18. 5. 87 Official Journal of the European Communities No C 131/1 
II 
(Preparatory Acts) 
COMMISSION 
Proposal for a Council Directive on the annual accounts and consolidated accounts of 
insurance undertakings 
COM(86) 764 final 
(Submitted by the Commission to the Council on 21 January 1987) 
(87/C 131/01) 
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 proposal from the Commission, 
Having regard to the opinion of the European Parlia­
ment, 
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 compa­
nies or firms within the meaning of the second para­
graph of Article 58 of the Treaty, with a view to making 
such safeguards equivalent throughout the Community; 
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 (1), 
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 subsequent coordination; whereas, in view of 
the importance of insurance undertakings in the Com­
munity, such coordination cannot be delayed any longer 
following implementation of Directive 78/660/EEC; Whereas the Seventh Council Directive 83/349/EEC of 
13 June 1983 based on Article 54 (3) (g) of the Treaty 
on consolidated accounts (2) 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 pro­
visions specific to insurance undertakings in respect of 
consolidated accounts; 
Whereas such coordination is also urgently required 
owing to the Community-wide operations of insurance 
undertakings; 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 there­
fore 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 coordi­
nation of laws, regulations and administrative pro­
visions relating to the taking-up and pursuit of the 
business of direct insurance other than life insurance (3) 
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 (4), both 
(') OJ No L 222, 14. 8. 1978, p. 11. (2) OJNoL 193, 18.7. 1983, p. 1. 
(3) OJ No L 228, 16. 8. 1973, p. 3. 
(4) OJ No L 63, 13. 3. 1979. 
No C 131/2 Official Journal of the European Communities 18. 5. 87 
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; 
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 generally; 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 con­
tained in Directives 78/660/EEC and 83/349/EEC; 
Whereas there are important differences in the structure 
and content of the balance sheets of insurance undertak­
ings in the various Member States; whereas this Direc­
tive must therefore lay down the same structure and 
the same item designations for the balance sheets of all 
insurance undertakings in the Community; 
Whereas, if the annual accounts and consolidated 
accounts are to be comparable, a number of basic 
questions regarding the presentation of certain trans­
actions in the balance sheet must be settled; 
Whereas, in the interests of greater comparability, it is 
also necessary that the content of certain balance sheet 
items be determined precisely; 
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 understand­
ing of the financial situation of insurance undertakings 
it is necessary to disclose the current value of invest­
ments as well as their value based upon the principle 
of purchase price or production costs; 
HAS ADOPTED THIS DIRECTIVE: 
Article 1 
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. 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 consoli­
dated accounts; 
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 cer­
tain 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; 
Whereas for the same reasons, the scope allowed Mem­
ber 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 
undertakings; 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 com­
pany 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 con­
cerning 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, 
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. SECTION 1 
Preliminary provisions and scope 
18. 5. 87 Official Journal of the European Communities No C 131/3 
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. 
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 
associations 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; 
or (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. 
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. 
2. The Commission shall submit to the Council, not 
later than ..., a report on the adaptations made under 
paragraph 1. 
SECTION 2 
General provisions concerning the balance sheet and the profit and loss account 
Article 4 
Article 4 (2) of Directive 78/660/EEC shall not apply to insurance undertakings. 
SECTION 3 
Layout of 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 separately: 
— formation expenses, as defined by national law and in so 
far as national law permits their being shown as an asset 
No C 131/4 Official Journal of the European Communities 18. 5. 87 
(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) 
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 participating 
interests: 
1. Shares in affiliated undertakings 
2. Debt securities issued by, and loans to, affiliated under­
takings 
3. Participating interests 
4. Debt securities issued by, and loans to, undertakings 
with which the insurance undertaking is linked by virtue 
of a participating interest 
III. 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 
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 (Article 9) 
(Article 10) 
(Article 10) 
(Article 11) 
(Article 12) 
(Article 13) 
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 undertaking is 
linked by virtue of a participating interest 
2. Debtors arising out of reinsurance operations, with a separ­
ate indication of amounts owed by: 
(a) affiliated undertakings 
(b) undertakings with which the insurance undertaking 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 undertaking is 
linked by virtue of a participating interest 
18. 5. 87 Official Journal of the European Communities No C 131/5 
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 
F. Cash at bank and in hand (Article 11) 
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 (Article 14) 
(Article 15) 
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 sub­
scribed capital and paid-up capital must be shown separ­
ately) 
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') (Article 16) 
(Article 17) 
B. Subordinated liabilities (Article 18) 
C. Technical provisions 
1. Unearned premiums (and unexpired risks) 
(a) gross amount 
(b) reinsurance amount ( —) (Articles 19 and 20) 
(Articles 21 and 22) 
No C 131/6 Official Journal of the European Communities 
2. Life insurance provisions 
(a) gross amount 
(b) reinsurance amount ( —) 
— showing separately the amounts in respect of contracts 
under which the policy holder 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 taxation 
3. Other provisions 
E. Deposits withheld from reinsurers (Article 27) 
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 undertaking is linked 
by virtue of a participating interest) 
1. Debenture loans, showing convertible loans separately 
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') (Article 23) 
(Article 24) 
(Article 25) 
(Article 26) 
18. 5. 87 Official Journal of the European Communities No C 131/7 
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. 
Article 7 
The provisions of Article 14 of Directive 78/660/EEC shall not apply to those commitments 
which are taken into account in determining the amount of the technical provisions. 
SECTION 4 
Special provisions relating to certain balance sheet items 
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 above-
mentioned Article shall apply to each item of B, C and 
E. 1 under 'Assets' in the layout prescribed in Article 5. 
Assets: item C.III.2 
Debt securities 
1. This item shall comprise negotiable fixed-interest 
debt securities issued by credit institutions, by other 
undertakings 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. 
Article 10 
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. 
Article 11 
Assets: items C.III.5 and F 
Deposits with credit institutions 
Cash at bank and in hand 'Deposits with credit institutions' comprises amounts 
the withdrawal of which is subject to a time restriction, 
whereas sums deposited with no such restriction shall 
appear under assets item F, even if they bear interest. 
Article 12 
Investments for the benefit of life insurance policy hol­
ders who bear the investment risk 
Investments for the benefit of life insurance policy hol­
ders who bear the investment risk shall comprise the 
amount of all investments which the insurance under­
taking holds by virtue of its commitment under life 
insurance contracts the benefits of which are expressed 
by reference to the value of those investments. Pending 
further harmonization, Member States may however 
require or permit insurance undertakings to include 
such investments under the headings where they would 
appear but for the provisions of this Article. Where use 
is made of this option the amount of such investments 
under each of the respective headings shall be separately 
disclosed. 
Article 13 
Assets: item C.VI 
Deposits with cedant undertakings 
In the balance sheet of an undertaking accepting rein­
surance, this item shall comprise amounts deposited 
with, or withheld by, other insurance undertakings 
under insurance contracts. These amounts may not be 
merged with other amounts owed by or to the other 
undertakings in question. 
Securities deposited with cedant undertakings which 
remain the property of the undertaking accepting rein­
surance shall not be shown here but under the appropri­
ate heading for the type of asset in question. , n Assets: item CIV 
Article 9 
No C 131/8 Official Journal of the European Communities 18. 5. 87 
Article 14 
Assets: item G.l 
Accrued interest and rent 
Accrued interest and rent shall comprise those items 
that represent interest and rent that have been earned 
up to the date of the balance sheet but have not yet 
become receivable. 
Article 15 
Assets: item G.2 
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 dis­
closed 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. 
Article 16 
Liabilities: item A.I 
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 proprietors. 
Article 17 
Liabilities: item A.IV 
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 
undertakings 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. 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 'Liabilit­
ies' item B. 
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. 
Article 21 
Liabilities: item C.l 
Unearned premiums 
Unearned premiums shall comprise the amount repre­
senting that part of gross premiums written which is to 
be allocated to a subsequent financial year or sub­
sequent 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. 
Article 22 
Liabilities: item C.6 (or C.l) 
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 
18. 5. 87 Official Journal of the European Communities No C 131/9 
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. 
Article 23 
Liabilities: item C.2 
Life insurance provisions 
The life insurance provisions shall comprise the actuari­
ally estimated value of the liabilities net of future pre­
miums in respect of life direct insurance and reinsurance 
contracts. Negative amounts resulting from the zillmer-
ization of life insurance provisions shall be disclosed in 
accordance with the provisions of Article 15. 
Article 24 
Liabilities: item C.3 
Claims outstanding 
1. The provision for claims outstanding shall be the 
total estimated ultimate cost to the insurance undertak­
ing 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 
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. 
Article 26 
Liabilities: item C.5 
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. 
Article 27 
Liabilities: item E 
Deposits withheld from reinsurers 
In the balance sheet of an undertaking ceding rein­
surance, this item shall comprise amounts deposited by, 
or withheld from, other insurance undertakings under 
reinsurance contracts. These amounts may not be mer­
ged with other amounts owed to or by the other under­
takings 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. 
No C 131/10 Official Journal of the European Communities 18. 5. 87 
SECTION 5 
Layout of the profit and loss account 
Article 28 
1. The Member States shall prescribe the layout provided in Article 29 for the profit and 
loss account. 
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 wich are within the scope of Directive 79/267/EEC and for the corresponding 
classes of reinsurance business. 
Article 29 
Profit and loss account 
I Technical account — Non-life-insurance business 
1. Premiums: 
(a) gross premiums written 
(b) outgoing reinsurance premiums (—) 
(c) change in provision for unearned premiums, net of 
reinsurance (+ or —) 
(d) earned premiums (result of (a), (b) and (c)) 
2. Other technical income 
3. Claims incurred: 
(a) gross claims paid 
(b) amounts recoverable from reinsurers (—) 
(c) change in provision for claims, net of reinsurance (+ 
or-) 
(d) net claims incurred (result of (a), (b), and (c)) 
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) result 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)) (Article 30) 
(Article 31) 
(Article 32) 
(Article 33) 
(Article 34) 
18. 5. 87 Official Journal of the European Communities No C 131/11 
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 technical 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 
C+or-) 
(b) changes in other equalization provisions and reserves 
(+or-) 
(c) result of (a) and (b) 
10. Allocated investment return ( + ) (III.10) 
11. Subtotal (second technical result (III.l) (Article 35) 
(Article 36) 
(Article 37) 
//. Technical account — Life insurance business 
1. Premiums: 
(a) gross premiums written 
(b) outgoing reinsurance premiums (—) 
(c) change in provision for unearned premiums, net of 
reinsurance (+ or —) 
(d) earned premiums (result of (a), (b) and (c)) 
2. Income from participating interests, with a separate indi­
cation of that derived from affiliated undertakings 
3. Income from other investments, with a separate indication 
of that derived from affiliated undertakings: 
(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 
7. Other technical income 
8. Subtotal: total technical income (Article 30) 
(Article 31) 
(Article 32) 
(Article 38) 
(Article 39) 
No C 131/12 Official Journal of the European Communities 
9. Claims incurred: 
(a) gross claims 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 technical charges 
(result of (a), (b), (c) and (d)) 
13. Investment charges: 
(a) charges, including interest, relating to land and build­
ings 
(b) other investment management charges, including 
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) (Article 33) 
(Article 32) 
(Article 34) 
(Article 35) 
(Article 36) 
(Article 38) 
(Article 39) 
(Article 38) 
III. Non-technical account 
1. Result of technical account — non-life-insurance business 
(111) 
18. 5. 87 Official Journal of the European Communities No C 131/13 
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 untertakings 
4. Income from other investments, with a separate indication 
of that derived from affiliated undertakings: 
(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 build­
ings 
(b) other investment management charges, including 
interest 
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 adjustments 
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 
SECTION 6 
Special provision 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 under­
taking, including: 
(a) single premiums, inclusive of annuity consider­
ations; 
No C 131/14 Official Journal of the European Communities 18. 5. 87 
(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 undertak­
ings^ portion of total premiums (excluding pre­
miums to be allocated to coinsurance partners); 
(d) reinsurance premiums in respect of business 
acquired from ceding companies; 
after deduction of cancellations and of taxes and para-
fiscal contributions or levies charged by reference to 
the amount of individual premiums or the volume of 
premiums. 
Article 31 
Non-life technical account item 1.1 (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 rein­
surance contracts entered into by the insurance under­
taking. 
Article 32 
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. 
Article 33 
Non-life technical account: item 1.3 
Life technical account: item II.9 
Claims incurred 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 
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 
Non-life technical account: items 1.5 
Life technical account: item 11.11 
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 pre­
miums, 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. 
Where material, the amount charged for bonuses and 
that charged for rebates shall be distinguished in the 
notes on the accounts. 
Article 35 
Non-life technical account: item 1.6 (a) 
i 
Life technical account: item 11.12 (a) 
Commissions 
18. 5. 87 Official Journal of the European Communities No C 131/15 
Commissions shall comprise all amounts paid or pay­
able 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 deduct­
ed at item 111.10 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 40 
1. Pending further coordination Member States may 
require or permit the application of the following 
methods where, owing to the nature of the class or type 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 invest­
ment 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 invest­
ments 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 allo­
cation 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 prin­
ciple of purchase price or production cost shall be 
shown at items II.6 and 16 only to the extent that 
Article 43 (2) applies. 
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. SECTION 7 
Valuation rules 
No C 131/16 Official Journal of the European Communities 18. 5. 87 
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 obli­
gations. No amount in respect of the contracts in ques­
tion 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 pro­
vision for claims outstanding estimated in the usual 
manner at the end of the year following the underwrit­
ing 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 descrip­
tion of that method is calculated as a particular percent­
age 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. 
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, liabilit­
ies, 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 finan­
cial 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 41 
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 Articles 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 cur­
rent value calculated in accordance with Articles 44 and 
45. 
2. Where in life insurance business the benefits pro­
vided to policy holders and insured parties are related 
to the current value of particular investments or invest­
ments as a whole, those investments shall be shown in 
the balance sheet at current value. 
3. Where the principle of purchase price or pro­
duction 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. 
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. 
Article 43 
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. 
Article 44 
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. 
18. 5. 87 Official Journal of the European Communities No C 131/17 
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. 
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 con­
ditions permit orderly disposal and that a normal per­
iod, having regard to the nature of the property, is 
available for the negotiation of 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 appropri­
ate 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 con­
ditions 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. 
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 con­
strued 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' C.III 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 follow­
ing 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 con­
strued 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. 1, 2 and 
3 and F. 
No C 131/18 Official Journal of the European Communities 18. 5. 87 
Article 50 Article 54 
In non-life insurance fhe amount of deferred acquisition 
costs shall be established on a basis consistent with that 
followed for unearned premiums. 
In life insurance the calculation of the amount of acqui­
sition costs to be deferred may form part of the actuarial 
calculation referred to in Article 55. 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 con­
cluded before the date, in so far as they exceed the 
provision for unearned premiums. 
Article 55 
Article 51 
Subject to Article 42, debt securities included under 
Article 5, 'Assets' items C. II and III, shall be shown in 
the balance sheet at 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 differ­
ence 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. The life insurance provision shall be computed separ­
ately for each insurance contract. Approximate 
methods may however be used where they are likely to 
give approximately 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 assumptions 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 calcu­
lating the provision. 
Article 52 
The amount of technical provisions shall be such as to 
ensure that all liabilities arising out of insurance con­
tracts can be met by the insurance undertaking. 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. 
Article 53 
The provision for unearned premiums shall be comput­
ed 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 approximately 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. 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 deduc­
tion 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 
18. 5. 87 Official Journal of the European Communities No C 131/19 
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. 
SECTION 8 
Contents of the notes on the accounts 
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 pre­
miums within the meaning of Article 30 of this Direc­
tive, 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, 
— motor, 
— marine, aviation and transport, 
— fire and other damage to property, 
— liability, 
— credits and suretyship, 
— 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 consider­
ations, 
— 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 under­
takings 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 C.III.2 (debt securities) of Article 5 
broken down between quoted and unquoted invest­
ments. 
SECTION 9 
Provisions relating to consolidated accounts 
Article 59 
1. Insurance undertakings shall draw up consolidat­
ed accounts and a consolidated annual report in accord­
ance with Directive 83/349/EEC, in so far as this section 
does not provide otherwise. 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, 
No C 131/20 Official Journal of the European Communities 18. 5. 87 
where those subsidiary undertakings are either exclus­
ively or mainly insurance undertakings. 
Article 60 
Directive 83/349/EEC shall apply subject to the follow­
ing provisions: 
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: 
— the amount of the fixed assets, 
and 
— net turnover 
shall be replaced by 'Gross premiums written' as 
defined in Article 30 of this Directive. 
Article 61 
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 Community (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 
concerned. 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 
Article 62 
The Contact Committee established in accordance with 
Article 52 of Directive 78/660/EEC shall, when consti­
tuted appropriately, also have the following functions: 
(!) OJ No L 65, 14. 3. 1968, p. 8. 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. 
4. 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. 
5. Article 34 shall apply in respect of the contents of 
the notes on consolidated accounts, suject to Article 
58 of this Directive. 
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 sanc­
tions for failure to comply with the publication rules 
laid down in this Article. 
(a) to facilitate, without prejudice to Articles 169 and 
170 of the Treaty, harmonized application of this 
Directive through regular meetings dealing in par­
ticular with practical problems arising in connection 
with its application; 
(b) to advise the Commission, if necessary, on additions 
or amendments to this Directive. SECTION 10 
Publication 
SECTION 11 
Final provisions 
18. 5. 87 Official Journal of the European Communities No C 131/21 
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 Janu­
ary ... They shall forthwith inform the Commission 
thereof. 3. Member States shall ensure that they communi­
cate to the Commission the texts of the main provisions 
of national law which they adopt in the field covered 
by this Directive. 
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 ... . Article 64 
This Directive is addressed to the Member States.