Hong Kong Regulations

INSURANCE COMPANIES (GENERAL BUSINESS) (VALUATION) REGULATION - SECT 14

Asset value to be admitted not exceeding a specified extent for each category of assets

(1) Notwithstanding the foregoing provisions of this Regulation, in
determining and reporting the value of the assets of an insurer-

   (a)  subject to paragraph (c), the total value of the assets comprising
        land and buildings held by the insurer and its subsidiaries must be
        not greater than 30% of the insurer's total eligible asset value;

   (b)  subject to paragraph (c), the total value of the assets comprising
        listed shares, holdings of units, or other beneficial interests, in
        unit trusts and mutual funds held by the insurer and its subsidiaries
        must be not greater than 30% of the insurer's total eligible 
        asset value;

   (c)  the total value of the assets comprising land and buildings, listed
        shares, holdings of units, or other beneficial interests, in unit
        trusts and mutual funds held by the insurer and its subsidiaries must
        be not greater than 40% of the insurer's total eligible asset value;

   (d)  the total value of the assets comprising listed securities held by the
        insurer and its subsidiaries must be not greater than 50% of the
        insurer's total eligible asset value; and

   (e)  the total value of the following assets held by the insurer and its
        subsidiaries must be not greater than 10% of the insurer's total 
        eligible asset value-

        (i)    unlisted shares (excluding those shares in a subsidiary whose
               values are determined and reported under section 6) and
               unlisted securities; and

        (ii)   debts (excluding insurance debts) due from individuals or
               unlisted companies, including the balance of debts due from
               unlisted subsidiaries after offsetting inter-company balances
               pursuant to section  5 (5).

(2) This section does not apply to the assets of an insurer required to be
maintained in Hong Kong under section 25A or 25B of the Ordinance for
determining and reporting their values for the purposes of those sections.

(3) For the avoidance of doubt, a debt due from an individual referred to in
subsection (1)(e)(ii) does not include a loan which is secured by a contract
of insurance issued by the insurer.

(4) In this section (except in subsection (1)(e)(i)), "subsidiary"
(附屬公司) means a subsidiary the value of whose shares held by the
relevant insurer is determined and reported in accordance with section 5.
(Enacted 1995)

"subsidiary" (附屬公司)