Lima, 20 December 2024

S.B.S. Resolution N° 4380-2024

The Superintendent of Banking, Insurance and
Private Pension Fund Administrators

CONSIDERING:

That, in accordance with the provisions of Articles 345° and 347° of the General Law of the Financial System and the Insurance System and Organic Law of the Superintendency of Banking and Insurance, Law No. 26702 and its amending regulations, hereinafter the General Law, it is the responsibility of the Superintendency of Banking, Insurance and Private Pension Fund Administrators to protect and defend the interests of the public in the financial and insurance systems, safeguarding the economic and financial soundness of the natural and legal persons that make up said systems;

That, Article 311º of the General Law establishes that insurance and/or reinsurance companies must at all times back the total of their obligations associated with the insurance business with assets that comply with the provisions issued by the Superintendency;

That, by SBS Resolution No. 332-2023, the Regulation on Credit, Surety and Bond Insurance issued by Insurance Companies was approved, and it was established that liabilities for counter-guarantees in cash or deposits received by insurance companies in backing the bonds or surety policies they issue are considered part of the technical obligations as of 1 January 2025;

That, the Regulation on the Investments of Insurance Companies, approved by SBS Resolution No. 1041-2016 and its amending regulations, establishes the process for backing technical obligations and the eligibility requirements that investments backing the technical obligations of these companies must meet:

That, in Annexes No. ES-3 "Technical Obligations" and ES-3A "Backing of Technical Obligations" of the Regulation on Investments of Insurance Companies, information is recorded, among other aspects, on the value of the components that make up the technical obligations, in accordance with Articles 22° and 23° of the Regulation on the Investments of Insurance Companies;

That, it is necessary to update Annexes ES-3 and ES-3A in order to incorporate, as part of the technical obligations, the component of liabilities for counter-guarantees that companies receive in cash or through account deposits;

That, likewise, modifications and clarifications are required in the Investment Regulation as a consequence of the incorporation of this component;

That, the General Law indicates in its Article 298° the minimum capital requirements that insurance and/or reinsurance companies must meet;

That, the Regulation on Capital Requirements of Insurance and Reinsurance Companies, approved by SBS Resolution No. 1124-2006 and amending regulations, establishes, among other aspects, the calculation methodology for the solvency margin requirement that insurance and reinsurance companies must follow;

That, Annex ES-7C "Solvency Margin Information", which is part of said Regulation, allows for the collection of information, among other aspects, on the solvency margin of disability, survival and funeral expense insurance (SISCO);

That, it is necessary to update Annex ES-7C in order to record the information of the SISCO VII portfolio that enters run off as of 1 January 2025;

Having obtained the approval of the Attached
Superintendencies of Insurance, Economic Studies and Legal Advice; and,

In exercise of the powers conferred by items 7, 9 and 13 of Article 349 of the General Law and the provisions of the Thirty-Second Final and Complementary Provision of the General Law;

RESOLVES:

Article First. – Incorporate the field: "Liabilities for Counter-guarantees received in cash or account deposits" within the formats of Annexes ES-3 "Technical Obligations" and ES-3A "Backing of Technical Obligations" of the Regulation on Investments of Insurance Companies, and incorporate a methodological note within Annex ES-3A, both approved by Resolution No. 1041-2016 and its amendments, in accordance with Annex No. 1 which is part of this Resolution.

Article Second. - Amend the Regulation on Investments of Insurance Companies, approved by SBS Resolution No. 1041-2016 and its amending regulations, as follows:

1. Amend subsection d) of Article 23°, in accordance with the following text:

"Backing process of technical obligations Article 23°.- The backing process of technical obligations is subject to the following general provisions:

(…)

d) Eligible investments are allocated in the following order:

d.1) Technical reserves.

d.2) Liabilities for counter-guarantees received in cash or account deposits.

d.3) Deferred premiums and unearned premium.

d.4) Solvency capital.

d.5) Guarantee fund. d.6) Effective capital allocated to cover credit risk. d.7) Additional effective capital for the economic cycle."

2. Amend the third paragraph of Article 37°, to incorporate a clarification in accordance with the following text:

Limits on foreign investment and economic activity Article 37°.- (…)

In the case of financial sector entities, the limit indicated in the preceding paragraph is raised to 50% of the company's technical obligations. The calculation of this limit must not consider investments corresponding to the asset class "Cash and Deposits", established in subsection a) of Article 35°."

Article Third. - Amend the formats of Tables No. 8.1 and No. 10 of Annex ES-7C "Solvency Margin Information" of the Regulation on Capital Requirements of Insurance and Reinsurance Companies, approved by Resolution No. 1124-2006 and its amendments, in accordance with Annex No. 2 which is part of this Resolution.

Article Fourth. - This Resolution shall enter into force as of 1 January 2025.

SERGIO JAVIER ESPINOSA CHIROQUE
Superintendent of Banking, Insurance and AFP