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Name Proportional Treaties Menu
Shortcut TTYMEN
Area Prop. Tty.

See the NOVUS Walkthrough Guide for general information about the system.

Additional information can be found in the proportional treaty module page in this wiki.

Proportional Treaties

Proportional Treaties differ from other types of policies as follows:

Each policy type (POLTYPE) is set up to be in the treaty processing group in the CODES program.

Policy types are identified by an accounting frequency such as Q for quarterly, A for annual etc., which reflects the frequency with which technical accounts are produced.

Only policies that are proportional treaties can be handled by the proportional treaties module.

The proportional treaties menu enables entry, enquiry, and amendment of proportional treaty transactions. Calculations of brokerage, commissions, reserves retained etc. can be performed, and the transaction report and draft statements checked to ensure the figures are correct prior to posting to the IBA (insurance brokerage account) ledger.

Insurer documentation such as open market and bureau statements can be produced either prior to posting to the IBA ledger (in draft format) or after posting. After posting, debit/credit notes, syndicate re-insurance documents and closings can be produced in the same way as facultative transactions.

Treaties, like all other policies, are identified by an underwriting policy year as created within the policy programs across the system.

It would be normal to find the inception date of the policy falling within this policy year.

Treaties can support transactions across a number of treaty accounting years within which there will be the number of accounting periods as defined by the treaty accounting frequency.

In the proportional treaty menu screen:

  • the policy year must be entered to define the policy and
  • the treaty year (and period) must be entered to identify which accounting year/period is intended.

The system will reject entries for treaty years prior to the policy year. On accessing the proportional treaties menu, the policy (treaty) number, year and section, market mix and market version number (MVN) must be specified.

Once the policy number has been entered, other fields will default to the latest known values. Certain options on the menu require a specific transaction number to be entered, but if entering a new transaction using menu option 1, the number should be left blank.

The system will automatically assign the next available transaction number once the entry has been saved. The section description is displayed.

NOVUS checks the Policy Type (GID 1) where the policy type maps to a Processing Group (GID 14) does not have the Transaction route set as 'T' for treaty, then transaction processing via TTYMEN will be prevented with error "620E: Not a proportional treaty".

Option 1: Treaty Transaction Entry

The proportional treaties menu is accessed through the TTYMEN program. Option 1 in the TTYMEN menu screen will populate the treaty transaction entry screen with the policy number, reinsured and transaction number (if entered). This will be carried through to the treaty transaction entry screen.

The treaty transaction entry screen prompts for the period and year applicable to the statement. Depending on the policy, the year is not always the same as the accounting year of the policy.

The selective taxes are for taxes that apply only in certain to local underwriters in specific counties - for example, Africa. In the PARTNER program screen the field N/A tax codes: is a Nigerian tax that only applies to Nigerian underwriters, so for Lloyd's and an underwriter not domiciled in Nigeria, this tax code must be entered in the 'N/A tax codes' field.

When a treaty transaction is processed the tax will only be applied to the partners who do not have this tax code in their N/A tax code field.

All taxes and fees can be set up/defined by the user. A tax is a percentage of the premium, a fee is an amount. The transaction processing screen TRANPT fully supports all taxes and fees. Page 2 of the claim entry CLMMEN program only supports fees, so tax amounts (e.g. VAT on a fee) must be treated as a fee and an amount entered.

NB: All figures entered using this screen are in respect of the client and are 100% figures.


Field name Description
Code: The options are

‘A’ – Portfolio assumption (no period)

‘W’ – Portfolio withdrawal (no period)

‘C’ - Cash Loss (no period)

'P' Profit Commission


leave blank for the system to display:-

‘I’ - Initial (New period/year) or

‘S’ – Supplement (existing period/year)

Period: The required period in the treaty (accounting) year to which the transaction relates

NB: If the accounting frequency of the policy is annual, i.e. 1 period per year, then the user will not be prompted for the period number and it will be displayed as ‘01’.

Year: The user will be prompted for the treaty year to which the transaction relates. The full four-digit year e.g.: ‘2017’/’2018’ must be entered. Note this is the treaty year, not the policy year. A given treaty (identified by its number, year and section) may have records spanning several treaty years.
Cash Losses: Displays the number of cash losses for this policy.
MVN: Market version number.
Currency: This is the currency entered by the user, which represents all the amounts used in processing a treaty transaction. It is validated against the currency maintenance table to ensure its validity on the system.
Component: After the component number (double click to select from the list of values) has been entered, its ‘type’ (‘V’ - variable or ‘T’ - text) will be displayed against the component. Once a code has been entered or selected the text description will be displayed in the next field.
Text/Date: The user can enter text or date information. This is the only field on the line accessible if a T (text) component is selected.
Credit/Debit: This is the amount, in respect of the client, which the user wishes to enter for the component.

A treaty transaction will be referred to as either an initial or a supplementary. The first transaction entered for a period; year, section and currency will always be an initial entry. The system will recognise this, and set the code field accordingly.

Amendments can be made to the initial until the transaction is posted to the IBA (insurance brokerage account) ledger. Thereafter, any transactions for the same period, year, and currency be saved as a new supplementary record. Only one supplementary entry can be active, i.e.: not posted for any single given period, year, section, and currency. Separate entries may be made for a given period, year, and section for different currencies. Only one portfolio assumption and withdrawal is permitted for any single currency.

Below is a full list of amount components:

The column 'T' defines the type of component. Only types V (variable) and T (text) can be entered - these appear in the list of values. Other amount components are evaluated by NOVUS. The exception to this is variable components 090, 092, 100 and 102 which are explicitly allowed to be entered.

A 'T' type component is text only and no amounts can be added. Any text is entered in the Text/Date column and appears on the open market treaty statement. It does not appear on the bureau treaty statement.

The amount component is used for grouping and ordering of items in sections A, B, C, etc. below the line in the bureau treaty statement.

'POS' is used for ordering the amount components on the open market treaty statement.

001 Nett Premium C 500
002 Def Prm Rel C 500
003 Prm Res Ret C 55
004 Prm Res Rel C 20
005 Prm P/F In V 5
006 Prm P/F Out V 35
007 Nett Res Int C 25
008 R/I Costs V 60
009 Profit Comm V 701
010 Nett Claims C 500
011 Clm Res Ret V 65
012 Clm Res Rel V 30
013 OCA Ret V 500
014 OCA Rel V 500
015 Clm P/F In V 10
016 Clm P/F Out V 40
017 R/I Recs V 500
018 Profit V 700
020 BALANCE B 500
021 YOUR SHARE % S 85
040 Premium V 15
041 L/U Ret V 500
042 Commission E 500
043 Commission Adj V 500
044 O/R Comm E 500
045 Prem Tax V 500
046 FBC V 500
047 Other Deds V 70
048 Brokerage E 95
049 Nett Premium B 500
050 Management Expenses (Man. Expcs) V 100
051 PC Losses B/F V 650
060 Inst Due Date T 500
061 Premium Inst V 500
062 Commission E 45
063 O/R Comm E 500
064 Prem Tax V 75
065 Other Deds V 500
066 Brokerage E 500
067 Prem Res Ret E 500
068 Nett Def inst B 500
080 Def.Bal.Bfwd C 500
081 Def.This A/C C 500
082 Trns To Cash V 500
083 Def Bal Cfwd B 500
090 Prm Res Bfwd E 500
091 Prm Res Ret E 500
092 Prm Res Rel E 500
093 Def Res Ret C 500
094 Prm Res Cfwd B 500
095 Prem Res Ret V 500
096 Prem Res Rel V 500
099 Claims Fund E 500
100 Prm Res Int E 500
101 Clm Res Int E 500
102 Tax on Int E 80
103 Nett Res Int B 500
104 Prem Res Int V 500
110 Paid Claims V 50
111 Paid Refunds V 500
112 Cash Loss C 500
113 C/L Contra C 500
114 Nett Claims B 500
130 Date of Loss T 500
131 LUNCO Cat T 500
132 PCS Cat T 500
133 Name of Loss T 500
134 Nature of Claim T 500
135 Loss Details T 500
136 Clm Res Ret V 500
137 Clm Res Rel V 500
138 OCA Ret V 500
139 OCA Rel V 500
140 Clm P/F In V 500
141 Clm P/F Out V 500
142 RI Recs V 500
143 Clm Res Int V 500
144 O/S Loss V 500
145 Paid Claim V 500
146 Refund V 500
147 Cash Loss V 500
148 C/L Contra V 500
160 Clm Res Bal B 500
161 Bal of OCA V 500
162 O/S Losses V 500
163 Adj O/S V 500
180 War Risks Only T 500
181 War Indicator T 500
200 Tax E 500
201 LPC Tax E 500
202 ILU Tax E 500
203 Lloyd's Tax E 500
210 Selective Taxes (Sel.Taxes) E
500 Free Text T 500

To Add a New Transaction.

If the transaction number has been left blank the system will assume the user wishes to enter a new transaction

If the transaction number has been left blank the system will assume the user wishes to enter a new transaction

  1. Select proportional treaties program TTYMEN
  2. Press tab or enter to proceed through header details
  3. Enter policy number, year, section, and MVN.
  4. Leave transaction number blank
  5. Press tab to enter selection list
  6. Select option 1 treaty transaction entry
  7. Click the proceed button
  8. In the treaty transaction entry screen leave the code field blank or specify a portfolio or cash loss. Enter the period, year and currency for the new transaction. A transaction for an existing period, year and section but with a different currency is allocated a different, unique transaction number.
  9. Enter component number double click for a list of values
  10. Press [COMMIT] or click the save button
  11. Enter ‘E’ to evaluate, make necessary changes if required.
  12. Enter ‘S’ to or click the save button.

If there is no previous transaction for the period/year/section/currency then ‘I’ (initial) will be displayed in the code field. However, if the period/year/section/currency does exist one of two actions will take place as follows.

If the transaction has not been posted to the IBA ledger, then the relevant transaction number, components and amounts will be retrieved and displayed. The user can then make changes to the component parts of the transactions. If the transaction has been posted to the IBA Ledger then no further amendments can be made.

In this case, ‘S’ will be displayed in the code field (supplementary) and a new transaction number will be allocated when the transaction is saved. There is no limit to the number of supplementary transactions, which can be created for a period, but only the last one remains ‘active’.

Amending a Transaction

If the transaction number has been entered into the menu header, the system assumes an enquiry is to be made on, or an amendment is to be made to an existing transaction. The system validates that the transaction number is valid for the given policy number, year and section and that it is still unposted.

On entering the treaty transaction entry screen the system will retrieve all details for the transaction. Changes can be made to the components within the transaction. The system prevents changes from being made to the header details to avoid duplication.

Evaluation Process

Once the variable (or text) components have been entered, the transaction can be evaluated. The evaluated components are displayed on the screen. Although some evaluated components can be deleted before saving, attempting to delete an evaluated component will usually force a fresh evaluation.

If an evaluated component is deleted and is subsequently required, re-evaluating will re-calculate the component. Certain additional checks are also made during evaluation to incorporate any items due to be released from, e.g. the previous period or the same period in the previous year.

The table below shows the ‘variable components’ and the associated ‘evaluated components’ that are calculated during the evaluation.

Variable Component Evaluated Component Calculation
040 Premium

Sum of ((X*Y%*Z*) for each reinsurer)

Where X = 040 premium

Y% = %reinsured signed

And :

042 Commission
Z% = Commission assigned to reinsurer

044 O/R commission
Z% = O/R commission assigned to reinsurer

048 Brokerage
Z% = Brokerage assigned to reinsurer

092 Prem res ret
Z% = PRR assigned to reinsurer

100 Prem Res Int
Z% = PRI assigned to Reinsurer
061 Premium Inst

Sum of ((X*Y%*Z*) for each reinsurer)

Where X = 061 Premium inst Y% = %reinsured signed and :

062 Commission
Z% = Commission assigned to reinsurer

063 O/R Commission
Z% = O/R Commission assigned to reinsurer

066 Brokerage
Z% = Brokerage assigned to reinsurer

067 Prem Res Ret
Z% = PRR assigned to reinsurer
012 Clm Res Rel

Sum of ((X*Y%*Z*) for each reinsurer)

Where X = 012 Premium inst

Y% = %reinsured signed

And :

101 Clm res int
Z% = Commission assigned to reinsurer

Reserve Movement

The movement of reserves through the various periods of the life of the treaty is handled by the system as shown in Table II, assuming a premium reserve % of 10%, and a signed line of 100%:

Initial Entry
Period of account
1st Qtr 2019


10000 Credit

Premium reserve b/fwd

Premium reserve retained

Premium reserve released

Premium Reserve c/fwd


Supplementary Entry
Period of account
1st Qtr 2019

500 debit

Premium reserve b/fwd

Premium reserve retained

Premium reserve released

Premium reserve c/fwd


Supplementary Entry
Period of account
1st Qtr 2019

250 debit

Premium reserve b/fwd

Premium reserve retained

Premium reserve released

Premium reserve c/fwd


Initial Entry
Period of account
1st Qtr 2020

20000 credit

Premium reserve b/fwd

Premium reserve retained

Premium reserve released

Premium reserve c/fwd


Saving a Transaction

Once component details have been entered and evaluated, the transaction can be saved using the ‘Save’ option. This causes the next available transaction number to be assigned to this transaction. The transaction can be re-evaluated until such time as it is posted to the IBA ledger.

Option 2: Treaty History Enquiry

TTYMEN History enquiry.PNG

This option allows all transactions on a given policy year and section to be displayed.

Use the down/up arrow keys or scroll bar to scroll through the entries on the various transactions. Transaction numbers and other details will change whilst scrolling through the entries.

Option 3: Transaction Enquiry

TTYMEN Transaction enquiry.PNG

This option can be used to display details of one specific transaction. The required transaction must be entered into the menu header to access this program.

Use the down/up arrow keys or scroll bar to scroll through the items.

Option 4: Treaty IBA Poster

TTYMEN treaty IBA poster.PNG

Option 4 opens the treaty IBA poster from the proportional treaty menu.

Field name Description
Trans No:
Brought forward and displayed from the menu as entered. Press tab to proceed.
Displayed by the system.
Displayed by the system.
Order %:
Displayed by the system.
Entry Details:
A code may optionally be entered in the format NNXYY where NN is the period number (01-04), X is the accounting frequency M,H,Q,A and YY is the two-digit year. For example, 03Q19 will be expanded in the next field as 3rd. quarter of 2019. Note: it is important to complete this field to enable the system to monitor the fact that an entry for this period has been made and to allow policing of a missing entry for the next period.
Optional free format annotation of the transaction details.
Instalment Date:
Defaults to the current system date. Edit as required.
Payable by:
Defaults to the current system date. Edit as required as may be used for aged debtors. Note the transaction will be entered into the NL(nominal ledger) against the period for the current system date.
Prem W.TOC Premium warranty terms of credit in days.
Terms/trade Terms of trade. Added to payable date for PANs etc.
The source currency is already defined. This field cannot be changed. The second currency field must be completed with the banking currency into which this transaction will be converted. This can be the same as the source currency if this too is a banking currency.
Secondary Tax or Fee:

If open market treaty statements (draft) have been run then the secondary tax code will be displayed as default. If the transaction is being posted before statements are run then a secondary (selective/local) tax code can be entered. (See the open market statements page on this wiki for further details).

Although fees are supported into the IBA it is advised not to use fees as they are not currently supported on statements. Secondary taxes are not supported on bureau (London market) statements. Primary fees (credit to cedants, proportional debits to all reinsures) should be entered in the MART program.

The system displays the clients and insurers on the market for this policy along with their computed debit/credit items. Brokerage is displayed from the entry details adjacent to which is a field called ‘roundings’. Often there is a small difference (0,01 or 0,02 money units) between the sum of the debits and credits - this is displayed here. The rounding amount is aggregated into the brokerage figure. If for any reason the roundings figure is not small, please investigate the reason before progressing.

See above. client or insurer code to be debited/credited.
Amount to be debited/credited to the above account.
Accounting reference for the account as set up on the market.
Tax Column:
Primary tax calculations as configured in the MART program are displayed under the tax code column. These will get written to the IBA ledger against the ‘T’ tax code.
Fund amount:
Calculations for claims fund are displayed under the Fund Amount column. The account to which the claims fund should go can be edited if required. The values will be written against the ‘C’ tax Code.

Press [COMMIT] to proceed. This action will write the transaction to the IBA ledger. One consequence of this action is that the transaction is now ‘posted’ therefore if statements are now produced for this transaction they will no longer carry the ‘draft’ stamp.

Option 5: Treaty Statement Selection

This is a bridging screen allowing a choice between open market and bureaux statements. At least one of the appropriate types of insurer must exist on the market for you to make that selection.

1: Open Market Treaty Statements

TTYMEN open market statement.PNG

Field name Description
Displayed by the system as specified in the proportional treaty menu header. Press tab to proceed with this transaction. The next three or four fields are displayed by the system.
Pol.No etc:
Policy number, order per cent, and period details are displayed by the system. If the transaction has not been posted to the IBA ledger then the word ‘DRAFT’ will appear on the top right field – which will also appear on the printed statements.
Secondary Tax:
A secondary (local/selective) tax may be entered, which has been configured in the FEES program. The tax may be selective (only certain parties are involved in the tax) by configuring those parties exempt from tax in the IBA account. For example, a tax can be made to apply such as VAT for Nigerian brokers whereby only local reinsurers pay the VAT.

In this particular case, the VAT applies to the brokerage, not to the reinsurer’s signed share. (This is also configurable in the FEES program). Only one tax may be entered. The tax adjustments are made separately for each reinsurer on the appropriate statement. Any tax entered here is stored in the system so that the tax code can default when posting to the IBA ledger. Fees are not currently supported in this program.

Additional Information: Free format text to appear on the statement heading.

The program displays an account summary containing the first nine records and highlights the commit to proceed field.

Press [COMMIT] to proceed.

A set of statements comprising one page for each reinsurer and a treaty confirmation for the cedant is created and displayed on the screen in Microsoft Word.

This allows selected statements to be printed or e-mailed etc.

2: Bureau Treaty Statements

TTYMEN Bureau treaty statement.PNG

This is an intermediary screen allowing selection of LPSO (Lloyd's policy signing office), ILU (institute of London underwriters) or LIRMA (London international insurance and reinsurance market) statements to be prepared. The system expects the blocking bureaux account codes to be LYD, ILU and LIRMA respectively. Statements can only be produced for a given bureau provided that the bureau is represented on the market.

The bureau treaty statement screen is displayed once the bureau has been selected. The above screen shows Lloyd’s bureau. All fields are populated and can be edited as required.

TTYMEN Bureau treaty statement details.PNG

Click the proceed button to proceed with the production of the statement.

Option 6: Debit/Credit Note

Use option 6 to produce a debit or credit note for the transaction.

TTYMEN debit credit note.PNG

Option 7: Delete Unposted Transaction

TTYMEN delete unposted transaction.PNG

This option is used for deleting the transaction before it has been posted to IBA Ledger.

Version History

v6.4.0 – Updated to the latest version
v6.0.0 – Updated to the latest version
v4.2.0 – Updated to latest version
v16M - First version of this form to use the new style. No other updates except the restyle.