2024 Year-End Filing Requirements for Class 4 and Class 3B

Summary

This BMA document sets out the year end filing requirements for Bermuda Class 4 and Class 3B (re)insurers for the 2024 financial year, covering the Statutory Financial Return (SFR), Capital and Solvency Return (CSR), audited financial statements, quarterly financial returns and alternative capital reporting. It also flags changes to the 2024 BSCR model affecting Class 3A, 3B and 4 general business insurers.

• 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, CISSA, Catastrophe Risk Return, Loss Triangles, Eligible Capital schedule, Financial Condition Report (FCR) and loss reserve specialist opinion, filed within four months (extendable to seven months); declaration must be signed by two directors and either the CRO or CFO.
• Financial Condition Report: Must be signed by the CEO and a relevant senior executive, and published on the insurer's website within 14 days of filing with the Authority, or furnished to the public within 10 days of a written request if the insurer has no website.
• BSCR methodology for 2024: Insurers must complete the BSCR under both the 2019 and 2024 year end methodologies; those wanting to use only the 2024 methodology must apply by email to RiskAnalytics@bma.bm.
• Audited financial statements: Separate GAAP/IFRS audited financial statements, with notes and auditor's report, must be filed within four months of financial year end (extendable to seven months); the Authority will publish these.
• Quarterly financial returns: Insurers not subject to group supervision by the Authority must file quarterly returns (balance sheet, income statement, intra group transaction details, ECR ratio, bond holdings, catastrophe details) by the last day of May, August and November.
• Alternative capital: Insurers with capital arrangements such as cat bonds, sidecars or collateralized reinsurance must complete Schedule V(m) of the BSCR model.
• 2024 BSCR model changes: Updates include enhanced cyber underwriting stress test detail, added rating agency fields (AM Best, Fitch) in Schedules VI and VIA, inclusion of Man-Made Catastrophe Risk as a capital requirement, and new Risk Margin reporting for general business insurers.

The document also gives practical completion guidance, including correctly entering the filing period start date and exchange rate on the Information Sheet tab, and reminds insurers that the Latent Liability Stress Test in Schedule V(e) is required annually.

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 within four months after financial year end (or up to seven months with Authority approval), with the declaration signed by two directors and either the CRO or CFO.
• 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 no website exists.
• Submit both an electronic and a printed copy of the CSR, including SFR forms.
• Complete the BSCR using both the 2019 and 2024 year end methodologies, or apply by email to RiskAnalytics@bma.bm to use the 2024 methodology only.
• File audited financial statements prepared under IFRS or recognised GAAP within four months of financial year end (or up to seven months with approval).
• File quarterly financial returns by the last day of May, August and November if 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 annual Latent Liability Stress Test in Schedule V(e).

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): Filing deadline for the Statutory Financial Return, Capital and Solvency Return, and audited financial statements.
• last day of May, August and November: Quarterly financial return filing deadlines for insurers not under group supervision by the Authority.
• within 14 days of filing the FCR 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.