The Lloyd’s syndicates have now published their results and, in some cases, added detail and an outlook for 2021. As in the past three years, IMN is summarizing the results from all syndicates that have a marine interest which have provided some information on the marine side.
Run-off Manager – Belinda Taylor
The principal activity of Syndicate 2014 was the underwriting of general insurance and reinsurance business at Lloyd’s until November 19th 2019, when it was placed into run-off.
The Syndicate is managed by HMA. On August 20th 2019 HMA was acquired by Hamilton UK Holdings Limited (the company’s ultimate parent company is Hamilton Insurance Group Ltd. The Hamilton Group acquired HMA from Pembroke JV Limited (ultimate parent company, Liberty Mutual Holding Co Inc).
As of December 1st 2019 all HMA UK staff were transferred to Hamilton UK Service Company Ltd.
The Syndicate underwrites Marine Liability and War & Terrorism. The Cargo line of business was ceased in 2018. The Marine Liability line of business underwrites two sub-classes, namely Marine Liability and Energy Liability. The geographical segmentation of exposures is diverse, with business placed with the Syndicate through a variety of methods. The Marine Liability line of business underwrites the following sub-classes: General Marine Liability, Energy Liability and Ports & Terminals. The War & Terrorism line of business is underwritten on a worldwide basis, with a recent focus being the development of the Political Violence sub-class.
| KPIs £000s | 2020 | 2019 |
| Syndicate capacity | – | 138,000 |
| Gross written premium | 20,893 | 177,130 |
| Loss for the financial year | (18,894) | (1,920) |
| Combined ratio | 140.6% | 107.3% |
The Syndicate reported a loss for the financial year of £18.9m (2019: £1.9m loss).
Gross written premiums for the financial year were £20.9m (2019: £177.1m), reflecting the move to a run-off status. There were no new premiums bound in 2020, with the exception of risks written under binder contracts prior to November 2019.
Net claims incurred during the year resulted in a net claims ratio of 102% (2019: 67%). This reflected loss activity during the year and a reassessment of certain ceded reinsurance recovery rates. Additional reserves were recognized in relation to potential COVID-19 losses, adding 8.0pp to the net claims ratio.
The Syndicate purchased a 2020 reinsurance programme to protect the existing 2019 Property Treaty earthquake exposure. It has also purchased loss-occurring-during reinsurance programmes for the existing Marine, Casualty and Accident & Health accounts.
Sectors
| 2020 £000s | GPW | GPE | GCI | Op exps | Reins Bal | Total |
| Direct MAT | 2,557 | 5,128 | (7,031) | (1,923) | (944) | (4,770) |
| Total Direct | 13,273 | 41,384 | (42,239) | (15,798) | 444 | (16,209) |
| Reinsurance | 7,620 | 30,504 | (32,211) | (8,507) | 1,139 | (9,075) |
| Total | 20,893 | 71,888 | (74,450) | (24,305) | 1,583 | (25,284) |
| 2019 £000s | GPW | GPE | GCI | Op exps | Reins Bal | Total |
| Direct MAT | 360 | 2,548 | (2,397) | (543) | (1,037) | (1,429) |
| Total Direct | 92,255 | 113,540 | (74,865) | (41,548) | (6,462) | (9,335) |
| Reinsurance | 84,875 | 86,003 | (68,711) | (22,856) | 3,501 | (2,063) |
| Grand Total | 177,130 | 199,543 | (143,576) | (64,404) | (2,961) | (11,398) |
Emoluments
The remuneration in relation to the Run-off Manager charged as a syndicate expense during the year comprised emoluments of £18,000. During 2019 the remuneration of the Active Underwriter charged as a syndicate expense comprised emoluments of £329,000.https://www.lloyds.com/about-lloyds/investor-relations/financial-performance/syndicate-reports-and-accounts/2020-2014