List of All Supplementary Notes
This appendix provides a checklist of the supplementary notes required by the Accounts and Statements Rules in respect of the Appendix 9.1, 9.2 or 9.3 Forms, the four digit code allocated and the reference in the main text of the booklet. The majority of the notes are required on an exception reporting basis; however, the following would normally be expected to be present whenever a given Form is prepared:
0301, 1305/1319, 1401, 1402, 1501, 1502, 1601 (unless all business is denominated in sterling), 20Ae (unless the insurer only writes treaty business), 20Ag (unless there are no premiums) 2102, 2202, 2204, 2402, 2404, 2406, 2501, 3001, 3003, 4005 (if there is no Form 16), 4006 (if there is more than one Form 40) and 4401.
The prescribed four digit code should appear as the first element of the title that is given to a supplementary note. Two or more supplementary notes should not be combined as a single text with a single title except where this avoids unnecessary repetition or leads to a clearer explanation. Where alternative supplementary note numbers are shown in respect of Form 13, the first number relates to other than long-term insurance business and the latter to long-term insurance business.
There are various gaps in the numbering sequence, reflecting the fact that where particular supplementary notes have been deleted or transferred (e.g. from Form 20 to Form 20A), the subsequent notes have not been renumbered.
Form omitted because all entries (including comparatives) would be blank or because of the operation of the de minimis limits (chapter 2, paragraph 4.11). Waiver issued disapplying or modifying any of the provisions of the Accounts and Statements Rules in respect of general insurance business (chapter 2, paragraph 2.8).
The allocation in the branch return of a composite of any excess or deficiency of available capital resources to cover the guarantee fund between general and long-term insurance business (chapter 3 paragraph 3.22). Any restatement of comparatives on Form 1 (chapter 2, paragraph 4.12). Waiver issued disapplying or modifying any of the provisions of the Accounts and Statements Rules in respect of long-term insurance business (chapter 2, paragraph 2.8). An analysis of Form 2 line 11 for a branch which has an implicit item (chapter 3, paragraph 3.19). In a branch return, the adjustments made in arriving at Form 2 line 22 (chapter 3 paragraph 3.22). Any restatement of comparatives on Form 2 (chapter 2, paragraph 4.12). A reconciliation of net admissible assets to total capital resources after deductions (chapter 3, paragraph 3.15). An analysis of instruments issued by the long-term insurance fund included within capital resources (chapter 3, paragraph 3.2). Any material change from one year to the next in the way that a composite firm allocates capital items arising outside the long-term insurance business amount between general insurance business and long-term insurance business (chapter 3, paragraph 3.2). Any entries at line 42 or 43 relating to amounts excluded from lines 26 and 28 (chapter 3, paragraph 3.9 and chapter 10, paragraph 2.8). Information about any arrangement not entered in lines 91 to 95 which falls within the definition of a financing arrangement (chapter 3, paragraph 3.14). Information about each material financial reinsurance ceded for long-term insurance business (chapter 3, paragraph 3.14). Information about each material financial reinsurance accepted for long-term insurance business (chapter 3, paragraph 3.14). Information about adjustments for contingent loans and for other charges on future profits, including the commutation value for each major arrangement (chapter 3, paragraph 3.14). Details of any promises to policy holders conditional upon future profits and of any other charges to future profits not already disclosed (chapter 3, paragraph 3.14) Details of certain valuation differences between the return and the values used for external financial reporting purposes (chapter 3, paragraph 3.5). Any restatement of comparatives on Form 3 (chapter 2, paragraph 4.12). Waiver issued permitting an insurer to take into account implicit items for long-term insurance business (chapter 3, paragraph 3.11) A reconciliation of the movement in profit and loss account and other reserves between columns 3 and 4 of Form 3 line 13 to the profit and loss retained per Form 16 line 59 (chapter 3 paragraph 3.16). Particulars of any other movements at Form 10 line 65 (chapter 3, paragraph 3.16). Any restatement of comparatives or brought forward figures on Form 10 (chapter 2, paragraph 4.12). The bases of conversion used by a marine mutual completing an abridged return (appendix H, paragraph 11). Any restatement of the figures in column 2 because of the requirement to recalculate the gross adjusted premiums amount because there has been a significant change to the business portfolio (chapter 3, paragraph 4.12). Any discounting adjustments included at Form 11 line 51 (chapter 3, paragraph 4.7). The amount of, and an explanation of, any differences between amounts on Form 11 and the corresponding amounts on Forms 21 to 25 (chapter 3, paragraph 4.3). Any restatement of comparatives or brought forward figures on Form 11 (chapter 2 paragraph 4.12 and chapter 3, paragraph 4.12). Any restatement of the figures in column 2 because of the requirement to recalculate the gross adjusted claims amount because there has been a significant change to the business portfolio (chapter 3, paragraph 4.12). The amount of, and an explanation of, any differences between amounts on Form 12 and the corresponding amounts on Forms 21 to 25 (chapter 3, paragraph 4.3). Any restatement of comparatives or brought forward figures on Form 12 (chapter 2 paragraph 4.12 and chapter 3, paragraph 4.12).
1308}The aggregate value of the types of asset specified in instruction 5 to Form 13 together with a description of the assets in question (chapter 4, paragraph 1.10). 1302}
1309}The aggregate value of hybrid securities (chapter 4, paragraph 1.10). The amounts of any non-debtor salvage or subrogation recoveries (chapter 4, paragraph 1.10).
1310}A statement that amounts have been set off to the extent permitted by generally accepted accounting principles, if this option has been exercised (chapter 4, paragraph 1.11).
1319}The maximum counterparty limit permitted by the insurer’s investment guidelines together with an account of any breaches (chapter 4, paragraph 3.16).
1312}The amount and nature of the large exposures to counterparties at the year end (chapter 4, paragraph 3.17).
1313}The aggregate value of certain fully secured rights (chapter 4, paragraph 3.18). Any restatement of comparatives on Form 13 (chapter 2, paragraph 4.12).
1316}The amount of any tangible leased assets included at Form 13 line 80 (chapter 4, paragraph 1.12).
1317}Particulars of any “other assets” included at Form 13 line 83 (chapter 4, paragraph 1.12). Details of “other asset adjustments” included at line 101 of the reconciliation (chapter 4, paragraph 3.18). The amount in lines 60 to 62 recoverable from Insurance Special Purpose Vehicles (chapter 7, paragraph 6.4) The methods and assumptions used to determine the amount of any provision for reasonably foreseeable adverse variations or if there is no provision the methods and assumptions used to determine that no provision is required (chapter 4, paragraph 4.7 and chapter 5, paragraph 1.8). Details of charges over assets, potential capital gains tax liabilities, contingent liabilities, guarantees, indemnities or other contractual commitments effected other than in the ordinary course of business and in respect of related companies and any other fundamental uncertainties (chapter 5, paragraph 3.2). Any provision for a deficit in a regulated related undertaking included at line 22 of Form 14 and the identity of the undertaking (chapter 4, paragraph 2.16). Any implicit provision set up to cover an obligation to pay a monetary amount under INSPRU 3.2.17R(3) (chapter 4, paragraph 4.7). Details of “other adjustments to liabilities” included at line 74 of the reconciliation (chapter 5, paragraph 2.16). The amount of any increase or decrease in the value of non-linked assets in respect of the Form 14 prepared for a with-profits fund (chapter 5, paragraph 1.5). Any restatement of comparatives on Form 14 (chapter 2, paragraph 4.12). The methods and assumptions used to determine the amount of any provision for reasonably foreseeable adverse variations or if there is no provision the methods and assumptions used to determine that no provision is required (chapter 4, paragraph 4.7 and chapter 5, paragraph 2.1). Details of charges over assets, potential capital gains tax liabilities, contingent liabilities, guarantees, indemnities or other contractual commitments effected other than in the ordinary course of business and in respect of related companies and any other fundamental uncertainties (chapter 5, paragraph 3.2). The aggregate amount of any accrued dividend in respect of cumulative preference shares issued by the insurer (chapter 5, paragraph 2.11). Any provision for a deficit in a regulated related undertaking included at line 22 of Form 15 and the identity of the undertaking (chapter 4, paragraph 2.16). Any implicit provision set up to cover an obligation to pay a monetary amount under INSPRU 3.2.17R(3) (chapter 4, paragraph 4.7). Details of “other adjustments to liabilities” included at line 83 of the reconciliation (chapter 5, paragraph 2.16). Any restatement of comparatives on Form 15 (chapter 2, paragraph 4.12). The bases of conversion adopted in respect of foreign currency for income and expenditure (chapter 2, paragraph 4.9). 1602 Differences in brought forward figures because of currency retranslation (chapter 6, paragraph 1.10). Other income and charges included at Form 16 line 21 (chapter 6, paragraph 1.4). Extraordinary profit or loss included at Form 16 line 41 (chapter 6, paragraph 1.5). Any restatement of comparatives on Form 16 (chapter 2, paragraph 4.12). Prescribed details of variation margin (chapter 4, paragraph 4.16) Holdings of quasi-derivatives in excess of the materiality threshold (chapter 4, paragraph 4.11). Any restatement of comparatives on Form 18 (chapter 2, paragraph 4.12). Any restatement of comparatives on Form 19 (chapter 2, paragraph 4.12). Business allocated to a category under rule 9.14B (chapter 6, paragraph 2.5). The risk categories to which any contracts of insurance against risks of death of, or injury to, passengers, have been allocated (chapter 6, paragraph 2.4) A detailed explanation of business allocated to each of category numbers 187, 223, 400 or 700 (chapter 6, paragraphs 2.4 and 5.4). The claims-made and non-claims-made elements of a risk category which contains both types of policy (chapter 6, paragraph 5.5). The amounts reported on Form 20A in category 002 which are attributable to facultative reinsurance business (chapter 6, paragraph 2.14). The amounts reported in Form 20A under each of categories 113, 274 and 343 that have arisen from business falling within each group of classes in Annex 11.2 Part II and from classes 16, 17 and 18 combined (chapter 6, paragraph 5.5). The home foreign and overseas elements of gross premiums for each risk category on Form 20A and a list of the overseas countries concerned (chapter 6, paragraph 5.2). Details of policies effected by another insurer which were transferred to the insurer during the financial year (chapter 6, paragraph 2.14). Technical provisions on Form 20A relating to policies effected by another insurer which have been transferred to the insurer (chapter 6, paragraph 2.14). For any general insurance business class where no new contracts of insurance were effected during the financial year, the date on which the last new contract of each class was effected (chapter 2, paragraph 3.4). Details of inward or outward contracts of (re)insurance excluded from the revenue account Forms on the basis of GAAP (chapter 7, paragraph 3.2). Any difference between Form 20A.1.1 and Form 11.11.1 or between Form 20A.1.4 and Form 15.11.1 (chapter 6, paragraph 2.13) Particulars of any amounts included at lines 16, 25 or 32 of Form 20 as other technical income or charges (chapter 5, paragraph 2.9 and chapter 6, paragraphs 3.4 and 4.8). Brief details of any material connected party transaction required to be disclosed by rule 9.39 (chapter 11, section 1). Any restatement of comparatives on Form 20 (chapter 2, paragraph 4.12). Any difference between unearned premiums brought forward and the corresponding amount carried forward in the previous return (chapter 6, paragraph 1.10). The basis on which the provision for unearned premiums is calculated and the reason for adopting that basis (chapter 5, paragraph 2.4 and chapter 6, paragraph 3.5). Any differences between Form 21 and Forms 13 and 15 as a result of the omission from Form 21 of premiums received during the financial year but relating to risks incepting after the end of the financial year (chapter 6, paragraph 3.7). Any difference between brought forward amounts on Form 22 and the corresponding carried forward amounts in the previous return (chapter 6, paragraph 1.10). The basis for determining claims management expenses payable and carried forward, including an explanation of the absence of claims management expenses carried forward where there are claims outstanding carried forward and the basis of additional costs arising from the cessation of new business in any class (chapter 6, paragraph 3.11). Rates of interest and average interval assumed for any class where investment income has been taken into account in determining the claims management costs carried forward (chapter 6, paragraph 3.11). The basis for determining acquisition costs other than commission payable and carried forward (chapter 6, paragraph 3.13). Where investment income has been taken into account in determining the provision for unexpired risks, the undiscounted provision, the rates of investment return assumed and the average interval from the end of the financial year to the date at which claims are expected to be settled in cash (chapter 6, paragraph 3.12). Where the reinsurers’ share of claims incurred includes amounts expected to be recovered from reinsurers more than 12 months after the payment of the underlying gross claims, the amount of such recoveries and the accounting treatment which has been adopted in respect of discounting such recoveries (chapter 5, paragraph 4.8 and chapter 7, paragraph 3.2). Any differences between the brought forward amounts on Form 23 and the corresponding carried forward amounts in the previous return (chapter 6, paragraph 1.10). Any differences between the brought forward amounts on Form 24 and the corresponding carried forward amounts in the previous return (chapter 6, paragraph 1.10). Details relating to the adoption of underwriting year accounting or the non-annual method of determining the provision for claims outstanding (chapter 6, paragraphs 4.3 and 4.6). The basis for determining claims management expenses payable and carried forward, including an explanation of the absence of claims management expenses carried forward where there are claims outstanding carried forward and the basis of additional costs arising from the cessation of new business in any class (chapter 6, paragraph 4.11). Rates of interest and average interval assumed for any class where investment income has been taken into account in determining the claims management costs carried forward (chapter 6, paragraph 4.11). The basis for determining acquisition costs other than commission payable and carried forward (chapter 6, paragraph 4.11). The basis on which the provision for unearned premiums is calculated and the reason for adopting that basis (chapter 5, paragraph 2.4 and chapter 6, paragraph 4.11). Where investment income has been taken into account in determining the provision for unexpired risks, the undiscounted provision, the rates of investment return and the average interval from the end of the financial year to the date at which claims are expected to be settled in cash (chapter 6, paragraph 4.11). Where the reinsurers’ share of claims incurred includes amounts expected to be recovered from reinsurers more than 12 months after the payment of the underlying gross claims, the amount of such recoveries and the accounting treatment which has been adopted in respect of discounting such recoveries (chapter 5, paragraph 4.8 and chapter 7, paragraph 3.2). Where a surplus for offset is shown at Form 25 line 19, a description of the business for which the anticipated surplus and deficit arose and the reason for treating the business as managed together (chapter 6, paragraph 4.12). Particulars of any “other” technical provisions at line 25 of Form 25 (chapter 5, paragraph 2.9 and chapter 6, paragraph 4.11). Any difference between brought forward amounts on Form 26 and the corresponding carried forward amounts in the previous return (chapter 6, paragraph 1.10). Any difference between brought forward amounts on Form 27 and the corresponding carried forward amounts in the previous return (chapter 6, paragraph 1.10). Any difference between brought forward amounts on Form 28 and the corresponding carried forward amounts in the previous return (chapter 6, paragraph 1.10). Where a surplus for offset is shown at Form 29 line 19, a description of the business for which the anticipated surplus and deficit arose and the reason for treating the business as managed together (chapter 6, paragraph 6.3). The methods and assumptions used in determining the yield in accordance with instruction 4 to Form 30 (chapter 5, paragraph 4.7). The treatment of expected income payments (in arriving at the amounts shown at columns 3 and 4 of Form 30) from any asset where such payment is in default (chapter 5, paragraph 4.7). The risk categories where an adjustment for discounting has been made with disclosure for each category of the method, rate of interest, expected average interval to the settlement date and the criteria adopted for estimating the period that will elapse before claims are settled (chapter 5, paragraph 4.7). Any difference between brought forward amounts on Form 31 and the corresponding carried forward amounts in the previous return (chapter 6, paragraph 1.10). Any difference between brought forward amounts on Form 32 and the corresponding carried forward amounts in the previous returns (chapter 6, paragraph 1.10). Any difference between brought forward amounts on Form 34 and the corresponding carried forward amounts in the previous return (chapter 6, paragraph 1.10). Any difference between brought forward amounts on Form 40 and the corresponding carried forward amounts in the previous return (chapter 8, paragraph 1.6). Particulars of the amounts included at lines 15 and 25 of Form 40 for “other income” and “other expenditure” (chapter 8, paragraph 1.10). If an insurer decides to allocate to the long-term insurance business the whole or any part of investment income and/or net capital gains arising from assets not attributable to its long-term insurance business, the amount of the allocation included at Form 40 line 26 (chapter 8, paragraph 1.3). Details of transfers of contracts to or from another fund or another insurer (chapter 8, paragraph 1.9). The basis of conversion adopted in respect of foreign currency for income and expenditure except where this has already been stated in a note to Form 16 (chapter 2, paragraph 4.9). Where an insurer maintains more than one long-term insurance business fund, the principles and methods applied to apportioning the investment income, the increase or decrease in the value of assets brought into account, expenses and taxation between the different funds (chapter 8, paragraph 1.7). Where arrangements have been in force during the financial year for the provision either by or to the insurer of management services, a statement of the fact together with the name of the other party (chapter 8, paragraph 1.11). Brief details of any material connected party transaction required to be disclosed by rule 9.39 (chapter 11, section 1). The amount, if any, of investment income relating to linked assets included at Form 40 line 12 for a with-profits fund (chapter 8, paragraph 1.7). 4011
Any restatement of comparatives on Form 40 (chapter 2, paragraph 4.12). Any restatement of comparatives on Form 41 (chapter 2, paragraph 4.12). Any restatement of comparatives on Form 42 (chapter 2, paragraph 4.12). Any restatement of comparatives on Form 43 (chapter 2, paragraph 4.12). The basis on which linked assets have been valued (chapter 8, paragraph 2.11). The aggregate value of rights (gross of variation margin) and the aggregate amount of liabilities (gross of variation margin) under derivative contracts for internal linked funds (chapter 8, paragraph 2.14). Details of liability to repay variation margin (chapter 8, paragraph 2.14). If the surplus units exceed 1% of the net unit liability, a statement of the purpose of the surplus units (chapter 8, paragraph 2.13). Disclosure of the name of fund, the net asset value and the liquidity ratio for any fund with material negative liquidity (chapter 8, paragraph 2.13). Any restatement of comparatives on Form 44 (chapter 2, paragraph 4.12). Any difference between brought forward amounts on Form 45 and the corresponding carried forward amounts in the previous return (chapter 8, paragraph 2.15). Particulars of other income (line 14) or other expenditure (line 26) on Form 45 (chapter 8, paragraph 2.15). Any restatement of comparatives on Form 45 (chapter 2, paragraph 4.12). Any restatement of comparatives on Form 46 (chapter 2, paragraph 4.12). The number of new group schemes, divided by product code, for which the insurer has no record of benefits at member level (chapter 8, paragraph 4.3). Details of approximations used to apportion between product codes on Form 47 (chapter 8, paragraph 4.4). Details of approximations used in determining columns 3 and 5 of Form 47 (chapter 8, paragraph 4.3). Prescribed details of with-profits business falling within paragraph 1(b) of the definition of with-profits fund which represents more than 10% of the total with-profits mathematical reserves (chapter 8, paragraph 4.12). The treatment on Form 48 of the expected income from any asset where the payment of interest is in default and the amount of interest involved (chapter 8, paragraph 4.9). An explanation of the assumption made, in completing Form 48, as to the redemption of securities that may be redeemed over a period at the option of the guarantor or the issuer, if it is not assumed that these will be redeemed at the latest possible date (chapter 8, paragraph 4.10). The yield for a type of asset included at line 18 or 28 of Form 48 which is significantly different from the weighted average of the yields for each asset of that type determined in accordance with INSPRU 3.1.34R(2) (chapter 8, paragraph 4.12). The aggregate value of assets included at Form 13 line 87 arising from excess exposure to a counterparty or excess concentration with a number of counterparties together with the expected income from those assets (chapter 8, paragraph 4.12). Which assets have been used to calculate the investment returns shown at Form 48 lines 21 to 29 column 5 (chapter 8, paragraph 4.12). The rating agency used to provide the split by credit rating on Form 49 (chapter 8, paragraph 4.13). Any restatement of comparatives on Form 50 (chapter 2, paragraph 4.12).
5201}
5301}
5401}The number of group schemes by product code for which the insurer has no record of benefits at member level (chapter 8, paragraph 4.16).
5202}
5302}
5402}Approximations made in estimating the number of policyholders from the number of contracts (chapter 8, paragraph 4.16).
5203}
5303}
5403}Business for a product classified under the miscellaneous product code if the threshold s exceeded (chapter 8, paragraph 4.16).
5204}
5304}
5404}Approximations used to apportion between product codes (chapter 8, paragraph 4.16). The rating agency used to provide the split by credit rating on Form 56 (chapter 8, paragraph 2.18). Any use of negative mathematical reserves on one group of products to offset positive mathematical reserves on another group of products, giving details of the amounts and products involved (chapter 8, paragraph 4.17). Any special provision made for the cost of bonuses payable on future claims,(chapter 8, paragraph 4.19). Each transfer where Form 58 line 14 or 33 represents more than one item (chapter 8, paragraph 4.20). Any restatement of comparatives on Form 58 (chapter 2, paragraph 4.12). The method of estimating the figure at Form 60 line 21, together with a statement of the gross annual office premiums in force at the valuation date for the total long-term insurance business which is class IV or supplementary accident and sickness business (chapter 3, paragraph 5.5). Any restatement of comparatives on Form 60 (chapter 2, paragraph 4.12). * Instruction 9 to Forms 11 and 12 refers to supplementary notes 1103 and 1203 relating to the comparatives for actuarial health insurance, but these have been omitted from the list as these are only relevant to financial years beginning before 1 January 2005.
