1- A foreign company specialized and licensed in its country may open branches in the State to practice reinsurance business after obtaining the necessary license and registration from the Authority.

2. A foreign company specialized in reinsurance shall not be permitted to operate within the State through an agency, taking into consideration the special case of the underwriting Syndicates and P & I Clubs..

3. The capital of the parent company in its home country shouldn’t be less than the percentage determined in sub Article (1) of Article (12) of these instructions.

(4) The Board may exclude the company requesting the opening of a branch or branches thereof in the country from the provisions of item (3) above if the total of its free reserves plus its paid capital is not less than the amount mentioned in item (1) of Article (12) For local, regional or international reasons.

1- A foreign company wishing to open a branch inside the State to practice reinsurance business should have the following classification:

• The company should have a classification not less than the minimum classification specified in the table below or the equivalent classification ratings of other international classification bodies recognized by the Authority, according to the latest classification issued by the accredited body:

B) The foreign company shall maintain its classification during the period of its license.

C) The classification must be granted on the basis of complete internal information The classification granted based only on published information shall not be accepted.

(D) The foreign company should not be incorporated in a State having lower classification than that stipulated in clause (a) of the term herein.

2. The Board may grant the company requesting the license an exception from the provisions of paragraph (1) above for local, regional or international considerations or for considerations relating to the company itself.

3. Any additional conditions or requirements determined by the Authority.

To obtain the license from the Authority and to be registered in the Authority’s register, it is necessary to obtain the preliminary approval of the Board and then complete the legal proceedings with the other official bodies and obtain the final approval from the Director General.

In order to obtain the initial approval of the Board:

1. The following documents and information must be submitted:

   A. A certified copy of the company registration certificate in its country of origin.

   B. A copy of the license to practice the reinsurance business in the state which the parent company is holding its nationality issued by a regulatory and supervisory governmental body and duly authenticated and attested and including the approved types and classes of reinsurance the company is licensed to undertake.

   C. A certified certificate showing the legal form of the company and whether it is an independent company or a subsidiary company.

   D. A decision by the administrative board of the parent company to open the branch.

   E. A certified copy of the Company's Memorandum of Incorporation and Articles of Association.

   F. A copy of the balance sheet and financial statements of the parent company for the three years preceding the submission of the application, audited by a licensed auditing office.

   G. Report on the Parent Company's reinsurance activity.

   H. A statement clarifying the nature of the company's relation with the branch and the powers endowed therewith.

   I. A written approval by the regulatory and supervisory governmental body in the country of origin to open a branch of the company in the State.

   J. The rules adopted by the company for Compliance, Anti- Money Laundering and combating the financing of terrorism.

   K. List of names of the Chairman and members of the Board of Directors.

   L. Submitting the feasibility study.

   M. The work plan for the first three years of the company branch and the types and classes of reinsurance to be transacted and whether the acceptances will be locally, regionally or internationally.

   N. A certificate by an actuary that includes the adequacy of the Technical Provisions and prospects of the company’s compliance with the Solvency Margin and the Minimum Guarantee Fund.

   O. Approvals and other licenses to be obtained in accordance with the bylaws, laws and regulations in force.

   P. Copies of the specimens of treaties that the company will conclude in the future with insurance services providers, including reinsurance brokers.

   R. The sum of funds to be entered into the State and kept in it to meet the obligations of the company and the administrative cost of the business.

   S. Name of appointed person for the management of the branch, the senior officers and their qualifications and their practical experience in the field of insurance and reinsurance.

   T. Any other data or documents determined by the bylaws and regulations issued by virtue of law or determined by the Board which are deemed necessary for considering the application.

2. The Director General shall submit the application to the Board of Directors along with his opinion, where the Board shall decide whether to accept or reject the application.

1. In case the board issued the initial approval, the Company shall be notified thereof and shall be requested to take the following actions:

1. Appointing a branch manager and senior officers who meet the required conditions and the powers granted to them.
2. Having an office of the company in the state.
3. Appointing or contracting with an actuary and a legal consultant and contracting with an external auditor.

2. After fulfilling the requirements and submitting the required documents and data, the Board shall issue its decision with the final approval and licensing the Company and shall register it in the register as a branch of a foreign company.

3. In case the Board rejects the request, the Director General shall inform the company applying for the license of the decision of the Board. The company shall be entitled to appeal the decision with the Board within (30) thirty days from its notification of the decision, and Board’s decision shall be final.

1- The registration period is one year and ends at the end of December. In case the registration is effective during the year, the first registration period shall commence from the date of the registration and end at the end of the same year.

2. The registration shall be renewed annually through Electronic Means or other means adopted by the Authority, after submission of the following information and documents:

1. Changes in the Company's underwriting policy in the following year.
    
2. Any fundamental changes in the parent company's status during the past year.
    
3. Any changes made to the branch manager or senior officers and their powers.
    
4. Any changes for the company’s auditor, actuary or legal consultant.
    
5. Submitting a copy of the estimated budget for the subsequent financial year.

A foreign reinsurance company licensed by the Authority and registered in the Authority’s register as a branch of a foreign company may open other branches within the State after obtaining the approval of the Director General.