In general, direct or indirect ownership of 10% or more of the shares in a Kazakh insurance or reinsurance company is subject to prior approval by the regulator. A foreign company may hold 25% or more of the shares in an insurance or reinsurance company only if it is a non-resident financial institution with the required minimum credit rating and if it is subject to consolidated supervision in its home country. This restriction applies only to direct holdings by foreign companies.
"Article 26. An insurance holding company, a major participant of an insurance (reinsurance) company
1. Nobody alone or jointly with the other (other) person (s) cannot, directly or indirectly, own, use, and (or) dispose of ten or more percent of outstanding (net of preferred and bought by the insurance (reinsurance) company shares of an insurance (reinsurance) company, as well as have the ability to exercise control or influence over the insurance (reinsurance) company solutions at the rate of ten percent or more percent of the outstanding (net of preferred and bought by the insurance (reinsurance) company shares of an insurance (reinsurance) company without the prior written consent of the authorized body. This requirement shall not apply to the state or national management holding company, as well as to the cases, provided by this Law.
Non-resident legal entities of the Republic of Kazakhstan can obtain the consent of the authorized body to acquire the status of an insurance holding company or a major participant of an insurance (reinsurance) company in the presence of the minimum required rating of one of the rating agencies. The minimum required rating and the list of rating agencies shall be established by the regulatory legal act of the authorized body.
The presence of this rating shall not be required for a non-resident legal entity of the Republic of Kazakhstan, intending indirectly own ten or more percent of outstanding shares of an insurance (reinsurance) company or voting indirectly by ten percent or more percent of the voting shares of an insurance (reinsurance) company through the ownership (voting) of shares (stakes in the authorized capital) of the non-resident legal entity of the Republic of Kazakhstan that is a major participant of an insurance (reinsurance) company that directly owns ten or more percent of outstanding shares of an insurance (reinsurance) company, or having the opportunity to vote by ten or more percent of the voting shares of an insurance (reinsurance) company that has the minimum required rating.
An insurance holding company, a non-resident of the Republic of Kazakhstan that directly owns twenty-five or more percent of outstanding (net of preferred and bought by an insurance (reinsurance) company) shares of an insurance (reinsurance) company or having the opportunity to vote directly by twenty-five or more percent of the voting shares of an insurance (reinsurance) company may be only a financial institution – a non-resident of the Republic of Kazakhstan that subject to the consolidated supervision in the country of its location. [...]
3. The requirements to acquire the status of an insurance holding company or a major participant of an insurance (reinsurance) company shall not apply to a person that recognized as indirectly owns (having the opportunity to vote, make decisions and (or) influence on the decision making by virtue of a contract or otherwise) of shares of an insurance (reinsurance) company through the ownership (the availability to vote, make decisions and (or) influence on decision making by virtue of a contract or otherwise) of shares of another financial institution having the status of a major participant (an insurance holding company) of the said insurance (reinsurance) company.
The requirements to acquire the status of an insurance holding company or a major participant of insurance (reinsurance) company shall not apply to a non-resident of the Republic Kazakhstan that indirectly owns (having the ability to vote, make decisions and (or) influence on decision making by virtue of a contract or otherwise) of shares of an insurance (reinsurance) company through the ownership of (the availability to vote, make decisions and (or) influence on the decision making by virtue of a contract or otherwise) shares of another financial institution - a non-resident of the Republic of Kazakhstan, that is subject to the consolidated supervision in the country of its location and has the status of a major participant (an insurance holding company) of the said insurance (reinsurance) company. [...]" (Law On insurance activities (No. 126 of 18 December 2000), as amended by Law No. 272-VI of 25.11.2019, Article 26 [unofficial translation])
Law On insurance activities (No. 126 of 18 December 2000), as amended by Law No. 272-VI of 25.11.2019, Article 26
[<a href="https://adilet.zan.kz/rus/docs/Z000000126_">Law</a>]