6. Technical provisions for unit-linked and index-linked life insurance

This item relates to and remaining technical provisions for obligations from life insurance policies where the value or income is determined by investments for which the policyholder bears the risk or for which the benefit is index-linked. The investments in question are collected in asset pools, recognised at their and kept separately from the other investments. As a general rule, the measurement of the provisions corresponds with the item “Unit-linked and index-linked life insurance investments”. The policyholders are entitled to all income from these investments. The unrealised gains and losses from fluctuations in the fair values of the investment pools are thus offset by the appropriate changes in these provisions. The reinsurers’ share corresponds to a liability for deposits in the same amount.

An unearned revenue liability allocated to future year premium shares (such as preliminary fees) is calculated for unit-linked and index-linked life insurance contracts in accordance with 97 and amortised correspondingly to deferred over the contract period.

Technical provisions for unit-linked and index-linked life insurance

In € thousand

31/12/2019

31/12/2018

Gross

4,646,152

4,721,904

Reinsurers’ share

–113

–101

Total

4,646,039

4,721,803

Insurance provision
Provision in the amount of the existing obligation to pay insurance benefits and reimbursements, predominantly in life and health insurance. The provision is determined using actuarial methods as a balance of the present value of future obligations less the present value of future premiums.
Fair value
The fair value is the price that would be collected in an ordinary business transaction between market participants for the sale of an asset or that would be paid for transferring a liability.
FAS
US Financial Accounting Standards that set out the details on US GAAP (Generally Accepted Accounting Principles).
Acquisition costs
The amount paid to acquire an asset in cash or cash equivalents or the fair value of another form of compensation at the time of acquisition.