Solvency II - Lloyd's

Section 2: form instructions for Qmc
2.1 QMC010: Control page
Purpose of form: This form collects/confirms basic information regarding the syndicate, including the
syndicate number, managing agent, reporting years of account and their status (open/closed/run-off) and
pure years comprising each reporting year.
The software will generate the forms required to be completed in accordance with the data in the matrix. It is
important that you check that the matrix is populated correctly.
This form also requires the closing rate of exchange used for balance sheet for USD, EUR, CAD, AUD, JPY
and any other foreign currency reported in the QMC 260. Where the accounting policies of the syndicate are
such that more than one rate is used in the balance sheet, then the rate to be entered in this cell is the
predominant rate, normally the one used for monetary items.
When you set up a return, you are required to enter a person as the contact for the return. Any queries on the
return will be addressed to this person together with the person who clicks the action “sign off” prior to
submission of the return.
Each syndicate will have a return Administrator. The Administrator is responsible for adding/amending
contact details for the return. Please ensure that all contact details are correct. Details can be updated via the
‘Admin’ link on the Core Market Returns menu.
We do recognise, however, that persons signing off the return may not necessarily be those to whom queries
should be sent to. If this is the case, please email Market Finance via lloyds-MRD-
ReturnQueries@lloyds.com, with details of an alternative contact, who shall be included on the queries
distribution list relating to the syndicate.
2.2 QMC 002: Overall Balance Sheet
Purpose of form: This form presents an overall view of the financial and solvency condition of the syndicate
under Solvency II valuation rules, along with a quantitative reconciliation with statutory accounts.
This form is required for all reporting years combined and will be required on a quarterly and annual basis.
The amounts in Column A will be valued based on Solvency II valuation principles while those in Column B
will be on a UK GAAP basis.
Column B must agree to the disclosure in the syndicate annual accounts and QMA 002, Column C or, where
fewer lines/different names are used in the accounts/QMA, it should be possible to agree the figures in total.
Assets
Line A3 – Other intangible assets: These are intangible assets other than goodwill. They should be valued at
nil under Solvency II valuation principles, unless they can be sold separately and the syndicate can
demonstrate that there is a market value for the same or similar assets that has been derived in accordance
with Level 2 implementing measures.
Line A11 – Government Bonds: These are bonds issued by public authorities, whether by central
government, supra-national government institutions, regional governments or municipal governments.
Line A13 – Structured notes: These are hybrid securities, combining a fixed income instrument with a series
of derivative components. Excluded from this category are fixed income securities that have been issued by
sovereign governments. These are all securities that have embedded all categories of derivatives, including
Credit Default Swaps (CDS), Constant Maturity Swaps (CMS) and Credit Default Options (CDO).
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