Is insurance a liability or an asset?

Section 74 - Insurance Supervision Act (VAG)

Section 74 Valuation of assets and liabilities



(1) 1Insurance companies must compile a comparison of assets and liabilities in accordance with Paragraphs 2 and 3 as well as Sections 75 to 87 for the purpose of determining their own funds (solvency overview). The provisions of this law on own funds and the commercial law obligation to submit accounts remain unaffected.

(2) The assets are valued in the solvency overview with the amount for which they could be exchanged between knowledgeable, willing and mutually independent business partners.

(3) 1The liabilities are valued at the amount at which they could be transferred or settled between knowledgeable, willing and mutually independent business partners. 2A correction of the evaluation in order to take into account the creditworthiness of the insurance company does not take place.



 

Citations from § 74 VAG

 
internal references

§ 212 VAG applicable regulations (from 13.01.2019)
... 57 to 59, 5. of the regulations on financial resources, sections 74 to 124, 125 (1) sentences 2 and 3 and sections 131 and 133, 6. ...
§ 234f VAG general (from 01.02.2019)
... Sections 74 to 88 and 133, 134 paragraphs 4 and 5, Sections 301 and 304 paragraph 1 number 2 and ...
 
Quotation in the following standards

Commercial Code (HGB)
G. v. 05/10/1897 RGBl. P. 219; last amended by Article 7 G. v. May 12, 2021 Federal Law Gazette I p. 990

Audit report regulation (PrüfV)
V. v. 07/19/2017 Federal Law Gazette I p. 2846; last amended by Article 11 G. v. March 19, 2020 Federal Law Gazette I p. 529
Section 9 PrüfV evaluation
... it must be considered whether the evaluation is appropriate taking into account the evaluation principle according to Section 74 of the Insurance Supervision Act. (3) If an economic scenario generator is used to evaluate ...
§ 10 PrüfV Facilitation of the assessment
... contain statements on 1. whether and why the valuation method is in accordance with Section 74 of the Insurance Supervision Act, 2. whether and why the valuation method according to type, scope and ...
 
Quotations in amendment regulations

Law on the Modernization of Insurance Financial Supervision
G. v. April 1, 2015 Federal Law Gazette I p. 434; last amended by Article 3 G. v. December 21, 2015 Federal Law Gazette I p. 2553
Article 2 VAMoG follow-up amendments (from 31.12.2015)
... "The words" with the exception of the provisions of Sections 74 to 87 of the Insurance Supervision Act "are inserted. 5. In § 341m sentence ...

Law implementing Directive (EU) 2016/2341 of the European Parliament and of the Council of 14 December 2016 on the activities and supervision of institutions for occupational retirement provision (IORP) (new version)
G. v. 19.12.2018 Federal Law Gazette I p. 2672
Link to this site: https://www.buzer.de/gesetz/11544/a191808.htm