PART II
FINANCIAL REQUIREMENT BEFORE REGISTRATION, FUND SOLVENCY REQUIREMENT AND CAPITAL ADEQUACY REQUIREMENT
Paid-up capital requirement
3.  For the purposes of section 9(1)(c) of the Act, the Authority shall not register an applicant as a captive insurer under section 8 of the Act unless the applicant has a paid-up ordinary share capital (or its equivalent recognised by the Authority as applicable to the applicant under the laws of the country or territory in which the applicant is incorporated, formed or established) of not less than $400,000.
Exemption in respect of Insurance (Valuation and Capital) Regulations 2004
4.  A captive insurer shall be exempt from regulation 4 of the Insurance (Valuation and Capital) Regulations 2004 (G.N. No. S 498/2004).
Fund solvency requirement
5.—(1)  For the purposes of section 18(1)(a) of the Act, the fund solvency requirement in respect of an insurance fund established and maintained by a captive insurer under the Act shall at all times be such that —
(a)in the case of an insurance fund for general business that relates to Singapore policies, the surplus of assets over liabilities of the fund, less its contingent liabilities, is not less than the GSIF amount;
(b)in the case of an insurance fund for general business that relates to offshore policies, the amount of assets in the fund, less its contingent liabilities, is not less than the amount of the liabilities of the fund; and
(c)in the case of an insurance fund for life business, the amount of assets in the fund, less its contingent liabilities, is not less than the amount of the liabilities of the fund.
(2)  In this regulation and regulation 6, "GSIF amount", in relation to an insurance fund, means the highest of the following amounts:
(a)$400,000;
(b)20% of net premiums written of the fund in the preceding financial year; or
(c)20% of the claim liabilities of the fund as at the end of the preceding financial year.
Capital adequacy requirement
6.  For the purposes of section 18(1)(b) of the Act, the capital adequacy requirement of a captive insurer shall at all times be such that the shareholders’ equity and surplus, less the contingent liabilities of the insurer, is not less than the sum of —
(a)$400,000; and
(b)the GSIF amount.