PIN A7.3 PIN A7.3 Base fund capital
The commencement point for calculating the adjusted fund equity in respect of a
Long-Term Insurance Fundmaintained by an Insureris the base fund capital.
Subject to Rules PIN A7.3.3, PIN A7.3.4 and PIN A7.3.5, the base fund capital in respect of a
Long-Term Insurance Fundmust consist of the following capital instruments and equity reserves of the Insurer, that are classified as capital instruments and equity reserves of the fund:(a) general reserves;(b) retained earnings;(c) amounts attributed to the Long-Term Insurance Fundby the Insurerin accordance with PIN Rule 3.4.2;(d) in the case of a Takaful Insurer, amounts provided from the Owners' Equityby loan to the Insurance Fundand not repaid as at the Solvency Reference Date;(e) current year's earnings after tax; and(f) hybrid capital (as defined in PIN Rule A7.5.1).
Insureris not a DIFC Incorporated Insurer, base capital may include capital instruments and equity reserves that are approved in writing by the DFSAas equivalent to the capital instruments and equity reserves described in PIN Rule A7.3.2.
Owners' Equityin a Takaful Insurer, that has not been transferred to the Insurance Fund, must be classified as hybrid capital for the purposes of this section if:(a) under the constitutional documents of the Insureror the terms of insurance contracts or both, the owners do not participate in the surpluses and losses of Insurance Business; and(b) the Owners' Equityis available for loan to the Insurance Fundmaintained within the Long-Term Insurance Fundof the Insurer.
Hybrid capital having a term to maturity of less than five years may only be included in base fund capital with the written consent of the