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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