Policy year accounts
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Amounts in USD 000's    Consolidated accounts
Policy year 2017 2016 2015
Premiums and calls      
Premiums 459,812 529,985 554,018
Additional calls debited 5,373 217 56,725
Estimated deferred call 0 0 0
Total premiums and deferred calls 465,185 530,202 610,743
Reinsurance premiums (107,537) (127,202) (124,442)
Net premium earned 357,648 403,000 486,301
Incurred claims net      
Claims paid 115,518 172,820 336,298
Estimates on outstanding claims 163,132 133,282 109,854
IBNRs 98,030 10,152 2,271
Unallocated Loss Adjustment Expenses 5,660 4,300 3,721
Incurred claims net 382,340 320,554 452,144
Acquisition cost and net operating expenses 45,490 50,752 50,494
Technical result (70,182) 31,694 (16,337)

Notes to the consolidated policy year accounts

  1. Premiums, supplementary calls, reinsurances and claims are credited/charged to the policy year to which they relate.  Operating expenses are charged/credited to the same policy year as the financial year in which they are brought to account.

  2. The annual accounts include 0 per cent deferred call levied for the 2017 policy year. The original estimate for the year was 25 per cent.

  3. The approximate additional premium of 10 per cent from a supplementary call on the open policy years would be:
    2015 policy year USD 36.9 million 
    2016 policy year USD 36.0 million
    2017 policy year USD 31.5 million

  4. Incurred claims net comprises claims paid net of reinsurance recoveries, together with contributions to other P&I associations under the Group Pooling arrangement and net estimates for outstanding and unreported claims. Estimates on outstanding claims refer to those incidents which have been notified to the Association (RBNS) and on which estimates of the expected exposure have been placed. Incurred but not reported claims (IBNRs) have been calculated on a basis approved by the Company’s actuary.

    Due to the characteristics of P&I claims, both RBNS and IBNR, in particular in respect of the more recent years, may change substantially.

  5. Provision for outstanding and unreported claims for closed years before policy year 2015, USD 329.9 million, consists of estimated outstanding claims in the amount of USD 272 million and estimates for IBNR claims of USD 57.9 million.