Subsection 1: General provisions on the valuation of prudential technical provisions

Insurance and reinsurance undertakings establish prudential technical provisions for all their commitments to policyholders, contract beneficiaries and reinsured undertakings. The value of prudential technical provisions, assessed in accordance with Article L. 351-1, corresponds to the current amount that undertakings would have to pay if they immediately transferred their commitments to another entity authorised to conduct insurance or reinsurance operations. Prudential technical provisions are calculated using information provided by the financial…

Insofar as the calculation of prudential technical provisions of insurance and reinsurance undertakings does not comply with the provisions of Article L. 351-1, the Autorité de contrôle prudentiel et de résolution may require such undertakings to increase the amount of such provisions to the level determined pursuant to those provisions.

A decree of the Conseil d’Etat shall specify the conditions of application of this sub-section.