2024-01-01

Minimum Capital Test - Guideline (2024)

The Office of the Superintendent of Financial Institutions (OSFI) issued this guideline to establish a risk-based capital framework for federally regulated Canadian property and casualty insurance companies, including foreign branches. It mandates that insurers maintain a minimum capital ratio of 100 percent and an industry-wide supervisory target of 150 percent, calculated using a 99 percent conditional tail expectation over a one-year horizon. The document defines qualifying capital components, consolidation rules, risk allocations, and annual audit requirements to ensure financial resiliency and enable early supervisory intervention.

Canada

Office of the Superintendent of Financial Institutions

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