CA-1.2.16
A hybrid capital instrument must meet the following conditions before it can be included in an
(a) It must meet the general conditions described in Paragraph CA-1.2.17;
(b) It must have no fixed maturity date;
(c) The contractual terms of the debt agreement must provide for the insurance firm to have the option to defer any interest payment on the debt; and
(d) The contractual terms of the debt agreement must provide for the loss-absorption capacity of the debt and unpaid interest, whilst enabling the insurance firm to continue its business.
Amended: January 2007