Tokio Marine Kiln has announced the final results for its three non-aligned Lloyd’s syndicates for the 2016 year of account, as well as updated forecasts for the 2017 year.
Overall, syndicates 510 and 557 delivered profits on the 2016 year of account, but were impacted by catastrophe activity in their account forecast for 2017, in particular due to the U.S hurricane losses.
Meanwhile, syndicate 308 was loss-making on both the 2016 and 2017 years of account due to the impact of the run-off book, Tokio Marine Kiln explained.
By syndicate and for the 2016 year of account, syndicate 510, with capacity of £1,062 million, delivered a result of 4.4%, compared with its previous forecast range of 0.6% to 5.6% as at November 2018.
Syndicate 557, with capacity of £35 million, had a result of 25.7%, compared 13.5% to 18.5% previously.
And for syndicate 308, with capacity of £32 million, the result of -9.5% compared with a previous forecast range of -16.9% to -11.9%.
“For the 2016 year of account all three syndicates are showing a small improvement, owing to a stable quarter in our back-year development and the effect of lower ultimate losses for the 2017 Q3 catastrophes,” noted Charles Franks, Chief Executive Officer of Tokio Marine Kiln.
“On the pricing front we have, like others, seen some improvements in selected areas but the overall market remains tough and competitive,” he continued.
“In keeping with our long-held stance on discipline and bottom-line focus, we have realigned our underwriting teams on those markets and lines of business that are showing the best medium to long-term business opportunities for us and reduced our presence in other marginal parts of the account.”
For the 2017 year of account, syndicate 510, with capacity of £1,131 million, has a new forecast range of -14.6% to -9.6%, compared with a previous forecast range of -12.9% to -7.9% as at February 2018.
For syndicate 557, with capacity of £34 million, the new forecast range is -29.6% to -24.6%, compared with the previous range of -32.8% to -27.8%.
Finally, syndicate 308, with capacity of £31 million, has a new range of -54.4% to -49.4%, compared with -54.9% to -49.9% previously.
“Syndicate 308 continues into run-off and we are servicing the existing business professionally and will ensure that there is no detriment to policyholders as a result of this action,” Franks explained.
The performance of Syndicates 510 and 557 was significantly affected in 2017 by the Harvey, Irma and Maria storms, as well as Mexican earthquakes and Californian wildfires.
Tokio Marine Kiln added that its account was again subject to further hurricanes and wildfires in 2018 that have affected its 2017 forecast and will be reflected in future forecasts for the 2018 year of account.
