What is the minimum solvency capital (MSC)?

The minimum solvency capital at the end of a reporting period may not be less than 10% of the total annual premiums, less cancellations, written during the 12-month period preceding the reporting period. The assessment of the solvency capital factors-in the adjusted retained earnings, following the review performed by the ICC.

The minimum solvency capital for Lebanese companies is assessed taking into consideration the paid-up capital, the retained earnings and the legal reserves. For foreign branches, it is the sum of the guarantees blocked in favor of the MOET.

Legal references: Insurance Law, article 27.