IVASS Regulation 57/2026: Non-Durable Securities Valuation & Reporting Requirements

Italian insurance companies have a new regulatory framework for valuing certain assets, effective immediately upon publication in the Official Gazette. Regulation n. 57, released by IVASS on February 9, 2026, details the implementation of articles 65-67 of Law 199/2025, impacting how non-durable titles are assessed on balance sheets.

New Valuation Flexibility for Insurers

The regulation grants a facoltà – a discretionary power – to insurance companies that do not utilize International Accounting Standards. For the 2025 and 2026 fiscal years, these companies can value titles not intended for long-term holding based on their last approved annual balance sheet value, rather than current market value. An exception exists for permanent losses.

Did You Know? Regulation n. 57 revokes Regulation n. 52/2022, signaling a shift in the approach to asset valuation for Italian insurers.

Reserves and Reporting Requirements

This valuation flexibility isn’t without stipulations. Any difference between the value recorded using the new method and the actual market value must be allocated to a non-disposable reserve of profits, after accounting for applicable taxes. Detailed reporting requirements are also outlined.

Specifically, Article 4 of the regulation requires the company’s administrative body to assess the consistency of these valuations with the company’s commitments and payment deadlines. This assessment must be formalized in a report signed by the heads of Risk Management and the Actuarial Function. The determination of variable compensation for leadership and key personnel will be based on earnings *before* applying this valuation flexibility.

Oversight and Transparency

IVASS, the Italian insurance supervisory authority, is tasked with oversight. Companies must provide IVASS with information regarding both the adoption and cessation of this valuation method. The regulation mandates specific disclosures in the balance sheet notes, half-yearly reports, and interim financial statements regarding the operation of the non-disposable reserve.

Expert Insight: This regulation introduces a degree of flexibility for Italian insurers, potentially allowing them to better reflect the economic realities of their short-term holdings. However, the requirement for a non-disposable reserve demonstrates a commitment to maintaining financial stability and transparency.

The regulation is divided into three titles: general provisions, application procedures for balance sheets and reports, and final provisions including the repeal of the previous regulation (n. 52/2022) and the effective date.

Frequently Asked Questions

What types of companies are affected by this regulation?

The regulation applies to Italian insurance companies that prepare their financial statements in accordance with Legislative Decree 173/1997, as per Article 91, paragraph 2, of the Private Insurance Code.

What is the purpose of the non-disposable reserve?

The non-disposable reserve is intended to offset the difference between the value of titles recorded under the new rules and their actual market value, ensuring financial prudence.

When did this regulation come into effect?

The regulation came into effect the day after its publication in the Official Gazette.

How might Italian insurance companies adapt their financial reporting strategies in light of this new regulation?