2019 Year-End Filing Requirements for Class 3A

Summary

This BMA form sets out the year-end filing requirements for Class 3A (re)insurers for the 2019 financial year, listing the specific returns, schedules and attachments that must be submitted to the Bermuda Monetary Authority and the applicable filing deadlines. It also flags year-on-year changes to the Bermuda Solvency Capital Requirement (BSCR) model that apply across Class 3A, 3B and 4 insurers.

• Statutory Financial Return (SFR): Includes the Insurer Information Sheet, auditor's report, Statutory Financial Statements (Forms 1SFS, 2SFS, 8SFS with notes) and Statutory Declaration of Compliance; filed within four months of financial year end (extendable to seven months with BMA approval).
• Capital and Solvency Return (CSR): Comprises the BSCR and schedules (including CISSA, Catastrophe Risk Return, Eligible Capital, Financial Condition Report, loss reserve specialist opinion and numerous attachments); same four month filing deadline (extendable to seven months).
• Updated CSR calculation: For 2019 year end, insurers must complete the BSCR under both the 2018 methodology and the revised 2019 methodology, unless permission is obtained from BMA to use the revised methodology only.
• Audited financial statements: Additional GAAP financial statements (IFRS, or Bermuda/Canada/UK/US GAAP, or other BMA recognised GAAP) must be filed within four months of financial year end (extendable to seven months); condensed general purpose statements may be used instead of additional GAAP statements without prior approval.
• Alternative capital: Insurers with alternative capital arrangements (e.g. cat bonds, sidecars, ILWs, hybrid securities) must complete Schedule V(m) of the BSCR model.
• BSCR model changes for 2019: New Sanctions Schedule questionnaire, new Schedule V(a) outsourcing/employee/tax residency disclosures, updated Schedule V(e) stress and scenario tests, and integration of the Alternative Capital Schedule V(m) into the BSCR model.

The Financial Condition Report must be signed by the chief executive and a senior executive responsible for actuarial, risk management, internal audit or compliance, 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). Electronic submissions must use the embedded BSCR submit macro; any other submission method requires an accompanying hardcopy filing.

Key obligations

• File the Statutory Financial Return (including Insurer Information Sheet, auditor's report, Statutory Financial Statements and Statutory Declaration of Compliance) within four months after financial year end, or up to seven months if BMA grants an extension on application
• File the Capital and Solvency Return (BSCR, schedules, CISSA, Financial Condition Report, loss reserve specialist opinion and required attachments) within four months after financial year end, extendable to seven months with BMA approval
• Sign the Capital and Solvency Return declaration by two directors and the insurer's principal representative
• Complete the BSCR for 2019 year end using both the 2018 and 2019 methodologies, unless BMA permission is obtained via email request to RiskAnalytics@bma.bm to use the revised methodology only
• File audited financial statements (GAAP or IFRS based, or BMA recognised equivalent) within four months of financial year end, extendable to seven months with BMA approval
• Publish the Financial Condition Report on the insurer's website within 14 days of filing it with the Authority, or provide a copy to the public within 10 days of a written request if no website exists
• Complete Schedule V(m) of the BSCR model if the insurer has alternative capital arrangements
• Confirm the Suspicious Activity Reporting and Sanctions questionnaire in the Sanctions Schedule
• Submit electronic-only filings via the embedded BSCR model submit macro, or file a hardcopy version if submitting by another method such as email

Applies to

Class 3A insurers, Class 3B insurers, Class 4 insurers

Deadlines

• within four months after the end of the financial year: Deadline to file the Statutory Financial Return (SFR)
• up to seven months (with Authority approval): Extended deadline for filing the SFR upon application to the Authority
• within four months after the end of the financial year: Deadline to file the Capital and Solvency Return (CSR)
• up to seven months (with Authority approval): Extended deadline for filing the CSR upon application to the Authority
• within four months from the end of the financial year: Deadline to file audited financial statements
• up to seven months (with Authority approval): Extended deadline for filing audited financial statements upon application
• 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 the public with the latest Financial Condition Report if the insurer has no website