Regulation 9 Appropriate amount of technical provisions: members of closed Lloyd’s syndicatesI1
United Kingdom
This regulation applies to a general insurer which is a member of a closed Lloyd’s syndicate.
In this regulation, a closed Lloyd’s syndicate is a Lloyd’s syndicate that is not an open Lloyd’s syndicate.
For a period of account, the appropriate amount of the technical provisions for the purposes of paragraph 1 of Schedule 11 is the member’s allowable reinsurance to close amount in respect of the syndicate.
For the purposes of paragraph (2), the allowable reinsurance to close amount for the period of account is the lesser of—
the reinsurance to close amount for the period of account which is treated as a technical provision in accordance with regulation 11 (reinsurance to close amounts); and
subject to paragraphs (4), the aggregate of the member’s share of—
the amount of the provision for unearned premiums determined in accordance with paragraph 50 of Schedule 3 to the Accounts and Reports Regulations;
the amount of the provision for unexpired risks determined in accordance with paragraph 51 of that Schedule; and
the amount of the liabilities in respect of claims outstanding arising from the general business of the syndicate.
For the purposes of paragraph (3)(b), amounts are to be determined on the assumption that—
the syndicate is an open Lloyd’s syndicate, and
no reinsurance to close amounts have been paid in respect of the syndicate by any member of the syndicate.