Letter to the New York Department of Financial Services concerning proposed amendments to Insurance Regulation 52, Holding Companies

SUMMARY

In a letter to the New York Department of Financial Services, the Committee on Insurance Law provided comments on a proposed amendment to 11 NYCRR 80-1 (Insurance Regulation 52) as it relates to Holding Companies. The letter noted that the intent of the amendment is to codify the Department’s actions in the acquisitions of Sun Life New York and Aviva New York by private equity acquirers pursuant to applications under Section 1506(a) of the New York Insurance Law. The letter expresses concern that the Department is blurring the line between the oversight of acquisitions and its regulation of ongoing insurance company capital adequacy. Blurring this line could result in dissuading potential sources of new capital investment for New York-based insurers, which could adversely affect the insurance marketplace and the availability or affordability of certain life insurance and annuity products in this State. The letter includes a number of recommendations addressed to that concern.