Entire Section

  • PIN A3.3 PIN A3.3 Base capital

    • PIN A3.3 Guidance

      The commencement point for calculating an Insurer's adjusted equity is the Insurer's base capital.


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

    • PIN A3.3.1

      Subject to Rules PIN A3.3.2, PIN A3.3.3 and PIN A3.3.4, an Insurer's base capital consists of the following capital instruments and equity reserves of the Insurer:

      (a) paid-up ordinary shares, except for shares referred to in PIN Rule A3.5.1(d);
      (b) general reserves;
      (c) in the Insurance Fund of a Takaful Insurer, amounts provided from the Owners' Equity by loan to the Insurance Fund and 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.

      Derived from DFSA RM06/2004 (Made 16th September 2004). [VER1/09-04]
      [Amended] DFSA RM50/2007 (Made 1st October 2007). [VER7/10-07]

    • PIN A3.3.2

      Where an Insurer is not a DIFC Incorporated Insurer, base capital may include capital instruments and equity reserves that are approved in writing by the DFSA as equivalent to the capital instruments and equity reserves described in PIN Rule A3.3.1.


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

    • PIN A3.3.3

      Owner's Equity in a Takaful Insurer other 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 Insurer or 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' Equity is available for loan to the Insurance Fund of the Insurer.

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

    • PIN A3.3.4

      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 DFSA.


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