Regulatory Alerts2019-10-11 | DOF 5575201Added
Amending Circular 13/19 of the Single Insurance and Surety Bond Circular
The National Commission of Insurance and Surety Bonds amends Annex 6.4.11 of the Single Insurance and Surety Bond Circular to publish the Basic Adjustment Factor for Credit Risk (FBA) and Credit Risk Adjustment Factors (FA) applicable for the second quarter of 2019. The document specifies an FBA of 2.1813 for Government Bonds and assigns specific FA values ranging from 2.1813 to 3.2649 based on credit ratings for asset-backed securities, collateralized guaranteed values with maturities of seven years or less, and other guaranteed values. These factors are required by insurance institutions to calculate the capital requirement factor for surety bond issuances. The circular enters into force the day following its publication in the Official Gazette of the Federation.