Versions

 

PFN PIN 6.6.5

Item 2, Adjustments to base capital in accordance with PIN, must be completed having regard to the following principles:

(a) Amounts referred to in item 2.1 must not be reported if those amounts are included at item 1.7;
(b) Amounts referred to in item 2.2 must not be reported if those amounts are excluded from item 1.7;
(c) Item 2.1.1, minority interests in subsidiaries, applies only where an Insurer excludes from its equity an amount representing minority interests in a controlled entity that is not accounted for as an investment;
(d) Item 2.1.2, liability for dividends to be paid in the form of Shares, applies only where an Insurer has recorded as a liability a provision for dividends that are to be paid by issuing Shares. This item does not apply to a Fund Return;
(e) Item 2.2.1 applies to the liability referred to in PIN rule A3.4.3(a) and equivalent provisions in PINRules A5.4.3(a), A5.8.3(a) and A7.4.2(a). This item does not apply to a Fund Return;
(f) Item 2.2.2 applies only to a Return of a Takaful Insurer. This item represents amounts of Owners’ Equity that are not available for loan to the Insurance Fund or to participate in surpluses or deficits of the Insurance Fund;
(g) Item 2.2.3 represents Investments of the Insurer or by any Subsidiary of the Insurer in the base capital of the Insurer recorded at item 1.4;
(h) Item 2.2.4 represents the amount of any tax on capital gains, that was not recognised as a liability on form 1, and that would be incurred by the Insurer if the Investments reported on form were realised at the values shown on that form;
(i) Item 2.2.5 must be equal to the amount of any deferred acquisition costs included on form 1, whether as a separate asset or as a reduction from liabilities;
(j) Item 2.2.6 must be equal to the sum of items 4.3 and 12.3 on form 1;
(k) Item 2.2.7 must be equal to the sum of any asset recorded on form 1 and representing the value of in-force Long-Term Insurance Business;
(l) Item 2.2.8 must be equal to the sum of item 11.3 on form 1, and any other intangible assets recorded on form 1 and not otherwise excluded from base capital;
(m) Item 2.2.9 applies only to a Return of a Takaful Insurer. This item represents any amount of Zakah or charity fund of a Takaful Insurer that is not otherwise excluded from base capital;
(n) Item 2.2.10 represents the amount of an Insurer’s Class 7 Capital Requirement, in accordance with section 4.5. This item does not apply to a Fund Return;
(o) Item 2.2.11 must be equal to the amount reported at item 10.3 on form 1; and
(p) Item 2.2.12 must record the amount of any other assets, not otherwise excluded from base capital, that are not available to meet the Insurance Liabilities of the Insurer recorded on form 1.