W 128/09 PIN — Dubai Holding Insurance Services PCC Limited
WAIVER AND MODIFICATION NOTICE
|To||Dubai Holding Insurance Services PCC Limited|
c/o Marsh Management Services (Dubai) Limited
Level 13 Al Gurg Tower, Riggat Al Buteen, Deira, Dubai, UAE
|DFSA Firm Reference No.||F000774|
THE DFSA HEREBY GIVES NOTICE THAT:
|PIN||Rules PIN A6.9.1 and PIN A6.9.2|
The Rules specified in the left hand column are modified to the extent shown in the right hand column of the table below. In this table, underlining indicates new text and striking through indicates deleted text, otherwise the Rule remains unaltered. Where a significant number of the paragraphs of the Rule remain un-altered the entire Rule may not be reproduced in the table. In such circumstances the un-altered parts of the Rule will be referred to by the relevant identifying paragraph number or letter, as the case may be.
(1) An Insurer must calculate its default risk component as the sum of the amounts obtained by multiplying the value of each asset of the Insurer with the percentage applicable to that asset, as set out in the tables contained in this Rule and subject to the provisions of Rules A4.4.2, A4.4.5, A4.4.6 and A4.4.7.
(a) Assets that are Invested Assets
(b) Assets that are not Invested Assets
(2) For the purposes of this Rule and Rule A6.8.1, an intra-group loan is a "qualifying intra-group loan" where it meets all of the following criteria:
(a) the loan is made to a member of the Insurer's Group;
(b) the loan does not involve the $50,000 Minimum Non-Cellular Capital Requirement under Rules A6.2.4 or the $50,000 Minimum Cellular Capital Requirement under Rule A6.2.5;
(c) the loan repayment is for a limited period no longer than 12 months and no automatic rollover is permitted;
(d) the loan attracts a commercial rate of interest;
(e) the loan agreement contains a condition that the loan is repayable immediately on the instruction of the DFSA; and
(f) the loan has been approved by the DFSA for the purposes of this Rule.
(3) An Insurer must ensure that it holds the amounts referred to in (2)(a) as cash.
Subject to 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.
Subject to Rules A6.2.4, A6.2.5, and A6.2.6, an Insurer must calculate its Minimum Segmental Capital Requirement according to the formula:
MSCR = DRC + IVRC + OARC + OLRC + CRC
An Insurer is required to calculate a concentration risk component in respect of a segment if the segment has, as at the Solvency Reference Date, an investment exposure to a single counterparty or group of Related counterparties, or to a single property, that exceeds 10% of the adjusted segmental capital resources except to the extent that the investment exposure is:
(a) a qualifying intra-group loan under Rule 4.4.1(2); or
(b) cash held with a bank that is regulated by a central bank or other Financial Services Regulator
This notice comes into effect on the date of issue of this notice and remains in force until further notice.
The provisions in this notice are to be construed in accordance with GEN section 6.2 as if these provisions are provisions of the Rulebook.
Defined terms are identified in this notice by the capitalisation of the initial letter of a word or of each word in a phrase and are defined in the Glossary (GLO). Unless the context otherwise requires, where capitalisation of the initial letter is not used, an expression has its natural meaning.
THIS NOTICE WAS ISSUED UNDER ARTICLE 25 OF THE REGULATORY LAW 2004 BY:
|Name :||Ian Johnston|
|Position :||Deputy Chief Executive|
DATE OF ISSUE: