LABUAN RE-INSURANCE LICENSE

A Labuan reinsurance business is defined as an insurance business whereby the reinsurer assumes a part of the liability under an original contract of insurance of another insurer or reinsurer. A Labuan reinsurer may be conducting either a general or life reinsurance business.

1. Applicant must maintain a minimum paid-up capital or working funds with a bank in Labuan amounting to MYR 10 million or its equivalent in any foreign currency.
2. Applicant must be a member of the Labuan International Insurance Association.
3. Applicant must provide a letter of guarantee or undertaking from the parent company to Labuan FSA.
4. An applicant for a licence to carry on a reinsurance business in Labuan must:
   • establish an operational management office in Labuan managed by a management team that has adequate knowledge and expertise in the insurance business, or
   • appoint a licensed Labuan underwriting manager.
5. The appointment of any person in control, director or principal officer (PO) of a Labuan reinsurer must obtain prior approval from Labuan FSA. Notwithstanding, Labuan reinsurers that are established as a branch are not required to obtain approval on the appointment of their directors.
6. The person in control, director and PO of a Labuan reinsurer must be fit and proper persons and shall not be subjected to any adverse reports from any reliable sources.