Insurance Companies

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Insurance Companies in Malta

The Malta Financial Services Authority may grant authorisation to:

  • a company whose head office is in Malta to carry on the business of insurance in or from Malta, or in or from a country outside Malta;
  • a company whose head office is in a country outside Malta to carry on the business of insurance in or from Malta.

Own Funds Requirements

The required Own Funds of an insurance company which must be unencumbered at all times should amount to:

  • the value of not less than 3,500,000 Euro in respect of long term business;
  • the value of not less than 3,500,000 Euro in respect of general business or 2,300,000 Euro where the busiess of insurance is restricted to classes 1 to 9, 16 to 18;
  • the value of not less than 3,200,000 Euro in respect of the business of reinsurance;

In respect of combined:

  • long term business direct and reinsurance- 3,500,000 Euro;
  • general business direct and reinsurance- 3,200,000 Euro; or
  • long term business of reinsurance and general business of reinsurance -6,400,000 Euro

The Malta Financial Services Authority may also require such higher amount as it may consider appropriate. The Own Funds may comprise:

  • the paid up share capital of the company which shall be equivalent to not less than 50% of the value of the own funds of the company;
  • reserves other than reserves corresponding to the technical provisions and where applicable, the equalisation reserve;
  • retained earnings;
  • preferential share capital, subordinated loan capital and securities (subject to restrictions).

Solvency Margin for Insurance Companies 

Companies authorised to carry on business of insurance in Malta are to maintain at all times a minimum margin of solvency. For general business this is the greater of the amount calculated on a premium basis and the amount calculated on the claims basis.

With regards to long term business, a different formula is adopted for the calculation of the minimum solvency margins for each class of long term business.

The minimum solvency requirement must be covered by net admissible assets. The valuation of assets and the determination of liabilities are prescribed by the relative regulations. There are both qualitative and quantitative restrictions on the value of assets.

The Malta Financial Services Authority also employs a risk based assessment of the amount of cover for the minimum solvency margin requirement.

Guarantee Fund for Insurance Companies 

An insurance company must maintain a guarantee fund of an amount of assets which shall not be less than the Minimum Guarantee Fund calculated in accordance with the relative regulations.

Technical Provisions for Insurance Companies 

An essential requirement for insurance companies is the maintenance of adequate technical provisions including mathematical provisions. Technical provisions must be supported by equivalent and matching assets. The spread of assets requirements for solvency purposes apply to both assets covering technical provisions and shareholders’ assets.

Protected Cell Companies

An insurance company may be registered as or convert to a Protected Cell Company (PCC).


A body corporate authorised in another jurisdiction to carry on any insurance business (including AICs) or to provide insurance management or broking services, may be authorised by the Malta Financial Services Authority to continue as a company registered or constituted in Malta and operate under Maltese insurance legislation, subject to certain criteria being satisfied.

Similarly, the Malta Financial Services Authority is empowered to authorise a Maltese registered and licensed company to be continued as a body corporate registered, incorporated or constituted under the laws of a country outside Malta, subject to certain criteria being satisfied.

The firm is actively involved in the provision of advice and assistance to companies authorised to carry on insurance business in or from Malta and to persons intending to commence insurance operations in or from Malta, including assistance in obtaining the relevant licences, authorisations or enrolments; regulatory compliance and on-going assistance in the provision of legal advice related to insurance issues.