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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 App10 Reporting to the DFSA

    • PIN A10.1 Purpose and general provisions

      • PIN A10.1.2

        In this appendix and the forms, unless the term ‘Annual Regulatory ReturnG ’ or ‘Quarterly Regulatory ReturnG ’ is used, the term ‘ReturnG ’ includes both of those ReturnsG .

        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]

        • PIN A10.1.2 Guidance

          1. The form and content of the ReturnsG differs according to the characteristics of the InsurerG .
          2. General requirements relating to the recognition and measurement of assets and liabilities are dealt with in PIN chapter 5.
          3. The ReturnsG are provided in PRU.
          4. This appendix sets out some matters relating to content and presentation of the information contained in the ReturnsG . Further guidance in relation to the preparation and submission of the ReturnsG is provided in PRU and the DFSA's electronic prudential reporting system.
          Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]
          [Amended] DFSA RM54/2007 (Made 1st December 2007). [VER9/12-07]

      • PIN A10.1.1

        This appendix applies to all InsurersG .

        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]

    • PIN A10.2 Completion of forms for global, cell, fund and DIFC business reporting units

      • PIN A10.2 Guidance

        Separate ReturnsG are completed for Insurers'G entire business, and for those parts of the business that are subject to separate capital adequacy requirements, namely CellsG , Long-Term Insurance FundsG , and DIFCG business. These parts, and the entire business, are described as ‘reporting units’ because a ReturnG is required for each. An InsurerG may therefore have to submit more than one set of ReturnsG .

        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]

      • PIN A10.2.1

        A ReturnG must be completed in respect of each of the reporting units set out in this section that applies to the InsurerG .

        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]

      • PIN A10.2.2

        There are four types of reporting units in respect of which an InsurerG may be required to submit a ReturnG . These are referred to in this appendix and the forms as the global reporting unit, the CellG reporting unit, the fund reporting unit and the DIFCG business reporting unit. The ReturnsG in respect of these reporting units are referred to respectively in this appendix and the forms as the Global ReturnG , the Cell ReturnG , the Fund ReturnG and the DIFC Business ReturnG .

        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]
        [Amended] DFSA RM51/2007 (Made 1st November 2007). [VER8/11-07]

      • PIN A10.2.3

        Every InsurerG that is required by PIN chapter 6 to complete a ReturnG must complete a Global ReturnG . A Global ReturnG has the following characteristics:

        (a) Subject to (b), a Global ReturnG includes all of the assets, liabilities, equity, revenues and expenses of the InsurerG , regardless of the residency status or location of the Insurer, of the customer or of any asset or liability.
        (b) The Global ReturnG of a Protected Cell CompanyG does not include any assets, liabilities, equity, revenues or expenses that are attributable to a CellG .
        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]
        [Amended] DFSA RM54/2007 (Made 1st December 2007). [VER9/12-07]

      • PIN A10.2.4

        Except as provided otherwise in this appendix, an InsurerG that is a Protected Cell CompanyG must complete a Cell ReturnG in respect of each CellG that it maintains. A Cell ReturnG includes all of the assets, liabilities, equity, revenues and expenses attributable to the CellG , regardless of the residency status or location of the customer or of any asset or liability. An InsurerG to which this Rule applies is not required to complete a Quarterly Regulatory ReturnG in respect of any CellsG maintained by it that are Captive CellsG .

        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]
        [Amended] DFSA RM54/2007 (Made 1st December 2007). [VER9/12-07]

      • PIN A10.2.5

        Except as provided otherwise in this appendix, an InsurerG that maintains a Long-Term Insurance FundG must complete a Fund ReturnG in respect of each Long-Term Insurance FundG that it maintains. A Fund ReturnG includes all of the assets, liabilities, revenues and expenses attributable to the fund, regardless of the residency status or location of the customer or of any asset or liability. An InsurerG to which this Rule applies is not required to complete a Fund ReturnG in the following cases:

        (a) where the InsurerG is deemed to constitute a single, Long-Term Insurance FundG , such that the information contained in the Fund ReturnG would be identical to that in the Global ReturnG ; and
        (b) where a CellG of the InsurerG is deemed to constitute a single, Long-Term Insurance FundG , such that the information contained in the Fund ReturnG would be identical to that in the Cell ReturnG .
        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]
        [Amended] DFSA RM54/2007 (Made 1st December 2007). [VER9/12-07]

        • PIN A10.2.5 Guidance

          PIN A10.2.5 operates to prevent the preparation of duplicate ReturnsG . However, where under this section an InsurerG or a CellG is exempt from the requirement to prepare a Quarterly Regulatory ReturnG because of its captive status, the fund Quarterly Regulatory ReturnG would not be identical and must still be prepared.

          Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]

      • PIN A10.2.6

        An InsurerG that is not a DIFC Incorporated InsurerG must complete a DIFC Business ReturnG . A DIFC Business ReturnG has the following characteristics:

        (a) it includes only liabilities that are Insurance LiabilitiesG of the InsurerG in respect of its DIFCG Insurance BusinessG and assets that are associated with those Insurance LiabilitiesG ; and
        (b) revenues and expenses must be included only to the extent that they are attributable to the Insurer'sG DIFC Insurance BusinessG .
        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]

        • PIN A10.2.6 Guidance

          The assets that are associated with Insurance LiabilitiesG normally include only reinsurance and other recoveries in respect of claims, whether or not incurred, included in Insurance LiabilitiesG . The DIFC Business ReturnG does not include assets such as investments, fixed assets, or receivables other than reinsurance recoveries in respect of Insurance LiabilitiesG .

          Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]

    • PIN A10.3 Content of returns

      • PIN A10.3.1

        (1) The Annual Regulatory ReturnG and Quarterly Regulatory ReturnG comprise the forms in Table 1 to this Rule, together with the Supplementary NotesG pertaining to those forms and the Statement by DirectorsG referred to in PIN Section A10.5.
        (2) In Table 1:
        (a) the column headed 'DIFC Incorporated Insurer' indicates the relevant forms that must be prepared and submitted by an InsurerG that is a DIFC Incorporated InsurerG ; and
        (b) the column headed 'Branch' indicates the relevant forms that must be prepared and submitted by an InsurerG that carries on its business through a BranchG .
        (3) In Table 1, in the columns headed 'Return':
        (a) the letter Q indicates that the relevant form must be prepared and submitted with the Quarterly Regulatory ReturnG ;
        (b) the letter A indicates that the relevant form must be prepared and submitted with the Annual Regulatory ReturnG ;
        (c) the letters A and Q together indicate that the relevant form must be prepared and submitted with the Annual Regulatory ReturnG and the Quarterly Regulatory ReturnG ; and
        (d) the letters N/A indicate that the form is not applicable to the InsurerG .

        Table 1 - Insurer Return Matrix

        Number Name DIFC Incorporated Insurer Branch
            Return Return
        IN10 Statement of Financial Position A/Q N/A
        IN20 Statement of Calculation of Capital Adequacy A/Q N/A
        IN30 Statement of Financial Performance A/Q N/A
        IN40 Statement of Premiums and Reinsurance Expense A/Q A/Q
        IN50 Statement of Claims and Reinsurance and Other Recoveries A/Q A/Q
        IN60 Statement of Movement in Insurance Provisions A/Q A/Q
        IN70 Statement of Investment Income A/Q N/A
        IN80 Statement of Acquisition Expenses A/Q N/A
        IN90 Reconciliation to Financial Statements A/Q N/A
        IN100 Summary Statement of Operations A/Q A/Q
        IN110 Reconciliation of Direct to Total Long-Term Insurance Business A/Q N/A
        IN120 Statement of Direct Long-Term Insurance Business A/Q N/A
        IN130 Statement of Direct Long-Term Insurance Liabilities A/Q N/A
        IN140 Statement of Assets Covering Direct Linked Long-Term Insurance Liabilities A/Q N/A
        IN150 Statement of Assets Covering Non-Linked Long-Term Insurance Liabilities and Minimum Capital Requirement A/Q N/A
        IN160 Calculation of Direct Long-Term Insurance Element of Long-Term Insurance Component A/Q N/A
        IN180 Statement of Claims Development A/Q A/Q
        IN190 Employment Statistics A A
        IN200 Statement of Underwriting Performance A/Q A/Q
        IN210 Statement of Revenue by Jurisdiction A A
        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]
        [Amended] RM46/2007 (Made 5th July 2007). [VER6/07-07]
        [Amended] DFSA RM54/2007 (Made 1st December 2007). [VER9/12-07]
        [Amended] DFSA RM136/2014 (Made 21st August 2014). [VER14/06-14]

      • PIN A10.3.2 [Deleted]

        [Deleted] DFSA RM136/2014 (Made 21st August 2014). [VER14/06-14]

      • PIN A10.3.2

        The forms referred to in PIN Rule A10.3.1 must be prepared for each reporting unit for which an InsurerG is required to submit an Annual Regulatory ReturnG or a Quarterly Regulatory ReturnG as applicable, except where:

        (a) this appendix, the instructional guidelines to the form set out in PRU or the DFSA'sG electronic prudential reporting system states that the form is not required for that reporting unit, or for that InsurerG ; or
        (b) the form would contain no information, in which case the InsurerG may omit the form and present a Supplementary NoteG stating that the form has not been prepared for that reason.
        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]
        [Amended] DFSA RM46/2007 (Made 5th July 2007). [VER6/07-07]
        [Amended] DFSA RM51/2007 (Made 1st November 2007). [VER8/11-07]
        [Amended] DFSA RM54/2007 (Made 1st December 2007). [VER9/12-07]
        [Amended] DFSA RM136/2014 (Made 21st August 2014). [VER14/06-14]

      • PIN A10.3.3

        The forms comprising the ReturnsG are set out in PRU and the DFSA'sG electronic prudential reporting system.

        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]
        [Amended] DFSA RM51/2007 (Made 1st November 2007). [VER8/11-07]
        [Amended] DFSA RM136/2014 (Made 21st August 2014). [VER14/06-14]

      • PIN A10.3.4

        Items must be disclosed in the ReturnsG in accordance with the instructional guidelines set out in PRU and the DFSA'sG electronic prudential reporting system, subject to the effects of other provisions of this appendix.

        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]
        [Amended] DFSA RM51/2007 (Made 1st November 2007). [VER8/11-07]
        [Amended] DFSA RM54/2007 (Made 1st December 2007). [VER9/12-07]
        [Amended] DFSA RM136/2014 (Made 21st August 2014). [VER14/06-14]

      • PIN A10.3.5

        Where an item is described in a ReturnG as the result of a mathematical calculation, that mathematical calculation must be used to determine that item except where these RulesG or the relevant instructional guidelines require otherwise.

        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]
        [Amended] RM46/2007 (Made 5th July 2007). [VER6/07-07]
        [Amended] DFSA RM51/2007 (Made 1st November 2007). [VER8/11-07]
        [Amended] DFSA RM136/2014 (Made 21st August 2014). [VER14/06-14]

        • PIN A10.3.5 Guidance

          The ReturnsG and instruction guidelines are provided in PIN App10, PRU and the DFSA'sG electronic prudential reporting system.

          [Added] DFSA RM51/2007 (Made 1st November 2007). [VER8/11-07]
          [Amended] DFSA RM134/2014 (Made 21st August 2014). [VER5/06-14]

    • PIN A10.4 General provisions relating to the completion of forms

      • PIN A10.4 Guidance

        Annual Regulatory ReturnsG follow the cycle of the Insurer'sG normal statutory reporting, under the Companies Law 2004 in the DIFCG and under equivalent legislation elsewhere. Quarterly Regulatory ReturnsG are presented on a year to date basis at specified dates.

        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]

      • PIN A10.4.1

        Supplementary NotesG must be in accordance with any instructions provided through the DFSA'sG electronic prudential reporting system or specified in PRU. Each Supplementary NoteG must identify the form to which it relates.

        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]
        [Amended] DFSA RM51/2007 (Made 1st November 2007). [VER8/11-07]

      • PIN A10.4.2

        ReturnsG must be presented in the English language.

        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]

      • PIN A10.4.3

        A ReturnG must be presented in United States currency, rounded to thousands of dollars, with no decimal place except where these RulesG or the relevant instructional guidelines require otherwise.

        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]
        [Amended] RM46/2007 (Made 5th July 2007). [VER6/07-07]

      • PIN A10.4.4

        Where the format of a form requires the presentation of comparative information, the comparative information shall be presented according to the following principles:

        (a) In the case of a form forming part of the Annual Regulatory ReturnG , the comparative information shall be that presented in the Annual Regulatory ReturnG for the previous reporting period.
        (b) In the case of a form forming part of the Quarterly Regulatory ReturnG , the comparative information shall be that presented in the Quarterly Regulatory ReturnG for the corresponding quarter in the previous calendar year.
        (c) Comparative information shall be presented unless:
        (i) the InsurerG did not exist at any time during the comparative period (whether or not it was an InsurerG );
        (ii) in the case of a Cell ReturnG or a Fund ReturnG , the CellG or Long-Term Insurance FundG to which the ReturnG relates did not exist at any time during the comparative period; or
        (iii) so far only as concerns the DIFC Business ReturnG , in the case of an Insurer that is not a DIFC Incorporated InsurerG , the InsurerG was not at any time an InsurerG during the comparative period.
        (d) An InsurerG that is required to present comparative information in a ReturnG , and that was not required to prepare a ReturnG in respect of the comparative period, must present comparative information that would have been presented in the ReturnG covering the comparative period, if the InsurerG had been required to prepare that ReturnG .
        (e) Comparative information shall not be changed from the time it was first presented, unless re-presentation is necessary for the interpretation of the ReturnG . Where comparative information is changed, the Insurer must include in the ReturnG a Supplementary NoteG showing the nature of the change and the reason for it.
        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]

      • PIN A10.4.5

        The Annual Regulatory ReturnG , including the Statement by DirectorsG , is subject to audit, except where this appendix or the form instruction guidelines states that a form is not subject to audit.

        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]

      • PIN A10.4.6

        Each page of the Statement by DirectorsG must show:

        (a) the words 'Annual Regulatory ReturnG ' or 'Quarterly Regulatory ReturnG ', as applicable;
        (b) [Deleted]
        (c) the Insurer'sG licence number;
        (d) the Insurer'sG name;
        (e) the reporting period to which the ReturnG relates;
        (f) whether the ReturnG is a global, CellG , FundG or DIFC Business ReturnG ; and
        (g) where the return relates to a CellG or a Long-term Insurance FundG , sufficient information to identify the CellG or Long-term Insurance FundG in question.
        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]
        [Amended] DFSA RM51/2007 (Made 1st November 2007). [VER8/11-07]

      • PIN A10.4.7

        Where this appendix or the form requires information to be presented for different Classes of BusinessG or for different types of insurance contract (for example, direct insurance, facultative reinsurance, proportional reinsurance treaty and non-proportional reinsurance treaty), an InsurerG required to complete the form must present the relevant information in respect of all Classes of BusinessG and types of contract, except under the following circumstances so far as concerns businesses other than Direct Long Term Insurance BusinessG of a DIFC Incorporated InsurerG :

        (a) Where an item of numerical information in respect of a Class of BusinessG for a type of insurance contract is less than two per cent of the total such numerical information in respect of all Classes of BusinessG for that type of insurance contract, the InsurerG may aggregate that numerical information for that Class of BusinessG for that type of insurance contract with the same item of information for the Class of BusinessG for that type of contract in which that item of information is the largest.
        (b) Where an item of numerical information in respect of a type of insurance contract for a Class of BusinessG is less than two per cent of the total such numerical information in respect of all types of insurance contract for that Class of BusinessG , the InsurerG may aggregate that numerical information for that type of insurance contract for that Class of BusinessG with the same item of information for the type of insurance contract for that Class of BusinessG in which that item of information is the largest.
        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]
        [Amended] RM46/2007 (Made 5th July 2007). [VER6/07-07]

        • PIN A10.4.7 Guidance

          This RuleG establishes de minimis limits for an Insurer in respect of detailed numerical information presented by Class of BusinessG or by type of insurance contract. These de minimis limits do not apply for Direct Long-Term Insurance BusinessG carried on by a DIFC Incorporated InsurerG . Amounts below the de minimis limits may be aggregated together with other items of information in the same line or column of a form. InsurersG are not required to apply the sub-sections in the order that they are set out. However, InsurersG should ensure that the ReturnsG continue to comply with both sub-sections after applying either. It is possible that applying the second sub-section to be applied could affect compliance with the first.

          Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]
          [Amended] RM46/2007 (Made 5th July 2007). [VER6/07-07]
          [Amended] DFSA RM54/2007 (Made 1st December 2007). [VER9/12-07]

      • PIN A10.4.8

        Where an InsurerG arranges its affairs such that a CellG or Long-Term Insurance FundG maintained by it pays or receives income in the form of interest, dividends, rental, recharge of management expenses or other investment income, from another reporting unit of the Insurer, that income must be shown gross as an expense in the reporting unit bearing the expense, and as income in the reporting unit receiving the income. Where, however, the same reporting unit records the income and the expense, the two must be netted.

        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]
        [Amended] DFSA RM51/2007 (Made 1st November 2007). [VER8/11-07]

        • PIN A10.4.8 Guidance

          This RuleG establishes accounting policy in respect of transactions between reporting units. Internal recharges within an InsurerG should be shown as such where they are external to a reporting unit of that InsurerG . However, where a reporting unit (for example, the Global ReturnG of an InsurerG that is not a Protected Cell CompanyG , and that maintains one or more Long-Term Insurance FundsG ) includes both 'sides' of the internal transaction, the internal transaction must be eliminated by netting the income and expense.

          Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]
          [Amended] DFSA RM51/2007 (Made 1st November 2007). [VER8/11-07]
          [Amended] DFSA RM54/2007 (Made 1st December 2007). [VER9/12-07]

    • PIN A10.5 Statement by directors

      • PIN App10.5 Guidance

        1. The Statement by DirectorsG forms a part of the Annual Regulatory ReturnG or the Quarterly Regulatory ReturnG . By providing these statements, the directors confirm that the ReturnsG have been properly prepared and that the Insurer complies with applicable prudential rules.
        2. The Statement by DirectorsG is set out as statements that must be made, but circumstances may arise when a statement cannot be made because it would be untrue to do so. Under such circumstances this section provides for the directors to provide an explanation in place of the omitted statement.
        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]
        [Amended] DFSA RM51/2007 (Made 1st November 2007). [VER8/11-07]

      • PIN A10.5.1

        Every ReturnG must include a Statement by DirectorsG , in accordance with this section.

        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]

      • PIN A10.5.2

        The Statement by DirectorsG forming part of the Annual Regulatory ReturnG must state that:

        (a) the Annual Regulatory ReturnG has been prepared in accordance with the provisions of PIN chapter 6, this appendix, PRU chapter 3 and the DFSA's electronic prudential reporting system;
        (b) proper Accounting RecordsG have been maintained and adequate information obtained by the InsurerG ;
        (c) appropriate systems and controls have been established and maintained by the Insurer over its transactions and records;
        (d) the InsurerG has complied with the provisions of PIN chapter 4 throughout the reporting period; and
        (e) the InsurerG complies, as at the date of the statement, with those provisions of PIN that are applicable to it.
        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]
        [Amended] DFSA RM51/2007 (Made 1st November 2007). [VER8/11-07]
        [Amended] DFSA RM54/2007 (Made 1st December 2007). [VER9/12-07]
        [Amended] DFSA RM128/2013 (Made 14th July 2013). [VER13/07-13]

      • PIN A10.5.3

        The Statement by DirectorsG forming part of the Quarterly Regulatory ReturnG must state that:

        (a) the Quarterly Regulatory ReturnG has been prepared in accordance with the provisions of PIN chapter 6, this appendix, PRU chapter 3 and the DFSA'sG electronic prudential reporting system; and
        (b) the InsurerG complies, as at the date of the statement, with those provisions of PIN that are applicable to it.
        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]
        [Amended] DFSA RM54/2007 (Made 1st December 2007). [VER9/12-07]

      • PIN A10.5.4

        If in the opinion of the directors it would be untrue to make one or more of the statements referred to in PIN Rule A10.5.2 and PIN Rule A10.5.3 the statements concerned must be omitted and the InsurerG must instead state in a Supplementary NoteG that the directors are unable to make the statements in question, and must give the reasons for that inability.

        Derived from DFSA RM44/2007 (Made 1st June 2007). [VER5/06-07]
        [Amended] DFSA RM54/2007 (Made 1st December 2007). [VER9/12-07]