The Lloyd’s syndicates have now published their results for 2023 and, in some cases, added detail and an outlook for 2024. Some have stuck to the bare bones. As in the previous few years, IMN is summarizing the results from all syndicates that have a notable marine interest, if they have provided some information on the marine side.
Probitas Managing Agency Ltd (PMA) is a wholly owned subsidiary (indirectly held) of Probitas Holdings Bermuda Limited.
Active Underwriter A L Dodson
KPIs
| £000s | 2023 | 2022 | 2022 -Excluding LPT |
| Gross premiums written | 288,243 | 210,874 | 210,574 |
| Gross premiums earned | 251,947 | 200,225 | 199,924 |
| Net premiums earned | 204,961 | 117,123 | 168,843 |
| Net claims incurred | (79,368) | (20,701) | (69,823) |
| Technical result | 41,344 | 36,205 | 38,327 |
| Profit for the financial year | 53,296 | 30,093 | 32,215 |
| 2023(UK GAAP) | 2022 (adjusted for LPT) | |
| Net Loss Ratio | 38.7% | 41.4% |
| Net Commission Ratio | 20.8% | 20.2% |
| Net Expense Ratio | 18.5% | 17.6% |
| NCOR (Excluding FX and LPT) | 78.0% | 79.2% |
| FX impact | 1.8% | (1.9%) |
| Net LPT cost | – | 1.3% |
| NCOR (Including FX and LPT) | 79.8% | 78.6% |
2023 saw the formation of the AdA SPA Syndicate, beginning with the 2024 Year of Account. The AdA SPA is hosted by Probitas 1492 and managed by Probitas Managing Agency. AdA is a marine & specialty focused business which provides Probitas 1492 access to these products (via its underwriting participation), underwritten by an experienced underwriting team with a proven track record in the sector.
PMA began writing this business in 2023, supported by conventional reinsurance partners who now form the core capital support for the SPA in 2024.
The syndicate said that renewal rate increases were more modest in 2023, as had been anticipated at the end of last year. The overall risk adjusted rate change (net of exposure inflation) was plus 5% across all classes of business. However, the directional dynamics by product line were more nuanced than has generally been the case in the past five years. Rate increases were achievable on property and general liability, but financial lines and cyber recorded saw declines.
The Syndicate’s approved GWP for 2024 is £400m, of which £86m relates to business planned in respect of the AdA SPA. Syndicate 1492 ultimately cedes approximately 75% of this business to Special Purpose Arrangement (SPA) AdA Syndicate 2024, resulting in a comparable increase of approximately 23% from the pre-empted 2023 SBF of £273m.
The geographical split of planned income remains broadly unchanged from previous years, with the UK, Ireland, Australia, Canada and Central America & Caribbean being key regions for the business.
From a business perspective, whilst recognising the wider potential future geo-political impact of the conflicts in the Middle East and Ukraine, PMA management said that t had reviewed 1492’s underwriting and investment portfolios and considers that at this stage, any direct impact to the Probitas business arising from this will not be not material. The Syndicate has minimal live exposure in these territories. Further, 1492 does not provide insurance cover relating to War or Aviation risks
Set out below is the planned portfolio development in the marine and energy sectors for the 2024 year of account, based upon the 2024 Syndicate Business Forecast.
2024 (£000s):
| Cargo | 12,246 | 3% |
| Marine Liability | 28,753 | 7% |
| Ports & Terminals | 4,787 | 1% |
| Marine Total | 45,786 | 11% |
| Energy Gulf Of Mexico wind | 2,175 | 1% |
| Energy excluding GOM wind | 31,140 | 8% |
| Energy Total | 33,315 | 9% |
| Total | 400,387 | 100% |
Segmental Analysis
| 2023 £000s | GPW | GPE | GCI | NOE | Reins Bal | Total |
| Direct MAT | 6,846 | 2,750 | (1,394) | (260) | (868) | 228 |
| Total Direct | 223,127 | 193,992 | (63,465) | (63,055) | (27,137) | 40,335 |
| Reinsurance | 65,116 | 57,955 | (29,921) | (17,504) | (5,831) | 4,699 |
| Total | 288,243 | 251,947 | (93,386) | (80,559) | (32,968) | 45,034 |
No MAT business was reported for 2022
| 2022 £000s | GPW | GPE | GCI | NOE | Reins Bal | Total |
| Reinsurance | 51,791 | 50,345 | (19,750) | (13,707) | 19,727 | 36,615 |
| Total | 210,874 | 200,225 | (98,695) | (63,345) | (5,108) | 33,077 |
Emoluments
The proportion recharged to Syndicate 1492 in respect of the emoluments of the active underwriter for the year ended 31 December 2023 was £257,000 (31 December 2022 comparative was £245,000).
