PIN A5.5 Guidance

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

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