INSTRUCTION OF CENTRAL BANK OF THE RUSSIAN FEDERATION

of September 3, 2018 No. 4896-U

About technique of determination of size of own means (capital) of the insurer (except for societies of mutual insurance)

This Instruction based on Item 2 of article 25 of the Law of the Russian Federation of November 27, 1992 No. 4015-1 "About the organization of insurance case in the Russian Federation" (Sheets of the Congress of People's Deputies of the Russian Federation and the Supreme Council of the Russian Federation, 1993, No. 2, Art. 56; Russian Federation Code, 1998, No. 1, Art. 4; 1999, No. 47, Art. 5622; 2002, No. 12, Art. 1093; No. 18, Art. 1721; 2003, No. 50, Art. 4855, Art. 4858; 2004, No. 30, Art. 3085; 2005, No. 10, Art. 760; No. 30, Art. 3101, Art. 3115; 2007, No. 22, Art. 2563; No. 46, Art. 5552; No. 49, Art. 6048; 2009, No. 44, Art. 5172; 2010, No. 17, Art. 1988; No. 31, Art. 4195; No. 49, Art. 6409; 2011, No. 30, Art. 4584; No. 49, Art. 7040; 2012, No. 53, Art. 7592; 2013, No. 26, Art. 3207; No. 30, Art. 4067; No. 52, Art. 6975; 2014, No. 23, Art. 2934; No. 30, Art. 4224; No. 45, Art. 6154; 2015, No. 10, Art. 1409; No. 27, Art. 3946, Art. 4001; No. 29, Art. 4357, Art. 4385; No. 48, Art. 6715; 2016, â„–1, of Art. 52; No. 22, Art. 3094; No. 26, Art. 3863, Art. 3891; No. 27, Art. 4225, Art. 4294, Art. 4296; 2017, No. 31, Art. 4754, Art. 4830; 2018, No. 1, Art. 66; No. 18, Art. 2557; No. 32, of the Art. 5113) (further - the Law of the Russian Federation "About the organization of insurance case in the Russian Federation") establishes technique of determination of size of own means (capital) of the insurer (except for societies of mutual insurance).

1. The size of own means (capital) of the insurer is determined as the amount of the measure values listed in Item 3 presents of the Instruction, which is consistently reduced by measure values, listed in item 4 of this Instruction.

2. Measure values, listed in Items 3 and 4 of this Instruction, are determined for settlement date based on accounting data of the insurer performed according to the Provision of the Bank of Russia of September 2, 2015 No. 486-P "About the Chart of accounts of financial accounting in not credit financial credit institutions and procedure for its application", the registered Ministry of Justice of the Russian Federation on October 7, 2015 No. 39197, on December 28, 2016 No. 45012, on December 15, 2017 No. 49269, and with accounting policy of the insurer, the accounting (financial) records of the insurer constituted according to the Provision of the Bank of Russia of December 28, 2015 No. 526-P "Industry standard of the financial accounting "Procedure for Creation of Accounting (Financial) Records of Insurance Companies and Societies of Mutual Insurance" the registered Ministry of Justice of the Russian Federation on January 28, 2016 No. 40869, on December 15, 2016 No. 44748, on July 27, 2017 No. 47550, on September 7, 2017 No. 48108.

3. The size of own means (capital) of the insurer joins values of the following indicators.

3.1. Authorized capital.

3.2. Added capital.

3.3. Reserve capital.

3.4. Retained earnings of accounting year and last years.

3.5. The residual cost of the subordinated loans obtained by insurance company taking into account requirements, stipulated in Item 4.3 articles 25 of the Law of the Russian Federation "About the organization of insurance case in the Russian Federation", calculated according to subitems 3.5.1 and 3.5.2 of this Item.

3.5.1. Residual cost of separate subordinated loan is determined by formula:

where:

About - residual cost of subordinated loan for settlement date;

Д - all-in cost of subordinated loan;

With - the parameter accepting one of the following values:

With = 0 during the first quarter from the date of attraction of subordinated loan;

With = 20 after the first quarter during the second and the next quarters from the date of attraction of subordinated loan provided that before repayment date of subordinated loan there are more than 20 complete quarters;

With = N after the first quarter during the second and the next quarters from the date of attraction of subordinated loan provided that before repayment date of subordinated loan there are no more than 20 complete quarters;

N - depreciation period - the number of the complete quarters which remained before repayment of subordinated loan which counting is conducted with the repayment date specified in the agreement of subordinated loan (1 N 20) (N accepts value 20 during the first quarter of depreciation period, value 19 during the second quarter of depreciation period and so on, finishing with value 1 during the last quarter which remained before repayment of subordinated loan).

3.5.2. If the loan agreement provides repayment of subordinated loan by separate tranches (parts), residual cost is calculated as the amount of the residual costs of each separate tranche determined according to subitem 3.5.1 of this Item taking into account the terms of their repayment provided by the agreement.

4. The size of own means (capital) of the insurer consistently decreases by values of the following indicators.

4.1. Debt of shareholders (participants) on fees in the authorized capital.

4.2. The cost of own shares (shares or parts of shares in the authorized capital) redeemed from shareholders (participants).

4.3. Uncovered losses of accounting year and last years.

4.4. Cost of intangible assets.

4.5. Receivables delayed more than for 30 calendar days less the provisions created under impairment of this debt in assessment according to accounting data for settlement date.

4.6. Deferred tax asset on the tax losses postponed for the future.

4.7. The amount of the subordinated loans granted by the insurer (acquired by the insurer of the subordinated bonded loans placed by the insurer of subordinated deposits).

4.8. The size of adjustment of insurance reserves (KR) calculated by formula:

where:

The KR - adjustment of insurance reserves for settlement date;

Srreg - the total size of insurance reserves on insurance to other, than life insurance, and insurance reserves on life insurance;

Dolyareg - the total size of shares of overcautious persons in insurance reserves on insurance to other, than life insurance, and insurance reserves on life insurance;

Dopreg - the size of additional part of reserve of not earned premium;

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