PIN A7.3.2

Subject to Rules A7.3.3, A7.3.4 and A7.3.5, the base fund capital in respect of a Long-Term Insurance Fund must consist of the following capital instruments and equity reserves of the Insurer, that are classified as capital instruments and equity reserves of the fund:

(a) general reserves;
(b) retained earnings;
(c) amounts attributed to the Long-Term Insurance Fund by the Insurer in accordance with Rule 3.4.1;
(d) in the case of a Takaful Insurer, amounts provided from the Owners' Equity by loan to the Insurance Fund and not repaid as at the Solvency Reference Date;
(e) current year's earnings after tax; and
(f) hybrid capital (as defined in Rule A7.5.1).