2018 Year-End Filing Requirements for Class E

Summary

This document sets out the Bermuda Monetary Authority's filing requirements for Class E (re)insurers for the 2018 financial year end. It lists the statutory returns, capital and solvency filings, and audited financial statements that must be submitted, along with the forms, schedules and supporting declarations each filing must include.

• Statutory Financial Return (SFR): Must include the Insurer Information Sheet, auditor's report, Statutory Financial Statements (Forms 1SFS, 2SFS, 8SFS with notes) and a Statutory Declaration of Compliance; filed within four months of financial year end (extendable to seven months on application).
• Capital and Solvency Return (CSR): Comprises the BSCR and schedules (or an approved internal capital model), Capital and Solvency Declaration, AML Questionnaire (direct long term insurers only), CISSA, Eligible Capital schedule, operational risk assessment, Schedule of Regulated Non Insurance Financial Operating Entities, Schedule of Solvency, Financial Condition Report (FCR) and Actuary's Opinion; filed within four months of year end (extendable to seven months).
• Updated CSR calculation for 2019 year end: Insurers are not required to complete the revised BSCR methodology for 2018 year end but may voluntarily use the revised schedules if they choose.
• Audited Financial Statements: Additional GAAP or IFRS based financial statements with notes and auditor's report must be filed within four months of year end (extendable to seven months); the Authority will publish these.
• Alternative Capital Schedule: Insurers with alternative capital arrangements (e.g. cat bonds, sidecars, collateralised reinsurance) must complete and attach the latest Alternative Capital Schedule to the BSCR model.
• 2018 BSCR model changes for Long Term insurers: Includes new AML questions on the Information Sheet, a revised AML schedule, removal of a duplicative note requirement, updated stress and scenario tests (including a new extreme US yield curve widening scenario and revised cyber risk schedule), and additional beneficial ownership disclosure in the segregated accounts schedule.

The Financial Condition Report has specific signing and publication requirements, and the CSR must be submitted both electronically and in printed form together with original audit opinions.

Key obligations

• File the Statutory Financial Return (SFR) within four months after financial year end, or up to seven months if an extension is approved by the Authority.
• File the Capital and Solvency Return (CSR), including the BSCR and required schedules, within four months after financial year end, or up to seven months if an extension is approved.
• Have the Capital and Solvency Declaration signed by two directors and the insurer's principal representative.
• Have the Financial Condition Report signed by the chief executive and a senior executive responsible for actuarial, risk management, internal audit or compliance functions.
• Publish the Financial Condition Report on the insurer's website within 14 days of filing it with the Authority, or if no website exists, furnish a copy to the public within 10 days of a written request.
• Submit both an electronic and printed copy of the CSR (including SFR forms) along with all original audit opinions.
• File audited financial statements prepared under IFRS, applicable GAAP, or other Authority-recognised GAAP within four months of financial year end (extendable to seven months).
• Complete and attach the latest Alternative Capital Schedule for insurers with alternative capital arrangements.

Applies to

Class E (re)insurers, Bermuda long term commercial insurers

Deadlines

• within four months after the end of the financial year: Deadline to file the Statutory Financial Return (SFR).
• up to seven months after the end of the financial year (on application): Extended deadline the Authority may grant for filing the SFR.
• within four months after the end of the financial year: Deadline to file the Capital and Solvency Return (CSR).
• up to seven months after the end of the financial year (on application): Extended deadline the Authority may grant for filing the CSR.
• within 14 days of filing with the Authority: Deadline to publish the Financial Condition Report on the insurer's website.
• within 10 days of receipt of a written request: Deadline to furnish a copy of the latest financial condition report to the public if the insurer has no website.
• within four months from the end of the financial year: Deadline to file audited financial statements under section 17A, extendable to seven months on application.