Lloyd’s Syndicate Results 2017 (16): Axis Syndicate 1686

With the 2017 numbers for the Lloyd’s syndicates now in, IMN over the next few weeks will report on the marine numbers for those syndicates with a significant interest in this area.

Axis syndicate 1686, the Lloyd’s syndicate of Bermuda-based Axis Capital Holdings, was managed by Asta on a turnkey basis until being transferred to the newly approved Axis managing Agency Ltd on August 4th 2017. During last year Axis acquired Novae Group, with Syndicate 2007 transferring to the management of the Axis manging agency on January 1st 2018.

Gross written premiums for the syndicate in 2017 were $397.9m ($233.7m net), up 36.6% year on year from $291.2m ($170.4m net) in 2016.

There was a loss of $119.0m (2016 restated: profit of $1.3m), primarily a result of the major Atlantic hurricanes Harvey, Irma and Maria, the Mexican earthquake and the California wildfires. The combined ratio for 2017 was 158.16%, up from 101.44% the previous year.

Axis said that the syndicate in 2017 initially saw a continuation of the competitive market, with rates falling by 2.2% over the while year. However, Axis said that “there was a noticeably improving trend in the final quarter across most classes”.

Axis offers a detailed breakdown of its underwriting. For the calendar year 2017:

·       Marine Hull GWP was $2.29m, up from $2.02m in 2016.

·       Marine Liability GWP was $4.2m, down from $4.50m in 2016.

·       Marine Cargo GWP was $37.51m, up from $28.63m in 2016.

·       Marine War GWP was $1.42m, down from $1.71m in 2016.

·       Renewable energy offshore GWP was $2.18m, down from $3.40m in 2016.

·       Offshore Energy Gulf of Mexico Wind GWP was $31,000, down from $589,000 in 2016

·       Other Offshore Energy Wind GWP was $13.17m in 2017, down from $19.74m in 2016.

In its segmental analysis, marine direct insurance booked GWP of $4.84m (2016: $3.66m) for a loss of $1.80m (2016: gain of $1.49m).

Direct Energy Marine GWP was $10.41m (2016: 10.47m) for a net loss of $2.24m in 2017 (2016: loss of $2.55m).

The figures are before investment returns.