Syndicate Results 2019 #53 Syndicate 1980 Asta

Active Underwriter G Rayner

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.

Syndicate 1980 recorded a loss of $33,757,072 for 2019. (2018: loss of $39,603,295).

The Syndicate said that, despite Lloyd’s approval of its 2020 SBF, with a small increase in underwriting capacity, poor underwriting results for the Syndicate in 2018 and the ACSN 1980 portfolio reinsured into the 2018 year of account, along with prior-year’s deterioration, limited the pool of potential capital providers for 2020. Coupled with the challenges in growing the relatively small Syndicate portfolio and likely continued future market challenges, Pioneer determined that the cost of capital within the Syndicate structure was no longer economically efficient when compared with its other capacity provider arrangements.

The Syndicate’s sole capital provider on the 2018 and 2019 years of account, Liberty Corporate Capital Ltd, shifted its focus away from supporting businesses with a US focus, such as Pioneer, and exited the third-party capital market.

As a result, on November 14th 2019 it was announced that the Syndicate would enter voluntary run off on the 1st January 2020.

KPIs ($000s) 2019 2018 Change
GWP 190,975 251,237 (24.0%)
Profit/Loss (33,757) (39,603) (14.8%)
Combined ratio (136.2%) (172.7%) (36.5pp)

Sectors

2019 $000s GPW GPE GCI Op exps Reins Bal Total
Direct Marine 13,825 16,097 (7,194) (2,265) (5,636) 1,002
Total Direct 167,582 182,323 (127,979) (25,658) (39,809) (11,123)
Reinsurance 23,393 45,742 (61,003) (6,437) 36 (21,662)
Grand Total 190,975 228,065 (188,982) (32,095) (39,773) (32,785)
2018 $000s GPW GPE GCI Op exps Reins Bal Total
Direct Marine 13,182 5,763 (7,820) (1,065) 1,267 (1,855)
Total Direct 160,979 68,447 (70,190) (13,007) 15,244 494
Reinsurance 90,258 54,148 (66,708) (6,089) (23,408) (42,057)
Grand Total 251,237 122,595 (136,898) (19,096) (8,164) (41,563)

https://www.lloyds.com/investor-relations/financial-performance/syndicate-reports-and-accounts/2018/1980