MAS Notice FHC-N133 on Valuation and Capital Framework

MAS Guidelines

Published March 31st, 2026

Detected March 23rd, 2026

Summary

The Monetary Authority of Singapore (MAS) has amended Notice FHC-N133 concerning the valuation and capital framework for designated financial holding companies that are licensed insurers. These amendments, effective March 31, 2026, introduce changes related to equity counter-cyclical adjustments, structured products, and infrastructure investments, as well as criteria for capital instruments.

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What changed

MAS Notice FHC-N133 has been amended to incorporate significant updates to the valuation and capital framework for designated financial holding companies operating as licensed insurers. Key changes include the proposed introduction of an equity counter-cyclical adjustment (CCA), revised capital treatments for structured products and infrastructure investments, and additional criteria for recognizing Additional Tier 1 (AT1) and Tier 2 capital instruments. These new criteria for capital instruments, which restrict sales to non-retail investors in Singapore, take effect on January 1, 2026.

Licensed insurers and their financial holding companies must review and implement these updated requirements. The amendments necessitate a review of internal valuation policies and capital adequacy calculations to align with the enhanced RBC 2 consolidation approach. Compliance with the new criteria for capital instruments is mandatory from January 1, 2026, and the broader framework changes are effective March 31, 2026. Failure to comply may result in regulatory action by MAS.

What to do next

Review and update valuation and capital adequacy policies to align with MAS Notice FHC-N133 amendments.
Ensure compliance with new criteria for AT1 and Tier 2 capital instruments, including restrictions on retail sales from January 1, 2026.
Incorporate revised capital treatments for structured products and infrastructure investments by March 31, 2026.

Source document (simplified)

Decrease font size Increase font size Print this page Notices Last Revised Date: 16 March 2026

Notice FHC-N133 on Valuation and Capital Framework for Designated Financial Holding Companies (Licensed Insurer)

Notice FHC-N133 sets out the valuation and capital requirements for a Designated Financial Holding Company (Licensed Insurer) based on the enhanced valuation and capital framework (“RBC 2”) consolidation approach.
- Valuation and Capital
Applies to: Direct Insurer (Life), Direct Insurer (General), Direct Insurer (Composite), Reinsurer (Life), Reinsurer (General), Reinsurer (Composite), Financial Holding Company (Insurance)
View Notice Notice FHC-N133 on Valuation and Capital Framework for Designated Financial Holding Companies (Licensed Insurer) (2.81 MB)

16 March 2026 MAS Notice FHC-N133 (2.81 MB)
MAS Notice FHC-N133 Amendment 2026 takes effect on 31 Mar 2026 (2.84 MB)
08 December 2025 MAS Notice FHC-N133 (2.42 MB)
MAS Notice FHC-N133 Amendment 2025 (2.33 MB) takes effect on 1 January 2026.
15 November 2023 Notice FHC-N133 on Valuation and Capital Framework for Designated Financial Holding Companies (Licensed Insurer) (2.3 MB) takes effect on 1 Jan 2024.

MAS RBC 2 Group Capital Workbook (v2) (308.2 KB)
Informs insurers on the amendments of Notice 133 and Notice FHC-N133 to include the proposed introduction of equity counter-cyclical adjustment (CCA), and the capital treatment for structured products and infrastructure investments, amongst others.
Informs insurers on the amendments of Notice 133 and Notice FHC-N133 to include the additional criteria to recognise capital instruments issued by insurers as AT1 or Tier 2 Capital under the RBC 2 framework, subject to the condition that such capital instruments are sold only to persons who are not retail investors in Singapore from 1 January 2026.
Informs insurers on the issuance of the Response to Consultation Paper on Proposed Inclusion of Additional Criteria for Additional Tier 1 and Tier 2 Capital Instruments for Insurers.
Informs insurers on the issuance of the Response to Consultation Paper on Proposed Equity Counter-Cyclical Adjustment for Insurers.
This consultation paper sets out the proposed amendments to MAS Notice FHC-N133 on Valuation and Capital Framework for Designated Financial Holding Companies (Licensed Insurer).

Consultation number: P011-2025 Start date: 24 July 2025 Closing date: 25 August 2025
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