Are reinsurers in Vietnam that have been penalized for administrative violations in the insurance business field eligible for outward investment?
- What is the minimum charter capital of reinsurers in Vietnam?
- Vietnam: What is the condition of time gaining profits consecutively for reinsurers to be eligible for outward investment?
- Are reinsurers in Vietnam that have been penalized for administrative violations in the insurance business field eligible for outward investment?
What is the minimum charter capital of reinsurers in Vietnam?
The minimum charter capital of reinsurers is specified in Clause 4, Article 35 of Decree 46/2023/ND-CP as follows:
Minimum charter capital
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3. Minimum charter capital of health insurers: VND 400 billion.
4. Minimum charter capital of reinsurers:
a) Reinsurance business, non-life reinsurance, or both non-life reinsurance and health reinsurance: VND 500 billion;
b) Reinsurance business, life reinsurance, or both life reinsurance and health reinsurance: VND 900 billion;
c) Reinsurance business, all life reinsurance, non-life insurance, and health reinsurance: VND 1,400 billion.
5. If insurers and reinsurers which are established, organized, and operating before the effective date of this Decree have a charter capital lower than the minimum charter capital specified in this Article, they must, before January 1, 2028, top up their charter capital to the required minimum level and put down a deposit as prescribed.
Thus, the minimum charter capital of reinsurers is specifically regulated as follows:
(1) Reinsurance business, non-life reinsurance, or both non-life reinsurance and health reinsurance: VND 500 billion ;
(2) Reinsurance business, life reinsurance, or both life reinsurance and health reinsurance: VND 900 billion;
(3) Reinsurance business, all life reinsurance, non-life insurance, and health reinsurance: VND 1,400 billion.
Are reinsurers in Vietnam that have been penalized for administrative violations in the insurance business field eligible for outward investment? (Image from the Internet)
Vietnam: What is the condition of time gaining profits consecutively for reinsurers to be eligible for outward investment?
Pursuant to the provisions of Article 47 of Decree 46/2023/ND-CP as follows:
Conditions for outward investment
1. Being eligible for outward investment according to the investment law and the law on foreign exchange management.
2. Insurers or reinsurers that submits an application for outward investment must satisfy the following requirements:
a) They have gained profits for 3 consecutive years prior to the year of outward investment as shown in the financial statements which have been independently audited by an independent audit organization with an unqualified opinion;
b) The owner's equity, when making the latest financial statement, meets the requirements in Article 37 of this Decree;
c) They satisfy the applicable requirements pertaining to solvency margin at the time of submitting the latest report;
d) They must not have been penalized for administrative violations in the insurance business field with a total amount of at least VND 400 million within 12 months of submitting the application.
3. They have fully fulfilled their current obligations to the State.
4. The have an internal process, internal control and audit, identification and management of risks related to outward investment activities.
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Thus, according to regulations, insurers or reinsurers that submits an application for outward investment must have gained profits for 3 consecutive years prior to the year of outward investment as shown in the financial statements which have been independently audited by an independent audit organization with an unqualified opinion.
Are reinsurers in Vietnam that have been penalized for administrative violations in the insurance business field eligible for outward investment?
Conditions for investing abroad are specified in Article 47 of Decree 46/2023/ND-CP as follows:
Conditions for outward investment
1. Being eligible for outward investment according to the investment law and the law on foreign exchange management.
2. Insurers or reinsurers that submits an application for outward investment must satisfy the following requirements:
a) They have gained profits for 3 consecutive years prior to the year of outward investment as shown in the financial statements which have been independently audited by an independent audit organization with an unqualified opinion;
b) The owner's equity, when making the latest financial statement, meets the requirements in Article 37 of this Decree;
c) They satisfy the applicable requirements pertaining to solvency margin at the time of submitting the latest report;
d) They must not have been penalized for administrative violations in the insurance business field with a total amount of at least VND 400 million within 12 months of submitting the application.
3. They have fully fulfilled their current obligations to the State.
4. The have an internal process, internal control and audit, identification and management of risks related to outward investment activities.
5. In addition to Clauses 1, 2, 3 and 4 of this Article, outward portfolio investments by insurers and reinsurers shall comply with the Government's regulations on outward portfolio investment.
According to regulations, insurers or reinsurers that submits an application for outward investment not have been penalized for administrative violations in the insurance business field with a total amount of at least VND 400 million within 12 months of submitting the application.
Thus, reinsurers that have been penalized for administrative violations in the insurance business field but do not fall into the above cases still be eligible for outward investment.
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