purchases. This could also concern changes of perimeter due to liabilities evolving to annuities stemming from Non-Life contracts (triggering some changes from Non-Life to Life). Accordingly, in case annuities are derecognised from Non-Life to Life, both columns need to be filled in. Foreign exchange variation (R0040/R0180) In this case the foreign exchange variation is actually meant to be applied to contracts which are taken out in currencies different from the balance sheet currency. For the calculation, the cash-flows of these contracts contained in the opening Best Estimate are simply converted due to the exchange variation. Allows the comparison of opening and closing best estimate as if no foreign exchange variation have occurred Allows the comparison of opening and closing best estimate as if no foreign exchange variation have occurred Best Estimate on risks accepted during the period (only for underwriting year) R0050 Expected future cash flows (gross of reinsurance) included in Best Estimate and related to risks accepted during the period Expected future cash flows (gross of reinsurance) related to risks accepted during the period Premium and BE increase due to risks accepted during the period Variation of Best Estimate on risk covered after the period (only for accident year) R0190 Refers to changes in (part of) Premiums Provisions (i.e. in relation to all recognised obligations within the boundary of the contract at the valuation date where the claim has not yet occurred) – see Annex Expected not to be applicable. Part of premiums provisions at Year end related to a coverage period starting after the closing Year end N
2 regarding proposed amendment Variation of Best Estimate on risks covered during the period (only for accident year) R0200 Refers to the following cases: (part of) Premiums Provisions at Year end N-1 which turned to Claims Provisions at year end N because claim has occurred during the period claims provisions related to claims occurred during the period (for which there was no Premiums provisions at year end N-1) Expected not to be applicable. Reflect the increase of Best estimate due to claims occurred during the period. The increase in claim provision would be higher than the decrease of premium provision, e.g. in multiyear contract Variation of Best Estimate due to unwinding of discount rate - risks covered prior to period (R0060/R0210) The concept of unwinding may be illustrated as follows: Calculate the Best Estimate of year N-1 but using the shifted interest rate term structure in order to isolate this strict scope of variation This cell is the difference between the adjusted opening BE and the BE that results from the application of the shifted one year term structure (i.e the one year forward curve). For the cells the forward curve is applied. This cell is the difference between the adjusted opening BE and the BE that results from the application of the shifted one year ahead term structure (i.e the one year forward curve). For the cells R220-R240 the forward curve is applied. Variation of Best Estimate due to year N projected in and out – risks accepted/covered Premiums, claims, and surrenders that were forecasted on the Opening Best Estimate (related to risks accepted/covered prior to period) as to Example 1: claim provision of 100, paid 105 during the year. This row should show -100. R0240
Changes not elsewhere explained (R0110/R0260) Corresponds to other variations in Best Estimate, not captured in previous cells be used for final adjustment that if material need to be justified be used for final adjustment that if material need to be justified The second table of the template reflects the technical flows affecting technical provisions but that are not reflected in the closing best estimate. The amounts should all be reported positive if in line with its nature, e.g. cash-in flows related to premiums as positive and cash-out flows related to claims as positive as well (see also BV146 and BV147). LOG summary Life example/Additonal comment Non-life example/Additonal comment Premiums written during the period (R0310) Amount of premiums written during the period not reflected in the closing best estimate Cash-flows received from premiums Cash-flows received from premiums Claims and Benefits during the period, net of salvages and subrogations Amount of claims and benefits during the period, net of salvages and subrogations, respectively for Life and Non-life not reflected in the closing best estimate. Cash-flows paid regarding claims and benefits Cash-flows paid regarding claims and benefits Expenses (excluding Investment expenses) (R0330) Amount of expenses (excluding investment expenses – which are reported under S.29.02) not reflected in the closing best estimate Cash-flows paid regarding expenses Cash-flows paid regarding expenses Technical related to reinsurance during the period (recoverables received net of premiums paid) Total amount of technical flows related to reinsurance recoverable during the period, i.e. recoverable Cash-flows paid and received regarding reinsurance recoverables Cash-flows paid and received regarding reinsurance recoverables