Provisions as to valuation of an applicant’s assets

(1) In assessing the value of the assets of an applicant for registration as an insurer for the purpose of meeting the minimum margin of solvency under Regulation 4, the Supervisor shall have discretion in determining which assets or categories of assets may be taken into account, provided that in making such determination he shall also have regard to the following assets held by the applicant– (a) cash and time deposits with acceptable financial institutions; (b) fixed interest securities and blue-chip equities traded on recognised stock exchanges; (c) unpaid premiums and other receivables, but excluding premiums, unpaid balances and other receivables owed by agents, or other 8 International Insurance insurers or debtors which are more than six (6) months outstanding; (d) irrevocable letters of credit issued by acceptable financial institutions. (2) The following assets shall, however, not be taken into account in making such assessment– (a) loans to groups or connected companies and individuals; (b) amounts receivable from related parties; (c) livestock, vehicles or other mobile craft; (d) investment in options, futures or forward contracts; (e) unpaid premiums and other receivables or unpaid balances owed by agents, or other insurers or debtors which are more than six (6) months outstanding from the due date.