QBE Syndicate 2999 Annual Report and Accounts 2009

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Report of the directors of the managing agent continued • Underwriting and reinsurance review committee: the committee provides assurance that the control framework is appropriate and functioning in the mitigation of underwriting and reinsurance risk. The committee reviews the consistency of the framework with that of Group, the syndicate’s policies and procedures as well as legislative and regulatory requirements. It also contributes to change management projects, to ensure control weaknesses are properly identified, quantified and managed. The committee is chaired by a non-executive director. • Audit committee: the committee, which is constituted solely by non-executive directors, is responsible for assisting the boards in discharging their oversight responsibilities, by overseeing the financial reporting process and reviewing the effectiveness of the internal financial control and risk management system, the effectiveness of the internal audit function, the independent audit process including recommending the appointment and assessing the performance of the external auditor, and the process for monitoring compliance with laws and regulations. The committee is chaired by a non-executive director. The following three committees report to the audit committee: • Reserving committee: the committee is primarily responsible for undertaking a review of the reserve information in support of the accounts and solvency returns, and the calculation of total reserves ensuring consistency with the standards required to attain satisfactory audit and actuarial opinions. The committee is chaired by the Chief Risk Officer. • Risk and capital committee: the committee is responsible for ensuring an embedded framework to manage risk and capital is in place to support the strategic objectives. The committee ensures that all risks to the syndicate’s objectives are identified, assessed and monitored in accordance with the risk policies and to provide guidance and review on risk management and capital assessment issues. The committee is chaired by a non-executive director. • Internal audit committee: the committee provides assurance that an appropriate control framework is in place to mitigate business risk and that these controls are both functioning in practice and consistent with QBE Group and QUL procedures together with legislative and regulatory requirements. The committee also provides assurance that compliance and monitoring procedures are operating effectively. The committee is chaired by a non-executive director. Solvency II Solvency II will replace the existing solvency regime across Europe with all insurance companies expected to adhere to a single set of regulations and principles to assess their risk and capital requirements. QBE has been developing its risk and capital capabilities in preparation for this, and meeting the specific requirements of Solvency II is one component of this work. Within QBE, the risk and capital committee has specific responsibility for Solvency II, and is supported by a steering group to direct implementation in the context of details plans. Internal audit An independent internal audit function provides assurance to the internal audit committee chaired by a non-executive director as to the effectiveness of internal systems and controls. Internal audit makes recommendations for improvement and monitors progress towards completion via management action plans. Internal audit also provides independent feedback on the risk management process. Other governance issues QUL has adopted a code of conduct which outlines a set of general business ethics that apply to all employees when conducting any activity on behalf of the syndicate. The code of conduct requires employees to carry on business in an open and honest manner with customers, shareholders, employees, regulatory bodies, outside suppliers, intermediaries and the community at large. The code also deals with a number of other requirements including whistle-blowing, confidentiality, disclosure of information, conflicts of interest and treating customers fairly. Other policies are in place to cover areas such as health and safety, harassment, equal opportunities and financial crime. Directors Details of the directors of the managing agent that served during the year are shown on page 20. Creditor payment policy The managing agent’s policy on the payment of creditors is to abide by London insurance market practices, including those of Lloyd’s and the International Underwriting Association. The managing agent agrees terms with its other suppliers when it enters into binding purchase contracts. The managing agent seeks to abide by the payment terms agreed with these suppliers whenever it is satisfied that the supplier has provided the goods or services in accordance with the agreed terms and conditions. 18 QBE Syndicate 2999 Annual report 2009
Statement of managing agent’s responsibilities The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 require the managing agent to prepare syndicate annual accounts at 31 December each year which give a true and fair view of the state of affairs of the syndicate as at that date and of its profit or loss for that year. In preparing the syndicate annual accounts, the managing agent is required to: • select suitable accounting policies which are applied consistently, subject to changes arising on the adoption of new accounting standards in the year • make judgements and estimates that are reasonable and prudent • state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and • prepare the financial statements on the basis that the syndicate will continue to write future business unless it is inappropriate to presume that the syndicate will do so. The directors of the managing agent confirm that they have complied with the above requirements in preparing the annual accounts for Syndicate 2999. The directors of the managing agent are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the syndicate and enable it to ensure that the syndicate annual accounts comply with the 2008 Regulations. They are also responsible for safeguarding the assets of the syndicate and hence for taking reasonable steps for prevention and detection of fraud and other irregularities. Statement of disclosure of information to auditors Each of the persons who is a director of the managing agent at the date of this report confirms that: • so far as each of the directors is aware, there is no information relevant to the audit of the syndicate’s financial statements for the year ended 31 December 2009 of which the auditors are unaware; and • the director has taken all the steps that he/she ought to have taken in his/her duty as a director in order to make himself/herself aware of any relevant audit information and to establish that the syndicate’s auditors are aware of that information. Auditors The directors of the managing agent intend to reappoint PricewaterhouseCoopers LLP as the syndicate’s auditors. D J Winkett Director QBE Underwriting Limited Plantation Place 30 Fenchurch Street London EC3M 3BD 18 March 2010 19 QBE Syndicate 2999 Annual report 2009
Page 1 and 2: QBE Syndicate 2999 Annual report 20
Page 3 and 4: QBE Syndicate 2999 highlights QBE S
Page 5 and 6: Major events in 2009 • Growth ach
Page 7 and 8: 3. Empowers through a collaborative
Page 9 and 10: Business of the syndicate QBE Syndi
Page 11 and 12: QBE Marine and Energy Syndicate 103
Page 13 and 14: QBE Property Syndicate 2000 Busines
Page 15 and 16: Report of the directors of the mana
Page 17 and 18: During 2009 we installed a new Head
Page 19: Investment performance The total in
Page 23 and 24: Risk management The syndicate’s a
Page 25 and 26: Profit and loss account: technical
Page 27 and 28: Balance sheet As at 31 December 200
Page 29 and 30: Statement of cash flows For the yea
Page 31 and 32: 1 Accounting policies continued b)
Page 33 and 34: 1 Accounting policies continued g)
Page 35 and 36: 4 Claims outstanding During the yea
Page 37 and 38: 9 Other financial investments conti
Page 39 and 40: 10 Financial risk continued i) Mark
Page 41 and 42: 12 Overseas deposits These are lodg
Page 43 and 44: 17 Related parties The managing age
Page 45 and 46: Net investment income Gross investm
Page 47 and 48: Designed and produced by 85FOUR www

QBE Syndicate 2999 Annual Report and Accounts 2009

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