Regulatory Alerts2019-01-22 | CD-SIBOIF-1093-1-ENE22-2019Norm Reforming Articles 3 and 4 of the Standard for Profit Distribution of Insurance, Reinsurance, and Surety Companies
The Superintendence of Banks and Other Financial Institutions (SIBOIF) issued Resolution No. CD-SIBOIF-1093-1-ENE22-2019 to amend Articles 3 and 4 of the Standard for Profit Distribution of Insurance, Reinsurance, and Surety Companies. The reform imposes stricter solvency, liquidity, combined ratio, and debt limit conditions that insurers must meet to authorize profit distributions, while also capping the distributable amount by mandating specific reserves for capital and unearned premiums. These measures aim to preserve the financial strength of insurance companies to ensure they can effectively respond to potential claims and maintain institutional stability.
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