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Application provision

1.1 Unless otherwise stated, this Part applies to a non-directive insurer other than a non-directive friendly society.

1

Application

1.1

01/01/2016

Unless otherwise stated, this Part applies to a non-directive insurer other than a non-directive friendly society.

2

Capital Resources Table

2.1

01/01/2016

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