Syndicate results 2018 #60 Syndicate 5000 Travelers

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.

The principal activity of Syndicate 5000 (Active Underwriter N Rnjak) predominantly transacts non-liability classes:

  • Construction and Special Risks
  • Aviation
  • International Marine
  • Retail Marine
  • Property
  • Energy
  • Professional Risks

The result for 2018 was a loss of £29.7m, compared with a loss of £82.0m the previous year. The combined ratio was 110.3%, down from 130.1% in 2017.

The Syndicate said that the reduction in the combined ratio year on year reflected a more normal level of catastrophes after the impact of Hurricanes Harvey, Irma and Maria in 2017, and a reduced level of adverse prior year reserve development (minus £17.3m in 2018 compared with minus £28.4m in 2017). The combined ratio excluding prior year development and catastrophe losses was 99% (2017: 97.6%).

Gross written premiums for 2018 were £354m, 2% lower than the prior year figure of £362m. This reduction was mainly driven by the Syndicate ceasing to write Property Open Market business during the year.

Looking ahead, the syndicate said that the priority during 2019 was to return the Syndicate to an underwriting profit and to take the actions necessary to address the underperforming parts of its portfolio. “The improving rate environment experienced in the fourth quarter of 2018, where rates increased 7%, provide some encouragement that the market will be conducive to the execution of the actions necessary to achieve this”, the Syndicate said.

Segmental Information

2018 £’000 Gross written premiums Gross premiums earned Gross claims incurred Gross operating expenses Reins. Bal Total Net technical provisions
Direct MAT 68,354 71,390 (47,086) (25,049) (6,139) (6,883) (115,439)
Direct Energy 25,107 26,222 (15,826) (9,201) (2,255) (1,059) (29,303)
Total Direct 296,821 291,745 (195,909) (101,161) (21,769) (27,093) (454,961)
Reinsurance 57,183 71,679 (49,966) (26,355) (958) (5,600) (114,797)
Total 354,004 363,424 (245,875) (127,516) (22,727) (32,693) (569,758)
2017 £’000 Gross written premiums Gross premiums earned Gross claims incurred Gross operating expenses Reins. Bal Total Net technical provisions
Direct MAT 76,955 68,185 (56,969) (26,158) (8,557) (23,499) (100,974)
Direct Energy 23,930 21,202 (14,499) (8,134) (2,661) (4,092) (28,399)
Total Direct 297,317 273,503 (245,016) (104,924) (575) (77,012) (437,805)
Reinsurance 64,435 69,534 (59,047) (26,675) 101 (16,087) (104,303)
Total 361,752 343,037 (304,063) (131,599) (474) (93,099) (542,108)

https://www.lloyds.com/investor-relations/financial-performance/syndicate-reports-and-accounts/2006/06/5000 000000000000000