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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 A7.4 Adjusted fund equity

    • PIN A7.4.1

      An InsurerG must calculate its adjusted fund equity in respect of each Long-Term Insurance FundG as set out in this section.

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

      • PIN A7.4.1 Guidance

        The purpose of these adjustments is to provide a consistent basis for the determination of the Insurer'sG Adjusted Fund Capital ResourcesG and to exclude from those resources assets that may not be readily realisable for the purposes of meeting Insurance LiabilitiesG of the Long-Term Insurance FundG .

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

    • PIN A7.4.2

      The following items must be deducted from base fund capital, to the extent that the InsurerG has not excluded them in determining its base fund capital:

      (a) any amounts in respect of appropriations to be made from the Long-Term Insurance FundG in respect of the current year, including dividends, distributions by Takaful InsurersG of surplus, bonuses, pensions and welfare charges that are determined on the basis of the current year's profit, whether or not the amounts have been approved by the InsurerG for payment;
      (b) the amount of any investment by the Long-Term Insurance FundG or by a SubsidiaryG of the Long-Term Insurance FundG , in the Insurer'sG own capital;
      (c) the amount of any tax liability that would be attributable to unrealised gains on investments, if those gains were realised;
      (d) the amount of deferred acquisition costs;
      (e) the amount of any deferred tax asset;
      (f) the amount of any goodwill, patents, service rights, brands and any other intangible items;
      (g) the amount of any Zakah or charity fund of a Takaful InsurerG , maintained within the Long-Term Insurance FundG ;
      (h) the amount of any operating assets, including inventories, plant and equipment, and vehicles; and
      (i) the amount of any assets that may not be applied to meet Insurance LiabilitiesG attributable to the Long-Term Insurance FundG (for example, assets that are subject to fixed or floating charges, mortgages or other security).

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