The Lloyd’s syndicates have now published their results for 2022 and, in some cases, added detail and an outlook for 2023. Some have stuck to the bare bones. As in the previous few years, IMN is summarizing the results from all syndicates that have a notable marine interest, if they have provided some information on the marine side.
CEO R Watson
Syndicate Active underwriter R Merrett
On March 15th 2021 Inigo Ltd of One Creechurch Place completed the acquisition from Enstar Group Ltd of Lloyd’s managing agency StarStone Underwriting Ltd and Syndicate 1301’s capacity for the 2021 year of account and subsequent years. Following the completion, SUL was renamed Inigo Managing Agent Ltd (IMAL).
The Syndicate commenced writing a new portfolio of insurance and reinsurance risks for the 2021 year of account under new management through Inigo Corporate Member Limited (ICML).
Enstar retained the liabilities of Syndicate 1301’s 2020 and prior years of account through SGL No. 1 Ltd, a corporate member in the Enstar Group. On January 1st 2023 these years of account transferred through reinsurance to close to Syndicate 2008.
Enstar Managing Agency Ltd (EMAL) was approved in 2021 as Enstar’s dedicated Lloyd’s run-off managing agency. The management of the 2020 and each prior year of account for Syndicate 1301 were novated or otherwise transferred to EMAL on June 1st 2021.
The Syndicate is fully aligned by year of account. For the 2023 year of account a third party has provided additional capital to the Syndicate.
The 2022, 2021 and subsequent years of account have no liability to the 2020 year of account and each prior year of account. Actual claims paid and claims reported were low on the 2021 year of account.
The result for the year includes all years of account combined.
KPIs
| $m | 2022 | 2021 |
| Gross written premium | 801.3 | 428.0 |
| Gross premiums earned | 687.0 | 317.3 |
| Net premiums earned | 517.5 | 239.8 |
| Profit/(Loss) for the financial year | 33.3 | (31.7) |
| Ratios | ||
| Claims ratio | 59.8% | 73.8% |
| Commission ratio | 20.3% | 21.8% |
| Expense ratio | 12.0% | 18.5% |
| Combined ratio | 92.1% | 114.1% |
Gross written premium was $801.3m (2021: $428.0m). $801.5m relates to the 2022 and 2021 years of account. Additional income was also written on behalf of the Inigo Directors and Officers and the Inigo Property consortia. There was significant use of reinsurance protection. As many contracts purchased cover both 2022 and 2023 years of account, this resulted in a significant level of ceded premium, which in turn led to lower levels of net written premium.
Favourable development from prior year and lower than expected non-catastrophe claims also had a positive impact on the net loss ratio. The net loss ratio for 2021 was impacted by Hurricane Ida and other catastrophe events.
The Syndicate’s expense ratio also decreased to 12.0% (2021: 18.5%) primarily driven by the significant increase in premium volume during the year. The commission ratio modestly decreased to 20.3% (2021: 21.8%)
The Syndicate reported an investment return loss of $5.1m (2021: $0.4m loss) for the financial year. This comprised realized losses of $3.0m (2021: realized losses of $0.9m), unrealized losses of $6.9m (2021: unrealized losses of $0.6m) and investment income $5.0m (2021: $1.1m). The Syndicate reported unrealized losses on investments, which was mainly from the fixed income portfolio, primarily comprised of corporate and government bonds.
In Political Risks a team of four underwriters offers a broad suite of coverages in Political Risks which includes: Sabotage and Terrorism, Political Violence and Civil Unrest, Aviation and Marine War, and other related coverages in the class. The Political Risks portfolio principally focuses on risks domiciled in the US and UK, with additional exposures in key countries in each continent, writing both primary and excess layers across a wide array of commercial occupancies. The team wrote approx. $65m in the 2022 calendar year (2021: $6.1m).
The Casualty segment offers a range of Casualty products including Directors and Officers, General Liability, Marine and Energy, and Financial Institutions.
In Marine & Energy Liability a team of three underwriters focuses on three main sub-segments: Marine Liability, Energy Liability and Ports. The team writes a broad spectrum of Marine Liability business across all sectors of the maritime industry – ports and terminals, shipbuilders, ship repairers, marina operators, shipowners, ship operators and ship charterers. Energy Liabilities primarily focuses on Drilling & Service Contractors, Exploration & Production Companies, Offshore Construction and Onshore Upstream, mid stream and downstream Operations. The team wrote approx. $39m in the 2022 calendar year (2021: $12.4m).
Segmental Details
| 2022 $’000s | GPW | GPE | GCI | GOE | Reins Bal | Total |
| Direct MAT | 17,186 | 5,877 | (13,519) | (9,468) | 7,939 | (9,171) |
| Total Direct | 323,791 | 252,695 | (119,441) | (72,343) | (87,158) | (26,247) |
| Reinsurance | 477,459 | 434,297 | (328,918) | (97,508) | 64,632 | 72,503 |
| Total | 801,250 | 686,992 | (448,359) | (169,851) | (22,526) | 46,256 |
| 2021 $’000s | GPW | GPE | GCI | GOE | Reins Bal | Total |
| Direct MAT | 6,338 | 14,758 | 11,720 | (4,652) | (995) | 20,831 |
| Total Direct | 221,452 | 150,163 | (107,824) | (52,593) | 1,941 | (8,313) |
| Reinsurance | 206,595 | 167,090 | (92,751) | (45,132) | (54,726) | (25,519) |
| Total | 428,047 | 317,253 | (200,575) | (97,725) | (52,785) | (33,832) |
The active underwriter received the following aggregate emolument.
| $’000s | 2022 | 2021 |
| Emoluments | 420 | 381 |
https://assets.lloyds.com/media/717414b8-6a43-4f1b-82aa-fbc9c1e3da43/SRA1301a.pdf