N.Y. Comp. Codes R. & Regs. tit. 11 § 78.3

Current through Register Vol. 46, No. 36, September 4, 2024

Section 78.3 - Valuation of a subsidiary which is not an insurer

The stock of any other subsidiary of an insurer which is not itself an insurer shall be valued, subject to the additional provisions in section 78.4 of this Part, on the basis of the greater of:

(a) the value of only such of the assets of such subsidiary as would constitute lawful investments for the insurer if acquired or held directly by the insurer; or

(b) one of the following bases appropriate to each type of subsidiary owned by it, provided, however, that an insurer shall not be required to value the stock of all its subsidiaries on the same basis:

(1) the net worth of the subsidiary determined in accordance with generally accepted accounting principles, as of the end of its most recent fiscal year, provided, subject to section 78.4 of this Part, that the financial statements of the subsidiary for its most recent fiscal year have been audited by an independent public accountant in accordance with generally accepted auditing standards; or

(2) a value equal to the cost of the stock of the subsidiary, provided such value is determined and adjusted to reflect subsequent operating results in accordance with generally accepted accounting principles; or

(3) the market value of the stock of the subsidiary, if the stock is listed on a national securities exchange; or

(4) the value, if any, placed on the stock of such subsidiary by the National Association of Insurance Commissioners; or

(5) any other value which the insurer can substantiate to the satisfaction of the superintendent as being a reasonable value.

N.Y. Comp. Codes R. & Regs. Tit. 11 § 78.3