the impact of expected additional provisions on possible losses due to possible

The impact of expected additional provisions on

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the impact of expected additional provisions on possible losses due to possible classification of assets and worsening of the class of classified assets on the indicators, describing the capital adequacy, 3. the volume of liabilities assumed by the insurance company on the insurance contracts on affiliated insured objects, trend of their change, the possible effect of toughening of the criteria to consider the insured objects as affiliated, 4. the formation of non-adequate technical reserves and its impact on the indicators, describing the capital adequacy, 5. the impact of increase or decrease of insurance premiums, insurance compensations on the indicators, describing the capital adequacy, 6. Assets concentration (for example, by sectors of economy, by debtors, etc.), riskiness of assets (for example, by types of investments, by credibility of the debtors, etc.), trends of their change, the impact of possible losses, related to them, on the indicators, describing the capital adequacy, 7. the trends of risks on entities, related with large persons insured and (or) insurance company, their impact on
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the indicators, describing the capital adequacy, 8. the trends of change of compensations and other funds, received from reinsurers, existence of instruments (letter of credit, frozen funds, etc.), verifying the payment of the funds, received from reinsurers, the risks related to them and their potential impact on the indicators, describing the capital adequacy, 9. the facts and trends, known by the supervisor due to new information, but not yet reflected in the statements of the insurance company, that can affect the indicators, describing the capital adequacy of the insurance company, 10. the probability of expected losses, related to credit, operational, liquidity, market, interest rate and other risks; their volume and possible impact on the indicators, describing the capital adequacy (the results of respective stress-tests (if available), developed by the Central Bank of the Republic of Armenia for insurance companies, may also be used for conducting the analysis and assessments. Furthermore, the results of the stress-tests may be used for adjustment purposes only in case of highly probable scenarios, which should be justified by the supervisor), 11.in case the insurance company is a member of a group (union) – the probability of expected losses, related to the risks of the given group, their amount and possible impact on the indicators, describing the capital adequacy, 12. the amendments of requirements of laws and other legal acts of the Republic of Armenia, related to calculation of solvency and other prudential standards and indicators of the insurance company. A – Factors, adjusting assets quality The indicators, used in calculation of the A1-A6 sub-components ratios, calculated on “A” component in accordance with Appendix 1 of this Regulation, are being adjusted, reflecting the projections on real volumes of assets of the insurance company and the change of their quality. In particular, the adjustments are being conducted by analyzing
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