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 Managing Agency had a busy 2017. The Atlantic hurricanes Harvey, Irma and Maria, plus the Mexico earthquake and California wildfires had an adverse impact on the financial performance for the year.
In addition, there was a change in management of the syndicate following the acquisition of Novae Group on October 2nd 2017 for £462.9m by Axis Specialty UK Holdings Ltd, a subsidiary of Bermuda based, New York listed, Axis Capital Holdings.
As part of the integration of Axis and Novae, the managing agent’s agreement for the Syndicate was novated from Novae Syndicates Ltd to Axis managing Agency Ltd, effective January 1st 2018.
The syndicate booked redundancy costs of £2.1m for 2017 (2016: nil)
The syndicate said that Property, MAPS and Run Off constituted its three main activities and would continue so to do for 2018 and beyond. In Q2 2017 it closed its casualty division.
In January 2018 it entered into a reinsurance to close (RITC) with Enstar’s Starstone Syndicate 2008 in respect of all 2015 and prior business. The financial impact of that transaction was reflected in the loss reserves on December 31st 2017.
For 2017, marine, aviation, political risk and specialty (MAPS) contributed £347.7m of gross premiums, out of a total of £843.5m. This compared with £349.5m out of £952.8m the previous year.
Subdivided, marine and energy contributed GPW of £164.9m (2016: £183.6m).
MAT direct booked GPW of £51.1m in 2017, for a net loss of £8.4m. This compares with £68.6m GPW in 2016 for a net loss of £1.9m
The syndicate posted a loss of £18.6m for 2017, compared with a loss (restated) of £26.2m the previous year. Stamp capacity was £800m, which was retained for 2018. Axis Capital Holdings ltd provides 100% of the capacity via corporate member Novae Corporate Underwriting Ltd.