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Tokio Marine Kiln updates forecasts for Lloyd’s syndicates

9th November 2018 - Author: Luke Gallin

Tokio Marine Kiln has announced the latest results and forecasts for its three non-aligned Lloyd’s syndicates, with syndicates 510 and 557 expected to produce a profit on the 2016 year of account, while remaining stable on the 2017 year of account.

Tokio Marine Kiln logoAt the same time, the firm’s syndicate 308 is loss making on both years of account, and the Tokio Marine Kiln states that 2017 is a result of the impact of the run-off book.

By syndicate and for the 2016 year of account, syndicate 510, with capacity of £1,062 million, has a new forecast of range of 0.4% to 5.4%, compared with the previous -1% to 4% range. Syndicate 557, with capacity of £35 million, has a new forecast range of 12.9% to 17.9%, compared with 13.6% to 18.6% previously. And for syndicate 308, with capacity of £32 million, the forecast range has changed to -16.9% to -11.9%, from the previous -14.6% to -9.6%.

“Syndicates 510 and 557 are on track to deliver profits for the 2016 year of account, with 510 showing a modest improvement in its position in August owing to favourable runoff in the closed years.

“On pricing, the early strengthening in the market after the 2017 hurricane losses faded quickly in some lines and our review into the most promising business classes, started in the spring of this year, has enabled us to refocus on those lines which we believe offer the best opportunities for profitable growth in the medium term. 510 and 557 forecasts for the 2017 YOA continue to reflect the large catastrophe losses in that year,” said Charles Franks, Chief Executive Officer (CEO), Tokio Marine Kiln. 

For the 2017 year of account, syndicate 510 with capacity of £1,131 million has a new forecast range of -12.7% to -7.7%, compared with -12.5% to -7.5% previously. For syndicate 557, with capacity of £34 million, the new forecast range is -32.1% to -27.1%, compared with the previous range of -31.6% to -26.6%. For syndicate 308, with capacity of £31 million, the new range is -54.9% to -49.9%, compared with -54.8% to -49.8% previously.

“Syndicate 308 has been placed into run-off as previously stated and we continue to service the existing business professionally to ensure that there is no detriment to policyholders as a result of this action,” said Franks.

Both syndicates 510 and 557 have been impacted by the trio of hurricanes in 2017, the Mexican earthquakes and also the California wildfires, while the loss estimates for these events remains stable, says the firm.

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