Press Release

LONDON, 17th April 2018 – Syndicate Research Limited (SRL) today downgraded the B+^ (Above Average),under review for possible downgrade, Continuity Opinion of Lloyd’s syndicate 4444 (Canopius Managing Agents Limited) to B^ (Average) following the Canopius group being acquired by a private equity consortium under a management buy-out from Sompo Holdings Inc (Sompo). The outlook for the Continuity Opinion is stable.

Press Release

LONDON, 16th April 2018 – Syndicate Research Limited (SRL) today downgraded the A-^ (Good), negative outlook, Continuity Opinion of Lloyd’s syndicate 2001 (MS Amlin Underwriting Limited) to B+^ (Above Average) following the announcement of its 2017 annual results, in light of the syndicate’s continued material underperformance relative to its Continuity Opinion peer group. The Continuity Opinion remains under review for further possible downgrade pending the receipt of further information.

Lloyd’s Full Year Results 2017

The Lloyd’s Market has reported a pre-tax loss of £2,001m on a combined ratio of 114.0% (2016 97.9%) for 2017, being a loss of 7% on average capital, offsetting the profit recorded for 2016 (8% capital) as expected (reference SRL’s Special Report ‘Hurricane Losses, Competitive Markets and Brexit Implications’ September 2017).

The results were significantly impacted by the Q3 2017 Hurricanes with Major Losses increasing to 19% of Net Premium Earned (NPE) (2016 9%). The attritional loss ratio also increased to 59% NPE (2016 53%); prior year releases reduced to 3% NPE (2016 5%). The losses were offset by investment returns of 7% NPE (2016 6%) and total expenses reducing to 40% NPE (2016 41%).

Lloyd’s overall loss of 8.2% NPE compares to a profit of 9.3% NPE in 2016.

2017 was an exceptional year in terms of loss incidence. However, SRL views the accident year combined ratio excluding major losses of 98% as reflective of more recent market conditions. The accident year combined ratio excluding major losses has to be placed in the context of reduced prior year releases and 10-year average major claims for Lloyd’s of 10% NPE.

Syndicate annual results ranged from a profit of 65% NPE to a loss of 89% NPE for those syndicates trading in 2017.

 

Independent and Experienced in Lloyd’s Research

Syndicate Research Limited (SRL) provides in-depth research on all trading syndicates operating in the Lloyd’s of London insurance market.

Syndicate Continuity Opinions (SCOs) have been assigned to active syndicates representing 73% of the market’s capacity, with quantitative Scorecard Indicators assigned to syndicates representing 92% of the market’s capacity.

With a combined experience of the Lloyd’s market of over 50 years, our team produces research which is used by clients the world over.

We value our independence; we do not accept payment from the syndicates or managing agents for coverage of their businesses.


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