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Location: Central Bank of Bahrain Volume 3—Insurance > Part A > High Level Standards > GR General Requirements > GR-3 Dividends > GR-3.1 CBB Non-Objection
  • GR-3.1 CBB Non-Objection

    • GR-3.1.1

      Bahraini insurance licenseesG , other than captive insurersG , must obtain a letter of no-objection from the CBB to any dividend proposed, before announcing the proposed dividend by way of press announcement or any other means of communication and prior to submitting a proposal for a distribution of profits to a shareholderG vote.

      Amended: January 2007
      Amended: April 2009

    • GR-3.1.1A

      When submitting a request for a letter of no-objection for proposed dividend, the request made by the insurance licenseeG must:

      (a) Be made at a minimum 3 working days before the proposed announcement;
      (b) Include a copy of the draft audited financial statements for the year to which the request for the proposed dividend pertains to; and
      (c) Include a detailed analysis of the impact of the proposed dividend on the capital adequacy and solvency margin requirements as outlined in Module CA (Capital Adequacy) of Volume 3 CBB Rulebook and the liquidity position of the licensee.
      Amended: October 2017
      Added: April 2009

    • GR-3.1.1B

      To comply with the requirements of Subparagraph GR-3.1.1A (c), the insurance licensee should complete and submit to the CBB those pages of the Insurance Firm Return (Form IFR) pertaining to the capital adequacy and solvency margin requirements.

      Added: April 2009

    • GR-3.1.2

      Upon receiving the request in accordance with all the requirements in Paragraph GR-3.1.1A, the CBB will provide a reply to the insurance licenseeG before the scheduled annual general meeting of the shareholders.The CBB will grant a no-objection letter where it is satisfied that the level of dividend proposed is unlikely to leave the licensee vulnerable — for the foreseeable future — to breaching the CBB's financial resources requirements, taking into account (as appropriate) trends in the licensee's business volumes, expenses, claims experience and investment environment. Where there are major concerns about the potential impact of a proposed dividend, the CBB may require an actuarial report to be provided.

      Amended: January 2007
      Amended: April 2009

    • GR-3.1.3

      Insurance licenseesG , subject to Paragraph GR-3.1.1, should provide the CBB with a copy of the proposed agenda for the annual general meeting or other special meeting, noting the licensee's intended declared dividends for the coming year.

      Amended: January 2007
      Amended: April 2009

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