Syndicate results 2019 #26 Syndicate 5000 Travelers

The Lloyd’s syndicates have now published their results and, in some cases, added detail and an outlook for 2020. As in the past two years, IMN is summarizing the results from all syndicates that have a marine interest which have provided some information on the marine side.

The result for year to December 31st 2019 was a loss of £107.9m, compared with a loss of £29.7m in 2018. The combined ratio rose to 136.1% from 110.3% the previous year.

The deterioration in the combined ratio was due to a higher level of adverse prior year reserve development of £62.9m (2018: £17.4m). That drove a 15pp increase in the loss ratio year on year. A large Professional Risks current year loss added 4.8pp to the loss ratio.

The syndicate said that the priority for 2020 would be to return to an underwriting profit, taking the actions necessary to address the underperforming parts of its portfolio. It said that there had been a significant degree of remediation work during 2019 within a number of lines and the rating environment during 2019 had been strong, with rate increases of 9% being reported during the underwriting year.

KPIs £000s 2019 2018
GPW 369,787 354,004
Gross claims (296,525) (220,100)
Balance on tech a/c (107,711) (29,910)
Comprehensive profit/loss (96,985) (27,461)

Sector

2019 £000s GPW GPE Gross Claims Inc Gross Op Exp Reins Bal Total Net tech prov
Direct MAT 64,111 74,922 (80,301) (36,883) 6,812 (35,450) (133,653)
Direct Total 255,696 263,826 (271,693) (107,468) 17,716 (97,619) (437,828)
Reinsurance 114,091 96,657 (84,929) (21,983) (4,307) (14,562) (162,949)
Grand Total 369,787 360,483 (356,622) (129,451) 13,409 (112,181) (600,777)
2018 £000s GPW GPE Gross Claims Inc Gross Op Exp Reins Bal Total Net tech prov
Direct MAT 68,354 71,390 (47,086) (25,049) (6,139) (6,883) (115,439)
Direct Total 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)
Grand Total 354,004 363,424 (245,875) (127,516) (22,727) (32,693) (560,758)

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