By means of Resolution No. 181/2024 (the “Resolution”), the Argentine Insurance Regulator (the “SSN”) has introduced several amendments to the insurance and reinsurance companies’ investment regime in buildings and real estate developments, related to minimum capital requirements for commercializing insurance products, contained in the General Insurance Activity Regime (the “RGAA”).
Specifically, the Resolution modifies the concepts under which buildings must be registered, which have been narrowed down to buildings for own use, for rent or for sale. Additionally, the Resolution specifies the requirements for the computability of imperfect ownerships and for the valuation of buildings, including the possibility of valuating and estimating the useful life of the buildings through the Bank of the City of Buenos Aires.
In addition, the Resolution establishes the requirements for the computability in technical ratios of securities, certificates or other marketable securities issued by infrastructure and real estate development funds. The first requirement is the authorization of public offering by the National Securities Commission (Comisión Nacional de Valores). In the event of lack of such approval, the trust, the trustee, or both of them, must be registered before the National Securities Commission and have a risk rating with sufficient standard results of professionalism and performance in the assessed aspects, as long as the SSN is provided with the information contained in paragraph 1) b. of section 35.16 of the RGAA. If none of these requirements are met, only insurance companies operating in life insurance with savings or retirement may compute these assets in technical ratios.
The amendments introduced will be effective as from the publication of the Resolution on the Official Gazzette, notwithstanding that the amendments regarding maximum application percentages under which buildings may be computed for minimum capital requirements (sections 30.2.1 and 35.8.1 of the RGAA) shall be applicable to the financial statements closing on September 30th, 2024.
