2023 Year-End Filing Requirements for Class D and E

Summary

This is a Bermuda Monetary Authority filing requirements document setting out the statutory and prudential returns that Class D and Class E (re)insurers must submit for the 2023 financial year-end, along with related deadlines and content requirements. It also describes changes made to the 2023 Bermuda Solvency Capital Requirement (BSCR) model, primarily affecting Long-Term commercial insurers.

• Statutory Financial Return (SFR): Includes Insurer Information Sheet, auditor's report, statutory financial statements (Forms 1SFS, 2SFS, 8SFS with notes), and a Statutory Declaration of Compliance.
• Capital and Solvency Return (CSR): Comprises the BSCR and schedules, capital and solvency declaration, AML questionnaire (direct long-term insurers), sanctions form, CISSA, eligible capital schedule, operational risk assessment, and the Financial Condition Report (FCR) with actuary's opinion.
• 2019 CSR methodology: For 2023 year-end, insurers must complete the BSCR under both the 2018 and revised 2019 methodologies unless they obtain Authority permission to use the revised methodology only.
• Audited financial statements: Separate GAAP or IFRS-compliant audited financial statements, with notes and auditor's report, must be filed and will be published by the Authority.
• Quarterly financial returns: Insurers not part of a group for which the Authority is group supervisor must file quarterly returns covering financial statements, intra-group transactions, risk concentrations, ECR ratio, and bond holdings.
• 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 for Long-Term insurers: Updates to IFRS 17 reporting forms, Schedule V(e) stress/scenario tests, removal of the mortgage loan stress test for Class C, D and E insurers, and clarifications to Schedules VI and VIA.

The document also includes additional guidance on correctly completing the Information Sheet tab (filing period start date and exchange rate fields) and clarifies that a qualified audit opinion does not include qualifications relating to condensed general purpose financial statements.

Key obligations

• File the Statutory Financial Return within four months after the 2023 financial year end, or up to seven months if the Authority grants an extension on application.
• File the Capital and Solvency Return within four months after the financial year end, or up to seven months with Authority approval, including both electronic and printed copies (or electronic-only via the BSCR submit macro).
• Have the Capital and Solvency Declaration signed 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 functions.
• Publish the Financial Condition Report on the insurer's website within 14 days of filing it with the Authority, or furnish a copy to the public within 10 days of a written request if no website exists.
• File audited financial statements prepared under IFRS, recognised GAAP, or other Authority-recognised standards within four months of financial year end (extendable to seven months).
• Complete the BSCR under both the 2018 and 2019 year-end methodologies for 2023 year-end, unless permission is obtained from the Authority via email to use the revised methodology only.
• File quarterly financial returns (balance sheet, income statement, intra-group transactions, risk concentrations, ECR ratio, bond holdings) on or before the last day of May, August and November each year, unless the insurer is 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.
• For Long-Term insurers reporting under IFRS 17, complete Forms 1ASFS, 2ASFS and 8ASFS.
• Ensure the Information Sheet tab's filing period start date and exchange/translation rate fields are accurately completed in the BSCR model.

Applies to

Class D insurers, Class E insurers, Bermuda Long-Term Commercial Insurers, Class C insurers (for certain BSCR model changes)

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.
• up to seven months (with Authority approval): Extended deadline for filing the SFR, CSR, and audited financial statements upon application to the Authority.
• on or before the last day of May, August and November each year: Quarterly financial return filing deadlines for insurers not part of a group for which the Authority is group supervisor.
• 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 a copy of the latest FCR to the public if the insurer has no website.