Edwin Northover

On 26 February 2025, the National Financial Regulatory Administration of China (the "NFRA") issued a notice on matters relating to investment in insurance companies by Hong Kong and Macau financial institutions (the "NFRA Notice"), according to which, starting from 1 March 2025, a Hong Kong or Macau financial institution would no longer be required to have total assets of US$2 billion or more at the end of the most recent year to invest in mainland insurance companies.

On 23 May 2025 the new Hong Kong redomiciliation regime for insurers became effective through amendments to the Companies Ordinance, Insurance Ordinance and other laws and guidelines. Before an overseas-based insurer with a Hong Kong branch approaches the Insurance Authority (the "IA") with a redomiciliation proposal, it should consider the legal and regulatory position in its jurisdiction of incorporation and the jurisdictions where any other branch offices are located.

In February 2025, the Indian government announced that the foreign ownership limit for the insurance sector would be increased from 74% to 100% (the "New FDI Limit"). This is a highly anticipated milestone for the liberalisation of the Indian insurance industry and is expected to result in increased M&A activity in the sector. However, the new limit will not take effect until revised legislation and regulations reflecting the change have been put in place.