HMRC internal manual

General Insurance Manual

GIM7040 - Equalisation reserves: classes other than credit business: limits on transfers in and out

For each business group where an equalisation reserve is to be maintained, there is a percentage limit on the amounts that can be transferred in and out, and on the maximum reserve which can be maintained. These are:

Business Group Transfer in Transfer out Maximum Reserve
  % net written premium % Claims ratio trigger % 5 year average net written premium
Property 3 72.5 20
Consequential loss 3 72.5 20
Marine and aviation 6 95 40
Nuclear 75 25 600
Non-proportional treaty 11 100 75