Member States shall ensure that, unless otherwise stated, insurance and reinsurance undertakings value assets and liabilities as follows: assets shall be valued at the amount for which they could be exchanged between knowledgeable willing parties in an arm's‑length transaction; liabilities shall be valued at the amount for which they could be transferred or settled between knowledgeable willing parties in an arm's‑length transaction. When valuing liabilities, no adjustment to take account of the own credit standing of the insurance or reinsurance undertaking shall be made.

The Commission shall adopt delegated acts in accordance with Article 301a to lay down the methods and assumptions to be used in those valuations. EIOPA shall, subject to Article 301b, develop draft regulatory technical standards to ensure consistent harmonisation, specifying (a) the consistency of international accounting standards adopted under Regulation (EC) No 1606/2002 with the valuation approach, (b) methods and assumptions where quoted market prices are unavailable or those accounting standards are inconsistent, and (c) methods and assumptions where delegated acts allow alternative valuation methods; the Commission is empowered to adopt those RTS under Articles 10 to 14 of Regulation (EU) No 1094/2010.