PIN 4.7.1 Guidance

The provisions in this section require an Insurer to have assets, of a minimum quality, available to meet its gross Insurance Liabilities arising from its DIFCInsurance Business plus a margin. Although the Insurer is required to cover its Insurance Liabilities gross of reinsurance, an Insurer still has benefit of its reinsurance arrangements because assets may include amounts receivable from reinsurers in respect of gross Insurance Liabilities, including amounts potentially receivable from reinsurers in respect of the exposures reflected in the Insurer'sPremium Liability. No credit, however, may be taken in respect of a reinsurer that is Rated worse than BBB.

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