Home   Browse contents   View updates   Search  
     Quick search
Go
   

Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Laws
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
Notices
Financial Markets Tribunal
Archive

Whole SectionText only Print Print Manager Link


PIN A4.8.3



Whole Section PDF

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.

An InsurerG must calculate its concentration risk component as the sum of the amounts obtained by applying to each investment exposure that exceeds 10% of the Insurer'sG Adjusted Capital ResourcesG the relevant formula set out in the following table, subject to PIN Rule A4.8.4.

Exposure expressed as a percentage of adjusted capital resources Formula to determine concentration risk component
(a) Over 10 up to 25 20% of the amount by which the investment exposure exceeds 10% of Adjusted Capital ResourcesG , up to a limit equivalent to 3% of Adjusted Capital ResourcesG .
(b) Over 25 up to 50 3% of the amount of Adjusted Capital ResourcesG , plus 40% of the amount by which the investment exposure exceeds 25% of Adjusted Capital ResourcesG , up to a limit in total equivalent to 13% of Adjusted Capital ResourcesG .
(c) Over 50 up to 75 13% of the amount of Adjusted Capital ResourcesG , plus 60% of the amount by which the investment exposure exceeds 50% of Adjusted Capital ResourcesG , up to a limit in total equivalent to 28% of Adjusted Capital ResourcesG .
(d) Over 75 up to 100 28% of the amount of Adjusted Capital ResourcesG , plus 80% of the amount by which the investment exposure exceeds 75% of Adjusted Capital ResourcesG , up to a limit in total equivalent to 48% of Adjusted Capital ResourcesG .
(e) Over 100 48% of the amount of Adjusted Capital ResourcesG , plus 100% of the amount by which the investment exposure exceeds 100% of Adjusted Capital ResourcesG .

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