Syndicate Results 2019 #38 Syndicate 1967 WR Berkley

Active underwriter Miriam Goddard

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 ($m) Financial year 2019 2018 2017 2016 2015 2014 2013
Gross premium written ($m) 335.4 254.5 222.4 229.4 213.2 246.7 211.8
Net premium written ($m) 203.0 162.5 129.6 180.9 181.4 207.9 182.4
Net premium earned ($m) 179.3 155.7 138.1 175.5 192.1 188.8 171.9
Net claims ratio (%) 51.5 66.5 98.0 71.9 56.0 53.4 54.8
Acquisition expense ratio (%) 18.7 21.9 29.7 28.2 25.6 27.1 24.5
Admin expense ratio (%) 17.7 21.9 23.2 17.5 14.2 13.3 14.1
Net combined ratio (%) 87.9 110.3 150.9 117.6 95.8 93.8 93.4
Cash and investments ($m) 147.9 112.9 105.6 132.1 141.6 144.1 105.9
Profit / (Loss) for financial year ($m) 23.4 (16.4) (69.8) (26.6) 8.9 10.9 10.6
Pure underwriting year 2019 F’cast 2018 F’cast 2017 Actual 2016 Actual 2015 Actual 2014 Actual 2013 Actual
Lloyd’s stamp capacity ($m) 298.1 286.6 304.4 278.0 277.0 304.6 234.5
Stamp gross premium written ($m) 306.0 253.2 240.1 239.9 197.9 211.4 163.5
Profit / (Loss) for underwriting year ($m) 32.0 (3.6) (35.3) (35.6) 1.9 (2.6) 2.2
Return on capacity (%) 10.7 (1.2) (11.6) (12.8) 0.7 (0.9) 0.9

W. R. Berkley Syndicate 1967 took action to cease underwriting in non-performing classes where it did not believe that a sustainable cross cycle return was achievable. In July 2018, the Syndicate exited from the Aviation class of business, and in 2017 the Syndicate exited the Marine class of business.

Throughout 2019 the Syndicate said that it had seen strong rate improvements and growth across certain classes of business, primarily Property, Engineering & Construction, Specialty Casualty and some of the Berkley classes of business. This growth was offset by Accident & Health and Asset Protection classes which entered run-off, and the continuing run off of Aviation and Marine classes. The forecast result for 2019 is a profit of $33.3m (£25.1m).

The Syndicate said that 2020 presented the opportunity to capitalize on careful cycle management over recent years, as the market saw improving rates and customers return to the Lloyd’s market.

Sectors

Gross premium written ($000s) 2019 2018 2017
Run-off (Aviation, Marine A+H & Asset Protection) 15,204 31,065 61,777
Total 335,430 254,500 222,360

Sectors

2019 $000s GPW GPE GCI Op Exps Reins. Bal Total
Marine (60) (50) (1,543) 1 (51) (1,643)
Total 335,430 289,521 (157,493) (92,774) (17,499) 21,755
2018 $000s GPW GPE GCI Op Exps Reins. Bal Total
Marine (146) 2,082 (10,098) (1,095) 887 (8,224)
Total 254,500 245,935 (169,638) (88,733) (3,701) (16,137)

https://www.lloyds.com/investor-relations/financial-performance/syndicate-reports-and-accounts/2013/1967