PIN A5.10 Guidance

1. This section acts to limit hybrid cellular capital to 15% of an Insurer's adjusted cellular equity in respect of a Cell.
2. The purpose of the hybrid cellular capital adjustment is to limit the extent to which an Insurer may rely for its Adjusted Cellular Capital Resources in respect of a Cell on instruments that do not or may not constitute permanent capital of that Cell. Such instruments include share capital contributed by an investor where the investor's investment in the Cell is financed by debt rather than by the investor's own capital.

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