2019 Year-End Filing Requirements for Insurance Groups

Summary

This document sets out the Bermuda Monetary Authority's filing requirements for insurance groups for the 2019 financial year end, covering the Group Statutory Financial Return, Group Capital and Solvency Return, audited group financial statements, and quarterly financial returns. It also flags a change to the 2019 Bermuda Solvency Capital Requirement (BSCR) model requiring dual-methodology calculations, and lists specific model changes from 2018 to 2019.

• Group Statutory Financial Return (SFR): Designated insurers must submit a Group SFR (cover sheet, solvency certificate, statutory financial statements Forms 1, 2 and 8, reinsurance particulars, EBS reconciliation, list of non-insurance regulated entities, and qualifying member particulars) within five months after financial year end, extendable to eight months with Authority approval.
• Group Capital and Solvency Return (CSR): Must include the Group BSCR, schedules, GSSA, catastrophe risk return, group minimum margin of solvency, group eligible capital, CISSA/operational risk assessment, FCR, and Group Actuary opinion on EBS technical provisions; reported in USD; filed within five months (extendable to eight); CSR declaration signed by two directors and CRO or CFO; both electronic and printed copies required unless filed via the BSCR submit macro.
• Updated 2019 CSR calculation: Groups must complete the BSCR under both the 2018 and revised 2019 methodologies for 2019 year end; groups wanting to use only the revised methodology must request permission by email to RiskAnalytics@bma.bm.
• Audited group financial statements: Groups must prepare and have audited annual consolidated financial statements (under IFRS, Bermuda/Canada/UK/US GAAP, or other Authority-recognised GAAP) and file them with the Authority within five months of year end (extendable to eight); the Authority will publish filed statements.
• Financial Condition Report (FCR): The FCR must be signed by the parent company's chief executive and either the CRO or CFO, and published on the group's website within 14 days of filing with the Authority, or provided to the public within 10 days of a written request if no website exists.
• Quarterly Financial Return: Groups must prepare and file quarterly financial returns (unaudited consolidated statements, intra-group transaction details, and largest unaffiliated counterparty exposures) on or before the last day of May, August and November each year.
• 2019 BSCR model changes: Updates to Schedule V(e) stress/scenario tests (financial market scenario and liability loss accumulation scenarios) and to the technology risk underwriting scenario and questionnaire, based on market feedback.

This is an informational filing-requirements notice rather than a rule change document; it consolidates existing statutory obligations under the Insurance Act 1978 and related Rules for the 2019 year end and highlights the new dual BSCR calculation requirement.

Key obligations

• Designated insurers must submit a Group Statutory Financial Return within five months after financial year end (extendable to eight months with Authority permission).
• Designated insurers must file the Group Capital and Solvency Return (Group BSCR, schedules, FCR, actuary's opinion, etc.) within five months after financial year end (extendable to eight months), reported in USD.
• The CSR declaration must be signed by two directors (one may be chief executive) and either the chief risk officer or chief financial officer of the parent company.
• Both an electronic and a printed copy of the Group CSR must be submitted unless filed via the BSCR model's electronic submit macro; those using other methods must also file a hardcopy.
• For 2019 year end, groups must calculate the BSCR under both the 2018 and revised 2019 methodologies unless they obtain Authority permission via email to use the revised methodology only.
• Groups must prepare annual consolidated financial statements audited by an approved auditor and file them with the Authority within five months of year end (extendable to eight months).
• The Financial Condition Report must be published on the group's website within 14 days of filing with the Authority, or provided to the public within 10 days of a written request if there is no website.
• Insurance groups must prepare and file quarterly financial returns on or before the last day of May, August and November each year.

Applies to

insurance groups, designated insurers

Deadlines

• within five months after the end of the financial year (extendable to eight months with Authority approval): Filing of the Group Statutory Financial Return, Group Capital and Solvency Return, and audited group financial statements
• within 14 days of filing with the Authority: Publication of the Financial Condition Report on the insurance group's website
• within 10 days of receipt of a written request: Provision of the latest Financial Condition Report to the public if the group has no website
• on or before the last day of May, August and November of every year: Filing of quarterly financial returns