2021 Year-End Filing Requirements for Class D and E

Summary

This BMA document sets out the specific filing requirements that Class D and Class E (re)insurers must meet for their 2021 financial year-end, covering statutory financial returns, capital and solvency returns, audited financial statements, quarterly returns, and alternative capital reporting. It also lists changes made to the 2021 BSCR model that apply specifically to Bermuda Long-Term Commercial Insurers.

• 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 year-end (extendable to seven months with Authority approval).
• Capital and Solvency Return (CSR): Includes the BSCR, associated schedules (II to VIIIA, XVIII to XXI), CISSA, Eligible Capital schedule, Financial Condition Report (FCR), and Actuary's Opinion; filed within four months of year-end (extendable to seven months); CSR declaration must be signed by two directors and the principal representative.
• FCR publication: The Financial Condition Report must be signed by the CEO and a relevant senior executive, 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 no website exists.
• Dual methodology for 2021: Insurers must complete the BSCR using both the 2018 and 2019 year-end CSR calculation methodologies unless they obtain the Authority's permission (via email to RiskAnalytics@bma.bm) to use the revised methodology only.
• Audited Financial Statements: Must be prepared under IFRS, recognised GAAP (Bermuda, Canada, UK, US), or other Authority-recognised standards, and filed within four months of year-end (extendable to seven months); the Authority will publish these once filed.
• Quarterly Financial Returns: Insurers not part of a group supervised by the Authority must file quarterly returns (unaudited financials, intra-group transaction details, top counterparty exposures, ECR ratio, CISSA, and bond holdings by BSCR rating) by the last day of May, August and November.
• Alternative Capital: Insurers with alternative capital arrangements (e.g. cat bonds, sidecars, collateralized reinsurance) must complete Schedule V(m) of the BSCR model.
• Long-Term insurer BSCR changes: For 2021, Long-Term insurers must report subsidiary location, claims and reserves data in Schedule IV(f), apply updated financial market stress scenarios in Schedule V(e), capture deferred taxes under both methodologies, and correctly complete the Information Sheet's filing period start date and currency exchange rate fields.

Both an electronic and a printed copy of the CSR (including SFR forms) must normally be submitted, though insurers may apply to submit electronically only via the BSCR model's built-in submission macro.

Key obligations

• File the Statutory Financial Return within four months of the 2021 financial year-end, or up to seven months with Authority approval.
• File the Capital and Solvency Return (including BSCR, schedules, CISSA, FCR and Actuary's Opinion) within four months of year-end, or up to seven months with Authority approval.
• Have the CSR declaration of capital and solvency signed by two directors and the insurer's principal representative.
• 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 within 10 days of a written public request if no website exists.
• Submit both an electronic and printed copy of the CSR (including SFR forms), unless approved to submit electronically only.
• Complete the BSCR using both the 2018 year-end and 2019 year-end CSR calculation methodologies for the 2021 year-end, unless permission is obtained to use the revised methodology only.
• File audited financial statements prepared under IFRS, recognised GAAP, or other Authority-approved standards within four months of year-end, or up to seven months with approval.
• File quarterly financial returns by the last day of May, August and November, 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.
• Long-Term insurers must correctly complete updated Schedule IV(f) location data, Schedule V(e) stress scenarios, and Information Sheet filing period and exchange rate fields in the 2021 BSCR model.

Applies to

Class D insurers, Class E insurers, Long-Term Commercial Insurers

Deadlines

• within four months after the end of the financial year: Deadline to file the Statutory Financial Return (SFR).
• up to seven months after the end of the financial year (with Authority approval): Extended deadline for filing the SFR on application to the Authority.
• within four months after the end of the financial year: Deadline to file the Capital and Solvency Return (CSR).
• up to seven months after the end of the financial year (with Authority approval): Extended deadline for filing the CSR on application to the Authority.
• within 14 days of filing 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 the public with the latest Financial Condition Report if the insurer has no website.
• within four months after the end of the financial year (up to seven months with approval): Deadline to file audited financial statements.
• on or before the last day of May, August and November of every year: Deadline to file quarterly financial returns.