“approved financial institutions” means banks, finance companies and merchant banks approved by the Authority or other commercial banks licensed in a foreign country;
“liquid assets” shall consist of securities of the Singapore Government and public authorities of Singapore, cash and deposits in Singapore dollars in approved financial institutions, and bills of exchange in Singapore dollars accepted or endorsed by banks licensed under the Banking Act (Cap. 19), which arise from bona fide commercial transactions and which are payable within 3 months;
“office buildings” means buildings owned by the insurer and used as the headquarters for its operations in Singapore and which the insurer occupies at least one-third of the office space;
“overseas assets” means loans to and securities issued by non-residents, deposits and property held overseas;
“property shares” means shares that are classified by the Stock Exchange of Singapore or other stock exchanges as property shares and, in the case of unquoted shares, means shares of any company whose investment in property constitutes not less than 50% of its total assets;
“related”, in relation to any company or financial institution, has the same meaning as in section 6 of the Companies Act (Cap. 50);
“Singapore Insurance Fund” means any insurance fund established in respect of Singapore policies under section 16(1)(a) of the Act;
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“Singapore Insurance Fund Assets” shall be the aggregate of all assets for which valuation bases are specified in regulations 5 to 14 and any other asset which the Authority may allow;
“unsecured loans” means loans given without security;
“written premiums” means gross premiums during the accounting period in respect of Singapore policies issued, and reinsurances accepted, which are entered in an insurer’s register of Singapore policies, reduced by return premiums and premiums in respect of reinsurances on Singapore policies ceded during the accounting period to a registered insurer.
Application of this Part
17.—(1) In determining the Singapore Insurance Fund Assets of the Singapore Insurance Fund, only the classes of assets specified in regulations 5 to 14 and any other asset which the Authority may allow shall be taken into account.
(2) Such assets shall be valued as prescribed in Part III and the extent to which such assets may be taken into account (referred to in this Part as admitted value) shall be determined as specified in regulations 18 and 18A.
(3) The total admitted value of the Singapore Insurance Fund Assets shall be compared against the liabilities of the Fund for the purposes of —
(a)
determining the surplus of the Fund under sections 16 (5), (7), (8), (9) and (10) and 17(4)(a) of the Act;
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(b)
any return to which section 38 of the Act applies; and
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(c)
any investigation made pursuant to the requirements of section 39 of the Act.
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(4) In respect of life business, the investment limits specified in the Schedule shall be applied to the total life business (other than the investment-linked business) of the Singapore Insurance Fund.
Investment limits
18.—(1) For the purposes of regulation 17, the extent to which the Singapore Insurance Fund Assets shall be taken into account shall be subject to the investment limits specified in the Schedule.
(2) To determine whether the investment limits specified in the Schedule have been complied with, the assets shall be valued as prescribed in Part III.
Counterparty exposure limits
18A.—(1) For the purposes of regulation 17, the extent to which the Singapore Insurance Fund Assets shall be taken into account shall be subject to the counterparty exposure limits specified in paragraph (2).
(2) The counterparty exposure limits mentioned in paragraph (1) are —
(a)
where the counterparty is an approved financial institution or group of approved financial institutions related to one another, 20% of Singapore Insurance Fund Assets;
(b)
where the counterparty is a company listed on any stock exchange or group of companies related to one another, 10% of Singapore Insurance Fund Assets; and
(c)
where the counterparty is an unlisted company or group of unlisted companies related to one another, a merchant bank or a finance company, and all other cases, 5% of Singapore Insurance Fund Assets.
(3) The exposure to any one counterparty shall be calculated on the basis of the aggregate of the value of investments issued by the counterparty, all debts due from the counterparty (including deposits placed with the counterparty) and the value of all rights against the counterparty.
Liquid assets
19. The assets of any insurance fund established by an insurer in respect of general business and relating to Singapore policies shall be such that the aggregate admitted value of liquid assets shall not be less than 30% of the aggregate of loss reserves and outstanding claims.