PIN 4.1 PIN 4.1 Introduction
PIN 4.1.1 PIN 4.1.1
This chapter applies to all
PIN 4.1.1 Guidance1. The amount of capital is fundamental to the financial health of any insurance undertaking and therefore to the protection of its policyholders. All
Insurersare therefore required to maintain a minimum level of capital resources in accordance with this chapter.2. This chapter establishes minimum required levels of capital resources applicable to Insurersof different types. PIN section 4.2 establishes provisions that are applicable to all Insurers, wherever they are incorporated and of whatever type they are. PIN section 4.3 establishes Minimum Capital Requirementsin respect of Insurersother than Protected Cell Companies, and PIN section 4.4 establishes equivalent requirements in respect of Protected Cell Companies. Additional provisions are established by PIN section 4.6, in respect of Insurersmaintaining Long-Term Insurance Funds, and by PIN section 4.7, in respect of Insurersthat are not DIFC Incorporated Insurers.3. The DFSAhas the power under the Regulatory Law2004 to act if it believes that any requirement of this chapter is breached, or that it may be breached in the future.
For the purposes of this chapter, assets and liabilities must be valued in accordance with PIN chapter 5.
In this chapter and in the appendices referred to in this chapter, references to ratings are made according to the rating hierarchy (AAA, AA, etc) of Standard & Poor's. Where, for the purposes of a provision of this chapter or of an appendix, an
Insureruses ratings from a Rating Agencyother than Standard & Poor's, the Insurermust apply that provision as though the Standard & Poor's rating referred to in the provision were replaced by the rating from that other Rating Agencythat is equivalent to the Standard & Poor's rating.
Insurermust not, for the purposes of this chapter or the appendices referred to in this chapter, use ratings provided by any Rating Agencyother than Standard & Poor's, Moody's, AM Best, and Fitch Ratings, except where the DFSAhas given written approval to the Insurerfor the use of ratings provided by that other Rating Agency.