Actuarial Notes

Final 2024 P&C Insurance Return, Instructions and Forms

By Canadian Council of Insurance Regulators · 2024

Study guide: Exam 6C

The instructions, in five sections, for the uniform quarterly and annual P&C returns that all property and casualty insurers in Canada complete. The returns are designed to enable regulators to monitor insurers' financial condition, operating results and certain compliance requirements; the instructions apply generally in all jurisdictions, with each jurisdiction's own requirements set out in Section V, and the Canadian Council of Insurance Regulators (CCIR) Forms Committee invites comments on the return and the instructions. OSFI publishes the sections on its website, and the CAS links them, with the forms of the final 2024 return, from its Exam 6-Canada page.

On the syllabus

  • Exam 6C — objective C1; the detailed instructions for the pages listed in OSFI Core Return, OSFI Annual Return, OSFI Quarterly Return and OSFI MCT/BAAT Return, in Sections I – Introduction (date modified 2024-09), III – Definitions (2025-07), IV – Detailed Instructions (2025-07) and V – Jurisdictional Requirements (2024-06), using the instructions for the 2024 Returns linked on the CAS website.

I Introduction

  • Foreign P&C Insurance Companies
    • A foreign company's returns reflect only its risks insured in Canada: under Part XIII of the Insurance Companies Act, reporting of a foreign entity's business is based on the location of the insurance rather than the location of the risk.
  • Accounting Principles – Quarterly and Annual Returns
    • P&C insurers are publicly accountable enterprises and report using IFRS.
  • Consolidated Financial Statements (Canadian P&C Insurance Companies)
    • The core financial statements, notes, schedules and exhibits are completed on a consolidated basis in accordance with IFRS, except for items marked non-consolidated and life company subsidiaries, which are reported using the equity method.
  • External Auditor Reports
    • The external auditor report is addressed to the primary regulator and covers pages 20.10 to 20.60 of the PC1 Core Financial Statement Return, excluding the liability roll-forward pages.
  • Statutory Authority
  • Guidelines and Bulletins
  • Language Preference
  • General

II Filing Requirements

  • General
  • Filing requirements – P&C return documents
  • Appointed actuary's report
  • Mailing addresses
  • Penalties for late filing
  • Electronic filing
  • Amendments to the P&C returns
  • Quarterly return filing specifications
  • Example

III Definitions

  • General
    • The definitions relate specifically to preparing the P&C Core Financial Statement Return, the Supervisory Quarterly and Supervisory Annual Returns and the Provincial Return, and for that purpose take precedence over definitions of the same terms in non-legislative sources.
  • Classes of Insurance Definitions
    • The classes of insurance are defined in the order they appear on the forms, from personal and commercial property through automobile (reported as liability, personal accident and other), liability (in sub-classes such as comprehensive general liability, cyber, directors and officers, and professional liability), surety and title to marine and accident and sickness.
  • Other Definitions

IV Detailed Instructions

  • Detailed instructions are not provided for every page or field of the P&C Core Financial Statement Return (PC1), Supervisory Quarterly Return (PC2), Supervisory Annual Supplement Return (PC3) and Provincial Return (PCPROV); reference page numbers on the returns point to the supporting exhibit for a statement item.
  • Current Periods (columns 01 & 02) and Prior Periods (columns 02 & 03) in PC1, PC2, PC3 and PCPROV
  • Opening Prior Period Restated in PC1 (columns 05 & 06)
  • Page 10.10 – Annual return
  • Page 10.15 – Directors
  • Page 10.17 – Corporate information – Board committees
  • Page 10.20 – Shareholders
  • Page 10.30 – Corporate organization chart
  • Page 10.40 – Other information
  • Page 10.41 – Other information
  • Page 10.42 – Encumbered assets
  • Page 10.43 – Outsourcing and service agreements
  • Page 10.60 – Summary of selected financial data for five years
    • Adjusted equity is total equity less non-controlling interests, less the capital required for catastrophe reserves and for reinsurance held with unregistered insurers as calculated in the capital return.
    • Investment yield is 2I/(V_b + V_e - I) \times 100, with I the investment return and V the cash, accrued investment income and investments at the beginning and end of the year; return on equity is 2NI/(E_b + E_e) \times 100.
  • Pages 20.10 to 20.60 – "Consolidated" financial statements
    • Canadian insurers report on a consolidated basis and foreign insurers on a non-consolidated basis, and the P&C Core Financial Statement Return is completed in accordance with IFRS.
  • Page 20.10 – Assets
  • Page 20.11 – Liabilities and equity
  • Page 20.12 – Liability roll forward (analysis by measurement component (insurance contracts not measured under the PAA – excluding segregated funds))
  • Page 20.14 – Liability roll forward (analysis by remaining coverage and incurred claims (all insurance contracts – excluding segregated funds))
  • Page 20.16 – Liability roll forward (reinsurance contracts held analysis by measurement component (contracts not measured under the PAA – excluding segregated funds))
  • Page 20.18 – Liability roll forward (reinsurance contracts held analysis by remaining coverage and incurred claims (all contracts – excluding segregated funds))
  • Page 20.22 – Statement of profit or loss
  • Page 20.32 – Consolidated statement of profit or loss (budget) (for BC incorporated insurers only)
  • Page 20.38 – Consolidated statement of profit of loss (annual budget for next fiscal year) (for BC incorporated insurers only)
  • Page 20.41 – Statement of residual interest
  • Page 20.41 – Statement of residual interest – Policyholders' equity
  • Page 20.41 – Statement of residual interest – Liabilities
  • Page 20.42 – Comprehensive income (loss) and accumulated other comprehensive income (loss)
  • Page 20.45 – Head office account
  • Page 20.45 – Reserves
  • Page 20.54 – Statement of changes in equity
  • Page 20.60 – Notes to the financial statements
  • Page 40.08 – Summary of investments
  • Pages 40.12 to 40.52 – Consolidated investments
  • Page 40.12 – Investments: Short-term investments (excluding bonds and debentures)
  • Page 40.22 – Investments: Bonds and debentures
  • Page 40.32 – Investments: Mortgage loans
  • Page 40.70 – Investment properties
  • Page 40.72 – Interest Revenue on Financial Assets
  • Page 40.74 – Investment return (excluding interest revenue)
    • The interest revenue on page 40.72 plus the investment return on page 40.74 should correspond to the investment return on the statement of profit or loss (page 20.22, line 300).
  • Page 40.80 – Other loans and other invested assets
  • Page 40.84 – Summary of equity accounted investees
  • Page 40.88 – Analysis of current year provisions
  • Page 40.92 – Provisions, accruals, and other liabilities
  • Page 50.20 – Receivable from/payable to non-associated agents and brokers
  • Page 50.32 – Intra-group transactions
  • Page 50.40 – Receivable from/payable to
  • Page 60.25 – Insurance service result and Page 60.35 – Claims and adjustment expenses paid, current year, liabilities for incurred claims, current year and prior year claims development
  • Page 60.25 – Insurance service result
    • The totals by class of insurance must equal the insurance revenue, insurance service expenses, net expenses from reinsurance contracts held and insurance service result on page 20.22.
  • Page 60.35 – Claims and adjustment expenses paid, current year, Liabilities for incurred claims, current year and prior year claims development
  • Page 60.45 – Net ultimate claims and adjustment expenses – Claims development
    • Reports actual claims against previous estimates of the undiscounted amount of the claims, starting with the period when the earliest material claims arose but not more than 10 years before the end of the reporting period; the effects of discounting and of the risk adjustment are reported separately.
    • Net liabilities for incurred claims should equal the amounts on page 20.14 less those on page 20.18.
  • Page 60.60 – Remaining CSM from insurance contracts estimated at the end of the year
  • Page 60.70 – Effect of GMM contracts initially recognized in the year
  • Page 60.80 – Changes in onerous contracts for the current period
    • Losses and reversals on onerous contracts and the loss-recovery on reinsurance contracts held are allocated by class of business on a best efforts basis.
  • Pages 60.90 and 60.95 – Discount rates
  • Pages 67.40 to 67.70 – Provincial and territorial exhibits
  • Page 67.40 – Provincial and territorial exhibits of insurance revenue
  • Page 70.10 – Net expenses from reinsurance contracts held
  • Page 70.21 – Summary of intragroup reinsurance contracts issued and held
  • Pages 70.50 and 70.60 – Reinsurance contracts held summary – (registered/unregistered reinsurance)
    • Amounts are identified at the reinsurer counterparty level, not at the contract level; registered and unregistered reinsurers are as defined in Section III.
  • Page 70.60 – Reinsurance contracts held summary: Unregistered reinsurance
  • Page 70.90 – Reinsurance interrogatories
  • Page 70.90 – Summary of non-traditional methods of risk mitigation issued or purchased by insurer or parent for in Canada risk
  • Page 80.15 – Commissions
  • Page 80.25 – Insurance service and other operating expenses
  • Page 80.35 – Other income
  • Pages 85.40 and 85.45 – Insurers licensed in Quebec (based on location of risk)
  • Page 85.40 – Provincial and territorial exhibit of premiums written
  • Page 85.45 – Insurance revenue (policies with a term of more than 12 months)
  • Page 90.15 – Out of Canada operations
  • Pages 92.10 to 95.20 – Non-consolidated financial statements and schedules
  • Page 93.30 – Provincial and territorial exhibit of premiums written
  • Page 95.10 – Net expenses from reinsurance contracts held
  • Page 99.10 – Canadian affidavit verifying annual return
  • Pages 99.11 and 99.15 – Foreign affidavits verifying annual return
  • Page 99.16 – Certification
  • Page 99.20 – Affidavit verifying provincial return

V Jurisdictional Requirements

  • Regulators
  • Newfoundland and Labrador
  • Prince Edward Island
  • Nova Scotia
  • New Brunswick
  • Quebec
  • Ontario
  • Manitoba
  • Saskatchewan
  • Alberta
  • British Columbia
  • Yukon
  • Northwest Territories
  • Nunavut
  • Federal
  • The jurisdictions' sections set out, for example, their legislation, signature requirements, statutory filings by federally registered insurers, actuary's report and filing requirements, including due dates and formats; see Federal-Provincial Jurisdiction.

Related readings

  • OSFI Core Return — the core financial statement return (PC1), whose pages the content outline assigns these instructions for
  • OSFI Annual Return — the supervisory annual return (PC3), whose assigned pages the content outline assigns these instructions for
  • OSFI Quarterly Return — the supervisory quarterly return (PC2), whose assigned pages the content outline assigns these instructions for
  • OSFI Minimum Capital — the MCT/BAAT return (PC4), which the content outline names with the other three

Sources