GIM7040 - Equalisation reserves: classes other than credit business: limits on transfers in and out
For each business group where an equalisation reserve is to be maintained, there is a percentage limit on the amounts that can be transferred in and out, and on the maximum reserve which can be maintained. These are:
| Business Group | Transfer in | Transfer out | Maximum Reserve |
|---|---|---|---|
| - | % net written premium | % Claims ratio trigger | % 5 year average net written premium |
| Property | 3 | 72.5 | 20 |
| Consequential loss | 3 | 72.5 | 20 |
| Marine and aviation | 6 | 95 | 40 |
| Nuclear | 75 | 25 | 600 |
| Non-proportional treaty | 11 | 100 | 75 |