Insurance Accounts Regulations 1980

Summary

This regulation, made under the Insurance Act 1978, sets out the detailed accounting and disclosure requirements that Bermuda insurers must follow when preparing their statutory financial statements. It prescribes the exact forms, notes and instructions to be used for balance sheets, statements of income and statements of capital and surplus, tailored to the type of insurer (general business, long-term business, or composite).

Prescribed statements: Every covered insurer must prepare a statutory balance sheet, statutory statement of income and statutory statement of capital and surplus for each financial year, using the specific Forms set out in Schedule I depending on its class and business type.
Notes and instructions: Insurers must include notes required by Schedule II and follow the line-by-line preparation instructions in Schedules III, IV and V affecting the balance sheet, income statement and capital and surplus statement.
Language and currency: All accounts must be prepared in English and expressed in a single currency (generally the currency of the insurer's Bermuda books and records), with conversion to Bermudian dollars required if the Authority directs production of the statements.
Comparatives: Accounts (other than a statutory open year business revenue statement) must show corresponding prior-year amounts for each item.
Offences: Failing to comply with any duty imposed by the Regulations, or knowingly making or joining in a false statement in an account (including a wilful material omission), is an offence.

The Regulations have been amended many times since 1980 to reflect changes in insurer classification (e.g. Class 1-3, Class A/B, innovative insurers) and to revoke provisions (such as those for Special Purpose Insurers, now covered elsewhere). No specific filing deadline dates are stated in the Regulations themselves; timing of statutory financial statement filings is governed by the Insurance Act 1978 and related rules.

Key obligations

Every Class 1, Class 2, Class 3, Class A, Class B insurer, innovative insurer and composite must prepare statutory financial statements (balance sheet, statement of income, statement of capital and surplus) for each financial year using the prescribed Forms in Schedule I.
Insurers must include the notes to statutory financial statements required by the relevant Parts of Schedule II.
Insurers must comply with the preparation instructions in Schedules III, IV and V when compiling their statutory balance sheet, statement of income and statement of capital and surplus.
All accounts must be prepared in the English language.
Amounts in accounts must be shown in a single currency consistent with the insurer's Bermuda books and records, and converted to Bermudian dollars if the Authority directs production of the statements in that currency.
Accounts (other than a statutory open year business revenue statement) must show corresponding amounts for the immediately preceding financial year.
Persons must not fail to comply with any duty or prohibition under the Regulations, and must not make or join in making a false or materially misleading statement in an account.

Applies to

Class 1 insurers, Class 2 insurers, Class 3 insurers, Class A insurers, Class B insurers, innovative insurers, composites, section 24(6) composites

Insurance Accounts Regulations 1980

Summary

Key obligations

Applies to

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