Syndicate results 2021 #52 Hamilton 4000

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. E. Colaço-Osorio

On February 15th 2021 HMA entered into an external reinsurance to close contract (on behalf of Liberty Corporate Capital (Two) Ltd, as the corporate Lloyd’s Member that constituted Syndicate 4000 for this year of account) with Lloyd’s managing agency, RiverStone Managing Agency Ltd. Under this agreement the assets and liabilities of the 2018 underwriting year of account were transferred to the 2019 underwriting year of account of Syndicate 3500, including net technical provisions at the closing balance sheet date of £355.8m. Thus the economic balance sheet transferred effective January 1st 2021 and is no longer accounted for within Syndicate 4000’s report and accounts.

Marine/Energy classes fall within the syndicates Direct Specialty. Marine Re is in run-off, as is cargo.

KPIs

£000s 2021 2020
Capacity 350,000 340,000
GWP 414,049 379,083
FY Profit/(loss) 6,382 (4,413)
Comp income 7,868 1,245
Combined Ratio 96.5% 104.6%

The Syndicate reported a profit for the year of £6.4m, reflecting a year of premium growth, management of expenses and improved claims ratio.

GWP grew by 9% to £414.0m (2020: £379.1m), due to additional writing capacity obtained for the 2021 underwriting year, with notable movements on the casualty and speciality lines.

A decrease in the net loss ratio to 58.5% (2020: 62.0%) was driven by improved attritional and large loss experience. Catastrophe losses during the year exceeded long term average expectations in 2021, with notable events including Hurricane Ida and European floods.

Investment return in 2021 was a loss of £0.9m (2020: gain of £8.4m), reflecting market performance during the year on a reduced investment portfolio, post transfer of the closed years under the 2018 and prior years RITC agreement.

Syndicate assets have decreased by £219.9m to £701.3m (2020: £921.2m) and the total liabilities have decreased by £253.0m to £734.1m (2020: £987.1m) as a result of the RITC of the 2018 and prior years of account to an external syndicate (Riverstone 3500).

The Marine Liability book includes both traditional marine liability and energy liability (predominantly offshore). This product area includes an international onshore & offshore energy book.

Segmental analysis

2021 £000s GPW GPE GCI Op Exps Reins Bal Total
MAT 15,214 13,411 (18,397) (4,788) 8,598 (1,176)
Total Direct 287,978 247,596 (178,957) (85,629) 5,570 (11,420)
Reinsurance 126,071 126,001 (75,100) (33,472) 2,239 19,668
Total 414,049 373,597 (254,057) (119,101) 7,809 8,248
2021 £000s GPW GPE GCI Op Exps Reins Bal Total
MAT 24,857 19,653 (17,987) (8,165) 1,429 (5,070)
Total Direct 244,952 262,307 (164,612) (103,954) 5,276 (983)
Reinsurance 134,131 118,990 (99,088) (36,373) 5,152 (11,319)
Total 379,083 381,297 (263,700) (140,327) 10,428 (12,302)

The active underwriter was rewarded as follows:

Emoluments £000s 2021 2020
Active underwriter 257 337
Pension contributions 2
Total 259 337

https://assets.lloyds.com/media/5b485149-80a6-4d46-aadb-5e959a88885f/SRA4000a.pdf