Syndicate Accounts

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Important information about Syndicate Reports and Accounts

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Contents

Section 1: Syndicate 1910 Report and Syndicate Annual Accounts

Directors and Advisors

Chairman’s Statement

Report of the Directors of the Managing Agent

Statement of Manging Agent’s responsibilities

Independent auditor’s report to the members of S1910

Statement of profit or loss and other comprehensive income

Balance sheet – Assets

Balance sheet – Liabilities

Statement of changes in members’ balances

Statement of cash flows

Notes to the financial statements

Section 2: Syndicate 1910 Underwriting Year Accounts

Report of the Directors of the Managing Agent

Statement of Managing Agent’s Responsibilities

Report of the Independent Auditors

2023

Year of Account:Statement of profit or loss

Balance sheet

Statement of Changes in Members’ Balances

Statement of Cash Flows

Notes to the Underwriting Year Accounts

Section 1:

Lloyd’s Syndicate 1910

Annual Report and Accounts for the year ended31 December 2025

Directors and advisors

MANAGING AGENT’S REGISTERED OFFICE

Ariel Re Managing Agency Limited 9th FloorThe Monument Building11 Monument StreetLondonEC3R 8AF

MANAGING AGENT’S REGISTERED NUMBER

13511920

DIRECTORS

De Saram, Mark Stuart (Chairman)Gokhool, NiveditaLednor, Darren MarkMather, Ryan Alexander RobertPoole, Jonathan EdwardSchofield, Belinda AnneTrussell, Mary Helen

SYNDICATE

Ariel Re Syndicate 1910

ACTIVE UNDERWRITER

Pickett, Mark

BANKERS

Barclays Bank PlcCitibank NARBC Dexia

INVESTMENT MANAGERS

Conning Asset Management Ltd24 Monument StreetLondon EC3R 8AJ

AUDITORS

Ernst & Young LLPStatutory Auditor25 Churchill PlaceCanary WharfLondon E14 5EY

Chairman’s Statement

I present to you my report as Chairman of Ariel Re Managing Agency Limited (‘ARMA’) and its managed Syndicate 1910.

RESULTS SUMMARY

2025 has been an excellent year for Syndicate 1910. While the market showed early signs of softening, the absence of any major US hurricanes — following the early loss from the devastating January California wildfires — has delivered an exceptional GAAP result.

Property premiums decreased year on year from $1,216.9m to $1,082.9m, largely reflecting a reduction in inward reinstatement premium driven by lower loss activity in 2025.

Non-property premium across Specialty and Cyber declined from $152.0m to $108.6m. This reduction was primarily driven by:

•a reduction in assumed Cyber quota share, reflecting reduced margins in the underlying insurance risk; and

•lower Marine reinstatement premium following the Baltimore Bridge allision in 2024 and limited loss activity in 2025.

Market conditions across the niche sectors underwritten by the syndicate have remained broadly stable, with some modest softening. There has also been an increased appetite from Cyber insurers to purchase excess of loss coverage in preference to quota share structures.

On a UK GAAP basis, the syndicate reported its highest ever profit in 2025 of $411.9m, compared to a profit of $92.1m in 2024.

The 2025 GAAP result was driven by the strong performance of the 2025 year of account to date, together with a significant improvement in the 2024 year of account, which has moved closer to breakeven.

The Atlantic hurricane season produced thirteen named storms, five of which became hurricanes and four of which reached major hurricane strength. Only three storms made landfall — one each in Mexico (as Tropical Depression Barry), South Carolina (as Tropical Storm Chantal), and Jamaica (as Major Hurricane Melissa). While these storms caused widespread damage, particularly Hurricane Melissa, their impact on the syndicate’s portfolio was limited. From an Atlantic basin perspective, the 2025 hurricane season produced a higher than normal

frequency of strong hurricanes. However, the US hurricane landfall activity was lower than average.

The syndicate saw a material improvement in its 2024 year of account during the calendar year, driven by lower ultimate loss estimates for both Hurricane Milton and the California wildfires. While still in a loss position, the year of account has moved significantly closer to breakeven after 24 months of development. Small improvements were also recorded in the 2023 and prior years of account.

PORTFOLIO & EXPERTISE

In 2025, the syndicate continued to capitalise on strong market conditions within its chosen classes, further strengthening relationships with key clients.

Ceded reinsurance remained available on terms considered attractive relative to the assumed portfolio, and underwriting discipline was maintained within the syndicate’s risk appetite as the portfolio continued to grow.

Expected returns to investors are currently anticipated to remain above long-term averages in 2026 for the syndicate’s chosen portfolio. The business will continue to take advantage of these market conditions during 2026 from both assumed and ceded reinsurance perspectives.

For 2026, the managing agency has bifurcated its underwriting exposure across two syndicates. Syndicate 1910 will focus exclusively on property catastrophe reinsurance, while the newly established Syndicate 2006 will underwrite a balanced portfolio of Property, Specialty, and Cyber reinsurance. While premium volume for Syndicate 1910 will reduce in 2026, this primarily reflects the reallocation of business between the two balance sheets.

THIRD PARTY CAPITAL

During 2025, we continued to benefit from the support of third-party capital providers and have focused on strengthening these relationships as we look ahead to 2026. We remain extremely grateful to our capital partners for their continued support.

STAFF COMMITMENT

The Board would like to express its sincere thanks to our employees for their continued hard work and dedication in building the syndicate’s portfolios and managing the business as it continues to evolve and grow

Mark De Saram

Chairman

18 February 2026

Report of the Directors of the Managing Agent

The directors of Ariel Re Managing Agency Limited present their report for the year ended 31 December 2025.

REPORTING BASIS

These syndicate annual accounts are 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.

The underwriting results have been determined on an annual accounting basis.

RESULTS

The profit for financial year 2025 is $411.9m (2024: $92.1m). Profits will be distributed by reference to the results of individual underwriting years.

PRINCIPAL ACTIVITIES AND REVIEW OF THE BUSINESS

The syndicate’s principal activity continues to be the underwriting of direct insurance and reinsurance business in the Lloyd’s market.

The syndicate’s key financial performance indicators during the year were as follows:

2025$000

2024$000

Change$000

Gross written premium

1,191,486

1,368,915

(177,429)

Profit for the financial year

411,868

92,144

319,724

Total comprehensive income

411,868

92,144

319,724

Claims ratio %

17.4%

69.9%

(52.5%)

Expense ratio %

29.2%

23.7%

5.5%

Combined ratio %

46.6%

93.6%

(47.0%)

The financial data and associated ratios in the above table are all based on the calendar year result.

An analysis of gross written premiums is provided in note

to the accounts.

UNDERWRITING YEARS OF ACCOUNT SUMMARY

The table below shows Syndicate 1910 actual (A) results for the closed 2023 year of account and the forecast (F) results for the open years of account 2024 and 2025:

Year of account summary

2025 F*Open$000

2024 FOpen$000

2023 AClosed$000

Stamp capacity

1,189,067

1,081,653

882,032

Stamp premium income

1,045,918

1,162,960

719,958

Stamp utilisation

88.0%

107.5%

81.6%

Gross written premium

1,222,907

1,367,689

850,422

(Loss)/profit

(16,024)

371,986

(Loss)/profit on stamp

(1.5%)

42.2%

Stamp capacity is shown net of the quota share to the Special Purpose Arrangement Syndicate 6117 and 6136.

*A formal forecast range for the 2025 year of account will be released at the time of publishing results for the 15 months to 31 March 2026.

REINSURANCE PROGRAMME PURCHASE

The syndicate purchases reinsurance to assist in achieving its strategic objectives by managing risk aggregation and improving the return on capital of the syndicate as a whole. The use of proportional

and excess of loss protection varies by type of business depending on the nature of the business.

The 2025 reinsurance strategy remained in line with 2024 focussing on reducing the ceded margin whilst remaining within the syndicate’s risk appetite.

The syndicate continued to place its reinsurance programme with high quality reinsurers, either being Tier 1 reinsurers rated A to AAA by Standard and Poor’s or, if unrated, reinsurers provide collateral for their full exposure.

INVESTMENTS

Allocation of investments is conservative and is predominantly in cash and fixed interest securities of high credit quality with little exposure to volatile asset classes. This satisfies the syndicate’s liquidity requirements in respect of routine claim and expense payments. In addition, Lloyd’s centrally manages various overseas funds and deposits on behalf of the syndicate. However, by far the largest element of the syndicate’s funds 91.2% (2024: 90.8%) are held in fixed interest portfolios that are managed by Conning Investment Management Ltd which therefore have a dominant influence on the overall investment return. All investments are managed within risk constraints and duration, liquidity and credit limits (must be rated BBB or above) which are approved by the Audit Committee of the Managing Agency. The investment benchmarks set for the fixed income portfolios are a combination of the 60% Bloomberg US Corporate A+ 1-3yr / 40% Bloomberg US Gov 1-3yr and the investment manager’s performance is compared to these benchmarks.

FOREIGN EXCHANGE EXPOSURE POLICY

The aim of our policy is to minimise foreign exchange volatility in US Dollar terms (the functional currency of the syndicate). To achieve this, we aim to match our assets and liabilities in currency. It is the syndicate’s policy to hold its surplus assets (profits) in US Dollars.

PRINCIPAL RISKS AND UNCERTAINTIES

Note 2 in the notes to the financial statements provides an analysis of the key insurance and financial risks to which the syndicate is exposed.

DONATIONS

Charitable donations during the year amounted to $nil (2024: $nil).

OUTLOOK AND FUTURE DEVELOPMENTS

Following a year with a significant California wildfire event, but limited US hurricane losses in 2025, we expect to see additional capacity flowing into the property reinsurance market given profits made during 2025.

Additional capacity will lead to more competition and hence rate decreases are expected. We expect the appetite for higher layer, lower frequency exposure to increase the most and see the most rate pressure, although recognise that higher frequency layers will also see some reduction.

The syndicate will continue to provide meaningful capacity to its clients at what it believes are fair market pricing and continue to hedge its portfolio appropriately to maintain an attractive return for its investors.

For year of account 2026, Ariel Re took the decision to bifurcate its business into two syndicates. From 2026, syndicate 1910 will solely be dedicated to underwriting Property Catastrophe business. This will align its risk profile with that of its Bermuda ILS peer group but with the advantages of being a rated Lloyd’s carrier.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE

The directors of the Managing Agency believe the syndicate’s long-term sustainability and profitability for the benefit of its members as a whole will be improved through an active and effective Environmental, Social and Governance (“ESG”) strategy. To help develop this ESG strategy, the Ariel Re leadership team has been directed to establish, prioritise and implement Ariel Re’s ESG goals and objectives. The directors intend to monitor, guide and aid the leadership team in accomplishing its goals.

DIRECTORS AND OFFICERS SERVING IN THE YEAR

Details of the directors of the Managing Agent who served during the year ended 31 December 2025 and to the date of this report:

Directors and officers

M S De Saram (independent non-executive; Chairman)

N Gokhool

R H Knowles

Resigned 11 November 2025

D M Lednor

R A R Mather

J E Poole

B A Schofield (independent non-executive)

M H Trussell (independent non-executive)

ANNUAL GENERAL MEETING

The directors do not propose to hold an annual general meeting for the syndicate. If any member’s agent or direct corporate supporter of the syndicate wishes to meet with them, the directors are happy to do so.

DISCLOSURE OF INFORMATION TO AUDITORS

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.

AUDITORS

The syndicate’s auditors, Ernst & Young LLP, are deemed to be reappointed under the provisions of The Insurance Accounts Directive (Miscellaneous Insurance Undertakings) Regulations 2008 and Section 487(2) of the companies Act 2006.

Approved by the Board of Ariel Re Managing Agency Limited and signed on behalf of the Board.

D M Lednor

Director

18 February 2026

Statement of Managing Agent’s responsibilities

The managing agent is responsible for preparing the annual report and the syndicate annual accounts in accordance with applicable law and regulations.

The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 (“the 2008 Regulations”) requires the managing agent to prepare syndicate annual accounts at 31 December each year, in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), which give a true and fair view of the state of affairs of the syndicate and of its profit or loss for that year.

In preparing these syndicate annual accounts, the managing agent is required to:

•select suitable accounting policies, and apply them consistently;

•make judgements and estimates that are reasonable and prudent;

•state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the syndicate annual accounts; and

•prepare the syndicate annual accounts on the basis that the syndicate will continue to

write future business unless it is inappropriate to do so.

The managing agent is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the syndicate and enable it to ensure that the syndicate annual accounts comply with the 2008 Regulations. It is also responsible for safeguarding the assets of the syndicate and hence for taking reasonable steps for prevention and detection of fraud and other irregularities.

The managing agent is responsible for the maintenance and integrity of the corporate and financial information relating to the syndicate included on the managing agent’s website.

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.

Legislation in the United Kingdom governing the preparation and dissemination of financial information may differ from legislation in other jurisdictions.

Independent auditor’s report to the members of syndicate 1910

OPINION

We have audited the syndicate annual accounts of syndicate 1910 (‘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 the related notes 1 to 25, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law including The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008, United Kingdom Accounting Standards including FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and FRS 103 ‘Insurance Contracts’ (‘United Kingdom Generally Accepted Accounting Practice’), and Section 1 of the Lloyd’s Syndicate Accounts Instructions V3.1 as modified by the Frequently Asked Questions Version 1.1 issued by Lloyd’s (‘the Syndicate Accounts Instructions’).

In our opinion, the syndicate annual accounts:

•give a true and fair view of the syndicate’s affairs as at 31 December 2025 and of its profit 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 Syndicate Accounts Instructions.

BASIS OF 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 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 as applied to other entities of public interest, 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.

CONCLUSIONS RELATING TO GOING CONCERN

In 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 on 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 twelve months from when the syndicate annual accounts are authorised for issue.

Our responsibilities and the responsibilities of the directors of the managing agent with respect to going concern are described in the relevant sections of this report. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the syndicate’s ability to continue as a going concern.

OTHER INFORMATION

The other information comprises the information included in the Annual Report and Accounts, other than the syndicate annual accounts and our auditor’s report thereon. The directors of the managing agent are responsible for the other information contained within the 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 this 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 the 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 in which the syndicate annual accounts are prepared is consistent with the syndicate annual accounts; and

•the information given in the managing agent’s report for the financial year in which the syndicate annual accounts are prepared is consistent with the syndicate annual accounts.

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 where The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 requires us to report to you, if in our opinion:

•the managing agent in respect of the syndicate has not kept adequate accounting records; or

•the syndicate annual accounts are not in agreement with the accounting records; or

•certain disclosures of the managing agent’s emoluments 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 set out on page 10, the directors of the managing agent are 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 they determine is necessary to enable the preparation of the syndicate annual accounts that are free from material misstatement, whether due to fraud or error.

In preparing the syndicate annual accounts, the directors of the managing agent are responsible for assessing the syndicate’s ability to continue in operation, disclosing, as applicable, matters related to its ability to continue in operation and using the going concern basis of accounting unless the directors of the managing agent either 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.

EXPLANATION AS TO WHAT EXTENT THE AUDIT WAS CONSIDERED CAPABLE OF DETECTING IRREGULARITIES, INCLUDING FRAUD

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the managing agent and management.

Our approach was as follows:

•We obtained a general understanding of the legal and regulatory frameworks that are applicable to the syndicate and determined that the most significant are direct laws and regulations related to elements of Lloyd’s Byelaws and Regulations, and the financial reporting framework (UK United Kingdom Generally Accepted Accounting Practice), and requirements referred to by Lloyd’s in the Syndicate Accounts instructions. Our considerations of other laws and regulations that may have a material effect on the syndicate annual accounts included permissions and supervisory requirements of Lloyd’s of London, the Prudential Regulation Authority (‘PRA’) and the Financial Conduct Authority (‘FCA’).

•We obtained a general understanding of how the syndicate is complying with those frameworks by making enquiries of management, internal audit, and those responsible for legal and compliance matters of the syndicate. In assessing the effectiveness of the control environment, we also reviewed significant correspondence between the syndicate, Lloyd’s of London and other UK regulatory bodies; reviewed minutes of the Board and Risk Committee of the managing agent; and gained an understanding of the managing agent’s approach to governance.

•For direct laws and regulations, we considered the extent of compliance with those laws and regulations as part of our procedures on the related syndicate annual accounts’ items.

non-compliance with laws and regulations by officers and employees, enquiring about the managing agent’s methods of enforcing and monitoring compliance with such policies, and inspecting significant correspondence with Lloyd’s, the PRA and the FCA.

•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 had the appropriate competence and capabilities, which included the use of specialists where appropriate.

•We assessed the susceptibility of the syndicate’s annual accounts to material misstatement, including how fraud might occur by considering the controls that the directors of the managing agent have established to address risks identified by them, or that otherwise seek to prevent, deter or detect fraud. We also considered areas of significant judgement and the impact these have on the control environment. Where this risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures were designed to provide reasonable assurance that the syndicate annual accounts were free from material misstatement due to fraud or error.

Our procedures also included:

•Considering accounting estimates for evidence of management bias in respect of recognition of estimated premium income. Supported by our actuaries, we assessed if there were any indicators of management bias in the valuation of gross incurred but not reported claims provisions; and

•Testing the appropriateness of journal entries recorded in the general ledger on a sample basis.

A further description of our responsibilities for the audit of the annual accounts is located on the Financial Reporting Council’s website at

https://www.frc.org.uk/auditorsresponsibilities

. This

description forms part of our auditor’s report.

OTHER MATTER

Our opinion on the syndicate annual accounts does not cover the iXBRL tagging included within these syndicate annual accounts, and we do not express any form of assurance conclusion thereon.

USE OF OUR REPORT

This report is made solely to the syndicate’s members, as a body, in accordance with 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.

Angus Millar (Senior statutory auditor)

for and on behalf of Ernst & Young LLP, Statutory Auditor

London

18 February 2026

Statement of profit or loss and other comprehensive income:

Technical account – General business

For the year ended 31 December 2025

Note

2025$000

2024$000

(Restated)*

Gross premiums written

1,191,486

1,368,915

Outwards reinsurance premiums

(525,116)

(439,551)

Premiums written, net of reinsurance

666,370

929,364

Changes in unearned premium

Change in the gross provision for unearned premiums

26,963

21,926

Change in the provision for unearned premiums reinsurers’ share

9,867

30,690

Net change in provisions for unearned premiums

36,830

52,616

Earned premiums, net of reinsurance

703,200

981,980

Allocated investment return transferred from the non-technical account

34,505

31,601

Claims paid

Gross amount

(658,420)

(207,105)

Reinsurers’ share

164,217

70,939

Net claims paid

(494,203)

(136,166)

Change in the provision for claims

Gross amount

397,055

(625,749)

Reinsurers’ share

(25,344)

75,553

Net change in provisions for claims

371,711

(550,196)

Claims incurred, net of reinsurance

(122,492)

(686,362)

Net operating expenses

(205,029)

(232,501)

Balance on the technical account – general business

410,184

94,718

*The restatement relates to the voluntary change in presentational currency from GBP to USD during the year. Refer to note 1 for further details.

Statement of profit or loss and other comprehensive income: (cont.)

Non-technical account – General business

For the year ended 31 December 2025

The accompanying notes from page

to 43 form an integral part of these financial statements.

*The restatement relates to the voluntary change in presentational currency from GBP to USD during the year. Refer to note 1 for further details.

Note

2025$000

2024$000

(Restated)*

Balance on the technical account – general business

410,184

94,718

Investment income

22,194

23,281

Realised gains on investments

7,586

5,114

Unrealised gains on investments

5,170

3,208

Investment expenses and charges

(445)

(2)

Total investment return

34,505

31,601

Allocated investment return transferred to the general business technical account

(34,505)

(31,601)

Gain/(loss) on foreign exchange

1,684

(2,574)

Profit for the financial year

411,868

92,144

Other comprehensive income:

Currency translation gains/(losses)

Total comprehensive income for the year

411,868

92,144

Balance sheet – Assets

As at 31 December 2025

Note

2025$000

2024$000

(Restated)*

Assets

Financial investments

1,125,730

1,034,210

Deposits with ceding undertakings

Investments

1,125,730

1,034,210

Provision for unearned premiums

124,419

115,397

Claims outstanding

12, 13

264,020

300,987

Reinsurers’ share of technical provisions

388,439

416,384

Debtors arising out of direct insurance operations

Debtors arising out of reinsurance operations

646,178

659,520

Other debtors

23,457

20,099

Debtors

669,643

679,651

Cash at bank and in hand

61,108

53,751

Other

14,530

31,071

Other assets

75,638

84,822

Deferred acquisition costs

42,956

51,205

Other prepayments and accrued income

728

Prepayments and accrued income

42,997

51,933

Total assets

2,302,447

2,267,000

*The restatement relates to the voluntary change in presentational currency from GBP to USD during the year. Refer to note 1 for further details.

Balance sheet (cont’d) – Liabilities

As at 31 December 2025

Note

2025$000

2024$000

(Restated)*

MEMBERS’ BALANCES AND LIABILITIES

Members’ balances

719,676

388,988

Total capital and reserves

719,676

388,988

Provision for unearned premiums

196,531

222,245

Claims outstanding

12, 13

799,264

1,191,762

Technical provisions

995,795

1,414,007

Creditors arising out of reinsurance operations

516,468

385,050

Other creditors including taxation and social security

56,705

63,039

Creditors

573,173

448,089

Accruals and deferred income

13,803

15,916

Total liabilities

1,582,771

1,878,012

Total liabilities, capital and reserves

2,302,447

2,267,000

The accompanying notes from page

to 43 form an integral part of these financial statements.

The syndicate financial statements on pages

to 43 were approved by the board of Ariel Re Managing Agency Limited on 18 February 2026 and were signed on its behalf by;

N Gokhool

Director

D M Lednor

Director

*The restatement relates to the voluntary change in presentational currency from GBP to USD during the year. Refer to note 1 for further details.

Statement of changes in members’ balances

For the year ended 31 December 2025

2025$000

2024$000

(Restated)*

Members’ balances brought forward at 1 January

388,988

294,559

Total comprehensive income for the year

411,868

92,144

Payments of profit to members’ personal reserve funds

(80,982)

Losses collected in relation to distribution on closure of underwriting year

2,400

Members’ agents’ fees

(180)

(118)

Other

(18)

Members’ balances carried forward at 31 December

719,676

388,988

*The restatement relates to the voluntary change in presentational currency from GBP to USD during the year. Refer to note 1 for further details.

Statement of cash flows

For the year ended 31 December 2025

Note

2025

$000

2024

$000

(Restated)

Cash flows from operating activities

Profit for the financial year

411,868

92,144

Adjustments:

(Decrease)/increase in gross technical provisions

(423,814)

604,220

Decrease/(Increase) in reinsurers’ share of gross

technical provisions

29,016

(93,068)

Decrease/(increase) in debtors

15,482

(195,438)

Increase in creditors

130,461

76,572

Movement in other assets/liabilities

14,681

(11,228)

Investment return

(34,505)

(31,601)

Foreign exchange

(1,073)

(10,890)

Net cash flows from operating activities

142,116

430,711

Cash flows from investing activities

Purchase of equity and debt instruments

(1,016,743)

(1,410,613)

Sale of equity and debt instruments

933,037

897,693

Investment income received

29,780

28,394

Net cash flows from investing activities

(53,926)

(484,526)

Cash flows from financing activities

Distribution of profit

(80,982)

Collection of losses

2,400

Members’ agents’ fee advance

(180)

(118)

Net cash flows from financing activities

(81,162)

2,282

Net increase/(decrease) in cash and cash equivalents

7,028

(51,533)

Cash and cash equivalents at the beginning of the year

62,020

107,671

Foreign exchange on cash and cash equivalents

3,062

5,882

Cash and cash equivalents at the end of the year

72,110

62,020

*The restatement relates to the voluntary change in presentational currency from GBP to USD during the year. Refer to note 1 for further details.

Notes to the financial statements – (forming part of the financial statements)

Year ended 31 December 2025

1.ACCOUNTING POLICIES

STATEMENT OF COMPLIANCE

The financial statements have been prepared in compliance with The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 and Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (FRS102) and Financial Reported Standard 103 ‘Insurance Contracts’ (FRS 103), being applicable UK GAAP accounting standards, and the Lloyd’s Syndicate Accounts Instructions Version 3.1 as modified by the Frequently Asked Questions Version 1.1 issued by Lloyd’s, and in accordance with the provision of

Schedule 3 of the Large and Medium–sized Companies and Groups (Accounts and Reports) Regulations 2008 pursuant to section 369 of the Companies Act 2006.

The financial statements are prepared under the historical cost convention except for certain financial instruments which are measured at fair value through profit or loss.

BASIS OF PREPARATION

The financial statements of Syndicate 1910 were authorised for issue by the board of directors on 18 February 2026.

The functional currency of the syndicate is US dollars, and the financial statements are presented in US dollars rounded to the nearest $1,000 unless otherwise stated.

As permitted by FRS103 the syndicate continues to apply the existing accounting policies that were applied prior to this standard for its insurance contracts. The syndicate annual accounts have been prepared on the basis that the syndicate will continue to write future business unless it is inappropriate to do so. Further, having considered the solvency and liquidity position of the syndicate, it will be able to continue operations for a period of 12 months from the date of authorisation of the finance statements. Hence directors of the managing agent consider it appropriate to prepare the syndicate annual accounts on the going concern basis.

RESTATEMENT OF COMPARATIVE BALANCES

Effective 1 January 2025, Syndicate 1910 has elected to change its presentational currency from Sterling to US dollars, due to the change in Lloyd’s regulatory reporting requirements and to align its functional and presentational currency. This change in accounting policy has nil impact on the Statement of Financial Position assets and liabilities, Statement of comprehensive income or Cashflow statement.

JUDGEMENT AND KEY SOURCES OF ESTIMATION AND UNCERTAINTY

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that the actual outcomes could differ from those estimates. The following are the syndicate’s key sources of estimation uncertainty:

PREMIUMS WRITTEN AND EARNED

Premium written is initially based on the estimated premium income (EPI) of each contract, where premium is sourced through proportional reinsurance, The main assumption underlying these estimates is that past premium development can be used to project future premium development. EPI is pro-rated across the contract period. This is done on a straight-line basis unless the underlying underwriting pattern for the prior period indicates that the pattern of that actually underwritten is materially different to the prior pattern.

The underwriters adjust their EPI estimates as the year of account matures. As the year of account closes premiums are adjusted to match the actual signed premium. An accrual for estimated future reinstatement premium is retained. At a portfolio level this is considered to provide a reasonable estimate for the full year of the pattern of risk over the coverage period. Due to the nature of the business written and the settlement patterns of the underlying business it is also not uncommon for contracts to take a number of years to finalise and settle, and as such a receivable remains on the balance sheet. The amount of estimated future premium that remains in insurance receivables relating to years of accounts that are more than three years developed at 31 December 2025 is $8.5m (2024: $8.4m).

CLAIMS INCURRED AND REINSURERS’ SHARE

The provision for claims outstanding comprises amounts set aside for claims notified and claims incurred but not yet reported (IBNR). The amount of IBNR, which is based on statistical techniques of estimation applied by the syndicate’s in-house actuaries and reserving team, is reviewed by external consulting actuaries. These statistical techniques generally involve projecting, from past experience, the development of claims over time to form a view of the likely ultimate claims to be expected for more recent underwriting, having regard to variations in the business accepted and the underlying terms and conditions. The provision for claims also includes amounts for internal and

external claims handling costs. For the most recent years, where a higher degree of volatility may arise from projections, estimates may partly be based on rating and other models of the business accepted, and assessments of underwriting conditions.

The reinsurers’ share of provisions for claims is based on calculated amounts of outstanding claims and projections for IBNR, net of estimated irrecoverable amounts. The syndicate evaluates the reinsurance programme in place for the class of business, the claims experience for the year, and the security rating of the reinsurance companies involved. The syndicate uses a number of statistical techniques to assist in these estimates.

Hence the two most critical assumptions for claims provisions are that the past is a reasonable predictor of future claims development, and that rating and other models used, including pricing models for recent business, are fair indicators of the ultimate claims that will be incurred.

The uncertainty of such estimations generally decreases with the time that has elapsed since policy inception. In addition, short tail claims such as property, where claims are typically notified and settled quickly, will normally have less uncertainty after a few years than long tail risks, such as some liability business, where it may be several years before claims are fully advised and settled. Where disputes exist over coverage under policies, or the relevant law governing a claim changes, uncertainty in the estimation of outcomes may increase.

However, ultimate liability can be varied by further information and events, and this may result in significant adjustments to the provisions. Modifications to claims provisions established in prior years are shown in the financial statements for the period in which the adjustments are made. Provisions are not discounted for investment earnings that may arise on funds retained to meet future liabilities. The methods used, and the estimates made, are reviewed regularly.

FAIR VALUE OF FINANCIAL ASSETS

The syndicate uses the following hierarchy for determining the fair value of financial instruments by valuation technique:

Level 1: quoted (unadjusted) prices in active markets for identical assets.

Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.

Level 3: techniques which use inputs which have a significant effect on the recorded fair value that are not based on observable market data.

See Note

for details of financial instruments classified by fair value hierarchy.

BASIS OF ACCOUNTING

Under the annual basis of accounting, the incurred cost of claims, commission and related expenses are charged against the earned proportion of premiums, net of reinsurance, as follows:

PRODUCT CLASSIFICATION

Insurance contracts are those contracts that transfer significant insurance risk at the inception of the contract. Insurance risk is transferred when an insurer agrees to compensate a policyholder if a specified uncertain future event adversely affects the policyholder. The significance of insurance risk is dependent on both the probability of an insured event and the magnitude of its potential effect.

Once a contract has been classified as an insurance contract, it remains an insurance contract for the remainder of its lifetime, even if the insurance risk reduces significantly during this period.

PREMIUMS WRITTEN

Premiums written comprise premiums on contracts of insurance incepted during the financial year and any adjustments made in the year to estimates of premiums written in prior years. Premiums are shown gross of commission payable and exclude taxes and duties levied on them.

UNEARNED PREMIUMS

Written premium is earned according to the risk profile of the policy. Unearned premiums represent the proportion of premiums written in the year that relate to unexpired terms of policies in force at the date of the balance sheet, calculated on the basis of established earnings patterns or time apportionment as appropriate.

REINSURANCE PREMIUM CEDED

Outward reinsurance premiums are accounted for on an earned basis in the same accounting period as the premiums for the related direct or inwards business being reinsured, except for Losses Occurring During Treaty Reinsurance which is earned from the start of the reinsurance policy over the life of the policy.

Ceded reinsurance arrangements do not relieve the syndicate from its obligations to policyholders.

CLAIMS INCURRED AND REINSURERS’ SHARE

Gross claims incurred comprise claims and settlement expenses (both internal and external) occurring during the year, and the movement in provision for outstanding claims and settlement expenses brought forward. Allowance is made for the cost of claims incurred by the reporting period end date but not reported until after the reporting period end. Incurred claims outstanding are reduced by anticipated salvage and other recoveries from third parties.

UNEXPIRED RISKS PROVISION

A liability adequacy provision (the unexpired risks provision) is made where the cost of claims and expenses arising after the end of the financial year from contracts concluded before that date, is

expected to exceed the provision for unearned premiums, net of deferred acquisition costs.

The assessment of whether a provision is necessary is made by considering separately each category of business on the basis of information available at the reporting date, after offsetting surpluses and deficits arising on products which are managed together. Investment income is taken into account in calculating the provision.

At 31 December 2025 and 31 December 2024 the syndicate did not have an unexpired risks provision.

REINSURANCE ASSETS

The syndicate cedes insurance risk in the normal course of business for all of its businesses. Reinsurance assets represent balances due from reinsurance companies. Amounts recoverable from reinsurers are estimated in a manner consistent with the outstanding claims provision 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, when 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 and other comprehensive income.

NET OPERATING EXPENSES (INCLUDING ACQUISITION COSTS)

Net operating expenses include acquisition costs, profit and loss on exchange, and amounts charged to members through the syndicate.

Members’ standard personal expenses are included in net operating expenses and include Lloyd’s subscriptions, Central Fund contributions and Managing Agent’s fees.

Ariel Re Bermuda Limited (“ARBL”), Ariel Re Hong Kong (“ARHK”) and Ariel Re UK Limited (“ARUK”), as Managing General Agencies (MGAs), incur significant cost underwriting business on behalf of Syndicate 1910 and are reimbursed via a coverholder commission of 8.45% for the 2025 and 2024 year of accounts and 8.7% for 2023 year of account on premiums written.

Acquisition costs, comprising Reinsurers’ commission and other costs related to the acquisition of new insurance contracts, are recognised by reference to premium written. They are deferred to the extent that they are attributable to and recoverable against premiums unearned at the balance sheet date. All other operating expenses are accounted for on an accruals basis.

The deferred acquisition cost asset represents the proportion of acquisition costs which corresponds to the proportion of gross premiums written that is unearned at the balance sheet date. The deferred acquisition cost liability represents the proportion of Reinsurers’ commission and profit participation which

corresponds to the proportion of outward reinsurance premiums written that is unearned at the balance sheet date.

PROFIT COMMISSION

The syndicate is not charged profit commission by the Managing Agent for the 2023, 2024 and the 2025 years of account.

DISTRIBUTION OF PROFITS AND COLLECTION OF LOSSES

Lloyd’s has regulations on solvency and the distribution of profits and payment of losses between a syndicate and its members. Lloyd’s continues to require syndicate membership to be on an underwriting year basis, and profits and losses belong to members according to their membership. Normally profits and losses are transferred between a syndicate and its members after results for an underwriting year are finalised after 36 months. This period may be extended if an underwriting year is placed in run-off. The syndicate may make earlier on account distributions or cash calls according to the cash flow of that underwriting year, subject to Lloyd’s regulations.

FOREIGN CURRENCIES

Both the syndicate’s functional currency and presentational currency is US Dollars.

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.

Exchange differences are recorded in the non-technical account and due to the syndicate having the same functional and presentational currency there are no translation differences resulting from conversion of functional currency to presentational currency, which are treated as other comprehensive income (OCI) and dealt with in the statement of profit or loss and comprehensive income.

FINANCIAL INVESTMENTS

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)/Chapters 11 and 12 of FRS 102.

The syndicate classifies its financial investments as financial assets at fair value through profit and loss and deposits with credit institutions are measured at amortised cost.

The syndicate’s documented investment strategy is to manage financial investments acquired on a fair value basis.

Regular way purchases or sales of financial assets require delivery of asset within the time frame generally established by regulation or convention in the marketplace. All regular way purchases and sales of financial assets are recognised on the trade

date, i.e., the date the syndicate commits to purchase or sell the asset.

Directly held investments that are held as fixed assets are stated at cost less provision for permanent diminution in value. Investments held as current assets are stated at the lower of cost and market value.

Financial assets at fair value through profit or loss has two sub-categories namely financial assets held for trading and those designated at fair value through profit or loss at inception. Investments typically bought with the intention to sell in the near future are classified as held for trading as are all derivatives, including embedded derivatives, that are not designated as hedging instruments. For investments designated at fair value through profit or loss, the following criteria must be met:

•The designation eliminates or significantly reduces the inconsistent treatment that would otherwise arise from measuring the assets or liabilities or recognising gains or losses on a different basis; or

•The assets and liabilities are part of a group of financial assets, financial liabilities or both which are managed and their performance evaluated on a fair value basis, in accordance with a documented risk management or investment strategy.

These investments are initially recorded at fair value. Subsequent to initial recognition, these investments are re-measured at fair value at each reporting date. Fair value adjustments and realised gains and losses are recognised in the statement of profit or loss and other comprehensive income.

OVERSEAS DEPOSITS

Overseas deposits are stated at market value as at the date of the balance sheet. The cost of investments held within these deposits is determined either on the same basis as syndicate investments, or on a basis of notification received from Lloyd’s.

CASH AND CASH EQUIVALENTS

Cash and cash equivalents in the balance sheet comprise cash at banks and in hand and short-term deposits with an original maturity date of three months or less. For the purpose of the cash flow statement, cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts.

INVESTMENT RETURN

Investment return comprises all investment income, realised investment gains and losses and movements in unrealised gains and losses, net of investment expenses, charges and interest.

Realised gains and losses on investments carried at market value are calculated as the difference between sale proceeds and purchase price. Movements in unrealised gains and losses on investments represent the difference between the valuation at the balance sheet date, together with the reversal of unrealised gains and losses recognised in earlier accounting periods in respect of investment disposals in the current period.

Allocation of actual investment return on investments supporting the general insurance technical provisions and associated members’ balance is made from the non-technical account to the technical account. Investment return related to non-insurance business and members’ balance is attributed to the non-technical account. Investment return has been wholly allocated to the technical account as all investments relate to technical accounts.

TAXATION

Under Schedule 19 of the Finance Act 1993 Managing Agents are not required to deduct basic rate income tax from trading income. Managing Agents can recover UK basic rate income tax deducted from syndicate investment income, and consequently any distribution to members or 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 United States federal income tax payable 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’.

No provision has been made for any other foreign taxes payable by members on underwriting results.

PENSION COSTS

Ariel Re Management Services Limited is a service company and fellow group company of the Managing Agency, which operates a defined contribution pension scheme. Due to the coverholder fee arrangement between ARBL, ARHK and ARUK and the syndicate, pension contributions are not charged to the syndicate.

2.RISK AND CAPITAL MANAGEMENT

a)Governance framework

The primary objective of the syndicate’s risk and financial management framework is to protect the syndicate’s members from events that hinder the sustainable achievement of financial performance objectives, including failing to exploit opportunities. The Managing Agent recognises the critical importance of having efficient and effective risk management systems in place, as part of a ‘three lines of defence’ governance model.

The Managing Agent has established a risk management function for the syndicate. Responsibilities are articulated in terms of reference and policies which are cascaded throughout the organisational structure, delegated from the board of directors, its board level committees and the associated executive management forums.

The board of directors of the Managing Agent 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’s goals, and specify reporting requirements. Significant emphasis is placed on assessment and documentation of risks and controls, including the articulation of “risk appetite”. The Board sets risk appetite annually as part of the syndicate’s business planning and capital setting process. The risk management function is also responsible for reviewing the syndicate’s Own Risk and Solvency Assessment (‘ORSA’), recommending the assessment to the Board for approval.

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 Regulation 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 Syndicate 1910 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.

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 shall thus be 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% (2024: 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 balance sheet on page 17, represent resources available to meet the members’ and Lloyd’s capital requirements.

c)Insurance risk

The principal risk the syndicate faces under (re)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 (re)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. Reinsurance ceded is placed on both a proportional and non-proportional basis. The majority of proportional reinsurance is quota-share reinsurance which is taken out to reduce the overall exposure to certain classes of business. Non-proportional reinsurance is primarily excess-of-loss reinsurance designed to mitigate the syndicate’s net exposure to catastrophe losses. Retention limits for the excess-of-loss reinsurance vary by product line and territory.

Amounts recoverable from reinsurers are estimated in a manner consistent with the outstanding claims provision and are in accordance with the reinsurance contracts. Although the syndicate has reinsurance arrangements, it is not relieved of its direct obligations to its policyholders and thus a credit exposure exists with respect to ceded insurance, to the extent that any reinsurer is unable to meet its obligations assumed under such reinsurance agreements. The syndicate’s placement of reinsurance is diversified such that it is neither dependent on a single reinsurer nor are the operations substantially dependent upon any single reinsurance contract.

The syndicate writes predominately short-tail property-catastrophe business in the US and internationally. Reserving risk is managed through the syndicate’s Claims and Reserving Management Forum.

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 unmodelled event are greater than those arising from a modelled event.

As a further guide to the level of catastrophe exposure written by the syndicate, the following table shows hypothetical claims arising from the Realistic Disaster Scenario (RDS) on the syndicate’s in force exposure at 1 July 2025.

Estimated Gross loss $000

Estimated Net loss $000

Two events – North East U.S Windstorm

785,153

565,561

Two events – Carolinas Windstorm

990,219

527,252

Florida Windstorm – Miami Dade

1,425,405

607,231

Florida Windstorm – Pinellas

1,892,194

972,505

Gulf of Mexico Windstorm – Major Hurricane landing in Galveston, Texas

1,304,344

589,828

California Earthquake – San Francisco

755,394

554,898

California Earthquake – Los Angeles

751,831

555,919

The table below sets out the concentration of outstanding claim liabilities by type of contract.

2025

2024

(Restated)

Gross Liabilities $000

Re-Insurance Liabilities $000

Net Liabilities $000

Gross Liabilities $000

Re-Insurance Liabilities $000

Net Liabilities $000

Marine and Aviation

15,431

(2,834)

12,597

8,919

(1,211)

7,708

Fire and Property

4,841

(3,853)

988

4,143

(2,131)

2,012

Pecuniary Loss

1,005

(584)

421

856

(146)

710

RI acceptances

777,987

(256,749)

521,238

1,177,844

(297,499)

880,345

Total

799,264

(264,020)

535,244

1,191,762

(300,987)

890,775

All business is written in the UK.

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: once-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 set out on page 20 under Claims incurred and reinsurers share. It has not been possible to quantify the sensitivity of certain assumptions such as legislative changes or 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 gross and 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 have had to be changed on an individual basis. It should be noted that movements in these assumptions are non-linear.

General insurance business sensitivities as at 31 December 2025

Sensitivity

+5.0%$000

-5.0%$000

Claims outstanding – gross of reinsurance

49,790

(49,790)

Claims outstanding – net of reinsurance

30,368

(30,368)

General insurance business sensitivities as at 31 December 2024 (Restated)

Sensitivity

+5.0%$000

-5.0%$000

Claims outstanding – gross of reinsurance

70,700

(70,700)

Claims outstanding – net of reinsurance

49,881

(49,881)

d)Financial risk

1)Credit risk

Credit risk is the risk that one party to a financial instrument will cause a financial loss to the other party by failing to discharge an obligation.

The following policies and procedures are in place to mitigate the exposure to credit risk:

•Investment guidelines are established setting out the quality of investments to be included within the syndicate’s portfolio.

•The policy is monitored by the Finance and Investment Management Forum.

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 Ceded Reinsurance Management Forum.

The table below provides information regarding the credit risk exposure of the syndicate at 31 December 2025 by classifying assets according to independent credit ratings of the counterparties. AAA is the highest possible rating. Assets that fall outside the range of AAA to BBB are classified as speculative grade and have not been rated.

Year 2025

AAA$000

AA$000

A$000

BBB$000

Other$000

Not rated$000

Total$000

Shares and other variable yield securities and units in unit trusts

1,238

7,996

1,768

11,002

Debt securities and other fixed income securities

6,064

640,941

276,268

95,132

8,769

1,027,174

Loans and deposits with credit institutions

87,554

Deposits with ceding undertakings

Reinsurers’ share of claims outstanding

88,658

134,641

34,025

6,696

264,020

Debtors arising out of direct insurance operations

Debtors arising out of reinsurance operations

481

10,773

1,278

576,238

588,770

Cash at bank and in hand

61,108

Other debtors and accrued interest

3,322

733

894

443

32,636

38,028

Total

99,763

795,084

462,895

95,575

624,346

2,077,663

Year 2024 (Restated)

AAA$000

AA$000

A$000

BBB$000

Other$000

Not rated$000

Total$000

Shares and other variable yield securities and units in unit trusts

1,539

6,080

651

8,270

Debt securities and other fixed income securities

6,533

509,831

336,161

71,544

15,315

939,384

Loans and deposits with credit institutions

86,556

Deposits with ceding undertakings

Reinsurers’ share of claims outstanding

3,163

42,118

230,065

25,641

300,987

Debtors arising out of direct insurance operations

Debtors arising out of reinsurance operations

1,431

5,399

4,820

600,574

612,224

Cash at bank and in hand

53,751

Other debtors and accrued interest

3,411

705

713

554

46,515

51,898

Total

16,077

564,133

712,717

72,098

688,071

2,053,096

Maximum 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.

The debtors below have been individually 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.

During the year, no impairment has been required, and no credit exposure limits were exceeded.

Neither past due nor impaired assets

Past due but not impaired assets

Gross value of impaired assets

Impairment allowance

Total

2025

$000

Shares and other variable yield securities and units in unit trusts

11,002

Debt securities and other fixed income securities

1,027,174

Loans and deposits with credit institutions

87,554

Deposits with ceding undertakings

Reinsurers' share of claims outstanding

264,020

Debtors arising out of direct insurance operations

Debtors arising out of reinsurance operations

588,770

57,408

646,178

Other debtors and accrued interest

38,028

Cash at bank and in hand

61,108

Total

2,077,663

57,409

2,135,072

Neither past due nor impaired assets

Past due but not impaired assets

Gross value of impaired assets

Impairment allowance

Total

2024 (Restated)

$000

Shares and other variable yield securities and units in unit trusts

8,270

Debt securities and other fixed income securities

939,384

Loans and deposits with credit institutions

86,556

Deposits with ceding undertakings

Reinsurers' share of claims outstanding

300,987

Debtors arising out of direct insurance operations

Debtors arising out of reinsurance operations

612,224

47,296

659,520

Other debtors and accrued interest

51,898

Cash at bank and in hand

53,751

Total

2,053,096

47,302

2,100,398

The table below sets out the age analysis of financial assets that are past due but not impaired at the balance sheet date:

Past due but not impaired

0-3 months past due

3-6 months past due

6-12 months past due

Greater than 1 year past due

Total

2025

$000

Shares and other variable yield securities and units in unit trusts

Debt securities and other fixed income securities

Loans and deposits with credit institutions

Deposits with ceding undertakings

Reinsurers' share of claims outstanding

Debtors arising out of direct insurance operations

Debtors arising out of reinsurance operations

43,474

4,479

3,790

5,665

57,408

Other debtors and accrued interest

Cash at bank and in hand

Total

43,475

4,479

3,790

5,665

57,409

Past due but not impaired

0-3 months past due

3-6 months past due

6-12 months past due

Greater than 1 year past due

Total

2024 (Restated)

$000

Shares and other variable yield securities and units in unit trusts

Debt securities and other fixed income securities

Loans and deposits with credit institutions

Deposits with ceding undertakings

Reinsurers' share of claims outstanding

Debtors arising out of direct insurance operations

Debtors arising out of reinsurance operations

33,344

3,986

8,255

1,711

47,296

Other debtors and accrued interest

Cash at bank and in hand

Total

33,348

3,987

8,256

1,711

47,302

2)Liquidity risk

Liquidity risk is the risk that the syndicate will encounter difficulty in meeting obligations associated with financial instruments. In respect of catastrophic events there is also a liquidity risk associated with the timing differences between the gross cash out-flows and expected reinsurance recoveries.

The following policy and procedures are in place to mitigate the syndicate’s exposure to liquidity risk:

•A liquidity policy exists that sets out the assessment and determination of what constitutes liquidity risk. Compliance with the policy is regularly reviewed for pertinence and for changes in the risk environment.

•Guidelines on asset allocation, portfolio limit structures and maturity profiles of assets are set, in order to ensure that sufficient funding is available to meet insurance and investments contracts obligations.

•Contingency funding plans are set up which specify minimum proportions of funds to meet emergency calls as well as specifying events that would trigger such plans.

Certain reinsurance contracts have provisions to draw down on collateral.

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.

Year 2025

No maturity stated$000

0-1 yrs$000

1-3 yrs$000

3-5 yrs$000

>5 yrs$000

Total$000

Claims outstanding

356,803

308,373

89,855

44,233

799,264

Creditors

344,902

192,519

25,264

10,488

573,173

Total

701,705

500,892

115,119

54,721

1,372,437

Year 2024 (Restated)

No maturity stated$000

0-1 yrs$000

1-3 yrs$000

3-5 yrs$000

>5 yrs$000

Total$000

Claims outstanding

526,136

461,053

175,593

28,980

1,191,762

Creditors

243,876

204,213

448,089

Total

770,012

665,266

175,593

28,980

1,639,851

3)Market 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 USD and its exposure to foreign exchange risk arises primarily with respect to transactions in Euro, GBP and Canadian dollars. The syndicate seeks to mitigate the risk by matching the estimated foreign currency denominated liabilities with assets denominated in the same currency.

Where the syndicate has liabilities that exceed assets in any individual currency, it has sufficient funds in other currencies to mitigate this shortfall.

The table below summarises the exposure of the financial assets and liabilities (translated to US Dollars) to foreign currency exchange risk at the reporting date, as follows:

Sterling

US dollar

Euro

Canadian dollar

Australian dollar

Japanese Yen

Other

Total

2025

$000

Investments

1,107,811

17,919

1,125,730

Reinsurers' share of technical provisions

1,653

368,766

5,333

3,293

7,593

264

1,537

388,439

Debtors

2,837

651,508

1,443

2,312

6,791

296

4,456

669,643

Other assets

7,561

32,962

12,153

3,134

6,101

2,656

11,071

75,638

Prepayments and accrued income

115

39,646

210

178

1,567

1,251

42,997

Total assets

12,166

2,200,693

19,139

26,836

22,052

3,246

18,315

2,302,447

Technical provisions

(5,444)

(921,744)

(17,028)

(11,193)

(32,050)

(813)

(7,523)

(995,795)

Creditors

1,910

(557,674)

10,629

(10,217)

(4,726)

(6,717)

(6,378)

(573,173)

Accruals and deferred income

(192)

(13,104)

(45)

(27)

(239)

(5)

(191)

(13,803)

Total liabilities

(3,726)

(1,492,522)

(6,444)

(21,437)

(37,015)

(7,535)

(14,092)

(1,582,771))

Total capital and reserves

(8,440)

(708,171)

(12,695)

(5,399)

14,963

4,289

(4,223)

(719,676)

Sterling

US dollar

Euro

Canadian dollar

Australian dollar

Japanese Yen

Other

Total

2024 (Restated)

$000

Investments

1,018,475

15,735

1,034,210

Reinsurers' share of technical provisions

644

403,640

3,508

3,226

3,123

578

1,665

416,384

Debtors

879

647,879

4,893

2,595

11,143

3,343

8,919

679,651

Other assets

8,518

24,539

10,433

2,749

6,480

2,818

29,285

84,822

Prepayments and accrued income

303

44,171

1,849

(723)

3,363

1,371

1,599

51,933

Total assets

10,344

2,138,704

20,683

23,582

24,109

8,110

41,468

2,267,000

Technical provisions

(3,678)

(1,345,591)

(16,805)

(16,180)

(18,200)

(2,954)

(10,599)

(1,414,007))

Creditors

(719)

(426,936)

(2,125)

(3,631)

(4,825)

(2,734)

(7,119)

(448,089)

Accruals and deferred income

(49)

(15,220)

(105)

(54)

(241)

(49)

(198)

(15,916)

Total liabilities

(4,446)

(1,787,747)

(19,035)

(19,865)

(23,266)

(5,737)

(17,916)

(1,878,012))

Total capital and reserves

(5,898)

(350,957)

(1,648)

(3,717)

(843)

(2,373)

(23,552)

(388,988)

The syndicate matches its currency position so 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.

Sensitivity to changes in foreign exchange rates

The table below gives an indication of the impact on profit of a percentage change in the relative strength of US dollar against the value of Sterling, Canadian dollar and Euro simultaneously. The analysis is based on the information as at 31 December 2025.

Impact on profit and member’s balances

2025$000

2024$000

(Restated)

US Dollar weakens

10% against other currencies – increase in profit

1,150

3,803

20% against GBP – increase in profit

1,688

1,180

US Dollar strengthens

10% against other currencies – increase in loss

(1,150)

(3,803)

20% against GBP – increase in loss

(1,688)

(1,180)

(b)Interest rate risk

Interest rate risk is the risk that the value or future cash flows of a financial instrument will fluctuate because of 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 not exposed to interest rate risk.

The analysis below is performed for reasonably possible movements in interest rates with all other variables held constant, showing the impact on profit and members’ balance of the effects of changes in interest rates on fixed and variable financial assets and liabilities.

The first of these measures the impact on profit or loss for the year (for items recorded at fair value through profit or loss) and on Members’ Balance (for available for sale investments) that would arise from a reasonably possible change in interest rates at the reporting date on financial instruments at the period end. The second of these measures the change in interest income or expense over the period of the year attributable to a reasonably possible change in interest rates, based on floating rate assets and liabilities held at the reporting date.

The correlation of variables will have a significant effect in determining the ultimate impact on interest rate risk, but to demonstrate the impact due to changes in variables, the variables were altered on an individual basis. It should be noted that movements in these variables are non-linear.

2025Impact on results before tax$000

2025Impact on

members’

balances$000

2024Impact on results before tax$000

2024Impact on

members’

balances$000

(Restated)

Interest rate risk

+ 50 basis points shift in yield curves

(6,277)

(8,178)

- 50 basis points shift in yield curves

6,352

8,178

Equity price risk

5 percent increase in equity prices

631

818

5 percent decrease in equity prices

(632)

(818)

The method used for deriving sensitivity information and significant variables did not change from the previous period.

3.ANALYSIS OF UNDERWRITING RESULT

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

2025

Gross premiums written$000

Gross premiums earned$000

Gross claims incurred$000

Gross operating expenses$000

Reinsurance balance$000

Underwriting result$000

Direct insurance

Marine, aviation, and transport

7,957

6,402

(7,463)

(1,391)

(2,376)

Fire and other damage to property

161

6,506

(698)

1,252

(4,847)

2,213

Miscellaneous

456

(133)

(535)

404

192

Total direct insurance

8,118

13,364

(8,294)

(674)

(4,367)

Reinsurance acceptances

1,183,368

1,205,085

(253,071)

(245,036)

(331,328)

375,650

Total

1,191,486

1,218,449

(261,365)

(245,710)

(335,695)

375,679

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$000

Gross premiums earned$000

Gross claims incurred$000

Gross operating expenses$000

Reinsurance balance$000

Underwriting result$000

Additional analysis

Fire and damage to property of

which is:

Specialities

Energy

161

6,506

(698)

1,252

(4,847)

2,213

2024 (Restated)

Gross premiums written$000

Gross premiums earned$000

Gross claims incurred$000

Gross operating expenses$000

Reinsurance balance$000

Underwriting result$000

Direct insurance

Marine, aviation, and transport

6,668

4,920

(7,020)

(919)

276

(2,743)

Fire and other damage to property

12,663

4,914

(3,308)

(1,663)

(5)

Miscellaneous

506

(154)

(124)

(60)

168

Total direct insurance

19,331

10,340

(10,482)

(991)

(1,447)

(2,580)

Reinsurance acceptances

1,349,584

1,380,501

(822,372)

(271,818)

(220,614)

65,697

Total

1,368,915

1,390,841

(832,854)

(272,809)

(222,061)

63,117

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 (Restated)

Gross premiums written$000

Gross premiums earned$000

Gross claims incurred$000

Gross operating expenses$000

Reinsurance balance$000

Underwriting result$000

Additional analysis

Fire and damage to property of which is:

Specialities

Energy

12,663

4,914

(3,308)

(1,663)

(5)

The reinsurance balance is the aggregate total of all those items included in the technical account which relate to reinsurance outwards transactions including items recorded as reinsurance commissions and profit participation.

The reinsurance balance includes reinsurance commission receivable. Gross operating expenses are different to net operating expenses shown in the statement of profit or loss and other comprehensive income as commissions in respect of outward reinsurance were received and net off in arriving at the net operating expenses for 2025.

The gross premiums written for direct insurance by location (where the contracts were concluded) is

presented in the table below:

2025$000

2024$000

(Restated)

United Kingdom

8,118

19,331

European Union Member States

Rest of the world

Total gross premiums written

8,118

19,331

4.NET OPERATING EXPENSES

2025$000

2024$000

(Restated)

Acquisition costs

217,229

245,455

Change in deferred acquisition costs

8,497

1,833

Administrative expenses

(902)

4,990

Members’ standard personal expenses

20,886

20,531

Reinsurance commissions and profit participation

(40,681)

(40,308)

Net operating expenses

205,029

232,501

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

2025$000

2024$000

(Restated)

Total commission for direct insurance business

(395)

(2,592)

Members’ standard personal expenses include Lloyd’s subscriptions, Central Fund contributions and Managing Agent’s fees.

of accounts and 8.7% for the 2023 year of account on premiums written. This fee is included within net operating expenses under both administrative expenses and acquisition costs.

Administrative expenses include:

2025$000

2024$000

(Restated)

Auditors’ remuneration:

fees payable to the syndicate’s auditor for the audit of these financial statements

746

634

fees payable to the syndicate’s auditor and its associates in respect of other services pursuant to legislation

342

268

Auditor’s remuneration is paid by Ariel Re and is included as part of the coverholder commission as described above.

5.STAFF COSTS AND EMOLUMENTS OF THE DIRECTORS OF THE MANAGING AGENT

Due to the coverholder fee arrangement between ARBL, ARHK, ARUK and the syndicate, no salary costs and no expenses directly attributable to the directors or the Active Underwriter of Ariel Re Managing Agency Limited were paid by the syndicate.

All staff are employed by Ariel Re Management Services Limited (ARMS), which recharges staff costs to the Managing Agency. No emoluments of Ariel Re Managing Agency Limited were charged to the syndicate during the year.

6.INVESTMENT RETURN

2025$000

2024$000

(Restated)

Interest and similar income

From financial assets designated at fair value through profit or loss

Interest and similar income

22,194

23,281

Other income from investments

From financial assets designated at fair value through profit or loss

Gains on the realisation of investments

8,206

5,333

Losses on the realisation of investments

(620)

(219)

Unrealised gains on investments

8,680

5,568

Unrealised losses on the investments

(3,510)

(2,360)

Other relevant gains/(losses)

Investment management expenses

(445)

(2)

Total investment return

34,505

31,601

Transferred to the technical account from the non-technical account

34,505

31,601

Average funds available for investment by currency

2025$000

2024$000

(Restated)

United States dollars

833,557

661,222

Canadian dollars

22,766

18,110

Australian dollars

7,542

8,000

Analysis of the financial year investment yield by currency

2025%

2024%

(Restated)

United States dollars

4.07

4.42

Canadian dollars

1.75

6.21

Australian dollars

1.37

1.89

“Average fund” is the average of bank balances, overseas deposits and investments held at the end of each month during the financial year. For this purpose, investments are revalued at month-end market prices, which include accrued income where appropriate.

7.FINANCIAL INVESTMENTS

Carrying value

Cost

2025$000

2024$000

2025$000

2024$000

(Restated)

Shares and other variable yield securities and units in unit trusts

11,002

8,270

11,002

8,270

Debt securities and other fixed income securities

1,027,1744

939,384

1,008,810

926,274

Loans and deposits with credit institutions

87,554

86,556

87,554

86,556

Total financial investments

1,125,7300

1,034,210

1,107,366

1,021,100

Deposits with credit institutions are restricted assets held as cash with credit institutions to support letters of credit.

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

2025$000

2024$000

(Restated)

Financial assets measured at fair value through profit or loss

1,038,176

947,654

Financial assets measured at amortised cost

87,554

86,556

Total financial investments

1,125,730

1,034,210

The following table shows financial investments recorded at fair value analysed between the three levels in the fair value hierarchy.

2025

Level 1$000

Level 2$000

Level 3$000

Assets held at amortised cost

Total$000

Shares and other variable yield securities and units in unit trusts

11,002

Debt securities and other fixed income securities

607,878

419,296

1,027,174

Loans and deposits with credit institutions

87,554

Total financial investments

618,880

419,296

87,554

1,125,730

2024 (Restated)

Level 1$000

Level 2$000

Level 3$000

Assets held at amortised cost

Total$000

Shares and other variable yield securities and units in unit trusts

8,270

Debt securities and other fixed income securities

520,316

419,068

939,384

Loans and deposits with credit institutions

86,556

Total financial investments

528,586

419,068

86,556

1,034,210

Included in the level 1 category are 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 syndicate pricing service or regulatory agency and those prices represent actual and regularly occurring market transactions on an arm’s length

Included in the level 2 category are 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.

Included in the level 3 category, are 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. The syndicate does not currently hold any level 3 assets.

8.DEBTORS ARISING OUT OF DIRECT INSURANCE OPERATIONS

2025$000

2024$000

(Restated)

Due within one year: intermediaries

Due after one year: intermediaries

Total

9.DEBTORS ARISING OUT OF REINSURANCE OPERATIONS

2025$000

2024$000

(Restated)

Due within one year

Due from ceding insurers and intermediaries under reinsurance business

632,187

638,942

Due from reinsurers and intermediaries under reinsurance contracts ceded

13,991

13,988

646,178

652,930

Due after one year

Due from ceding insurers and intermediaries under reinsurance business

6,590

Total

646,178

659,520

10.OTHER DEBTORS

2025$000

2024$000

(Restated)

Inter syndicate balances

1,135

925

Other

22,322

19,174

Total

23,457

20,099

11.DEFERRED ACQUISITION COSTS

The table below shows changes in deferred acquisition costs assets from the beginning of the period to the end of the period:

2025

2024

(Restated)

Gross$000

Reinsurance$000

Net$000

Gross$000

Reinsurance$000

Net$000

Balance at 1 January

51,205

(15,416)

35,789

53,362

(16,956)

36,406

Incurred deferred acquisition costs

(8,497)

2,655

(5,842)

(1,833)

(1,313)

(3,146)

Foreign exchange movements

328

(373)

(45)

2,853

2,867

Other

(80)

(338)

Balance at 31 December

42,956

(13,134)

29,822

51,205

(15,416)

35,789

The reinsurance DAC listed above is disclosed under accruals and deferred income on the balance sheet.

12.CLAIMS DEVELOPMENT

The tables following 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.

In settling claims provisions, the syndicate gives consideration to the probability and magnitude of future experience being more adverse than assumed and exercises a degree of caution in setting reserves where there is considerable uncertainty. In general, the uncertainty associated with the ultimate claims experience in an underwriting year is greatest when the underwriting year is at an early stage of development and the margin necessary to provide the necessary confidence in the provision’s adequacy is relatively at its highest. As claims develop, and the ultimate cost of claims becomes more certain, the relative level of margin maintained should decrease. However, due to the uncertainty inherent in the estimation process, the actual overall claim provision may not always be in surplus.

Gross insurance contract outstanding claims provision as at 31 December 2025

2021

2022

2023

2024

2025

Total

Pure underwriting year

$000

Estimate of gross claims

at end of underwriting year

317,290

586,514

123,843

806,623

210,210

one year later

389,804

645,636

147,325

926,310

two years later

376,581

654,331

124,545

three years later

370,975

601,106

four years later

379,325

Estimate of gross claims reserve

379,325

601,106

124,545

926,310

210,210

2,241,496

Less gross claims paid

(292,696)

(453,869)

(49,131)

(551,108)

(95,428)

(1,442,232)

Gross claims reserve

86,629

147,237

75,414

375,202

114,782

799,264

Net insurance contract outstanding claims provision as at 31 December 2025:

2021

2022

2023

2024

2025

Total

Pure underwriting year

$000

Estimate of net claims

at end of underwriting year

140,481

266,634

99,305

665,517

168,871

one year later

188,798

303,711

119,614

758,605

two years later

181,758

308,926

102,939

three years later

177,418

217,570

four years later

146,423

Estimate of net claims reserves

146,423

217,570

102,939

758,605

168,871

1,394,408

Less net claims paid

(119,792)

(173,887)

(43,369)

(445,608)

(76,508)

(859,164)

Net claims reserve

26,631

43,683

59,570

312,997

92,363

535,244

13.TECHNICAL PROVISIONS

The table below shows changes in the insurance contract liabilities and assets from the beginning of the period to the end of the period.

2025

2024

(Restated)

Gross provisions$000

Reinsurance

Assets$000

Net$000

Gross provisions$000

Reinsurance

Assets$000

Net$000

Claims outstanding

Balance at 1 January

1,191,762

(300,987)

890,775

569,087

(237,663)

331,424

Claims paid during the year

(658,420)

164,217

(494,203)

(207,105)

70,939

(136,166)

Expected cost of current year claims

515,493

(101,412)

414,081

890,889

(159,402)

731,487

Change in estimates of prior year provisions

(254,128)

(37,461)

(291,589)

(58,035)

12,910

(45,125)

Foreign exchange movements

4,557

(1,015)

3,542

(3,237)

24,426

21,189

Other

12,638

163

(12,197)

(12,034)

Balance at 31 December

799,264

(264,020)

535,244

1,191,762

(300,987)

890,775

2025

2024

(Restated)

Gross provisions$000

Reinsurance

Assets$000

Net$000

Gross provisions$000

Reinsurance

Assets$000

Net$000

Unearned premiums

Balance at 1 January

222,245

(115,397)

106,848

245,995

(86,938)

159,057

Premiums written during the year

1,191,486

(525,116)

666,370

1,368,915

(439,551)

929,364

Premiums earned during the year

(1,218,449)

515,249

(703,200)

(1,390,841)

408,861

(981,980)

Foreign exchange movements

1,249

(177)

1,072

(1,824)

292

(1,532)

Other

1,022

1,939

Balance at 31 December

196,531

(124,419)

72,112

222,245

(115,397)

106,848

Other relates to an opening balance sheet adjustment for Syndicate 6117 closed year 2022 RITC into Syndicate 1910 at 31 December 2024 (2024: Syndicate 6117 2021 closed year 2021 RITC into Syndicate 1910 at 31 December 2023).

14.CREDITORS ARISING OUT OF REINSURANCE OPERATIONS

2025$000

2024$000

(Restated)

Due within one year

288,197

180,838

Due after one year

228,271

204,212

Total

516,468

385,050

Effective 1 January 2025, Syndicate 1910 entered into a Legacy Portfolio Transfer (LPT) covering 52.6% of the 2022 and prior year of account reserves, for an initial premium of $133.6m.

As at 31 December 2025, $19.4m is due within one year (2024: $Nil), with a further $94.3m due after one year (2024: $Nil).

15.OTHER CREDITORS

2025$000

2024$000

(Restated)

Related party balances

55,806

63,039

Other liabilities

899

Total

56,705

63,039

Please see Note

for further information relating to balances with related parties.

16.CASH AND CASH EQUIVALENTS

2025$000

2024$000

(Restated)

Cash at bank and in hand

61,108

53,751

Deposits with credit institutions

11,002

8,269

Total cash and cash equivalents

72,110

62,020

Only 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. Total cash and cash equivalents include a balance of $6.0m (2024: $3.8m) of restricted cash that is held in regulated trust funds to support the premiums written in regulated jurisdictions.

17.ANALYSIS OF NET DEBT

At 1 January 2025

Cash flows

Acquired

Fair value and exchange movements

Non-cash changes

At 31 December 2025

$000

Cash and cash equivalents

62,020

7,028

3,062

72,110

Total

62,020

7,028

3,062

72,110

18.OTHER ASSETS

2025$000

2024$000

(Restated)

Overseas deposits in Australia

2,877

3,201

Overseas deposits in Hong Kong

9,121

25,628

Overseas deposits in South Africa and other countries

2,532

2,242

Total

14,530

31,071

19.RELATED PARTIES

Lloyd’s market regulations require that a managing agent is responsible for employing the underwriting staff and managing the affairs of each syndicate at Lloyd’s on behalf of the syndicate members. The managing agent of Syndicate 1910 is Ariel Managing Agency Limited (ARMA).

The immediate parent company of ARMA is Ariel Re Services Holdings (No 1355) Limited. Information on Ariel Re Services Holdings (No 1355) Limited and its subsidiaries is available at www.arielre.com

ARMA has provided service and support to Syndicate 1910 in its capacity as managing agent since 10 October 2022.

Members’ expenses include agent’s fees and subscriptions and central guarantee fund contributions. Within the financial statements for the 2025 calendar year, managing agent’s fee of $11.9m (2024: $13.6m) have been included in net operating expenses. As at December 2025, the amount owed to ARMA in respect of managing agency fees were $0.1m (2024: $1.7m).

The Managing Agent does not recharge expenses to the syndicate.

Premium in Syndicate 1910 is obtained via the Managing General Agency (MGA) agreement with ARBL, ARHK and ARUK. Under the MGA agreement, Syndicate 1910 received from ARBL $1,061.4m (2024: $1,189.1m), ARHK $(2.0m) (2024: $7.0m) and ARUK $132.1m (2024: $172.8m) in written premium. ARBL, ARHK and ARUK, as the MGAs, incurs significant cost underwriting business on behalf of Syndicate 1910 and is reimbursed via a coverholder commission of 8.45% for the 2025 year of account and for the 2024 year of account and 8.7% for the 2023 year of account on premiums written. This fee of $100.6m (2024: $115.5m) is included within net operating

expenses under both administrative expenses and acquisition costs. The amount outstanding to coverholders as at 31st December 2025 is $55.7m (2024: $61.4m).

ARMA manages two Special Purpose Syndicates 6117 and 6136. Syndicate 6117 is backed by individual names advised by the members’ agents Hampden, Argenta and Alpha, which has written a whole account quota share of the net premiums, claims and expenses of Syndicate 1910. The net amount of premium ceded with Syndicate 6117 under the whole account quota share was $93.0m (2024: $110.5m). As this quota share reinsurance is placed on a funds withheld basis, the net amount due to 6117 as at 31 December 2025 of $201.4m (2024: $213.4m) will not become payable until the relevant underwriting year closes after 36 months.

Syndicate 6136 is backed by direct corporate members. The net amount of premium ceded with Syndicate 6136 under the quota share was $0.2m (2024: $0.1m). As this quota share reinsurance is placed on a funds withheld basis, the net amount due to 6136 as at 31 December 2025 of $45.5m (2024: $44.1m) will not become payable until the relevant underwriting year closes after 36 months.

These disclosure requirements are in addition to the requirement to disclose key management personnel compensation. This disclosure is given in note

20.DISCLOSURE OF INTERESTS

Ariel Re Managing Agency Limited is the Managing Agent for Lloyd’s Syndicates 1910, 6117 and 6136 and from 1 January 2026 Syndicate 2006.

The financial statements of the Managing Agency can be obtained by application to the Registered Office (see page 4) or downloaded from Companies House.

21.OFF-BALANCE SHEET ITEMS

The syndicate has not been party to any arrangement, which is not reflected in its balance sheet, where material risks and benefits arise for the syndicate.

22.PENSION OBLIGATIONS

Ariel Re Management Services Limited is a service company and fellow group-company of the Managing Agency, which operates a defined contribution pension scheme. Due to the coverholder fee arrangement between ARBL, ARHK and ARUK and the syndicate, pension contributions relating to staff working for Syndicate 1910 are not charged to the syndicate.

23.POST BALANCE SHEET EVENTS

During 2026, the following amounts are proposed to be transferred to the members’ personal reserve fund, in respect of the distribution of the 2023 year of account result.

2023 Year of Account

371,873,847

24.FOREIGN EXCHANGE RATES

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

2025

2024 (Restated)

Start of period rate

End of period

rate

Average

rate

Start of period rate

End of period rate

Average

rate

Sterling

0.80

0.74

0.76

0.79

0.80

0.78

Euro

0.97

0.85

0.89

0.91

0.97

0.92

US dollar

1.00

Canadian dollar

1.44

1.36

1.39

1.32

1.44

1.37

Australian dollar

1.62

1.50

1.55

1.47

1.62

1.52

Japanese Yen

157.52

156.16

149.42

141.54

157.52

151.20

25.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 Prudential Regulatory Authority requirements and resource criteria. The determination of 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 Member’s FAL to meet liquidity requirements or to settle a loss.

Section 2:

Lloyd’s Syndicate 1910

Underwriting Year Accounts

Report of the Directors of the Managing Agent

The directors of the managing agent present their report on the 2023 year of account of Syndicate 1910 as closed at 31 December 2025.

Review of the 2023 year of account

The 2023 year has closed with a 42.2% profit on stamp capacity.

Year of account summary

2023 $000

Stamp capacity Syndicate 1910

882,032

Stamp premium income

719,958

Stamp utilisation – net of 6117

81.6%

Gross premiums written

850,422

Profit for the closed year of account

371,986

Declared profit on stamp – net of 6117

42.2%

A commentary is provided in the annual accounts. Please refer to page 7.

AUDITORS

The syndicate’s auditors, Ernst & Young LLP, have indicated their willingness to continue in the office of syndicate’s auditors.

Approved by the Board of Ariel Re Managing Agency Limited and signed on behalf of the Board:

D Lednor

Director

18 February 2026

Statement of Managing Agent’s responsibilities

The Insurance Accounts Directive (Lloyd’s Syndicates and Aggregate Accounts) Regulations 2008 (“the 2008 Regulations”) require the managing agent to prepare syndicate underwriting year accounts for each syndicate for any underwriting year which is being closed by reinsurance to close at 31 December. These syndicate underwriting year accounts must give a true and fair view of the result of the closed year of account.

In preparing these syndicate underwriting year accounts, the managing agent is required by the Syndicate Accounting Byelaw (No 8 of 2005) (“the Syndicate Accounting Byelaw”), to:

•select suitable accounting policies which are applied consistently and, where there are items which affect more than one year of account, ensure a treatment which is equitable as between the members of the syndicate affected. In particular, the amount charged by way of premium in respect of the reinsurance to close shall, where the reinsuring members and reinsured members are members of the same syndicate for different years of account,

be equitable as between them, having regard to the nature and amount of the liabilities reinsured; take into account all income and charges relating to a closed year of account without regard to the date of receipt or payment;

•make judgements and estimates that are reasonable and prudent; and

•state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in these accounts.

The managing agent is responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the syndicate and enable it to ensure that the syndicate underwriting year accounts comply with the 2008 Regulations and the Syndicate Accounting Byelaw. 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.

Independent auditor’s report to the members of Syndicate 1910 2023 Closed year of account

Opinion

We have audited the syndicate underwriting year accounts for the 2023 year of account of syndicate 1910 (‘the syndicate’) for the three years ended 31 December 2025 which comprise the Statement of Profit or Loss, the Balance Sheet, the Statement of Changes in Members Balances, the Statement of Cash Flows and the related notes 1 to 16, including a summary of 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” and FRS 103 “Insurance Contracts” (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the syndicate underwriting year accounts:

•give a true and fair view of the profit for the 2023 closed year of account;

•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 have been properly prepared in accordance with the Lloyd’s Syndicate Accounting Byelaw (no. 8 of 2005).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the syndicate underwriting year 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 underwriting year accounts in the UK, including the FRC’s Ethical Standard as applied to other entities of public interest, 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.

Emphasis of matter – closure of the 2023 year of account

We draw attention to the Basis of Preparation in Note 1 which explains that the 2023 year of account of syndicate 1910 has closed and all assets and

liabilities transferred to the 2024 year of account by reinsurance to close at 31 December 2025.

As a result, the syndicate underwriting year accounts for the 2023 year of account of syndicate 1910 have been prepared under basis other than going concern.

Our opinion is not modified in respect of this matter.

Other information

The other information comprises the information included in the Annual Report and Accounts, other than the syndicate underwriting year accounts and our auditor’s report thereon. The managing agent is responsible for the other information contained within the Annual Report and Accounts.

Our opinion on the syndicate underwriting year accounts does not cover the other information and, except to the extent otherwise explicitly stated in this 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 underwriting year 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 underwriting year accounts themselves. If, based on the work we have performed, we conclude that there is a material misstatement of the other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where The Lloyd’s Syndicate Accounting Byelaw (no. 8 of 2005) requires us to report to you, if in our opinion:

•the managing agent in respect of the syndicate has not kept adequate accounting records; or

•the syndicate underwriting year accounts are not in agreement with the accounting records.

Responsibilities of the managing agent As explained more fully in the Statement of Managing Agent’s Responsibilities set out on page 46, the managing agent is responsible for the preparation of the syndicate underwriting year accounts in accordance with The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 and The

Lloyd’s Syndicate Accounting Byelaw (no. 8 of 2005) 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 the syndicate underwriting year accounts that are free from material misstatement, whether due to fraud or error.

In preparing the syndicate underwriting year accounts, the managing agent is responsible for assessing the syndicate’s ability to realise its assets and discharge its liabilities in the normal course of business, disclosing, as applicable, any matters that impact its ability to do so.

Auditor’s responsibilities for the audit of the syndicate underwriting year accounts

Our objectives are to obtain reasonable assurance about whether the syndicate underwriting year 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 underwriting year accounts.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Our approach was as follows:

•We obtained a general understanding of the legal and regulatory frameworks that are applicable to the syndicate and determined that the most significant are direct laws and regulations related to elements of Lloyd’s Byelaws and Regulations, and the financial reporting framework (UKGAAP) and requirements referred to by Lloyd’s in the Instructions. Our considerations of other laws and regulations that may have a material effect on the syndicate underwriting year accounts included permissions and supervisory requirements of Lloyd’s of London, the Prudential Regulation

Authority (‘PRA’) and the Financial Conduct Authority (‘FCA’).

•For direct laws and regulations, we considered the extent of compliance with those laws and regulations as part of our procedures on the related syndicate underwriting year accounts’ items.

•For both direct and other laws and regulations, our procedures involved: making enquiries of the directors of the managing agent and senior management for their awareness of any non-compliance of laws or regulations, enquiring about the policies that have been established to prevent non-compliance with laws and regulations by officers and employees, enquiring about the managing agent’s methods of enforcing and monitoring compliance with such policies, and inspecting significant correspondence with Lloyd’s, the FCA and the PRA.

•We assessed the susceptibility of the syndicate’s underwriting year accounts to material misstatement, including how fraud might occur by considering the controls that the managing agent has established to address risks identified by the managing agent, or that otherwise seek to prevent, deter, or detect fraud. We also considered areas of significant judgement, and the impact these have on the control environment. Where this risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included testing manual journals and were designed to provide reasonable assurance that the syndicate underwriting year accounts were free from material misstatement due to fraud or error.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at

https://www.frc.org.uk/auditorsresponsibiliti

. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the syndicate’s members, as a body, in accordance with The Lloyd’s Syndicate Accounting Byelaw (no. 8 of 2005) and 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.

Angus Millar (Senior statutory auditor)

for and on behalf of Ernst & Young LLP, Statutory Auditor

London

18 February 2026

Statement of profit or loss 2023 Year of Account

For the three years ended 31 December 2025

Note

2023

year of account$000

Technical account – general business

Earned premiums, net of reinsurance

Gross premiums written

850,422

Outward reinsurance premiums

(372,632)

Earned premiums, net of reinsurance

477,790

Reinsurance to close premium received, net of reinsurance

211,913

Allocated investment return transferred from the non-technical account

34,116

Claims incurred, net of reinsurance

Claims paid

Gross amount

(153,818)

Reinsurers’ share

91,057

Net claims paid

(62,761)

Reinsurance to close premium payable, gross amount

(309,278)

Reinsurance recoveries anticipated on the reinsurance to close premium payable

179,395

Reinsurance to close premium payable, net of reinsurance

(129,883)

Claims incurred, net of reinsurance

(192,644)

Net operating expenses

Acquisition costs

(108,792)

Administrative expenses

(38,256)

Personal expenses

(13,039)

Net operating expenses

(160,087)

Balance on the technical account for general business

371,088

Statement of profit or loss 2023 Year of Account (cont.)

For the three years ended 31 December 2025

Note

2023

year of account$000

Non-technical account

Balance on the technical account for general business

371,088

Profit on exchange

898

Investment income

21,216

Realised gains on investments

6,736

Realised losses on investments

(393)

Unrealised gains on investments

9,484

Unrealised losses on investments

(2,675)

Investment expenses and charges

(252)

Total investment return

34,116

Allocated investment return transferred to the technical account for general business

(34,116)

Profit for the closed year of account

371,986

There are no recognised gains or losses in the accounting period other than those dealt with in the statement of profit or loss and so no statement of other comprehensive income has been prepared.

Balance sheet 2023 Year of Account

As closed at 31 December 2025

Note

2023 year of account $000

Assets

Financial Investments

665,427

Debtors

Debtors arising out of direct insurance operations

–

Debtors arising out of reinsurance operations

51,796

Other debtors

8,401

60,197

Reinsurance recoveries anticipated on gross reinsurance to close premium payable

211,995

Cash at bank and in hand

31,846

Other assets

9,216

Prepayments and accrued income

8,138

Total assets

986,819

Liabilities

Amounts due to members

371,874

Reinsurance to close premium payable, gross amount

349,024

Creditors

Creditors arising out of direct insurance operations

–

Creditors arising out of reinsurance operations

243,816

Other creditors including taxation and social security

13,319

257,135

Accruals and deferred income

8,786

Total liabilities

986,819

Approved by the Board of Ariel Re Managing Agency Limited on 18 February 2026 and signed on its behalf by:

N Gokhool

Director

D M Lednor

Director

Statement of Changes in Members’ Balances

2023 Year of Account

2023 year of account $000

Profit for the 2023 closed year of account

371,986

Members’ agents’ fees

(112)

Amounts due to members at 31 December 2025

371,874

Statement of Cash Flows 2023 Year of Account

for the 36 months ended 31 December 2025

2023 year of account $000

Cash flows from operating activities

Profit on ordinary activities

371,986

Increase in debtors, prepayments and accrued interest

(103,480)

Increase in creditors

181,891

Investment return

(34,116)

Non-cash consideration for net RITC receivable

(211,913)

Foreign exchange on net RITC receivable

–

Net RITC premium payable

137,030

Net cash inflow from operating activities

341,398

Cash flows from investing activities

Purchase of financial instruments

(4,349,945)

Sale of financial instruments

4,003,304

Investment income received

34,116

Foreign exchange

–

Overseas deposits received

10,995

Net cash outflow from investing activities

(301,530)

Cash flows from financing activities

Members’ agents’ fees paid on behalf of members

(112)

Net cash outflow from financing activities

(112)

Net increase in cash and cash equivalents

39,756

Cash and cash equivalents at 1 January 2023

–

Cash and cash equivalents at 31 December 2025

39,756

Cash at bank and in hand

31,846

Short term deposits with credit institutions

7,910

Cash and cash equivalents at 31 December 2025

39,756

Notes to the Underwriting Year Accounts

For the 2023 closed year of account at 31 December 2025

1.ACCOUNTING POLICIES

STATEMENT OF COMPLIANCE

The syndicate underwriting year accounts have been prepared under the 2008 Regulations and in accordance with the Syndicate Accounting Byelaw (No.8 of 2005) and applicable accounting standards in the United Kingdom. Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (FRS 102), Financial Reporting Standard 103 ‘Insurance Contracts’ (FRS 103) and in accordance with the provision of Schedule 3 of the Large and Medium sized Companies and Groups (Accounts and Reports) Regulations relating to insurance companies have been applied to the extent that they are relevant for a proper understanding of the underwriting year accounts.

The 2023 year of account has closed and all assets and liabilities have been transferred to the 2024 year of account of Syndicate 1910. The risks that it is exposed to in respect of the reported financial position and financial performance are significantly less than those relating to the open years of account as disclosed in the Syndicate Annual Accounts. Accordingly, these underwriting year accounts do not have associated risk disclosures as required by section 34 of FRS 102. Full disclosures relating to these risks are provided in the Syndicate Annual Accounts.

BASIS OF PREPARATION

Members participate on a syndicate by reference to a year of account and each syndicate year of account is a separate annual venture. These accounts relate to the 2023 year of account which has been closed by reinsurance to close into 2024 year of account of the syndicate at 31 December 2025. On this basis the 2023 year of account is no longer a going concern.

Accordingly, the underwriting year of accounts have been prepared on the basis of other than going concern. While these syndicate accounts have not been prepared on a going concern basis, there is no impact on the valuation of the assets or liabilities of the syndicate.

Consequently, the balance sheet, representing the assets and liabilities of the 2023 year of

account, and the statement of profit or loss and statement of cash flows reflect the transactions for that year of account during the 36 month period until closure.

The financial statements for the period ended 31 December 2025 were approved for issue by the board of directors on 18 February 2026.

The functional currency of the syndicate is US dollars, and the financial statements are presented in US dollars rounded to the nearest $1,000 unless otherwise stated.

As each syndicate year of account is a separate annual venture, there are no comparative figures.

JUDGEMENT AND KEY SOURCES OF ESTIMATION AND UNCERTAINTY

Premiums written

Estimates are made for pipeline premiums, including amounts due to the syndicate not yet notified. The main assumption underlying these estimates is that past premium development can be used to project future premium development.

Claims incurred and reinsurers’ share

The reinsurers’ share of provisions for claims is based on calculated amounts of outstanding claims and projections for IBNR, net of estimated irrecoverable amounts. The syndicate will evaluate the reinsurance programme in place for the class of business, the claims experience for the year, and the security rating of the

reinsurance companies involved. The syndicate uses a number of statistical techniques to assist in these estimates.

The assessment of these provisions can be the most subjective aspect of an insurer’s accounts and may result in greater uncertainty than found within the financial statements of other businesses. The directors of the managing agent consider that the provisions for gross claims and related reinsurance recoveries are fairly stated on the basis of the information currently available. However, ultimate liability can be varied by further information and events and this may result in significant adjustments to the provisions. Modifications to claims provisions established in prior years are shown in the financial statements for the period in which the adjustments are made. Provisions are not discounted for investment earnings that may arise on funds retained to meet future liabilities. The methods used, and the estimates made, are reviewed regularly.

Fair value of financial assets

The syndicate uses the following hierarchy for determining the fair value of financial instruments by valuation technique:

a.Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.

b.Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.

c.Level 3: techniques which use inputs which have a significant effect on the recorded fair value that

are not based on observable market data. See note 8 for details of financial instruments classified by fair value hierarchy.

BASIS OF ACCOUNTING

Underwriting transactions

The underwriting accounts for each year of account are normally kept open for three years before the result on that year is determined. At the end of three years, outstanding liabilities can normally be estimated with sufficient accuracy to permit the year to be closed by payment of a reinsurance to close premium, usually to the successor year of account.

The reinsurance to close premium is determined by reference to outstanding technical provisions, (including those for outstanding claims and unexpired risks) relating to the closed year and to all previous closed years reinsured therein.

Although this estimate of net outstanding liabilities must be fair and reasonable, it is implicit in the procedure that ultimate liabilities will differ from the premium so determined. The reinsurance to close premium transfers liability in respect of all claims, reinsurance premiums, return premiums and other payments for the closing year (and previous closed years reinsured therein) to the members of the reinsuring syndicate. It also gives members of the reinsuring syndicate the benefit of refunds, recoveries, premiums due and other income insofar as they have not been credited previously.

Gross premiums are allocated to years of account on the basis of the inception date of the policy. Commission and brokerage are charged to the year of account to which the relevant policy is allocated. Policies written under binding authorities, lineslips or consortium arrangements are allocated to the year of account into which the arrangement incepts. Additional and return premiums follow the year of account of the original premium. Premiums are shown gross of brokerage payable, and exclude taxes and duties levied on them.

Outward reinsurance premiums ceded are attributed to the same year as the original risk being protected.

Gross claims paid are allocated to the same year of account where the corresponding premiums are allocated and include internal and external claims settlement expenses. Notified claims are estimated on a case by case basis as reported, with regard to any information available from loss

adjusters, and previous experience of the cost of settling claims with similar characteristics. Reinsurance recoveries are allocated to the year of account to which the claim was charged.

Financial Investments and investment return

Investments are stated at current value as at the balance sheet date. For this purpose, listed investments and overseas deposits are stated at market value and deposits with credit institutions are stated at amortised cost. Unlisted investments for which a market exists are stated at the average price at which they are traded on the balance sheet date or the last trading day before that date.

Investment return is wholly allocated to the general business technical account.

Income (including interest accrued at the time of purchase, sale or revaluation of fixed interest securities) and realised and unrealised capital appreciation are allocated to underwriting accounts in proportion to average balances on each underwriting account for the financial year.

Overseas deposits

Overseas deposits are stated at market value as at the balance sheet date. The cost of investments held within these deposits is determined either on the same basis as syndicate investments, or on a basis of notification received from Lloyd’s.

Taxation

The result for a closed year, net of personal expenses, is accounted to Names and members’ agents, on behalf of the underwriting members for whom they act.

Under Schedule 19 of the Finance Act 1993 managing agents are not required to deduct basic rate income tax from trading income of the syndicate. Managing agents can recover UK basic rate income tax deducted from syndicate investment income, and consequently any distribution to members or members’ agents is gross of tax. Capital appreciation falls within trading income and will also be distributed gross of tax. It remains the responsibility of underwriting members to agree their personal tax liabilities with the Inland Revenue.

All payments on account of United States and Canadian federal income tax, pending receipt of final assessments and reimbursements by Lloyd’s, are included in the balance sheet under the heading of other debtors. It is the personal responsibility of members resident in the United

States or Canada, to agree and settle their United States or Canadian taxation liabilities. Members resident in other countries for tax purposes are responsible for agreeing and settling any tax liabilities with the taxation authorities of their country of residence.

Syndicate operating expenses

Syndicate operating expenses are allocated to the year of account for which they are incurred. Syndicate operating expenses include acquisition costs, profit and loss on exchange, and amounts charged to members through the syndicate.

Members’ standard personal expenses are included in net operating expenses and include Lloyd’s subscriptions, Central Fund contributions, Managing Agent’s fees and profit commission.

Ariel Re Bermuda Limited (“ARBL”), Ariel Re Hong Kong (“ARHK”) and Ariel Re UK Limited (“ARUK”), as Managing General Agencies (MGAs), incur significant cost underwriting business on behalf of Syndicate 1910 and are reimbursed via a coverholder commission of 8.7% on premiums written. This fee is included within net operating expenses under both administrative expenses and acquisition costs.

Acquisition costs, comprising commission and other costs related to the acquisition of new insurance contracts, are recognised by reference to premium written. They are deferred to the extent that they are attributable to and recoverable against premiums unearned at the balance sheet date. All other operating expenses are accounted for on an accruals basis.

Pension costs

Profit commission

Profit commission is not charged by the Managing Agent.

Insurance debtors and creditors

Notes 9 and 13 show the totals of all the syndicate’s outstanding debit and credit transactions as processed by Velonetic. No account has been taken of any offsets which may be applicable in calculating the net amounts due between the syndicate and each of its

counterparty insureds, reinsurers or intermediaries as appropriate.

Basis of currency translation

Transactions in Canadian, Australian dollars, Euros, Sterling and Japanese yen are translated at average rates of exchange for each financial year as a proxy for transaction rates. The exception to this is that the reinsurance to close receivable and payable are translated at the transaction rates of exchange ruling at the effective dates of the contracts. Underwriting transactions denominated in other foreign

currencies are included at the rate of exchange ruling at the date the transaction is processed.

Monetary assets and liabilities are retranslated into US dollars at the rate of exchange at the balance sheet date unless contracts to sell currency for US dollars have been entered into prior to the year end, in which case the contracted rates are used. Any differences are included in profit and loss on exchange.

2.SEGMENTAL ANALYSIS

An analysis of the technical account balance before investment return is set out below:

Gross premiums written and earned $000

Gross claims incurred $000

Gross operating expenses $000

Reinsurance balance $000

Total $000

Direct insurance:

Fire and other damage to property

6,700

(766)

1,897

(4,856)

2,975

Other

2,823

(7,167)

(1,056)

760

(4,640)

9,523

(7,933)

841

(4,096)

(1,665)

Reinsurance acceptances

1,224,442

(455,164)

(181,702)

(248,041)

339,535

Technical result before investment income

1,233,965

(463,097)

(180,861)

(252,137)

337,870

Reinsurance acceptances include the reinsurance to close premium of $383.5m (Gross) received from the 2022 year of account.

The reinsurance balance includes reinsurance commission receivable. Gross operating expenses are different to net operating expenses shown in the statement of profit or loss as commissions in respect of outward reinsurance were received and netted off in arriving at the net operating expenses. Members’ agents’ fee is also included in net operating expenses.

All premiums written are for contracts concluded in the UK.

The analysis of gross premiums (excluding RITC received) by geographical area is as follows:

Europe Union Member States

Rest of the World

Total

$000

644,871

54,433

19,191

131,927

850,422

3.REINSURANCE PREMIUM RECEIVED TO CLOSE THE 2022 AND PREVIOUS YEARS OF ACCOUNT

2023 year of account $000

Gross reinsurance to close received

383,542

Reinsurance recoveries anticipated

(171,629)

Reinsurance to close premium received, net of reinsurance

211,913

4.REINSURANCE PREMIUM PAYABLE TO CLOSE THE 2023 YEAR OF ACCOUNT

2023 year of account $000

Gross outstanding claims

53,588

Reinsurance recoveries anticipated

(28,650)

Net outstanding claims

24,938

Provision for gross claims incurred but not reported

255,690

Reinsurance recoveries anticipated

(150,745)

Provision for net claims incurred but not reported

104,945

Claims handling provision

Reinsurance to close premium payable, net of reinsurance

129,883

Unearned premiums

39,746

Unearned premiums – Reinsurers’ share

(32,600)

Net premium for reinsurance to close

137,029

Certain Clean Energy and Mortgage risks have exposure which is greater than 36 months. The premiums and associated liabilities for these risks have been included within the RITC premium to close the year of account.

5.TECHNICAL ACCOUNT BALANCE BEFORE ALLOCATED INVESTMENT RETURN AND NET OPERATING EXPENSES

2023 year of account $000

Balance excluding investment return and operating expenses, other than acquisition costs

Profit attributable to business allocated to the 2023 pure year of account

375.111

Profit attributable to business reinsured into the 2023 year of account

13,156

388,267

Allocated investment return transferred from the non-technical Account

34,116

Net operating expenses other than acquisition costs

(50,397)

Profit for the 2023 closed year of account

371,986

6.NET OPERATING EXPENSES

2023 year of account $000

Brokerage and commission

108,396

Reinsurers’ commissions and profit participation

(21,673)

Other acquisition costs

22,069

Acquisition costs

108,792

Administrative expenses excluding personal expenses

38,256

Personal expenses

–

Lloyd’s central fund contributions

2,985

Lloyd’s subscriptions

3,111

Managing agents’ fees

6,943

Managing agents’ profit commission

–

Personal expenses

13,039

Total

160,087

Administrative expenses include:

Audit of the syndicate underwriting accounts

693

Other services pursuant to legislation and Lloyd’s Byelaws

–

Total

693

7. NET INVESTMENT INCOME AND EXPENSES

2023 year of account $000

Income from investments

21,216

Gains on realisation of investments

6,736

Losses on realisation of investments

(393)

Unrealised gains on investments

9,484

Unrealised losses on investments

(2,675)

Investment management expenses, including interest

(252)

Total

34,116

For further information regarding investment income and average funds, please refer to note 6 of the annual accounts.

8.INVESTMENTS

2023 year of account

Market value $000

Cost $000

Shares and other variable yield securities and units in unit trusts

7,910

Debt securities and other fixed income securities

569,963

559,773

Loans with credit institutions

–

Held at amortised cost

Deposits with credit institutions

87,554

Total

665,427

655,237

The following table shows financial investments recorded at fair value analysed between the three levels in the fair value hierarchy.

Level 1 $000

Level 2 $000

Level 3 $000

Total $000

Shares and other variable yield securities and units in unit trusts

7,910

–

7,910

Debt securities and other fixed income securities

337,302

232,661

–

569,963

Total

345,212

232,661

–

577,873

9.DEBTORS ARISING OUT OF REINSURANCE OPERATIONS

2023 year of account

$000

Due within one year

Due from ceding insurers and intermediaries under reinsurance business

43,604

Due from reinsurers and intermediaries under reinsurance contracts ceded

8,192

51,796

Due after one year

Due from ceding insurers and intermediaries under reinsurance business

–

Total

51,796