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Tokio Marine Kiln announces latest Lloyd’s syndicate results and forecasts

Highlights

  • Syndicates 510, 557 and 308 each delivered profits for the 2013 year of account
  • Syndicates 510 and 557 are forecast to deliver profits for the 2014 and 2015 years of account
  • Current market conditions reinforce the need for disciplined underwriting with customers at its core

Tokio Marine Kiln Syndicates Limited (TMKS) today released the final results for its three non-aligned syndicates for the 2013 year of account, updated forecasts for the 2014 years of account and initial forecasts for the 2015 year of account.

Charles Franks, Chief Executive Officer of TMKS, said: “These latest results and forecasts demonstrate the continued ability of TMKS to understand and meet the needs of our customers, and to write good business.

“The challenging market conditions we face force us to examine how we need to adapt to ensure we can perform successfully as a business. The TMK approach has been to get closer to our customers and to further understand their needs. We then look at how we can use innovation, the expertise of our people, and our distribution options to ensure we always have the right products to satisfy the evolving risk requirements of clients.

“These results and forecasts show that this strategy is effective and we will continue to put innovation and customer centricity at the heart of what we do. Finally we will continue to use the enormous stability we benefit from as part of the Tokio Marine Group to retain and attract the very best staff, demonstrated in recent months by adding two new Liability Underwriters to our team in November and appointing a Head of Innovation in December.”

The previous forecasts, which were announced in November 2015, have been rebased to the same exchange rates (US$1.47 and C$2.05). The results and forecasts set out below take into account all managing agency and Lloyd’s charges.

2013 year of account results
Syndicate Capacity Results (% of capacity) Previous forecast range as at November 2015 %
£m
510 1,064 10.9 7.8 to 12.8
557 46 15.3 12.1 to 17.1
308 27 1.2 -3.0 to 2.0

 

Syndicates 510 and 557 each closed the 2013 year of account with the highest return on capacity achieved in recent years, benefiting from a relatively benign catastrophe year, good attritional performance and prior year reserve releases. This represents a strong performance in a year that has seen premium income hampered by tough market conditions and large cumulative foreign exchange losses.  

Life Syndicate 308 closed with a small profit, having suffered from reduced premium income and adverse claims experience. This is an improvement on the loss forecast in November due to the favourable development of reserves.

2014 year of account forecasts
Syndicate Capacity 2014 year of account forecast range % Previous forecast as at November 2015 %
£m
510 1,064 5.5 to 10.5 4.8 to 9.8
557 39 16.8 to 21.8 16.0 to 21.0
308 32 -0.3 to 4.7 -1.0 to 4.0

  

All syndicates have shown a small improvement as a result of favourable claims development following a relatively benign quarter.

2015 year of account forecasts
Syndicate Capacity 2015 year of account forecast range %
£m
510 1,063 1.1 to 11.1
557 35 15.9 to 25.9
308 32 -8.7 to 1.3

  

Syndicates 510 and 557 have benefited from a relatively benign catastrophe year, and at this early stage the mid-point ranges for the two syndicates indicate that they are both forecast to deliver a profit. 

In contrast, Syndicate 308 has had a challenging year having suffered from a series of early losses on key binders.

 

ENDS

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