Circular 04/22: Review of Open Policy Years

TO THE MEMBERS
REVIEW OF OPEN POLICY YEARS 2019
Policy Year
At their meeting in May 2022, the Directors closed the 2019 policy year. The deficit was transferred to the reserves.
2020 Policy Year
The 2020 policy year has improved slightly due to reductions on a handful of large claims. Nevertheless, the year is expected to close with a deficit. No supplementary premium is expected for this year.
2021 Policy Year
After twelve months, the cost of notified claims for the 2021 policy year is reasonably high due to those large claims shared through the International Group Pooling mechanism. The Club’s own large claims experience has been reasonably benign. However, there have been a large number of Covid-related claims during the year. No supplementary premium is expected for this year.
Review of the Year
The Directors approved the Report and Financial Statements for the year ended 20th February 2022. A detailed summary of the Club’s financial results and an explanation of the development of the most recent policy years is contained in the separate publication “2022 Review of theYear” accompanying this circular.
Yours faithfully,
THE MANAGERS
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UK Circular 4 22 696 KB
27/05/2022
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Review of the Year 2022 1 MB
27/05/2022
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Review of the Year 2022
27/05/2022
The Club’s financial position remains strong with free reserves of $488 million as at 20 February 2022. The Club continues to comfortably meet all its regulatory capital requirements and remains in the highest AAA band of Standard & Poor’s capital model.
At their November meetings in Dubai and Rotterdam, the Boards reviewed the financial position of the Club, including the performance of the open and closed policy years, and have set a general increase of 10 per cent on all mutual premium rates for the 2023 renewal. The decisions have been agreed by the Club and its subsidiaries, including UKNV which underwrites all EEA risks.