What are the minimum guarantees requirements?

Insurance companies should maintain guarantees as follows, subject to a minimum of 750m LBP:

  • 1,200m LBP for each of the life, general accident, and credit branches

  • 350m LBP for each of the fire and marine branches

  • 750m LBP for the agriculture branch

The company may represent guarantees using cash, treasury bills, real estate or other approved financial securities.

  • Cash guarantees may be deposited in foreign currencies

  • Cash guarantees or other approved securities should be deposited and blocked with Lebanese-based banks

  • Real estate guarantees may not exceed 40% of the total required amount. For these guarantees, a special flag is placed on the official real estate registry

The requirement on branches of foreign companies is twice the standard requirement.

Legal references: Insurance Law, article 26.