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.
Regional President D Furby noted that 2018 had been “another difficult year” for the Lloyd’s market but said that, despite this, syndicate 2488 had a good year.
The syndicate underwrote £440.1m in GWP, down 4% on the £459.5m written in 2017. The decrease was primarily exchange-rate driven.
The syndicate booked a gain of £34.9m for 2018, benefiting from reserve releases of £21.0m and some improvement in underlying accident year losses.
Furby said that underwriting conditions in the Lloyd’s and London insurance markets had been challenging for a number of years, with rates reaching unsustainable levels in many classes. He said that we were now starting to see signs of firming, with adequate pricing now secured in a number of business lines. Some sub-classes achieved “much-needed” double-digit increases. “The market dislocation that we are currently seeing as a result of withdrawals of or reductions in capacity following the Lloyd’s ‘Decile 10’ review is playing to Chubb’s strengths”, said Furby.
The most notable increases were within the Aviation, Financial Lines and Property portfolios.
Chubb applauded Lloyd’s proposals to tackle “underperforming syndicates, address the high operational costs and inefficiencies in the London market operating model and drive sustainable, profitable growth in a modern and increasingly digitalised marketplace”.
Chubb made a number of changes to align the governance structure of the managing agency with Chubb’s Brexit plans. One such change was the appointment of Matthew Shaw to the position of CEO, Chubb Underwriting Agencies Limited (CUAL) effective January 1st 2019. Shaw continues to serve as Active Underwriter for Syndicate 2488.
Furby also expressed thanks to his predecessor, Andrew Kendrick, who retired from Chubb at the end of 2018. ” Andrew’s contribution to building a business that not only survived but thrived through challenging times such as 9/11 and the global financial crisis cannot be overstated: Syndicate 2488 is in fantastic shape and I am delighted to have the opportunity to continue to build on that success”, said Furby.
Syndicate 2488 underwrites a diverse portfolio, of which marine made up 18% last year. Property is the largest single contributor, at 37%.
|Gross premiums written||440.1||459.5|
|Net premiums written||350.8||368.1|
|Profit for financial year||34.1||13.4|
The 2019 capacity of Syndicate 2488 has been set at £405.0m, the same as for 2018.
Syndicate 2488’s catastrophe losses net of reinsurance recoveries during 2018 amounted to £18.0m (2017: £61.3m). Excluding catastrophe losses and prior period development, the accident year loss ratio for the year was 53.0% (2017: 55.1%).
|2018 £000||Gross premiums written||Gross premiums earned||Gross Claims Incurred||Gross Operating Expenses||Reinsurance balance|
|2017 £000||Gross premiums written||Gross premiums earned||Gross Claims Incurred||Gross Operating Expenses||Reinsurance balance|
There was a £1.045m strengthening of reserves in MAT for 2018 (out of a total release of £20.988m). In 2017 there was a release of £11.857m out of a total release of £15.225m.