I take it RITC arrangements need to be diligenced?

Absolutely, Rob.

The RITC process is fundamental to how Lloyd's syndicates operate, and it must be carefully diligenced.

At the end of a syndicate's third year of account, all remaining liabilities, including outstanding claims and incurred but not reported reserves, are transferred into a later year of account.

The RITC premium is calculated based on the expected cost of settling these liabilities, including the reserving margin.

In practice, once profits for the closing year have been distributed, the remaining assets and liabilities transfer to the receiving year, resulting in nil net assets for the closing year.

A buyer needs to review the RITC contracts for recent years and be comfortable with the actuarial assumptions underpinning those.

Theo, some of the less tangible aspects.