Syndicate Results 2020 #43 Syndicate 1910 Argo

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 DJ Kirby

KPIs £m 2020 2019 Change £m
Gross written premium 255.9 289.0 (33.1)
Profit/(Loss) for the financial year (14.5) (1.2) (13.3)
Total comprehensive income (13.5) (1.2) (12.3)
Claims ratio 93.1% 83.0% 9.9pp
Expense ratio 20.9% 20.3% 0.6pp
Combined ratio 114.0% 103.3% 10.7pp

Chairman Tony Latham said that GWP decreased from £289.0m in 2019 to £255.9m in 2020. The decrease was driven for the most part by the decision to non-renew one very significant quota share contract. Again this year more premium was placed on the Bermuda platform before its cession to Syndicate 1910 through a quota share arrangement.

The syndicate made a loss of £14.5m for the year, compared to a loss of £1.2m in 2019 and a total comprehensive loss of £13.5m, as against a total comprehensive loss of £1.2m in 2019. The Combined Ratio worsened from 103.3% to 114.0%.

Booked losses relating to Covid-19 were £26.3m which translates into an increase of 25pp in the CR. The majority of these losses were from event cancellation covers.

Latham said that the syndicate’s performance in 2020 was impacted by the frequency of natural catastrophes rather than the severity of individual events seen in previous years.

The most destructive of the 30 named storms in 2020 was Hurricane Laura, which made landfall in Louisiana. Other events worth noting were Storm Derecho and a series of wildfire losses across the Western US.

Losses in Asia were lower than in previous years and experience in Europe was relatively benign.

The impact of these natural catastrophes worsened the Combined Ratio by 25.3pp after reinsurance/retrocessional recoveries.

Latham was “disappointed to report a loss to capital providers from the 2018 and prior years of a negative 3.2% return. Last year this was forecast at a negative 4.1% return.”

Sectors

2020 £000s GPW GPE GCI Op exps Reins Bal Total
Fire/property damage (2.8) (0.7) (0.6) 0.6 0.1 (0.6)
Other 10.1 9.2 (1.4) (0.2) (3.1) 4.5
Total 7.3 8.5 (2.0) 0.4 (3.0) 3.9
Reinsurance acceptances 248.6 215.9 (188.7) (36.7) (9.2) (18.7)
Total 255.9 224.4 (190.7) (36.3) (12.2) (14.8)
2019 £000s GPW GPE GCI Op exps Reins Bal Total
Fire/property damage 0.7 4.3 0.1 (6.9) (1.8) (4.3)
Other 3.2 0.0 (2.5) 1.2 (0.1) (1.4)
Total 3.9 4.3 (2.4) (5.7) (1.9) (5.7)
Reinsurance acceptances 285.2 293.1 (235.8) (20.0) (35.7) 1.5
Grand Total 289.0 297.4 (238.3) (25.7) (37.6) (4.2)

Emoluments

The active underwriter was paid £200,000, as in 2019. This was charged as a syndicate expense.

https://www.lloyds.com/about-lloyds/investor-relations/financial-performance/syndicate-reports-and-accounts/2017-1910