CTHRepealedLegislation
Insurance (prudential standard) determination No. 7 of 2006 - Prudential Standard GPS 110 - Capital Adequacy
Tier 2 capitalTier 2 capital
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Tier 2 capital
- Tier 2 capital includes other elements which, to varying degrees, fall short of the quality of Tier 1 capital stated in Hparagraph H7 of this Attachment but nonetheless contribute to the overall strength of an insurer as a going concern, and is divided into:
(a) Upper Tier 2 capital – comprising elements that are essentially permanent in nature, including some forms of hybrid capital instruments; and
(b) Lower Tier 2 capital – comprising instruments which are not permanent i.e. dated or limited life instruments.