Entire Section

  • PIN 8.5 PIN 8.5 Significant transactions other than group transactions

    • PIN 8.5.1

      (1) A DIFC Incorporated Insurer must not enter into a transaction of the type described in this Rule unless the directors of the Insurer are 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 Related to the Insurer and the amount of the transaction equals or exceeds three per cent of the Insurer's surplus as at the end of the reporting period immediately preceding the transaction;
      (b) a loan or extension of credit to any Person who is not Related to the Insurer, where the Insurer makes 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 Related party of the Insurer making the loans or extensions of credit, where the amount of the transaction equals or exceeds three per cent of the Insurer's surplus 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 Insurers liabilities equals or exceeds five per cent of the Insurer's surplus;
      (d) a reinsurance agreement or modification to a reinsurance agreement involving the transfer of assets from an Insurer to a Person not Related to the Insurer, if an agreement or understanding exists between the Insurer and that Person that any portion of the assets will be transferred to one or more other Persons Related to the Insurer and the reinsurance premium or a change in the Insurers liabilities equals or exceeds five per cent of the Insurer's surplus; 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 Insurer that is not a Protected Cell Company, the Insurer's Adjusted Capital Resources; and
      (b) in the case of an Insurer that is a Protected Cell Company, the Insurer's Adjusted Cellular Capital Resources in respect of the Cell to which the transaction relates, where the transaction relates to a Cell, and otherwise the Insurer's Adjusted Non-Cellular Capital Resources.
      Derived from DFSA RM06/2004 (Made 16th September 2004). [VER1/09-04]
      [Amended] RM46/2007 (Made 5th July 2007). [VER6/07-07]

    • PIN 8.5.2

      An Insurer must report to the DFSA all dividends and other distributions to shareholders within 21 days following the declaration of the dividend or distribution.


      Derived from DFSA RM06/2004 (Made 16th September 2004). [VER1/09-04]
      [Amended] DFSA RM42/2007 (Made 15th February 2007). [VER4/02-07]
      [Amended] RM46/2007 (Made 5th July 2007). [VER6/07-07]

    • PIN 8.5.3

      An Insurer that is a Takaful Insurer must report to the DFSA all distributions of profit or surplus (however called or described) to policyholders within 21 days of the date of declaration of the distribution.


      Derived from DFSA RM06/2004 (Made 16th September 2004). [VER1/09-04]
      [Amended] DFSA RM42/2007 (Made 15th February 2007). [VER4/02-07]
      [Amended] RM46/2007 (Made 5th July 2007). [VER6/07-07]

    • PIN 8.5.4

      An Insurer must notify the DFSA in writing within 30 days if the Insurer makes an investment in a body corporate to which it is Related, if the total investment in the Related body corporate by the Insurer and other bodies corporate to which the Insurer is Related exceeds ten per cent of the body corporate's paid-up capital or voting rights.


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