PIN 8.5 PIN 8.5 Significant transactions other than group transactions
PIN 8.5.1(1) A
DIFC Incorporated Insurermust not enter into a transaction of the type described in this Ruleunless the directors of the Insurerare satisfied following reasonable enquiry that the transaction does not adversely affect the interests of policyholders. The transactions to be considered are:(a) a sale, purchase, exchange, loan or extension of credit, guarantee or investment where the counterparty is a Person Relatedto the Insurerand the amount of the transaction equals or exceeds three per cent of the Insurer'ssurplus as at the end of the reporting period immediately preceding the transaction;(b) a loan or extension of credit to any Personwho is not Relatedto the Insurer, where the Insurermakes the loan or extension of credit with the agreement or understanding that the proceeds of the transaction, in whole or in substantial part, are to be used to make loans or extensions of credit to purchase assets of, or to make investments in, any Relatedparty of the Insurermaking the loans or extensions of credit, where the amount of the transaction equals or exceeds three per cent of the Insurer'ssurplus as at the end of the reporting period immediately preceding the transaction;(c) a reinsurance agreement or modification to a reinsurance agreement in which the reinsurance premium or a change in the Insurersliabilities equals or exceeds five per cent of the Insurer'ssurplus;(d) a reinsurance agreement or modification to a reinsurance agreement involving the transfer of assets from an Insurerto a Personnot Relatedto the Insurer, if an agreement or understanding exists between the Insurerand that Personthat any portion of the assets will be transferred to one or more other Persons Relatedto the Insurerand the reinsurance premium or a change in the Insurersliabilities equals or exceeds five per cent of the Insurer'ssurplus; and(e) any management agreement, service contract or cost-sharing arrangement.(2) For the purposes of (1), 'surplus' means:(a) in the case of an Insurerthat is not a Protected Cell Company, the Insurer's Adjusted Capital Resources; and(b) in the case of an Insurerthat is a Protected Cell Company, the Insurer's Adjusted Cellular Capital Resourcesin respect of the Cellto which the transaction relates, where the transaction relates to a Cell, and otherwise the Insurer's Adjusted Non-Cellular Capital Resources.
Insurermust report to the DFSAall dividends and other distributions to shareholders within 21 days following the declaration of the dividend or distribution.
Insurerthat is a Takaful Insurermust report to the DFSAall distributions of profit or surplus (however called or described) to policyholders within 21 days of the date of declaration of the distribution.
Insurermust notify the DFSAin writing within 30 days if the Insurermakes an investment in a body corporate to which it is Related, if the total investment in the Relatedbody corporate by the Insurerand other bodies corporate to which the Insureris Relatedexceeds ten per cent of the body corporate's paid-up capital or voting rights.