ADGM Prudential Insurance Business Rules (PIN Rulebook)chapter by chapter

Rule 1.1.1-1.1.31.1 Application

Insurers authorised to carry on insurance business are subject to the PIN Rulebook, with narrower application for certain provisions, carve-outs for Authorised ISPVs, and alternatives for ADGM Captive Insurers.

Rules 1.1.1-1.1.31.1 Application

The ADGM Prudential Insurance Rulebook applies to all insurers, excludes certain chapters for Authorised ISPVs, and applies to ADGM Captive Insurers unless the CIB Rulebook provides otherwise.

Rule 2.2.12.2 Risk management system design standards

Insurers must maintain risk management systems suited to their size and complexity, covering all material financial and non-financial risks, with supporting policies explaining measurement approaches and key assumptions.

Rule 2.2.1-2.2.42.2 Risk Management Systems

Insurers must maintain enterprise-wide risk management systems with a board-approved risk appetite statement, a senior-management-approved risk strategy, defined risk limits, and clear managerial controls; group members must take reasonable steps to ensure group compliance.

Rule 2.2.22.2 Minimum risk management system components

Insurers must maintain a board-approved risk appetite statement, a senior-management-approved written risk strategy, and policies with board-consistent risk limits and clearly assigned managerial responsibilities.

Rule 2.3.12.3 Balance sheet risk management system

An Insurer must develop, implement and maintain a balance sheet risk management system covering reserving, investment, underwriting, claims, product pricing, liquidity and Climate-Related Financial Risk.

Rule 2.3.1-2.3.62.3 Management of Particular Risks

Insurers must maintain risk management systems covering balance sheet, credit, operational, reinsurance and asset-liability management risks, including a written reinsurance strategy and ALM policy.

Rule 2.3.22.3 Credit quality risk management system

Insurers must establish a risk management system to effectively handle credit quality risk.

Rule 2.3.32.3 Non-financial and operational risk management system

Insurers must establish and maintain a risk management system to address various non-financial and operational risks.

Rule 2.3.62.3 Asset-liability management policy

An insurer must maintain a risk management system including an explicit asset-liability management policy that sets out ALM activities and their links to product development, pricing and investment management.

Rule 2.4.12.4 Record-keeping

An insurer must maintain adequate records to fulfil its obligations under insurance contracts it has effected and to demonstrate compliance with the PIN Rules.

Rule 2.5.1-2.5.42.5 Surety Insurance Business (Class 7(b)) Restrictions

Insurers writing Class 7(b) surety business must keep its premium under 5% of non-life gross written premium, insure only rated BBB-or-better bodies corporate, cap terms at 20 years, and notify the Regulator first.

Rule 2.5.42.5 Class 7(b) business plan notification and Regulator objection

Insurers intending Class 7(b) business must notify the Regulator in writing with a business plan, and may not write such contracts if the Regulator objects.

Rules 2.2.3-2.2.42.2 Group-wide risk management compliance

Insurers in a group must take reasonable steps so the whole group complies with core risk management rules, unless the insurer is a subsidiary whose holding company is itself an insurer.

Rules 2.3.4-2.3.52.3 Reinsurance risk management system and strategy

An Insurer must maintain a risk management system for reinsurance risk and a written reinsurance management strategy suited to its size and complexity, documenting its reinsurance objectives.

Rules 2.5.1-2.5.32.5 Class 7(b) surety insurance restrictions

Insurers writing Class 7(b) surety business must keep that premium at or below 5% of non-life gross written premium, insure only BBB-rated corporate bodies, and cap contracts at twenty years.

Rule 3.2.1-3.2.63.2 Establishment of Long-Term Insurance Funds

Insurers must establish one or more long-term insurance funds or notify the regulator in writing that their business forms a single fund, keeping separate books and records for each.

Rule 3.3.1-3.4.13.3-3.4 Attribution of Contracts and Segregation of Assets

ADGM Insurers must attribute Long-Term Insurance contracts to specific funds and maintain asset segregation.

Rule 3.5.1-3.5.53.5 Limitation on Use of Long-Term Insurance Fund Assets

Long-Term Insurance Fund assets must be used only for specified business purposes, with restrictions on transfers and distributions, ensuring proper fund management.

Rule 3.6.13.6 Long-Term Contract Feature Restrictions and Regulator Permission

Insurers may not effect direct long-term insurance contracts with guaranteed investment, annuity, or bonus features without prior written regulator permission, and must comply with conditions attached to it.

Rules 3.2.1-3.2.63.2 Establishment of Long-Term Insurance Funds

Insurers must separately record assets, liabilities, revenues and expenses attributable to each Long-Term Insurance Fund, and either establish Funds or notify the Regulator of deemed single-Fund treatment; the Regulator may direct Fund establishment.

Rules 3.3.1-3.3.23.3 Attribution of contracts to a Long-Term Insurance Fund

Insurers must attribute all long-term insurance contracts to a Long-Term Insurance Fund; only general insurance Class 1 or Class 2 contracts may also be attributed to such a fund.

Rules 3.5.1-3.5.23.5 Restrictions on transfers out of a Long-Term Insurance Fund

Assets of a Long-Term Insurance Fund may be transferred out only for listed purposes, such as surplus appropriation within four months, permitted dividends, fair-value exchanges, or expense reimbursement.

Rules 3.5.3-3.5.53.5 Dividend and return-of-capital restrictions; prohibition on inter-Fund lending

Long-Term Insurance Fund assets may not be distributed by dividend or capital return except as surplus appropriation within 100% or 50% caps, and may never be lent to other Insurer or related-party purposes.

Rules 3.6.1(1)-(5)3.6 Restricted Direct Long-Term Insurance contract features and permission process

Incorporated insurers must not write direct long-term contracts with guaranteed investment, annuity, or bonus features without written Regulator permission, supported by pricing and risk explanations.

Rule 4.2.1-4.2.24.2 Basic Capital Adequacy Requirement

An insurer must maintain at all times capital resources its directors consider adequate for its risk profile, supported by internal capital models and stress testing available to the regulator on request.

Rule 4.2.24.2 Basic capital adequacy requirement

Insurers must always hold capital resources adequate for their business, considering size and risk complexity, and for long-term writers, premium adequacy and Invested Assets covering future policy benefits.

Rule 4.3.1-4.4.74.3-4.4 Minimum Capital Requirement Calculation

Insurers that are not cell companies must maintain Adjusted Capital Resources at or above the Minimum Capital Requirement at all times; cell companies must meet non-cellular and per-cell capital requirements separately.

Rule 4.5.1-4.5.54.5 Long-Term Insurance Fund Capital Requirement

Insurers writing long-term insurance business through a Long-Term Insurance Fund must at all times hold Adjusted Fund Capital Resources at or above the Minimum Fund Capital Requirement for each fund.

Rule 4.6.1-4.6.44.6 Availability of Assets - Non-ADGM Incorporated Insurers

Non-ADGM insurers must maintain specific assets to cover ADGM Insurance Liabilities, demonstrating compliance to the Regulator upon request.

Rule 4.7.1-4.8.14.7-4.8 Non-Compliance Notification and Distribution Restrictions

Insurers must immediately notify the Regulator in writing of non-compliance with Chapter 4, stop writing new insurance contracts, and make no profit distributions or capital returns without written permission.

Rule 4.8.14.8 General limitation on distributions

Insurers must not make any profit or surplus distribution or capital return that would cause them to breach any Chapter 4 provision.

Rules 4.1.2-4.1.44.1 Rating Agency basis

Insurers must base credit ratings on the Standard & Poor's hierarchy or an equivalent approved rating agency, and must not use ratings from agencies not approved or registered by the regulator or equivalent bodies.

Rules 4.3.2-4.3.44.3 Minimum Capital Requirement - non-Cell Company Insurers

Insurers that are not cell companies must at all times maintain Adjusted Capital Resources at or above their Minimum Capital Requirement, calculated under the prescribed capital appendices.

Rules 4.4.2-4.4.74.4 Minimum Capital Requirement - Cell Company Insurers

Cell Company insurers must at all times hold non-cellular capital resources at or above the minimum non-cellular requirement, and each cell at or above its own minimum cellular requirement.

Rules 4.5.1-4.5.54.5 Minimum Fund Capital Requirement for Long-Term Insurance Funds

Insurers writing long-term insurance business must hold, for each Long-Term Insurance Fund, Adjusted Fund Capital Resources at or above the Minimum Fund Capital Requirement at all times.

Rules 4.6.2-4.6.44.6 Availability of assets for non-ADGM Incorporated Insurers

An insurer not incorporated in ADGM must always hold qualifying assets covering ADGM Insurance Liabilities, business risk capital and risk components, and demonstrate compliance to the Regulator on request.

Rules 4.7.1-4.7.34.7 Notification and restrictions on non-compliance with Chapter 4

Insurers aware of non-compliance must notify the Regulator immediately in writing, and cannot write contracts or distribute profits or capital without written permission.

Rule 5.1.1-5.3.35.1-5.3 Recognition and Measurement Principles (IFRS Basis)

Insurers must recognise and measure assets and liabilities on an IFRS basis for reporting and capital compliance, applying valuation changes immediately, and may adopt more prudent values.

Rule 5.4.1-5.4.125.4 General Insurance Recognition and Measurement

Insurers under the ADGM PIN Rulebook must recognise and measure general insurance premiums, reinsurance held, expenses, and premium and outstanding claims liabilities under IFRS 17 measurement models.

Rule 5.5.1-5.5.25.5 Discount Rates

Insurers must use discount rates determined under IFRS 17 and disclose the rates used and the methodology for deriving them in audited financial statements.

Rule 5.6.1-5.6.55.6 Long-Term Insurance Recognition and Measurement

Firms must recognise and measure long-term insurance premiums, reinsurance held, acquisition costs, and insurance contract liabilities under IFRS 17 measurement models and prescribed recognition triggers.

Rule 5.7.1-5.7.25.7 Valuation of Group Investments Subject to Capital Requirements

A Financial Group Parent must value its investments in financial institution subsidiaries or associates at its proportionate share of their Adjusted Capital Resources, less its proportionate share of Capital Requirement.

Rule 5.7.25.7 Value of investments in Financial Institution subsidiaries/associates

A parent Insurer of a Financial Group must value its investment in a financial institution subsidiary or associate at its share of capital resources minus capital requirement.

Rule 5.8.1-5.8.25.8 Transfer of Risk to an ISPV

Firms must not treat amounts recoverable from an insurance special purpose vehicle as assets or reinsurance for liability calculations without first obtaining a Regulator waiver supported by effective risk transfer evidence.

Rule 5.8.25.8 Transfer of risk to an ISPV - waiver requirement

Insurers may not count or value amounts recoverable from an ISPV as assets or reinsurance for liability calculations without first obtaining a Regulator waiver assessing risk transfer and ISPV status.

Rules 5.1.2-5.1.65.1 General recognition and measurement provisions

Insurers must recognize and measure assets and liabilities according to specified rules, with regulatory discretion on valuation adjustments.

Rules 5.2.1-5.2.25.2 Classification of insurance business

Insurers must classify all insurance and reinsurance contracts by Class of Business and separately record contract portions for different classes unless immaterial, under 10% of gross written premium.

Rules 5.3.2-5.3.35.3 IFRS basis of accounting; immediate recognition of assumption changes

Chapter 5 accounting must use IFRS, and changes to valuation assumptions or calculation methods must be reflected immediately in asset or liability values, not deferred to later periods.

Rules 5.4.2-5.4.125.4 Recognition and measurement of General Insurance assets and liabilities

Insurers must recognise general insurance premiums, reinsurance held and expenses under IFRS 17 timing rules, and record premium and outstanding claims liabilities with recoveries as assets.

Rules 5.5.1-5.5.25.5 Discount rate disclosure

Insurers must apply IFRS 17 discount rates and disclose in audited financial statements the discount rates used and the methodology to derive them.

Rules 5.6.2-5.6.55.6 Recognition and measurement of Long-Term Insurance assets and liabilities

Insurers must recognise long-term insurance reinsurance premiums on prescribed timing, treat acquisition and maintenance costs as payable, and measure insurance contract liabilities under the relevant IFRS 17 model.

Rule 6.3.1-6.3.36.3 Annual Regulatory Return Preparation and Actuarial Discrepancy Notification

Prepare an annual Regulatory Return at year-end and notify the Regulator of discrepancies between reported values and Actuary’s amounts.

Rule 6.4.1-6.4.36.4 Quarterly Regulatory Return

Authorised firms must prepare an unaudited quarterly Regulatory Return, including APP10 statements, supplementary notes and a directors' statement, as at end March, June, September and December.

Rule 6.5.1-6.5.36.5 Audit of Annual Regulatory Return

Insurers must have their annual Regulatory Return audited under International Standards on Auditing, with the auditor reporting in writing to directors and the Regulator on compliance and consistency with records.

Rule 6.6.1-6.6.66.6 Submission of Annual Regulatory Return and Six-Year Record Retention

Submit the annual Regulatory Return via EPRS within four months of the reporting date, signed by the Senior Executive Officer and a Director, and keep a copy for six years.

Rule 6.6.7-6.6.136.6 Submission of Quarterly Regulatory Return and Six-Year Record Retention

Quarterly Regulatory Return must be submitted via EPRS within one month of period end, with signed Statement by Directors and copies kept six years for inspection.

Rule 6.6.116.6 Correction of inaccurate or incomplete Regulatory Returns

If the Regulator flags an insurer's Regulatory Return as inaccurate or incomplete within twenty-four months of submission, the insurer must correct it and resubmit relevant parts within one month.

Rule 6.6.126.6 Submission of shareholder/policyholder affairs report

An insurer must submit any report on its affairs given to shareholders or policyholders for the reporting period with its annual regulatory return, or as soon as practicable afterwards.

Rule 6.6.136.6 Late-submission administrative fee

Late submission of an annual or quarterly regulatory return incurs an administrative fee under the FEES Rulebook, without limiting the regulator's other enforcement actions.

Rule 6.7.1-6.7.26.7 Reporting of Group Capital Adequacy

Financial groups must file a Group Capital Adequacy Report with an auditor's statement within four months of year-end and one month after mid-year date.

Rules 6.3.1-6.3.36.3 Annual Regulatory Return and Actuary-inconsistency notification

Insurers must file an annual Regulatory Return and notify the Regulator in writing, with reasons and alternative methodologies, if liability values differ from Actuary amounts.

Rules 6.4.1-6.4.36.4 Quarterly Regulatory Return

Insurers must prepare and submit an unaudited quarterly Regulatory Return at the end of March, June, September, and December, including required statements.

Rules 6.5.1-6.5.36.5 Audit of the annual Regulatory Return

Every Insurer must have its annual Regulatory Return audited under International Standards on Auditing, with the auditor reporting to directors and Regulator on compliance with Chapter 6 and consistency with records.

Rules 6.6.1-6.6.46.6 Submission of the annual Regulatory Return and six-year retention of the Statement by Directors

Insurers must submit annual regulatory returns within four months of reporting date, and retain signed statements by directors and returns for six years.

Rules 6.6.5-6.6.66.6 Auditor and actuarial report submission

Auditors' reports on the annual regulatory return and any actuarial reports must be submitted in writing to the regulator within four months of the reporting date, signed by the preparer.

Rules 6.6.7-6.6.106.6 Submission of the quarterly Regulatory Return and six-year retention of the Statement by Directors

Insurers must submit quarterly Regulatory Returns via EPRS within one month of quarter-end, with Statement by Directors signed beforehand and signed hard copy retained for six years.

Rules 6.7.1-6.7.26.7 Financial Group Capital Adequacy Report

An Insurer in a Financial Group must file a Financial Group Capital Adequacy Report at each year end (within four months) and mid-year (within one month), in thousands of dollars, signed and with an auditor's statement.

Rule 7.2.1-7.2.47.2 Actuarial Report on General Insurance Business

Insurance entities must provide the Regulator with a written actuarial report on General Insurance Business at each reporting date covering specified areas.

Rule 7.3.1-7.3.87.3 Actuarial Investigation and Report on Long-Term Insurance Business

Insurers must arrange an annual actuarial investigation of each long-term insurance fund to determine surplus, and deliver a detailed written report to the Regulator within four months of the reference date.

Rule 7.4.17.4 Actuary appointment contract terms

Insurers appointing an Actuary for a report must use a binding written agreement covering report content, timely delivery for the Regulatory Return, and reporting concerns to directors and Regulator.

Rule 7.4.1-7.4.57.4 Actuary Engagement Terms and Access

A company must have a written actuary engagement agreement covering reporting, assumptions, directors' access and escalation to the Regulator, provide the actuary with required information, and submit Chapter 7 reports with the annual Regulatory Return.

Rule 7.4.27.4 Insurer arrangements enabling the Actuary

An insurer that appoints an actuary must enable the actuary to perform their functions by keeping them informed of business plans, PIN rules, regulator information, data, and personnel access.

Rule 7.5.1-7.5.47.5 Actuary Qualifications and Appointment Notification

Only qualified Actuaries can be appointed, and the Regulator must be notified of appointments, objections, and terminations.

Rules 7.2.3-7.2.47.2 Actuarial report on General Insurance Business

Insurers writing general insurance must provide the Regulator, at each reporting date, a qualified actuary's written report covering liability valuation, assumptions, data adequacy, and sensitivity analysis per class of business.

Rules 7.3.2-7.3.67.3 Actuarial investigation and report on Long-Term Insurance Business

Insurers conducting long-term insurance business must arrange annual actuarial investigations of each fund's assets and liabilities, including surplus determination, and deliver a detailed written report to the Regulator within four months.

Rules 7.3.7-7.3.87.3 Jurisdictional segregation of Direct Long-Term Insurance reporting

An Insurer conducting Direct Long-Term Insurance must segregate its required reporting by jurisdiction, though the Actuary may aggregate disclosures for jurisdictions of limited significance.

Rules 7.4.3-7.4.57.4 Report submission timing and materiality abbreviation

Insurers must submit actuarial reports to the Regulator with the annual Regulatory Return, separating ADGM and total Insurance Business where applicable, and may abbreviate immaterial Classes of Business.

Rules 7.5.1-7.5.47.5 Actuary qualification and appointment notification

Insurers must notify the Regulator in writing of each proposed Actuary's qualifications and experience, and immediately report any Actuary termination or resignation with reasons.

Rule 8.1.1-8.2.18.1-8.2 Group Scope and Systems and Controls

Financial Group members must include entities the Regulator directs in group scope, exclude entities only with prior Regulator approval, and maintain group systems and controls monitoring funding and reporting.

Rule 8.1.28.1 Financial Group scope determination

Insurers must include in their Financial Group any entity the Regulator directs in writing, may exclude entities only with prior written approval, and must provide Group structure and risk information on request.

Rule 8.2.18.2 Group risk systems and controls

Insurers must implement systems to monitor Group relationships and compliance with financial supervision requirements, including funding and reporting.

Rule 8.3.18.3 Financial Group Capital Requirement applicability and 40% threshold

Financial Group capital requirements do not apply where another group member is authorised for Financial Group supervision, or the Regulator confirms consolidated supervision by an appropriate regulator.

Rule 8.3.1-8.3.68.3 Financial Group Capital Requirements and Resources

Financial groups must keep capital resources at or above the group capital requirement at all times, excluding non-transferable surplus, unless exempt; exemption changes must be notified to the regulator immediately.

Rule 8.4.1-8.4.28.4 Transactions Within a Group

Firms must ensure material transactions with related group entities, generally above 0.5% of prior-year-end surplus, are on fair and reasonable terms and clearly recorded in books to support fairness.

Rule 8.5.18.5 Significant transactions - arm's-length director assessment

An ADGM Incorporated Insurer must not enter significant related-party or reinsurance transactions, or management arrangements, unless directors confirm arm's-length terms not adversely affecting policyholders.

Rule 8.5.1-8.5.48.5 Significant Related-Party Transactions and Distribution Reporting

ADGM insurers must confirm significant related-party transactions are arm's-length, report distributions within 21 days, and notify regulators of body-corporate investments exceeding 10%.

Rules 8.3.3-8.3.68.3 Financial Group Capital Requirement and Resources compliance

Insurers must ensure at all times that financial group capital resources equal or exceed the financial group capital requirement, excluding non-transferable capital surplus.

Rules 8.4.1-8.4.28.4 Related-party transactions within a Group

Insurers must conduct material related-party transactions with group entities on fair and reasonable terms and accurately record their nature, details and fairness supporting information in their books and records.

Rules 8.5.2-8.5.48.5 Distribution and Related-investment notifications

Insurers must report dividends and profit distributions to the Regulator within 21 days and notify them of significant investments within 30 days.

Rule 9.2.1-9.2.39.2 Notification of Decision to Cease Effecting Contracts

Insurers deciding to cease effecting new contracts of insurance in a class of business must notify the Regulator in writing within 28 days and cannot continue without written permission.

Rule 9.3.1-9.3.79.3 Run-Off Plans

Firms must give the Regulator a written run-off plan at cessation or within 28 days of a withdrawal notice, then monitor it and amend within 28 days on request.

Rule 9.4.1-9.4.129.4 Collateral Requirements for Insurers in Run-Off

Insurers in run-off must provide regulator-requested collateral of qualifying assets, reassess required collateral quarterly, and top up or seek consent to release excess within two months.

Rule 9.5.1-9.5.39.5 Notification of Contracts Relating to Run-Off Business

Insurers must notify the Regulator in writing of run-off contracts with related parties, run-off managers, and reinsurance contracts, and provide more detail on request.

Rule 9.5.29.5 Notification of contracts relating to run-off business

An insurer in run-off must notify the regulator in writing of related-party contracts, run-off management contracts, and reinsurance contracts for its run-off insurance business, including their principal features.

Rule 9.6.19.6 Limitations on distributions and management fee payments by ADGM Incorporated Insurers in run-off

ADGM incorporated insurers in run-off may not distribute profits or surplus, return capital, or pay management fees, except notified contract fees, without regulator written consent and within specified periods.

Rules 9.2.2-9.2.39.2 Notification of ceasing to effect new contracts in a Class of Business

Insurers must notify the Regulator in writing within 28 days if they cease to effect new contracts in a class of business.

Rules 9.3.2-9.3.59.3 Run-off plan submission

An insurer entering run-off, or placing a cell or fund into run-off, must submit a written run-off plan to the Regulator covering liability settlement, capital compliance, strategy, projections and stress testing.

Rules 9.3.6-9.3.79.3 Run-off plan monitoring, departure notification and amendment

An insurer with a submitted run-off plan must monitor its business and promptly notify the Regulator in writing of significant departures, and provide any required amended plan within twenty-eight days unless a longer period is specified.

Rules 9.4.2-9.4.79.4 Collateral notice compliance

Insurers in run-off must comply with collateral notice requirements by providing qualifying assets and notifying the Regulator of changes.

Rules 9.4.9-9.4.129.4 Quarterly collateral reassessment and true-up

An Insurer under a collateral notice must reassess required and actual collateral each quarter end, report to the Regulator within two months, and top up any shortfall within two months.

Rule 10.1.1-10.1.810.1 Authorised ISPV Requirements

Authorised ISPVs must keep assets at or above liabilities, fully funded from actual financing proceeds, and subordinate financing providers to reinsurance creditors with no recourse to the ceding insurer.

Rule 10.1.410.1 Risk management system for material risks

Authorised ISPVs must establish and maintain a risk management system covering all material risks, ensuring investment restrictions are respected, assets are legally existent, and liabilities can be satisfied on time.

Rules 10.1.2-10.1.310.1 Full funding and asset-holding requirements

An Authorised ISPV must keep its assets at or above its liabilities at all times, fully funded from actual receipt of financing proceeds, with assets held by it or on its behalf or by the ceding Insurer.

Rules 10.1.5-10.1.710.1 Reinsurance liability cap and financing subordination

Authorised ISPVs must cap aggregate reinsurance liability at asset value, fully subordinate financing creditors to reinsurance creditors, and limit obligations to those needed for special-purpose reinsurance arrangements.

Rule A10.2.1-A10.4.3APP10 Reporting Units, Form Completion and Statement by Directors Content

Insurers must file a Regulatory Return for each reporting unit in English, including a Statement by Directors confirming compliance, or explaining why confirmations cannot be made.

Rule APP3.1-APP3.5, APP5.1-APP5.10, APP7.1-APP7.5APP3/APP5/APP7 Adjusted Capital Resources Calculation Methodology

Insurers must calculate Adjusted Capital Resources, covering base capital, adjusted equity and hybrid capital adjustment subject to eligibility and quantitative limits, for standard insurers, cell companies and long-term insurance funds.

Rule APP4.1-APP4.13, APP6.1-APP6.13, APP8.1-APP8.11APP4/APP6/APP8 Minimum Capital Requirement Calculation Methodology

Insurers must calculate the Minimum Capital Requirement by summing prescribed risk components, using APP4 for standard insurers, APP6 for cell companies and APP8 for long-term funds.

Rule APP9.1-APP9.5APP9 ADGM Business Risk Capital Requirement

Insurers not incorporated in ADGM must calculate their ADGM Business Risk Capital Requirement as the sum of underwriting, reserving and long-term insurance risk components for asset availability.

Rules A3.2.1-A3.5.3A3.2-A3.5 Adjusted Capital Resources formula

Insurers that are not cell companies must calculate Adjusted Capital Resources as adjusted equity minus hybrid capital exceeding 15% (or Regulator-approved up to 30%) of adjusted equity.

Rules A4.2.1-A4.13.2A4.2-A4.13 Minimum Capital Requirement formula and risk components

A non-Cell Company insurer must calculate its Minimum Capital Requirement as the sum of ten risk components, including default, underwriting, reserving, concentration and asset management risk.

Rules A5.2.1-A5.10.4A5.2-A5.10 Adjusted Non-Cellular and Cellular Capital Resources formulae

Cell Companies must calculate their Adjusted Non-Cellular and Cellular Capital Resources based on specified formulae, reflecting both base capital and capital caps.

Rules A6.2.1-A6.13.1A6.2-A6.13 Minimum Segmental Capital Requirement formula and floors

Insurers operating as cell companies must calculate minimum segmental capital requirements for the non-cellular segment and each cell, subject to a $50,000 floor per segment and $250,000 aggregate floor.

Rules A7.2.1-A7.5.3A7.2-A7.5 Adjusted Fund Capital Resources formula

Insurers must calculate Adjusted Fund Capital Resources for each Long-Term Insurance Fund, reducing it by hybrid capital above 15% of adjusted fund equity, or a regulator-approved higher limit up to 30%.

Rules A8.2.1-A8.11.1A8.2-A8.11 Minimum Fund Capital Requirement formula and floor

Insurers must calculate the minimum fund capital requirement for each long-term insurance fund as the sum of eight risk components, subject to a $5,000,000 floor per fund.

Rules A9.2.1-A9.5.1A9.2-A9.5 ADGM Business Risk Capital Requirement formula

An Insurer not incorporated in ADGM must calculate its Business Risk Capital Requirement as the sum of its underwriting, reserving and long-term insurance risk components, excluding reinsurance.

Rules A10.2.1-A10.2.6A10.2 Regulatory Return reporting units

An Insurer must file Regulatory Returns for each reporting unit, including a Global Return, a Cell Return per Cell, Fund Returns per Long-Term Insurance Fund unless identical, and an ADGM Business Return for non-ADGM insurers.

Rules A10.3.1-A10.3.4A10.3 Form completion, comparative information and audit scope

Supplementary Notes must identify the related form, Regulatory Returns must be in English, and the annual Regulatory Return including the Statement by Directors is subject to audit.

Rules A10.4.1-A10.4.3A10.4 Statement by Directors content

Insurers must include a Statement by Directors in every Regulatory Return, confirming PIN compliance, adequate accounting records and controls, and for annual returns, compliance with Chapter 4 throughout the period.

Rule 6.6.4-retRecord Retention — Original signed hard copy of the annual Statement by Directors, plus a copy of t

Records of the annual statement by directors and the annual regulatory return submitted via EPRS must be kept for at least six years from submission.

Rule 6.6.10-retRecord Retention — Original signed hard copy of the quarterly Statement by Directors, plus a copy o

ADGM firms must retain the signed hard copy of the quarterly Statement by Directors and the EPRS-submitted Regulatory Return copy for at least six years.