The Insurance (Lloyd's) Regulations 1997

4.—(1) For the purposes of those paragraphs—

(a) a syndicate year shall be treated as being closed at the time as from which reinsurance to close that syndicate in accordance with Lloyd’s byelaws takes effect, either into another syndicate year or into an insurance company approved by the Secretary of State for the purposes of these Regulations;

(b) a syndicate year shall be treated as open until it is closed;

(c) a syndicate year shall be taken to be closed into another syndicate year if it was closed by way of a contract of reinsurance to close into that other syndicate year, either directly or through a succession of such contracts;

(d) in relation to any member, the following amounts, namely—

(i) in the case of general business, premiums receivable, claims paid, claims outstanding and amounts recoverable under reinsurance contracts ceded; and

(ii) in the case of long term business, mathematical reserves (both before and after deduction of reinsurance cessions) and capital at risk,

shall be treated in accordance with sub-paragraph (e) below;

(e) any amounts to which sub-paragraph (d) above applies shall be deemed to include, and only to include, such amounts as arose in respect of the member’s share of—

(i) open syndicate years in which the member participated at the end of the last preceding financial year; and

(ii) any other syndicate years which have not been closed into such open syndicate years (whether or not such amounts in respect of such other syndicate years were receivable, paid, outstanding or recoverable before the date of closure and whether or not such amounts relate to a date before the date of closure); and

(f) in the case of amounts falling within sub-paragraph (e)(ii) above, the member’s share of any such other syndicate year shall be determined by reference to the share of the open syndicate year into which it has been closed and not by reference to the member’s share (if any) of the other syndicate year.

(2) For the purposes of paragraph 2 of the said Schedule 4, a member of Lloyd’s shall be taken to be a company which has been in existence from the date of commencement of the oldest of the open syndicate years and other syndicate years referred to in sub-paragraph (1)(e) above.