PIN A4.4.1
An Insurer must calculate its default risk component as the sum of the amounts obtained by multiplying the value of each asset of the Insurer with the percentage applicable to that asset, as set out in the tables contained in this Rule and subject to the provisions of Rules A4.4.2,A4.4.5, A4.4.6 and A4.4.7.
(a) Assets that are Invested Assets
| Asset | % |
| (a) Bonds Rated 'AAA', issued by a Government or Government agency | 0.0 |
| (b) Bonds not included in (a), Rated 'A' or better | 0.4 |
| (c) Bonds Rated 'BBB' | 3.3 |
| (d) Bonds Rated 'BB' | 7.5 |
| (e) Bonds Rated 'B' | 13.7 |
| (f) Bonds Rated 'CCC' | 20.2 |
| (g) Other Rated bonds | 30.0 |
| (h) Secured loans — performing | 2.0 |
| (i) Secured loans — Non-Performing | 14.0 |
| (j) Loans to directors of the Insurer or to directors of Related parties, or to the dependent relatives of such directors | 100.0 |
| (k) Unsecured loans to employees (except loans of less than $1,000) | 100.0 |
| (l) Other bonds and loans | 50.0 |
(b) Assets that are not Invested Assets
| Asset | % |
| Reinsurance recoverable from: | |
| (a) reinsurers Rated 'AAA' | 0.5 |
| (b) reinsurers Rated 'AA' | 1.2 |
| (c) reinsurers Rated 'A' | 1.9 |
| (d) reinsurers Rated 'BBB' | 4.7 |
| (e) reinsurers Rated 'BB' | 9.6 |
| (f) reinsurers Rated 'B' | 23.8 |
| (g) reinsurers Rated 'CCC' | 49.7 |
| (h) reinsurers Rated 'R' | 50.0 |
| (i) other reinsurers | 25.0 |
| (j) Other assets | 3.0 |