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  • BR-1.1 BR-1.1 Insurance Firms — Insurance Firm Return

    • BR-1.1.1

      Insurance firms must prepare and submit to the CBB an Insurance Firm Return for each financial year, within 3 months of the insurance firm's financial year end.

      Amended: January 2007

    • BR-1.1.2

      The financial year of an insurance firm must be a 12-month period ending on 31 December, except where the firm 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.

      Amended: January 2007

    • BR-1.1.3

      Except in exceptional circumstances and subject to BR-1.1.2, an insurance firm's financial year, for the purposes of preparing the Insurance Firm Return, and the financial year for the purposes of preparing the shareholder accounts, must coincide.

      Amended: January 2007

    • BR-1.1.4

      For the purposes of BR-1.1.3, the CBB would usually accept that the financial year end of an overseas insurance firm would be the same as that of the company itself. The only times that the CBB would be likely to consider allowing an insurance firm 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.

      Amended: January 2007

    • Content of the Insurance Firm Return

      • 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.

        Amended: October 2023
        Amended: January 2007

      • 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:

        (a) Risk Gap — the degree to which the firm's potential liabilities (under the policy limits) exceed available assets and the resources available to meet this gap; and
        (b) Reinsurance — the firm's providers, limits and claims.
        Amended: January 2007
        Amended: October 2007

      • 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.

        Amended: January 2007

      • BR-1.1.8

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

        (a) In the case of an insurance firm incorporated in Bahrain the Insurance Firm Return must be completed on an equity basis, (cost of investment plus share of profits and less share of loss and dividends declared) detailing all investments in subsidiaries; or
        (b)In the case of an overseas insurance firm licensed in Bahrain, the Insurance Firm Return must be completed in respect of the insurance business carried out by the overseas insurance firm in Bahrain.
        Amended: January 2007

      • 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).

    • Valuation of Assets and Liabilities

      • 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:

        (a) The basis specified in Chapter CA-5; and
        (b)The basis required by the law of that other jurisdiction for regulatory purposes.
        Amended: January 2007
        Amended: October 2007

    • BR-1.1.12

      [This Paragraph was deleted in October 2023].

      Deleted: October 2023
      Amended: January 2007

    • BR-1.1.13

      [This Paragraph was deleted in October 2023].

      Amended: January 2007
      Amended: October 2007
      Deleted: October 2023

    • Audit and Auditor's Report

      • 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.

        Amended: January 2007
        Amended: October 2007

      • 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.

        Amended: January 2007

      • 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.

        Amended: January 2007

    • Actuary's Certification

      • 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.

        Amended: January 2007
        Amended: October 2007

      • BR-1.1.19

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

        Amended: January 2007

      • 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.

        Amended: October 2007

      • 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.

        Amended: April 2014
        Amended: October 2007

    • Actuary's Financial Condition Report

      • 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.

        Amended: April 2014
        Amended: January 2007
        Amended: October 2007

      • 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.

        Added: April 2014

      • 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.

        Amended: April 2014
        Amended: October 2007
        Amended: January 2007

      • BR-1.1.24

        The abstract must include:

        (a) A summary and valuation of the policies; and
        (b) A valuation result and the actuary's opinion of the surplus available for distribution, for each of the separate funds maintained by the insurance firm.
        Amended: January 2007

    • BR-1.1.25

      [This Paragraph was deleted in April 2014.]

      Deleted: April 2014
      Amended: October 2007
      Amended: January 2007

    • Preparation and Deposit of the Insurance Firm Return

      • 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.

        Amended: October 2023
        Amended: April 2014
        Amended: October 2007
        Amended: January 2007

      • 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.

        Amended: January 2007

      • 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.

        Amended: January 2007
        Amended: October 2007

      • 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.

        Amended: April 2014
        Amended: October 2007
        Amended: January 2007

      • 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.

        Added: April 2014

      • BR-1.1.30

        [This Paragraph was deleted in October 2023].

        Deleted: October 2023
        Amended: October 2007

      • BR-1.1.31

        [This Paragraph was deleted in October 2023].

        Deleted: October 2023

    • Public Disclosure

      • 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.

        Amended: January 2007

      • 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.

        Amended: January 2007

      • 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.

    • Other Reporting Requirements

      • BR-1.1.35

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

        (a) Directors' High-Level Control Certificate (HC-1.11.3); and
        (b) Report on close links (GR-6.2.1).
        Amended: April 2012
        Amended: January 2007

      • 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.

        Amended: January 2007
        Amended: October 2007

    • Transition Period

      • 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).

        Amended: January 2007
        Amended: October 2007