Part

Valuation

Printed on: 06/11/2024

Rulebook at: 01/01/2016

Related links

PS2/15 - Solvency II: A new regime for insurers https://www.bankofengland.co.uk/prudential-regulation/publication/2015/solvency-2-a-new-regime-for-insurers
Legislation.gov.uk http://www.legislation.gov.uk/
Eur-Lex http://eur-lex.europa.eu/en/index.htm
SS9/14 - Valuation risk for insurers http://www.bankofengland.co.uk/prudential-regulation/publication/2014/valuation-risk-for-insurers-ss
SS38/15 - Solvency II: consistency of UK generally accepted accounting principles with the Solvency II Directive https://www.bankofengland.co.uk/prudential-regulation/publication/2015/solvency2-consistency-of-uk-generally-accepted-accounting-principles-with-the-solvency2-directive-ss
SS1/20 - Solvency II: Prudent Person Principle https://www.bankofengland.co.uk/prudential-regulation/publication/2020/solvency-ii-prudent-person-principle-ss

Chapters

  • 1 Application
  • 2 Valuation of Assets and Liabilities

1

Application

1.1

Unless otherwise stated, this Part applies to:

  1. (1) a UK Solvency II firm;
  2. (2) in accordance with Insurance General Application 3, the Society; and
  3. (3) in accordance with Insurance General Application 3, managing agents.
  • 01/01/2016

2

Valuation of Assets and Liabilities

2.1

A firm must, except where otherwise provided, value:

  1. (1) assets at the amount for which they could be exchanged between knowledgeable willing parties in an arm’s length transaction; and
  2. (2) liabilities at the amount for which they could be transferred, or settled, between knowledgeable willing parties in an arm’s length transaction.

[Note: Art. 75(1) of the Solvency II Directive]

  • 01/01/2016

2.2

For the purposes of 2.1(2) when valuing liabilities no adjustment must be made to take account of the own credit standing of the firm.

[Note: Art. 75(1) of the Solvency II Directive]

  • 01/01/2016