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中文A reinsurance enterprise with charter capital below the minimum must complete supplementing its charter capital and deposit before 01/01/2028 (Clause 5, Article 35 of Decree 46/2023/ND-CP). Current minimum charter capital levels: VND 500 billion (non-life/health reinsurance), VND 900 billion (life/health reinsurance), VND 1,400 billion (all three lines).
1. Minimum charter capital of a reinsurance enterprise
Clause 4, Article 35 of Decree 46/2023/ND-CP:
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- (1) Conducting reinsurance business or accepting reinsurance cessions in non-life insurance, or both non-life and health reinsurance: VND 500 billion;
- (2) Conducting reinsurance business or accepting reinsurance cessions in life insurance, or both life and health reinsurance: VND 900 billion;
- (3) Conducting reinsurance business or accepting reinsurance cessions in all 03 lines of life, non-life, and health reinsurance: VND 1,400 billion.
2. Deadline for capital supplementation for previously established enterprises
Clause 5, Article 35 of Decree 46/2023/ND-CP:
“Insurance enterprises and reinsurance enterprises established, organized, and operating before the effective date of this Decree with charter capital lower than the minimum charter capital prescribed in this Article shall, before 01 January 2028, complete supplementing the charter capital and making the deposit as prescribed.”
Accordingly, an operating reinsurance enterprise with charter capital below the minimum must increase capital (and supplement the deposit) to reach the prescribed level, with the final deadline of 01/01/2028. The capital increase must comply with shareholder structure rules (individual shareholders not exceeding 10% of charter capital) and lawful capital contribution sources.
3. What if the capital is not supplemented in time?
An enterprise failing to complete charter capital supplementation on time may be subject to administrative penalties in the insurance business sector and face management measures by the Ministry of Finance, including restricting operations or considering license revocation in serious cases. Enterprises should proactively develop a capital increase roadmap, submit the plan to the General Meeting of Shareholders for approval, and carry out approval procedures with the Ministry of Finance early.
Notes on applying current legal provisions
The 01/01/2028 deadline is approaching; reinsurance enterprises not yet meeting the minimum capital should urgently implement their capital increase plans. Capital increases of insurance and reinsurance enterprises must be approved by the Ministry of Finance. You may contact an ANT Legal lawyer at 0966.475.966 for review and advice on a suitable capital increase plan.
How can ANT Legal help?
ANT Legal advises on charter capital increase plans, reviews shareholder conditions and capital contribution sources, prepares dossiers for approval requests to the Ministry of Finance, and advises on insurance business law compliance.
For quick advice, you may contact a lawyer at 0966.475.966.
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- Life insurance when the insured dies due to a third party
