Oman - CMA places limits on overseas investments by ins. Firms
Friday, 04 09 2021, Category: Insurance and Reinsurance, Country: Oman
The Capital Market Authority (CMA) has issued an administrative decision specifying the credit rating for the investment of the assets of insurance and Takaful companies outside the Sultanate.
The decision obliged the companies to limit the investment of their assets outside the Sultanate to the countries, financial institutions and instruments with a credit rating not less than – BBB in accordance with Standard & Poor’s (S&P) rating or an equivalent.
The move comes to enhance the investments of the insurance sector and to deal with the economic changes and the ability of the companies to face the investment challenges in addition to the economic value of the local market and the role of insurers and their saving schemes.
The decision is based on Article 5 of the Rules for Investment of the Assets of Insurance and Takaful Companies which confer on the CMA the power to specify the minimum limit of credit rating for investment instruments as well as the countries and financial institutions.
Source: Oman Observer