Asta Managing Agency Ltd 4747

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Syndicate 4747

Annual Report and Accounts for the year ended

31 December 2025

Contents 
Directors and administration .................................................................................................. 1 
Managing Agent's report ....................................................................................................... 2 
Statement of Managing Agent's responsibilities .................................................................... 8 
Independent auditor’s report to the members of Syndicate 4747 ........................................... 9 
Statement of profit or loss and other comprehensive income .............................................. 14 
Statement of financial position ............................................................................................ 16 
Statement of changes in Members' balances ...................................................................... 18 
Statement of cash flows ...................................................................................................... 19 
  Basis of preparation ..................................................................................................... 20 
  Critical accounting estimates and judgements ............................................................. 20 
  Significant accounting policies ..................................................................................... 22 
  Analysis of underwriting result...................................................................................... 28 
  Technical provisions .................................................................................................... 31 
  Net operating expenses ............................................................................................... 32 
  Auditor’s remuneration ................................................................................................. 32 
  Key management personnel compensation ................................................................. 33 
  Staff numbers and costs .............................................................................................. 33 
  Investment return .................................................................................................... 34 
  Financial Investments .............................................................................................. 34 
  Debtors arising out of direct insurance operations ................................................... 37 
  Debtors arising out of reinsurance operations.......................................................... 37 
  Other debtors .......................................................................................................... 38 
  Creditors arising out of direct insurance operations ................................................. 38 
  Creditors arising out of reinsurance operations ........................................................ 38 
  Other creditors ......................................................................................................... 39 
  Cash and cash equivalents ...................................................................................... 39 
  Related parties ........................................................................................................ 40 
  Disclosure of interests ............................................................................................. 40 
  Funds at Lloyd's ...................................................................................................... 41 
  Off-balance sheet items ........................................................................................... 41 
  Risk management ................................................................................................... 42 
  Post balance sheet events ....................................................................................... 56 
   

Directors and administration

Managing Agent

Asta Managing Agency Ltd (“Asta”)

Directors

P A Jardine (Chairman)*

C V Barley

S Bradbury

E M Catchpole*

L Edmonds (subject to regulatory approval)

S Fisher*

L Harfitt

D A Hopkins

S B Logue

L J M McMaster

A F J Neden*

S D Redmond*

Non-Executive Directors*

Managing Agent's registered office

5th Floor

20 Gracechurch Street

London

EC3V 0BG

Managing Agent's registered number

1918744

Active Underwriter

R Crocker

Bankers and investment managers

Barclays

Royal Bank of Canada

Citibank

Northern Trust

Registered Auditor

PKF Littlejohn LLP

Signing Actuary

PKF Littlejohn LLP

Managing Agent's report

The Syndicate's Managing Agent is a company registered in England and Wales. The

Directors of the Managing Agent present their report for the year ended 31 December 2025.

The financial statements herein have been prepared using the annual basis of accounting as

required by Statutory Instrument No 1950 of 2008, The Insurance Accounts Directive (Lloyd's

Syndicate and Aggregate Accounts) Regulations 2008 (“Lloyds Regulations 2008”).

Results

The result for calendar year 2025 is a loss of £8,103,766 (2024: loss of £1,854,910).

The Syndicate presents its results under FRS102, the Financial Reporting Standard applicable

in the UK and Republic of Ireland. In accordance with FRS102, the Syndicate has identified its

insurance contracts and accounted for them in accordance with FRS103 Insurance Contracts.

Principal activity and review of the business

The Syndicate’s principal activity is the underwriting of direct insurance and reinsurance

business in the Lloyd’s market.

Gross written premium income by class of business for the calendar year was as follows:

2025

£’000

2024

£’000

Accident and Health

3,866

2,811

Motor (third party liability)

189

595

Marine, Aviation and Transport

(247)

513

Fire and other damage to property

45,120

43,288

Third party liability

108,032

82,982

Credit and suretyship

5,667

Reinsurance acceptances

41,013

33,215

203,640

163,404

The Syndicate's financial key performance indicators during the year were as follows:

2025

£’000

2024

£’000

Gross premiums written

203,640

163,404

Loss for the financial year

(8,104)

(1,855)

Combined ratio*

104.7%

102.7%

*The combined ratio is the ratio of net claims incurred and net operating expenses to net

premiums earned in the calendar year. Lower ratios represent better performance.

Managing Agent’s report continued

The performance of the Syndicate has been assessed by measuring, as a percentage of

underwriting capacity, the 36-month forecasted result on a funded accounting basis for an

individual underwriting year of account (“YOA”). The return on capacity for each underwriting

year is shown below.

Note that the 2023 underwriting year is now closed, as of 31 December 2025.

2025 YOA

Open

2024 YOA

Open

2023 YOA

Closed

Capacity (£’000)

190,000

150,000

116,000

Forecast result (£’000)

12,138

2,260

Forecast return on capacity (%)

6.4%

1.5%

0.0%

Principal risks and uncertainties

The Syndicate sets risk appetite annually, which is approved by the Agency as part of the

Syndicate’s business planning and Solvency Capital Requirement (“SCR”) process. The

Agency Risk Committee meets at least quarterly to oversee the risk management framework.

The Syndicate Board, which reports to the Agency Board, reviews the risk profile as reflected

in the risk register, and monitors performance against risk appetite using a series of key risk

tolerances. The principal risk and uncertainties facing the Syndicate are as follows:

Insurance risk

Insurance risk includes the risks that a policy will be written for too low a premium or provide

inappropriate cover (underwriting risk), that the frequency or severity of insured events will be

higher than expected (claims risk), or that estimates of claims subsequently prove to be

insufficient (reserving risk). The Syndicate Board and Underwriting Committee manages

insurance risk through challenge and oversight of the approved business plan, which sets out

targets for volumes, pricing, line sizes and retention by class of business. The Syndicate

Board then monitors performance against the business plan and the aggregation of risk

through exposure management reporting through the year. The Syndicate Board considers

any proposed underwriting that impacts the Syndicate’s Environmental, Social and

Governance (“ESG”) profile to ensure consistency with the agreed ESG approach. Reserve

adequacy is monitored through quarterly review by the Asta Actuarial team and the Reserving

Committee.

Credit risk

The key aspect of credit risk is reinsurance counterparty risk which is the risk of default by one

or more of the Syndicate’s reinsurers or intermediaries. The Syndicate’s policy is to use only

approved reinsurers, supported by collateralisation where required. The Agency Reinsurance

Security Committee sets approval and usage criteria, monitors reinsurer ratings and is required

to approve and oversee the application of the Reinsurer Approval policy. The Syndicate is also

exposed to credit risk from its premium transactions through brokers. The receivables consist

of a large number of policyholders, spread across diverse industries and geographical areas.

Ongoing evaluation of credit risk is maintained by monitoring of aged debts and is reviewed

regularly by the Syndicate Board.

Managing Agent’s report continued

Market risk

Market risk exposure impacting the Syndicate relates to fluctuations in interest rates or

exchange rates and inflation. The Syndicate is exposed to foreign exchange movements as

a result of mismatches between the currencies in which assets and liabilities are denominated.

The Agency’s policy is to maintain received income or incurred expenditure in the core

currencies in which they were received or paid. Any surplus or deficit in a core currency would

be subject to review by the Syndicate Board.

Liquidity risk

This is the risk that the Syndicate will not be able to meet its liabilities as they fall due, owing

to a shortfall in cash or can meet obligations only at excessive cost. To mitigate this risk the

Syndicate Board reviews cash flow projections regularly and ensures that, where needed, the

Syndicate has liquidity facilities in place or has utilised the option of a cash call from Capital

providers.

The Syndicate has in place an overdraft facility with Barclays. During the financial year, the

Syndicate has replaced its letter of credit facility with Oversea-Chinese Banking Corporation

(OCBC) with a multi option trade and letter of credit facility with Barclays.

Operational risk

This is the risk that errors caused by people, processes, systems and external events lead to

losses to the Syndicate. The Agency seeks to manage this risk through a robust operational

risk and control framework including detailed procedure manuals and a thorough training

programme. This is underpinned by a structured programme of testing of processes and

systems by internal audit, who serve as an independent line of assurance, reporting directly to

the Chair of the Agency Audit Committee. Business continuity and disaster recovery plans

are in place and are regularly updated and tested.

Regulatory risk is the risk of loss owing to a breach of regulatory requirements or failure to

respond to regulatory change. The Agency is required to comply with the requirements of the

Financial Conduct Authority (FCA), Prudential Regulatory Authority (PRA) and Lloyd’s. Lloyd’s

requirements include those imposed on the Lloyd’s market by overseas regulators. The

Agency has a Compliance Director who manages a function that monitors business activity

and regulatory developments to assess any effects on both the Agency and the Syndicate.

The Syndicate has no appetite for failing to adhere to the requirements of the FCA Consumer

Duty regulations and continues its focus on ensuring that it is treating customers fairly. The

Syndicate manages and monitors consumer duty risk through a suite of risk indicators and

reporting metrics as part of its documented consumer duty risk framework. The consumer duty

risk framework is consistently applied across all Asta syndicates and is overseen by the

Conduct Oversight Group (COG), which is an Agency Board Committee that includes a non-

executive director as a member who fulfils the role of Consumer Duty Champion.

Managing Agent’s report continued

Group and strategic risk

Group risk is the risk of contagion that arises from being associated with key stakeholders and

the impact that activities and events that occur within other connected or third parties has on

the business.

Strategic risk covers the risks faced by the Syndicate due to changes in underlying strategy of

the business or that of its key stakeholders (including strategic conflicts of interest).

Future developments

The Syndicate will continue to transact the current classes of general direct insurance and

reinsurance business. If opportunities arise to write new classes of business, these will be

investigated at the appropriate time.

The capacity for the 2026 underwriting year is £225m (2025 underwriting year: £190m).

Sustainability and climate risk

The Syndicate aligns to Asta’s Sustainability Risk Policy, which has been prepared to meet

sustainability-related regulatory expectations across all Asta entity jurisdictions, including

those set by the Prudential Regulatory Authority (PRA) and Financial Conduct Authority (FCA).

The policy is executed through a framework that is integrated within the wider enterprise risk

management framework, ensuring a proportionate response to material exposures arising

from sustainability-related risks. Asta’s Chief Risk Officer, who is a Board member, is

responsible for the Sustainability Risk Policy.

Asta monitors regulatory guidance and expectations on managing the risks and opportunities

arising from sustainability, including the PRA's Supervisory Statement 05/25 on climate risk

management.

The Syndicate sets out its strategic ambitions with regards sustainability as part of the annual

business planning exercise and captures this as a standalone set of policy principles, which

are then cascaded throughout the underwriting control framework.

Emerging risks

An emerging risk or opportunity is defined as “a developing issue, triggered externally, with

the potential to have a significant business impact but which may not be sufficiently understood

or accounted for”. The business impact in this case could represent a downside risk or an

upside opportunity. Emerging risks and opportunities include:

• Syndicate insurable risks, as areas of potential future losses or new product offerings;

• Those risks that may affect a syndicate’s ability to carry out normal business operations

and/or lead to unplanned significant costs/income;

• Both new risks and those which are re-emerging in a new context.

The Agency and Syndicate continue to monitor the impact of emerging risks on the Syndicate’s

business, taking into account their impacts on the strategic direction of the Syndicate. Asta

has established a Horizon Scanning Policy, which sets out the varying methods and practices

available for collecting emerging risk and opportunity data, performing deep dive reviews, and

ongoing engagement.

Managing Agent’s report continued

Specific areas of focus over the external environment across the year at Syndicate and Asta

level include:

• Geopolitical risk: The geopolitical landscape continues to remain volatile due to

regional military conflicts and fluctuating trade wars, which have impacted market

stability and supply chain vulnerability.

• Physical Climate Change: Insurance losses from natural catastrophes continue to set

records as they exceed $100bn for the sixth continuous year, whilst insurance

protection gaps continue to grow in most jurisdictions.

• AI Adoption and Novel Technologies: AI adoption continues at a pace that challenges

regulatory oversight, technical capabilities and governance frameworks.

Directors

Details of the Directors of the Managing Agent that were serving at the date of signing these

financial statements are provided on page 1. Changes to Directors from the last report were

as follows:

R P Barke Resigned 30 June 2025

S B Logue Appointed 26 August 2025

D B Jones Resigned 31 December 2025

K Shah Resigned 31 December 2025

D A Hopkins Appointed 9 February 2026

L Edmonds Subject to regulatory approval

Managing Agent’s report continued

Disclosure of information to the auditor

So far as each person who was a Director of the Managing Agent at the date of approving the

report is aware, there is no relevant audit information, being information needed by the

Syndicate auditor in connection with the auditor's report, of which the auditor is unaware.

Having made enquiries of fellow Directors of the Agency and the Syndicate's auditors, each

Director has taken all the steps that he or she ought to have taken as a Director to become

aware of any relevant audit information and to establish that the Syndicate's auditor is aware

of that information.

Auditor

The Managing Agent intends to reappoint PKF Littlejohn LLP as the Syndicate’s auditor.

Syndicate Annual General Meeting

In accordance with the Syndicate Meetings (Amendment No 1) Byelaw (No 18 of 2000) the

Managing Agent does not propose holding an annual meeting this year; objections to this

proposal or the intention to reappoint the auditors for a further 12 months can be made by

Syndicate members within 21 days of this notice.

On behalf of the Board

S B Logue

Director

February 2026

Statement of Managing Agent's responsibilities

The Managing Agent is responsible for preparing the financial statements in accordance with

applicable law and regulations.

The Insurance Accounts Directive (Lloyd's Syndicate and Aggregate Accounts) Regulations

2008 require the managing agent to prepare financial statements at 31 December each year

in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom

Accounting Standards and applicable law) including FRS 102 the Financial Reporting

Standard applicable in the UK and Republic of Ireland. The financial statements are required

by law to give a true and fair view of the state of affairs of the Syndicate as at that date and of

its profit or loss for that year.

In preparing the financial statements, the managing agent is required to:

• select suitable accounting policies and then apply them consistently subject to changes

arising on the adoption of new accounting standards in the year;

• make judgements and estimates that are reasonable and prudent;

• state whether applicable Accounting Standards have been followed, subject to any

material departures disclosed and explained in the notes to the Syndicate accounts;

and

• prepare the Syndicate Accounts on the basis that the Syndicate will continue to write

future business unless it is inappropriate to presume that the Syndicate will do so.

The Managing Agent is responsible for keeping adequate accounting records which disclose

with reasonable accuracy at any time the financial position of the Syndicate and enable it to

comply with the Insurance Accounts Directive (Lloyd's Syndicate and Aggregate Accounts)

Regulations 2008. It is also responsible for safeguarding the assets of the Syndicate and

hence for taking reasonable steps for the prevention and detection of fraud and other

irregularities.

The Managing Agent is responsible for the maintenance and integrity of the corporate and

financial information included on the business' website. Legislation in the United Kingdom

governing the preparation and dissemination of financial statements may differ from legislation

in other jurisdictions.

The Managing Agent is responsible for the preparation and review of the iXBRL tagging that

has been applied to the Syndicate Accounts in accordance with the instructions issued by

Lloyd’s, including designing, implementing and maintaining systems, processes and internal

controls to result in tagging that is free from material non-compliance with the instructions,

whether due to fraud or error.

We confirm that to the best of our knowledge the Syndicate Accounts, including the iXBRL

tagging applied to these accounts, comply with the requirements of the Lloyd’s Syndicate

Accounts Instructions version 3.1 as modified by the Frequently Asked Questions version 1.1

issued by Lloyd’s.

On behalf of the Board

S B Logue

Director

February 2026

Independent auditor’s report to the members of Syndicate 4747

Opinion

We have audited the Syndicate Annual Accounts of Syndicate 4747 (the ‘Syndicate’) for the

year ended 31 December 2025 which comprise the Statement of profit or loss and other

comprehensive income, the Balance sheet, the Statement of changes in members’ balances,

the Statement of cash flows and notes to the financial statements, including significant

accounting policies. The financial reporting framework that has been applied in their

preparation is applicable law and United Kingdom Accounting Standards, including FRS 102

The Financial Reporting Standard applicable in the UK and Republic of Ireland (United

Kingdom Generally Accepted Accounting Practice).

In our opinion, the Syndicate Annual Accounts:

• give a true and fair view of the state of the Syndicate’s affairs as at 31 December 2025

and of its loss for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted

Accounting Practice; and

• have been prepared in accordance with the requirements of the Insurance Accounts

Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 and the

requirements within Lloyd’s Syndicate Accounts Instructions Version 3.1 as modified

by the Frequently Asked Questions Version 1.1 issued by Lloyd’s (the “Lloyd’s

Syndicate Accounts Instructions”).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs

(UK)), The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts)

Regulations 2008, the Lloyd’s Syndicate Accounts Instructions and other applicable law. Our

responsibilities under those standards are further described in the Auditor’s responsibilities for

the audit of the Syndicate Annual Accounts section of our report. We are independent of the

Syndicate in accordance with the ethical requirements that are relevant to our audit of the

Syndicate Annual Accounts in the UK, including the FRC’s Ethical Standard, and we have

fulfilled our other ethical responsibilities in accordance with these requirements. We believe

that the audit evidence we have obtained is sufficient and appropriate to provide a basis for

our opinion.

Other matter

This report may be included within a document to which iXBRL tagging has been applied. This

auditor’s report provides no assurance over whether the iXBRL tagging has been applied in

accordance with the Lloyd’s Syndicate Accounts Instructions.

Conclusions relating to going concern

In auditing the Syndicate Annual Accounts, we have concluded that the managing agent’s use

of the going concern basis of accounting in the preparation of the Syndicate Annual Accounts

is appropriate.

Based upon the work we have performed, we have not identified any material uncertainties

relating to events or conditions that, individually or collectively, may cast significant doubt on

the Syndicate’s ability to continue as a going concern for a period of at least twelve months

from when the Syndicate Annual Accounts are authorised for issue.

Our responsibilities and the responsibilities of the managing agent with respect to going

concern are described in the relevant sections of this report.

Independent auditor’s report continued

Other information

The other information comprises the information included in the Syndicate Annual Report and

Accounts, other than the Syndicate Annual Accounts and our auditor’s report thereon.

The managing agent is responsible for the other information contained within the Syndicate

Annual Report and Accounts. Our opinion on the Syndicate Annual Accounts does not cover

the other information and, except to the extent otherwise explicitly stated in our report, we do

not express any form of assurance conclusion thereon. Our responsibility is to read the other

information and, in doing so, consider whether the other information is materially inconsistent

with the Syndicate Annual Accounts or our knowledge obtained in the course of the audit, or

otherwise appears to be materially misstated. If we identify such material inconsistencies or

apparent material misstatements, we are required to determine whether this gives rise to a

material misstatement in the Syndicate Annual Accounts themselves. If, based on the work

we have performed, we conclude that there is a material misstatement of this other information,

we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Insurance Accounts Directive (Lloyd’s

Syndicate and Aggregate Accounts) Regulations 2008

In our opinion, based on the work undertaken in the course of the audit:

• the information given in the managing agent’s report for the financial year for which the

Syndicate Annual Accounts are prepared is consistent with the Syndicate Annual

Accounts; and

• the managing agent’s report has been prepared in accordance with applicable legal

requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Syndicate and its environment obtained

in the course of the audit, we have not identified material misstatements in the managing

agent’s report.

We have nothing to report in respect of the following matters in relation to which the Insurance

Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 requires us

to report to you if, in our opinion:

• adequate accounting records have not been kept on behalf of the Syndicate; or

• the Syndicate Annual Accounts are not in agreement with the accounting records and

returns; or

• certain disclosures of managing agent emoluments and other benefits specified by law

are not made; or

• we have not received all the information and explanations we require for our audit.

Responsibilities of the managing agent

As explained more fully in the statement of managing agent’s responsibilities, the managing

agent is responsible for the preparation of the Syndicate Annual Accounts and for being

satisfied that they give a true and fair view and for such internal control as the managing agent

determines is necessary to enable the preparation of Syndicate Annual Accounts that are free

from material misstatement, whether due to fraud or error.

Independent auditor’s report continued

In preparing the Syndicate Annual Accounts, the managing agent is responsible for assessing

the Syndicate’s ability to continue to write new business, disclosing, as applicable, matters

related to its ability to continue to operate and using the going concern basis of accounting,

unless the managing agent intends to cease to operate the Syndicate or has no realistic

alternative but to do so.

Auditor’s responsibilities for the audit of the Syndicate Annual Accounts

Our objectives are to obtain reasonable assurance about whether the Syndicate Annual

Accounts as a whole are free from material misstatement, whether due to fraud or error, and

to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of

assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will

always detect a material misstatement when it exists. Misstatements can arise from fraud or

error and are considered material if, individually or in the aggregate, they could reasonably be

expected to influence the economic decisions of users taken on the basis of these Syndicate

Annual Accounts.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We

design procedures in line with our responsibilities, outlined above, to detect material

misstatements in respect of irregularities, including fraud. The extent to which our procedures

are capable of detecting irregularities, including fraud is detailed below:

• We obtained an understanding of the Syndicate and the insurance sector in which it

operates to identify laws and regulations that could reasonably be expected to have a

direct effect on the Syndicate Annual Accounts such as The Insurance Accounts Directive

(Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 and the Lloyd’s Syndicate

Accounts Instructions. We obtained our understanding in this regard through discussions

with management, industry research and the application of our cumulative audit knowledge

and experience of the insurance sector.

• We determined the principal laws and regulations relevant to the Syndicate in this regard

to be those arising from the Financial Conduct Authority (FCA), the Prudential Regulation

Authority (PRA), Lloyd’s of London and the Insurance Accounts Directive (Lloyd’s

Syndicates and Aggregate Accounts) Regulations 2008, and the financial reporting

framework (UK GAAP).

• The Syndicate operates in the insurance industry which is a highly regulated environment.

As such the Senior Statutory Auditor considered the experience and expertise of the

engagement team to ensure that the team has the appropriate competence and

capabilities to perform the audit.

• We designed our audit procedures to ensure the audit team considered whether there were

any indications of non-compliance by the Syndicate with those laws and regulations. These

procedures included, but were not limited to:

o agreement of the Syndicate Annual Accounts disclosures to underlying supporting

documentation;

o enquiries of management and review of minutes of Board, committee and

management meetings throughout the period;

o understanding the Syndicate’s policies and procedures in monitoring compliance

with laws and regulations;

o inspection of correspondence with Lloyd’s of London, the PRA and FCA; and

o reviewing compliance reports and internal audit reports relating to the Syndicate.

Independent auditor’s report continued

• We also identified possible risks of material misstatement of the Syndicate Annual

Accounts due to fraud; in particular:

o We considered that there is a rebuttable presumption that there is a significant

fraud risk over revenue recognition. We did not consider fraud over the accuracy

of revenue to be a significant risk for transactions that have been processed during

the period as the segregation of duties between the Syndicate’s and the Managing

Agent’s teams adequately mitigated this risk. However, we considered that there

was a potential for fraud risk over the accuracy and completeness of the estimate

for pipeline premiums at the year-end as this was a key accounting estimate. We

performed substantive testing of income recognised, including the estimated

pipeline premiums. These procedures included an examination of the calculations

of the estimated pipeline premiums and related reinsurance and a review of income

declared by bordereaux as well as engaging in discussions with the Syndicate to

confirm that the information provided to the Managing Agent was complete and

accurate.

o We considered that there was potential for management bias in the reporting of

events and transactions in the Syndicate Annual Accounts relating to the valuation

of technical provisions and the calculation of the reinsurer’s share of technical

provisions. To address this, we involved actuarial specialists to assist us in

challenging the assumptions and judgements made by management when auditing

those significant accounting estimates.

o As in all of our audits, we addressed the risk of fraud arising from management

override of controls by performing audit procedures which included, but were not

limited to, the testing of journals, reviewing accounting estimates for evidence of

bias and evaluating the business rationale of any significant transactions that were

unusual or outside the normal course of business.

Because of the inherent limitations of an audit, there is a risk that we will not detect all

irregularities, including those leading to a material misstatement in the Syndicate Annual

Accounts or non-compliance with laws and regulations. This risk increases the more that

compliance with a law or regulation is removed from the events and transactions reflected in

the Syndicate Annual Accounts, as we will be less likely to become aware of instances of non-

compliance. This risk is also greater regarding irregularities occurring due to fraud rather than

error, as fraud involves intentional concealment, forgery, conclusion, omission or

misrepresentation.

A further description of our responsibilities for the audit of the Syndicate Annual Accounts is

located on the Financial Reporting Council’s website at:

www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Independent auditor’s report continued

Use of our report

This report is made solely to the Syndicate’s members, as a body, in accordance with Part 2

of the Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations

2008. Our audit work has been undertaken so that we might state to the Syndicate’s members

those matters we are required to state to them in an auditor’s report and for no other purpose.

To the fullest extent permitted by law, we do not accept or assume responsibility to anyone,

other than the Syndicate and the Syndicate's members as a body, for our audit work, for this

report, or for the opinions we have formed.

Satyajeet Beekarry

(Senior Statutory Auditor) 15 Westferry Circus

For and on behalf of PKF Littlejohn LLP Canary Wharf

Statutory Auditor London E14 4HD

February 2026

Statement of profit or loss and other comprehensive income

Technical account – general business

For the year ended 31 December 2025

Notes

2025

£’000

2024

£’000

Gross premiums written

203,640

163,404

Outward reinsurance premiums

(50,656)

(64,409)

Premiums written, net of reinsurance

152,984

98,995

Changes in unearned premium

Change in the gross provision for unearned premiums

(23,209)

(33,463)

Change in the provision for unearned premiums

reinsurers’ share

(5,563)

6,738

Net change in provisions for unearned premiums

(28,772)

(26,725)

Earned premiums, net of reinsurance

124,212

72,270

Allocated investment return transferred from the

non-technical account

1,111

1,105

Other technical income, net of reinsurance

Claims paid

Gross amount

(36,194)

(22,111)

Reinsurers’ share

14,009

9,380

Net claims paid

(22,185)

(12,731)

Changes in the provision for claims

Gross amount

(62,158)

(39,812)

Reinsurers’ share

18,385

15,499

Net change in provisions for claims

(43,773)

(24,313)

Claims incurred, net of reinsurance

(65,958)

(37,044)

Net operating expenses

(64,038)

(37,174)

Balance on the technical account – general

business

(4,673)

(843)

All the amounts above are in respect of continuing operations.

The notes on pages 20 to 56 form part of these financial statements.

Statement of profit or loss and other comprehensive income continued

Non-technical account – general business

For the year ended 31 December 2025

	Notes	2025 £’000	2024 £’000
Balance on the technical account – general business		(4,673)	(843)
Investment income		1,002	1,105
Realised gains/(losses) on investments		-	-
Unrealised gains on investments		109	-
Investment expenses and charges		-	-
Total investment return	10	1,111	1,105
Allocated investment return transferred to the general business technical account		(1,111)	(1,105)
Loss on foreign exchange		(3,431)	(1,012)
Loss for the financial year		(8,104)	(1,855)
Other comprehensive income – currency translation gains/(losses)		-	-
Total comprehensive income/(loss) for the financial year		(8,104)	(1,855)

All the amounts above are in respect of continuing operations.

The notes on pages 20 to 56 form part of these financial statements.

Statement of financial position

As at 31 December 2025

	Notes	2025 £’000	2024 £’000
Assets
Investments
Financial investments	11	40,901	26,862
Deposits with ceding undertakings		-	-
		40,901	26,862
Reinsurers' share of technical provisions
Provision for unearned premiums	5	29,113	33,591
Claims outstanding	5	50,626	31,635
		79,739	65,226
Debtors
Debtors arising out of direct insurance operations	12	39,821	32,865
Debtors arising out of reinsurance operations	13	32,244	26,087
Other debtors	14	8,111	5,039
		80,176	63,991
Other assets
Cash at bank and in hand	18	20,029	4,228
Other		22,091	8,466
		42,120	12,694
Prepayments and accrued income
Deferred acquisition costs	5	46,379	37,994
Other prepayments and accrued income		8,842	5,656
		55,221	43,650
Total assets		298,157	212,423

The notes on pages 20 to 56 form part of these financial statements.

Statement of financial position continued

As at 31 December 2025
	Notes	2025 £’000	2024 £’000
Members’ balance and liabilities
Capital and reserves
Members’ balances		(19,065)	(8,203)
Total Capitals and Reserves		(19,065)	(8,203)
Technical provisions
Provision for unearned premiums	5	110,433	84,275
Claims outstanding	5	138,861	75,447
		249,294	159,722
Creditors
Creditors arising out of direct insurance operations	15	206	2,613
Creditors arising out of reinsurance operations	16	49,721	38,325
Amounts owed to credit institutions	18	2,023	2,596
Other creditors including taxation and social security	17	-	-
		51,950	43,534
Accruals and deferred income		15,978	17,370
Total liabilities		317,222	220,626
Total liabilities, capital and reserves		298,157	212,423

The notes on pages 20 to 56 form part of these financial statements.

The financial statements on pages 14 to 19 were approved by Board of Directors on 17

February 2026 and were signed on its behalf by:

S B Logue

Director

February 2026

Statement of changes in Members' balances

For the year ended 31 December 2025

2025

£’000

2024

£’000

Members’ balances brought forward at 1 January

(8,203)

(3,669)

Total comprehensive loss for the year

(8,104)

(1,855)

Payments of profit to members’ personal reserve funds

(2,707)

(2,677)

Losses collected on closure of underwriting year

Cash calls on open underwriting years

Members agent fees

(51)

(2)

Net movement on Funds In Syndicate

Other

Members’ balances carried forward at 31 December

(19,065)

(8,203)

Statement of cash flows

For the year ended 31 December 2025

Notes

Year ended

31 December

2025

£’000

Year ended

31 December

2024

£’000

Cash flows from operating activities

Loss for the financial year

(8,104)

(1,855)

Increase in gross technical provisions

89,572

67,579

Increase in reinsurers’ share of gross

technical provisions

(14,513)

(19,815)

Increase in debtors

(16,185)

(25,192)

Increase in creditors

8,989

7,323

Increase/(decrease) in deposits received from

reinsurers

Movement in other assets/liabilities

(26,588)

(11,491)

Foreign exchange

(55)

1,219

Investment return

(1,111)

(1,105)

Net cash flows from operating activities

32,005

16,663

Cash flows from investing activities

Purchase of equity and debt instruments

Sale of equity and debt instruments

Investment income received

1,111

1,105

Other

Net cash flows from investing activities

1,111

1,105

Cash flows from financing activities

Distribution of profit

(2,707)

(2,677)

Collection of losses on closed underwriting

year

Cash calls on open underwriting years

Net movement of Funds In Syndicate

Other

(51)

(2)

Net cash flows from financing activities

(2,758)

(2,679)

Net increase/(decrease) in cash and cash

equivalents

30,358

15,089

Cash and cash equivalents at the beginning of

the year

28,494

14,624

Foreign exchange on cash and cash

equivalents

(1,219)

Cash and cash equivalents at the end of

the year

58,907

28,494

Notes to the financial statements

1. Basis of preparation

Statement of compliance

The financial statements have been prepared in accordance with The Insurance Accounts

Directive (Lloyd's Syndicate and Aggregate Accounts) Regulations 2008, applicable

Accounting Standards in the United Kingdom and the Republic of Ireland, including Financial

Reporting Standard 102 (FRS 102), Financial Reporting Standard 103 (FRS 103) in relation

to insurance contracts, and the Lloyd’s Syndicate Accounts Instructions Version 3.1 as

modified by the Frequently Asked Questions Version 1.1 issued by Lloyd’s.

The financial statements have been prepared on the historical cost basis, with the exception

of financial assets which are measured at fair value through the profit and loss account.

The financial statements are presented in GBP, the functional currency of the Syndicate is

GBP. All amounts have been rounded to the nearest thousand, unless otherwise indicated.

Going concern

The Directors of the Managing Agent have assessed the Syndicate’s ability to continue as a

going concern. As part of this assessment, the Directors have considered cash forecasts, the

availability of financial resources, consistency of loss ratios, credit worthiness of reinsurers,

capital support for the existing underwriting years, business plans for future underwriting years

and availability of future capital support. Following this assessment, the Directors consider it

appropriate to adopt the going concern basis in preparing the annual report and financial

statements.

2. Critical accounting estimates and judgements

In preparing these financial statements, the Directors of the Managing Agent have made

judgements, estimates and assumptions that affect the application of the Syndicate’s

accounting policies and the reported amounts of assets, liabilities, income and expenses.

The following critical accounting estimates have been made in applying the Syndicate’s

accounting policies:

• Valuation of claims reserves

The measurement of the provision for claims outstanding involves judgements and

assumptions about the future that have a significant effect on the value recognised in

the financial statements.

The provision for claims outstanding comprises the estimated cost of settling all claims

incurred but unpaid at the balance sheet date, whether reported or not. This is a

judgemental and complex area due to the subjectivity inherent in estimating the impact

of claims events that have occurred but for which the eventual outcome remains

uncertain.

Critical accounting estimates and judgements

Case estimates are generally set by skilled claims technicians applying their

experience and knowledge to the circumstances of individual claims. Critical

judgement is applied when estimating the value of amounts that should be provided for

claims that have been incurred at the reporting date but have not yet been reported

(IBNR) to the Syndicate. This is a source of significant estimation uncertainty.

The ultimate cost of outstanding claims is estimated using a range of techniques

including actuarial and statistical projections, benchmarking, case by case review and

judgement. Statistical techniques assume that past claims development experience

can be used as a basis to project ultimate claims costs. Typical methods employed

include, but are not limited to, the chain ladder method and the Bornhuetter-Ferguson

method, whilst plan and pricing loss ratios are also considered.

The reserving process will disaggregate the insured risks into reserving classes – these

are collections of risks of a similar profile. Each reserving class will be assessed

separately, and corresponding claims development patterns will be selected as bases

against which to forecast expected claims. Judgement is used to assess the extent to

which past trends may not apply in the future. When selecting historic data to use for

claims forecasting purposes, the suitability and reliability of the dataset is considered.

A dataset that most closely resembles the expected risk profile of a given reserving

class will be selected. The benchmark data provided by Lloyd’s is generally used as

reserving development patterns, but these can be substituted by or blended with

additional data, providing that this additional data has an established track record and

is relevant.

Whilst the Directors consider that the claims reserves are fairly stated based on the

information currently available to them, the ultimate liability will vary as a result of

subsequent information and events. Sensitivities relating to this critical judgement have

been assessed in further detail in note 23.

• Estimated premium income (“EPI”)

For the majority of assumed (inwards) reinsurance policies, EPI is initially used as the

basis for reporting gross premiums written. EPI is a measure of expected premium

income over the life of a policy. These estimates, typically supplied by the cedent, are

judgemental and could result in misstatements of revenue recorded in the financial

statements.

• Pipeline premium

Pipeline premium relates to premium that has likely been written as at the report date,

but due to reporting delays through the distribution chain, the premium has not yet

been reported to the Syndicate. Reasons for the reporting delay typically revolve

around a natural lag in receiving the premium bordereaux from brokers or coverholders

– bordereaux are generally produced monthly or quarterly in arrears. Pipeline premium

is included within Gross Premiums Written on the statement of profit of loss.

There is significant uncertainty when estimating pipeline premium. Estimates are

frequently based upon information provided by the business producers, or sometimes

a statistical approach is adopted based on past experience. Given that pipeline

premium relates to hypothetical policies that have been bound just before the balance

sheet date, the vast majority of this premium is usually unearned.

3. Significant accounting policies

The following principal accounting policies have been applied consistently in dealing with items

which are considered material in relation to the Syndicate’s financial statements.

Gross premiums

Gross written premiums comprise the total premiums receivable for the whole period of cover

provided by the contracts entered into during the reporting period, regardless of whether these

are wholly due for payment in the reporting period, together with any adjustments arising in

the reporting period to such premiums receivable in respect of business written in prior

reporting periods. They are recognised on the date on which the policy commences. This is

applicable to both direct premium and assured (inwards reinsurance) premium. Gross written

premiums are stated gross of brokerage payable to intermediaries, and exclude taxes and

duties levied on the policyholder.

Estimated premium income in respect of facility contracts, for example binding authorities and

lines slips, are deemed to be written in a manner that reflects the expected profile of the

underlying business which has been written.

Ceded reinsurance premiums

Reinsurance written premiums comprise the total premiums payable for the whole cover

provided by contracts entered into the period, including portfolio premiums payable, and are

recognised on the date on which the policy incepts. Premiums include any adjustments arising

in the accounting period in respect of reinsurance contracts incepting in prior accounting

periods. They are recognised on the date on which the policy commences.

Provisions for unearned premiums

Unearned premiums are those proportions of premiums written up to the reporting date that

relate to periods of risk after the reporting date. In respect of general insurance business,

written premiums are recognised as earned over the period of the policy on a time

apportionment basis having regard where appropriate, to the incidence of risk. The proportion

attributable to subsequent periods is deferred as a provision for unearned premiums.

Unearned reinsurance premiums are those proportions of ceded premiums written up to the

reporting date that relate to periods of risk after the reporting date. Ceded reinsurance

premiums are earned on the same basis as the inwards business being protected.

Claims incurred

Claims incurred comprise claims and claims handling expenses (both internal and external)

paid in the year and the movement in provision for outstanding claims and settlement

expenses processed in the year. The provision for claims comprises amounts set aside for

claims notified and claims incurred but not yet reported (IBNR). The Syndicate does not

discount its liability for outstanding claims.

The amount included in respect of IBNR is based on statistical techniques of estimation applied

by actuaries. These techniques generally involve projecting from past experience of the

development of claims over time to form a view of the likely ultimate claims to be experienced,

having regard to variations in the business accepted and the underlying terms and conditions.

The provision for claims also includes amounts in respect of internal and external claims

handling costs. For the most recent years, where a high degree of volatility arises from

projections, estimates may be based in part on output from rating and other models of the

business accepted and assessments of underwriting conditions. An element of IBNR can also

relate to specific large losses.

Significant accounting policies continued

The reinsurers’ share of provisions for claims is based on calculated amounts of outstanding

claims and projections for IBNR, net of estimated irrecoverable amounts, having regard to the

reinsurance programme in place for the class of business and the claims experience for the

year. The Syndicate uses a number of statistical techniques to assist in making these

estimates where relevant.

Accordingly, the two most critical assumptions as regards claims provisions are that the past

is a reasonable predictor of the likely level of claims development and that the rating and other

models used for current business are fair reflections of the likely level of ultimate claims to be

incurred.

The Directors consider that the provisions for gross claims and related reinsurance recoveries

are fairly stated on the basis of the information currently available to them. However, ultimate

liability will vary as a result of subsequent information and events and this may result in

significant adjustments to the amounts provided.

Adjustments to the amounts of claims provisions established in prior years are reflected in the

financial statements for the period in which the adjustments are made. The methods used,

and the estimates made, are reviewed regularly.

Unexpired risks

A provision for unexpired risks is made where claims and related expenses are likely to arise

after the end of the financial period in respect of contracts concluded before that date, are

expected to exceed the unearned premiums and premiums receivable under these contracts,

after the deduction of any acquisition costs deferred.

The provision for unexpired risks is calculated separately by reference to classes of business

which are managed together.

As at 31 December 2025, the Syndicate had a nil net unexpired risk provision, (2024: nil).

Reinsurance assets

The Syndicate cedes insurance risk in the normal course of business. Reinsurance assets

represent balances due from reinsurance companies. Amounts recoverable from reinsurers

are estimated in a manner consistent with the outstanding claims provision including IBNR or

settled claims associated with the reinsurer's policies and are in accordance with the related

reinsurance contract.

Reinsurance assets are reviewed for impairment at each reporting date, or more frequently if

an indication of impairment arises during the reporting year. Impairment occurs when there is

objective evidence as a result of an event that occurred after initial recognition of the

reinsurance asset that the Syndicate may not receive all outstanding amounts due under the

terms of the contract and the event has a reliably measurable impact on the amounts that the

Syndicate will receive from the reinsurer. The impairment loss is recorded in the statement of

profit or loss.

Gains or losses on buying reinsurance are recognised in the statement of profit or loss

immediately at the date of purchase and are not amortised.

Ceded reinsurance arrangements do not relieve the Syndicate from its obligations to

policyholders.

Significant accounting policies continued

Acquisition costs

Acquisition costs comprise costs arising from the conclusion of insurance contracts, such as

intermediary brokerage and commissions. It is not the Syndicate’s policy to reallocate a portion

of indirect costs, such as the advertising costs or the administrative expenses connected with

the processing of proposals and the issuing of policies, to acquisition costs. However, it is

within the Syndicate’s policy to reallocate the Syndicate Management Fees to acquisition costs

and earned in line with premium.

The deferred acquisition cost asset represents the proportion of acquisition costs

corresponding to the proportion of gross premiums written that is unearned at the balance

sheet date. Deferred acquisition costs are amortised over the period in which the related

premiums are earned.

Foreign currencies

Transactions denominated in currencies other than the functional currency are initially

recorded in the functional currency at the exchange rate ruling at the date of the transactions.

Monetary assets and liabilities (which include all assets and liabilities arising from insurance

contracts including unearned premiums and deferred acquisition costs) denominated in foreign

currencies are retranslated into the functional currency at the exchange rate ruling on the

reporting date.

Foreign exchange differences are recorded in the non-technical account.

The following currency exchange rates have been used for principal foreign currency

transactions:

2025

2024

Start of

Period Rate

End of

Period Rate

Average

Rate

Start of

Period Rate

End of

Period Rate

Average

Rate

GBP

1.00

USD

1.25

1.35

1.32

1.27

1.25

1.28

CAD

1.80

1.84

1.68

1.80

1.75

EUR

1.21

1.15

1.17

1.15

1.21

1.18

AUD

2.02

2.04

1.87

2.02

1.94

JPY

196.90

210.82

197.23

179.75

196.90

193.53

Significant accounting policies continued

Financial assets and liabilities

In applying FRS 102, the Syndicate has chosen to apply the recognition and measurement

provisions of IAS 39 Financial Instruments: Recognition and Measurement (as adopted for use

in the UK).

The accounting classification of financial assets and liabilities determines the way in which

they are measured and changes in those values are presented in the statement of profit or

loss and other comprehensive income. Financial assets and liabilities are classified on their

initial recognition.

The initial classification of a financial instrument shall take into account contractual terms

including those relating to future variations. Once the classification of a financial instrument is

determined at initial recognition, reassessment is only required subsequently when there has

been a modification of contractual terms that is relevant to an assessment of the classification.

Financial assets and financial liabilities at fair value through profit and loss comprise financial

assets and financial liabilities held for trading and those designated as such on initial

recognition. Investments in shares and other variable yield securities, units in unit trusts, and

debt and other fixed income securities are designated as at fair value through profit or loss on

initial recognition, as they are managed on a fair value basis in accordance with the

Syndicate’s investment strategy. Other financial assets, principally certain debt and other fixed

income securities are classified as available for sale.

Deposits with credit institutions, debtors, and accrued interest are classified as loans and

receivables.

Financial instruments are recognised when the Syndicate becomes a party to the contractual

provisions of the instrument. Financial assets are derecognised if the Syndicate’s contractual

rights to the cash flows from the financial assets expire or if the Syndicate transfers the

financial asset to another party without retaining control of substantially all risks and rewards

of the asset. A financial liability is derecognised when its contractual obligations are

discharged, cancelled or expired.

Regular way purchases and sales of financial assets are recognised and derecognised, as

applicable, on the trade date, i.e., the date that the Syndicate commits itself to purchase or sell

the asset.

A financial asset or financial liability is measured initially at fair value plus, for a financial asset

or financial liability not at fair value through profit or loss, transaction costs that are directly

attributable to its acquisition or issue.

Financial assets at fair value through profit or loss are measured at fair value with fair value

changes recognised immediately in profit or loss. Net gains or net losses on financial assets

measured at fair value through profit or loss includes foreign exchange gains/losses arising on

their translation to the functional currency but excludes interest and dividend income.

Loans and receivables and non-derivative financial liabilities are measured at amortised cost

using the effective interest method.

Significant accounting policies continued

Objective evidence that financial assets are impaired includes observable data that comes to

the attention of the Syndicate about any significant financial difficulty of the issuer, or significant

changes in the technological, market, economic or legal environment in which the issuer

operates.

Impairment losses on available for sale financial assets are recognised by reclassifying the

losses accumulated in other comprehensive income to profit or loss. The net cumulative loss

that is reclassified from other comprehensive income to profit or loss is the difference between

the acquisition cost, net of any principal repayment, and the current fair value, less any

impairment loss recognised previously in profit or loss. If, in a subsequent period, the fair value

of an impaired available for sale debt security increases and the increase can be related

objectively to an event occurring after the impairment loss was recognised, the impairment

loss is reversed through profit or loss. Otherwise it is reversed through the statement of

comprehensive income.

Financial assets and financial liabilities are offset, and the net amount presented in the balance

sheet when, and only when, the Syndicate currently has a legal right to set off the amounts

and intends either to settle on a net basis or to realise the asset and settle the liability

simultaneously.

Investment return

Investment return comprises investment income and movements in unrealised gains and

losses on financial instruments at fair value through profit or loss, less investment management

expenses, interest expense, realised losses and impairment losses. Investment income

comprises interest income, dividends receivable and realised investment gains.

For the purpose of separately presenting investment income and unrealised gains and losses

for financial assets at fair value through profit or loss, interest income is calculated using the

effective interest method excluding transaction costs that are expensed when incurred. For

investments at fair value through profit or loss, realised gains and losses represent the

difference between the net proceeds on disposal and the purchase price.

Unrealised investment gains and losses represent the difference between the fair value at the

balance sheet date and the fair value at the previous balance sheet date, or purchase price if

acquired during the year. Movements in unrealised investment gains and losses comprise the

increase/decrease in the reporting period in the value of the investments held at the reporting

date and the reversal of unrealised investment gains and losses recognised in earlier reporting

periods in respect of investment disposals of the current period.

Investment return is initially recorded in the non-technical account. The return is transferred in

full to the general business technical account to reflect the investment return on funds

supporting underwriting business.

Cash and cash equivalents

Cash and cash equivalents comprise cash balances and call deposits with maturities of three

months or less from the acquisition date that are subject to an insignificant risk of changes in

fair value and are used by the Syndicate in the management of its short-term commitments.

Significant accounting policies continued

Bank overdrafts that are repayable on demand and form an integral part of the Syndicate’s

cash management are included as a component of cash and cash equivalents for the purpose

of the statement of cash flows.

Taxation

Under Schedule 19 of the Finance Act 1993 managing agents are not required to deduct basic

rate income tax from trading income. In addition, all UK basic rate income tax (currently at

20%) deducted from Syndicate investment income is recoverable by managing agents and

consequently the distribution made to members or their members’ agents is gross of tax.

Capital appreciation falls within trading income and is also distributed gross of tax.

No provision has been made for any other overseas tax payable by members on underwriting

results or investment earnings. Any payments on account made by the Syndicate during the

year have been included in the balance sheet under the heading ‘other debtors’.

Profit commission

Profit commission is charged according to the terms agreed with each capital provider in the

relevant Deed of Variation to the Standard Managing Agency Agreement. Such commission

is recognised when the year of account becomes profitable but does not become payable until

after the appropriate year of account closes normally at 36 months.

Operating expenses

Where expenses are incurred by the Managing Agent for the administration of managed

syndicates, these expenses are apportioned using various methods depending on the type of

expense. Expenses which are incurred jointly are apportioned between the Managing Agent

and the Syndicate depending on the amount of work performed, resources used, and volume

of business transacted.

Reinsurers’ commission and profit participation

Reinsurers’ commissions and profit participations, which include reinsurance profit

commission and overriding commission, are treated as a contribution to expenses.

Debtors and creditors

Insurance debtors and creditors include amounts due to and from agents, brokers and

insurance contract holders. These are classified as debt instruments as they are non-derivative

financial assets with fixed or determinable payments that are not quoted on an active market.

Insurance debtors are measured at amortised cost less any provision for impairments.

Insurance creditors are stated at amortised cost. The Syndicate does not have any debtors

directly with policyholders, all transactions occur via an intermediary.

Where permitted under UK GAAP accounting standards, insurance creditors are netted off

against insurance debtors where the legally enforceable right to offset exists.

Reinsurance debtors and creditors include amounts due to and from reinsurers. These are

classified as debt instruments as they are non-derivative financial assets with fixed or

determinable payments that are not quoted on an active market. Reinsurance debtors are

measured at amortised cost less any provision for impairments. Reinsurance creditors are

stated at amortised cost. Reinsurance debtor principally relates to claims recoveries where the

underlying claim has been settled and the recovery is due. Reinsurance creditors are primarily

premiums payable for reinsurance contracts and are recognised as an expense when due.

4. Analysis of underwriting result

An analysis of the underwriting result before investment return is presented in the table below:

2025	Gross premiums written	Gross premiums earned	Gross claims incurred	Gross operating expenses	Reinsurance balance	Underwriting Result
	£’000	£’000	£’000	£‘000	£’000	£’000
Direct insurance
Accident and Health	3,866	3,544	(2,317)	(1,880)	(130)	(783)
Motor (third party liability)	189	447	(165)	(131)	(48)	103
Marine, Aviation and Transport	(247)	308	(232)	(147)	-	(71)
Fire and other damage to property	45,120	42,844	(24,878)	(18,142)	(427)	(603)
Credit and suretyship	5,667	3,769	(1,143)	(2,447)	(50)	129
Legal expenses	-	-	-	-	-	-
Assistance	-	-	-	-	-	-
Third party liability	108,032	88,773	(46,556)	(45,211)	(2,474)	(5,468)
Miscellaneous	-	-	-	-	-	-
Total Direct	162,627	139,685	(75,291)	(67,958)	(3,129)	(6,693)
Reinsurance acceptances	41,013	40,746	(23,061)	(14,236)	(2,540)	909
Total	203,640	180,431	(98,352)	(82,194)	(5,669)	(5,784)

The below is an additional disclosure for Lloyd’s reporting purposes and is included to facilitate

the classification of the above segments into the Lloyd’s aggregate classes of business:

2025	Gross premiums written	Gross premiums earned	Gross claims incurred	Gross operating expenses	Reinsurance balance	Underwriting Result
Additional analysis	£’000	£’000	£’000	£‘000	£’000	£’000
Fire and damage to property of
which is:
Specialties	3,497	2,434	(480)	(872)	(68)	1,013
Energy	-	-	-	-	-	-
Third party liability of which is:
Energy	-	-	-	-	-	-

Analysis of underwriting result continued

2024	Gross written premiums	Gross premiums earned	Gross claims incurred	Gross operating expenses Reinsurance balance		Underwriting Result
	£’000	£’000	£’000	£‘000	£’000	£’000
Direct insurance
Accident and Health	2,811	1,416	(682)	(380)	(108)	246
Motor (third party liability)	595	318	(137)	(78)	-	103
Marine, Aviation and Transport	513	237	(80)	(67)	-	90
Fire and other damage to property	43,288	36,674	(20,158)	(15,387)	(4,473)	(3,344)
Credit and suretyship	-	-	-	-	-	-
Legal expenses	-	-	-	-	-	-
Assistance	-	-	-	-	-	-
Third party liability	82,982	64,467	(24,996)	(28,029)	(8,802)	2,640
Total Direct	130,189	103,112	(46,053)	(43,941)	(13,383)	(265)
Reinsurance acceptances	33,215	26,829	(15,870)	(10,750)	(1,892)	(1,683)
Total	163,404	129,941	(61,923)	(54,691)	(15,275)	(1,948)

The below is an additional disclosure for Lloyd’s reporting purposes and is included to facilitate

the classification of the above segments into the Lloyd’s aggregate classes of business:

2024	Gross premiums written	Gross premiums earned	Gross claims incurred	Gross operating expenses	Reinsurance balance	Underwriting Result
Additional analysis	£’000	£’000	£’000	£‘000	£’000	£’000
Fire and damage to property of which is:
Specialties	425	123	(34)	(31)	(5)	52
Energy	-	-	-	-	-	-
Third party liability of which is:
Energy	-	-	-	-	-	-

Analysis of underwriting result continued

The gross premiums written for direct insurance by underwriting location is presented in the

table below:

	2025	2024
	£’000	£’000
United Kingdom	162,627	130,189
European Union Member States	-	-
US	-	-
Rest of the world	-	-
Total gross premiums written	162,627	130,189

No gains or losses were recognised in profit or loss during the year on buying reinsurance

(2024: nil).

5. Technical provisions

2025

Gross

provisions

£’000

Reinsurance

assets

£’000

Net

£’000

Claims outstanding

Balance at 1 January

75,447

(31,635)

43,812

Claims paid during the year

(36,194)

14,009

(22,185)

Expected cost of current year claims

102,081

(34,332)

67,749

Change in estimates of prior year provisions

(3,729)

1,938

(1,791)

Foreign exchange movements

1,256

(606)

650

Balance at 31 December

138,861

(50,626)

88,235

Unearned premiums

Balance at 1 January

84,275

(33,591)

50,684

Premiums written during the year

203,640

(50,656)

152,984

Premiums earned during the year

(180,431)

56,219

(124,212)

Foreign exchange movements

2,949

(1,085)

1,864

Balance at 31 December

110,433

(29,113)

81,320

Deferred acquisition costs
Balance at 1 January	37,994	(11,780)	26,214
Incurred deferred acquisition costs	76,265	(13,381)	62,884
Amortised deferred acquisition costs	(67,761)	18,156	(49,605)
Foreign exchange movements	(119)	(426)	(545)
Balance at 31 December	46,379	(7,431)	38,948

2024

Gross

provisions

£’000

Reinsurance

assets

£’000

Net

£’000

Claims outstanding

Balance at 1 January

38,860

(17,483)

21,377

Claims paid during the year

(22,111)

9,380

(12,731)

Expected cost of current year claims

62,121

(25,723)

36,398

Change in estimates of prior year provisions

(198)

844

646

Foreign exchange movements

(3,225)

1,347

(1,878)

Balance at 31 December

75,447

(31,635)

43,812

Unearned premiums

Balance at 1 January

53,283

(27,928)

25,355

Premiums written during the year

163,404

(64,409)

98,995

Premiums earned during the year

(129,941)

57,671

(72,270)

Foreign exchange movements

(2,471)

1,075

(1,396)

Balance at 31 December

84,275

(33,591)

50,684

Deferred acquisition costs
Balance at 1 January	25,721	(11,536)	14,185
Incurred deferred acquisition costs	58,151	(5,054)	53,097
Amortised deferred acquisition costs	(45,413)	-	(45,413)
Foreign exchange movements	(465)	4,810	4,345
Balance at 31 December	37,994	(11,780)	26,214

6. Net operating expenses

	2025	2024
	£’000	£’000
Acquisition costs	76,265	58,151
Change in deferred acquisition costs	(8,504)	(12,738)
Reinsurance commissions and profit participation	(18,156)	(17,517)
Administration expenses	11,568	6,609
Members’ standard personal expenses	2,865	2,669
Net operating expenses	64,038	37,174

Total commissions for direct insurance business for the year amounted to:

	2025	2024
	£’000	£’000
Total commission for direct insurance business	30,327	37,876

7. Auditor’s remuneration

	2025	2024
	£’000	£’000
Fees payable to the Syndicate’s auditor for the audit of these financial statements	148	112
Fees payable to the Syndicate’s auditor and its associates in respect of other services pursuant to legislation	62	84
Total	210	196

Auditors’ remuneration is included as part of administrative expenses in note 6.

8. Key management personnel compensation

The active underwriter received the following aggregate remuneration charged to the

Syndicate:

	2025	2024
	£’000	£’000
Emoluments	415	283

The aggregate emoluments of the Directors and staff of the Asta Group are charged to

companies of the Asta Group in accordance with the proportion of their time associated with

each company. Further disclosures regarding Directors’ emoluments are provided in the

financial statements of Asta Managing Agency Ltd.

No emoluments of the Directors of Asta Managing Agency Ltd were charged directly to the

Syndicate. No other compensation was payable to key management personnel.

9. Staff numbers and costs

All staff are employed by Carbon Underwriting Ltd. The average number of persons employed

by the service company, but working for the Syndicate during the year, analysed by category,

was as follows:

	Number of employees
	2025	2024
Administration and finance	45	44
Underwriting	23	23
Claims	5	3
Investments	-	-
Total	73	70

The following amounts were recharged by the service company to the Syndicate in respect of

payroll costs:

	Payroll costs
	2025	2024
	£’000	£’000
Wages and salaries	8,883	7,585
Social security costs	1,205	911
Other pension costs	707	601
Other benefits and recruitment	517	464
Total	11,312	9,561

10. Investment return

	2025	2024
From financial assets designated at fair value through profit or loss	£’000	£’000
Interest and similar income	228	197
Dividend income	-	-
Interest on cash at bank	774	908
Gains on the realisation of investments	-	-
Losses on the realisation of investments	-	-
Unrealised gains on investments	109	-
Unrealised losses on investments	-	-
Investment management expenses	-	-
Total investment return	1,111	1,105

11. Financial investments

31 December 2025

Carrying

value

Cost

£’000

Shares and other variable yield securities and units in unit trusts

40,901

Debt securities and other fixed income securities

Loans and deposits with credit institutions

Syndicate loans to central fund

Other investments

Total financial investments

40,901

31 December 2024	Carrying value	Cost
	£’000	£’000
Shares and other variable yield securities and units in unit trusts	26,862	26,862
Debt securities and other fixed income securities	-	-
Loans and deposits with credit institutions	-	-
Syndicate loans to central fund	-	-
Other investments	-	-
Total financial investments	26,862	26,862

The amounts ascribable to listed investments is nil (prior year: nil).

Financial investments continued

The table below presents an analysis of financial investments by their measurement

classification:

	2025	2024
	£’000	£’000
Financial assets measured at fair value through profit or loss	40,901	26,862
Financial assets measured at fair value as available for sale	-	-
Financial assets measured at amortised cost	-	-
Total financial investments	40,901	26,862

The Syndicate classifies its financial instruments held at fair value in its balance sheet using a

fair value hierarchy based on the inputs used in the valuation techniques as follows:

• Level 1 – financial assets that are measured by reference to published quotes in an

active market. A financial instrument is regarded as quoted in an active market if quoted

prices are readily and regularly available from an exchange, dealer, broker, industry

group, pricing service or regulatory agency and those prices represent actual and

regularly occurring market transactions on an arm’s length basis.

• Level 2 – financial assets measured using a valuation technique based on assumptions

that are supported by prices from observable current market transactions. For

example, assets for which pricing is obtained via pricing services but where prices have

not been determined in an active market, financial assets with fair values based on

broker quotes, investments in private equity funds with fair values obtained via fund

managers and assets that are valued using the Syndicate’s own models whereby the

significant inputs into the assumptions are market observable.

• Level 3 – financial assets measured using a valuation technique (model) based on

assumptions that are neither supported by prices from observable current market

transactions in the same instrument nor are they based on available market data.

Therefore, unobservable inputs reflect the Syndicate's own assumptions about the

assumptions that market participants would use in pricing the asset or liability (including

assumptions about risk). These inputs are developed based on the best information

available, which might include the Syndicate’s own data.

Financial investments continued

The following table shows financial investments recorded at fair value analysed between the

three levels in the fair value hierarchy.

2025

£’000

Level 1

Level 2

Level 3

Assets

held at

amortised

cost

Total

Shares and other variable yield

securities and units in unit trusts

9,814

31,087

40,901

Debt securities and other fixed

income securities

Loans and deposits with credit

institutions

Syndicate loans to central fund

Other investments

Total

9,814

31,087

40,901

2024

£’000

Level 1

Level 2

Level 3

Assets

held at

amortised

cost

Total

Shares and other variable yield

securities and units in unit trusts

26,862

Debt securities and other fixed

income securities

Loans and deposits with credit

institutions

Syndicate loans to central fund

Other investments

Total

26,862

Financial investments continued

Information on the methods and assumptions used to determine fair values for each major

category of financial instrument measured at fair value is provided below.

Debt securities are generally valued using prices provided by external pricing vendors. Pricing

vendors will often determine prices by consolidating prices of recent trades for identical or

similar securities obtained from a panel of market makers into a composite price. The pricing

service may make adjustments for the elapsed time from a trade date to the valuation date to

take into account available market information. Lacking recently reported trades, pricing

vendors will use modelling techniques to determine a security price.

Some government and supranational securities are listed on recognised exchanges and are

generally classified as Level 1 in the fair value hierarchy. Those that are not listed on a

recognised exchange are generally based on composite prices of recent trades in the same

instrument and are generally classified as Level 2 in the fair value hierarchy.

Corporate bonds, including asset backed securities, that are not listed on a recognised

exchange or are traded in an established over the counter market are also valued mainly using

composite prices. Where prices are based on multiple quotes and those quotes are based on

actual recent transactions in the same instrument the securities are classified as Level 2,

otherwise they are classified as Level 3 in the fair value hierarchy.

At the reporting date Level 1 and Level 2 financial assets and liabilities were valued using

valuation techniques based on observable market data. All of the investments categorised as

Level 3 are fair valued based on the inputs to the valuation technique used.

12. Debtors arising out of direct insurance operations

	2025	2024
	£’000	£’000
Due within one year	39,821	32,865
Due after one year	-	-
Total	39,821	32,865

13. Debtors arising out of reinsurance operations

	2025	2024
	£’000	£’000
Due within one year	32,244	26,087
Due after one year	-	-
Total	32,244	26,087

14. Other debtors

	2025	2024
	£’000	£’000
Inter syndicate balances	-	-
Other related party balances (non-syndicate)	-	-
Amounts due from members	-	-
Other	8,111	5,039
Total	8,111	5,039

15. Creditors arising out of direct insurance operations

	2025	2024
	£’000	£’000
Due within one year	206	2,613
Due after one year	-	-
Total	206	2,613

16. Creditors arising out of reinsurance operations

	2025	2024
	£’000	£’000
Due within one year	47,195	38,325
Due after one year	2,526	-
Total	49,721	38,325

17. Other creditors

2025

2024

£’000

Inter syndicate balances

Profit commissions payables

Other related party balances (non-syndicate)

Derivative liabilities

Other liabilities

Total

18. Cash and cash equivalents

2025

2024

£’000

Cash at bank and in hand

20,029

4,228

Deposits with credit institutions

Short term debt instruments presented within other financial

investments

40,901

26,862

Bank overdrafts

(2,023)

(2,596)

Total cash and cash equivalents

58,907

28,494

To improve returns on short term surplus cash the Syndicate utilises Money Market Funds

(MMF). These funds are short duration and remain highly liquid allowing for quick access.

Amounts held in such MMFs are reported as shares and variable yield securities within

investments reflecting the underlying assets within the funds and are treated as cash and cash

equivalents for cash flow purposes.

Deposits with credit institutions with maturities of three months or less that are used by the

Syndicate in the management of its short-term commitments are included in cash and cash

equivalents.

Of the total cash and cash equivalents, the following amount was held in regulated bank

accounts in overseas jurisdictions:

2025

2024

£’000

Total cash and cash equivalents held in regulated accounts in overseas

jurisdictions

6,238

26,796

19. Related parties

Asta provides services and support to the Syndicate in its capacity as Managing Agent. During

the year, Managing Agency fees of £1.4m were charged to the Syndicate (2024: £1.3m). Asta

also recharged £3.1m worth of service charges in the year (2024: £2.8m) and as at 31

December 2025 a cumulative amount of £0.8m is owed to Asta in respect of this service (2024:

£2.0m).

Carbon Underwriting Ltd recharged expenses to the Syndicate during 2025 of £15.8m (2024:

£11.7m).

The Syndicate has recorded an accrual of £0.05m for profit commission (2024: £0.35m)

payable to Asta Managing Agency and Carbon Underwriting Ltd at 50% each.

From time to time, syndicates managed by Asta enter into (re)insurance contracts with one

another. All such transactions are subject to Asta’s internal controls which ensure that all are

compliant with Lloyd’s Related Party Byelaw provisions. All transactions are on an arm’s length

basis.

Asta Capital Ltd, the parent of Asta Managing Agency Ltd, is owned by the Davies Group but

Asta Capital Ltd maintains a level of independence by virtue of separate boards and a separate

governance structure. Other entities within the wider Davies Group provide insurance-related

services to the syndicates under Asta’s management. The provision of these services is

managed by a separate management team distinct from Asta, and these services are provided

at an arm’s length basis.

The ultimate parent company of Asta Managing Agency Ltd is Tennessee Topco Ltd.

20. Disclosure of interests

As at 31 December 2025, Asta was the Managing Agent for the following syndicates on behalf

of third-party capital providers:

• Syndicates 1322, 1609, 1618, 1699, 1892, 1947, 1984, 1985, 1988, 2525, 2689, 3123

and 4747, 1902,

• Syndicates-in-a-Box 1796, 1922, 1966, 2427, 2880, 3456 and 5183.

During 2025, Asta took on management of the following syndicates:

• Syndicate 1618 on 1 January 2025

• Syndicate 1984 on 1 April 2025

• Syndicate 1947 on 1 July 2025

On 1 January 2026, Asta took on management of syndicates 1918, 2126 and 2610.

On 1 January 2026, Asta ceased to be the Managing Agent for Syndicate 1966.

During 2025, Asta ceased to be the Managing Agent for the following syndicates:

• Syndicate 2786 on 17 August 2025

• Syndicate 4242 and Special Purpose Arrangement 1416 on 30 December 2025

The Managing Agency also provides administrative services to syndicates and special

purpose arrangements, also undertaking several ancillary roles for other clients.

The Financial Statements of the Managing Agency can be obtained by application to the

Registered Office (see page 1).

21. Funds at Lloyd's

Every member is required to hold capital at Lloyd's which is held in trust and known as Funds

at Lloyd's (“FAL”). These funds are intended primarily to cover circumstances where Syndicate

assets prove insufficient to meet participating members' underwriting liabilities. The level of

FAL that Lloyd's requires a member to maintain is determined by Lloyd's based on PRA

requirements and resource criteria. FAL has regard to a number of factors including the nature

and amount of risk to be underwritten by the member and the assessment of the reserving risk

in respect of business that has been underwritten. Since FAL is not under the management of

the managing agent, no amount has been shown in these financial statements by way of such

capital resources. However, the managing agent is able to make a call on the members' FAL

to meet liquidity requirements or to settle losses.

22. Off-balance sheet items

At 31 December 2025, the Syndicate had utilised $AUD 23.0m of its letter of credit facility

(2024: $AUD 30.0m). The total facility provided by Barclays is £25.0m for 2025. During the

year, the letter of credit facility provider changed; this was previously provided by Oversea-

Chinese Banking Corporation (OCBC) (2024: $AUD 30m).

23. Risk management

a) Governance framework

The Syndicate's risk and financial management framework aims to protect the Syndicate's

members capital from events that might otherwise prevent the Syndicate from meeting its

policyholder obligations, while maximising the returns to its members. The Directors recognise

the critical importance of having efficient and effective risk management systems in place. Asta

maintains a risk management function for the Syndicate with clear terms of reference from the

Syndicate Board, its committees and sub committees.

Asta supplements this with a clear organisational structure with documented delegated

authorities and responsibilities from the main Asta Managing Agency board to the Syndicate

who perform the underwriting activities. Lastly, the Syndicate policy framework sets its risk

management and control and business conduct standards for operations. Asta reviews and

monitors each policy to ensure compliance with the policy throughout the Syndicate.

The Syndicate Board approves the risk management policies and meets regularly to approve

any commercial, regulatory and organisational requirements of such policies. These policies

define the identification of risk and its interpretation to ensure the appropriate quality and

diversification of assets, align underwriting and reinsurance strategy to the Syndicate goals,

and specify reporting requirements. The Syndicate Board places significant emphasis on the

assessment and documentation of risks and controls, including the articulation of the

Syndicate's risk appetite.

b) Capital management objectives, policies and approach

Capital framework at Lloyd's

The Society of Lloyd's (Lloyd's) is a regulated undertaking and subject to the supervision of

the Prudential Regulatory Authority (PRA) under the Financial Services and Markets Act 2000.

Within the supervisory framework, Lloyd's applies capital requirements at member level and

centrally to ensure that Lloyd's complies with Solvency UK capital requirements, and beyond

that to meet its own financial strength, licence and ratings objectives.

Although Lloyd's capital setting processes use a capital requirement set at Syndicate level as

a starting point, the requirement to meet Solvency UK and Lloyd's capital requirements apply

at overall and member level only respectively, not at Syndicate level. Accordingly the capital

requirement in respect of the Syndicate is not disclosed in these financial statements.

Lloyd's capital setting process

In order to meet Lloyd's requirements, each Syndicate is required to calculate its Solvency

Capital Requirement (SCR) for the prospective underwriting year. This amount must be

sufficient to cover a 1 in 200 year loss, reflecting uncertainty in the ultimate run-off of

underwriting liabilities (SCR 'to ultimate'). The Syndicate must also calculate its SCR at the

same confidence level but reflecting uncertainty over a one year time horizon (one year SCR)

for Lloyd's to use in meeting Solvency UK requirements. The SCRs of each Syndicate are

subject to review by Lloyd's and approval by the Lloyd's Capital and Planning Group.

Risk management continued

A Syndicate may be comprised of one or more underwriting members of Lloyd's. Each member

is liable for its own share of underwriting liabilities on the Syndicate on which it is participating

but not other members' shares. Accordingly, the capital requirement that Lloyd's sets for each

member operates on a similar basis. Each member's SCR is determined by the sum of the

member's share of the Syndicate SCR 'to ultimate'. Where a member participates on more

than one Syndicate, a credit for diversification is provided to reflect the spread of risk, but

consistent with determining an SCR which reflects the capital requirement to cover a 1 in 200

year loss 'to ultimate' for that member. Over and above this, Lloyd's applies a capital uplift to

the member's capital requirement, known as the Economic Capital Assessment (ECA). The

purpose of this uplift, which is a Lloyd's not a Solvency UK requirement, is to meet Lloyd's

financial strength, licence and ratings objectives. The capital uplift applied for 2025 was 35%

of the member's SCR 'to ultimate'.

Provision of capital by members

Each member may provide capital to meet its ECA either by assets held in trust by Lloyd's

specifically for that member (funds at Lloyd's), held within and managed within a Syndicate

(funds in Syndicate) or as the member's share of the members' balances on each Syndicate

on which it participates. Accordingly, the ending members balances reported on the Statement

of Financial Position on page 16, represent resources available to meet members' and Lloyd's

capital requirements.

c) Insurance risk

The principal risk the Syndicate faces under insurance contracts is that the actual claims and

benefit payments or the timing thereof, differ from expectations. This is influenced by the

frequency of claims, severity of claims, actual benefits paid and subsequent development of

long-term claims. Therefore, the objective of the Syndicate is to ensure that sufficient reserves

are available to cover these liabilities.

The risk exposure is mitigated by diversification across a large portfolio of insurance contracts

and geographical areas. The variability of risks is also improved by careful selection and

implementation of underwriting strategy guidelines, as well as the use of reinsurance

arrangements.

The Syndicate purchases reinsurance as part of its risk mitigation programme. The Syndicate’s

reinsurance programme consists of a mix of class specific proportional Quota Share, but also

excess of loss protection which cover the calendar year on both a risks attaching and losses

occurring during basis. Amounts recoverable from reinsurers are estimated in a manner

consistent with the outstanding claims provision and are in accordance with the reinsurance

contracts. The Syndicate's placement of reinsurance is diversified such that it is neither

dependent on a single reinsurer, nor a single contract.

Sub committees of the Syndicate Board oversee the management of reserving risk. The use

of standardised and internal modelling techniques, as well as benchmarking and the review of

claims development are key in mitigating reserving risk. The purpose of these underwriting,

reinsurance and reserving strategies is to limit exposure to catastrophes or large losses based

on the Syndicate's risk appetite as decided by the Syndicate Board.

The Syndicate uses both its own and commercially available risk management software to

assess catastrophe exposure. However, there is always a risk that the assumptions and

techniques used in these models are unreliable or that claims arising from an un-modelled

event are greater than those arising from a modelled event.

Risk management continued

Key assumptions

The principal assumption underlying the liability estimates is that the future claims

development will follow a similar pattern to past claims development experience. This includes

assumptions in respect of average claim costs, claim handling costs, claim inflation factors

and claim numbers for each underwriting year. Additional qualitative judgements are used to

assess the extent to which past trends may not apply in the future, for example: one-off

occurrence; changes in market factors such as public attitude to claiming: economic

conditions: as well as internal factors such as portfolio mix, policy conditions and claims

handling procedures. Judgement is further used to assess the extent to which external factors

such as judicial decisions and government legislation affect the estimates.

Other key circumstances affecting the reliability of assumptions include variation in interest

rates, delays in settlement and changes in foreign currency rates.

Sensitivities

The claim liabilities are sensitive to the key assumptions that follow. It has not been possible

to quantify the sensitivity of certain assumptions, such as legislative changes, uncertainty in

the estimation process. The following analysis is performed for reasonably possible

movements in key assumptions with all other assumptions held constant, showing the impact

on net liabilities, profit and members' balances. The correlation of assumptions will have a

significant effect in determining the ultimate claims liabilities, but to demonstrate the impact

due to changes in assumptions, assumptions had to be changed on an individual basis. It

should be noted that movements in these assumptions are non-linear.

The tables below show the sensitivity to adjusting gross and net loss ratios. The amount

disclosed for the impact on claims outstanding – net of reinsurance represents the impact on

both the profit and loss for the year and member balance.

	Sensitivity
General insurance business sensitivities as at 31 December 2025	+5.0% £’000	-5.0% £’000
Claims outstanding – gross of reinsurance	9,022	(9,022)
Claims outstanding – net of reinsurance	6,211	(6,211)

	Sensitivity
General insurance business sensitivities as at 31 December 2024	+5.0% £’000	-5.0% £’000
Claims outstanding – gross of reinsurance	6,497	(6,497)
Claims outstanding – net of reinsurance	3,614	(3,614)

Risk management continued

Claims development

The tables below show the Syndicate's cumulative incurred claims development, including

both claims notified and IBNR for each underwriting year, together with the cumulative

payments to date on a gross and net of reinsurance basis at the balance sheet date. The

Syndicate has elected to translate estimated claims and claims payments at a consistent rate

of exchange as determined by the balance sheet date.

The uncertainty associated with the ultimate claims experience of an underwriting year is

greatest when the underwriting year is at an early stage of development and the margin for

future experience potentially being more adverse than assumed is at its highest. As claims

develop, and the ultimate cost of the claims becomes more certain, the relative level of margin

should decrease. Due, however, to the uncertainty inherent in the claims estimation process,

initial reserves may not always be in a surplus. This is particularly so for large catastrophe

claims where uncertainly is initially great.

All numbers presented in £’000

Underwriting year	2020	2021	2022	2023	2024	2025
Estimate of cumulative gross
claims incurred
At end of first underwriting year	58	1,108	2,684	34,877	9,043	13,673
One year later	4,996	12,660	24,969	48,286	62,434
Two years later	7,151	19,692	26,462	73,085
Three years later	7,044	17,001	28,087
Four years later	6,967	18,903
Five years later	7,266
Less cumulative gross claims paid	(5,626)	(13,357)	(13,486)	(23,171)	(8,284)	(663)
Gross claims reserves	1,640	5,546	14,601	49,914	54,150	13,010
Total gross claims reserves						138,861

All numbers presented in £’000

Underwriting year	2020	2021	2022	2023	2024	2025
Estimate of cumulative net
claims incurred
At end of first underwriting year	49	827	1,486	30,741	5,832	11,495
One year later	2,413	6,897	16,487	25,942	43,907
Two years later	4,262	11,909	13,822	37,160
Three years later	4,311	10,424	13,926
Four years later	4,092	11,519
Five years later	4,610
Less cumulative net claims paid	(3,105)	(8,318)	(6,094)	(10,081)	(6,153)	(631)
Net claims reserves	1,505	3,201	7,832	27,079	37,754	10,864
Total net claims reserves						88,235

Risk management continued

d) Financial risk

The focus of financial risk management for the Syndicate is ensuring that the proceeds from

its financial assets are sufficient to fund the obligations arising from its insurance contracts.

Credit risk

Credit risk is the risk of financial loss to the Syndicate if a counterparty fails to discharge a

contractual obligation. The nature of the Syndicate’s exposures to credit risk and its objectives,

policies and processes for managing credit risk have not changed significantly from the prior

year.

The Syndicate has the following policies and procedures in place to mitigate the exposure to

credit risk:

• Reinsurance is placed with counterparties that have a good credit rating and

concentration of risk is avoided by following policy guidelines in respect of

counterparties' limits. If the counterparty is downgraded or does not have a good credit

rating, then collateral is sought to mitigate any risk. This is monitored by the Syndicate

Board.

Debtors have been assessed for impairment by considering information such as the

occurrence of significant changes in the counterparty’s financial position, patterns of historical

payment information and disputes with counterparties.

Deferred acquisition costs, reinsurers’ share of provision for unearned premium, and overseas

deposits within Other Assets have specifically been excluded from management’s assessment

of credit risk. This is on the basis that the unearned balances do not have any intrinsic credit

risk, whilst the overseas deposits are managed centrally by the Lloyd’s Investment Team with

limited contribution from the Managing Agent.

An analysis of the carrying amounts of past due or impaired debtors is presented in the table

below:

Risk management continued

2025

£’000

Neither past due

nor impaired

assets

Past due

but not

impaired

assets

Gross

value of

impaired

assets

Impairment

allowance

Total

Shares and other variable

yield securities and units in

unit trusts

40,901

Debt securities and other

fixed income securities

Syndicate loans to central

fund

Deposits with ceding

undertakings

Reinsurers’ share of claims

outstanding

50,626

Debtors arising out of

reinsurance operations

32,244

Debtors arising out of direct

insurance operations

39,821

Cash at bank and in hand

20,029

Other debtors and accrued

interest

16,953

Other assets

22,091

Total

222,665

Risk management continued

2024			£’000
	Neither past due nor impaired assets	Past due but not impaired assets	Gross value of impaired assets	Impairment allowance	Total
Shares and other variable yield securities and units in unit trusts	26,862	-	-	-	26,862
Debt securities and other fixed income securities	-	-	-	-	-
Other Investments	-	-	-	-	-
Syndicate loans to central fund	-	-	-	-	-
Deposits with ceding undertakings	-	-	-	-	-
Reinsurers’ share of claims outstanding	31,635	-	-	-	31,635
Debtors arising out of reinsurance operations	26,087	-	-	-	26,087
Debtors arising out of direct insurance operations	32,865	-	-	-	32,865
Cash at bank and in hand	4,228	-	-	-	4,228
Other debtors and accrued interest	10,696	-	-	-	10,696
Other assets	8,465	-	-	-	8,465
Total	140,838	-	-	-	140,838

Risk management continued

The table below sets out the age analysis of financial assets that are past due but not impaired

at the balance sheet date:

2025

£’000

0-3 months

past due

3-6 months

past due

6-12

months

past due

Greater

than 1 year

past due

Total

Shares and other variable

yield securities and units in

unit trusts

Debt securities and other

fixed income securities

Loans and deposits with

credit institutions

Syndicate loans to central

fund

Other investments

Reinsurers’ share of claims

outstanding

Debtors arising out of

reinsurance operations

Debtors arising out of direct

insurance operations

Cash at bank and in hand

Overseas deposits

Other debtors and accrued

interest

Total

Risk management continued

2024

£’000

0-3 months

past due

3-6 months

past due

6-12

months

past due

Greater

than 1 year

past due

Total

Shares and other variable

yield securities and units in

unit trusts

Debt securities and other

fixed income securities

Loans and deposits with

credit institutions

Syndicate loans to central

fund

Other investments

Reinsurers’ share of claims

outstanding

Debtors arising out of

reinsurance operations

Debtors arising out of direct

insurance operations

Cash at bank and in hand

Overseas deposits

Other debtors and accrued

interest

Total

Risk management continued

The table below provides information regarding the credit risk exposure of the Syndicate at the

reporting date by classifying assets according to independent credit ratings of the

counterparties. AAA is the highest possible rating.

2025				£’000
	AAA	AA	A	BBB	Other	Not Rated	Total
Shares and other variable yield securities and units in unit trusts	-	31,087	9,814	-	-	-	40,901
Debt securities and other fixed income securities	-	-	-	-	-	-	-
Loans and deposits with credit institutions	-	-	-	-	-	-	-
Syndicate loans to central fund	-	-	-	-	-	-	-
Other investments	-	-	-	-	-	-	-
Reinsurers’ share of claims outstanding	-	42,812	7,814	-	-	-	50,626
Debtors arising out of reinsurance operations	-	10,255	1,896	-	-	20,093	32,244
Debtors arising out of direct insurance operations	-	-	-	-	-	39,821	39,821
Cash at bank and in hand	-	-	20,029	-	-	-	20,029
Deposits with ceding undertakings	-	-	-	-	-	-	-
Other debtors and accrued interest	-	-	-	-	-	16,953	16,953
Other assets	14,023	2,931	3,281	1,601	123	132	22,091
Total	14,023	87,085	42,834	1,601	123	76,999	222,665

Risk management continued

2024				£’000
	AAA	AA	A	BBB	Other	Not Rated	Total
Shares and other variable yield securities and units in unit trusts	-	-	26,862	-	-	-	26,862
Debt securities and other fixed income securities	-	-	-	-	-	-	-
Loans and deposits with credit institutions	-	-	-	-	-	-	-
Syndicate loans to central fund	-	-	-	-	-	-	-
Other investments	-	-	-	-	-	-	-
Reinsurers’ share of claims outstanding	-	17,909	13,726	-	-	-	31,635
Debtors arising out of reinsurance operations	-	3,642	3,884	-	-	18,561	26,087
Debtors arising out of direct insurance operations	-	-	-	-	-	32,865	32,865
Cash at bank and in hand	-	-	4,228	-	-	-	4,228
Deposits with ceding undertakings	-	-	-	-	-	-	-
Other debtors and accrued interest	-	-	-	-	-	10,696	10,696
Other assets	5,354	1,076	1,141	800	94	-	8,465
Total	5,354	22,627	49,841	800	94	62,122	140,838

Credit exposure

It is the Syndicate's policy to maintain accurate and consistent risk ratings across its credit

portfolio. This enables management to focus on the applicable risks and the comparison of

credit exposures across all lines of business.

Risk management continued

Liquidity risk

Liquidity risk is the risk that the Syndicate may not have enough cash to pay insurance claims

and other liabilities. This risk is reduced by reviewing the Syndicate’s expected cash

obligations on a weekly basis and keeping adequate cash on deposit to meet those obligations.

Further, a Liquidity Committee meets monthly to review liquidity strength and forthcoming

liquidity needs on a monthly basis.

The table below summarises the maturity profile of the Syndicate's financial liabilities based

on remaining undiscounted contractual obligations, including interest payable and outstanding

claim liabilities based on the estimated timing of claim payments resulting from recognised

insurance liabilities. Repayments which are subject to notice are treated as if notice were to

be given immediately.

2025			£’000
	No stated maturity	0-1 Year	1-3 Years	3-5 Years	> 5 years	Total
Claims outstanding	-	38,455	49,084	25,826	25,496	138,861
Deposits received from reinsurers	-	-	-	-	-	-
Creditors	-	49,424	2,526	-	-	51,950
Other credit balances	-	-	-	-	-	-
Total	-	87,879	51,610	25,826	25,496	190,811

2024			£’000
	No stated maturity	0-1 Year	1-3 Years	3-5 Years	> 5 years	Total
Claims outstanding	-	24,431	22,812	13,644	14,560	75,447
Deposits received from reinsurers	-	-	-	-	-	-
Creditors	-	43,534	-	-	-	43,534
Other credit balances	-	-	-	-	-	-
Total	-	67,965	22,812	13,644	14,560	118,981

Risk management continued

Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument or

insurance contract will fluctuate because of changes in market prices. Market risk comprises

three types of risk: currency risk, interest rate risk and other price risk. Other price risk has

been assessed as negligible, given that the Syndicate does not invest in equities.

The objective of market risk management is to manage and control market risk exposures

within acceptable parameters, while optimising the return on risk.

a) Currency risk

Currency risk is the risk that the fair value or future cash flows of a financial instrument will

fluctuate because of changes in foreign exchange rates.

The Syndicate's functional currency is GBP and its exposure to foreign exchange risk arises

primarily with respect to transactions in US Dollar, Euro, Canadian Dollar and Australian Dollar.

The Syndicate seeks to mitigate the risk by matching the estimated foreign currency

denominated liabilities with assets denominated in the same currency.

The Syndicate matches its currency position, so it holds net assets across a number of

currencies. The Syndicate takes into consideration the underlying currency of the Syndicate's

required capital and invests its assets proportionately across these currencies so as to protect

the solvency of the Syndicate, against variation in foreign exchange rates.

The following table summarises the exposure of the financial assets and liabilities to foreign

currency exchange risk at the reporting date, as follows, with all numbers reported into

converted sterling:

Risk management continued

2025				£’000
	Sterling	US dollar	Euro	Canadian dollar	Australian dollar	Japanese Yen	Other	Total
Investments	-	1,813	-	39,088	-	-	-	40,901
Reinsurers’ share of technical provisions	21,827	464	24,263	13,160	20,025	-	-	79,739
Debtors	18,619	10,543	31,132	2,567	17,315	-	-	80,176
Other assets	136	2,996	1,969	5,051	31,968	-	-	42,120
Prepayments and accrued income	23,935	4,187	12,330	5,805	8,964	-	-	55,221
Total assets	64,517	20,003	69,694	65,671	78,272	-	-	298,157
Technical provisions	(63,881)	(15,752)	(62,887)	(43,542)	(63,232)	-	-	(249,294)
Creditors	(11,038)	(436)	(11,240)	(12,104)	(17,132)	-	-	(51,950)
Deposits received from reinsurers	-	-	-	-	-	-	-	-
Accruals and deferred income	(10,717)	(78)	(1,785)	(1,353)	(2,045)	-	-	(15,978)
Total liabilities	(85,636)	(16,266)	(75,912)	(56,999)	(82,409)	-	-	(317,222)
Total capital and reserves	21,119	(3,737)	6,218	(8,672)	4,137	-	-	19,065

2024				£’000
	Sterling	US dollar	Euro	Canadian Dollar	Australian dollar	Japanese Yen	Other	Total
Investments	-	111	-	26,751	-	-	-	26,862
Reinsurers’ share of technical provisions	9,586	38	22,085	14,509	19,008	-	-	65,226
Debtors	7,981	8,799	28,094	1,116	18,001	-	-	63,991
Other assets	11	1,177	653	3,509	7,344	-	-	12,694
Prepayments and accrued income	15,103	3,624	9,940	5,084	9,899	-	-	43,650
Total assets	32,681	13,749	60,772	50,969	54,252	-	-	212,423
Technical provisions	(27,952)	(12,233)	(47,070)	(31,772)	(40,695)	-	-	(159,722)
Creditors	(5,120)	17	(15,200)	(10,079)	(13,152)	-	-	(43,534)
Deposits received from reinsurers	-	-	-	-	-	-	-	-
Accruals and deferred income	(7,206)	(17)	(3,849)	(2,638)	(3,660)	-	-	(17,370)
Total liabilities	(40,278)	(12,233)	(66,119)	(44,489)	(57,507)	-	-	(220,626)
Total capital and reserves	7,597	(1,516)	5,347	(6,480)	3,255	-	-	8,203

Risk management continued

Sensitivity to changes

The table below gives an indication of the impact on profit of a percentage change in the

relative strength of the functional currency against the value of the US Dollar, Euro, Canadian

Dollar and Australian Dollar simultaneously. The analysis is based on the information as at the

reporting date.

Currency risk

Impact on profit and member’s balance

2025

2024

£’000

10 percent strengthening of functional currency

(205)

10 percent weakening of functional currency

205

(61)

b) Interest rate risk

Interest rate risk is the risk that the value or future cash flows of a financial instrument will

fluctuate in response to changes in market interest rates.

Floating rate instruments expose the Syndicate to cash flow interest risk, whereas fixed rate

instruments expose the Syndicate to fair value interest risk.

The Syndicate has no significant concentration of interest rate risk.

Insurance liabilities are not discounted and therefore are not exposed to interest rate risk.

24. Post balance sheet events

The Syndicate will distribute the 2023 underwriting year profits to members during 2026.