The Insurance Supervision Agency of Montenegro published the annual interest rate used under its rulebook to cap the rate applied in calculating mathematical reserves for life insurance products where the insured assumes the investment risk. The Agency set the Article 9(3)(1) rate at 2.404%. Under the rulebook, the interest rate used in mathematical reserve calculations cannot exceed 60% of the average interest rate at which Montenegro’s government bonds are issued and the insurer’s average return on investments of mathematical reserve assets over the previous three years. The Agency determines and publishes the 60% bond-based component annually, and calculated the 2.404% figure using data on interest rates from bond issuances in the current and previous years, including a EUR 850 million international bond issue on 25 March 2025 and a EUR 49.87 million domestic issuance between 3 and 28 November 2025.
Insurance Supervision Agency of Montenegro 2025-12-25
Insurance Supervision Agency of Montenegro sets 2.404% annual reference interest rate for unit-linked life insurance reserve calculations
The Insurance Supervision Agency of Montenegro set the annual interest rate cap for calculating mathematical reserves on life insurance products where the insured bears investment risk at 2.404% under Article 9(3)(1). The rate equals 60% of the average interest on Montenegro government bonds and insurers’ average returns on mathematical reserve assets over the past three years, using data from recent bond issuances, including a EUR 850 million international bond and a EUR 49.87 million domestic issuance in 2025.