Blenheim Syndicate 5886 Result and Forecast

Blenheim Underwriting Limited has provided us with results and forecasts for Syndicate 5886 as follows

Blenheim adds that the 2020 account was impacted by heightened catastrophe loss activity with a series of secondary perils (i.e. losses other than hurricane and earthquake) that hit the property treaty book.

The range on the forecast for the 2021 account has narrowed slightly, and the midpoint improved. The frequency of catastrophe loss continued with a series of events that included winter storms in Texas, the largest insured loss ever in Europe, flooding in Australia, Hurricane Ida and convective storms in the Midwest of the USA. The managing agent believes that there is adequate reinsurance in place for all reasonable outcomes following the Russian invasion of Ukraine and thinks a small profit is achievable at close with some favourable development on the account in the rest of this year.

The first forecast for the 2022 account will be made at the end of March. The year will bear a share of the losses caused both by Hurricane Ian and also by smaller catastrophe events. The balance of the exposure to the invasion of Ukraine resides in the 2022 year of account. The book of business, which has diversified over time and has 33% accounted for by non-catastrophe exposed business in 2022, is performing well and with the exception of the property treaty account, all is in line with or better than the syndicate’s business plan.

Nick Destro, the active underwriter, comments “we have had a good start to trading for 2023 and we are pleased to have been able to purchase comprehensive reinsurance programmes to protect both property accounts. All accounts are continuing to experience some of the best rating environments that they have seen and this has been reflected in the business written to date in 2023”.