Prudential Regulation Authority Rulebook

9.1

The claims amount is:

1. (1) 26% of the gross adjusted claims amount; multiplied by
2. (2) the reinsurance ratio.

9.2

For the purpose of 9.1 and subject to 9.3, the gross adjusted claims amount is the amount of gross claims incurred (as determined in accordance with 12.1) over the reference period and adjusted by:

1. (1) except for a for a pure reinsurer which ceased to conduct new reinsurance contracts before 31 December 2006, increasing by 50% the amount included in respect of the claims incurred for 11, 12 and 13;
2. (2) deducting 66.7% of the claims for actuarial health insurance that meets the conditions set out in 13.1; and
3. (3) multiplying the resulting figure by 12 and dividing by the number of months in the reference period. For the purposes of this calculation, the number of months in the reference period is the number of complete calendar months in the reference period plus any fractions of a month at the beginning and the end of the reference period.

9.3

For the purposes of 9.1, in relation to general insurance business class 18, the amount of claims incurred used to calculate the gross adjusted claims amount must be the amount of costs recorded in the firm's books in the reference period as borne by the firm (whether or not borne in the reference period) in respect of the assistance given.

9.4

Except in those cases where 9.5 applies, the reference period to be used in 9.2 and 9.3 must be:

1. (1) the financial year in question and the two previous financial years; or
2. (2) the period the firm had been in existence at the end of the financial year in question, if shorter.

9.5

In the case of a firm which underwrites only one or more of the general insurance business risks of credit (as included in general insurance business class 14), storm (as included in general insurance business class 8), hail or frost (as included in general insurance business class 9 and including other business written in connection with such risks), the reference period to be used must be:

1. (1) the financial year in question and the six previous financial years; or
2. (2) the period for which the firm had been in existence at the end of the financial year in question, if shorter.