On June 10, 2021, the National Supplementary Health Agency (ANS) published Normative Resolution No. 468 (“Resolution”), amending Normative Resolution No. 451/2020, which provides for the criteria for defining the regulatory capital of healthcare plan operations.
The new Resolution provides the following main changes:
- Regarding Risk-Based Capital (CBR), there is the inclusion of the requirement to calculate legal and operational risks, in addition to underwriting and credit.
- Adjusted Shareholders’ Equity (PLA) is now adjusted, in addition to the economic effects already provided for by Normative Resolution No. 451/2020, by deducting the goodwill value of direct or indirect interests that are not in other health care plan operators and in financial entities, insurance, reinsurance and private open or closed private pension entities.
- The deduction of the goodwill value of the interests must be made gradually and linearly, over fifteen months, from October 1, 2021, and accounted for until September 30, 2021. The amounts accounted for as of October 1, 2021 must be fully deducted, without scaling.
- The formula for calculating Risk-Based Capital has been amended, considering now in the calculation the capital based on operational risk, including legal risk.
- Inclusion of Annex III-B with the Standard Capital Model based on operational risk, including legal risk, applicable to all operators, except Benefits Administrators.
- Repeal of Annex V of Normative Resolution No. 451/2020, which deals with the Financial Projections Model.
The Resolution will come into effect on September 1, 2021 and its full version can be accessed at this link.
Demarest’s Insurance, Reinsurance and Supplementary Health team is available to provide any further clarifications that may be necessary.