Solvency II - Lloyd's

1.4 Overview of return
1.4.1 A separate return must be submitted in respect of each syndicate. In the case of a mirror syndicate
(i.e. a syndicate which is identical to another in respect of constitution, shares and members' agents
participating therein) both syndicates must be included in one return.
1.4.2 Parallel corporate syndicates must complete and submit separate QMC and QAD returns.
1.4.3 The return must be completed in respect of all open years of account and all run-off years of
account, in order to reflect the total insurance business transacted by underwriting members of
Lloyd’s.
1.4.4 When setting up a return, the system will generate the forms to be completed, and establish the
validation rules to be adhered to, as appropriate to that syndicate’s circumstances.
1.5 Basis of preparation
1.5.1 The returns must be prepared in accordance with these instructions. Where additional clarification is
required this will be issued via Frequently Asked Questions posted on the Core Market Returns
website. This will clearly set out whether the update is a change to the instructions or for guidance
purposes only.
1.5.2 The return must be prepared in accordance with the Solvency II Directive, Level 2 Implementing
Measures and Level 3 Technical Guidance as issued by EIOPA, except where an alternative
treatment is specifically required in the instructions.
1.5.3 The instructions in respect of each form state the level at which the forms should be completed.
Each form must be completed at one of the following levels:
� Whole syndicate (all reporting years combined)
� Reporting year
� Pure year
1.5.4 Whole syndicate or all reporting years combined means all of the transactions or assets and
liabilities as appropriate for the syndicate as a whole.
1.5.5 Reporting year means the calendar year that is being reported, for example, when reporting for the
year end 2014, the reporting year will be 2014.
1.5.6 Pure year relates to the year in which the business was originally written and to which the original
premiums and all subsequent transactions are signed. The pure original year may still be open, or
subsequently reinsured to close into another year of account. For general (non-life) business the
pure original year may be from the 1993 to the 2014 year of account, all liabilities in respect of 1992
and prior years having been reinsured into Equitas effective at 31 December 1995. When reporting
on the transactions for a pure original year, only the transactions relating specifically to that pure year
must be reported.
1.6 Exchange rates
1.6.1 All figures are to be provided in GBP. A market bulletin will be issued on the next working day
following each quarter end providing suggested, but not mandatory, average and closing rates.
1.6.2 For the profit and loss account, all conversions will normally be made using average rates of
exchange as defined under IAS 21, The Effects of Changes in Foreign Exchange Rates. Lloyd’s will
not prescribe the actual rates to be used.
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