Press Releases – Syndicate 1218 (Newline), Syndicate 4472 (Liberty), Syndicate 5000 (Travelers) and Syndicate 435 (Faraday)

LONDON, 29th July 2022 – Syndicate Research Limited affirmed the B^ (Average) Continuity Opinion of Lloyd’s syndicate 1218 (Newline Underwriting Management Limited). The outlook for the Continuity Opinion has been changed to positive from stable with the syndicate’s cross-cycle indicative annual returns on capital now in line with B+ (Above Average) benchmarks.

LONDON, 29th July 2022 – Syndicate Research Limited affirmed the B+^ (Above Average) Continuity  Opinion of Lloyd’s syndicate 4472 (Liberty Managing Agency Limited). The outlook for the Continuity Opinion has been changed to stable from negative in light of the syndicate’s recently recorded profit and SRL’s expectation that future returns and continuity prospects have the potential to be consistent with the B+ peer group.

LONDON,1st August 2022 – Syndicate Research Limited downgraded the B^ (Average), negative outlook, Continuity Opinion of Lloyd’s syndicate 5000 (Travelers Syndicate Management Limited) to B-^ (Below Average) in light of the syndicate’s underperformance relative to its B (Average) peer group in recent years and with the syndicate’s scorecard assessment B- (Below Average). The outlook for the Continuity Opinion is stable.

LONDON, 11th August 2022 – Syndicate Research Limited downgraded the A-^ (Good), negative outlook, Continuity Opinion of Lloyd’s syndicate 435 (Faraday Underwriting Limited) to B+^ (Above Average). This followed the syndicate’s more recent performance aligning the syndicate’s overall scorecard assessment with the B+ (Above Average) peer group. The outlook for the Continuity Opinion is stable.

2021 Syndicate Results

Syndicate annual results¹ ranged from a profit of 71% NPE (Net Premium Earned) to a loss of 107% NPE for those syndicates trading in 2021, excluding RITC syndicates.

The overall market weighted average profit¹ for syndicates trading in 2021 (excluding RITC syndicates) was 7.0% of NPE.

The weighted average overall results¹ by quartile were:
Top quartile +20.5% NPE
Second quartile +8.8% NPE
Third quartile +0.3% NPE
Fourth quartile -14.7% NPE

The overall loss¹ for the bottom quartile of syndicates, representing 11% of total NPE, represented 24% of the overall market profit for those syndicates trading in 2021.

¹ Excluding capital-related returns (primarily investment returns on Funds at Lloyd’s deposited at the syndicate level); a limited number of syndicates hold capital at the syndicate level and these returns have been excluded to achieve comparability between syndicates.

Independent and Experienced in Lloyd’s Syndicate Research

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

Syndicate Continuity Opinions (SCOs) – taking into account cross-cycle Returns on Capital and Group support – have been assigned to active syndicates representing some 71% of the market’s capacity, with quantitative Scorecard Indicators assigned to syndicates representing c.93% 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.