2019 Universal registration document and annual financial report - BNP PARIBAS 213
4Consolidated finanCial statements for the year ended 31 deCemBer 2019
4
Notes to the financial statements
5.j TECHNICAL RESERVES AND OTHER INSURANCE LIABILITIES
In millions of euros 31 December 2019 31 December 2018
Technical reserves Non-Life insurance contracts 4,768 4,590
Technical reserves Life insurance contracts 154,382 143,671
Insurance contracts 87,352 84,392
Unit-linked contracts 67,030 59,279
Technical liabilities investment contracts 48,179 44,110
Investments contracts with discretionary participation feature 40,723 38,604
Investment contracts without discretionary participation feature 7,456 5,506
Policyholders surplus reserve liability 24,980 17,379
Total technical reserves and liabilities related to insurance and investment contracts 232,309 209,750
Debts arising out of insurance and reinsurance operations 3,464 3,056
Derivative financial instruments 1,164 885
TOTAL TECHNICAL RESERVES AND OTHER INSURANCE LIABILITIES 236,937 213,691
The policyholders surplus reserve arises from the application of shadow accounting. It represents the interest of policyholders within French and Italian life insurance subsidiaries in unrealised gains and losses and impairment losses on assets where the benefit paid under the policy is linked to the return on those assets. It is obtained from stochastic
calculations modelling the unrealised gains and losses attributable to policyholders based on economic scenarios and assumptions as regards rates paid to customers and new business inflows. For France, this resulted in an interest of 90% in 2019, unchanged from 2018.
In millions of euros Year to 31 Dec. 2019 Year to 31 Dec. 2018
Liabilities related to insurance contracts at start of period 209,750 206,970
Additions to insurance contract technical reserves and deposits taken on financial contracts related to life insurance 30,807 20,371
Claims and benefits paid (17,010) (15,493)
Effect of changes in value of admissible investments related to unit-linked contracts 8,381 (5,135)
Effect of movements in exchange rates 311 34
Effect of changes in the scope of consolidation 70 3,003
Liabilities related to insurance contracts at end of period 232,309 209,750
See note 5.i for details of reinsurers share of technical reserves.
5.k CURRENT AND DEFERRED TAXES
In millions of euros 31 December 2019 31 December 2018
Current taxes 1,857 1,958
Deferred taxes(1) 4,956 5,262
Current and deferred tax assets 6,813 7,220
Current taxes(2) 2,103 1,023
Deferred taxes(1) 1,463 1,232
Current and deferred tax liabilities 3,566 2,255
(1) Changes over the period include the effect of IFRS 16 first time adoption (see note 2). (2) Changes over the period include the effect of IFRIC 23 first time adoption (see note 5.p).
