2024 Year-End Filing Requirements for Class C

Summary

This document sets out the Bermuda Monetary Authority's filing requirements for Class C (re)insurers for the 2024 financial year end, covering the Statutory Financial Return (SFR), Capital and Solvency Return (CSR), audited financial statements, and alternative capital reporting. It also details the specific changes made to the 2024 BSCR model for Bermuda long term commercial insurers as compared to the 2023 model.

• Statutory Financial Return: Comprises the Insurer Information Sheet, auditor's report, statutory financial statements (Forms 1SFS, 2SFS, 8SFS with notes), and Statutory Declaration of Compliance; may be reported in the insurer's chosen currency.
• Capital and Solvency Return: Comprises the BSCR and schedules (or approved internal capital model), including the CSR Declaration, AML Questionnaire (direct long term insurers), Sanctions section, BSCR Schedules, CISSA, Eligible Capital schedule, Operational Risk assessment, Schedule of Regulated Non-Insurance Financial Operating Entities, Schedule of Solvency, Financial Condition Report (FCR), and actuary's opinion on EBS Technical Provisions.
• BSCR methodology: For 2024 year end, insurers must complete the BSCR using the 2018, 2019 and 2024 year end methodologies; insurers wanting to use only the 2024 methodology must apply by email to RiskAnalytics@bma.bm.
• Audited financial statements: Additional GAAP financial statements (IFRS, or Bermuda/Canada/UK/US GAAP, or other BMA-recognised GAAP) must be filed with notes and auditor's report; Class C and D insurers may instead submit condensed general purpose financial statements under the Insurance Account Rules.
• Alternative capital: Insurers with capital arrangements financed other than by shareholders' capital (e.g. cat bonds, sidecars, ILWs) must complete Schedule V(m) of the BSCR model.
• 2024 BSCR model changes for long term insurers: Schedule VI and VIA amended to add a 'Rating Agencies Used' field (AM Best and Fitch); Schedule VIIA now includes Lapse Risk and Schedule VIIB now includes Expense Risk as regulatory capital requirements; Risk Margin information has been added for the full 24 YE BSCR Rules.

The document also gives practical filing guidance, including signature requirements, publication obligations for the Financial Condition Report, submission format (electronic and printed), and instructions for completing specific fields in the BSCR model such as valuation basis, filing period start date, and exchange rate.

Key obligations

• File the Statutory Financial Return (SFR) within four months after the end of the 2024 financial year, or up to seven months if a longer period is approved by the Authority on application
• File the Capital and Solvency Return (CSR), including the BSCR, schedules, Financial Condition Report and actuary's opinion, within four months after the end of the financial year, or up to seven months with Authority approval
• Ensure the CSR declaration is signed by two directors and the insurer's principal representative
• Ensure the Financial Condition Report is signed by the chief executive and the senior executive responsible for actuarial, risk management, internal audit or compliance function
• Publish the FCR on the insurer's website within 14 days of the date it is filed with the Authority, or, if no website exists, furnish a copy to the public within 10 days of a written request
• Submit both an electronic and a printed copy of the CSR (including SFR forms), or apply to submit electronically only via the BSCR model's submit macro
• Complete the BSCR using the 2018, 2019 and 2024 year end methodologies for the 2024 year end; apply by email to RiskAnalytics@bma.bm to use the 2024 methodology only
• File audited financial statements prepared under IFRS or recognised GAAP, with notes and auditor's report, within four months of financial year end (or up to seven months with approval)
• Insurers with alternative capital arrangements must complete Schedule V(m) of the BSCR model
• Long term insurers must select their valuation basis (Standard Approach, Scenario-Based Approach, or Both) on the Insurer Information tab
• Ensure the filing period start date and the exchange/translation rate fields on the Information Sheet tab are correctly completed

Applies to

Class C (re)insurers, Class D insurers, Bermuda Long-Term Commercial Insurers

Deadlines

• within four months after the end of the financial year (up to seven months with Authority approval): Filing of the Statutory Financial Return (SFR)
• within four months after the end of the financial year (up to seven months with Authority approval): Filing of the Capital and Solvency Return (CSR)
• within four months from the end of the financial year (up to seven months with Authority approval): Filing of audited financial statements
• within 14 days of the date the FCR was filed with the Authority: Publication of the Financial Condition Report on the insurer's website
• within 10 days of receipt of a written request: Furnishing a copy of the latest FCR to the public if the insurer has no website