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Q&A and Good practices on the role of deferred taxes (DTA, DTL and LAC DT) in Solvency II



How does an insurer value deferred tax assets and liabilities (DTA and DTL) on the balance sheet and how does an insurer determine the loss-absorbing capacity of deferred taxes (LAC DT)?

Published: 08 December 2020


Deferred taxes can have a material impact on the financial position of insurers. For example, they may result in a higher or lower level of own funds and may also lead to a lower Solvency II capital requirement. Enclosed Q&A describes the relevant Solvency II regulations for deferred taxes and the way in which DNB assesses this. It also addresses the risk management and capital management requirements set by the Solvency II regulations in relation to deferred taxes.

Gerelateerde wet- en regelgeving

  • Commission Delegated Regulation Solvency II (EU) 2019/981
  • Commission Delegated Regulation Solvency II (EU) 2015/35
  • Guidelines on recognition and valuation of assets and liabilities other than technical provisions
  • Guidelines on loss-absorbing capacity of technical provisions and deferred taxes

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