Life Annual Statement software Life insurance companies A.R.A.S. Life version 3.1 Life Annual Statement software Life insurance companies

Table of Contents Reduction in systems Opening ARAS 3.1 Primary source of reported data ARAS structure What’s new in ARAS 3.1 Added new Files User Friendly Features Common mistakes Transition version 2.7 to 3.1 Future plans ARAS Access to ARAS

Reduction in systems ARAS 2.7 Captive/Reinsurer Life v2.7 Life v2.7 Separate Accounts Life v2.7 ARAS Library ARAS 3.1 Life v3.1 ARAS library Captives/reinsurers and onshore company’s use the same software However, the Separate Accounts File remains v2.7

Opening ARAS 3.1 Open the ARAS library Open the ARAS 3.1 worksheet Close the ARAS text box Select your company name in the ‘Company selection’ text box System automatically sets the company name in all sheets System automatically determines which solvency file should be completed and selects the appropriate minimum requirement

Primary source of reported data Company’s general ledger/ trial balance Link between the accounts in company’s general ledger/ trial balance and ARAS accounts in balance sheet and profit & loss statement Company’s sub-ledgers Premium sub-ledger Claims sub-ledger Investment sub-ledger Link to complete ARAS operational files

ARAS structure File 101 and supporting files ‘Stand alone’ files

101 and supporting schedules

104 and supporting schedules

‘Stand alone’ files 100 125 126 127 128

What’s new in ARAS 3.1 3 Files are added in version 3.1, the other 31 Files remain the same as in version 2.7 New user friendly features which will help in the completion of the ARAS

Added new Files 3 Files are added to the Life statement, namely: 111-O: Reinsurance balances receivable and payable 115: Analysis of risk coverage and reinsurance 116: Technical information on risk coverage and reinsurance So, increased disclosure of the reinsurance arrangements of the company

File 111-O Reinsurance balance receivable Reinsurance balances payable Disclosure of name and location of reinsurer For each type of receivable identified in File 103 Reinsurance balances payable Disclosure of name and location of reinsured For each type of payable identified in File 103

File 115 For each company from which reinsurance is assumed, provide the following information: Premium assumed Portion assumed benefit provision For each company to which reinsurance is ceded, provide the following information: Premium ceded Portion ceded benefit provision and ceded technical provision

File 116 Segregate between assumed and ceded reinsurance programs Briefly describe for each reinsurance program in force, amongst others Standard reinsurance agreements Catastrophe reinsurance agreements Clearly indicate agreements with affiliates! Per type of reinsurance agreement, briefly list particulars, including: Type of coverage, effective date, retention, commission, terms of cancellation, max. coverage per risk or event

User friendly features Clearer description of errors in error list ‘Right click’ menu options ‘Jump to Linked Cells’ ‘Show errors’ Easier data import and export ‘Control total’ errors are marked with red circle, when you left click on it a box will indicate what should be done to solve the error ‘Copy paste’ text from electronic documents into ARAS text files

Common mistakes Set Excel security level at low or medium ARAS library should be opened first for the system to work properly After completion of a year, perform a year-end closing procedure in order to generate a datasheet to be submitted to CBCS. Do not make an export file or copy the whole excel worksheet! The contents of the actuarial and auditor’s report should be typed or ‘copy-pasted’ into ARAS. Do not submit only hard copies!

Common mistakes (cont’d) The date stamp on the submitted hard copy files should be the same on all files. Therefore, these hard copies should be printed from the same year-end closing procedure. Do not mark File 125 as ‘not applicable’. This is required according to article 26, paragraph 3 of the National Ordinance. Not completing this file means non-compliance with our legislation!

Transition ARAS v2.7 to v3.1 Make an export of the 2011 ready-to-complete file. (This file was created after year-end closing of year 2010) Open the ARAS Library and then the ARAS Life 3.1 empty file. Select the name of your company Import the 2011 datasheet containing Last Year totals Enter prior year totals of File 111-O in ‘Last Year Totals’ tab (gray fields) Start entering 2011 data No changes for the Separate Accounts File v2.7. ARAS Library 2.7 is needed to run the software

Future plans with ARAS Electronic submission of datasheets Development of ARAS software in a generic programming language (move away from Excel-based systems) More disclosure of the assets on the balance sheet

Access to ARAS 3.1 Go to www.centralbank.an ‘Click’ on the ‘Login’ icon on the ribbon Username: autoflow Password: CentralBank2 ‘Click’ on link ‘Annual Reports Automated Statements (ARAS)’ Access folder ‘ARAS 3.1’

Questions??