Syndicate Results 2019 #52 Syndicate 1947 Hamilton

Active Underwriter N. Attwood

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.

Capital to support the underwriting of Syndicate 1947 is provided by GIC Re, India, Corporate Member Ltd, which is ultimately owned by General Insurance Corporation of India (GIC).

Domestic Marine

This portfolio consists of a selection of non-proportional treaty and direct & facultative marine business written by GIC Re from Indian domestic insurers.

Specialty Reinsurance

This portfolio is focused on worldwide terrorism, complimented by a range of composite marine layers.

KPIs £000s 2019 2018
Syndicate capacity 77,500 55,000
Gross written premium 58,107 23,639
Profit/Loss (1,586) (11,713)
Combined ratio 104.9% 217.9%
Investments 8,935 2,270

The Syndicate reported a loss for the year of £1.6m. This consisted of a 2018 year of account profit of £3.1m and a 2019 year of account loss of £4.7m, which reflected the timing of the earning of underwriting income.

On an ultimate basis, the syndicate expects to recognize a loss of £8.3m on the 2018 underwriting year and a £1.3m profit on the 2019 underwriting year.

The Syndicate reports gross written premium for the financial year of £58.1m (2018: £23.6m).

The net loss ratio of 78% (2018: 170%) reflected the Syndicate’s exposure to two catastrophe events, Typhoon Faxai and Hagibis. Losses incurred on these events were significantly less than the catastrophe events experienced in 2018.

Syndicate assets increased by £23.1m to £52.6m (2018: £29.5m). Total liabilities increased by £24.6m to £65.9m (2018: £41.3m). The increase in both assets and liabilities was due to the additional, second year of account commencing. The increase in liabilities vs assets reflected the loss activity and reserving movements in the year.

Sectors

2019 £000s GPW GPE GCI Op exps Reins Bal Total
Direct MAT 278 232 (109) (52) (110) (39)  
Total Direct 8,818 7,756 (5,514) (1,554) (974) (286)
Reinsurance 49,289 43,357 (30,800) (8,713) (5,450) (1,606)
Total 58,107 51,113 (36,314) (10,267) (6,424) (1,892)

The Syndicate’s business for the year ended 31 December 2018 was 100% reinsurance.

https://www.lloyds.com/investor-relations/financial-performance/syndicate-reports-and-accounts/2018/1947