2022 Year-End Filing Requirements for Class 4 and Class 3B

Summary

This BMA document sets out the 2022 financial year end filing requirements for Class 4 and Class 3B (re)insurers, listing the statutory returns, capital and solvency filings, audited financial statements, and quarterly returns that must be submitted, and describing changes made to the 2022 BSCR model compared to 2021.

• 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 on application).
• Capital and Solvency Return (CSR): Comprises the BSCR, associated Schedules I to XXI (as applicable), CISSA, Financial Condition Report (FCR), and loss reserve specialist opinion; filed within four months of financial year end (extendable to seven months); the declaration must be signed by two directors and either the CRO or CFO; both electronic and printed copies required.
• Financial Condition Report (FCR): Signed by the CEO and a senior executive responsible for actuarial, risk, internal audit or compliance functions; must be published on the insurer's website within 14 days of filing, or furnished to the public within 10 days of a written request if there is no website.
• Audited Financial Statements: Prepared under IFRS, or GAAP recognised in Bermuda, Canada, the UK, US, or other Authority-recognised GAAP; filed within four months of financial year end (extendable to seven months); the Authority publishes these once filed.
• Quarterly Financial Return: Required from every insurer not part of a group for which the Authority is group supervisor; filed by the last day of May, August and November each year, covering unaudited financial statements, intra-group transactions, top counterparty exposures, ECR ratio, CISSA, bond holdings and catastrophe events.
• Alternative Capital: Insurers with alternative capital arrangements (e.g. cat bonds, sidecars, collateralized reinsurance) must complete Schedule V(m) of the BSCR model.
• 2022 BSCR Model Changes: Updates affect Schedule IIF (equity holdings), Schedule IV(f) (claims paid now on gross basis), Schedule V(e) stress/scenario tests including cyber underwriting questions, Schedule VI and VIA (look-through reporting), and the ECR Ratio Met validation check to include Eligible Capital results.

The document also gives practical guidance on completing the Information Sheet tab correctly, including the filing period start date and currency exchange rate fields, which affect BSCR calculations.

Key obligations

• File the Statutory Financial Return (SFR) within four months after financial year end, or up to seven months if the Authority approves an extension on application
• File the Capital and Solvency Return (CSR), including the BSCR and required Schedules, within four months after financial year end, or up to seven months on approved extension
• Ensure the CSR declaration is signed by two directors (one may be the CEO) and either the chief risk officer or chief financial officer
• Ensure the Financial Condition Report is signed by the CEO 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 with the Authority, or furnish a copy within 10 days of a written request if there is no website
• Submit both an electronic and printed copy of the CSR, including SFR Forms
• File audited financial statements prepared under IFRS or recognised GAAP within four months after financial year end, or up to seven months on approved extension
• File quarterly financial returns by the last day of May, August and November each year, if the insurer is 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 the Information Sheet tab's filing period start date and currency exchange rate fields correctly in the BSCR model

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 on application): Deadline for filing the Statutory Financial Return, Capital and Solvency Return, and Audited Financial Statements
• on or before the last day in the months of May, August and November of every year: Deadline for filing quarterly financial returns (for insurers not part of a group for which the Authority is group supervisor)
• 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 request made in writing: Deadline to furnish the public with a copy of the latest Financial Condition Report if the insurer has no website