2. Calculation of Eligible Capital

An AIFC-Incorporated Insurer must calculate its Eligible Capital in accordance with the Eligible Capital Calculation Table in rule 2.2 (Eligible Capital Calculation Table) and the provisions in this Schedule.

The Eligible Capital Calculation Table is as follows:

(A) Tier 1 Capital:

Permanent Share Capital

Undistributable Reserves

Fund for future appropriations

(B) Deductions from Tier 1 Capital

Investments in own shares

Intangible assets

Interim net losses

(C) Tier 1 Capital after deductions = A-B

(D) Tier 2 Capital:

Perpetual qualifying hybrid capital instruments

Fixed dividend ordinary shares

Subordinated debt

Fixed term preference shares

Any other item approved for inclusion as Tier 2 Capital at the discretion of the AFSA

(E) Total Tier 1 Capital plus Tier 2 Capital = C+D

(F) Deductions from Total of Tier 1 and Tier 2 Capital:

Investments in subsidiaries and associates

Connected lending of a capital nature

Inadmissible assets

(G) Total Tier 1 Capital plus Tier 2 Capital after deductions = E-F = Total Eligible Capital

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