2021 Year-End Filing Requirements for Insurance Groups

Summary

This document sets out the BMA's specific filing requirements for insurance groups for the 2021 financial year end, consolidating the statutory return obligations, the 2021 Group Capital and Solvency Return (CSR) requirements, and changes to the BSCR model used for that year end.

• Group Statutory Financial Return (SFR): A designated insurer must submit a Group SFR (cover sheet, solvency certificate, Forms 1, 2 and 8, reinsurance particulars, EBS reconciliation, list of non-insurance regulated entities, qualifying member particulars) within five months of financial year end, extendable to eight months at the Authority's discretion.
• Group Capital and Solvency Return (CSR): Must be filed within the same five (up to eight) month window, reported in US dollars, comprising the BSCR schedules, GSSA, catastrophe risk return, group minimum margin of solvency, eligible capital, operational risk assessment, Financial Condition Report (FCR) and Group Actuary opinion; the declaration must be signed by two directors and the CRO or CFO.
• 2021 BSCR calculation methodology: For 2021 year end, groups must run the BSCR under both the 2018 and 2019 methodologies unless they apply by email to RiskAnalytics@bma.bm for permission to use only the revised methodology.
• Audited group financial statements: Groups must prepare consolidated financial statements under IFRS, recognised GAAP (Bermuda, Canada, UK, US) or other BMA-recognised GAAP, have them audited annually, and file them within five (up to eight) months of year end; the Authority will publish filed audited statements.
• Financial Condition Report publication: The FCR must be published on the group's website within 14 days of filing with the Authority, or, if there is no website, furnished to the public within 10 days of a written request.
• Quarterly financial returns: Groups must file quarterly financial returns (unaudited consolidated statements, intra-group transaction and risk concentration details, ECR ratio, CISSA, bond holdings by rating, catastrophe event details) by the last day of May, August and November each year.
• CSR submission format: Both an electronic version (via the BSCR model submit macro) and a printed copy of the Group CSR, including SFR forms, must be submitted.
• 2021 BSCR model changes: Updates include revised Schedule IV(f) exposure of risk reporting by subsidiary location, updated Schedule V(e) financial market stress scenarios, new cyber underwriting stress scenarios for relevant insurers, and a requirement to capture deferred taxes under both the 2018 and 2019 methodologies.

These requirements apply specifically to the 2021 financial year end filing cycle and reflect existing obligations under the Insurance Act 1978 and the Insurance (Group Supervision) Rules 2011, alongside year-specific BSCR model changes.

Key obligations

• A designated insurer must submit a Group Statutory Financial Return within five months after financial year end, or up to eight months if the Authority allows.
• A designated insurer must file a Group Capital and Solvency Return (CSR), reported in US dollars, within five months after financial year end (up to eight months with Authority approval), with the declaration signed by two directors and the CRO or CFO.
• For the 2021 year end, insurance groups must complete the BSCR under both the 2018 and 2019 year end methodologies unless they obtain the Authority's permission (via email to RiskAnalytics@bma.bm) to use only the revised methodology.
• Insurance groups must prepare annual consolidated financial statements under IFRS, applicable GAAP, or other Authority-recognised standards, audited by the group's approved auditor.
• A designated insurer must file audited group financial statements within five months after financial year end (up to eight months with Authority approval).
• The Financial Condition Report must be published on the group's website within 14 days of filing with the Authority, or furnished to the public within 10 days of a written request if the group has no website.
• Insurance groups must prepare and file quarterly financial returns to the Authority on or before the last day of May, August and November each year.
• Both an electronic version (via the BSCR model submit macro) and a printed copy of the Group CSR, including SFR forms, must be submitted.

Applies to

insurance groups, designated insurers, parent companies of insurance groups

Deadlines

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