CHAPTER 411-A REGULATION OF INVESTMENTS OF LIFE INSURANCE COMPANIES
Section 411-A:29
411-A:29 Foreign Investments and Foreign Currency Exposure. –
I. Subject to the limitations of RSA 411-A:6, an insurer may acquire foreign investments, or engage in investment practices with persons of or in foreign jurisdictions, of substantially the same types as those that an insurer is permitted to acquire under this chapter, if, as a result and after giving effect to the investment:
(a) The aggregate amount of foreign investments then held by the insurer under this subsection does not exceed 20 percent of its admitted assets; and
(b) The aggregate amount of foreign investments then held by the insurer under this subparagraph in a single foreign jurisdiction does not exceed 10 percent of its admitted assets as to a foreign jurisdiction that has a sovereign debt rating of SVO 1 from the Securities Valuation Office of the National Association of Insurance Commissioners or 3 percent of its admitted assets as to any other foreign jurisdiction.
II. Subject to the limitations of RSA 411-A:6, an insurer may acquire investments, or engage in investment practices denominated in foreign currencies, whether or not they are foreign investments acquired under paragraph I, or additional foreign currency exposure as a result of the termination or expiration of a hedging transaction with respect to investments denominated in a foreign currency, if:
(a) The aggregate amount of investments then held by the insurer under this subparagraph denominated in foreign currencies does not exceed 10 percent of its admitted assets; and
(b) The aggregate amount of investments then held by the insurer under this subparagraph denominated in the foreign currency of a single foreign jurisdiction does not exceed 10 percent of its admitted assets as to a foreign jurisdiction that has a sovereign debt rating of SVO 1 from the Securities Valuation Office of the National Association of Insurance Commissioners or 3 percent of its admitted assets as to any other foreign jurisdiction.
III. In addition to investments permitted under paragraphs I and II, an insurer that is authorized to do business in a foreign jurisdiction, and that has outstanding insurance, annuity, or reinsurance contracts on lives or risks resident or located in that foreign jurisdiction and denominated in foreign currency of that jurisdiction, may acquire foreign investments respecting that foreign jurisdiction, and may acquire investments denominated in the currency of that jurisdiction, subject to the limitations of RSA 411-A:6. However, investments made under this paragraph in obligations of foreign governments, their political subdivisions, and government sponsored enterprises shall not be subject to the limitations of RSA 411-A:6 if those investments carry an SVO rating of 1 or 2 from the Securities Valuation Office of the National Association of Insurance Commissioners. The aggregate amount of investments acquired by the insurer under this paragraph shall not exceed the greater of:
(a) The amount the insurer is required by the law of the foreign jurisdiction to invest in the foreign jurisdiction; or
(b) One hundred fifteen percent of the amount of its reserves, net of reinsurance, and other obligations under the contracts on lives or risks resident or located in the foreign jurisdiction.
IV. In addition to investments permitted under paragraphs I and II, an insurer that is not authorized to do business in a foreign jurisdiction, but which has outstanding insurance, annuity, or reinsurance contracts on lives or risks resident or located in that foreign jurisdiction and denominated in foreign currency of that jurisdiction, may acquire foreign investments respecting that foreign jurisdiction, and may acquire investments denominated in the currency of that jurisdiction subject to the limitations of RSA 411-A:6. However, investments made under this paragraph in obligations of foreign governments, their political subdivisions, and government sponsored enterprises shall not be subject to the limitations of RSA 411-A:6 if those investments carry an SVO rating of 1 or 2 from the Securities Valuation Office of the National Association of Insurance Commissioners. The aggregate amount of investments acquired by the insurer under this paragraph shall not exceed 105 percent of the amount of its reserves, net of reinsurance, and other obligations under the contracts on lives or risks resident or located in the foreign jurisdiction.
V. Investments acquired under this section shall be aggregated with investments of the same types made under all other sections of this chapter, and in a similar manner, for purposes of determining compliance with the limitations, if any, contained in the other sections. Investments in obligations of foreign governments, their political subdivisions, and government sponsored enterprises of these persons, except for those exempted under paragraphs III and IV, shall be subject to the limitations of RSA 411-A:6.