AMENDMENT TO THE REGULATIONS GOVERNING FOREIGN INVESTMENTS BY INSURANCE COMPANIES

07/01/2012

---

In response to the revised provisions of Article 146-4 of the Insurance Act, the Financial Supervisory Commission amended Articles 7, 12 and 15-2 of the "Regulations Governing Foreign Investments by Insurance Companies" on 11 May 2012. Main amendments:

l

Raise the ceiling on the total amount of investment by insurance companies in corporate bonds, convertible and warrant bonds issued or guaranteed by companies with a credit rating equivalent to BBB+ by foreign credit rating agencies to 60% of owners' equity;

l

Lower the financial threshold for investments listed in Paragraph 1 of Article 12; and

l

Announce rules for insurance companies, which have obtained regulatory approval to operate non-investment-linked life insurance business collected and paid in foreign currency and have met the required conditions, to file an application with the competent authority for the amount to be excluded from the calculation of the limit on the total amount of foreign investment under the first part of Paragraph 2, Article 146-4 of the Insurance Act.