LLM3030 - Reinsurance to Close (RITC) and section 107 FA2000: when the rules apply to Lloyd's members

The rules apply to the technical provisions made in periods of account beginning on or after 1 January 2000. The first period of account in which adjustments were made under the regulations in SI2001/1757 is the first to begin on or after 1 January 2001, that is, the calendar year 2001.

For Lloyd’s members, FA00/S107 (7) ties “periods of account” to the year in which profits are declared. The first RITC premium to which the rules apply is for the 1997 year of account which is declared in 2000.

The first RITC premium in respect of which adjustments can be made is that paid by 1998 syndicates, or run-off syndicates, declared in 2001, by comparison with the RITC premium paid for the 1997 period of account.