Syndicate results 2018 #59 Syndicate 4711 Aspen

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 4711 Aspen (Active Underwriter D Harrell) generated a loss of £25.0m for 2018, compared with a loss of £15.5m the previous year. Overall premiums for 2018 fell to £387.8m, from £396.6m the previous year.

The loss for 2018 was attributed to challenging market conditions, higher-than-expected attritional losses in the current accident year and a deterioration in prior-year losses (primarily Professional Indemnity).

The syndicate’s Marine, Energy & Aviation division covers aviation (ceased underwriting August 1st 2018) cargo (ceased underwriting November 21st 2018) , marine & energy liability, marine hull (ceased underwriting August 1st 2018) offshore energy and construction, specie and upstream energy.

Marine, aviation and energy insurance saw GWP decrease to £170.3m, from £177.1m in 2017. Current year losses in marine hull and marine energy were offset by prior-year reserve releases due to favourable claims experience.

KPI 2018 £m

Capacity 566.0
GWP 387.8
GEP 409.4
NEP 193.2
Inv. Return 0.5
Underwriting result (21.1)
Expense ratio 44.4%
Claims Ratio 66.8%
Combined Ratio 111.2%

Capacity decreased from £566m in 2018 to £463m in 2019, mainly because of the four lines of business exited (aviation, marine hull, cargo and professional indemnity).

Segmental information

2018 £’000 Gross written premiums Gross premiums earned Gross claims incurred Gross operating expenses Reins. Bal Total
Direct MAT 31,964 42,558 (39,489) (11,423) 5,883 (2,471)
Direct Energy 42,686 43,863 (18,059) (15,254) (8,691) 1,859
Total Direct 238,622 236,442 (204,515) (85,274) 23,230 (30,117)
Reinsurance 149,146 172,948 (117,679) (53,298) 6,540 8,511
Total 387,768 409,390 (322,194) (138,572) 29,770 (21,606)
2017 £’000 Gross written premiums Gross premiums earned Gross claims incurred Gross operating expenses Reins. Bal Total
Direct MAT 42,866 41,904 (41,064) (13,711) (10,919 (1,952)
Energy 32,617 33,174 (19,823) (10,854) (7,934) (5,437)
Total Direct 225,419 215,768 (150,700) (70,598) (8,441) (13,971)
Reinsurance 171,169 181,351 (116,306) (59,337) (1,641) 4,067
Total 396,588 397,119 (267,006) (129,935) (10,082) (9,904)

Aspen prints its syndicate results pdf in image form, so the numbers have to be transcribed manually. Therefore, E&OE.

https://www.lloyds.com/investor-relations/financial-performance/syndicate-reports-and-accounts/2009/03/4711