Insurance Company Regulatory Requirements

3 Months Ended

Mar. 31, 2013

Insurance Company Regulatory Requirements [abstract]

Insurance Company Regulatory Requirements

Dividend Restrictions and Capital Requirements

AGC is a Maryland domiciled insurance company. As of March 31, 2013, the amount available for distribution from AGC during 2013 with notice to, but without prior approval of, the Maryland Commissioner of Insurance under the Maryland insurance law is approximately $91 million.

AGM is a New York domiciled insurance company. Based on AGM’s statutory statements to be filed for First Quarter 2013, the maximum amount available for payment of dividends by AGM without regulatory approval over the 12 months following March 31, 2013, is approximately $186 million.

As of March 31, 2013, AG Re had unencumbered assets of $210 million, representing assets not held in trust for the benefit of cedants and therefore available for other uses. Based on regulatory capital requirements AG Re currently has $617 million of excess capital and surplus. AG Re, as a Class 3B insurer, is restricted from distributing capital or paying dividends by the following regulatory requirements:


•	Dividends shall not exceed outstanding statutory surplus or $440 million.


•	Dividends on annual basis shall not exceed 25% of its total statutory capital and surplus (as set out in its previous years' financial statements ) or $321 million unless it files (at least seven days before payment of such dividends) with the Bermuda Monetary Authority an affidavit stating that it will continue to meet the required margins.


•	Capital distributions on an annual basis shall not exceed 15% of its total statutory capital (as set out in its previous years' financial statements ) or $127 million, unless approval is granted by the Bermuda Monetary Authority.


•	Dividends are limited by requirements that the subject company must at all times (i) maintain the minimum solvency margin and the Company's applicable enhanced capital requirements required under the Insurance Act of 1978 and (ii) have relevant assets in an amount at least equal to 75% of relevant liabilities, both as defined under the Insurance Act of 1978.

Dividends Paid

By Insurance Company Subsidiaries



	First Quarter
	2013		2012
	(in millions)
Dividends paid by AGC to AGUS	$	—	$	15
Dividends paid by AGM to AGMH	—		30
Dividends paid by AG Re to AGL	40		30