Insurance

Regulatory Solvency Margin — Capital Top-Up

Issuing new shares to maintain the minimum solvency margin required by the insurance regulator.

Account NameTypeDebit ($)Credit ($)
Cash in Bank (Capital Injection)Asset (+)5,000,000.00-
Common Stock / Share CapitalEquity (+)-500,000.00
Share Premium (APIC)Equity (+)-4,500,000.00

💡 Accountant's Note

Insurers must maintain minimum solvency margins set by the Jordan Insurance Regulatory Commission (IRC). If capital falls below the minimum due to losses, a capital injection is required to continue operating.

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