Syndicate results 2021 #20 Asta 1729

The Lloyd’s syndicates have now published their results for 2021 and, in some cases, added detail and an outlook for 2022. Some have stuck to the bare bones. As last year, IMN is summarizing the results from all syndicates that have a marine interest, which have provided some information on the marine side.

Syndicate 1729 publishes its annual accounts and underwriting year accounts separately. This summary covers the annual accounts.

Active Underwriter

D H Dale       Resigned 18 January 2021

D G Peters    Appointed 18 January 2021

The syndicate noted that 2021 had proved to be as challenging as the prior four years in the catastrophe arena, with “another round of expensive and disruptive natural disasters impacting communities and companies around the world”. Eight events made landfall in the US and Aon estimated $343bn of economic loss and $130bn of insured loss in 2021. Four individual events topped the $20bn threshold for economic loss for only the second time ever (Hurricane Ida, Flooding in Europe (Bernd), Summer flooding in China and the Polar Vortex in North America in February 2021). The estimate for Hurricane Ida has moved up to about $27.5bn. The syndicate noted that most recently (January 2022) Munich Re estimated Ida at $36bn. These ranges make the loss significantly bigger than Irma (currently at $27bn). The wide range is, in part, due to the complex nature of the loss given the further varied damage (eg Flood) caused in States beyond Louisiana, in- particular the North East. Additionally, factors such as pandemic pricing which has pushed up the price of lumber and the cost of labour to rebuild, supply chain disruption, BI/CBI issues and prolonged power interruption all need to be considered.

The Syndicate said that its continued to believe that the industry would see a deterioration of casualty results from previous accident years and observed that it was “not immune” to inflation of claims values. However it noted that it had “taken a very cautious approach” to its US Casualty business as a deliberate strategy to insulate the account as much as possible from the potential volatility associated with an increasing number of large claims.

For 2021 our stamp capacity was £185m for Syndicate 1729 and £20m for SPA 6131. For 2022 the syndicate pre-empted and rolled SPA 6131 into the syndicate. The Stamp capacity for 2022 is £210m. The syndicate said that “there was a desire for growth from the bulk of existing investors, as well as new investors, who we were unable to satisfy at this time. This reflects well on the capital support to the business and helps us a achieve a highly diversified capital base.”

2021 saw a continuation of an improving market across lines in terms of rate and pricing adequacy. The Gross Net Rate change across the syndicate was 10.9%.

Hurricane Ida was the syndicate’s largest event. “Despite the level of Cat activity continuing unabated we are expecting the year will close at a profit.”

KPI

£’000s 2021 2020 Change
GWP 184,681 163,093 13.2%
Profit 5,043 3,927 28.4%
Total comp inc (83) (54) 53.7%
Combined ratio 96.0% 100.0%  

Segmental analysis

2021 £’000s GPW GPE GCI GOE Reins Bal Total
Direct MAT 4,698 3,782 (1,325) (979) 272 1,750
Total Direct 114,430 109,593 (66,506) (28,629) 5,408 19,866
Reinsurance 70,251 68,579 (78,631) (18,122) 13,574 (14,600)
Total 184,681 178,172 (145,137) (46,751) 18,982 5,266

Commissions on direct insurance gross premiums earned during 2021 were £22.9m (2020: £20.8m).

2020 £’000s GPW GPE GCI GOE Reins Bal Total
Direct MAT 4,732 1,885 (726) (494) (197) 468
Total Direct 103,370 102,820 (68,147) (28,357) (4,759) 1,557
Reinsurance 59,723 55,726 (44,491) (15,299) 2,563 (1,501)
Total 163,093 158,546 (112,638) (43,656) (2,196) 56
Emoluments £’000s 2021 2020
Active Underwriter 376 609

https://assets.lloyds.com/media/9d0c3c7c-cbc5-4440-9cfc-27425691ca98/SRA1729a.pdf