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 theInsurer'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 theInsurer :(a) paid-up ordinary shares, except for shares referred to in PIN Rule A3.5.1(d);(b) general reserves;(c) in theInsurance Fund of aTakaful Insurer , amounts provided from theOwners' Equity by loan to theInsurance Fund and not repaid as at theSolvency 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 aDIFC Incorporated Insurer , base capital may include capital instruments and equity reserves that are approved in writing by theDFSA 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 aTakaful 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 theInsurer or the terms of insurance contracts or both, participation in the surpluses and losses of Takaful business is limited to the policyholders of theInsurer ; and(b) theOwners' Equity is available for loan to theInsurance Fund of theInsurer .
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]