Syndicate Results 2019 #30, Syndicate 4141, HCC Underwriting Ltd

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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.

HCC Underwriting Ltd is owned ultimately by Tokio Marine Holdings. Its capital is provided by Nameco 808, an affiliate of Tokio Marine HCC Group, also ultimately a subsidiary of Tokio Marine Holdings Inc.

KPIS £m 2019 2018
GWP 146.2 160.7
Underwriting profit 4.5 18.2
Profit for fin. yr 7.5 17.1
Net loss ratio 54.5% 41.9%
Combined Ratio 96.5% 85.5%

The increase in the net loss ratio for 2019 was the result of several large claims incurred during the year. Large catastrophe experience for 2019 was nil. Prior accident reserve releases reduced the net loss ratio by 6.6pp (2018, 3.2%).

Investment return for the year swung to a £5.3m gain from a £0.3m loss in 2018.

Excluding a £7.5m increase in turnover due to the weakening of the average sterling/dollar rate, GWP fell by £22.0m. However, marine hull GWP increased by £4.9m year on year.

Sector

2019 £’000s GWP Gross premiums earned Gross claims incurred Gross op exps Reins. Bal. Net underwriting result
Direct MAT 17,073 17,783 (22,882) (7,613) 5,100 (7,612)
Total direct 117,292 120,143 (63,645) (46,854) (8,299) 1,335
Reinsurance assumed 28,864 33,785 (34,494) (8,617) 12,501 3,175
Total 146,156 153,928 (98,139) (55,481) 4,202 4,510
2018 £’000s GWP Gross premiums earned Gross claims incurred Gross op exps Reins. Bal. Net underwriting result
Direct MAT 15,581 15,717 (12,490) (6,418) (1,737) (4,928)
Total Direct 117,810 114,139 (49,418) (43,123) (20,475) 1,123
Reinsurance Assumed 42,884 40,736 (6,043) (11,418) (6,247) 17,028
Total 160,694 154,875 (55,461) (54,541) (26,722) 18,151

https://www.lloyds.com/investor-relations/financial-performance/syndicate-reports-and-accounts/2009/03/4141