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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
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Prudential — Insurance Business Module (PIN) [VER15/01-18]
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PIN A4.4.1

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The definitive version of DFSA handbook text is the PDF version as that is the text of the instrument as made and published by the DFSA.

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An InsurerG must calculate its default risk component as the sum of the amounts obtained by multiplying the value of each asset of the InsurerG with the percentage applicable to that asset, as set out in the tables contained in this RuleG and subject to the provisions of Rules PIN A4.4.2, PIN A4.4.5, PIN A4.4.6 and PIN A4.4.7.

(a) Assets that are Invested AssetsG

Asset %
(a) Bonds RatedG 'AAA', issued by a Government or Government agency 0.0
(b) Bonds not included in (a), RatedG 'A' or better 0.4
(c) Bonds RatedG 'BBB' 3.3
(d) Bonds RatedG 'BB' 7.5
(e) Bonds RatedG 'B' 13.7
(f) Bonds RatedG 'CCC' 20.2
(g) Other RatedG bonds 30.0
(h) Secured loans — performing 2.0
(i) Secured loans — Non-PerformingG 14.0
(j) Loans to directors of the InsurerG or to directors of RelatedG parties, or to the dependent relatives of such directors 100.0
(k) Unsecured loans to employees (except loans of less than $1,000) 100.0
(l) Other bonds and loans 50.0
(b) Assets that are not Invested AssetsG

Asset %
(a) Reinsurance recoverable from:  
  i. reinsurers RatedG 'AAA' 0.5
ii. reinsurers RatedG 'AA' 1.2
iii. reinsurers RatedG 'A' 1.9
iv. reinsurers RatedG 'BBB' 4.7
v. reinsurers RatedG 'BB' 9.6
vi. reinsurers RatedG 'B' 23.8
vii. reinsurers RatedG 'CCC' 49.7
viii. reinsurers RatedG 'R' 50.0
ix. other reinsurers 25.0
(b) Other assets 3.0

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