For assessment of the C component the C1 C5 sub component ratios are being

For assessment of the c component the c1 c5 sub

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with the riskiness level of the insurance company. For assessment of the “C” component, the C1-C5 sub-component ratios are being calculated. Ratio Definition of the ratio The range and the respective rating of the ratio The description of the ratio C1 (Total regulatory capital / (required solvency amount + risk weighted assets)) * 100 140% C1 =5 120% ≤ C1 < 140% =4 100% ≤ C1 < 120% =3 80% ≤ C1 < 100% =2 C1 < 80% =1 The ratio is the S1.2 prudential standard. The indicators of the ratio are being calculated in accordance with Regulation 3/02. The indicators of the ratio are being calculated, based on the data of “Form 3” statement of Regulation 3/04 C2 ((Total regulatory capital + possible losses reserve – non- performing assets) / Minimum 250% C2 =5 150% ≤ C2 < 250% The ratio assesses the level of excess over the minimum amount of total capital of the insurance company, considering the non-
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amount of total capital) * 100 =4 125% ≤ C2 < 150% =3 100% ≤ C2 < 125% =2 C2 < 100% =1 performing assets as a possible loss. In the calculation of the C2 component, the total regulatory capital is included as of the last day of the reporting quarter. The possible losses reserve includes the possible losses reserve, formed in accordance with Regulation 3/09 for watch, non-standard, doubtful assets (except for investment securities), as well as risky, mid-risky and high risky investment securities, as of the last day of the reporting quarter. Non-performing assets include watch, non- standard and doubtful assets (except for investment securities), as well as risky, mid- risky and high risky investment securities, in accordance with Regulation 3/09, as of the last day of the reporting quarter. Furthermore, the watch assets are being included with the 20%, risky securities – 25%, non-standard assets – 50%, mid-risky securities – 70%, doubtful assets and high risky securities – 100% weights in the calculation of the ratio. Furthermore, the possible loss reserves, formed for the non-performing assets, in accordance with Regulation 3/09, are not included in the calculation of the non- performing assets.
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The minimum amount of total capital, set for the given insurance company by Regulation 3/02 as of the last day of the reporting quarter, is being considered as the minimum amount of total capital. The indicators of the ratio are being calculated, based on the data of “Form 3”, “Form 9” statements of Regulation 3/04 C3 ((Sum insured (amount of liability, assumed by a contract (contracts) on one object of insurance and the affiliated objects) – the share of the reinsurer in the sum insured) / Total regulatory capital) * 100 10% < C3 ≤ 15% =2 15% < C3 =1 The ratio is the S3 prudential standard, calculated in accordance with Regulation 3/02. The ratio is being calculated on the maximum amount of the grand totals of the sums insured, assumed by the insurance contract(s) on one insurance object and the affiliated objects (deducted by the share of the reinsurer, specified by Regulation 3/02) (hereinafter, Net sum insured).
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