5. Deductions from total of Tier 1 and Tier 2 Capital

An AIFC-Incorporated Insurer must deduct investments in subsidiaries and associates from the total of Tier 1 Capital and Tier 2 Capital.

An AIFC-Incorporated Insurer must deduct connected lending of a capital nature from the total of Tier 1 and Tier 2 Capital.

An AIFC-Incorporated Insurer must deduct the following inadmissible assets from the total of Tier 1 Capital and Tier 2 Capital:

(a) tangible fixed assets, including inventories, plant and equipment and vehicles;
(b) deferred acquisition costs;
(c) deferred tax assets;
(d) deficiencies of net assets in subsidiaries;
(f) any investment by a subsidiary of the AIFC-Incorporated Insurer in the AIFC-Incorporated Insurer’s own shares;
(g) holdings of other investments which are not readily realisable investments; and
(h) any other assets to be deducted from Eligible Capital as directed by the AFSA.

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