Large Exposure Limits

Document Properties

  • Type of Publication: Letter
  • Date: August 5, 2003
  • Reference: Guideline for Life / Fraternals
  • Our File: P2200-5-6
  • To:
    • Federally Regulated Life Insurance Companies,
    • Fraternal Benefit Societies

This Guideline addresses the issue of large exposures of life insurance companies and fraternal benefit societies. It sets out OSFI's policy with respect to limits on these exposures. During discussions regarding the introduction of Insurance Holding Companies (IHCs) and Bank Holding Companies (BHCs) in Bill C-8, the industry was advised that a large exposure limit would be applied on a consolidated basis to exposures of IHCs and BHCs. To reflect the unique characteristics of the predominant business of IHCs, OSFI, as a first step in developing appropriate direction for IHCs, undertook to develop a Guideline for life insurance companies. This Guideline will also bring the life insurance company regulatory framework in line with the deposit-taking institution framework.

In the interest of maintaining a level playing field, and as a starting point, the life insurance company Guideline has been drafted using the December 1994 OSFI Guideline B-2: Large Exposure Limits for DTIs. In some instances, however, because of the unique characteristics of life insurance companies, the life insurance Guideline differs from the DTI Guideline.

This Guideline is available in English and French on OSFI’s Web site ( under the Publications section. It may also be obtained by contacting Mr. Stéphane Dupel, General Services Division, by e-mail at or by facsimile at (613) 954-4331.

  • Julie Dickson
  • Assistant Superintendent
  • Regulation Sector