Resolution SBS No. 2904-2014: Modification of Regulations on Capital Requirements for Insurance and Reinsurance Companies, Classification and Valuation of Investments, Eligible Investments, and Chart of Accounts

Los Laureles Nº 214 - Lima 27 - Perú Telf. : (511)6309000 Fax: (511) 6309239 1/18 Lima, May 15, 2014 S.B.S. Resolution No. 2904-2014 The Superintendent of Banking, Insurance, and Private Pension Fund Administrators

CONSIDERING:

That, the General Law of the Financial System and the Insurance System and the Organic Law of the Superintendence of Banking and Insurance, Law No. 26702, and its modifying norms, hereinafter General Law, establishes in its articles 298 and following the minimum capital requirements that insurance and reinsurance companies must meet;

That, by SBS Resolution No. 1124-2006 of August 29, 2006, and its modifying norms, the Regulation on Capital Requirements for Insurance and Reinsurance Companies was approved;

That, said Regulation established, among other aspects, the composition and methodology of capital requirements for insurance and reinsurance companies;

That, as provided in articles 300 and 304 of the General Law, when insurance companies carry out operations subject to credit risk, they must allocate a portion of their effective equity, in the amount exceeding their solvency capital, to cover credit risk, observing the norms issued generally by the Superintendence, with the credit risk weighting factors established in articles 188 to 195 being applicable, as well as provisions and norms on limits, financial and/or mixed conglomerates applicable to companies in the financial system;

That, by Legislative Decree No. 1028, the General Law was modified, derogating the weighting factors established in articles 188 to 195, establishing in article 187 that to calculate the effective capital requirement for credit risk under the standard method, companies in the financial system must weight the amount of their exposures by the weighting factors approved by the Superintendence, which have been regulated by the Regulation for the Effective Capital Requirement for Credit Risk, approved by SBS Resolution No. 14354-2009 and its modifying norms;

That, by SBS Resolution No. 8425-2011, the Regulation for the Additional Effective Capital Requirement was approved, with the purpose of reinforcing the solvency requirements of companies in the financial system;

That, by SBS Resolution No. 1183-2007, Negotiable Mortgage Credit Titles (TCHN) and real estate credits instrumented in promissory notes were incorporated as eligible investments for insurance companies, within the real estate credits category; to these instruments subject to credit risk, the provisions of article 304 of the General Law apply;

Los Laureles Nº 214 - Lima 27 - Perú Telf. : (511)6309000 Fax: (511) 6309239 2/18

That, therefore, it is necessary to modify the methodology for calculating the effective capital requirement intended to cover credit risk for insurance and reinsurance companies, established in the Regulation on Capital Requirements for Insurance and Reinsurance Companies, as well as incorporate the additional effective capital requirement by economic cycle, with the purpose of reinforcing the solvency requirements of the aforementioned companies;

That, by SBS Resolution No. 7034-2012, the Regulation on Classification and Valuation of Investments of Insurance Companies was approved;

That, it is necessary to make clarifications to the Regulation on Classification and Valuation of Investments of Insurance Companies, regarding accounting registration, as well as the valuation of Negotiable Mortgage Credit Titles (TCHN) and real estate credits instrumented in promissory notes;

That, by SBS Resolution No. 039-2002 and its modifying norms, the Regulation on Eligible Investments of Insurance Companies was approved;

That, it is necessary to modify the Regulation on Eligible Investments of Insurance Companies, with the purpose of clarifying which real estate credits are considered eligible investments;

That, for the purpose of collecting opinions from the general public, the draft resolution on the matter was pre-published on the electronic portal of the Superintendence, under the provisions of Supreme Decree No. 001-2009-JUS;

Having the approval of the Adjunct Superintendencies of Private Pension Fund Administrators and Insurance, of Risks, of Economic Studies, and of Legal Advice; and,

In exercise of the powers conferred by numbers 7, 9, and 13 of article 349 of the General Law;

RESOLVES:

Article First.- Modify the Regulation on Capital Requirements for Insurance and Reinsurance Companies, approved by SBS Resolution No. 1124-2006 and its modifying norms, according to the following:

1. Modify number 3.3 and incorporate number 3.4 of article 3 "Composition", according to the following:

"Composition
Article 3.- Effective equity must cover the following requirements:
(...)
3.3 Effective capital requirement for credit risk
It represents the equity portion that must back the operations subject to credit risk described in article 304 of the General Law.

Los Laureles Nº 214 - Lima 27 - Perú Telf. : (511)6309000 Fax: (511) 6309239 3/18

The effective capital requirement intended to cover credit risk is determined by multiplying the assets and contingencies weighted by credit risk by ten percent (10%), as provided in the standard method regulated in the Regulation for the Effective Capital Requirement for Credit Risk, approved by SBS Resolution No. 14354-2009 and its modifying norms.

The assets and contingencies subject to credit risk refer to:
a) Mortgage loans to workers for the acquisition of a single home; b) Negotiable Mortgage Credit Titles (TCHN); c) Real estate credits for the acquisition of future goods initially instrumented in promissory notes and subsequently in a TCHN; and, d) Guarantees granted by companies, referring to those guarantees on obligations with "give" or "do" performance.

3.4 Additional effective capital requirement by economic cycle
Insurance and reinsurance companies must comply with the additional effective capital requirement by economic cycle for assets and contingencies subject to credit risk, in accordance with the provisions indicated in the "Regulation for the additional effective capital requirement", approved by SBS Resolution No. 8425-2011 and modifying norms. The aforementioned requirement will be calculated according to what is indicated in Annex No. ES-7B Table No. 4 "Additional Effective Capital Requirement by Economic Cycle". The activation and deactivation rule for the additional effective capital requirement by economic cycle is communicated via Circular and is the same that activates and deactivates the procyclical component of provisions, according to the Regulation for the Evaluation and Classification of the Debtor and the Exigibility of Provisions in force."

2. Modify article 4 "Capital surplus or deficit", according to the following:

"Capital surplus or deficit
Article 4.- It corresponds to the excess or deficit generated by deducting from effective equity the sum of solvency capital, the guarantee fund, the effective capital requirement for credit risk, and the additional effective capital requirement by economic cycle.

In the event of a deficit in effective equity, it must be applied first to the additional effective capital requirement by economic cycle, second to the effective capital requirement for credit risk, third to the guarantee fund, and fourth to solvency capital."

3. Incorporate as First Final and Complementary Provision the following:

"FINAL AND COMPLEMENTARY PROVISIONS
First- Adaptation period to comply with the additional effective capital requirement by economic cycle.
Companies must comply with the additional effective capital requirement by economic cycle at the level requested in this Regulation, according to the following schedule:

Los Laureles Nº 214 - Lima 27 - Perú Telf. : (511)6309000 Fax: (511) 6309239 4/18

4. Modify the format of Annex ES-7, as well as tables 1, 2, and 3 of Annex ES-7B, and incorporate table 4 into Annex ES-7B. The formats of the aforementioned annexes and their methodological notes are published on the institutional portal (www.sbs.gob.pe), in accordance with the provisions of Supreme Decree No. 001-2009-JUS.

Article Second.- Modify the Regulation on Classification and Valuation of Investments of Insurance Companies, approved by Resolution No. 7034-2012, according to the following:

1. Modify article 4 "Classification", according to the following text:

"Article 4.- Classification
Investments or operations carried out by companies, in accordance with the guidelines established in policies and procedures manuals, must be classified into the following categories:
a) Investments at fair value with changes in results; b) Available-for-sale investments; c) Held-to-maturity investments; d) Investments in subsidiaries, associates, and joint venture interests; e) Real estate investments; and, f) Real estate credits. The provisions established in chapters III and IV of this Regulation are not applicable to real estate investments and real estate credits."

2. Incorporate Chapter VII-A "Real Estate Credits", as indicated below:

"CHAPTER VII-A
REAL ESTATE CREDITS
Article 30.- Real estate credits
Companies may grant and/or invest in the following real estate credits:
a) Complete and updated Negotiable Mortgage Credit Titles (TCHN). b) Real estate credits for the acquisition of future goods initially instrumented in promissory notes and subsequently in a TCHN. For this effect, the aforementioned credits must:
b.1) Have collateral of cash deposits, guarantee letters, and/or instruments that qualify as eligible investments for the coverage of technical obligations included in letters a) to h), n.1, and n.3) of article 4 of the Regulation on Eligible Investments of Insurance Companies. This, in order to guarantee the construction of the real estate, their independence, and the constitution of a first and preferential mortgage in favor of the company; or,

YEAR OF
ADAPTATION
PERCENTAGE OF
REQUIRED
AMOUNT
December 2014 40%
December 2015 60%
December 2016 80%
December 2017 100%"

Los Laureles Nº 214 - Lima 27 - Perú Telf. : (511)6309000 Fax: (511) 6309239 5/18

b.2) Be backed by a mortgage pending registration in favor of the company, with a registry block, in order for the registration of said guarantee and the respective credit to be incorporated subsequently into a TCHN. c) Mortgage credits that companies in the insurance system grant to their workers, provided they correspond exclusively to single-home loans, as provided by number 3 of article 325 of the General Law. Insurance companies are prohibited from granting other types of real estate credits without prior authorization from the Superintendence. The aforementioned authorization is carried out through its incorporation in this norm, and the new type of real estate credit is subject to the applicable regulations for this class of operations.

Article 31.- Initial measurement
Initial accounting recognition for the acquisition of TCHN and real estate credits for the acquisition of future goods is carried out at the nominal value of the underlying credit, in the item "accounts receivable for operations subject to credit risk". If the fair value (transaction price, unless proven otherwise) is lower than the nominal value, the difference is recorded in the item "deferred liabilities". Otherwise, it is recorded in the item "other assets". The amounts recorded in the items "deferred liabilities" or "other assets" are recognized as income or expense of the period, respectively, applying the straight-line method over the residual term of the real estate credits.

In the case of mortgage credits that insurance companies grant to their workers, the initial registration of said credit is carried out by the disbursed amount.

Transaction costs, as defined in article 2 of this Regulation, are recognized as expense when incurred.

Article 32.- Subsequent measurement
In the subsequent measurement of real estate credits, the following must be considered:
a. Valuation
Valuation corresponds to the nominal value (principal balance of the underlying credit) plus accrued interest, net of provisions for the underlying credit. Interest and provisions are determined in accordance with the provisions established in the Regulation for the Evaluation and Classification of the Debtor and the Exigibility of Provisions, approved by SBS Resolution No. 11356-2008 and its modifying norms.

b. Recognition of expenses
The constitution of provisions is carried out on the accounting balance of the nominal value (principal balance of the underlying credit), recognized as expenses, affecting the result of the period.

c. Recognition of income
Interest is recognized as income, affecting the result of the period, except in situations where recognition is suspended, as established in the Regulation for the Evaluation and Classification of the Debtor and the Exigibility of Provisions.

Article 33.- Transactions with related parties

Los Laureles Nº 214 - Lima 27 - Perú Telf. : (511)6309000 Fax: (511) 6309239 6/18

In the case of operations with related parties to the company, in accordance with article 202 of the General Law and the Special Norms on Linkage and Economic Group, the fair value of the instruments indicated in article 30 must be supported by a technical study prepared by an unrelated person, in which the valuation methodology used is described in detail. This technical study must be available to the Superintendence."

3. Incorporate the Tenth Final and Complementary Provision, the following text:

"Tenth.- Guarantees granted by insurance companies Guarantees are those guarantees that the company grants on obligations with "give" or "do" performance. The company may grant these guarantees provided it has the authorization for expansion of operations provided for in article 318 of the General Law and demonstrates that it has a capital surplus. The company is prohibited from granting other types of guarantees without prior authorization from the Superintendence, in which case, the authorization must be issued via a norm of general application.

The company must constitute provisions for the exposure equivalent to the credit risk of the guarantees granted, in accordance with the provisions of the Regulation for the Evaluation and Classification of the Debtor and the Exigibility of Provisions, approved by SBS Resolution No. 11356-2008 and its modifying norms."

Article Third.- Modify the Regulation on Eligible Investments of Insurance Companies, approved by Resolution No. 039-2002 and its modifying norms, according to the following:

1. Modify letter a) of article 2 "Definitions", according to the following text:

"Definitions
Article 2.- For the application of this Regulation, the following definitions are considered:
a) Technical obligations: the total of technical reserves, solvency capital, deferred premiums, unsafe practice, the guarantee fund, the effective capital requirement intended to cover credit risk, as well as the additional effective capital requirement by economic cycle."

2. Modify subsection n.4) of article 4 "Eligible investments", according to the following text:

"Eligible investments
Article 4.- Eligible investments may be made in the assets indicated below, whether represented by physical titles or book entries, as appropriate:
(...) n.4 Real estate credits, which include:
n.4.1) Complete and updated Negotiable Mortgage Credit Titles (TCHN). n.4.2) Real estate credits for the acquisition of future goods initially instrumented in promissory notes and subsequently in a TCHN, provided they have backing of cash deposits, guarantee letters, and/or instruments that qualify as eligible investments for the coverage of technical obligations, included in subsections a) to h), n.1), and n.3) above. This, in order to guarantee the construction of the real estate, their independence, and the constitution of a first and preferential mortgage in favor of the company.

Los Laureles Nº 214 - Lima 27 - Perú Telf. : (511)6309000 Fax: (511) 6309239 7/18

n.4.3) Mortgage credits that companies in the insurance system grant to their workers.
In all cases, the classification of the debtor must be "Normal", in accordance with the Regulation for the Evaluation and Classification of the Debtor and the Exigibility of Provisions, approved by SBS Resolution No. 11356-2008 and its modifying norms. Likewise, they are subject to what is provided in the Regulation on Classification and Valuation of Investments of Insurance Companies, approved by SBS Resolution No. 7034-2012, and the Chart of Accounts for Companies of the Insurance System, approved by SBS Resolution No. 348-95 and its modifying norms."

3. Modify Annexes ES-31 "Technical Obligations" and ES-41 "Eligible Investments". The formats of the aforementioned annexes and their methodological notes are published on the institutional portal (www.sbs.gob.pe), in accordance with the provisions of Supreme Decree No. 001-2009-JUS.

Article Fourth.- Modify the definition of the term "Technical Obligations" included in number 2.4 of the Norms for the Accounting Identification of Operations of Life Lines and General Lines of Insurance Companies, approved by SBS Resolution No. 1141-1999 and its modifying norms, and in any other regulation and information report where the aforementioned term is used, according to the following text:

"Technical obligations: The total of technical reserves, solvency capital, deferred premiums, unsafe practice, the guarantee fund, the effective capital requirement intended to cover credit risk, as well as the additional effective capital requirement by economic cycle."

Article Fifth.- Modify the Chart of Accounts for Companies of the Insurance System, approved by SBS Resolution No. 348-95 and its modifying norms, according to what is indicated in Annex A attached to this Resolution. The aforementioned Annex A is published on the Institutional Portal (www.sbs.gob.pe), in accordance with the provisions of Supreme Decree No. 001-2009-JUS.

Article Sixth.- This resolution enters into force from the day following its publication in the Official Newspaper El Peruano, granting companies an adaptation period of six (6) months. Exceptionally, the Superintendence may authorize companies an extension of the adaptation period. 1

Register, communicate, and publish.

DANIEL SCHYDLOWSKY ROSENBERG
Superintendent of Banking, Insurance, and Private Pension Fund Administrators

1 By Multiple Letter No. 47144-2014-SBS, dated 12/29/2014, the adaptation period was extended until 05/31/2015. Likewise, by Multiple Letter No. 19376-2015-SBS, dated 05/29/2015, the adaptation period for the determination of the effective capital requirement corresponding to guarantees was extended until December 2015.

Los Laureles Nº 214 - Lima 27 - Perú Telf. : (511)6309000 Fax: (511) 6309239 8/18

ANNEX A
Modify Chapters III "Chart of Accounts" and Chapter IV "Description and Dynamics", as well as the "Conceptual Accounting Framework" of the Chart of Accounts for Companies of the Insurance System approved by SBS Resolution No. 348-95 and its modifying norms, according to the following:

A. Chapter III "Chart of Accounts":

1. Eliminate the following subaccounts and analytical accounts:
   1101.02.10 Negotiable mortgage credit titles
   1101.02.11 Real estate credits for acquisition of future goods
   1109.01.05 Provisions for credit risk of TCHN and real estate credits for acquisition of future goods
   1109.09.05 Provisions for credit risk of TCHN and real estate credits for acquisition of future goods
   1701.01.10 Negotiable Mortgage Credit Titles (TCHN)
   1701.01.11 Real estate credits for acquisition of future goods
   1701.02.10 Negotiable Mortgage Credit Titles (TCHN)
   1701.02.11 Real estate credits for acquisition of future goods
   1708.01.10 Negotiable Mortgage Credit Titles (TCHN)
   1708.01.11 Real estate credits for acquisition of future goods
   1708.02.10 Negotiable Mortgage Credit Titles (TCHN)
   1708.02.11 Real estate credits for acquisition of future goods
   1709.07 Provisions for credit risk of TCHN and real estate credits for acquisition of future goods

2. Substitute the name of account 1304 "Other credits receivable" with "Accounts receivable". Likewise, incorporate the following subaccounts into account 1304, according to the following:
   1304.06 Negotiable Mortgage Credit Titles (TCHN)
   1304.07 Real estate credits for acquisition of future goods

3. Incorporate into account 1306 "Overdue accounts" the following accounting subaccounts:
   1306.06 Negotiable Mortgage Credit Titles (TCHN)
   1306.07 Real estate credits for acquisition of future goods

4. Incorporate into account 1307 "Accounts in judicial collection" the following accounting subaccounts:
   1307.06 Negotiable Mortgage Credit Titles (TCHN)
   1307.07 Real estate credits for acquisition of future goods

5. Incorporate into account 1309 "Accumulated impairment of accounts receivable for operations subject to credit risk" the following analytical accounts:
   1309.01.06 Negotiable Mortgage Credit Titles (TCHN)

Los Laureles Nº 214 - Lima 27 - Perú Telf. : (511)6309000 Fax: (511) 6309239 9/18
1309.01.07 Real estate credits for the acquisition of future goods
1309.02.06 Negotiable Mortgage Credit Titles (TCHN)
1309.02.07 Real estate credits for the acquisition of future goods
6. Sub-account 1309.03 "Other provisions" shall be incorporated.
7. The following sub-accounts shall be incorporated into account 2809 "Other liabilities":
2809.01 Provisions for granted guarantees
2809.09 Other provisions
8. The name of accounting sub-account 4609.06 "Provision for credit risk of TCHN and real estate credits for the acquisition of future goods" shall be modified to "Provisions for real estate credits".
9. The following sub-account shall be incorporated into account 4609 "Provisions, depreciation, amortization, and impairment":
4609.08 Provisions for granted guarantees
10. The name of accounting sub-account 5601.05 "TCHN and real estate credits for the acquisition of future goods" shall be modified to "Real estate credits".
11. Account 8209 "Various creditor off-balance sheet accounts" shall be incorporated.

B. Chapter IV "Description and Dynamics":

1. Remove, from the descriptions and dynamics of items 11 "Financial Investments" and 17 "Investments", as well as from their accounts, sub-accounts, and analytical accounts, all references to Negotiable Mortgage Credit Titles (TCHN) and Real estate credits for the acquisition of future goods. Likewise, remove such references in the "Valuation" section of item 11 "Financial Investments".
2. Replace the description of item 13 "Accounts receivable from operations subject to credit risk", according to the following text:
   "It comprises real estate credits, as well as other accounts receivable subject to credit risk. The initial and subsequent accounting recognition of real estate credits is carried out in accordance with the Regulation on Classification and Valuation of Investments of Insurance Companies."
3. Incorporate the description of account 2809.01 "Provisions for granted guarantees", according to the following text:
   "Companies must establish provisions for the exposure equivalent to the credit risk of granted guarantees, in accordance with the provisions of the Regulation for the Evaluation and Classification of the Debtor and the Requirement of Provisions approved by SBS Resolution No. 11356-2008 and its modifying norms, affecting the expense account 4609.08 "Provision for granted guarantees."

Los Laureles Nº 214 - Lima 27 - Perú Telf. : (511)6309000 Fax: (511) 6309239 10/18
4. The name of sub-account 4609.06 "Provision for credit risk of TCHN and real estate credits for the acquisition of future goods" shall be modified to "Provision for credit risk of real estate credits".
5. The following shall be incorporated into the description of account 4609 "Provisions, depreciation, amortization, and impairment":
"Likewise, in this account, the expense of provisions for the exposure equivalent to the credit risk of granted guarantees is recorded, in accordance with the provisions of the Regulation for the Evaluation and Classification of the Debtor and the Requirement of Provisions approved by SBS Resolution No. 11356-2008 and its modifying norms, affecting the liability account 2809.01 "Provision for granted guarantees."

C. "Conceptual Accounting Framework"

1. In the section "NIC 39 – Financial Instruments – Recognition and Measurement", renumber items D) Derecognition of Financial Assets and E) Transfer of Financial Assets as items E) and F), respectively.
2. Incorporate into the section "NIC 39 – Financial Instruments – Recognition and Measurement", as item D) "Accounts Receivable from Operations Subject to Credit Risk" with the text indicated below:
   "D) ACCOUNTS RECEIVABLE FROM OPERATIONS SUBJECT TO CREDIT RISK Granted Guarantees The exposure to credit risk of granted guarantees must be provided for in accordance with the provisions of the Regulation for the Evaluation and Classification of the Debtor and the Requirement of Provisions approved by SBS Resolution No. 11356-2008 and its modifying norms, affecting the expense account 4609.08 "Provision for granted guarantees". Real Estate Credits The initial and subsequent accounting recognition of real estate credits is carried out in accordance with the provisions of the Regulation on Classification and Valuation of Investments of Insurance Companies and the following:
   Initial Measurement
   The initial accounting recognition for the acquisition of TCHN and real estate credits for the acquisition of future goods is carried out at the nominal value of the underlying credit, in the item "accounts receivable from operations subject to credit risk". If the fair value (transaction price, unless proven otherwise) is lower than the nominal value, the difference is recorded in the item "Deferred Liabilities", account 2909 "Other Deferred Gains", sub-account 2909.09 "Various". Otherwise, it is recorded in the item "Other Assets", account 1907 "Deferred Charges", sub-account 1907.09 "Other Deferred Charges". The amounts recorded in the items "deferred liabilities" or "other assets" are recognized as income or expense of the period, respectively, applying the straight-line method over the residual term of the real estate credits.

Los Laureles Nº 214 - Lima 27 - Perú Telf. : (511)6309000 Fax: (511) 6309239 11/18 In the case of mortgage credits that insurance companies grant to their employees, the initial recording of said credit is carried out at the disbursed amount. Transaction costs are recognized as expense when they are incurred. Subsequent Measurement In the subsequent measurement of real estate credits, the following must be considered:
a) Valuation
Valuation corresponds to the nominal value (principal balance of the underlying credit) plus accrued interest, net of provisions for the underlying credit. Interest and provisions are determined in accordance with the provisions established in the Regulation for the Evaluation and Classification of the Debtor and the Requirement of Provisions, approved by SBS Resolution No. 11356-2008 and its modifying norms. b) Expense Recognition The establishment of provisions is carried out on the accounting balance of the nominal value (principal balance of the underlying credit), recognized as expenses, affecting the result of the period. c) Income Recognition Interest is recognized as income, affecting the result of the period, except in situations where recognition is suspended, in accordance with what is established in the Regulation for the Evaluation and Classification of the Debtor and the Requirement of Provisions." d) Overdue Credits The accounting recording of real estate credits in account 1306 "Overdue Accounts" is carried out when delays exceed thirty (30) days.
3. Remove from item C) "Accounts Receivable from Insurance Contracts" of the section "NIC 39 – Financial Instruments – Recognition and Measurement" the title "Accounts Receivable from Operations Subject to Credit Risk".

Los Laureles Nº 214 - Lima 27 - Perú Telf. : (511)6309000 Fax: (511) 6309239 12/18 MODIFIED AND/OR INCORPORATED ANNEX FORMATS
ANNEX ES-7
SURPLUS OR DEFICIT OF
EQUITY CAPITAL
INSURANCE COMPANY: ......
AS OF..... OF...... OF......
CONCEPTS
GENERAL LINES
S/.
LIFE LINES
S/.
CONSOLIDATED TOTAL
S/.
COMMENTS/OBSERVATIONS
A. Total Equity Capital
Less:
B. Solvency Capital Amount established based on the highest figure of the criteria indicated in Article 298 of Law No. 26702 B.1 Solvency Margin B.2 Minimum Capital
C. Guarantee Fund 35% of Solvency Capital
D. Effective Capital Requirement for Credit Risk Total of Annex ES-7B (Tables 1 to 3) E. Additional Effective Capital Requirement for Economic Cycle Total of Annex ES-7B (Table 4) SURPLUS OR DEFICIT OF EQUITY CAPITAL A - B - C - D - E

Los Laureles Nº 214 - Lima 27 - Perú Telf. : (511)6309000 Fax: (511) 6309239 13/18
ANNEX ES-7B
EFFECTIVE CAPITAL REQUIREMENT TO COVER CREDIT RISK AND ADDITIONAL EFFECTIVE CAPITAL REQUIREMENT FOR ECONOMIC CYCLE (ARTICLE 300 LAW NO. 26702)
INSURANCE COMPANY: ......
AS OF..... OF...... OF......
TABLE NO. 1: CREDITS WEIGHTED BY CREDIT RISK
Notes:
1) Determined in accordance with the provisions of the Regulation for the Effective Capital Requirement for Credit Risk approved by SBS Resolution No. 14354-2009 and its modifying norms.
2) The value to consider is the nominal value net of provisions (includes accrued interest) and of any eligible movable real guarantee. When it is necessary to apply credit counterparty substitution, the part covered by the personal guarantee must be separated and presented in the row of the weighting factor corresponding to the provider of the protection.
ACCOUNTING CODE AND NAME
WEIGHTING
FACTOR 1)
(A)
GENERAL LINES 2)
(New Soles)
(B)
LIFE LINES
(New Soles) 2)
(C)
CREDITS
WEIGHTED BY
RISK
CONSOLIDATED
(D)=(A)(B)+(A)(C)
REAL ESTATE CREDITS WITH MORTGAGE GUARANTEE ON DWELLINGS (MORTGAGE CREDITS)

• Mortgage credits to workers
• Negotiable Mortgage Credit Titles (TCHN)
• Mortgage credits for the acquisition of future goods
  0%
  20%
  50%
  75%
  100%
  150%
  200%
  250%
  REAL ESTATE CREDITS WITH MORTGAGE GUARANTEE ON PROPERTIES OTHER THAN DWELLINGS.
• Negotiable Mortgage Credit Titles (TCHN)
• Real estate credits for the acquisition of future goods
  0%
  20%
  50%
  100%
  150%
  OTHER CREDITS UNDER ANY MODALITY
• 1304.02 Credits for executed guarantees
• 1304.03 Commissions
• 1304.04 Accounts receivable from trust
• 1306 Overdue Accounts
• 1307 Accounts in judicial collection
• 1308.05 Credits for executed guarantees
• 1309 Provision for uncollectibles
  0%
  20%
  50%
  100%
  150%
  GENERAL MANAGER CHIEF ACCOUNTANT

Los Laureles Nº 214 - Lima 27 - Perú Telf. : (511)6309000 Fax: (511) 6309239 14/18
TABLE NO. 2: CONTINGENCIES WEIGHTED BY CREDIT RISK
Notes:
3) Determined in accordance with the provisions of the Regulation for the Effective Capital Requirement for Credit Risk approved by SBS Resolution No. 14354-2009 and its modifying norms.
4) The value to consider is the nominal value net of provisions and of any eligible movable real guarantee, multiplied by the corresponding credit conversion factor. When it is necessary to apply credit counterparty substitution, the part covered by the personal guarantee must be separated and presented in the row of the weighting factor corresponding to the provider of the protection.
ACCOUNTING CODE AND NAME
WEIGHTING
FACTOR 3)
(A)
GENERAL LINES 4)
(New Soles)
(B)
LIFE LINES
(New Soles) 4)
(C)
CONTINGENCIES
WEIGHTED BY
RISK
CONSOLIDATED
(D)=(A)(B)+(A)(C)
CREDIT CONVERSION FACTOR (CCF): 50%
7003 Guarantees backing guarantees on obligations with "DO" performance 0% 20% 50% 100% 150% CREDIT CONVERSION FACTOR (CCF): 100% 7003 Guarantees backing guarantees on obligations with "GIVE" performance 0% 20% 50% 100% 150% GENERAL MANAGER CHIEF ACCOUNTANT

Los Laureles Nº 214 - Lima 27 - Perú Telf. : (511)6309000 Fax: (511) 6309239 15/18
TABLE NO. 3: SUMMARY OF CREDITS AND CONTINGENCIES WEIGHTED BY CREDIT
RISK AND OF THE CAPITAL REQUIREMENT FOR CREDIT RISK CONCEPTS TOTAL CREDITS AND CONTINGENT EXPOSURES WEIGHTED BY CREDIT RISK ADJUSTED GENERAL LINES (New Soles) LIFE LINES (New Soles) TOTAL CONSOLIDATED (New Soles) TOTAL TABLE NO. 1: Credits Weighted by Credit Risk Real estate credits with mortgage guarantee on dwelling (mortgage credits). Real estate credits with mortgage guarantee on properties other than dwellings. Other credits recorded in the balance sheet under any modality. TOTAL TABLE NO. 2: Contingencies Weighted by Credit Risk Contingent exposures with CCF of 50% Contingent exposures with CCF of 100% TOTAL EFFECTIVE CAPITAL REQUIREMENT FOR CREDIT RISK 5) GENERAL MANAGER CHIEF ACCOUNTANT Notes:
5) The effective capital requirement to cover credit risk is determined by multiplying the assets and contingencies weighted by credit risk by ten percent (10%), in accordance with what is provided in the standard method regulated in the Regulation for the Effective Capital Requirement for Credit Risk approved by SBS Resolution No. 14354-2009 and its modifying norms.

Los Laureles Nº 214 - Lima 27 - Perú Telf. : (511)6309000 Fax: (511) 6309239 16/18
TABLE NO. 4: ADDITIONAL EFFECTIVE CAPITAL REQUIREMENT FOR ECONOMIC
CYCLE
Notes:
6) The weighting factor is determined based on what is stated in the Regulation for the Additional Effective Capital Requirement, approved by SBS Resolution No. 8425-2011, as well as in Report No. 4A-1 approved by said Regulation.
7) The value to consider is the nominal value net of provisions (includes accrued interest) and of any eligible movable real guarantee. When it is necessary to apply credit counterparty substitution, the part covered by the personal guarantee must be separated and presented in the row of the weighting factor corresponding to the provider of the protection.
8) The additional effective capital requirement for economic cycle is determined by multiplying the assets and contingencies weighted by marginal risk by ten percent (10%), in accordance with what is provided in the Regulation for the Additional Effective Capital Requirement, approved by SBS Resolution No. 8425-2011.
ACCOUNTING CODE AND NAME
WEIGHTING
FACTOR 6)
(A)
GENERAL LINES 7)
(New Soles)
(B)
LIFE LINES
(New Soles) 7)
(C)
CREDITS
WEIGHTED BY
MARGINAL RISK
CONSOLIDATED
(D)=(A)(B)+(A)(C)
REAL ESTATE CREDITS WITH MORTGAGE GUARANTEE ON DWELLINGS (MORTGAGE CREDITS)

• Mortgage credits to workers
• Negotiable Mortgage Credit Titles (TCHN)
• Mortgage credits for the acquisition of future goods
  0%
  12%
  15%
  25%
  REAL ESTATE CREDITS WITH MORTGAGE GUARANTEE ON PROPERTIES OTHER THAN DWELLINGS.
• Negotiable Mortgage Credit Titles (TCHN)
• Real estate credits for the acquisition of future goods
  0%
  12%
  15%
  25%
  30%
  35%
  40%
  OTHER CREDITS NOT INCLUDED IN THE ACCOUNTS INDICATED PREVIOUSLY
• 1304.02 Credits for executed guarantees
• 1304.03 Commissions
• 1304.04 Accounts receivable from trust
• 1306 Overdue Accounts
• 1307 Accounts in judicial collection
• 1308.05 Credits for executed guarantees
• 1309 Provision for uncollectibles
  0%
  12%
  15%
  25%
  30%
  ADDITIONAL EFFECTIVE CAPITAL REQUIREMENT FOR ECONOMIC CYCLE 8) GENERAL MANAGER CHIEF ACCOUNTANT

Los Laureles Nº 214 - Lima 27 - Perú Telf. : (511)6309000 Fax: (511) 6309239 17/18
ANNEX ES-31: TECHNICAL OBLIGATIONS
INSURANCE COMPANY: ......
AS OF..... OF...... OF......
(In units of new soles)
CONCEPTS S/.
A. TECHNICAL RESERVES (1)
A.1 Pending Claims (i)
A.2 Life Mathematics
A.3 SPP Technical Reserves a) Pension insurance b) Disability and survivorship pensions c) Retirement pensions A.4 Risks in Course A.5 Catastrophic Risks B. DEFERRED PREMIUMS (2)
C. INSECURE PRACTICE (3)
D. SOLVENCY CAPITAL (4)
D.1 Solvency Margin
D.2 Minimum Capital
E. GUARANTEE FUND (5)
F. EFFECTIVE CAPITAL REQUIREMENT FOR CREDIT
RISK (6)
G. ADDITIONAL EFFECTIVE CAPITAL REQUIREMENT
FOR ECONOMIC CYCLE (7)
H. TECHNICAL OBLIGATIONS (1 + 2 + 3 + 4 + 5 + 6 + 7) = (8)
I. TOTAL ELIGIBLE INVESTMENTS
J. TOTAL ELIGIBLE INVESTMENTS APPLIED (9)
K. DEFICIT / SURPLUS (9 - 8)
L. TOTAL NON-ELIGIBLE INVESTMENTS
Notes:
(i) Must also incorporate account 2301.

Los Laureles Nº 214 - Lima 27 - Perú Telf. : (511)6309000 Fax: (511) 6309239 18/18 ES-41: ELIGIBLE INVESTMENTS
INSURANCE COMPANY: ......
AS OF..... OF...... OF......
(In units of new soles)
Investment Item 1
Issuer 2 Economic Group 2
Country 3 Scope 4 Total
Eligible
Investments 5
Maximum Limit per
Investment Item 6
Maximum Limit per
Issuer 6
Eligible
Investments
Applied 7
Technical Reserves:
Pending Claims 8
Technical Reserves:
Life Mathematics 8
Technical Reserves SPP:
Pension Insurance 8
Technical Reserves SPP:
Disability and Survivorship Pensions 8
Technical Reserves SPP:
Retirement Pensions 8
Technical Reserves:
Risks in Course 8
Technical Reserves:
Catastrophic Risks 8
Deferred Premiums 8
Insecure Practice 8
Solvency Capital 8
Guarantee Fund 8
Effective Capital
Dedicated to Cover Credit Risk 8
Non-Applied Eligible
Investments 9
Notes:
1
2 Investments must be registered in the following order: by investment item, issuer, and economic group. In the case of repurchase operations and repurchase agreements, they will be grouped based on the issuer of the asset subject to the repurchase. 3 Country of origin of the issuer of the security. 4 Indicate "LO" when it is a local investment, and "EX" when it is a foreign investment; as established in this Regulation. 5 Indicate the amounts of the "final value" column of Annexes 3 to 8 for those investments that result eligible. 6 Indicate the amounts corresponding to the maximum limits per investment item and issuer resulting from applying the maximum diversification percentages established in this Regulation. 7 Indicate the total of eligible investments applied to cover technical obligations. 8 Assign the eligible investments applied to back the technical reserves, deferred premiums, insecure practice, solvency capital, and guarantee fund, taking into account what is provided in this Regulation. 9 Indicate the difference between "Total Eligible Investments" and "Eligible Investments Applied". Indicate the item and name corresponding to the Investment Item according to Article 4 of this Regulation. For example, if it is "Mutual Fund Participations in Securities", place "g.2) Mutual Fund Participations in Securities".