Capital Update Standard for Insurance Companies

Resolution No. CD-SIBOIF-1474-1-NOV5-2024
Dated November 5, 2024

CAPITAL UPDATE STANDARD FOR INSURANCE COMPANIES

The Board of Directors of the Superintendence of Banks and Other Financial Institutions,

CONSIDERING

I

That Article 34 of Law No. 733, "General Law of Insurance, Reinsurance, and Surety Bonds," published in La Gaceta, Official Gazette No. 162, 163, and 164, on August 25, 26, and 27, 2010, respectively, contained in Law No. 1175, "Law of the Nicaraguan Legal Digest on Banking and Finance Matters," published in La Gaceta, Official Gazette No. 153, on August 20, 2024 (Legal Digest Law), establishes that insurance companies constituted in the country must have, as mandatory social capital to conduct business, the following amounts, according to the group of insurance to operate:

1. when operating only insurance modalities included in the group of property insurance and mandatory insurance, forty million córdobas (C$40,000,000.00);
2. when operating only insurance modalities included in the group of personal insurance (life, personal accidents, health, pension insurance, and annuities), forty million córdobas (C$40,000,000.00);
3. when operating the insurance modalities included in the group of property and mandatory insurance; as well as the group of personal, annuity, and pension insurance, the sum of eighty million córdobas (C$80,000,000.00);
4. when operating in the surety bond modality, ten million córdobas (C$10,000,000.00); and
5. when operating reinsurance or reinsuring, the sum equivalent to 1.5 times the capital amounts established previously for each of the modalities operated.

II

That the aforementioned Article 34 empowers the Board of Directors of this Superintendence to update the amount of mandatory social capital of insurance companies at least every two years in case of exchange rate variations of the national currency.

III

That by Resolution No. CD-SIBOIF-1346-3-NOV22-2022, dated November 22, 2022, this Board of Directors last updated the minimum required social capital for insurance companies in the following amounts, according to the group of insurance to operate: 1) For property insurance and mandatory insurance, in sixty-seven million two hundred twenty-nine thousand five hundred córdobas (C$67,229,500.00); 2) For personal insurance (life, personal accidents, health, pension insurance, and annuities), in sixty-seven million two hundred twenty-nine thousand five hundred córdobas (C$67,229,500.00); 3) For property and mandatory insurance, as well as personal insurance, annuities, and pensions, in one hundred thirty-four million four hundred fifty-nine thousand córdobas (C$134,459,000.00); 4) For surety bonds, in sixteen million eight hundred seven thousand five hundred córdobas (C$16,807,500.00); and 5) For reinsurance or reinsuring, the sum equivalent

to 1.5 times the amounts established in the preceding items for each of the modalities operated.

IV

That in accordance with the considerations stated above and based on the powers provided in Article 5, item 1) of the aforementioned Law No. 733; and Article 3, items 3) and 13) and Article 10, item 4) of Law No. 316, "Law of the Superintendence of Banks and Other Financial Institutions," published in La Gaceta, Official Gazette No. 196, on October 14, 1999, contained in the Legal Digest Law.

In exercise of its powers;

HAS ISSUED

The following:

Resolution No. CD-SIBOIF-1474-1-NOV5-2024

CAPITAL UPDATE STANDARD FOR INSURANCE COMPANIES

Article 1. Update of social capital.- The minimum required social capital for insurance companies is updated in the following amounts, according to the group of insurance to operate:

Article 2. Deadline.- Insurance companies that, upon the entry into force of this standard, have authorized social capital below the minimum social capital established in the preceding article, must update it and have it subscribed and paid no later than within seven (7) calendar days after the next Ordinary General Shareholders' Meeting.

Insurance Modalities	Minimum Social Capital
1) Property insurance and mandatory insurance.	C$68,102,500.00
2) Personal insurance (life, personal accidents, health, pension insurance, and annuities).	C$68,102,500.00
3) Property and mandatory insurance, as well as personal insurance, annuities, and pensions.	C$136,205,000.00
4) Surety bonds.	C$17,026,000.00
5) Reinsurance or reinsuring.	The sum equivalent to 1.5 times the amounts established in the preceding items for each of the modalities operated.

Article 3. Repeal.- The Capital Update Standard for Insurance Companies, contained in Resolution No. CD-SIBOIF-1346-3-NOV22-2022, dated November 22, 2022, published in La Gaceta, Official Gazette No. 226, on December 1, 2022, is hereby repealed.

Article 4. Effectiveness.- This standard shall enter into force upon its publication in La Gaceta, Official Gazette.

(F) legible Magaly María Sáenz Ulloa (F) Illegible (Luis Ángel Montenegro E) (F) Illegible Fausto Reyes (F) Illegible (Silvio Moisés Casco Marenco) (F) Illegible (Ervin Antonio Vargas Pérez) (f) Illegible Secretary.

SAÚL CASTELLÓN TÓRREZ
Ad Hoc Secretary of the Board of Directors SIBOIF