Dossier for Splitting a Reinsurance Enterprise Under the Law

Short answer: A split of a reinsurance enterprise must be approved in writing by the Ministry of Finance before implementation. The application dossier includes: the application letter, the split plan (division of assets, rights, and obligations), financial statements, a list of creditors, and a plan to protect the interests of insurance buyers. Legal basis: the Law on Insurance Business 2022 and Decree 46/2023/ND-CP.

Legal basis

• Law on Insurance Business 2022 (No. 08/2022/QH15, effective from 01/01/2023);
• Decree 46/2023/ND-CP providing detailed guidance.

Conditions for splitting a reinsurance enterprise

• A split plan approved by the General Meeting of Shareholders/Members’ Council;
• Protection of the interests of insurance buyers and the insured — their interests must not be affected;
• The enterprises formed after the split meet capital and governance conditions under the Law on Insurance Business;
• Approval by the Ministry of Finance before implementation.

Dossier for approval

1. Application letter requesting approval of the split;
2. Split plan: division of assets, rights and obligations, insurance/reinsurance contracts;
3. Resolution of the General Meeting of Shareholders/Members’ Council on the split;
4. The most recent audited financial statements;
5. List of creditors and a debt settlement plan;
6. Plan to protect the interests of insurance buyers and the insured;
7. Draft Charters of the enterprises formed after the split.

Implementation procedures

1. Submit the dossier to the Ministry of Finance;
2. The Ministry of Finance appraises it and may request supplementation or explanations;
3. Issues the written approval of the split;
4. Carries out the split and registers the newly formed enterprises;
5. Discloses information and notifies insurance buyers and creditors.

If you need to determine the right approach for your specific situation, you should discuss it with a lawyer in advance for a review of your documents and advice on the course of action.

For quick advice, you can contact a lawyer at 0966.475.966.

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