Notice - Quarterly Filing Requirements - Intra-Group Transactions (2012-03-13)

Summary

This notice from the Bermuda Monetary Authority clarifies which insurers and insurance groups are subject to quarterly filing requirements, and clarifies the scope of material intra-group transactions that must be disclosed under those filings.

• Who must file quarterly: Bermuda insurance groups for which the Authority is group supervisor (under paragraph 8(1) of the Insurance Group Solvency Requirement Rules 2011), and Class 4 and Class 3B insurers that are NOT members of a group for which the Authority is group supervisor (under paragraph 6AB(1) of the Class 4 and Class 3B Solvency Requirement Rules 2008).
• Who is exempt: An insurer that is a member of a group for which the Authority is the group supervisor does not itself need to file quarterly returns under these Rules.
• Intra-group disclosure scope for groups: Bermuda insurance groups must disclose material transactions between all members of the group, per paragraph 8(1)(b) of the 2011 Rules.
• Intra-group disclosure scope for standalone insurers: Class 4 and Class 3B insurers not part of a group supervised by the Authority must disclose only material transactions between the insurer and other group members, i.e. only those affecting the Bermuda licensed entity, per paragraph 6AB(2)(b) of the 2008 Rules.
• Reporting relief: Insurers and groups need only report material intra-group transactions that have materialised since the most recent quarterly or annual return filed; unchanged transactions already reported do not need to be reported again in a subsequent quarter of the same year.

The notice is clarificatory rather than a new rule, explaining how existing quarterly filing and intra-group transaction disclosure obligations under the 2011 and 2008 Rules should be applied in practice. Questions can be directed to the Authority's risk analytics contact.

Key obligations

• Bermuda insurance groups for which the Authority is group supervisor must file quarterly returns disclosing material intra-group transactions between all members of the group.
• Class 4 and Class 3B insurers not part of a group for which the Authority is group supervisor must file quarterly returns disclosing material intra-group transactions affecting the Bermuda licensed entity.
• Insurers and groups may limit quarterly intra-group transaction reporting to transactions that have materialised since the most recent quarterly or annual return filed, avoiding duplicate reporting of unchanged transactions.

Applies to

Bermuda insurance groups, Class 4 insurers, Class 3B insurers, insurers that are members of an Authority-supervised group