Entire Section

  • PIN A5.5 PIN A5.5 Hybrid non-cellular capital adjustment

    • PIN A5.5 Guidance

      1. This section acts to limit hybrid non-cellular capital to 15% of an Insurer's adjusted non-cellular equity.
      2. The purpose of the hybrid non-cellular capital adjustment is to limit the extent to which an Insurer may rely for its Adjusted Non-Cellular Capital Resources on instruments that do not or may not constitute permanent capital of the Insurer. Such instruments include share capital contributed by a Holding Company, where the Holding Company's investment is financed by debt rather than by its own capital.

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

    • PIN A5.5.1

      Subject to PIN Rule A5.5.2, hybrid non-cellular capital includes the following items:

      (a) subordinated debt;
      (b) preference shares; and
      (c) ordinary shares issued by an Insurer to a Holding Company whose own paid-up ordinary share capital, taken together with its general reserves, is lower than that of the Insurer.

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

    • PIN A5.5.2

      Hybrid non-cellular capital excludes any instrument that is attributable to a Cell.


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

    • PIN A5.5.3

      Subject to PIN Rule A5.5.4, an Insurer must calculate its hybrid non-cellular capital adjustment as the amount by which the total amount of hybrid non-cellular capital exceeds 15% of adjusted non-cellular equity.


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

    • PIN A5.5.4

      The DFSA may at its discretion and on the application of an Insurer, permit that Insurer to apply PIN Rule A5.5.3 as though the figure of 15% was replaced with a higher figure approved in writing by the DFSA. The approved figure may not be more than the actual percentage which the hybrid non-cellular capital represents of adjusted non-cellular equity, and may not in any case exceed 30%.


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