Insurance Account (Amendment) Rules 2024 - Schedules

Summary

This document sets out amended Schedules XII and XIII to Bermuda's Insurance Account Rules, prescribing the standard forms and explanatory notes that insurers must use to prepare their statutory financial statements on an IFRS basis. It covers the statutory balance sheet, statement of income, and statement of capital and surplus, together with detailed notes explaining how specific line items must be completed and disclosed.

• Form 1ASFS: Statutory Balance Sheet (IFRS basis), broken down by General Business, Long-Term Business, and General and Long-Term Business, on unconsolidated and consolidated bases, covering assets, insurance liabilities, other liabilities, and statutory capital and surplus.
• Form 2ASFS: Statutory Statement of Income (IFRS basis), covering insurance contract revenue, insurance service expenses and results, reinsurance contracts held, investment returns, insurance finance results, and net income.
• Form 8ASFS: Statutory Statement of Capital and Surplus (IFRS basis), covering statutory capital (capital stock, contributed surplus, other fixed capital) and statutory surplus movements during the year.
• Schedule XIII notes: Detailed disclosure requirements for specific balance sheet and income statement lines, including premiums receivable, reinsurance balances receivable, funds held by ceding reinsurers, derivatives, encumbered assets, letters of credit and guarantees, and reconciliations of insurance and reinsurance contract liabilities/assets by remaining coverage and incurred claims.

The schedules function as prescribed reporting templates and accompanying guidance rather than free-standing policy changes; insurers preparing statutory financial statements under the IFRS basis must follow the exact line structure and disclosure content set out here.

Key obligations

• Insurers must prepare their statutory balance sheet using Form 1ASFS in the format and line structure prescribed, broken out by General Business, Long-Term Business, and combined General and Long-Term Business on unconsolidated and consolidated bases.
• Insurers must prepare their statutory statement of income using Form 2ASFS in the prescribed format, including the specified breakdowns of insurance service expenses, reinsurance results, investment returns, and insurance finance results.
• Insurers must prepare their statutory statement of capital and surplus using Form 8ASFS, showing statutory capital, statutory surplus movements, and minority interest as prescribed.
• Insurers must include in the notes to their statutory financial statements the specific disclosures required by Schedule XIII for items such as premiums receivable, reinsurance balances, encumbered assets, derivatives, letters of credit/guarantees, and reconciliations of insurance and reinsurance contract liabilities and assets.

Applies to

insurers (general business), insurers (long-term business), insurance groups