CONDENSED CONSOLIDATED BALANCE SHEET AXIS Ventures Reinsurance Limited As at December 31, 2017 expressed in United States Dollars LINE No. 2017 2016 1. CASH AND CASH EQUIVALENTS 459,330,422 180,902,578 2. QUOTED INVESTMENTS: (a) Bonds and Debentures i. Held to maturity ii. Other (b) Total Bonds and Debentures - - (c) Equities i. Common stocks ii. Preferred stocks iii. Mutual funds (d) Total equities - - (e) Other quoted investments (f) Total quoted investments - - 3. UNQUOTED INVESTMENTS: (a) Bonds and Debentures i. Held to maturity ii. Other (b) Total Bonds and Debentures - - (c) Equities i. Common stocks ii. Preferred stocks iii. Mutual funds (d) Total equities - - (e) Other unquoted investments (f) Total unquoted investments - - 4. INVESTMENTS IN AND ADVANCES TO AFFILIATES (a) Unregulated entities that conduct ancillary services (b) Unregulated non-financial operating entities (c) Unregulated financial operating entities (d) Regulated non-insurance financial operating entities (e) Regulated insurance financial operating entities (f) Total investments in affiliates - - (g) Advances to affiliates (h) Total investments in and advances to affiliates - - 5. INVESTMENTS IN MORTGAGE LOANS ON REAL ESTATE: (a) First liens (b) Other than first liens (c) Total investments in mortgage loans on real estate - - 6. POLICY LOANS 7. REAL ESTATE: (a) Occupied by the company (less encumbrances) (b) Other properties (less encumbrances) (c) Total real estate - - 8. COLLATERAL LOANS 9. INVESTMENT INCOME DUE AND ACCRUED 10. ACCOUNTS AND PREMIUMS RECEIVABLE: (a) In course of collection (b) Deferred - not yet due (c) Receivables from retrocessional contracts 30,995,750 15,495,093 (d) Total accounts and premiums receivable 30,995,750 15,495,093 11. REINSURANCE BALANCES RECEIVABLE: (a) Foreign affiliates (b) Domestic affiliates (c) Pools & associations (d) All other insurers (e) Total reinsurance balance receivable - - 12. FUNDS HELD BY CEDING REINSURERS
CONDENSED CONSOLIDATED BALANCE SHEET AXIS Ventures Reinsurance Limited As at December 31, 2017 expressed in United States Dollars LINE No. 2017 2016 13. SUNDRY ASSETS: (a) Derivative instruments (b) Segregated accounts companies - long-term business - variable annuities (c) Segregated accounts companies - long-term business - other (d) Segregated accounts companies - general business (e) Deposit assets (f) Deferred acquisition costs 472,663 (g) Net receivables for investments sold (h) Other Sundry Assets (Specify) (i) Other Sundry Assets (Specify) (j) Other Sundry Assets (Specify) (k) Total sundry assets - 472,663 14. LETTERS OF CREDIT, GUARANTEES AND OTHER INSTRUMENTS (a) Letters of credit (b) Guarantees (c) Other instruments (e) Total letters of credit, guarantees and other instruments - - 15. TOTAL 490,326,172 196,870,334 TOTAL INSURANCE RESERVES, OTHER LIABILITIES AND STATUTORY CAPITAL AND SURPLUS 16. UNEARNED PREMIUM RESERVE (a) Gross unearned premium reserves 3,053,641 6,826,199 (b) Less: Ceded unearned premium reserve i. Foreign affiliates ii. Domestic affiliates iii. Pools & associations iv. All other insurers (c) Total ceded unearned premium reserve - - (d) Net unearned premium reserve 3,053,641 6,826,199 17. LOSS AND LOSS EXPENSE PROVISIONS: (a) Gross loss and loss expense provisions 133,650,395 20,909,569 (b) Less : Reinsurance recoverable balance i. Foreign affiliates ii. Domestic affiliates iii. Pools & associations iv. All other reinsurers (c) Total reinsurance recoverable balance - - (d) Net loss and loss expense provisions 133,650,395 20,909,569 18. OTHER GENERAL BUSINESS INSURANCE RESERVES 19. TOTAL GENERAL BUSINESS INSURANCE RESERVES 136,704,036 27,735,768 LONG-TERM BUSINESS INSURANCE RESERVES 20. RESERVE FOR REPORTED CLAIMS 21. RESERVE FOR UNREPORTED CLAIMS 22. POLICY RESERVES - LIFE 23. POLICY RESERVES - ACCIDENT AND HEALTH 24. POLICYHOLDERS' FUNDS ON DEPOSIT 25. LIABILITY FOR FUTURE POLICYHOLDERS' DIVIDENDS 26. OTHER LONG-TERM BUSINESS INSURANCE RESERVES 27. TOTAL LONG-TERM BUSINESS INSURANCE RESERVES (a) Total Gross Long-Term Business Insurance Reserves - - (b) Less: Reinsurance recoverable balance on long-term business (i) Foreign Affiliates (ii) Domestic Affiliaties (iii) Pools and Associations (iv) All Other Insurers (c) Total Reinsurance Recoverable Balance - - (d) Total Net Long-Term Business Insurance Reserves - -
CONDENSED CONSOLIDATED BALANCE SHEET AXIS Ventures Reinsurance Limited As at December 31, 2017 expressed in United States Dollars LINE No. 2017 2016 OTHER LIABILITIES 28. INSURANCE AND REINSURANCE BALANCES PAYABLE 29. COMMISSIONS, EXPENSES, FEES AND TAXES PAYABLE 30. LOANS AND NOTES PAYABLE 31. (a) INCOME TAXES PAYABLE (b) DEFERRED INCOME TAXES 32. AMOUNTS DUE TO AFFILIATES 3,866,497 2,526,788 33. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES 2,517,361 316,541 34. FUNDS HELD UNDER REINSURANCE CONTRACTS: 35. DIVIDENDS PAYABLE 36. SUNDRY LIABILITIES: (a) Derivative instruments (b) Segregated accounts companies (c) Deposit liabilities (d) Net payable for investments purchased (e) Other sundry liabilities (specify) (f) Other sundry liabilities (specify) (g) Other sundry liabilities (specify) (h) Total sundry liabilities - - 37. LETTERS OF CREDIT, GUARANTEES AND OTHER INSTRUMENTS: (a) Letters of credit (b) Guarantees (c) Other instruments (d) Total letters of credit, guarantees and other instruments - - 38. TOTAL OTHER LIABILITIES 6,383,858 2,843,329 39. TOTAL INSURANCE RESERVES AND OTHER LIABILITIES 143,087,894 30,579,097 CAPITAL AND SURPLUS 40. TOTAL CAPITAL AND SURPLUS 347,238,278 166,291,237 41. TOTAL 490,326,172 196,870,334 TRUE TRUE - -
CONDENSED CONSOLIDATED STATEMENT OF INCOME AXIS Ventures Reinsurance Limited As at December 31, 2017 expressed in United States Dollars LINE No. 2017 2016 GENERAL BUSINESS UNDERWRITING INCOME 1. GROSS PREMIUMS WRITTEN (a) Direct gross premiums written (b) Assumed gross premiums written 106,593,519 39,984,327 (c) Total gross premiums written 106,593,519 39,984,327 2. REINSURANCE PREMIUMS CEDED 3. NET PREMIUMS WRITTEN 106,593,519 39,984,327 4. INCREASE (DECREASE) IN UNEARNED PREMIUMS 3,772,558 (2,845,128) 5. NET PREMIUMS EARNED 110,366,077 37,139,199 6. OTHER INSURANCE INCOME 7. TOTAL GENERAL BUSINESS UNDERWRITING INCOME 110,366,077 37,139,199 GENERAL BUSINESS UNDERWRITING EXPENSES 8. NET LOSSES INCURRED AND NET LOSS EXPENSES INCURRED 125,764,212 3,760,423 9. COMMISSIONS AND BROKERAGE 19,921,980 7,357,627 10. TOTAL GENERAL BUSINESS UNDERWRITING EXPENSES 145,686,192 11,118,050 11. NET UNDERWRITING PROFIT (LOSS) - GENERAL BUSINESS (35,320,115) 26,021,149 LONG-TERM BUSINESS INCOME 12. GROSS PREMIUMS AND OTHER CONSIDERATIONS: (a) Direct gross premiums and other considerations (b) Assumed gross premiums and other considerations (c) Total gross premiums and other considerations - - 13. PREMIUMS CEDED 14. NET PREMIUMS AND OTHER CONSIDERATIONS: (a) Life (b) Annuities (c) Accident and health (d) Total net premiums and other considerations - - 15. OTHER INSURANCE INCOME 16. TOTAL LONG-TERM BUSINESS INCOME - - LONG-TERM BUSINESS DEDUCTIONS AND EXPENSES 17. CLAIMS - LIFE 18. POLICYHOLDERS' DIVIDENDS 19. SURRENDERS 20. MATURITIES 21. ANNUITIES 22. ACCIDENT AND HEALTH BENEFITS 23. COMMISSIONS 24. OTHER 25. TOTAL LONG-TERM BUSINESS DEDUCTIONS AND EXPENSES - - 26. INCREASE (DECREASE) IN POLICY RESERVES (ACTUARIAL LIABILITIES): (a) Life (b) Annuities (c) Accident and health (d) Total increase (decrease) in policy reserves - -
CONDENSED CONSOLIDATED STATEMENT OF INCOME AXIS Ventures Reinsurance Limited As at December 31, 2017 expressed in United States Dollars LINE No. 2017 2016 27. TOTAL LONG-TERM BUSINESS EXPENSES - - 28. NET UNDERWRITING PROFIT (LOSS) - LONG-TERM BUSINESS - - 29. COMBINED NET UNDERWRITING RESULTS BEFORE THE UNDERNOTED ITEMS (35,320,115) 26,021,149 UNDERNOTED ITEMS 30. COMBINED OPERATING EXPENSE (a) General and administration 752,886 626,514 (b) Personnel cost (c) Other (d) Total combined operating expenses 752,886 626,514 31. COMBINED INVESTMENT INCOME - NET 3,469,722 1,005,901 32. COMBINED OTHER INCOME (DEDUCTIONS) 33. COMBINED INCOME BEFORE TAXES (32,603,279) 26,400,536 34. COMBINED INCOME TAXES (IF APPLICABLE): (a) Current (b) Deferred (c) Total - - 35. COMBINED INCOME BEFORE REALIZED GAINS (LOSSES) (32,603,279) 26,400,536 36. COMBINED REALIZED GAINS (LOSSES) 37. COMBINED INTEREST CHARGES 38. NET INCOME (32,603,279) 26,400,536
CONDENSED CONSOLIDATED STATEMENT OF CAPITAL AND SURPLUS AXIS Ventures Reinsurance Limited As at expressed in LINE No. 2017 2016 1. CAPITAL: December 31, 2017 United States Dollars (a) Capital Stock (i) Common Shares 120,000 2,470,468 authorized 120,000 shares of par value $ 1.000 each issued and fully paid 120,000 shares (ii) (A) Preferred shares: 4,530,913 - authorized 11,880,000 shares of par value $ 1.000 each issued and fully paid 4,530,913 shares aggregate liquidation value for 2017 347,118,278 2016 166,171,237 (B) Preferred shares issued by a subsidiary: authorized shares of par value each issued and fully paid shares aggregate liquidation value for 2017 2016 (iii) Treasury Shares repurchased value shares of par each issued (b) Contributed surplus 373,239,653 152,845,688 (c) Any other fixed capital (i) Hybrid capital instruments (ii) Guarantees and others (iii) Total any other fixed capital - - (d) Total Capital 377,890,566 155,316,156 2. SURPLUS: (a) Surplus - Beginning of Year 10,975,081 (20,885,109) (b) Add: Income for the year (32,603,279) 26,400,536 (c) (d) Less: Dividends paid and payable Add (Deduct) change in unrealized appreciation (depreciation) of investments (e) Add (Deduct) change in any other surplus (9,024,090) 5,459,654 (f) Surplus - End of Year (30,652,288) 10,975,081 3. MINORITY INTEREST 4. TOTAL CAPITAL AND SURPLUS 347,238,278 166,291,237
Part I: General Note to the Condensed Consolidated General Purpose Financial Statements 1. Ultimate Ownership AXIS Ventures Reinsurance Limited (the Company ) is a Bermuda exempted Class 3A insurance company, registered as a segregated accounts company under the Segregated Accounts Companies Act 2000 (the SAC Act ). The Company was incorporated on November 5, 2013 and commenced operations on December 31, 2013. Since inception, the Company established seven segregated accounts for operations, being Cell 0001, Cell 0002, Cell 0003, Cell 0004, Cell 0005, Cell 0006 and Cell 0007 (the Cells ). Cell 0001, which commenced operations in 2013, was closed during the year ended 2015. Cell 0003, which commenced operations in 2015, was closed during the year ended 2017. The Company writes reinsurance contracts on a fully collateralized basis, each of which is linked to a particular segregated account established by the Company. All of the voting common shares of the Company are owned by AXIS Ventures Limited (the Insurance Manager ), a Bermuda exempted company and indirect wholly owned subsidiary of AXIS Capital Holdings Limited ( AXIS Capital ). The Company issues non-voting redeemable preferred shares to third party investors to fund the segregated accounts. 2. General Nature of Risks Underwritten The type of business written or assumed by the segregated accounts is primarily short-tail reinsurance, which may include, at varying stages of the Company s development, property catastrophe, property, agriculture, marine and other select lines. Cells 0001 and 0003 each wrote a retrocession contract with AXIS Specialty Limited ( ASL ), an indirect and wholly owned subsidiary of AXIS Capital, under which it assumes a quota share percentage of certain excess of loss business (including aggregate excess of loss business) with exposure principally in Australia and New Zealand. Cell 0002 originally wrote a retrocession contract with ASL, under which it assumed a portion of certain quota share and stop loss agriculture risks with exposure in the U.S. and Canada. This contract was commuted. In 2016, a new retrocession contract with ASL was written for primarily property catastrophe business. The same contract was renewed in 2017. Cell 0004, Cell 0005, Cell 0006 and Cell 0007 each wrote a retrocession contract with ASL, under which it assumes a quota share percentage of losses occurring covered under certain property catastrophe business with worldwide exposure during a defined annual period; in return, the segregated cells will receive the same quota share percentage of premiums received by ASL for business that is in-force during any part of the defined annual period, adjusted to account for the seasonality of exposure falling within the defined period.
3. Accounting Standards and Principles The condensed consolidated general purpose financial statements have been prepared in accordance with the accounting principles prescribed or permitted by the Insurance Act 1978 of Bermuda, including amendments thereto, and related regulations. The basis of preparation differs significantly from generally accepted accounting principles with respect to the recognition basis of certain material accounts, as well as the overall financial statement presentation and footnote disclosure content. The preparation of these condensed consolidated financial statements requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. While management believes that the amounts included in the condensed consolidated financial statements reflect its best estimates and assumptions, actual results could differ from those estimates. The Company s principal estimate is the reserve for loss and loss expenses. 4. Significant Accounting Policies The following are the significant accounting policies adopted by the Company: (a) Cash and Cash Equivalents Cash equivalents include money-market funds and fixed interest deposits placed with a maturity of under 90 days when purchased. Cash and cash equivalents are recorded at amortized cost, which approximates fair value due to the short-term, liquid nature of these securities. Our restricted cash balance relates to funds held in trust to support our collateralized reinsurance transactions. (b) Premiums Written and Acquisition Costs Reinsurance premiums written are recorded at the time the cedant reports them to us, which corresponds to the inception dates of the underlying treaties that the cedant writes. Reinsurance premiums are earned evenly over the period during which we are exposed to the underlying risk, which is generally one year. Unearned premiums represent the portion of premiums written which is applicable to the unexpired risks under contracts in force. Acquisition costs vary with and are directly related to the acquisition of reinsurance contracts and consist primarily of fees and commissions and premium taxes. Premiums receivable are presented net of applicable acquisition costs when contract terms provide for the right of offset. Acquisition costs are expensed as premiums are written.
(c) Loss and Loss Expense Provision The loss and loss expense provision represents an estimate of the unpaid portion of the ultimate liability for losses and loss expenses for reinsured events that have occurred at or before the Condensed Consolidated Balance Sheet date. The balance reflects both claims that have been formally reported ( case reserves ) and claims that have been incurred but not yet reported ( IBNR ). These amounts are reduced for estimated amounts of salvage and subrogation recoveries. Provisions for losses and loss expenses are reviewed on a quarterly basis. Case reserves are primarily established based on amounts formally reported from reinsured. Management estimates IBNR after reviewing detailed actuarial analyses and applying informed judgment regarding qualitative factors that may not be fully captured in the actuarial estimates. A variety of actuarial methods are utilized in this process. The Company s estimate is highly dependent on management s judgment as to which method(s) are most appropriate for a particular accident year and class of business. The Company s claims data is often supplemented with industry benchmarks when applying these methodologies. Any adjustments to previous provisions for losses and loss expenses estimates are recognized in the period they are determined. While management believes that reserves for losses and loss expenses are adequate, this estimate requires significant judgment and new information, events or circumstances may result in ultimate losses that are materially greater or less than provided for in the Condensed Consolidated Balance Sheet. (d) Interest Income Interest income earned on cash and cash equivalents is accrued to the balance sheet date. (e) Income Taxes At the present time, no income, profit or capital gains taxes are levied in Bermuda. In the event that such taxes are levied, the Company has received an undertaking from the Bermuda Government exempting it from all such taxes until March 31, 2035. 5. Basis of Recognition of Premium, Investment and Commission Income Commission income N/A Premium income see Note 4(b) Investment income see Note 4(d) 6. Foreign Exchange Translation The Company s reporting currency is the U.S. dollar. In translating the financial results of our segregated accounts where the functional currency is other than the U.S. dollar, assets and liabilities are converted into U.S. dollars using the rates of exchange in effect at the balance sheet dates and revenues and expenses are converted using average foreign exchange rates for
the period. The effect of translation adjustments is reported as part of the contributed surplus component of capital. 7. Foreign Exchange Control Restrictions N/A 8. Contingencies or Commitments N/A 9. Default on Credit Agreements N/A 10. Dividends N/A 11. Loans to Related Parties N/A 12. Retirement Benefits N/A 13. Fair Value of Investments N/A 14. The Maturity Profile of Investments N/A 15. Related Party Transactions The Board of Directors of the company is comprised of officers of wholly-owned AXIS Capital subsidiaries and are not personally compensated by the Cells or the Company. The reinsurance contracts written by the Cells are assumed from a wholly-owned AXIS Capital subsidiary. As a result, the reinsurance premiums balances receivable presented on the Balance Sheet represents an amount due from a related party. Such amounts are settled quarterly as premiums are received by the reinsured. Pursuant to an agreement, the Manager provides general insurance management services to the Cells in return for an underwriting fee and a profit commission based on the results of the reinsurance contract assumed. As a result, the underwriting fee presented in the Condensed Consolidated Statement of Income is a related party transaction and the related amount shown as a liability in the Condensed Consolidated Balance Sheet is due to a related party. While the underwriting fee is settled quarterly in conjunction with premium receipts, the profit commission will be paid after commutation of the related reinsurance contract. 16. Subsequent events During the first quarter of 2018, Cell 0004 redeemed 368 of the outstanding Class D non-voting redeemable preferences shares for total proceeds of $34,552. During the first quarter of 2018, Cell 0005 redeemed 30,359 of the outstanding Class E nonvoting redeemable preferences shares for total proceeds of $2,897,675. During the first quarter of 2018, Cell 0002 redeemed 141,757 of the outstanding Class B nonvoting redeemable preferences shares for total proceeds of $5,954,730
During the first quarter of 2018, Cell 0006 issued additional 2,868,912 of the outstanding Class F non-voting redeemable preferences shares for total proceeds of $ 300,024,000. 17. Other information None Part II: Notes to the Condensed Consolidated Balance Sheet 1. Cash and Cash Equivalents As of December 31, 2017, $458,801,728 of the Company s cash and cash equivalents were held in trust for the benefit of the Company s affiliated cedants and to support its fully collateralized reinsurance transactions. 2. Quoted Investments N/A 3. Unquoted Investments N/A 4. Investment In and Advances to Affiliates N/A 5. Investment In Mortgage Loans on Real Estate N/A 6. Policy Loans N/A 7. Real Estate N/A 8. Collateral Loans N/A 9. Investment Income Due and Accrued N/A 10. Accounts and Premiums Receivable As of December 31, 2017, the Company had a $30,995,750 receivable for net premiums due from an affiliated company. 11. Reinsurance Balances Receivable N/A 12. Funds Held by Ceding Reinsurers N/A 13. Sundry Assets Deferred Acquisition Costs See Part I, Note 4(b) 14. Letter of Credit, Guarantees and Other N/A 15. Not Used 16. Unearned Premiums See Part I, Note 4(b)
17. Loss and Loss Expense Provisions See Part I, Note 4(c) (a) The following table presents a reconciliation of the beginning and ending gross and net loss and loss expense provisions for the current year: Gross loss and loss expense provisions at beginning of year $ 20,909,569 Less: Reinsurance balances receivable at beginning of year - Net loss and loss expense provisions at beginning of year 20,909,569 Net incurred losses and loss expenses: Current year 126,601,349 Prior years (837,137) Total net incurred losses and loss expenses 125,764,212 Net losses and loss expenses paid or payable related to: Current year (4,239,910) Prior years (9,147,215) Total losses and loss expenses paid or payable (13,387,125) Foreign exchange and other 363,739 Net loss and loss expense provisions at end of year 133,650,395 Add: Reinsurance balances receivable at end of year - Gross loss and loss expense provisions at end of year $ 133,650,395 2017 (b) Reasons for the Change in Net Losses Incurred and Net Loss Expenses The provision for losses and loss expenses incurred during the current year primarily relates to weather based events that impacted Cell 0006 and Cell 0007. (c) Loss and Loss Expense Provisions (i) Total restricted assets refer to Part II - 1 (ii) Unsecured policyholder obligations N/A 18. Not Used 19. Not Used 20. Reserves for Reported Claims refer to Part II - 17 21. Reserves for Unreported Claims refer to Part II - 17
22. Policy Reserves Life N/A 23. Policy Reserves Accident and Health N/A 24. Policyholder s Funds on Deposit N/A 25. Liability for Future Policyholders Dividends N/A 26. Other Insurance Reserves Long-Term N/A 27. Total Long-Term Business Insurance Reserves N/A 28. Insurance and Reinsurance Balance Payable N/A 29. Commissions, Expenses, Fees and Taxes Payable N/A 30. Loans and Notes Payable N/A 31. Income Taxes Payable N/A 32. Amounts Due to Affiliates Pursuant to an underwriting and management services agreement between the Company and the Insurance Manager, the Company will pay underwriting fees and profit commission in respect of the covered contracts applicable to the Cells. As of December 31, 2017 underwriting fees payable totaled $2,740,364 and profit commission payable totaled $1,124,934. The Company will promptly reimburse the Insurance Manager for any expenses paid by the Insurance Manager on behalf of the Company. The amounts due to affiliates do not have a maturity date and do not bear interest. During August 2014, an AXIS Capital affiliate advanced $1,200 to the Company, which remains outstanding as of December 31, 2017. 33. Accounts payable and accrued liabilities Accounts payable and accrued liabilities consist of operating expenses payable. 34. Funds held under reinsurance contracts N/A 35. Dividends payable N/A 36. Sundry liabilities N/A 37. Letters of credit, guarantees, and other instruments N/A
Part III: Notes to the Condensed Consolidated Statement of Income 6. Other insurance income N/A 15. Other insurance income N/A 37. combined other income (deductions) N/A 41. Realized gains N/A Part IV: Notes to the Condensed Consolidated Statement of Capital and Surplus 1(a).Capital Stock Authorized 12,000,000 shares at $/AUD 1.00 par value each. Common shares issued 120,000 common shares of par value US $1.00 each. Preferred shares - Cell 0002 issued and fully paid 1,271,508 Class B preference shares of par value US $1.00 each. - Cell 0004 issued and fully paid 3,322 Class D preference shares of par value US $1.00 each. - Cell 0005 issued and fully paid 69,998 Class E preference shares of par value US $1.00 each. - Cell 0006 issued and fully paid 686,085 Class F preference shares of par value US $1.00 each. - Cell 0007 issued and fully paid 2,500,000 Class G preference shares of par value US $1.00 each. The terms of the Company s preferred shares do not provide for liquidation at a fixed value. Thus, the aggregate liquidation value presented herein is equal to the total consolidated capital and surplus amount pertaining to the preferred shares. Other Disclosures: Change in Issued Capital Stock and Contributed Surplus Transactions in issued capital stock and contributed surplus during the year ended December 31, 2017, are as follows:
Cell 0001 Cell 0002 Shares $ Par Value $ Contributed Surplus Shares $ Par Value $ Contributed Surplus Opening balance - - - 1,271,508 1,271,508 48,755,536 Subscriptions - - - Redemptions - - - Capital reduction - - - - - - Closing balance - - - 1,271,508 1,271,508 48,755,536 Shares Cell 0003 Converted to US D Cell 0004 $ Contributed $ Par $ Par Value Surplus Shares Value $ Contributed Surplus Opening balance 94,750 72,395 4,440,217 26,565 26,565 2,629,935 Opening - Adjustment 75,689 57,830 5,725,278 Subscriptions - - - Redemptions (170,439) (130,225) (12,892,320) (23,243) (23,243) (2,301,057) Currency Translation Adjustment - - 2,726,825 - - - Capital reduction - - - - - - Closing balance - - - 3,322 3,322 328,878 Cell 0005 Cell 0006 Shares $ Par Value $ Contributed Surplus Shares $ Par Value $ Contributed Surplus Opening balance 420,000 420,000 41,580,000 560,000 560,000 55,440,000 Subscriptions 126,085 126,085 14,285,431 Redemptions (350,002) (350,002) (34,650,199) - - - Capital reduction - - - - - - Closing balance 69,998 69,998 6,929,801 686,085 686,085 69,725,431
Shares Cell 0007 $ Par Value AVRL General Account $ Contribued S urplus S hares $ Par Value $ Contribue d Surplus Opening balance - - - 120,000 120,000 - Subscriptions 2,500,000 2,500,000 247,500,000 - - - Redemptions - - - - - - Capital reduction - - - - - - Closing balance 2,500,000 2,500,000 247,500,000 120,000 120,000 - (b) Contributed Surplus: Cell 0002 - $ 48,755,536 Cell 0004 - $ 328,878 Cell 0005 - $ 6,929,801 Cell 0006 - $ 69,725,431 Cell 0007 - $247,500,000 (c) Dividends Paid and Payable N/A