Notes-Condensed General Financial Statements

Summary

This document is Schedule X, a prescribed list of note disclosures that must accompany condensed consolidated general purpose financial statements filed with the BMA. It sets out, item by item, what insurers must explain or quantify in the notes to their balance sheet, income statement, and statement of capital and surplus, rather than imposing new prudential requirements itself.

• General notes: Disclose shareholder controllers, consolidated affiliates and any changes to them, the nature of risks underwritten, accounting standards/policies used and any changes, income recognition and foreign currency translation methods, foreign exchange restrictions, material contingencies or commitments, defaults on securities or credit agreements, dividend arrears, loans to directors/officers, retirement benefit obligations, fair value and fair value hierarchy of investments, maturity profile of fixed income investments, related party transactions, and subsequent events.
• Capital and surplus notes: Disclose details of authorized and issued share capital by class (par value, dividend rates, redemption/conversion terms), share repurchases, changes in contributed surplus, non-cash dividends paid, changes in authorized capital, share issuances/redemptions and options, and related considerations.
• Balance sheet notes (Class 3A, Class C, Class D): For cash, quoted and unquoted investments, affiliate advances, mortgage loans, policy loans, real estate, collateral loans, receivables, reinsurance balances, funds held, sundry assets/derivatives, unearned premium reserves, loss and loss expense provisions, policy reserves, policyholder dividend liabilities, payables, loans/notes payable, tax liabilities, amounts due to affiliates, sundry liabilities, and letters of credit/guarantees, insurers must disclose valuation methods, encumbrances, affiliate balances, and other specified details.
• Income statement notes (Class 3A, Class C, Class D): Disclose the nature of material items included in other insurance income, combined other income (deductions), and combined realized gains or losses.

The schedule does not itself state a filing deadline or effective date; it functions as an annex specifying the content required in note disclosures that form part of an insurer's regular financial statement filings with the BMA.

Key obligations

• Disclose the identity of shareholder controllers and the name and place of incorporation of consolidated affiliates, and report any changes during the year
• Disclose the accounting standards and policies used, including any significant changes and their effects
• Disclose material contingencies, commitments, securities defaults, dividend arrears, and loans to directors or officers
• Disclose fair value and fair value hierarchy (Levels 1-3) of investments and the contractual maturity profile of fixed maturity and short term investments
• Disclose related party transactions, including nature, amounts, and balances due to or from related parties
• Disclose subsequent events between year end and board approval of the financial statements that materially affect the statements
• Disclose authorized and issued share capital details, share transactions (issuances, redemptions, options), and changes in contributed surplus
• Disclose the nature and amount of non-cash dividends paid and any changes in authorized share capital
• For Class 3A, Class C, and Class D insurers, disclose valuation methods and encumbrances on cash, quoted and unquoted investments, mortgage loans, real estate, and collateral loans
• Disclose reinsurance balances receivable and payable, funds held by or from affiliates, and details of collateralized balances
• Disclose movements in loss and loss expense provisions, reasons for changes related to prior years, and restricted assets versus unsecured policyholder obligations
• Disclose derivative and embedded derivative policies, and market value/nominal exposure of derivatives exceeding 5% of total investments, separated by long and short positions
• Disclose the nature of material items in other insurance income, combined other income (deductions), and combined realized gains or losses

Applies to

insurers, Class 3A insurers, Class C insurers, Class D insurers