LLD 15 Annex 4 R Certificate by syndicate actuary (see LLD 15.9.1R(3))

1

The certificate required by LLD 15.9.1 R (3) to be signed by the syndicate actuary appointed to a syndicate in which members carry on long-term insurance business must state:

(1)

whether in his opinion, proper records have been kept by the managing agent adequate for the purpose of the valuation of the liabilities of the syndicate;

(2)

whether the sum of the mathematical reserves and the deposits received from reinsurers as shown in Form 14 constitute proper provision at the end of the financial year for the long-term insurance liabilities1 where these liabilities:

(a)

include any increase in liabilities arising from a distribution of surplus as a result of an investigation as at the end of the financial year into the financial condition of the long-term insurance business; and

(b)

include all liabilities arising from deposit back arrangements1;

but exclude liabilities which had fallen due before the end of the financial year, other than those arising from deposit back arrangements;

(3)

whether the liabilities have been valued in accordance with LLD 16 to 241 in the context of assets valued in accordance with LLD 16 to 241, as shown in Form 14;

(4)

by way of a list, the professional guidance that has been complied with;

(5)

whether in his opinion, premiums for contracts entered into during the financial year and the income earned on them are sufficient on reasonable actuarial assumptions, taking into account other financial resources of the members and the Society that are available for the purpose, to enable the members to meet their commitments and, in particular, to establish adequate mathematical reserves; and

(6)

whether the amounts in Form 60 are accurate.

2

If the syndicate actuary considers it necessary, such qualification, amplification or explanation as may be appropriate must be added to the certificate.