Tokio Marine Kiln Syndicates Limited has released results and updated forecasts as 31 December 2020 for its two non-aligned syndicates as follows

2018 year of account

Syndicate

Capacity
£000s

Result

Previous Forecast
Range

Change at
Midpoint

510

1,135,651

0.7% profit

-3.2% to 1.8%

1.4 points better

557

34,630

3.0% profit

-2.2% to 2.8%

2.7 points better

2019 year of account

Syndicate

Capacity
£000s

Revised forecast Range

Previous Forecast
Range

Change at
Midpoint

510

1,133,052

-16.1% to -6.1%

-14.4% to -4.4%

1.7 points worse

557

32,279

-5.8% to -0.8%

-4.3% to 0.7%

1.5 points worse

Brad Irick, Chief Executive Officer of Tokio Marine Kiln, said “I am pleased that TMK has delivered a profit for the 2018 year of account in the face of what was a very challenging year for the specialist insurance industry.  The 2019 year of account is significantly impacted by Covid-19 as previously reported, which unfortunately countered an otherwise profitable year. We remained focussed and committed to servicing our customers during these difficult times.

“As we now focus on the year ahead we are optimistic that we are well positioned, in a changing market environment, to capitalise on the opportunities in our targeted growth areas, which we believe will experience healthy and hardening pricing. As always we remain committed to servicing our customers during these rapidly changing times.”

On the 2018 account, TMK attributes the improvement on both syndicates to favourable movements on prior years and a better than forecast investment return.

For the 2019 year of account, Syndicate 510 has experienced some worsening of reserves for existing catastrophe losses including Covid-19 and Hurricanes Laura and Sally. Syndicate 557 was impacted by large losses in the final quarter of 2020.

Forecasts for the 2020 year of account will be released on the basis of data as at 31 March 2021 and available in May.

The 2017 account of Life Syndicate 308 remains open after 48 months. The forecast result remains unchanged in a range of loss between 38.85% of capacity to 43.65%. Capacity for the year was £30.9m.

All results and estimates are expressed as a percentage of syndicate allocated capacity and are after all standard personal expenses but before members’ agents’ fees and charges.