2019 Year-End Filing Requirement for Class E

Summary

This is a filing requirements notice from the Bermuda Monetary Authority (BMA) setting out what Class E (re)insurers must submit for the 2019 financial year-end, including the Statutory Financial Return (SFR), Capital and Solvency Return (CSR), audited financial statements, and related schedules. It also lists changes to the 2019 BSCR model for long-term commercial insurers compared to the 2018 version.

• Statutory Financial Return (SFR): Comprises the Insurer Information Sheet, auditor's report, Statutory Financial Statements (Forms 1SFS, 2SFS, 8SFS with notes), and Statutory Declaration of Compliance; must be filed within four months of financial year-end (extendable to seven months with Authority approval).
• Capital and Solvency Return (CSR): Includes the BSCR, Capital and Solvency Declaration, AML Questionnaire (direct long-term insurers), Sanctions schedule, CISSA, Eligible Capital schedule, Financial Condition Report (FCR), and Actuary's Opinion; also due within four months (extendable to seven).
• Updated 2019 CSR calculation: Insurers must complete the BSCR under both the 2018 and revised 2019 methodologies for 2019 year-end, unless they obtain BMA permission (via email to RiskAnalytics@bma.bm) to use the revised methodology only.
• Audited financial statements: Must be prepared under IFRS, recognised GAAP (Bermuda, Canada, UK or US), or other BMA-recognised GAAP, and filed with notes and auditor's report within four months of year-end (extendable to seven).
• Alternative Capital: Insurers with non-shareholder capital arrangements (e.g. cat bonds, sidecars, letters of credit) must complete Schedule V(m) of the BSCR model.
• FCR signing and publication: The Financial Condition Report must be signed by the CEO and a senior executive responsible for actuarial, risk, audit or compliance functions, and published on the insurer's website within 14 days of filing (or provided to the public within 10 days of a written request if no website exists).
• Submission method: Electronic filing must use the embedded BSCR model submit macro; insurers filing by other means (e.g. email) must also submit a hardcopy.
• 2019 BSCR model changes (long-term insurers): Includes added AML questions on the Information Sheet, a revised AML schedule, removal of a duplicative Form 1SFS note, updated stress/scenario tests (Schedule V(e)), integration of the Alternative Capital Schedule (V(m)), and additional beneficial ownership disclosure in the Segregated Accounts schedule.

Key obligations

• File the Statutory Financial Return within four months after financial year-end, or up to seven months with BMA approval
• File the Capital and Solvency Return within four months after financial year-end, or up to seven months with BMA approval
• Have the Capital and Solvency Declaration signed by two directors and the insurer's principal representative
• Have the Financial Condition Report signed by the CEO and a senior executive responsible for actuarial, risk management, internal audit or compliance
• Publish the Financial Condition Report on the insurer's website within 14 days of filing with the Authority, or if no website, provide a copy within 10 days of a written public request
• Complete the BSCR under both the 2018 and 2019 methodologies for the 2019 year-end unless BMA permission is obtained to use the 2019 methodology only
• File audited financial statements (prepared under IFRS or recognised GAAP) with notes and auditor's report within four months of year-end, extendable to seven months
• Complete Schedule V(m) of the BSCR model if the insurer has alternative capital arrangements
• Submit hardcopy filings if not submitted electronically via the BSCR model's submit macro

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)
• not exceeding seven months (on application): Extended deadline the Authority may allow for filing the SFR
• within four months after the end of the financial year: Deadline to file the Capital and Solvency Return (CSR)
• not exceeding seven months (on application): Extended deadline the Authority may allow for filing the CSR
• within 14 days of the date the report was filed 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 the public with a copy of the latest Financial Condition Report if the insurer has no website
• within four months from the end of the financial year (up to seven months on application): Deadline to file audited financial statements under section 17A