The Lloyd’s syndicates have now published their results for 2023 and, in some cases, added detail and an outlook for 2024. 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.
The Syndicate’s business is produced through the Lloyd’s broker network and written in the subscription market, in either a lead or follow capacity. The Syndicate is a member of the Lloyd’s Asia platform in Singapore and also operates through service companies in Miami, Allied World Reinsurance Management Company, Bermuda, Allied World Syndicate Services (Bermuda), Ltd and Singapore, Allied World Syndicate Services (Singapore) Pte, Ltd.
Active underwriter S Kamath
KPIs
| £000s | 2023 | 2022 | 2021 |
| Gross premiums written | 416,751 | 344,265 | 252,288 |
| Gross premiums earned | 384,608 | 302,835 | 239,226 |
| Net premiums earned | 238,910 | 180,794 | 138,343 |
| Balance on technical account | 54,818 | 3,250 | 15,708 |
| Gross combined ratio | 88.9% | 93.0% | 87.0% |
| Net combined ratio | 85.8% | 97.2% | 88.3% |
The overall balance on the technical account was a profit of £54.8m (2022: £3.3m), after expenses and investment return but before foreign exchange adjustments.
Gross premium written for the year was £416.8m, compared to £344.3m for the prior year, an increase of £72.5m. The increase in premium written was driven primarily by further growth in the cyber class, generating an additional £24.1m of new business income, coupled with continued growth within the syndicate’s third-party liability classes, market opportunities in the construction arena and strong growth in the treaty property reinsurance classes, reflecting a strong rating environment.
The Syndicate reported a combined ratio of 85.8% (2022: 97.2%). The current accident year results have been positively impacted by lower levels of frequency and severity in catastrophe and large loss events.
The result for the year included net prior year reserve releases of £7.0m (2022: reserve strengthening of £9.8m) which improved the net combined ratio by 2.9% (2022: deterioration of 5.5%).
The result for the financial year increased members balances by £53.4m. This was partially offset by the profit distribution on the closed 2020 year of account. Overall member’s balances increase by £30.5m to £42.0m (2022: £11.5m).
The total value of investments, cash and cash equivalents reached £532.6m by the end of the year (2022: £410.1m) and generated an investment gain of £20.9m (2022: £1.8m loss).
The foreign exchange loss of £1.4m (2021: £2.1m gain) was driven by the translation of transactional currencies to US Dollars, the Syndicate’s functional currency.
Segmental Analysis
| 2023 £000s | GPW | GPE | GCI | GOE | Reins Bal | Total |
| Direct MAT | 17,911 | 15,106 | (13,458) | (4,995) | 3,277 | (70) |
| Total Direct | 251,888 | 233,921 | (140,453) | (75,716) | (2,306) | 15,446 |
| Reinsurance | 164,863 | 150,685 | (81,516) | (44,250) | (6,452) | 18,467 |
| Total | 416,751 | 384,606 | (221,969) | (119,966) | (8,758) | 33,913 |
| 2022 £000s | GPW | GPE | GCI | GOE | Reins Bal | Total |
| Direct MAT | 15,575 | 12,908 | (13,212) | (4,892) | 2,248 | (2,948) |
| Total Direct | 215,182 | 181,321 | (99,547) | (56,263) | (16,468) | 9,043 |
| Reinsurance | 129,083 | 121,514 | (86,487) | (39,261) | 262 | (3,972) |
| Total | 344,265 | 302,835 | (186,034) | (95,524) | (16,206) | 5,071 |
| 2021 £000s | GPW | GPE | GCI | GOE | Reins Bal | Total |
| Direct MAT | 9,527 | 9,588 | (7,630) | (3,660) | 1,714 | 12 |
| Total Direct | 155,421 | 140,926 | (82,556) | (41,962) | (6,899) | 9,509 |
| Reinsurance | 96,867 | 98,300 | (50,364) | (33,175) | (8,142) | 6,619 |
| Total | 252,288 | 239,226 | (132,920) | (75,137) | (15,041) | 16,128 |
The amount recharged to the Syndicate in respect of the aggregate remuneration of the active underwriter for the year ended 31 December 2023 was £0.4m (2022: £0.4m).
https://assets.lloyds.com/media/7ddfab18-0d17-470a-984c-1dcdac37543f/SRA2232a.pdf