On June 29, 2020 the Official Gazette of the Federation published the “CIRCULAR 6/20 OF THE MEXICAN SOLE INSURANCE AND BONDING COMPANIES CIRCULAR” (the ” Circular 6/20″).

The Circular 6/20 establishes the minimum paid capital for Mexican Insurance and Bonding Companies for each kind of insurance operation they operate as follows:

Insurance Operations

Operation	United States Dollars
Life	$1,898,959.11 (one million eight hundred ninety-eight thousand and nine hundred fifty-nine 11/100)
Pension Insurance	$7,799,773.80 (seven million seven hundred ninety-nine and seven hundred seventy-three 80/100)
Accidents and Health Insurance:	$474,739.63 (four hundred seventy-four thousand and seven hundred thirty-nine 63/100)
Damages:
One kind Insurance Operation	$1,424,219.19 (one million four hundred twenty-four thousand and two hundred nineteen 19/100)
Two kinds of Insurance Operations	$1,898,959.11 (one million eight hundred ninety-eight thousand and nine hundred fifty-nine 11/100)
Three or more kinds of Insurance Operations	$2,373,698.75 (two million three hundred seventy-three and six hundred ninety-eight 75/100)
Mortgage Insurance	$3,398,472.87 (three million three hundred and ninety-eight thousand and four hundred seventy-two 87/100)
Financial Guarantees	$9,248,303.22 (nine million two hundred forty-eight thousand and three hundred three 22/100)

Bonding Operations

BRANCH	United States Dollars calculated until December 31, 2019
Bonds:
One kind of Bonding Operations	$2,036,383.88 (two million thirty-six thousand and three hundred eighty three 88/100)
Two kinds of Bonding Operations	$2,715,178.42 (two million seven hundred fifteen thousand and one hundred seventy eight 42/100)
Three or more kinds of Bonding Operations	$3,393,972.96 (three million three hundred ninety-three thousand and nine hundred seventy two 96/100)

For the Insurance Institutions that are only authorized to practice Reinsurance operations, the minimum paid capital for each operation will be the 50% of the above mentioned amounts, with the exception of the Re-bonding operations which will be as follows.

BRANCH	United States Dollars until December 31, 2019
Re-bonding:
One kind of re-bonding operation	$1,018,191.94 (one million eighteen thousand and one hundred ninety-one 94-100)
Two kinds of re-bonding operations	$1,357,589.07 (one million three hundred and fifty-seven thousand and five hundred eighty-nine 07/100)
Three kinds of re-bonding operations	$1,696,986.48 (one million six hundred ninety-six thousand and nine hundred eighty-six 48/100)