Question ID: 1956
Regulation Reference: (EU) No 2015/35 - supplementing Dir 2009/138/EC - taking up & pursuit of the business of Insurance and Reinsurance (SII)
Topic: Valuation of Assets and Liabilities other than TPs
Article: 75
Status: Final
Date of submission: 17 Aug 2021
Question
If undertaking for leased assets and liabilities can use discounting rate consistent with annex to IFRS 16 regulation described in paragraph 26? (COMMISSION REGULATION (EU) 2017/1986)
EIOPA answer
The market consistent valuation according to Art. 75 of the Solvency II Directive must be ensured, which may be achieved by using the lessee's incremental borrowing rate, depending on the circumstances.