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  • Determination of Available Capital

    • CA-8.4.2

      The determination of available capital eligible to meet the solvency requirements is the total of:

      (a) The participants' fund(s) net admissible assets as defined under Paragraph CA-8.4.3 in all funds; and
      (b) The capital available of the shareholder fund as determined under Section CA-1.2, excluding any assets of the participants' fund(s).
      Amended: April 2014
      Amended: October 2008
      Amended: January 2007

    • CA-8.4.3

      Every participants' fund must calculate its net admissible assets to meet the solvency requirements of the Takaful firm. The admissible assets are calculated in accordance with Chapter CA-4 and are reduced by any of the participants' fund(s) liabilities (including any Qard Hassan payable to the shareholder fund) and excluding 55% of any unrealised gains to arrive at the net admissible assets.

      Amended: April 2014
      Amended: October 2008

    • CA-8.4.4

      For the purpose of calculating the admissible assets of the participants' fund(s) referred to under Paragraph CA-8.4.3, the insurance business amount referred to in Paragraph CA-4.2.34 means:

      (a) In the case of general Takaful business, the general Takaful insurance business amount is the value of the general participants' fund(s)'s assets (other than family participants' fund(s) assets) and allocated earmarked assets to the insurance business amount (see Paragraphs AA-4.3A.6 to AA-4.3A.11 for actuarial requirements) from the shareholder fund and excluding any reinsurance/retakaful recoveries as determined in accordance with Chapter CA-4; and
      (b) In the case of family Takaful business, the family Takafulinsurance business amount is the value of the family participants' fund(s)'s assets (other than general participants' fund(s) assets) and allocated earmarked assets to the insurance business amount from the shareholder fund and excluding reinsurance/retakaful recoveries and assets required to match property-linked liabilities in accordance with Chapter CA-4.
      Amended: April 2014
      Amended: October 2008
      Amended: January 2007

    • CA-8.4.5

      Any earmarked assets used under Paragraph CA-8.4.4 must be adjusted to account for any Qard Hassan that may be granted as outlined under Paragraph CA-8.4A.2

      Amended: April 2014
      Amended: October 2008
      Amended: January 2007

    • CA-8.4.6

      For purposes of Paragraph CA-8.4.4, earmarked assets must meet the following criteria:

      (a) Availability: the asset is available and can be called on demand to meet any liquidity requirement where a Qard Hassan may be extended (see Section CA-8.4A);
      (b) Permanency: the asset is not callable and cannot be withdrawn;
      (c) Free of encumbrances: the asset is free of any encumbrances or mandatory payments; and
      (d) Highly liquid: the asset must be readily convertible to cash equivalent to a minimum of 90% of its reported value on the shareholder's fund statement of financial condition.
      Amended: April 2014
      Amended: October 2008
      Amended: January 2007

    • CA-8.4.7

      Earmarked assets must comply with the criteria outlined in Paragraph CA-8.4.6 and refer to the following allocated assets from the shareholder fund to the each of the participants' fund:

      (a) Cash and unencumbered current accounts with financial institutions;
      (b) Placements with financial institutions which can be liquidated within one month;
      (c) Readily marketable securities;
      (d) GCC government securities;
      (e) Other sovereign securities, other than in Paragraph CA-8.4.7(c) and Paragraph CA-8.4.7(d) above, up to one year maturity, carrying an S&P minimum rating of A (or equivalent); and
      (f) Accounts receivable due within one month, excluding any past due accounts.
      Amended: April 2014
      Amended: October 2008
      Amended: January 2007

    • CA-8.4.8

      Earmarked assets from the shareholder fund must be allocated for each participants' fund in the calculation of the insurance business amount of each participants fund and as determined by the actuary under Paragraph AA-4.3A.7.

      Added: April 2014