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  • PFN PIN 6.5.5 PFN PIN 6.5.5

    An Insurer’s current Investments are reported at item 3. This item does not include Derivatives used to hedge Investments reported here. Hedging Derivatives are included in item 5. Insurers must have regard to the following principles when completing item 3:

    (a) Investments that are strategic in nature must be assumed to be non-current, and must be reported at item 8 or item 9; and
    (b) Deposits that are of the nature of Security Deposits, or retentions under contracts, are not reported at item 3.1 but are reported as receivables.

    • PFN PIN 6.5.5 Guidance

      Investments that take the form of mudaraba or musharaka contracts must be reported in accordance with their nature. A contract that takes the form of a collective Investment, where the Insurer is one of several investors providing capital to a mudarib who then provides the capital to the entrepreneur, should be reported as a collective Investment (where it does not fall to be reported as a Profit Sharing Investment Account). Where however, a contract of mudaraba or musharaka is entered into by an Insurer as an Investment directly with an entrepreneur, or through a mudarib with the Insurer as sole rab ul mal, the Investment should be reported as a contract of mudaraba or musharaka as appropriate.

      Derived from DFSA RM11/2004 (Made 16th September 2004). [VER1/09-04]