Book III: Companies

The Board of Directors or the Supervisory Board sets the investment policy guidelines at least once a year. In particular, it decides on the procedures for selecting financial intermediaries, on asset-liability management, on asset quality and on transactions in forward financial instruments. For this purpose, it relies on the solvency report referred to in article L. 336-1 which, in a separate section relating to investments, presents the results obtained for…

When an insurance undertaking uses financial futures instruments for the first time, it must inform the Autorité de contrôle prudentiel et de résolution in advance.

The company continuously monitors the transactions mentioned in articles R. 332-45 to R. 332-48. To this end, it keeps a daily record of positions taken for each category of underlying investment, maturity by maturity. The monitoring system must allow : a) An immediate assessment of realisable values ; b) Compliance at all times with the internal limits referred to in Article R. 336-2; c) Control at all times of managers’…

The Board of Directors or Supervisory Board approves the reinsurance policy guidelines at least once a year. A report on the reinsurance policy is submitted to the Board each year. This report describes a) the guidelines adopted by the undertaking in respect of reinsurance cessions, in particular as regards the nature and level of protection sought and the choice of cessionary undertakings ; b) The qualitative and quantitative criteria used…

Each year, in accordance with the procedures defined by the Autorité de contrôle prudentiel et de résolution, undertakings must send the Autorité a detailed annual report on their operations and any statements, tables or documents that enable it to monitor their financial situation, the performance of their operations, the collection of premiums or contributions, the settlement of claims, the valuation and, for the undertakings referred to in 1° and 2°…

Each year, the undertakings referred to in Article L. 310-3-2 carry out a solvency test designed to assess their ability to meet their commitments to policyholders and reinsured undertakings under deteriorated market conditions. The procedures for this test are set by the Autorité de contrôle prudentiel et de résolution.

Where the statements, tables or documents referred to in Article R. 336-6 are based on accounting data, the balances of the accounts used by the company must relate to them, either directly or by aggregation.