The Lloyd’s syndicates have now published their results for 2023 and, in some cases, added detail and an outlook for 2024. Some have stuck to the bare bones. As in the previous few years, IMN is summarizing the results from all syndicates that have a notable marine interest, if they have provided some information on the marine side.
Syndicate Active Underwriter Steven Tebbutt
The managing agent responsibility for the Syndicate was novated on September 1st 2021 from Arch Managing Agency Limited to IQUW SML. IQUW SML is, through intermediate holdings companies, a wholly owned subsidiary of IQUW Holdings Bermuda Ltd.
The Syndicate was remediated and repurposed in 2021 after its acquisition by IQUW Bermuda Holdings Ltd and its subsidiaries as part of the group’s strategy to expand from its core motor business and enter specialty commercial lines and reinsurance.
KPIs
| Financial Year £m | 2023 | 2022 |
| Gross premium written | 736.6 | 544.0 |
| Net premiums written | 587.8 | 440.5 |
| Net earned premium | 510.1 | 332.4 |
| Net incurred claims | (238.4) | (240.1) |
| Investment income | 14.0 | 0.6 |
| Operating expenses | (175.1) | (101.4) |
| Movements on foreign exchange | (2.6) | (5.2) |
| Profit/(Loss) for the financial year | 108.0 | (13.7) |
| Claims ratio | 46.7% | 72.2% |
| Expense ratio | 34.3% | 30.5% |
| Combined Ratio | 81.1% | 102.7% |
The underwriting stance on property reinsurance led to strong performance despite insured Nat Cat losses in 2023 exceeding $100bn. There were strong margins across most classes.
In 2023, the Syndicate purchased per occurrence and aggregate reinsurance cover to protect the Direct Property and Property Treaty lines of business from large catastrophe loss. Separate reinsurance was purchased to protect against the potential systemic occurrence of losses across the marine, energy, political violence, and terrorism lines. Proportional reinsurance was purchased to protect the cyber and professional lines portfolios. Further reinsurance was purchased for other classes as appropriate.
Total investment return was £14.0m (2023: 3.4%, 2022: 1.1%) including investment income for the Syndicate of £8.3m (2022: £2.0m). The Syndicate’s invested assets totalled £347.2m at 31 December 2023 (2022: £177.5m). 2023 was a mixed year, with ongoing high levels of inflation resulting in interest rate rises continuing with uncertainty about future rate direction due to the risk of recession and an economic hard landing. However, the second half of the year saw positive investment returns, driven by a decline in yields as markets reacted to signs of easing inflationary pressures which carried into the last two months of the year.
For the 2023 year of account, £563.3m ( 97.0%) of the capital to support the Syndicate’s underwriting is provided by IQUW Corporate Member Limited. The remaining £17.5m ( 3.0%) of the Syndicate’s capacity provided by Alpha Insurance Analysts Ltd based on a two-year limited tenancy agreement. Alpha were offered 2.5% for the 2024 year of account as ICP General Partner Limited have taken a 0.5% capacity individually.
Segmental Analysis
| 2023 £m | GPW | GPE | GCI | NOE | Reins.Bal | Total |
| Direct Marine | 10.4 | 15.9 | (12.7) | (4.9) | 0.2 | (1.5) |
| Energy-Marine | 11.1 | 10.2 | (5.4) | (2.9) | (1.1) | 0.8 |
| Total Direct | 405.9 | 356.2 | (159.7) | (97.8) | (51.8) | 46.9 |
| Reinsurance | 330.7 | 293.7 | (119.1) | (77.3) | (47.4) | 49.9 |
| Total | 736.6 | 649.9 | (278.8) | (175.1) | (99.2) | 96.8 |
| 2022 £m | GPW | GPE | GCI | NOE | Reins.Bal | Total |
| Direct Marine | 6.7 | 7.2 | (5.8) | (1.9) | 0.2 | (0.3) |
| Energy-Marine | 8.1 | 6.3 | (4.6) | (1.6) | (0.1) | — |
| Total Direct | 335.2 | 257.5 | (182.6) | (62.2) | (9.4) | 3.3 |
| Reinsurance | 208.8 | 166.6 | (138.2) | (39.2) | (1.6) | (12.4) |
| Total | 544.0 | 424.1 | (320.8) | (101.4) | (11.0) | (9.1) |
Emoluments
| £000’s | 2023 (£m) | 2022 | 2021 |
| Active underwriter | 0.4 | 355 | 262 |
https://assets.lloyds.com/media/44031a56-70ee-4b08-9c3a-116abf908071/SRA1856a.pdf