The balance of receivables from reinsurance concerns the balance of the current accounts based on operational activities.

4.1. Liquid assets

Up to an amount of GBP 1,000 of the cash balance has been blocked in connection with a letter of credit issued by our bank to a ceding insurer at our request.

The liability adequacy test is performed on the basis of the Guideline for the Annual Reporting 605, articles 534 to 537. The liability adequacy test compares the balance sheet value of the provision for insurance liabilities (less the related capitalized acquisition costs, intangible assets and receivables from deferred profit sharing) with the best estimate provision , the current estimates of all (discounted) contractual cash flows and related cash flows such as claims handling costs, cash flows from embedded options and guarantees taking into account uncertainty margins. If the investments that serve to cover the technical provision are not valued at current value, the difference between the current value and the balance sheet value of these investments is included in the liability adequacy test. Contant Discounting takes place using the interest rate term structure published by EIOPA on the balance sheet date without volatility adjustment.

 The balance sheet provision must be at least equal to the best-estimate provision corrected by the mismatch between the allocated assets at book value and the current value. The value thus calculated is  20,544 (2023: 18.674).

The balance sheet provision before reinsurance amounts to  22,913 (2023: 23,157). The results of the test show that the technical provision is adequate (+ 2,370).

The De Hoop Leven fund was started by DH Reinsurance at the end of 2018 with the aim of supporting research in the field of medical death risks that are difficult to (re)insure. In particular:

• research related to chronic diseases relevant to the target group of DH Reinsurance; and
• research into the insurability of people with chronic conditions and the way in which medically aggravated risks can be dealt with.

In principle, the fund will exist for ten years. After an initial contribution of 100 in December 2018, DH Reinsurance will annually deposit an amount of 100 into the fund's assets. In the eleventh year, any surpluses will be donated by the De Hoop Leven fund to a yet to be determined third party. DH Reinsurance is entitled to suspend payments into the fund's assets if, in the opinion of the founder, one or more special circumstances arise.

In 2019, a ten-year rental contract was entered into for housing and service costs, which expires on 1 July 2029. The rental price for housing was  106 in 2024. This rental price is indexed annually according to the change in the consumer price index.

DH Reinsurance has subscribed to two loan funds. In 2021, the SME Loan Programme was subscribed to for 5,000. At the end of 2024 4.689 was paid into this fund. The investment period runs until 31 December 2024. In 2023 DH Reinsurance subscribed to the Polestar Circular Debt Fund for a maximum investment of 5,000. This fund has not yet made any investments.