Regulatory Alerts2025-01-01
Mortgage Insurer Capital Adequacy Test Guideline (2025)
The Office of the Superintendent of Financial Institutions established this guideline to implement a risk-based capital framework for federally regulated Canadian mortgage insurers, mandating minimum and supervisory target capital ratios of 100% and 150%. The framework defines qualifying capital across three categories, calculates requirements based on insurance, credit, market, and operational risks, and excludes reinsurance capital. Insurers must ensure continuous compliance through quarterly returns endorsed by authorized officers and submit mandatory annual audit reports within 90 days of their fiscal year-end.
Share