Syndicate results 2018 #22 Tokio Marine Kiln syndicate 1880

The Lloyd’s syndicates have now published their results and, in some cases, added detail and an outlook for 2019. As last year, IMN is summarizing the results from all syndicates that have a marine interest which have provided some information on the marine side.

Syndicate 1880 (TMK), (active underwriter Paul Culham), writes reinsurance, property, construction, engineering, accident and health, marine, liability and aviation business. These business areas are predominantly short-tail.

More than 60% of premium is from the US (2018, £162m out of £271.4m).

2018 £’000s2017 £’000s
Gross written premium271,409246,484
Net earned premium218,461188,586
Result for the financial year712(24,475)
Claims ratio60%77%
Combined ratio100%114%

The Syndicate said that the net claims ratio reflected another year of heightened catastrophe experience, with the largest events being Hurricanes Florence and Michael as well as Camp and Woolsey Wildfires. Events in 2018 generated significant losses, but were less in total than the 2017 catastrophe losses, which included Hurricanes Harvey, Irma and Maria. This meant that there was an improved year on year loss ratio. Due to the aforementioned 2018 events the Board of Tokio Marine Kiln Syndicates Limited approved a cash call of US$30m in February 2019 from the member of the 2018 year of account.

Year ended 31 December 2018Gross premiums written £’000sGross premiums earned £’000sGross incurred claims £’000sGross operating expenses £’000sReinsurance balance £’000sTotal £’000sNet technical provisions £’000s
Direct Marine, aviation and transport5,2395,816318(808)(881)4,4454,848
Reinsurance acceptances79,89874,280(57,337)(27,915)8,907(2,065)154,054
Total271,409264,247(160,829)(97,083)(6,266)69380,043

 

Year ended 31 December 2017Gross premiums written £’000sGross premiums earned £’000sGross incurred claims £’000sGross operating expenses £’000sReinsurance balance £’000sTotal £’000sNet technical provisions £’000s
Direct Marine, aviation and transport4,2955,716(5,984)(683)(425)(1,376)9,531
Reinsurance acceptances67,18167,908(49,020)(35,762)9,196(7,678)120,116
Total246,484238,190(176,753)(87,573)(588)(26,724)336,925

https://www.lloyds.com/investor-relations/financial-performance/syndicate-reports-and-accounts/2015/1880