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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 A5.4 Adjusted non-cellular equity

    • PIN A5.4.1

      An InsurerG must calculate its adjusted non-cellular equity by adding items to and deducting them from its base non-cellular capital, as set out in this section.

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

      • PIN A5.4.1 Guidance

        1. The purpose of these adjustments is to provide a consistent basis for the determination of the Insurer'sG Adjusted Non-Cellular Capital ResourcesG and to exclude from those resources assets that may not be readily realisable for the purposes of meeting any Non-Cellular LiabilitiesG of the InsurerG .
        2. A Takaful InsurerG may not count as non-cellular capital amounts loaned to Insurance FundsG that are attributable to CellsG , as those amounts will be counted towards base cellular capital of the CellsG concerned.

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

    • PIN A5.4.2

      The following items must be added to base non-cellular capital, to the extent that the InsurerG has excluded them in determining its base non-cellular capital:

      (a) any minority interests in companies that are SubsidiariesG of the InsurerG , where the Insurer'sG interest in those companies constitutes a Non-Cellular AssetG of the InsurerG ; and
      (b) any amount in respect of dividends to be paid by the InsurerG in the form of shares other than Cell SharesG .

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

    • PIN A5.4.3

      The following items must be deducted from base non-cellular capital, to the extent that the InsurerG has not excluded them in determining its base non-cellular capital, or has added them to base non-cellular capital under PIN Rule A5.4.2:

      (a) any amounts in respect of appropriations to be made from profit in respect of the reporting period most recently ended, including dividends, bonuses, pensions and welfare charges that are determined on the basis of the profit of that reporting period, whether or not the amounts have been approved by the InsurerG for payment;
      (b) Owners' EquityG in a Takaful InsurerG that does not, under the constitutional documents of the InsurerG or the terms of insurance contracts or both, participate in the surpluses and losses of Takaful business;
      (c) the amount of any investment by the InsurerG or by a SubsidiaryG of the InsurerG , in the Insurer'sG own shares;
      (d) the amount of any tax liability that would be attributable to unrealised gains on investments, if those gains were realised;
      (e) the amount of any deferred tax asset;
      (f) the amount of any goodwill, patents, service rights, brands and any other intangible items;
      (g) in a Takaful InsurerG , the amount of any loan made from the Owners' EquityG to an Insurance FundG that is attributable to a CellG , that has not been repaid as at the Solvency Reference DateG ;
      (h) the amount of any Zakah or charity fund of a Takaful InsurerG ;
      (i) the amount of any operating assets, including inventories, plant and equipment, and vehicles; and
      (j) the amount of any other assets that may not be applied to meet Non-Cellular LiabilitiesG of the InsurerG .

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