Syndicate results 2021 #33 Lancashire 2010

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   J M Barnes

KPI

$000s 2019 YOA 2020 YOA 2021 YOA Dec 31 2021 Dec 31 2020
Gross premiums written (235) 19,803 352,581 372,149 313,569
Gross premiums earned 4,117 124,562 223,406 352,085 299,606
Net premiums earned 4,770 109,655 125,493 239,918 207,643
Loss for the financial year 23,239 26,612 (63,816) (13,965) (5,833)
Loss ratio (%) (376.4) 49.8 109.4 72.5 72.0
Expense ratio (%) (4.3) 25.8 42.1 33.8 32.6
Combined ratio (%) (380.7) 75.6 151.5 106.3 104.6

The Syndicate observed that the market experienced another active loss year in 2021, particularly within the catastrophe exposed classes. Natural catastrophe losses for the industry were estimated at around $130bn, making 2021 one of the worst loss years on record. These losses included Winter Storm Uri, the European Floods, Hurricane Ida and the Tornadoes in the US.

These events impacted the classes written by Syndicate 2010. It said that, although the extent of losses in 2021 was disappointing, the combined ratio of 106.3% demonstrated that “the strong premium growth over the past few years has put the Syndicate in a more resilient position”.

The Syndicate said that its strategy, to broaden its underwriting footprint by entering into new Specialty classes when the market rating has been improving, had strengthened its portfolio “to be better positioned to absorb such losses”.

Following an extensive review of loss reserves in Q4 2021, the Syndicate said that it had benefited from favourable improvements in 2019 and prior year loss reserves, which had contributed to the 2019 Year of Account result.

Segmental Analysis

2021 $000s GPW GPE GCI GOE Reins Bal Total excl inv ret Net tech provs
Direct MAT 17,638 15,512 (4,222) (2,471) (4,817) 4,002 6,711
Total Direct 149,741 133,919 (83,159) (42,167) (8,975) (382) 138,573
Reinsurance 222,408 218,166 (179,732) (38,810) (14,169) (14,545) 260,375
Total 372,149 352,085 (262,891) (80,977) (23,144) (14,927) 398,948
2020 $000s GPW GPE GCI GOE Reins Bal Total excl inv ret Net tech provs
Direct MAT 13,694 10,318 (11,487) (2,061) 1,248 (1,982) 2,723
Total Direct 125,746 116,148 (64,953) (31,619) (23,890) (4,314) 110,958
Reinsurance 187,823 183,458 (153,604) (36,133) 1,051 (5,228) 231,221
Total 313,569 299,606 (218,557) (67,752) (22,839) (9,542) 342,179

The Active Underwriter, the highest paid Director, received the following aggregate remuneration charged to the Syndicate:

$’000 2021 2020
Emoluments 460 433
Other benefits 183 99

https://assets.lloyds.com/media/e044a8e4-4d74-4c52-9ba3-30b7d7db145f/SRA2010c.pdf