PIN A5.8 PIN A5.8 Adjusted cellular equity
PIN A5.8.1 PIN A5.8.1
Insurermust calculate its adjusted cellular equity in respect of each Cellby adding items to and deducting them from the base cellular capital of that Cell, as set out in this section.
PIN A5.8.1 Guidance
The purpose of these adjustments is to provide a consistent basis for the determination of the
Adjusted Cellular Capital Resourcesin respect of a Celland to exclude from those resources assets that may not be readily realisable for the purposes of meeting any Cellular Liabilitiesof that Cell.
The following items must be added to base cellular capital, to the extent that the
Insurerhas excluded them in determining base cellular capital:(a) any minority interests in companies that are Subsidiariesof the Insurer, where the Insurer'sinterest in those companies constitutes a Cellular Assetof that Cell; and(b) any amount in respect of dividends to be paid by the Insurerin the form of Cell Sharesof that Cell.
The following items must be deducted from base cellular capital, to the extent that the
Insurerhas not excluded them in determining base cellular capital, or has added them to base cellular capital under PIN Rule A5.8.2:(a) any amounts in respect of appropriations to be made from profit of the Cellin 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, where that investment or the Subsidiaryconcerned is a Cellular Asset;(d) the amount of any tax liability that would be attributable to unrealised gains on investments that are Cellular Assets, if those gains were realised;(e) the amount of deferred acquisition costs that are Cellular Assets;(f) the amount of any deferred tax asset that is a Cellular Asset;(g) the amount of any Cellular Assetrepresenting 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 that are Cellular Assets;(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, that are Cellular Assets; and(k) the amount of any other Cellular Assetsthat may not be applied to meet Cellular Liabilitiesof that Cell.
PIN Rule A5.8.3(l) does not require an
Insurerto exclude Cellular Assetsattributable to a Long-Term Insurance Fundmaintained by the Insurer.