R.J. Kiln & Co Ltd has made the following announcement regarding forecasts for the 2011 and 2012 underwriting years

Highlights

•             Strong performance in first half of the 2013 calendar year

•             Syndicate 510 is forecast to deliver a profit for the 2011 and 2012 YOA

•             Favourable development to 2012 YOA, including improved estimates on Superstorm Sandy

R J Kiln & Co Limited, part of the Tokio Marine Group, has released updated forecasts for the 2011 and 2012 years of account for its four non-aligned syndicates.

Charles Franks, Chief Executive Officer, said: "Kiln has seen a strong start to the 2013 calendar year, thanks to our continued focus on responsible underwriting, the limited impact of the floods in Alberta and Europe, and our diverse, balanced portfolio. This is a good result so far, particularly in view of what is an increasingly competitive environment.

“While we are pleased with our progress overall, our top line income is below our projected levels for the year as our underwriters are empowered to focus on profit not volume, which is critical in this environment.

“Turning to other developments, we have recently appointed David Constable and Richard Bennison to the Board as Non-Executives, and we are already enjoying the benefits of their broad expertise.

“We have also continued to pursue our strategy to expand our operations in key territories, including Europe and Asia, by appointing talented local expertise to enhance our niche book of business. To that end, we recently appointed a new Senior Accident & Health Underwriter, Claudia Alaimo, to complement the growing team in Germany and generate new business in the region.”

The forecasts set out below take into account all managing agency and Lloyd’s charges.

2011 year of account

 

Syndicate

Forecasts as at 30 June 2013

Forecasts as at 31 March 2013

Change in Midpoint

308

1.3% to 6.3%

1.6% to 6.6%

+0.3%

510

5.1% to 10.1%

3.6% to 8.6%

+1.5%

557

5.6% to 10.6%

5.4% to 10.4%

+0.2%

807

(3.9%) to 1.1%

(4.9%) to 0.1%

+1.0%

The 2011 year of account is developing well and is showing a particularly strong improvement to Syndicate 510 due to reserve releases, which followed benign development of the 2010 and prior years of account so far this year. Overall loss estimates on several catastrophe events, including Superstorm Sandy, have been reduced this quarter.  In addition, the forecast ranges for Syndicates 557 and 807 are showing slight improvements while Kiln’s Life Syndicate 308 is showing a profit for the year.

2012 year of account

 

Syndicate

Forecasts as at 30 June 2013

Forecasts as at 31 March 2013

Change in Midpoint

308

1.5% to 6.5%

5.3% to 10.3%

(3.8%)

510

1.3% to 6.3%

0.1% to 5.1%

+1.2%

557

1.6% to 6.6%

(0.1%) to 5.0%

+1.4%

The 2012 non-life syndicates are developing well, with the forecast ranges for Syndicate’s 510 and 557 showing some improvements. There has been some deterioration in the quarter to the forecast result for Syndicate 308, following a number of large losses on a range of facilities