Minimum Paid-Up Capital for New Joint Ventures and for New Insurance and Reinsurance Companies
DOF Order No. 027-92 establishes minimum paid-up capital requirements for new insurance and reinsurance companies in the Philippines, as well as for joint ventures involving foreign stakeholders. Joint venture companies must maintain a minimum paid-up capital of 75 million pesos and a contributed surplus fund of 25 million pesos. New insurance companies, whether life or non-life, also require the same capital structure. Composite companies must have a total paid-up capital of 150 million pesos, while new reinsurance companies need at least 120 million pesos in paid-up capital. Additionally, 25% of the required paid-up capital must be invested in specified securities and deposited with the Insurance Commission.
Quick Answers
- What is Minimum Paid-Up Capital for New Joint Ventures and for New Insurance and Reinsurance Companies about?
- DOF Order No. 027-92 establishes minimum paid-up capital requirements for new insurance and reinsurance companies in the Philippines, as well as for joint ventures involving foreign stakeholders. Joint venture companies must maintain a minimum paid-up capital of 75 million pesos and a contributed surplus fund of 25 million pesos. New insurance companies, whether life or non-life, also require the same capital structure. Composite companies must have a total paid-up capital of 150 million pesos, while new reinsurance companies need at least 120 million pesos in paid-up capital. Additionally, 25% of the required paid-up capital must be invested in specified securities and deposited with the Insurance Commission.
- What type of law is DOF Order No. 027-92?
- Minimum Paid-Up Capital for New Joint Ventures and for New Insurance and Reinsurance Companies (DOF Order No. 027-92) is a Philippine Other Rules and Procedures enacted by the Congress of the Philippines.
- When was Minimum Paid-Up Capital for New Joint Ventures and for New Insurance and Reinsurance Companies enacted?
- Minimum Paid-Up Capital for New Joint Ventures and for New Insurance and Reinsurance Companies (DOF Order No. 027-92) was enacted on Mar 17, 1992.
- What is the citation for Minimum Paid-Up Capital for New Joint Ventures and for New Insurance and Reinsurance Companies?
- Minimum Paid-Up Capital for New Joint Ventures and for New Insurance and Reinsurance Companies, DOF Order No. 027-92, Mar 17, 1992 (Philippines)
Law Information
- Reference Number
- DOF Order No. 027-92
- Date Enacted
- Category
- Other Rules and Procedures
- Subcategory
- Department of Finance
- Jurisdiction
- Philippines
- Enacting Body
- Congress of the Philippines
Full Law Text
March 17, 1992
DOF ORDER NO. 027-92
| TO | : | All Insurance Companies and Professional Reinsurers doing Business in the Philippines or those Applying for a License as such |
| SUBJECT | : | Minimum Paid-Up Capital for New Joint Ventures and for New Insurance and Reinsurance Companies |
Pursuant to the authority vested in me by the provisions of Section 188 of the Insurance Code in relation to those of Sections 184, 280 and 281 thereof, and upon the recommendation of the Insurance Commissioner, the following requirements, rules and regulations are hereby promulgated:
1. Joint Venture
a. An existing domestic life or non-life insurance company or professional reinsurance company or one which may be organized hereafter is allowed to do business in the Philippines with non-Philippine national stockholders provided the equity of the latter does not exceed forty per cent (40%) of the outstanding capital of the company;
b. A joint venture insurance company between an existing life or non-life insurance company or professional reinsurance company and a non-Philippine national stockholder formed after the effectivity of this Order shall be possessed of a paid-up capital stock equal to at least seventy five million pesos (P75,000,000.00) and a contributed surplus fund of at least twenty five million pesos (P25,000,000.00);
c. A new joint venture life or non-life insurance company or professional reinsurance company (other than an existing insurance or reinsurance company and a non-Philippine national stockholder) which may hereafter be organized shall be possessed of a paid-up capital stock equal to at least seventy five million pesos (P75,000,000.00) and a contributed surplus fund of at least twenty five million pesos.
2. New Insurance Company
A new insurance company either life or non-life which may hereafter be organized shall likewise be possessed of a paid-up capital equal to at least seventy five million pesos (P75,000,000.00) and a contributed surplus fund of at least twenty five million pesos (P25,000,000.00);
3. New Composite Company
A new composite company hereinafter organized shall be possessed of a paid-up capital stock equal to at least one hundred fifty million pesos (P150,000,000.00), seventy five million pesos (P75,000,000.00) of which shall pertain to the non-life account and the other seventy five million pesos (P75,000,000.00) to the life account, and a contributed surplus fund of at least fifty million pesos (P50,000,000.00), twenty five million of which shall pertain to the non-life account and the other half to the life account; aisadc
4. New Reinsurance Company
A new reinsurance company which may hereafter be organized shall be possessed of a paid-up capital stock equal to at least one hundred twenty million pesos (P120,000,000.00) and a contributed surplus fund of at least thirty million pesos (P30,000,000.00);
5. Investment of the Paid-up Capital Required
A domestic insurance or reinsurance company either new or joint venture shall invest to the extent of an amount equal in value to twenty-five per cent (25%) of the herein required paid-up capital in accordance with and as specified under the provisions of Section 203 of the Insurance Code and Section 281 thereof, with respect to reinsurance company, and have the securities deposited with the Insurance Commission.
This Order shall take effect immediately.
(SGD.) JESUS P. ESTANISLAOSecretaryDepartment of Finance
Recommending Approval:
(SGD.) ADELITA A. VERGEL DE DIOSCommissioner
Cite This Law
Minimum Paid-Up Capital for New Joint Ventures and for New Insurance and Reinsurance Companies, DOF Order No. 027-92, Mar 17, 1992 (Philippines)
Minimum Paid-Up Capital for New Joint Ventures and for New Insurance and Reinsurance Companies, DOF Order No. 027-92 (Phil. 1992)
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