2022 Year-End Filing Requirements for Class D and E

Summary

This BMA document sets out the specific filing requirements for Class D and Class E (re)insurers for the 2022 financial year-end, covering the Statutory Financial Return, Capital and Solvency Return, audited financial statements, quarterly financial returns and alternative capital reporting. It also details changes made to the 2022 BSCR model for Bermuda long-term commercial insurers as compared to 2021.

• 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; must be 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, Capital and Solvency Declaration, AML Questionnaire (direct long-term insurers), Sanctions form, CISSA, Eligible Capital schedule, Financial Condition Report (FCR), Actuary's Opinion, and other schedules; filed within four months (extendable to seven), in both electronic and printed form, and signed by two directors and the principal representative.
• 2022 CSR calculation: Insurers must run the BSCR under both the 2018 and revised 2019 methodologies unless the Authority grants permission (via email application) to use the 2019 methodology only.
• Audited financial statements: Must be prepared under IFRS, recognised GAAP (Bermuda, Canada, UK, US) or other Authority-recognised GAAP, and filed within four months (extendable to seven) of financial year end; the Authority will publish these once filed.
• Quarterly financial return: Insurers not part of a group for which the Authority is group supervisor must file quarterly unaudited financial statements, intra-group transaction and risk concentration details, ECR ratio, CISSA and bond ratings information by the last day of May, August and November each year.
• Alternative capital: Insurers with alternative capital arrangements (e.g. cat bonds, sidecars, hybrid securities) must complete Schedule V(m) of the BSCR model.
• BSCR model changes (long-term insurers): Updates for 2022 include amendments to Schedule IIF (equity holdings), Schedule V(e) stress scenarios, Schedule VI and VIA look-through reporting, and the Summary tab ECR Ratio validation check.

The Financial Condition Report has specific publication obligations: it must be published on the insurer's website within 14 days of filing with the Authority, or, if the insurer has no website, provided to the public within 10 days of a written request.

Key obligations

• File the Statutory Financial Return within four months after financial year end, or up to seven months with Authority approval
• File the Capital and Solvency Return (CSR), including BSCR and required schedules, within four months after financial year end, or up to seven months with Authority approval
• Sign the Capital and Solvency Declaration by two directors and the insurer's principal representative
• Have the Financial Condition Report signed by the chief executive and a senior executive responsible for actuarial, risk management, internal audit or compliance
• Publish the Financial Condition Report on the insurer's website within 14 days of filing with the Authority, or if no website, furnish a copy to the public within 10 days of a written request
• Submit both an electronic and a printed copy of the CSR (which includes the SFR forms)
• Complete the BSCR using both the 2018 and 2019 year-end methodologies unless permission is obtained from the Authority (via email to RiskAnalytics@bma.bm) to use the 2019 methodology only
• File audited financial statements prepared under IFRS or recognised GAAP within four months after financial year end, or up to seven months with Authority approval
• File quarterly financial returns (including balance sheet, income statement, intra-group transaction details, largest counterparty exposures, ECR ratio and CISSA) by the last day of May, August and November each year, for insurers 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

Applies to

Class D insurers, Class E insurers, Class C insurers, long-term commercial insurers

Deadlines

• within four months after the end of the financial year: Deadline for filing the Statutory Financial Return, Capital and Solvency Return, and audited financial statements
• not exceeding seven months: Maximum extended period the Authority may allow, on application, for filing the SFR, CSR, or audited financial statements
• on or before the last day in the months of May, August and November of every year: Filing deadline for 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: Deadline to publish the Financial Condition Report on the insurer's website after filing with the Authority
• within 10 days of receipt of a request made in writing: Deadline to furnish a copy of the latest Financial Condition Report to the public if the insurer has no website