Portfolio transfer

Key principles, procedure, reference texts and application content

Key principles

  • The voluntary transfer of portfolios of insurance business under the supervision of the ACPR is a procedure that falls outside the scope of ordinary law and is distinct from a contractual portfolio transfer (covered by the Civil Code).
  • Compliance with essential rules:
    • The transfer may not be prejudicial to the interests of the creditors, members, policyholders or beneficiaries of contracts.
    • The transferring undertaking must have an adequate solvency margin in light of the transfer.
  • The transfer may be made by:
    • insurance institutions having their registered offices in France (insurance undertakings, mutual insurers and provident institutions) and potentially having branches in a country that is a party to the agreement on the European Economic Area;
    • French branches of insurance institutions having their registered offices in a country that is a party to the agreement on the European Economic Area;
    • French branches of foreign undertakings having their registered offices in a country that is not part of the European Economic Area.
  • The transfer may be undertaken in favour of:
    • insurance institutions having their registered offices in France (insurance undertakings, mutual insurers and provident institutions) and potentially having branches in a country that is a party to the agreement on the European Economic Area;
    • insurance institutions established in a country that is a party to the agreement on the European Economic Area;
    • branches of foreign (non-EEA) undertakings established in a country that is a party to the agreement on the European Economic Area.

Procedure

  • Given the constraints on reviewing applications and publishing decisions in the Official Journal, applications must be received by the ACPR no later than 31 August.
  • Portfolio transfers by insurance institutions licensed in France:
    • Having checked that the application is complete, the ACPR notifies the transfer request to creditors by publishing a notice in the Official Journal, giving creditors two months to submit their observations.
    • If there are risks or liabilities in other countries that are parties to the agreement on the European Economic Area, before reaching a decision the ACPR gathers opinions from the supervisory authorities of the country or countries where those risks or liabilities are located. If no response is forthcoming within three months, the authorities in question are deemed to have given their approval.
    • Where the transferring undertaking’s registered office is in a country that is a party to the agreement on the European Economic Area, that country’s supervisory authority provides a certificate of solvency confirming that the institution has an adequate solvency margin in light of the transfer.
    • The ACPR’s decision to approve the transfer is published in the Official Journal once the two-month period has elapsed. Once published, the decision is enforceable against third parties.
    • Policyholders have the option of terminating their contracts within a month of the date on which the decision to approve the transfer is published, except in cases of compulsory membership under industry agreements.
  • Portfolio transfers by insurance institutions licensed in a country that is a party to the agreement on the European Economic Area to a transferee institution licensed in France:
    • Insurance institutions having their registered offices in a country that is a party to the EEA agreement may be authorised by their supervisory authority to transfer some or all of their portfolio of contracts taken out in France to an undertaking licensed in France (a French institution or a branch of an undertaking licensed in a country that is not a party to the EEA agreement).
    • The ACPR notifies the transfer request to creditors by publishing a notice in the Official Journal, giving creditors two months to submit their observations.
    • Once this period has elapsed, if the ACPR does not object to the transfer, it notifies its agreement to the supervisory authority of the transferring institution. The date on which the transfer is approved by that supervisory authority is published in a notice in the Official Journal of the French Republic. Once published, this notice is enforceable against third parties.
    • Policyholders have the option of terminating their contracts within a month of the date on which the decision to approve the transfer is published.

Reference texts :

Insurance CodeMutual Insurance CodeSocial Security Code
L 324-1L 212-11L 931-16

Application content

Two copies of the application should be submitted to:

Direction des agréments, des autorisations et de la réglementation (DAAR)
61 rue Taitbout - 75436 Paris Cedex 09

Updated on: 12/19/2017 15:36