Syndicate results 2018 #42 Syndicate 2255 (Faraday, Closed)

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.

Faraday Underwriting Limited (Faraday) is the Managing Agent of Syndicate 2255. It took over this role from Capita Managing Agency Limited (CMA) on March 21st 2017. Faraday is ultimately owned by Berkshire Hathaway Inc.

With effect from January 1st 2018 Syndicate 2255 ceased, having been subject to an RITC contract and was closed into Syndicate 435, which is also managed by Faraday.

Syndicate 2255 underwrote in 2011:

  • The RITC of Syndicate 1861 2008 and prior years of account. This was achieved by way of a transfer of assets.
  • The RITC of the 1998 to 2001 years of Syndicate 340 was achieved by way of a conventional third party RITC and has been accounted for in the underwriting account accordingly.

Syndicate 1861 has a broad mixture of liabilities, including Excess of Loss, Liability, Marine and Aerospace. The Liability accounts include the following sub-classes: Homebuilders and Single Job Construction. In addition to the above there are a number of other Lloyd’s Syndicates which themselves had been previously closed into Syndicate 1861, namely Syndicates 62, 744, 892, 1242 and 1265.

Syndicate 340 has a narrower mixture of liabilities, which may be split between World Trade Centre (WTC) and non-WTC, where non-WTC includes Aviation, Non-marine and Space.

Segmental analysis

2017 £000GWPGPEGross claimsNet op expReinsurance BalTotal
Direct MAT4141(179)(23)490329
Energy – Marine & Non marine(37)30(7)
Total direct4343108(27)468592
Reinsurance acceptances(10,893)(10,893)98,588(798)(85,492)1,405
Total(10,850)(10,850)98,696(825)(85,024)1,997

 

2016 £000GWPGPEGross claimsNet op expReinsurance BalTotal
Direct MAT6565283(250)(212)(114)
Energy – Marine & Non marine1212184(62)9341,068
Total direct1021027,152(691)(238)6,325
Reinsurance acceptances(576)(576)3,118(320)(420)1,802
Total(474)(474)10,270(1,011)(658)8,127

https://www.lloyds.com/investor-relations/financial-performance/syndicate-reports-and-accounts/2018/2255