impossible to determine the market value of 
an item of land and buildings, the value arrived at on the 
basis of the principle of purchase price or production cost 
shall be treated as the current value. 
7. In all cases the method by which current value has been 
arrived at and the year or years in which valuations were 
last carried out in accordance with paragraph 3 shall be 
disclosed in the notes on the accounts. 
No C 30/80 Official Journal of the European Communities 8. 2. 90 
Article 46 
1. Article 33 of Directive 78/660/EEC shall apply to 
insurance undertakings in the following manner: 
(a) references to 'tangible fixed assets' shall be construed 
as references to assets listed under 'Assets' C.II.2,3 and 
4 in Article 9 of Directive 78/660/EEC; 
(b) the reference to 'stocks' shall be construed as a 
reference to assets shown in this Directive at Article 5, 
'Assets' item E.2. 
2. Subject to Article 43 of this Directive, Article 33 of 
Directive 78/660/EEC shall not apply to investments which 
are financial fixed assets within the meaning of 'Assets' 
CHI of Article 9 of Directive 78/660/EEC. 
Article 47 
The application of Article 35 of Directive 78/660/EEC to 
insurance undertakings shall be subject to the following 
modifications: 
(a) references to 'fixed assets' shall be construed as 
references to assets shown in this Directive at Article 5, 
'Assets' items B, C and E.l; 
(b) references to 'financial fixed assets' shall be construed 
as references to assets shown in this Directive at 
Article 5, 'Assets' items C.II, III, IV, V and VI. 
Article 48 
In Article 38 of Directive 78/660/EEC the reference to 
tangible fixed assets, raw materials and consumables shall, 
as regards insurance undertakings, be construed as a 
reference to assets shown in this Directive at Article 5 
'Assets' item E. 
Article 49 
For the application of Article 39 of Directive 78/660/EEC 
to insurance undertakings the reference to current assets 
shall be construed as a reference to assets shown in this 
Directive at Article 5, 'Assets' items D.l, 2 and 3 and F. 
Article 50 Article 46 
Article 33 of Directive 78/660/EEC shall apply to insurance 
undertakings in the following manner: 
(a) paragraph 1 (a) shall apply to assets shown under F.l in 
Article 5 of this Directive; 
(b) subject to Article 43 of this Directive, Article 33 of 
Directive 78/660/EEC shall not apply to assets shown 
under C.II, III, IV, D and F.III of Article 5 of this 
Directive. 
Article 47 
The application of Article 35 of Directive 78/660/EEC to 
insurance undertakings shall be subject to the following 
modifications: 
(a) that Article shall apply to assets shown under B, C and 
F.l of Article 5 of this Directive; 
(b) paragraph 1 (c) (aa) shall apply to assets shown under 
C.II, 111, IV, D and F.III of Article 5 of this Directive. 
Article 48 
Article 38 of Directive 78/660/EEC shall apply to assets 
shown under F.l in Article 5 of this Directive. 
Article 49 
Article 39 of Directive 78/660/EEC shall apply to assets 
shown under E.l, 11 and HI and F.II of Article 5 of this 
Directive. 
Unchanged 
In non-life insurance the amount of deferred acquisition 
costs shall be established on a basis consistent with that 
followed for unearned premiums. 
8. 2. 90 Official Journal of the European Communities No C 30/81 
In life insurance the calculation of the amount of 
acquisitions costs to be deferred may form part of the 
actuarial calculation referred to in Article 55. 
Article 51 Unchanged 
Subject to Article 42, debt securities included under 
Article 5, 'Assets' items C.II and III, shall be shown in the 
balance sheet or purchase price. The Member States may, 
however, permit or require debt securities to be shown in 
the balance sheet at the amount repayable at maturity. 
Where the purchase price of such debt securities exceeds the 
amount repayable at maturity, the amount of the difference 
must be charged to the profit and loss account. The amount 
of the difference may however be written off in instalments 
so that it is completely written off no later than the time of 
repayment of the debt securities. The difference must be 
shown separately in the balance sheet or in the notes on the 
accounts. 
Where the purchase price of such debt securities is less than 
the amount repayable at maturity, the Member States may 
permit or require the amount of the difference to be 
released to income in instalments during the period 
remaining until repayment. The difference must be shown 
separately in the balance sheet or in the notes on the 
accounts. 
Article 52 Article 52 
The amount of technical provisions shall be such as to 
ensure that all liabilities arising out of insurance contracts 
can be met by the insurance undertaking. 1. The amount of technical provisions shall be such as to 
ensure that all liabilities arising out of insurance contracts 
can be met by the insurance undertaking. 
2. For the valuation of technical provisions, the method 
of the weighted average or other comparable methods may 
be used. 
Article 53 Unchanged 
The provision for unearned premiums shall be computed 
for each individual contract and pro rata temporis by 
reference to the proportion of the period covered by the 
contract which extends over a period following the end of 
the financial year. Member States may permit the use of 
flat-rate methods where they are likely to give ap­
proximately the same results as the individual calculations. 
If the nature of risks is such that the pro rata temporis 
method does not reflect the expected risk experience, 
appropriate adjustments shall be made. 
No C 30/82 Official Journal of the European Communities 8. 2. 90 
Article 54 
The provision for unexpired risks shall be computed on the 
basis of the probable claims arising from events after the 
end of the financial year from contracts concluded before 
the date, in so far as they exceed the provision for unearned 
premiums. 
Article 55 
The life insurance provision shall be computed separately 
for each insurance contract. Approximate methods may 
however be used where they are likely to give ap­
proximately the same results as the individual calculations. 
A computation must be made annually under the 
responsibility of an actuary on the basis of recognized 
actuarial methods. A summary of the principal assump­
tions must be disclosed in the notes on the accounts. 
Article 56 
1. The provisions for claims outstanding shall in 
principle be calculated case by case, but statistical methods 
may be used if they result in an adequate provision having 
regard to the nature of the risks. For the calculation of 
claims incurred but not reported, regard shall be had to 
past experience and all other relevant factors. 
2. External and internal direct and indirect claims 
settlement costs shall be taken into account when 
calculating the provision. 
3. Where in calculating the provision account is taken of 
estimated amounts receivable as a result of obtaining the 
legal ownership of insured property or acquiring the rights 
of the policy holder against third parties in connection with 
the settlement of a claim (salvage and subrogation), a 
prudent basis shall be adopted. Where such amounts are 
material they shall be disclosed in the notes on the 
accounts. Unchanged 
Article 55 
1. The life insurance provision shall be computed 
separately for each insurance contract. Approximate 
methods may however be used where they are likely to give 
approximately the same result as the individual calcu­
lations. A summary of the principal assumptions must be 
disclosed in the notes on the accounts. 
2. A computation must be made annually by an external 
actuary or one employed by the reporting insurance 
company recognized as such by virtue of Directive 89/48/ 
EEC C1) on the recognition of higher-education diplomas 
on the basis of recognized actuarial methods. 
Article 56 
Unchanged 
Unchanged 
Unchanged 
(!) OJ No L 19, 24. 1. 1989, p.16. 
8. 2. 90 Official Journal of the European Communities No C 30/83 
4. Where in non-life insurance benefits resulting from a 
claim have to be paid in the form of an annuity, the 
amounts to be provided for this purpose shall be calculated 
actuarially and included in the provision for claims 
outstanding. 
5. Where, apart from cases in which the benefits have to 
be calculated actuarially, a deduction is exceptionally made 
in respect of investment income which may be attributable 
to the provisions for particular claims because of the 
expected delay in settlement, such deductions shall be 
calculated on an actuarial basis. Where such discounting is 
adopted it must be disclosed in the notes on the accounts 
together with an explanation of the reasons for it and a 
statement of its effects on the assets, liabilities, financial 
position and profit or loss. 
Implicit discounting, whether resulting from the placing of 
a present-day value on a provision for an outstanding claim 
which is expected to be settled later at a higher figure, or 
otherwise brought about, is not permissible. 4. Where in non-life insurance benefits resulting from a 
claim have to be paid in the form of an annuity, the 
amounts provided for this purpose shall be calculated 
actuarially under the responsibility of an actuary recog­
nized as such by virtue of Directive 89/48/EEC and 
included in the provision for claims outstanding. 
5. Apart from cases, in which the benefits have to be 
calculated actuarially Member States may authorize that 
for particular claims, because of the expected delay in 
settlement, a deduction should be made in respect of 
investment income. Where such discounting is adopted, it 
must be made on a actuarial basis and disclosed in the notes 
on the accounts together with a explanation of the reasons 
for it and a statement of its effects on the assets, liabilities, 
financial position and profit or loss. 
Implicit discounting, whether resulting from the placing of 
a present-day value on a provision for an outstanding claim 
which is expected to be settled later at a higher figure or 
otherwise brought about, is not permissible. 
Article 57 
Pending further coordination those Member States which 
require the formation of equalization provisions shall 
prescribe the valuation rules to be applied to them. Unchanged 
SECTION 8 
Contents of the notes on the accounts 
Article 58 Article 58 
1. In place of the information required by Article 43 (1) 
(8) of Directive 78/660/EEC, insurance undertakings shall 
indicate, in the notes on the accounts, gross premiums 
within the meaning of Article 30 of this Directive, broken 
down by categories of activity and into geographical 
markets as follows: 1. In place of the information required by Article 43 (1) 
(8) of Directive 78/660/EEC, insurance undertakings shall 
indicate, in the notes on the accounts, gross premiums 
within the meaning of Article 30 of this Directive, broken 
down by categories of activity and into geographical 
markets as follows: 
as regards non-life insurance, firstly as between 
direct insurance and acceptances of reinsurance, 
and then within each of those categories between: 
— accident and health, — as regards direct non-life insurance, firstly as 
between direct insurance and acceptances of 
reinsurance, and then within the former of these 
categories between: 
— accident and health, 
motor, 
marine, aviation and transport, 
fire and other damage to property, 
liability, 
credits and suretyship, — motor, 
— marine, aviation and transport, 
— fire and other damage to property, 
— liability, 
— credits and suretyship, 
No C 30/84 Official Journal of the European Communities 8. 2. 90 
— legal expenses, 
— assistance, 
— miscellaneous, 
except that disclosure under any of these headings is 
not necessary if it accounts for less than 10 % of the 
non-life gross premiums in direct insurance or in 
reinsurance respectively; 
— as regards life insurance, firstly as between direct 
insurance and acceptances of reinsurance, if such 
acceptances amount to at least 10 % of total life 
insurance gross premiums, and then within each of 
those categories to indicate: 
— periodic premiums, 
— single premiums, including annuity considerations, 
— premiums under group contracts, 
— premiums for contracts under which the policy 
holders bear the investment risk, 
except that disclosure under any of these headings is 
not necessary if it accounts for less than 10 % of the life 
gross premiums in direct insurance or in reinsurance 
respectively; 
— as regards both non-life and life insurance, the total 
gross premiums resulting from contracts concluded 
by the insurance undertaking in each Member State 
or other country in which it has an establishment 
(head office, branch or agency), except that such 
disclosure is not necessary where the figure for any 
particular Member State or other country accounts 
for less than 5 % of the total gross premiums. 
2. The reference in Article 43 (1) (10) of Directive 78/660/ 
EEC to Articles 31 and 34 to 42 thereof shall be construed 
as a reference to those Articles as modified for the purposes 
of their application to insurance undertakings by the 
provisions of this Directive. 
3. Insurance undertakings shall indicate, in the notes on 
the accounts, assets shown respectively under items C.III.l 
(shares) and CHI.2 (debt securities) of Article 5 broken 
down between quoted and unquoted investments. — legal expenses, 
— assistance, 
— miscellaneous, 
except that disclosure under any of these headings is 
not necessary if it accounts for less than 10 % of the 
non-life gross premiums in direct insurance or in 
reinsurance respectively; 
— as regards life insurance, firstly as between direct 
insurance and acceptances of reinsurance, if such 
acceptances amount to at least 10 % of total life 
insurance gross premiums, and then within the 
former of those categories to indicate: 
— periodic premiums, 
— single premiums, including annuity considerations, 
— premiums under group contracts, 
— premiums for contracts under which the policy 
holders bear the investment risk, 
except that disclosure under any of these headings is 
not necessary if it accounts for less than 10 % of the life 
gross premiums in direct insurance or in reinsurance 
respectively; 
— as regards both non-life and life insurance, the total 
gross premiums resulting from contracts concluded 
by the insurance undertaking in each Member State 
or other country in which it has an establishment 
(head office, branch or agency), except that such 
disclosure is not necessary where the figure for any 
particular Member States or other country accounts 
for less than 5 % of the total gross premiums. For 
reinsurance acceptances, this breakdown shall be 
undertaken on the basis of the ceding undertaking's 
head office. 
2. With regard to reinsurance acceptances, the break­
down of gross premiums per category in accordance with 
paragraph 1 shall be undertaken separately for non-life 
insurance and for life insurance when the undertaking 
operates in both categories but must establish only one 
single technical account. 
3. The reference in Article 43 (1) and (10) of Directive 78/ 
660/EEC to Articles 31 and 34 to 42 thereof shall be 
construed as a reference to those amended Articles for the 
purposes of their application to insurance undertakings by 
this Directive. 
8. 2. 90 Official Journal of the European Communities No C 30/85 
SECTION 9 
Provisions relating to consolidated accounts 
Article 59 Article 59 
1. Insurance undertakings shall draw up consolidated 
accounts and a consolidated annual report in accordance 
with Directive 83/349/EEC, in so far as this section does 
not provide otherwise. Unchanged 
2. In so far as a Member State does not make use of 
Article 5 of Directive 83/349/EEC, paragraph 1 shall also 
apply to parent undertakings the sole object of which is to 
acquire holdings and turn them to profit, where those 
subsidiary undertakings are either exclusively or mainly 
insurance undertakings. 2. In so far as a Member State does not make use of 
Article 5 of Directive 83/349/EEC, paragraph 1 shall also 
apply to parent undertakings, the sole and essential object 
of which is to acquire holdings and turn them to profit 
where those subsidiary undertakings are either exclusively 
or mainly insurance undertakings. 
Article 60 Article 60 
Directive 83/349/EEC shall apply subject to the following 
provisions: Directive 83/349/EEC shall apply subject to the following 
provisions: 
1. Articles 4, 6, 15 and 40 shall not apply; 1. Articles 4, 6, 15 and 40 shall not apply; 
2. The information referred to in the first two indents of 
Article 9 (2), namely: 2. The information referred to in the first two indents of 
Article 9 (2), namely: 
— the amount of the fixed assets, and — the amount of the fixed assets, and 
— net turnover — net turnover 
shall be replaced by 'Gross premiums written' as 
defined in Article 30 of this Directive. shall be replaced by 'Gross premiums written' as 
defined in Article 30 of this Directive. 
3. For the purposes of the layout of consolidated 
accounts, the reference in Article 17 to Articles 9 and 
10 (balance sheet) and 23 to 26 (profit and loss account) 
of Directive 78/660/EEC shall be deemed to be a 
reference to Articles 5 (balance sheet) and 29 (profit 
and loss account) of this Directive. Articles 4, 7 to 27, 
28 and 30 to 39 of this Directive shall also apply. 3. Article 18 is applicable except that in the consolidated 
accounts technical provisions need not be set up where 
such provisions are not set up under the legislation 
applicable to the subsidiary. 
Exceptions from the balance sheet and valuation 
methods applicable to the consolidated accounts are to 
be disclosed and explained in the notes on the 
consolidated accounts. 
No C 30/86 Official Journal of the European Communities 8. 2. 90 
For the purposes of valuing assets and liabilities to be 
included in consolidated accounts, the reference in 
Articles 29 and 33 to Articles 31 to 42 and 60 of 
Directive 78/660/EEC shall be deemed to be a reference 
to those Articles as amended in their application by 
Articles 40 to 57 of this Directive. 4. For the purposes of the layout of consolidated 
accounts, the reference in Article 17 to Articles 9 and 
10 (balance sheet) and 23 to 26 (profit and loss account) 
of Directive 78/660/EEC shall be deemed to be a 
reference to Articles 5 (balance sheet) and 29 (profit 
and loss account) of this Directive. Articles 4, 7 to 27, 
28 and 30 to 39 of this Directive shall also apply. 
Article 34 shall apply in respect of the contents of the 
notes on consolidated accounts, subject to Article 58 of 
this Directive. Article 26 (1) (b) shall not apply to the consolidated 
accounts where the underlying transaction has been 
concluded according to normal market conditions and 
the income is allocated to the provision for bonuses and 
rebates; this does not apply to transactions relating to 
reinsurance. Exceptions to the principle of income and 
expenditure consolidation are to be disclosed in the 
notes and are to be explained where there is a material 
effect on the assets, liabilities, financial position and 
profit and loss of all the undertakings included in the 
consolidation. 
6. Where a reinsurance undertaking is included in the 
consolidation and because of that fact there is a period 
of more than three months between the consolidated 
balance sheet date and the balance sheet date of other 
undertakings, Article 27 (3) shall apply except that in 
this case the balance sheet date of an undertaking 
included in the consolidation shall not precede the 
consolidated balance sheet date by more than six 
months. 
7. For the purposes of valuing assets and liabilities to be 
included in consolidated accounts, the reference in 
Articles 29 and 33 to Articles 31 to 42 and 60 of 
Directive 78/660/EEC shall be deemed to be a reference 
to those Articles as amended in their application by 
Articles 40 to 57 of this Directive. 
Notwithstanding Article 29, values attributed to items 
listed under liabilities heading C of Article 5 and 
calculated on calculation bases differing from those 
used for the consolidation can be maintained; the use 
of this provision shall be disclosed in the notes on the 
consolidated accounts. 
8. Article 34 shall apply in respect of the contents of the 
notes on consolidated accounts, subject to Article 58 of 
this Directive. 
8. 2. 90 Official Journal of the European Communities No C 30/87 
SECTION 10 
Publication 
Article 61 Unchanged 
1. The duly approved annual accounts of insurance 
undertakings, together with the annual reports and the 
opinion of the persons responsible for auditing the 
accounts shall be published as laid down by the laws of 
each Member State in accordance with Article 3 of First 
Council Directive 68/151/EEC of 9 March 1968 on 
coordination of safeguards which for the protection of the 
interests of members and others, are required by Member 
States of companies within the meaning of the second 
paragraph of Article 58 of the Treaty, with a view to 
making such safeguards equivalent throughout the Com­
munity (1). 
The laws of a Member State may, however, permit the 
annual report not to be published as stipulated above. In 
that case, it shall be made available to the public at the 
company's registered office in the Member State con­
cerned. It must be possible to obtain a copy of all or part of 
any such report upon request. The price of such a copy 
must not exceed its administrative cost. 
2. Paragraph 1 shall also apply to the duly approved 
consolidated accounts, the consolidated annual reports and 
the opinions submitted by the persons responsible for 
auditing the accounts. 
3. Where an insurance undertaking which has drawn up 
annual accounts or consolidated accounts is not established 
as one of the types of company listed in Article 1 (1) of 
Directive 78/660/EEC and is not required by its national 
law to publish the documents referred to in paragraphs 1 
and 2 as prescribed in Article 3 of Directive 68/151/EEC, it 
must at least make them available to the public at its 
registered office. It must be possible to obtain copies of 
such documents on request. The price of such copies must 
not exceed their administrative cost. 
4. Member States shall provide for appropriate sanctions 
for failure to comply with the publication rules laid down 
in this Article. 
(!) OJ No L 65, 14. 3. 1968, p. 8. 
No C 30/88 Official Journal of the European Communities 8. 2. 90 
SECTION 11 
Final provisions 
Article 62 
The Contact Committee established in accordance with 
Article 52 of Directive 78/660/EEC shall, when constituted 
appropriately, also have the following functions: 
(a) to facilitate, without prejudice to Articles 169 and 170 
of the Treaty, harmonized application of this Directive 
through regular meetings dealing in particular with 
practical problems arising in connection with its 
application; 
(b) to advise the Commission, if necessary, on additions or 
amendments to this Directive. 
Article 63 
1. Member States shall bring into force the laws, 
regulations and administrative provisions necessary for 
them to comply with this Directive before 1 January ... 
They shall forthwith inform the Commission thereof. 
2. A Member State may provide that the provisions 
referred to in paragraph 1 above shall first apply to annual 
accounts and consolidated accounts for financial years 
beginning on 1 January ... or during the calendar year ... 
3. Member States shall ensure that they communicate to 
the Commission the texts of the main provisions of 
national law which they adopt in the field covered by this 
Directive. 
Article 64 Unchanged 
Unchanged 
Unchanged 
This Directive is addressed to the Member States.