Appendix 4 - Total funds and liabilities
Summary of funds available, estimated and forecast claims, and discounted value of future claims at 20th February 2011.
Amounts in $000
Funds available Estimated claims and Discounted liability forecast of unreported claims
Total Closed Policy Years
Open policy years 2008 2009 2010
Reserves
Reinsurance Retention reserve US Oil Pollution AP reserve Contingency Account Catastrophe reserve
Other Comprehensive income Statutory reserve
Total funds
- -
204,058 46,549 5,436 240
1,187,737
- - - - -
808,744
- - - - -
755,758
The estimated outstanding claims have not been discounted within the financial statements. This appendix shows the net present value of the future flow of premiums and claims when discounted at 2.6 per cent. The rate of discount is a conservative estimate of the longer term rate of investment return. This discounting demonstrates the potential effect of the investment income generated by the funds of the Association when applied to reducing the liabilities, and thus shows the otherwise undisclosed potential within the Association’s reserves.
290,801
208,204 200,420 232,029
290,801
115,864 152,066 250,013
271,748
108,275 142,103 233,632
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