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.
Argo Syndicate 1200 reported direct marine GWP of £45.3m in 2017, with gross claims of £74.0m. A reinsurance balance of £23.2m reduced the loss to £22.7m. The comparable numbers for 2016 were GWP of £37.4m, gross claims of £18.0m, a reinsurance balance of minus £2.7m and an overall loss of £1.5m.
Energy (marine) GWP was £12.4m in 2017, up from £11.7m the previous year. The result was a loss of £0.9m for 2017, compared with a loss of £0.2m in 2016.
Gross liabilities in marine were £56.5m at the end of 2017, up from £17.9m at the end of the previous year. A significant increase in the reinsured amount limited the net rise to £31.1m, from £13.0m at the end of 2016.
Energy (marine) saw net liabilities rise by £3.4m year on year to £8.1m.
The syndicate noted that competition in the marketplace continued to increase in what was already an intensely aggressive market, thus maintaining the pressure on premium rates which reduced by up to 50% over the years 2012 to 2016. This was, to a large extent, apparent across the market but pricing pressure was most severe in short tail books in particular the Property, Marine & Energy divisions, and led to deteriorating results, necessitating an increase in loss reserves across these lines of business that, combined with the impact of 2017 loss events, significantly impacted the 2016 year, the syndicate’s managers said.
Marine cargo made up a relatively static 4.1% of business for 2017, while marine liability made up 5.4% (up from 3.1% in 2016 and just 1.0% in 2015).