REINSURANCE: A year for which provisions for all future claims arising in the year are established. Also A year of account that has been closed into another year of account by means of a reinsurance to close contract. Historically most Lloyd’s syndicates have operated a three year underwriting account according to which the profit or loss of an underwriting account is determined by the managing agent 36 months after the beginning of that account which is always the start of a calendar year. According to this system the normal closure date of the 2014 year of account (which commenced on 1 January 2014) was 31 December 2016, with the calculation of the reinsurance to close as at that date being finalized in or about February/March 2016.
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Refer: “Reinsurance, Closed Year”
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UK: Where the accounting basis is for a two-year period or longer, a closed year is the year of account for which a result has been ascertained. This can only be done after providing for all outstanding claims. At Lloyd’s a year of account closes after 36 months, but this will end as Lloyd’s moves to annual accounting.