2021 Year-End Filing Requirements for Class 4 and Class 3B

Summary

This document sets out the Bermuda Monetary Authority's filing requirements for Class 4 and Class 3B (re)insurers for the 2021 financial year end, consolidating the statutory returns, capital and solvency reporting, audited financial statements, quarterly returns, and alternative capital reporting that apply to these licence classes. It also flags specific changes made to the 2021 BSCR model compared to 2020, relevant to Class 3A, 3B and 4 insurers.

• Statutory Financial Return (SFR): Comprises 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): Includes the BSCR and schedules (CISSA, Catastrophe Risk Return, Loss Triangles, Eligible Capital, Financial Condition Report, loss reserve specialist opinion, etc), filed within the same four to seven month window; must be signed by two directors and the CRO or CFO, and submitted in both electronic and printed form.
• Financial Condition Report (FCR): Must be signed by the CEO and a senior executive responsible for actuarial, risk, internal audit or compliance functions, and published on the insurer's website within 14 days of filing (or provided to the public within 10 days of a written request if the insurer has no website).
• Audited Financial Statements: GAAP compliant audited statements (IFRS, or GAAP of Bermuda, Canada, UK or US, or other Authority-recognised GAAP) with auditor's report, filed within the same four to seven month window; the Authority publishes these once filed.
• Quarterly Financial Return: Insurers not part of a group for which the Authority is group supervisor must file quarterly returns by the last day of May, August and November, covering unaudited financials, intra-group transactions, risk concentrations, ECR ratio, CISSA, bond holdings and catastrophe events.
• Alternative Capital: Insurers with non-shareholder capital arrangements (cat bonds, sidecars, ILWs, hybrid securities, letters of credit, etc) must complete Schedule V(m) of the BSCR model.
• 2021 BSCR model changes: Updated Schedule IV(f) exposure of risk reporting by location, updated Schedule V(e) stress and scenario tests (including new cyber underwriting scenarios), and removal of 2018 year end methodology calculations.

The document also provides additional completion guidance on the Information Sheet tab, including confirming the filing period start date, entering the correct currency exchange or translation rate, and clarifying that qualified audit opinions relating to condensed general purpose financial statements are not treated as qualified opinions for this purpose.

Key obligations

• File the Statutory Financial Return within four months after financial year end, or up to seven months if the Authority approves an extension
• File the Capital and Solvency Return within four months after financial year end, or up to seven months with Authority approval
• Ensure the CSR declaration is signed by two directors (one of whom may be the CEO) and either the chief risk officer or chief financial officer
• Submit the CSR in both electronic and printed form, including the SFR forms
• Have the Financial Condition Report signed by the CEO and a senior executive responsible for actuarial, risk, 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 provide a copy to the public within 10 days of a written request if there is no website
• File audited financial statements prepared under IFRS or recognised GAAP within four months of financial year end, or up to seven months with Authority approval
• File quarterly financial returns by the last day of May, August and November each year, if not part of a group for which the Authority is group supervisor
• Complete Schedule V(m) of the BSCR model if the insurer has alternative capital arrangements
• Complete Schedule IV(f) with location, gross premium written, claims paid and reserves for the 2021 year end filing
• Complete updated Schedule V(e) stress and scenario tests, including cyber underwriting scenarios if applicable
• Confirm and correctly complete the filing period start date and currency exchange/translation rate on the Information Sheet tab

Applies to

Class 4 insurers, Class 3B insurers, Class 3A insurers (for BSCR model changes)

Deadlines

• within four months after the end of the financial year (extendable up to seven months with Authority approval): Filing deadline for the Statutory Financial Return, Capital and Solvency Return, and audited financial statements
• last day of May, August and November of every year: Filing deadline for quarterly financial returns for insurers not part of a group supervised by the Authority
• within 14 days of filing the Financial Condition Report: Deadline for publishing the FCR on the insurer's website
• within 10 days of receipt of a written request: Deadline for furnishing the latest Financial Condition Report to the public if the insurer has no website