Lloyd’s Syndicate Results 2017 (49): Wednesday: Liberty Syndicate 4472

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.

Key Performance Indicators2017 $m2016 $m
Gross Premiums Written2,135.81,830.6
Net Earned Premium1,488.91,372.3
Underwriting Result(244.4)32.2
Profit for the Financial Year(118.7)196.2
Claims Ratio79%55%
Expense Ratio37%43%
Combined Ratio116%98%

Liberty Syndicate 4472, active underwriter Peter Smith, generated gross written premium growth of 16.7% year on year, driven by growth in the Syndicate’s reinsurance business and reinstatement premium relating to Hurricanes Harvey, Irma and Maria.

The increase in the Syndicate’s claims ratio to 79% (2016: 55%) was due to high catastrophe experience. 2017 experienced a high volume of large losses and the Syndicate was exposed to Hurricanes Harvey, Irma and Maria, the Californian Wildfires and the ADNOC refinery explosion. This was offset by releases in prior year losses, but net incurred claims rose from $751.9m to $1,178.1m.

The Syndicate had a net FX loss of $1.3m (2016: gain of $49.5m), mostly as a result of sterling strengthening against the Syndicate’s functional currency, the US dollar.

Segmentally, Marine, Aviation & Transport GWP was $193.7m for 2017, with a total loss of £54.1m. This compares with MAT premiums of $168.9m in 2016, which generated a total gain of $0.4m.

Total direct insurance GWP for 2017 was £1,382.9m for a loss of £150.4m. This compares with 2016, where total direct insurance premiums were $1,264.0m for a loss of $198.3m.


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