Class 4 BSCR Analysis Report 2009

Summary

This is a Bermuda Monetary Authority (BMA) publication analysing the financial performance and capital position of Class 4 (re)insurers for the 2009 financial year, based on Capital and Solvency Returns, statutory financial returns and general purpose financial statements submitted to the Authority. It is a statistical and trend analysis report, not a rule-making or supervisory instrument, and does not itself impose new requirements.

• Scope of analysis: Covers the Bermuda Solvency Capital Requirement (BSCR) model, Enhanced Capital Requirement (ECR) ratios, profitability, liquidity and Commercial Insurer Risk Assessment (CIRA) results for Class 4 (re)insurers over 2007-2009.
• Sector breakdown: Groups Class 4 (re)insurers into casualty, property and casualty, and property sectors based on property premium mix, and reports comparative trends for each.
• Existing regulatory framework referenced: Notes that Class 4 (re)insurers are prudentially supervised under the Insurance (Prudential Standards) (Class 4 Solvency Requirement) Order 2008 and the Insurance Accounts Amendment Regulations 2008, and must maintain statutory capital and surplus at or above their minimum solvency margin (MSM) and Enhanced Capital Requirement (ECR) under the Insurance Act 1978.
• Forward-looking commentary: Discusses expected trends beyond 2009 year end, including catastrophe exposures, premium growth, ratings and macroeconomic factors, and notes elevated catastrophe losses in the first nine months of 2010.

The report is explicitly informational, drawing on both regulatory returns and publicly available data without warranty as to accuracy, and invites feedback via email. It does not set out new filing deadlines, compliance dates or transitional requirements for insurers.

Applies to

Class 4 (re)insurers