CA-1.2.21
Past version: Effective up to 30 Jun 2007
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Every
| Determination of Insurance Firm's Capital Available | |
| Tier 1 Capital | |
| Paid-up ordinary shares (net of treasury shares) | |
| Share premium reserve | |
| Perpetual non-cumulative preference shares | |
| All disclosed reserves brought forward, that are audited and approved by the shareholders, in the form of legal, general and other reserves created by appropriations of retained earnings, excluding fair value reserve | |
| Unappropriated retained earnings, excluding cumulative unrealised fair value gains, brought forward | |
| Audited current year's earnings net of unrealised fair value gains and before tax expenses | |
| Minority interests, arising on consolidation in the equity of subsidiaries which are less than wholly owned | |
| Overseas Insurance Firms Only: audited net assets, excluding any unrealised fair value gains and |
|
| (A) | Total Tier 1 Capital |
| Tier 2 Capital — Upper Level | |
| Interim net income, excluding any unrealised fair value gains, reviewed by the external auditors in accordance with International Standards on Auditing (ISA) | |
| Perpetual cumulative preference shares | |
| Mandatory convertible notes and similar capital instruments | |
| Other hybrid (debt/equity) capital instruments of a permanent nature | |
| Investment fair value reserve (IAS 39) and any unrealised fair value gains included in retained earnings, both discounted to 45%. | |
| (B) | Total Tier 2 Capital — Upper Level |
| Tier 2 Capital — Lower Level | |
| Limited life redeemable preference shares with an |
|
| Any other similar limited life capital instruments with an |
|
| (C) | Total Tier 2 Capital — Lower Level: before excess deduction |
| (D) | Total Tier 2 Capital (B plus C) |
| (E) | Excess Tier 2 Capital — Lower Level = (C) − [(A) times 50%)] (if negative, excess is 0) |
| (F) = (D) − (E) | Total Tier 2 Capital — Lower Tier adjusted |
| (G) | Excess Tier 2 Capital = (F) − [(A) times 100%)] (if negative, excess is 0) |
| (H) = (F) − (G) | Total Tier 2 Capital |
| Deductions from Capital | |
| Valuation asset differences | |
| Inadmissible assets by asset category | |
| Inadmissible assets in excess of |
|
| Required margins of solvency for subsidiaries and associates (ref. CA-4.2) | |
| Negative reserves | |
| Current year's losses, before any tax expenses | |
| Dividends declared | |
| Tax expenses | |
| Other appropriations not included as charges to profit and loss statement (e.g. Directors' remuneration, donations) | |
| Other | |
| (I) | Total Deductions from Capital |
| (A)+(H)−(I) | CAPITAL AVAILABLE |