Regulatory Alerts2017-01-01
Insurance (Minimum Capital and Solvency Requirements for Reinsurance Companies) Directive, 2017
Issued by Malawi’s Registrar of Financial Institutions under the Insurance Act, this Directive establishes mandatory minimum paid-up capital of K1.5 billion, core capital at 80 percent of paid-up capital, and a minimum 20 percent solvency ratio for all registered reinsurance companies. It prescribes detailed calculation methodologies for adjusted net assets, discounted admissible assets, and weighted policyholder reserves while restricting dividend declarations when the solvency ratio falls below 30 percent. The framework mandates immediate supervisory intervention and administrative penalties for non-compliance, with existing reinsurers required to meet phased capital targets of K500 million by December 2017, K1 billion by December 2018, and the full K1.5 billion by December 2019.