Syndicate Results 2020 #41 Syndicate 2232 Allied World

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 – B Grefe

The immediate holding company of Allied World managing Agency is Bermuda-incorporated Allied World Europe Holdings. The company’s ultimate parent is Fairfax Financial Holdings Ltd.

The Syndicate’s capacity for the 2020 year was £201.1m (2019: £176.0m).

KPIS £000 2020 2019
GPW 239,147 219,196
GPW 219,843 214,935
NPE 123,097 124,895
Balance on tech a/c 6,672 (21,520)
CR 96.1% 120.8%
Inv return 1,800 4,414

The overall balance on the technical account was a profit of £6.7m (2019: loss of £21.5m), after expenses and investment return but before FX adjustments. GWP for the year was £239.1m, up from £219.2m in 2019. The £19.9m increase in GWP was driven primarily through the classes of business, Commercial D&O, E&O and Healthcare. This followed a continued hardening in rate, strong price adequacy and non-rate growth on delegated partnerships.

The Syndicate reported a combined ratio of 96.1% (2019: 120.8%).

The assessment of COVID-19 related insurance liabilities across the syndicate’s insurance and treaty reinsurance business reflected a low level of Covid-19 exposure to the Syndicate, with booked losses totalling £4.0m on a gross basis and £2.0m net. The result for the year included favourable prior year development of £4.8m (2019: adverse development of £11.6m).

As the pandemic became apparent in early 2020, AWMA followed its business continuity plans and enacted steps to ensure the safety of its employees and continuity of its business

Sectors

2020 £000s GPW GPE GCI Op exps Reins Bal Total
Direct MATt 11,814  11,645 (16,707) (4,213) 5,353 (3,922)
Total Direct 136,041 118,176 (89,101) (35,781) 7,705 999
Reinsurance 103,106 101,667 (55,829) (33,285) (8,704) 3,849
Grand Total 239,147 219,843 (144,930) (69,066) (999) 4,848
2019 £000s GPW GPE GCI Op exps Reins Bal Total
Direct MATt 16,177 19,193 (22,225) (6,968) 2,466 (7,534)
Total Direct 123,904 115,425 (86,667) (19,301) (18,855) (9,398)
Reinsurance 95,292 99,510 (96,890) (22.632) 3,475 (16,537)
Grand Total 219,196 214,935 (183,557) (41,933) (15,380) (25,935)

NOTE: The 2019 segmental analysis in the 2019 financial statements did not apply the class of business disclosure requirements of Schedule 3 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008. The 2019 comparative amounts presented in the 2020 financial statements have now been presented applying the revised segmental classes and metrics on a comparable basis with the 2020 amounts. This is in accordance with the requirements of Schedule 3 of the 2008 Regulations

Emoluments

The amount recharged to the Syndicate in respect of the aggregate remuneration of the active underwriter for the year ended December 31st 2020 was £309,000 (2019: £658,000).

https://www.lloyds.com/about-lloyds/investor-relations/financial-performance/syndicate-reports-and-accounts/2015-2232