Syndicate Results 2019 #33 Syndicate 1458 RenaissanceRe

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.

KPIs £m 2019 2018 Change
Gross premiums written 685.4 564.0 21.5%
Loss for the financial year (2.9) (5.7) (49.1%)
Total comprehensive loss (0.5) (5.2) (90.4%)
Combined ratio 105.9% 103.0% 2.9%
Investment return 3.5% 1.1% 2.4 %

Gross premiums written for the year were £685.4m, representing a 21.5% year on year increase. The growth in gross premiums written was across property, casualty and specialty lines. Outward reinsurance premiums for the year were £304.0m, up 73.8% on 2018. The growth in ceded spend was within both the casualty and property lines.

The reason this growth outstripped the growth in gross premiums was primarily due to a new whole account quota share cover as well as due to increased costs associated with purchased reinsurance in the current year.

The Syndicate’s net loss ratio for the year was 71.1% (2018 – 66.7%). This contributed to the comprehensive loss of £0.5m (2018: £5.2m loss). The key drivers of this were:

  • Impact of £31.7m from the 2019 catastrophe events (2018 net loss of £45.4m). The 2019 catastrophe events included Typhoon Faxai, Typhoon Hagibis and Hurricane Dorian; and
  • Unfavourable development of £37.9m (2018 favourable development of £1.7m) on prior accident year losses. The unfavourable development was driven by attritional claims and claims expenses following a deep dive on the Casualty book in relation to a small number of historical contracts that are now in run-off.

Sectors

2019 £ Gross premiums written Gross premiums earned Gross claims incurred Gross operating expenses Reinsurance balance Total
Direct MAT 11,922,816 10,556,765 (9,065,959) (1,613,272) 1,481,416 1,358,950
Total 420,431,259 375,270,992 (247,355,367) (118,655,617) (26,635,257) (17,375,249)
Reinsurance 264,996,745 277,950,671 (155,225,686) (58,494,939) (70,610,898) (6,380,852)
Grand Total 685,428,004 653,221,663 (402,581,053) (177,150,556) (97,246,155) (23,756,101)
2018 £ Gross premiums written Gross premiums earned Gross claims incurred Gross operating expenses Reinsurance balance Total
Direct MAT 11,834,558 12,648,109 (15,293,941) (1,337,689) 3,369,391 (614,130)
Total 304,534,375 274,535,972 (200,184,050) (93,883,388) 6,331,316 (13,200,150)
Reinsurance 259,416,010 243,916,444 (188,013,219) (57,083,113) 3,987,316 2,807,428
Grand Total 563,950,385 518,452,416 (388,197,269) (150,966,501) 10,318,632 (10,392,722)

https://www.lloyds.com/investor-relations/financial-performance/syndicate-reports-and-accounts/2010/03/1458