PIN App10 PIN App10 Reporting to the DFSA
PIN A10.1 PIN A10.1 Purpose and general provisions
This appendix applies to all
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.
PIN A10.1.2 Guidance1. The form and content of the
Returnsdiffers 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 Returnsare 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 Returnsis provided in PRU and the DFSA's electronic prudential reporting system.
PIN A10.2 PIN A10.2 Completion of forms for global, cell, fund and DIFC business reporting units
PIN A10.2 Guidance
Returnsare 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 DIFCbusiness. These parts, and the entire business, are described as ‘reporting units’ because a Returnis required for each. An Insurermay therefore have to submit more than one set of Returns.
Returnmust be completed in respect of each of the reporting units set out in this section that applies to the Insurer.
There are four types of reporting units in respect of which an
Insurermay be required to submit a Return. These are referred to in this appendix and the forms as the global reporting unit, the Cellreporting unit, the fund reporting unit and the DIFCbusiness reporting unit. The Returnsin respect of these reporting units are referred to respectively in this appendix and the forms as the Global Return, the Cell Return, the Fund Returnand the DIFC Business Return.
Insurerthat is required by PIN chapter 6 to complete a Returnmust complete a Global Return. A Global Returnhas the following characteristics:(a) Subject to (b), a Global Returnincludes 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 Returnof a Protected Cell Companydoes not include any assets, liabilities, equity, revenues or expenses that are attributable to a Cell.
Except as provided otherwise in this appendix, an
Insurerthat is a Protected Cell Companymust complete a Cell Returnin respect of each Cellthat it maintains. A Cell Returnincludes 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 Insurerto which this Rule applies is not required to complete a Quarterly Regulatory Returnin respect of any Cellsmaintained by it that are Captive Cells.
PIN A10.2.5 PIN A10.2.5
Except as provided otherwise in this appendix, an
Insurerthat maintains a Long-Term Insurance Fundmust complete a Fund Returnin respect of each Long-Term Insurance Fundthat it maintains. A Fund Returnincludes 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 Insurerto which this Rule applies is not required to complete a Fund Returnin the following cases:(a) where the Insureris deemed to constitute a single, Long-Term Insurance Fund, such that the information contained in the Fund Returnwould be identical to that in the Global Return; and(b) where a Cellof the Insureris deemed to constitute a single, Long-Term Insurance Fund, such that the information contained in the Fund Returnwould be identical to that in the Cell Return.
PIN A10.2.5 Guidance
PIN A10.2.5 operates to prevent the preparation of duplicate
Returns. However, where under this section an Insureror a Cellis exempt from the requirement to prepare a Quarterly Regulatory Returnbecause of its captive status, the fund Quarterly Regulatory Returnwould not be identical and must still be prepared.
PIN A10.2.6 PIN A10.2.6
Insurerthat is not a DIFC Incorporated Insurermust complete a DIFC Business Return. A DIFC Business Returnhas the following characteristics:(a) it includes only liabilities that are Insurance Liabilitiesof the Insurerin respect of its DIFC Insurance Businessand 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.
PIN A10.2.6 Guidance
The assets that are associated with
Insurance Liabilitiesnormally include only reinsurance and other recoveries in respect of claims, whether or not incurred, included in Insurance Liabilities. The DIFC Business Returndoes not include assets such as investments, fixed assets, or receivables other than reinsurance recoveries in respect of Insurance Liabilities.
PIN A10.3 PIN A10.3 Content of returns
PIN A10.3.1(1) The
Annual Regulatory Returnand Quarterly Regulatory Returncomprise the forms in Table 1 to this Rule, together with the Supplementary Notespertaining to those forms and the Statement by Directorsreferred 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 Insurerthat is a DIFC Incorporated Insurer; and(b) the column headed 'Branch' indicates the relevant forms that must be prepared and submitted by an Insurerthat 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 Returnand 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
PIN A10.3.2 [Deleted][Deleted] DFSA RM136/2014 (Made 21st August 2014). [VER14/06-14]
The forms referred to in PIN Rule A10.3.1 must be prepared for each reporting unit for which an
Insureris required to submit an Annual Regulatory Returnor a Quarterly Regulatory Returnas applicable, except where:(a) this appendix, the instructional guidelines to the form set out in PRU or the DFSA'selectronic 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 Insurermay omit the form and present a Supplementary Notestating 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]
The forms comprising the
Returnsare set out in PRU and the DFSA'selectronic prudential reporting system.
Items must be disclosed in the
Returnsin accordance with the instructional guidelines set out in PRU and the DFSA'selectronic prudential reporting system, subject to the effects of other provisions of this appendix.
PIN A10.3.5 PIN A10.3.5
Where an item is described in a
Returnas the result of a mathematical calculation, that mathematical calculation must be used to determine that item except where these Rulesor the relevant instructional guidelines require otherwise.
PIN A10.4 PIN A10.4 General provisions relating to the completion of forms
PIN A10.4 Guidance
Annual Regulatory Returnsfollow the cycle of the Insurer'snormal statutory reporting, under the Companies Law and under equivalent legislation elsewhere. Quarterly Regulatory Returnsare presented on a year to date basis at specified dates.
Supplementary Notesmust be in accordance with any instructions provided through the DFSA'selectronic prudential reporting system or specified in PRU. Each Supplementary Notemust identify the form to which it relates.
Returnsmust be presented in the English language.
Returnmust be presented in United States currency, rounded to thousands of dollars, with no decimal place except where these Rulesor the relevant instructional guidelines require otherwise.
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 Returnfor 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 Returnfor the corresponding quarter in the previous calendar year.(c) Comparative information shall be presented unless:(i) the Insurerdid not exist at any time during the comparative period (whether or not it was an Insurer);(ii) in the case of a Cell Returnor a Fund Return, the Cellor Long-Term Insurance Fundto which the Returnrelates 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 Insurerwas not at any time an Insurerduring the comparative period.(d) An Insurerthat is required to present comparative information in a Return, and that was not required to prepare a Returnin respect of the comparative period, must present comparative information that would have been presented in the Returncovering the comparative period, if the Insurerhad 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 Returna Supplementary Noteshowing the nature of the change and the reason for it.
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.
Each page of the
Statement by Directorsmust show:(a) the words ' Annual Regulatory Return' or ' Quarterly Regulatory Return', as applicable;(b) [Deleted](c) the Insurer'slicence number;(d) the Insurer'sname;(e) the reporting period to which the Returnrelates;(f) whether the Returnis a global, Cell, Fundor DIFC Business Return; and(g) where the return relates to a Cellor a Long-term Insurance Fund, sufficient information to identify the Cellor Long-term Insurance Fundin question.
PIN A10.4.7 PIN A10.4.7
Where this appendix or the form requires information to be presented for different
Classes of Businessor for different types of insurance contract (for example, direct insurance, facultative reinsurance, proportional reinsurance treaty and non-proportional reinsurance treaty), an Insurerrequired to complete the form must present the relevant information in respect of all Classes of Businessand types of contract, except under the following circumstances so far as concerns businesses other than Direct Long Term Insurance Businessof a DIFC Incorporated Insurer:(a) Where an item of numerical information in respect of a Class of Businessfor a type of insurance contract is less than two per cent of the total such numerical information in respect of all Classes of Businessfor that type of insurance contract, the Insurermay aggregate that numerical information for that Class of Businessfor that type of insurance contract with the same item of information for the Class of Businessfor 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 Businessis 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 Insurermay aggregate that numerical information for that type of insurance contract for that Class of Businesswith the same item of information for the type of insurance contract for that Class of Businessin which that item of information is the largest.
PIN A10.4.7 Guidance
Ruleestablishes de minimis limits for an Insurer in respect of detailed numerical information presented by Class of Businessor by type of insurance contract. These de minimis limits do not apply for Direct Long-Term Insurance Businesscarried 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. Insurersare not required to apply the sub-sections in the order that they are set out. However, Insurersshould ensure that the Returnscontinue 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.
PIN A10.4.8 PIN A10.4.8
Insurerarranges its affairs such that a Cellor Long-Term Insurance Fundmaintained 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.
PIN A10.4.8 Guidance
Ruleestablishes accounting policy in respect of transactions between reporting units. Internal recharges within an Insurershould be shown as such where they are external to a reporting unit of that Insurer. However, where a reporting unit (for example, the Global Returnof an Insurerthat 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.
PIN A10.5 PIN A10.5 Statement by directors
PIN App10.5 Guidance1. The
Statement by Directorsforms a part of the Annual Regulatory Returnor the Quarterly Regulatory Return. By providing these statements, the directors confirm that the Returnshave been properly prepared and that the Insurer complies with applicable prudential rules.2. The Statement by Directorsis 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.
Returnmust include a Statement by Directors, in accordance with this section.
Statement by Directorsforming part of the Annual Regulatory Returnmust state that:(a) the Annual Regulatory Returnhas 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 Recordshave 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 Insurerhas complied with the provisions of PIN chapter 4 throughout the reporting period; and(e) the Insurercomplies, as at the date of the statement, with those provisions of PIN that are applicable to it.
Statement by Directorsforming part of the Quarterly Regulatory Returnmust state that:(a) the Quarterly Regulatory Returnhas been prepared in accordance with the provisions of PIN chapter 6, this appendix, PRU chapter 3 and the DFSA'selectronic prudential reporting system; and(b) the Insurercomplies, as at the date of the statement, with those provisions of PIN that are applicable to it.
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
Insurermust instead state in a Supplementary Notethat the directors are unable to make the statements in question, and must give the reasons for that inability.