(a) Subject to this section, an insurance company may invest in a real property fee simple or leasehold estate located in the United States.
(b) An insurance company may invest in home and branch office real property or a participation in home or branch office real property. At least 30 percent of the available space in a building used as a home or branch office must be occupied for the business purposes of the company and the company’s affiliates. A company’s aggregate investment in home and branch office real property may not exceed 20 percent of the company’s assets.

(c) An insurance company may invest in real property other than home and branch office real property or participations in home and branch office real property. A company’s investment under this subsection in a single piece of property or in an interest in a single piece of property, including improvements, fixtures, and equipment relating to the property, may not exceed five percent of the company’s assets.
(d) Investment real property held under Subsection (b) or (c) must be materially enhanced in value by:
(1) the construction of durable, permanent-type buildings and other improvements that cost an amount at least equal to the cost of the real property, excluding buildings and improvements at the time the real property is acquired; or
(2) the construction, commenced before the second anniversary of the date the real property is acquired, of buildings and improvements described by Subdivision (1).
(e) The admissible asset value of each investment in real property under Subsection (b) or (c) is subject to review and approval by the commissioner. The commissioner may, at the time the investment is made or any time the insurance company is being examined, have the investment appraised by an appraiser appointed by the commissioner. The company shall pay the reasonable expense of the appraisal. The expense of the appraisal is considered to be a part of the expense of examination of the company unless the company applies for the appraisal to be made. A company may not increase the valuation of real property described by Subsection (b) or (c) unless:
(1) the company applies for the increase in valuation; and
(2) the commissioner approves the increase.
(f) Except as provided by Subsection (g), an insurance company may not own, develop, or hold an equity interest in any residential property or subdivision, single or multiunit family dwelling property, or undeveloped real property to subdivide for or develop residential or single or multiunit family dwellings. This subsection does not apply to an insurer with admitted assets of $10 billion or more, as determined from the insurer’s annual statements that are made as of the December 31 that precedes the date of the determination and are filed with the department as required by law.
(g) An insurance company may invest in other real property acquired:
(1) in good faith to secure a loan previously contracted for, or for money due;
(2) in satisfaction of a debt previously contracted for in the course of the company’s dealings; or
(3) by purchase at a sale under a judgment or decree of a court or under a mortgage or other lien held by the company.
(h) Regardless of the manner in which an insurance company acquires real property under this section, on the sale of the property, the company may retain indefinitely the fee title to the mineral estate or any portion of the mineral estate.