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Quantitative Impact Study Instructions for Firms Substantially Engaged in Insurance Underwriting Activities

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FR 3075 OMB No. 7100-0362 Approval expires September 30, 2017 Board of Governors of the Federal Reserve System Policy Impact Survey—FR 3075 This information collection is generally authorized under The Federal Reserve may not conduct or sponsor, and an sections 2A and 12A of the Federal Reserve Act (12 U.S.C. organization (or a person) is not required to respond to, a 225(a) and 263). Additionally, depending upon the survey collection of information unless it displays a currently valid respondent, the information collection may be authorized OMB control number. under a more specific statute. Survey Details Exercise: Quantitative Impact Survey for Firms Substantially Engaged In Insurance Underwriting Activities Submission Date: December 31, 2014 Reporting Form: QIS Reporting Template.xls; Supplemental Response Document.doc Instructions: QIS Instructions.pdf The ongoing public reporting burden for this information collection is estimated to average 60 hours per response, including time to gather and maintain data in the required form and to review instructions and complete the information collection. Comments regarding this burden estimate or any other aspect of this information collection, including suggestions for reducing the burden, may be sent to Secretary, Board of Governors of the Federal Reserve System, 20th and C Streets, NW, Washington, DC 20551, and to the Office of Management and Budget, Paperwork Reduction Project (7100-0362), Washington, DC 20503. 2014 Insurance QIS QIS Instructions (modified for display purposes) Quantitative Impact Study Instructions for Firms Substantially Engaged in Insurance Underwriting Activities September 30, 2014 1 2014 Insurance QIS QIS Instructions (modified for display purposes) Table of Contents Quantitative Impact Study General Instructions ...................................................................... 3 A. General Information ............................................................................................................... 3 B. Parts I and II of the QIS ......................................................................................................... 4 C. Part III: Separate Account Data ............................................................................................. 5 D. Part IV: State-based or Foreign Equivalent Minimum Risk-based Capital Requirements .... 5 E. References and Data Sources ................................................................................................. 6 Supplemental Instructions for Non-U.S. GAAP Filers.............................................................. 6 Part I: Regulatory Capital Components and Ratios ................................................................. 9 Common equity tier 1 capital ...................................................................................................... 9 Additional tier 1 capital ............................................................................................................ 26 Tier 1 capital ............................................................................................................................. 32 Tier 2 capital ............................................................................................................................. 33 Total capital .............................................................................................................................. 38 Risk-based capital ratios ........................................................................................................... 39 Leverage capital ratio ................................................................................................................ 40 Part I Memoranda Items............................................................................................................ 40 Part II: Risk-weighted Assets .................................................................................................... 42 General Instructions: Separate Account Data ........................................................................... 42 General Instructions: Risk-weighted Assets ............................................................................. 43 Specific Instructions: Risk-weighted Assets ............................................................................. 63 On-balance Sheet Assets ........................................................................................................... 63 Securitization Exposures ........................................................................................................... 86 Derivatives and Off-balance Sheet Items (Excluding Securitization Exposures) .................... 93 Allowance ............................................................................................................................... 107 Part II Memoranda Items ........................................................................................................ 110 Part III: Separate Account Data ............................................................................................. 114 Part IV: State-based or Foreign Equivalent Risk-Based Capital Requirements ................ 118 2 2014 Insurance QIS QIS Instructions (modified for display purposes) Quantitative Impact Study General Instructions A. General Information Who Should Report We ask that firms that receive Quantitative Impact Study (QIS) materials (Cover Letter, QIS Instructions, QIS Reporting Template, and the Supplemental Response Document) respond to this data collection exercise using financial data as of December 31, 2013. Participation in the QIS is voluntary but firms are strongly encouraged to participate to assist the Federal Reserve in gaining a better understanding of the firms’ business and risk profiles. The QIS Instructions and QIS Reporting Template were developed exclusively for the purposes of this data collection exercise, which is designed specifically for firms substantially engaged in insurance underwriting activities. The QIS data collection and analyses are not to be construed as an official interpretation of other documents published by the Federal Reserve System or as representing any final decisions regarding implementation of a regulatory capital framework or reporting requirements for the firms in scope. Data and responses provided for this QIS will be used and maintained in a manner that is designed to preserve firm anonymity and confidentiality. The information provided in the QIS may be shared with other regulators and may be published in aggregate form in a manner that preserves firm anonymity and data confidentiality in connection with the Federal Reserve’s supervisory or regulatory duties. How to Report Participating firms should complete all parts of the QIS Reporting Template to the best of their ability. Yellow highlighted cells are essential for purposes of carrying out the QIS. White cells are calculated fields and require no input. Each firm should provide qualitative responses and additional details that would help evaluate the firm’s QIS submission in the Supplemental Response Document. Data should be provided on a consolidated basis, using U.S. generally accepted accounting principles (GAAP), unless noted otherwise in the individual line items, using financial data as of December 31, 2013. If the firm’s assets changed significantly since December 31, 2013, please describe the material changes in the Supplemental Response Document. In addition, firms that file 10K/10Q should provide a brief reconciliation of the data reported in 10K/10Q and the QIS in the Supplemental Response Document. Firms may need to develop estimates for certain balance sheet line items. All data estimates should be made on a best-efforts basis, taking into consideration the materiality of the reported line item and the sensitivity of the item to the overall capital ratios. In the Supplemental Response Document, firms should provide the reason for the estimate and a description of the methodology used to derive material data estimates, as well as any additional information that would be helpful in explaining the basis for the estimates. Firms that do not file consolidated financial statements under U.S. GAAP at the top-tier level (non-U.S. GAAP filers) should refer to the Supplemental Instructions for Non-U.S. GAAP Filers below, as well as specific guidance contained in text boxes located within the QIS Instructions 3 2014 Insurance QIS QIS Instructions (modified for display purposes) for the relevant line items. Note that non-U.S. GAAP filers should prepare a full balance sheet on a consolidated U.S. GAAP basis prior to filling out the QIS. Any questions regarding the completion of this QIS should be sent to the Federal Reserve. In the subject line of the email, please provide a reference to the specific section of the QIS to which the question relates, using the following categories: Part I, regulatory capital Part II, on-balance sheet assets (items 1-8) Part II, securitizations (items 9a-10) Part II, derivatives and off-balance sheet items (items 12-21) Part II, allowance (item 25, 28, 29) Part II, market risk rule (item 26, memoranda item 4) Part II, memoranda items 1-3 Part III, separate account assets Part III, separate account liabilities Part IV, state-based or foreign equivalent minimum risk-based capital requirements Accounting and U.S. GAAP conversion questions Separate account questionnaire Participation in the QIS Technical issues, data entry and submission Other To facilitate
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