Entire Section

  • PIN 4.7 PIN 4.7 Availability of assets of insurers incorporated outside the DIFC

    • PIN 4.7.1 PIN 4.7.1

      This section applies only to Insurers that are not DIFC Incorporated Insurers.

      Derived from DFSA RM06/2004 (Made 16th September 2004). [VER1/09-04]

      • PIN 4.7.1 Guidance

        The provisions in this section require an Insurer to have assets, of a minimum quality, available to meet its gross Insurance Liabilities arising from its DIFC Insurance Business plus a margin. Although the Insurer is required to cover its Insurance Liabilities gross of reinsurance, an Insurer still has benefit of its reinsurance arrangements because assets may include amounts receivable from reinsurers in respect of gross Insurance Liabilities, including amounts potentially receivable from reinsurers in respect of the exposures reflected in the Insurer's Premium Liability. No credit, however, may be taken in respect of a reinsurer that is Rated worse than BBB.


        Derived from DFSA RM06/2004 (Made 16th September 2004). [VER1/09-04]

    • PIN 4.7.2 PIN 4.7.2

      An Insurer that is not a DIFC Incorporated Insurer must always have assets, of a type referred to in PIN Rule 4.7.3, that are available to meet Insurance Liabilities of the Insurer arising in respect of operations conducted by the Insurer in the DIFC, at least equal to the sum of the following:

      (a) the sum of the default risk component and the investment volatility risk component in respect of those assets, calculated according to the methods set out in sections PIN A4.4 and PIN A4.5 respectively, applying those methods so far as concerns those assets only;
      (b) Insurance Liabilities of the Insurer in respect of its DIFC Insurance Business; and
      (c) the Insurer's DIFC Business Risk Capital Requirement, calculated in accordance with PIN App9.
      Derived from DFSA RM06/2004 (Made 16th September 2004). [VER1/09-04]
      [Amended] RM46/2007 (Made 5th July 2007). [VER6/07-07]

      • PIN 4.7.2 Guidance

        1. Assets are not normally available to meet Insurance Liabilities of an Insurer arising in respect of operations conducted by the Insurer in the DIFC, if those assets are required to meet liabilities of the Insurer in jurisdictions other than the DIFC, except where those liabilities are also Insurance Liabilities of the Insurer arising in respect of operations conducted by the Insurer in the DIFC.
        2. Assets are not normally available to meet Insurance Liabilities of an Insurer arising in respect of operations conducted by the Insurer in the DIFC, if those assets are required, under the laws of any jurisdiction, to be located in a jurisdiction other than the DIFC, except where the assets are required to be located in that jurisdiction to meet, or as collateral against, either:
        a. liabilities that are Insurance Liabilities of the Insurer arising in respect of operations conducted by the Insurer in the DIFC; or
        b. liabilities that may arise in the future and that would, if they arose, be Insurance Liabilities of the Insurer arising in respect of operations conducted by the Insurer in the DIFC.

        Derived from DFSA RM06/2004 (Made 16th September 2004). [VER1/09-04]

    • PIN 4.7.3

      The assets available to an Insurer for the purposes of PIN Rule 4.7.2 may comprise any combination of the following types of asset:

      (a) bonds Rated 'BBB' or better;
      (b) equities listed on an Approved Stock Exchange;
      (c) reinsurance recoverable in respect of General Insurance Liabilities referred to in PIN Rule 4.7.2(b), where the reinsurer is Rated 'BBB' or better; and
      (d) land and buildings.

      Derived from DFSA RM06/2004 (Made 16th September 2004). [VER1/09-04]

    • PIN 4.7.4

      An Insurer subject to this section must demonstrate to the satisfaction of the DFSA that the Insurer complies with PIN Rule 4.7.2, when the DFSA requests it by written notice to do so.


      Derived from DFSA RM06/2004 (Made 16th September 2004). [VER1/09-04]