Subject: TA Request on Insurance Companies' Financial Statements
From: "Volodymyr Kuchyn" <[email-masked]>
To: "Rainer Osanik"
Cc: "RAM Info", "Marika Taal",Худіяш Сергій Володимирович <[email-masked]>,Снігурська Людмила Петрівна <[email-masked]>, "Tetiana Rupcheva" <[email-masked]>, "Liudmyla Labur" <[email-masked]>, "Tetiana Dolinchenko" <[email-masked]>, "Natalia Merzheva" <[email-masked]>
Date: Mon, 3 Mar 2025 09:21:30 +0200

Tähelepanu! Tegemist on välisvõrgust saabunud kirjaga.
Tundmatu saatja korral palume linke ja faile mitte avada.

Dear Mr Osanik,

The National Bank of Ukraine expresses its respect to the Ministry of 
Finance of the Republic of Estonia and refers to your kind technical 
assistance on some issues regarding the implementation of particular 
provisions  Directive 91/674/EEC on Insurance accounts and their application 
by insurance companies operating in Estonia.

In particular, we are working on the implementation of  the CSRD Directive 
(Directive (EU) 2022/2464 of the European Parliament and of the Council of 
14 December 2022 amending Regulation (EU) No 537/2014, Directive 
2004/109/EC, Directive 2006/43/EC and Directive 2013/34/EU as regards 
corporate sustainability reporting).  This Directive amends Directive 
2013/34/EU. Both Directives use an indicator of net turnover for 
classification of undertakings by size. For insurers and banks, net turnover 
should be determined in accordance with the provisions of Council Directive 
91/674/EEC* and Council Directive 86/635/EEC**, respectively (amended point 
5 of article 2 of Directive 2013/34/EU).

Taking into account the previous answer of the  Estonian Financial 
Supervision and Resolution Authority (below), that all financial statements 
of insurers are prepared according to the IFRS, so the Directive 91/674/EEC 
is not applied for the preparation of financial statements, could you please 
clarify whether you have adopted certain provisions of Directive 91/674/EEC 
to calculate the net turnover of an insurer. Or, perhaps, the insurers’ net 
turnover is calculated on the basis of IFRS financial statements. If so, is 
this considered to be an adoption of the Directive 2002/2464?

Also, if available, could you comment how the issue of calculating the ‘net 
turnover’ for banks was resolved, please.

We would be grateful for references to the documents developed to adopt 
Directive 2002/2464 (in the matter of net turnover), if they are publicly 
available.

* Council Directive 91/674/EEC of 19 December 1991 on the annual accounts 
and consolidated accounts of insurance undertakings.

** Council Directive 86/635/EEC of 8 December 1986 on the annual accounts 
and consolidated accounts of banks and other financial institutions.

We look forward to hearing from you and thank you for your cooperation.

Thank you in advance!

With kind regards,

Volodymyr

Glory to Ukraine!

Volodymyr Kuchyn

Head

Office for European and International Relations

International Department

National Bank of Ukraine

Tel   +380442301892

Cell +380503301189

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From: Helen Korju-Kuul <[email-masked] 
<mailto:[email-masked]> >
Sent: Tuesday, February 18, 2025 10:57 AM
To: Снігурська Людмила Петрівна <[email-masked] 
<mailto:[email-masked]> >
Cc: Tetiana Rupcheva <[email-masked] 
<mailto:[email-masked]> >; Tetiana Dolinchenko 
<[email-masked] <mailto:[email-masked]> >; 
Natalia Merzheva <[email-masked] 
<mailto:[email-masked]> >; Сіухіна Катерина Миколаївна 
<[email-masked] <mailto:[email-masked]> >
Subject: RE: TA Request on Insurance Companies' Financial Statements

УВАГА! Цей лист надійшов з зовнішньої адреси, яка не належить Національному 
банку України!

Dear Liudmyla,

Thank you for approaching us. Unfortunately, we are not able to give you 
comprehensive response this time.

CSRD Directive have been implemented in to Estonian legislation throught 
Article 3 point 14 to 17 of Accounting Act English version can be found 
here: https://www.riigiteataja.ee/en/eli/522012025001/consolide. However, 
you are right, the term „turnover“ is not used there. The implementation is 
under the responsibility of our Ministry of Finance. We recommend to turn to 
them in order to gain explanations regarding the Accounting act wording. 
Probably wise thing is to contact their

 <https://www.fin.ee/en/contact>  Financial Information and Intelligence 
Policy Department, which all contacts can be found under Financial and Tax 
policy section.

Best regards,

Helen

Helen Korju-Kuul

Rahvusvahelise koostöö koordinaator | Coordinator of International 
Cooperation

Finantsinspektsioon

+372 6680 573

[email-masked] <mailto:[email-masked]>

www.fi.ee <http://www.fi.ee/>

From: Снігурська Людмила Петрівна <[email-masked] 
<mailto:[email-masked]> >
Sent: teisipäev, 11. veebruar 2025 16:20
To: Helen Korju-Kuul <[email-masked] <mailto:[email-masked]> 
 >
Cc: Tetiana Rupcheva <[email-masked] 
<mailto:[email-masked]> >; Tetiana Dolinchenko 
<[email-masked] <mailto:[email-masked]> >; 
Natalia Merzheva <[email-masked] 
<mailto:[email-masked]> >; Сіухіна Катерина Миколаївна 
<[email-masked] <mailto:[email-masked]> >
Subject: FW: TA Request on Insurance Companies' Financial Statements

Dear Helen,

We are very grateful for the answers you have provided to us. We would also 
like to clarify some questions.

We are interested in the CSRD Directive (Directive (EU) 2022/2464 of the 
European Parliament and of the Council of 14 December 2022 amending 
Regulation (EU) No 537/2014, Directive 2004/109/EC, Directive 2006/43/EC and 
Directive 2013/34/EU as regards corporate sustainability reporting).  This 
Directive amends Directive 2013/34/EU. Both Directives use an indicator of 
net turnover for classification of undertakings by size. For insurers and 
banks, net turnover should be determined in accordance with the provisions 
of Council Directive 91/674/EEC* and Council Directive 86/635/EEC**, 
respectively (amended point 5 of article 2 of Directive 2013/34/EU).

Taking into account your previous answer, that all financial statements of 
insurers are prepared according to the IFRS, so the Directive 91/674/EEC is 
not applied for the preparation of financial statements, could you please 
clarify whether you have adopted certain provisions of Directive 91/674/EEC 
to calculate the net turnover of an insurer.

Or, perhaps, the insurers’ net turnover is calculated on the basis of IFRS 
financial statements. If so, is this considered to be an adoption of the 
Directive 2002/2464?

Also, if available, could you comment how the issue of calculating the ‘net 
turnover’ for banks was resolved, please.

We would be grateful for references to the documents developed to adopt 
Directive 2002/2464 (in the matter of net turnover), if they are publicly 
available.

* Council Directive 91/674/EEC of 19 December 1991 on the annual accounts 
and consolidated accounts of insurance undertakings

** Council Directive 86/635/EEC of 8 December 1986 on the annual accounts 
and consolidated accounts of banks and other financial institutions

Best regards,

Snigurska Liudmyla,

Chief Accountant, Director of Accounting Department

Tel:          +38 (044) 230-17-25

e-mail:  <mailto:[email-masked]> 
[email-masked]

Sincerely yours,

Liudmyla Snihurska

Chief Accountant, Director of the Accounting Department

National Bank of Ukraine

 <https://www.facebook.com/NationalBankOfUkraine?ref_type=bookmark> Facebook 
*  <https://twitter.com/NBUkraine_eng> Twitter * 
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Telegram *  <https://www.linkedin.com/company/national-bank-of-ukraine> 
LinkedIn

From: Volodymyr Kuchyn < <mailto:[email-masked]> 
[email-masked]>
Sent: Thursday, December 19, 2024 5:22 PM
To:  <mailto:[email-masked]> [email-masked]
Cc:  <mailto:[email-masked]> [email-masked]; 
Худіяш Сергій Володимирович < <mailto:[email-masked]> 
[email-masked]>; Снігурська Людмила Петрівна < 
<mailto:[email-masked]> [email-masked]>; 
Tetiana Rupcheva < <mailto:[email-masked]> 
[email-masked]>; Tetiana Dolinchenko < 
<mailto:[email-masked]> [email-masked]>; 
Ковальова Оксана Павлівна < <mailto:[email-masked]> 
[email-masked]>; Natalia Merzheva < 
<mailto:[email-masked]> [email-masked]>; Iryna 
Kopelets < <mailto:[email-masked]> [email-masked]>
Subject: RE: TA Request on Insurance Companies' Financial Statements

Dear Helen,

Please accept our great gratitude for your prompt reply and technical 
assistance. We highly appreciate your consultation and provided information 
will be  useful  to us during our screening process and negotiation on the 
Ukrainian way to the EU membership.

I would like to introduce Ms Snihurska (in cc) 
<mailto:[email-masked]%20–> [email-masked] – 
NBU Chief Accountant, Director of the Accounting Department who will return 
to you directly in case of additional questions.

Thank you for your collaboration! Looking forward to further fruitful 
bilateral interactions.

Sincerely yours,

Volodymyr

Volodymyr Kuchyn

Head

Office for European and International Relations

International Department

National Bank of Ukraine

Tel   +380442301892

Cell +380503301189

 <https://www.facebook.com/NationalBankOfUkraine?ref_type=bookmark> Facebook 
*  <https://twitter.com/NBUkraine_eng> Twitter * 
<https://www.flickr.com/photos/134562672@N08> Flickr * 
<https://www.youtube.com/channel/UCLWsi-3SHrFwwyb0AceOgHQ> Youtube * 
<https://www.instagram.com/national_bank_of_ukraine/> Instagram

Telegram *  <https://www.linkedin.com/company/national-bank-of-ukraine> 
LinkedIn

From: Helen Korju-Kuul < <mailto:[email-masked]> 
[email-masked]>
Sent: Thursday, December 19, 2024 1:00 PM
To: Volodymyr Kuchyn < <mailto:[email-masked]> 
[email-masked]>
Cc: Худіяш Сергій Володимирович < <mailto:[email-masked]> 
[email-masked]>; Tetiana Rupcheva < 
<mailto:[email-masked]> [email-masked]>; Tetiana 
Dolinchenko < <mailto:[email-masked]> 
[email-masked]>; Ковальова Оксана Павлівна < 
<mailto:[email-masked]> [email-masked]>; Natalia 
Merzheva < <mailto:[email-masked]> 
[email-masked]>; Iryna Kopelets < 
<mailto:[email-masked]> [email-masked]>
Subject: RE: TA Request on Insurance Companies' Financial Statements

УВАГА! Цей лист надійшов з зовнішньої адреси, яка не належить Національному 
банку України!

Dear Mr Kuchyn,

Thank you for approaching us. I am writing in response to your letter of 
December 4th.  Please find the answers to your questions below.

Questions 1-3

According to the Estonian Accounting Act, all insurance undertakings must 
comply with the international financial reporting standards adopted by the 
European Commission pursuant to the procedure provided in Regulation (EC) No 
1606/2002 of the European Parliament and of the Council on the application 
of international accounting standards (IFRS). IFRS should be followed in 
both consolidated and separate financial statements. For the insurance 
undertakings Directive 91/674 and local financial reporting framework are 
not applicable. Only one set of financial statements is required in Estonia.

The requirements of Directive 2013/34 have been transposed into the Estonian 
Accounting Act. Among other things, there are requirements for the annual 
report of the consolidation group as well as exemptions from the obligation 
to prepare the annual report of the consolidation group.

Question 4

The Regulation 1606/2002 is applicable to those companies with securities 
listed on a regulated market in the EU. Please note that in Estonia there 
are no insurance undertakings whose securities are admitted to trading on a 
regulated market in Estonia or other EU member states.

According to the Regulation 2019/815 (ESEF Regulation), listed companies are 
required to prepare their consolidated annual financial reports in European 
Single Electronic Format (ESEF) and mark up IFRS consolidated financial 
statements according to the ESEF taxonomy which is basically IFRS taxonomy.

In Estonia, listed companies must make their annual reports available via 
market news to the stock exchange here 
<https://www.nasdaqbaltic.com/statistics/en/news> 
https://www.nasdaqbaltic.com/statistics/en/news and simultaneously submit to 
Estonian Financial Supervision and Resolution Authority 
(Finantsinspektsioon) via Estonia’s OAM here 
<https://oam.fi.ee/en/borsiteated> https://oam.fi.ee/en/borsiteated to be 
stored. On the OAM webpage, anyone can choose category “Annual financial 
report” to access market announcements containing the annual financial 
reports in ESEF.

More information about transparency requirements for listed companies in the 
EU is available here: 
<https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/company-reporting-and-auditing/company-reporting/transparency-requirements-listed-companies_en> 
https://finance.ec.europa.eu/capital-markets-union-and-financial-markets/company-reporting-and-auditing/company-reporting/transparency-requirements-listed-companies_en

Question 5

According to the Insurance Activities Act insurance undertaking is required 
to disclose the annual report, the proposal for and the resolution on the 
distribution of profits or the covering of losses and the sworn auditor's 
report within two weeks after their approval at the general meeting of 
shareholders, but no later than four months after the end of a financial 
year on the website of the insurance undertaking and to make these available 
at the registered office and the place of business of the insurance 
undertaking. In addition, insurance undertaking prepares and disclose the 
interim financial reports regarding 3, 6, 9 and 12 months of the financial 
year within two months after the end of an accounting period.

Annual reports are also electronically submitted to the Commercial Register. 
Reports are available to everyone free of charge here: 
<https://ariregister.rik.ee/eng> https://ariregister.rik.ee/eng (E-Business 
Register).

Question 6

From the financial reports we get a true and fair view of the insurance 
undertakings financial position, economic performance and cash flows.

As the financial reports are publicly available, they are not submitted to 
the Finantsinspektsioon. We use disclosed reports. We only submit insurance 
undertakings regular supervisory reports to EIOPA, we do not submit 
financial reports.

If you would like any further information, please do not hesitate to contact 
us.

With kind regards,

Helen Korju-Kuul

Rahvusvahelise koostöö koordinaator | Coordinator of International 
Cooperation

Finantsinspektsioon

+372 6680 573

 <mailto:[email-masked]> [email-masked]

 <mailto:[email-masked]> [email-masked]

 <http://www.fi.ee/> www.fi.ee

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From: Volodymyr Kuchyn < <mailto:[email-masked]> 
[email-masked]>
Sent: kolmapäev, 4. detsember 2024 12:08
To: Eva Vahur < <mailto:[email-masked]> [email-masked]>
Cc: Худіяш Сергій Володимирович < <mailto:[email-masked]> 
[email-masked]>; Tetiana Rupcheva < 
<mailto:[email-masked]> [email-masked]>; Tetiana 
Dolinchenko < <mailto:[email-masked]> 
[email-masked]>; Ковальова Оксана Павлівна < 
<mailto:[email-masked]> [email-masked]>; Natalia 
Merzheva < <mailto:[email-masked]> 
[email-masked]>; Iryna Kopelets < 
<mailto:[email-masked]> [email-masked]>; 
Finantsinspektsioon < <mailto:[email-masked]> [email-masked]>; Kaisa Gabral < 
<mailto:[email-masked]> [email-masked]>; aruandlus < 
<mailto:[email-masked]> [email-masked]>
Subject: TA Request on Insurance Companies' Financial Statements

Dear Ms Vahur,

The National Bank of Ukraine expresses its respect to the Estonian Financial 
Supervision and Resolution Authority and refers to your kind technical 
assistance on some issues regarding the submission and publication of 
financial statements by insurance companies operating in Estonia due to the 
following related documents:

Regulation 1606/2002 (Regulation (EC) No 1606/2002 of the European 
Parliament and of the Council of 19 July 2002 on the application of 
international accounting standards) requires companies with securities 
listed on a stock exchange of any member state of the European Union to 
prepare their consolidated financial statements in compliance with IFRS 
adopted in accordance with the established in the EU procedure. The 
Regulation also allows Member States to permit or require other companies to 
apply IFRS, adopted in accordance with the procedure established in the EU 
for preparing consolidated financial statements and/or annual financial 
statements.

Directive 91/674 (Council Directive 91/674/EEC of 19 December 1991 on the 
annual accounts and consolidated accounts of insurance undertakings) and 
Directive 2013/34 ( Directive 2013/34/EU of the European Parliament and of 
the Council of 26 June 2013 on the annual financial statements, consolidated 
financial statements and related reports of certain types of undertakings) 
set requirements for the annual financial statements of insurers (Directive 
2013/34 sets requirements only to the extent that the provisions of this 
Directive are not comparable or contrary to the provisions of Directive 
91/674). At the same time, there are no direct exceptions in these 
Directives for the fact that when using IFRS for preparing financial 
statements, it is no need/possible not to apply another generally accepted 
basis for financial statements (i.e., Directive 91/674 and Directive 
2013/34).

Could you kindly provide us with the answers to the following questions:

1. Has Directive 91/674 been implemented in Estonia? If so, to what extent? 
Is there a requirement in place for insurers to comply with IFRS (for 
preparing financial statements) in your country? If yes, does this 
requirement applied to all insurers or for some groups/types of insurers?

2. What financial reporting framework is applied by insurers in Estonia: Is 
it Directive 91/674, IFRS or other framework (or perhaps national 
standards)? Do all the insurers prepare financial statements in accordance 
with the same framework? Or do different groups/types/kinds of insurers 
prepare financial statements according to different standards/requirements 
(e.g., some prepare statements in line with IFRS, while others — in line 
with Directive 91/674)? If so, what is the share of these each group? What 
regulation provides for this requirement?

3. Are insurers, which are required preparing annual consolidated accounts 
in accordance with IFRS adopted according to the procedure established in 
the EU, obligated to apply Directive 91/674 and, to some extent, Directive 
2013/34, for preparing a second set of annual consolidated financial 
statements in addition to the financial statements in line with IFRS? In 
other words, the insurers submit two sets of annual consolidated financial 
statements, regardless of the requirements of Member States. If two sets of 
financial statements are prepared, which of the mentioned is to be 
published/released? Shall both sets be published? If only one set of 
financial statements (in line with IFRS) is prepared, what document relieves 
from preparing financial statements in compliance with said Directives, if 
IFRS are applied?

4. Is an accounting taxonomy applied in the EU for unifying and comparing 
data in financial statements of different companies? Are such financial 
statements publicly available? What framework shall be applied by the 
companies for preparing, submitting, and publishing taxonomy-based financial 
statements (IFRS or the abovementioned Directives)? Which authority is to 
receive these financial statements?

5. Which financial statements shall insurers submit to 
regulatory/supervisory authorities? Please, specify the authorities. Shall 
they submit only regulatory reporting, or both regulatory and financial 
reporting? Shall insurers submit financial statements prepared in line with 
Directive 91/674 to regulators if they are required to prepare financial 
statements in line with IFRS?

6. For what purposes does the national regulator use insurers’ financial 
statements (as themselves)? Does the national regulator submit insurers’ 
financial statements or any information based on insurers’ financial 
statements to any international/supranational regulator (i.e. EIOPA or 
other)? If so, what particular financial statements (based on Directive 
91/674, IFRS or other) are used?

We look forward to hearing from you and thank you for your cooperation.

Thank you in advance!

With kind regards,

Volodymyr

Glory to Ukraine!

Volodymyr Kuchyn

Head

Office for European and International Relations

International Department

National Bank of Ukraine

Tel   +380442301892

Cell +380503301189

 <https://www.facebook.com/NationalBankOfUkraine?ref_type=bookmark> Facebook 
*  <https://twitter.com/NBUkraine_eng> Twitter * 
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