SCHEDULE 1METHODS OF CALCULATING THE EQUALISATION RESERVE
PART I
Methods of calculating transfers in
1
Amounts to be transferred to the equalisation reserve at the end of a financial year shall be calculated in accordance with paragraphs 2 to 3 below.
2
For business falling within a business group, the amount to be transferred to the equalisation reserve shall be the percentage specified in the table contained in paragraph 3 below of net premiums written in that financial year including adjustments in respect of all previous financial years in respect of that business.
3
The table referred to in paragraph 2 above is as follows.
Business group | Percentage of net premiums written |
---|---|
A | 3% |
B | 3% |
C | 6% |
D | 75% |
E | 11% |