Entire Section

  • PRU 3.4 PRU 3.4 PIN 4 — Statement of Premium Revenue and Reinsurance Expenses

    • Instructional Guidelines

      1. This form is required for each reporting unit in respect of which the Insurer must prepare an Annual Regulatory Return, except for the Global Return of an Insurer that is a Protected Cell Company.
      2. A Protected Cell Company is prevented by COB from carrying on Insurance Business other than through a Cell. Because this form would always be blank for such a company in its Global Return, there is no need for it to submit the form or to complete a Supplementary Note to explain its absence.
      3. An Insurer must record premiums and reinsurance premiums relating to its Insurance Business on this form as follows:
      a. An Insurer that is carrying on General Insurance Business must complete part I of this form.
      b. An Insurer that is carrying on Long-Term Insurance Business must complete part II of this form.
      c. Subject to d. an Insurer that is carrying on Long-Term Insurance Business and General Insurance Business of Class 1 or Class 2 may elect either to record the General Insurance Business in part I of this form, or to include that business in Class I on part II of this form. An Insurer may not, between successive Returns, change its election without the written approval of the DFSA.
      d. A DIFC Incorporated Insurer undertaking Direct Long-Term Insurance business and General Insurance Business of Class 1 or Class 2 that is Direct business must record that General Insurance Business as Direct Long-Term Insurance Business in Class I.
      4. At items 1 to 8 and items 21 to 27, against each Class of Business, and for each type of insurance contract as set out in columns 1 to 4, an Insurer must record its Gross Written Premium for the reporting period in respect of that Class of Business and for that type of insurance contract.
      5. At items 11 to 18 and items 30 to 36, against each Class of Business, and for each type of insurance contract as set out in columns 1 to 4, an Insurer must record the reinsurance premium ceded in respect of each Class of Business and each type of insurance contract. Reinsurance premiums recorded as ceded must be gross of any commissions or brokerage, and must be recognised on a basis consistent with the recognition of Gross Written Premium on this form.
      6. Reinsurance premiums ceded must be analysed between columns 1 and 4 on the basis of the underlying insurance contracts that they are protecting, not on the basis of the reinsurance contracts themselves. Where reinsurance arrangements protect more than one type of business (for example both direct and facultative business) or more than one Class of Business, the Insurer must make a reasonable allocation of the reinsurance premiums between the types or Classes of Business covered.
      7. An Insurer must disclose the aggregate amount of its insurance and reinsurance transactions with its Related parties as follows:
      a. at item 10, the amount of Gross Written Premium accepted from Related parties that has been included in the total at item 9;
      b. at item 20, the amount of reinsurance premium ceded to Related parties that has been included in the total at item 19;
      c. at item 29, the amount of Gross Written Premium accepted from Related parties that has been included in the total at item 28; and
      d. at item 38, the amount of reinsurance premium ceded to Related parties that has been included in the total at item 37.

      Derived from DFSA RM44/2007 (Made 1st June 2007). [VER2/06-07]
      [Amended] DFSA GM2/2007 (Made 5th July 2007). [VER3/08-07]