Entire Section

  • PIN App10 PIN App10 Reporting to the DFSA

    • PIN A10.1 PIN A10.1 Purpose and general provisions

      • PIN A10.1.1

        This appendix applies to all Insurers.

        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]

      • PIN A10.1.2 PIN A10.1.2

        In this appendix and the forms, unless the term ‘Annual Regulatory Return’ or ‘Quarterly Regulatory Return’ is used, the term ‘Return’ includes both of those Returns.

        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]

        • PIN A10.1.2 Guidance

          1. The form and content of the Returns differs according to the characteristics of the Insurer.
          2. General requirements relating to the recognition and measurement of assets and liabilities are dealt with in PIN chapter 5.
          3. The Returns are provided in PRU.
          4. This appendix sets out some matters relating to content and presentation of the information contained in the Returns. Further guidance in relation to the preparation and submission of the Returns is provided in PRU and the DFSA's electronic prudential reporting system.
          Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]
          [Amended] DFSA RM54/2007 (Made 1st December 2007). [VER9/12-07]

    • PIN A10.2 PIN A10.2 Completion of forms for global, cell, fund and DIFC business reporting units

      • PIN A10.2 Guidance

        Separate Returns are completed for Insurers' entire business, and for those parts of the business that are subject to separate capital adequacy requirements, namely Cells, Long-Term Insurance Funds, and DIFC business. These parts, and the entire business, are described as ‘reporting units’ because a Return is required for each. An Insurer may therefore have to submit more than one set of Returns.

        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]

      • PIN A10.2.1

        A Return must be completed in respect of each of the reporting units set out in this section that applies to the Insurer.

        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]

      • PIN A10.2.2

        There are four types of reporting units in respect of which an Insurer may be required to submit a Return. These are referred to in this appendix and the forms as the global reporting unit, the Cell reporting unit, the fund reporting unit and the DIFC business reporting unit. The Returns in respect of these reporting units are referred to respectively in this appendix and the forms as the Global Return, the Cell Return, the Fund Return and the DIFC Business Return.

        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]
        [Amended] DFSA RM51/2007 (Made 1st November 2007). [VER8/11-07]

      • PIN A10.2.3

        Every Insurer that is required by PIN chapter 6 to complete a Return must complete a Global Return. A Global Return has the following characteristics:

        (a) Subject to (b), a Global Return includes all of the assets, liabilities, equity, revenues and expenses of the Insurer, regardless of the residency status or location of the Insurer, of the customer or of any asset or liability.
        (b) The Global Return of a Protected Cell Company does not include any assets, liabilities, equity, revenues or expenses that are attributable to a Cell.
        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]
        [Amended] DFSA RM54/2007 (Made 1st December 2007). [VER9/12-07]

      • PIN A10.2.4

        Except as provided otherwise in this appendix, an Insurer that is a Protected Cell Company must complete a Cell Return in respect of each Cell that it maintains. A Cell Return includes all of the assets, liabilities, equity, revenues and expenses attributable to the Cell, regardless of the residency status or location of the customer or of any asset or liability. An Insurer to which this Rule applies is not required to complete a Quarterly Regulatory Return in respect of any Cells maintained by it that are Captive Cells.

        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]
        [Amended] DFSA RM54/2007 (Made 1st December 2007). [VER9/12-07]

      • PIN A10.2.5 PIN A10.2.5

        Except as provided otherwise in this appendix, an Insurer that maintains a Long-Term Insurance Fund must complete a Fund Return in respect of each Long-Term Insurance Fund that it maintains. A Fund Return includes all of the assets, liabilities, revenues and expenses attributable to the fund, regardless of the residency status or location of the customer or of any asset or liability. An Insurer to which this Rule applies is not required to complete a Fund Return in the following cases:

        (a) where the Insurer is deemed to constitute a single, Long-Term Insurance Fund, such that the information contained in the Fund Return would be identical to that in the Global Return; and
        (b) where a Cell of the Insurer is deemed to constitute a single, Long-Term Insurance Fund, such that the information contained in the Fund Return would be identical to that in the Cell Return.
        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]
        [Amended] DFSA RM54/2007 (Made 1st December 2007). [VER9/12-07]

        • PIN A10.2.5 Guidance

          PIN A10.2.5 operates to prevent the preparation of duplicate Returns. However, where under this section an Insurer or a Cell is exempt from the requirement to prepare a Quarterly Regulatory Return because of its captive status, the fund Quarterly Regulatory Return would not be identical and must still be prepared.

          Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]

      • PIN A10.2.6 PIN A10.2.6

        An Insurer that is not a DIFC Incorporated Insurer must complete a DIFC Business Return. A DIFC Business Return has the following characteristics:

        (a) it includes only liabilities that are Insurance Liabilities of the Insurer in respect of its DIFC Insurance Business and assets that are associated with those Insurance Liabilities; and
        (b) revenues and expenses must be included only to the extent that they are attributable to the Insurer's DIFC Insurance Business.
        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]

        • PIN A10.2.6 Guidance

          The assets that are associated with Insurance Liabilities normally include only reinsurance and other recoveries in respect of claims, whether or not incurred, included in Insurance Liabilities. The DIFC Business Return does not include assets such as investments, fixed assets, or receivables other than reinsurance recoveries in respect of Insurance Liabilities.

          Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]

    • PIN A10.3 PIN A10.3 Content of returns

      • PIN A10.3.1

        (1) The Annual Regulatory Return and Quarterly Regulatory Return comprise the forms in Table 1 to this Rule, together with the Supplementary Notes pertaining to those forms and the Statement by Directors referred to in PIN Section A10.5.
        (2) In Table 1:
        (a) the column headed 'DIFC Incorporated Insurer' indicates the relevant forms that must be prepared and submitted by an Insurer that is a DIFC Incorporated Insurer; and
        (b) the column headed 'Branch' indicates the relevant forms that must be prepared and submitted by an Insurer that carries on its business through a Branch.
        (3) In Table 1, in the columns headed 'Return':
        (a) the letter Q indicates that the relevant form must be prepared and submitted with the Quarterly Regulatory Return;
        (b) the letter A indicates that the relevant form must be prepared and submitted with the Annual Regulatory Return;
        (c) the letters A and Q together indicate that the relevant form must be prepared and submitted with the Annual Regulatory Return and the Quarterly Regulatory Return; and
        (d) the letters N/A indicate that the form is not applicable to the Insurer.

        Table 1 - Insurer Return Matrix

        Number Name DIFC Incorporated Insurer Branch
            Return Return
        IN10 Statement of Financial Position A/Q N/A
        IN20 Statement of Calculation of Capital Adequacy A/Q N/A
        IN30 Statement of Financial Performance A/Q N/A
        IN40 Statement of Premiums and Reinsurance Expense A/Q A/Q
        IN50 Statement of Claims and Reinsurance and Other Recoveries A/Q A/Q
        IN60 Statement of Movement in Insurance Provisions A/Q A/Q
        IN70 Statement of Investment Income A/Q N/A
        IN80 Statement of Acquisition Expenses A/Q N/A
        IN90 Reconciliation to Financial Statements A/Q N/A
        IN100 Summary Statement of Operations A/Q A/Q
        IN110 Reconciliation of Direct to Total Long-Term Insurance Business A/Q N/A
        IN120 Statement of Direct Long-Term Insurance Business A/Q N/A
        IN130 Statement of Direct Long-Term Insurance Liabilities A/Q N/A
        IN140 Statement of Assets Covering Direct Linked Long-Term Insurance Liabilities A/Q N/A
        IN150 Statement of Assets Covering Non-Linked Long-Term Insurance Liabilities and Minimum Capital Requirement A/Q N/A
        IN160 Calculation of Direct Long-Term Insurance Element of Long-Term Insurance Component A/Q N/A
        IN180 Statement of Claims Development A/Q A/Q
        IN190 Employment Statistics A A
        IN200 Statement of Underwriting Performance A/Q A/Q
        IN210 Statement of Revenue by Jurisdiction A A
        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]
        [Amended] RM46/2007 (Made 5th July 2007). [VER6/07-07]
        [Amended] DFSA RM54/2007 (Made 1st December 2007). [VER9/12-07]
        [Amended] DFSA RM136/2014 (Made 21st August 2014). [VER14/06-14]

      • PIN A10.3.2 [Deleted]

        [Deleted] DFSA RM136/2014 (Made 21st August 2014). [VER14/06-14]

      • PIN A10.3.2

        The forms referred to in PIN Rule A10.3.1 must be prepared for each reporting unit for which an Insurer is required to submit an Annual Regulatory Return or a Quarterly Regulatory Return as applicable, except where:

        (a) this appendix, the instructional guidelines to the form set out in PRU or the DFSA's electronic prudential reporting system states that the form is not required for that reporting unit, or for that Insurer; or
        (b) the form would contain no information, in which case the Insurer may omit the form and present a Supplementary Note stating that the form has not been prepared for that reason.
        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]
        [Amended] DFSA RM46/2007 (Made 5th July 2007). [VER6/07-07]
        [Amended] DFSA RM51/2007 (Made 1st November 2007). [VER8/11-07]
        [Amended] DFSA RM54/2007 (Made 1st December 2007). [VER9/12-07]
        [Amended] DFSA RM136/2014 (Made 21st August 2014). [VER14/06-14]

      • PIN A10.3.3

        The forms comprising the Returns are set out in PRU and the DFSA's electronic prudential reporting system.

        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]
        [Amended] DFSA RM51/2007 (Made 1st November 2007). [VER8/11-07]
        [Amended] DFSA RM136/2014 (Made 21st August 2014). [VER14/06-14]

      • PIN A10.3.4

        Items must be disclosed in the Returns in accordance with the instructional guidelines set out in PRU and the DFSA's electronic prudential reporting system, subject to the effects of other provisions of this appendix.

        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]
        [Amended] DFSA RM51/2007 (Made 1st November 2007). [VER8/11-07]
        [Amended] DFSA RM54/2007 (Made 1st December 2007). [VER9/12-07]
        [Amended] DFSA RM136/2014 (Made 21st August 2014). [VER14/06-14]

      • PIN A10.3.5 PIN A10.3.5

        Where an item is described in a Return as the result of a mathematical calculation, that mathematical calculation must be used to determine that item except where these Rules or the relevant instructional guidelines require otherwise.

        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]
        [Amended] RM46/2007 (Made 5th July 2007). [VER6/07-07]
        [Amended] DFSA RM51/2007 (Made 1st November 2007). [VER8/11-07]
        [Amended] DFSA RM136/2014 (Made 21st August 2014). [VER14/06-14]

        • PIN A10.3.5 Guidance

          The Returns and instruction guidelines are provided in PIN App10, PRU and the DFSA's electronic prudential reporting system.

          [Added] DFSA RM51/2007 (Made 1st November 2007). [VER8/11-07]
          [Amended] DFSA RM134/2014 (Made 21st August 2014). [VER5/06-14]

    • PIN A10.4 PIN A10.4 General provisions relating to the completion of forms

      • PIN A10.4 Guidance

        Annual Regulatory Returns follow the cycle of the Insurer's normal statutory reporting, under the Companies Law and under equivalent legislation elsewhere. Quarterly Regulatory Returns are presented on a year to date basis at specified dates.

        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]
        [Amended] DFSA RMI277/2020 (Made 26th February 2020). [VER16/04-20]

      • PIN A10.4.1

        Supplementary Notes must be in accordance with any instructions provided through the DFSA's electronic prudential reporting system or specified in PRU. Each Supplementary Note must identify the form to which it relates.

        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]
        [Amended] DFSA RM51/2007 (Made 1st November 2007). [VER8/11-07]

      • PIN A10.4.2

        Returns must be presented in the English language.

        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]

      • PIN A10.4.3

        A Return must be presented in United States currency, rounded to thousands of dollars, with no decimal place except where these Rules or the relevant instructional guidelines require otherwise.

        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]
        [Amended] RM46/2007 (Made 5th July 2007). [VER6/07-07]

      • PIN A10.4.4

        Where the format of a form requires the presentation of comparative information, the comparative information shall be presented according to the following principles:

        (a) In the case of a form forming part of the Annual Regulatory Return, the comparative information shall be that presented in the Annual Regulatory Return for the previous reporting period.
        (b) In the case of a form forming part of the Quarterly Regulatory Return, the comparative information shall be that presented in the Quarterly Regulatory Return for the corresponding quarter in the previous calendar year.
        (c) Comparative information shall be presented unless:
        (i) the Insurer did not exist at any time during the comparative period (whether or not it was an Insurer);
        (ii) in the case of a Cell Return or a Fund Return, the Cell or Long-Term Insurance Fund to which the Return relates did not exist at any time during the comparative period; or
        (iii) so far only as concerns the DIFC Business Return, in the case of an Insurer that is not a DIFC Incorporated Insurer, the Insurer was not at any time an Insurer during the comparative period.
        (d) An Insurer that is required to present comparative information in a Return, and that was not required to prepare a Return in respect of the comparative period, must present comparative information that would have been presented in the Return covering the comparative period, if the Insurer had been required to prepare that Return.
        (e) Comparative information shall not be changed from the time it was first presented, unless re-presentation is necessary for the interpretation of the Return. Where comparative information is changed, the Insurer must include in the Return a Supplementary Note showing the nature of the change and the reason for it.
        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]

      • PIN A10.4.5

        The Annual Regulatory Return, including the Statement by Directors, is subject to audit, except where this appendix or the form instruction guidelines states that a form is not subject to audit.

        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]

      • PIN A10.4.6

        Each page of the Statement by Directors must show:

        (a) the words 'Annual Regulatory Return' or 'Quarterly Regulatory Return', as applicable;
        (b) [Deleted]
        (c) the Insurer's licence number;
        (d) the Insurer's name;
        (e) the reporting period to which the Return relates;
        (f) whether the Return is a global, Cell, Fund or DIFC Business Return; and
        (g) where the return relates to a Cell or a Long-term Insurance Fund, sufficient information to identify the Cell or Long-term Insurance Fund in question.
        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]
        [Amended] DFSA RM51/2007 (Made 1st November 2007). [VER8/11-07]

      • PIN A10.4.7 PIN A10.4.7

        Where this appendix or the form requires information to be presented for different Classes of Business or for different types of insurance contract (for example, direct insurance, facultative reinsurance, proportional reinsurance treaty and non-proportional reinsurance treaty), an Insurer required to complete the form must present the relevant information in respect of all Classes of Business and types of contract, except under the following circumstances so far as concerns businesses other than Direct Long Term Insurance Business of a DIFC Incorporated Insurer:

        (a) Where an item of numerical information in respect of a Class of Business for a type of insurance contract is less than two per cent of the total such numerical information in respect of all Classes of Business for that type of insurance contract, the Insurer may aggregate that numerical information for that Class of Business for that type of insurance contract with the same item of information for the Class of Business for that type of contract in which that item of information is the largest.
        (b) Where an item of numerical information in respect of a type of insurance contract for a Class of Business is less than two per cent of the total such numerical information in respect of all types of insurance contract for that Class of Business, the Insurer may aggregate that numerical information for that type of insurance contract for that Class of Business with the same item of information for the type of insurance contract for that Class of Business in which that item of information is the largest.
        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]
        [Amended] RM46/2007 (Made 5th July 2007). [VER6/07-07]

        • PIN A10.4.7 Guidance

          This Rule establishes de minimis limits for an Insurer in respect of detailed numerical information presented by Class of Business or by type of insurance contract. These de minimis limits do not apply for Direct Long-Term Insurance Business carried on by a DIFC Incorporated Insurer. Amounts below the de minimis limits may be aggregated together with other items of information in the same line or column of a form. Insurers are not required to apply the sub-sections in the order that they are set out. However, Insurers should ensure that the Returns continue to comply with both sub-sections after applying either. It is possible that applying the second sub-section to be applied could affect compliance with the first.

          Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]
          [Amended] RM46/2007 (Made 5th July 2007). [VER6/07-07]
          [Amended] DFSA RM54/2007 (Made 1st December 2007). [VER9/12-07]

      • PIN A10.4.8 PIN A10.4.8

        Where an Insurer arranges its affairs such that a Cell or Long-Term Insurance Fund maintained by it pays or receives income in the form of interest, dividends, rental, recharge of management expenses or other investment income, from another reporting unit of the Insurer, that income must be shown gross as an expense in the reporting unit bearing the expense, and as income in the reporting unit receiving the income. Where, however, the same reporting unit records the income and the expense, the two must be netted.

        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]
        [Amended] DFSA RM51/2007 (Made 1st November 2007). [VER8/11-07]

        • PIN A10.4.8 Guidance

          This Rule establishes accounting policy in respect of transactions between reporting units. Internal recharges within an Insurer should be shown as such where they are external to a reporting unit of that Insurer. However, where a reporting unit (for example, the Global Return of an Insurer that is not a Protected Cell Company, and that maintains one or more Long-Term Insurance Funds) includes both 'sides' of the internal transaction, the internal transaction must be eliminated by netting the income and expense.

          Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]
          [Amended] DFSA RM51/2007 (Made 1st November 2007). [VER8/11-07]
          [Amended] DFSA RM54/2007 (Made 1st December 2007). [VER9/12-07]

    • PIN A10.5 PIN A10.5 Statement by directors

      • PIN App10.5 Guidance

        1. The Statement by Directors forms a part of the Annual Regulatory Return or the Quarterly Regulatory Return. By providing these statements, the directors confirm that the Returns have been properly prepared and that the Insurer complies with applicable prudential rules.
        2. The Statement by Directors is set out as statements that must be made, but circumstances may arise when a statement cannot be made because it would be untrue to do so. Under such circumstances this section provides for the directors to provide an explanation in place of the omitted statement.
        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]
        [Amended] DFSA RM51/2007 (Made 1st November 2007). [VER8/11-07]

      • PIN A10.5.1

        Every Return must include a Statement by Directors, in accordance with this section.

        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]

      • PIN A10.5.2

        The Statement by Directors forming part of the Annual Regulatory Return must state that:

        (a) the Annual Regulatory Return has been prepared in accordance with the provisions of PIN chapter 6, this appendix, PRU chapter 3 and the DFSA's electronic prudential reporting system;
        (b) proper Accounting Records have been maintained and adequate information obtained by the Insurer;
        (c) appropriate systems and controls have been established and maintained by the Insurer over its transactions and records;
        (d) the Insurer has complied with the provisions of PIN chapter 4 throughout the reporting period; and
        (e) the Insurer complies, as at the date of the statement, with those provisions of PIN that are applicable to it.
        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]
        [Amended] DFSA RM51/2007 (Made 1st November 2007). [VER8/11-07]
        [Amended] DFSA RM54/2007 (Made 1st December 2007). [VER9/12-07]
        [Amended] DFSA RM128/2013 (Made 14th July 2013). [VER13/07-13]

      • PIN A10.5.3

        The Statement by Directors forming part of the Quarterly Regulatory Return must state that:

        (a) the Quarterly Regulatory Return has been prepared in accordance with the provisions of PIN chapter 6, this appendix, PRU chapter 3 and the DFSA's electronic prudential reporting system; and
        (b) the Insurer complies, as at the date of the statement, with those provisions of PIN that are applicable to it.
        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]
        [Amended] DFSA RM54/2007 (Made 1st December 2007). [VER9/12-07]

      • PIN A10.5.4

        If in the opinion of the directors it would be untrue to make one or more of the statements referred to in PIN Rule A10.5.2 and PIN Rule A10.5.3 the statements concerned must be omitted and the Insurer must instead state in a Supplementary Note that the directors are unable to make the statements in question, and must give the reasons for that inability.

        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]
        [Amended] DFSA RM54/2007 (Made 1st December 2007). [VER9/12-07]