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Manual for Preparation of Returns for Insurance and Reinsurance Firms

Chapter 1. Introduction

1.     The purpose of this Manual for Preparation of Returns for Insurance and Reinsurance Firms (hereinafter – Manual) is to outline templates for reporting on financial, prudential and financial conduct performance and provide guidance on their completion. The Manual is applicable to all Firms authorised by the Astana Financial Services Authority (hereinafter – AFSA) to conduct Insurance Business (hereinafter – Insurer). This Manual is updated at the situation may require.

2.     The Manual complies with the AIFC General Rules (AIFC Rules No. FR0001 of 2017, hereinafter – GEN), AIFC Conduct of Business Rules (AIFC Rules No. FR0005 of 2017, hereinafter – COB), AIFC Insurance and Reinsurance Prudential Rules (AIFC Rules No. FR0030 of 2018, hereinafter - PINS) except where otherwise provided.

Chapter 3. Reporting rules

8.     An Insurer must prepare and submit to the AFSA returns outlined in para.5, 6 and 7 made in thousand of USD with explanatory note disclosing key points of reports to be submitted, for following reports within submission periods outlined below:

  1. 8.1) annual returns within 4 months after reporting year ends;
  2. 8.2) biannual returns within 1 month after reporting period ends;
  3. 8.3) quarter returns within 1 month after reporting quarter ends;

9. If an AIFC Insurer breaches or expects to breach a prudential requirement set by the AFSA or Financial Services Regulator in its jurisdiction of incorporation, it must immediately notify the AFSA and must give the AFSA copies of any relevant documents (including all relevant documents submitted to that Financial Services Regulator).

10. Reports outlined in para 5,6 and 7 of this Manual must be submitted to the AFSA by way of official e-communication channels. The transmission should include scanned copies of signed reports and supporting documentation in Ms Excel.


Annex. 1.1. Balance Sheet of Insurer


BALANCE SHEET OF INSURER

INS100


Name:

 


Period Ending:

 


(All amounts rounded to nearest [USD]'000)

 












ASSETS

LINE NO.

INSURANCE Ltd or PLC


Reporting period

Reporting period -1




A

B


Cash and balances

1




Cash in hand

2




Call Deposits

3




Term deposits < 3 months

4




Term deposits > 3 months

5




Premium Receivable

6




From unrelated entities

7




From associates and related parties

8




Less: Allowance for doubtful accounts

9




Reinsurance Receivable

10




Unrelated reinsurers - share of paid claims and other receivables/recoverable

10A




Unrelated reinsurers - share of outstanding claims and IBNR

11




Unrelated reinsurers - share of unearned premiums

12




Related reinsurers - share of paid claims and other receivables / recoverables

12A




Related or associated reinsurers - share of outstanding claims and IBNR

13




Related or associated reinsurers - share of unearned premium reserve

14




Less: Allowance for doubtful accounts

15




Deferred sales receivables (murabaha, salam, istisna'a)

16

 

 


Other Receivables

17




From unrelated parties

18




From associates and related parties

19




From directors, officers and/or employees

20




Less: Allowance for doubtful accounts

21




Short term negotiable securities

22




Negotiable Certificates of Deposit

23




Short-term government securities

24




Sukuk

25




Other

26




Less: Credit impairments

27




Investment and trading securities

28




Listed equities

29




Unlisted equities

30




Commodities

31




Sukuk

32




Other government and government-guaranteed securities

33




  Other securities, loans or islamic investments

34

 

 


Other debt securities

35




Less: Impairment

36




Derivative financial instruments

37




Deferred acquisition costs

38




Other loans or Islamic investments

39




Mudaraba and Musharaka financing

40

 

 


Pledged Assets

41




Funds Withheld

42




Investment property

43




Investment in subsidiaries, associates or joint arrangements

44




Investment in subsidiary companies

45




Investment in associate companies

46




Investment in joint arrangements

47




Non-current assets held for sale

48




Intangible assets

49




Goodwill

50




Software and capitalised development costs

51




Other

52




Property, plant and equipment

53




Current income tax receivables

55




Deferred tax assets

56




Investments for account of holders of funds

57




Post-employment assets

60




Other assets

61




 

 




TOTAL ASSETS

63














LIABILITIES

LINE NO.

INSURANCE Ltd or PLC


Reporting period

Reporting period -1




A

B


Technical reserves - general insurance

64




Gross outstanding claims

65




Claims incurred but not reported

66




Premium deficiency reserve

67




Other technical reserves

68




Technical reserves - long-term insurance

69




Unearned premium reserve

70




Reinsurance balances payable

71




To unrelated reinsurers

72




To related or associated reinsurers

73




Accounts payable

73A




Bank loans and mortgages

74




Derivative financial instruments

75




Term debt instruments

76




Qualifying as capital

77




   Sukuk

78




Other

79




Dividends payable

80




Retirement benefit obligations

83




Current income tax liabilities

85




Deferred tax liabilities

86




Other intra-group liabilities

87




Investment contracts for holders of funds

90




Other liabilities

91




TOTAL LIABILITIES

93




Total equity attributable to equity holders

95




Share capital

96




Retained earnings

97




Accumulated foreign exchange reserves

98




Unrealized gains/losses on investments

99




Other reserves

100




Other distributable reserves

101




Other non-distributable reserves

102




Preferential shareholders

103




Non-controlling Interests

104




TOTAL SHAREHOLDER EQUITY

105




TOTAL EQUITY AND LIABILITIES

106














Analysis of Cash and Balances

LINE NO.

INSURANCE Ltd or PLC


Reporting period

Reporting period -1




A

B


Domestic Bank

107

 

 


of which: Inside AIFC

108

 

 


Foreign Bank

109

 

 












OFF-BALANCE SHEET ACTIVITIES





COMMITMENTS AND CONTINGENCIES

LINE NO.

INSURANCE Ltd or PLC


Reporting period

Reporting period -1




A

B


Lending of securities or posting of securities as collateral

111

 

 


Committed capital expenditure

112

 

 


Operating lease commitments

113

 

 


Other contingencies and commitments

114

 

 


TOTAL

115

 

 


 

 

 

Name/ Position

Signature

Date

 

 

 

 

 

 

Name/ Position

Signature

Date




Instructions on Annex 1.1. template on Balance Sheet of Insurers to the Manual is aimed at reporting on assets, liabilities, shareholders’ equity with disclosure of each line.

The Balance Sheet Report must be recorded and reported in compliance with the International Financial Reporting Standards and requirements of the AIFC for reporting quarter and quarter prior to reporting quarter.


Line 63. Total Assets – is total of the line 1. Cash and balances, line 6. Premium receivables, line 10. Reinsurance receivables, line 17. Other receivables, line 22. Short term negotiable securities, line 28. Investment and trading securities, line 37. Derivative financial instruments, line 38. Deferred acquisition costs, line 39. Other loans or Islamic investments, line 41. Pledged assets, line 42. Funds withheld, line 43. Investment property, line 44. Investment in subsidiaries, associates or joint arrangements, line 48. Non-current assets held for sale, line 49. Intangible assets, line 53. Property, plant and equipment, line 55. Current income tax receivables, line 56. Deferred tax assets, line 57. Investments for account of holders of funds, line 60. Post-employment assets and line 61. Other assets.


Line 1 Cash and balances – is the total of line 2. Cash in hand, line 3. Call Deposits, line 4. Term deposits with yield-to-maturity less than 3 months and line 5. Term deposits with yield-to-maturity over 3 months;  


Line 6. Premium receivables – is the total of line 7. From unrelated entities, line 8. From associates and related parties and subtract line 9. Less: Allowance for doubtful accounts.


Line 10. Reinsurance receivables – is the total of line 10A. Unrelated reinsurers - share of paid claims and other receivables/recoverable, line 11. Unrelated reinsurers - share of outstanding claims and IBNR, line 12. Unrelated reinsurers - share of unearned premiums, line 12A. Related reinsurers - share of paid claims and other receivables / recoverables, line 13. Related or associated reinsurers - share of outstanding claims and IBNR, line 14. Related or associated reinsurers - share of unearned premium reserve and subtract line 15. Less: Allowance for doubtful accounts.


Line 17. Other receivables – is the total of line 18. From unrelated parties, line 19. From associates and related parties, line 20. From directors, officers and/or employees and subtract line 21. Less: Allowance for doubtful accounts.


Line 22. Short term negotiable securities – is the total of line 23. Negotiable Certificates of Deposit, line 24. Short-term government securities, line 25. Sukuks, line 26. Other Short term negotiable securities and subtract the line 27. Less: Credit impairments.


Line 28. Investment and trading securities – is the total of line 29. Listed equities, line 30. Unlisted equities, line 31. Commodities, line 32. Sukuks, Line 33. Other government and government-guaranteed securities, line 35. Other debt securities and subtract the line 36. Less: Impairment.


Line 44. Investment in subsidiaries, associates or joint arrangements – is the total of line 45. Investment in subsidiary companies, line 46. Investment in associate companies and line 47. Investment in joint arrangements.


Line 49. Intangible assets – is the total of the line 50. Goodwill, line 51. Software and capitalised development costs and line 52. Other Intangible assets.


Line 106. Total Equity and Liabilities – is the total of line 93. Total Liabilities and line 105. Total Shareholder Equity.


Line 93. Total Liabilities – is the total of line 64. Technical reserves - general insurance, line 69. Technical reserves - long-term insurance, line 70. Unearned premium reserve, line 71. Reinsurance balances payable, line 73A. Accounts payable, line 74. Bank loans and mortgages, line 75. Derivative financial instruments, line 76. Term debt instruments, line 80. Dividends payable, line 83. Retirement benefit obligations, line 85. Current income tax liabilities, line 86. Deferred tax liabilities, line 87. Other intra-group liabilities, line 90. Investment contracts for holders of funds and line 91. Other liabilities


Line 64. Technical reserves - general insurance – is the total of line 65. Gross outstanding claims, line 66. Claims incurred but not reported, line 67. Premium deficiency reserve and 68. Other technical reserves.


Line 71. Reinsurance balances payable – is the total of line 72. Reinsurance balances payable to unrelated reinsurers and line 73. Reinsurance balances payable to related or associated reinsurers.


Line 76. Term debt instruments - is the total of line 77. Qualifying as capital, line 78. Sukuk and line 79. Other term debt instruments

Line 105. Total shareholder equity – is the total of line 95. Total equity attributable to equity holders, line 103. Preferential shareholders and line 104. Non-controlling Interests.


Line 95. Total equity attributable to equity holders – is the total of line 96. Share capital, line 97. Retained earnings, line 98. Accumulated foreign exchange reserves, line 99. Unrealized gains/losses on investments and line 100. Other reserves (includes line 101. Other distributable reserves and line 102. Other non-distributable reserves).


The total of line 107. Cash and Balances placed in Domestic Bank (incl. line 108. Cash and Balances placed in Banks inside AIFC) and line 109. Cash and Balances placed in Foreign Bank of Analysis of Cash and Balances is equal to the line 1. Cash and balances of Assets.


Line 115. Total off-balance sheet activities – is the total of the line 111. Lending of securities or posting of securities as collateral, line 112. Committed capital expenditure, line 113. Operating lease commitments and line 114. Other contingencies and commitments.

Annex. 1.2. Balance Sheet of Branch of Insurer incorporated outside of AIFC


BALANCE SHEET OF BRANCH OF INSURER INCORPORATED OUTSIDE OF AIFC

INS100


Name:

 


Period Ending:

 


(All amounts rounded to nearest [USD]’000)

 












ASSETS

LINE NO.

INSURANCE -Branch (Company level)


Reporting period

Reporting period -1




C

D


Cash and balances

1

 

 


Premium Receivable

6

 

 


Reinsurance Receivable

10

 

 


Other Receivables

17

 

 


Short term negotiable securities

22

 

 


Investment and trading securities

28

 

 


Deferred acquisition costs

38

 

 


Other loans or Islamic investments

39

 

 


Pledged Assets

41

 

 


Funds Withheld

42

 

 


Investment property

43

 

 


Investment in subsidiaries, associates or joint arrangements

44

 

 


Intangible assets

49

 

 


Property, plant and equipment

53

 

 


Current and deferred tax asset

54

 

 


Investments for account of holders of funds

57

 

 


Other assets

61

 

 


 

 

 

 


TOTAL ASSETS

63














LIABILITIES

LINE NO.

INSURANCE -Branch (Company level)


Reporting period

Reporting period -1




C

D


Technical reserves - general insurance

64

 

 


Technical reserves - long-term insurance

69

 

 


Unearned premium reserve

70

 

 


Reinsurance balances payable

71

 

 


Accounts payable

73A

 

 


Term debt instruments

76

 

 


Current and deferred tax liabilities

84

 

 


Investment contracts for holders of funds

90

 

 


Other liabilities

91

 

 


Head Office Accounts

92




TOTAL LIABILITIES

93




 

 

 

Name/ Position

Signature

Date

 

 

 

 

 

 

Name/ Position

Signature

Date



Instructions on Annex 1.2. template on Balance Sheet of Branch of Insurer incorporated outside of AIFC to the Manual is aimed at reporting on assets and liabilities with disclosure of each line.


The Balance Sheet of Branch of Insurer incorporated outside of AIFC must be recorded and reported in compliance with the International Financial Reporting Standards and requirements of the AIFC for reporting quarter and quarter prior to reporting quarter. 


Line 63. Total Assets – is the total of the line 1. Cash and balances, line 6. Premium Receivable, line 10. Reinsurance Receivable, line 17. Other Receivables, line 22. Short term negotiable securities, line 28. Investment and trading securities, line 38. Deferred acquisition costs, line 39. Other loans or Islamic investments, line 41. Pledged Assets, line 42. Funds Withheld, line 43. Investment property, line 44. Investment in subsidiaries, associates or joint arrangements, line 49. Intangible assets, line 53. Property, plant and equipment, line 54. Current and deferred tax asset, line 57. Investments for account of holders of funds and line 61. Other Assets.


Line 93. Total Liabilities – is the total of line 64. Technical reserves - general insurance, line 69. Technical reserves - long-term insurance, line 70. Unearned premium reserve, line 71. Reinsurance balances payable, line 73A. Accounts payable, line 76. Term debt instruments, line 84. Current and deferred tax liabilities, line 90. Investment contracts for holders of funds, line 91. Other Liabilities and line 92. Head Office Accounts.


Line 92. Head Office Accounts – is the total of liabilities of Branch of Insurer incorporated outside of AIFC which has characteristics of Equity Share Capital (e.g. working capital) and adjuster due to the financial results of a branch.

Annex. 1.3. Income Statement of Insurer



INCOME STATEMENT OF INSURER

INS200

Name:

 

Period Ending:

 

(All amounts rounded to nearest [USD]’000)

 













DESCRIPTION

Line no.

INSURANCE Ltd or PLC

Reporting period since the beginning of the year

Reporting period -1 since the beginning of the year

Total

A

B

Gross premiums written

1


 

Less: Reinsurance premiums ceded

2



Net premiums written

3



Change in Net unearned premiums

4



Net premiums earned

5



Fee income

6



Commission income

7



Other operating income

9



Total Insurance Income

10



 

 



Loss and loss adjustment expenses

14



Gross claims paid

15



Less: reinsurance share of gross claims paid

16



Outstanding claims adjustment - gross

17



Less: Outstanding claims adjustment – reinsurance share

18



Policyholder benefits and claims (long-term insurance)

19



Commission, brokerage expenses, and acquisition costs

20



Staff costs

22



Computer processing

23



Communication and travel

24



Occupation and accommodation

25



Marketing

26



Professional fees

27



Office equipment and consumables

28



Auditors' remuneration

29



Other operating expenses

31



Total Insurance Expenses

36



 

 



Underwriting profit/(loss)

37



 

 



Investment income

 



Interest income

38



Dividend income - from subsidiary and associate companies

40



Dividend income - other

41



Fair value gains and losses through profit and loss

42



Profit / (loss) on sale of available-for-sale assets

43



Other realized gain/(loss) on sale of investments

44



Rental Income

46



Other investment income

47



Less: investment expenses

48



 

 



Net Investment Income

51



Operating profit from ordinary activities

56



 

 



Intangibles (impairment/realisation)

59



Impairment of investments

60



Impairment of other capital items

61



Share of profit / (loss) of associates and joint ventures

62



 

 



Profit (loss) before taxation

64



Tax on profit / (recoverable)

65



Profit / (loss) for the period

66



 

 



Attributable to:

 



Equity holders of the company

69



Preference shareholders and minority shareholders

70

 

 

 

 

 

Name/ Position

Signature

Date

 

 

 

 

 

 

Name/ Position

Signature

Date


Instructions on Annex 1.3. template on Income Statement of Insurers to the Manual is aimed at reporting on profits and losses.


The Income Statement of Insurers must be recorded and reported in compliance with the International Financial Reporting Standards and requirements of the AIFC for reporting quarter since the beginning of the year and quarter prior to reporting quarter since the beginning of the year.


Line 66. Profit / (loss) for the period – is line 65. Tax on profit / (recoverable) subtracted out of line 64. Profit (loss) before taxation.


  1. Line 65. Tax on profit / (recoverable) – is the taxes on profits recorded in compliance with the International Financial Reporting standards and requirements of the AIFC on taxation.
  2. Line 64. Profit (loss) before taxation – is the total of line 56. Operating profit from ordinary activities, line 59. Intangibles ((impairment)/realisation), line 60. (Impairment) of investments, line 61. Impairment of other capital items and line 62. Share of profit / (loss) of associates and joint ventures.

Line 56. Operating profit from ordinary activities – is the total of line 37. Underwriting profit/(loss) and line 51. Net Investment Income.

Line 37. Underwriting profit/(loss) – is the line 36. Total Insurance Expenses subtracted from line 10. Total Insurance Income.

Line 10. Total Insurance Income – is the total of line 5. Net premiums earned, line 6. Fee income, line 7. Commission income and line 9. Other operating income.

Line 5. Net premiums earned – is the line 4. Change in unearned premiums subtracted from line 3. Net premium written.

Line 4. Change in Net unearned premiums – Net unearned premiums on the beginning of reporting period subtracted from Net unearned premiums for the end of reporting period

Line 3. Net premiums written – is the line 1. Gross premiums written with subtracted line 2. Less: Reinsurance premiums ceded.

Line 36. Total Insurance Expenses – is the total of line 14. Loss and loss adjustment expenses, line 19. Policyholder benefits and claims (long-term insurance), line 20. Commission, brokerage expenses, and acquisition costs, line 22. Staff costs, line 23. Computer processing, line 24. Communication and travel, line 25. Occupation and accommodation, line 26. Marketing, line 27. Professional fees, line 28. Office equipment and consumables, line 29. Auditors' remuneration and line 31. Other operating expenses.

Line 51. Net Investment Income – is the total of line 38. Interest income, line 40. Dividend income - from subsidiary and associate companies, line 41. Dividend income – other, line 42. Fair value gains and losses through profit and loss, line 43. Profit / (loss) on sale of available-for-sale assets, line 44. Other realized gain/(loss) on sale of investments, line 46. Rental Income, line 47. Other investment income with subtracted line 48. Less: investment expenses.

Annex. 1.4. Income Statement of Branch of Insurer incorporated outside of AIFC


INCOME STATEMENT OF BRANCH OF INSURER INCORPORATED OUTSIED OF AIFC

INS200


Name:

 


Period Ending:

 


(All amounts rounded to nearest [USD]’000)

 
















DESCRIPTION

Line no.

INSURANCE-Branch

(Company level)

INSURANCE-Branch level


Reporting period since the beginning of the year

Reporting period -1 since the beginning of the year

Reporting period since the beginning of the year

Reporting period -1 since the beginning of the year









C

D

E

F


Gross premiums written

1

 

 

 

 


Less: Reinsurance premiums ceded

2

 

 

 

 


Net premiums written

3






Change in unearned premiums

4






Net premiums earned

5






Fee income

6






Commission income

7






Other operating income

9






Total Insurance Income

10






 

 






Loss and loss adjustment expenses

14






Gross claims paid

15






Less: reinsurance share of gross claims paid

16

 

 

 

 


Outstanding claims adjustment - gross

17

 

 

 

 


Less: Outstanding claims adjustment – reinsurance share

18

 

 

 

 


Policyholder benefits and claims (long-term insurance)

19

 

 

 

 


Commission, brokerage expenses, and acquisition costs

20

 

 

 

 


General and administration expenses

21

 

 

 

 


Staff costs

22

 

 

 

 


Computer processing

23

 

 

 

 


Communication and travel

24

 

 

 

 


Occupation and accommodation

25

 

 

 

 


Marketing

26

 

 

 

 


Professional fees

27

 

 

 

 


Office equipment and consumables

28

 

 

 

 


Auditors' remuneration

29

 

 

 

 


Allocation of expenses from head office

30

 

 

 

 


Other operating expenses

31

 

 

 

 


Total Insurance Expenses

36






 

 






Underwriting profit/(loss)

37






 

 






Investment income

 






Interest income

38






Other investment income

47






Less: investment expenses

48

 

 

 

 


 

 

 

 

 

 


Net Investment Income

51






 

 






Operating profit from ordinary activities

56






 

 






Other income / (expenses)

57






Reimbursement of expenses from head office

58






Profit (loss) before taxation

64






Tax on profit / (recoverable)

65






Profit / (loss) for the period

66














 

 

 

 

Name/ Position

Signature

Date

 

 

 

 

 

 

Name/ Position

Signature

Date


Instructions on Annex 1.4. template on Income Statement of Branch of Insurers incorporated outside of AIFC to the Manual is aimed at reporting on profits and losses.


The Income Statement of Branch of Insurers incorporated outside of AIFC must be recorded and reported in compliance with the International Financial Reporting Standards and requirements of the AIFC for reporting quarter since the beginning of the year and quarter prior to reporting quarter since the beginning of the year for the branch level and company level.


Line 66. Profit / (loss) for the period – is line 65. Tax on profit / (recoverable) subtracted of line 64. Profit (loss) before taxation


Line 65. Tax on profit / (recoverable) - is the taxes on profits recorded in compliance with the International Financial Reporting standards and requirements of the AIFC on taxation.


The line 64. Profit (loss) before taxation – is the total of line 56. Operating profit from ordinary activities and 57. Other income / (expenses).


Line 56. Operating profit from ordinary activities – is the total of line 37. Underwriting profit/(loss) and line 51. Net Investment Income.


Line 37. Underwriting profit/(loss) – is line 36. Total Insurance Expenses subtracted of line 10. Total Insurance Income


Line 10. Total Insurance Income – is the total of line 5. Net premiums earned, line 6. Fee income, line 7. Commission income and line 9. Other operating income.


Line 5. Net premiums earned – is the total of line 3. Net premiums written and line 4. Change in unearned premiums


Line 3. Net premiums written – is line 2. Less: Reinsurance premiums ceded subtracted of line 1. Gross premiums written


Line 51. Net Investment Income – is line 48. Less: investment expenses subtracted of the total of line 38. Investment Interest income and line 47. Other investment income.

Annex. 1.5. Analysis of Derivative Activities



ANALYSIS OF DERIVATIVE ACTIVITIES

INS111



















Name:

 



















Period Ending:

 



















(All amounts rounded to nearest [USD]’000)

 









































 

DERIVATIVES

Line no.

Interest Rate Contracts

Equity Contracts

Other Derivative Contracts

Foreign Exchange Contracts (incl. Gold)

Commodity Contracts (excl. Gold)

 

Turn-over

Notional Principal Amount

Fair Value (Asset)

Fair Value (Liab.)

Turn-over

Notional Principal Amount

Fair Value (Asset)

Fair Value (Liab.)

Turn-over

Notional Principal Amount

Fair Value (Asset)

Fair Value (Liab.)

Turn-over

Notional Principal Amount

Fair Value (Asset)

Fair Value (Liab.)

Turn-over

Notional Principal Amount

Fair Value (Asset)

Fair Value (Liab.)

 

A

B

C

D

E

F

G

H

I

J

K

L

M

N

O

P

Q

R

S

T

 

Totals

1





















 

Exchange-traded derivatives

2





















 

Over-The-Counter Derivatives

3





















 

Forwards

4





















 

Swaps

5





















 

Bought options

6





















 

- Puts

7





















 

- Calls

8





















 

Written options

9





















 

- Puts

10





















 

- Calls

11





















 

Credit derivatives - bought protection

12





















 

Credit derivatives - sold protection

13





















 

Other

14





















 

of which: OTC derivatives with

15





















 

- Parent entity

16





















 

- Controlled entities

17

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- Associates / joint arrangements

18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- Other related parties

19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 





































 

 

 

Name/ Position

Signature

Date

 

 

 

 

 

 

Name/ Position

Signature

Date


Instructions on Annex 1.5. template on Analysis of Derivative Activities of Insurers to the Manual is aimed at reporting on derivative activities.


The Analysis of Derivative Activities of Insurers must be recorded and reported in compliance with the International Financial Reporting Standards and requirements of the AIFC for the Actual balances at period-end.


The Analysis of Derivative Activities must be reported on contracts on Interest Rate, Equity, Other Derivative not mentioned in a line, Foreign Exchange (including Gold) and Commodity (excluding Gold) with an information on Turnover, Notional Principal Amount, Fair Value (Assets) and Fair Value (Liabilities).


Line 1. Totals – is the total of line 2. Exchange-traded derivatives and line 3. Over-The-Counter Derivatives.


Line 3. Over-The-Counter Derivatives – is the total of line 4. Forwards, line 5. Swaps, line 6. Bought options, line 9. Written options, line 12. Credit derivatives- bought protection, line 13. Credit derivatives - sold protection and line 14. Other Over-the-counter derivatives.


             Line 6. Bought options – is the total of line 7. Bought Put Options and line 8. Bought Call Options


             Line 9. Written options – is the total of line 10. Written Put Options and line 11. Bought Call Options.


Line 14. Other Over-The-Counter Derivatives – is Over-The-Counter Derivatives other than derivatives mentioned in the line 1-13 of the template on Analysis of Derivative Activities with clarification in line 15.

Annex. 1.6. Analysis of Investment Concentrations in Foreign Currency



ANALYSIS OF INVESTMENT CONCENTRATIONS IN FOREIGN CURRENCY

INS113











Name:

 











Period Ending:

 











(All amounts rounded to nearest [USD]’000)

 

























 















 















 

NET OPEN POSITION IN FOREIGN CURRENCY














Items denominated in foreign currencies

Line no.

USD

KZT

USD-pegged

EUR

GBP

CHF

JPY

INR

RUB

RMB

Add Currency

Total

Foreign Currency Assets1

1













Cash and balances

2













Short term negotiable securities

3













Premiums receivable

4













Reinsurance receivable

5













Debt securities

6













Commodities

7













Equity investments

8













Other assets

9













Foreign Currency Liabilities

10













Technical provisions / Policyholder liabilities

11













Reinsurance payable

12













Bank loans and mortgages

13













Term debt instruments

14













Other liabilities

15













Total equity attributable to equity holders

16













Preference shareholders

17













Total Equity and Liabilities

18













Net position on foreign currency instruments

19













Principal of financial derivative contracts in a bought position

20













Of which: options in a bought position

21













Principal of financial derivative contracts in a sold position

22













Of which: options in a sold position

23













Net open position on foreign exchange for on-balance sheet items (excluding own equity)

24













Net receipts not yet accrued but fully hedged

25













Net payments not yet accrued but fully hedged

26













Guarantees (and similar instruments) that are certain to be called and likely to irrevocable

27













Other exposures

28













Total net open position in foreign exchange (excluding own equity)

29













Total net open position in foreign exchange

30









































1 Include pledged assets in applicable categories

















































 

 

 

Name/ Position

Signature

Date

 

 

 

 

 

 

Name/ Position

Signature

Date


Instructions on Annex 1.6. template on Analysis of Investment Concentrations in Foreign Currency to the Manual is aimed at reporting on investment net open position.


The Analysis of Investment Concentration in Foreign Currency must be recorded and reported in compliance with the International Financial Reporting Standards and requirements of the AIFC for the Actual balances at period-end segregated in different types of foreign currencies.


Line 30. Total net open position in foreign exchange – is line 16. Total equity attributable to equity holders and line 17. Preference shareholders subtracted of line 29. Total net open position in foreign exchange (excluding own equity)


Line 29. Total net open position in foreign exchange (excluding own equity) – is the total of line 24. Net open position on foreign exchange for on-balance sheet items (excluding own equity), line 25. Net receipts not yet accrued but fully hedged, line 26. Net payments not yet accrued but fully hedged, line 27. Guarantees (and similar instruments) that are certain to be called and likely to irrevocable and line 28. Other exposures.

Annex. 1.7. Analysis of Investment Concentrations Risk



ANALYSIS OF INVESTMENT CONCENTRATIONS RISK

INS114



Name:

 



Period Ending:

 



(All amounts rounded to nearest [USD]’000)

 















Investment Concentration Risk - 5 largest exposures to unrelated parties

Line no.

On-balance sheet exposure

Off-balance sheet exposure

Total

(Col A + B)


Counterparty

A

B

C


 

1




1

 

2




2

 

3




3

 

4




4

 

5




5

Total

6

















Add Country






Investment concentration risk - Geographical distribution

Line no.

On-balance sheet exposure

Off-balance sheet exposure

Total

(Col A + B)

Total impairment

A

B

C

D

Total

 7





Country 1

 8





Country N

 …





 

 

 

Name/ Position

Signature

Date

 

 

 

 

 

 

Name/ Position

Signature

Date




Instructions on Annex 1.7. template on Analysis of Investment Concentrations Risk to the Manual is aimed at reporting on investments concentrations risk.


The Analysis of Investment Concentrations Risk must be recorded and reported in compliance with the International Financial Reporting Standards and requirements of the AIFC.


Line 6. Total Investment Concentration Risk - 5 largest exposures to unrelated parties – is total of Investment Concentration Risk – 5 largest exposures to unrelated parties recorded in On-Balance (column A) in line 1-5 and Off-Balance (column B) Sheet Exposures in lines 1-5. resulted in column C Total.


Line 1 – 5. – counterparties with the top 5 largest exposures to unrelated parties On-Balance (column A) and Off-Balance (Column B) Sheet Exposures and resulted column A and column B in total in column C Total.

Annex. 1.8. Supplementary Information

SUPPLEMENTARY INFORMATION

INS210

Name:

 

Period Ending:

 

(All amounts rounded to nearest [USD]’000)

 


 

Line no.

Current quarter

A

The current cash balance held in Kazakhstan bank accounts for use by the branch

1

 

Value of any other liquid assets held and for use by the branch

2

 

 

 

 

The company's current capital requirement in their home jurisdiction (if more than one test is used to determine the minimum capital requirement list the highest amount)

3

 

The amount by which the company exceeds the home jurisdiction's capital requirement, net of any deductions required by the home jurisdiction 

4

 

 

 

 

Amount of any Dividends, and other distributions, declared or paid during the period

5

 

 

 

 

Staffing

 

 

Number of staff resident in Kazakhstan

6

 

Number of agents in Kazakhstan

7

 

Number of staff that do significant work for AIFC entity that are not resident in Kazakhstan

8

 


Complaints - to be completed if the firm does business with commercial or retail customers

 

Current quarter

Current year to date

A

B

Number of complaints from commercial or retail customers received over the reporting period

9

 

 

Number of complaints from retail customers referred to the [XXX]

9A

 

 

 

 

 

 

Number of complaints by category:

 

A

B

 Advising, selling and arranging 

10

 

 

General admin or customer service, including delays

11

 

 

Price, terms, coverage or disputed sums or charges

12

 

 

 Arrears-related

13

 

 

 Denial of claim

14

 

 

Complaints about third-party providers (for example, third party administrators)

15

 

 

 Unauthorised transaction

16

 

 

 Other

17

 

 

 

 

 

 

Number of complaints by line of business:

 

A

B

Accident

18

 

 

Sickness

19

 

 

Land vehicles

20

 

 

Railway rolling stock

21

 

 

Aircraft

22

 

 

Ships

23

 

 

Goods in transit

24

 

 

Fire and natural forces

25

 

 

Damage to property

26

 

 

Motor vehicle liability

27

 

 

Aircraft liability

28

 

 

Liability of ships

29

 

 

General liability

30

 

 

Credit

31

 

 

Suretyship

32

 

 

Miscellaneous financial loss

33

 

 

Legal expenses

34

 

 

Assistance

35



Space

36



Space liabilities

37



 

 

 

 

Life and annuity

35

 

 

Marriage and birth

36

 

 

Linked long-term

37

 

 

Permanent health

38

 

 


 

 

 

Name/ Position

Signature

Date

 

 

 

Name/ Position

Signature

Date

Instructions on Annex 1.8. template on Supplementary Information to the Manual is aimed at reporting on Insurers’ business.

Supplementary Information Report contains short overview on Capital Requirements and Liquid Assets, Staffing and Analysis of Complaints received.

Short overview of Analysis of Complaints received includes analysis by related categories of complaints and line of business of Insurers.

Annex. 1.9. Calculation of Eligible Capital


CALCULATION OF ELIGIBLE CAPITAL

INS300



Name:

 



Period Ending:

 



(All amounts rounded to nearest [USD]’000)

 















DESCRIPTION

Line no.

A

B

C

D

Tier One Capital

 

 

 

 

 

Permanent Share Capital

1

 

 

 

 

Share Premium Account

2

 

 

 

 

Capital redemption reserves

3





Accumulated unrealised profits net of accumulated unrealised losses

4





Any other item(s) or reserve(s) approved by the AFSA

5





 

 





Total Tier One Capital

6





 

 





Tier Two Capital

 





 

 





Item(s) or reserve(s) approved by the AFSA

7





 

 





Total Tier Two Capital

8





 

 





Total Tier One Capital plus Tier Two Capital

9





 

 





Deductions from Tier One and Tier Two Capital:

 





Investments in own shares

10





Investments in subsidiaries and associates

11





Connected lending of a capital nature

12





Any interim losses incurred in the financial year

13





Intangible assets

14





Tangible fixed assets

15





Deferred acquisition costs

16





Deferred tax assets that rely on future profitability

17





Deficiencies of net assets in subsidiaries

18





Any investment by a subsidiary in the firm's own shares

19





Investments in other insurers or financial institutions

20





Any other deductible amount(s) as directed by the AFSA

21





 

 





   Total deductions from Tier One and Tier Two Capital

22





 

 





Total Eligible Capital

23





 

 

 

Name/ Position

Signature

Date

 

 

 

 

 

 

Name/ Position

Signature

Date




Instructions on Annex 1.9. template on Calculation of Eligible Capital to the Manual is aimed at reporting on calculation of capital requirements and eligible capital.

The Analysis of Investment Concentrations Risk must be recorded and reported in compliance with the International Financial Reporting Standards and requirements of the AIFC.

Line 23. Total Eligible Capital – is line 9. Total Tier One Capital plus Tier Two Capital subtracted of line 22. Total deductions from Tier One and Tier Two Capital and resulted in column D.

Line 9. Total Tier One Capital plus Tier Two Capital – is the total of line 6. Total Tier One Capital resulted in column B. and line 8. Total Tier Two Capital resulted in column C.

                Line 6. Total Tier One Capital – is the total of line 1. Permanent Share Capital, line 2. Share Premium Account, line 3. Capital redemption reserves, line 4. Accumulated unrealised profits net of accumulated unrealised losses.  

Line 22. Total deductions from Tier One and Tier Two Capital – is the total of line 10. Investments in own shares, line 11. Investments in subsidiaries and associates, line 12. Connected lending of a capital nature, line 13. Any interim losses incurred in the financial year, line 14. Intangible assets, line 15. Tangible fixed assets, line 16. Deferred acquisition costs, line 17. Deferred tax assets that rely on future profitability, line 18. Deficiencies of net assets in subsidiaries, line 19. Any investment by a subsidiary in the firm's own shares, line 20. Investments in other insurers or financial institutions.

Annex. 1.10. Calculation of Prescribed Capital Requirements (PCR)


CALCULATION OF PRESCRIBED CAPITAL REQUIREMENT (PCR)

INS310



Name:

 



Period Ending:

 



(All amounts rounded to nearest [USD]’000)

 















Type of Insurance Firm

1

 

 

 

 

 

 

 

 

 

 

Capital Floor






Paid up share capital






Amount Paid up share capital is > Capital Floor












Capital Floor x 75%






Shareholders’ funds






Amount Shareholders’ funds is > Capital Floor x 75%












MINIMUM CAPITAL REQUIREMENT

2

 

 

 








Amount Eligible Capital is > Minimum Capital Requirement


















PRESCRIBED CAPITAL REQUIREMENT 

 

A

B

C

D

Investment Risk Requirement

 

 

 

 

 

 

 

 

 

 

 

Asset Risk Component

3


 (Form INS 320)

 

 

Off-balance Sheet Asset Risk Component

4


 (Form INS 330)

 

 

Off-balance Sheet Liability Risk Component

5


 (Form INS 340)


 

 

 


 


 

Total Investment Risk Requirement

6


 


 

 

 


 


 

Insurance Risk Requirement

 


 


 

 

 


 


 

Premium Risk Component

7


 (Form INS 350)


 

Technical Provisions Risk Component

8


 (Form INS 360)


 

Long-Term Insurance Risk Component

9


 (Form INS 370)


 

Insurance Concentration Risk Component

10


 (Form INS 380)


 

 

 


 


 

Total Insurance Risk Requirement

11


 


 

 

 


 


 

Operational Risk Requirement

 


 


 

greater of:

 


 


 

 GWP in the last 12 months

12


2,00%


 

 Gross technical provisions

13


2,00%


 

 but maximum ORR is capped at:

14




 

 

 


 


 

Total Operational Risk Requirement

15


 


 

 

 


 


 

TOTAL RISK BASED CAPITAL REQUIREMENT

16


 



 

 


 



Capital Requirement Using an Approved Internal Model (if applicable)

17


 



 

 


 



MINIMUM CAPITAL REQUIREMENT x 150%

18


 



 

 


 



ELIGIBLE CAPITAL (from form INS300)

19


 



 

 


 



PRESCRIBED CAPITAL REQUIREMENT 












Amount Eligible Capital is > Prescribed Capital Requirement

20

 

 

 


 

 

 

Name/ Position

Signature

Date

 

 

 

 

 

 

Name/ Position

Signature

Date




Instructions on Annex 1.10. template on Calculation of Prescribed Capital Requirement (PCR) to the Manual is aimed at reporting on capital requirements.

The Calculation of Prescribed Capital Requirement must be recorded and reported in compliance with the International Financial Reporting Standards and requirements of the AIFC.

Line 2. Minimum Capital Requirement – depends on the type of insurance or reinsurance firms by the requirements of PINS.

Line 3. Asset Risk Component – is linked with the column C. Capital Charge of line 41. Total Asset Risk Component at the template on Calculation of Asset Risk Component (annex 1.11.).

Line 4. Off-balance Sheet Asset Risk Component – is linked with the column D. Asset equivalent value multiplied by asset risk component of line 21. Total Off-Balance Sheet Asset Risk Component at the template on Calculation of Off-Balance Sheet Asset Risk Component (Annex 1.12.).

Line 5. Off-balance Sheet Liability Risk Component – is linked with the column H. Total Risk of line Total Off-Balance Sheet Liability Risk Component at the template on Calculation of Off-Balance Sheet Liability Risk Component (Annex 1.13.).

Line 6. Total Investment Risk Requirement – is the total of line 3. Asset Risk Component, line 4. Off-balance Sheet Asset Risk Component and line 5. Off-balance Sheet Liability Risk Component.

Line 7. Premium Risk Component – is linked with the column D. of line 50. Total Premium Risk Component at the template on Calculation of Premium Risk Component (Annex 1.14.)

Line 8. Technical Provisions Risk Component – is linked with the column D. of the line 49. Total Technical Provisions Risk Component at the template on Calculation of Technical Provisions Risk Component (Annex 1.15.).

Line 9. Long-Term Insurance Risk Component – is linked with the column F. Capital at Risk of the line 7. Total Long Term Insurance Risk Component at the template on Calculation of Long Term Insurance Risk Component (Annex 1.16.).

Line 10. Insurance Concentration Risk Component – is linked with the column C. of the line 6. Total Insurance Concentration Risk Component at the template on Calculation of Insurance Concentration Risk Component (Annex 1.17.).

Line 11. Total Insurance Risk Requirement – is the total of the line 7. Premium Risk Component, line 8. Technical Provisions Risk Component, line 9. Long-Term Insurance Risk Component and line 10. Insurance Concentration Risk Component.

Line 12. GWP in the last 12 months – the amount of an AIFC- Incorporated Insurer’s Operational Risk Requirements is 2% of whichever is the higher of the AIFC-Incorporated Insurer’s gross written premiums in the 12 months ending on the Solvency Reference Date. Column B. 2% times column A. resulted in column C. ((a) (1) 2.4. Operational Risk Requirement of the PINS).

Line 13. Gross technical provisions - the amount of an AIFC- Incorporated Insurer’s Operational Risk Requirements is 2% of whichever is the higher of its technical provisions (without deduction for reinsurance) as at the Solvency Reference Date. Column B. 2% times column A. and resulted in column C. ((b) (1) 2.4. Operational Risk Requirement of the PINS)

Line 14. but maximum ORR is capped at: - if the amount calculated under subrule (1) 2.4. Operational Risk Requirements of the PINS is more than a ceiling, calculated as ((2) 2.4. Operational Risk Requirement of the PINS):


((Line 6. Total Investment Risk Requirement) + (line 11. Total Insurance Risk Requirement)) X (0,15/0,85)


Line 15. Total Operational Risk Requirements – is the maximum of line 12. GWP in the last 12 months and line 13. Gross technical provisions and maximum is caped at line 14. but maximum ORR is capped at.

Line 16. Total Risk Based Capital Requirement – is total of line 6. Total Investment Risk Requirement, line 11. Total Insurance Risk Requirement and line 15. Total Operational Risk Requirement.

Line 18. Minimum Capital Requirement x 150% - is maximum of line 2. Minimum Capital Requirement, line 16. Total Risk Based Capital Requirement and line 17. Capital Requirement Using an Approved Internal Model (if applicable).

Line 19. Eligible Capital (from form INS300) – is linked with column D. of line 23. Total Eligible Capital at reporting template on Calculation of Eligible Capital (Annex 1.9.).

Line 20. Amount Eligible Capital is > Minimum Capital Requirement – is line 18. Minimum Capital Requirement subtracted of line 19. Eligible Capital (from form INS300) .

Annex. 1.11. Calculation of asset Risk Component


CALCULATION OF ASSET RISK COMPONENT

INS320

Name:

 

Period Ending:

 

(All amounts rounded to nearest [USD]’000)

 






Non-Reinsurance Assets





Asset

Line

no.

('000)

Risk Factor

Capital Charge

A

B

C

Cash

1

 

0,50%


grade 1 sovereign debt

2

 

0,50%


bonds that mature, or are redeemable, in less than 1 year with a counterparty rating of grade 1 or 2 (excluding subordinated debt and government debt obligations dealt with anywhere else in this table)

3

 

1,00%


Cash management trusts with a counterparty rating of Grade 1 or 2

4

 

1,00%


Unpaid premiums due 6 months or less previously from a counterparty with a rating of grade 1, 2 or 3. 


Bonds that mature, or are redeemable, in 1 year or more with a counterparty rating of grade 1 or 2 (excluding subordinated debt and government debt obligations dealt with anywhere else in this table)

5

 

2,00%


Unpaid premiums due 6 months or less previously from an unrated counterparty or a counterparty with a rating of grade 4 or 5

6

 

4,00%


bonds with a counterparty rating of grade 3 (excluding subordinated debt)

7

 

4,00%


Cash management trusts with a counterparty rating of Grade 3

8

 

4,00%


secured loans

9

 

4,00%


bonds with a counterparty rating of grade 4 (excluding subordinated debt)

10

 

6,00%


Unpaid premiums due more than 6 months previously from a counterparty with a rating of grade 1, 2 or 3 

Cash management trusts with a counterparty rating of Grade 4

11

 

6,00%


bonds with a counterparty rating of grade 5 (excluding subordinated debt)

12

 

8,00%


Unpaid premiums due more than 6 months previously from an unrated counterparty or a counterparty with a rating of grade 4 or 5

13

 

8,00%


Cash management trusts with a counterparty rating of Grade 5

14

 

8,00%


Listed subordinated debt

15

 

8,00%


Unlisted subordinated debt

16

 

10,00%


preference shares

17

 

10,00%


Listed equity instruments

18

 

16,00%


Listed trusts

19

 

16,00%


Direct holdings of real estate

20

 

20,00%


Unlisted equity instruments

21

 

20,00%


Unlisted trusts

22

 

20,00%


other non-reinsurance assets not mentioned in this table

23

 

20,00%


Loans to directors of the insurer or directors of related corporate bodies or dependent relatives of such directors

24

 

100,00%


unsecured loans to employees (except loans of less than 3600)

25

 

100,00%


assets subject to a fixed or floating charge

26

 

100,00%


Asset Risk Component of Non-reinsurance Assets

27

 

 












Reinsurance assets—reinsurer supervised by subrule (2) regulator





Asset

Line no.

('000)

Risk Factor

Capital Charge

A

B

C

reinsurance assets due from reinsurers with a counterparty rating of grade 1

28

 

1,00%


reinsurance assets due from reinsurers with a counterparty rating of grade 2

29

 

2,00%


reinsurance assets due from reinsurers with a counterparty rating of grade 3

30

 

4,00%


reinsurance assets due from reinsurers with a counterparty rating of grade 4

31

 

6,00%


reinsurance assets due from reinsurers with a counterparty rating of grade 5

32

 

8,00%


Asset Risk Component of Reinsurance Assets - reinsurers supervised by subrule (2) regulator

33

 

 












Reinsurance assets—reinsurer not supervised by subrule (2) regulator





Asset

Line no.

('000)

Risk Factor

Capital Charge

A

B

C

reinsurance assets due from reinsurers with a counterparty rating of grade 1

34

 

1,20%


reinsurance assets due from reinsurers with a counterparty rating of grade 2

35

 

2,40%


reinsurance assets due from reinsurers with a counterparty rating of grade 3

36

 

4,80%


reinsurance assets due from reinsurers with a counterparty rating of grade 4

37

 

7,20%


reinsurance assets due from reinsurers with a counterparty rating of grade 5

38

 

9,60%


Asset Risk Component of Reinsurance Asssets - reinsurers not supervised by subrule (2) regulator

39

 

 


 

 

 

 


Total Asset Risk Component of Reinsurance Assets

40