2024 Year-end Long-Term Instructions Handbook

Summary

This is the BMA's 2024 year end Instruction Handbook for the Capital and Solvency Return, covering Long-Term (life) insurers in Class E, Class D and Class C, plus references to Class 4, Class 3B and Class 3A insurers and insurance groups. It explains how to complete and submit the Bermuda Solvency Capital Requirement (BSCR) model, which is used to calculate an insurer's Enhanced Capital Requirement (ECR) and Target Capital Level (TCL) under the Prudential Standard Rules made under section 6A of the Insurance Act 1978.

• Annual filing: Every Class 4, Class 3B, Class 3A, Class E, Class D and Class C insurer, and every Insurance Group, must submit a completed capital and solvency return to the BMA on or before its filing date.
• Submission method: Insurers may file electronically via the Submit macro in the BSCR model; if not filing electronically only, both an electronic and printed version must be forwarded to the BMA, and the return must not be altered or modified.
• Declaration: The capital and solvency return declaration must be signed and dated by two directors and the insurer's principal representative and included as an attachment.
• Attachments: Insurers must attach General Purpose Financial Statements (audit report, financial statements and notes as one document), a signed Declaration of Compliance under section 15A of the Act, and a Financial Condition Report as required under section 3 of the Insurance (Public Disclosure) Rules 2015.
• Dual methodology for 2024: For the 2024 year end, insurers must complete both the prior year-end methodology and the new methodology for certain schedules (e.g. Schedules IIB, IIC, IID, IIE, IIF, XXA, XXIA, XXIII and Schedules VIIA, VIIB) unless they obtain BMA permission by email to use the new methodology alone.
• Record retention: Work papers and supporting documents used to prepare the BSCR submission must be retained and made available to the BMA on request.

The handbook is a technical reference rather than a standalone rule; it details form-by-form and schedule-by-schedule completion guidance (e.g. risk schedules, eligible capital, solvency self-assessment) and directs insurers to the BSCR E-Filing Manual and riskanalytics@bma.bm for submission difficulties or interpretive questions.

Key obligations

• Every Class 4, Class 3B, Class 3A, Class E, Class D and Class C insurer, and every Insurance Group, must submit a completed capital and solvency return to the BMA on or before its filing date.
• The capital and solvency return declaration must be signed and dated by two directors and the insurer's principal representative and attached to the submission.
• Insurers must attach General Purpose Financial Statements, a signed Declaration of Compliance, and a Financial Condition Report as specified attachments.
• For the 2024 year end, insurers must complete both the prior and new methodology for specified schedules unless they obtain BMA permission via email to use only the new methodology.
• Insurers must retain work papers and supporting documents used to prepare the BSCR submission for examination by the BMA.
• Insurers must not alter or modify the capital and solvency return form itself.

Applies to

Class E insurers, Class D insurers, Class C insurers, Class 4 insurers, Class 3B insurers, Class 3A insurers, Insurance Groups

Deadlines

• on or before its filing date: Each insurer/insurance group must submit its completed capital and solvency return to the BMA by its specific filing date.