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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 2014 year of account, with 510 and 557 achieving their highest return on capacity in recent years
• Syndicates 510 and 557 are forecast to deliver profits for the 2015 and 2016 years of account
• Our consistent strategy of focusing on our customers and disciplined underwriting continues to drive results

Tokio Marine Kiln Syndicates Limited today released the final results for its three non-aligned syndicates for the 2014 year of account, updated forecasts for the 2015 year of account and initial forecasts for the 2016 year of account.

Charles Franks, Group Chief Executive Officer of Tokio Marine Kiln, said: “These very strong results and encouraging forecasts reflect our continued focus on disciplined underwriting, innovation and delivering an exemplary service to our customers.

“During the year we have enhanced our product range, simplified our underwriting structure, recruited talent in areas of growth and embraced new types of distribution including our One TMK digital exchange, which was launched in July. Recent additions to the platform include insurance for unmanned aerial systems and construction risks which are already generating significant interest.

“Political uncertainty in the US and the UK continues to dominate the headlines and we are advancing plans to ensure the sustainability of our book. Nonetheless, trading conditions remain extremely challenging and pricing pressure is ongoing. In spite of this, our consistent underwriting strategy and focus on meeting the changing needs of our customers will stand us in good stead as we face the challenges and opportunities of 2017.”

The previous forecasts, which were announced in November 2016, have been rebased to the same exchange rates (US$1.24 and C$1.66). The results and forecasts set out below take into account all managing agency and Lloyd’s charges.

 2014 year of account results
Syndicate                          Capacity £m                                
 
Result (% of capacity)                       Previous forecast range as at November 2016 %
510

 1,064  15.7  11.2 to 16.2
557

 39  27.4  22.4 to 27.4
308  32  2.3  -0.3 to 4.7


Syndicates 510 and 557 each closed the 2014 year of account with very good results, representing the highest return on capacity achieved in recent years. These results followed favourable claims experience on both the open and closed years of account along with significant foreign exchange gains. Syndicate 557 in particular had a strong final quarter and delivered the best result the syndicate has seen since the 2006 year of account.

Life Syndicate 308 also closed with a profit and achieved a result that is well within the previous forecast range.

 2015 year of account forecasts
 Syndicate                          

Capacity £m                                 

2015 year of account forecast range %

Previous forecast range as at November 2016 %

 510

1,063

 6.0 to 11.0

 5.1 to 10.1

 557

35

 23.9 to 28.9

 23.7 to 28.7

 308 32   -5.6 to -0.6  -6.2 to -1.2


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

 2016 year of account forecasts
 Syndicate         

 Capacity £m                                   

2016 year of account forecast range % 
 510

 1,063

 -3.0 to 7.0

 557

 35

 5.6 to 15.6

 308 32   -2.1 to 7.9


Despite Syndicate 510 having incurred claims for Hurricane Matthew, the mid-point range indicates that the syndicate is still forecast to deliver a profit. In contrast, Syndicate 557 has had a relatively benign catastrophe experience at this early stage.

 

ENDS

 

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