Section 100, The Insurance Act, 2016

(1) A reinsurer shall establish and maintain in respect ofeach class of insurance business- (a) reserves for unexpired risk; (b) reserves for outstanding claims; and (c) contingency reserves to cover fluctuations in securities and variations in statistical estimates. (2) A reinsurer shall maintain in respect of insurance business other than life insurance business- (a) the reserves for unexpired risks amounting to not less than forty five percent of the total net premiums in the case of insurance business other than marine insurance (b) the reserves for unexpired risks amounting to not less than seventy five percent of the net premium in the case of marine hull insurance business (c) the reserves equal to the total estimated amount of all outstanding claims together with a further amount representing twenty five percent of the estimated amount of outstanding claims in respect of claims incurred but not reported at the end of the last preceding year in the case of reserves for outstanding claims; (d) reserves less than three percent of the total premiums or twenty percent of the net profits whichever is the greater and such amount shall accumulate until it reaches the minimum paid up share capital or fifty percent of the net premiums whichever is the greater, in the case of contingency reserves. (3) A reinsurer shall maintain with respect to the life insurance business- (a) a general reserve fund which shall be credited with an amount equal to the net liabilities on policies in force at the time of the actuarial valuation; and (b) contingency reserves which shall be credited with an amount equal to the one percent of the premiums.