A Federal Reserve Board ("FRB") proposal to establish capital requirements for certain supervised insurance companies was published in the Federal Register. Comments must be submitted by December 23, 2019.
As previously covered, the proposal would implement a framework, known as the "Building Block Approach," for risk-based capital requirements for depository institution holding companies that are significantly involved in the insurance industry. The FRB stated that the Building Block Approach is intended to (i) determine a company's enterprise-wide capital requirement and (ii) adjust and aggregate existing legal entity capital requirements.
The FRB proposal also includes:
risk-based capital requirements for these holding companies that would...