Form Annual Letter B Annual Letter B Annual Letter for Admitted Reinsurers

DEPARTMENT OF THE TREASURY
BUREAU OF THE FISCAL SERVICE
WASHINGTON, DC 20227
MB No: 1530-0014(B)
For Paperwork Reduction Act
Statement and Burden Estimate
Statement See Last Page of Letter

December 31, 2024

ANNUAL LETTER TO EXECUTIVE OFFICERS OF SURETY
COMPANIES REPORTING
TO THE DEPARTMENT OF THE TREASURY AS ADMITTED
REINSURERS
Congress authorized the Secretary of the Treasury (the Secretary) in 31 U.S.C. §§ 9304-9305 to certify
a surety company to do business with the United States if the Secretary determines that the company
meets certain conditions and is able to carry out its contracts. Treasury has published its requirements
for companies applying to underwrite or reinsure federal bonds at 31 C.F.R. Part 223.
Pursuant to 31 C.F.R. 223.12, Treasury also recognizes companies as Admitted Reinsurers on bonds
or policies not running to the United States. This Annual Letter describes the documentation
companies seeking such recognition must submit.
PLEASE NOTE:
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This letter and all forms are available on our website: https://www.fiscal.treasury.gov/suretybonds/downloads.html
The U.S. Department of the Treasury, Bureau of the Fiscal Service, published new regulations for the
Surety Bond Program on June 10, 2024. The Final Rule, updated regulation, and implementation guide can
be found on our website. Please note that the new regulations are effective August 9, 2024.

The 2024 NAIC UPLOAD FILE (s.txt file only) for your Company and all insurance company
subsidiaries. Additionally, all supporting information must be sent via email to the Treasury Department
no later than March 1, 2025.
Annual Statement NAIC File Upload (s.txt file only) should be filed for your company as well as for all
insurance company subsidiaries shown on the year-end Schedule D. The Annual Financial Statement
Jurat Page must be signed and sworn to by the company’s President and Secretary or if being signed
by someone other than the President and Secretary, must be signed and sworn in accordance with the
state requirements and provide the state provision in support. The form must be notarized (wet or
electronic signatures and notary seals are acceptable) for the reporting company and all insurance
company subsidiaries shown on Schedule D. A checklist of items to be submitted with the annual filing
can be downloaded from the website above. Please make one complete filing of all documents, to
assist us in accounting for all filings accurately and expeditiously.
The NAIC Upload File (s.txt file only) must be in accordance with the NAIC Annual Statement Filing
Specifications. Please note, the Surety Bond Branch should be notified if the Company's NAIC Upload
File (s.txt file only) is rejected by the NAIC, faulty in any way, or have submitted an amended 2024
annual statement.

Treasury Schedule F can be downloaded from the website above. It is required that the information
reflected in Schedule F of the company's annual statement be reported on the Treasury form in
accordance with instructions on the Schedule. In accordance with the regulation update, Section II
instructions were modified to include Treasury authorized Alien Reinsurers and Complementary
Reinsurers. Section II subpart A now includes a pre-populated listing of companies meeting these criteria
currently approved by Treasury. The Schedule F is a formula driven workbook and automatically
transfers data to the appropriate summary pages. All companies are reminded that the summary page
of Schedule F must be included and be accurately completed. Companies are required to submit the
Treasury Schedule F as a MS Excel document. If errors are found in the document, Treasury will notify
the appropriate staff members from the company.
Questions or comments on the Schedule F can be directed to the Surety Bond Branch at
surety.bonds@fiscal.treasury.gov. Please indicate in the subject line: Treasury Schedule F
Comments/Suggestions.
Pursuant to 31 C.F.R. 223.12 (h)(vii) and (c), Treasury requires companies seeking recognition as Admitted
Reinsurers to submit annual financial statements.
Copies of the Letters of Credit and Trust Agreements and Trust Account balances as of year-end
must be submitted to support the largest three amounts reported on the Treasury Schedule F, Part 2, Cols.
B and C. If such LOC’s are issued by more than one bank, the LOC should specify how the funds are to be
drawn on. Please forward the supporting documents to this Department. All companies are cautioned that
the summary page of Schedule F must be completed accurately, also.
Letters of Credit should be in U.S. currency and should be valid for a period of not less than one year, with an
option to renew thereafter, and must be clean, irrevocable, unconditional letters of credit issued by any of the
banks on NAIC’s current list of “Banks Meeting Credit Standards for Issuing Letters of Credit.”
Reinsurance payables, i.e., ceded (premium) balances payable as would be reported for the cessions on
statutory statement Schedule F, Part 3, Column 17, are allowed as offsets for Treasury rating purposes
provided there is a legal right of offset. Credit may also be taken, with prior approval from this Department, for
multi-beneficiary trust agreements established and maintained in the United States by overseas accredited or
trusteed reinsurers, to the extent the unauthorized ceded business is covered by those accounts.
A statement of actuarial opinion on the adequacy of all loss reserves of the company must be provided by a
“qualified actuary” as defined by the NAIC. The scope, format and opinion of the report should also conform with
the requirements of the NAIC Annual Statement Instructions for Property and Casualty Companies. Where a
pooling arrangement exists, an actuarial opinion on the reserve adequacy of the pool should be
provided, along with a worksheet showing the percentage participation and reserves allocated to each of
the individual pool members.
Companies with annual statement results which show materially adverse reserve development may wish to make
plans to obtain confirmation, satisfactory to the Treasury, from a CPA firm, independent actuary or State
Insurance Department, that its reserves are adequate at December 31. If adverse development continues to
appear, such confirmation may not be accepted from the same person (CPA firm, actuary, etc.) for two
consecutive years. However, if the development of the reserves is not adverse, an actuarial opinion provided
by a “qualified actuary” employed by the company will suffice.
In order to be satisfied that Treasury recognized Admitted Reinsurers are solvent and able to keep and perform
their contracts, Treasury will rely upon a company’s Risk-Based Capital (RBC). RBC is not designed to be used as a
stand-alone tool in determining the financial solvency of an insurance company. As such, Treasury uses it in
conjunction with its regulations and a company’s overall financial results, ratios and trends to evaluate its financial
strength and solvency. The RBC ratio should be maintained at 200% or more at all times. If a company’s RBC ratio
falls below this threshold or otherwise exhibits a concerning trend, Treasury may require the company to take
corrective action to maintain its certification.
A copy of the most recent Examination Report made by a State Insurance Department should accompany the
Annual Financial Statement, provided that the Treasury has not already been furnished a copy. Correspondence
responding to the recommendations made by the State Examiner should be provided to this Department.

Companies recognized as Admitted Reinsurers are expected to maintain results within the usual ranges
for these ratios. When a company's ratio results do not fall within the usual ranges, management’s explanation
for unusual results must be submitted by May 1st. Treasury may notify the company of its concern over the
company's financial condition. The company will be afforded an opportunity to respond to Treasury's concern. If
a company does not meet these criteria, Treasury may request additional information from the Company to
substantiate its qualification for continued recognition as an Admitted Reinsurer.
Please note that in accordance with 31 CFR 223.22, a fee of $3,500 is required for determining the
continued qualification of a company as an Admitted Reinsurer. It is due February 15, 2025. To pay
your fee, go to our internet web site at https://www.fiscal.treasury.gov/surety-bonds/ and click on
“PAY ONLINE”. You may pay online by credit card or ACH Debit. We accept American Express,
Discover, Visa, and Master Card. If you choose to pay via automatic debit, you must first make
sure that there are no restrictions on debit activity for the bank account you plan to use for your
renewal fee payment.
The timely submission of the required data due March 1, 2025 in support of the annual reporting (e.g.,
financial statements and related supporting documents of subsidiary companies, real estate appraisal
reports, actuarial opinions, NAIC Ratios, explanatory memoranda, etc.) is the responsibility of the
reporting company.
EMAIL ALL DOCUMENTATION TO:
surety.bonds@fiscal.treasury.gov
(and/or to the financial analyst assigned to examine your company)
If your Company assumed only a nominal amount of reinsurance or no longer reinsures Treasury Certified
companies, and you no longer wish to file the above material to continue your current Admitted Reinsurer Status,
please submit a written request to be removed from Treasury’s List of Admitted Reinsurers.
Melvin Saunders
Manager
Surety Bond Branch
Enclosure

Paperwork Reduction Act Statement
By authority of 31 U.S.C. 9304-9308, 31 CFR, Part 223, the information requested in this letter is required to retain a benefit and to enable the
Assistant Commissioner, Fiscal Accounting, Bureau of the Fiscal Service, Department of the Treasury, to determine if your company is
maintaining compliance with the requirements of the Department of the Treasury in order for your company to remain qualified and acceptable as
a surety or reinsurer of Federal bonds. Certified companies are required to file this information with Treasury once each year on March 1. Failure
to provide this information will result in non-compliance with Treasury regulations and may result in a loss of your company's authority to act as a
surety or reinsurer of Federal bonds.
Burden Estimate Statement
The estimated average burden associated with this collection is 39.75 hours per respondent or record keeper, depending on individual
circumstances. Comments concerning the accuracy of this burden estimate and suggestions for reducing this burden should be directed to the
Bureau of the Fiscal Service, Forms Management Officer, Parkersburg, WV 26106-1328. THIS ADDRESS SHOULD ONLY BE USED FOR
COMMENTS AND/OR SUGGESTIONS CONCERNING THE AMOUNT OF TIME SPENT TO COLLECT THIS DATA. DO NOT SENDTHE
COMPLETEDPAPERWORKTO THE ADDRESS ABOVE FORPROCESSING.

ANNUAL CALENDAR OF FILINGS IN 2025 FOR COMPANIES RECOGNIZED BY THE TREASURY
AS ADMITTED REINSURERS OF SURETY COMPANIES
DOING BUSINESS WITH THE UNITED STATES GOVERNMENT
Due February 15 (or the following business day if the 15th falls on a weekend) Renewal Fee of $3,500 (email
proof of payment to The Surety Bonds Branch)
Due March 1 (or the following business day if the 1st falls on a weekend) (Refer also to the Checklist posted
on our website.)
 Annual Financial Statement Jurat Page, signed, sealed, and notarized for reporting company and all insurance
company subsidiaries shown on Schedule D.
 The NAIC File Upload (s.txt file only) for reporting company and all insurance company subsidiaries shown on
Schedule D.
 Treasury Schedule F* (ceded reinsurance only). The Treasury Schedule F should be submitted as an
MS Excel Document. Note: The Schedule F included in the company’s Annual Statement reporting
assumed reinsurance is sufficient for Treasury rating purposes. However, if Schedule F - Part 1 of the
company’s Annual Statement showing their assumed reinsurance is not included in the company’s Annual
Statement filed by March 1, it can be submitted separately no later than April 1.
 Statement of Actuarial Opinion.
 Annual Checklist* for Filings for Admitted Reinsurer Companies (including contact person information and email
address)
https://www.fiscal.treasury.gov/surety-bonds/downloads.html
>> Please note, we do not require the Insurance Expense Exhibit to be filed or the PDF format of the
Annual Financial Statement.
Due May 1 (or the following business day if the 1st falls on a weekend)
 IRIS Ratio Management Explanation for unusual Results
Due June 1 (or the following business day if the 1st falls on a weekend)
 CPA Audited Financial Statements** (specific to the reporting company – no consolidated statements unless
approved by in advance by the Surety Bond Branch)
 CPA Report on Internal Control and the Management Letter as received.
 CPA’s Management Letter 10-K Report, if applicable
Due December 31 (or the following business day if the 31st falls on a weekend)
 Request for filing consolidated CPA reports, if applicable
Due Whenever Released by the State
 State Exam Report
Due Whenever Applicable
 NAIC Biographical Affidavits on New Officers and Directors/Others ( marked with a “#” on each new period’s Jurat).
Please redact Personally Identifiable Information (PII) prior to submitting.
 Information on Changes in Reinsurance Agreements
 Information on Ownership and/or Name Changes
 Any additional data requested by Treasury
* All of our forms are now available on-line:
https://www.fiscal.treasury.gov/surety-bonds/downloads.html
** These items should be sent as early as possible.
Revised 12/2024

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