1
Application
1.1
Unless otherwise stated, this Part applies to:
- (1) a UK Solvency II firm;
- (2) in accordance with Insurance General Application 3, the Society; and
- (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) assets at the amount for which they could be exchanged between knowledgeable willing parties in an arm’s length transaction; and
- (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