EIOPA · 2342

Valuation of Assets and Liabilities other than TPs

Name: Valuation of Assets and Liabilities other than TPs: EIOPA Q&A — EU Financial Regulatory Q&A
Creator: European Insurance and Occupational Pensions Authority
License: https://creativecommons.org/licenses/by/4.0/

Regulation: (EU) No 2015/35 - supplementing Dir 2009/138/EC - taking up & pursuit of the business of Insurance and Reinsurance (SII)
Article: 9(1) and 13 of of the Commission Delegated Regulation 2015/35
Topic: Valuation of Assets and Liabilities other than TPs
Submitted: 2021-10-05
Answered: 2023-06-26

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Question

How does one interpret Art.9.1 on the recognition of assets and liabilities in case of a participation which under IAS is consolidated?

Background

Art.13 seems to assume that related undertakings appear as one line on the balance sheet, but in case of a subsidiary IAS foresees consolidation, and according to Art.9.1 it seems that the Solvency II balance sheet then also requires consolidation.

Answer

On the basis of Article 9 (1) of the Commission Delegated Regulation (EU) 2015/35 (DR), assets and liabilities other than technical provisions can only be recognised in the Solvency II balance sheet if they meet the international accounting standards recognition criteria at initial recognition. After initial recognition, related undertaking shall, in the Solvency II balance sheet, appear as one line and be valued in accordance with Article 13 of the DR. For determination of the consolidated data please refer to the Final Report on Public Consultation No. 14/036 on Guidelines on group solvency including the illustration table in Guideline 19.

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