Dubai Financial Services Authority (DFSA)
Laws
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PIN A4.4.1
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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]
