PIN A4.2.1
Subject to Rule A4.2.2, an Insurer must calculate its Minimum Capital Requirement according to the formula:
MCR = DRC + IVRC + OARC + OLRC + CRC + SFAC + URC + RRC + LIRC + AMRC
Where the following definitions apply:
| Term | Definition |
| MCR | Insurer's Minimum Capital Requirement; |
| DRC | Insurer's default risk component; |
| IVRC | Insurer's investment volatility risk component; |
| OARC | Insurer's off-balance sheet asset risk component; |
| OLRC | Insurer's off-balance sheet liability risk component; |
| CRC | Insurer's concentration risk component; |
| SFAC | Insurer's size factor adjustment component; |
| URC | Insurer's underwriting risk component; |
| RRC | Insurer's reserving risk component; |
| LIRC | Insurer's Long-Term Insurance risk component; and |
| AMRC | Insurer's asset management risk component. |