2023 Year-End Filing Requirements for Class 4 and Class 3B

Summary

This BMA document sets out the specific filing requirements and deadlines that Class 4 and Class 3B (re)insurers must meet for the 2023 financial year end, covering the Statutory Financial Return, Capital and Solvency Return, audited financial statements, quarterly financial returns and alternative capital reporting. It also summarizes changes made to the 2023 BSCR model compared to 2022 for 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 on application).
• Capital and Solvency Return (CSR): Includes the BSCR and schedules (or an approved internal capital model), CISSA, catastrophe risk return, loss triangles, eligible capital, and the Financial Condition Report; filed within four months of year end (extendable to seven months); the declaration must be signed by two directors and either the CRO or CFO, and both electronic and printed copies must be submitted.
• Financial Condition Report (FCR): Must be signed by the CEO and a senior executive responsible for actuarial, risk management, internal audit or compliance, 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 there is no website).
• Audited financial statements: Prepared under IFRS or recognised GAAP and filed with the Authority within four months of year end (extendable to seven months); the Authority will publish these once filed.
• Quarterly financial returns: Required from insurers not supervised as part of a group by the Authority, due by the last day of May, August and November each year, covering unaudited financial statements, intra-group transactions, risk concentrations, ECR ratio, bond holdings and catastrophe event details.
• Alternative capital: Insurers with alternative capital arrangements (e.g. cat bonds, sidecars, collateralized reinsurance) must complete Schedule V(m) of the BSCR model.
• 2023 BSCR model changes: Includes new IFRS 17 reporting forms (1ASFS, 2ASFS, 8ASFS), revised Schedule V(e) stress/scenario tests, updated Schedule VI and VIA, and guidance on completing the Information Sheet tab and Latent Liability Stress Test.

The document functions as an operational filing guide rather than new legislation, referencing existing provisions of the Insurance Act 1978 and related Rules that already impose these obligations.

Key obligations

• File the Statutory Financial Return within four months after the financial year end, or up to seven months if an extension is granted by the Authority.
• File the Capital and Solvency Return (including BSCR, CISSA, catastrophe risk return and Financial Condition Report) within four months after the financial year end, or up to seven months with an extension.
• Ensure the Capital and Solvency Return declaration is signed by two directors (one of whom may be the CEO) and either the chief risk officer or chief financial officer.
• Ensure the Financial Condition Report is 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 it with the Authority, or if no website exists, provide a copy to the public within 10 days of a written request.
• Submit both an electronic and a printed copy of the Capital and Solvency Return (including SFR forms).
• File audited financial statements prepared under IFRS or recognised GAAP within four months after the financial year end, or up to seven months with an extension.
• File quarterly financial returns by the last day of May, August and November each year, unless the insurer is supervised as part of a group by the Authority.
• Complete Schedule V(m) of the BSCR model if the insurer has alternative capital arrangements.
• Complete the Latent Liability Stress Test in Schedule V(e) annually.

Applies to

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

Deadlines

• within four months after the end of the financial year (extendable up to seven months): Filing of the Statutory Financial Return
• within four months after the end of the financial year (extendable up to seven months): Filing of the Capital and Solvency Return
• within four months after the end of the financial year (extendable up to seven months): Filing of audited financial statements
• within 14 days of filing with the Authority: Publication of the Financial Condition Report on the insurer's website
• within 10 days of receipt of a written request: Provision of the Financial Condition Report to the public if the insurer has no website
• on or before the last day of May, August and November of every year: Filing of quarterly financial returns