Singapore legislation
Regulation 3
Regulation 3
Paid-up capital requirement
Subregulation 1
For the purposes of section 8(3)(b) of the Act, the Authority shall not license an applicant as a direct insurer or reinsurer under section 8 of the Act unless the applicant has a paid-up ordinary share capital (or its equivalent recognised by the Authority as applicable to the applicant under the laws of the country or territory in which the applicant is incorporated, formed or established) of no less than —
in the case of an applicant applying to be a direct insurer carrying on only one of the types of insurance business listed in the Second Schedule, $5 million;
in the case of an applicant applying to be a direct insurer other than a direct insurer referred to in sub-paragraph (a), $10 million; and
in the case of an applicant applying to be a reinsurer, $25 million.
Subregulation 2
The requirement in paragraph (1) does not apply in relation to —
an applicant applying to be licensed under section 8 of the Act as a direct insurer to carry on marine mutual insurance business only; or
an applicant —
created for the sole purpose of entering into contracts of reinsurance with one or more insurers; and
applying to be licensed under section 8 of the Act as a reinsurer, where its obligations under the contracts of reinsurance mentioned in sub-paragraph (i) entered into by the applicant as a licensed reinsurer are to be at all times fully funded through insurance securitisation.