Syndicate results 2021 #25 Premia Syndicate 1884

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.

Run Off Manager    D J Atkins

Syndicate 1884 has had a short but varied life. It was originally launched on April 1st 2015, writing primarily marine classes. In October 2018 the Syndicate was placed into run‐off. Premia Managing Agency Limited, which manages the Syndicate, was acquired by Bermuda based legacy reinsurance group Premia Holdings Ltd, effective March 16th 2020. The 2018 Year of Account was closed via Reinsurance to Close into a new 2021 YOA, and the Syndicate was repurposed to become an integral part of the Premia group, writing RITC and legacy reinsurance in the Lloyd’s market, supported by fully aligned capital.

In addition to the RITC of the 2018 YOA, the Syndicate also completed two additional RITC transactions during 2021, of the 2018 YOA of Syndicate 1955 and the 2018 YOA of Syndicate 1861, both of which were also written into the 2021 YOA of Syndicate 1884.

The Syndicate’s mix of business in 2021 was composed of marine, energy, property, D&O, financial institutions, professional indemnity and general liability business, with smaller exposures to aviation and space, political risk, consumer products and contingency business.

The Syndicate’s exposures to potential Covid-related losses were limited due to both the maturity and underlying class of the risks reinsured. The Syndicate has no material exposure to the outcomes of current legal actions relating to interpretation of business interruption coverage.

The Syndicate continued to have exposure to a small number of unexpired longer‐term risks, typically where the duration of the insurance contract was linked to a long‐term underlying construction project or financing arrangement, or to warranty related business.

Consequently there was a continuing requirement to manage net exposures, particularly for classes of business protected by reinsurance bought on a “losses occurring during” basis. However, the Syndicate’s primary risk arose from reserve risk that was typical of the classes of business it has reinsured.

KPI

£000s 2021 2020
GPW 9,970 8,723)
NEP 51,902 12,539)
P/L tech a’c 20,614 8,490
Claims ratio(22.4%) (15.8%)  
Acquisition ratio 44.1% 14.1%
Expense ratio 33.3% 35.9%
Combined ratio 55.0% 34.2%

Segmental information

2021 £000s GPW GPE GCI Net op exps Reins Bal. Total
Direct MAT (453) (82) (16,799) (2,044) (353) (19,278)
Total Direct 4,682 42,488 28,938 (25,244) 431 46,613
Reinsurance 5,288 22,671 (31,797) (11,871) (2,251) (23,248)
Total 9,970 65,159 (2,859) (37,115) (1,820) 23,365
2020 £000s GPW GPE GCI Net op exps Reins Bal. Total
Direct MAT 3,994 6,078 7,918 (2,106) (2,058) 9,832
Total Direct 7,519 11,528 (521) (5,804) 197 5,400
Reinsurance 1,204 2,102 2,039 (463) (826) 2,852
Total 8,723 13,630 1,518 (6,267) (629) 8,252

https://assets.lloyds.com/media/15b54ff9-ac5f-45ce-a934-eb40a5e8c5e8/SRA1884a.pdf