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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Rulebook Modules
Prudential — Insurance Business Module (PIN) [VER15/01-18]
Sourcebook Modules
Consultation Papers
Policy Statements
DFSA Codes of Practice
Amendments to Legislation
Media Releases
Financial Markets Tribunal

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PIN A4.5.1

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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.

To view past versions of this module in PDF format, please visit the Archive.

Subject to PIN Rule A4.5.2, an InsurerG must calculate its investment volatility risk component as the sum of the amounts obtained by multiplying the value of each Invested AssetG with the relevant percentage applicable to that asset as set out in the following table.

Asset %
(a) All bonds up to 1 year to maturity 1.0
(b) Bonds between 1 and 2 years to maturity 2.0
(c) Bonds between 2 and 5 years to maturity 4.0
(d) Bonds between 5 and 10 years to maturity 6.0
(e) All other bonds 8.0
(f) Equity investments* 15.0
(g) Preference shares 6.0
(h) Land and buildings 18.0
*Note: Item (f) includes equity shares, participations in collective investment schemes (whether or not the underlying investments are themselves equity investments), participations in joint ventures, and certificates of Mudaraba and Musharaka.

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