Texas Insurance Code

§ 823.302 — BASES FOR DETERMINING VALUATION

IN § 823.302Title 6. ORGANIZATION OF INSURERS AND RELATED ENTITIES · Part B. ORGANIZATION OF REGULATED ENTITIES · Ch. 823. INSURANCE HOLDING COMPANY SYSTEMS · Art. G. VALUATION OF INVESTMENT FOR FINANCIAL STATEMENT

Statute text

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Subject to this subchapter, the valuation of an investment to which this subchapter applies is the greater of:

(1)the net shareholder equity value that the insurer owns in the affiliate adjusted, if the affiliate is a subsidiary, to include the value of only those assets of the subsidiary that would constitute lawful investments for the insurer if the assets were acquired or held directly by the insurer; or

(2)the amount determined using one of the following methods that is applicable for the affiliate in which the investment is made:

(A)the net worth of the affiliate determined at the end of the affiliate's most recent fiscal year in accordance with generally accepted accounting principles and reported in the financial statements of the affiliate for that fiscal year that were audited by an independent certified public accountant in accordance with generally accepted auditing standards;

(B)the value equal to the cost of the stock of the affiliate, determined and adjusted to reflect subsequent operating results in accordance with generally accepted accounting principles;

(C)the market value of the stock of the affiliate, if the stock is listed on a national securities exchange;

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Legislative history

Added by Acts 2001, 77th Leg., ch. 1419, Sec. 1, eff. June 1, 2003.