The document outlines amendments to the regulation regarding the measurement and evaluation of capital adequacy for insurance and reinsurance companies, as well as pension companies. The key revisions focus on defining stages for capital adequacy based on specific equity ratios and the corresponding actions required by the companies.
Article 1
The second paragraph of Article 8 of the regulation published in the Official Gazette No. 29454 on August 23, 2015, has been amended as follows.
Article 2
The second and fifth paragraphs of Article 9 of the same regulation have been amended as follows:
(2) The equity/required equity ratio is classified into stages based on its value:
a) A ratio between 100% and 115% indicates a “self-assessment” stage, requiring the company to report a self-evaluation and expectations within 30 days.
b) A ratio between 70% and 99.99% indicates a “precaution” stage, requiring the company to submit a plan to cover any capital shortfall within 15 days and to do so within 6 months.
c) A ratio between 33% and 69.99% indicates an “urgent precaution” stage, requiring a plan submission within 10 days and to raise the ratio to at least 70% within 3 months and 100% within 6 months.
ç) A ratio below 33% is termed the “intervention” stage, under which immediate actions will be taken according to relevant laws.
(5) The provisions of this article apply to capital adequacy results for the months of March, June, September, and December.
Article 3
Article 10 of the same regulation has been amended as follows:
(1) Companies must prepare the capital adequacy table, as defined by the Authority, for the periods specified in the fifth paragraph of Article 9 and submit them on the relevant financial statement submission dates. The Authority may alter the timing and conditions for preparing and submitting the capital adequacy tables.
Article 4
This regulation will come into effect on the date of publication.
Article 5
The President of the Insurance and Private Pension Regulation and Supervision Authority will oversee the implementation of this regulation.
