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%