2018 Year-End Filing Requirements for Insurance Groups

Summary

This BMA document sets out the specific filing requirements that designated insurers within insurance groups must meet for the 2018 financial year-end, covering statutory financial returns, capital and solvency returns, audited financial statements and quarterly returns. It also notes technical changes made to the 2018 Bermuda Solvency Capital Requirement (BSCR) model used by insurance groups.

• Group Statutory Financial Return (SFR): Must be filed within five months after financial year end (extendable to eight months with BMA approval); includes cover sheet, solvency certificate, statutory financial statements (Forms 1, 2, 8), reinsurance particulars, EBS reconciliation, list of non-insurance regulated entities, and qualifying member particulars.
• Group Capital and Solvency Return (CSR): Comprises the Group BSCR, schedules, GSSA, catastrophe risk return, group minimum margin of solvency, eligible capital, operational risk assessment, Financial Condition Report (FCR) and Group Actuary opinion; reported in USD; same five/eight month filing window; declaration signed by two directors and CRO/CFO; both electronic and printed copies required.
• 2019 BSCR methodology: Insurance groups are not required to use the revised 2019 year-end BSCR calculation for 2018 year-end, but may opt to use the revised schedules if they wish.
• Audited Group Financial Statements: Consolidated parent-company financial statements must be prepared annually under IFRS, recognised GAAP (Bermuda, Canada, UK, US) or other BMA-recognised GAAP, audited by an approved auditor, and filed within five months (extendable to eight) after year end; the Authority will publish filed statements.
• Quarterly Financial Return: Insurance groups must prepare and file quarterly returns by the last day of May, August and November each year, comprising unaudited consolidated quarterly financial statements and details of intra-group transactions, reinsurance/retrocession arrangements and largest unaffiliated counterparty exposures.
• FCR publication: The Financial Condition Report must be published on the group's website within 14 days of filing with the Authority, or, if no website exists, furnished to the public within 10 days of a written request.
• 2018 BSCR model changes: Updates include new financial market stress scenarios (including Extreme US Yield Curve Widening), revised mortgage loan shock scenarios, updated underwriting industry/loss exposure valuations, new liability loss accumulation stress scenarios, and a revised cyber risk schedule requiring unconsolidated and consolidated data.

Key obligations

• A designated insurer must submit a Group Statutory Financial Return for its insurance group within five months after financial year end (or up to eight months if allowed by the Authority).
• A designated insurer must file the Group Capital and Solvency Return (including BSCR schedules, GSSA, FCR, Group Actuary opinion) within the same five to eight month window, in United States Dollars, with declarations signed by two directors and the CRO or CFO.
• Every insurance group must prepare annually audited consolidated group financial statements of the parent company under IFRS, recognised GAAP, or other BMA recognised standards, and file them within five to eight months after year end.
• The Financial Condition Report must be published on the insurance group's website within 14 days of filing with the Authority, or furnished to the public within 10 days of a written request if no website exists.
• Every insurance group must prepare and file quarterly financial returns, including unaudited consolidated financial statements and intra-group transaction and counterparty exposure details, by the last day of May, August and November each year.
• Both an electronic version and a printed copy of the Group CSR, including the SFR Forms and original audit opinions, must be submitted to the Authority.

Applies to

insurance groups, designated insurers

Deadlines

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