Syndicate 2121 Results and Forecasts

Argenta Syndicate Management Limited has provided us with closed year results for the 2019 and 2020 years of account, and an updated forecast for the 2021 year of Syndicate 2121 . These are as follows:

The 2019 account was left open at 31 December 2021 due to uncertainty around the syndicate’s exposure to Covid-19 claims, especially regarding the legal issues around business interruption claims including those in Australia. During 2022, the Australian Courts handed down decisions that were generally favourable to insurers with regard to these legal actions. The board of ASML has concluded that the position is now sufficiently stable to allow the 2019 to be closed by reinsurance into the 2021 account of syndicate 2121 as at 31 December 2022.

There was also exposure to Covid-19 claims in the 2020 year of account, although at a more modest level compared to the 2018 and 2019 underwriting years. The account has closed at 31 December 2022, again into the 2021 year of Syndicate 2121.

The 2021 year has sustained several loss events, including the Russian invasion of Ukraine, winter storm Uri in Texas, flooding in Europe and in Australia, and Hurricane Ida in August of 2021. There is nonetheless a small improvement in the forecast for the year of account at the end of the second year of development.

The managing agent will release the first forecast for the 2022 year of account at 31 March 2023.

The Syndicate’s result for the 2022 calendar year on a GAAP basis is a profit of £9.4m, at a combined ratio of 99.0%.

Syndicate results and forecasts are expressed as a percentage of allocated syndicate capacity and are after all standard personal expenses but before members’ agents’ fee.

A schedule of results and forecasts received to date is available here.