Appendix (1) Financial Statement Forms
IA-BOD-RES 26/2014 Effective from 28/12/2014Takaful Insurance Company Financial Statement Forms (with Disclosures)
| Consolidated Financial Position for Takaful Insurance Company as of Day, Month, 20XX | |||
| Notes | 20XX | 20YY | |
| AED | AED | ||
Assets
Takaful Operations Assets
Property, machinery and equipment
Financial assets designated at fair value through income
Financial assets carried at fair value through other comprehensive income
Financial assets at Amortized Cost
Deferred policy acquisition costs
Reinsurers' share of unearned premiums
Prepaid expenses and other assets
Due from shareholders
Reinsurers' share of outstanding claims
Premiums and Re-Takaful balances receivables
Cash and cash equivalents
Total Takaful Operations’ Assets
Shareholders’ Assets
Property and equipment
Investments in associates
Intangible assets
Investments at amortized cost
Investments carried at fair value through other comprehensive
income
Derivative finance instruments
Investments valued at fair value through income
Investments in properties
Statutory deposits
Dues from Takaful operations
Other receivables and prepayments
Deposits
Cash and cash equivalents
Total Shareholders’ Assets
Total Assets
Liabilities, Participants' Claims’ Fund, and Shareholders’ Equity
Liabilities
Takaful Operations’ Liabilities and related surplus (deficit):
Takaful payables
Takaful contract liabilities
Total outstanding claims
Reinsurance payables balances
Accrued expenses and other liabilities
Unearned Re-Takaful commission income
Total unearned premiums
Total technical provisions
End of service Indemnity
Surplus distribution payable
Total Takaful Operations’ Liabilities and related surplus (deficit)
Participants’ account
Family Takaful Fund
Property and Liability Takaful Fund
Surplus/ Deficit in Family Participants' Takaful Fund
Surplus/ Deficit in Property and Liability Participants' Takaful
Fund
Proposed Profit Distribution to Family Takaful Fund Participants
Proposed Profit Distribution to Property and Liability Takaful
Fund Participants
Investments Revaluation Reserve Attributable to Family Takaful
Fund
Investments Revaluation Reserve Attributable to Property and
Liability Takaful Fund
Total surplus/deficit in Participants' Account
Shareholders’ Liabilities
Accrued expenses and other liabilities
End of Service Benefits
Other payables
Total Shareholders’ Liabilities
Shareholders’ Equity
Share Capital
Retained Earnings/Loss
Employee Share Options Reserve
Statutory Reserves
Cumulative change in fair value
Total Shareholders’ Equity attributable to Shareholders of the Company
Minority Interest
Foreign Currency Translation Adjustments
Total Shareholders’ Equity
Total Liabilities, Participants' Claims’ Fund, and Shareholders’ Equity
Consolidated refers to a group of companies running both Takaful insurance of persons and Property and Liability Takaful insurance.The cash flow and change in shareholders’ equity format under consolidated financial statements is applicable to individual financial statements to be prepared for Takaful insurance of persons and Property and Liability Takaful insurance.
| Consolidated Income Statement for Takaful Insurance Company for the period ended Day, Month, 20XX | |||
| Notes | 20XX | 20YY | |
| AED | AED | ||
Takaful Income
Gross Takaful Contributions
Re-Takaful Share of accepted business
Re-Takaful Share of ceded business
Net Takaful contributions
Net Transfer to Unearned Contribution Reserve
Net Takaful contributions Earned
Commissions Earned
Gross Takaful Contributions
Takaful Expenses
Gross Claims Incurred
Re-Takaful Share of Accepted Business Claims
Re-Takaful Share of Ceded Business Claims
Net claims incurred
Provision for Takaful contract liabilities (outstanding claims)
Re-Takaful Share of Outstanding Claims
Increase/ (Decrease) in Incurred but Not Reported Claims
Reserves
Increase/ (Decrease) in the provision for unearned
subscriptions
Increase/ (Decrease) in Unallocated Loss Adjustment Expense
Reserve
Increase/ (Decrease) in Mathematical Reserves
Net Takaful Claims Incurred
Net Takaful Income
(Wakala/Mudaraba Fees)
Income from Investments
Income from Real Estate
Foreign Currency Exchange Fluctuation (Gain/Loss)
Other Income
Net Income/ (loss) from Takaful operations
Other Revenues
Investment Income/(loss) (Shareholders fund)
Wakala/ Mudaraba fees from Participants
Other Operating Income
Impairment /(Write-Off) of Loan to Participants' Fund
Other Expenses
Commissions Paid
Other Operating Expenses
General and Administrative Expenses
Net Profit/(loss) for the year
Net loss on revaluation of available for sale investments
Reclassification adjustment of investments available for sale
impaired during the year
Transfer to P/L on sale of investments available for sale
Provision/Impairment loss on financial assets carried at
amortized cost
Board of Directors’ remuneration
Total Comprehensive Profit/Loss for the Year
Earnings per share:
Basic
Diluted
| Consolidated Comprehensive Income Statement for Takaful Insurance Company for the period ended Day, Month, 20XX | |||
| Notes | 20XX | 20YY | |
| AED | AED | ||
Net Profit for the year
Other Comprehensive Income (OCI)
Other comprehensive income reclassified to net earnings or
loss in subsequent periods:
Share of other comprehensive income of associates
Net unrealized gain/(loss) from investments at fair value from
other comprehensive income
Net realized (gain)/loss transferred to income from the sale of
investments at fair value from other comprehensive income
Impairment of Investments at fair value through transferred to
income
Foreign currency adjustments from translation of foreign
operations
Other Comprehensive Income for the Year
Total Comprehensive Income for the Year
Attributable to:
Shareholders of the parent company
Non-controlling interests
| Consolidated Cash Flow for Takaful Insurance Company for the period ended Day, Month, 20XX | |||
| Notes | 20XX | 20YY | |
| AED | AED | ||
Income (Loss) for the year
Adjustments:
Depreciation
Unrealized Gain/Loss on Investment in properties
Unrealized Gain/Loss on Investment
Unrealized Gain /Loss Foreign Currency Exchange Fluctuation
Other Gain/ Loss
Cash flows from operating activities
Decrease/(Increase) in Takaful Receivable
(Increase)/Decrease in Other Receivables and Prepayments
(Decrease)/Increase in Takaful Payables (Decrease)/Increase in Takaful Contract Liabilities
End of Service Indemnity Paid
Net Cash from Operating Activities
Cash flows from investing activities
Purchase of Property and Equipment
Proceeds from Sale of Property and Equipment
Investments
Net Cash from Investing Activities
Cash Flows from Financing Activities
Ijara Payables
Decrease/(Increase) in Family Takaful Participants’
Fund Decrease/(Increase) in Property and Liability Takaful Participants’
Fund
Loan Payments for Family Takaful Fund Participants
Loan Payments for Property and Liability Takaful Fund
Participants
Profit Distribution to Family Takaful Fund Participants
Profit Distribution to Property and Liability Takaful Fund
Participants
Zakat Paid
Net Cash from Financing Activities
(Decrease)/Increase in Cash and Cash Equivalents
Cash and Cash Equivalent at the End of the Year
Consolidated Statement of Change in Equity for Takaful Insurance Company for the period ended Day, Month, 20XX
Attributable to Equity Holders of the Parent Company
| Notes | Share Capital | Retained Earnings | Reserves | Cumulative Change in Investments Through other Comprehensive Income | Total Equity Attributable to Shareholders of the Company | Minority Interest | Foreign currency translation adjustments | Total equity |
| XXXAED | XXXAED | XXXAED | XXXAED | XXXAED | XXXAED | XXXAED | XXXAED |
As at XX Month 20XX
Profit/(Loss) for the year
Other comprehensive income
Total comprehensive income
Transfer to statutory reserve
Transfer to general reserve
Zakat
Dividends distributed
As at XX Month 20XX
| Financial Position for Takaful Insurance Company for Persons as of Day, Month, 20XX | |||
| Notes | 20XX | 20YY | |
| AED | AED | ||
Assets
Takaful Insurance of Persons’ Assets
Property, machinery and Equipment
Investments at fair value through the income statement
Investments carried at Fair Value through other comprehensive
income
Investments carried at amortized cost
Family Takaful fund
Deferred policy acquisition cost
Reinsurers' share of unearned premiums
Prepaid expenses and other assets
Amounts due from shareholders
Other receivables and prepayments
Reinsurers' share of claims under the Takaful settlement
Premiums and Re-Takaful balances receivables
Cash and bank balances
Total Takaful Insurance of Persons’ Assets
Shareholders’ Assets
Property, machinery and Equipment
Investment in Associates
Intangible Assets
Investments at amortized cost
Investments carried at Fair Value through other comprehensive
income
Derivative Financial Instruments
Investments valued at fair market value through the income
statement
Investments in properties
Statutory Deposits
Receivables from participants
Other Receivables and Prepayments
Deposits
Cash and cash equivalent
Total Shareholders’ Assets
Total Assets
Liabilities, Participants' Claims’ Fund, and Shareholders’ Equity
Liabilities
Takaful Liabilities:
Takaful Contracts Liabilities
Total Technical Provisions
Takaful Payables
Total Takaful Liabilities
Ijara Payables
Shareholders’ Liabilities:
End of Service Indemnity
Other Payables
Total Takaful Insurance of Persons’ Liabilities
Participants' Claims’ Fund
Takaful Insurance of persons’ Fund
Surplus/ Deficit in Participants' Fund
Loans from Shareholders
Proposed Profit Distribution to Participants
Investments Revaluation Reserve
Total Surplus/Deficit in Participants' Fund
Shareholders’ Equity
Share Capital
Retained Profit/Loss
Reserves
Total Shareholders’ Equity attributable to Shareholders of the Company
Minority Interest
Foreign currency translation reserve
Total Shareholders’ Equity
Total Liabilities, Participants' Claims’ Fund, and Shareholders’ Equity
| Income Statement for Takaful Insurance of Persons Company for the period ended Day, Month, 20XX | |||
| Notes | 20XX | 20YY | |
| AED | AED | ||
Takaful Income
Gross Takaful Contributions
Re-Takaful Share of accepted business
Re-Takaful Share of ceded business
Net Takaful contributions
Net Transfer to Unearned Contribution Reserve
Net Takaful contributions Earned
Commissions Earned
Gross Takaful Contributions
Takaful expenses
Gross Claims Incurred
Re-Takaful Share of Accepted Business Claims
Re-Takaful Share of Ceded Business Claims
Net claims incurred
provision for Takaful contract liabilities (outstanding claims)
Re-Takaful Share of Outstanding Claims
Increase/ (Decrease) in the provision for unearned
subscriptions
Increase/ (Decrease) in Incurred but Not Reported Claims
Reserves
Increase/ (Decrease) in Unallocated Loss Adjustment Expense
Reserve
Increase/ (Decrease) in Mathematical Reserves
Net Takaful Claims Incurred
Net Takaful income
(Wakala/ Mudaraba Fees)
Income from Investments
Income from Investment in Properties
Foreign Currency Exchange Fluctuation (Gain/Loss)
Other Income
Net Income/ (loss) from Takaful operations
Other Revenues
investment Income/(loss) (shareholders fund)
Wakala/ Mudaraba fees from Participants
Other Operating Income
Impairment/(Write-Off) of Loan to Participants' Fund
Other Expenses
Commissions Paid
Other Operating Expenses
General and Administrative Expenses
Net Profit/(loss) for the year
Net loss on revaluation of investments through other
comprehensive income
Reclassification adjustment relating to investments through
other comprehensive income impaired during the year
Transfer to P/L on sale of investments through other
comprehensive income
Board of Directors’ remuneration
Total Comprehensive Profit/Loss for the Year
Earnings per share:
Basic
Diluted
| Financial Position for Property and Liability Takaful Operator as of Day, Month, 20XX | |||
| Notes | 20XX | 20YY | |
| AED | AED | ||
Assets
Takaful Operations Assets
Property, machinery, and Equipment
Investments at fair value through the income statement
Investments carried at Fair Value through other comprehensive
income
Investments carried at amortized cost
Deferred policy acquisition cost
Reinsurers' share of unearned premiums
Prepaid expenses and other assets
Amounts due from shareholders
Reinsurers' share of claims under settlement
Premiums and insurance balances receivables
Cash and bank balances
Total Takaful Assets
Shareholders’ Assets
Property and Equipment
Investment in Associates
Intangible Assets
Investments at amortized cost held to maturity
Investments carried at Fair Value through other comprehensive
income
Derivative Financial Instruments
Investments valued at fair market value through income statement
Investments in properties
Statutory Deposits
Receivables from participants
Other Receivables and Prepayments
Deposits
Cash and cash equivalent
Total Shareholders’ Assets
Total Assets
Liabilities, Participants' Claims’ Fund and Shareholders’ Equity
Liabilities
Takaful Liabilities:
Takaful Contracts Liabilities
Total Technical Provisions
Takaful Payables
Total Takaful Liabilities
Ijara Payables
Shareholders’ Liabilities:
End of Service Indemnity
Other Payables
Total Liabilities
Participants' Claims’ Fund
Property and Liability Takaful Fund
Surplus/Deficit in Participants' Fund
Loans from Shareholders
Proposed Profit Distribution to Participants
Investments Revaluation Reserve
Total Surplus/Deficit in Participants' Fund
Shareholders’ Equity
Share Capital
Retained Earnings/Loss
Reserves
Total Equity Attributable to Shareholders of the Company
Minority Interest
Foreign Currency Translation Adjustments
Total Equity
Total Liabilities, Participants' Claims’ Fund, and Shareholders’ Equity
| Income Statement for Property and Liability Takaful Operator for the period ended Day, Month, 20XX | |||
| Notes | 20XX | 20YY | |
| AED | AED | ||
Takaful Income
Gross Takaful Contributions
Re-Takaful Share of accepted business
Re-Takaful Share of ceded business
Net Takaful Contributions
Net Transfer to Unearned Contribution Reserve
Net Takaful contributions Earned
Commissions Earned
Gross Takaful Contributions
Takaful expenses
Gross Claims Incurred
Re-Takaful Share of Accepted Business Claims
Re-Takaful Share of Ceded Business Claims
Net claims incurred
Provision for Takaful contract liabilities (outstanding claims)
Re-Takaful Share of Outstanding Claims
Increase/ (Decrease) in the provision for unearned
subscriptions
Increase/ (Decrease) in Incurred but Not Reported Claims
Reserves
Increase/ (Decrease) in Unallocated Loss Adjustment Expense
Reserve
Increase/ (Decrease) in Mathematical Reserves
Net Takaful Claims Incurred
Net Takaful income
(Wakala/ Mudaraba Fees)
Income from Investments
Income from Real Estate
Foreign Currency Exchange Fluctuation (Gain/Loss)
Other Income
Net Income/ (loss) from Takaful operations
Other Revenues
Investment Income/(loss) (shareholders fund)
Wakala/ Mudaraba from Participants
Other Operating Income
Impairment /(Write-Off) of Loan to Participants' Fund
Other Expenses
Commissions Paid
Other Operating Expenses
General and Administrative Expenses
Net Profit/(loss) for the year
Net loss on revaluation of investments at fair value through
other comprehensive income
Reclassification adjustment relating to investment through other
comprehensive income impaired during the year
Transfer to P/L on sale of investments through other
comprehensive income
Board of Directors’ remuneration
Total Comprehensive Profit/Loss for the Year
Earnings per share:
Basic
Diluted
Notes to the Financial Statements
- Disclosure over the financial statements is made in compliance with the AAOIFI (Accounting and Auditing Of Islamic Financial Institutions) Board in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and its interpretations issued by the International Financial Reporting Interpretations Committee (IFRIC), and according to the templates identified by the Authority.
- Notes to financial statements include the following:
2.1 General information.
2.2 Adoption of new and revised International Financial Reporting Standards (IFRSs).
2.3 Summary of significant Accounting Policies which include:
a. Statement of compliance.
b. Basis of preparation.
c. Basis of consolidation.
d. Business combinations.
e. Goodwill.
f. Takaful contracts.
g. Revenue recognition.
h. General and administrative expenses.
i. Foreign currencies.
j. Property, machinery and equipment.
k. Investment properties.
l. Impairment of non-financial assets.
m. Provisions.
n. Financial instruments.
o. Financial assets.
p. Financial liabilities.
q. Dividend distribution.
r. Others.
2.5 Property, machinery and equipment.
2.6 Investment properties.
2.7 Financial investments.
2.8 Statutory deposits.
2.9 Takaful contract liabilities and Re-Takaful contract assets.
2.10 Takaful receivables.
2.11 Bank balances and cash.
2.12 Share Capital.
2.13 Reserves.
2.14 Bank borrowings.
2.15 Takaful payables and others.
2.16 Net investment income / loss.
2.17 Related party transactions.
2.18 Segment information.
2.19 Contingent liabilities.
2.20 Commitments.
2.21 Takaful risk.
2.22 Capital risk management.
2.23 Financial instruments.
2.24 Dividends.
2.25 Approval of financial statements.
2.26 Others.
- In addition to the above, the Company should disclose the following:
3.1 Wakala model or Wakala and Mudaraba model used by the company.
3.2 Deficit in participants’ fund
Any deficit in the participants’ fund, except for deficits arising from a decline in the fair value of securities, is financed by the shareholders through a Qard Hasan (a finance cost free loan with no repayment terms). The Company maintains a full provision against the Qard Hasan. The company maintains full power in the management of the loan.
3.3 The amounts and expenses that have been debited to the subscribers accounts and the mechanism pursued by the company to record these amounts and expenses.
3.4 Gross Contributions
This item is to comprise all amounts due during the financial year in respect of Takaful contracts entered into regardless of the fact that such amounts may relate in whole or in part to a later financial year, and must include the following:
a. Contributions yet to be determined, where the contribution calculation can be done only at the end of the year;
b. Individual contributions, including annuity contributions, and, in long-term business, individual contributions resulting from bonus and rebate provisions in so far as they must be considered as contributions under the terms of the contract;
c. Additional contributions in the case of half-yearly, quarterly or monthly payments and additional payments from participants for expenses borne by the Company;
d. In the case of co-Takaful, the Company’s portion of total contributions;
e. Re-Takaful contributions due from ceding and retroceding Takaful undertakings, including portfolio entries, after deduction of cancellations and portfolio withdrawals credited to ceding and retroceding Takaful undertakings.
3.5 Zakat
Zakat is calculated on the basis of the rates prescribed according to the Islamic Supervisory Committee and prevailing laws, regulations, and instructions in state.
3.6 Statutory Deposit
In accordance with Federal Law No. (6) of 2007, the Company shall place a deposit at a Bank in the State as guarantee of fulfilling its liabilities and amounting to AED 4 million for Takaful of Persons and Fund Accumulation Operations, and AED 2 million per line of business for Property and Liability Insurance, not to exceed AED 6 million.
3.7 Takaful Receivables
This item consists of the following:
December 31,
20XX 20YY
AED000 AED000
Due from Participants Less:
Allowance for Doubtful Debts
Due from Takaful/ re-Takaful operators
Due from brokers/ agents Less:
Allowance for Doubtful Debts
Insurance Receivable – Net
Inside UAE:
December 31,
20XX 20YY
AED000 AED000
Due from Participants
Less: Allowance for Doubtful Debts
Due from Takaful/ re-Takaful operators Due
from brokers/ agents Less: Allowance for
Doubtful Debts
Insurance Receivable - Net
Outside UAE:
December 31,
20XX 20YY
AED000 AED000
Due from Participants
Less: Allowance for Doubtful Debts
Due from Takaful/ re-Takaful operators Due
from brokers/ agents Less: Allowance for
Doubtful Debts
Insurance Receivable - Net
Note: The receivables ageing details to be disclosed separately for participants, Takaful companies, re-Takaful companies, brokers and agents in the below format:
Inside UAE:
December 31,
20XX 20YY
AED 000 AED000
Less than 30 days 30 – 90
days 91 – 180 days 181 –
270 days 271 – 360 days
More than 360 days
Total
Outside UAE:
December 31,
20XX 20YY
AED000 AED 000
Less than 30 days
30 – 90 days 91 – 180
days 181 – 270 days 271
– 360 days More than
360 days
Total
Movement on the provision for doubtful debts during the year was as follows:
December 31
20XX 20YY
AED AED
Balance at the beginning of the year
Additions
Balance at year end
3.8 Other Receivables and Prepayments
December 31,
20XX 20YY
AED000 AED000
Receivable from Employees
Refundable Deposits
Prepayments
Others
Other Receivables and Prepayments
3.9 Takaful Payables
This item consists of the following:
December 31,
20XX 20YY
AED000 AED 000
Payables – Inside UAE Payables
– Outside UAE
Total
Inside UAE:
December 31,
20XX 20YY
AED 000 AED 000
Payables
Payables from insurance companies
Payables from re-insurance companies
Payables from Insurance agents Payables
from Insurance Brokers Payables from staff
Other payables
Total
Outside UAE:
December 31,
20XX 20YY
AED AED
Payables
Payables from insurance companies
Payables from re-insurance companies
Payables from Insurance agents
Payables from Insurance Brokers
Payables from staff
Other payables
Total
3.10 Share Capital
Subscribed and paid – up capital amounted to AED XX distributed over XX shares, the par value of each is AED 1 as of December 31, 20XX (against AED XX million shares of AED 1 each as of December 31, 20YY).
3.11 Technical Provisions
This item consists of the following:
December 31,
20XX 20YY
AED AED
Insurance of Persons and Fund Accumulation:
Unearned Contribution Reserve
Incurred but Not Reported Reserve (Short-term life and Fund
Accumulation products of one year)
Mathematical Reserve
Unallocated Loss Adjustment Expense Reserve
Total Insurance of Person and Fund Accumulation Operations
Technical Provisions
Note: Technical provisions details in the above format to be provided for each class of insurance as defined by the Authority.
Adequate explanation for the method adopted should be given and the method should be consistent from year to year for technical provisions. In case the Actuary decides to change the method being used from previous years, sufficient explanation to the same needs to be provided.
3.12 Takaful net Contribution
a) Gross contributions
20XX 20YY
AED AED
Takaful Insurance of Persons
Total Gross Contributions Takaful Insurance of persons
Property and Liability Takaful
Total Gross Contributions for Property and Liability Takaful
Change in unearned contributions reserves
Total Gross Contributions
Note: Gross Contribution details in the above format to be provided for each class of insurance as defined by the Authority.
b) Contributions ceded to re-Takaful
20XX 20YY
AED000 AED 000
Takaful Insurance of Persons
Total Takaful Insurance of Persons Ceded to Re-insurers
Property and Liability Takaful Total
Property and Liability Takaful Contributions Ceded to Re-Takaful
Change in unearned contributions reserves
Total Contributions Ceded to Re-Takaful
Note: Contributions ceded to re-Takaful details in the above format to be provided for each class of insurance as defined by the Authority.
c) Re-Takaful share of accepted business contributions
20XX 20YY AED 000 AED 000 Takaful Insurance of persons
Total Takaful Insurance of persons for accepted share of re-Takaful business Property and Liability Takaful
Total Property and Liability Takaful Contributions for accepted share of re-Takaful
business
Change in unearned contributions reserves
Total Contributions for accepted share of re-Takaful business
Note: Re-Takaful share of accepted business contributions details in the above format to be provided for each class of insurance as defined by the Authority.
Total Net Contribution (a-b+c)
3.13 Net Claims Paid
a) Gross claims paid
20XX 20YY
AED 000 AED 000
Takaful Insurance of persons
Total Gross Claims Takaful Insurance of persons
Property and Liability Takaful
Total Gross Claims for Property and Liability Takaful Total
Gross Claims
Note: Gross Claims Paid details in the above format to be provided for each class of insurance as defined by the Authority.
b) Re-Takaful share of claims
20XX 20YY
AED000 AED000
Takaful Insurance of persons
Total Takaful Insurance of persons’ Claims Ceded to Re-Takaful
Property and Liability Takaful
Total Property and Liability Takaful Claims Ceded to Re-Takaful Total
Claims Ceded to Re-Takaful
Note: Claims ceded to Re-Takaful details in the above format to be provided for each class of insurance as defined by the Authority.
c) Re-Takaful share of accepted business claims
20XX 20YY AED AED Takaful Insurance of persons
Total Takaful Insurance of persons’ Claims for accepted share of Re-Takaful
business
Property and Liability Takaful
Total Takaful Property and Liability Takaful Claims for accepted share of Re-Takaful
business
Total Claims for accepted share of Re-Takaful business
Note: Re-Takaful share of accepted business claims details in the above format to be provided for each class of insurance as defined by the Authority.
Total Net Claims (a-b+c)
3.14 Capital risk management
The solvency regulations identify the required Solvency Margin to be held in addition to insurance liabilities. The Solvency Margin (presented in the table below) must be maintained at all times throughout the year. The Company is subject to solvency regulations which it has complied with during the year. The Company has incorporated in its policies and procedures the necessary tests to ensure continuous and full compliance with such regulations.
The table below summarizes the Minimum Capital Requirement, Minimum Guarantee Fund and Solvency Capital Requirement of the Company and the total capital held to meet these required Solvency Margins.
December 31,
20XX 20YY
AED AED
Minimum Capital Requirement (MCR)
Solvency Capital Requirement (SCR)
Minimum Guarantee Fund (MGF)
Own Funds
Basic Own Funds
Ancillary Own Funds
MCR Solvency Margin (Surplus/Deficit)
SCR Solvency Margin (Surplus/Deficit)
MGF Solvency Margin (Surplus/Deficit)
3.15 Risk management
The listed risks should be disclosed in detailed, as a minimum:
a) Underwriting Risk.
b) Market and Liquidity (Investment) Risk.
c) Credit Risk.
d) Operational Risk.
3.16 Claims development schedule