Entire Section

  • PIN A6.9 PIN A6.9 Size factor component

    • PIN A6.9 Guidance

      The effect of the size factor component is to provide a relatively higher capital requirement in respect of segments with smaller portfolios of Invested Assets. The provisions in this section apply the relevant provisions of PIN section A4.9 to the segments of a Protected Cell Company.


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

    • PIN A6.9.1

      The base figure for the size factor component is determined by aggregating the following components, for the segment:

      (a) the aggregate of the default components determined in accordance with PIN section A6.4, in respect of Invested Assets;
      (b) the investment volatility risk component determined in accordance with PIN section A6.5; and
      (c) the concentration risk component determined in accordance with PIN section A6.8.

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

    • PIN A6.9.2

      An Insurer must calculate the size factor component in respect of a segment by multiplying the base figure for that segment as determined in accordance with PIN Rule A6.9.1 by the factor derived by applying the following formula, where x represents the total Invested Assets of the segment, expressed in millions of dollars:

      (a) if x ≤ 100, the factor is 1.5;
      (b) if 100 < x ≤ 200, the factor is (150 + 0.5(x-100))/x;
      (c) if 200 < x ≤ 1,200, the factor is (200 - 0.2(x-200))/x; and
      (d) if x > 1,200, the factor is zero.

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