Regulatory Alerts2017-01-01
Added · Updated
Margin of Solvency Directives No. SIB/45/2016
The National Bank of Ethiopia requires all insurers to maintain admitted capital based on specific thresholds: general insurers must hold the highest of 25% of technical provisions, 20% of net written premiums from the preceding year, or the minimum paid-up capital, while long-term insurers must hold the higher of 10% of technical provisions or the minimum paid-up capital. The directives define admitted assets, liabilities, capital, and technical provisions, explicitly excluding items such as deferred expenses, intangible assets, and receivables past due one year from admitted assets. These rules replace the Manner of Computing Margin of Solvency for Insurance Companies Directives No. SIB/26/2004 and entered into force on January 1, 2017.