2

Capital Resources Table

2.1

A firm must use the following table to calculate its capital resources pursuant to Insurance Company – Capital Resources 2.1:

Total tier one capital after deductions = D - E

Type of capitalRelated rulesStage
Core tier one capital A
Permanent share capital Insurance Company – Capital Resources 5.1
Profit and loss account and other reserves (taking into account interim net losses) Insurance Company – Capital Resources 5.2 to 5.4
Share premium account Insurance Company – Capital Resources 5.5 to 5.6
Positive valuation differences Insurance Company – Capital Resources 5.7
Fund for future appropriations Insurance Company – Capital Resources 5.13
Perpetual non-cumulative preference shares B
Perpetual non-cumulative preference shares Insurance Company – Capital Resources 6.1
Innovative tier one capital C
Innovative tier one instruments Insurance Company – Capital Resources 6.2 to 6.7
Total tier one capital before deductions = A + B + C D
Deductions from tier one capital E
Investments in own shares None
Intangible assets Insurance Company – Capital Resources 8.1
Amounts deducted from technical provisions for discounting and other negative valuation differences Insurance Company – Capital Resources 5.7 to 5.11
Total tier one capital after deductions = D- E F
Upper tier two capital G
Upper tier two capital Insurance Company – Capital Resources 10
Lower tier two capital H
Lower tier two capital Insurance Company – Capital Resources 11
Total tier two capital = G + H I
Positive adjustments for affiliated companies J
Affiliated companies that have a Part 4A permission (other than insurance undertakings) Insurance Company – Capital Resources 12.3
Total capital after positive adjustments for insurance undertakings but before deductions = F + I + J K
Deductions from total capital L
Inadmissible assets Insurance Company – Capital Resources 12.1 and 13.1
Assets in excess of market risk and counterparty limits Insurance Company – Exposure Limits 7.2 to 7.4
Affiliated companies that are ancillary services undertakings Insurance Company – Capital Resources 12.2
Negative adjustments for affiliated companies that have a Part 4A permission (other than insurance undertakings) Insurance Company – Capital Resources 12.3
Total capital resources after deductions = K - L M