Syndicate results 2021 #23 Sirius 1945

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.

Active Underwriter and Chief Underwriting Officer       S Acland

The merger between Third Point Reinsurance Ltd and Sirius International Insurance Group Ltd was completed on February 26th 2021, subsequent to which the ultimate parent of the Syndicate became Third Point Reinsurance Ltd.

Following the merger, Third Point Reinsurance Ltd merged with Sirius Bermuda Insurance Co (Sirius Bermuda) with Sirius Bermuda being the surviving entity. Upon the effectiveness of the merger, Sirius Bermuda changed its name to SiriusPoint Ltd.

CEO R Harman and CUO S Acland said that 2021 had been an exceptional year for Syndicate 1945, returning a calendar year profit of £6.8m (2020 loss of £56.1m) with a combined ratio of 92.9% (2020 159.3% or 99.7% excluding Covid-19 related losses). “The result is evidence that our remediation work undertaken over recent years is starting to materialize through the calendar year results”, Harman and Acland wrote.

The Syndicate maintained its overall premium level in 2021, writing gross premium of £110.8m (2020: £108.8m), re-focusing the portfolio to its core A&H, Casualty and Energy classes. Despite the remediation work conducted in prior years, the Managing Agency decided that the Property D&F was no longer within the Syndicate’s risk appetite and therefore closed the class of business in May 2021.

As a result, the gap between the full year plan and the business bound to date for this class was redistributed to A&H, Energy and Casualty.

Rate change was improving for all classes and was most keenly felt in the Casualty Reinsurance and Energy Liability accounts.

The Covid-19 reserves had remained robust and stable across the year, a significant portion of which related to losses attaching to the 2018 and prior underwriting years of account on our discontinued Contingency book. The impact from exiting the European Union had been limited from an underwriting point of view. The majority of the Syndicate’s business is US exposed.

In 2021 the Syndicate underwrote Accident and Health, Property, Marine, Energy and Casualty.

Accident & Health saw risk adjusted rate of 2.1% (1.1% above plan), Energy saw risk adjusted rate change of 5.7% (0.4% above plan), Casualty saw risk adjusted rate change of 9% (1% below plan) and the Space class saw risk adjusted rate change of 9.7% (5.3% below plan) in 2021 underwriting year.

KPI

£000s 2021 2020
Gross written premium 110,802 108,832
Net claims ratio 59.3% 127.1%
Expense ratio 33.6% 32.2%
Combined ratio 92.9% 159.3%

The reduction in the net claims loss ratio in 2021 to 59.3% (2020: 127.1%) is largely due to COVID-19 losses incurred in 2020 that have not repeated in 2021.

Segmental Information

2021 £000s GPW GPE GCI GOE Reins. Bal Total
Direct MAT 14,682 11,851 (8,286) (2,389) (3,614) (2,438)
Reinsurance 77,832 75,596 (45,986) (24,051) (48) 5,511
Total 110,802 107,413 (61,775) (32,441) (6,216) 6,981
2020 £000s GPW GPE GCI GOE Reins. Bal Total
Direct MAT 8,264 7,475 (3,891) (1,782) (1,422) 380
Reinsurance 77,531 71,200 (90,135) (21,702) 4,969 (35,668)
Total 108,832 104,078 (152,149) (30,850) 22,099 (56,822)

The active Underwriter and the highest paid director received the following remuneration for services provided to the Syndicate.

£000 2021 2020
Aggregate emoluments and other benefits 226 223
Pension contributions 19 19
Total 245 242

https://assets.lloyds.com/media/988cf97c-791e-4355-aaa8-ddb7b331241e/SRA1945a.pdf