Paragraph 3: Provisions relating to statutory pension increases

Auxiliary accounts are kept in a third section of the accounts of the guarantee fund for compulsory non-life insurance, entitled “Transactions resulting from the extinction of the financing of statutory annuity increases”. For this auxiliary accounting, the following is established a) A section in the income statement ; b) Specific asset and liability accounts in the balance sheet; c) An appendix containing a summary statement of transactions carried out during…

The liabilities of this section comprise, on the one hand, the reserve related to operations resulting from the extinction of the financing of statutory annuity increases and, on the other hand, debts on repayment of statutory annuity increases attributable to insurance bodies. The reserve is called the “special amortisation reserve”. The assets of this section consist of balance sheet assets allocated to the financing of statutory annuity increases and receivables…

The income statement for this section shows in detail the income from the contribution provided for inArticle L. 421-6-1 of the French Insurance Code, the cost of reimbursing statutory annuity increases and the related management and administration expenses. The income from the rights attached to the assets held to represent the fund’s commitments for this section is taken into account in full in this section.

The result of this auxiliary accounting is allocated to the special depreciation reserve when it is in credit. It is deducted from this same reserve when it is in debit, up to the limit of a positive balance in the reserve.