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 underwriters – R Littlemore, L Prato
| KPIs £m | 2020 | 2019 |
| Syndicate capacity (£m) | – | — |
| Gross premiums written (£m) | 1.7 | (1.1) |
| Net premium written (£m) | (0.1) | (0.4) |
| Earned premiums, net of reinsurance (£m) | 1.2 | 11.3 |
| Underwriting result (£m) | (2.7) | 1.1 |
| Profit / (Loss) for the financial year (£m) | (2.3) | 1.9 |
| Claims ratio (%) | 228.8 | 56.7 |
| Expense ratio (%) | 100.6 | 33.6 |
| Combined ratio (%) | 329.3 | 90.3 |
Syndicate 6111 (the Syndicate) was established for the 2012 year of account as a Special Purpose Arrangement (SPA). Its principal activity is to underwrite a whole account quota share reinsurance of Syndicate 2003 and this is the only inwards contract that the Syndicate writes. This contract operates on a funds withheld basis.
The Syndicate ceased writing the Whole Account Quota Share of Syndicate 2003 for the 2019 year of account. For the 2018 underwriting year it wrote 1.2853% and for the 2017 underwriting year it wrote 1.3847% year in line with the Whole Account Quota Share agreement between the two Syndicates.
The underwriting result in 2020 was significantly affected by losses relating to Covid-19 which resulted in £1.6m of net claims mainly impacting Crisis Management and Business interruption classes.
The COVID-19 pandemic negatively impacted the Syndicate’s underlying earnings, mainly through Property & Casualty claims, with significant impacts in Event Cancellation and Business Interruption and to a lesser extent in Liability, Travel and Credit Insurance.
Property & Casualty claims were partly offset by estimated reinsurance recoveries and the decrease in frequency in certain classes resulting from lockdowns and the various restrictions enacted to reduce the pace of the spread of the virus.
Turnover was also affected by the crisis, primarily as a significant part of the premiums paid by its clients within the Property & Casualty Commercial lines are based on their own level of activity (e.g. through projects, cargo load, flights number, turnover etc.) that was reduced by the confinement measures. Additionally, the turnover was hit by opening restrictions affecting AXA’s distribution channels.
Sectors
| 2020 £000s | GPW | GPE | GCI | Op exps | Reins Bal | Total |
| MAT | 328 | 572 | 340 | (397) | (125) | 390 |
| Total | 1,680 | 3,296 | (1,347) | (1,679) | (3,009) | (2,739) |
| 2019 £000s | GPW | GPE | GCI | Op exps | Reins Bal | Total |
| MAT | (844) | 2,336 | (1,303) | (575) | (57) | 401 |
| Total | (1,093) | 12,432 | (7,316) | (3,929) | (88) | 1,099 |
Emoluments
The Syndicate and its managing agent have no employees (2019: £nil).
The Syndicate did not directly incur staff costs during the year (2019: £nil)