PIN 8.5.1

(1) An ADGM Incorporated Insurer must not enter into a transaction of the type described in this Rule unless the directors of the Insurer are satisfied following reasonable enquiry that the transaction is at arms-length and does not adversely affect the interests of policyholders. The transactions to be considered are:
(a) a sale, purchase, exchange, loan or extension of credit, guarantee or investment where the counterparty is a Person Related to the Insurer and the amount of the transaction equals or exceeds 3% of the Insurer's surplus as at the end of the financial year immediately preceding the transaction;
(b) a loan or extension of credit to any Person who is not Related to the Insurer, where the Insurer makes the loan or extension of credit with the agreement or understanding that the proceeds of the transaction, in whole or in substantial part, are to be used to make loans or extensions of credit to purchase assets of, or to make investments in, any Related party of the Insurer, where the amount of the transaction equals or exceeds 3% of the Insurer's surplus as at the end of the reporting period immediately preceding the transaction;
(c) a reinsurance agreement or modification to a reinsurance agreement in which the reinsurance premium or a change in the Insurer's liabilities equals or exceeds 5% of the Insurer's surplus;
(d) a reinsurance agreement or modification to a reinsurance agreement involving the transfer of assets from an Insurer to a Person not Related to the Insurer, if an agreement or understanding exists between the Insurer and that Person that any portion of the assets will be transferred to one or more other Persons Related to the Insurer and the reinsurance premium or a change in the Insurer's liabilities equals or exceeds 5% of the Insurer's surplus; and
(e) any management agreement, service contract or cost-sharing arrangement.
(2) For the purposes of (1), "surplus" means:
(a) in the case of an Insurer that is not a Cell Company, the Insurer's Adjusted Capital Resources; and
(b) in the case of an Insurer that is a Cell Company, the Insurer's Adjusted Cellular Capital Resources in respect of the Cell to which the transaction relates, where the transaction relates to a Cell, and otherwise the Insurer's Adjusted Non-Cellular Capital Resources.