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)?
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.
Liability-Driven Investment funds (LDI funds) mainly invest in long-term government bonds and long-term interest rate derivatives. The use of these interest rate derivatives exposes LDI funds to liquidity risks in case of large interest rate fluctuations.
Read more Limited liquidity risks in Euro LDI funds
This week, the European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) have published their final reports on greenwashing in the financial sector.
Read more European Supervisory Authorities publish reports on greenwashing in the financial sector
On Tuesday 28th May from 3:00-4:45 PM CET DNB will organize an online information session about fit and proper assessments.
Read more Information session about fit and proper assessments DNB
The rapid development of artificial intelligence (AI) poses challenges for the supervisory work of the AFM and DNB. The supervisory authorities have published a report with criteria and areas of attention for shaping the supervision of AI.
Read more AFM and DNB publish report on the impact of AI on the financial sector and supervision
