Syndicate Results 2020 #37 Syndicate 2088 Chaucer

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.

Active Underwriter – J Sutcliffe

KPIs £m 2020 2019 Change
GWP (0.6) 123.4 (124.0)
NEP 35.5 152.3 (116.8)
Underwriting result (2.7) (13.1) 10.4
Inv ret 3.5 5.1 (1.7)
Comp profit/loss (2.7) (5.3) 2.6
CR 107.6% 108.6% 1pp

At the end of December 2018 China Re became the ultimate parent of the syndicate’s managing agent, following China Re’s acquisition of The Hanover. The novation of the managing agency agreement from Catlin Underwriting Agencies Ltd to Chaucer Syndicates Ltd completed on April 1st 2019.

For the 2020 planning process it was decided that Syndicate 2088 would be merged into Chaucer Syndicate 1084 for the 2020 underwriting year.

Future strategy entailed an orderly run-off with a view to closure of syndicate 2088 at 2021 year-end via a RITC agreement with Syndicate 1084.

For 2020 Gross written premium reduced significantly to £(0.6)m from £123.4m the year before. This was driven by the move into run-off, as well as the by the cancellation of some facilities and downwards premium adjustments throughout 2020 – partly due to the early commutation of several intra-group whole account quota share contracts.

The Syndicate recorded a net loss ratio of 55.2% (2019: 71.5%). The decrease in the net loss ratio was due primarily to an increased proportion of losses being absorbed by Whole Account Stop Loss recoveries.

Investment return fell to £3.5m, from £5.1m the previous year. This was a result of a decrease in interest income on funds withheld contracts.

CFO RJ Callan said that The Managing Agent had exposure to the Covid-19 pandemic, primarily through operational risk related to business disruption, and principally through its outsourcing arrangement with CUSL. Business continuity had been fully maintained

The Syndicate experienced underwriting losses arising from Covid-19 and the related recessionary impact, as part of the normal course of its activities. The Syndicate has limited exposure to Business Interruption cover within the underwriting portfolios, and the recent Supreme Court ruling on BI did not increase materially the expected losses within the Casualty, Marine, Property Treaty (re)insurance sectors.


2020 £000s GPW GPE GCI Op exps Reins Bal Total
Direct MAT 301 1,157 (297) (723) 285 422
Total Direct 3,435 24,070 (17,791) (13,894) 3,969 (3,646)
Reinsurance (4,041) 15,404 (14,879) (4,691) 5,101 935
Grand Total (606) 39,474 (32,670) (18,585) 9,070 (2,711)
2019 £000s GPW GPE GCI Op exps Reins Bal Total
Direct MAT 1,375 1,299 (1,448) (488) (96) (733)
Total Direct 54,561 49,259 (29,146) (17,060) (3,512) (459)
Reinsurance 68,871 125,093 (101,650) (39,491) 3,365 (12,683)
Grand Total 123,432 174,352 (130,796) (56,551) (147) (13,142)


The Active Underwriter received £444,000 in 2019 and nil in 2020.