- TITLE I > CHAPTER II
Article number: 14
1. Insurance and reinsurance undertakings shall value financial liabilities, as referred to in international accounting standards adopted by the Commission in accordance with Regulation (EC) No 1606/2002, in accordance with Article 9 of this Regulation upon initial recognition. There shall be no subsequent adjustment to take account of the change in own credit standing of the insurance or reinsurance undertaking after initial recognition.
2. Insurance and reinsurance undertakings shall value contingent liabilities that have been recognised in accordance with Article 11. The value of contingent liabilities shall be equal to the expected present value of future cash flows required to settle the contingent liability over the lifetime of that contingent liability, using the basic risk-free interest rate term structure.
RULEBOOK TOPIC: CHAPTER II - Valuation of assets and liabilities
RULEBOOK CATEGORY: DELEGATED REGULATION (EU) 2015/35
Last update on: 03 May 2021