Regulatory Alerts2022-05-17
Solvency Standard for Non-life Insurance Business – AMI Insurance Limited
The Prudential Supervision Department issued this targeted solvency standard to mandate specific capital adequacy and risk management requirements for AMI Insurance Limited’s non-life insurance operations under the Insurance (Prudential Supervision) Act 2010. The regulation defines Actual Solvency Capital by specifying eligible equity instruments and mandatory deductions, while calculating Minimum Solvency Capital through aggregated risk charges for underwriting, runoff, catastrophe, asset, currency, interest rate, and reinsurance exposures, subject to a $3 million minimum floor. AMI Insurance must continuously maintain a positive solvency margin, submit twice-yearly solvency calculations and reports to the regulator, and comply with these provisions only while its Crown Support Agreements remain active.