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 and CUO – S Acland
Syndicate 1945 increased GWP for 2020 to £108.8m, from £96.6m the year before. CEO R Harman referred to “unprecedentedly difficult operating conditions, associated with the Covid-19 global pandemic”.
Rate changes were said to be improving for all classes, but were most keenly felt in the Casualty Reinsurance and & Property D&F accounts.
The Syndicate has reduced its reliance on Accident & Health during 2020 by expanding the Speciality element of the syndicate, with the introduction of an Energy and Marine Liability underwriter to compliment the Upstream Energy account.
The syndicate has also refocused the Property Direct and Facultative business and is continuing to grow its Casualty Treaty account, both in the US and Internationally, with the hiring of two International Casualty underwriters.
Harman said that the year had been dominated by Covid-19 and that the reported loss for the year of £56.2m included £57m of losses net of all reinsurances relating to the global pandemic. A significant portion of this related to losses attaching to the 2018 and prior underwriting years of account on the discontinued Contingency book (£39.4m).
Excluding the impact of Covid-19 losses the Syndicate produced a small profit for the year, compared with a £15.9m loss the previous year. Harman said that this demonstrated “the extensive remediation work performed over the last two years and shows our disciplined approach to underwriting is now beginning to deliver”.
The investment return fell to £0.8m, from £1.5m in 2019.
On August 6th 2020 Sirius International Insurance Group Ltd entered into an Agreement and Plan of Merger with Third Point Reinsurance (TPRE) and Yoga Merger Sub Limited, a wholly owned subsidiary of TPRE. The merger closed on February 26th 2021, and the ultimate parent of SIMA changed from China Minsheng Investment Group Corp Ltd to Third Point Reinsurance Ltd.
With the UK Government’s recommendation that people should work from home if possible, the London office was temporarily closed. Harman said that the business had adapted well to the new working conditions, with staff working from home.
|Gross written premium||108,832||96,591|
The increase in the net claims loss ratio in 2020 to 127.1% (2019: 85.0%) was largely due to COVID-19 losses.
|2020 £000s||GPW||GPE||GCI||Op exps||Reins Bal||Total|
|2019 £000s||GPW||GPE||GCI||Op exps||Reins Bal||Total|
The emoluments of the active underwriter and the other directors of Sirius International Managing Agency Limited are borne by Sirius International Insurance Corporation (PUBL) or other members of the group and are not separately identifiable from the fee charged by Sirius to the Syndicate. Fees of the independent non-executive directors are borne by SIMA, and no emoluments were directly charged to the Syndicate in 2020 (2019: £nil). No other compensation was payable to any directors.