Asset Value
5. (1) The value of the assets of an insurer, other than a foreign branch insurer, is the amount determined by the formula, A – (B + C + D + E + F) in which, “A” is the sum of, (a) the value of the assets determined in accordance with this Regulation, and (b) the amount the insurer sets out in Column 4 of item 8 in Table 1 to the Schedule; “B” is an amount equal to the sum of, (a) any amounts owing on the calculation date to the insurer by agents or brokers that the insurer invoiced to the agents or brokers at least sixty-five days before the calculation date, (b) any unpaid capital or unpaid premium in respect of subscribed shares of capital stock of the insurer, (c) the book value of automobiles and of office furnishings and equipment other than computer hardware, (d) the book value of any investments that are not authorized by a special or general act to which the insurer is subject, (e) any amount recorded by the insurer as a deferred income tax debit or a prepaid expense, and (f) any amount recorded by the insurer as goodwill, a capitalized leasehold expense or a capitalized development cost; “C” is the amount of the investment valuation reserve; “D” is the deferred policy acquisition expense; “E” is the amount, if any, determined under subsection (3); and “F” is the amount, if any, greater than zero that is determined under subsection (6). R.R.O. 1990, Reg. 665, s. 5 (1). (2) The value of an insurer’s investment in a subsidiary shall be determined using the equity method and not using the consolidated method. R.R.O. 1990, Reg. 665, s. 5 (2). (3) If an insurer has assets receivable or liabilities payable in a currency other than Canadian dollars, the amount for “E” in subsection (1) is determined by the formula, (A – B) – (C – D) in which, “A” is the book value in Canadian dollars of all such assets, excluding those assets included in the calculation of “B” under subsection (1); “B” is the book value in Canadian dollars of all such liabilities; “C” is the Canadian dollar equivalent calculated in accordance with subsection (4) of all such assets, excluding those assets included in the calculation of “B” under subsection (1); and “D” is the Canadian dollar equivalent calculated in accordance with subsection (5) of all such liabilities. R.R.O. 1990, Reg. 665, s. 5 (3). (4) The Canadian dollar equivalent of the assets referred to in the description of “C” in subsection (3) is determined for each asset by multiplying the value of the asset expressed in the foreign currency by the rate of exchange in effect on the calculation date. R.R.O. 1990, Reg. 665, s. 5 (4). (5) The Canadian dollar equivalent of the liabilities referred to in the description of “D” in subsection (3) is determined for each liability by multiplying the value of the liability expressed in the foreign currency by the rate of exchange in effect on the calculation date. R.R.O. 1990, Reg. 665, s. 5 (5). (6) Subject to subsection (7), if the assets of the insurer include an investment in common shares of another corporation that transacts the business of insurance, other than the business of life insurance, the amount for “F” in subsection (1) is determined by the formula, A – (B/C × (D – E) in which, “A” is the book value of the insurer’s investment in the common shares of the investee corporation; “B” is the number of paid-up common shares of the investee corporation owned by the insurer; “C” is the number of paid-up common shares of the investee corporation; “D” is the value of the assets of the investee corporation calculated in accordance with this section; and “E” is the aggregate amount for the investee corporation, calculated in accordance with section 8. R.R.O. 1990, Reg. 665, s. 5 (6). (7) If the insurer has insufficient information to calculate either “D” or “E” in subsection (6), the value for “D” and “E” is zero. R.R.O. 1990, Reg. 665, s. 5 (7).