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PIN A4.5 Guidance

The purpose of the investment volatility risk component is to require an Insurer to set aside capital to cover the risk of deterioration in the values of Invested Assets. Invested Assets that are linked to liabilities of Investment-Linked Insurance contracts are exempted from the calculation, since there is a direct correlation between the values of the assets and the values of the liabilities to which they are linked.


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