PINS 8.1.6 Investment concentration limits for companies

(1) For an insurer that is a limited liability company incorporated under the Companies Regulations 2005, investments representing a concentration of exposures to single or related counterparties (whether on or off-balance sheet and including intra-group entities) must not exceed whichever is the lesser of the following amounts:
(a) 20% of the insurer's applicable assets;
(b) the insurer's eligible capital.
Example

An insurer's deposits in the same bank will be subject to the investment concentration limit because it is an exposure to a single counterparty.
(2) Applicable assets of an insurer means the insurer's total assets less reinsurance receivables, premiums receivables, deferred acquisition costs, fixed assets, intangible assets and other assets that are not held for investment purposes.

Example

In calculating the value of applicable assets, items such as deferred tax assets, prepayments, advances and accrued income should be deducted from the insurer's total assets.
(3) Assets that are excluded from eligible capital in accordance with paragraph (G) of the table in rule 4.2.2 are not subject to the concentration limit.
Inserted by QFCRA RM/2013-1 (as from 1st January 2015).