61A.29 FOREIGN INVESTMENTS.
Subdivision 1. Authorization.
In addition to the Canadian investments permitted by this
chapter, a domestic life insurance company may make foreign investments authorized by
subdivision 2, subject to the limitations contained in subdivision 3. Investments authorized by
this section are restricted to countries where the obligations of the sovereign government are
rated in one of the two highest rating categories by at least one nationally recognized statistical
rating organization in the United States. All investments must be made as provided under foreign
investment guidelines established and maintained by the company under section
Subd. 2. Authorized investments.
A company may invest in (i) foreign assets denominated
in United States dollars; (ii) foreign assets denominated in foreign currency; and (iii) United
States assets denominated in foreign currency. The investments may be made in any combination
of the following:
(a) Obligations of sovereign governments and political subdivisions thereof and obligations
issued or fully guaranteed by a supranational bank or organization, other than those described in
61A.28, subdivision 2
, paragraph (e), provided that the obligations are rated in one of the
two highest rating categories by at least one nationally recognized statistical rating organization in
the United States. For purposes of this section, "supranational bank" means a bank owned by a
number of sovereign nations and engaging in international borrowing and lending.
(b) Obligations of a foreign business entity, provided that the obligation (i) is rated in
one of the four highest rating categories by at least one nationally recognized statistical rating
organization in the United States or by a similarly recognized statistical rating organization, as
approved by the commissioner, in the country where the investment is made; or (ii) is rated in
one of the two highest categories established by the Securities Valuation Office of the National
Association of Insurance Commissioners.
(c) Stock or stock equivalents issued by a foreign entity if the stock or stock equivalents
are regularly traded and subject to oversight by the government of the country in which the
regular trading occurs.
(d) Financial transactions for the sole purpose of managing the foreign currency risk of
investments made under this subdivision, provided that the financial transactions are entered into
under a detailed plan maintained by the company. For purposes of this paragraph, "financial
transactions" include, but are not limited to, the purchase or sale of currency swaps, forward
agreements, and currency futures.
Subd. 3. Investment limitations.
Investments authorized by subdivision 2 are subject to
the following limitations:
(a) A company shall not make an investment under this section if the investment causes
the company's aggregate investments authorized under this section to exceed ten percent of its
total admitted assets.
(b) Investments made under subdivision 2 must be aggregated with United States investments
in determining compliance with percentage concentration limitations, if any, contained in this
(c) A company shall not invest in the obligations of one issuer under subdivision 2 in an
amount greater than authorized for investments of the same class under this chapter. A company
shall not invest more than two percent of its total admitted assets in the direct or guaranteed
obligations of a sovereign government or political subdivision thereof, or of a supranational bank.
History: 1967 c 395 art 2 s 29; 1969 c 494 s 20; 1981 c 211 s 37; 1983 c 340 s 15; 1991
c 325 art 9 s 11; 2001 c 131 s 14