CERTYNEX IFRS ACADEMY

Alvéa SA issues insurance contracts. It has also entered into a treaty with a reinsurer that reimburses it for part of the claims of its portfolio. Under the scope of IFRS 17, how should this treaty be analysed from Alvéa's point of view?

It is outside the standard: the standard targets the reinsurer that issues the contract, not the cedant that holds it.

It falls within the standard as a reinsurance contract that the entity holds.

It falls within the standard as an insurance contract issued, since it covers claims of Alvéa's portfolio.

It is outside the standard and follows the rules for derivative financial instruments.