Home Economy Assembly approves bill ending investment cap on insurance companies

Assembly approves bill ending investment cap on insurance companies

By

Christopher Allen

-

06/18/2025

FM-Global-building-1 — THE GENERAL ASSEMBLY on Tuesday approved legislation that ends a cap on certain investments by Rhode Island-based insurance companies that has been in place for four decades. Pictured is the FM campus in Johnston./COURTESY FM

PROVIDENCE – The General Assembly approved legislation that lifts a restriction on insurance corporations headquartered in Rhode Island from investing any more than 10% of their assets in vehicles such as hedge funds, private equity and fixed-income. Lawmakers acknowledged that the legislation was requested by Johnston-based FM and supported by Lincoln-based Amica Mutual Co. Sponsored

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PROVIDENCE – The General Assembly approved legislation that lifts a restriction on insurance corporations headquartered in Rhode Island from investing any more than 10% of their assets in vehicles such as hedge funds, private equity and fixed-income. Lawmakers acknowledged that the legislation was requested by Johnston-based FM and supported by Lincoln-based Amica Mutual Co. Sponsored by Sen. Andrew R. Dimitri, D-Johnston, and Alex Finkelman, D-Jamestown, the change is meant to “to level the playing field” with Massachusetts and Connecticut, which have no such caps, for Rhode Island-based insurance companies to compete in the global market and be urged maintain a presence in Rhode Island. “Rhode Island is very fortunate to be home to industry-leading insurers who are among our state’s biggest employers and greatest contributors to our economy,” said Finkelman. “This bill lifts a needless restraint so they have the freedom to innovate and grow, and so they can continue to flourish right here in Rhode Island.” Known as “Schedule B” assets, these investments do not not include traditional stocks and bonds, and generally bring higher yields but could involve greater risks. Amica currently employs 1,736 in Rhode Island, and FM has 1,393 local employees, according to the Providence Business News 2025 Book of Lists. Testifying before the Senate Finance Committee on June 5, Amica Senior Vice President and general counsel Jennifer Morrison said lifting the cap will benefit policyholders and has no impact on the state’s budget. “We believe our policyholders are best served when our investment portfolio has a flexibility to target optimal diversification and asset allocation,” she said. Dimitri, whose district includes FM’s Johnston campus, said the company “has been a good neighbor and a great employer in Rhode Island for nearly two centuries.” “This investment limit doesn’t serve us as well as it did when it was put in place 40 years ago,” he said. “We now have many other layers of regulatory protection that safeguard insurers’ investments.” Gov. Daniel J. McKee has endorsed the bill and is expected to sign it into law. Christopher Allen is a PBN staff writer. You may contact him at Allen@PBN.com.