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RESOLUTION OF BOARD OF THE NATIONAL BANK OF UKRAINE

of June 21, 2024 No. 71

About approval of the Regulations on determination of technique of assessment of assets and liabilities for the purposes of calculation of the regulatory capital of the insurer and modification of the Regulations on establishment of requirements for ensuring solvency and investing activities of the insurer

According to Articles 7, of 15, 55-1, 56, of 61 Law of Ukraine "About the National Bank of Ukraine", article 21 of the Law of Ukraine "About financial services and finance companies", Articles 37, 114 Laws of Ukraine "About insurance", for the purpose of establishment of requirements to assessment of assets and liabilities for the purposes of calculation of the regulatory capital of the insurer Board of the National Bank of Ukraine decide:

1. Approve:

1) Regulations on determination of technique of assessment of assets and liabilities for the purposes of calculation of the regulatory capital of the enclosed insurer;

2) changes in Regulations on establishment of requirements for ensuring solvency and investing activities of the insurer approved by the resolution of Board of the National Bank of Ukraine of December 29, 2023 No. 201, which are applied.

2. To department of methodology of regulation of activities of non-bank financial institutions (Sergey Savchuk) after official publication to inform insurers information on adoption of this resolution.

3. The resolution becomes effective in 30 days from the date of its official publication.

Approved by the Resolution of Board of the National Bank of Ukraine of June 21, 2024 No. 71

Regulations on determination of technique of assessment of assets and liabilities for the purposes of calculation of the regulatory capital of the insurer

1. This Provision is developed according to the laws of Ukraine "About the National Bank of Ukraine", "About financial services and finance companies", "About insurance" (further - the Insurance law), other legal acts of Ukraine concerning regulation of activities of non-bank financial institutions for the purpose of ensuring implementation of requirements for assessment of assets and liabilities of the insurer, except assessment of technical reserves, for the purposes of calculation of the regulatory capital of the insurer for ensuring compliance with solvency by it.

2. The terms and reducings used in this Provision are used in the following values:

1) cost for calculation of the regulating capital - the asset value estimated in cash which would be received for sale of asset or is paid for transfer of the obligation as a result of regular transaction between independent participants of the market for date of assessment taking into account requirements of this provision;

2) the report of the subject of estimative activities (further - the report of SOD) - the report of the subject of estimative activities on assessment of property or the report of the subject of estimative activities for expert money value of the parcel of land;

2-1) control of reliability and completeness of information on cost determination for calculation of the regulatory capital of the real estate unit - check by the National Bank of Ukraine (further - National Bank) reliability and completeness of information of the insurer which moves according to requirements of the legislation of Ukraine, taking into account the value assessment applied by the insurer for calculation of the regulatory capital of the real estate unit according to the report of SOD based on requirements of the legislation of Ukraine concerning property assessment;

2-2) cumulative coupon yield - part of coupon interest income on the bond of the internal or external state loan of Ukraine added from date of issue of such coupon bond (if payment of coupon yield did not happen yet) or payment dates of the last coupon yield on such bond;

3) the OVDP - domestic government bonds of Ukraine;

4) the OVDP - bonds of external state loan of Ukraine;

5) the acceptable assets assets accepted by the insurer for calculation of the regulatory capital according to requirements of the Regulations on establishment of requirements for ensuring solvency and investing activities of the insurer approved by the resolution of Board of the National Bank of Ukraine of December 29, 2023 No. 201 (dalee-Polozheniye on ensuring solvency of the insurer);

6) SOD - the subject of estimative activities.

The term "real estate" is used in the value determined in the Provision by ensuring solvency of the insurer.

The term "market value" is used in the value determined in the national standard No. 1 "General valuation principles of property and property rights" approved by the resolution of the Cabinet of Ministers of Ukraine of September 10, 2003 No. 1440 (with changes).

Other terms which are used in this Provision are used in the values determined by the legislation of Ukraine concerning regulation of the markets of financial services, the capital markets and the organized goods markets and estimative activities.

3. This Provision determines technique of assessment of assets and liabilities of the insurer which according to the Provision on ensuring solvency of the insurer join in calculation of the regulatory capital of the insurer.

Requirements of this provision are not applied to:

1) to assessment of technical reserves of the insurer;

2) to creation of the financial reporting by the insurer according to international accounting standards.

4. The insurer for the purposes of calculation of the regulatory capital of the insurer established by the Provision on ensuring solvency of the insurer applies to real estate units, and also the OVDP and the OVDP which are acceptable assets, assessment performed according to the requirements determined in this Provision.

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