Lloyd’s syndicates marine results (11): Catlin syndicate 1209

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 the Syndicate 1209 (“the Syndicate”) is to underwrite general insurance business within the Lloyd’s of London market. The business conducted is principally direct insurance and facultative reinsurance and the main lines of business are Marine and Offshore Energy, Aviation, Middle Market insurance, Specie, Crisis Management, Political Risks, Equine and Design Professional.

The Syndicate has no direct employees. Staff working on the affairs of the Syndicate are transferred into a newly formed group service company, XL Catlin Services SE (“XLCSSE”), an approved FCA regulated intermediary, on the 31 December 2016.

2015 underwriting year was the Syndicate’s last year of participation. As from January 1st 2018 it was reinsured to close into Syndicate 2003.

For 2017 the syndicate had GWP of minus £1.52m in marine, aviation and transport (MAT). Gross earned premiums were £6.46m. Gross claims incurred were minus £14.61m. After net operating expenses and a reinsurance balance of more than £17m, the total gain was £7.91m, This compared with a total gain in MAT of £4.90m in 2016.

For Syndicate 1209, favourable run-off deviation (prior accident year release) of $8.5m was experienced driven predominantly from favourable experience and IBNR reductions on Energy, Aerospace and Marine lines which were partially offset by unfavourable experience observed on Casualty and Professional lines of business.