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HMRC internal manual

General Insurance Manual

HM Revenue & Customs
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Regulatory framework: the FSA return: using the FSA return

GIM3200 gives brief details of the FSA return forms currently required for general insurance business.

The FSA return contains more detail on a wide range of information than will be found in the Companies Act accounts, and will be of use in risk assessing and in formulating enquiries. The return gives ‘run off’ information for general business claims, enabling the adequacy of the provisions for outstanding claims established by the company in the past to be examined. Officers conducting enquiries will find this useful in considering the tax treatment of provisions not governed by the legislation in FA00/S107, which was repealed by FA07. See GIM6000+ on technical provisions.

The return also gives significantly more information about both inward and outward reinsurance, and on the use of derivatives by insurers than is available from the financial statements.


Rules 9.25-9.28 in IPRU(INS) Volume 1 require every insurer to prepare a statement of its major treaty reinsurers, major facultative reinsurers and major cedants. These must be attached to Forms 9 to 20. In relation to outward reinsurance, major treaty reinsurers are those exceeding laid down thresholds for premiums ceded and debts plus anticipated recoveries. Slightly different rules apply in respect of major facultative reinsurers. A similar statement of major cedants is required for inward reinsurance. Each reinsurer must be identified as must any connected person. Premiums paid, the amount of any debt to the reinsurer, the amount of any deposit received, and anticipated recoveries stated. Nil returns should be made where there are no disclosable major reinsurers and cedants. See GIM8000+ for more on reinsurance.

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Forms 9 to 20 must also have annexed to them a description of the investment guidelines operated by the insurer for the purposes of derivative contracts, and the extent to which the insurer was party to such contracts and likely to exercise rights under them. This supplements the information in Form 17. The extent to which amounts on Form 13 (Analysis of Admissible Assets) would have differed had such options been exercised, and the loss which might have been incurred on derivative contracts if a counterparty had failed to fulfil its obligations, must also be stated.