INSURANCE BUSINESS (FEES) REGULATIONS *

SUBSIDIARY LEGISLATION 403.04

INSURANCE BUSINESS (FEES) REGULATIONS *

1st January, 2014 †

LEGAL NOTICE 53 of 2014, as amended by Legal Notice 397 of 2015.

The title of these regulations is the Insurance Business

(Fees) Regulations.

Amended by

L.N. 397 of 2015.

(Regulations 3 to 9)

Application, Permit and Annual Supervisory Fees

Part I

Application and Permit Fees

First Column

Second Column

Third Column

Fees

Minimum Fee

€

€

Group A

Application for authorisation to carry on -

1. Business of insurance only/ business

of reinsurance only/ business of

insurance and reinsurance

(a) Long term business

500 per class

5,000

(b) General business

300 per class

3,500

2. Business carried on by a captive

5,000

insurance undertaking and captive

reinsurance undertaking

3. Business of reinsurance in the classes

already authorised for business of

insurance or business of insurance in

t h e classes already authorised for

business of reinsurance

(a) Long term business

250 per class

2,500

(b) General business

150 per class

1,750

Group B

Application for authorisation to act as an

approved auditor -

(a) Individual

(b) Audit firm

Group C

Application for Permits to -

1. Open a branch in Malta

2. Cease to carry on and subsequently to

service -

(a) Business of insurance only/

bu s i n e s s o f r e in s u r a n c e o n l y/

business of insurance and

reinsurance

(i) Long term business

400 per Class

2,000

(ii) General business

150 per Class

2,000

(b) Business carried on by a captive

2,500

insurance undertaking and

captive reinsurance undertaking

INSURANCE BUSINESS (FEES)

Group D

Application for authorisation to -

1. Carry on business of insurance as a

6,500

cell company

2. Create of a new cell to carry on

2,500

business of insurance

3. Carry on business as a reinsurance

1,000

6,500

special purpose vehicle

per contract

4. Assume additional risk transfer

1,000

arrangements by an authorised

per contract

reinsurance special purpose vehicle

Group E

Approval of a scheme to transfer general

0.02% of Gross

3,250

business

Premium of the

last financial year

Part II

Annual Supervisory and Annual Permit Fees

First Column

Second Column

€

1. Annual supervisory fee for authorisation to carry on

6,500

business by a captive insurance undertaking and captive

reinsurance undertaking

2. Annual supervisory fee for Cell companies that do not

3,250

issue insurance contracts from the non-cellular section

of the cell company

3. Annual supervisory fee for Cells carrying on exclusively

3,250

business of affiliated insurance

4. Annual supervisory fee for Reinsurance Special Purpose

6,500

Vehicles

5. Annual supervisory fee to continue to act as an approved

auditor

(a) Individual

(b) Audit firm

6. Permit fees to service

(a) General business

2,000

(b) Business carried on by a captive insurance

2,000

undertaking and captive reinsurance undertaking

(c) Business of reinsurance (solely and exclusively)

2,000

7. Permit fees to maintain a branch in Malta

Part III

Annual Supervisory fees for undertakings required to submit

annual quantitative templates

First Column

Second Column

Gross Premium Written

€

Up to and including €1 million

3,250

(minimum fee)

Over €1 million up to and including €2.5 million

7,500

Over €2.5 million up to and including €3.5 million

8,500

Over €3.5 million up to and including €5 million

10,000

Over €5 million up to and including €7.5 million

14,000

Over €7.5 million up to and including €12 million

16,250

Over €12 million up to and including €25 million

19,500

Over €25 million up to and including €35 million

26,000

Over €35 million up to and including €50 million

29,000

Over €50 million up to and including €70 million

31,500

Over €70 million up to and including €100 million

36,500

Over €100 million up to and including €150 million

43,000

In excess of €150 million

50,000

Part IV

Annual Supervisory fees for European Insurance Undertakings

First Column

Second Column

Gross Premium Written

€

Up to and including €2.5million

6,000

(minimum fee)

Over €2.5 million up to and including €3.5 million

7,000

Over €3.5 million up to and including €5 million

8,250

Over €5 million up to and including €7.5 million

11,500

Over €7.5 million up to and including €12 million

13,000

Over €12 million up to and including €25 million

17,000

In excess of €25 million

25,000

(1)

In these regulations, unless the context otherwise

requires

"the Act" means the Insurance Business Act;

"authorisation" means an authorisation issued or held, or to be

issued or held, under the Act to carry on business of insurance or to

carry on business as a reinsurance special purpose vehicle or to act

as an approved auditor;

"branch" includes -

(a) in the case of an undertaking whose head office is in

Malta carrying on business of insurance, any premises

of the undertaking, other than the undertaking’s

principal place of business, from where the

undertaking carries on business of insurance; and

(b) in the case of a third country insurance undertaking or a

third country reinsurance undertaking carrying on

business of insurance in or from Malta, any premises of

the undertaking in Malta, other than the undertaking’s

principal place of business, from where the undertaking

carries on business of insurance;

"cell" shall have the same meaning as is assigned to it in the

Companies Act (Cell Companies Carrying on Business of

Insurance) Regulations;

"cell company" shall have the same meaning as is assigned to it

in the Companies Act (Cell Companies Carrying on Business of

Insurance) Regulations;

"competent authority" means the Malta Financial Services

Authority established by the Malta Financial Services Authority

Act;

"European insurance undertaking" shall have the same meaning

as is assigned to it in the European Passport Rights for Insurance

Undertakings Regulations;

"gross premiums" means premiums after deduction of discounts,

refunds and rebates of premium but before deduction of premiums

for reinsurance ceded and before deduction of commissions

*These Regulations have been repealed by Legal Notice 368 of 2024.

†see regulation 1(2) of these Regulations, as originally promulgated.

payable by the undertaking;

"gross premiums receivable" means -

(a) in the case of an undertaking whose head office is in

Malta, carrying on business of insurance, the gross

amount of premiums written in respect of its aggregate

business of insurance;

(b) in the case of a third country insurance undertaking or

a third country reinsurance undertaking, carrying on

business of insurance in Malta through a branch, the

gross amount of premiums written in respect of the

aggregate business of insurance carried on in Malta by

the branch;

(c) in the case of an undertaking holding a permit issued

under article 39 of the Act servicing solely and

exclusively its long term business carried on in or from

Malta, the gross amount of premiums written in

respect of its aggregate business serviced by that

undertaking in Malta in accordance with that permit,

and

in each case, required to be included in the annual information to be

submitted in accordance with Insurance Rules issued pursuant to

article 32 of the Act;

"incorporated cell" shall have the same meaning as is assigned to

it in the Companies Act (Incorporated Cell Companies Carrying on

Business of Insurance) Regulations;

"incorporated cell company" shall have the same meaning as is

assigned to it in the Companies Act (Incorporated Cell Companies

Carrying on Business of Insurance) Regulations;

"non-cellular company” shall have the same meaning as is

assigned to it in the Companies Act (Incorporated Cell Companies

Carrying on Business of Insurance) Regulations;

"permit" means a permit issued or held, or to be issued or held,

pursuant to or under any provision of the Act;

"reinsurance special purpose vehicle" shall have the same

meaning as is assigned to it in the Reinsurance Special Purpose

Vehicles Regulations;

"to service" in relation to unexpired policies, includes the run-

off of such policies;

"the specified date" shall be construed in accordance with article

40 of the Act,

and words and expressions used in these regulations which are also

used in the Act but which are not defined herein shall have the

same meaning as in the Act.

(2) In these regulations, unless explicitly excluded, business of

insurance includes business of reinsurance thereof.

Any person -

(a) applying for an authorisation in respect of a matter of a

description specified in the First Column of Group A

or Group B or Group D of Part I of the Schedule; or

(b) applying for a permit in respect of a matter of a

description specified in the First Column of Group C

of Part I of the Schedule; or

(c) applying for approval in respect of a matter of a

description specified in the First Column of Group E

of Part I of the Schedule,

shall upon submission of the application, irrespective of whether

the application is eventually accepted or not, pay to the competent

authority the fee relating to the matter of the description to which

the application relates specified in the Second Column of the

respective Group of that Part of the Schedule subject, where

applicable, to the payment of the minimum fee relating to the

matter of that description specified in the Third Column of that

respective Group

Provided that, where a person is already authorised to carry

on business of insurance and such person applies for the

authorisation of additional classes of business in the same business

as already authorised, the applicable fee shall be that relating to the

matter of the description to which the application relates as

specified in the Second Column of Part I of the Schedule, and the

minimum fee shall not apply in such case.

Any person who, on the 31st December of each year, holds

an authorisation or permit in respect of a matter of a description

specified in Part II of the Schedule shall, during the month of

January of the following year, pay to the competent authority the

annual supervisory or permit fee, as the case may be, in respect of a

matter of that description held by the person concerned specified

in the Second Column of Part II of the Schedule

Provided that, the first annual supervisory fee shall be due

immediately once an authorisation or permit is granted. The first

annual supervisory fee payable shall be proportionate to the period

remaining between the date of granting of the authorisation or

permit and the end of that calendar year.

(1) Subject to the provisions of sub-regulations (2) and (4),

an authorised insurance undertaking and an authorised reinsurance

undertaking carrying on business of insurance which is required to

submit annual quantitative templates in accordance with Insurance

R u l e s i s s u e d p u r s u a n t t o ar t i c l e 3 2 o f th e A c t, s ha ll , u p on

submission of the annual quantitative templates, pay to the

competent authority the annual supervisory fee established in Part

III of the Schedule on the basis of the gross premiums written

declared in the annual quantitative templates

Provided that, the first annual supervisory fee shall be due

immediately once an authorisation is granted and shall be equal to a

proportion of the minimum fee relating to the matter of that

description specified in the Third Column of Part I of the Schedule.

The first annual supervisory fee due shall be proportionate to the

period remaining between the date of the granting of the authorisation

and the date established for the submission of the annual quantitative

templates in accordance with Insurance Rules issued pursuant to

article 32 of the Act..

(2)

This regulation does not apply -

(a) in the case of a captive insurance undertaking or captive

reinsurance undertaking;

(b) in the case of an undertaking whose business is servicing

solely and exclusively general business.

(3) For the purposes of this regulation and Part III of the

Schedule, servicing, in relation to general business, is deemed to be

effected on the first day immediately following the date of the first

anniversary of the specified date shown in the permit to which the

business serviced, or being serviced, relates.

(4) In the case of an undertaking whose business is servicing

solely and exclusively long term business

(a) where the gross premiums written by the undertaking

in respect of that business for the previous calendar

year falls below the amount of and including twenty-

five thousand euro (€25,000), these regulations do not

apply;

(b) where the gross premiums written by the undertaking

in respect of that business for the previous calendar

year exceed the amount of twenty-five thousand euro

(€25,000), the fees under Part III of the Schedule shall

apply.

(Deleted by Legal Notice 397 of 2015).

There shall be paid to the competent authority by any

European insurance undertaking establishing a branch in Malta

under regulation 3 of the European Passport Rights for Insurance

and Reinsurance Undertakings Regulations, the annual supervisory

fee specified in Part IV of the Schedule. Such annual supervisory

fee shall be paid during the month of June of each year and shall be

calculated on the gross premiums written attributable to the

business of insurance carried on in Malta through the establishment

of a branch during the last calendar year

Provided that, the first annual supervisory fee shall be due

immediately upon the establishment of a branch in Malta. The first

annual supervisory fee payable shall be equal to a proportion of the

minimum fee established in Part IV of the Schedule. The fee

payable shall be proportionate to the period remaining between the

date of the establishment of the branch and the end of the following

June.

(1) Where an application is made by a company which will,

when formed or constituted, be authorised or, when converted, is an

insurance or reinsurance undertaking authorised under article 7 of

the Act, or where an application is submitted by the cell company

for the creation of a new cell to carry on business of insurance

pursuant to the Companies Act (Cell Companies Carrying on

Business of Insurance) Regulations, the applicant shall pay to the

competent authority -

(a) upon submission of the application to carry on

business of insurance as a cell company, irrespective

of whether the application is eventually accepted or

refused, the fee relating to the matter of the description

to which the application relates specified in the Second

Column of the respective Group of Part I of the

Schedule;

(b) upon submission of the application for the creation of

a cell, irrespective of whether the application is

eventually accepted or refused, the fee relating to the

matter of the description to which the application

relates specified in the Second Column of the

respective Group of Part I of the Schedule.

(2) When the annual quantitative templates are forwarded by

the cell company in accordance with Insurance Rules issued under

article 32 of the Act, there shall be paid by the said cell company to

the competent authority the annual supervisory fee in the following

manner

(a) if the cell company does not issue insurance contracts

from the non-cellular section of the cell company, the

fee specified in the Second Column of Part II of the

Schedule and, in addition, where such company carries

on business of insurance through its cells, for each

cell

(i)

where the cell carries on business of insurance,

other than business of affiliated insurance, the

fee specified in the Second Column of Part III of

the Schedule;

(ii) where the cell carries on exclusively business of

affiliated insurance, fee specified in the Second

Column of Part II of the Schedule; and

(b) if the cell company issues insurance contracts from the

non-cellular section of the cell company, the fee

specified in the Second Column of Part III of the

Schedule, and in addition, where such company carries

on business of insurance through its cells, for each

cell

(i)

where the cell carries on business of insurance,

other than business of affiliated insurance, the

fee specified in the Second Column of Part III of

the Schedule;

(ii)

where the cell carries on exclusively business of

affiliated insurance, fee specified in the Second

Column of Part II of the Schedule

Provided that, in each case, the first annual supervisory fee

as set out in this sub-regulation shall be due immediately once an

authorisation is granted and shall be equal to a proportion of the fee

established under the Second Column of Part II of the Schedule, or

the minimum fee under Part III of the Schedule, as the case may be.

The first annual supervisory fee due shall be proportionate to the

period remaining between the date of the granting of the

authorisation and the date established for the submission of the

annual quantitative templates.

(3) For the purposes of sub-regulation (2), "business of

affiliated insurance" shall have the same meaning as is assigned to

it by regulation 15 of the Companies Act (Cell Companies Carrying

on Business of Insurance) Regulations.

(1) Where, pursuant to the Companies Act (Incorporated

Cell Companies Carrying on Business of Insurance) Regulations an

application is made by -

(a) a company which shall be, when formed or constituted,

authorised or, when transformed, authorised to carry

on business of insurance as an incorporated cell

company or an incorporated cell in terms of article 7 of

the Act; or

(b) an incorporated cell company having no cells or an

incorporated cell which shall be, when transformed, a

non-cellular company authorised to carry on business

of insurance,

the applicant shall pay to the co mp eten t au tho ri ty the fees

applicable in terms of regulation 3.

(2) Where, pursuant to the Companies Act (Incorporated Cell

Companies Carrying on Business of Insurance) Regulations, an

application is made by an incorporated cell company having no

incorporated cells which shall be, when transformed, authorised as

a cell company, the company shall pay to the competent authority

the fees specified in regulation 3.

(3) When annual quantitative templates are forwarded in

accordance with Insurance Rules issued under article 32 of the Act by

an incorporated cell company and an incorporated cell, the

incorporated cell company and incorporated cell shall pay the

competent authority the fees determined in regulation 5.

None of the fees established as due in terms of these

regulations shall be refundable. Nor shall they be prorated, other

than the first annual supervisory fee, as established in regulations

4, 5, 7 and 8, and the first annual permit fee established in

regulation 6.

INSURANCE BUSINESS (FEES)