previous
next

(c) INSURANCE ENTERPRISES

In principle, profits are determined from the separate accounts. It may be remembered (see page 60) that these accounts are not required to show profits separately according to the class of contract (life insurance, temporary, mixed, etc.), but only according to the branch of insurance (life, fire). On the other hand, the separate accounts must include: the gross premiums (see note 3 on page 60) collected by the Belgian agencies without deducting premiums surrendered to reinsurance companies; the reserves corresponding to policies concluded by these agencies or contracted in Belgium by agents domiciled abroad; interest on these premiums and reserves; compensation paid by the Belgian agencies; the latters’ general expenses; and, lastly, reinsurance operations relating to policies concluded by the Belgian agents or contracted in Belgium by agents domiciled abroad, etc.

For purposes of uniformity, the Administration has prescribed the production of a standard profit-and-loss account containing all the information required.

In the absence of properly kept accounts, or if such are not produced, the empirical method is employed, with the following minimum profits:

Life insurance: 20 francs per 1,000 francs of paid premiums;

Maritime insurance: 25 francs per 1,000 francs of paid premiums;

Other insurance: 60 francs per 1,000 francs of paid premiums;

The comparative method has not as yet had to be applied.

previous
next