The latest Lloyd’s of London syndicate results and forecasts from Tokio Marine Kiln (TMK) show some downward movement in the forecasts for Syndicates 510 and 557 as a result of the COVID-19 pandemic.
Starting with the 2018 year of account, Syndicate 510, with capacity of £1,136 million, saw its forecast range revised to -6.9% to 0.6% as at May 2020.
This compares with a range of -5.4% to -0.4% as at February 2020, with Tokio Marine Kiln attributing the movement to the impact of the pandemic.
In contrast, Syndicate 557, with capacity of £35 million, saw its range revised upwards to -3.0% to 2.0% as at May 2020, compared to a range of -3.8% to 1.2% previously.
Turning to the 2019 year of account, Syndicate 510, with capacity of £1,133 million, was given a new forecast of -11.4% to -1.4%, well below the previous forecast of 0.7% to 5.7%.
Tokio Marine Kiln said the new forecast result is reflective of the current Covid-19 pandemic, as Syndicate 557 is expect to suffer losses in relation to business disruption and event cancellations.
Syndicate 557, meanwhile, with capacity of £32 million, also saw deterioration due to initial COVID-19 loss estimates. Its forecast range is now 9.9% to 14.9%, compared with 16.8% to 21.8% as at February.
“These latest forecasts are the first from TMK to reflect the effects of Covid-19,” said Brad Irick, Chief Executive Officer of Tokio Marine Kiln.
“Although TMK has not been immune to impact of the pandemic, our underwriting teams are continuing to emphasise strict underwriting discipline, whilst enabling our clients to get back on line and support the economy,” he continued.
“The pandemic has demonstrated the critical role that the insurance industry plays in supporting people, businesses and industries, and we are committed to supporting our clients through this fluid situation, ensuring that all valid claims are paid fairly and swiftly.”