Entire Section

  • PIN A5.8 PIN A5.8 Adjusted cellular equity

    • PIN A5.8.1 PIN A5.8.1

      An Insurer must calculate its adjusted cellular equity in respect of each Cell by adding items to and deducting them from the base cellular capital of that Cell, as set out in this section.

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

      • PIN A5.8.1 Guidance

        The purpose of these adjustments is to provide a consistent basis for the determination of the Adjusted Cellular Capital Resources in respect of a Cell and to exclude from those resources assets that may not be readily realisable for the purposes of meeting any Cellular Liabilities of that Cell.


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

    • PIN A5.8.2

      The following items must be added to base cellular capital, to the extent that the Insurer has excluded them in determining base cellular capital:

      (a) any minority interests in companies that are Subsidiaries of the Insurer, where the Insurer's interest in those companies constitutes a Cellular Asset of that Cell; and
      (b) any amount in respect of dividends to be paid by the Insurer in the form of Cell Shares of that Cell.

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

    • PIN A5.8.3

      The following items must be deducted from base cellular capital, to the extent that the Insurer has 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 Cell 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 Insurer for payment;
      (b) Owners' Equity in a Takaful Insurer that does not, under the constitutional documents of the Insurer or the terms of insurance contracts or both, participate in the surpluses and losses of Takaful business;
      (c) the amount of any investment by the Insurer or by a Subsidiary of the Insurer, in the Insurer's own shares, where that investment or the Subsidiary concerned 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 Asset representing the value of in-force Long-Term Insurance Business of 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 Assets that may not be applied to meet Cellular Liabilities of that Cell.

      Derived from DFSA RM06/2004 (Made 16th September 2004). [VER1/09-04]
      [Amended] RM46/2007 (Made 5th July 2007). [VER6/07-07]

    • PIN A5.8.4

      PIN Rule A5.8.3(l) does not require an Insurer to exclude Cellular Assets attributable to a Long-Term Insurance Fund maintained by the Insurer.


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