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PIN A4.5.1

Subject to PIN Rule A4.5.2, an Insurer must calculate its investment volatility risk component as the sum of the amounts obtained by multiplying the value of each Invested Asset with the relevant percentage applicable to that asset as set out in the following table.

Asset %
(a) All bonds up to 1 year to maturity 1.0
(b) Bonds between 1 and 2 years to maturity 2.0
(c) Bonds between 2 and 5 years to maturity 4.0
(d) Bonds between 5 and 10 years to maturity 6.0
(e) All other bonds 8.0
(f) Equity investments* 15.0
(g) Preference shares 6.0
(h) Land and buildings 18.0
*Note: Item (f) includes equity shares, participations in collective investment schemes (whether or not the underlying investments are themselves equity investments), participations in joint ventures, and certificates of Mudaraba and Musharaka.

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