Syndicate results 2021 #29 Apollo/Compre 1994

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   M A Lawson

Syndicate 1994 is a Lloyd’s legacy syndicate, established to provide bespoke solutions for Lloyd’s syndicates seeking to exit lines or classes of business, in addition to syndicates in run-off and seeking to obtain finality for their capital providers. The syndicate’s first year of account is 2021 and is a strategic partnership with legacy specialist Compre Group

The syndicate has written a reinsurance to close RITC for the liabilities relating to the 2017 and prior year of accounts of Syndicate 1969 and the RITC of the 2018 year of account of Syndicate 3330 in its first year of inception.

The syndicate recognized £100.4m of gross premium in 2021. The technical result (including Expenses) of a loss of £16.8m was improved after a foreign exchange profit of £0.7m to give a loss for the financial year of £16.1m.

The syndicate produced an investment loss of £0.1m in the year, reflecting very low running yields on the portfolio, together with the impact of increases in interest rates in the final quarter of the year. At the balance sheet date the fixed income portfolio holdings totalled £24.9m.

Claims Development

A large majority of the reserves held by syndicate 1994 (more than 90%) relate to the transfer of reserves from syndicate 1969 for the 2017 & prior years. The Syndicate said that the level of reserving uncertainty varied significantly from class to class. The Non-Marine Liability and Marine & Energy Liability classes lengthened the tail of the Syndicate 1969 book as a whole. While Syndicate 1969 wrote a significant book of property business this had a short-tailed risk profile and therefore this business does not make up a significant proportion of the reserves.

Technical Account for 2021

£000s

GPW 100,432
NPW 99,391
Inv Ret (107)
Net Claims Paid (22,970)
Net Claims provision (86,788)
Net Op Exs (4,669)
Tech A/C Bal. (16,806)

Segmental Information

2021 £000s GPW GPE GCI GOE Reins. Bal Total
Direct MAT 5,678 5,769 (12,527) (730) 2,152 (5,336)
Total Direct 79,506 76,494 (128,537) (793) 48,374 (4,462)
Reinsurance 20,926 21,749 (40,535) (3,876) 10,425 (12,237)
Total 100,432 98,243 (169,072) (4,669) 58,799 (16,699)

Compre Services UK Ltd allocates the Active Underwriter, Mark Lawson, to the syndicate and undertake a number of functions for the syndicate. The company makes an expense recharge accordingly. The Active Underwriter is an employee of the Compre Group and there is no specific expense allocation of his emoluments to the syndicate.

https://assets.lloyds.com/media/26228ff4-b38b-4a6e-9e00-80781021c903/SRA1994a.pdf