(1) Equalisation provisions are to be formed in order to balance out fluctuations in loss ratios in future years, in particular if,
1. according to the experience gained in the branch of insurance involved, significant fluctuations are likely to occur where annual expenses for claims are concerned,
2. the fluctuations are not balanced out in each case by contributions and if
3. the fluctuations are not covered by re-insurance.
(2) In individual cases where, due to the high risk of loss, an income/expense equalisation for risks of equivalent type cannot be performed on the basis of actuarial principles in the financial year, but rather only in a period that remains uncertain as of the balance sheet date, provisions are to be formed and are to be shown on the balance sheet as a “Similar reserve” in the equalisation provisions.