LLD 15.3 Content and form of the Lloyd's Return1

In preparing the Lloyd's Return, the Society must:

1. (1)

   complete the forms in LLD 15 Annex 1 R, subject to LLD 15 to LLD 25, following the requirements of and making the disclosures required under Appendices 9.1, 9.2, 9.3 and 9.4 of IPRU(INS), as if in the documents referred to in those Appendices references to an insurer were references to the Society and members, and adapting the requirements in those Appendices where necessary;1

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2. (2)

   complete the forms in LLD 15 Annex 1 R using standard accounting classes as set out in LLD 15 Annex 6 R where the forms require reporting by accounting class;

3. (3)

   report treaty reinsurance general business falling in accounting classes 9 to 10 as set out in LLD 15 Annex 6 R in Forms 28 and 29 in LLD 15 Annex 1 R by reference to the categories in the underlying accounting classes; and

4. (4)

   complete forms 13, 14, 40-60 in LLD 15 Annex 1 R for each long-term insurance business syndicate.

1. (1)

   Where a reinsurance contract in LLD 15.3.1 R (3) covers more than one underlying accounting class as set out in LLD 15 Annex 6 R it must be apportioned between accounting classes in the way that best reflects its underlying composition.

2. (2)

   However, where the apportionment in (1) cannot be made with reasonable accuracy or without disproportionate effort, then the contract must be allocated to the accounting class as set out in LLD 15 Annex 6 R that most closely reflects its underlying composition.

3. (3)

   Whether apportioned under (1) or allocated under (2), a consistent approach must be taken to reporting:

   1. (a)

      the progress of a treaty in subsequent years; and

   2. (b)

      substantially similar insurance business in subsequent years.

4. (4)

   Where a different policy is subsequently followed a suitable explanatory note must be provided.

If, during the financial year in question, the Society has agreed to, or carried out, a material connected party transaction, it must provide a brief description of that transaction by way of a supplementary note to the Lloyd's Return.

The description to be provided under LLD 15.3.3 R must state:

1. (1)

   the names of the transacting parties;

2. (2)

   a description of the connection between the parties;

3. (3)

   a description of the transaction;

4. (4)

   the amounts involved;

5. (5)

   any other elements of the transaction needed for an understanding of its effect or potential effect upon the financial position of the Society; and

6. (6)

   amounts written off in the period in respect of debts due to or from transacting parties which are connected parties.

Transactions with the same connected party may be disclosed on an aggregated basis unless separate disclosure is needed for a proper understanding of the effect of the transactions upon the financial position of the Society.