GIM7060 - Equalisation reserves: classes other than credit business: calculation
»Ê¹ÚÌåÓýapp methods of calculating the equalisation reserve are set out in INSPRU 1.4.20 onwards.
»Ê¹ÚÌåÓýapp figures that are used in the equalisation reserve calculations are net of reinsurance, so that, for example ‘net claims incurredâ€� means claims arising from events occurring during the year (including direct claims handling expenses) net of reinsurance recoveries and other recoveries such as salvage.
In the case of a non-UK resident company within the equalisation reserves regulatory rules operating through a UK branch the calculations are made by reference to UK business only.