2020 Year-End Filing Requirements for Class 3A

Summary

This BMA filing requirements notice sets out what Class 3A (re)insurers must submit to the Bermuda Monetary Authority for their 2020 financial year-end, including the Statutory Financial Return, Capital and Solvency Return, audited financial statements, and related schedules. It also flags changes made to the BSCR model for the 2020 year-end and gives guidance on completing specific model fields.

• 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 BMA approval).
• Capital and Solvency Return (CSR): Includes the BSCR, associated Schedules (I to XXI as applicable), CISSA, Financial Condition Report (FCR), loss reserve specialist opinion, and numerous attachments; also due within four months of year end (extendable to seven months); must be signed by two directors and the principal representative, and filed both electronically and in print.
• 2020 CSR calculation: Insurers must complete the BSCR under both the 2018 methodology and the revised 2019 methodology unless they obtain BMA permission (via email to RiskAnalytics@bma.bm) to use the revised methodology only.
• Audited financial statements: Additional GAAP financial statements (IFRS, or GAAP of Bermuda, Canada, UK, US, or other recognised GAAP) must be filed within four months of year end (extendable to seven months); condensed general purpose financial statements may be submitted instead without prior approval.
• Alternative capital: Insurers with alternative capital arrangements (e.g. cat bonds, sidecars, collateralised reinsurance) 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 with the BMA, or, if no website, furnished to the public within 10 days of a written request.
• 2020 BSCR model changes: Updated stress scenarios in Schedule V(e) and a revised Schedule V(L) Segregated Accounts schedule apply to Class 3A, 3B and 4 insurers.
• Information Sheet guidance: Insurers must correctly complete the filing period start date and the exchange rate to Bermuda/US Dollar in the Information Sheet tab, and note that a qualified auditor's opinion solely due to condensed general purpose financial statements reporting will not be treated as a qualification under paragraph (m)(iv).

Key obligations

• File the Statutory Financial Return within four months after the financial year end (extendable up to seven months with BMA approval)
• File the Capital and Solvency Return, including the BSCR and all applicable schedules, within four months after the financial year end (extendable up to seven months with BMA approval)
• Complete the BSCR using both the 2018 and 2019 year-end methodologies for 2020, unless permission is obtained from the BMA to use the revised methodology only
• Have the Capital and Solvency Return Declaration signed by two directors and the insurer's principal representative
• Have the Financial Condition Report signed by the chief executive and a senior executive responsible for actuarial, risk management, internal audit or compliance functions
• Publish the Financial Condition Report on the insurer's website within 14 days of filing with the BMA, or provide it to the public within 10 days of a written request if no website exists
• Submit both an electronic and a printed copy of the CSR (including SFR forms)
• File audited financial statements (or condensed general purpose financial statements) within four months after the financial year end (extendable up to seven months with BMA approval)
• Complete Schedule V(m) of the BSCR model if the insurer has alternative capital arrangements
• Ensure the filing period start date and currency exchange rate fields on the Information Sheet tab are accurately completed

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, Capital and Solvency Return, and audited financial statements
• not exceeding seven months: Maximum extension period the Authority may allow for filing the SFR, CSR, or audited financial statements upon application
• 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 a copy of the latest Financial Condition Report to the public if the insurer has no website