(1) Actuarial provisions are to be formed for liabilities arising under life insurance business and arising under insurance business operated in the manner of life insurance, in the amount of their actuarially computed value, including bonuses already allocated, but to the exception of the bonuses accrued on an interest-bearing basis, after deducting the actuarially computed cash value of future premiums (prospective method). Where it is impossible to identify the value of future liabilities or of future premiums, the computation is to be performed based on the discounted receipts and expenses of the preceding financial years (retrospective method).
(2) In forming the actuarial provisions, interest rate obligations entered into towards insured parties are also to be taken into account insofar as the current or expected returns on the enterprise’s assets do not suffice to cover these liabilities.
(3) In health insurance operated in the manner of life insurance, an ageing reserve is to be formed as actuarial provisions; this also includes amounts already allocated to the provisions from the reserve for premium refunds as well as write-ups serving to form vested rights to reduced premiums in later years. In performing the calculation, the provisions of supervisory law concerning the computation of premiums are to be taken into account.