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PIN A6.2.2

Subject to Rules PIN A6.2.4, PIN A6.2.5, and PIN A6.2.6, an Insurer must calculate its Minimum Segmental Capital Requirement according to the following applicable formula:

(a) for an Insurer, other than a Captive Insurer: MCR = DRC + IVRC + OARC + OLRC + CRC + SFAC + URC + RRC + LIRC + AMRC;
(b) for a Class 1 Captive Insurer: MCR = higher of URC and RRC; and
(c) for a Class 2 and Class 3 Captive Insurer: MCR = DRC + IVRC + URC + RRC;

where:

Term Definition
MSCR Insurer'sMinimum Segmental Capital Requirement;
DRC Insurer's default risk component in respect of that segment;
IVRC Insurer's investment volatility risk component in respect of that segment;
OARC Insurer's off-balance sheet asset risk component in respect of that segment;
OLRC Insurer's off-balance sheet liability risk component in respect of that segment;
CRC Insurer's concentration risk component in respect of that segment;
SFAC Insurer's size factor adjustment component in respect of that segment;
URC Insurer's underwriting risk component in respect of that segment;
RRC Insurer's reserving risk component in respect of that segment;
LIRC Insurer'sLong-Term Insurance risk component in respect of that segment;
AMRC Insurer's asset management risk component in respect of that segment.
Derived from DFSA RM06/2004 (Made 16th September 2004). [VER1/09-04]
[Added] DFSA RMI296/2021 (Made 24th February 2021). [VER17/04-21]