PERFORMANCE MANAGEMENT DATA return

Transcription

1 1 PERFORMANCE MANAGEMENT DATA return Instructins 2018 V1.1

2 2 Cntents Cntents 2 0 Amendments t previus versin 5 1 Intrductin Perfrmance Management Data Return (PMDR) Benefits t Managing Agents General principle PMD Return Specificatins & Underwriters Guide Overview f the PMDR Grss Written Premium Basis Change 9 2 General instructins PMDRs required Reprting timetable Late submissin f the PMDR PMDR creatin and initial submissin prcess PMDR validatin Offline validatin Online validatin PMDR final submissin prcess PMDR resubmissin PMDR feedback Frequently asked questins Key cntacts Perfrmance Management Data Return Team Key cntacts Llyd s Infrmatin Technlgy Grup Key cntacts Llyd s Market Returns 14 3 Basis f preparatin Data required Reprting perid Separate PMDRs fr each syndicate Merged syndicates Special purpse syndicates Classificatin f risks as either new r renewed Syndicate premiums based n written and signed lines Other premium adjustments Outstanding premiums Early reprting f risks that have nt yet incepted, renewed r expired Risks nt included in the PMDR fr the mnth f their inceptin date Cancellatins Central settlement numbers (CSN) Unique market references (UMR) UMR prvisin rules PMDR UMR requirements UMR nt yet knwn Distributin channel and syndicate class f business cmbinatins Invalid distributin channel and methd f placement cmbinatins Methd f placement Risks written by agent service cmpanies Risks written in Asia, China and Japan Risk cdes Risk cde validity Relatin t risk expsure lcatin and methd f placement Prperty risk cdes 21

3 Risk cdes fr prperty risks written by agent service cmpanies Incrrect risk cde n the slip Expiry dates Nn-psitive 100% Grss Written Premium Change fields ( ) Current 100% benchmark price (230) Changes t plicy structure r changes in premium denminatin upn renewal Change at renewal f nn-risk-identifying fields Level f granularity t aggregate r nt t aggregate Agent service cmpanies and binding authrity and lineslip cntracts Prprtinal treaty (quta and surplus share) arrangements Persnal mtr and life risks Package plicies Business written by a managing agent s Asia, China, Dubai r Japan peratin Single risk flag Apprtinment f Grss Written Premium Reprting currencies and exchange rates Frm Frms 286, 287 and Exchange rate regime Premium denminated in several different currencies Gap-in-cver plicies Multi-year plicies Outwards prfit cmmissins Inwards reinstatement premiums Frm Frms 286 and Frm Reprting f lineslips 30 4 Data specificatin Frm 263 Premium vlume summary Frms 286, 287 and 288 Price mvements and premium vlumes 35 5 Reference data Exchange rates Other reference data sets 59 6 Reprting methds - Changes in risk-identifying fields upn renewal Intrductin One riginal currency changes t anther with n change in reprting currency Preferred methd Alternative methds One riginal currency changes t anther with a change in reprting currency Preferred methd Alternative methds One riginal currency changes t tw with the frmer riginal currency being renewed Preferred methd Alternative methds One riginal currency changes t tw with the frmer riginal currency nt being renewed Preferred methd Alternative methds Tw riginal currencies change t ne with ne riginal currency being renewed Preferred methd Alternative methds Tw riginal currencies change t ne with neither riginal currency being renewed Preferred methd Alternative methds 71

4 4 7 Reprting requirements - Binding authrity and lineslip cntracts Frms 286 and Binding authrity and lineslip cntract facility recrds Basic requirement Grss Written Premium when declaratins are nt reprted Grss Written Premium when declaratins are reprted Grss Written Premium estimates in facility recrds Renewed facility recrds Inceptin and expiry dates f facility recrds Binding authrity and lineslip cntract declaratin recrds Relatinship t facility recrds Grss Written Premium in declaratin recrds Renewed declaratin recrds UMRs f declaratins recrds Inceptin and expiry dates f declaratin recrds Declaratins with an inceptin date later than 31/12/yyyy 79 8 Examples - Binding authrity and lineslip cntracts Frms 263, 286 and Binding authrity cntract tw risk cdes, premium estimate variatin, n declaratins Binding authrity r lineslip cntract ne risk cde, n premium estimate variatin, n declaratins Binding authrity r lineslip cntract ne risk cde, n premium estimate variatin, declaratins 83 9 Example Level f granularity package plicy Examples Apprtinment f Grss Written Premium Example Currency cnversin Examples Multi-year plicies Distributin channel cde Example Calculatin f risk-adjusted rate change Risk Adjusted Rate Change (Grss Basis) Risk Adjusted Rate Change (Net Basis) Example Current 100% benchmark price 105

5 0 Amendments t previus versin 5 Versin Sectin Title Cmments 2012 V Key cntacts Llyd s Market Return New sectin 2012 V PMDR UMR requirements Updated fr new Japan methds f placement frm 1 July V Invalid distributin channel and methd f placement cmbinatins Updated fr new Japan methds f placement frm 1 July V Business written by a managing agent s Asia, China r Japan peratin Updated fr new Japan methds f placement frm 1 July V Gap-in-cver plicies New sectin n reprting n gap-in-cver plicies 2012 V Frms 186 and 187 Updated fr greater clarity 2012 V Frm 188 New sectin 2012 V Reprting f lineslips New sectin n reprting f lineslips 2012 V Frms 186, 187 and 188 Price mvements and premium vlumes Llyd s slip leader flag must be set t N when a risk has been ceded t the syndicate frm anther syndicate 2012 V2.1 0 Amendments t previus versin Sectin numbers were incrrect and have been updated 2016 V1.0 General Changes Change f basis fr PMDR. Majr change t PMDR t mve the basis fr premium, risk adjusted rate change and benchmark price frm stamp grss premium t grss written premium. Acquisitin csts changes are nw recrded as a separate field and additinal dimensins fr Cverhlder PIN, Dmicile f the Insured and Service cmpany Indicatr have been added V1.0 General Changes PMDR Frm numbers changed Changed frm 163, 186, 187, 188, 189, 189a & 189b t 263, 286, 287, 288, 289, 289a & 289b

6 V Grss Written Premium Basis Change New sectin added 2016 V Data required New dimensins added Dmicile f the Insured; Cverhlder PIN; Service Cmpany Indicatr 2016 V PMDR UMR requirements New UMR required table added Agent Service Cmpany paragraph remved 2016 V Outwards prfit cmmissins Inwards reinstatement premiums Example diagrams amended 2016 V1.0 4 Data Specificatin Existing fields/descriptins amended and new fields/descriptin added 2016 V1.0 5 Reference Data New field inf added Dmicile f the Insured; Cverhlder PIN; Service Cmpany Indicatr 2016 V1.0 7 Reprting requirements - Binding authrity and lineslip cntracts Frms 286 and 287 New dimensins added Dmicile f the Insured; Cverhlder PIN; Service Cmpany Indicatr 2016 V1.0 8 Examples - Binding authrity and lineslip cntracts Frms 263, 286 and 287 All diagrams and supprting text amended t reflect Grss Written Premium changes 2016 V V V1.0 9 Example Level f granularity package plicy Diagrams amended t shw 2016 dates 11 Example - Currency Cnversin Diagrams amended t reflect Grss Written Premium changes 12 Examples Multi-Year Plicies Diagram amended t reflect Grss Written Premium changes 2016 V Example Distributin Channel Cde 2016 V Example Calculatin Of Risk-Adjusted Rate Change Diagram remved (n lnger relevant) Supprting text amended Diagrams and supprting text amended t reflect Grss Written Premium changes 2016 V Current Syndicate Acquisitin Csts Expiring 100% Acquisitin Csts Revised requirements regarding signage criteria

7 V Change in Expiring 100% Grss Written Premium Due t Change in Deductible / Attachment Pint Field name has been amended t clarify the infrmatin that it shws. The name has changed t Change in Expiring 100% Grss Written Premium Due t Change in Limit / Attachment Pint 2017 V1.0 5 Reference t Dmicile f the Insured Reference t Dmicile f the Insured (tba) changed t Dmicile f the Insured (DOI) 2017 V Example 2 Optin t re-sign The Nte the fllwing features f the data sectin f Example 2 Optin t resign has been updated t make the text relevant t Example 2 as it had previusly cntained the same text frm the crrespnding sectin f Example 1 N ptin t re-sign 2017 V Other premium adjustments Update t the explanatin n when a managing agent can update expiring premium amunts thereby prviding them with mre scpe t make this decisin 2017 V Additin f reference t risk expsure lcatin cde QM where risks are present in multiple physical lcatins Inclusin f infrmatin n usage f risk expsure lcatin cde QM fr risks with expsure in multiple physical lcatins. QM is used where the risk is present in multiple physical lcatins including minimal expsure in the United States f America 2017 V Update t verview fr field [210] Change in Expiring 100% Grss Written Premium Due t Pure Rate Change Reference t attachment pint/deductible changed t limit/attachment pint 2018 V Update t verview fr field [125] Cverhlder PIN Reference t the frmat f the Cverhlder PIN updated t crrectly reflect 6 numeric and 3 alpha digits

8 8 1 Intrductin 1.1 Perfrmance Management Data Return (PMDR) The Perfrmance Management Data return (PMDR) allws the Perfrmance Management Directrate t identify and challenge, in a timely manner, underwriting management and perfrmance, which is nt in line with a managing agent s business plan fr a syndicate as given in the apprved Syndicate Business Frecast (SBF) fr the return year. PMDR cllects data n the premiums vlumes being written the price business is being written at relative t business plan assumptins (Benchmark Price) the price change n renewed business (Risk Adjusted Rate Change) 1.2 Benefits t Managing Agents The primary benefit f PMDR fr managing agents is the imprved prtectin f the Central Fund. This results frm the enhanced ability f Llyd s: t check syndicates are writing in accrdance with their apprved plan (e.g. fr example, the type and vlume f business written and the prices charged) t assess syndicates perfrmance against market results and the perfrmance f peers t challenge managing agents that are nt underwriting prudently t take actin when managing agents are nt meeting their plans r ther bligatins t prtect the Llyd s brand, and t supprt the Llyd s rating The SBF gives a view f planned future perfrmance while the Quarterly Mnitring Return (QMB) tracks the actual perfrmance achieved n business that has been written. PMDR fills a gap between these returns and shws the current cnditins in the market. 1.3 General principle The data required t cmplete the PMDR ught t be readily available t a managing agent wh underwrites (re)insurance risks accrding t the franchise standards. The PMDR is expected t be cmpleted via an autmated prcess which extracts data directly frm the managing agent s underwriting systems. In rder t achieve this general principle the instructins ffer managing agents a flexible apprach in a number f areas. If a managing agent is unable t supply data accrding t these instructins they must cntact the PMDR team t discuss the difficulties they are having. 1.4 PMD Return Specificatins & Underwriters Guide The PMD Return Specificatins dcument cntains the PMDR data template and validatin specificatins. It is published n the PMD Hmepage f the Cre Market Returns (CMR) website and can be dwnladed frm there. The Perfrmance Management Data Return Underwriters Guide gives a high level f verview f the principles that underlie PMDR and includes examples f hw the data is used by Llyd s in cnjunctin with the Syndicate Business Frecasts and Quarterly Mnitring Returns. This dcument; alng with a range f rate change scenari examples are available frm the Llyd s website at

9 9 1.5 Overview f the PMDR The PMDR cnsists f fur frms which must be cmpleted in respect f each syndicate writing (re)insurance business during the current return year. Frm 263 cllects premium data fr the pure year aggregated t the whle accunt level. Frms 286, 287 and 288 cllect data n each individual (re)insurance cntract which has been written r has expired during the current return year. The mnetary amunts reprted n these frms are t be based n premiums underwritten withut any accunting adjustments. Frm 286 cllects premium vlume data fr (re)insurance cntracts which are new t the syndicate in the pure year. Frm 287 cllects premium vlumes and price mvement data fr all renewed (re)insurance cntracts in the pure year. Frm 288 cllects premium vlume data fr (re)insurance cntracts which were due fr renewal but ultimately expired in the return year. A CSV file is created fr each PMDR frm. The fur CSV files are zipped t create the PMDR. Each CSV file must have a return file header as the first recrd in the file. This helps Llyd s identify the key details regarding the frm. Sectin 2 f these instructins cntains general instructins and sectin 3 specifies the basis f preparatin fr cmpleting the fur frms. Details f the individual fields in the fur frms are cntained in sectin 4. The data templates detailing the required frmat fr the return file header and the CSV file fr each frm are published in the PMD Return Specificatins. Sectin 14 describes the underlying principles behind risk adjusted rate change and benchmark price and describes hw these are calculated. 1.6 Grss Written Premium Basis Change Frm launch in 2009 up until the 2015 reprting year, PMDR cllected premium data n a cumulative stamp grss premium written basis, i.e. cumulative written premiums including Inceptin Data Accunting (IDA) premiums and net f acquisitin csts and Qualifying Quta Share (QQS) transfer t special purpse syndicates. A breakdwn f stamp grss premium cmpnents were reprted in the PMD 163 frm and the aggregate premium reprted had t match the sum f the UMR level premium reprted in the PMD 186 and PMD 187 frms. Rate change was reprted in the PMD 187 frm based n changes in stamp grss premium and benchmark price was reprted in PMD 186 & PMD 187 as the stamp grss premium that wuld need t be charged t meet the apprved SBF s lss rati planning estimate. Frm the 2016 reprting year frward, PMDR will mve t a grss written premium basis, i.e. cumulative written premiums including IDA premium but grss f acquisitin csts and QQS premium. The cmpnents f grss written premium are reprted separately within the PMD 263 frm and the aggregate grss written premium in PMD 263 shuld match the ttal grss written premium reprted in frms PMD 286 and PMD 287. Please nte that the treatment f bnuses and rebates remains the same n PMD 263 as it was in PMD 163. The aggregate acquisitin csts reprted in PMD 263 shuld als match the aggregate acquisitin csts reprted in PMD 286 and PMD 287. Rate change measured in the PMD 287 frm will be based n changes in grss written premium; and benchmark price reprted in PMD 286 & PMD 287 will be the grss written premium that needs t be charged t meet the apprved SBF s lss rati planning estimate (see Sectin 14). The change t the grss written premium basis will cme int frce fr the first PMDR submissin fr the 2016 reprting perid that is due fr submissin n 15 th February All returns relating t the 2016 reprting year and later will be required n a grss written premium basis using frms PMD 263, PMD 286, PMD 287 and PMD 288. Please nte that the 2015 December (18) return due n 1 st August 2016 will be required t be submitted in the stamp grss premium frmat using frms PMD 163, PMD 186, PMD 187 and PMD 188.

10 10 These instructins have been updated t nly describe the frmat f data required fr grss written premium reprting.

11 11 2 General instructins 2.1 PMDRs required Fr each return year, managing agents are required t submit a PMDR fr each syndicate fr each mnth frm the mnth in which it first participates in the market. Fr syndicates participating fr the whle f a return year, twelve mnthly PMDRs are required fr January Nvember, and fr December. The latter PMDR, as at the mnth 12 develpment pint, is knwn as the December (12) PMDR. In additin t the mnthly PMDRs, managing agents are als required t submit an additinal PMDR fr each return year as at the mnth 18 develpment pint (the December (18) PMDR). The purpse f this extra PMDR is t allw reprting f: risks that were recrded t late fr reprting in the December (12) PMDR fr the return year any changes that might have been made since the December (12) PMDR t risks written during the return year e.g. replacement f temprary UMRs with actual UMRs mre accurate and up-t-date infrmatin n the business written by managing agents twards the end f the return year, and updated Grss Written Premium values: since: in facility recrds fr binding authrity and lineslip cntracts, and in recrds fr quta and surplus share arrangements at the mnth 18 develpment pint the Grss Written Premium already written t mnth 18 is a knwn amunt, and if there remains a perid fr which an estimate f the premium still t be written needs t be prvided, it is six mnths shrter than previusly. 2.2 Reprting timetable The electrnic versin f the PMDR is required t be submitted* by the managing agent t Llyd s via the CMR website befre nn n the 15th f each mnth (r befre nn n the next wrking day when the 15th falls n a weekend r public hliday). The first PMDR fr return year yyyy is due t be submitted befre nn n 15 February yyyy (the January PMDR) and subsequent mnthly PMDRs befre nn n the 15th f every mnth thereafter until 15 January yyyy+1 f the fllwing year (the December (12) PMDR). The December (18) PMDR fr yyyy is due t be submitted befre nn n 31 July yyyy+1 (r befre nn n the next wrking day if this falls n a weekend r public hliday). Nte that therefre tw PMDR are submitted in July, ne being the June PMDR fr the current year due befre nn n 15 July and the ther being the December (18) PMDR fr the previus year due befre nn n 31 July. * A PMDR is classified as submitted nce it has been upladed t the CMR website, has successfully passed the validatin tests, and has been signed ff and submitted by the managing agent. 2.3 Late submissin f the PMDR It is a requirement f the Cuncil f Llyd s that PMDRs are crrectly cmpleted and submitted n time i.e. befre nn n the due date. Failure t submit the PMDR n time is cnsidered a breach f paragraph 39 f the Underwriting Byelaw as amended. Llyd s will fllw up with the managing agent cncerned any failure t meet this requirement. Managing agents are subject t administrative enfrcement actin and may be fined in accrdance with the cnslidated fining plicy fr Llyd s returns issued by the Market Supervisin and Review Cmmittee. If managing agents believe that they may nt be able t submit a PMDR n time they shuld cntact Llyd s in advance f the deadline t discuss the matter.

12 12 Managing agents shuld als nte that Llyd s treats inaccurate PMDRs very seriusly and accrdingly an agent must tell Llyd s frthwith if it becmes aware f an errr r inaccuracy in a PMDR. Failure t fllw the data reprting requirements defined in these Instructins may als result in administrative enfrcement actin and/r fines. 2.4 PMDR creatin and initial submissin prcess The PMDR is submitted via the CMR website. The Cntrl frm within CMR cllects/cnfirms basic infrmatin regarding the syndicate, including the syndicate number and managing agent. The frm als acts as the cntrl pint fr perfrming actins when submitting the PMDR. The PMDR frms in CMR are ppulated nly via uplad f CSV files in ANSI frmat. Manual editing f data is nt available. The data templates detailing the required frmat fr the return file header and the CSV file fr each frm are published in the PMD Return Specificatins Create a CSV file fr each PMDR frm. Each CSV file must have a return file header as the first recrd in the file. This helps Llyd s identify the key details regarding the frm. An example f the return file header fr frm 263 is shwn belw. Zip the fur CSV files t create the PMDR and then uplad the zipped file via the CMR website. It is pssible t attach supprting dcuments and cmments in frm 990. This frm is editable and the user is able t save and delete attachments and cmments. It is accessed separately thrugh the CMR website rather than upladed as a CSV file, which is the methd that is currently used fr ther Llyd's returns. 2.5 PMDR validatin The validatin checks that are perfrmed are published in the PMD Return Specificatins PMDR validatin is initially perfrmed t check that the reference data is crrect. If a reference data errr is encuntered in a recrd, then the remaining validatin fr that recrd is incmplete until the reference data is crrected. The recnciliatin checks between frm 263 and frms 286 and 287 are the final validatin checks. They are nt perfrmed until all the reference data in the PMDR is crrect Offline validatin An ffline validatr is available which allws managing agents t perfrm initial validatin prir t submissin f the PMDR. The ffline validatr can be dwnladed frm the PMD Hmepage f the CMR website. T ensure that the latest reference data is being used, always dwnlad the latest versin f the ffline validatr befre using it.

13 13 The CSV files must be submitted individually t the ffline validatr. Sme validatin tests are unable t be perfrmed by the ffline validatr. A clumn in the validatin specificatins in sheets 263 CMR Validatins yyyy Vn.n and CMR Vldtns yyyy Vn.n in the PMD Return Specificatins indicates thse that are able t be perfrmed and thse that are nt. A validatin reprt is made available fr dwnlad and printing Online validatin All validatin tests are perfrmed by the nline validatr. The nline validatin prcess is as fllws. Once the zipped PMDR file cntaining the fur CSV files has been upladed it is placed in a queue fr validatin and given a status f pending. The PMDR status remains as pending while the validatin checks are being perfrmed as the validatin takes place 'ffline'. This shuld nt take lnger than ten minutes. If a PMDR has pending status fr lnger than ten minutes, please cntact the ITG CMR Help Line. When the validatin checks have been perfrmed the user receives ntificatin via stating whether the validatin has succeeded r failed. A validatin reprt is made available fr dwnlad and printing. 2.6 PMDR final submissin prcess The final submissin prcess is as fllws. If errrs have been reprted, crrect the errrs and resubmit the PMDR. If warnings have been given, check that the recrds t which the warnings refer are crrect. If nt, crrect the errrs and resubmit the PMDR. When all errrs have been eliminated and the warnings are acceptable, cnfirm that the warnings have been reviewed, then lck, sign ff and submit the PMDR. 2.7 PMDR resubmissin If a syndicate r Llyd s detects significant errrs in the data included in a PMDR, the syndicate may chse r be required t resubmit the latest PMDR. During year yyyy, the latest PMDR wuld be the PMDR fr the latest mnth mm i.e. fr yyyymm. In the fllwing year yyyy+1, the latest PMDR fr year yyyy wuld be the yyyy12 PMDR until August, when the latest PMDR fr yyyy wuld becme the yyyy18 PMDR. If a syndicate initiates a resubmissin, the syndicate shuld infrm Llyd s f the reasns fr the resubmissin. 2.8 PMDR feedback Several feedback reprts are prvided within CMR. These are: 263 Premium Vlume Summary 289a Return Ttals Summary, and 289b Premium Summary. T view these reprts fr a return, select View. T dwnlad them, select Print Return. The fllwing are als available fr dwnlading: Cver Page 010 Cntrl Page 990 Syndicate Cmments, and Sign Off.

14 Frequently asked questins The PMDR must be prepared in accrdance with the latest versin f these instructins. In additin t the instructins, Llyd s has prvided a Frequently Asked Questins dcument which is published n the PMD Hmepage f the CMR website and can be dwnladed frm there Key cntacts Perfrmance Management Data Return Team Any queries regarding the cmpletin f the PMDR frms (excluding IT issues) shuld be directed t the PMDR Team at: Llyds_PMDR@llyds.cm PMDR Help Line: Key cntacts Llyd s Infrmatin Technlgy Grup Any queries regarding IT issues, including the uplad f data files via the CMR website, shuld be directed t the Infrmatin Technlgy Grup at: ITGApplicatinSupprt2@llyds.cm ITG CMR Help Line: Key cntacts Llyd s Market Returns Any queries regarding access t the Market Returns website shuld be directed t the Market Returns Helpdesk at: Llyds-Market-Services-Market-Returns@llyds.cm Market Returns Helpdesk:

15 15 3 Basis f preparatin 3.1 Data required Data is required t be reprted at risk level, where a risk is defined as a material cmbinatin f the fields: Syndicate Class f Business Risk Cde Risk Expsure Lcatin Cde Original Currency Dmicile f the Insured Cverhlder PIN Service Cmpany Indicatr within a plicy/cntract. S the risk-identifying fields are a unique cmbinatin f the fllwing: Expiring UMR (fr renewed and nt renewed risks) Expiring Syndicate Risk ID (fr renewed and nt renewed risks) Current UMR (fr new and renewed risks) Current Syndicate Risk ID (fr new and renewed risks) Syndicate Class f Business Risk Cde Risk Expsure Lcatin Original Currency Dmicile f the Insured Cverhlder PIN Service Cmpany Indicatr The data required t be reprted fr each risk is detailed in sectin 4 f these instructins. Infrmatin n hw t access the reference data required t cmplete the PMDR is prvided in sectin 5 f these instructins. Details f methds f reprting when there is a change n renewal f ne r mre f the risk-identifying fields are prvided in sectin 6 f these instructins. Details f the requirements fr reprting binding authrity and lineslip cntracts are prvided in sectin 7 f these instructins. Sectins 8 t 15 cntain a number f supprting examples which explain the principles t be fllwed when preparing the PMDR. 3.2 Reprting perid The PMDR frms fr return year yyyy must be cmpleted n the fllwing basis. Frms 263, 286 and 287 must be prepared n a cumulative basis fr all new and renewed (re)insurance cntracts which incept between 1 January yyyy and 31 December yyyy inclusive. Frm 288 must be cmpleted n a cumulative basis fr all (re)insurance cntracts which expired r were due t be renewed between 1 January yyyy and 31 December yyyy inclusive and are knwn nt t have been renewed. Outstanding risks, i.e. cntracts which have expired r are due fr renewal, but at the time f submitting the PMDR it is nt yet knwn whether r nt the cntract will be renewed, are nt t be reprted n this frm. 3.3 Separate PMDRs fr each syndicate A separate PMDR must be prepared fr each Llyd s syndicate. Managing agents that manage mre than ne syndicate are nt t cmbine data frm mre than ne syndicate int a single PMDR.

16 Merged syndicates When ne syndicate (A) merges with anther syndicate (B), reprt in the PMDR fr syndicate B: risks that are new r renewing in syndicate B that may previusly have been written via syndicate A, and syndicate A nt renewed risks that have a syndicate class f business that was included in the SBF fr syndicate B fr the year f inceptin f the syndicate A nt renewed risk. It is nt pssible t reprt in the PMDR fr syndicate B syndicate A nt renewed risks that have a syndicate class f business that was nt included in the SBF fr syndicate B fr the year f inceptin f the syndicate A nt renewed risk. These risks will be reprted as having expired but neither renewed nr nt renewed but can be ignred in the reprt. 3.5 Special purpse syndicates T allw cmparisn f the figures, treatment f special purpse syndicate premiums is t be cnsistent with the apprach taken in the plan set ut in the apprved SBF fr the return year. 3.6 Classificatin f risks as either new r renewed If there are substantial changes t the cverage prvided by a (re)insurance plicy upn renewal then it may be debatable whether the risk is truly renewed (and therefre reprted n frm 287) r whether it is effectively a new risk (and therefre reprted n frm 286). Llyd s believes that managing agents have a better understanding f changes in the risk prfile and are best placed t make this decisin. 3.7 Syndicate premiums based n written and signed lines As data is cllected n a cumulative basis, managing agents must update the syndicate premiums written t reflect any changes nce the signed lines have been reprted. Reprt this updated infrmatin t Llyd s in the next PMDR submitted fr the syndicate. The PMDRs are used as a tl t mnitr the plan set ut in the syndicate s apprved SBF fr the return year and failure t update syndicate premiums fr significant signing-dwns may result in a syndicate appearing t have written mre premium than planned. 3.8 Other premium adjustments Managing agents must update the 100% premium amunts fr any individual risk fr which amendments t the risk (e.g. due t adjustment premiums, changes in expsures r changes t the perils cvered) during the term f the plicy result in material adjustments t the 100% premium (i.e. additinal premium r return premium). Recrd these updates n a cumulative basis and reprt them t Llyd s in the next PMDR submitted fr the syndicate. Once the plicy has expired, there is n requirement t re-calculate the 100% premium fr things such as n claims bnuses that may be applied after the plicy has expired. On expiry, reprt the expiring 100% premium as the adjusted value f the 100% premium n the expiry date. When there is a material adjustment t premium amunts [due t an errr n the part f the managing agent], the managing agent shuld cntact the PMDR team. Depending n the magnitude f the change, the managing agent may be asked t resubmit the relevant PMDR. Fllwing the December returns any ther premium changes such as revisins f EPIs, extensins and cancellatins shuld be reflected in the 18 mnth return.

17 Outstanding premiums As the PMDR frms are prepared n a cumulative basis, there is n need t include (re)insurance cntracts which are utstanding (i.e. due fr renewal but at the time f submitting the PMDR it is nt knwn whether r nt the cntract will be renewed). Reprt such cntracts in the next PMDR submitted fr the syndicate when they are knwn t have been renewed r t have expired Early reprting f risks that have nt yet incepted, renewed r expired D nt reprt risks which have been underwritten but have nt yet incepted. Fr example, if a risk is underwritten n 15 January 2011 but des nt incept until 01 February 2011, the risk is nt t be reprted in the January 2011 PMDR due in February The risk is t be reprted t Llyd s fr the first time in the February 2011 PMDR due in March Similarly, d nt reprt risks befre their expiry date i.e. when it is knwn in advance that the risks will renew/expire but they have nt yet dne s Risks nt included in the PMDR fr the mnth f their inceptin date When risks are recrded t late fr reprting in the PMDR fr the mnth f their inceptin date, there is n need t re-submit that PMDR. Simply reprt the risks in the next PMDR submitted fr the syndicate. Reprt risks that are recrded t late fr reprting in the December (12) PMDR in the December (18) PMDR Cancellatins Reprt cancellatins as fllws: if a plicy is cancelled ab initi, remve the recrd f it frm the next PMDR submitted fr the syndicate, but if a plicy is cancelled mid-term: reprt the plicy in the next PMDR submitted fr the syndicate as it was initially reprted i.e. as new r renewed, but: with a revised expiry date (equal t the first day n which, fr part r all f the day, cver was n lnger prvided), and revised Grss Written Premium amunts and in additin, unless the risk has renewed, reprt the plicy in the next PMDR submitted fr the syndicate as nt renewed, with the same revised expiry date Central settlement numbers (CSN) Characters 2-5 f valid UMRs cntain the CSN f the placing brker. The list f CSNs that is used fr validating these characters is updated when new CSNs are allcated r existing CSNs are retired. The current list is always available in the PMD Return Specificatins. Changes t the list f CSNs that ccur during any calendar mnth are included in an updated versin f the PMD Return Specificatins that is published in the first week f the fllwing calendar mnth. Managing agents that have implemented this list in their wn systems shuld check each mnth fr updates t the list befre starting wrk t prduce their PMDR(s) Unique market references (UMR) UMR prvisin rules The rules fr the prvisin f UMRs are:

18 18 UMRs are created by brkers, but this culd be a managing agent in the rle f brker a UMR must be prvided n every slip in the frmat: "B" fllwed by the 4-digit CSN f the placing brker and then frm 1 t 12 characters frm the set A-Z and 0-9 (ttal length 6-17 characters) UMRs must be unique fr each plicy (this needs t be ensured by the supplying brker) The UMR f a renewed risk must differ frm the UMR f the expiring risk, except n the re-signing f a multi-year risk.

19 PMDR UMR requirements If the inceptin date ccurs in 2010 r later, a valid current UMR fr new and renewed risks and a valid expiring UMR fr nt renewed risks must be reprted fr the fllwing cmbinatins f Distributin Channel, Service Cmpany Indicatr, Methd f Placement and Single Risk Flag: Distributin Service Cmpany Channel Indicatr Methd f Placement Single Risk Flag UMR Required LNDN ASC BNDR Y Optinal LNDN ASC LNSL Y Optinal LNDN ASC OPDR Y Optinal LNDN ASC OPRI Y Optinal ASIA ASC BNDR Y Optinal ASIA ASC LNSL Y Optinal ASIA ASC OPDR Y Optinal ASIA ASC OPRI Y Optinal DUB ASC BNDR Y Optinal DUB ASC LNSL Y Optinal DUB ASC OPDR Y Optinal DUB ASC OPRI Y Optinal LNDN NSC BNDR Y Yes LNDN NSC LNSL Y Yes LNDN NSC OPDR Y Yes LNDN NSC OPRI Y Yes CHN NSC LNSL Y Yes CHN NSC OPRI Y Yes CHND NSC LNSL Y Yes CHND NSC OPDR Y Yes JPN NSC BNDR Y Yes JPN NSC LNSL Y Yes JPN NSC OPDR Y Yes JPN NSC OPRI Y Yes LNDN ASC BNDR N Optinal LNDN ASC LNSL N Optinal LNDN ASC OPDR N Optinal LNDN ASC OPRI N Optinal ASIA ASC BNDR N Optinal ASIA ASC LNSL N Optinal ASIA ASC OPRI N Optinal DUB ASC BNDR N Optinal DUB ASC LNSL N Optinal DUB ASC OPDR N Optinal DUB ASC OPRI N Optinal LNDN NSC BNDR N Yes LNDN NSC LNSL N Yes LNDN NSC OPDR N Yes LNDN NSC OPRI N Yes CHN NSC LNSL N Yes CHN NSC OPRI N Yes CHND NSC LNSL N Yes JPN NSC BNDR N Yes JPN NSC LNSL N Yes JPN NSC OPRI N Yes Fr insurance plicies that are nt registered with Xchanging and hence have n UMR, fr example sme persnal lines business:

20 20 when a UMR is required, generate a UMR using the managing agent s wn CSN when n UMR is required, generate a UMR using the managing agent s wn CSN if pssible, r set the reprted UMR t N/A. China Direct and China Reinsurance risks must have a UMR starting with B1818. UMRs starting with B1818 must nt be used fr risks having ther distributin channels. Japan risks must have a UMR starting with B0388. UMRs starting with B0388 must nt be used fr risks having ther distributin channels. When reprted separately, each declaratin under a binding authrity r lineslip cntract must be linked t its crrespnding facility recrd. T achieve this, set the reprted current UMR f each declaratin t the reprted current UMR f the facility recrd fr the binding authrity r lineslip cntract. Fr aggregated pen market direct risks and aggregated pen market reinsurance risks placed in Lndn, the reprted UMR may be set t N/A UMR nt yet knwn In PMDRs, when a UMR has nt been prvided n a slip by the brker when ne ught t have been, set the reprted UMR t a string beginning with BnnnnTBA, where nnnn is the CSN f the placing brker. It is acceptable t add ther characters after BnnnnTBA t distinguish ne missing UMR frm anther. Hwever, it is nt acceptable when a managing agent s wn CSN is being used t generate a UMR, t reprt the managing agent s CSN plus "TBA". Generated UMRs cntaining a managing agent s wn CSN must nt be temprary. Nte that the December (18) PMDR is nt t include any BnnnnTBA UMRs Distributin channel and syndicate class f business cmbinatins Fr risks incepting r renewing n r after 1 January 2012, it is nt invalid t reprt risks fr a distributin channel and syndicate class f business cmbinatin that has nt been included in the SBF apprved fr the syndicate fr the return year Invalid distributin channel and methd f placement cmbinatins The table in sectin cntains all f the valid cmbinatins f Distributin Channel, Service Cmpany Indicatr, Methd f Placement and Single Risk flag. If yu believe there is a valid scenari missing frm the table, please cntact the PMDR helpline Methd f placement Risks written by agent service cmpanies The Llyd s definitin f a service cmpany is the same as that given in the instructins fr the Syndicate Business Frecast return. A service cmpany is a cmpany within the same grup as, r wned by, a Llyd s managing agent t which the managing agent delegates authrity t enter int cntracts f insurance r t issue insurance dcuments as evidence f cntracts f insurance. Fr business written thrugh a managing agent's service cmpany, reprt the methd f placement f the risks written by the agent service cmpany, nt the methd f placement f the cntract between the managing agent and the agent service cmpany (typically a binding authrity cntract). Fr example, if the risks are written by an agent service cmpany as pen market risks then they shuld be reprted with the methd f placement equal t pen market direct r pen market reinsurance Risks written in Asia, China and Japan Fr business written thrugh a managing agent's peratins in Asia, China r Japan, reprt the methd f placement f the risks written by thse peratins.

21 Risk cdes Risk cde validity All risk cdes specified must be valid fr the return year. A list f valid risk cdes by return year is available in the reference data. Llyd s validatin prcedures reject any risks with a retired risk cde Relatin t risk expsure lcatin and methd f placement Sme risk cdes imply either a specific risk expsure lcatin fr the risk and/r a specific methd f placement. Llyd s checks the data fr incnsistencies in risk cde, risk expsure lcatin and methd f placement fr risk cdes when this is clear cut. T enable this, if the regin grup f a risk expsure lcatin is equal t Eurpe, it has been further defined as being either an EU Member r an EEA Member, r neither (see sheet Risk Expsure Lcatins Vn.n in the PMD Return Specificatins) Prperty risk cdes Fr prperty risks placed by a third party Cverhlder, reprt risk cdes in the range B2 - B5. Fr prperty risks written in the pen market, reprt risk cdes in the range P2 P Risk cdes fr prperty risks written by agent service cmpanies If an agent service cmpany has been given authrity t write prperty by sub-delegating t a third party Cverhlder, reprt these risks with: the methd f placement equal t binder and a risk cde in the range B2 B5. If an agent service cmpany has been given authrity t write pen market prperty risks, reprt these risks with: the methd f placement equal t pen market direct and a risk cde in the range P2 P7. If an agent service cmpany has been given authrity t write pen market prperty risks and als t write prperty by sub-delegating t a third party Cverhlder, reprt the risks as described abve accrding t the methd by which the risks have been written Incrrect risk cde n the slip When a risk cde n the slip is incrrect and it is nt pssible t crrect it, Llyd s preference is fr the crrect risk cde t be reprted in the PMDR rather than the incrrect risk cde that is n the slip Expiry dates The expiry date reprted fr new and renewed risks must be the date n which the risk wuld incept if it were t renew. It is particularly imprtant t reprt the crrect date fr risks that expire and renew r d nt renew n 31 December r 1 January. Fr every risk that has been reprted t Llyd s as new r renewed, managing agents must advise Llyd s in the PMDR fr the mnth f its expiry date (i.e. in the PMDR fr the mnth in which it expires), whether it has renewed r nt renewed. Fr new and renewed risks that have been reprted as having an expiry date f yyyy-12-31, Llyd s expects t see either a renewal with an inceptin date f yyyy r a nt renewed recrd fr the risk in the December yyyy PMDR. Hwever, fr risks that have been reprted as having an expiry date f yyyy , Llyd s expects t see fr the risk in the January yyyy+1 PMDR either a renewed recrd with an inceptin date f yyyy (r later) r a nt renewed recrd with an expiry date f yyyy It is incrrect t reprt in the January yyyy+1 PMDR as renewed risks with an inceptin date f yyyy , risks that have been reprted with an expiry date f yyyy in the December yyyy PMDR. The same principles apply t all risks, but reprting f an incrrect expiry date has significant negative implicatins when the incrrect expiry date is 31 December.

22 22 Managing agents that reprt in the December yyyy PMDR risks that renewed/did nt renew n yyyy , with an expiry date f yyyy-12-31, will be required t resubmit the December yyyy PMDR Nn-psitive 100% Grss Written Premium Change fields ( ) Fr renewed risks, when the current and/r the expiring 100% Grss Written Premium is <= 0, all the change fields (fields ) must be set t N/C as it nt pssible t make sense f change data in these circumstances Current 100% benchmark price (230) Fr new and renewed risks, when the current 100% Grss Written Premium is <= 0, the current 100% benchmark price must be set t N/C as it is nt pssible t make sense f a benchmark price in these circumstances Changes t plicy structure r changes in premium denminatin upn renewal Cnsider the fllwing scenaris: a single (re)insurance plicy cntains several sectins and, upn renewal, sme f the sectins are renewed whilst thers expire a single (re)insurance plicy riginally cntains tw sectins and, upn renewal, the plicy is restructured s that there is nly ne sectin a (re)insurance plicy is riginally denminated in ne currency (e.g. Japanese Yen) but upn renewal is denminated in a different currency (e.g. United States Dllars) a (re)insurance plicy is denminated in several different currencies but renews t anther currency. All these scenaris describe situatins in which there is a change n renewal f ne r mre f the fllwing risk-identifying fields: syndicate class f business risk cde risk expsure lcatin, and riginal currency. When ne r mre f these risk-identifying fields changes n renewal, the fllwing three requirements need t be met: all expiring premium must be shwn the change fields (fields ) are t be reprted if pssible, and all risks previusly reprted as new r renewed that are renewing r expiring must be reprted as renewed r nt renewed. The methds that may be used depend n whether the change f identifying field value(s) seems mre like a renewal r mre like a nn-renewal and a new risk, and whether: ne identifying field value is renewing t anther identifying field value e.g. risk expsure lcatin cde QN is changing t QU n renewal ne identifying field value is renewing t tw r mre identifying field values and if s, whether r nt the riginal value is being renewed e.g. ne risk with syndicate class f business cde COB01 is renewing t tw risks with syndicate class f business cdes COB01 and COB15 r ne risk with syndicate class f business cde COB01 is renewing t tw risks with syndicate class f business cdes COB12 and COB15, r tw r mre identifying field values are renewing t ne identifying field value and if s, whether r nt the remaining value is ne f the riginal values e.g. tw risks with riginal currency cdes GBP and USD

23 23 are renewing t ne risk with riginal currency cde GBP r tw risks with riginal currency cdes GBP and USD are renewing t ne risk with riginal currency cde AUD. The managing agent must decide which f the pssible methds t use fr PMDR reprting purpses when any f the risk-identifying fields changes n renewal. A detailed descriptin f the pssible methds is given in sectin 6 f these instructins Change at renewal f nn-risk-identifying fields When any f the nn-risk-identifying fields e.g. methd f placement, distributin channel, changes at renewal, the renewal can be treated as a nrmal renewal. It is nly when any f the risk-identifying fields changes at renewal that special actin might need t be taken Level f granularity t aggregate r nt t aggregate This subsectin describes the level f granularity t be used by managing agents t prvide PMDRs. If a managing agent believes they are currently unable t prvide data accrding t these instructins they must cntact the Llyd s PMDR team Agent service cmpanies and binding authrity and lineslip cntracts Plicies written thrugh agent service cmpanies and binding authrity and lineslip cntracts can generate a large number f risks with relatively small premiums. Llyd s recgnises that reprting each individual risk written in these ways may be a significant reprting burden fr managing agents. In rder t reduce the reprting burden and als the vlumes f data being handled by Llyd s, managing agents may chse t aggregate plicies written in these ways as fllws. Agent service cmpanies Fr each agent service cmpany perated by a managing agent, the managing agent may chse: t aggregate the pen market data and reprt a separate recrd fr each material syndicate class f business, risk cde, risk expsure lcatin and riginal currency written thrugh the agent service cmpany (with single risk flag set t N ) r t reprt individually each pen market risk written thrugh the agent service cmpany (with single risk flag set t Y ). Agent Service Cmpany sub-delegated binding authrity cntracts and lineslip cntracts must be reprted as specified in the next subsectin. Binding authrity and lineslip cntracts Fr each binding authrity r lineslip cntract written, managing agents must reprt a separate facility recrd fr each material cmbinatin f syndicate class f business, risk cde, risk expsure lcatin and riginal currency written under the binding authrity r lineslip cntract (with single risk flag set t N ). When declaratins are nt reprted individually, reprt at inceptin in the facility recrd fr each new r renewed binding authrity r lineslip cntract, an estimate f the premium that the cntract will generate ver the plicy perid, i.e. include in the Grss Written Premium: the sum f any premium already written, and an estimate f the premium still t be written under the cntract; update this estimate in future PMDRs if it changes. In additin, managing agents may chse t reprt individually each declaratin written under a binding authrity r lineslip cntract (with single risk flag set t Y ). If this chice is made, reprt at inceptin in the facility recrd fr each new r renewed binding authrity r lineslip cntract, an estimate f the premium still t be written under the cntract. Update the premium reprted in the

24 24 facility recrd each mnth, t reduce it by the amunt f premium newly reprted in declaratin recrds. Llyd s wuld prefer managing agents t reprt each declaratin separately if the binding authrity r lineslip cntract represents a significant surce f business in terms f incme r class. Further details f the requirements fr reprting binding authrity and lineslip cntracts are given in sectin 7 f these instructins. Examples f reprting risks written under a binding authrity r lineslip cntract are given in sectin 8 f these instructins Prprtinal treaty (quta and surplus share) arrangements Reprt quta share and surplus share arrangements at the aggregated level rather than as the individual risks that are attached under the reinsurance arrangement (with single risk flag set t N ). Reprt an estimate f the premium that each new r renewed quta share r surplus share arrangement will generate ver the plicy perid at inceptin fr PMDR purpses, i.e. include in the Grss Written Premium: the sum f the premium already written, and an estimate f the premium still t be written under the arrangement; update this estimate in future PMDRs if it changes. Reprting f these arrangements is similar t the reprting f facility recrds fr binding authrity and lineslip cntracts when declaratins are nt reprted individually. Details f the requirements fr reprting binding authrity and lineslip cntracts are given in sectin 7 f these instructins. Examples f reprting risks written under a binding authrity r lineslip cntract are given in sectin 8 f these instructins Persnal mtr and life risks Managing agents writing pen market persnal mtr and life insurance can ften generate a large number f risks with relatively small premium amunts. In rder t reduce the amunt f data prcessing perfrmed by Llyd s and the reprting burden n managing agents, Llyd s wuld strngly prefer that managing agents aggregate: pen market persnal mtr risks (categrised as risk cdes M2, M4, M5, MF, MG, MH and MI) int the material syndicate class f business, risk cde, risk expsure lcatin cde and riginal currency cde cmbinatins, and pen market life risks (categrised as risk cde TL) int the material syndicate class f business, risk expsure lcatin cde and riginal currency cde cmbinatins, fr each inceptin date befre inclusin in the PMDR (with single risk flag set t N ) Package plicies Fr package plicies placed in the pen market a separate data recrd must be reprted fr each material sectin cntained within the package (with single risk flag set t Y ). If a managing agent judges that a sectin is immaterial, reprt the premium fr that sectin under the dminant sectin within the package. Package plicies are typically written in Energy, Liability, Marine and Aviatin lines f business. An example f an Energy package plicy is given in sectin 9 f these instructins Business written by a managing agent s Asia, China, Dubai r Japan peratin Asia In rder t imprve the level f detail f infrmatin available, managing agents must reprt Asia risks individually and allcate premiums t them accrdingly (with single risk flag set t Y ). Individual pen market risks written thrugh a managing agent's Asia peratin must nt be aggregated. China, Japan and Dubai Individual pen market direct risks written thrugh a managing agent's China, Japan r Dubai peratin must nt be aggregated in the PMDR.

25 Single risk flag Set the single risk flag t Y fr a recrd fr: an pen market direct risk a binding authrity cntract declaratin a lineslip cntract declaratin a facultative reinsurance risk an excess f lss reinsurance f a single risk a material sectin cntained within a package plicy an utwards prfit cmmissin recrd fr a single risk, and an inwards reinstatement premium recrd fr a single risk. Set the single risk flag t N fr a recrd fr: aggregated pen market risks written thrugh an agent service cmpany aggregated pen market persnal mtr and life risks a binding authrity cntract facility a lineslip cntract facility a prprtinal treaty (quta share r surplus share) arrangement an excess f lss reinsurance f a certain type f business a stp lss reinsurance an utwards prfit cmmissin recrd fr multiple risks, and an inwards reinstatement premium recrd fr multiple risks Apprtinment f Grss Written Premium Splitting the data reprted by any f the risk-identifying fields is ptinal. Hwever, when the data is split by any f the risk-identifying fields, Llyd s expects the premium data t be split in a specific manner. Examples f hw t apprtin Grss Written Premium are given in sectin 10 f these instructins 3.25 Reprting currencies and exchange rates Frm 263 This frm is designed fr reprting the premium incme in the return year at the whle accunt level as recgnised under UK GAAP. Aggregate all premiums and reprt them in either United States Dllars (USD) r Great Britain Punds (GBP) accrding t the fllwing rules: GBP: Reprt in GBP premiums written by the managing agent in GBP USD: Reprt in USD premiums written by the managing agent in USD Other: Cnvert premiums written by the managing agent in currencies ther than GBP and USD t GBP and reprt them in the GBP ttal. In additin t the GBP and USD recrds, there is t be a third recrd n frm 263 where all premiums are cnverted t GBP befre being aggregated. Identify this recrd by reprting CNV in the currency cde field Frms 286, 287 and 288 These frms are designed fr reprting underwriting infrmatin and are nt t reflect the accunting treatment f premiums. Reprt all premiums in either USD r GBP amunts accrding t the fllwing rules: GBP: Reprt in GBP premiums riginally written in GBP USD: Reprt in USD premiums riginally written in USD Other: Cnvert premiums riginally written in currencies ther than GBP and USD t GBP befre reprting them. D nt cmplete frms 286, 287 and 288 in CNV.

26 Exchange rate regime The PMDR rates f exchange t be used fr cnverting nn-gbp nn-usd currencies t GBP fr any given return year are published in the PMD Return Specificatins. They are the same as thse used t prepare the final prpsed SBFs fr that return year, but if in dubt, use the rates published in the PMD Return Specificatins. Fr example, a PMDR submitted in January 2011 fr the 2010 return year is t use the published PMDR 2010 exchange rates while a PMDR submitted in February 2011 relating t the 2011 return year is t use the published PMDR 2011 exchange rates. Nte als that since the December (18) PMDR relates t transactins frm the previus return year, the December (18) PMDR is t use the published PMDR exchange rates fr that year. Fr example, the PMDR submitted n 15 July 2011 is t use the published PMDR 2011 exchange rates while the PMDR submitted n 31 July 2011 relating t 2010 transactins is t use the published PMDR 2010 exchange rates. The PMDR rates f exchange include cnversin factrs fr mst f the majr nn USD currencies that are t be reprted in GBP within PMDR (e.g. EUR, CAD, AUD ) and the GBP amunts reprted fr these currencies shuld be calculated using the published rates. Where a managing agent needs t cnvert a currency that is nt included in the published rates, they shuld reprt GBP amunts based n their wn internal rates f exchange. Use the published PMDR exchange rates t cnvert premiums t GBP thrughut the return year, irrespective f fluctuatin in the actual rates f exchange ver time. It is recgnised that the actual rates f exchange may vary significantly ver the return year, but prescribing a fixed exchange rate makes the data easily cmparable mnth n mnth. Since the riginal currency is included in PMDR Llyd s is able t rebase the premiums in ur analysis t ensure PMDR and the SBF can be analysed using the same rates. An example f the applicatin f these rules is given in sectin 11 f these instructins Premium denminated in several different currencies When a (re)insurance plicy is denminated in several different currencies e.g. Japanese Yen, Hng Kng Dllars and United States Dllars, Llyd s expects managing agents t reprt separate recrds fr each material currency and t cnvert all premium amunts in nn-material currencies t the dminant currency using the specified rates f exchange fr the return year. Examples f hw t apprtin Grss Written Premium are given in sectin 10 f these instructins and sectin 11 f these instructins cntains an example which explains hw t reprt premium incme in frms 286, 287 and Gap-in-cver plicies Gap-in-cver plicies are defined as plicies which are cvered fr a certain perid defined by the inceptin and expiry dates (usually shrt-term plicies) and then renewed after a lapse perid. The way that managing agents are t reprt renewals f gap-in-cver plicies in PMDRs reprt the inceptin and expiry dates that define the plicy perid reprt full premium amunts fr the plicy perid reprt the plicy initially as new business r a renewal in its inceptin mnth and then after the plicy has expired in the fllwing returns reprt the plicy as nt renewed when the plicy is t be renewed (after the gap-in-cver perid), reprt this in the return as renewed. This will then enable the plicy t be linked t the previus plicy Multi-year plicies Multi-year plicies are defined as plicies fr which the plicy perid (defined by the inceptin and expiry dates) exceeds 18 mnths. The way that managing agents are t reprt multi-year plicies in PMDRs depends n whether there is an ptin t re-sign the (re)insurance cntract during the multi-year term.

27 27 If there is n ptin t re-sign the plicy n a regular basis, then: reprt the inceptin and expiry dates that define the full multi-year perid reprt the full premium amunts fr the entire multi-year term defined by the inceptin and expiry dates, and reprt the plicy initially as new business r a renewal in the return year crrespnding t its inceptin year and nt again until the return year crrespnding t its expiry year at the end f the full perid when it renews n r after the expiry date (reprt as a renewal) r expires n the expiry date (reprt as nt renewed). If there is an ptin t re-sign the plicy n a regular basis, Llyd s preference is that the managing agent reprts the plicy as abve, but if an accurate Grss Written Premium can be reprted nly fr a shrter perid e.g. the perid up t the next re-signing, it is acceptable t reprt a part-term plicy as fllws: reprt the re-signing date as the inceptin date and the date f the next re-signing as the expiry date reprt the premium amunts nly fr the perid specified by the reprted inceptin and expiry dates, and reprt the plicy again as a renewal at the date f the next re-signing. It is essential t ensure that the premium amunts reprted fr the plicy are cnsistent with the perid defined by the reprted plicy inceptin and expiry dates. If the expiry date that is reprted fr a five-year re-signing plicy is five years frm the inceptin date, reprt the ttal premium amunts fr the full five years. If the expiry date that is reprted fr a five-year re-signing plicy is the plicy s next re-signing date, reprt the premium amunts received ver the perid defined by the reprted inceptin and expiry dates. The fllwing principles apply as fllws t multi-year plicies that incepted prir t If the managing agent des nt have the ptin t re-sign the plicy, r des have the ptin but is able t reprt the premium amunts fr the full perid, d nt reprt the plicy in a PMDR until the end f the full perid when it renews n r after the expiry date r expires n the expiry date. If the managing agent des have the ptin t re-sign the plicy and is nt able t reprt the premium amunts fr the full perid, reprt the plicy in the PMDR fllwing the date f re-signing. A detailed example f hw t reprt multi-year plicies is given in sectin 12 f these instructins Outwards prfit cmmissins Reprt utwards prfit cmmissins as fllws. Managing agents may estimate prfit cmmissins when the plicy is written. The Grss Written Premium supplied in the PMDR frms wuld therefre include an allwance fr estimated prfit cmmissins. When a managing agent is unable t estimate prfit cmmissins at the utset, r when their estimate is materially incrrect and needs t be amended, the managing agent is t make the relevant adjustment t the Grss Written Premium f each individual risk fr which prfit cmmissins are paid. The managing agent must als ensure that the pure rate change calculated by Llyd's is crrect. Alternatively, the managing agent may reprt ne r mre separate risk recrds t make an adjustment fr utwards prfit cmmissins at the syndicate class f business, risk cde, risk expsure lcatin cde and riginal currency cde level. In these cases, the syndicate risk ID fr each cmmissin event must be unique fr the current return year and acrss all return years s that n tw cmmissin events have the same syndicate risk ID. Each risk recrd is t have the fllwing features: the syndicate risk ID must relate t a cmmissin event and be the same as the syndicate risk ID used fr all recrds reprted fr that event the syndicate risk ID must cnsist f with the wrd COMMISSION fllwed by a space and a unique

28 28 identifier e.g. COMMISSION the risk recrd is t be assigned t the dminant classes f business, risk cdes, risk expsure lcatin cdes and riginal currency cdes f the risk(s) that are generating the prfit cmmissins the premium amunts are t be based n the managing agent's best estimate f the ttal prfit cmmissins that are expected t be paid if the risk recrd is nt fr a single risk, the single risk flag is t be set t N and the current UMR t N/A if the risk recrd is fr a single risk and the single risk flag is set t Y, a current UMR might be required; if it is pssible, it is preferable t link prfit cmmissins t the individual plicy that generated them by using the current UMR f that plicy fr the prfit cmmissin risk recrd the risk recrd is t be added t either frm 286, frm 287 r bth frms depending n whether the riginal risk(s) generating the prfit cmmissins were new, renewed r a cmbinatin f new and renewed if the risk recrd is either renewed r nt renewed, expiring syndicate Grss Written Premium and expiring 100% Grss Written Premium must bth be <= 0 if the risk recrd is either new r renewed: current syndicate Grss Written Premium and current 100% Grss Written Premium must bth be < 0, and benchmark price must be set t N/C if the risk recrd is renewed, all the change fields (fields ) must be set t N/C. Nte that when each f the prfit cmmissin risk recrds expires, a renewed/nt renewed prfit cmmissin risk recrd must be submitted. An example f a risk recrd fr utwards prfit cmmissins n frm 287 is shwn belw: 3.30 Inwards reinstatement premiums Frm 263 Inwards reinstatement premiums received, including any estimate f future reinstatement premiums which have nt yet been received, are t be reprted in grss premium written. Any related acquisitin csts are t be reprted in acquisitin csts Frms 286 and 287 Inwards reinstatement premiums are t be reprted using either f the fllwing appraches. It is acceptable fr managing agents t make adjustments t premiums at the plicy level. Hwever, if this apprach is taken the managing agent must be able t allcate reinstatement premiums dwn t the individual cntract level (e.g. by prprtinal allcatin) and must als ensure that the change fields (fields ) are updated s that the pure rate change reprted t Llyd's is crrect.

29 29 The premium amunts are t be based n the managing agent's best estimate f the ttal reinstatement premiums that are expected t be received, nt just thse that have already been received. These amunts are t be revised as actual reinstatement premiums are received. Alternatively, the managing agent may reprt ne r mre separate risk recrds t make an adjustment fr inwards reinstatement premiums at the syndicate class f business, risk cde, risk expsure lcatin cde and riginal currency cde level. In these cases, the syndicate risk ID fr each assciated event must be unique fr the current return year and acrss all return years s that n tw events have the same syndicate risk ID. Each risk recrd is t have the fllwing features: the syndicate risk ID must relate t a majr event r an aggregatin f nn-majr events and be the same as the syndicate risk ID used fr all reinstatement premiums reprted fr that event fr reinstatement premiums arising frm a majr event fr which a cat cde is available the syndicate risk ID must cnsist f the wrd REINSTATEMENT fllwed by a space and the relevant cat cde e.g. recrds fr reinstatement premiums arising frm the hurricane Ike (cat cde 08F) are t have syndicate risk ID REINSTATEMENT 08F fr reinstatement premiums arising frm a majr event fr which n cat cde is available the syndicate risk ID must cnsist f the wrd "REINSTATEMENT" fllwed by a space and a unique identifier, e.g. REINSTATEMENT fr reinstatement premiums arising frm nn-majr events fr which n cat cde is available a syndicate risk ID f the frm REINSTATEMENT NME yyyy, where NME stands fr nn-majrevent and yyyy fr the return year, e.g. REINSTATEMENT NME 2016, may be used t aggregate the reinstatement premiums arising frm nn-majr events ccurring in the return year the risk recrd is t be assigned t the dminant classes f business, risk cdes, risk expsure lcatin cdes and riginal currency cdes f the risk(s) that are generating the reinstatement premiums the premium amunts are t be based n the managing agent's best estimate f the ttal reinstatement premiums that are expected t be received the premium amunts are t be revised as actual reinstatement premiums are received if the risk recrd is nt fr a single risk, the single risk flag is t be set t N and the current UMR t N/A if the risk recrd is fr a single risk and the single risk flag is set t Y, a current UMR might be required; if it is pssible, it is preferable t link reinstatement premiums t the individual plicy that generated them by using the current UMR f that plicy fr the premium reinstatement risk recrd the risk recrd is t be added t either frm 286, frm 287 r bth frms depending n whether the riginal risk(s) generating the reinstatement premiums were new, renewed r a cmbinatin f new and renewed if the risk recrd is either renewed r nt renewed, expiring syndicate Grss Written Premium and expiring 100% Grss Written Premium must bth be >= 0 if the risk recrd is either new r renewed: current syndicate Grss Written Premium and current 100% Grss Written Premium must bth be > 0, and benchmark price must be set t N/C if the risk recrd is renewed, all the change fields (fields ) must be set t N/C. Nte that when each f the premium reinstatement risk recrds expires, a renewed/nt renewed premium reinstatement risk recrd must be submitted. An example f a risk recrd fr inwards reinstatement premiums n frm 287 is shwn belw:

30 Frm 288 Nte that when each f the premium reinstatement risk recrds expires, a renewed/nt renewed premium reinstatement risk recrd must be submitted Reprting f lineslips A traditinal lineslip is a frmal, cntractual delegatin f authrity t enter int cntracts f insurance frm ne r mre managing agents t anther managing agent. Each risk attaching must be n a Market Refrm Cntract (MRC) slip r ffslip, with a UMR, and placed by the cntracting Llyd's brker. This is als true fr bulking lineslips. These risks must be reprted as methd f placement lineslip. Risks placed using facilities which wrk in a similar manner t bulking lineslips, where a Llyd's brker places multiple risks fr a managing agent t bind individually, which d nt have an element f delegated authrity, and are therefre written 100%, can als be reprted as methd f placement lineslip.

31 31 4 Data specificatin The sectin lists the data required t cmplete the PMDR frms. Read this sectin in cnjunctin with the data templates which detail the required frmat fr the CSV file fr each frm. The data templates are published in the PMD Return Specificatins. 4.1 Frm 263 Premium vlume summary Currency Cde 10 Overview The three-letter cde fr the currency in which the mnetary values are reprted. Purpse This field is required s that Llyd s can apply cnsistent exchange rates t cnvert premium amunts int a single currency. Frmat 3 characters: fr premiums received in USD, set t USD fr premiums received in all ther currencies, set t GBP ; cnvert all nn-gbp nn-usd premiums int GBP using the rules set ut in subsectin 3.26 f these instructins and add them t the premiums received in GBP fr premiums received in any currency, set t CNV ; cnvert all nn-gbp premiums, including thse received in USD, int GBP using the rules set ut in subsectin 3.26 f these instructins and add them t the premiums received in GBP. Reprt in this field ne f the three ptins given abve. D nt reprt any ther currency cde in this field. Mandatry/Optinal This field is mandatry. Further details and examples Frm 263 therefre cnsists f three rws f data: ne fr premiums received in USD; ne fr premiums received in GBP r in nn-gbp nn-usd currencies which are cnverted t GBP; and ne fr premiums received in GBP r in nn-gbp currencies which are cnverted t GBP. Sectin 11 f these instructins cntains an example which explains hw t reprt premium incme in frm 263.

32 32 Grss Premium Written nt Including IDA & Bnuses/Rebates 20 Overview The ttal amunt f the grss premium written (excluding IDA & Bnuses/Rebates) fr the risks included in the PMDR. Purpse Used by Llyd s t mnitr the grss premium written acrss all lines f business. Frmat A numeric field with up t 18 digits befre the decimal pint and up t 4 digits after it. D nt include cmmas r ther separatrs in this field. Fr example, is a valid value whereas 123,456, is nt. Mandatry/Optinal This field is mandatry. Further details and examples This field is grss f utwards reinsurance and grss f acquisitin csts (nt including IDA, Bnuses / Rebates. This field cntains cumulative premiums acrss all classes f business. Written and signed premiums: Update this field t reflect any signing dwn f premiums nce ntified. Binding authrity and lineslip cntracts: Include nly premiums in respect f plicies that have been ntified as written under binding authrity and lineslip cntracts. D nt include in this field an estimate f premium which is expected t be written under a binding authrity r lineslip cntract but has nt yet been ntified. See sectin 8 f these instructins fr examples which give further guidance n hw t reprt premiums written via binding authrity and lineslip cntracts. Prprtinal treaty arrangements: Include nly premiums in respect f plicies that have been ntified as written under quta share r surplus share arrangements. Agent service cmpanies: Include nly premiums in respect f plicies that have been ntified as written by the agent service cmpany. Bnuses and Rebates, Grss f Reinsurance 30 Overview The ttal amunt f the bnuses and rebates, grss f reinsurance, applicable t the risks included in the PMDR. Purpse Used by Llyd s t cnstruct Grss Written Premium - this is Llyd s preferred measure f premium incme. Frmat A numeric field with up t 18 digits befre the decimal place and up t 4 digits after it. D nt include cmmas r ther separatrs in this field. Fr example, is a valid value whereas 123,456, is nt. If a psitive amunt is paid ut by the insurer in bnuses and rebates, reprt it as a negative amunt in this field. Llyd s expects any nn-zer value in this field t be negative. Mandatry/Optinal This field is mandatry. Further details and examples The amunts under bnuses and rebates fllw whatever disclsure is made by the managing agent under UK GAAP. If disclsure is made then it wuld cver bnuses and rebates t the insured nly.

33 33 IDA Premiums Grss f Acquisitin Csts 40 Overview The ttal amunt f the inceptin date accunting premiums, grss f acquisitin csts, applicable t the risks included in the PMDR. Purpse Used by Llyd s t cnstruct Grss Written Premium - this is Llyd s preferred measure f premium incme. Frmat A numeric field with up t 18 digits befre the decimal place and up t 4 digits after it. D nt include cmmas r ther separatrs in this field. Fr example, is a valid value whereas 123,456, is nt. Mandatry/Optinal This field is mandatry. Further details and examples This field includes inceptin date accunting premiums, grss f acquisitin csts, applicable t the declaratins still t be written, under binding authrity cntracts and lineslip cntracts. Further details f the requirements fr reprting binding authrity and lineslip cntracts are given in sectin 7 f these instructins. Sectin 8 f these instructins cntains examples shwing hw t calculate the inceptin date accunting value fr binding authrity and lineslip cntracts. Use this field als t accunt fr the differences between Grss Written Premium in frm 263 and the sum f the Grss Written Premium in frms 286 and 287. Sectin 11 f these instructins cntains an example that demnstrates this relatinship. Grss Written Premium 50 Overview The ttal amunt f the Grss Written Premium (including IDA & Bnuses/Rebates) fr the risks included in the PMDR. It is the sum f the amunts in fields 20, 30 and 40 The sum f the cntract level current syndicate grss written premium in field 160 in PMD 286 and PMD 287 shuld equal the figure recrded in this field. Purpse Used by Llyd s t mnitr the Grss Written Premium by individual syndicates and the market as a whle. Frmat A numeric field with up t 18 digits befre the decimal place and up t 4 digits after it. D nt include cmmas r ther separatrs in this field. Fr example, is a valid value whereas 123,456, is nt. Mandatry/Optinal This field is mandatry. Further details and examples The Grss Written Premium in this field is t equal the sum f the crrespnding Current Syndicate Grss Written Premium reprted in field 160 n frms 286 and 287. Sectin 11 f these instructins cntains an example that demnstrates this relatinship.

34 34 Acquisitin Csts (Brkerage, Cmmissins and Business Arrangement Fees) 60 Overview The ttal amunt f the acquisitin csts (brkerage, cmmissins and business arrangement fees) applicable t the risks included in the PMDR. The sum f the cntract level acquisitin csts in field 160a in PMD 286 and PMD 287 shuld equal the figure recrded in this field. Purpse Used by Llyd s t cnstruct Grss Written Premium - which is Llyd s preferred measure f premium incme. Frmat A numeric field with up t 18 digits befre the decimal place and up t 4 digits after it. D nt include cmmas r ther separatrs in this field. Fr example, is a valid value whereas 123,456, is nt. If a psitive amunt is paid ut by the insurer in respect f acquisitin csts, reprt it as a negative amunt in this field. Llyd s expects any nn-zer value in this field t be negative. Mandatry/Optinal This field is mandatry. Further details and examples D nt include in acquisitins csts the remuneratin f underwriting staff. When knwn, include any prfit cmmissin paid t brkers in relatin t risks written during the current return year in this field.

35 Frms 286, 287 and 288 Price mvements and premium vlumes Single Risk Flag 10 Overview The flag that indicates whether r nt the data relates t a single risk. Purpse Used by Llyd s t identify data that represents aggregated risks. Frmat 1 character: if the data relates t a single risk, set t Y if the data relates t multiple risks, set t N. Mandatry/Optinal This field is mandatry. Further details and examples Binding authrity and lineslip cntracts: Data fr binding authrity and lineslip cntracts may be supplied n an individual risk (declaratin) basis (with single risk flag set t Y ) but facility recrds fr the crrespnding class f business, risk cde, risk expsure lcatin and riginal currency cmbinatins must always be supplied (with single risk flag set t N ). Llyd s wuld prefer managing agents t reprt each risk separately when the binding authrity r lineslip cntract is a significant surce f business in terms f incme r class. See sectin 7 f these instructins fr details f the requirements fr reprting binding authrity and lineslip cntracts. See sectin 8 f these instructins fr examples which give further guidance n hw t reprt premiums written via binding authrity and lineslip cntracts. Open market direct: With the exceptin f persnal mtr and life insurance risks, reprt insurance cntracts placed in this way n an individual risk basis with the single risk flag set t Y. Persnal mtr insurance: Llyd s strngly prefers that data relating t persnal mtr insurance risks categrised under risk cdes M2, M4, M5, MF, MG, MH and MI) be aggregated int the material class f business, risk cde, risk expsure lcatin and riginal currency cmbinatins fr each inceptin date befre inclusin in the PMDR. Therefre, set the single risk flag fr these types f risk t N. Life insurance: Llyd s strngly prefers that data relating t life insurance risks categrised under risk cde TL be aggregated int the class f business, risk expsure lcatin and riginal currency cmbinatins fr each inceptin date befre inclusin in the PMDR. Therefre, set the single risk flag fr these types f risk t N.

36 36 Expiring Unique Market Reference (UMR) and Current Unique Market Reference (UMR) Overview The Unique Market Reference (UMR) f the risk/s. Purpse Used by Llyd s t perfrm validatin checks n infrmatin taken frm acrss the market and acrss return years. These checks enable Llyd s t imprve the quality f data received in the PMDRs. Frmat This field must be either: a valid UMR, r the three-character string N/A. A valid UMR has 6-17 characters in the fllwing frmat: character 1 is B characters 2-5 are fur numbers representing the CSN (Llyd s brker number) f the placing brker (prefix CSNs that are three digits lng by a zer) characters 6-17 cntain a minimum f ne and up t a further 12 characters A UMR must nt cntain any spaces, hyphens, slashes r ther punctuatin. Only letters A-Z and numbers 0-9 may be used. The UMR as a whle must be unique fr each plicy. This means that when a plicy is renewed it cannt keep the same UMR, unless the renewal is the re-signing f a multi-year risk. Mandatry/Optinal These fields are mandatry. Reprt in these fields fr all risks reprted in the PMDR either a valid UMR r the string N/A when a valid UMR is nt available and never will be. Fr risks written r renewed during 2009, managing agents had the ptin t set the current UMR field t N/A fr insurance cntracts fr which a UMR did exist but had nt been recrded. Hwever, fr risks incepting r renewing n r after 1 January 2010 managing agents must reprt a valid UMR in the current UMR field in all the circumstances specified in subsectin f these instructins. When the UMR is nt yet knwn because ne has nt been prvided n a slip by the brker when ne ught t have been, it is acceptable t reprt temprarily fr the UMR, a string beginning with BnnnnTBA, where nnnn is the CSN f the placing brker, but such UMRs must be replaced by the real UMRs befre the December (18) PMDR is submitted. Further details and examples Agent service cmpany risks: Fr agent service cmpany risks, if available, reprt either: the UMR fr the binding authrity cntract gverning the agent service cmpany, r the UMR fr each individual risk written by the agent service cmpany. Binding authrity and lineslip cntract risks: Fr risks relating t binding authrity and lineslip cntracts, reprt the UMR f the binding authrity r lineslip cntract. Open market direct risks: Fr each sectin f each pen market insurance plicy the UMR fr the plicy must be reprted. An example f hw t cmplete the PMDR frms fr pen market risks is given in sectin 9 f these instructins. Persnal mtr insurance risks: Fr persnal mtr insurance risks, fr which data has been aggregated t a single recrd, set the UMR t N/A. Life insurance risks: Fr life insurance risks, fr which data has been aggregated t a single recrd, set the UMR t N/A. Fr insurance plicies that are nt registered with Xchanging and hence have n UMR, fr example sme persnal lines business: when a UMR is required, generate a UMR using the managing agent s wn CSN when n UMR is required, set the UMR t N/A.

37 37 Expiring Syndicate Risk ID and Current Syndicate Risk ID Overview The syndicate risk reference (plicy ID) f the risk/s taken frm the managing agent s underwriting system. Purpse Used by Llyd s when cmmunicating with managing agents. Frmat Frm 1 t 50 characters. Any ASCII characters are acceptable except the fllwing:, [cmma] [single qute] [duble qute] These fields must nt equal 0 r N/A r all spaces. There are n further restrictins n these fields as the syndicate risk ID is created by the managing agent at their discretin. Mandatry/Optinal These fields are mandatry. An expiring syndicate risk ID must be reprted fr all renewed and nn-renewed risks. A current syndicate risk ID must be reprted fr all new and renewed risks. Further details and examples A current syndicate risk ID must als be reprted fr recrds which represent aggregated risks. Fr example, a current syndicate risk ID must be reprted fr persnal mtr insurance risks which have been aggregated int the material class f business, risk cde, risk expsure lcatin and riginal currency cmbinatins. Syndicate Class f Business Cde 60 Overview The cde fr the syndicate class f business under which the risk/s is/are written. Purpse Used by Llyd s t grup risks int the classes f business used by the managing agent. Frmat Frm 1 t 5 characters. Mandatry/Optinal This field is mandatry. Further details and examples The syndicate class f business cde reprted must be a class f business cde in the syndicate's apprved SBF fr the return year. If a risk falls under multiple syndicate classes f business, reprt each material syndicate class f business separately. The syndicate class f business name des nt need t be supplied in the PMDR. Llyd s lks up the syndicate class f business name frm the apprved SBF fr the return year.

38 38 Risk Cde 70 Overview The Llyd's risk cde that categrises the nature f the risk/s. Purpse Used by Llyd s t assign risks int hmgenus grups, fr example the Llyd s 10 high-level classes f business. Frmat Either 1 r 2 characters. The frmat f the risk cde reprted must be identical t the frmat f a risk cde specified in the reference data (including capitalisatin). Leading and trailing spaces are nt allwed. Onecharacter risk cdes must be reprted as ne character nly. Fr example, the risk cde P must be reprted as P (ne character) nt P r P (tw characters). Mandatry/Optinal This field is mandatry. Further details and examples The year f the inceptin date f the risk must fall within the inclusive start year and end year range that is specified in the reference data fr the risk cde reprted. The risk cde reprted must be a risk cde in the syndicate's apprved SBF fr the return year. If a risk falls under multiple risk cdes, reprt each material risk cde separately. Sme risk cdes relate t a specific risk expsure lcatin and/r methd f placement. The risk cde reprted is checked against the risk expsure lcatin and methd f placement reprted fr the risk t identify any incnsistencies. Inceptin Date 80 Overview The inceptin date f the risk/s. The inceptin date is defined as the first date n which cver is prvided fr part r all f the day. It is defined in this way t ensure that: all managing agents reprt inceptin dates in a cnsistent manner there is a crrespndence between the inceptin date f renewed cntracts and the expiry date f nn-renewed cntracts, which helps Llyd s t mnitr lapse rates accurately. Purpse Used by Llyd s t grup tgether new and renewed risks fr analysis by date f inceptin. Frmat All dates must be supplied in ne f the fllwing frmats: YYYY-MM-DD DD-MM-YYYY DD/MM/YYYY YYYY/MM/DD Mandatry/Optinal This field is mandatry. Further details and examples Renewed risks: The inceptin date reprted is generally equal t r later than the expiry date that was reprted fr the new r renewed risk that is being renewed. Nt renewed risks: Reprt the inceptin date that was riginally reprted fr the new r renewed risk that has nt renewed. Binding authrity and lineslip cntract risks: Fr risks relating t binding authrity and lineslip cntracts, reprt: The inceptin date f the binding authrity r lineslip cntract fr the facility recrds, and The inceptin date f the declaratin fr the declaratin recrds. Aggregated risks: Fr aggregated risks, reprt the earliest inceptin date frm the set f risks. Multi-year risks: Fr multi-year risks, refer t the advice given in subsectin 3.28 and sectin 12 f these instructins.

39 39 Expiry Date 90 Overview The expiry date f the risk/s. The expiry date is defined as the first date n which fr any part r all f the day cver is nt prvided. The first date n which fr any part r all f the day cver is nt prvided is als the date n which a risk is expected t renew if it were t renew. The expiry date is defined in this way t ensure that: all managing agents reprt expiry dates in a cnsistent manner there is a crrespndence between the inceptin date f renewed cntracts and the expiry date f nn-renewed cntracts which helps Llyd s t mnitr lapse rates accurately mnth/year end renewals/nn-renewals appear in the same PMDR. Purpse Used by Llyd s t grup tgether nt renewed risks fr analysis by date f expiry. Frmat All dates must be supplied in ne f the fllwing frmats: YYYY-MM-DD DD-MM-YYYY DD/MM/YYYY YYYY/MM/DD Mandatry/Optinal This field is mandatry. Further details and examples Fr a plicy fr which cver ceases at 24:00 n 31 December yyyy, reprt its expiry date as yyyy and reprt its renewal/nn-renewal in the January yyyy+1 PMDR due in February yyyy+1. If a plicy expires n at 12:00 23 February yyyy (and wuld renew at 12:00 n 23 February yyyy), reprt the expiry date as yyyy If a plicy expires n at 24:00 23 February yyyy (and wuld renew at 00:00 n 24 February yyyy) reprt the expiry date as yyyy Fr nt renewed risks, reprt as the expiry date the expiry date that was reprted fr the new r renewed risk that has nt renewed. Binding authrity and lineslip cntract risks: Fr risks relating t binding authrity and lineslip cntracts, reprt: the expiry date f the binding authrity r lineslip cntract fr the facility recrds, and the expiry date f the declaratin fr the declaratin recrds. Aggregated risks: Fr aggregated risks, reprt the latest expiry date frm the set f risks. Multi-year risks: Fr multi-year risks, refer t the advice given in subsectin 3.28 and sectin 12 f these instructins.

40 40 Risk Expsure Lcatin Cde 100 Overview The ISO alpha-2 cde r Llyd's-defined cde fr the expsure lcatin f the risk/s. Purpse Used by Llyd s t perfrm analysis n market cnditins by gegraphical lcatin f risk expsure. Frmat 2 characters. The frmat f the risk expsure lcatin cde reprted must be identical t the frmat f a risk expsure lcatin cde specified in the reference data (including capitalisatin). Mandatry/Optinal This field is mandatry. Further details and examples The inceptin date f the risk must fall within the inclusive start date and end date range that is specified in the reference data fr the risk expsure lcatin cde reprted. Cmplete this field with reference t the physical lcatin f the insured risk. The value reprted in this field is nt t be based n the dmicile f the insured party. When a risk has expsure in several physical lcatins reprt each material lcatin separately, but if the expsure is predminantly in a single lcatin, reprt that predminant lcatin. Alternatively, fr risks with expsure in multiple physical lcatins, when apprpriate reprt ne f the three additinal wrldwide risk expsure lcatin cdes that Llyd s has created. If the risk is present in multiple physical lcatins but nt the United States f America, reprt the cde QN, crrespnding t Wrldwide excluding USA. If the risk is present in multiple physical lcatins including significant expsure in the United States f America, reprt the cde QU, crrespnding t Wrldwide including significant USA expsure. If the risk is present in multiple physical lcatins including minimal expsure in the United States f America, reprt the cde QM, crrespnding t Wrldwide but including nly minimal USA expsure. T make this field as infrmative as pssible it is imprtant that risks are nt inapprpriately reprted using the three wrldwide cdes. Dmicile f the Insured 105 Overview The ISO alpha-2 cde (n Llyd's-defined cdes) fr the 'Cuntry f Origin': e.g. Plicyhlder's registered ffice lcatin; Master plicyhlder's registered ffice lcatin; Plicyhlder's head ffice where cntract is glbal / multinatinal f the risk/s. Please nte that dmicile f the insured must refer t a single territry and s there are n multi-territry r wrldwide ptins available fr this field. Purpse Used by Llyd s t perfrm analysis n market cnditins by gegraphical lcatin f risk written. Frmat 2 characters. The frmat f the risk written lcatin cde reprted must be identical t the frmat f the Dmicile f the Insured cde specified in the reference data (including capitalisatin). Mandatry/Optinal This field is mandatry. Further details and examples The inceptin date f the risk must fall within the inclusive start date and end date range that is specified in the reference data fr the Dmicile f the Insured cde reprted. Cmplete this field with reference t the cuntry in which the plicyhlder is resident, if they are a private individual, r has its main registered perating address, if it is a crprate bdy (whether insured r reinsured). This is ften nt the same as the lcatin f risk. The cuntry in which the plicyhlder s ffice is situated; r Fr a glbal r multi-natinal cntract, i.e. cvering a plicyhlder with ffices in multiple cuntries, it is the cuntry in which the plicyhlder s head r main ffice is situated. Fr a master plicy, the cuntry in which the master plicyhlder is situated. If there are multiple parties with an interest in the risk, dmiciled in different cuntries, it is

41 41 necessary t designate the cuntry mst apprpriate in the circumstances as the Dmicile f the Insured Llyd s Slip Leader Flag 110 Overview The flag that indicates whether r nt the syndicate's rle n the risk/s is a Llyd s slip leader. Purpse Used by Llyd s t perfrm analysis by slip leader and fllwer. Frmat 1 character: if the syndicate's rle is a Llyd s slip leader, set the Llyd s slip leader flag t Y if the syndicate's rle is a Llyd s slip fllwer, set the Llyd s slip leader flag t N. Mandatry/Optinal This field is mandatry. Further details and examples Managing agents are t set the Llyd s slip leader flag t Y in the event that a risk is led by the cmpany market but their syndicate leads the risk within Llyd s. Llyd s slip leader flag may be set t N when the syndicate Grss Written Premium is set t match the 100% Grss Written Premium. Llyd s slip leader flag must be set t N when a risk has been ceded t the syndicate frm anther syndicate and the syndicate s stamp is nt n the slip. Distributin Channel Cde 120 Overview The cde fr the distributin channel thrugh which the risk/s were placed. Purpse Used by Llyd s t perfrm analysis by distributin channel. Frmat 3 r 4 characters. The frmat f the distributin channel cde reprted must be identical t the frmat f a distributin channel cde specified in the reference data (including capitalisatin). Mandatry/Optinal This field is mandatry. Further details and examples The inceptin date f the risk must fall within the inclusive start date and end date range that is specified in the reference data fr the distributin channel cde reprted. Asia, China Direct, China Reinsurance and Japan: Reprt these distributin channels as applicable fr business transacted thrugh the Asia, China Direct, China Reinsurance r Japan distributin channels Dubai: Reprt this distributin channel fr business transacted thrugh the Dubai Llyd s Lndn: Reprt this distributin channel fr all ther business. Sme distributin channel and methd f placement cmbinatins are invalid. These are specified in subsectin 3.17 f these instructins. Please nte that a separate field 135 was intrduced t reprt service cmpany business in PMDR submissins frm the 2016 reprting year nwards. The service cmpany ptin has been remved frm this field and is reprted independently in field 135.

42 42 Cverhlder PIN 125 Overview The unique cmbinatin f 6 numeric and 3 alpha digits which identifies the Cverhlder wh underwrites Binding Authrity Risk/s Purpse Used by Llyd s t perfrm analysis by Cverhlder Frmat 9 characters; cmprising f 6 numeric (char 1-6) and 3 alpha digits (char 7-9) The frmat f the Cverhlder PIN reprted must be identical t the frmat f Cverhlder PIN specified in the reference data Mandatry/Optinal This field is mandatry. Further details and examples The inceptin date f the risk must fall within the inclusive start date and end date range that is specified in the reference data fr the Cverhlder PIN reprted. A valid Cverhlder PIN must be entered n Binding Authrity risks nly. Fr Nn-Cverhlder business, please enter N/A.

43 43 Methd f Placement Cde 130 Overview The cde fr the methd f placement f the risk/s e.g. under a binding authrity cntract r under a lineslip cntract. Purpse Used by Llyd s t perfrm analysis by methd f placement. Frmat 4 characters. The frmat f the methd f placement cde reprted must be identical t the frmat f a methd f placement cde specified in the reference data (including capitalisatin). Mandatry/Optinal This field is mandatry. Further details and examples The inceptin date f the risk must fall within the inclusive start date and end date range that is specified in the reference data fr the methd f placement cde reprted. Binding Authrity cntract (BNDR): Reprt BNDR fr plicies placed under a binding authrity cntract delegated utside the managing agent. Lineslip cntract (LNSL): Reprt LNSL fr plicies placed under an arrangement by which authrity is delegated t anther managing agent, r t an authrised insurance cmpany, fr business intrduced by a named Llyd s brker, usually nly fr specific types f business. Open Market Direct (OPDR): Reprt OPDR fr direct insurance plicies placed by a Llyd s brker in the pen market (excluding plicies within a binding authrity cntract r a lineslip cntract). Open Market Reinsurance (OPRI): Reprt OPRI fr reinsurance plicies placed by a Llyd s brker in the pen market (excluding plicies within a binding authrity cntract r a lineslip cntract). Cnsrtium: A cnsrtium is an arrangement by which authrity is delegated t anther Llyd s managing agent t enter int cntracts f insurance n behalf f a syndicate. A cnsrtium usually perates in specified classes f business prduced frm mre than ne surce (which is the main difference frm a lineslip). Unless a cnsrtium delegates authrity t a cmpany r partnership ther than a managing agent, plicies placed under a cnsrtium arrangement are t be reprted as direct insurance plicies placed by a Llyd s brker in the pen market i.e. as OPDR. When a cnsrtium delegates authrity t a cmpany r partnership ther than a managing agent, that cmpany r partnership needs t be apprved as a Cverhlder by Llyd s and the plicies s placed are t be reprted as placed under a binding authrity cntract delegated utside the managing agent i.e. as BNDR. Sme distributin channel and methd f placement cmbinatins are invalid. These are specified in subsectin 3.17 f these instructins.

44 44 Service Cmpany Indicatr 135 Overview The three-letter cde t identify premium written fr risk/s via s Service Cmpany Purpse Used by Llyd s t perfrm analysis by Service Cmpany. Frmat 3 characters If the risk/s placed thrugh a Service Cmpany enter ASC in the Service Cmpany Indicatr field. If the risk/s nt placed thrugh a Service Cmpany enter NSC in the Service Cmpany Indicatr field. Mandatry/Optinal This field is mandatry. Further details and examples The inceptin date f the risk must fall within the inclusive start date and end date range that is specified in the reference data fr the Service Cmpany Indicatr reprted. Original Currency Cde 140 Overview The ISO 4217 three-letter cde fr the riginal currency in which the premium fr the risk/s was written. Purpse Used by Llyd s t perfrm analysis by riginal currency cde. Frmat 3 characters. The frmat f the riginal currency cde reprted must be identical t the frmat f an riginal currency cde specified in the reference data (including capitalisatin). Mandatry/Optinal This field is mandatry. Further details and examples The inceptin date f the risk must fall within the inclusive start date and end date range that is specified in the reference data fr the riginal currency cde reprted. The actual mnetary amunts (fields ) are reprted in USD r GBP accrding t the rules given in subsectin 3.26 f these instructins. They are nt reprted in any ther currency. If the premium fr a risk is expressed in multiple currencies, reprt each material riginal currency separately as per subsectin Sectin 11 f these instructins cntains an example which explains hw t reprt premium incme in frms 286, 287 and 288.

45 45 Expiring Syndicate Grss Written Premium 150 Overview The amunt (nt percentage) f the syndicate's share f the 100% Grss Written Premium charged fr the expiring risk/s, i.e. written premium adjusted fr bnuses and rebates grss f IDA premium, acquisitin csts and QQS premium. Base the expiring syndicate premium amunt n the signed line and the mst up-t-date 100% premium amunt available. See subsectin 3.8 and subsectin 3.9 f these instructins fr further details. Purpse Used by Llyd s t calculate the prprtin f a risk underwritten by a syndicate. Frmat A numeric field with up t 18 digits befre the decimal place and up t 4 digits after it. D nt include cmmas r ther separatrs in this field. Fr example, is a valid value whereas 123,456, is nt. Mandatry/Optinal This field is mandatry. Further details and examples All premium amunts are t crrespnd t the level f granularity used t cmplete the PMDR frm fr that particular (re)insurance cntract. Fr example, fr (re)insurance plicies underwritten in the pen market, reprt premium amunts fr each separate sectin cntained in the (re)insurance plicy. The expiring syndicate Grss Written Premium reprted fr a given sectin is therefre t be the expiring syndicate premium fr that sectin f the plicy nly. See sectin 8 and sectin 9 f these instructins fr examples f differing levels f granularity and sectin 10 f these instructins fr an example f apprtinment f Grss Written Premium. When this field is psitive, it must nt be greater than field 170. When this field is negative, it must nt be less than field 170. Reprt the amunt in either USD r GBP accrding t the rules given in subsectin 3.26 f these instructins. D nt reprt the amunt in any ther currency. Cnvert the expiring premium fr nn-gbp nn-usd amunts t GBP at the relevant exchange rate fr the return year, nt at the exchange rate at which the business was written r the exchange rate at which is was advised as new r renewed business in PMDRs in earlier return years. Fr example, 100,000 CHF f premium written n 1/4/2009 wuld have been reprted in the 15 May 2009 t 15 January 2010 PMDRs as 50, f new business (2009 Swiss Franc published PMDR rate 1.97). Assuming the plicy expired n 1/4/2010, it wuld appear in the 15 May January 2011 PMDRs in field 150 as 61, (2010 Swiss Franc published PMDR rate 1.63) nt 50, (2009 Swiss Franc published PMDR rate 1.97). Nte that the December (18) PMDR due n 31 July 2010 wuld recrd a new business premium f 50, while the subsequent December (18) PMDR due n 31 July 2011 wuld recrd an expiry premium f 61, in field 150.

46 46 Current Syndicate Grss Written Premium 160 Overview The amunt (nt percentage) f the syndicate's share f the 100% Grss Written Premium charged fr the new r renewed risk/s, i.e. written premium adjusted fr bnuses and rebates grss f IDA premium, acquisitin csts and QQS premium. Base the current syndicate premium amunt initially n the written line and the mst up-t-date premium amunt available but update it t reflect any material changes nce the signed line has been reprted and when ther premium adjustments ccur. See subsectin 3.8 and subsectin 3.9 f these instructins fr further details. The sum f premium in this field in frms PMD 286 and 287 must equal the premium recrded in PMD 263 field 50. Purpse Used by Llyd s t calculate the prprtin f a risk underwritten by a syndicate. Frmat A numeric field with up t 18 digits befre the decimal place and up t 4 digits after it. D nt include cmmas r ther separatrs in this field. Fr example, is a valid value whereas 123,456, is nt. Mandatry/Optinal This field is mandatry. Further details and examples All premium amunts are t crrespnd t the level f granularity used t cmplete the PMDR frm fr that particular (re)insurance cntract. Fr example, fr (re)insurance plicies underwritten in the pen market, reprt premium amunts fr each separate sectin cntained in the (re)insurance plicy. The current syndicate Grss Written Premium reprted fr a given sectin is therefre t be the current syndicate premium fr that sectin f the plicy nly. See sectin 8 and sectin 9 f these instructins fr examples f differing levels f granularity and sectin 10 f these instructins fr an example f apprtinment f Grss Written Premium. The sum f the current syndicate Grss Written Premium reprted in this field n frms 286 and 287 is t equal the Grss Written Premium reprted in field 50 n frm 263. Sectin 11 f these instructins cntains an example that demnstrates this relatinship. When this field is psitive, it must nt be greater than field 220. When this field is negative, it must nt be less than field 220. Reprt the amunt in either USD r GBP accrding t the rules given in subsectin 3.26 f these instructins. D nt reprt the amunt in any ther currency.

47 47 Current Syndicate Acquisitin Csts 160a Overview The amunt (nt percentage) f the syndicate's share f the Current 100% Acquisitin Csts charged fr the new r renewed risk/s, i.e. the acquisitin csts element f field 160. The definitin f Current Syndicate Acquisitin Csts in PMDRs is identical t the definitin f Acquisitin Csts in the SBF. The sum f acquisitin csts in this field in frms PMD 286 and 287 must equal the acquisitin recrded in PMD 263 field 60. Acquisitin csts will typically be recrded as a negative amunt where grss written premium is psitive. Purpse Used by Llyd s t calculate the amunt f acquisitin csts incurred by a syndicate. Frmat A numeric field with up t 18 digits befre the decimal place and up t 4 digits after it. D nt include cmmas r ther separatrs in this field. Fr example, is a valid value whereas 123,456, is nt. Mandatry/Optinal This field is mandatry. Further details and examples The sum f the current syndicate Current Syndicate Acquisitin Csts reprted in this field n frms 286 and 287 is t equal the Acquisitin Csts (Brkerage, Cmmissins and Business Arrangement Fees) reprted in field 60 n frm 263. Sectin 11 f these instructins cntains an example that demnstrates this relatinship. When this field is psitive, it must nt be greater than field 160. When this field is negative, it must nt be less than field 160. Reprt the amunt in either USD r GBP accrding t the rules given in subsectin 3.26 f these instructins. D nt reprt the amunt in any ther currency.

48 48 Expiring 100% Grss Written Premium 170 Overview The amunt f the 100% Grss Written Premium charged fr the expiring risk/s. Set the expiring 100% premium amunt t the mst up-t-date premium amunt available. See subsectin 3.8 f these instructins fr further details. Purpse Used by Llyd s t mnitr premium rate mvements fr renewed risks. Frmat A numeric field with up t 18 digits befre the decimal place and up t 4 digits after it. D nt include cmmas r ther separatrs in this field. Fr example, is a valid value whereas 123,456, is nt. Mandatry/Optinal This field is mandatry. Further details and examples This field is used by Llyd s t mnitr premium mvements fr renewed risks. Sectin 14 f these instructins gives further infrmatin n hw Llyd s uses this field t mnitr premium rate mvements. All premium amunts are t crrespnd t the level f granularity used t cmplete the PMDR frm fr that particular (re)insurance cntract. Fr example, fr (re)insurance plicies underwritten in the pen market, reprt premium amunts fr each separate sectin cntained in the (re)insurance plicy. The expiring 100% Grss Written Premium reprted fr a given sectin is therefre t be the expiring 100% premium fr that sectin f the plicy nly. See sectin 8 and sectin 9 f these instructins fr examples f differing levels f granularity and sectin 10 f these instructins fr an example f apprtinment f Grss Written Premium. When this field is psitive, it must nt be less than field 150. When this field negative, it must nt be greater than field 150. When either this field r field 220 is negative r zer, set the values in fields 180, 190, 200 and 210 t N/C. When this field and field 220 are psitive and the values in fields 180, 190, 200 and 210 are nt set t N/C, the sum f the amunts in fields 170, 180, 190, 200 and 210 is t equal the amunt in field 220. Reprt the amunt in either USD r GBP accrding t the rules given in subsectin 3.26 f these instructins. D nt reprt the amunt in any ther currency. Cnvert the expiring premium fr nn-gbp nn-usd amunts t GBP at the relevant exchange rate fr the return year, nt at the exchange rate at which the business was written r the exchange rate at which is was advised as new r renewed business in PMDRs in earlier return years. Fr example, 100,000 CHF f premium written n 1/4/2009 wuld have been reprted in the 15 May 2009 t 15 January 2010 PMDRs as 50, f new business (2009 Swiss Franc published PMDR rate 1.97). Assuming the plicy expired n 1/4/2010, it wuld appear in the 15 May January 2011 PMDRs in field 150 as 61, (2010 Swiss Franc published PMDR rate 1.63) nt 50, (2009 Swiss Franc published PMDR rate 1.97). Nte that the December (18) PMDR due n 31 July 2010 wuld recrd a new business premium f 50, while the subsequent December (18) PMDR due n 31 July 2011 wuld recrd an expiry premium f 61, in field 170.

49 49 Expiring 100% Acquisitin Csts 170a Overview The amunt f the 100% Acquisitin Csts charged fr the expiring risk/s, i.e. the acquisitin csts element f field 170. Set the expiring 100% acquisitin cst amunt t the mst up-t-date amunt available. Acquisitin csts will typically be a negative amunt where expiring grss written premium is psitive. Purpse Used by Llyd s t mnitr premium rate mvements fr renewed risks. Frmat A numeric field with up t 18 digits befre the decimal place and up t 4 digits after it. D nt include cmmas r ther separatrs in this field. Fr example, is a valid value whereas 123,456, is nt. Mandatry/Optinal This field is mandatry. Further details and examples When this field is psitive, it must nt be less than field 150. When this field negative, it must nt be greater than field 150. Reprt the amunt in either USD r GBP accrding t the rules given in subsectin 3.26 f these instructins. D nt reprt the amunt in any ther currency. Cnvert the expiring premium fr nn-gbp nn-usd amunts t GBP at the relevant exchange rate fr the return year, nt at the exchange rate at which the business was written r the exchange rate at which it was advised as new r renewed business in PMDRs in earlier return years.

50 50 Change in Expiring 100% Grss Written Premium Due t Change in Limit / Attachment Pint 180 Overview The mnetary amunt (nt percentage) f the change at renewal in the 100% Grss Written Premium charged fr the expiring risk/s that is due t a change in the expiring risk/s' limit/attachment pint and/r deductible. This is based n the expiring year s pricing basis excluding the effect f ther elements f expsure change included in field 200. This field reprts nly the effect f the limit/attachment pint and/r deductible changes n the expsure frm the expiring plicy relating t the risks cvered by the expiring plicy based n the pricing cnditins prevalent when the expiring plicy was written. It is therefre impssible fr any negative change in this field t have a magnitude greater than field 170, either alne, in cmbinatin with field 190 r in cmbinatin with field 190 and field 200. Please see Sectin 14. Changes in limit/attachment pint and/r deductible and changes in breadth f cver must be treated independently. Purpse Used by Llyd s t mnitr premium mvements fr renewed risks. Frmat This field must be either: A numeric field with up t 18 digits befre the decimal place and up t 4 digits after it with n included cmmas r ther separatrs, r The three-character string N/C. Mandatry/Optinal Fr risks renewing n r after 1 January 2011, Llyd s requires that this field must be ppulated with an amunt and nt with N/C. This applies t all risks except thse fr which the current 100% Grss Written Premium is less than r equal t zer r that relate t an adjustment premium. The actual requirement is that a change in expiring 100% Grss Written Premium due t pure rate change amunt (nt N/C ) must be reprted, but since all change fields must equal N/C r nne, the cnsequence f this requirement is that an amunt (nt N/C ) must als be prvided fr the ther change fields, even if that amunt is zer. Managing agents are nt required t prvide nn-zer amunts fr change fields that they are currently unable t ppulate. Hwever, managing agents shuld cntact their Llyd s Underwriting Perfrmance Exec t discuss the prvisin f change in expiring 100% Grss Written Premium due t change in limit / attachment pint if it is nt available fr risks renewing n r after 1 January Fr risks fr which the current 100% Grss Written Premium is less than r equal t zer r that relate t an adjustment premium (see subsectin , subsectin 3.29 and subsectin ), the change in expiring 100% Grss Written Premium due t change in limit / attachment pint must be set t N/C. Further details and examples This field is used by Llyd s t mnitr premium mvements fr renewed risks. Sectin 14 f these instructins gives further infrmatin n hw Llyd s uses this field t mnitr premium rate mvements. Reprt in this field the mnetary amunt (nt percentage) f the impact n the 100% Grss Written Premium charged fr the expiring risk/s f any changes in the limit r attachment pint and/r deductible. Fr example, ignring any ther changes in market cnditins during the term f the plicy, lwering the limit upn renewal shuld increase the Grss Written Premium charged. Similarly, increasing the limit upn renewal shuld increase the Grss Written Premium charged. When field 170 and field 220 are psitive and this field is nt set t N/C, field 170 plus this field must be greater than zer. When field 170 and field 220 are psitive and this field is nt set t N/C, field 170 plus this field plus field 190 must be greater than zer.

51 51 When field 170 and field 220 are psitive and this field is nt set t N/C, field 170 this field plus field 190 plus field 200 plus this field must be greater than zer. Reprt the amunt in either USD r GBP accrding t the rules given in subsectin 3.26 f these instructins. D nt reprt the amunt in any ther currency. Set all f fields 180, 190, 200 and 210 t N/C r nne it is nt acceptable t set sme f these fields t N/C but nt thers.

52 52 Change in Expiring 100% Grss Written Premium Due t Change in Breadth f Cver 190 Overview The mnetary amunt (nt percentage) f the change at renewal in the 100% Grss Written Premium charged fr the expiring risk/s that is due t a change in the expiring risk/s' breadth f cver (e.g. insured perils). This is based n the expiring year s pricing basis excluding the effect f ther elements f expsure change included in field 200. This field reprts nly the effect f peril changes n the expsure frm the expiring plicy relating t the risks cvered by the expiring plicy at the pricing cnditins prevalent when the expiring plicy was written. It is therefre impssible fr any negative change in this field t have a magnitude greater than field 170, either alne, in cmbinatin with field 180 r in cmbinatin with field 180 and field 200. Please see Sectin 14. Changes in breadth f cver and changes in limit/attachment pint and/r deductible must be treated independently. Purpse Used by Llyd s t mnitr premium mvements fr renewed risks. Frmat This field must be either: a numeric field with up t 18 digits befre the decimal place and up t 4 digits after it with n included cmmas r ther separatrs, r the three-character string N/C. Mandatry/Optinal Fr risks renewing n r after 1 January 2011, Llyd s requires that this field must be ppulated with an amunt and nt with N/C. This applies t all risks except thse fr which the current 100% Grss Written Premium is less than r equal t zer r that relate t an adjustment premium. The actual requirement is that a change in expiring 100% Grss Written Premium due t pure rate change amunt (nt N/C ) must be reprted, but since all change fields must equal N/C r nne, the cnsequence f this requirement is that an amunt (nt N/C ) must als be prvided fr the ther change fields, even if that amunt is zer. Managing agents are nt required t prvide nn-zer amunts fr change fields that they are currently unable t ppulate. Hwever, managing g agents shuld cntact their Llyd s Underwriting Perfrmance Exec t discuss the prvisin f change in expiring 100% Grss Written Premium due t change in breadth f cver if it is nt available fr risks renewing n r after 1 January Fr risks fr which the current 100% Grss Written Premium is less than r equal t zer r that relate t an adjustment premium (see subsectin , subsectin 3.29 and subsectin ), the change in expiring 100% Grss Written Premium due t change in breadth f cver must be set t N/C. Further details and examples This field is used by Llyd s t mnitr premium mvements fr renewed risks. Sectin 14 f these instructins gives further infrmatin n hw Llyd s uses this field t mnitr premium rate mvements. Reprt in this field the mnetary amunt (nt percentage) f the impact n the 100% Grss Written Premium charged fr the expiring risk/s f any changes in the breadth f cver. Fr example, ignring any ther changes in market cnditins during the term f the plicy, cvering additinal perils upn renewal shuld increase the Grss Written Premium charged. When field 170 and field 220 are psitive and this field is nt set t N/C, field 170 plus this field must be greater than zer. When field 170 and field 220 are psitive and this field is nt set t N/C, field 170 plus field 180 plus this field must be greater than zer. When field 170 and field 220 are psitive and this field is nt set t N/C, field 170 plus field 180 plus this field plus field 200 must be greater than zer. Reprt the amunt in either USD r GBP accrding t the rules given in subsectin 3.26 f these instructins. D nt reprt the amunt in any ther currency. Set all f fields 180, 190, 200 and 210 t N/C r nne it is nt acceptable t set sme f these fields t N/C but nt thers.

53 53 Change in Expiring 100% Grss Written Premium Due t Other Factrs 200 Overview The mnetary amunt (nt percentage) f the change at renewal in the 100% Grss Written Premium charged fr the expiring risk/s that is due t ther factrs nt cvered in fields 180 and 190. This is based n the expiring year s pricing basis. These may include, inter alia, change in expsures (e.g. sums insured, risk characteristics), claims experience and claims inflatin (frequency, severity). When changes in expsure f the same kind are added (e.g. changes in the indemnity size) these have t be priced n last year s pricing basis, adjusted fr this year s changes in plicy terms. It is therefre impssible fr any negative change in this field t have a magnitude greater than the sum f fields 170, 180 and 190. Please see Sectin 14. Purpse Used by Llyd s t mnitr premium mvements fr renewed risks. Frmat This field must be either: A numeric field with up t 18 digits befre the decimal place and up t 4 digits after it with n included cmmas r ther separatrs, r The three-character string N/C. Mandatry/Optinal Fr risks renewing n r after 1 January 2011, Llyd s requires that this field must be ppulated with an amunt and nt with N/C. This applies t all risks except thse fr which the current 100% Grss Written Premium is less than r equal t zer r that relate t an adjustment premium. The actual requirement is that a change in expiring 100% Grss Written Premium due t pure rate change amunt (nt N/C ) must be reprted, but since all change fields must equal N/C r nne, the cnsequence f this requirement is that an amunt (nt N/C ) must als be prvided fr the ther change fields, even if that amunt is zer. Managing agents are nt required t prvide nn-zer amunts fr change fields that they are currently unable t ppulate. Hwever, managing agents shuld cntact their Llyd s Underwriting Perfrmance Exec t discuss the prvisin f change in expiring 100% Grss Written Premium due t ther factrs if it is nt available fr risks renewing n r after 1 January Fr risks fr which the current 100% Grss Written Premium is less than r equal t zer r that relate t an adjustment premium (see subsectin , subsectin 3.29 and subsectin ), the change in expiring 100% Grss Written Premium due t ther factrs must be set t N/C. Further details and examples This field is used by Llyd s t mnitr premium mvements fr renewed risks. Sectin 14 f these instructins gives further infrmatin n hw Llyd s uses this field t mnitr premium rate mvements. Reprt in this field the mnetary amunt (nt percentage) f the impact n the 100% Grss Written Premium charged fr the expiring risk/s f any ther factrs nt cvered in fields 180 and 190. Other factrs include the effects f expsure, claims inflatin, changes t the characteristics f a risk and claims experience. When field 170 and field 220 are psitive and this field is nt set t N/C, field 170 plus field 180 plus field 190 plus this field must be greater than zer. Reprt the amunt in either USD r GBP accrding t the rules given in subsectin 3.26 f these instructins. D nt reprt the amunt in any ther currency. Set all f fields 180, 190, 200 and 210 t N/C r nne it is nt acceptable t set sme f these fields t N/C but nt thers.

54 54 Change in Expiring 100% Grss Written Premium Due t Pure Rate Change 210 Overview The mnetary amunt (nt percentage) f the change at renewal in the 100% Grss Written Premium charged fr the expiring risk/s that is due t pure rate change. This field reprts the difference between the premium that wuld have been charged n last year s pricing basis adjusted fr limit/attachment pint, breadth f cver and ther factrs (the sum f fields 170, 180, 190 and 200) and the premium that has been charged this year (field 220). Please see Sectin 14. Purpse Used by Llyd s t mnitr premium mvements fr renewed risks. Frmat This field must be either: A numeric field with up t 18 digits befre the decimal place and up t 4 digits after it with n included cmmas r ther separatrs, r The three-character string N/C. Mandatry/Optinal Fr risks renewing n r after 1 January 2011, Llyd s requires that this field must be ppulated with an amunt and nt with N/C. This applies fr all risks except thse fr which the current 100% Grss Written Premium is less than r equal t zer r that relate t an adjustment premium. Managing agents shuld cntact their Llyd s Underwriting Perfrmance Exec t discuss the prvisin f change in expiring 100% Grss Written Premium due t pure rate change if it is nt available fr risks renewing n r after 1 January Fr risks fr which the current 100% Grss Written Premium is less than r equal t zer r that relate t an adjustment premium (see subsectin , subsectin 3.29 and subsectin ), the change in expiring 100% Grss Written Premium due t pure rate change must be set t N/C. Further details and examples This field is used by Llyd s t mnitr premium mvements fr renewed risks. Sectin 14 f these instructins gives further infrmatin n hw Llyd s uses this field t mnitr premium rate mvements. Reprt the amunt in either USD r GBP accrding t the rules given in subsectin 3.26 f these instructins. D nt reprt the amunt in any ther currency. Reprt in this field the mnetary amunt (nt percentage) f the impact n the Grss Written Premium charged fr the expiring risk/s due t the hardening r sftening f market cnditins. Fr example, ignring any ther changes in market cnditins during the term f the plicy, sftening f rates as a result f cmmercial pressures shuld decrease the Grss Written Premium charged (field 220) resulting in a crrespnding negative pure rate change. Set all f fields 180, 190, 200 and 210 t N/C r nne it is nt acceptable t set sme f these fields t N/C but nt thers.

55 55 Current 100% Grss Written Premium 220 Overview The amunt f the 100% Grss Written Premium charged fr the new r renewed risk/s. Set the current 100% premium amunt t the mst up-t-date premium amunt available. See subsectin 3.8 f these instructins fr further details. Purpse Used by Llyd s t mnitr premium mvements fr renewed risks. Frmat A numeric field with up t 18 digits befre the decimal place and up t 4 digits after it. D nt include cmmas r ther separatrs in this field. Fr example, is a valid value whereas 123,456, is nt. Mandatry/Optinal This field is mandatry. Further details and examples This field is used by Llyd s t mnitr premium mvements fr renewed risks. Sectin 14 f these instructins gives further infrmatin n hw Llyd s uses this field t mnitr premium rate mvements. All premium amunts are t crrespnd t the level f granularity used t cmplete the PMDR frm fr that particular (re)insurance cntract. Fr example, fr (re)insurance plicies underwritten in the pen market, reprt premium amunts fr each separate sectin cntained in the (re)insurance plicy. The current 100% Grss Written Premium reprted fr a given sectin is therefre t be the current 100% premium fr that sectin f the plicy nly. See sectin 8 and sectin 9 f these instructins fr examples f differing levels f granularity and sectin 10 f these instructins fr an example f apprtinment f Grss Written Premium. When this field is psitive, it must nt be less than field 160. When this field is negative, it must nt be greater than field 160. When either field 170 r this field is negative r zer, set the values in fields 180, 190, 200 and 210 t N/C. When field 170 and this field are bth psitive and the values in fields 180, 190, 200 and 210 are nt set t N/C, the sum f the amunts in fields 170, 180, 190, 200 and 210 is t equal the amunt in this field. Reprt the amunt in either USD r GBP accrding t the rules given in subsectin 3.26 f these instructins. D nt reprt the amunt in any ther currency.

56 56 Current 100% Acquisitin Csts` 220a Overview The amunt f the 100% Acquisitin Csts charged fr the new r renewed risk/s, i.e. the acquisitin element f field 220. Set the current 100% acquisitin cst amunt t the mst up-t-date amunt available. Acquisitin csts will typically be recrded as a negative amunt where grss written premium is psitive. Purpse Used by Llyd s t mnitr acquisitin csts fr new and renewed risks. Frmat A numeric field with up t 18 digits befre the decimal place and up t 4 digits after it. D nt include cmmas r ther separatrs in this field. Fr example, is a valid value whereas 123,456, is nt. Mandatry/Optinal This field is mandatry. Further details and examples Reprt the amunt in either USD r GBP accrding t the rules given in subsectin 3.26 f these instructins. D nt reprt the amunt in any ther currency.

57 57 Current 100% Benchmark Price 230 Overview This is the 100% premium amunt that needs t be charged fr the new r renewed risk t meet the lss rati frm the apprved SBF. This is expressed as a grss written premium amunt. Purpse Used by Llyd s t mnitr premium adequacy against plan. Nte that Llyd s perfrms this analysis at the syndicate class f business, Llyd s 10 and Llyd s 50 levels. Frmat This field must be either: A numeric field with up t 18 digits befre the decimal place and up t 4 digits after it with n included cmmas r ther separatrs, r The three-character string N/C. Mandatry/Optinal Fr risks incepting r renewing n r after 1 March 2010, Llyd s requires that a current 100% benchmark price be reprted fr risks having an ffshre energy risk cde ( EC, EG, EH, ET r EW ), except thse fr which the current 100% Grss Written Premium is less than r equal t zer r that relate t an adjustment premium. Fr risks incepting r renewing n r after 1 January 2011, Llyd s requires that a current 100% benchmark price be reprted fr all risks, except thse fr which the current 100% Grss Written Premium is less than r equal t zer r that relate t an adjustment premium. Agents shuld cntact their Llyd s Underwriting Perfrmance executive t discuss the prvisin f benchmark prices if they are nt available fr risks incepting r renewing n r after 1 January Fr risks fr which the current 100% Grss Written Premium is less than r equal t zer r that relate t an adjustment premium (see subsectin , subsectin 3.29 and subsectin ), the current 100% benchmark price must be set t N/C. Further details and examples Benchmark price is defined as the price fr the risk at which the managing agent wuld expect t deliver the lss rati specified in the latest apprved business plan. The current 100% benchmark price shuld reflect the premium required t achieve the planned lss rati fr the return year. T revise the planned lss rati fr the return year, submit a new SBF and request that it be apprved (apprval is nt autmatic). A change in the lss rati in the apprved SBF fr the return year changes the current 100% benchmark price figures fr all new/renewed business relating t that return year. When a revised SBF fr the return year is apprved, update current 100% benchmark price values fr all risks fr the year (including risks written prir t apprval f the revised SBF). Reprt the current 100% benchmark price grss f acquisitin csts, i.e. if the risk is being written at the SBF s lss rati assumptin then field 230 = field 220. Reprt the amunt in either USD r GBP accrding t the rules given in subsectin 3.26 f these instructins. D nt reprt the amunt in any ther currency. As part f Llyd s data quality checks, Llyd s mnitrs the number f instances where current 100% benchmark price is set t N/C. Benchmark prices are specific t each syndicate and are nt cmparable acrss syndicates as they are scaled t the apprved SBF fr that syndicate. If a managing agent is calculating the benchmark price using a different definitin frm that prescribed by Llyd s, the managing agent shuld cntact their Underwriting Perfrmance executive t discuss what measures they are undertaking t meet the minimum underwriting standards.

58 58 Expiring Renewed 100% Acquisitin Csts 240 Overview The amunt f the 100% acquisitin csts fr the expiring renewed risk, i.e. the 100% acquisitin cst amunt that wuld have been charged fr the renewed risk with the current year s expsure at last year s pricing basis. This is the 100% acquisitin cst amunt within the 100% grss written premium calculated frm the sum f fields Acquisitin csts will typically be recrded as a negative amunt where grss written premium is psitive. Purpse Used by Llyd s t mnitr the amunt f 100% acquisitin csts charged fr the expiring cntract adjusted fr the renewed expsure n last year's pricing basis t allw rate change t be calculated grss and net f acquisitin csts. Frmat This field must be either: A numeric field with up t 18 digits befre the decimal place and up t 4 digits after it with n included cmmas r ther separatrs, r Mandatry/Optinal This field is mandatry fr renewed risk/s Further details and examples Reprt the amunt in either USD r GBP accrding t the rules given in subsectin 3.26 f these instructins. D nt reprt the amunt in any ther currency.

59 59 5 Reference data 5.1 Exchange rates The PMDR rates f exchange t be used fr cnverting nn-gbp nn-usd currencies t GBP fr any given return year are published in the PMD Return Specificatins. They are the same as thse used t prepare the final prpsed SBFs fr that return year, but if in dubt, use the rates published in the PMD Return Specificatins. 5.2 Other reference data sets The fllwing reference data sets are available fr dwnlad frm the CMR website via the Extract Reference Data buttn n the PMD Hmepage: Currency Cdes fr use in frm 263 (CUR) Risk Cdes (RSK) Risk Expsure Lcatin Cdes (ISO alpha-2, plus tw Llyd's-defined wrldwide cdes) (CTY) Distributin Channel Cdes (DCC) Methd f Placement Cdes (PMC), and Original Currency Cdes fr use in frms 286, 287 and 288 (OCR). Cverhlder PIN cdes (CVH) Central Settlement Numbers (CSC) Dmicile f the Insured (DOI) The currency cdes fr use in frm 263 data set cntains n date infrmatin. The risk cdes data set includes first and last years f accunt. The ther data sets include start and end dates.

60 60 6 Reprting methds - Changes in risk-identifying fields upn renewal 6.1 Intrductin The managing agent must decide which f the pssible methds t use fr PMDR reprting purpses when any f the fllwing risk-identifying fields changes n renewal: syndicate class f business risk cde risk expsure lcatin, and riginal currency. Detailed descriptins f the pssible methds are given in this sectin, but see als subsectin 3.22 f these instructins. An additinal cmplexity in dealing with changes in riginal currency is that there might be a need t cnvert expiring syndicate and 100% premium amunts. When an riginal currency changes n renewal t/frm USD, Llyd s preference is that the expiring syndicate and 100% premium amunts in the riginal currency be cnverted t/frm USD frm/t GBP. When ne nn-usd riginal currency changes n renewal t anther nn-usd riginal currency, the expiring syndicate and 100% premium amunts is already expressed in GBP and n cnversin is necessary. The prcess fr handling the varius pssibilities is described in the fllwing subsectins which use examples with changes in riginal currency. Changes in fields syndicate class f business, risk cde and risk expsure lcatin fllw the same principles but withut the additinal cmplexity f pssible currency cnversin. 6.2 One riginal currency changes t anther with n change in reprting currency Preferred methd When a risk with ne riginal currency renews t a risk with anther riginal currency with n change in the reprting currency, Llyd s preferred methd is that: a renewed (287) recrd is reprted fr the new riginal currency with the expiring syndicate and 100% premium amunts ppulated with the frmer expiring premium amunts and a nt renewed (288) is reprted fr the frmer riginal currency. Preferred methd details Reprt a renewed (287) recrd fr the new riginal currency with: expiring syndicate and 100% premium amunts set t the expiring premium amunts that are in the frmer riginal currency (as the actual amunts are unchanged) change fields (fields ) ppulated, if pssible, in the new riginal currency. Reprt a nt renewed (288) recrd fr the frmer riginal currency with: expiring syndicate and 100% premium amunts set t zer. Example: Expiring 100% GWP 170 GBP renewing t current 100% GWP 412 AUD expressed as 200 GBP (GBP 1 = AUD 2.06)

61 61 Preferred methd PMDR frm Original Currency Cde [140] Expiring 100% Grss Written Premium [170] Change Due t Other Factrs [200] Current 100% Grss Written Premium [220] 287 AUD GBP Alternative methds Tw alternative methds may be used instead f Llyd s preferred methd. Depending n the circumstances: a new (286) recrd may be reprted fr the new riginal currency with a nt renewed (288) fr the frmer riginal currency (methd 1) r a renewed (287) recrd may be reprted fr the new riginal currency with a nt renewed (288) fr the frmer riginal currency (methd 2). Methd 1 Reprt a new (286) recrd fr the new riginal currency. Reprt a nt renewed (288) recrd fr the frmer riginal currency with: expiring syndicate and 100% premium amunts set t the expiring premium amunts that are in the frmer riginal currency. Methd 2 Reprt a renewed (287) recrd fr the new riginal currency with: expiring syndicate and 100% premium amunts set t zer change fields (fields ) set t N/C. Reprt a nt renewed (288) recrd fr the frmer riginal currency with: expiring syndicate and 100% premium amunts set t the expiring premium amunts that are in the frmer riginal currency. Example: Expiring 100% GWP 170 GBP Methd 1 PMDR frm renewing t current 100% GWP 412 AUD expressed as 200 GBP (GBP 1 = AUD 2.06) Original Currency Cde [140] Expiring 100% Grss Written Premium [170] Change Due t Other Factrs [200] Current 100% Grss Written Premium [220] 286 AUD GBP 170 Methd 2 PMDR frm Original Currency Cde [140] Expiring 100% Grss Written Premium [170] Change Due t Other Factrs [200] Current 100% Grss Written Premium [220] 287 AUD 0 N/C GBP 170

62 One riginal currency changes t anther with a change in reprting currency Preferred methd When a risk with ne riginal currency renews t a risk with anther riginal currency with a change in the reprting currency, Llyd s preferred methd is that: a renewed (287) recrd is reprted fr the new riginal currency with the expiring syndicate and 100% premium amunts ppulated with the cnverted expiring premium amunts and a nt renewed (288) is reprted fr the frmer riginal currency. Preferred methd details Define N1and N2 as the expiring syndicate and 100% premium amunts in the frmer riginal currency cnverted t the reprting currency f the new riginal currency. Reprt a renewed (287) recrd fr the new riginal currency with: expiring syndicate and 100% premium amunts set t N1 and N2 (the cnverted expiring premium amunts) change fields (fields ) ppulated, if pssible, in the new riginal currency. Reprt a nt renewed (288) recrd fr the frmer riginal currency with: expiring syndicate and 100% premium amunts set t zer. Example: Expiring 100% GWP 206 AUD expressed as 100 GBP renewing t Preferred methd PMDR frm current 100% GWP 180 USD (GBP 1 = AUD 2.06, GBP 1 = USD 1.50) Original Currency Cde [140] Expiring 100% Grss Written Premium [170] Change Due t Other Factrs [200] Current 100% Grss Written Premium [220] 287 USD AUD Alternative methds Tw alternative methds may be used instead f Llyd s preferred methd. Depending n the circumstances: a new (286) recrd may be reprted fr the new riginal currency with a nt renewed (288) fr the frmer riginal currency (methd 1) r a renewed (287) recrd may be reprted fr the new riginal currency with a nt renewed (288) fr the frmer riginal currency (methd 2). Methd 1 Reprt a new (286) recrd fr the new riginal currency. Reprt a nt renewed (288) recrd fr the frmer riginal currency with: expiring syndicate and 100% premium amunts set t the expiring premium amunts in the frmer riginal currency. Methd 2 Reprt a renewed (287) recrd fr the new riginal currency with: expiring syndicate and 100% premium amunts set t zer change fields (fields ) set t N/C.

63 63 Reprt a nt renewed (288) recrd fr the frmer riginal currency with: expiring syndicate and 100% premium amunts set t the expiring premium amunts in the frmer riginal currency. Example: Expiring 100% GWP 206 AUD expressed as 100 GBP Methd 1 PMDR frm renewing t current 100% GWP 180 USD (GBP 1 = AUD 2.06, GBP 1 = USD 1.50) Original Currency Cde [140] Expiring 100% Grss Written Premium [170] Change Due t Other Factrs [200] Current 100% Grss Written Premium [220] 286 USD AUD 100 Methd 2 PMDR frm Original Currency Cde [140] Expiring 100% Grss Written Premium [170] Change Due t Other Factrs [200] Current 100% Grss Written Premium [220] 287 USD 0 N/C AUD One riginal currency changes t tw with the frmer riginal currency being renewed Preferred methd When a risk with ne riginal currency renews t tw risks, ne with the frmer riginal currency (the renewing riginal currency) and ne with anther riginal currency (the new riginal currency), Llyd s preferred methd is that: a renewed (287) recrd is reprted fr bth the renewing riginal currency and the new riginal currency, with the expiring syndicate and 100% premium amunts ppulated with the frmer expiring premium amunts split between the renewing and new riginal currencies, and if the reprting currency f the new riginal currency differs frm that f the renewing riginal currency, the amunts in the new riginal currency cnverted t the reprting currency f the new riginal currency. Preferred methd details Define R1 and R2 as the expiring syndicate and 100% premium amunts t be expressed in the renewing riginal currency and N1 and N2 as the expiring syndicate and 100% premium amunts t be expressed in the new riginal currency. If the reprting currency f the new riginal currency differs frm that f the renewing riginal currency, cnvert the expiring syndicate and 100% premium amunts t be expressed in the new riginal currency (N1 and N2) t the reprting currency f the new riginal currency. Reprt a renewed (287) recrd fr the renewing riginal currency with: expiring syndicate and 100% premium amunts in the renewing riginal currency (R1 and R2) change fields (fields ) ppulated, if pssible, in the renewing riginal currency. Reprt a renewed (287) recrd fr the new riginal currency with: expiring syndicate and 100% premium amunts in the new riginal currency (N1 and N2) change fields (fields ) ppulated, if pssible, in the new riginal currency.

64 64 Example: Expiring 100% GWP 200 GBP renewing Preferred methd PMDR frm half t current 100% GWP 110 GBP and half t current 100% GWP 165 USD (GBP 1 = USD 1.50) Original Currency Cde [140] Expiring 100% Grss Written Premium [170] Change Due t Other Factrs [200] Current 100% Grss Written Premium [220] 287 GBP USD Alternative methds Three alternative methds may be used instead f Llyd s preferred methd. Depending n the circumstances: new (286) recrds may be reprted fr the renewing and new riginal currencies with a nt renewed (288) recrd fr the renewing riginal currency (methd 1) renewed (287) recrds may be reprted fr the renewing and new riginal currencies with a nt renewed (288) recrd fr the renewing riginal currency (methd 2) r renewed (287) recrds may be reprted fr the renewing and new riginal currencies withut a nt renewed (288) recrd fr the renewing riginal currency (methd 3). Methd 1 Reprt a new (286) recrd fr the renewing riginal currency. Reprt a new (286) recrd fr the new riginal currency. Reprt a nt renewed (288) recrd fr the renewing riginal currency with: expiring syndicate and 100% premium amunts set t the expiring premium amunts that are in the renewing riginal currency. Methd 2 Reprt a renewed (287) recrd fr the renewing riginal currency: expiring syndicate and 100% premium amunts set t zer change fields (fields ) set t N/C. Reprt a renewed (287) recrd fr the new riginal currency with: expiring syndicate and 100% premium amunts set t zer change fields (fields ) set t N/C. Reprt a nt renewed (288) recrd fr the renewing riginal currency with: expiring syndicate and 100% premium amunts set t the expiring premium amunts that are in the renewing riginal currency. Methd 3 Reprt a renewed (287) recrd fr the renewing riginal currency with: expiring syndicate and 100% premium amunts set t the expiring premium amunts that are in the renewing riginal currency change fields (fields ) set t N/C.

65 65 Reprt a renewed (287) recrd fr the new riginal currency with: expiring syndicate and 100% premium amunts set t zer change fields (fields ) set t N/C. Example: Expiring 100% GWP 200 GBP Methd 1 PMDR frm renewing half t current 100% GWP 110 GBP and half t current 100% GWP 165 USD (GBP 1 = USD 1.50) Original Currency Cde [140] Expiring 100% Grss Written Premium [170] Change Due t Other Factrs [200] Current 100% Grss Written Premium [220] 286 GBP USD GBP 200 Methd 2 PMDR frm Original Currency Cde [140] Expiring 100% Grss Written Premium [170] Change Due t Other Factrs [200] Current 100% Grss Written Premium [220] 287 GBP 0 N/C USD 0 N/C GBP 200 Methd 3 PMDR frm Original Currency Cde [140] Expiring 100% Grss Written Premium [170] Change Due t Other Factrs [200] Current 100% Grss Written Premium [220] 287 GBP 200 N/C USD 0 N/C One riginal currency changes t tw with the frmer riginal currency nt being renewed Preferred methd When a risk with ne riginal currency renews t tw risks, bth with anther riginal currency, Llyd s preferred methd is that: a renewed (287) recrd is reprted fr each f the new riginal currencies, with the expiring syndicate and 100% premium amunts ppulated with the frmer expiring premium amunts split between the tw new riginal currencies, and if the reprting currency f either f the new riginal currencies differs frm that f the frmer riginal currency, the amunts in that new riginal currency cnverted t its reprting currency and a nt renewed (288) is reprted fr the frmer riginal currency. Preferred methd details Define 1N1 and 1N2 as the expiring syndicate and 100% premium amunts t be expressed in the first new riginal currency.

66 66 Define 2N1 and 2N2 as the expiring syndicate and 100% premium amunts t be expressed in the secnd new riginal currency. If the reprting currency f the first new riginal currency differs frm that f the frmer riginal currency, cnvert the expiring syndicate and 100% premium amunts in the first new riginal currency (1N1 and 1N2) t the reprting currency f the first new riginal currency. If the reprting currency f the secnd new riginal currency differs frm that f the frmer riginal currency, cnvert the expiring syndicate and 100% premium amunts in the secnd new riginal currency (2N1 and 2N2) t the reprting currency f the secnd new riginal currency. Reprt a renewed (287) recrd fr the first new riginal currency with: expiring syndicate and 100% premium amunts in the first new riginal currency (1N1 and 1N2) change fields (fields ) ppulated, if pssible, in the first new riginal currency. Reprt a renewed (287) recrd fr the secnd new riginal currency with: expiring syndicate and 100% premium amunts in the secnd new riginal currency (2N1 and 2N2) change fields (fields ) ppulated, if pssible, in the secnd new riginal currency. Reprt a nt renewed (288) recrd fr the nn-renewing riginal currency with: expiring syndicate and 100% premium amunts set t zer. Example: Expiring 100% GWP 400 GBP renewing Preferred methd PMDR frm ne quarter t expiring 100% GWP 175 USD and three quarters t current 100% GWP 721 AUD expressed as 350 GBP (GBP 1 = USD 1.50, GBP 1 = AUD 2.06) Original Currency Cde [140] Expiring 100% Grss Written Premium [170] Change Due t Other Factrs [200] Current 100% Grss Written Premium [220] 287 USD AUD GBP Alternative methds Tw alternative methds may be used instead f Llyd s preferred methd. Depending n the circumstances: new (286) recrds may be reprted fr the renewing and new riginal currencies with a nt renewed (288) recrd fr the renewing riginal currency (methd 1) r renewed (287) recrds may be reprted fr the renewing and new riginal currencies with a nt renewed (288) recrd fr the renewing riginal currency (methd 2. Methd 1 Reprt a new (286) recrd fr the first new riginal currency. Reprt a new (286) recrd fr the secnd new riginal currency. Reprt a nt renewed (288) recrd fr the nn-renewing riginal currency with: the expiring syndicate and 100% premium amunts set t the expiring premium amunts in the nn-renewing riginal currency.

67 67 Methd 2 Reprt a renewed (287) recrd fr the first new riginal currency with: expiring syndicate and 100% premium amunts set t zer change fields (fields ) set t N/C. Reprt a renewed (287) recrd fr the secnd new riginal currency with: expiring syndicate and 100% premium amunts set t zer change fields (fields ) set t N/C. Reprt a nt renewed (288) recrd fr the nn-renewing riginal currency with: expiring syndicate and 100% premium amunts set t the expiring premium amunts in the nn-renewing riginal currency. Example: Expiring 100% GWP 400 GBP Methd 1 PMDR frm renewing ne quarter t expiring 100% GWP 175 USD and three quarters t current 100% GWP 721 AUD expressed as 350 GBP (GBP 1 = USD 1.50, GBP 1 = AUD 2.06) Original Currency Cde [140] Expiring 100% Grss Written Premium [170] Change Due t Other Factrs [200] Current 100% Grss Written Premium [220] 286 USD AUD GBP 400 Methd 2 PMDR frm Original Currency Cde [140] Expiring 100% Grss Written Premium [170] Change Due t Other Factrs [200] Current 100% Grss Written Premium [220] 287 USD 0 N/C AUD 0 N/C GBP Tw riginal currencies change t ne with ne riginal currency being renewed Preferred methd When tw risks with different riginal currencies renew t ne risk with ne f the frmer riginal currencies, Llyd s preferred methd is that: a renewed (287) recrd is reprted fr the renewing riginal currency with the expiring syndicate and 100% premium amunts ppulated with the frmer expiring premium amunts cmbined and expressed in the renewing riginal currency and a nt renewed (288) is reprted fr the nn-renewing riginal currency. Preferred methd details Define R1 and R2 as the expiring syndicate and 100% premium amunts in the renewing riginal currency. Define NR1 and NR2 as the expiring syndicate and 100% premium amunts in the nn-renewing riginal currency.

68 68 If the reprting currency f the nn-renewing riginal currency differs frm that f the renewing riginal currency, cnvert the expiring syndicate and 100% premium amunts in the nn-renewing riginal currency (NR1 and NR2) t the reprting currency f the renewing riginal currency. Cmpute the expiring syndicate and 100% premium amunts in the renewing riginal currency by adding: R1 t NR1 t give C1 R2 t NR2 t give C2. Reprt a renewed (287) recrd fr the renewing riginal currency with: expiring syndicate and 100% premium amunts set t the cmputed expiring premium amunts (C1 and C2) change fields (fields ) ppulated, if pssible, in the new riginal currency. Reprt a nt renewed (288) recrd fr the nn-renewing riginal currency with: expiring syndicate and 100% premium amunts set t zer. Example: Expiring 100% GWP 100 GBP and expiring 100% GWP 200 USD renewing t Preferred methd PMDR frm current 100% GWP 390 USD (GBP 1 = USD 1.50) Original Currency Cde [140] Expiring 100% Grss Written Premium [170] Change Due t Other Factrs [200] Current 100% Grss Written Premium [220] 287 USD 350 ( ) GBP Alternative methds Three alternative methds may be used instead f Llyd s preferred methd. Depending n the circumstances: a new (286) recrd may be reprted fr the renewing riginal currency with a nt renewed (288) recrd fr each f the nn-renewing and the renewing riginal currencies (methd 1) a renewed (287) recrd may be reprted fr the renewing riginal currency with a nt renewed (288) recrd fr each f the nn-renewing and the renewing riginal currencies (methd 2) r a renewed (287) recrds may be reprted fr the renewing riginal currency with a nt renewed (288) recrd fr the nn-renewing riginal currency (methd 3). Methd 1 Reprt a new (286) recrd fr the renewing riginal currency. Reprt a nt renewed (288) recrd fr the nn-renewing riginal currency with: expiring syndicate and 100% premium amunts set t the expiring premium amunts that are in the nnrenewing riginal currency. Reprt a nt renewed (288) recrd fr the renewing riginal currency with: expiring syndicate and 100% premium amunts set t the expiring premium amunts that are in the renewing riginal currency. Methd 2 Reprt a renewed (287) recrd fr the renewing riginal currency with: expiring syndicate and 100% premium amunts set t zer change fields (fields ) set t N/C.

69 69 Reprt a nt renewed (288) recrd fr the nn-renewing riginal currency with: expiring syndicate and 100% premium amunts set t the expiring premium amunts that are in the nnrenewing riginal currency. Reprt a nt renewed (288) recrd fr the renewing riginal currency with: expiring syndicate and 100% premium amunts set t the expiring premium amunts that are in the renewing riginal currency. Methd 3 Reprt a renewed (287) recrd fr the renewing riginal currency with: expiring syndicate and 100% premium amunts set t the expiring premium amunts that are in the renewing riginal currency change fields (fields ) set t N/C. Reprt a nt renewed (288) recrd fr the nn-renewing riginal currency with: expiring syndicate and 100% premium amunts set t the expiring premium amunts that are in the nnrenewing riginal currency. Example: Expiring 100% GWP 100 GBP and expiring 100% GWP 200 USD Methd 1 PMDR frm renewing t current 100% GWP 390 USD Original Currency Cde [140] Expiring 100% Grss Written Premium [170] Change Due t Other Factrs [200] Current 100% Grss Written Premium [220] 286 USD GBP USD 200 Methd 2 PMDR frm Original Currency Cde [140] Expiring 100% Grss Written Premium [170] Change Due t Other Factrs [200] Current 100% Grss Written Premium [220] 287 USD 0 N/C GBP USD 200 Methd 3 PMDR frm Original Currency Cde [140] Expiring 100% Grss Written Premium [170] Change Due t Other Factrs [200] Current 100% Grss Written Premium [220] 287 USD 200 N/C GBP 100

70 Tw riginal currencies change t ne with neither riginal currency being renewed Preferred methd When tw risks with different riginal currencies renew t ne risk with neither f the frmer riginal currencies, Llyd s preferred methd is that: a renewed (287) recrd is reprted fr the new riginal currency with the expiring syndicate and 100% premium amunts ppulated with the frmer expiring premium amunts cmbined and expressed in the new riginal currency and a nt renewed (288) is reprted each f the nn-renewing riginal currencies. Preferred methd details Define 1NR1 and 1NR2 as the expiring syndicate and 100% premium amunts in the first nn-renewing riginal currency. Define 2NR1 and 2NR2 as the expiring syndicate and 100% premium amunts in the secnd nn-renewing riginal currency. If the reprting currency f the first nn-renewing riginal currency differs frm that f the new riginal currency, cnvert the expiring syndicate and 100% premium amunts in the first nn-renewing riginal currency (1NR1 and 1NR2) t the reprting currency f the new riginal currency. If the reprting currency f the secnd nn-renewing riginal currency differs frm that f the new riginal currency, cnvert the expiring syndicate and 100% premium amunts in the secnd nn-renewing riginal currency (2NR1 and 2NR2) t the reprting currency f the new riginal currency. Cmpute the expiring syndicate and 100% premium amunts in the new riginal currency by adding: 1NR1 t 2NR1 t give C1 1NR2 t 2NR2 t give C2. Reprt a renewed (287) recrd fr the new riginal currency with: expiring syndicate and 100% premium amunts set t the cmputed expiring premium amunts (C1 and C2) change fields (fields ) ppulated, if pssible, in the new riginal currency. Reprt a nt renewed (288) recrd fr the first nn-renewing riginal currency with: expiring syndicate and 100% premium amunts set t zer. Reprt a nt renewed (288) recrd fr the secnd nn-renewing riginal currency with: expiring syndicate and 100% premium amunts set t zer. Example: Expiring 100% GWP 50 GBP and expiring 100% GWP 150 USD renewing t Preferred methd PMDR frm current 100% GWP 412 AUD expressed as 200 GBP (GBP 1 = USD 1.50, GBP 1 = AUD 2.06) Original Currency Cde [140] Expiring 100% Grss Written Premium [170] Change Due t Other Factrs [200] Current 100% Grss Written Premium [220] 287 AUD 150 ( ) GBP USD 0

71 Alternative methds Tw alternative methds may be used instead f Llyd s preferred methd. Depending n the circumstances: a new (286) recrd may be reprted fr the new riginal currency with a nt renewed (288) recrd fr each f the nnrenewing riginal currencies (methd 1) r a renewed (287) recrd may be reprted fr the new riginal currency with a nt renewed (288) recrd fr each f the nn-renewing riginal currencies (methd 2). Methd 1 Reprt a new (286) recrd fr the new riginal currency. Reprt a nt renewed (288) recrd fr the first nn-renewing riginal currency with: expiring syndicate and 100% premium amunts set t the expiring premium amunts that are in the first nnrenewing riginal currency. Reprt a nt renewed (288) recrd fr the secnd nn-renewing riginal currency with: expiring syndicate and 100% premium amunts set t the expiring premium amunts that are in the secnd nnrenewing riginal currency. Methd 2 Reprt a renewed (287) recrd fr the new riginal currency with: expiring syndicate and 100% premium amunts set t zer change fields (fields ) set t N/C. Reprt a nt renewed (288) recrd fr the first nn-renewing riginal currency with: expiring syndicate and 100% premium amunts set t the expiring premium amunts that are in the first nnrenewing riginal currency. Reprt a nt renewed (288) recrd fr the secnd nn-renewing riginal currency with: expiring syndicate and 100% premium amunts set t the expiring premium amunts that are in the secnd nnrenewing riginal currency. Example: Expiring 100% GWP 50 GBP and expiring 100% GWP 150 USD Methd 1 PMDR frm renewing t current 100% GWP 412 AUD expressed as 200 GBP (GBP 1 = AUD 2.06) Original Currency Cde [140] Expiring 100% Grss Written Premium [170] Change Due t Other Factrs [200] Current 100% Grss Written Premium [220] 286 AUD GBP USD 150

72 72 Methd 2 PMDR frm Original Currency Cde [140] Expiring 100% Grss Written Premium [170] Change Due t Other Factrs [200] Current 100% Grss Written Premium [220] 287 AUD 0 N/C GBP USD 150

73 73 7 Reprting requirements - Binding authrity and lineslip cntracts Frms 286 and Binding authrity and lineslip cntract facility recrds Basic requirement T assist with mnitring capacity utilisatin Llyd s needs t knw hw much incme each syndicate has cmmitted itself t writing; s any IDA element must be reprted in ne r mre facility recrds fr all binding authrity and lineslip cntracts. Fr each binding authrity and lineslip cntract, ne r mre facility recrds with the single risk flag set t N, each representing an aggregatin f risks, must be reprted. In additin, declaratins written under the facility may be reprted with the single risk flag set t Y, but when this is dne, ne r mre facility recrds with the single risk flag set t N must still be reprted( see subsectin 7.1.3). The fllwing table specifies the requirements fr the prvisin f facility recrds. It shws that: fr new binding authrity and lineslip cntracts, new facility recrds are required fr each cmbinatin f risk-identifying fields fr renewed binding authrity and lineslip cntracts: new facility recrds are required fr cmbinatins f risk-identifying fields that are new t the cntract renewed facility recrds are required fr renewing cmbinatins f risk-identifying fields, and nt renewed facility recrds are required fr cmbinatins f risk-identifying fields that have nt renewed, and fr nt renewed binding authrity and lineslip cntracts, nt renewed facility recrds are required fr each cmbinatin f risk-identifying fields. Binding authrity r lineslip cntract Identifying fields Facility recrd required Fr each cmbinatin f: All cmbinatins f: New cntract Renewed cntract Syndicate Class f Business Cde Risk Cde Risk Expsure Lcatin Cde, and Original Currency Cde Dmicile f the Insured Cverhlder PIN Service Cmpany Indicatr New cmbinatins f: Syndicate Class f Business Cde Risk Cde Risk Expsure Lcatin Cde, and Original Currency Cde Dmicile f the Insured Cverhlder PIN Service Cmpany Indicatr New New Current UMR Syndicate Class f Business Cde Risk Cde Risk Expsure Lcatin Cde and Original Currency Cde Dmicile f the Insured Cverhlder PIN Service Cmpany Indicatr

74 74 Binding authrity r lineslip cntract Identifying fields Facility recrd required Fr each cmbinatin f: Renewed cntract Renewed cmbinatins f: Syndicate Class f Business Cde Risk Cde Risk Expsure Lcatin Cde, and Original Currency Cde Dmicile f the Insured Cverhlder PIN Service Cmpany Indicatr Renewed Expiring UMR Current UMR Syndicate Class f Business Cde Risk Cde Risk Expsure Lcatin Cde and Original Currency Cde Dmicile f the Insured Cverhlder PIN Service Cmpany Indicatr Renewed cntract Nt renewed cmbinatins f: Syndicate Class f Business Cde Risk Cde Risk Expsure Lcatin Cde, and Original Currency Cde Dmicile f the Insured Cverhlder PIN Service Cmpany Indicatr Nt renewed Expiring UMR Syndicate Class f Business Cde Risk Cde Risk Expsure Lcatin Cde and Original Currency Cde Nt renewed cntract All cmbinatins f: Syndicate Class f Business Cde Risk Cde Risk Expsure Lcatin Cde, and Original Currency Cde Dmicile f the Insured Cverhlder PIN Service Cmpany Indicatr Nt renewed Dmicile f the Insured Cverhlder PIN Service Cmpany Indicatr

75 Grss Written Premium when declaratins are nt reprted This table specifies the Grss Written Premium t be reprted in the facility recrd when declaratins are nt reprted. Binding authrity r lineslip cntract Single Risk Flag [10] Grss Written Premium reprted The specified cmbinatin f: New N The sum f all amunts already written and thse still t be written under the facility fr Current UMR Syndicate Class f Business Cde Risk Cde Risk Expsure Lcatin Cde and Original Currency Cde Dmicile f the Insured Cverhlder PIN Service Cmpany Indicatr Renewed N The sum f all amunts already written and thse still t be written under the facility fr Expiring UMR Current UMR Syndicate Class f Business Cde Risk Cde Risk Expsure Lcatin Cde and Original Currency Cde Dmicile f the Insured Cverhlder PIN Service Cmpany Indicatr

76 Grss Written Premium when declaratins are reprted This table specifies the Grss Written Premium t be reprted in the facility recrd when declaratins are reprted. Binding authrity r lineslip cntract Single Risk Flag [10] Grss Net Premium Written reprted The specified cmbinatin f: Current UMR New N The amunts still t be written under the facility, and therefre nt yet reprted, fr declaratins having Syndicate Class f Business Cde Risk Cde Risk Expsure Lcatin Cde and Original Currency Cde Dmicile f the Insured Cverhlder PIN Service Cmpany Indicatr Expiring UMR Current UMR Renewed N The amunts still t be written under the facility, and therefre nt yet reprted, fr declaratins having Syndicate class f business cde Risk Cde Risk Expsure Lcatin Cde and Original Currency Cde Dmicile f the Insured Cverhlder PIN Service Cmpany Indicatr In the December (18) PMDR the Grss Written Premium reprted includes the Grss Written Premium fr all declaratins written since submissin f the December (12) PMDR because declaratins with an inceptin date later than the end f the return year cannt be reprted individually Grss Written Premium estimates in facility recrds Llyd s requires that the IDA element be reprted in the facility recrd: t assist with mnitring capacity utilisatin, and s that the Grss Written Premium reprted in frms 286 and 287 crrespnds t the Grss Written Premium reprted in frm 263 which includes IDA. Llyd s des nt mnitr the estimates prvided in facility recrds by cmparing the estimates made at the beginning f a cntract, with the final value f the cntract. Llyd s is cncerned nly that the managing agents prvide the estimates and prvide them as accurately as pssible.

77 Renewed facility recrds Ppulate the change fields ( ) in renewed facility recrds n an estimated basis, since they need t accunt fr the mvement between the actual expiring Grss Written Premium and the estimated current Grss Written Premium. If declaratins recrds are nt being reprted, the change field values reprted are a weighted average f the knwn change field values fr the Grss Written Premium already written and f the estimated change field values fr the Grss Written Premium yet t be written. If declaratins recrds are being reprted, the change field values reprted are the change field values fr the Grss Written Premium yet t be written (the IDA element). Update the change field values each mnth as the Grss Written Premium already written increases and the Grss Written Premium yet t be written becmes mre accurate Inceptin and expiry dates f facility recrds The inceptin date reprted in binding authrity and lineslip cntract facility recrds is the inceptin date f the facility. The expiry date reprted in facility recrds is the expiry date f the facility, nt the latest expiry date f the declaratins t be written under the facility. A warning is issued if the expiry date f the facility is greater than the inceptin date + 15 mnths e.g. a warning wuld be issued if the inceptin date were = and the expiry date were > r if the inceptin date were = r and the expiry date were > Binding authrity and lineslip cntract declaratin recrds Relatinship t facility recrds The declaratins reprted under new and renewed binding authrity r lineslip cntracts may be new, renewed r nt renewed. The declaratins reprted under a nt renewed binding authrity r lineslip cntract must be nt renewed. Neither new nr renewed declaratins may be reprted under a nt renewed binding authrity r lineslip cntract. Declaratins that have expired may be reprted as having: nt renewed renewed as a declaratin under a new r renewed binding authrity r lineslip cntract, r renewed t anther methd f placement. In the latter tw cases, a nt renewed declaratin des nt need t be reprted. Hwever, all reprted declaratins that have nt renewed must be reprted individually as nt renewed.

78 Grss Written Premium in declaratin recrds This table specifies the Grss Written Premium t be reprted in declaratin recrds. Binding authrity r lineslip cntract Single Risk Flag [10] Grss Written Premium reprted The specified cmbinatin f: New Y The amunts already written fr current UMR current syndicate risk id syndicate class f business cde risk cde risk expsure lcatin cde and riginal currency cde Dmicile f the Insured Cverhlder PIN Service Cmpany Indicatr Renewed Y The amunts already written fr expiring UMR expiring syndicate risk id current UMR current syndicate risk id syndicate class f business cde risk cde risk expsure lcatin cde and riginal currency cde Dmicile f the Insured Cverhlder PIN Service Cmpany Indicatr Renewed declaratin recrds Ppulate the change fields ( ) in renewed declaratin recrds t accunt fr the mvement between the expiring Grss Written Premium and the current Grss Written Premium f the declaratin UMRs f declaratins recrds Set the reprted current UMR f each declaratin t the reprted current UMR f the facility recrd fr the binding authrity r lineslip cntract. This allws the facility recrd fr a given binding authrity r lineslip cntract t be linked t the declaratins under that binding authrity r lineslip cntract Inceptin and expiry dates f declaratin recrds The inceptin date reprted in declaratin recrds is t be n later than the expiry date f the binding authrity r lineslip cntract facility and n later than 31/12/yyyy, where yyyy is the year f the inceptin date f the binding authrity r lineslip cntract facility. The expiry date reprted in declaratin recrds is the expiry date f the declaratin.

79 Declaratins with an inceptin date later than 31/12/yyyy It is nt pssible t reprt individually declaratins with an inceptin date later than 31/12/yyyy, where yyyy is the year f the inceptin date f the binding authrity r lineslip cntract facility. The reasn is that validatin M023 requires that the year f the inceptin date be equal t the year f the return perid. Any IDA element fr such declaratins must be reprted in the facility recrd fr the assciated binding authrity r lineslip cntract. In the December (18) PMDR fr yyyy, update the premium amunts in the facility recrd t take accunt f declaratins under the facility with inceptin dates between 01/01/yyyy+1 and 30/06/yyyy+1, fr which the premiums are n lnger estimates but are knwn amunts. Nte that just as declaratins with an inceptin date later than 31/12/yyyy, where yyyy is the year f the inceptin date f the binding authrity r lineslip cntract facility, cannt be reprted as new/renewed in the PMDRs fr yyyy+1, they als cannt be reprted as renewed/nt renewed in the PMDRs fr yyyy+2.

80 80 8 Examples - Binding authrity and lineslip cntracts Frms 263, 286 and 287 These examples illustrate: the level f granularity at which the PMDR frms are t be cmpleted fr binding authrity and lineslip cntracts hw t cmplete frms 263 and 286 fr a binding authrity r lineslip cntract, and the relatinship between frms 263 and 286. Cmpletin f frm 287 is similar t cmpletin f frm 286. The relatinship between frms 263 and 287 is als similar t the relatinship between frms 263 and Binding authrity cntract tw risk cdes, premium estimate variatin, n declaratins Risk details On 1 January 2016 Llyd s syndicate 0001 underwrites a new 12-mnth binding authrity cntract with a Cverhlder wh will write insurance business with expsure in the United States f America. The cntract allws the Cverhlder t write the fllwing types f insurance: directrs and fficers liability fr financial institutins (risk cde D4), and prfessinal indemnity fr legal prfessinals (risk cde E2). As the binding authrity cntract was written n 1 January 2016 data needs t be reprted in the PMDR frms relating t the 2016 return year. These frms are t be cmpleted accrding t the timetable shwn in the diagram belw: 1 Jan 2016 $10m binder signed 15 Mar 2016 Feb 2010 PMD due 15 Jan 2017 Dec 2016 PMD due JAN 2016 FEB 2016 MAR 2016 APR 2016 JAN 2017 JUL Feb 2016 Jan 2016 PMD due 15 Apr 2016 Mar 2016 PMD due 31 Jul 2017 Update f Dec 2016 PMD due Additinal details regarding the binding authrity cntract include: The managing agent expects the Cverhlder t write $10m USD f GPW The managing agent believes that apprximately 80% f this premium will be directrs and fficers liability insurance and the remaining 20% will be prfessinal indemnity fr legal prfessinals All business written by the Cverhlder is allcated t the same syndicate class f business, and Acquisitin csts are 30% f grss premiums written The managing agent elects nt t reprt the declaratins individually but t reprt nly the facility recrds. Cmpleting the January 2016 PMDR frms The January 2016 PMDR frms must be submitted by 15 February When the January PMDR frms are cmpleted, the managing agent has nt received any infrmatin frm the Cverhlder. The values in frms 263 and 286 are therefre based entirely n the managing agent s best estimate f premiums which will be written by the Cverhlder during the year.

81 81 Frm 263 The crrespnding value in frm 263 must agree with the infrmatin reprted in frm 286 (this is ne f the validatin checks that Llyd s perfrms when a file is submitted). The Grss Written Premium reprted in frm 263 must equal the sum f the current syndicate Grss Written Premium in frm 286. As the declaratins cme in mnthly (shwn in field 20), the amunt in field 40 reduces. The sum f fields 20 and 40 shuld equal amunt in field 50 (if ttal estimate remains unchanged). Frm 286 Fr each binding authrity cntract, managing agents must aggregate data and reprt separate recrds fr each cmbinatin f syndicate class f business, risk cde, risk expsure lcatin and riginal currency. In this example there are tw such cmbinatins and therefre there are tw separate recrds in frm 286 as shwn belw: Nte the fllwing features f the data: Fr binding authrity cntract facility recrds, all fields are cmpleted based n the insurance business which is expected t be written under the cntract; the premium fields in frm 286 (i.e. field numbers 160, 220 and 230) therefre represent the ttal amunt f premium expected t be written under the cntract, nt just the premium reprted as written Each recrd represents the estimated premium incme fr many declaratins written via the binding authrity cntract; the single risk flag field is therefre reprted as N Field 40 cntains the UMR fr the binding authrity cntract The inceptin date and expiry date refer t the binding authrity cntract, and As the riginal currency cde is USD, all premium amunts in the frm are given in USD. Cmpleting the February 2016 PMDR The February 2016 PMDR frms must be submitted by 15 March By this time the managing agent has received several brdereaux frm the Cverhlder infrming them that they have written $2m f GWP and that this is apprximately split in the expected prprtins between the tw types f insurance business that the Cverhlder is authrised t write. The managing agent des nt alter their initial estimate that $10m will be written under the binding authrity cntract thrughut the year r that business will be split 80%/20% between the tw classes.

82 82 Frm 263 The value in frm 263 is updated t reflect the premium reprted as written by the Cverhlder. Frm 286 The values in frm 286 fr this binding authrity cntract are unaltered. Mre generally, if the estimate f ttal premium t be written under each cmbinatin f syndicate class f business, risk cde, risk expsure lcatin and riginal currency des nt change then the managing agent des nt need t update the binding authrity cntract value. Cmpleting the March 2016 PMDR The March 2016 PMDR frms must be submitted by 15 April By this time the managing agent has been infrmed that $4m f GWP has been written under the binding authrity cntract. This is less than the managing agent expected and their estimate f the ttal premium which will be written under the cntract is reduced t $8m. Frm 263 This frm needs t be updated t reflect bth the new estimate f premium incme and the updated ntificatin f premiums written. As always, the Grss Written Premium in frm 263 must crrespnd t the sum f the current syndicate Grss Written Premium in frm 286.

83 83 Frm 286 The values in frm 286 need t be updated t reflect this new expectatin f incme. Cmpleting the Mnth PMDR A final update n the status f the binding authrity cntract business relating t the 2017 return year is reprted in the PMDR due n 31 July This PMDR includes changes reprted since the 15 January 2018 PMDR. Nte that the 15 January 2018 PMDR reprted an IDA premium amunt fr the declaratins that had nt yet attached t the binding authrity cntract as at 31 December The December (18) PMDR due n 31 July 2018 des nt include details f the individual declaratins incepting frm 1 January June 2018 and attaching t the 2017 return year. Instead, any premium change is reprted by revising the IDA premium amunt. 8.2 Binding authrity r lineslip cntract ne risk cde, n premium estimate variatin, n declaratins This simple example assumes that: a syndicate writes ne new binder r lineslip nly fr a single risk cde there is an increase in the estimated premium thrugh the curse f the year, and the managing agent elects nt t reprt the declaratins individually but t reprt nly the facility recrd. The diagram shws hw, when n declaratins are reprted, the values in fields in frm 263 change frm mnth t mnth. Frm 263 Frm 286 Curr GWP exc. Cde IDA & B/R Bn/Reb (Grss f Acq Csts) IDA (Grss f GWP Acq Csts) Acq Csts SR Flag Current UMR Current SRI Synd COB Cde Risk Cde REL Cde MP Cde Orig Curr Cde Crnt Synd GWP Crnt Synd Acq Cst a Mnth 1 USD N B0509AA A001 COB1 D4 US BNDR/LNSL USD Mnth 2 USD N B0509AA A001 COB1 D4 US BNDR/LNSL USD Mnth 3 USD N B0509AA A001 COB1 D4 US BNDR/LNSL USD Mnth 4 USD N B0509AA A001 COB1 D4 US BNDR/LNSL USD Mnth 12 USD N B0509AA A001 COB1 D4 US BNDR/LNSL USD Binding authrity r lineslip cntract ne risk cde, n premium estimate variatin, declaratins This simple example assumes that: a syndicate writes ne new binder r lineslip nly fr a single risk cde

84 84 there is an increase in the estimated premium thrugh the curse f the year, and the managing agent elects t reprt the declaratins individually in additin t the facility recrd. The diagram shws hw, when declaratins are reprted, the values in fields in frm 263 and in field 160 f the facility recrd in frm 286 change frm mnth t mnth. Frm 263 Frm 286 Curr GWP exc. Cde IDA & B/R Bn/Reb (Grss f Acq Csts) IDA Grss Acq GWP Csts Acq Csts SR Flag Current UMR Current SRI Synd COB Cde Risk Cde REL Cde MP Cde Orig Curr Cde Crnt Synd GWP Crnt Synd Acq Cst a Mnth 1 USD N B0509AA A001 COB1 D4 US BNDR/LNSL USD Mnth 2 USD N B0509AA A001 COB1 D4 US BNDR/LNSL USD Facility Y B0509AA A002 COB1 D4 US BNDR/LNSL USD Y B0509AA A003 COB1 D4 US BNDR/LNSL USD Y B0509AA A004 COB1 D4 US BNDR/LNSL USD Y B0509AA A005 COB1 D4 US BNDR/LNSL USD Ttal Fac + Decs Mnth 3 USD N B0509AA A001 COB1 D4 US BNDR/LNSL USD Facility Y B0509AA A002 COB1 D4 US BNDR/LNSL USD Y B0509AA A003 COB1 D4 US BNDR/LNSL USD Y B0509AA A004 COB1 D4 US BNDR/LNSL USD Y B0509AA A005 COB1 D4 US BNDR/LNSL USD Y B0509AA A006 COB1 D4 US BNDR/LNSL USD Y B0509AA A007 COB1 D4 US BNDR/LNSL USD 10-1 Y B0509AA A008 COB1 D4 US BNDR/LNSL USD Ttal Fac + Decs Mnth 4 USD N B0509AA A001 COB1 D4 US BNDR/LNSL USD 50-5 Facility Y B0509AA A002 COB1 D4 US BNDR/LNSL USD Y B0509AA A003 COB1 D4 US BNDR/LNSL USD Y B0509AA A004 COB1 D4 US BNDR/LNSL USD Y B0509AA A005 COB1 D4 US BNDR/LNSL USD Y B0509AA A006 COB1 D4 US BNDR/LNSL USD Y B0509AA A007 COB1 D4 US BNDR/LNSL USD 10-1 Y B0509AA A008 COB1 D4 US BNDR/LNSL USD Y B0509AA A009 COB1 D4 US BNDR/LNSL USD 60-6 Y B0509AA A010 COB1 D4 US BNDR/LNSL USD Y B0509AA A011 COB1 D4 US BNDR/LNSL USD 20-2 Y B0509AA A012 COB1 D4 US BNDR/LNSL USD 20-2 Ttal Fac + Decs Mnth 12 USD N B0509AA A001 COB1 D4 US BNDR/LNSL USD 0 0 Facility Y B0509AA A002 COB1 D4 US BNDR/LNSL USD Y B0509AA A003 COB1 D4 US BNDR/LNSL USD Y B0509AA A004 COB1 D4 US BNDR/LNSL USD Y B0509AA A005 COB1 D4 US BNDR/LNSL USD Y B0509AA A006 COB1 D4 US BNDR/LNSL USD Y B0509AA A007 COB1 D4 US BNDR/LNSL USD 10-1 Y B0509AA A008 COB1 D4 US BNDR/LNSL USD Y B0509AA A009 COB1 D4 US BNDR/LNSL USD 60-6 Y B0509AA A010 COB1 D4 US BNDR/LNSL USD Y B0509AA A011 COB1 D4 US BNDR/LNSL USD 20-2 Y B0509AA A012 COB1 D4 US BNDR/LNSL USD 20-2 Y B0509AA A013 COB1 D4 US BNDR/LNSL USD Y B0509AA A014 COB1 D4 US BNDR/LNSL USD Y B0509AA A015 COB1 D4 US BNDR/LNSL USD Y B0509AA A016 COB1 D4 US BNDR/LNSL USD Y B0509AA A017 COB1 D4 US BNDR/LNSL USD Y B0509AA A018 COB1 D4 US BNDR/LNSL USD Y B0509AA A019 COB1 D4 US BNDR/LNSL USD Y B0509AA A020 COB1 D4 US BNDR/LNSL USD Y B0509AA A021 COB1 D4 US BNDR/LNSL USD Y B0509AA A022 COB1 D4 US BNDR/LNSL USD Y B0509AA A023 COB1 D4 US BNDR/LNSL USD Y B0509AA A024 COB1 D4 US BNDR/LNSL USD Y B0509AA A025 COB1 D4 US BNDR/LNSL USD Ttal Fac + Decs

85 85 9 Example Level f granularity package plicy This example illustrates: the level f granularity at which the PMDR frms are t be cmpleted fr business written in the pen market, and the data required t cmplete frm 286. This plicy cntains three material sectins (prperty damage, cntrl f well and energy liability) and s the managing agent reprts the package as a minimum f three separate lines f infrmatin in frm 286. Risk details Llyd s syndicate 0001 is apprached t c-underwrite a package plicy fr the ff-shre energy interests f XYZ Drilling Cmpany Ltd. A single plicy will prvide prperty damage, cntrl f well and liability insurance in three separate sectins: Prperty Damage Sectin Energy Plicy Cntrl f Well Sectin Energy Liability Sectin Upn reviewing the plicy details agreed by the lead underwriter, the managing agent fr syndicate 0001 writes a 15% line n each sectin. The frnt sheet which summarises the prperty damage sectin is shwn in the diagram belw (the highlighted infrmatin is required fr the PMDR). Additinal infrmatin n the plicy includes: the plicy perid is the same fr all sectins f the plicy; the nly different data n these sectins are the risk cde and the premium amunts, and the insured s energy interests are lcated in Nrway s territrial waters.

86 86 Frm 286 As the risk is new t syndicate 0001 it is reprted n frm 286. The fllwing tables shw the data that is reprted n this frm. Nte the fllwing features f the data. The plicy is reprted via three rws in frm 286. Each rw represents ne f the plicy sectins n which the syndicate has participated. As each rw relates t a single risk, the single risk flag is set t Y. The current UMR is identical fr each rw. The UMR must adhere t the frmat set ut in subsectin 3.15 and subsectin 4.2 f these instructins. The current syndicate risk ID is created at the managing agent s discretin. The nly restrictins n this value are that the field length must be less than r equal t 50 characters and that cmma, single qute and duble qute must nt be used. The syndicate class f business cde crrespnds t a syndicate class f business used in the apprved SBF fr the return year implied by the plicy inceptin date. In this example, all sectins are assigned t the same syndicate class f business; hwever there is n requirement fr this t be the case. The risk cdes crrespnd t risk cdes used in the apprved SBF fr the return year implied by the plicy inceptin date. The inceptin date is taken straight frm the cntract sectins. The expiry date is mdified befre being reprted when cmpleting PMDRs the expiry date is defined as the first date n which fr any part r all f the day cver is nt prvided. As the plicy expires n 31 December 2018 (at the end f the day), the first day n which cver is nt prvided fr any part r all f the day is 1 January This date cnventin has been designed s that Llyd s is infrmed f the status f the expiring plicy n the same transactin date fr bth the renewal and nn-renewal scenaris. This helps ensure that renewal and lapse rates can be calculated n a cnsistent basis. The risk expsure lcatin field is Nrway as the risk is lcated in Nrwegian territrial waters. S the risk expsure lcatin cde is set t NO. The risk is written in the pen market via the Llyd s underwriting rm. Therefre, the distributin channel is Llyd s Lndn and the distributin channel cde is set t LNDN. As the syndicate is a Llyd s fllwer, the leader flag is set t N. The methd f placement is Open Market - Direct and the methd f placement cde is set t OPDR. The riginal premium was denminated in Nrwegian Krner. The riginal currency cde is therefre set t NOK. Hwever, the premium amunts reprted fr this risk are nt reprted in the riginal currency f Nrwegian Krner. Premium amunts fr this risk are cnverted t GBP (as explained in subsectin 3.26 f these instructins). The current syndicate Grss Written Premium is the syndicate s share f the Grss Written Premium, expressed in the riginal currency amunts. Fr the prperty damage sectin, the syndicate tk a 15% line and received 15% f the ttal premium. The syndicate s share is therefre 15% x 1,000,000 =

87 87 150,000 Nrwegian Krner. This is cnverted t GBP using the published PMDR exchange rates fr the return year* f the PMDR. The resulting calculatin is 150,000/10.10* = 14, The current 100% Grss Written Premium is the ttal Grss Written Premium fr the sectin. Fr the prperty sectin this is 1,000,000 Nrwegian Krner. This is cnverted t GBP using the frmula 1,000,000 / = 99, The current 100% benchmark price is the Grss Written Premium at which the managing agent shuld deliver their required results, in line with the apprved SBF fr the return year. Syndicate 0001 has reprted a 70% lss rati in their apprved SBF fr the return year fr bth classes f business 10 and 20. Due t cmmercial pressures in the energy prperty market the managing agent believes that a greater premium f 1,200,000 Nrwegian Krner wuld be required t achieve a 70% lss rati fr the prperty damage risk. This is cnverted t GBP befre being reprted using the frmula 1,200,000 / = 118, The ther sectins are thught t be in line with the business plan as given in the apprved SBF fr the return year. * Please nte that the exchange rate used fr NOK is fr illustrative purpses.

88 88 10 Examples Apprtinment f Grss Written Premium These examples illustrate: hw t apprtin Grss Written Premium. Splitting the data reprted by any f the fllwing risk-identifying fields is ptinal: Syndicate Class f Business Cde Risk Cde Risk Expsure Lcatin Cde, and Original Currency Cde. Hwever, when the data is split by any f these risk-identifying fields, Llyd s expects the premium data t be apprtined in a specific manner. Tw f the scenaris belw illustrate hw Llyd s wuld expect the premium data t be cmpleted when the data reprted is split by risk cde and the third scenari illustrates hw Llyd s wuld expect the premium data t be cmpleted when the data reprted is split by risk cde and als by risk expsure lcatin. Example 1 Cnsider a slip which cvers hull and carg risks (75 % premium fr risk cde V and 25% f premium fr risk cde B) with a ttal premium f 1M. Three syndicates, 1, 2 and 3, participate n all risks n the slip in prprtins 25%, 25% and 50% respectively. The syndicates are t reprt their 100% split premium and syndicate share premium as fllws: Syndicate Risk Cde [70] Risk Expsure Lcatin Cde [100] Current Syndicate Grss Written Premium [160] Current 100% Grss Written Premium [220] 1 V QU B QU Syndicate Risk Cde [70] Risk Expsure Lcatin Cde [100] Current Syndicate Grss Written Premium [160] Current 100% Grss Written Premium [220] 2 V QU B QU Syndicate Risk Cde [70] Risk Expsure Lcatin Cde [100] Current Syndicate Grss Written Premium [160] Current 100% Grss Written Premium [220] 3 V QU B QU Example 2 Cnsider a slip which cvers hull and carg risks (75 % premium fr risk cde V and 25% f premium fr risk cde B) with a ttal premium f 1M. Three syndicates participate n the slip but the plicy is sectined s syndicate 1 cvers the entire carg element (risk cde V) and syndicates 2 and 3 cver the hull element (risk cde B). The syndicates are t reprt their 100% split premium and syndicate share premium as fllws:

89 89 Syndicate Risk Cde [70] Risk Expsure Lcatin Cde [100] Current Syndicate Grss Written Premium [160] Current 100% Grss Written Premium [220] 1 V QU Syndicate Risk Cde [70] Risk Expsure Lcatin Cde [100] Current Syndicate Grss Written Premium [160] Current 100% Grss Written Premium [220] 2 B QU Syndicate Risk Cde [70] Risk Expsure Lcatin Cde [100] Current Syndicate Grss Written Premium [160] Current 100% Grss Written Premium [220] 3 B QU Example 3 Cnsider a slip which cvers prperty risks (75 % f premium fr risk cde F3 and 25% f premium fr risk cde P5) with a ttal premium f 1M. 60% f the premium relates t UK prperty with 40% in France. The risk cde level split fr each lcatin matches the verall slip level split. Three syndicates, 1, 2 and 3, participate n all risks n the slip in prprtins 25%, 25% and 50% respectively. The syndicates are t reprt their 100% split premium and syndicate share premium as fllws: Syndicate Risk Cde [70] Risk Expsure Lcatin Cde [100] Current Syndicate Grss Written Premium [160] Current 100% Grss Written Premium [220] 1 F3 UK P5 UK F3 FR P5 FR Syndicate Risk Cde [70] Risk Expsure Lcatin Cde [100] Current Syndicate Grss Written Premium [160] Current 100% Grss Written Premium [220] 2 F3 UK P5 UK F3 FR P5 FR Syndicate Risk Cde [70] Risk Expsure Lcatin Cde [100] Current Syndicate Grss Written Premium [160] Current 100% Grss Written Premium [220] 3 F3 UK P5 UK F3 FR P5 FR

90 90 11 Example Currency cnversin This example illustrates: hw t cmplete frm 263 and frms 286, 287 and 288 with respect t different currencies, and the link between the premium amunts reprted n frms 263 and frms 286 and 287. Backgrund Subsectin 3.26 f these instructins details the currencies and exchange rates that are t be used when preparing the PMDR. Frm 263 This frm cllects premium infrmatin fr the return year at the whle accunt level, as recgnised under a UK GAAP basis. Llyd s requests premium infrmatin n a UK GAAP basis in rder t understand the premium incme figures typically used by managing agents in their internal reprts. The return year is field 50 in the data return file header. Fr example, the return year fr the 15 January 2010 PMDR is 2009 while the return year fr the 15 May 2010 PMDR is The return year fr the December (18) PMDR due n 31 July 2010 is All premiums are t be reprted in either USD r GBP accrding t the fllwing rules: GBP: Reprt in GBP premiums written by the managing agent in GBP USD: Reprt in USD premiums written by the managing agent in USD Other: Cnvert premiums written by the managing agent in currencies ther than GBP and USD t GBP befre reprting them. In additin t the GBP and USD recrds, there is t be a third recrd n frm 263 where all premiums written in nn-gbp currencies, including thse written in USD, are cnverted t GBP befre being aggregated. Identify this recrd by reprting CNV in the currency cde field. Frms 286, 287 and 288 These frms als cllect premium infrmatin fr the return year. The mnetary amunts reprted n these frms are t be based n premiums underwritten withut any accunting adjustments. All premiums are t be reprted in either USD r GBP amunts accrding t the fllwing rules: GBP: Reprt in GBP premiums riginally written in GBP USD: Reprt in USD premiums riginally written in USD Other: Cnvert premiums riginally written in currencies ther than GBP and USD t GBP befre reprting them. Llyd s requires that all premiums reprted in GBP (expiring, renewed and new business) be cnverted based n the return year at the relevant published PMDR rates. Prescribing a fixed exchange rate makes the data easily cmparable mnth n mnth. Since the riginal currency is included in the PMDRs Llyd s is able t rebase the premiums in ur analysis t ensure the PMDRs and the SBF are analysed using the same rates. Link between frm 263 and frm 286 and 287 Llyd s wishes t maintain a link between the ttal premiums reprted in frm 263 and the ttal premiums frm new and renewed risks reprted n frms 286 and 287. The grss premium field 50 shuld match the ttal grss premium in field 160 in frms 286 and 287 while the acquisitin csts in frm 263 field 60 shuld match the acquisitin csts in field 160a in frms 286 and 287. Example Cnsider the fllwing risk which incepts in 2016: grss premium written is 90,000 Suth African Rand (ZAR) premium is denminated in ZAR syndicate has taken a 100% line n this risk, and

91 91 acquisitin csts are 10% f the grss premium written (i.e. 9,000 ZAR). Fr frm 286, Llyd s requests the Grss Written Premium fr the risk. In the riginal currency, this is 90,000 ZAR; hwever premiums written in nn-usd currencies are t be cnverted t GBP fr reprting purpses. Suth African Rand is ne f the nn-usd currencies fr which Llyd s prescribes an exchange rate, s the published PMDR exchange rate fr the return year is used t make the cnversin. Assuming that the published PMDR exchange rate fr the return year is 1 GBP = ZAR*. The Grss Written Premium reprted in frm 286 is therefre 90,000 ZAR / = 5, GBP. The Acquisitin csts are 10% f the premium = GBP. When the premium fr this risk is actually received by the managing agent it has been cnverted int the settlement currency by Xchanging at the prevailing rate f exchange. In this example, the prevailing rate f exchange used by Xchanging is 1 GBP = ZAR s the grss premium written is 90,000 ZAR / = 5, GBP and acquisitin csts are GBP. The grss written premium reprted in PMDR shuld be 5, nt 5, * Please nte that the exchange rates used are fr illustrative purpses. Frm 263 Fr the purpses f this example, we shall assume that the risk abve is the nly ne that has been written and that there is n binder IDA. Frm 286 If this risk were t be renewed ne year later, the expiring grss premium reprted wuld be the equivalent f 90,000 ZAR. Hwever, assuming the ZAR rate fr the fllwing year s PMDR is 1 GBP = ZAR*, the expiring premium wuld be reprted as 6, GBP. If we assume the renewed premium amunt fr the fllwing year was 100,000 ZAR, this wuld als be cnverted at the ZAR exchange rate as 7, GBP. This apprach insures that all premium amunts in the fllwing year s return are n the same exchange rate basis. * Please nte that the exchange rates used are fr illustrative purpses.

92 92 12 Examples Multi-year plicies These examples illustrate: hw t cmplete frms 286, 287 and 288 in respect f multi-year plicies. Backgrund Multi-year plicies are defined as plicies fr which the plicy perid (defined by the inceptin and expiry dates) exceeds 18 mnths. N ptin t re-sign Fr a multi-year plicy fr which there is n ptin t re-sign the plicy n a regular basis: reprt the inceptin and expiry dates that define the full multi-year perid reprt the full premium amunts fr the entire multi-year term defined by the inceptin and expiry dates, and reprt the plicy as new business r a renewal in the return year crrespnding t its inceptin year and nt again until the return year crrespnding t its expiry year at the end f the full perid when it renews n r after the expiry date (reprt as a renewal) r expires n the expiry date (reprt as nt renewed). Optin t re-sign Fr a multi-year plicy fr which there is an ptin t re-sign the plicy n a regular basis, Llyd s preference is that the managing agent reprts the plicy as abve (see Example 2), but if an accurate Grss Written Premium can be reprted nly fr a shrter perid e.g. the perid up t the next re-signing, it is acceptable t reprt a part-term plicy as fllws (see Example 3): reprt the re-signing date as the inceptin date and the date f the next re-signing as the expiry date reprt the premium amunts nly fr the perid specified by the reprted inceptin and expiry dates, and reprt the plicy again as a renewal at the date f the next re-signing. In bth methds, the premium amunts reprted must crrespnd t the perid defined by the inceptin and expiry dates. These cncepts are illustrated in the wrked examples given belw. Example 1 N ptin t re-sign On 1 January 2019 the managing agent acting n behalf f syndicate 0001 writes a new insurance plicy giving three years f cver starting n 1 January 2019 and ending at midnight n 31 December The insured will pay a premium f $3,000,000 fr the insurance plicy which is written in such a way that there is n ptin t re-sign during the three-year term. Because there is n ptin t re-sign, the risk is reprted nly in the PMDRs relating t the 2019 return year. The premium amunts reprted are fr the entire perid f the plicy. The relevant values in frm 286 are as fllws. Frm 286

93 93 Nte the fllwing features f the data: the plicy is new and therefre reprted n frm 286 the inceptin date and expiry date define the full multi-year term; the expiry date is given as in line with the instructin n expiry dates given in subsectin 3.20 and subsectin 4.2 f these instructins the premium amunts fr the full three years f cver are reprted i.e. the plicy in-frce perid and the premium amunts crrespnd, and the plicy is reprted as new premium nly in the 2019 return year. The plicy expires n 1/1/2022 and, if it is nt renewed, there will be a recrd fr the expiry in frm 288 in the January 2022 PMDR due in February Example 2 Optin t re-sign Cnsider a risk that is identical t that given in example 1 except that: the insurance cntract includes the ptin t re-sign the plicy n 1 January 2020 and 1 January 2021 and review the premiums and plicy terms and cnditins the insured pays $1,000,000 fr the first year f cver and, subject t review n the re-signing dates, will pay a further $1,000,000 fr each f the subsequent years f cver, and the agent is able t reprt the plicy as if there were n ptin t re-sign. Because the risk is being reprted as if there were n ptin t re-sign, the risk is reprted nly in the PMDRs relating t the 2019 return year. The premium amunts reprted are fr the entire perid f the plicy. The risk is therefre reprted in the same way as described in example 1. Nte the fllwing features f the data: the plicy is new and therefre reprted n frm 286 the inceptin date and expiry date define the term up t the next re-signing date; the expiry date is given as in line with the instructins n expiry dates given in subsectin 3.20 and subsectin 4.2 f these instructins the premium amunts are fr the perid f cver reprted i.e. between the plicy inceptin and the next re-signing date, and the plicy is reprted as new premium nly in the 2019 return year. If it is re-signed in 2020 and 2021 it will appear as a renewed risk.

94 94 The plicy expires n 1/1/2022 and, if it is nt renewed, there will be a recrd fr the expiry in frm 288 in the January 2022 PMDR due in February Example 3 Optin t re-sign Cnsider a risk that is identical t that given in example 1 except that: the insurance cntract includes the ptin t re-sign the plicy n 1 January 2020 and 1 January 2021 and review the premiums and plicy terms and cnditins the insured pays $1,000,000 fr the first year f cver and, subject t review n the re-signing dates, will pay a further $1,000,000 fr each f the subsequent years f cver, and the agent is nt able t reprt the plicy as if there were n ptin t re-sign s reprts the plicy as a series f ne-year re-signings in successive return years. This example is based n USD figures; hence the expiring and renewed premium amunts in 2019, 2020 and 2021 are the same because the figures are nt being restated in punds at the different exchange rates fr each return year. Because the risk is being reprted as three separate ne-year plicies, the risk is reprted in the 2019 return year PMDR as a new plicy and in the 2020 and 2021 return year PMDRs as ne-year renewals. Assuming that the managing agent des re-sign the plicy withut changing the terms and cnditins, the relevant values are as fllws. Frm 286 relating t the 2019 return year Nte the fllwing features f the data: in 2019 the plicy is new and therefre reprted n frm 286 the inceptin date and expiry date define the first ne-year perid t the date f the first re-signing, and

95 95 the premium amunts fr the first year f cver nly are reprted i.e. the plicy in-frce perid and the premium amunts crrespnd. Frm 287 relating t the 2020 return year Nte the fllwing features f the data: in 2020 the plicy is renewed and therefre reprted n frm 287 the inceptin date and expiry date define the secnd ne-year perid which fllws the first re-signing the premium fr the secnd year f cver nly is reprted i.e. the plicy in-frce perid and the premium crrespnd, and as the managing agent has nt amended the premium r plicy terms and cnditins the change fields (fields ) are all set t 0. Frm 287 relating t the 2021 return year Nte the fllwing features f the data: in 2021 the plicy is renewed and therefre reprted n frm 287 the inceptin date and expiry date define the third ne-year perid which fllws the secnd re-signing the premium fr the third year f cver nly is reprted i.e. the plicy in-frce perid and the premium crrespnd, and as the managing agent has nt amended the premium r plicy terms and cnditins the change fields (fields ) are all set t 0. The plicy expires n 1/1/2022 and, if it is nt renewed, there will be a recrd fr the expiry in frm 288 in the January 2012 PMDR due in February 2022.

96 96

97 97 13 Distributin channel cde Fr reprting years 2009 t 2015, a service cmpany ptin was included within the distributin channel field 120. In cases where business was written by a service cmpany, this required a set f distributin channel specific rules t be in place t priritise whether the service cmpany r distributin channel data wuld be reprted thrugh field 120. Fr 2016 reprting year nwards, a separate service cmpany field 135 has been added t PMDR. Field 120 nw reprts just the distributin channel fr the cntract while field 135 independently reprts the service cmpany indicatr.

98 98 14 Example Calculatin f risk-adjusted rate change This example illustrates: the principles behind the calculatin f risk-adjusted rate change, grss and net f acquisitin csts the calculatin f benchmark price Risk details On 1 January 2020 Llyd s syndicate 0001 renews a 12 mnth marine hull plicy. The riginal plicy incepted n 1 January 2019 and had a term f 12 mnths. The fllwing details are relevant t the renewed and expiring plicies: fr the shipping interests f XYZ Carg Ltd n bth the expiring plicy and the new plicy the managing agent is the Llyd s slip leader and has written a 60% line last year 100k was the ttal grss amunt charged fr the plicy; the syndicate s share f this Grss Written Premium was 60k. Acquisitin csts were 20%, i.e. 12k fr the syndicate share and 20k fr the 100% acquisitin csts this year 120k is the ttal grss amunt charged fr the plicy; the syndicate s share f this Grss Written Premium is 72k. Acquisitin csts were 25%, i.e. 18k syndicate share and 30k 100% upn renewal, there have been a number f changes in the terms and cnditins f the plicy as well as the general underwriting envirnment: at the request f the plicyhlder the deductible has been significantly decreased the plicyhlder has als requested that additinal perils be added t the plicy the effects f inflatin have substantially increased the cst f hull repairs during the last year due t cmmercial pressures in the marine insurance market, premium rates have sftened during the year and The renewed plicy is estimated as being written at a grss lss rati (GLR = ultimate grss claims/ultimate grss written premium) f 70% against an apprved SBF GLR f 60% Cmpleting Frm 287: Fields 10 t 160 Fields 10, , 160 and 160a are the same fields that are present in frm 286. There are als three additinal fields (numbered 20, 30 and 150) which are cmpleted with reference t the expiring plicy. The diagram belw shws the values that are reprted in all these fields fr the risk abve. Single Risk Flag Expiring UMR Expiring Syndicate Risk ID Current UMR Current Syndicate Risk ID Syndicate Class f Business Cde Risk Cde Inceptin Date Expiry Date Risk Expsure Lcatin Cde Y B1234ABC5678 XYZCARG09 B1234DEF9012 XYZCARG10 10 T US Dmicile f the Insured Llyd's Slip Leader Flag Distributin Channel Cde Cverhlder PIN Methd f Placement Cde Service Cmpany Indicatr Original Currency Cde Expiring Syndicate GWP Current Syndicate GWP Current Syndicate Acq Csts a UK Y LDLN AAA OPDR N GBP

99 99 Cmpleting Frm 287: Fields 170 t 240 Field 170 Expiring 100% Grss Written Premium In this field the managing agent reprts the 100% Grss Written Premium fr the expiring risk. As stated in the risk details abve, this is 100k. Field 170a Expiring 100% Acquisitin Csts In this field the managing agent reprts the 100% Acquisitin csts fr the expiring risk. As stated in the risk details abve, acquisitin csts are 20% f the expiring Grss Written Premium f 100K, i.e. 20k. Please nte, this is reprted as a negative number. Field 180 Change in expiring 100% Grss Written Premium due t change in limit / attachment pint The limit has decreased. In the absence f any ther changes in plicy terms r market cnditins this wuld increase the amunt charged fr the plicy. The underwriter estimates that the effect f the decreased limit wuld have been t increase the 100% Grss Written Premium fr the risks cvered by last year s plicy by apprximately 40k. Field 190 Change in expiring 100% Grss Written Premium due t change in breadth f cver (e.g. perils insured) An extra peril has extended the plicy cverage. The underwriter estimates that the effect f the additinal perils wuld have been t increase the 100% Grss Written Premium by apprximately 20k last year. Field 200 Change in expiring 100% Grss Written Premium due t ther factrs (e.g. expsure, claims experience, claims inflatin and ther risk characteristics) The effects f inflatin have substantially increased the cst f hull repairs during the last year. In rder t cver this increased cst in claims alne, the 100% Grss Written Premium wuld have increased by an additinal 20k after taking int accunt the changes specified in fields 180 and 190. Field 210 Change in expiring 100% Grss Written Premium due t pure rate change Increasing cmpetitin has led t a sftening in rates. Due t these cmmercial pressures the underwriter charged 60k less than they wuld therwise have charged fr the 100% Grss Written Premium after taking int accunt the changes specified in fields (nte field 210 is negative). Please nte that this is the grss pure rate change. Sectin 14.2 deals with hw net f acquisitin csts pure rate change is calculated. Field 220 Current 100% Grss Written Premium The managing agent reprts the 100% Grss Written Premium charged fr the renewed risk. As stated in the risk details, this is 120k. Field 220a Current 100% Acquisitin Csts This is the 100% Acquisitin Cst amunt charged fr the renewed risk. As stated in the risk details, this is 25% f the 120k Grss Written Premium, i.e. 30k. Please nte that this is reprted as a negative number. Field 230 Current 100% Benchmark Price This is the 100% Grss Written Premium amunt that wuld need t be charged t meet the Grss Lss Rati in the syndicate s apprved SBF. As stated in the risk details, the risk is being written at an estimated GLR f 70% at 120k GWP against an SBF lss rati f 60% and s Benchmark Price = {70%/60%}* 120k = 140k. Field 240 Expiring Renewed 100% Acquisitin Csts This is the 100% Acquisitin Cst fr the expiring risk adjusted fr the expsure at renewal but at the expiring pricing basis, i.e. Acquisitin Cst element f [170] + [180] + [190] + [200]. Last year, acquisitin csts were 20% s ={ }*20% = 36k. This is reprted as a negative number.

100 Risk Adjusted Rate Change (Grss Basis) The diagram belw illustrates hw the premium charged fr the risk has changed based n the 100% Grss Written Premium in fields 170 t 220. Relatinship between field 220 and fields The fllwing relatinship between fields 220 and fields must hld: Field 220 = Fields ( ) In this way the fields cmbine t describe hw the 100% grss written premium charged fr the risk has changed at renewal. Allcating Premium t these fields Llyd s understands that sme pricing mdels, particularly thse based n multiplicative methds; d nt prduce utput that is directly cmpatible with the infrmatin requested in fields Managing agents must ensure that field 210, the change in expiring 100% Grss Written Premium due t grss pure rate change, is cmpleted accurately. Grss Premium Metrics calculated by Llyd s This sectin describes hw Llyd s uses the infrmatin in frm 287 t mnitr grss premium changes fr renewed risks. One measure f premium change is cmparing grss written premium (GWP) incme this year with last year, which is calculated using the frmula: Grss Premium Change = Field Field 170 In this example, the premium change is: Grss Premium change = 120k 1 = +20% 100k

101 101 Althugh this measure can give a gd indicatin f GWP changes acrss the market, it is very basic and cmbines the effects f the changes in plicy terms and market cnditins that have ccurred at renewal. Because f this, Llyd s primary measure is the risk-adjusted rate change (RARC). RARC strips ut the effects f all changes ther than thse due t the sftening r hardening f market cnditins and can be calculated n either a grss f acquisitin csts basis (custmer/insured perspective) r net f acquisitin csts basis (underwriter perspective). Field 210 recrds the grss RARC amunt as it recrds a grss written premium change but a net f acquisitin cst RARC can be calculated (see sectin 14.2). T understand hw the grss risk-adjusted rate change percentage is calculated, cnsider the diagram belw. The sum f fields 170,180,190 and 200 is in effect the price (in GWP) that wuld have been charged last year based n the terms, cnditins and expsure f the current cntract, while the sum f fields 170, 180, 190, 200 and 210 ( = 220) is the premium actually charged this year. Risk-adjusted rate change (Grss) = GWP charged this year GWP charged fr this year s cverage last year GWP charged fr this year s cverage last year Risk-adjusted rate change (Grss) = Field 220 Fields ( ) Fields ( ) but Field 220 = Fields ( ) Therefre Risk-adjusted rate change (Grss) = Fields ( ) Fields ( )

102 102 Risk-adjusted rate change (Grss) = Field 210 Fields ( ) Risk-adjusted rate change (Grss) = Field Fields ( ) In this example, the risk-adjusted rate change is: Risk-adjusted rate change (Grss) = 120k 1 i.e. 120K ( 60k) Risk-adjusted rate change (Grss) = 120k 1 = 33.3% 180k The grss risk-adjusted rate change shws that, nce adjustments have been made fr the varius changes t the plicy terms, there has been a cnsiderable fall in the renewed grss written premium as a result f cmmercial pressures rather than the rise indicated by the grss premium change. Nte als the interpretatin f the fields in PMDR: Grss Written Premium charged fr last year s expsure adjusted fr change in deductible, limit and perils based n last year s pricing = Fields ( ) and Grss Written Premium charged fr this year s expsureadjusted fr change in deductible, limit and perils with ther changes (including expsure) based n last year s pricing = Fields ( ) Given that these fields represent premium amunts then: Fields ( ) > 0 and Fields ( ) > 0 In additin, the values in fields 180 and 190 represent the effects f deductible, attachment pint, limit and peril changes n the riginal expsure f the cntract. While there is in principle n limit t the psitive change that can be reprted in these fields, any negative changes cannt reduce the grss premium related t last year s expsure t zer r less than zer. The fllwing cnditins therefre als hld: Fields ( ) > 0 and Fields ( ) > 0

103 Risk Adjusted Rate Change (Net Basis) The previus sectin described the calculatin f Risk Adjusted Rate Change based n Grss Written Premium. This Grss RARC will be the standard measure that Llyd s will use ging frward t mnitr risk adjusted rate change. PMDR als cllects data n acquisitin cst changes n renewal and s a Net RARC can als be calculated based n Grss Net Premium (GNP - Grss Written Premium net f Acquisitin Csts). This metric will be affected by changes in acquisitin csts n renewal. The riginal frmat PMDR data frm reprting years 2009 t 2015 cllected data net f acquisitin csts and s the Net RARC calculated frm the pst 2015 data will allw RARC t be calculated n a basis cmparable t the histric PMDR. Grss RARC is a custmer/insured centric view f rate change as it lks at the change n renewal f the premium that the insured pays. Net RARC lks at the change in the premium that the underwriter receives after brkerage. Grss RARC and Net RARC will be identical where the acquisitin cst percentage fr the expiring and renewed risks are the same. RARC (Grss) = GWP charged this year GWP charged fr this year s cverage last year GWP charged fr this year s cverage last year RARC (Net) = GNP charged this year GNP charged fr this year s cverage last year (GNP charged fr this year s cverage last year) RARC (Net) = {[220]+[220a]} {[170]+[180]+[190]+[200]+[240]} {[170]+[180]+[190]+[200]+[240]} But [220] = [170]+[180]+[190]+[200]+[210] RARC (Net) = {[220]+[220a]} {[220]-[210]+[240]} {[220]-[210]+[240]} RARC (Net) = {[220a]+[210]-[240]} {[220]-[210]+[240]} The fllwing graphs illustrate Grss RARC and Net RARC based n the figures in the example risk. The Net RARC is a mre negative number than the Grss RARC as the percentage that the acquisitin csts make f the renewed grss premium has increased.

104 104

105 Example Current 100% benchmark price This example illustrates: Hw t cmplete the current 100% benchmark price field in frms 286 and 287. Risk details Cnsider the situatin in which a syndicate s class f business (COB) is made up f tw distinct subclasses, each with a different planned grss ultimate lss rati (GULR). The SBF details nly a planned ULR fr the syndicate s COB. The expected mix f business f the tw subclasses determines the GULR fr the COB in the business plan as given in the apprved SBF fr the return year. An example is given in the diagram belw: Syndicate COB 70% planned ULR (as apprved in SBF) 1m f premium 1m f premium Subclass A 60% planned ULR Subclass B 80% planned ULR In this example, the current 100% benchmark price fr each risk is the grss written premium required t achieve the planned 70% COB GULR. The current 100% benchmark price is nt t reflect: the planned lss rati f the subclasses (A and B abve), r ther internal measures f pricing adequacy used by the managing agent, including targets acrss an underwriting cycle. Nte als that since the current 100% benchmark price is based n the lss ratis in the business plan as given in the apprved SBF fr the return year, the apprval f a new SBF fr the return year with different lss ratis fr sme classes affects the current 100% benchmark price figures fr all cntracts related t thse classes. The re-calculated current 100% benchmark prices are t appear in the next PMDR submitted fr the syndicate fllwing the apprval f a new SBF fr the return year.

106 106