Possible investment topics in the Explanatory Report of the Responsible Actuary for the 2024 financial year
Overview
The results report addresses potential content for the lead actuary's explanatory report. This relates to the selection and presentation of potential topics related to capital investments. This is intended to provide a service to the lead actuaries. In order to make the results report available in good time before the explanatory reports are prepared, the presentation of capital market developments only covers the first three quarters of the reporting year. The working group therefore recommends additionally considering materially relevant developments from the last quarter, such as the election results in the USA or the end of the "traffic light" coalition in Germany.
The results report covers both general issues that span the entire fiscal year and current issues that are closely tied to, and possibly limited to, 2024. This generally affects all companies that fall within the scope of the Actuarial Ordinance (AktuarV) and for which an explanatory report must be prepared. According to Section 4, Paragraph 4, No. 4 of the Actuarial Ordinance, the explanatory report must demonstrate that the principle of prudence was also applied in the valuation of the assets used to cover the actuarial reserve.
The working group also considers the topics of this paper relating solely to investments to be relevant for pension and health insurance.
This report is addressed to the members and committees of the German Association of Pension Insurance (DAV) to inform them about the status of the discussion and the findings obtained and does not represent a professionally legitimate position of the DAV.[1]
[1] The proper application of this report requires actuarial expertise. This report is therefore not a substitute for appropriate professional actuarial services. Actuarial decisions affecting personal pension provision and coverage, investments, or business activities should be made exclusively on the basis of the assessment of a qualified DAV actuary.
