Meanwhile Insurance Bitcoin (Bermuda) Limited (formerly Standard Crypto Insurance — Bitcoin (Bermuda) Limited) (the Company), was incorporated under the laws of Bermuda on June 3, 2022, as an Exempted Company. The Company is licensed as a Class IILT insurer under the Insurance Act 1978. Meanwhile Incorporated (formerly Standard Assets Incorporated), a Delaware Corporation, is the ultimate parent of the Company (Parent).
On May 3, 2023, the Company changed its name to Meanwhile Insurance Bitcoin (Bermuda) Limited.
The Company is in the business of issuing life insurance products to policyholders who are Sophisticated Persons.
This section outlines the key accounting policies the Company follows in preparing its statutory financial statements (Statutory Financial Statements) and reserves under Bermuda’s regulatory framework.
Basis of preparation
The Statutory Financial Statements have been prepared in conformity with the financial reporting provisions of the Insurance Act 1978, amendments thereto and the Insurance Account Rules 2016 with respect to Statutory Financial Statements (the Legislation).
We draw attention to the fact that the Bermuda Monetary Authority has not yet formally finalized or published specific year-end reporting requirements for the Class IILT license class under which the Company operates. The Company has prepared these Statutory Financial Statements based on its understanding of current regulatory expectations. Future clarification of these requirements may necessitate changes to the format or content of subsequent financial reporting.
The Company exclusively transacts in Bitcoin (BTC), and all transactions and balances are measured and recognized in BTC.
At this time, the Company is not required to produce financial statements based on accounting principles generally accepted in the United States of America (US GAAP) or on International Financial Reporting Standards (IFRS), as it operates solely under Bermuda’s regulatory requirements.
The Statutory Financial Statements are based upon generally accepted accounting principles (GAAP) but are in accordance with the reporting requirements of the Legislation, which varies in certain respects from US GAAP and IFRS. The more significant variances are as follows:
| a) | The functional and reporting currency is BTC; |
| b) | The Statement of Cash Flows or equivalent is not included; |
| c) | Statutory reserves are calculated using the Economic Balance Sheet (EBS) Technical Provisions methodology from the “Guidance Notes for Commercial Insurers and Groups Statutory Reporting Regime” dated 30 November 2016 and 8 September 2023; |
| d) | A Statement of Comprehensive Income is not included; |
| e) | The presentation and classification of financial statement line items is in accordance with Schedules IX and XI of the Insurance Account Rules 2016 and differ from the expected presentation and classification under US GAAP and IFRS; and |
| f) | The notes included in the Statutory Financial Statements have been prepared in accordance with Schedule X of the Insurance Account Rules 2016 and exclude certain information required under US GAAP and IFRS. |
The effects of the foregoing variances from US GAAP and IFRS on the accompanying Statutory Financial Statements have not been determined but are presumed to be material.
The Company’s products are classified as insurance contracts for accounting purposes.
Insurance contracts are contracts in which the Company has accepted significant insurance risk from another party, the policyholder, by agreeing to compensate the policyholders if a specified uncertain future event (the insured event) adversely affects them.
As a general guideline, the Company determines whether it has significant insurance risk when at least one scenario with commercial substance can be identified in which the Company has to pay significant additional benefits to the policyholder. Once a contract has been classified as an insurance contract, it remains an insurance contract for the remainder of its lifetime.
Life insurance premiums
Premiums received on life insurance contracts are recorded as revenue in the Statutory Statement of Income within Net Premiums and Other Considerations — Life, under Long-Term Business Underwriting Income, net of federal excise taxes.
Riders
Riders are amendments or additions to a life insurance contract that modify its terms or coverage. They customize the contract to meet the specific needs of policyholders and can either add benefits, exclude certain risks, or clarify particular terms.
The Company may charge additional premiums for these Riders. These extra premiums are recorded as incremental life insurance premium revenue in the Statutory Statement of Income within Net Premiums and Other Considerations — Life, under Long-Term Business Income when received.
Cancelled life insurance contracts
Surrenders are accounted for when payment is due. They are reported in the Statutory Statement of Income within Surrenders, under Long-Term Business Deductions and Expenses, net of any applicable surrender charges.
Surrender charges are recognized upon surrender or partial surrender of a policy in accordance with contractual terms.
Death claims
Death claims are recognized upon notification of death.
Claims related to life insurance contracts due to death are reported in the Statutory Statement of Income under Claims — Life, as part of Long-Term Business Deductions and Expenses.
Policyholders’ funds on deposit
In certain instances, the Company receives an advance premium payment from policyholders on their life insurance contracts.
Premiums received before their due date or before the coverage period are classified as Policyholders’ Funds on Deposit and recognized as a liability on the balance sheet.
These amounts are recorded as a liability within Policyholders’ Funds on Deposit of the Statutory Balance Sheet upon receipt and earned through the Statutory Statement of Income as the life insurance premiums become due.
These amounts are recognized as revenue over the policy’s coverage period. Policyholders’ Funds on Deposit are released to income when premiums become due.
Life insurance reserves/technical provisions
Life insurance reserves represent the estimated future policyholder benefit liability for life insurance contracts.
Future policy benefits for life insurance contracts are actuarially calculated reserves representing the present value of expected future benefit payments under the terms of the life insurance contracts and are calculated in line with the Insurance (Prudential Standards) (Class C, Class D and Class E Solvency Requirement) Amendment Rules 2024.
The calculation is based on a set of best-estimate assumptions (refer to section 4c). Key assumptions include mortality rates, lapse rates, expense rates, and discount rates determined based on risk-free yield curves adjusted by parameters agreed with the BMA.
Life insurance reserves are recognized when contracts are entered into, and premiums are received.
The Company’s life insurance reserves are recorded within Policy Reserves — Life of the Statutory Balance Sheet with corresponding movements in the Statutory Statement of Income within Increase (Decrease) in Policy Reserves — Life, under Long-Term Business Deductions and Expenses. The life insurance reserves include a risk margin calculated in accordance with the Prudential Standards. This amount represents an additional amount of capital the Company is required to hold to represent the potential costs of transferring insurance obligations to a third party.
Life insurance premiums and additional premiums
At the start of a life insurance contract, the premium for the initial coverage period, along with any additional premiums for Riders, is recognized as revenue, as long as the premium is due and collected.
For subsequent coverage periods, the premium, including additional premiums related to Riders, is recognized as revenue when the due date falls within the reporting period and the premium is collected.
Premiums, including additional premiums related to Riders, that are contractually due but have not yet been received by the Company are included as accounts and premiums receivable within Accounts and Premiums Receivable of the Statutory Balance Sheet.
These amounts are recognized as revenue once they meet the criteria outlined above and are included in the current period’s revenue if the coverage period has commenced.
Lapsed or cancelled life insurance contracts
If a life insurance contract policy lapses or is canceled, any earned premium is recognized as revenue up to the date of lapse or cancellation.
Premiums unearned as of the lapse or cancellation date are refunded to the policyholder and not recognized as revenue.
Refund at death
Unearned life insurance contract premiums paid beyond death are refunded to the policyholder’s beneficiary.
Premiums beyond the date of death are recognized as a liability at the time of claim settlement. The refunded amount is deducted from premium income for the period in which the death occurs.
Net Investment Income
Income from investments is recognized on an accrual basis and is reported in the Statutory Statement of Income within Combined Investment Income — Net.
The preparation of the Company’s Statutory Financial Statements requires management to make certain estimates, judgments and assumptions that affect the application of the Company’s accounting policies and the reported amounts of assets, liabilities, revenue and expenses. The Company has established procedures to ensure that its accounting policies are applied consistently and that the processes for changing methodologies for determining estimates are controlled and occur in an appropriate and systematic manner.
Key estimates, judgments and assumptions that represent areas of estimation uncertainty include the following:
Technical provisions
Actual results may differ from the Company’s estimates thereby impacting our Statutory Financial Statements.
The Company does not hold or transact in traditional cash or cash equivalents. Instead, it utilizes BTC, a digital asset, as its sole functional and reporting currency. This is recorded and reported within Quoted Investments—Digital Assets on the Statutory Balance Sheet.
Fair value is measured exclusively in BTC terms, with changes in fair value reflecting only adjustments to the quantity of BTC (e.g., changes in principal amounts, repayments, or transfers).
Unquoted Investments are assessed for impairment at each reporting date. If there is evidence that the issuer or counterparty cannot meet its contractual obligations, an impairment loss is recognized. Impairment losses on held-to-maturity bonds are recognized as a reduction in the Statutory Statement of Income within Combined Investment Income — Net. Fair value represents the amount of BTC a market participant would exchange to acquire an asset or settle a liability in an active and orderly BTC-based market.
Quoted Investments — Digital Assets represents BTC held in custody in a Company-controlled custodial account at Qualified Third-Party Custodian.
Quoted investments are recognized when the Company gains control of the digital asset through a binding transaction and are initially measured at their BTC-denominated fair value at the transaction date.
Subsequent changes in fair value are recognized directly in BTC, reflecting adjustments to the quantity of BTC held (e.g., additions, withdrawals, or other changes in custody balances).
Quoted digital assets are classified within Quoted Investments — Digital Assets on the Statutory Balance Sheet. Encumbered digital assets (e.g., collateral held in secured lending arrangements) are included within Sundry Assets — Other Sundry Assets — Collateral held in Custody.
Unquoted investments represent financial assets denominated in BTC. These assets are recognized on the date the Company becomes a party to the contractual provisions of the instrument and are classified for accounting purposes based on the instrument’s characteristics and the purpose of acquisition.
Unquoted investments are recognized when the Company assumes asset control through a binding contractual agreement. Investments are initially measured at fair value, denominated entirely in BTC.
Bonds and Debentures — Other
Bonds and Debentures represent non-traded debt instruments where the Company has both the intent and the ability to hold them until their maturity date. These bonds are denominated in BTC and are acquired to earn a predictable stream of BTC-denominated interest income and principal repayment.
Bonds and Debentures are recognized as assets on the date the Company becomes a party to the contractual provisions of the instrument.
They are initially measured at their acquisition cost, which represents the BTC-denominated fair value paid at the transaction date, including directly attributable transaction costs.
Bonds and Debentures are subsequently measured at amortized cost using the effective interest rate method.
Bonds and Debentures are assessed for impairment at each reporting date. If there is evidence that the bond issuer cannot meet its contractual obligations, an impairment loss is recognized.
The impairment loss is measured as the difference between the Bonds and Debentures’ carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. Impairment losses on Bonds and Debentures recognized as a reduction in the Statutory Statement of Income within Combined Investment Income — Net.
As of December 31, 2024, the Company approximates the fair value of Bonds and Debentures to equal their amortized cost.
Bonds and Debentures — Derecognition
Bonds and Debentures are derecognized when the contractual rights to receive cash flows expire, which typically occurs upon settlement at maturity or early repayment by the issuer. In such cases, the Company removes the asset from its balance sheet and recognizes any difference between the carrying amount and the amount received (expressed in BTC) in the statement of income. Additionally, Bonds and Debentures are derecognized when the Company transfers the asset and substantially all the risks and rewards of ownership, such as through a qualifying sale or a non-recourse repurchase transaction. In evaluating whether derecognition criteria are met, the Company considers the nature of the transfer, the legal isolation of the asset, and whether effective control has been retained.
Interest Income related to Bonds and Debentures
Interest income is accrued in BTC using the effective interest rate method and is recognized in the Statutory Statement of Income under Combined Investment Income — Net.
Accrued interest that is contractually due but unpaid at year-end is recorded as an asset within Investment Income Due and Accrued in the Statutory Balance Sheet.
The Company engages in secured financing transactions where BTC, classified as Quoted Investments — Digital Assets, is loaned to third parties to generate interest income. Borrowers can sell or repledge the loaned BTC during the loan term.
The terms of these loans vary, with typical durations ranging from 3 days (on-demand) to 12 months. Interest is earned at rates negotiated with borrowers and accrues over the loan term.
Recognition and measurement
The Company requires borrowers to provide collateral, typically in the form of digital assets, including BTC, with a value equal to or exceeding 100% of the loaned BTC.
The fair value of collateral is monitored regularly to ensure compliance with contractual Loan-to-Value (LTV) ratios.
If the LTV ratio falls below predefined thresholds, the borrower may be required to provide additional collateral or repay a portion of the loan.
When BTC is disbursed to the borrower, collateralized loans are recognized as assets on the Company’s Statutory Balance Sheet under Collateral Loans.
Loans are initially measured at the disbursed amount (loan principal) in BTC.
Accrued over the loan term in BTC using the effective interest rate method. Recorded in the Statutory Statement of Income within Combined Investment Income — Net, regardless of when payments are received.
Interest contractually due but not yet received is classified under Investment Income Due and Accrued on the Company’s Statutory Balance Sheet.
Interest received in advance is recorded as a liability under Sundry Liabilities on the Statutory Balance Sheet and recognized in the statement of income within Combined Investment Income — Net as the interest income accrues and becomes due.
Collateral recognition and custody arrangements
When collateral is held in a custody account under the Company’s control:
When collateral is held in a custody account controlled by a qualified third-party custodian, the collateral is not recognized on the Company’s Statutory Balance Sheet and the Company relies on the custodian’s safeguards and asset segregation practices.
For collateral held in Company-controlled custody accounts, collateral is measured at the quantity of BTC received unless the quantity changes.
The liability and the corresponding asset are remeasured for quantity changes but remain neutral to profit and loss in BTC terms unless repossession occurs.
If the collateral is held in a Company-controlled custody account, the liability to return the collateral is extinguished and the collateral asset is reclassified as Company-owned Quoted Investments — Digital Assets and measured at fair value on the repossession date. Any difference between the loan balance and the fair value of the repossessed collateral is recognized in the statement of operations.
If a qualified custodian holds the collateral, the Company assumes control of the collateral upon default and applies the same fair value and reclassification process.
Under current Bermuda law, the Company is not subject to Bermuda income or capital gains tax.
The Company is not subject to tax in any other jurisdiction.
On December 27, 2023, the Bermuda government enacted the Bermuda Corporate Income Tax Act 2023 (CITA). Effective in 2025, the CITA imposes a 15% corporate income tax (CIT) on Bermuda businesses that are part of certain multinational enterprise groups (MNE groups) with €750 million in revenue.
The CITA disregards Tax Assurance Certificates issued under the Bermuda Exempted Undertakings Tax Protection Act of 1966 (TPA) for in-scope entities. While the Company is assessing guidance from the Bermuda government, the Company does not expect to be a member of an MNE group meeting the €750 million revenue threshold, and the CIT does not apply to the Company.
The Company collects federal excise tax on insurance contracts and investment contracts where the insured or owner, is a citizen of the United States of America. The applicable excise taxes are deducted from policyholder premiums received as they become due.
Federal excise taxes deducted from policyholder accounts and not yet remitted to the Internal Revenue Service are reflected as a liability reported within Commissions, Expenses, Fees, and Taxes Payable.
The Company incurs commission expenses related to amounts paid to its distribution and referral partners.
Commissions are recognized when due to distribution or referral partners and may vary with the insurance contract premiums or contributions received from the related policyholders.
Commission expenses incurred are reported in the Statutory Statement of Income within Commissions, under Long-Term Business Deductions and Expenses. Commissions incurred but not paid to distribution partners are recognized on the Statutory Balance Sheet within Commissions, Expenses, Fees and Taxes Payable.
Amounts due to affiliates are recorded at fair value using GAAP principles or, where not applicable, using the EBS valuation hierarchy. Amounts Due to Affiliates generally include incurred and unpaid expenses related to shared services and expense allocation fees charged to the Company by its affiliates. The Company recognizes these expenses on the Statutory Statement of Income within Combined Operating Expense — General and Administration in the period in which the services are performed and expense allocations relate to.
The basis of recognition of investment and commission income are described in Item 4 — Accounting policies.
The financial statements are expressed in BTC, which is both the Company’s functional and presentation currency. Transactions during the period denominated in US dollars (USD) have been translated using the exchange rates on the transaction dates.
Translation of amounts denominated in United States dollars (USD) (or other currencies)
The Company may occasionally acquire insignificant amounts of United States Dollars (USD) or other currencies while operating its business. This includes investment income denominated in USD on some of its investments. In these instances, the Company will convert these currencies to BTC promptly to reduce currency exposure.
In accordance with the Company’s accounting policies and the Bermuda statutory financial reporting framework, all USD and other currency amounts are translated into the Company’s functional and reporting currency, BTC, using the prevailing exchange rates as of the reporting date.
Translation methodology
USD interest accruals are translated into BTC at the exchange rate prevailing on the date the interest is earned and recognized in the financial statements as BTC accruals.
Treatment of translation gains or losses
Translation gains or losses arising between recognizing the USD (or other currency) interest accruals and their ultimate conversion into BTC are recognized within Combined Realized Gains (Losses) in the Statutory Statement of Income.
Not applicable.
No material contingencies or commitments are to be recognized in the Statutory Financial Statements.
Not applicable.
Not applicable.
Not applicable.
Not applicable.
Investments of the Company are measured at fair value in the accompanying financial statements are classified into a fair value hierarchy by level based on the following:
The following tables provide information about the Company’s quoted and unquoted investments measured at fair value as of December 31, 2024 and 2023:
| 2024 (all amounts in BTC) | ||||
|---|---|---|---|---|
| Level 1 | Level 2 | Level 3 | Total | |
| Quoted Investments — Digital Assets | )))))))— | 70.65275291 | — | 70.65275291 |
| Unquoted Investments — Bonds and Debentures — Other | — | 35.00000000 | — | 35.00000000 |
| Collateral Loans | — | — | 105.00010000 | 105.00010000 |
| Total | — | 105.65275291 | 105.00010000 | 210.65285291 |
| 2023 (Unaudited) (all amounts in BTC) | ||||
|---|---|---|---|---|
| Level 1 | Level 2 | Level 3 | Total | |
| Quoted Investments — Digital Assets | )))))))— | 2.20700000 | — | 2.20700000 |
| Collateral Loans | — | — | 92.45485788 | 92.45485788 |
| Total | — | 2.20700000 | 92.45485788 | 94.66185788 |
The contractual maturity profile of the Company’s Fixed Maturity and Short-Term investments as of December 31, 2024 and 2023:
| Fair Value (all amounts in BTC) | ||
|---|---|---|
| 2024 | 2023 (Unaudited) | |
| Due in one year or less | 175.65285291 | 94.66185788 |
| Due after one year through five years | 35.00000000 | — |
| Due after five years through ten years | — | — |
| Due after ten years | — | — |
| Total | 210.65285291 | 94.66185788 |
Shared services and expense allocation
The Company shares certain officers, employees, and general expenses with affiliated companies, and the cost is shared with and allocated to the Company under a Shared Services and Expense Allocation Agreement.
The Company incurred expenses of 5.00000000 BTC under this agreement for the year ended December 31, 2024 (2023: Nil), which are reported in the Statutory statement of income under Combined Operating Expenses—General and Administrative.
As of December 31, 2024, the Company reported a Nil balance (2023: Nil), payable to parent and affiliated companies included in the Statutory balance sheet within Amounts Due to Affiliates. Terms of settlement generally require that these amounts be settled within 30 days.
Transactions with directors
During the financial years ended December 31, 2024, and December 31, 2023, the Company engaged in transactions with certain of its directors who hold policies issued by the Company.
These transactions were conducted on an arm’s length basis under the same terms and conditions available to other policyholders.
These transactions were conducted under normal commercial terms and did not provide preferential treatment to the directors. The Company ensures that such transactions comply with its governance framework and are disclosed transparently.
Directors paid premiums amounting to 0.50000000 BTC during the financial year ended December 31, 2024 (2023: 0.500000000 BTC)
These directors have pre-funded their policies, and the amounts pre-funded are included within the Company’s liability under Policyholders’ Funds on Deposit. As of December 31, 2024, pre-funded amounts totaled 4.00630000 BTC (2023: 0.00700000 BTC).
Purchase of unquoted investments from parent company
Under an Assignment Agreement dated effective July 1, 2024, the Company acquired certain BTC-denominated Promissory Notes from its Parent Company.
The Promissory Notes, initially issued by an unrelated, third-party issuer, have a total principal value of 35.00000000 BTC, bear a 10% annual coupon with accreting interest, and are structured with a full payment of principal and accrued interest due at maturity, July 2026 and October 2026, respectively.
As part of the Assignment Agreement, the Parent Company assigned to the Company all rights, title, and interest in the Promissory Notes, including all accrued interest up to the date of assignment.
The total consideration paid for the acquisition was 37.78668276 BTC, determined based on the fair value of the Promissory Notes on the effective assignment date.
The principal value of the Promissory Notes is recorded in Unquoted Investments — Bonds and Debentures — Other and classified as held to maturity in the Company’s Statutory Balance Sheet, with the accretion of interest recorded in accordance with the effective interest method within Combined Investment Income — Net, in the Statutory Statement of Income. The accrued interest that is contractually due but unpaid on December 31, 2024, is recorded as an asset within Investment Income Due and Accrued in the Statutory Balance Sheet
This transaction aligns with the Company’s investment strategy to enhance portfolio returns and reflects the Company’s policy of deploying BTC-denominated assets in creditworthy investments.
The transaction was conducted on terms equivalent to those prevailing in an arms-length transaction, as confirmed by the Company’s management.
As of December 31, 2024, the fair value of the Promissory Notes is 35.00000000 BTC, and accrued interest recognized amounts to 4.73367335 BTC.
In January 2025, the Company received an early, partial repayment from the unrelated third-party issuer to partially settle the outstanding principal and accrued interest of the Promissory Notes, described in Note 15 above, totaling 23.32234287 BTC. This repayment is allocated as follows: 20.49886215 BTC towards principal and 2.82348072 BTC towards accrued interest. The terms of the Promissory Notes, including the maturity dates, annual coupon and repayment terms, as far as it applies to the remaining principal and interest, is unchanged.
Except for the aforementioned repayment, no material transactions or events occurred between December 31, 2024, and the date of approval for these Statutory Financial Statements.
Not Applicable.
44 Montgomery Street, Suite 1480
San Francisco, CA 94104
Magnolia Towers, 2nd Floor, No. 15 Parliament Street
Hamilton HM 12, Bermuda
Meanwhile Insurance Bitcoin (Bermuda) Limited ("Meanwhile") is a life insurance carrier licensed and regulated by the Bermuda Monetary Authority.
Applications for Meanwhile's insurance products will only be received and reviewed by the company at its offices in Bermuda, and all offers and sales of its insurance products will only be made in Bermuda. Meanwhile does not conduct insurance business in any other jurisdiction.
The material on this website should not be construed as any solicitation to buy, offer to sell, or submit an application for the purchase of any insurance product in any jurisdiction other than Bermuda. Meanwhile may initially make hypothetical illustrations available.
These should be construed as illustrative only and do not constitute a proposal to enter into an insurance contract or an undertaking to offer insurance coverage under any specific terms and conditions in any jurisdiction. Only personnel of Meanwhile are authorized to make representations regarding its insurance products. Any materials which have not been prepared by Meanwhile should not be considered as representations by Meanwhile.
Neither Meanwhile Insurance Bitcoin (Bermuda) Limited nor its affiliates Meanwhile Services (Bermuda) Limited and Meanwhile Incorporated, are lawyers or accountants. They do not provide legal or tax advice. You are wholly responsible for obtaining your own legal and tax advice.