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  • Counterparty Exposure Limits

    • CA-4.2.33

      The admissible value for counterparty exposure limit is:

      (a) Where the counterparty is an individual or an unincorporated body of persons, 5% of the insurance business amount;
      (b) Where the counterparty is a government of a jurisdiction, other than a Zone A Country, GCC country, the Kingdom of Bahrain and any other jurisdiction approved by the CBB, the jurisdiction together with all the public bodies, local authorities or nationalised industries of that jurisdiction, 10% of the insurance business amount;
      (c) Where the counterparty is a body corporate or group, and:
      (i) The counterparty is an approved financial institution, 25% of the insurance business amount or BD 1.5 million, whichever is the larger for all exposures including short term (3 months or less) deposits;
      (ii) The counterparty is an approved financial institution, 10% of the insurance business amount or such lower amount as the insurance firm may decide for all exposures other than short term deposits; and
      (iii) The counterparty is not an approved financial institution, 10% of the insurance business amount for all exposures to that counterparty.
      Amended: April 2012
      Amended: January 2007

    • CA-4.2.34

      For the purposes of Section CA-4.2, 'insurance business amount' means 'general insurance business amount' or 'long-term insurance business amount' as follows:

      (a) In terms of general insurance business, the general insurance business amount is the value of the insurance firm's assets (other than long-term insurance business assets) and excluding reinsurance recoveries as determined in accordance with Chapter CA-4; and
      (b) In terms of long-term insurance business, the long-term insurance business amount is the value of the insurance firm's assets (other than those relating to general insurance business) and excluding reinsurance recoveries and assets required to match property-linked liabilities in accordance with Chapter CA-4.
      Amended: January 2007

    • CA-4.2.35

      For purposes of Paragraph CA-4.2.34, the value of an insurance firm's assets refers to the valuation assigned in this section, but does not refer to the admissible value of these assets, i.e. after adjusting for category limits and counterparty limits.

      Amended: January 2007
      Amended: October 2007