PIN A7.2.1

An Insurer must calculate the Adjusted Fund Capital Resources in respect of each Long-Term Insurance Fund maintained by it, according to the formula:

AFCR = AFE - FHCA

where:

AFCR means the Adjusted Fund Capital Resources in respect of the fund;

AFE means the adjusted fund equity in respect of that fund; and

FHCA means the fund hybrid capital adjustment in respect of that fund.