2020 Year-End Filing Requirements for Insurance Groups

Summary

This BMA document sets out the filing requirements that designated insurers and insurance groups must meet for the 2020 financial year end, consolidating statutory return, capital, audited statement and quarterly reporting obligations under the Insurance Act 1978 and the Insurance (Group Supervision) Rules 2011. It also flags specific methodology changes to the 2020 Bermuda Solvency Capital Requirement (BSCR) model for groups.

• Group Statutory Financial Return (SFR): Must be filed within five months of financial year end (extendable to eight months with BMA approval), including cover sheet, solvency certificate, Forms 1/2/8, reinsurance particulars, EBS reconciliation, list of non-insurance regulated entities, and qualifying member details.
• Group Capital and Solvency Return (CSR): Includes the Group BSCR, schedules, GSSA, catastrophe risk return, group minimum margin of solvency, eligible capital, operational risk assessment, Financial Condition Report (FCR) and Group Actuary opinion; reported in USD; due on the same five to eight month timeline; declaration must be signed by two directors (one may be CEO) plus the CRO or CFO.
• 2020 BSCR calculation methodology: Groups must complete the BSCR using both the 2018 year end methodology and the revised 2019 year end methodology unless they obtain BMA 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, US) or other BMA-recognised standards, audited annually and filed within five months of year end (extendable to eight months); the BMA will publish filed statements.
• Financial Condition Report (FCR) publication: The FCR must be published on the group's website within 14 days of filing with the BMA, or, if there is no website, furnished to the public within 10 days of a written request.
• Quarterly Financial Return: Groups must prepare and file quarterly unaudited consolidated financial statements plus intra-group transaction, reinsurance and unaffiliated counterparty exposure details, due by the last day of May, August and November each year.
• 2020 BSCR model changes: Schedule V(e) stress/scenario tests updated for the financial market scenario, and Schedule V(L) segregated accounts schedule revised to align with updated regulatory reporting requirements.

These requirements apply specifically to the 2020 year end reporting cycle and reference underlying statutory rules that remain in force; insurers should confirm current-year forms and deadlines against the latest BMA guidance.

Key obligations

• A designated insurer must submit a Group Statutory Financial Return within five months after the end of the financial year (or up to eight months with BMA approval).
• A designated insurer must file the Group Capital and Solvency Return (CSR), reported in USD, within five months after year end (or up to eight months with BMA approval), with the declaration signed by two directors and the CRO or CFO.
• Insurance groups must complete the BSCR using both the 2018 and revised 2019 year end methodologies for 2020 year end, unless BMA permission is obtained via email to use the revised methodology only.
• Every insurance group must prepare audited consolidated financial statements of the parent company annually, under IFRS, recognised GAAP, or other BMA-recognised standards, and file them within five months of year end (or up to eight months with approval).
• The Financial Condition Report must be published on the group's website within 14 days of filing with the BMA, or furnished to the public within 10 days of a written request if no website exists.
• Every insurance group must prepare and file a quarterly financial return, including intra-group transaction and counterparty exposure details, by the last day of May, August and November each year.

Applies to

insurance groups, designated insurers

Deadlines

• within five months after the end of the financial year (extendable to eight months with BMA approval): Deadline for filing the Group Statutory Financial Return, Group Capital and Solvency Return, and audited group financial statements.
• within 14 days of filing with the Authority: Deadline to publish the Financial Condition Report on the insurance group's website.
• within 10 days of receipt of a written request: Deadline to furnish the public with a copy of the latest Financial Condition Report if the group has no website.
• on or before the last day of May, August and November of every year: Deadline for filing quarterly financial returns.