Asked by: Stephen Gilbert (Liberal Democrat - St Austell and Newquay)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what plans he has for the division of dividends on the assets held by the Pool Re scheme; and if he will make a statement.
Answered by Andrea Leadsom - Parliamentary Under-Secretary (Department of Health and Social Care)
The total value of the Pool Re fund was £5.504 billion as at 30 September 2014.
The government has provided a guarantee to Pool Re since it was established in 1993. Last year Pool Re and HM Treasury agreed a package of reforms that provides for fair and proportionate compensation for taxpayers for the continued provision of the guarantee. These reforms will see HM Treasury’s fee increased from 10% of Pool Re’s annual premium income to 50% - an increase that we estimate will raise an additional £120m per annum. In addition, the reforms will see Pool Re make a distribution to its members and the government based on any annual surplus that it makes. Whilst the occurrence and level of that surplus are subject to inherent uncertainty, based on Pool Re’s recent results we estimate that this will see insurers who reinsure terrorism insurance risk with Pool Re and the government each receive an additional payment of approximately £55 million per annum.
The changes took effect from 1 January 2015. In total, we estimate that these changes will raise an additional £50m for the Exchequer in 2014/15, and £175m per year thereafter, compared to the previous agreement.
Asked by: Stephen Gilbert (Liberal Democrat - St Austell and Newquay)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what the anticipated dividend payment to the Government and the insurance industry from the assets managed in the Pool Re scheme in 2014-15 is; and if he will make a statement.
Answered by Andrea Leadsom - Parliamentary Under-Secretary (Department of Health and Social Care)
The total value of the Pool Re fund was £5.504 billion as at 30 September 2014.
The government has provided a guarantee to Pool Re since it was established in 1993. Last year Pool Re and HM Treasury agreed a package of reforms that provides for fair and proportionate compensation for taxpayers for the continued provision of the guarantee. These reforms will see HM Treasury’s fee increased from 10% of Pool Re’s annual premium income to 50% - an increase that we estimate will raise an additional £120m per annum. In addition, the reforms will see Pool Re make a distribution to its members and the government based on any annual surplus that it makes. Whilst the occurrence and level of that surplus are subject to inherent uncertainty, based on Pool Re’s recent results we estimate that this will see insurers who reinsure terrorism insurance risk with Pool Re and the government each receive an additional payment of approximately £55 million per annum.
The changes took effect from 1 January 2015. In total, we estimate that these changes will raise an additional £50m for the Exchequer in 2014/15, and £175m per year thereafter, compared to the previous agreement.
Asked by: Stephen Gilbert (Liberal Democrat - St Austell and Newquay)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what funds are currently managed by the Pool Re scheme; and if he will make a statement.
Answered by Andrea Leadsom - Parliamentary Under-Secretary (Department of Health and Social Care)
The total value of the Pool Re fund was £5.504 billion as at 30 September 2014.
The government has provided a guarantee to Pool Re since it was established in 1993. Last year Pool Re and HM Treasury agreed a package of reforms that provides for fair and proportionate compensation for taxpayers for the continued provision of the guarantee. These reforms will see HM Treasury’s fee increased from 10% of Pool Re’s annual premium income to 50% - an increase that we estimate will raise an additional £120m per annum. In addition, the reforms will see Pool Re make a distribution to its members and the government based on any annual surplus that it makes. Whilst the occurrence and level of that surplus are subject to inherent uncertainty, based on Pool Re’s recent results we estimate that this will see insurers who reinsure terrorism insurance risk with Pool Re and the government each receive an additional payment of approximately £55 million per annum.
The changes took effect from 1 January 2015. In total, we estimate that these changes will raise an additional £50m for the Exchequer in 2014/15, and £175m per year thereafter, compared to the previous agreement.
Asked by: Stephen Gilbert (Liberal Democrat - St Austell and Newquay)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what steps his Department plans to take to encourage long-term and sustainable growth in the finance sector.
Answered by Andrea Leadsom - Parliamentary Under-Secretary (Department of Health and Social Care)
The Government understands the importance of having a growing but stable finance sector. Since the financial crisis the Government has, domestically and with EU and international partners, implemented an unprecedented range of regulatory reforms to improve the safety and resilience of the financial sector. The Government will continue to promote long-term and sustainable growth domestically and with EU and international partners, including in the finance sector. In addition, the Government will continue efforts through the Financial Services Trade and Investment Board, a strategic body chaired by HM Treasury, to attract inward investment, promote external trade and encourage the growth of the UK’s financial services sector.