Technical Standards for the Submission and Collection of Information for the Accounting and Statistical System of Insurance Companies

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TECHNICAL STANDARDS FOR THE SUBMISSION AND COLLECTION OF INFORMATION FOR THE ACCOUNTING AND STATISTICAL SYSTEM OF INSURANCE COMPANIES

Approval: 06/28/2024 Validity: 07/16/2024

THE STANDARDS COMMITTEE OF THE CENTRAL RESERVE BANK OF EL SALVADOR,

CONSIDERING:

I. That Article 86 of the Insurance Companies Law establishes that insurance companies must send to the Superintendence of the Financial System any information that is relevant or necessary to prepare statistics on insurance activity.

II. That Article 3, letter c) of the Financial System Supervision and Regulation Law establishes that it is the responsibility of the Superintendence of the Financial System to proactively monitor the risks of the members of the financial system and the manner in which they manage them, ensuring the prudent maintenance of their solvency and liquidity.

III. That Article 7, letter e) of the Financial System Supervision and Regulation Law establishes that insurance companies, their branches abroad, and the branches of foreign insurance companies established in the country are subject to the provisions of said Law and therefore to the supervision of the Superintendence of the Financial System.

IV. That Article 32 of the Financial System Supervision and Regulation Law establishes that it may require supervised entities direct access to all data, reports, or documents regarding their operations by the means and form it defines. When it deems appropriate, the Superintendence may require direct real-time access to the information systems of the supervised entities.

V. That Article 99, third paragraph, letter a) of the Financial System Supervision and Regulation Law establishes that it is the responsibility of the Standards Committee of the Central Reserve Bank of El Salvador to approve technical standards, instructions, and on any other aspect inherent to risk management by the supervised entities.

VI. That in accordance with Article 101, fourth paragraph of the Financial System Supervision and Regulation Law, the powers to approve, modify, and repeal technical standards that must be complied with by the members of the financial system and other supervised entities are transferred to the Central Reserve Bank of El Salvador.

THEREFORE,

by virtue of the regulatory powers conferred upon it by Article 99 of the Financial System Supervision and Regulation Law,

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TECHNICAL STANDARDS FOR THE SUBMISSION AND COLLECTION OF INFORMATION FOR THE ACCOUNTING AND STATISTICAL SYSTEM OF INSURANCE COMPANIES

Approval: 06/28/2024 Validity: 07/16/2024

AGREES to issue the following:

TECHNICAL STANDARDS FOR THE SUBMISSION AND COLLECTION OF INFORMATION FOR THE ACCOUNTING AND STATISTICAL SYSTEM OF INSURANCE COMPANIES

CHAPTER I OBJECT, SUBJECTS, AND TERMS

Object Art. 1.- These Standards aim to determine the processes for sending, validating data, and submitting financial accounting information that will feed the Accounting and Statistical System of Insurance Companies (SCOE), which the entities subject to its application must send to the Superintendence of the Financial System, with the purpose that it be uniform, timely, and of quality.

Subjects Art. 2.- The subjects obligated to comply with the provisions established in these Standards are: a) Insurance Companies incorporated in El Salvador; b) Branches of foreign insurance companies established and authorized in the country; and c) Cooperative Associations that provide insurance services, incorporated in the country.

Terms Art. 3.- For the purposes of these Standards, the terms indicated below have the following meaning: a) Central Bank: Central Reserve Bank of El Salvador; b) Insurance Companies: Subjects obligated as referred to in Article 2 of these Standards; c) SCOE: Accounting and Statistical System of Insurance; and d) Superintendence: Superintendence of the Financial System.

CHAPTER II DATABASE, REQUIRED INFORMATION, AND VALIDATION

Accounting and Statistical System of Insurance Art. 4.- The SCOE shall be the database receiving the accounting and extra-accounting information sent by Insurance Companies.

Required Information Art. 5.- The financial accounting information to be submitted to the Superintendence by Insurance Companies is as follows:

a) Balances of Insurance Company Accounts; b) Extra-Accounting Variables of Insurers; c) Companies in which Insurers invest; d) Investment by Institution; e) Balances of Insurance Company Accounts in December; and f) Calculation of the instrument by Institution.

The above information will be processed in files that will be prepared according to the structure of the files presented in Annex No. 3 of these Standards.

Description of required information Art. 6.- The required information consists of the definitive figures from the active chart of accounts for Insurance Companies and extra-accounting information necessary to establish the minimum net equity and for the diversification of investments, which is detailed in the annexes of these Standards.

For the proper functioning and uniformity of the SCOE, the chart of accounts must be sent in its entirety, even if some accounts show a zero balance.

Methods for sending information Art. 7.- Insurance Companies must submit SCOE information in the form established by the Superintendence.

Data Validation Art. 8.- In order to achieve the established objectives and for the proper functioning of the SCOE, the Superintendence will make available to Insurance Companies a program that will validate the data. Insurance Companies must respect the regulations in these Standards.

Any changes to the data validation program will be notified to Insurance Companies in a timely manner by the Superintendence.

Art. 9.- The submission of information will be considered valid if it complies with the validations established by the Superintendence.

Correction of errors Art. 10.- In the event that errors occur in the submission of information, the SCOE will not accept the information as valid and it will be rejected.

Responsibility for information Art. 11.- Directors, managers, and employees responsible for the preparation or review of the information will be personally liable for any errors, omissions, and irregularities it contains.

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TECHNICAL STANDARDS FOR THE SUBMISSION AND COLLECTION OF INFORMATION FOR THE ACCOUNTING AND STATISTICAL SYSTEM OF INSURANCE COMPANIES

Approval: 06/28/2024 Validity: 07/16/2024

CHAPTER III SUBMISSION OF INFORMATION TO THE SUPERINTENDENCE

Delivery Dates Art. 12.- The information will be processed in files; these will be prepared according to the file structure and data dictionary presented in Annexes No. 3 and No. 4 of these Standards and must be submitted to the Superintendence within the first five days of the month following the one to which the information refers, except for the month of June, which must be submitted within the first fifteen business days, and for the month of December, within the first twenty business days, both of the following month.

Art. 13.- The information received by the Superintendence may be modified by the Insurance Company within the established deadline for its presentation; once this deadline has expired, it will be considered definitive; however, the Insurance Company may request the respective substitution, justifying it appropriately, notwithstanding that if authorized, the information will be considered received out of time for the pertinent legal effects.

CHAPTER IV OTHER PROVISIONS AND VALIDITY

Sanctions Art. 14.- Non-compliance with the provisions contained in these Standards will be sanctioned in accordance with what is established in the Financial System Supervision and Regulation Law.

Repeal Art. 15.- Information for the Accounting and Statistical System of Insurance Companies (Norms No. 09-2000), approved by the Board of Directors of the Superintendence of the Financial System in Session No. CD-64/2000 on December 7, 2000, whose Organic Law was repealed in accordance with Legislative Decree No. 592 which contains the Financial System Supervision and Regulation Law, published in the Official Journal No. 23, Volume No. 390, dated February 2, 2011.

Transitory Art. 16.- for the Collection of information for the Accounting and Statistical System of Insurance Companies (Norms No. 09-2000), and which were in process at the time these Standards entered into force, will continue and be concluded in accordance with the regulations under which they began.

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TECHNICAL STANDARDS FOR THE SUBMISSION AND COLLECTION OF INFORMATION FOR THE ACCOUNTING AND STATISTICAL SYSTEM OF INSURANCE COMPANIES

Approval: 06/28/2024 Validity: 07/16/2024

Unforeseen Aspects Art. 17.- Aspects not provided for in the matter of regulation in these Standards will be resolved by the Central Bank through its Standards Committee.

Validity Art. 18.- These Standards will enter into force on July 16, 2024.

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TECHNICAL STANDARDS FOR THE SUBMISSION AND COLLECTION OF INFORMATION FOR THE ACCOUNTING AND STATISTICAL SYSTEM OF INSURANCE COMPANIES

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Annex No. 1

LIST OF INVESTMENT INSTRUMENTS

CODE DESCRIPTION 01 SECURITIES ISSUED BY THE STATE, THROUGH THE GENERAL TREASURY DIRECTORATE. 02 SECURITIES ISSUED BY THE CRB. 03 SECURITIES ISSUED OR GUARANTEED BY STATE ENTERPRISES AND AUTONOMOUS OFFICIAL INSTITUTIONS, EXCEPTING THOSE OF THE DEVELOPMENT BANK OF THE REPUBLIC OF EL SALVADOR (BANDESAL) AND THE SOCIAL HOUSING FUND. 04 SECURITIES ISSUED BY BANDESAL. 05 NEGOTIABLE OBLIGATIONS ISSUED BY SALVADORIAN COMPANIES FOR MORE THAN ONE YEAR. 06 SECURITIES ISSUED WITH REAL GUARANTEE TO FINANCE THE ACQUISITION OF HOUSING. 07 SHARES OF SALVADORIAN COMPANIES. 08 PARTICIPATION CERTIFICATES IN SALVADORIAN INVESTMENT FUNDS. 09 FOREIGN INVESTMENTS. 10 DEPOSITS AND SECURITIES ISSUED OR GUARANTEED BY SALVADORIAN BANKS. 11 LOANS. 12 PREMIUMS RECEIVABLE (UP TO THE VALUE OF RESERVES FOR RISKS IN COURSE). 13 LOANS GUARANTEED BY LIFE INSURANCE POLICIES (UP TO THE REDEMPTION VALUE). 14 ORGANIZATION EXPENSES AND INVESTMENTS IN FURNITURE AND EQUIPMENT. 15 NON-RESIDENTIAL URBAN REAL ESTATE. 16 OTHER PUBLIC OFFERING INSTRUMENTS

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TECHNICAL STANDARDS FOR THE SUBMISSION AND COLLECTION OF INFORMATION FOR THE ACCOUNTING AND STATISTICAL SYSTEM OF INSURANCE COMPANIES

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Annex No. 2

LIST OF INVESTMENT LIMITS BY ISSUER AND ISSUE

CODE DESCRIPTION 01 INVESTMENT BASE 02 ASSET OF THE ISSUER 03 ASSET OF THE BUSINESS GROUP 04 SECURITIES SAME ISSUE 05 SECURITIES SAME FUND 06 CAPITAL OF ISSUER

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TECHNICAL STANDARDS FOR THE SUBMISSION AND COLLECTION OF INFORMATION FOR THE ACCOUNTING AND STATISTICAL SYSTEM OF INSURANCE COMPANIES

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Annex No. 3

FILE STRUCTURE

A. XML Database Structure. The data structure is defined with the following files:

File Name Description ssf_scoe_saldo_cuenta.xsd BALANCES OF INSURANCE COMPANY ACCOUNTS ssf_scoe_variable_extracontable.xsd EXTRA-ACCOUNTING VARIABLES OF INSURERS ssf_scoe_sociedad_inversion.xsd COMPANIES IN WHICH INSURERS INVEST ssf_scoe_inversion.xsd INVESTMENT BY INSTITUTION ssf_scoe_saldo_cuenta_diciembre.xsd BALANCES OF INSURANCE COMPANY ACCOUNTS IN DECEMBER ssf_scoe_instrumento.xsd CALCULATION OF THE INSTRUMENT BY INSTITUTION

B. Data Structure for Information Submission. The information will be submitted with the following files:

File Name Description saldo_cuenta.xml BALANCES OF INSURANCE COMPANY ACCOUNTS variable_extracontable.xml EXTRA-ACCOUNTING VARIABLES OF INSURERS sociedad_inversion.xml COMPANIES IN WHICH INSURERS INVEST inversion.xml INVESTMENT BY INSTITUTION saldo_cuenta_diciembre.xml BALANCES OF INSURANCE COMPANY ACCOUNTS IN DECEMBER

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TECHNICAL STANDARDS FOR THE SUBMISSION AND COLLECTION OF INFORMATION FOR THE ACCOUNTING AND STATISTICAL SYSTEM OF INSURANCE COMPANIES

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Annex No. 3

1. File Name: saldo_cuenta.xml

ELEMENT TYPE LENGTH DECIMALS DESCRIPTION id_catalogo_cuenta XsString 13 0 Account Code nombre_cuenta XsString 135 0 Account Name saldo_seguro XsDecimal 17 2 Balance

2. File Name: variable_extracontable.xml

ELEMENT TYPE LENGTH DECIMALS DESCRIPTION id_codigo_extracontable XsString 13 0 Extra-Accounting Account Code nombre_vari XsString 80 0 Variable Name valor_vari XsDecimal 17 2 Variable Value

3. File Name: sociedad_inversion.xml

ELEMENT TYPE LENGTH DECIMALS DESCRIPTION nit XsString 14 0 Tax Identification Number nombre_sociedad XsString 60 0 Company Name direccion XsString 50 0 Address tipo_nit XsString 1 0 NIT Type

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Annex No. 3

4. File Name: inversion.xml

ELEMENT TYPE LENGTH DECIMALS DESCRIPTION id_instrumento_inversion XsString 2 0 Investment Instrument Code nit XsString 14 0 NIT id_concepto_inversion XsString 2 0 Investment Concept Code valor_inversion XsDecimal 17 0 Investment Value

5. File Name: saldo_cuenta_diciembre.xml

ELEMENT TYPE LENGTH DECIMALS DESCRIPTION id_catalogo_cuenta XsString 13 0 Account Code nombre_cuenta XsString 135 0 Account Name saldo_seguro XsDecimal 17 2 Balance

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TECHNICAL STANDARDS FOR THE SUBMISSION AND COLLECTION OF INFORMATION FOR THE ACCOUNTING AND STATISTICAL SYSTEM OF INSURANCE COMPANIES

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Annex No. 4

DATA DICTIONARY

This data dictionary contains the characteristics of the elements that form part of the required structure.

A- File: saldo_cuenta.xml

These data also apply to the file saldo_cuenta_diciembre.xml It will contain the chart of accounts information with balances of insurance companies. The account and description fields must not be modified by the insurers, otherwise the validator will reject them.

FIELD: id_catalogo_cuenta DESCRIPTION: Accounting account code COMMENT: These account codes must be registered up to a maximum of 13 digits, left-justified and without zero padding. Correct Form: Account: ASSET Code: 1 Incorrect Form: Account: ASSET Code: 1000000000000 This value must not be modified, as if it is, the validator will reject the submission.

FIELD: nombre_cuenta DESCRIPTION: Account description COMMENT: It must be left-justified and written in UPPERCASE. Like the account code, this value must not be modified, as it corresponds to the account code in the chart. FIELD: saldo_seguro DESCRIPTION: Account balance as of the date. COMMENT: It must always be sent for all accounts, even if this balance is zero. All account balances must have the sign according to the type of movement they reflect, that is, sign "+" for accounts starting with digits 1, 4, 6, and 8; except for 1299, 1399, 1499, 1799, 1899, 1999, 6299; Sign "-" for accounts starting with 2, 3, 5, 7, and 9; except for 3101020, 3301020, 3801020, 3802020.

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TECHNICAL STANDARDS FOR THE SUBMISSION AND COLLECTION OF INFORMATION FOR THE ACCOUNTING AND STATISTICAL SYSTEM OF INSURANCE COMPANIES

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Annex No. 4

B- File variable_extracontable.xml

File of extra-accounting variables to be sent to the Superintendence. The codes and descriptions of these accounts must not be modified, otherwise the validator will reject the submission. This information corresponds to data that is not reflected through accounts in the chart, and which are necessary for solvency margin and investment calculations.

FIELD: id_codigo_extracontable DESCRIPTION: Code of the extra-accounting variable to be sent to the Superintendence. COMMENT: The value of this variable will be provided by the Superintendence (Annex No. 6) and must not be modified, otherwise the validator will reject it.

FIELD: nombre_vari DESCRIPTION: Name or description of the extra-accounting variable to be sent to the Superintendence. COMMENT: Like the id_codigo_extracontable, this value will be provided by the Superintendence and must not be modified; otherwise, the validator will reject the information.

FIELD: valor_vari DESCRIPTION: Value of the extra-accounting variable to be sent to the Superintendence COMMENT: This value must be entered by the insurers; values with a negative sign must not be entered, all values must be positive.

C- File sociedad_inversion.xml File containing the companies in which insurance companies invest. Only companies in which companies invested in the month of submission will be included. The company identifier will be the NIT field; this number must be the Tax Identification Number provided by the Ministry of Finance, in the case of companies registered by said Ministry; or a number that will serve as the NIT number for non-resident or non-domiciled companies, provided by the Superintendence, in the case of foreign companies not registered by the Ministry of Finance. In the latter case, insurers will be obligated to send the lists of foreign companies for which there is no NIT, so that the Superintendence generates one, which they must place in this file. The codes generated by the Superintendence for foreign companies will be validated upon receiving the submission from insurers.

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TECHNICAL STANDARDS FOR THE SUBMISSION AND COLLECTION OF INFORMATION FOR THE ACCOUNTING AND STATISTICAL SYSTEM OF INSURANCE COMPANIES

Approval: 06/28/2024 Validity: 07/16/2024

Annex No. 4

FIELD: Nit DESCRIPTION: NIT of the company in which the insurer has invested COMMENT: This NIT must be a valid number, provided by the Ministry of Finance, or a number provided by the Superintendence, for those foreign companies that do not have an NIT from the Ministry of Finance. It must be entered without hyphens.

FIELD: nombre_sociedad DESCRIPTION: Name of the company in which the insurance company has invested. COMMENT: Every company must have a name assigned; it cannot be left blank. The letter "Ñ" (<alt 165>) must not be replaced by any other character (#, %, or N). Below are some examples of the correct way to enter company names:

Correct Form Incorrect Form CORPECA, S.A. DE C.V. CORPECA, S. A. DE C. V. LA COOPERATIVA DE R.L. LA COOPERATIVA DE R. L.

It can be observed in the previous examples that before and after the comma (",") that separates the company name with the initials "S.A." there should be no spaces. Similarly, there should be no spaces before and after the period (".") that separates the initials "S.A.". The above also applies to the initials "R.L."

FIELD: Direccion DESCRIPTION: Address of the company in which the insurance company has invested. COMMENT: Enter in uppercase letters.

FIELD: tipo_nit DESCRIPTION: Type of company identifier; this refers to the value stored in the NIT field, which can be an extended NIT by the Ministry of Finance or a number generated by the Superintendence of the Financial System, for foreign companies that do not have an NIT from said Ministry. COMMENT: stored in the NIT field, be an NIT assigned by the Ministry of by the Superintendence.

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TECHNICAL STANDARDS FOR THE SUBMISSION AND COLLECTION OF INFORMATION FOR THE ACCOUNTING AND STATISTICAL SYSTEM OF INSURANCE COMPANIES

Approval: 06/28/2024 Validity: 07/16/2024

Annex No. 4

D- File inversion.xml This contains the detail of the values invested in the different companies by insurance companies. It must store the invested information, according to the investment instrument and the diversification of the values of said instrument.

FIELD: id_instrumento_inversion DESCRIPTION: Investment instrument code. COMMENT: This must be the instrument code assigned by the Superintendence, which is found in Annex No. 1.

FIELD: Nit DESCRIPTION: NIT of the company in which the insurer has invested. COMMENT: This value must appear only once in the File sociedad_inversion.xml, otherwise the submission will be rejected. In this table it may be repeated in different instruments but not in the same instrument.

FIELD: id_concepto_inversion