2018 Registration document and annual fi nancial report - BNP PARIBAS222
4 CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018
4
Notes to the fi nancial statements
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 benefi t 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 infl ows. For France, this resulted in an interest of 90% in 2018, unchanged from 2017.
The change in technical reserves and liabilities related to insurance contracts breaks down as follows:
In millions of euros Year to 31 Dec. 2018 Year to 31 Dec. 2017
Liabilities related to insurance contracts at start of period 206,970 197,250
Additions to insurance contract technical reserves and deposits taken on fi nancial contracts related to life insurance 20,371 23,219
Claims and benefi ts paid (15,493) (16,830)
Effect of changes in value of admissible investments related to unit-linked business (5,135) 3,393
Effect of movements in exchange rates 34 (566)
Effect of changes in the scope of consolidation 3,003 504
Liabilities related to insurance contracts at end of period 209,750 206,970
See note 5.i for details of reinsurers share of technical reserves.
5.k CURRENT AND DEFERRED TAXES
In millions of euros 31 December 2018
IFRS 9 & IFRS 15 1 January 2018
IFRS 9 & IFRS 15
Current taxes 1,958 1,777
Deferred taxes 5,262 5,591
Current and deferred tax assets 7,220 7,368
Current taxes 1,023 887
Deferred taxes 1,232 1,347
Current and deferred tax liabilities 2,255 2,234
Change in deferred tax by nature over the period:
In millions of euros 1 January 2018
Changes recognised in
profi t or loss
Changes recognised in
equity that may be reclassifi ed to profi t or loss
Changes recognised
in equity that will not be
reclassifi ed to profi t or loss
Effects of exchange
rates, consolidation
scope and other
movements 31 December
2018
Financial instruments (886) (94) 505 (60) 17 (518)
Provisions for employee benefi t obligations 986 (96) - (36) (28) 826
Unrealised fi nance lease reserve (395) 6 - - 8 (381)
Credit risk impairment 3,047 42 - - 22 3,111
Tax loss carryforwards 1,638 (324) - - 16 1,330
Other items (146) (46) - - (146) (338)
NET DEFERRED TAXES 4,244 (512) 505 (96) (111) 4,030
Deferred tax assets 5,591 5,262
Deferred tax liabilities (1,347) (1,232)
