Replies to post #6488 on Trenwick Group, Ltd.(fka TWKGQ)

[lifegear]

if this is the thanksgiving gift that we've been waiting for, I'd hate to find out what our christmas gift will be LOL

[lifegear]

do you have the link where it says something about an underwriting year of account is normally closed within 3 yrs for example the 2006 year of account for Syndicate 839 should be closed by the end of 2008?

in reference to this part of the MBO:

"In
addition, any amount payable to Trenwick and TAC pursuant to the LSUK Notes will
occur only after the Letters of Credit issued by the Banks to support
underwriting activities of the Oaks through year of account 2003, and Flinstone
through year of account 2006, have expired and the Banks' claims under the LoC
Facility have been satisfied in full."

[lifegear]

Underwriting Year of Account Closing in 3 Years...

As explained at LLM2060, the accounts for an underwriting year are normally closed at the end of the second year following the end of the underwriting year; that is, their 36-month point. Where a policyholder’s claim is paid before the syndicate has closed, it is matched with the year of account in which the premium income from the policy was included.

The matching of claims with policies incepting in the year gives the correct tax result and no adjustment is required in the tax computation.

http://www.hmrc.gov.uk/manuals/llmanual/LLM2090.htm