BR-1.1.5

For every insurance firm who undertakes insurance business, an Insurance Firm Return must be submitted within three months of its financial year end, using the prescribed form IFR from Part B of Volume 3 (Insurance), together with where applicable, Actuary's Certificate and report.

BR-1.1.6

For purposes of Paragraph BR-1.1.5, captive insurers are required to submit additional information, as outlined in prescribed Form IFR. This information covers:

BR-1.1.7

The content of the Insurance Firm Return required to be submitted by an insurance firm in accordance with BR-1.1.5 must be in the format prescribed by the CBB and completed in accordance with any instructions specified by the CBB.

BR-1.1.8

The Insurance Firm Return must be completed by every insurance firm licensed in Bahrain, in the following manner:

BR-1.1.9

The format of the Insurance Firm Return is included in Part B of the Rulebook as Form IFR, with forms applicable for conventional business, IFR(C) and for takaful business, IFR (T).

BR-1.1.10

For the purposes of the Insurance Firm Return, the information submitted must include the amounts as per the audited financial statements, the value or amount given for an asset or a liability of the insurance licensee as determined in accordance with Chapter CA-4, Valuation of Assets and Chapter CA-5, Valuation of Liabilities, as well as the admissibility and counterparty limits of the firm's assets for purposes of calculating the firm's capital available.

BR-1.1.11

The valuation of liabilities in respect of long-term insurance business must be made on a basis not less stringent than the minimum basis specified in Chapter CA-5. Should this long-term business relate to a jurisdiction other than Bahrain, the valuation basis adopted must be the more stringent of:

BR-1.1.14

The Insurance Firm Return (IFR) of every insurance firm must be reviewed in accordance with the International Standard on Related Services applicable to agreed-upon procedures engagements. The review must certify that the information provided in the IFR is in agreement with the books and records of the company and its audited financial statements.

BR-1.1.15

The Insurance Firm Return must be reviewed by the firm's external auditor, appointed in accordance with Module AA, or by other qualified persons as directed by the CBB.

BR-1.1.16

The insurance firm must provide to the CBB within four months of the financial year end, an auditor's report, in the format prescribed by the CBB, stating the auditor's opinion on the matters identified in this Module.

BR-1.1.17

The format of the Auditor's Report is included in Part B of the Rulebook, as part of the Supplementary Information.

BR-1.1.18

An actuary's certification is included as part of the IFR. The certification must be in the format prescribed by the CBB and signed by the actuary. It must state that, in his opinion, the actuary has satisfied himself as to the accuracy of the valuations made for the purposes of the investigation and as to their adequacy to meet the obligations of the insurance firm and the financial statements fairly present the results of the valuation. In addition, the actuary will have verified the consistency of the valuation data with the insurance firm’s financial records.

BR-1.1.19

The format of the Actuary's Certification is included as part of the IFR.

BR-1.1.20

The actuary must also disclose and quantify in his certification the effect on his valuations of any material event that occurs after the valuation date.

BR-1.1.21

The Actuary's Certificate must be submitted every year where an Actuary's financial condition report is submitted in accordance with Chapter AA-4.

BR-1.1.22

An insurance firm carrying on long-term insurance business must commission a financial condition report (FCR) as required under Paragraph AA-4.1.3 and made pursuant to Paragraph AA-4.3.1 and must submit to the CBB an abstract of the actuary's report as prescribed in Paragraph BR-1.1.23.

BR-1.1.22A

An insurance firm carrying on general insurance business must commission a financial condition report (FCR) as required under Paragraph AA-4.1.4 and made pursuant to Paragraph AA-4.3.1 and must submit to the CBB an abstract of the actuary's report as prescribed in Paragraph BR-1.1.23.

BR-1.1.23

An abstract of the actuary's report must be submitted in the prescribed form in compliance with the Valuations of Liabilities rules outlined in Chapter CA-5 and Rules outlined in Sections AA-4.3 and AA-4.3A, wherever applicable. The abstract must be signed by the actuary, recognised by the CBB in accordance with Chapter AA-4.

BR-1.1.24

The abstract must include:

BR-1.1.26

Every Insurance Firm Return, including the Actuary's Certificate made pursuant to Paragraph BR-1.1.18 and any report made by the actuary pursuant to Paragraph BR-1.1.22 and/or Paragraph BR-1.1.22A, whichever is applicable, must be submitted to the CBB electronically within 3 months of the financial year end.

BR-1.1.27

If the CBB notifies the insurance firm that a document deposited under Paragraph BR-1.1.26 appears to be inaccurate or incomplete, the insurance firm must consider the matter and within one month of the CBB notification, it must correct any inaccuracies and make good any omissions and submit the amended parts of the Insurance Firm Return.

BR-1.1.28

The external auditor and actuary must consider the impact on their report of any amendment referred to in Paragraph BR-1.1.27, and withdraw and correct their original report based on the revised information.

BR-1.1.29

The audited financial statements submitted to the shareholders and policyholders (or participants, in the case of Takaful companies) of the insurance firm and the management letter issued by the external auditor must be deposited with every Insurance Firm Return in respect of the financial year to which the Insurance Firm Return relates.

BR-1.1.29A

For Takaful firms, the audited financial statements submitted to the CBB along with the IFR, must provide a detailed breakdown of the statement of financial position and statement of comprehensive income for the shareholder fund and for any participant fund(s) of the Takaful firm.

BR-1.1.30

[This Paragraph was deleted in October 2023].

BR-1.1.31

[This Paragraph was deleted in October 2023].

BR-1.1.32

While certain information related to insurance firms is subject to public disclosure as prescribed by Module PD, the Insurance Firm Return is not a public document and as such will not, unless otherwise provided in the CBB's Rulebook, be disclosed to third parties by the CBB without the insurance firm's consent.

BR-1.1.33

Whilst the Insurance Firm Return is not a public document, the CBB may from time to time publish aggregate information derived from the Insurance Firm Return relating to classes of insurance firms and the Bahrain insurance industry as a whole.

BR-1.1.34

Whilst the Insurance Firm Return is not a public document, as per Paragraph BR-1.1.32 insurance firms are not prevented from providing complete copies (including all relevant certifications and reports) to third parties.

BR-1.1.35

The IFR Form also includes other reporting requirements found throughout Volume 3 (Insurance), including:

BR-1.1.36

All insurance firms must submit a copy of the external auditor's management letter no later than three months of the insurance firm's financial year end.

BR-1.1.37

The first Insurance Firm Return (IFR) for both conventional and takaful insurance firms, required under Section BR-1.1, must be submitted to the CBB for the financial year ending 31 December 2006 (refer to ES-2.7.1).

BR-1.2.1 BR-1.2.1

Insurance consultants and insurance managers must submit to the CBB the audited financial statements for each financial year, within 3 months of the insurance consultant's and insurance manager's financial year end.

BR-1.2A.1

Insurance brokers must prepare and submit to the CBB an Insurance Broker Return (Form IBR) for each financial year, within 2 months of the insurance broker's financial year end.

BR-1.2A.2

The first annual return (IBR) for insurance brokers is to be submitted to the CBB for the annual period ending 31st December 2012 (refer to ES-2.7.4).

BR-1.2A.3

The financial year of an insurance broker must be a 12-month period ending on 31 December, except where the licensee has obtained the written consent from the CBB for either the period or the period end to be other than 12 months and 31 December respectively. In any event, the financial year can never be less than a 6-month period or greater than an 18-month period.

BR-1.2A.4

Except in exceptional circumstances and subject to Paragraph BR-1.2A.3, an insurance broker's financial year, for the purposes of preparing the Insurance Broker Return, and the financial year for the purposes of preparing the shareholder accounts, must coincide.

BR-1.2A.5

For the purposes of Paragraph BR-1.2A.4, the CBB would usually accept that the financial year end of an overseas insurance broker would be the same as that of the company itself. The only times that the CBB would be likely to consider allowing an insurance broker to adopt a financial period of other than 12 months would be the year in which it is authorised (i.e. a period of less than 12 months) or when the company itself changes its reporting period for the purposes of its shareholder accounts.

Content of the Insurance Broker Return

Valuation of Assets and Liabilities

Directors' Certificate

Audit and Auditor's Report

Preparation and Deposit of the IBR

Submission of Audited Financial Statements and Management Letter

Public Disclosure

Other Reporting Requirements

Group Insurance Firm Return

BR-1.4.1

Except as provided for under Paragraph BR-1.4.2, every insurance firm required to submit an Insurance Firm Return must prepare and submit to the CBB selected Sections of the Insurance Firm Return for each quarters ending 3, 6 and 9 months after its financial year end, except where the written consent of the CBB has been obtained to modify the length of these quarters.

BR-1.4.2

This Chapter does not apply to captive insurers in recognition of the structure of these licensees and limited exposure to policyholders. Insurance firms who are in run-off and whose license is restricted from entering into new contracts of insurance as per Paragraph GR-8.1.8, are grandfathered and not required to apply the requirements of Paragraph BR-1.4.1.

BR-1.4.3

The format of the information required to be submitted on a quarterly basis is included in Part B of Volume 3 (Insurance) of the Rulebook, as Insurance Firm Quarterly Return (IFRQ).

BR-1.4.4

For the purposes of BR-1.4.1 the financial year end will be the year end as determined for the purposes of the preparation and submission of the Insurance Firm Return (Form IFR) required under Chapter BR-1.1 of this Module.

BR-1.4.5

The circumstances where the CBB will consider requests to modify BR-1.4.1 are equivalent to those set out in BR-1.1.

BR-1.4.6

Quarterly financial reporting consists of such parts of the Insurance Firm Return as may be specified by the CBB and must be completed in accordance with the rules, formats and instructions applicable to those parts that apply to the Insurance Firm Return.

BR-1.4.7

Quarterly financial reporting must be submitted to the CBB within 30 calendar days of the relevant quarter end.

BR-1.4.8

The first quarterly return (IFRQ) for insurance firms must be submitted to the CBB for the quarter ending 31 March 2007 (refer to ES-2.7.3).

BR-1.4A.1

Every insurance broker required to submit an Insurance Broker Return under Section BR-1.2A, must prepare and submit to the CBB selected Sections of the Insurance Broker Return semi-annually 6 months after its financial year end.

BR-1.4A.2

The first semi-annual return (IBRS) for insurance brokers is to be submitted to the CBB for the semi-annual period ending 30th June 2012 (refer to ES-2.7.5).

BR-1.4A.3

The format of the information required to be submitted on a semi-annual basis is included in Part B of Volume 3 (Insurance) of the Rulebook, as Insurance Broker Semi-Annual Return (IBRS).

BR-1.4A.4

For the purposes of BR-1.4A.1, the financial year end will be the year end as determined for the purposes of the preparation and submission of the Insurance Broker Return (Form IBR) required under Section BR-1.2A of this Module.

BR-1.4A.5

Semi-annual financial reporting consists of such parts of the Insurance Broker Return as may be specified by the CBB and must be completed in accordance with the rules, formats and instructions applicable to those parts that apply to the Insurance Broker Return or as specified by the CBB.

BR-1.4A.6

Semi-annual financial reporting must be submitted to the CBB 30 calendar days of the end of semi-annual period, by 30^th July.

IIS Reporting Requirements

Complaint Handling Procedures Report

Compliance with Module CL (Client Assets)

BR-1A.5.1

For the purpose of onsite inspection by the CBB, Insurance licensees must submit requested documents and completed questionnaires to the Inspection Directorate at the CBB three working days ahead of inspection team entry date.

BR-1A.5.2

Insurance licensees must review the contents of the draft Inspection Report and submit to the Inspection Directorate at the CBB a written assessment of the observations/issues raised within fifteen working days of receipt of such report. Evidentiary documents supporting management’s comments must also be included in the response package.

BR-1A.5.3

Insurance licensees' board are required to review the contents of the Inspection Report and submit within one month, of the report issue date, a final response to such report along with an action plan addressing the issues raised within the stipulated timeline.

BR-1A.5.4

Insurance licensees failing to comply with the requirements of Paragraphs BR-1A.5.1 and BR-1A.5.2 are subject to date sensitive requirements and other enforcement actions as outlined in Module (EN) Enforcement.