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HMRC internal manual

Lloyd's Manual

Syndicate accounts: annual accounting from 1 January 2005: the Lloyd's annual return

Lloyd’s requires all syndicates to produce an audited annual return, subject to an exemption from the audit requirements where members of the syndicate agree (LLM2030). These enable Lloyd’s to prepare its aggregate accounts and produce the Lloyd’s Return to the Financial Service Authority.

The return (covering years 2005 onwards) includes a large number of schedules, of which the following are essentially equivalent to the profit and loss account and balance sheet.

AR100: Technical account by reporting year

This schedule is required for each account open during the reporting period. So for the year ended 31 December 2005, there would typically be three AR100s (for years ending 31 December 2003, 2004 and 2005).

It shows the movement of each year over the last 12 months and must reconcile to the annual accounts.

AR102: Cumulative technical account by reporting year

This schedule shows the cumulative position of each underwriting year. An AR102 is required for every account including that in which the account is closed by payment of a reinsurance to close premium, and for run-off years (LLM2070) where appropriate.

The AR102 will contain much of the same information as the syndicate underwriting year accounts prepared under the Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2004. However, unlike the syndicate underwriting year accounts, there is no exemption from preparing an annual return even when all the members of the syndicate agree. So where no underwriting year accounts are prepared the AR102 may be used as a basis for preparing the syndicate tax return.

AR201 (assets) and AR205 (liabilities)

These schedules will reconcile to the balance sheet in the annual accounts.

Other schedules

AR910 contains the managing agent’s report and AR930 contains the auditors’ report.