Prudential Regulation Authority Rulebook

11.1

The reinsurance ratio is:

1. (1) if the ratio calculated in (a) and (b) lies between 50% and 100%, the ratio (expressed as a percentage) of:
1. (a) the claims incurred (net of reinsurance) in the financial year in question and the two previous financial years; to
2. (b) the gross claims incurred in that three-year period;
2. (2) 50%, if the ratio calculated in (1)(a) and (b) is 50% or less; and
3. (3) 100%, if the ratio calculated in (1)(a) and (b) is 100% or more.