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

BackText onlyPrint

You need the Flash plugin.

Download Macromedia Flash Player



  • PIN A4.2 Minimum capital requirement

    • PIN A4.2.1

      Subject to PIN Rule A4.2.2, an InsurerG must calculate its Minimum Capital RequirementG according to the formula:

      MCR = DRC + IVRC + OARC + OLRC + CRC + SFAC + URC + RRC + LIRC + AMRC

      Where the following definitions apply:

      Term Definition
      MCR Insurer'sG Minimum Capital RequirementG ;
      DRC Insurer'sG default risk component;
      IVRC Insurer'sG investment volatility risk component;
      OARC Insurer'sG off-balance sheet asset risk component;
      OLRC Insurer'sG off-balance sheet liability risk component;
      CRC Insurer'sG concentration risk component;
      SFAC Insurer'sG size factor adjustment component;
      URC Insurer'sG underwriting risk component;
      RRC Insurer'sG reserving risk component;
      LIRC Insurer'sG Long-Term InsuranceG risk component; and
      AMRC Insurer'sG asset management risk component.

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

    • PIN A4.2.2

      The methods of calculation of the components referred to in PIN Rule A4.2.1 are set out in sections PIN A4.4, PIN A4.5, PIN A4.6, PIN A4.7, PIN A4.8, PIN A4.9, PIN A4.10, PIN A4.11, PIN A4.12 and PIN A4.13.


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

    • PIN A4.2.3

      An Insurer'sG Minimum Capital RequirementG must always be equal to or higher than:

      (a) in the case of a Class 1 Captive InsurerG , $ 150,000;
      (b) in the case of a Class 2 Captive InsurerG , $ 250,000;
      (c) in the case of a Class 3 Captive InsurerG , $ 1,000,000; and
      (d) in the case of all other InsurersG , $ 10,000,000.
      Derived from DFSA RM06/2004 (Made 16th September 2004). [VER1/09-04]
      [Amended] RM46/2007 (Made 5th July 2007) [VER6/07-07]