PIN A5.4 PIN A5.4 Adjusted non-cellular equity
PIN A5.4.1 PIN A5.4.1
Insurermust calculate its adjusted non-cellular equity by adding items to and deducting them from its base non-cellular capital, as set out in this section.
PIN A5.4.1 Guidance1. The purpose of these adjustments is to provide a consistent basis for the determination of the
Insurer's Adjusted Non-Cellular Capital Resourcesand to exclude from those resources assets that may not be readily realisable for the purposes of meeting any Non-Cellular Liabilitiesof the Insurer.2. A Takaful Insurermay not count as non-cellular capital amounts loaned to Insurance Fundsthat are attributable to Cells, as those amounts will be counted towards base cellular capital of the Cellsconcerned.
The following items must be added to base non-cellular capital, to the extent that the
Insurerhas excluded them in determining its base non-cellular capital:(a) any minority interests in companies that are Subsidiariesof the Insurer, where the Insurer'sinterest in those companies constitutes a Non-Cellular Assetof the Insurer; and(b) any amount in respect of dividends to be paid by the Insurerin the form of shares other than Cell Shares.
The following items must be deducted from base non-cellular capital, to the extent that the
Insurerhas not excluded them in determining its base non-cellular capital, or has added them to base non-cellular capital under PIN Rule A5.4.2:(a) any amounts in respect of appropriations to be made from profit in respect of the reporting period most recently ended, including dividends, 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 any deferred tax asset;(f) the amount of any goodwill, patents, service rights, brands and any other intangible items;(g) in a Takaful Insurer, the amount of any loan made from the Owners' Equityto an Insurance Fundthat is attributable to a Cell, that has not been repaid as at the Solvency Reference Date;(h) the amount of any Zakah or charity fund of a Takaful Insurer;(i) the amount of any operating assets, including inventories, plant and equipment, and vehicles; and(j) the amount of any other assets that may not be applied to meet Non-Cellular Liabilitiesof the Insurer.