Insurance Account Rules 2016 - Schedules

Summary

This document sets out the Schedules referenced in the Insurance Account Rules 2016 made by the Bermuda Monetary Authority (BMA) under section 6A(8) of the Insurance Act 1978. It prescribes the detailed content, notes and completion instructions for the statutory financial statements and condensed general purpose financial statements that Bermuda insurers must prepare, along with the minimum solvency margin calculations for general and long-term business.

• Schedule I: Content of Statutory Financial Statements, including prescribed forms for the statutory balance sheet (Form 1SFS), statement of income (Form 2SFS) and statement of capital and surplus (Form 8SFS).
• Schedule II: Notes required to accompany the Statutory Financial Statements, specifying line-by-line disclosures (e.g. derivatives, encumbered assets, loss reserve movements).
• Schedules III to VI: Detailed instructions for completing the statutory financial statements, balance sheet, statement of income and statement of capital and surplus.
• Schedules VII and VIII: Prescribed methods for calculating the Minimum Margin of Solvency for general business and for long-term business respectively.
• Schedules IX to XI: Content, notes and instructions for the Condensed (Consolidated) General Purpose Financial Statements.

The Schedules do not impose new substantive policy requirements beyond those in the main Insurance Account Rules 2016; instead they define the mandatory format, line items and disclosure notes that insurers must follow when preparing their statutory returns and solvency calculations for the BMA.

Key obligations

• Insurers must prepare their Statutory Financial Statements (balance sheet, statement of income, statement of capital and surplus) using the exact forms and line items set out in Schedule I.
• Insurers must include the specific notes to the Statutory Financial Statements required by Schedule II for each identified line item (e.g. derivatives, encumbered assets, loss and loss expense provision movements).
• Insurers must follow the completion instructions in Schedules III to VI when populating the statutory balance sheet, statement of income and statement of capital and surplus.
• Insurers must calculate their Minimum Margin of Solvency for general business and long-term business in accordance with the methodologies in Schedules VII and VIII.
• Insurers preparing Condensed General Purpose Financial Statements must follow the content, notes and instructions in Schedules IX to XI.

Applies to

insurers registered under the Insurance Act 1978 (general business insurers), insurers registered under the Insurance Act 1978 (long-term business insurers)

Related documents

• This document is made under Insurance Act 1978