»Ê¹ÚÌåÓýapp

»Ê¹ÚÌåÓýapp RITC remains a feature of Lloyd’s and is likely to do so while the annual venture concept exists and each year’s syndicate is a separate legal entity.

Before annual accounting, the RITC was an expense in the underwriting account of the syndicate for the closing year and a receipt (not an opening provision) in the underwriting account of the following year’s syndicate.

Run-off syndicates are required to make an estimate of future liabilities (see LLM2070), that is, a provision, and revisit it every year until they are able to pay an RITC.

A single member corporate syndicate cannot technically pay a reinsurance premium to itself. Lloyd’s rules deem the provision for known and unknown liabilities of a closing year of account to be an RITC.

»Ê¹ÚÌåÓýapp annual account balance sheet will show a provision for future liabilities, part of which represents those liabilities assumed under an RITC. »Ê¹ÚÌåÓýapp amount of the RITC received and paid will be shown in the syndicate underwriting year accounts (LLM2210).