2019 Year-End Filing Requirements for Insurance Groups

Summary

This document sets out the BMA's filing requirements for Bermuda insurance groups for the 2019 financial year end, listing the specific returns, statements and reports that designated insurers and insurance groups must prepare and submit, along with their content and deadlines.

• Group Statutory Financial Return (SFR): Must be filed within five months of financial year end (extendable to eight months by the Authority) and includes the cover sheet, solvency certificate, statutory financial statements (Forms 1, 2 and 8), reinsurance particulars, EBS reconciliation, list of non-insurance regulated entities and qualifying member particulars.
• Group Capital and Solvency Return (CSR): Comprises the BSCR and schedules (GSSA, catastrophe risk, group schedules, minimum margin of solvency, eligible capital, operational risk assessment), the Financial Condition Report (FCR) and the Group Actuary's opinion; reported in USD only, filed within the same five to eight month window, and requiring both electronic and hardcopy submission unless filed via the BSCR macro.
• Updated CSR calculation for 2019: Groups must complete the BSCR under both the 2018 and 2019 year end methodologies unless they obtain the Authority's permission (via email to RiskAnalytics@bma.bm) to use the revised methodology only.
• Audited Group Financial Statements: Consolidated financial statements of the parent company, prepared under IFRS, recognised GAAP (Bermuda, Canada, UK or US) or other Authority-recognised GAAP, must be audited annually and filed within the same five to eight month window; the Authority will publish filed statements.
• Quarterly Financial Return: Insurance groups must prepare and file quarterly unaudited consolidated financial statements and details of intra-group transactions, risk concentrations and largest unaffiliated counterparty exposures by the last day of May, August and November each year.
• FCR signing and publication: The FCR must be signed by the parent company's chief executive and either the chief risk officer or chief financial officer, and published on the group'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: Updates from the 2018 model include revised Financial Market and Liability Loss Accumulation stress scenarios under Schedule V(e), and an updated Technology Risk underwriting scenario and questionnaire.

These requirements apply specifically to the 2019 year end reporting cycle and reflect existing statutory obligations under the Insurance Act 1978 and the Insurance (Group Supervision) Rules 2011, plus prudential standards rules on group solvency.

Key obligations

• A designated insurer must submit the Group Statutory Financial Return within five months after financial year end, or up to eight months if the Authority allows an extension.
• A designated insurer must file the Group Capital and Solvency Return (Group CSR), reported in USD, within five months after financial year end, or up to eight months with Authority approval.
• For the 2019 year end, insurance groups must complete the BSCR under both the 2018 and 2019 methodologies unless they obtain the Authority's permission to use the revised methodology only, via email request to RiskAnalytics@bma.bm.
• The Declaration of the Group CSR must be signed by two directors (one of whom may be the chief executive) and either the chief risk officer or chief financial officer of the parent company.
• Every insurance group must prepare audited consolidated group financial statements of the parent company annually, audited by the group's approved auditor, and file them within five months after financial year end (up to eight months with approval).
• The Financial Condition Report must be signed by the parent company's chief executive and either the chief risk officer or chief financial officer.
• The FCR must be published on the insurance group's website within 14 days of the date it was filed with the Authority, or if no website exists, furnished to the public within 10 days of a written request.
• Both an electronic and a printed copy of the Group CSR (including SFR Forms) must be submitted, unless submitted electronically via the BSCR model's submit macro, in which case a hardcopy is not required.
• Every insurance group must prepare and file quarterly financial returns, including unaudited consolidated financial statements, intra-group transaction details and largest unaffiliated counterparty exposures, by the last day of May, August and November each year.

Applies to

designated insurers, insurance groups, parent companies of insurance groups

Deadlines

• within five months after the end of the financial year (extendable up to eight months with Authority approval): Filing of the Group Statutory Financial Return, Group Capital and Solvency Return, and audited group financial statements.
• within 14 days of the date the FCR was filed with the Authority: Publication of the Financial Condition Report on the insurance group's website.
• within 10 days of receipt of a written request: Furnishing the latest Financial Condition Report to the public if the group has no website.
• last day of May, August and November of every year: Filing of quarterly financial returns.