PIN A3.4 PIN A3.4 Adjusted equity
PIN A3.4.1 PIN A3.4.1
Insurermust calculate its adjusted equity by adding items to and deducting them from its base capital, as set out in this section.
PIN A3.4.1 Guidance
The purpose of these adjustments is to provide a consistent basis for the determination of the
Insurer's Adjusted Capital Resourcesand to exclude from those resources assets that may not be readily realisable for the purposes of meeting Insurance Liabilitiesof the Insurer.
The following items must be added to base capital, to the extent that the
Insurerhas excluded them in determining its base capital:(a) any minority interests in companies that are Subsidiariesof the Insurer; and(b) any amount in respect of dividends to be paid by the Insurerin the form of shares.
The following items must be deducted from base capital, to the extent that the
Insurerhas not excluded them in determining its base capital, or has added them to base capital under PIN Rule A3.4.2:(a) any amounts in respect of appropriations to be made from profit in respect of the reporting period most recently ended, including dividends, distributions by Takaful Insurersof surplus, bonuses, pensions and welfare charges that are determined on the basis of the profit of that reporting period, whether or not the amounts have been approved by the Insurerfor payment;(b) Owners' Equityin a Takaful Insurerthat does not, under the constitutional documents of the Insureror the terms of insurance contracts or both, participate in the surpluses and losses of Takaful business;(c) the amount of any investment by the Insureror by a Subsidiaryof the Insurer, in the Insurer'sown shares;(d) the amount of any tax liability that would be attributable to unrealised gains on investments, if those gains were realised;(e) the amount of deferred acquisition costs;(f) the amount of any deferred tax asset;(g) the amount of any asset representing the value of in-force Long-Term Insurance Businessof the Insurer;(h) the amount of any goodwill, patents, service rights, brands and any other intangible items;(i) the amount of any Zakah or charity fund of a Takaful Insurer;(j) the amount of any operating assets, including inventories, plant and equipment, and vehicles; and(k) the amount of any other assets that may not be applied to meet Insurance Liabilitiesof the Insurer.
PIN Rule A3.4.3(1) does not require an
Insurerto exclude assets attributable to a Long-Term Insurance Fundmaintained by the Insurer.