Entire Section

  • PIN A5.7 PIN A5.7 Base cellular capital

    • PIN A5.7 Guidance

      The commencement point for calculating the adjusted cellular equity in respect of a Cell is the base cellular capital in respect of that Cell.


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

    • PIN A5.7.1

      Subject to Rules PIN A5.7.3 and PIN A5.7.4, the base cellular capital in respect of a Cell consists of the following capital instruments and equity reserves that are attributable to that Cell:

      (a) paid-up Cell Shares, except for shares referred to in PIN Rule A5.10.1(d);
      (b) general reserves;
      (c) in the Insurance Fund of a Takaful Insurer, where the Insurance Fund is attributable to the Cell, 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 cellular capital (as defined in PIN Rule A5.10.1).

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

    • PIN A5.7.2

      Owners' Equity in a Takaful Insurer other than amounts referred to in PIN Rule A5.7.1(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 A5.7.3

      Hybrid cellular capital having a term to maturity of less than five years may only be included in base cellular capital with the consent of the DFSA.


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