Affiliated Company Valuation | Prudential Regulation Authority Handbook & Rulebook
Prudential Regulation Authority Rulebook

Prudential Regulation Authority Rulebook

Part

Insurance Company – Overall Resources and Valuation

Chapter

Affiliated Company Valuation

Printed on: 30/06/2025

Rulebook at: 06/04/2025


8

Affiliated Company Valuation

8.1

Except where the contrary is expressly stated in this Part, whenever a rule refers to shares held in an affiliated company referred to in 3.4(1) or (3), a firm must value the shares held as the sum of:

  1. (1) the regulatory surplus value of that undertaking; less
  2. (2) the sum of:
    1. (a) the book value of the investments by the firm and its affiliated companies in the tier two capital resources of the undertaking; and
    2. (b) if the undertaking is an insurance undertaking, any restricted assets of the undertaking.
  • 01/01/2016

8.2

A firm must value shares held in an ancillary services undertaking in accordance with 3.1.

  • 01/01/2016