Note 4 – Capital management The Association maintains an efficient capital structure from a combination of Members’ funds (reserves) and long term funding (Perpetual Subordinated Capital Securities), consistent with the Association’s risk profile. The Association’s objective is to maintain sufficient capital to ensure it is able to continue as a going concern, meet regulatory requirements and maintain an “A” rating with Standard and Poor’s, with a substantial margin in each case.
The Association monitors available capital and its funding structure in the light of the prevailing economic environment, the risk associated with its asset holdings, and regulatory developments impacting on the Association.
The Association’s principal regulator is the Financial Services Authority (“FSA”) in the United Kingdom. Under the FSA’s ICA regime the Association is obliged to assess and maintain the amount of capital required to meet the risks that it faces based on a 99.5 per cent confidence level of solvency over one year or a longer time frame with an equivalent probability. Throughout the period the Association complied with the FSA’s capital requirements and the requirements in the other countries in which it operates.
The issue of Perpetual Subordinated Capital Securities allowed the Association to strengthen its capital base in line with its objectives. The capital issued qualifies as tier one capital for the purposes of the FSA requirements. Its purpose is to provide long term capital without forming part of ongoing operational cash requirements.
At the year end the Association’s capital resources included reserves of $379 million (2010: $311 million) and
Note 5 – Calls and premiums Amounts in $000
Mutual Mutual premium
Supplementary calls Return premiums Release charges
Fixed premium Chartered vessels Owned vessels US Oil Pollution
298,141 140
(975) 5,354 302,660
45,285 12,301 4,545
62,131 364,791
319,111 63,316 (8,398) 8,156
382,185
48,515 10,396 6,087
64,998 447,183
2011
2010
Note 6 – Reinsurance premiums Amounts in $000 Market underwriters
Other reinsurance arrangements
2011
70,218 -
70,218
2010
65,335 10,600
75,935
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