Note 15 – Provisions Amounts in $000


Provisions brought forward Amounts paid in the year Foreign currency translation


2011


931 -


5 936


Provisions represent the best estimate of future payments, excluding claims payments, arising from a past event where the final payment is likely but not certain. The amount provided relates to disputes arising in the ordinary course of business of the Club, and the exposure to loss in excess of the amount accrued is minimal.


Note 16 - Reserves Amounts in $000


Open policy years 2010 2009 2008 2007


Contingency Account Catastrophe reserve


Other comprehensive income US Oil Pollution AP reserve Reinsurance Retention reserve Subtotal


Statutory Reserve Perpetual subordinated capital securities


2010


1,627 (700) 4


931


2011


(17,984) 48,354 92,340 -


122,710 204,058


46,549 5,436 - -


378,753 240


98,862 477,855


2010 -


(32,198) 39,291


(10,685) (3,592)


211,276 42,891 -


47,079 13,046


310,700 240


98,405 409,345


During the year a resolution was passed by the Board to close the US Oil Pollution AP reserve and the Reinsurance Retention reserve into the Contingency account.


The reserves are available to meet any deterioration in the open and closed policy years and to contribute to over- spill or Pool claims for which no specific provision has been made. If necessary these funds may be supplemented by calls upon Members (other than those on a fixed premium basis) in accordance with Rules 19 to 25 inclusive. $1.5 million of the reserves are included in the Singapore Branch financial statements, as required by the Singapore regulator.


Reconciliation of total reserves Amounts in $000


Reserves at the beginning of the year Surplus for the year


Gains on forward currency contracts not included within Statement of operations Reserves at the end of the year


2011


310,700 62,617 5,436


378,753 2010


235,527 75,173 -


310,700


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