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.
Active Underwriter:
Daniel Hearsum (resigned 21 November 2023)
Simon Bird (appointed 21 November 2023)
The Managing Agent of Ki Syndicate 1618 (the Syndicate) is Brit Syndicates Limited (BSL). Syndicate 1618 is a fully-digital, algorithmically-driven syndicate at Lloyd’s.
In 2023, technology development at Ki focused on the readiness of the platform to launch Ki Digital and bind risks on behalf of three syndicates for risks incepting on 1 January 2024.
The Syndicate is backed by Blackstone Tactical Opportunities (Blackstone) and Fairfax Financial Holdings Limited (Fairfax).
| KPI $m | 2023 | 2022 | 2021 |
| GPW | 877.0 | 834.1 | 395.6 |
| NPW | 649.6 | 643.6 | 345.6 |
| Earned premiums Net | 648.1 | 506.2 | 165.6 |
| Underwriting Result | 66.7 | 17.7 | (15.0) |
| Investment Return | 35.9 | (7.9) | (0.5) |
| Technical Result | 102.6 | 9.8 | (15.5) |
| Total comp income | 100.8 | 10.8 | (15.9) |
| Claims Ratio | 58.9% | 64.7% | 69.5% |
| Expense Ratio | 30.8% | 31.8% | 39.5% |
| Combined Ratio | 89.7% | 96.5% | 109.0% |
The Syndicate benefitted from the relatively benign catastrophe year and recognised major losses in relation to the Hawaiian wildfires and Hurricane Idalia with a combined net impact of $20.0m (2022 events: $48.9m). The net impact of these events was managed through the successful renewal of a catastrophe reinsurance programme and a whole account quota share. The net impact of these events (3.1% impact on combined ratio) was managed to lower than expectation (2022: 9.7%).
The net attritional loss ratio is 53.2% (2022: 54.3%). This reflects a rebalance of the portfolio to short-tail classes and the latest reserving position on the 2021, 2022 and 2023 years of account. It also includes an additional risk margin of $5.0m. The risk margin is applied to allow for inherent uncertainty within the reserve position.
Quota share protection is purchased at a class level for cyber risk and at a whole account level to optimise the capital structure. For 2024 the Syndicate has significantly reduced its reinsurance spend across all programmes, but particularly in the whole account quota share.
The Syndicate recorded a net investment return of $35.9m (2022: loss of $7.9m). This included income from investments of $26.4m (2022: $5.8m) given sustained higher market yields in 2023 compared to the increases in yields during 2022. The yield on the portfolio at the end of 2023 was 4.7% (2022: 4.5%); whilst yields were materially unchanged over the year, there was volatility during the period.
The ongoing Russia-Ukraine conflict arising from the Russian invasion of Ukraine and the conflict in the Middle East were termed “a cause for uncertainty”. The Syndicate said that it had analysed its potential exposures across its (re)insurance portfolio as well as the wider financial and operational challenges brought about by the conflicts. The Syndicate has direct exposures within the Terrorism, Casualty Treaty, Marine War, and Contingency classes, along with secondary impacts across the CyberUpdated class and potential recessionary impacts. The Syndicate does not write Aviation business. The Syndicate said that its exposures continued to be actively monitored and managed.
Segmental information
| 2023 $m | GPW | GPE | GCI | GOE | Reins. | Total |
| Direct MAT | 70.6 | 63.9 | (32.9) | (14.0) | (7.6) | 9.4 |
| Total Direct | 607.9 | 592.1 | (317.4) | (137.0) | (93.6) | 44.1 |
| Reinsurance | 269.1 | 253.5 | (144.9) | (93.7) | 7.7 | 22.6 |
| Total | 877.0 | 845.6 | (462.3) | (230.7) | (85.9) | 66.7 |
| 2022 $m | GPW | GPE | GCI | GOE | Reins. | Total |
| Direct MAT | 63.2 | 47.3 | (33.9) | (12.3) | (1.7) | (0.6) |
| Total Direct | 598.7 | 465.1 | (299.1) | (116.7) | (35.8) | 13.5 |
| Reinsurance | 235.4 | 178.1 | (117.1) | (64.9) | 8.1 | 4.2 |
| Total | 834.1 | 643.2 | (416.2) | (181.6) | (27.7) | 17.7 |
| 2021 $m | GPW | GPE | GCI | GOE | Reins. | Total |
| Direct MAT | 31.2 | 16.0 | (10.7) | (5.6) | (1.3) | (1.6) |
| Total Direct | 278.5 | 138.1 | (90.5) | (45.8) | (19.8) | (18.0) |
| Reinsurance | 117.1 | 61.1 | (34.3) | (20.9) | (2.9) | 3.0 |
| Total | 395.6 | 199.2 | (124.8) | (66.7) | (22.7) | (15.0) |
Commissions on direct insurance gross premiums written during 2023 were $118.1m (2022: $130.0m) (2021: $62.4m).
Emoluments
| Underwriter’s Remuneration $m | 2023 | 2022 |
| Aggregate remuneration | 0.9 | 0.9 |
