No. 10 2019/2020 - Class 1 (P&I) and Class 2 (FD&D) Policy Year Balances and Financial Position
The Board reviewed the latest Class 1 and Class 2 figures and the Club’s mid-year financial position at their meeting on 16 October 2019.
1) Financial Overview
The investment return in the first six months of the year has been strong and the return as at 20 August 2019 of 3.9% is more than sufficient to cover the forecast underwriting deficit so a modest increase in Free Reserve is anticipated.
The Club’s capital position remains very strong, a point reflected in the recent re-confirmation of the Club’s Standard & Poor’s rating of A-. However, the Club is mindful of a reliance upon investment return to subsidise underwriting deficits and therefore adjustments to premium levels will be required in the future across the industry to address this unsustainable trend.
2) Policy Years and Release Calls
Class 1 (P&I)
Class 2 (FD&D)
2016/17 and 2017/18 – Release calls maintained at 0% of the advance call
For: West of England Insurance Services (Luxembourg) S.A.
T J Bowsher