Presentation is loading. Please wait.

Presentation is loading. Please wait.

MANAGEMENT OF THE CAPTIVES OPERATIONS PRESENTED BY: CHARMAIN AGGARWAL BARBARA FAWCITT.

Similar presentations


Presentation on theme: "MANAGEMENT OF THE CAPTIVES OPERATIONS PRESENTED BY: CHARMAIN AGGARWAL BARBARA FAWCITT."— Presentation transcript:

1 MANAGEMENT OF THE CAPTIVES OPERATIONS PRESENTED BY: CHARMAIN AGGARWAL BARBARA FAWCITT

2 3 CYCLES OF OPERATIONS FISCAL REPORTING CYCLE UNDERWRITING CYCLE MEETING CYCLE

3 FISCAL REPORTING CYCLE Financial Reporting Financial Reporting Audit Audit Tax Filings Tax Filings Regulatory Filings Regulatory Filings

4 FISCAL REPORTING CYCLE FINANCIAL REPORTING Timing of Reporting Timing of Reporting Monthly, Quarterly, Annually Monthly, Quarterly, Annually Duties for Reporting Duties for Reporting Co-ordinate and receive records Co-ordinate and receive records Prepare management accounts Prepare management accounts Financials and notes Financials and notes Working papers and schedules Working papers and schedules Distribute Management Accounts Distribute Management Accounts

5 FISCAL REPORTING CYCLE AUDIT Planning Meeting Planning Meeting Engagement Letter Engagement Letter Confirmations Confirmations Year End Loss Run Year End Loss Run Year End Actuarial Report Year End Actuarial Report Year End Tax Calculation Year End Tax Calculation Year End Management Accounts Year End Management Accounts Audited Statements Audited Statements

6 FISCAL REPORTING CYCLE TAX FILINGS Co-ordinate with Tax Consultant Co-ordinate with Tax Consultant Beware of Filing Deadlines Beware of Filing Deadlines Big Penalties if missed Big Penalties if missed Examples of Filings & Payments Examples of Filings & Payments Quarterly Tax Deposits Quarterly Tax Deposits 1120 Income tax returns 1120 Income tax returns March filing extension March filing extension 720 FET returns 720 FET returns

7 FISCAL REPORTING CYCLE REGULATORY FILINGS File Audited Statements File Audited Statements Inform filing Inform filing copy of audited statements copy of audited statements Deadline 6 months after Fiscal Year End Deadline 6 months after Fiscal Year End

8 FISCAL REPORTING CYCLE DECEMBER 31 YEAR END JANJANJANJAN FEBFEBFEBFEB MARMARMARMAR APRAPRAPRAPR MAYMAYMAYMAY JUNJUNJUNJUN JULJULJULJUL AUGAUGAUGAUG SEPSEPSEPSEP OCTOCTOCTOCT NOVNOVNOVNOV DECDECDECDEC Quarterly Reporting ►►►► Audit – Planning Meeting ► Audit – Engagement Letter ► Audit – Confirmations ► Year End Loss Run ► Year End Actuary Report ► Year End Tax Calculation ► Management Accounts to Auditor ► Audited Statements ► CIMA Filing ►

9 UNDERWRITING CYCLE Underwriting period may be different than fiscal period Renewal Renewal Loss Runs/Cession statements Loss Runs/Cession statements Policies Policies Premium collection Premium collection

10 UNDERWRITING CYCLE RENEWAL Determination of Limits Determination of Limits Board Approval Board Approval Determination of Premium Determination of Premium Actuarial Funding Study Actuarial Funding Study Reinsurance renewal Reinsurance renewal Pricing and Board Approval Pricing and Board Approval

11 UNDERWRITING CYCLE LOSS RUNS Provided by a TPA annually/quarterly Provided by a TPA annually/quarterly Loss Runs tied to paids in FS Loss Runs tied to paids in FS Year End losses tied to losses in Actuarial Report Year End losses tied to losses in Actuarial Report Serious Claims Reports to Reinsurers Serious Claims Reports to Reinsurers

12 UNDERWRITING CYCLE POLICIES Issuance of policies at beginning of underwriting cycle Issuance of policies at beginning of underwriting cycle Written by broker Written by broker Board Approval – executed by authorized representative Board Approval – executed by authorized representative Cover notes Cover notes Receipt of Reinsurance policies Receipt of Reinsurance policies Reviewed by counsel/broker/manager Reviewed by counsel/broker/manager

13 UNDERWRITING CYCLE PREMIUM Premium determined by Actuarial Funding Study Premium determined by Actuarial Funding Study Distribution of Premium invoices (annual/quarterly/monthly) Distribution of Premium invoices (annual/quarterly/monthly) Timely collection Timely collection Investment of incoming premium Investment of incoming premium Consideration of Premium Holiday Consideration of Premium Holiday Timely payment of reinsurance premium Timely payment of reinsurance premium Consider if FET payable on premium ceded Consider if FET payable on premium ceded

14 UNDERWRITING CYCLE - OCT 1 TO SEPT 31 JANJANJANJAN FEBFEBFEBFEB MARMARMARMAR APRAPRAPRAPR MAYMAYMAYMAY JUNJUNJUNJUN JULJULJULJUL AUGAUGAUGAUG SEPSEPSEPSEP OCTOCTOCTOCT NOVNOVNOVNOV DECDECDECDEC Determination of Limits/Premium ► Reinsurance renewal ► Loss Runs ►►►► Serious Claims Reports to reinsurers ►►►► Issuance of Policies/Receipt of Reinsurance Policies ► Actuarial Funding Study ► Premium collection ►►►► Premium Holiday consideration ► Payment of FET on Reinsurance Premium ceded ►

15 MEETING CYCLE Governed by the Articles of Association Governed by the Articles of Association Frequency of Meetings Frequency of Meetings Meeting procedures Meeting procedures Manager will coordinate Manager will coordinate Dates Dates Venue Venue Agenda Agenda Meeting materials Meeting materials Notices & Proxies Notices & Proxies Auditor attendance Auditor attendance

16 MEETING CYCLE TYPES OF MEETINGS Board of Directors Meeting Board of Directors Meeting Most Operating decisions and approvals made here Most Operating decisions and approvals made here Proxy Meetings are acceptable if board can not meet Proxy Meetings are acceptable if board can not meet Annual General Meeting (AGM)/Shareholders Meeting Annual General Meeting (AGM)/Shareholders Meeting Auditor Appointments and Dividend approvals Auditor Appointments and Dividend approvals Committee Meetings (Finance/Claims/Executive) Committee Meetings (Finance/Claims/Executive) Sub groups created to perform certain tasks/make recommendations to the Board of Directors Sub groups created to perform certain tasks/make recommendations to the Board of Directors

17 MEETING CYCLE TYPICAL MEETING AGENDA Approval of Prior Meeting Minutes Approval of Prior Meeting Minutes Appointment of Service Providers Appointment of Service Providers Approval of Audited Financial Statements Approval of Audited Financial Statements Approval of Underwriting Limits/Premium/ Policies Approval of Underwriting Limits/Premium/ Policies Claims review Claims review Investment review Investment review Director and Officer appointments Director and Officer appointments

18 MEETING CYCLE TYPICAL MEETING AGENDA Cont. Risk Management Framework review Risk Management Framework review Business Plan review Business Plan review Dividends Dividends Review reinsurers ratings Review reinsurers ratings Budget Approval Budget Approval Legal Updates Legal Updates Cayman Islands Updates Cayman Islands Updates

19 MEETING CYCLE JANJANJANJAN FEBFEBFEBFEB MARMARMARMAR APRAPRAPRAPR MAYMAYMAYMAY JUNJUNJUNJUN JULJULJULJUL AUGAUGAUGAUG SEPSEPSEPSEP OCTOCTOCTOCT NOVNOVNOVNOV DECDECDECDEC Finance Committee Meeting ►►► Board of Director Meetings ►►► Annual General Meeting ► Executive and Claims Committee Meetings ►►► Distribute Notices and Proxies ►►►►►► Schedule meeting with Regulator ► Auditor attendance at Finance/Board Meeting ►

20 CAPTIVE CYCLES JANJANJANJAN FEBFEBFEBFEB MARMARMARMAR APRAPRAPRAPR MAYMAYMAYMAY JUNJUNJUNJUN JULJULJULJUL AUGAUGAUGAUG SEPSEPSEPSEP OCTOCTOCTOCT NOVNOVNOVNOV DECDECDECDEC Fiscal Reporting Cycle December 31 Year End ►►►►►►► Underwriting Cycle Policy Period Oct 1 to Sept 30 ►►►►► Meeting Cycle based on Cycles above ►►►►►►►►►


Download ppt "MANAGEMENT OF THE CAPTIVES OPERATIONS PRESENTED BY: CHARMAIN AGGARWAL BARBARA FAWCITT."

Similar presentations


Ads by Google