PIN A3.3 PIN A3.3 Base capital
PIN A3.3 Guidance
The commencement point for calculating an
Insurer'sadjusted equity is the Insurer'sbase capital.
PIN A3.3.1(a) paid-up ordinary shares, except for shares referred to in PIN Rule A3.5.1(d);(b) general reserves;(c) in the
Insurance Fundof a Takaful Insurer, amounts provided from the Owners' Equityby loan to the Insurance Fundand not repaid as at the Solvency Reference Date;(d) retained earnings;(e) current year's earnings after tax; and(f) hybrid capital, as defined in PIN Rule A3.5.1.
Insureris not a DIFC Incorporated Insurer, base capital may include capital instruments and equity reserves that are approved in writing by the DFSAas equivalent to the capital instruments and equity reserves described in PIN Rule A3.3.1.
Owner's Equityin a Takaful Insurerother than amounts referred to in PIN Rule A3.3.1(c) must be classified as hybrid capital for the purposes of this section if:(a) under the constitutional documents of the Insureror the terms of insurance contracts or both, participation in the surpluses and losses of Takaful business is limited to the policyholders of the Insurer; and(b) the Owners' Equityis available for loan to the Insurance Fundof the Insurer.
Hybrid capital having a term to maturity of less than five years may only be included in base capital with the written consent of the