Tier 1 and 2 Capital For Insurers IPSB

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Tier 1 is sub-divided into three categories:

Core Tier 1 (ordinary shares,member contributions and audited reserves) which can be included in a firm ’s regulatory capital without limit; Non-ordinary shares;and

Innovative Tier 1 (capital instruments and innovative instruments).

6.10 Tier 2 is sub-divided between upper and lower Tier 2.

6.11 Lower tiers of capital are either subject to limits or require a waiver to be eligible for inclusion in a firm ’s capital resources.