On April 9, 2025, the Board of Financial Policy and Regulation, through Resolution No. JPRF-S-2025-0146, in Book III of the Codification of Monetary, Financial, Securities, and Insurance Resolutions, under Title III, “On the Supervision, Control, and Information of the Private Insurance System,” replaced Chapter VII regarding the “Regulation on Segments and Maximum Mandatory Investment Percentages,” establishing the following:

MAIN AMENDMENTS:

• National Insurance and Reinsurance Companies must make their investments ensuring there is a technical match between reserves and an appropriate concentration of the investment portfolio.
• The purpose of the technical match is to align technical reserves with the assets backing them, meaning that investment cash flows must correspond in term, amount, and liquidity with the estimated future obligations arising from issued policies. This evaluation must be carried out monthly.
• The maximum investment percentages for each financial instrument have been modified.
• Specific policies and processes for risk management and administration that must be followed have been established.
• Real estate investments must be appraised every two years, must be covered against catastrophic risks, and the investment limit is set at 50% of the total equity registered as of December 31 of the previous year.

The First to Fifth Transitional Provisions were replaced with the following:

FIRST: The SCVS must define the methodology for applying the technical match within six months from April 9, 2025.

SECOND: Once the technical match methodology is defined, companies will have six months to implement and adapt to it.

THIRD: Within six months from April 9, 2025, the SCVS must adapt the investment control report.

FOURTH: Provisions regarding the technical match, the new maximum investment percentages, the new management and risk management policies, and real estate investments will become effective once the implementation and adaptation period referred to in the Second Transitional Provision is completed.

For additional information, please contact:

Dra. Mariana Villagómez: mvillagomez@bustamantefabara.com