Section 1: Commitments and technical provisions

The technical provisions corresponding to life insurance, marriage and natality insurance and capitalisation operations are as follows: 1° Mathematical provision: difference between the present values of the commitments made by the insurer and those made by the policyholders. For contracts using a survival or mortality table, the amounts of the mathematical provisions must include an estimate of the future management expenses which will be borne by the insurer during the…

The technical provisions referred to in 1° of Article R. 343-1, corresponding to the operations referred to in Articles L. 143-1 of this Code, L. 222-3 of the Mutual Code or L. 932-40 of the Social Security Code, are valued each year by an actuary and reviewed by the actuarial function, which verifies that the provisions comply with the provisions of this Code applicable to them, that they are constituted…

The provision for liquidity risk is established when the investments referred to in Article R. 343-10, with the exception of depreciable securities which the insurance undertaking has the capacity and intention to hold to maturity, are in a situation of overall net unrealised loss. An overall net unrealised loss is recorded when the net book value of these investments is higher than the overall value of these same investments valued…

The charge constituted by the allocation to the provision for liquidity risk mentioned in article R. 343-5 may be deferred under conditions specified by order of the Minister for the Economy. However, the deferral of charges resulting from this spreading may not result in the total charge relating to the provisioning of the overall unrealised loss mentioned in article R. 343-5 for a given financial year being borne over more…