Regulatory Alerts2025-01-01
Property and Casualty Large Insurance Exposures and Investment Concentration
The Office of the Superintendent of Financial Institutions issued this guideline to establish prudential limits for federally regulated property and casualty insurers regarding large insurance exposures and investment concentration. The document mandates that these institutions implement a comprehensive Gross Underwriting Limit Policy to define single exposures and cap net retention plus unregistered reinsurance exposure at 100 percent or 25 percent of total capital available, depending on the entity's structure. Additionally, it requires investment concentration limits capping aggregate market values in any single entity or affiliated group at five percent of total assets, while allowing for case-by-case corrective measures in non-compliance.