Regulatory Alerts2003-08-31
Large Exposure Limits for Life Insurance and Fraternal Companies
OSFI establishes large credit risk exposure limits for federally regulated life insurance companies, fraternal benefit societies, and their Canadian foreign branches. The guideline caps aggregate exposures to any entity or connected group at 25 percent of total capital for consolidated companies, while foreign branches must comply with home jurisdiction limits or a 5 percent net assets cap based on specific supervisory criteria. Regulated entities must implement written internal policies, maintain management control systems, and notify the Superintendent of exposures exceeding 50 percent of capital within ten working days.
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