Any company intending to acquire any entity supervised by the Insurance Regulatory Unit is required to get the prior approval of IRU.
In this regard, the company intending to acquire any such entity shall appoint actuary licensed by IRU to inspect the insurance operation criteria, benefits, and limitations to verify their integrity and enforceability, provided that actuary’s certificate in this regard shall be submitted with the economic feasibility study required as a part of the documents of request for approval of acquisition offer.
It is worth noting that “Baker Tilly” is actuary licensed by Insurance Regulatory Unit.
What are the legal and regulatory mandates that require companies to get the actuary’s certificate on the authenticity of insurance operation criteria, benefits, and limitations for acquisition purposes?
Article 104 of the Executive Regulations of Law No. 125 of 2019 regarding the regulation of insurance stipulates the following:
The prior approval of the IRU shall be obtained for any person intending to submit an acquisition offer or enter into arrangements or agreements that lead to effective control over an entity regulated by the IRU, prior to implementing these arrangements or agreements, according to the following procedures:
- An economic feasibility study and a five-year business plan, which must include, at a minimum, the following:
- A statement of technical criteria of insurance operations and certificate issued by an actuary indicating that the insurance operation criteria, benefits, and limitations are authentic and enforceable.
What is the added value to business entities from engaging the services of actuary’s certificate on the authenticity of insurance operation criteria, benefits, and limitations for acquisition purposes?
- Ensure that the IRU requirements regarding the request for prior approval of acquisition offer are met.
- Ensure that the company adheres to the legal requirements for completing the acquisition process.
- Enhance the company’s ability to increase its market share.
What are the services provided by Baker Tilly?
Prepare and issue actuary’s certificate on the authenticity of insurance operation criteria, benefits, and limitations for acquisition purposes.
- Actuarial Technical Reserves
- Actuarial Report on Employee Benefits
- Actuary’s Report on Mergers
- Actuary’s Report on Examining the Financial Position
- Actuary’s Certificate of Authenticity of Insurance Operations for Licensing Purposes
- Actuary’s Certificate for Licensing a Foreign Insurer
- Preparing Actuarial Study on Technical Reserves
- Actuarial Attestation of Financial Position of Insurance Companies
- IFRS 17 Engine (Calculator) Managed Service