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Dubai Financial Services Authority (DFSA): Contents

Dubai Financial Services Authority (DFSA)
Recognised Jurisdictions and Funds
Declaration Notices
Financial Markets Tribunal
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

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  • PIN A5.5 Hybrid non-cellular capital adjustment

    • PIN A5.5 Guidance

      1. This section acts to limit hybrid non-cellular capital to 15% of an Insurer'sG adjusted non-cellular equity.
      2. The purpose of the hybrid non-cellular capital adjustment is to limit the extent to which an InsurerG may rely for its Adjusted Non-Cellular Capital ResourcesG on instruments that do not or may not constitute permanent capital of the InsurerG . Such instruments include share capital contributed by a Holding CompanyG , where the Holding Company'sG investment is financed by debt rather than by its own capital.

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

    • PIN A5.5.1

      Subject to PIN Rule A5.5.2, hybrid non-cellular capital includes the following items:

      (a) subordinated debt;
      (b) preference shares; and
      (c) ordinary shares issued by an InsurerG to a Holding CompanyG whose own paid-up ordinary share capital, taken together with its general reserves, is lower than that of the InsurerG .

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

    • PIN A5.5.2

      Hybrid non-cellular capital excludes any instrument that is attributable to a CellG .

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

    • PIN A5.5.3

      Subject to PIN Rule A5.5.4, an InsurerG must calculate its hybrid non-cellular capital adjustment as the amount by which the total amount of hybrid non-cellular capital exceeds 15% of adjusted non-cellular equity.

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

    • PIN A5.5.4

      The DFSAG may at its discretion and on the application of an InsurerG , permit that InsurerG to apply PIN Rule A5.5.3 as though the figure of 15% was replaced with a higher figure approved in writing by the DFSAG . The approved figure may not be more than the actual percentage which the hybrid non-cellular capital represents of adjusted non-cellular equity, and may not in any case exceed 30%.

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