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Release Calls

Release Calls

P&I and Defence Classes

An actuarial assessment is undertaken to establish the level of release calls for each policy year, as the various risks to which the club is exposed could lead to a wide variety of profit and loss outcomes.

The club has considered each of a large number of possible results to assess the probability of the free reserves falling to a level at which a supplementary call might be made. The size of such a supplementary call, weighted by the probability of requiring a call of that size, represents the liability foregone by a member who leaves the club. A benchmark release call rate is calculated as this amount plus a risk transfer premium, adjusted to take into account any commercial or market considerations.

The reduction in release calls reflects several initiatives launched by the club in recent years to enable it to better anticipate claims developments and achieve early accurate estimating, thus avoiding any late deterioration in the incurred amounts for each policy year.

 

Policy year

20 May 2017 20 May 2016 20 May 2015 20 May 2014 20 May 2013 20 May 2012 20 May 2011
2017/18

6

 

         
2016/17

0

 

       
2015/16

0

3

7

       
2014/15   2 3 8      
2013/14     2 4 14    
2012/13       3 4.5 15  
2011/12         3.5 10 15

Standard London Class

The release call levels for the Standard London Class were set at 0% of ETP for each open policy year, on the same basis as referred to above, but reflecting the fact that the class has slightly higher relative free reserves.

Policy year

20 May 2017 20 May 2016 20 May 2015 20 May 2014 20 May 2013 20 May 2012 20 May 2011
2017/18 0            
2016/17

0

 

       
2015/16

0

0

       
2014/15   0 0 0      
2013/14     2 4 10    
2012/13       3 4.5 10  
2011/12         3.5 5 10