CIB 3.1.2 Eligible capital amount

(1) The total eligible capital of a Captive Insurer is the amount of the Captive Insurer's eligible capital, calculated in accordance with the following formula:

Eligible capital — required deduction

where:

Eligible capital means the sum of the Captive Insurer's —
(a) permanent share capital;
(b) retained earnings or losses;
(c) the following items up to an amount not exceeding 50% of the sum of paragraphs (a) and (b) above:
(d) qualifying letters of credit under Rule 3.1.4; and
(e) any other instrument permitted by the Regulator under Rule 3.1.2(2)(a).
Required deduction, for a Captive Insurer, means the sum of —
(i) investments in Subsidiaries and Associates;
(ii) intangible assets; and
(iii) any other asset that the Regulator directs, under Rule 3.1.2(2)(b), the Captive Insurer to include.
(2) For calculating the Captive Insurer's total eligible capital, the Regulator may, by written notice, do any one or more of the following:
(a) allow the Captive Insurer to include an instrument as eligible capital;
(b) direct the Captive Insurer to include an asset as a required deduction;
(c) allow the Captive Insurer to exceed the 50% limit in paragraph (cof the definition of eligible capital in Rule 3.1.2(1).
(3) Permission under Rules 3.1.2(2)(a) or 3.1.2(2)(c) may be given on application of the Captive Insurer or on the Regulator's own initiative.