Regulatory Alerts2014-07-25
Added · Updated
Solvency II: Balance sheet
Insurers must value assets and liabilities on the balance sheet based on their economic value, defined as the price an independent party would pay or receive. Technical provisions are calculated as a best estimate plus a risk margin, while other balance sheet items generally follow IFRS valuation rules to ensure an economic valuation. This Solvency II balance sheet differs from the corporate balance sheet prepared under IFRS or the Dutch Civil Code, and insurers are required to disclose these differences annually in their report on solvency and financial position.
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