EIOPA · 919
919
- Regulation
- (EU) No 2015/2450 - templates for the submission of information to the supervisory authorities
- Article
- 35
- Submitted
- 2017-01-11
- Answered
- 2019-09-23
Question
We understand that investment returns are excluded from cash flows. How about investment expenses? Should that be excluded too or included in “future expenses“?
Answer
Investment expenses that relate to the obligations reported should be included in "future expenses". This is because the cash-flows "future benefits" include the part of the investment return that is allocated to policyholders.
In that sense, it is not totally true to say that "investment returns are excluded from cash-flows" because the part that is distributed to policyholders should be reported.
This Q&A is published by European Insurance and Occupational Pensions Authority and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.
Similar Q&As
📋 Track EU financial regulation continuously
Forseti monitors EU financial regulation and delivers personalised alerts anchored to verified official sources.
14-day free trial. No credit card required.