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.
Active Underwriter M A Mortlock
Tokio Marine Kiln Syndicates Limited (TMKS) is the managing agent of Tokio Marine Kiln Syndicate 1880 (Syndicate 1880), Tokio Marine Combined Syndicate 510 (Syndicate 510), Tokio Marine Kiln Catastrophe Syndicate 557 (Syndicate 557) and Tokio Marine Kiln Life Syndicate 308 (Syndicate 308). TMKS is a wholly-owned subsidiary of Tokio Marine Kiln Group Limited (TMKGL). TMKGL and its subsidiaries are referred to as Tokio Marine Kiln (TMK). TMKGL’s ultimate parent is Tokio Marine Holdings, Inc., Japan (Tokio Marine).
The Syndicate’s business attaching to the 2021 and post years of account are written on a split stamp basis with Syndicate 510, split 20% to the Syndicate and 80% to Syndicate 510. Business attaching to the 2020 & prior years of account did not form part of the split stamp arrangement. The Syndicate is managed by TMKS, with capital provided on an aligned basis by Tokio Marine Underwriting Limited, a wholly owned subsidiary of Tokio Marine & Nichido Fire Insurance Co., Ltd.
| KPI £m | 2023 | 2022 | 2021 |
| GWP | 444.1 | 404.5 | 314.5 |
| NEP | 280.7 | 244.7 | 194.0 |
| P/L | 58.6 | 11.5 | 34.7 |
| Inv Ret | 14.9 | (7.7) | (0.8) |
| Claims ratio | 44.8% | 47.9% | 36.7% |
| Combined ratio | 85.5% | 91.8% | 82.1% |
Gross written premium for the year of £444.1 million (2022: £404.5 million) generated a profit of £58.6 million (2022: £11.5 million) and a combined ratio of 85.5% (2022: 91.8%). At constant rates of exchange, gross written premium increased by 10.6% compared to prior year, primarily driven by growth in the Property & Motor, Portfolio Solutions, Liability and Aviation divisions.
The net claims ratio of 44.8% compares favourably to prior year (47.9%), driven by a catastrophe claims ratio of 4.7% (2022: 21.9%). The prior year was significantly impacted by provisions for potential exposures arising from the Ukraine War and weather-related losses from Hurricane Ian and Winter Storm Elliot. Together, these events resulted in higher losses to the Syndicate compared to the catastrophes reported in 2023, which included losses arising from the Hawaii Wildfires, the Sudan Conflict, Cyclone Gabrielle and Hurricane Otis.
The Syndicate also benefited from benign attritional claims experience across almost all divisions, most notably within Property & Motor, Marine & Energy and Cyber & Enterprise Risk that resulted in a claims ratio, excluding catastrophe losses and reserve releases on closed years, of 39.4% (2022: 38.6%).
Reserve deteriorations on prior year losses contributed 0.7% (2022: 12.6% reserve release) to the net claims ratio driven by an increase in provisions held for potential exposures arising from the Ukraine War
2024 Outlook
The rating environment across the Property portfolio gained momentum in 2023 and is expected to continue into 2024. Ongoing geopolitical uncertainty is expected to result in increased demand for the Special Risks division, while targeted growth is also forecast across the Liability and Cyber & Enterprise Risk divisions as the Syndicate continues to diversify the underwriting portfolio.
On 5 February 2024, TMKS submitted a notice of intention to Lloyd’s proposing to merge the Syndicate with Syndicate 510 for the 2025 year of account. The merger process will be run in accordance with the Lloyd’s Major Syndicate Transactions bylaw and final approval rests with the Council of Lloyd’s following a ballot of the members of both syndicates.
Segmental Analysis
| 2023 £m | GPW | GPE | GCI | Net op exps | Reins Bal. | Total |
| MAT | 47.2 | 41.7 | (39.3) | (18.7) | 4.2 | (12.1) |
| Reinsurance accepted | 38.7 | 36.1 | (4.1) | (4.0) | (2.3) | 25.7 |
| Total | 444.1 | 411.1 | (190.6) | (147.0) | (32.7) | 40.8 |
| 2022 £m | GPW | GPE | GCI | Net op exps | Reins Bal. | Total |
| MAT | 34.2 | 30.3 | (46.5) | (13.9) | 12.6 | (17.5) |
| Reinsurance accepted | 53.1 | 50.6 | (21.6) | (8.9) | 1.0 | 21.1 |
| Total | 404.5 | 374.1 | (211.8) | (137.2) | (5.1) | 20.0 |
| £m | 2023 | 2022 |
| Emoluments | 0.1 | 0.1 |
https://assets.lloyds.com/media/539478a7-67c5-4c8c-8b08-ff70136fa2f2/SRA1880a.pdf