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  • Investments in Non-Insurance Subsidiaries and Associates

    • CA-4.2.1

      Investments in subsidiaries and associates that are not carrying out regulated insurance services as defined in Chapter AU-1.4, must be valued at an amount not exceeding the insurance firm's proportionate share of the subsidiary's or associate's net asset value, determined as if that subsidiary or associate applied these Rules in determining its net asset value.

      Amended: January 2007

    • CA-4.2.2

      The net asset value determined in Paragraph CA-4.2.1 must be reduced for any amounts that cannot be made available to the insurance firm in the ordinary course of business. This includes but is not limited to:

      (a) Required solvency margins, base capital requirements or any other amounts required to be maintained in order to comply with regulatory requirements applicable to the subsidiary or associate in Bahrain or any other jurisdiction. This restriction applies to any subsidiary or associate (including banks and investment firms) subject to regulation in any jurisdiction;
      (b) Assets subject to currency control restrictions; and
      (c) Surplus assets in long-term insurance funds, as these assets belong to the long term policyholders.
      Amended: January 2007

    • CA-4.2.3

      Where a subsidiary or associate carries on a regulated activity either in Bahrain or any other jurisdiction, an insurance firm may, with the consent of the CBB, determine the net asset value of that subsidiary or associate (as specified in Paragraph CA-4.2.1) in accordance with the Rules applicable in the jurisdiction where that subsidiary or associate has both its head office and principal supervisor.

      Amended: January 2007

    • CA-4.2.4

      In determining the net asset value of a subsidiary or associate (as specified in Paragraph CA-4.2.1) where that subsidiary or associate is not carrying out regulated insurance services, if the value of any single asset under Paragraph CA-4.2.1 exceeds 5% of the insurance business amount, the admissible value of the said asset for the purpose of this Paragraph must be restricted to 5% of the insurance business amount.

      Amended: January 2007