Syndicate Results 2020 #50 Syndicate 2007 Axis

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 Alistair Robson

Axis Syndicate 2007 is a Lloyd’s Syndicate of Axis Capital Holdings Ltd (ACHL), the Bermuda-based holding company for the Axis group of companies (Axis). It is managed by Axis Managing Agency Limited (AMAL).

Following the acquisition of Novae Group Plc by the Axis Group in 2017, Syndicate 2007 was placed into run-off, effective January 2019.

Until December 31st 2018 the Syndicate wrote (re)insurance business across Marine, Energy, Property and Specialty lines, with additional focus on Credit & Political risks as well as Cyber Insurance. From January 1st 2019 onwards business has been renewed though Syndicate 1686.

As a result of the Syndicate being placed into run-off, effective January 2019, the intention was for the 2018 year of account to reinsure-to-close (RITC) into Syndicate 1686 at the end of December 2020.

Syndicate 2007 collected the 2017 year of account loss from Axis Corporate Capital UK II Limited (ACCUKIIL) in 2020.

Following the RITC of Syndicate 2007 into Syndicate 1686 the 2018 year of account loss will be collected from AXIS Corporate Capital UK II Limited (“ACCUKIIL”) by Syndicate 1686 in 2021.

All of the principal risks transferred to and have been managed by Syndicate 1686 from January 1st 2021 on (see IMN, June 16th 2021)

For the financial year ended December 2020, the Syndicate recorded GWP of £41.9m, representing a 78.5% reduction from 2019 (£194.4m). This reduction was a result of the renewal of all ongoing business into AXIS Syndicate 1686 as AMAL streamlined its platform use at Lloyd’s.

The written premium arises from 2018 and prior underwriting years, and in particular from business written through delegated underwriting portfolios and additional business being declared on long tail classes such as Construction and Credit & Political Risks.

The Syndicate produced a loss for the year of £5.6m (2019: profit of £8.3m).

KPIs (£000s) 2020 2019 Change (%)
Gross written premium 41,890 194,433 (78.5)
Net earned premium 66,154 357,119 (81.3)
technical profit/(loss) (excl inv return) (6,333) (1,008) (528.9)
Combined ratio (excl inv inc & FX impact) 109.6% 100.3% 9.3pp

Sectors

2020 £000s GPW GPE GCI Op exps Reins Bal Total
Direct MAT 7,585 11,789 (14,844) (5,171) (6,623) (14,849)
Total direct 38,853 91,155 (144,504) (24,870) 81,105 2,886
Reinsurance 3,037 3,790 (34,541) (506) 22,039 (9,218)
Grand Total 41,890 94,945 (179,045) (25,376) 103,144 (6,332)
2019 £000s GPW GPE GCI Op exps Reins Bal Total
Direct MAT 25,123 69,906 (62,038) (19,530) 11,901 239
Total Direct 186,323 517,956 (304,347) (152,670) (45,073) 15,866
Reinsurance 8,110 24,587 (57,186) (1,477) 17,203 (16,873)
Grand Total 194,433 542,543 (361,533) (154,147) (27,870) (1,007)

Emoluments

The active underwriter received remuneration of £0.1m (2019: £0.1m) during the year based on the allocation of his service as active underwriter as a proportion of his service to other AXIS Group entities.

https://www.lloyds.com/about-lloyds/investor-relations/financial-performance/syndicate-reports-and-accounts/2018-2007