CBB Volume 3: Contents
CA-1.3 Capital Requirements for Insurance Brokers
Bahrain insurance brokersG must maintain at all times the greater of:(a) A minimum net assetsG value of BD 50,000;(b) 4% of fiduciary liabilitiesG ; and(c) 4% of annual income from global insurance broking activitiesG .Amended: April 2012
For semi-annual reporting under Form IBRS (see Section BR-1.4A), with regards to Subparagraph CA-1.3.1(c), the calculation of the annual income must be done on a moving average year basis. As an example, for the reporting period ending 30th June 2011, annual income from global insurance broking activities covers the period of 1st July 2010 to 30th June 2011.Added: April 2012
There are no minimum capital and net asset requirements for overseas insurance brokersG . However, for overseas insurance brokersG , financial statements of the parentG company must be submitted to the CBB for review, in order to assess the financial stability of the group on a global basis.Amended: January 2007
For purposes of Paragraph CA-1.3.1, global insurance broking activitiesG refers to annual income of a Bahrain incorporated brokerage firm including any income being generated by any of the firm's brokerage subsidiariesG and/or branchesG operating in other jurisdictions.Amended: January 2007
In respect of licensees who were carrying out activities that fall within the definition of the regulated activity of insurance brokerG prior to 1 April 2005, the requirements of Paragraph CA-1.3.1 will apply from 1 January 2007 (refer to ES-2.4.2 for transition rules).Amended: January 2007
For the purposes of this section, 'net assetsG ' means the excess of assets over liabilities. The minimum net assets value is to be determined by excluding all intangible assets and in accordance with accounting principles generally accepted in Bahrain.Amended: January 2007
The value of debtors taken into account as assets available to support financial requirements must not exceed the amount which the insurance brokerG expects to receive net of any significant costs associated with making the recovery.
Insurance brokersG must make adequate provisions for any debts which are unlikely to be received or recovered from the debtors.