2
Capital Resources Table
2.1
A firm must use the following table to calculate its capital resources pursuant to Insurance Company – Capital Resources 2.1:
Total tier one capital after deductions = D - E
| Type of capital | Related rules | Stage |
|---|---|---|
| Core tier one capital | A | |
| Permanent share capital | Insurance Company – Capital Resources 5.1 | |
| Profit and loss account and other reserves (taking into account interim net losses) | Insurance Company – Capital Resources 5.2 to 5.4 | |
| Share premium account | Insurance Company – Capital Resources 5.5 to 5.6 | |
| Positive valuation differences | Insurance Company – Capital Resources 5.7 | |
| Fund for future appropriations | Insurance Company – Capital Resources 5.13 | |
| Perpetual non-cumulative preference shares | B | |
| Perpetual non-cumulative preference shares | Insurance Company – Capital Resources 6.1 | |
| Innovative tier one capital | C | |
| Innovative tier one instruments | Insurance Company – Capital Resources 6.2 to 6.7 | |
| Total tier one capital before deductions = A + B + C | D | |
| Deductions from tier one capital | E | |
| Investments in own shares | None | |
| Intangible assets | Insurance Company – Capital Resources 8.1 | |
| Amounts deducted from technical provisions for discounting and other negative valuation differences | Insurance Company – Capital Resources 5.7 to 5.11 | |
| Total tier one capital after deductions = D- E | F | |
| Upper tier two capital | G | |
| Upper tier two capital | Insurance Company – Capital Resources 10 | |
| Lower tier two capital | H | |
| Lower tier two capital | Insurance Company – Capital Resources 11 | |
| Total tier two capital = G + H | I | |
| Positive adjustments for affiliated companies | J | |
| Affiliated companies that have a Part 4A permission (other than insurance undertakings) | Insurance Company – Capital Resources 12.3 | |
| Total capital after positive adjustments for insurance undertakings but before deductions = F + I + J | K | |
| Deductions from total capital | L | |
| Inadmissible assets | Insurance Company – Capital Resources 12.1 and 13.1 | |
| Assets in excess of market risk and counterparty limits | Insurance Company – Exposure Limits 7.2 to 7.4 | |
| Affiliated companies that are ancillary services undertakings | Insurance Company – Capital Resources 12.2 | |
| Negative adjustments for affiliated companies that have a Part 4A permission (other than insurance undertakings) | Insurance Company – Capital Resources 12.3 | |
| Total capital resources after deductions = K - L | M |
- 01/01/2016