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  • Capital Available: Tier 1 and Tier 2

    • CA-1.2.5

      An insurance firm's capital available, for the purposes of this Module, comprises two tiers. Tier 1, or core capital, comprises the highest quality capital elements that fully meet all the essential characteristics of capital. Tier 2, or supplementary capital, comprises other instruments that, to varying degrees, fall short of the quality of Tier 1 capital but nonetheless contribute to the overall financial strength of the insurance firm. Insurance firms may hold Tier 2 capital in excess of the limits in Paragraph CA-1.2.7, but any such excess is not counted as capital available for the purposes of the requirements in this Module.

      Amended: January 2007

    • CA-1.2.6

      The capital available of an insurance firm comprises the sum of its Tier 1 and Tier 2 capital resources, subject to the limits in Paragraph CA-1.2.7.

      Amended: January 2007

    • CA-1.2.7

      Total Tier 2 capital cannot exceed 100% of total Tier 1 capital. Lower Tier 2 capital of the type identified in Paragraph CA-1.2.12 (f), (g) and (h) cannot exceed more than 50% of total Tier 1 capital.

      Amended: January 2007