Tokio Marine Kiln Syndicates has released updated forecasts for the 2016 and 2017 years of account for its three non-aligned syndicates.
For 2016 all three syndicates showed small improvements owing to a stable quarter in the company’s back-year development and, in particular, a reduction in ultimate losses for the 2017 Q3 catastrophes.
“On the pricing front we have, like others, seen some improvements in selected areas but the overall market remains tough and competitive,” said Charles Franks, Chief Executive Officer of Tokio Marine Kiln.
“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,” added Franks.
“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.”
For the 2017 year of account, Syndicate 510’s capacity was £1,131 million, with an updated result range of -12.4 to -7.4, a slight improvement from the previous May 2018 forecast range of 12.5 to -7.5.
Syndicate 557’s capacity was £34 million, with an updated result range of -31.2 to -26.2, a slight improvement from the -38.1 to -33.1 range forecast in May 2018.
Also for the 2017 year of account, Syndicate 308’s capacity stood at £31 million and its result range was updated to -54.8 to -49.8 from -54.9 to -49.9.
“The impact of an active catastrophe environment in the second half of the 2017 financial year is reflected in the forecasts for Syndicates 510 and 557,” said Franks.
“The 2017 year of account for both 510 and 557 experienced losses on Hurricanes Harvey, Irma and Maria, the Mexican earthquakes and the Californian wildfires, all of which had a substantial impact on the forecast ranges.”
“The forecast loss range for Syndicate 557 has improved following favourable claim movements on the open years. A relatively stable quarter has seen the forecast range for Syndicate 510 marginally improve.”