The Channel Syndicate at Lloyd’s of London, which is part of global re/insurer SCOR’s Specialty Insurance platform, has reported profit of £9.4 million for 2020.
This return to profitability comes after Channel decided to reset its strategy in late 2018 and take corrective actions. It reported a loss of $19 million in 2019.
Underwriting profit came to £7 million for the year, compared with an underwriting loss of £27 million in 2019.
This helped Channel to achieve a combined ratio of 96%, versus 113% in the previous year.
Gross written premiums declined slightly over the year, moving from £252 million to £233 million. Likewise, net written premiums slid from £200 million to £197 million.
Stuart McMurdo, CEO of SCOR Specialty Insurance EMEA, commented: “Despite difficult market circumstances, we are thrilled that Channel has delivered a healthy profit for 2020,” said Stuart McMurdo, CEO of SCOR Specialty Insurance EMEA.”
“The Channel executive reset the strategy of the business in Q4 of 2018, identifying the need to put returning to profit ahead of all else,” McMurco explained.
“Channel and SCOR have worked hard through 2019 and 2020 to secure stronger integration opportunities to build our portfolio. We will continue to look for good growth opportunities going forward.”
Nick Forti, Active Underwriter and Deputy Chief Underwriting Officer of SCOR Specialty Insurance, also commented: “This return to profitable growth fits well with our investment in key lines, such as PCR and EIL while more recently building out into Terror, Legal Expense and Specie.”
“As we build the business with SCOR Specialty Insurance we will consider complementary classes, particularly where we can use the broader resources of the SCOR Group to provide business solutions to our clients.”
Laurent Rousseau, Deputy CEO of SCOR Global P&C, added: “Channel’s return to profitability was a key objective and we are really pleased at the tremendous effort from the team in delivering on this. Going forward, we will continue to focus on truly differentiating our proposition to our clients and brokers. Channel is core to SCOR, and will continue leveraging the SCOR Group’s strengths, as part of an integrated Specialty Insurance platform.”