Office of the Superintendent of Financial Institutions
All federally regulated insurance companies (insurer) are required to complete a Key Metrics Report (KMR). The KMR form is to be submitted to OSFI at least annually and within 30 days of the Own Risk and Solvency Assessment (ORSA) report being reviewed by the insurer's Board of Directors or signed off by its Chief Agent. The following instructions are provided to assist in completing the KMR:
The template should not be modified by the insurer. Insurer input should be made only to the white cells in the template. Shaded cells are not applicable or contain embedded formulas that should not be adjusted.
A structured return (OP) will be made available within your RRS Draft Returns folder on a yearly basis. Insurers will have two filing options:
Insurers who wish to include an alternative presentation should do so by submitting an additional schedule to their OSFI Lead Supervisor in addition to the RRS KMR (OP) structured filing.
Name of insurer and date of ORSA report reviewed by the insurer's Board of Directors or signed off by its Chief Agent should be entered in the respective yellow boxes at the top of the KMR.
The amounts reported as "Regulatory Capital (Margin)" should be those calculated per the MCT / MICAT.
Regulatory Capital (Margin) under the MCT / MICAT is calculated at the Supervisory Target level and should be reported in this way on column 02, lines 01 through 04 and line 19. The Regulatory Capital (Margin) at Target level is adjusted to the MCT / MICAT Minimum capital (margin) required on line 05 by an embedded formula.
Line 05 :
MCT / MICAT Minimum
This line is calculated by an embedded formula. It represents the insurer's regulatory MCT / MICAT "Minimum capital (margin) required". Refer to the MCT / MICAT guideline for the detailed calculation approach.
The risk categories (e.g. Insurance, Market, Credit, Operational, Other) and amounts reported as an insurer's "ORSA Capital (Margin)" should reflect those determined as part of the insurer's ORSA process.
Lines 06 – 17:
Other ORSA Risks
ORSA Adjustments – Other
Adjustments – Aggregation / Diversification
ORSA Adjustments - Extremely Severe Scenarios
ORSA Own Capital (Margin) Needs
ORSA Adjustments – Varying Nature & Severity Scenarios
A summary calculation and explanation of the between-risks aggregation /diversification adjustment methodology and results (line 19) should be documented and included within the ORSA report or supporting materials.
To determine if the Internal Target is above OSFI's Supervisory Target, compare the dollar ($) amount of the: