Entire Section

  • PIN 5.7 PIN 5.7 Value of investments in subsidiaries and associates that are subject to minimum capital requirements

    • PIN 5.7.1

      This section applies to all Insurers.


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

    • PIN 5.7.2 PIN 5.7.2

      Where an Insurer is the Parent of a Financial Group, the value of the Insurer's investment in any Subsidiary or Associate that is an Authorised Firm or a Financial Institution must be taken as the amount of the Insurer's proportionate share of that Subsidiary or Associate's Capital Resources or Adjusted Capital Resources determined in accordance with PIN Rule 8.3.4(1)(b), reduced by the Insurer's proportionate share of the Subsidiary or Associate's Capital Requirement determined in accordance with PIN Rule 8.3.3(2).

      Derived from DFSA RM06/2004 (Made 16th September 2004). [VER1/09-04]
      [Amended] RM46/2007 (Made 5th July 2007). [VER6/07-07]

      • PIN 5.7.2 Guidance

        The impact of PIN Rule 5.7.2 is that an Insurer's capital resources are calculated on a basis consistent with the manner of calculation of Financial Group Capital Resources, and that capital resources required to support the capital adequacy of Group companies are not used to support the individual capital adequacy of the Insurer itself. The Insurer's capital adequacy calculation is therefore also an indication of the degree of capital adequacy of the Financial Group of which it is the Parent. In this and other Rules where reference is made to a Parent for the purposes of calculating capital adequacy of a group of companies, generally, it is a reference to the ultimate Parent within the group.

        [Added] RM46/2007 (Made 5th July 2007). [VER6/07-07]

    • PIN 5.7.3

      In PIN Rule 5.7.2, the Insurer's proportionate share of the Subsidiary's or Associate's Minimum Capital Requirement or equivalent means the amount of the Subsidiary's or Associate's Minimum Capital Requirement or equivalent, multiplied by the proportion of the Subsidiary's or Associate's total ownership rights that is held by the Insurer.


      Derived from DFSA RM06/2004 (Made 16th September 2004). [VER1/09-04]
      [Deleted] RM46/2007 (Made 5th July 2007). [VER6/07-07]