{"kind":"expression","expression":{"expr_id":"94","doc_id":"94","label":"2026 Revision","is_as_enacted":"f","commenced_on":null,"superseded_on":null,"valid_from":null,"valid_to":null,"is_current":"t","incorporating":null,"akn_expr_iri":"\/akn\/ky\/act\/sl\/2015\/3\/eng@2026-01-01","akn_envelope":"{\"_canary\": {\"iri\": {\"work\": \"\/akn\/ky\/act\/sl\/2015\/3\", \"expression\": \"\/akn\/ky\/act\/sl\/2015\/3\/eng@2026-01-01\", \"manifestation\": \"\/akn\/ky\/act\/sl\/2015\/3\/eng@2026-01-01.pdf\"}, \"pdf\": {\"md5\": \"35d233e0dd37564c1b84d9e7afcfbbc0\", \"path\": \"\/Users\/q\/kyleg-data\/working\/SUBORDINATE\/2015\/2015-0003\/2015-0003_2026 Revision.pdf\", \"pages\": 28, \"filename\": \"2015-0003_2026 Revision.pdf\"}, \"errors\": [], \"extraction\": {\"model\": null, \"stats\": {\"word_count\": 4521, \"paragraph_count\": 12, \"text_char_count\": 32507}, \"usage\": null, \"method\": \"pymupdf-text\", \"version\": \"kyleg-akn-1.0\", \"extracted_at\": \"2026-06-22\"}, \"classification\": \"text_layer\", \"validation_flags\": [], \"docai_processor_id\": null}, \"akomaNtoso\": {\"act\": {\"body\": [{\"eId\": \"sec_n1\", \"num\": null, \"text\": \"Insurance Act [Law 32 of 2010] (as amended) INSURANCE (PORTFOLIO INSURANCE COMPANIES) REGULATIONS (2026 Revision) PUBLISHING DETAILS Revised under the authority of the Law Revision Act (2020 Revision). The Insurance (Portfolio Insurance Companies) Regulations, 2015 made the 13th January, 2015, as amended by the Citation of Acts of Parliament Act, 2020, and consolidated with \u2014 Insurance (Portfolio Insurance Companies) (Amendment) Regulations, 2024 made 17th December, 2024. Consolidated and revised this 31st day of December, 2025. Revision) Arrangement of Regulations Insurance Act [Law 32 of 2010] (as amended) INSURANCE (PORTFOLIO INSURANCE COMPANIES) REGULATIONS (2026 Revision) Arrangement of Regulations Regulation 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_11\", \"num\": \"11.\", \"text\": \"SCHEDULE 1 APPLICATION AND ANNUAL DECLARATION FORMS SCHEDULE 2 CAPITAL REQUIREMENT Arrangement of Regulations Revision) SCHEDULE 3 ANNUAL RETURN FORMS SCHEDULE 4 CERTIFICATE OF REGISTRATION ENDNOTES Revision) Regulation 1 Insurance Act [Law 32 of 2010] (as amended) INSURANCE (PORTFOLIO INSURANCE COMPANIES) REGULATIONS (2026 Revision)\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_1\", \"num\": \"1.\", \"text\": \"Citation 1. These Regulations may be cited as the Insurance (Portfolio Insurance Companies) Regulations (2026 Revision).\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_2\", \"num\": \"2.\", \"text\": \"Definitions 2. (1) In these Regulations \u2014 \u201cadmissible assets\u201d includes class 1 assets, class 2 assets, class 3 assets, class 4 assets, class 5 assets, class 6 assets, class 7 assets and class 8 assets unless otherwise approved by the Authority; \u201cclass 1 assets\u201d means \u2014 (a) cash and cash equivalents including time deposits and money market funds rated AA or higher; (b) investment grade obligations of government or central banks rated AA or above; (c) incoming irrevocable letters of credit where acceptable by the Authority; (d) loans or notes receivable where supported by irrevocable letters of credit acceptable by the Authority; (e) income tax receivables; or Regulation 2 Revision) (f) instalment premiums not yet due; \u201cclass 2 assets\u201d means \u2014 (a) high investment grade bonds or paper rated AA or higher (or equivalent); (b) exchange rate derivative contracts, designated and accounted for as hedging, with a maturity of one year or less and interest rate derivative contracts, designated and accounted for hedging, regardless of the maturity date; (c) receivables from insurers or highly rated reinsurers; (d) unearned premiums recoverable from insurers or highly rated reinsurers; (e) unpaid claims and adjustment expenses recoverable from insurers or highly rated reinsurers outstanding for less than one year; or (f) gold and other commodities acceptable to the Authority; \u201cclass 3 assets\u201d means \u2014 (a) bonds, and debentures, including commercial paper, rated investment or bank grade that mature or are redeemable in less than one year; (b) accounts receivable outstanding ninety days or less from agents, brokers, subsidiaries and policyholders, including installment premiums and other receivables; (c) investment income due and accrued; or (d) unpaid claims and adjustment expenses recoverable from licensed insurers or highly rated reinsurers, outstanding for over twelve months; \u201cclass 4 assets\u201d means \u2014 (a) term deposits, bonds, and debentures, including commercial paper, rated investment or bank grade, that mature or are redeemable in one year or more; (b) investment grade bonds or paper rated A or equivalent; or (c) receivables and recoverables for medium rated reinsurers outstanding for less than twelve months; \u201cclass 5 assets\u201d means \u2014 (a) investment grade bonds or paper rated BBB; (b) investment grade obligations of government or central banks rated BBB; (c) related party loans not yet called for; or (d) receivables and recoverables for medium-rated reinsurers outstanding for twelve months or more; \u201cclass 6 assets\u201d means \u2014 (a) mortgage-backed securities rated A or higher; (b) common shares; Revision) Regulation 2 (c) exchange traded funds; (d) exchange traded derivatives; (e) non-cumulative preference shares; (f) investments in collective investment schemes, unit trusts, hedge funds, mutual funds or other similar assets; or (g) real estate; \u201cclass 7 assets\u201d means \u2014 (a) accounts receivable outstanding over ninety days from agents, brokers, subsidiaries, associates and policyholders, including installment premiums and other receivables; (b) other recoverables including salvage and subrogation on unpaid claims; (c) residential mortgages; (d) cumulative preferred shares; (e) unlisted equity securities; (f) private equity funds; (g) limited partnerships; (h) mortgage-backed securities rated lower than A; or (i) commercial mortgages; \u201cclass 8 assets\u201d means \u2014 (a) deferred policy acquisition expenses; (b) commissions, net of an adjustment for unearned commissions (net value) and if the net value is negative, report zero; (c) other intangible and non-financial assets up to a limit of one per cent of total assets and for this purpose any excess over the limit is included in the amount deducted from capital available; (d) other loans; or (e) term deposits, bonds and debentures, including commercial paper, rated not-investment grade, that mature or are redeemable in one year or more; \u201cfiling date\u201d means the date on which a portfolio insurance company is required to submit the annual return required in the principal Act; \u201cgross premium written\u201d means total written premiums prior to any deductions; \u201chighly rated reinsurer\u201d means reinsurance in which the counterparty is rated A- or higher or equivalent in the latest rating of a recognized rating agency or as approved by the Authority; Regulation 3 Revision) \u201cmanager\u201d means a person, other than the approved insurance manager, who handles, controls or directs the business operations of a portfolio insurance company; \u201cmargin of solvency\u201d means the excess of the value of prescribed assets over prescribed liabilities; \u201cMCR\u201d means minimum capital requirement; \u201cminimum capital requirement\u201d means the minimum capital, as set out in these Regulations, that a portfolio insurance company must maintain in order to operate in accordance with the principal Act; \u201cnet earned premium\u201d means net written premium applicable to the expired part of the policy; \u201cnet written premium\u201d means gross premium written less the reinsurance premium ceded; \u201cPCR\u201d means prescribed capital requirement; \u201cPIC\u201d means portfolio insurance company; \u201cprescribed capital requirement\u201d means the total risk based capital, as set out in these Regulations, that a portfolio insurance company must maintain in order to operate in accordance with the principal Act; \u201cprescribed management letter\u201d means written correspondence from the auditor with respect to any material audit related matters which the auditor should bring to the attention of their client; \u201cprincipal Act\u201d means the Insurance Act, 2010 [Law 32 of 2010] (as amended); and \u201creinsurance premium ceded\u201d means the premium ceded to reinsurers. (2) For the purposes of Schedules 2 and 3 of these Regulations, \u201crelated PIC business\u201d means business which will originate from the portfolio insurance company\u2019s members or the members of any group with which it is related through common ownership or a common risk management plan or as determined by the Authority.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_3\", \"num\": \"3.\", \"text\": \"Application for registration 3. An application for registration made under section 28B of the principal Act, shall be in the form prescribed in Form 1 of Schedule 1.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_4\", \"num\": \"4.\", \"text\": \"Repealed 4. Repealed by regulation 3 of the Insurance (Portfolio Insurance Companies) (Amendment) Regulations, 2026 [SL 69 of 2024]. Revision) Regulation 5\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_5\", \"num\": \"5.\", \"text\": \"Determining the margin of solvency 5. For the purposes of determining the margin of solvency to be maintained by a portfolio insurance company under section 28D(e) of the principal Act \u2014 (a) assets are prescribed as admissible assets; and (b) liabilities are prescribed as liabilities which include \u2014 (i) minority interests, calculated and valued on the basis required by the accounting standards in accordance with which the portfolio insurance company\u2019s financial statements are prepared; and (ii) all liabilities arising out of its contracts of insurance.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_6\", \"num\": \"6.\", \"text\": \"Minimum capital and prescribed capital requirement 6. (1) Subject to regulations 6(3) and (4), the minimum capital requirement and the prescribed capital requirement for portfolio insurance companies are as set out in Part 1 of Schedule 2. (2) For the purposes of section 28D(e) of the principal Act, the minimum margin of solvency for each portfolio insurance company is stipulated as the prescribed capital requirement set out in Part 1 of Schedule 2. (3) As an alternative to the prescribed capital requirement in Form 2 of Schedule 2, the portfolio insurance company may, upon the review and approval of the Authority, use its own internal capital model and for the purposes of this regulation, this internal capital model shall be deemed to be the prescribed capital requirement. (4) Notwithstanding the minimum capital requirement and the prescribed capital requirement in Part 1 of Schedule 2, the Authority may, upon request by a portfolio insurance company, review and set a modified minimum capital requirement or a modified prescribed capital requirement in respect of any portfolio insurance company having regard to such facts and circumstances as the Authority may consider appropriate.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_7\", \"num\": \"7.\", \"text\": \"Where capital falls below requirement 7. (1) Where the capital of a portfolio insurance company falls below the prescribed capital requirement but is greater than the minimum capital requirement, the portfolio insurance company shall meet with the Authority and present a remedial action plan to the Authority. (2) Where the capital of a portfolio insurance company falls below the minimum capital requirement, the Authority may take any regulatory action.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_8\", \"num\": \"8.\", \"text\": \"Prescribed capital requirement 8. At each filing date, the portfolio insurance company shall calculate and record its prescribed capital requirement using the form set out in Part 2. Regulation 9 Revision)\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_9\", \"num\": \"9.\", \"text\": \"Required documents 9. (1) Every portfolio insurance company, except as provided by paragraph (2) and as otherwise provided by the Authority in writing, is required to submit within six months of the end of its financial year the following in respect of the company\u2019s business \u2014 (a) audited financial statements prepared in accordance section 28E(1)(a) of the principal Act and the respective instructions in the Annual Return Form in Schedule 3; (b) an annual declaration as set out in Form 2 of Schedule 1; (c) an actuarial valuation of its assets and liabilities including loss and loss expense provisions, certified by an actuary approved by the Authority; (d) certificate of solvency prepared by a person approved by the Authority; and (e) such other information as the Authority may request in accordance with section 28E. (2) A portfolio insurance company that \u2014 (a) does not conduct long-term business; or (b) conducts insurance business of the type described in section 4(3)(c) of the principal Act, is not required to make submissions under paragraphs (1)(c) or (1)(d).\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_10\", \"num\": \"10.\", \"text\": \"Certificate of registration Schedule 4 10. The certificate of registration shall be in the form set out in Schedule 4 and shall be printed on the watermarked paper approved by the Authority. 11. Forms 11. The forms set out in the Schedules are prescribed for the respective purposes provided for in the principal Act and as specified in the respective headings to each form. Revision) SCHEDULE 1 SCHEDULE 1 (regulations 3 and 9) APPLICATION AND ANNUAL DECLARATION FORMS FORM 1 - APPLICATION FOR PORTFOLIO INSURANCE COMPANY REGISTRATION (Section 28B(1) of the principal Act Please complete all sections as fully as possible, give reasons, for non- completion, if any, and attach appendices where appropriate. PART A General Information A1 Name of the exempted company which name shall include the letters \u201cPIC\u201d or \u201cP.I.C.\u201d or words \u201cPortfolio Insurance Company\u201d A2 Attach evidence of proper incorporation of the applicant or in the case of a portfolio insurance company that is not yet incorporated, the proposed incorporation documentation A3 Name of the controlling relevant insurer A4 Licence number relevant insurer of the controlling A5 Attach the written consent of the controlling relevant insurer A6 Business proposed to be transacted Long-term General A7 Date on which applicant intends to commence carrying on insurance business SCHEDULE 1 Revision) PART B Key Personnel B1 Names of the directors, managers and officers of the exempted company referred to in A1 B2 For each director, manager and officer attach  \u2014 (a) personal questionnaire; (b) three references acceptable to the Authority, comprising two character references and one reference verifying good financial standing; (c) police or other certificate satisfactory to the Authority confirming that the person in question has not been convicted of a serious crime or any offence involving dishonesty; (d) photo identification (passport or driver\u2019s licence) and proof of home address PART C Business to be transacted Attach a business plan, with financial projections over a three year period, for the insurance business to be transacted including the following \u2014 C1 Rationale for establishing portfolio insurance company C2 Classes of insurance to be written including levels of retention, cessions\/limits and programme aggregates, if applicable, by line of business C3 Details of any proposed arrangements whereby the portfolio insurance company will reinsure admitted insurance carriers outside the Cayman Islands Revision) SCHEDULE 1 C4 Reserving philosophy with evidence of loss history where available C5 Financial projections covering at least three years, by class of business, identifying assumptions (e.g. confidence levels, if applicable) to include \u2014 (a) income statement; (b) balance sheet; and (c) statement of solvency at each yearend C6 Names of any external providers, for example, Third Party Administrators C7 Investment policy C8 Dividend policy Where section 28R(1) of the principal Act applies, file the relevant document as required thereunder. Declaration 1. Have any of the parties connected with this application ever unsuccessfully applied, either individually or in conjunction with others, for authority to transact insurance business in this or any other jurisdiction? \u2751 Yes \u2751 No (Tick the appropriate box.). If yes, please give details \u2013 ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ 2. Have any of the parties connected with this application ever applied and thereafter withdrawn an application for authority to transact insurance business in this or any other jurisdiction? \u2751 Yes \u2751 No (Tick the appropriate box.). If yes, please explain \u2013 ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ I understand the obligation to notify or seek prior approval after submission of this application for material changes to matters referenced herein. SCHEDULE 1 Revision) An application is hereby made for the registration of the portfolio insurance company specified above and it is certified that all particulars contained in this application and in the documents accompanying it or otherwise furnished in support thereof are true and correct at the date of application. Dated this day of _ ____________________________________________________________ (Name of applicant) by its Director\/ Secretary\/Person who is duly authorised by the directors of the applicant (Delete options that are not applicable) Signed: WITNESS: Name: Occupation: Address: Please submit Form with non-refundable application fee to the Cayman Islands Monetary Authority. Revision) SCHEDULE 1 FORM 2 - ANNUAL DECLARATION FORM (Section 28B(1) of the principal Act INSTRUCTIONS: 1. This declaration shall be made within six (6) months of the end of each financial year during the continuation of the portfolio insurance company\u2019s registration. 2. Please complete all sections below as fully as possible We,_____________________________________________on behalf of the board of (Print or type) ____________________________________________________________ (Name of Portfolio Insurance Company) of____________________________________________________________ (Name of Controlling Relevant Insurer) situated at___________________________________________________________ and registered under the principal Act (hereinafter called \\\"the PIC\\\") declare as follows - 1. (Select one of the options below) \uf072 There has been no change to the name of the PIC since it was first registered\/since the date of its last annual declaration and its full corporate name is as set out above; or \uf072 There was a change to the name of the PIC on ________________________, 20____  and its full corporate name is now the name set out above. 2. (Select one of the options below) \uf072 There has been no change in the Controlling Relevant Insurer of the PIC since it was first registered\/ since the date of its last annual declaration and its Controlling Relevant Insurer is set out above; or \uf072 The Controlling Relevant Insurer of the PIC changed on ________________________, 20____  to the Controlling Relevant Insurer set out above. SCHEDULE 1 Revision) 3. The current directors of the PIC are as follows \u2013 4. The current officers of the PIC are as follows \u2013 5. The current managers of the PIC are as follows - Signed at Date For (Name of the PIC) Authorised Signature (Name of signatory) Revision) SCHEDULE 2 SCHEDULE 2 (regulations 6 and 8) CAPITAL REQUIREMENT PART 1 MINIMUM CAPITAL REQUIREMENT AND PRESCRIBED CAPITAL REQUIREMENT Percent of related PIC business written by portfolio insurance company Minimum Capital Requirement (\u201cMCR\u201d) Prescribed Capital Requirement (\u201cPCR\u201d) At least 95% of the net premiums written will originate from related PIC business General: US$100,000 Long-term: US$200,000 General: PCR = MCR Long-term: PCR = MCR Over 50% of the net premiums written will originate from related PIC business General: US$150,000 Long-term: US$300,000 General: \u2022 10% of net earned premium (\u201cNEP\u201d) to first US$5,000,000 \u2022 5% of additional NEP up to US$20,000,000 \u2022 2.5% of additional NEP in excess of US$20,000,000 Long-term: PCR = MCR 50% or less of the net premiums written will originate from related PIC business, subject to annual NEP being less than US$ 20,000,000 General: US$200,000 Long-term: US$400,000 General: \u2022 15% of NEP to first US$5,000,000 \u2022 7.5% of additional NEP up to US$20,000,000 Long-term: PCR = MCR SCHEDULE 2 Revision) Percent of related PIC business written by portfolio insurance company Minimum Capital Requirement (\u201cMCR\u201d) Prescribed Capital Requirement (\u201cPCR\u201d) 50% or less of the net premiums written will originate from related PIC business, subject to annual NEP being equal to or greater than US$ 20,000,000 When the NEP is less than or equal to US$50,000,000 General: US$1,000,000 Long-term: US$2,000,000 When the NEP is greater than US$50,000,000 General: US$7,500,000 Long-term: C (premium) \u2022 15.0% of NEP to first US$50,000,000 \u2022 7.5% of additional NEP in excess of US$50,000,000 C (asset) \u2022 Class 1 assets: 0.0% \u2022 Class 2 assets: 0.5% \u2022 Class 3 assets: 2.0% \u2022 Class 4 assets: 4.0% \u2022 Class 5 assets: 5.0% \u2022 Class 6 assets: 10.0% \u2022 Class 7 assets: 15.0% \u2022 Class 8 assets: 35.0% Revision) SCHEDULE 2 US$7,500,000 C (reserve) \u2022 General insurance reserves: 10.0% of gross general insurance reserves \u2022 Long-term insurance reserves: 5.0% of gross long-term insurance reserves C (reinsurance) 5.0% of total ceded unearned premium reserve C (catastrophe) 20% of 1 in 100 year event; and 100% of a 1 in 10 year event Important: In the event that a portfolio insurance company has reinsurance recoveries related to assumed reserves, a reduction to the C (reserve) will be allowed up to 100% of any reinsurance recoveries if such recoveries are secured by letters of credit else a reduction of 95% for collateral approved by the Authority else a reduction of 90% if the recovery is from highly rated reinsurers else 50% for all other forms of reinsurance. In the event that a portfolio insurance company has ceded unearned premium reserves, SCHEDULE 2 Revision) a reduction to the (reinsurance) will be allowed up to 100% of any ceded unearned premium reserves if such recoveries are secured by letters of credit else a reduction of 95% for collateral approved by the Authority else a reduction of 90% if the recovery is from highly rated reinsurers else 50% for all other forms of reinsurance. In the event that a portfolio insurance company has ceded catastrophe risk, a reduction to the C (catastrophe) will be allowed up to 100% of any reinsurance recoveries if such recoveries are secured by letters of credit else a reduction of 95% for collateral approved by the Authority else a reduction of 90% if the recovery is from highly rated reinsurers else 50% for all other forms of reinsurance. Insurance business involving the provision of reinsurance arrangements in respect of which the insurance obligations of the portfolio insurance company are limited in recourse to and fully collateralised by the portfolio insurance company\u2019s assets General: US$500 Long-term: US$500 General: PCR = MCR Long-term: PCR = MCR Revision) SCHEDULE 2 Key: The letter \u201cC\u201d connotes capital charge. The word in parentheses following the letter \u201cC\u201d indicates the aspects to which the capital charge can be applied, being either premium, asset, reserves, reinsurance or catastrophe. PART 2 CAPITAL REQUIREMENT TEMPLATE Capital ($\u2019000) Capital Required for a PIC Total Prescribed Capital Requirement (PCR) A. Total Minimum Capital Requirement (MCR) B. Total Capital Available C. Capital in Excess of PCR (C. minus A.) SCHEDULE 3 Revision) SCHEDULE 3 (regulation 9) ANNUAL RETURN FORMS FORM 1 - ANNUAL RETURN - SECTION 28E (1)(a) INSTRUCTIONS: Name of portfolio insurance company  __________________________________ Registration no_____________________________ Annual return for the year ended  _______________ Pursuant to the principal Act provide the following in respect of the company\u2019s business \u2014 (a) audited financial statements prepared in accordance with internationally recognized accounting standards by an independent auditor approved by the Authority, together with a copy of any prescribed management letter issued by the auditor; (b) where the insurer writes long term business, an actuarial valuation certified by an actuary approved by the Authority; (c) where the insurer writes long term business, certification of solvency prepared by the insurance manager or a person approved by the Authority; (d) written confirmation that the information set out in the application for the registrant, as modified by any subsequent changes approved by the Authority, remains correct; (e) schematic of insurance programme; (f) methodology and supporting evidence as to how the prescribed capital requirement is met; (g) completed Form 2 in respect of the PIC\u2019s operations; and (h) such other information as the Authority may request in accordance with section 28E(1)(a) of the principal Act. Note: The annual report filing deadline is 6 months after portfolio insurance company\u2019s financial year end. Some items in this form may be waived for certain companies, as determined by the Authority on a case-by-case basis. Revision) SCHEDULE 3 DECLARATION VERIFYING ANNUAL RETURNS We,___________________________________________on behalf of the board of: (Print or type) ____________________________________________________________ (Name of PIC) of____________________________________________________________ (Name of Controlling Insurer) situated ____________________________________________________________ (Address of PIC) registered under the principal Act, hereinafter referred to as \u201cthe PIC\u201d, do state to the best of our knowledge that \u2014 (a) the information set out in the application for the PIC\u2019s registration, as modified by subsequent notifications of changes in accordance with the principal Act remains correct, and gives a comprehensive and fair picture of the said insurer\u2019s business; (b) the foregoing annual return, together with the statutorily required exhibits, schedules and explanations filed as part thereof, is a full and correct report of all assets, liabilities, income, expenditure and of the condition and affairs of the PIC in respect of its business of insurance, for the year ended ______________________; (c) as far as we are aware, all the assets reported in the said annual return and schedules were, as of the effective date of the annual return, the absolute property of the PIC free and clear from any liens and claims except as therein stated; and (d) based on our knowledge as of this date, the PIC is in compliance with the principal Act. Signed at _______________________________________Date _________ For____________________________________________________________ (name of the PIC) Authorised Signature SCHEDULE 3 Revision) FORM 2 - INSURANCE BUSINESS RETURN PART A Attach the report distributed to shareholders and the audited financial statements in the normal published form. PART B UNRELATED BUSINESS ANALYSIS (in United States Dollars (USD) ) Net Premiums Written from related PIC business Net Premium Written from unrelated business Total Net Premium Written Revision) SCHEDULE 4 SCHEDULE 4 (regulation 10) CERTIFICATE OF REGISTRATION No.______________ ____________________________________________________________ (Name of PIC) is hereby registered under the principal Act to carry on insurance business under section 28B of the principal Act as a portfolio insurance company of ____________________________________________________________ (Name of controlling relevant insurer and licence no.) subject to the provisions of the said principal Act and in particular, to the condition that the Registrant shall forthwith notify the Authority of any change in the information supplied in the application for this registration. Given this _____dayof________________________20__________at George Town, Grand Cayman, Cayman Islands. Affix Seal Signature ____________________________________________________________ Managing Director for the Cayman Islands Monetary Authority SCHEDULE 4 Revision) Publication in consolidated and revised form authorised by the Cabinet this 28th day of January, 2026. Kim Bullings Clerk of Cabinet Revision) SCHEDULE 4 ENDNOTES Table of Legislation history: SL # Act\/Law # Legislation Commencement Gazette 69\/2014 Insurance (Portfolio Insurance Companies) (Amendment) Regulations, 2024 1-Jan-2025 LG47\/2024\/s35 56\/2020 Citation of Acts of Parliament Act, 2020 3-Dec-2020 LG84\/2020\/s1 3\/2015 16-Jan-2015 GE4\/2015\/s5 SCHEDULE 4 Revision) (Price: $5.60)\", \"element\": \"section\", \"heading\": null}], \"meta\": {\"notes\": null, \"workflow\": null, \"lifecycle\": {\"source\": \"#cilegis\", \"eventRef\": [{\"eId\": \"e_commence_2026_01_01\", \"date\": \"2026-01-01\", \"type\": \"generation\", \"source\": \"#cilegis\"}]}, \"references\": {\"source\": \"#canary\", \"TLCRole\": [], \"TLCEvent\": [{\"eId\": \"ev_commencement\", \"href\": \"\/akn\/ontology\/canary\/event\/commencement\", \"showAs\": \"commencement\"}], \"TLCPerson\": [], \"TLCConcept\": [{\"eId\": \"inForce\", \"href\": \"\/akn\/ontology\/canary\/concept\/temporal\/in-force\", 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Act\n[Law 32 of 2010] (as amended)\nINSURANCE (PORTFOLIO INSURANCE\nCOMPANIES) REGULATIONS\n(2026 Revision)\n\nSupplement No.9 published with Legislation Gazette No. 7 dated 5th February, 2026.\n\nPage 2\nRevised as at 31st December, 2025\nc\n\nPUBLISHING DETAILS\n\nRevised under the authority of the Law Revision Act (2020 Revision).\n\nThe Insurance (Portfolio Insurance Companies) Regulations, 2015 made the 13th\nJanuary, 2015, as amended by the Citation of Acts of Parliament Act, 2020, and\nconsolidated with \u2014\n\nInsurance (Portfolio Insurance Companies) (Amendment) Regulations, 2024 made\n17th December, 2024.\n\nConsolidated and revised this 31st day of December, 2025.\n\nInsurance (Portfolio Insurance Companies) Regulations (2026\nRevision)\nArrangement of Regulations\n\nc\nRevised as at 31st December, 2025\nPage 3\n\nCAYMAN ISLANDS\n\nInsurance Act\n[Law 32 of 2010] (as amended)\nINSURANCE (PORTFOLIO INSURANCE\nCOMPANIES) REGULATIONS\n(2026 Revision)\nArrangement of Regulations\nRegulation\nPage\n1.\nCitation ......................................................................................................................................5\n2.\nDefinitions ..................................................................................................................................5\n3.\nApplication for registration .........................................................................................................8\n4.\nRepealed ...................................................................................................................................8\n5.\nDetermining the margin of solvency ...........................................................................................9\n6.\nMinimum capital and prescribed capital requirement ..................................................................9\n7.\nWhere capital falls below requirement .......................................................................................9\n8.\nPrescribed capital requirement ..................................................................................................9\n9.\nRequired documents ................................................................................................................ 10\n10.\nCertificate of registration Schedule 4 ....................................................................................... 10\n11.\nForms ...................................................................................................................................... 10\nSCHEDULE 1\n11\nAPPLICATION AND ANNUAL DECLARATION FORMS\n11\nFORM 1 - APPLICATION FOR PORTFOLIO INSURANCE COMPANY REGISTRATION ................. 11\nFORM 2 - ANNUAL DECLARATION FORM ...................................................................................... 15\nSCHEDULE 2\n17\nCAPITAL REQUIREMENT\n17\nPART 1 ............................................................................................................................................. 17\nPART 2 ............................................................................................................................................. 21\n\nArrangement of Regulations\nInsurance (Portfolio Insurance Companies) Regulations (2026\nRevision)\n\nPage 4\nRevised as at 31st December, 2025\nc\n\nSCHEDULE 3\n22\nANNUAL RETURN FORMS\n22\nFORM 1 - ANNUAL RETURN - SECTION 28E (1)(a) ........................................................................ 22\nFORM 2 - INSURANCE BUSINESS RETURN .................................................................................. 24\nSCHEDULE 4\n25\nCERTIFICATE OF REGISTRATION\n25\nENDNOTES\n27\nTable of Legislation history: ............................................................................................................... 27\n\nInsurance (Portfolio Insurance Companies) Regulations (2026\nRevision)\nRegulation 1\n\nc\nRevised as at 31st December, 2025\nPage 5\n\nCAYMAN ISLANDS\n\nInsurance Act\n[Law 32 of 2010] (as amended)\nINSURANCE (PORTFOLIO INSURANCE\nCOMPANIES) REGULATIONS\n(2026 Revision)\n\n1.\nCitation\n1.\nThese Regulations may be cited as the Insurance (Portfolio Insurance Companies)\nRegulations (2026 Revision).\n2.\nDefinitions\n2.\n(1) In these Regulations \u2014\n\u201cadmissible assets\u201d includes class 1 assets, class 2 assets, class 3 assets, class 4\nassets, class 5 assets, class 6 assets, class 7 assets and class 8 assets unless\notherwise approved by the Authority;\n\u201cclass 1 assets\u201d means \u2014\n(a)\ncash and cash equivalents including time deposits and money market funds\nrated AA or higher;\n(b) investment grade obligations of government or central banks rated AA or\nabove;\n(c)\nincoming irrevocable letters of credit where acceptable by the Authority;\n(d) loans or notes receivable where supported by irrevocable letters of credit\nacceptable by the Authority;\n(e)\nincome tax receivables; or\n\nRegulation 2\nInsurance (Portfolio Insurance Companies) Regulations (2026\nRevision)\n\nPage 6\nRevised as at 31st December, 2025\nc\n\n(f)\ninstalment premiums not yet due;\n\u201cclass 2 assets\u201d means \u2014\n(a)\nhigh investment grade bonds or paper rated AA or higher (or equivalent);\n(b) exchange rate derivative contracts, designated and accounted for as\nhedging, with a maturity of one year or less and interest rate derivative\ncontracts, designated and accounted for hedging, regardless of the maturity\ndate;\n(c)\nreceivables from insurers or highly rated reinsurers;\n(d) unearned premiums recoverable from insurers or highly rated reinsurers;\n(e)\nunpaid claims and adjustment expenses recoverable from insurers or\nhighly rated reinsurers outstanding for less than one year; or\n(f)\ngold and other commodities acceptable to the Authority;\n\u201cclass 3 assets\u201d means \u2014\n(a)\nbonds, and debentures, including commercial paper, rated investment or\nbank grade that mature or are redeemable in less than one year;\n(b) accounts receivable outstanding ninety days or less from agents, brokers,\nsubsidiaries and policyholders, including installment premiums and other\nreceivables;\n(c)\ninvestment income due and accrued; or\n(d) unpaid claims and adjustment expenses recoverable from licensed insurers\nor highly rated reinsurers, outstanding for over twelve months;\n\u201cclass 4 assets\u201d means \u2014\n(a)\nterm deposits, bonds, and debentures, including commercial paper, rated\ninvestment or bank grade, that mature or are redeemable in one year\nor more;\n(b) investment grade bonds or paper rated A or equivalent; or\n(c)\nreceivables and recoverables for medium rated reinsurers outstanding for\nless than twelve months;\n\u201cclass 5 assets\u201d means \u2014\n(a)\ninvestment grade bonds or paper rated BBB;\n(b) investment grade obligations of government or central banks rated BBB;\n(c)\nrelated party loans not yet called for; or\n(d) receivables and recoverables for medium-rated reinsurers outstanding for\ntwelve months or more;\n\u201cclass 6 assets\u201d means \u2014\n(a)\nmortgage-backed securities rated A or higher;\n(b) common shares;\n\nInsurance (Portfolio Insurance Companies) Regulations (2026\nRevision)\nRegulation 2\n\nc\nRevised as at 31st December, 2025\nPage 7\n\n(c)\nexchange traded funds;\n(d) exchange traded derivatives;\n(e)\nnon-cumulative preference shares;\n(f)\ninvestments in collective investment schemes, unit trusts, hedge funds,\nmutual funds or other similar assets; or\n(g) real estate;\n\u201cclass 7 assets\u201d means \u2014\n(a)\naccounts receivable outstanding over ninety days from agents, brokers,\nsubsidiaries, associates and policyholders, including installment premiums\nand other receivables;\n(b) other recoverables including salvage and subrogation on unpaid claims;\n(c)\nresidential mortgages;\n(d) cumulative preferred shares;\n(e)\nunlisted equity securities;\n(f)\nprivate equity funds;\n(g) limited partnerships;\n(h) mortgage-backed securities rated lower than A; or\n(i)\ncommercial mortgages;\n\u201cclass 8 assets\u201d means \u2014\n(a)\ndeferred policy acquisition expenses;\n(b) commissions, net of an adjustment for unearned commissions (net value)\nand if the net value is negative, report zero;\n(c)\nother intangible and non-financial assets up to a limit of one per cent of\ntotal assets and for this purpose any excess over the limit is included in the\namount deducted from capital available;\n(d) other loans; or\n(e)\nterm deposits, bonds and debentures, including commercial paper, rated\nnot-investment grade, that mature or are redeemable in one year or more;\n\u201cfiling date\u201d means the date on which a portfolio insurance company is required\nto submit the annual return required in the principal Act;\n\u201cgross premium written\u201d means total written premiums prior to any\ndeductions;\n\u201chighly rated reinsurer\u201d means reinsurance in which the counterparty is rated\nA- or higher or equivalent in the latest rating of a recognized rating agency or\nas approved by the Authority;\n\nRegulation 3\nInsurance (Portfolio Insurance Companies) Regulations (2026\nRevision)\n\nPage 8\nRevised as at 31st December, 2025\nc\n\n\u201cmanager\u201d means a person, other than the approved insurance manager, who\nhandles, controls or directs the business operations of a portfolio insurance\ncompany;\n\u201cmargin of solvency\u201d means the excess of the value of prescribed assets over\nprescribed liabilities;\n\u201cMCR\u201d means minimum capital requirement;\n\u201cminimum capital requirement\u201d means the minimum capital, as set out in\nthese Regulations, that a portfolio insurance company must maintain in order to\noperate in accordance with the principal Act;\n\u201cnet earned premium\u201d means net written premium applicable to the expired\npart of the policy;\n\u201cnet written premium\u201d means gross premium written less the reinsurance\npremium ceded;\n\u201cPCR\u201d means prescribed capital requirement; \u201cPIC\u201d means portfolio insurance\ncompany;\n\u201cprescribed capital requirement\u201d means the total risk based capital, as set out\nin these Regulations, that a portfolio insurance company must maintain in order\nto operate in accordance with the principal Act;\n\u201cprescribed management letter\u201d means written correspondence from the\nauditor with respect to any material audit related matters which the auditor\nshould bring to the attention of their client;\n\u201cprincipal Act\u201d means the Insurance Act, 2010 [Law 32 of 2010] (as amended);\nand\n\u201creinsurance premium ceded\u201d means the premium ceded to reinsurers.\n(2) For the purposes of Schedules 2 and 3 of these Regulations, \u201crelated PIC\nbusiness\u201d means business which will originate from the portfolio insurance\ncompany\u2019s members or the members of any group with which it is related\nthrough common ownership or a common risk management plan or as\ndetermined by the Authority.\n3.\nApplication for registration\n3.\nAn application for registration made under section 28B of the principal Act, shall be\nin the form prescribed in Form 1 of Schedule 1.\n4.\nRepealed\n4.\nRepealed by regulation 3 of the Insurance (Portfolio Insurance Companies)\n(Amendment) Regulations, 2026 [SL 69 of 2024].\n\nInsurance (Portfolio Insurance Companies) Regulations (2026\nRevision)\nRegulation 5\n\nc\nRevised as at 31st December, 2025\nPage 9\n\n5.\nDetermining the margin of solvency\n5.\nFor the purposes of determining the margin of solvency to be maintained by a\nportfolio insurance company under section 28D(e) of the principal Act \u2014\n(a)\nassets are prescribed as admissible assets; and\n(b) liabilities are prescribed as liabilities which include \u2014\n(i)\nminority interests, calculated and valued on the basis required by the\naccounting standards in accordance with which the portfolio\ninsurance company\u2019s financial statements are prepared; and\n(ii) all liabilities arising out of its contracts of insurance.\n6.\nMinimum capital and prescribed capital requirement\n6.\n(1) Subject to regulations 6(3) and (4), the minimum capital requirement and the\nprescribed capital requirement for portfolio insurance companies are as set out\nin Part 1 of Schedule 2.\n(2) For the purposes of section 28D(e) of the principal Act, the minimum margin of\nsolvency for each portfolio insurance company is stipulated as the prescribed\ncapital requirement set out in Part 1 of Schedule 2.\n(3) As an alternative to the prescribed capital requirement in Form 2 of Schedule 2,\nthe portfolio insurance company may, upon the review and approval of the\nAuthority, use its own internal capital model and for the purposes of this\nregulation, this internal capital model shall be deemed to be the prescribed\ncapital requirement.\n(4) Notwithstanding the minimum capital requirement and the prescribed capital\nrequirement in Part 1 of Schedule 2, the Authority may, upon request by a\nportfolio insurance company, review and set a modified minimum capital\nrequirement or a modified prescribed capital requirement in respect of any\nportfolio insurance company having regard to such facts and circumstances as\nthe Authority may consider appropriate.\n7.\nWhere capital falls below requirement\n7.\n(1) Where the capital of a portfolio insurance company falls below the prescribed\ncapital requirement but is greater than the minimum capital requirement, the\nportfolio insurance company shall meet with the Authority and present a\nremedial action plan to the Authority.\n(2) Where the capital of a portfolio insurance company falls below the minimum\ncapital requirement, the Authority may take any regulatory action.\n8.\nPrescribed capital requirement\n8.\nAt each filing date, the portfolio insurance company shall calculate and record its\nprescribed capital requirement using the form set out in Part 2.\n\nRegulation 9\nInsurance (Portfolio Insurance Companies) Regulations (2026\nRevision)\n\nPage 10\nRevised as at 31st December, 2025\nc\n\n9.\nRequired documents\n9.\n(1) Every portfolio insurance company, except as provided by paragraph (2) and as\notherwise provided by the Authority in writing, is required to submit within six\nmonths of the end of its financial year the following in respect of the company\u2019s\nbusiness \u2014\n(a)\naudited financial statements prepared in accordance section 28E(1)(a) of\nthe principal Act and the respective instructions in the Annual Return Form\nin Schedule 3;\n(b) an annual declaration as set out in Form 2 of Schedule 1;\n(c)\nan actuarial valuation of its assets and liabilities including loss and loss\nexpense provisions, certified by an actuary approved by the Authority;\n(d) certificate of solvency prepared by a person approved by the\nAuthority; and\n(e)\nsuch other information as the Authority may request in accordance with\nsection 28E.\n(2) A portfolio insurance company that \u2014\n(a)\ndoes not conduct long-term business; or\n(b) conducts insurance business of the type described in section 4(3)(c) of the\nprincipal Act,\nis not required to make submissions under paragraphs (1)(c) or (1)(d).\n10.\nCertificate of registration Schedule 4\n10. The certificate of registration shall be in the form set out in Schedule 4 and shall be\nprinted on the watermarked paper approved by the Authority.\n11.\nForms\n11. The forms set out in the Schedules are prescribed for the respective purposes provided\nfor in the principal Act and as specified in the respective headings to each form.\n\nInsurance (Portfolio Insurance Companies) Regulations (2026\nRevision)\n\nSCHEDULE 1\n\nc\nRevised as at 31st December, 2025\nPage 11\n\n SCHEDULE 1\n(regulations 3 and 9)\n\nAPPLICATION AND ANNUAL DECLARATION FORMS\nFORM 1 - APPLICATION FOR PORTFOLIO INSURANCE COMPANY\nREGISTRATION\n(Section 28B(1) of the principal Act\n\nPlease complete all sections as fully as possible, give reasons, for non- completion, if any,\nand attach appendices where appropriate.\n\nPART A\nGeneral Information\nA1\nName of the exempted company which name\nshall include the letters \u201cPIC\u201d or \u201cP.I.C.\u201d or\nwords \u201cPortfolio Insurance\nCompany\u201d\nA2\nAttach evidence of proper incorporation of\nthe applicant or in the case of a portfolio\ninsurance\ncompany\nthat\nis\nnot\nyet\nincorporated, the proposed\nincorporation documentation\nA3\nName of the controlling relevant insurer\nA4\nLicence\nnumber\nrelevant insurer\nof\nthe\ncontrolling\n\nA5\nAttach the written consent of the\ncontrolling relevant insurer\nA6\nBusiness proposed to be transacted\nLong-term\nGeneral\nA7\nDate on which applicant intends to commence\ncarrying on insurance business\n\nSCHEDULE 1\nInsurance (Portfolio Insurance Companies) Regulations (2026\nRevision)\n\nPage 12\nRevised as at 31st December, 2025\nc\n\nPART B\nKey Personnel\nB1\nNames of the directors, managers and\nofficers of the exempted company referred\nto in A1\nB2\nFor each director, manager and officer\nattach  \u2014\n(a)\npersonal questionnaire;\n(b) three references acceptable to\nthe Authority, comprising two\ncharacter references and one\nreference\nverifying\ngood\nfinancial standing;\n(c)\npolice\nor\nother\ncertificate\nsatisfactory to the Authority\nconfirming that the person in\nquestion has not been convicted\nof a serious crime or any offence\ninvolving dishonesty;\n(d) photo identification (passport or\ndriver\u2019s licence) and proof of\nhome address\n\nPART C\nBusiness to be transacted\nAttach a business plan, with financial projections over a three year period, for the\ninsurance business to be transacted including the following \u2014\nC1\nRationale for\nestablishing\nportfolio\ninsurance company\nC2\nClasses of insurance to be written including\nlevels of retention, cessions\/limits and\nprogramme aggregates, if applicable, by\nline of\nbusiness\nC3\nDetails of any proposed arrangements\n\nwhereby the portfolio insurance company\nwill reinsure admitted insurance carriers\noutside the Cayman\nIslands\n\nInsurance (Portfolio Insurance Companies) Regulations (2026\nRevision)\n\nSCHEDULE 1\n\nc\nRevised as at 31st December, 2025\nPage 13\n\nC4\nReserving philosophy with evidence of\nloss history where available\nC5\nFinancial projections covering at least three\nyears, by class of business, identifying\nassumptions (e.g. confidence levels, if\napplicable) to include \u2014\n(a)\nincome statement;\n(b) balance sheet; and\n(c)\nstatement of solvency at each yearend\nC6\nNames of any external providers, for\nexample, Third Party Administrators\nC7\nInvestment policy\nC8\nDividend policy\n\nWhere section 28R(1) of the principal Act applies, file the relevant document as\nrequired thereunder.\nDeclaration\n1.\nHave any of the parties connected with this application ever unsuccessfully applied,\neither individually or in conjunction with others, for authority to transact insurance\nbusiness in this or any other jurisdiction?\n\u2751 Yes \u2751 No (Tick the appropriate box.). If yes, please give details \u2013\n____________________________________________________________\n____________________________________________________________\n____________________________________________________________\n____________________________________________________________\n2.\nHave any of the parties connected with this application ever applied and thereafter\nwithdrawn an application for authority to transact insurance business in this or any\nother jurisdiction?\n\u2751 Yes \u2751 No (Tick the appropriate box.). If yes, please explain \u2013\n____________________________________________________________\n____________________________________________________________\n____________________________________________________________\n____________________________________________________________\nI understand the obligation to notify or seek prior approval after submission of this\napplication for material changes to matters referenced herein.\n\nSCHEDULE 1\nInsurance (Portfolio Insurance Companies) Regulations (2026\nRevision)\n\nPage 14\nRevised as at 31st December, 2025\nc\n\nAn application is hereby made for the registration of the portfolio insurance company\nspecified above and it is certified that all particulars contained in this application and\nin the documents accompanying it or otherwise furnished in support thereof are true\nand correct at the date of application.\nDated this\nday of _\n\n20\n____________________________________________________________\n(Name of applicant)\nby its Director\/ Secretary\/Person who is duly authorised by the directors of the\napplicant (Delete options that are not applicable)\nSigned:\n\nWITNESS:\n\nName:\nOccupation:\nAddress:\n\nPlease submit Form with non-refundable application fee to the Cayman Islands\nMonetary Authority.\n\nInsurance (Portfolio Insurance Companies) Regulations (2026\nRevision)\n\nSCHEDULE 1\n\nc\nRevised as at 31st December, 2025\nPage 15\n\nFORM 2 - ANNUAL DECLARATION FORM\n(Section 28B(1) of the principal Act\n\nINSTRUCTIONS:\n\n1.\nThis declaration shall be made within six (6) months of the end of each financial\nyear during the continuation of the portfolio insurance company\u2019s registration.\n\n2.\nPlease complete all sections below as fully as possible\nWe,_____________________________________________on behalf of the board of\n(Print or type)\n____________________________________________________________\n(Name of Portfolio Insurance Company)\n\nof____________________________________________________________\n(Name of Controlling Relevant Insurer)\nsituated at___________________________________________________________\nand registered under the principal Act (hereinafter called \"the PIC\") declare as follows -\n1.\n(Select one of the options below)\n\uf072 There has been no change to the name of the PIC since it was first\nregistered\/since the date of its last annual declaration and its full corporate name is as\nset out above; or\n\uf072 There\nwas a\nchange\nto\nthe name\nof\nthe PIC on\n ________________________, 20____  and its full corporate name is now the\nname set out above.\n\n2.\n(Select one of the options below)\n\uf072 There has been no change in the Controlling Relevant Insurer of the PIC since\nit was first registered\/ since the date of its last annual declaration and its Controlling\nRelevant Insurer is set out above; or\n\uf072 The Controlling Relevant Insurer of the PIC changed on\n ________________________, 20____  to the Controlling\nRelevant Insurer set out above.\n\nSCHEDULE 1\nInsurance (Portfolio Insurance Companies) Regulations (2026\nRevision)\n\nPage 16\nRevised as at 31st December, 2025\nc\n\n3.\nThe current directors of the PIC are as follows \u2013\n\n4.\nThe current officers of the PIC are as follows \u2013\n\n5.\nThe current managers of the PIC are as follows -\n\nSigned at\nDate\n\nFor\n\n(Name of the PIC)\n\nAuthorised Signature\n\n(Name of signatory)\n\nInsurance (Portfolio Insurance Companies) Regulations (2026\nRevision)\n\nSCHEDULE 2\n\nc\nRevised as at 31st December, 2025\nPage 17\n\nSCHEDULE 2\n(regulations 6 and 8)\n\nCAPITAL REQUIREMENT\nPART 1\nMINIMUM CAPITAL REQUIREMENT AND PRESCRIBED CAPITAL\nREQUIREMENT\n\nPercent of related PIC\nbusiness\nwritten\nby\nportfolio insurance\ncompany\nMinimum Capital\nRequirement\n(\u201cMCR\u201d)\nPrescribed Capital\nRequirement (\u201cPCR\u201d)\nAt least 95% of the net\npremiums written will\noriginate from related\nPIC business\nGeneral:\nUS$100,000\nLong-term:\nUS$200,000\nGeneral: PCR = MCR\nLong-term: PCR = MCR\nOver 50% of the net\npremiums written will\noriginate from related\nPIC business\nGeneral:\nUS$150,000\nLong-term:\nUS$300,000\nGeneral:\n\u2022 10% of net earned premium\n(\u201cNEP\u201d)\nto\nfirst\nUS$5,000,000\n\u2022 5% of additional NEP up to\nUS$20,000,000\n\u2022 2.5% of additional NEP in\nexcess of US$20,000,000\nLong-term: PCR = MCR\n50% or less of the net\npremiums written will\noriginate from related\nPIC business, subject to\nannual NEP being less\nthan\nUS$ 20,000,000\nGeneral:\nUS$200,000\nLong-term:\nUS$400,000\nGeneral:\n\u2022 15% of NEP to\nfirst\nUS$5,000,000\n\u2022 7.5% of additional NEP up to\nUS$20,000,000\nLong-term: PCR = MCR\n\nSCHEDULE 2\nInsurance (Portfolio Insurance Companies) Regulations (2026\nRevision)\n\nPage 18\nRevised as at 31st December, 2025\nc\n\nPercent of related PIC\nbusiness\nwritten\nby\nportfolio insurance\ncompany\nMinimum Capital\nRequirement\n(\u201cMCR\u201d)\nPrescribed Capital\nRequirement (\u201cPCR\u201d)\n50% or less of the net\npremiums written will\noriginate from related\nPIC business, subject to\nannual NEP being equal\nto or greater than US$\n20,000,000\nWhen the NEP is less\nthan\nor\nequal\nto\nUS$50,000,000\nGeneral:\nUS$1,000,000\nLong-term:\nUS$2,000,000\nWhen the NEP is\ngreater\nthan\nUS$50,000,000\nGeneral:\nUS$7,500,000\nLong-term:\nC (premium)\n\u2022\n15.0% of NEP to first\nUS$50,000,000\n\u2022\n7.5% of additional NEP in\nexcess of US$50,000,000\nC (asset)\n\u2022\nClass 1 assets: 0.0%\n\u2022\nClass 2 assets: 0.5%\n\u2022\nClass 3 assets: 2.0%\n\u2022\nClass 4 assets: 4.0%\n\u2022\nClass 5 assets: 5.0%\n\u2022\nClass 6 assets: 10.0%\n\u2022\nClass 7 assets: 15.0%\n\u2022\nClass 8 assets: 35.0%\n\nInsurance (Portfolio Insurance Companies) Regulations (2026\nRevision)\n\nSCHEDULE 2\n\nc\nRevised as at 31st December, 2025\nPage 19\n\nUS$7,500,000\nC (reserve)\n\u2022\nGeneral insurance\nreserves: 10.0% of gross\ngeneral insurance reserves\n\u2022\nLong-term insurance\nreserves: 5.0% of gross\nlong-term insurance\nreserves\nC (reinsurance)\n5.0% of total ceded unearned\npremium reserve\nC (catastrophe)\n20% of 1 in 100 year event;\nand 100% of a 1 in 10 year\nevent\nImportant:\nIn the event that a portfolio\ninsurance\ncompany\nhas\nreinsurance recoveries related to\nassumed reserves, a reduction to\nthe C (reserve) will be allowed\nup to 100% of any reinsurance\nrecoveries if such recoveries are\nsecured by letters of credit else a\nreduction of 95% for collateral\napproved by the Authority else a\nreduction of 90% if the recovery\nis from highly rated reinsurers\nelse 50% for all other forms of\nreinsurance.\nIn the event that a portfolio\ninsurance company has ceded\nunearned premium reserves,\n\nSCHEDULE 2\nInsurance (Portfolio Insurance Companies) Regulations (2026\nRevision)\n\nPage 20\nRevised as at 31st December, 2025\nc\n\na\nreduction\nto\nthe\nC\n(reinsurance) will be allowed up\nto 100% of any ceded unearned\npremium\nreserves\nif\nsuch\nrecoveries are secured by letters\nof credit else a reduction of 95%\nfor collateral approved by the\nAuthority else a reduction of\n90% if the recovery is from\nhighly rated reinsurers else 50%\nfor\nall\nother\nforms\nof\nreinsurance.\nIn the event that a portfolio\ninsurance company has ceded\ncatastrophe risk, a reduction to\nthe C (catastrophe) will be\nallowed up to 100% of any\nreinsurance recoveries if such\nrecoveries are secured by letters\nof credit else a reduction of\n95% for collateral approved by\nthe Authority else a reduction of\n90% if the recovery is from\nhighly rated reinsurers else 50%\nfor all other forms of\nreinsurance.\nInsurance business\ninvolving the provision of\nreinsurance arrangements\nin respect of which the\ninsurance obligations of\nthe portfolio insurance\ncompany are limited in\nrecourse to and fully\ncollateralised by the\nportfolio insurance\ncompany\u2019s assets\nGeneral: US$500\nLong-term: US$500\nGeneral: PCR = MCR\nLong-term: PCR = MCR\n\nInsurance (Portfolio Insurance Companies) Regulations (2026\nRevision)\n\nSCHEDULE 2\n\nc\nRevised as at 31st December, 2025\nPage 21\n\nKey: The letter \u201cC\u201d connotes capital charge. The word in parentheses following the\nletter \u201cC\u201d indicates the aspects to which the capital charge can be applied, being\neither premium, asset, reserves, reinsurance or catastrophe.\n\nPART 2\n\nCAPITAL REQUIREMENT TEMPLATE\nCapital\n($\u2019000)\nCapital Required for a PIC\nTotal Prescribed Capital Requirement (PCR)\nA.\nTotal Minimum Capital Requirement (MCR)\nB.\nTotal Capital Available\nC.\nCapital in Excess of PCR (C. minus A.)\n\nSCHEDULE 3\nInsurance (Portfolio Insurance Companies) Regulations (2026\nRevision)\n\nPage 22\nRevised as at 31st December, 2025\nc\n\nSCHEDULE 3\n(regulation 9)\nANNUAL RETURN FORMS\nFORM 1 - ANNUAL RETURN - SECTION 28E (1)(a)\n\nINSTRUCTIONS:\n\nName of portfolio insurance company  __________________________________\n\nRegistration no_____________________________\n\nAnnual return for the year ended  _______________\n\nPursuant to the principal Act provide the following in respect of the company\u2019s\nbusiness \u2014\n(a)\naudited financial statements prepared in accordance with internationally\nrecognized accounting standards by an independent auditor approved by\nthe Authority, together with a copy of any prescribed management letter\nissued by the auditor;\n(b) where the insurer writes long term business, an actuarial valuation certified\nby an actuary approved by the Authority;\n(c)\nwhere the insurer writes long term business, certification of solvency\nprepared by the insurance manager or a person approved by the Authority;\n(d) written confirmation that the information set out in the application for the\nregistrant, as modified by any subsequent changes approved by the\nAuthority, remains correct;\n(e)\nschematic of insurance programme;\n(f)\nmethodology and supporting evidence as to how the prescribed capital\nrequirement is met;\n(g) completed Form 2 in respect of the PIC\u2019s operations; and\n(h) such other information as the Authority may request in accordance with\nsection 28E(1)(a) of the principal Act.\nNote: The annual report filing deadline is 6 months after portfolio insurance\ncompany\u2019s financial year end. Some items in this form may be waived for certain\ncompanies, as determined by the Authority on a case-by-case basis.\n\nInsurance (Portfolio Insurance Companies) Regulations (2026\nRevision)\n\nSCHEDULE 3\n\nc\nRevised as at 31st December, 2025\nPage 23\n\nDECLARATION VERIFYING ANNUAL RETURNS\nWe,___________________________________________on behalf of the board of:\n(Print or type)\n____________________________________________________________\n(Name of PIC)\nof____________________________________________________________\n(Name of Controlling Insurer)\nsituated ____________________________________________________________\n(Address of PIC)\nregistered under the principal Act, hereinafter referred to as \u201cthe PIC\u201d, do state to the best\nof our knowledge that \u2014\n(a)\nthe information set out in the application for the PIC\u2019s registration, as\nmodified by subsequent notifications of changes in accordance with the\nprincipal Act remains correct, and gives a comprehensive and fair picture\nof the said insurer\u2019s business;\n(b) the foregoing annual return, together with the statutorily required exhibits,\nschedules and explanations filed as part thereof, is a full and correct report\nof all assets, liabilities, income, expenditure and of the condition and\naffairs of the PIC in respect of its business of insurance, for the year ended\n\n______________________;\n(c)\nas far as we are aware, all the assets reported in the said annual return and\nschedules were, as of the effective date of the annual return, the absolute\nproperty of the PIC free and clear from any liens and claims except as\ntherein stated; and\n(d) based on our knowledge as of this date, the PIC is in compliance with the\nprincipal Act.\nSigned at _______________________________________Date _________\nFor____________________________________________________________\n(name of the PIC)\nAuthorised Signature\n\nSCHEDULE 3\nInsurance (Portfolio Insurance Companies) Regulations (2026\nRevision)\n\nPage 24\nRevised as at 31st December, 2025\nc\n\nFORM 2 - INSURANCE BUSINESS RETURN\n\nPART A\nAttach the report distributed to shareholders and the audited financial statements in the\nnormal published form.\nPART B\nUNRELATED BUSINESS ANALYSIS (in United States Dollars (USD) )\n\nNet Premiums Written\nfrom related PIC\nbusiness\nNet Premium Written from\nunrelated business\nTotal Net Premium\nWritten\n\nInsurance (Portfolio Insurance Companies) Regulations (2026\nRevision)\n\nSCHEDULE 4\n\nc\nRevised as at 31st December, 2025\nPage 25\n\nSCHEDULE 4\n(regulation 10)\nCERTIFICATE OF REGISTRATION\n\nNo.______________\n____________________________________________________________\n(Name of PIC)\nis hereby registered under the principal Act to carry on insurance business under section\n28B of the principal Act as a portfolio insurance company of\n____________________________________________________________\n(Name of controlling relevant insurer and licence no.)\nsubject to the provisions of the said principal Act and in particular, to the condition that the\nRegistrant shall forthwith notify the Authority of any change in the information supplied\nin the application for this registration.\nGiven this _____dayof________________________20__________at\nGeorge\nTown,\nGrand Cayman, Cayman Islands.\n\nAffix\nSeal\nSignature ____________________________________________________________\nManaging Director for the Cayman Islands Monetary Authority\n\nSCHEDULE 4\nInsurance (Portfolio Insurance Companies) Regulations (2026\nRevision)\n\nPage 26\nRevised as at 31st December, 2025\nc\n\nPublication in consolidated and revised form authorised by the Cabinet this 28th\nday of January, 2026.\nKim Bullings\nClerk of Cabinet\n\nInsurance (Portfolio Insurance Companies) Regulations (2026\nRevision)\n\nSCHEDULE 4\n\nc\nRevised as at 31st December, 2025\nPage 27\n\nENDNOTES\nTable of Legislation history:\nSL #\nAct\/Law #\nLegislation\nCommencement\nGazette\n69\/2014\n\nInsurance (Portfolio Insurance Companies) (Amendment)\nRegulations, 2024\n1-Jan-2025 LG47\/2024\/s35\n\n56\/2020\nCitation of Acts of Parliament Act, 2020\n3-Dec-2020\nLG84\/2020\/s1\n3\/2015\n\nInsurance (Portfolio Insurance Companies) Regulations,\n2015\n16-Jan-2015\nGE4\/2015\/s5\n\nSCHEDULE 4\nInsurance (Portfolio Insurance Companies) Regulations (2026\nRevision)\n\nPage 28\nRevised as at 31st December, 2025\nc\n\n(Price: $5.60)","akn_extracted_at":"2026-06-22 15:38:43.497075+00","cms_id":"2015-0003","law_type":"subordinate","year":"2015","number":"3","title":"Insurance (Portfolio Insurance Companies) Regulations","status":"in_force"},"provenance":{"files":[{"file_id":"4898","expr_id":"94","kind":"akn_xml","filename":"2015-0003_2026 Revision.akn.xml","source_url":null,"storage_path":"\/Users\/q\/kyleg-data\/working\/SUBORDINATE\/2015\/2015-0003\/2015-0003_2026 Revision.akn.xml","content_md5":"2da8777c973cf81f7a4c67eb87eb25a1","byte_size":"31171","http_last_modified":null,"fetched_at":"2026-06-22 15:38:43.62504+00"},{"file_id":"187","expr_id":"94","kind":"pristine_pdf","filename":"2015-0003_2026 Revision.pdf","source_url":"\/cms\/images\/LEGISLATION\/SUBORDINATE\/2015\/2015-0003\/2015-0003_2026 Revision.pdf","storage_path":"\/Users\/q\/kyleg-data\/pristine\/SUBORDINATE\/2015\/2015-0003\/2015-0003_2026 Revision.pdf","content_md5":"35d233e0dd37564c1b84d9e7afcfbbc0","byte_size":"568488","http_last_modified":null,"fetched_at":"2026-06-21 23:09:35.501151+00"},{"file_id":"188","expr_id":"94","kind":"working_pdf","filename":"2015-0003_2026 Revision.pdf","source_url":"\/cms\/images\/LEGISLATION\/SUBORDINATE\/2015\/2015-0003\/2015-0003_2026 Revision.pdf","storage_path":"\/Users\/q\/kyleg-data\/working\/SUBORDINATE\/2015\/2015-0003\/2015-0003_2026 Revision.pdf","content_md5":"35d233e0dd37564c1b84d9e7afcfbbc0","byte_size":"568488","http_last_modified":null,"fetched_at":"2026-06-21 23:09:35.501151+00"}],"paragraph_count":3,"latest_history":null},"quality":{"expr_id":"94","doc_id":"94","quality_state":"needs_review","quality_score":"76","needs_human_review":"t","deterministic_categories":"{duplicate_text,page_header_footer_noise}","llm_categories":"{other}","repair_actions":"{collapse_duplicate_text,manual_review,strip_page_furniture}","finding_severity_counts":"{\"low\": 1, \"medium\": 1}","finding_summary":"Text appears mostly clean; 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