PD-1.1.1

Bahraini insurance firms must publish an Annual Report, in the manner prescribed in this Section, within 3 months of the end of the firm's financial year.

PD-1.1.2

In addition to the requirements specified in this Module, Bahraini insurance firms are also required to comply with the requirements regarding the publication of audited financial accounts, as specified in Article 62 of the CBB Law, the Bahrain Commercial Companies Law 2001 (as amended) and the Bahrain Stock Exchange Regulations (where applicable).

PD-1.1.3

Bahraini insurance firms must apply financial years that end on 31 December, unless prior written approval has been obtained from the CBB for a different year-end.

PD-1.1.4

The Annual Report must be made available in printed form.

PD-1.1.5

The Annual Report must be published in both Arabic and English.

PD-1.1.6

The requirement to publish an Annual Report will be met where firms publish financial information (balance sheet and income statement) and any financial penalties paid to the CBB, in two local (Bahrain) daily newspapers (one in Arabic, one in English), containing details of where interested parties may obtain a copy of the full Annual Report in either electronic or paper form.

PD-1.1.6A

Bahraini insurance firms must submit a newspaper copy of the published financial statements (referred to under Paragraph PD-1.1.1) to the CBB within three months from the statements’ date clearly showing on which date and in which publication(s) the statements were published.

PD-1.1.7

The Annual Report must include the information that insurance firms are required to disclose on an annual basis as set out in this Module, together with additional information that may facilitate the understanding by prospective and existing policyholders and other market participants of the financial position of the firm and the risks to which it is subject.

PD-1.1.8

Bahraini insurance firms whose business is limited to reinsurance activities, are exempt from publishing summary financial information in local newspapers. However, their Annual Report must be made available in electronic format via the firm's web site.

PD-1.1.9

Bahraini insurance firms must provide printed copies of their Annual Report on request, but may charge a fee for providing a printed copy to persons who are neither policyholders nor shareholders of the firm.

PD-1.1.10

Bahraini insurance firms must, in their Annual Report, provide timely information that facilitates market participants' assessment of the firm. There are five broad categories of information, each of which must be addressed in clear terms and with appropriate details to help achieve a satisfactory level of transparency. The five categories are:

PD-1.1.11

The disclosure requirements listed in this Module are in addition to or serve to clarify the disclosure requirements under International Financial Reporting Standards ('IFRS'). These requirements may either be integrated into the Notes to the Accounts, or addressed in the Directors' Report.

PD-1.1.12

The Annual Report must contain a copy of the firm's annual, audited financial statements in accordance with the requirements contained in the CBB Law, the Bahrain Commercial Companies Law 2001 (as amended) and the Bahrain Stock Exchange regulations (where applicable). The financial statements must contain the auditor's opinion which must be made in accordance with the International Standards on Auditing, established by the International Federation of Accountants. The Annual Report must also contain a solvency statement and the auditor's report.

PD-1.1.12A

For Takaful firms, the published financial statements 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.

PD-1.1.13

The solvency statement specified in Paragraph PD-1.1.12 must include a breakdown of the firm's CBB capital available (as specified in Paragraph CA-1.2.21) and a summary of the firm's CBB solvency margin requirements (as prescribed in Chapter CA-2).

PD-1.1.13A

In instances where a Takaful firm has opted to write-off a Qard Hassan granted to meet solvency requirements under the CBB Rules at that time, the amount of the Qard Hassan must be disclosed as an off-balance sheet item in accordance with Subparagraph CA-8.4.16.

PD-1.1.14

Firms must disclose in their published accounts all information which policyholders and shareholders would reasonably expect to enable them to form a view of the firm's ability to meet its obligations.

PD-1.1.15

Firms are encouraged to include within the annual reports key ratios that would assist readers in understanding the firm's financial performance, performance on its insurance account and in making comparisons with previous financial periods on a like-for-like basis. Possible ratios include those contained in the Insurance Firm Return (cf. Module BR (CBB Reporting)).

PD-1.1.16

The following information relating to the financial performance and position of the firm must, where relevant to an understanding of the firm's financial performance, be included in the Annual Report:

PD-1.1.17

The Annual Report of insurance firms must contain details of any shares in the firm held by its Directors and Chief Executive/General Manager. Such details must include:

PD-1.1.18

For the purpose of the disclosures required under Paragraph PD-1.1.17, shares held by Directors and Chief Executives/General Managers also include any shares held in the firm by their spouses, children or any other person whose share holdings may fall under their control.

PD-1.1.19

The following information relating to corporate governance must also be included in the firm's Annual Report:

PD-1.1.20

The Annual Report must include a declaration by the external auditor that no violations have taken place of:

insofar as the violations have any material impact on the financial statements of the firm.

PD-1.1.21

In accordance with Paragraph EN-B.4.5, insurance firms must disclose in their Annual Report the amount of any financial penalties paid to the CBB, together with a factual description of the reason(s) given by the CBB for the penalty. Insurance firms which fail to comply with this requirement will be required to make the disclosure in the annual report of the subsequent year and will be subject to an enforcement action for non-disclosure.

PD-1.1.22

The following information relating to the firm's risk management strategies and practices must be included in the Annual Report: