2020 Year-End Filing Requirements for Class E

Summary

This document sets out the Bermuda Monetary Authority's filing requirements for Class E (re)insurers for the 2020 financial year end. It lists the statutory returns, capital and solvency filings, and audited financial statements that must be submitted, along with related forms, schedules and deadlines.

• Statutory Financial Return (SFR): Must include the Insurer Information Sheet, auditor's report, Statutory Financial Statements (Forms 1SFS, 2SFS, 8SFS with notes) and a Statutory Declaration of Compliance; filed within four months of financial year end (extendable to seven months with Authority approval).
• Capital and Solvency Return (CSR): Comprises the BSCR and schedules, Capital and Solvency Declaration, AML Questionnaire (direct long-term insurers), Sanctions questionnaire, CISSA, Eligible Capital schedule, Financial Condition Report (FCR), and Actuary's Opinion on EBS Technical Provisions; also due within four months (extendable to seven).
• Updated CSR calculation: For 2020 year end, insurers must complete the BSCR under both the 2018 and revised 2019 methodologies unless they obtain Authority permission to use the revised methodology only, via email request to RiskAnalytics@bma.bm.
• Audited Financial Statements: Separate GAAP or IFRS financial statements (with notes and auditor's report) must be filed within four months of year end (extendable to seven months); the Authority will publish these.
• Alternative Capital: Insurers with alternative capital arrangements (e.g. cat bonds, sidecars, collateralised reinsurance) must complete Schedule V(m) of the BSCR model.
• Long-Term insurer BSCR changes: For 2020, Schedule V(e) stress/scenario tests were updated (including a new extreme US yield curve widening scenario) and Schedule V(L) segregated accounts schedule was revised.

The document also gives practical guidance on completing the Information Sheet tab (filing period dates, currency exchange rate reporting, and treatment of qualified audit opinions) and on submission mechanics for the CSR, including electronic filing via the BSCR model's submit macro.

Key obligations

• File the Statutory Financial Return (SFR) within four months after financial year end, or up to seven months with Authority approval.
• File the Capital and Solvency Return (CSR), including the BSCR, schedules, declarations, CISSA, FCR and Actuary's Opinion, within four months after financial year end, or up to seven months with Authority 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 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 it with the Authority, or furnish a copy to the public within 10 days of a written request if no website exists.
• Submit both an electronic version and a printed copy of the CSR, including the SFR forms, unless approved to submit electronically only via the BSCR model's submit macro.
• Complete the BSCR based on both the 2018 year end methodology and the revised 2019 year end CSR calculation for the 2020 year end, unless permission is obtained to use the revised methodology only.
• File audited financial statements prepared under IFRS, applicable GAAP, or other Authority-recognised standards within four months of financial year end, or up to seven months with approval.
• Complete Schedule V(m) of the BSCR model if the insurer has alternative capital arrangements.
• Ensure the Information Sheet tab's filing period start date and currency exchange rate fields are completed correctly.

Applies to

Class E insurers, 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), Capital and Solvency Return (CSR), and Audited Financial Statements.
• not exceeding seven months: Maximum extended filing period for SFR, CSR and audited financial statements if approved by the Authority 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.