Lloyd’s Syndicate Results 2017 (27): Starstone Syndicate 2008

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.

The principal activity of Enstar’s Starstone Syndicate 2008 is to provide finality for Lloyd’s run off businesses, either through reinsurance to close (RITC) or quota share agreements. Its most recent high profile agreement was in 2016 when it reinsured syndicate 2468’s 2007 and prior years of account and a 100% quota share agreement on its 2008 Italian Public Hospital liabilities was written. It did not write any 2017 RITC deals in year of account 2017.

Syndicate 2008 has entered into two RITC agreements this year. On January 29th it signed an agreement with Axis Managing Agency and on February 16th it signed an agreement with Neon Underwriting.

Under the Axis deal Syndicate 2008 will reinsure to close the 2015 and prior underwriting years of account of Novae Syndicate 2007. Syndicate 2008 will assume net reserves of £605.7m and will receive a cash consideration equal to this amount.

Under the Neon Underwriting agreement Syndicate 2008 will reinsure to close the 2015 and prior underwriting years of Neon’s syndicate 2008 (i.e. from 2008 to 2015, the years prior to 2008 already having been taken on in a previous transaction), assuming net reserves of £337.8m, receiving a cash consideration equal to this amount.

Starstone Syndicate wrote GPW £2.16m in marine, aviation & transport (direct), for a net technical result of £2.15m.

Total GPW for 2017 was £2.97m, with a net technical result of £11.4m. A major cause of the high technical results was the negative gross operating expenses – minus £932,000 for MAT and minus £7.85m total.

For 2016 MAT GPW were £1.13m, for a net technical result of £892,000. The syndicate as a whole had GPW of £126.4m (nearly all of it under ‘Other’) for a net gain of £1.74m.

https://www.lloyds.com/investor relations/financial performance/syndicate reports and accounts/2016/2008