The valuation addresses recognition, derecognition and measurement of assets and liabilities.​

The valuation of assets and liabilities is undertaken on consistent bases.

The valuation of assets and liabilities is undertaken in a reliable, decision useful and transparent manner.

The valuation of assets and liabilities is an economic valuation.

An economic valuation of assets and liabilities reflects the risk-adjusted present values of their cash flows.

The value of technical provisions and other liabilities does not reflect the insurer’s own credit standing

The valuation of technical provisions exceeds the Current Estimate by a margin (Margin over the Current Estimate or MOCE).

The Current Estimate reflects the expected present value of all relevant future cash flows that arise in fulfilling insurance obligations, using unbiased, current assumptions.

The MOCE reflects the inherent uncertainty related to all relevant future cash flows that arise in fulfilling insurance obligations over the full time horizon thereof.

The valuation of technical provisions allows for the time value of money. The supervisor establishes criteria for the determination of appropriate rates to be used in the discounting of technical provisions.

The supervisor requires the valuation of technical provisions to make appropriate allowance for embedded options and guarantees.