• PINS Part 4.2 PINS Part 4.2 Calculation of eligible capital

    Editorial changes (as from 1 January 2015).

    • PINS 4.2.1 PINS 4.2.1 Calculating eligible capital

      (1) An insurer must calculate its eligible capital in accordance with the table in PINS Rule 4.2.2 and the provisions in PINS Parts 4.3 through to 4.7.
      (2) A √ in the table in PINS Rule 4.2.2 denotes that the item is included in the calculation of an insurer's eligible capital, whereas an X denotes that the item is not included.
      Amended by QFCRA RM/2015-3 (as from 1st January 2016).

      • PINS 4.2.1 Guidance

        The Regulatory Authority may recognise forms of capital instruments in addition to those set out in the table in PINS Rule 4.2.2 for inclusion in an insurer's eligible capital where those instruments comply with accepted international standards.

        Amended by QFCRA RM/2012-5 (as from 1st July 2013).

    • PINS 4.2.2 Eligible capital calculation table

      The eligible capital calculation table is as follows:

        Takaful entity All other Insurers
      (A) Tier 1 capital:
      Permanent share capital
      Audited reserves
      Share premium account
      Externally verified interim net profits
      Fund for future appropriations
      Owners' equity in a takaful entity X
      (B) Deductions from tier 1 capital:
      Investments in own shares
      Intangible assets
      Interim net losses
      (C) Tier 1 capital after deductions = A-B
      (D) Upper tier 2 capital:
      Perpetual qualifying hybrid capital instruments
      Fixed dividend ordinary shares
      (E) Lower tier 2 capital
      Subordinated debt
      Fixed term preference shares
      (F) Total tier 1 capital plus tier 2 capital = C+D+E
      (G) Deductions from Total of tier 1 and tier 2 capital:
      Investments in subsidiaries and associates
      Connected lending of a capital nature
      Inadmissible assets
      Amount in any zakah fund X
      (H) Total tier 1 capital plus tier 2 capital after deductions = F-G = Total eligible capital

      Amended by QFCRA RM/2015-3 (as from 1st January 2016).