The establishment of branches of foreign insurance companies is subject to reciprocity. Otherwise foreign investors can invest via a local insurance company.
"Article 2
The terms used in this law shall mean the following: Insurance company is a joint-stock company registered in the Republic of Srpska or a mutual insurance company registered in the Republic of Srpska, as well as an insurance company which is not from the Republic of Srpska, but performs the insurance activity pursuant to the provisions of this law; 
[...]
Direct insurance and reinsurance 
Article 3
The direct insurance activity for risk coverage in the Republic of Srpska shall only be performed by the insurance company granted a licence by the RS Agency. [...]
All direct insurance companies, except for mutual insurance companies, may provide reinsurance services with the licence granted by the RS Agency.[...]
Any joint-stock company performing or intending to perform the reinsurance activity shall first obtain a special licence from the RS Agency, which shall cover all types of reinsurance. The reinsurance company shall be established as a joint-stock company providing the reinsurance services as the sole objective of the activity. 
[...]
II - INSURANCE COMPANIES
2.1. Insurance companies' authorisation
Business licence 
Article 26 
Founders of insurance companies may be domestic and foreign natural and legal persons. 
The establishment of an insurance company is subject to issuance of the business licence, which shall be issued by the RS Agency and valid in the whole territory of Bosnia and Herzegovina. The business licence shall be issued under the terms foreseen by the provisions of the articles 34, 49 and 50 of this law and pursuant to the decision on the types of insurance passed by the RS Insurance Agency. Pursuant to this law, the business licence shall grant an insurance company the right to carry out the insurance activity in the Republic of Srpska and the Federation of Bosnia and Herzegovina according to the law governing its establishment. [...]
An insurance company not having its headquarters in Bosnia and Herzegovina may obtain the business licence to operate its branch office in the Republic of Srpska subject to fulfilment of the terms foreseen by the provisions of the Article 46 of this law.
[...]
Types of insurance for companies not from Bosnia and Herzegovina
Article 33
The insurance company with the headquarters outside Bosnia and Herzegovina may do business in the Republic of Srpska in the following manner: 
a. if the insurance company provides non-life insurance services along with life insurance services (mixed or complex insurance companies) in the country where it has its headquarters, it may do the following in the Republic of Srpska: 
- obtain the business licence from the RS Agency for performing only the life insurance or only the nonlife insurance activity by means of its branch offices pursuant to the articles 45 through 48 of this law, 
- obtain the business licence from the RS Agency for performing the life insurance activity in the Republic of Srpska by means of its branch office, and when it provides non-life insurance in the Republic of Srpska by means of its subsidiary in the Republic of Srpska;
b. If the insurance company referred to in the paragraph 1) of this article provides only non-life insurance services or only life insurance services in its headquarters, in the Republic of Srpska, by means of its branch office, it may only perform the insurance activity for which it has been registered in its headquarters, pursuant to this law.  
The provisions of the Article 32 of this law shall be applied accordingly to the company referred to in the paragraph 1), point (a), of this article. 
[...]
2.4. Establishment of branch offices between the entities 
Establishment of a branch office of an insurance company from the Federation of Bosnia and Herzegovina in the Republic of Srpska. 
General provisions 
Article 36
An insurance company having the headquarters in the Federation of Bosnia and Herzegovina may establish a branch office in the Republic of Srpska provided that the FBiH Agency has provided the RS Agency with the request accompanied by the following documents in one or more official languages of Bosnia and Herzegovina:  
[...]
2.6. Insurance companies with no headquarters in Bosnia and Herzegovina General provisions 
Article 45
A foreign insurance company with the headquarters outside Bosnia and Herzegovina may provide insurance services in the Republic of Srpska through a branch office once it has obtained the business licence from the RS Agency and has been entered in the court register. A branch office of a foreign insurance company shall have the prerogatives of a legal person and shall be subject to supervision conducted by the RS Agency. A branch office may provide only life insurance or only non-life insurance services. The business licence granted by the RS Agency shall be published in the “Official Gazette of Bosnia and Herzegovina” and the “Official Gazette of the Republic of Srpska”, based on which the entry of the branch office in the court register shall be made.  The decision on the issuance of the business licence referred to in this article shall be final and valid in the whole territory of Bosnia and Herzegovina and shall be submitted to the BiH Insurance Agency. 
Article 46: Conditions
In order for a foreign insurance company to obtain a license to operate a branch in the Republic of Srpska, it must: 
a) be established as a joint-stock insurance company or as a mutual insurance company or have any other form of insurance company provided for in the member states of the European Union, and that in the home country has permission to perform the types of insurance for which it is requesting a business license in the Republic of Srpska;
b) appoint an authorized representative of the branch in the Republic of Srpska. If the authorized representative is a legal entity, it must be based in the Republic of Srpska and appoint a natural person to represent it. That natural person must have a residence in the Republic of Srpska and fulfill the conditions according to Art. 34 and 60 of this law regarding the professional qualifications of the persons who manage the insurance company;
c) be registered in a country that allows an insurance company from Republika Srpska to be established in accordance with the principle of reciprocity [...]" (Law on Insurance Companies (Official Gazette of the Republic of Srpska No. 17/05, 01/06, 64/06 and 74/10) [google translation])
-------------------------------------
"Article 2 (Definitions)
Terms used in this law have the following meanings:
a) "insurance company" is a joint-stock company registered in the court register based on the approval of the Insurance Supervision Agency of the Federation of Bosnia and Herzegovina (hereinafter: the Supervision Agency) for the performance of insurance business, as well as a branch of an insurance company that is not from of the Federation, which was established in the Federation or operates in the Federation in accordance with this law; [...]
g) "person of a member state", in the sense of this law, is a natural person who resides in the territory of a member state or a legal entity whose seat is in the territory of a member state;
h) "home Member State" is the Member State in which the seat of the insurance company or reinsurance company is located;
i) "foreign country", in the sense of this law, is a country that is not BiH and is not a member state;
j) "foreign person", in the sense of this law, is a natural person who resides outside the territory of Bosnia and Herzegovina and a member state or a legal entity whose seat is outside the territory of Bosnia and Herzegovina and a member state;
k) "foreign insurance company", i.e. reinsurance company, is a legal entity based outside the territory of Bosnia and Herzegovina, which has received the approval of the Supervisory Agency for the performance of insurance operations, i.e. reinsurance operations in the territory of the Federation;
[...]
Article 3 (Insurance activity)
(1) Insurance activities include insurance and reinsurance activities, as well as activities directly related to insurance activities.
[...]
Article 5 (Companies performing insurance activities)
(1) Insurance activity is carried out by:
a) an insurance company based in the Federation that has received approval for the work of the Supervisory Agency for the performance of insurance business,
b) an insurance company based in the Republic of Srpska (hereinafter: RS) that provides insurance services in the Federation through a branch office,
c) a foreign insurance company that received approval for the work of the Supervisory Agency for the performance of insurance business in the Federation through a branch office.
(2) An insurance company and a reinsurance company may be established by legal and/or physical, domestic and/or foreign persons and persons of member states under the conditions of this law.
(3) The insurance company is established as a joint stock company.
(4) A reinsurance company can only be established as a joint stock company.
(5) An insurance company may only perform insurance activities.
(6) Insurance activity may not be performed by anyone other than the companies listed in paragraph (1) of this article.
[...]
Section E. Performing insurance operations of foreign insurance companies
Article 55. (Establishment of a branch office)
(1) A foreign insurance company may perform insurance business in the territory of the Federation only through a branch office.
(2) A branch of a foreign insurance company must meet the following conditions:
a) the affairs of the subsidiary must be managed by two persons who are authorized to represent the founders, and to whom the provisions of Art. from 34 to 41 of this law,
b) the branch office must be appropriately staffed and technically qualified to perform insurance operations,
c) the subsidiary must dispose of deposited funds in the value of one half of the amount of the basic capital from Article 25 of this law,
d) the subsidiary must dispose of appropriate assets in the territory of the Federation at least in the amount of half of the guarantee fund prescribed in Article 73 of this law, and deposit a sum of money as a guarantee for the payment of obligations from insurance contracts concluded in the territory of the Federation, i.e. contracts covering risks in the territory of the Federation in in the amount of a quarter of the subsidiary's guarantee fund (hereinafter: guarantee deposit). The surplus of the subsidiary's own funds above the required minimum capital, depending on which is higher, must be deposited in a business account with a financial institution based in the Federation,
e) the subsidiary must appoint an authorized actuary who will have the same function in it as in the insurance company.
(3) The branch office must maintain and keep all documentation related to the business operations of the branch office.
(4) Provisions on risk management, keeping confidential data and business books and reports from Chapters III and IV of this law and the regulations adopted on the basis of them shall be applied appropriately to the subsidiary of a foreign insurance company.
[...]
CHAPTER XV. TRANSITIONAL AND FINAL PROVISIONS
Article 225 (Enacting regulations)
(1) The supervisory agency is obliged to adopt regulations based on the authorization from this law within six months from the date of entry into force of this law.
(2) Until the date of entry into force of the regulations referred to in paragraph (1) of this article, bylaws adopted on the basis of the Law on Insurance Companies in Private Insurance ("Official Gazette of the Federation of BiH", no. 24/05 and 36/10) shall apply. if they are not contrary to this law.
(3) Provisions from Article 5, paragraph (1) point c), Article 57, paragraph (6) point c), and Art. 55, 56 and 189 of this law shall be applied within five years from the date of entry into force of this law. [...]" (Law on Insurance (BiH Official Gazette, 23/17 and 103/21)
Law on Insurance Companies (Official Gazette of the Republic of Srpska No. 17/05, 01/06, 64/06, 74/10, 47/17 and 58/19) [google translation]
Law on Insurance (BiH Official Gazette, 23/17 and 103/21)
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