Legal Environment


Main Insurance Legislation is the Insurance Business Act 1998 and the Companies Act, 1995. These are supplemented by the various legal notices that cover all the European Union Insurance directives. Additionally, Malta has also enacted Protected Cell Company (PCC) Legislation and Incorporated Cell Company (ICC) Legislation.


Malta Financial Services Authority.

Minimum Capital:

Long Term Business
A. Pure reinsurer €3,400,000
B. Affiliated (captive) reinsurer €1,200,000
C. Other cases €3,700,000

General Business
A. Insurer - all classes (excl. liability) €2,500,000
B. Insurer - all classes (incl. liability) €3,700,000
C. Affiliated (captive) reinsurer €1,200,000
D. Pure non-affiliated reinsurer €3,400,000

As indicated, these are the minimum requirements which are subject to company specific solvency considerations (level of business written and overall claims experience of the company). Such considerations could dictate a higher capital requirement.

Solvency Requirement:

Currently in accordance with EU Solvency I Directive, but will be adopting the Solvency II regime in line with the EU Solvency II Directive.


Insurance companies are required to maintain adequate technical provisions covered at all times by equivalent admissible assets.