(1) Unless provided to the contrary, an insurance undertaking or reinsurance undertaking shall value assets and liabilities as follows:

(a) assets shall be valued at the amount for which they could be exchanged between knowledgeable and willing parties in an arm's length transaction;

(b) liabilities shall be valued at the amount for which they could be transferred, or settled, between knowledgeable and willing parties in an arm's length transaction.

(2) When valuing liabilities under paragraph (1)(b), no adjustment shall be made to take account of the own credit standing of the undertaking.