INSTRUCTION OF CENTRAL BANK OF THE RUSSIAN FEDERATION

of March 14, 2018 No. 4736-U

About procedure the Bank of Russia of monitoring of activities of insurers using financial performance (coefficients) characterizing financial position of insurers and their resistance to internal and external factors of risk

This Instruction based on Item 5.1 of article 30 of the Law of the Russian Federation of November 27, 1992 No. 4015-1 "About the organization of insurance case in the Russian Federation" (Sheets of the Congress of People's Deputies of the Russian Federation and the Supreme Council of the Russian Federation, 1993, No. 2, Art. 56; Russian Federation Code, 1998, No. 1, Art. 4; 1999, No. 47, Art. 5622; 2002, No. 12, Art. 1093; No. 18, Art. 1721; 2003, No. 50, Art. 4855, Art. 4858; 2004, No. 30, Art. 3085; 2005, No. 10, Art. 760; No. 30, Art. 3101, Art. 3115; 2007, No. 22, Art. 2563; No. 46, Art. 5552; No. 49, Art. 6048; 2009, No. 44, Art. 5172; 2010, No. 17, Art. 1988; No. 31, Art. 4195; No. 49, Art. 6409; 2011, No. 30, Art. 4584; No. 49, Art. 7040; 2012, No. 53, Art. 7592; 2013, No. 26, Art. 3207; No. 30, Art. 4067; No. 52, Art. 6975; 2014, No. 23, Art. 2934; No. 30, Art. 4224; No. 45, Art. 6154; 2015, No. 10, Art. 1409; No. 27, Art. 3946, Art. 4001; No. 29, Art. 4357, Art. 4385; No. 48, Art. 6715; 2016, №1, of Art. 52; No. 22, Art. 3094; No. 26, Art. 3863, Art. 3891; No. 27, Art. 4225, Art. 4294, Art. 4296; 2017, No. 31, Art. 4754, Art. 4830; 2018, No. 1, the Art. 66) (further - the Law of the Russian Federation "About the organization of insurance case in the Russian Federation") establishes procedure the Bank of Russia of monitoring of activities of insurers using financial performance (coefficients) characterizing financial position of insurers and their resistance to internal and external factors of risk (further - financial performance (coefficients).

Chapter 1. General provisions

1.1. Monitoring of activities of insurers is performed on the basis of the accounting (financial) records represented to the Bank of Russia, the statistical reporting, and also other reporting necessary for control and supervision in the sphere of the insurance activity (further - the reporting according to the procedure of supervision) specified in Item 1 of article 28 of the Law of the Russian Federation "About the organization of insurance case in the Russian Federation", and other information, available the Bank of Russia.

Monitoring of activities of newly created insurers (except for reorganized) is performed from the date of submission to the Bank of Russia of the first annual accounting (financial) accounts and the reporting according to the procedure of supervision of insurers.

1.2. Monitoring of activities of insurers is performed by assessment:

respect of the minimum and threshold values of normative ratio by insurance company of own means (capital) and undertaken obligations, and also requirements to structure of assets in which placement of own means (capital) and means of insurance reserves of the insurers or their part established by the regulation of the Bank of Russia adopted based on Items 2, 4.1 and 4.2 Article 25 and Item 5 of article 26 of the Law of the Russian Federation "About the organization of insurance case in the Russian Federation" (Sheets of the Congress of People's Deputies of the Russian Federation and the Supreme Council of the Russian Federation, 1993, No. 2, Art. 56 is allowed; Russian Federation Code, 1998, No. 1, Art. 4; 2013, No. 30, Art. 4067; 2018, No. 18, Art. 2557; 2019, No. 18, Art. 2212; 2021, No. 27, Art. 5171);

profitability of activities of the insurer;

assets of the insurer;

obligations of the insurer;

general indicators of activities of the insurer.

1.3. The indicator of Pa 2, specified in subitem 2.3.2 of Item 2.3 of this Instruction, is calculated on the basis of the reporting according to the procedure of supervision.

Indicators of Pr 1, specified in subitem 2.2.1 of Item 2.2 of this Instruction, Pr 2, specified in subitem 2.2.2 of Item 2.2 of this Instruction, Pr 3, specified in subitem 2.2.3 of Item 2.2 of this Instruction, Pr 4, specified in subitem 2.2.4 of Item 2.2 of this Instruction, Pr 5, specified in subitem 2.2.5 of Item 2.2 of this Instruction, Pr 6, specified in subitem 2.2.6 of Item 2.2 of this Instruction, Pr 7, specified in subitem 2.2.7 of Item 2.2 of this Instruction, Pr 8, specified in subitem 2.2.8 of Item 2.2 of this Instruction, Pa 1, specified in subitem 2.3.1 of Item 2.3 of this Instruction, Software 1, specified in subitem 2.4.1 of Item 2.4 of this Instruction, Software 2, specified in subitem 2.4.2 of Item 2.4 of this Instruction, On 1, specified in subitem 2.5.1 of Item 2.5 of this Instruction, On 2, specified in subitem 2.5.2 of Item 2.5 of this Instruction, are calculated on the basis of accounting (financial) records.

1.4. Calculation of financial performance (coefficients) is perfromed by the Bank of Russia according to this Instruction at least once a quarter.

Chapter 2. Calculation of financial performance (coefficients)

2.1. Assessment of observance by insurance company of the requirements specified in the paragraph the second Item 1.2 of this Instruction is performed by results of calculation of normative ratio of own means (capital) and undertaken obligations of insurance company according to the procedure established by the regulation of the Bank of Russia adopted based on Item 4.1 of article 25 of the Law of the Russian Federation "About the organization of insurance case in the Russian Federation" and also calculation of the relation of asset cost of insurance company, the assets of insurance company falling under requirements to structure in which placement of own means (capital) of insurance company or their part, by the established regulation of the Bank of Russia adopted based on Item 2 of article 25 of the Law of the Russian Federation "About the organization of insurance case in the Russian Federation" is allowed to asset cost of insurance company.

2.2. Assessment of profitability of activities of the insurer is performed by results of calculation of the following financial performance (coefficients):

unprofitability coefficient - net - reinsurance;

coefficient of acquisition expenses;

coefficient of total and administrative expenses;

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