LLD 15.5 Major treaty reinsurers
The Society must, in connection with the general insurance business carried on by members, include in the Lloyd's Return a statement of major treaty reinsurers.
A major treaty reinsurer is any insurance company to which in the financial year in question or any of the five preceding financial years:
- (1)
in the case of proportional reinsurance, 2% or more of the gross premiums receivable in respect of general insurance business of the members in aggregate has been ceded; or
- (2)
in the case of non-proportional reinsurance, 5% or more of the gross premiums receivable in respect of general insurance business has been ceded.
The Society should be treated as if it were a major treaty reinsurer when inter-syndicate reinsurance in aggregate exceeds the amounts set out in LLD 15.5.2 R.
The requirements of LLD 15.5.1 R, LLD 15.6.1 R and LLD 15.7.1 R may be satisfied by giving a fair view and making use of an appropriate degree of approximation. The Society may employ any reasonable methods to establish the information required.
LLD 15.5.2 R and LLD 15.7.2 R should be interpreted in relation to the period in which these reporting requirements come into effect. In the first Lloyd's Return, only one financial year will be reported on, in the second Lloyd's Return, two, and so on.
The statement required under LLD 15.5.1 R must include:
- (1)
the full name of each major treaty reinsurer;
- (2)
the amount of the reinsurance premiums payable in the financial year to each such reinsurer;
- (3)
whether and if so how the reinsurer was connected to any member or any managing agent;
- (4)
the amount of any debt of each such reinsurer included at line 75 of Form 13 in LLD 15 Annex 1 R;
- (5)
the amount of any deposit received from each such reinsurer under reinsurance treaties included at line 31 of Form 15 in LLD 15 Annex 1 R; and
- (6)
the reinsurers' share of technical provisions shown on Form 13 in LLD 15 Annex 1 R, except that in respect of claims incurred but not reported, such recoveries need only be included to the extent that they are in respect of specific occurrences for which provisions have been allocated;
or, as the case may be, a statement that having aggregated the reinsurance ceded by members no reinsurer is a major treaty reinsurer.