2018 Alternative Capital Schedule Instructions

Summary

This document provides completion instructions for the BMA's Alternative Capital Schedule, a form insurers must file annually if they conduct business financed by alternative capital mechanisms such as catastrophe bonds, industry loss warranties, sidecars, collateralised reinsurance, longevity or mortality bonds and swaps, hybrid securities, and contingent capital instruments like letters of credit. It sets out where and how the Schedule must be submitted, and gives line by line guidance for completing each section.

• Applicability: Applies to insurers whose business is financed by a mechanism other than shareholders capital of the (re)insurance company (e.g. cat bonds, sidecars, collateralised reinsurers, longevity/mortality swaps, hybrid securities, contingent capital).
• Submission channel: Commercial insurers (Classes 3A, 3B, 4, C, D and E) must attach the completed Schedule within the Bermuda Solvency and Capital Requirement (BSCR) filing under the attachments tab.
• Submission channel (limited purpose/special purpose): Limited Purpose Insurers (Classes 1, 2, 3, A and B) and Special Purpose Insurers must attach the completed Schedule within the Electronic Statutory Filing System (E-SFR) under the attachments tab.
• Format requirements: The Schedule must be completed in the prescribed Microsoft Excel format, with data recorded on a per contract basis, figures in units, and all amounts in United States Dollars.
• Content: Section 1 requires filing details (insurer name, structure type, financial year end, number of rows); Section 2 requires per transaction details such as cedant name, coverage type, line of business, location of cover, limits, dates, premiums, losses, collateral amount, rating and nature, with optional additional comments.

The instructions themselves do not restate a specific filing deadline date, but confirm the underlying requirement (from the Authority's 22 January 2018 Notice) that the Schedule be filed on an annual basis alongside the insurer's BSCR or E-SFR filing.

Key obligations

• Insurers whose business is financed by alternative capital mechanisms must complete and file the Alternative Capital Schedule on an annual basis.
• Commercial insurers (Classes 3A, 3B, 4, C, D, E) must attach the completed Schedule within the BSCR filing under the attachments tab.
• Limited Purpose Insurers (Classes 1, 2, 3, A, B) and Special Purpose Insurers must attach the completed Schedule within the E-SFR filing under the attachments tab.
• The Schedule must be completed in the prescribed Microsoft Excel format, with data on a per contract basis, figures in units, and all amounts stated in United States Dollars.
• Insurers must complete Section 1 filing details (name, structure, year end date, number of rows) and Section 2 transaction details for each contract as specified in the instructions.

Applies to

Commercial insurers (Classes 3A, 3B, 4, C, D, E), Limited Purpose Insurers (Classes 1, 2, 3, A, B), Special Purpose Insurers

Deadlines

• annual basis: The Alternative Capital Schedule must be completed and filed annually by insurers financed by alternative capital, alongside their BSCR or E-SFR filing.