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Appendix 2 - Development of open policy years Amounts in $000


Calls and premiums Less reinsurance premiums


Incurred claims: Paid


Known outstanding estimates Unreported estimates


Operating expenses Net Investment return


2010


364,901 65,738


299,163 35,916


150,200 99,813


285,929 37,081


323,010 5,863


Anticipated surplus


23,000 5,016


2009


385,499 61,328


324,171


108,050 104,824 47,242


260,116 38,135


298,251 22,434


(Deficit)/Surplus (17,984) 48,354 Future investment income


12,000 60,354


2008


480,491 61,767


418,724


192,353 88,587 27,279


308,219 45,069


353,288 26,904 92,340


5,000 97,340


Notes:


(a) Incurred claims comprise claims paid (net of reinsurance recoveries), together with contributions to other P&I associations under the Group’s pooling arrangements, claims management costs and expenses, and estimates for reported and unreported claims (including future claims management costs).


(b) The approximate yield of a 10 per cent supplementary premium on the open policy years would be $30 million (2010), $32 million (2009) and $34 million (2008).


(c) Calls and premiums are shown gross; operating expenses include acquisition costs.


(d) The outstanding contributions to other P&I associations’ claims under the Group’s pooling arrangement, including unreported claims, are $35 million (2010), $25 million (2009), $4 million (2008) respectively. (e) Future investment income reflects the investment income expected in respect of policy year funds.


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