Recovery Calculation for Non-Prop OCC Fac with ITB Rules

Recovery Calculation for Non-Prop OCC Fac with ITB Rules

Protection Program Fac

Section Cover Excess Agg Limit ITB Rule OCC Share
Section 1 5 000 000 0 5 000 000 Reinstatement Exhausted covered by Section 2 100 %
Section 2 10 000 000 5 000 000 1 000 000 Reinstatement Exhausted covered by Section 3 100 %
Section 3 35 000 000 15 000 000 35 000 000 None 100 %

Inward claims with protection assignment and bookings:

Claim PA link Retroceded % Paid FGU Inw. Share
Claim 1 Section 1,2,3 100 % 5 000 000 100 %
Claim 2 Section 1,2,3 100 % 20 000 000 100 %
Claim 3 Section 1,2,3 100 % 5 000 000 100 %

Recovery Calculation:

PP Section Claim Retention Paid Recovery Paid Paid Exhausted Paid Through Top
Section 1 Claim 1   5 000 000    
Section 1 Claim 2     5 000 000 15 000 000
Section 1 Claim 3     5 000 000  
Section 2 Claim 1 5 000 000      
Section 2 Claim 2 5 000 000 10 000 000   10 000 000
Section 2 Claim 3 5 000 000   5 000 000  
Section 3 Claim 1 5 000 000      
Section 3 Claim 2 15 000 000 5 000 000    
Section 3 Claim 3 5 000 000 5 000 000    

Explanation:

The special ITB Rule for Reinstatement Exhausted on Non-prop Fac OCC’s allows recovering of claims starting from zero and not the excess point.