Regulatory Alerts2024-01-31 | NRP-52Technical Standards for the Calculation of Minimum Net Worth of Insurance Companies
The Standards Committee of the Central Reserve Bank of El Salvador issued Technical Standards NRP-52 to establish the uniform methodology for calculating the minimum net worth and solvency margin of insurance companies. The regulation mandates that insurers maintain a net worth sufficient to cover extraordinary obligations, defined as the higher of a debt-to-equity ratio limit or specific solvency margin calculations across different insurance branches. It further outlines the subjects subject to these rules, the procedures for reporting deficiencies, and the specific accounting components required for compliance.
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