Ukraine National Bank to require investor guarantee letters in insurer recovery plans
An insurer shall submit to the National Bank of Ukraine (NBU) a letter of intent from an investor as an integral part of the insurer's business recovery plan or financing plan if the measures envisaged by them are to be implemented using investors' funds.
The National Bank of Ukraine is set to require investor guarantee letters in insurer recovery plans, according to a draft resolution currently under public discussion. This new requirement will apply to letters of intent from investors, included as part of the insurer's business recovery plan or financing plan. The resolution was proposed by the National Bank of Ukraine (NBU) and aims to ensure that insurers have the necessary financial backing to implement their recovery plans.
The letter of guarantee will be mandatory if the recovery plan involves an increase in the insurer's authorized capital, the purchase of non-eligible assets for regulatory capital calculations, or the raising of funds through subordinated debt. In the guarantee letter, the investor must confirm their commitment to carrying out the specified measures within the stipulated timelines, provide the sources of funds, and submit necessary documentation to support the plan's approval and implementation.
The NBU is currently accepting comments and proposals on the draft resolution until October 5, 2026.
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