2019 Year-End Filing Requirements for Class 4 and 3B

Summary

This BMA document sets out the filing requirements for Class 4 and Class 3B (re)insurers for the 2019 financial year end, covering statutory financial statements, capital and solvency reporting, quarterly returns, and changes to the BSCR model used for capital calculations.

• Statutory Financial Return (SFR): Must be filed within four months of financial year end (extendable to seven months on application), comprising the Insurer Information Sheet, auditor's report, Statutory Financial Statements (Forms 1SFS, 2SFS, 8SFS with notes), and Statutory Declaration of Compliance.
• Capital and Solvency Return (CSR): Must be filed within four months of financial year end (extendable to seven months), including the BSCR, CISSA, Catastrophe Risk Return, Loss Triangles, Eligible Capital Schedule, Financial Condition Report (FCR) and related declarations and schedules.
• Updated 2019 CSR calculation: Insurers must complete the BSCR under both the 2018 methodology and the revised 2019 methodology, unless permission is obtained by email to use the revised methodology only.
• Audited Financial Statements: Insurers must file audited GAAP or IFRS financial statements (with notes and auditor's report) within four months of year end (extendable to seven months); the Authority will publish these.
• Quarterly Financial Return: Insurers not part of a group for which the BMA is group supervisor must file quarterly unaudited financial statements and intra group transaction and risk concentration details by the last day of May, August and November each year.
• Alternative Capital: Insurers with alternative capital arrangements (e.g. cat bonds, sidecars, hybrid securities) must complete Schedule V(m) of the BSCR model.
• FCR publication: The Financial Condition Report must be 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.
• 2019 BSCR model changes: New Sanctions Schedule confirmation requirement, added outsourcing/employee/tax residency questions in Schedule V(a), updated stress scenarios in Schedule V(e), and integration of the Alternative Capital Schedule V(m) into the BSCR model.

These requirements apply specifically to the 2019 year end filing cycle and reflect updates to the BSCR model methodology and disclosure schedules for Class 4 and 3B insurers.

Key obligations

• File the Statutory Financial Return within four months after financial year end, or up to seven months if an extension is granted by the Authority
• File the Capital and Solvency Return (CSR), including BSCR, CISSA, catastrophe risk return, and other schedules, within four months after financial year end, or up to seven months with extension
• Complete the BSCR using both the 2018 and 2019 year end methodologies, unless approved by the Authority to use only the revised methodology
• File audited financial statements prepared under IFRS or recognised GAAP within four months of year end, or up to seven months with extension
• File quarterly financial returns (unaudited financial statements plus intra group transaction and counterparty exposure details) by the last day of May, August and November each year, if not part of a group supervised by the BMA
• Publish the Financial Condition Report on the insurer's website within 14 days of filing with the Authority, or provide it to the public within 10 days of a written request if no website exists
• Sign the Capital and Solvency Return Declaration with two directors and either the chief risk officer or chief financial officer
• Sign the Financial Condition Report by the chief executive and a senior executive responsible for actuarial, risk management, internal audit or compliance
• Complete Schedule V(m) of the BSCR model if the insurer has alternative capital arrangements
• Confirm the Suspicious Activity Reporting and Sanctions questionnaire as part of the Sanctions Schedule

Applies to

Class 4 insurers, Class 3B insurers, Bermuda general business insurers (Class 3A referenced for BSCR model changes)

Deadlines

• within four months after the end of the financial year (extendable up to seven months): Filing deadline for the Statutory Financial Return
• within four months after the end of the financial year (extendable up to seven months): Filing deadline for the Capital and Solvency Return
• within four months from the end of the financial year (extendable up to seven months): Filing deadline for audited financial statements
• on or before the last day of May, August and November of every year: Quarterly financial return filing deadline
• within 14 days of filing the FCR 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 if the insurer has no website