, Philippines
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New PH rule allows insurers and reinsurers to invest in infrastructure projects

Investments may be made through equity or debt.

Insurers and reinsurers in the Philippines can now invest in infrastructure projects under the Philippine Development Plan, its Insurance Commission announced.

Investments may be made through equity, where companies directly provide capital, or debt, where they act as financiers or sponsors.

Life insurers may allocate up to 40% of their admitted assets, whilst non-life insurers and reinsurers may use up to 40% of their net worth for such investments.

Prior approval is required, with submissions including board resolutions, latest audited financial statements, government approval of the project, financial projections, stress testing, and/or scenario analysis to assess resilience against macroeconomic stresses.

Risk charges are set at 9% for equity investments, while the charge for debt instruments is 6%.

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