Accounts disclaimer
Important information about Syndicate Reports and Accounts Access to this document is
restricted to persons who have given the certification set forth below. If this document has been
forwarded to you and you have not been asked to give the certification, please be aware that you
are only permitted to access it if you are able to give the certification. The syndicate reports and
accounts set forth in this section of the Lloyd’s website, which have been filed with Lloyd’s in
accordance with the Syndicate Accounting Byelaw (No. 8 of 2005), are being provided for
informational purposes only. The syndicate reports and accounts have not been prepared by
Lloyd’s, and Lloyd’s has no responsibility for their accuracy or content. Access to the syndicate
reports and accounts is not being provided for the purposes of soliciting membership in Lloyd’s
or membership on any syndicate of Lloyd’s, and no offer to join Lloyd’s or any syndicate is being
made hereby. Members of Lloyd’s are reminded that past performance of a syndicate in any
syndicate year is not predictive of the related syndicate’s performance in any subsequent
syndicate year. You acknowledge and agree to the foregoing as a condition of your accessing the
syndicate reports and accounts. You also agree that you will not provide any person with a copy
of any syndicate report and accounts without also providing them with a copy of this
acknowledgment and agreement, by which they will also be bound
Confidential
Confidential
For the year ended 31 December 2025
2
Confidential
Confidential
Directors and administration
3
Inigo CEO’s statement
5
Report of the directors of the Managing Agent
10
Statement of Managing Agent’s directors’ responsibilities
21
Independent auditor’s report to the members of Syndicate 1301
22
Income statement: technical account – general business
27
Income statement: non -technical account
28
Statement of financial position: assets
29
Statement of financial position: liabilities
30
Statement of change in members‘ balances
31
Statement of cash flows
32
Notes to the financial statements
33
Contents
3
Confidential
Confidential
Directors and administration
Directors -
the directors named below held office during the year and up to the date of
signing the annual accounts
H Davies
Non-Executive, Chairman
R Watson
Chief Executive Officer
A Bowe
Non-Executive
S Bridges
Chief Financial Officer
S Cifelli
Non-Executive
R Merrett
Chief Underwriting Officer
J Dean
Non-Executive
V Hartley
Chief Risk Officer
T Hanford
Non-Executive (resigned 2
February 2026)
R Thornberry
Non-Executive (appointed 2
February 2026)
Managing Agent ’s secretary
C Barrett
Managing agent
Inig o Managing Agent Limited
4
Confidential
Confidential
Directors and administration
Managing Agent ’s registered office
25 Fenchurch Avenue , London, EC3 M 5AD, United Kingdom
Managing Agent ’s registered number
08039754
Syndicate active underwriter
R Merrett
Syndicate bankers
Citibank, Barclays, Royal Bank of Canada
Syndicate investment managers
BlackRock Investment Management (UK) Ltd, Payden & Rygel Global
Limited , Wellington Management
Syndicate registered auditor
KPMG LLP
Syndicate consulting actuary
KPMG LLP
Directors' interests
None of the directors of the Managing Agent have any participation
in the Syndicate's premium income capacity.
5
Confidential
Confidential
A natural evolution
2025 saw the fifth year of Inigo being in business and one of the most critical achievements so far, in the
replacement of our private equity investors, with permanent capital. I have loved working with our private
equity investors; they have been knowled geable, supportive, wise and good fun. They were never going to be
the long -term capital we needed for our business , but they backed us when we had no more than ambition and
a plan. I am grateful for their taking a risk on us.
I was delighted in September 2025 to announce the acquisition of Inigo, by Radian Group Inc.
We wished for several things when we assessed future partners:
• A strong balance sheet
• A partner who valued good underwriting as the key to shareholder value
• Someone for whom customer engagement was a priority and who talked about the customer
• Someone who valued good analytics as a differentiator
• No clash of business lines or distribution strategy
• Someone who valued both insurance and reinsurance
• A capital efficient partner
• A culture we could recognise. This was the most critical one.
We had high hopes, but it did feel like we might be looking for the proverbial unicorn.
Our first meeting with Rick and his Radian team, was a lightbulb moment, where the business logic and cultural
match, was screaming at us both. We didn’t have to compromise on our wish list.
We will remain an independent brand, continuing our story, but we now have all the benefits, and
responsibilities, of a bigger balance sheet, traded on the NYSE.
Our commitment to our customers, and their brokers, continue s. We will be here to offer views, knowledge,
and a desire to learn together on the back of a successful trading relationship.
I am over the moon, to have found Radian and be partnering in building a business together.
A reminder of what we do
1. We are very focused. We do a limited number of things, but we try to do them really
well. It’s about specialising in the core classes of insurance and reinsurance our customers really value,
and having both technical expertise, and a leadership position in the market. We don’t want to be a
generalist.
2. We are really good at collecting and analysing data. We love data, and we love pulling it apart, to help our
customers understand the risks they face, and to improve our underwriting.
2. We try to engage really proactively with our customers. We have a number of programs designed to
encourage them to spend time with us, talking about their business and the risks they face; in turn, we
are completely transparent about how we underwrite and price that risk. We have much to learn together.
4. We maintain a culture that attracts and retains highly talented people, who are keen to learn, and who
collaborate with each other . We really value our culture; we work very hard to get it right ; we talk about it;
we measure it; we do our best to live up to it every day.
I am confident that this approach works. I am confident that it works whether you are Inigo today, or Inigo in
10 years’ time. If we do this well, we will deliver a strong financial performance that drives shareholder value,
builds a great brand, and giv es our customers the security they need.
Inigo CEO ’s statement Inigo CEO ’s statement
6
Confidential
Confidential
What did we achieve in 202 5?
Financial performance
We wrote $1,569. 7m of gross written premium and , despite the horrific fires in Southern California, finished
the year with a net combined ratio of 80. 7% and a profit for the year of $ 299.9 m, reflecting strong underlying
profitability, effective risk selection and disciplined portfolio management. Our performance
also benefited from strong investment income, favourable prior year development, as claims continued
to emerge more favourably than initial estimates, and by how quiet the rest of the catastrophe year was
outside the California wildfires.
Growth this year was selective and deliberate. We entered reinsurance casualty where we see long term
opportunity, we expanded our International Property Direct & Facultative ( D&F ) and General
Liability offerings and we continued to build out our Auto Liability book. In all these areas, our approach
remained consistent: securing the right risks on the right terms, supported by experienced underwriting teams
and a focus on technical excellence.
Customer engagement
Since day one, we have always had the ambition that we would put the customer at the centre of everything
we do. We don’t want the purchase of insurance to be simply a transaction – we think there is the
opportunity for it to be so much more than this.
A finite number of our customers drive a material proportion of our premium. We want to make sure
these customers feel that Inigo will be a core partner for them over the long term.
Given this, we launched our customer program in 2025 – Inigo Horizon.
We onboarded 25 clients to the Horizon program in 2025 and I was delighted with how successful it has been. I
have been working in the industry for almost 40 years, and I’ve never seen a better example of a customer -
led initiative than this one.
As part of the Horizon program, we hosted 12 clients in our offices for our INFORM (Internship for Risk
Managers) week-long immersive experience, delivered across two intakes. Clients worked alongside our
underwriting, catastrophe modelling, pricing and cl aims teams, gaining a full 360 -degree view of Inigo. For
that week, they became part of our business and part of our culture. We learned together, challenged each
other, and deepened our collective understanding of risk .
We also hosted our first Annual Horizon Risk Leadership Event, attended by 25 clients. We ran a hackathon
built around real client issues , we explored complex challenges and focused on data -led insight and practical
action. We were joined by external experts, including members of the Lloyd’s management team, and
representatives from our key reinsurers who provide the capacity our customers rely on.
We complemented this with individual Insight Packs, demonstrating the value of transparency and our data
and analytics. All 25 Horizon clients received this detailed 100 page plus pack in 2025. These were highly
regarded by our clients. As part of the annu al event, we asked clients what else they wanted from us. The ask
was a straightforward one – make the insight pack a digital platform that they could interact
with. By mid 2026, we are targeting the first iteration of this digital interface to give our c lients even greater
insights.
Inigo CEO ’s statement
7
Confidential
Confidential
What did we achieve in 202 5? (continued)
Customer engagement (continued)
Finally, we are now looking to scale the program. It will more than double in 2026 – we will grow it from 25 to
60 clients, reflecting our confidence in the program and our commitment to deeper relationships and
differentiated value through open, collabora tive engagement.
Data and Analytics
Our continued investment in data & analytics was focused on providing value back to our clients. We expanded
our collection of loss records, engineering reports, and exposure information to help our clients manage their
risk by understanding how they compa re against industry benchmark, a core part of our Horizon program , that
enabled the delivery of the Insight Packs to our first cohort of clients and will form the basis of digitising this
offering to our clients .
Our quest to utilise data to underwrite knowledgably and efficiently continued to mature. We’ve created the
ability to automatically collect over 250 data points from cyber security assessments , leveraging advances in
AI to structure data and summarise observations, which has e nabled a database of 25,000 data points to be
created whilst increasing the speed and accuracy of our Cyber pricing process. We have matured our
collection of Engineering Reports, increasing coverage from 20% to over 80% of risks which are a technical
occupancy in nature, this extends our database to contain additional data points for use in optimising our
portfolio.
During 2026 we will focus on extending the variety of data we capture by structuring data from additional
sources such as loss adjustor reports, dive deeper into correlating loss experience against the unstructured
data we have captured to validate signals of risk, and drive further adoption of AI across our business to not
only leverage efficiency gains but more importantly differentiate by augmenting the knowledge & intelligence
we apply to the assessment of risk.
Catastrophe research
Losses from natural catastrophes are the biggest single driver of losses to our clients. They are also the bi ggest
Driver of Inigo’s capital requirements. This is why we continue to invest in this area. Our in -house team has
continued its prodigious cadence of high -quality analysis. Our technology platform enables us to cascade their
insights through our systems and di rectly impact key decisions on underwriting, hedging and capital
management.
In the last 12 months we have deepened our understanding on many topics, including how climate “whiplash”
played a key role in the January wildfires; how vendor models underestimate the impact of loss mitigation in
large industrial facilities and how stati stical noise is amplified at a local level (and what to do about it!).
We have also continued our work with the University of Cambridge and others to understand how advances in
technology can help us understand the impact of climate change on hurricane frequency – arguably the most
important parameter in our models.
The team has continued to share its knowledge widely. This includes peer review ing scientific
articles, speaking at conferences and playing back our insights to clients through channels such as the
Horizon program and the Visual Capitalist partnership.
Inigo CEO ’s statement
8
Confidential
Confidential
What did we achieve in 202 5? (continued)
Catastrophe research ( continued)
We formed a strategic relationship with Visual Capitalist because of our belief in sharing data for the mutual
benefit of managing risk. Visual Capitalist’s creative flare enables us to share expert predictions whilst
amplifying our brand.
Culture
We set out to create a culture that was unique and values -led to enable the ambition of our
clients, partners and people. I continue to be proud of the people and culture at Inigo and know the alignment
with Radian will ensure we sustain our culture in th e future. At the heart of this culture are four clear values
that shape our purpose and how we work together every day .
Having outgrown our original office, we made the move into 25 Fenchurch Avenue in September and had the
opportunity to be intentional about how our space could reflect our values and culture . The design is vibrant
to encourage creativity and innovation, there are spaces dedicated to our clients and our people
have mores spaces to enable collaboration and learning – whether one to one, across teams or at the
organization -wide level.
We ended the year with the results from the Lloyd’s Culture Survey. It provides us with an anonymous,
colleague view on how we are doing and I was delighted to see the most recent results. We achieved a rating
of ‘Excellent’ overall, putting us in the to p 18% of participating firms. 95% of employees would recommend
Inigo as a great place to work and we outperformed the market on every dimension, with our highest scores in
Accountability, Client Focus, Leadership and Shared Purpose.
Claims
We continue to invest in our Claims team as this remains the defining moment for most of our customers. We
have 15 talented claims professionals ready to respond to our Clients needs when them or their businesses
have been affected. Our Claims team has consistently achieved top decile performance on the four key
Lloyd’s measures, responded to 33,767 claim notifications and paid a total of $1.19bn to our Clients.
The Client -focused approach is underlined by 60 of our top customers having a dedicated claims executive
through Horizon; someone they can directly call and turn to in times of crisis. The Claims exec utive is available
at every touchpoint and on hand to share claims insights or simply be there to swap ideas. We believe this
direct relationship will build credibility and help the claims process run smoothly.
A milestone for Inigo this year was to settle most of our Aviation claims exposures resulting from the Russian
and Ukraine conflict. We also received the support from our own reinsurers in collecting these claims. This has
been a very complex event that th e Market continues to navigate. Our success means that we can enter 2026
without having to be concerned with potentially large and drawn -out ligation and the expensive legal cost that
comes with that.
Inigo CEO ’s statement
9
Confidential
Confidential
The year ahead
We will stick to our core strategy. We will continue to look for growth in our strongest areas, where all of our
analysis points to an adequate margin.
There is a shift in market conditions as competition increases, notably in the short -tail property lines.
There is no surprise in this. When we set -up Inigo, part of the strategy was to design a business that is best
placed to weather these cycles.
We do this in six ways:
1. We make sure all of our decisions are data driven
2. We allocate capital to the lines where we see satisfactory margin
3. We bias the portfolio towards individual risk underwriting, because risk selection is critical as the
market softens – this is not the time to be building an index portfolio
4. We emphasise that value gained through strong underwriting results over time, far outshines the
short term growth agenda
5. We pay attention to our expense ratio, and keep one office and one capital base ; we focus on open
market business and steer away from delegated underwriting when commissions are too high
6. We offer our customers a product they value, not just a “cheapest wins” traded commodity. The work
we do to create a unique engagement with the customer will not defy the pricing cycle but will at least
allow us a constructive conversation and a level of customer support.
This doesn’t mean you stop looking for opportunities to grow. We remain a modest player in a big market, but
growth is a function of selling something customers value, at margins that reflect the risk our capital runs;
it’s not a goal in itself.
The best is yet to come
We have built a very good business together, and I want to thank everyone who has played a part in the first
five years of our business . The next 20 years will be what defines whether we can build a great
business . Great businesse s don’t get built in a few years; it is the consistent application of effort, great
underwriting, dynamic management, and the power of compounding this year -on-year -on-year. It requires a
management team, that thinks creatively, is quick to decide on opportunities and threats, and consistently
executes their plans properly. Inigo has proven its ability to do this, and I have every faith it will continue to do
so.
R Watson
Inigo Chief Executive Officer
Inigo CEO ’s statement
10
Confidential
Confidential
The directors of Inigo Managing Agent Limited (“IMAL”), the Managing Agent for Syndicate 1301 (“the
Syndicate”), present their report for the year ended 31 December 202 5.
Review of the business and principal activities
The Syndicate's principal activity is the transaction of general insurance and reinsurance business in the
United Kingdom at Lloyd's of London .
The Syndicate commenced writing a new portfolio of ins urance and reinsurance risks for the 2021 year of
account under new management through Inigo Corporate Member Limited (ICML) , the corporate member
supporting Syndicate 1301 .
For 2025 and 2024 year s of account, ICML provided 97% of the Syndicate’s capacity, with the remaining 3%
provided by a third party. For 2023 year of account, ICML provided 98.5% of capital, with the remaining 1.5%
provided by a third party. Third -party capital for 202 6 year of account is retained at 3.0%.
On 2 January 2025, ICML transferred all its Funds at Lloyd’s (FAL) to the Protected Cell 16 of London Bridge
2 PCC Limited (Cell 16). Cell 16 deposited the assets with Lloyd’s as FAL on the same date .
The Syndicate trades through the Lloyd’s worldwide licenses and rating platform. It also benefits from the
Lloyd’s brand. Lloyd's has an A + (Superior ) rating from A.M. Best, A A- (Very Strong) rating from Standard &
Poor's and AA - (Very Strong) rating from Fitch.
Results, performance and key performance indicators
2025 has been an exceptional year. It commenced with material losses arising from the California wildfires .
Nevertheless, the global insured catastrophe activity throughout the remainder of the year remained below
the ten-year average. Supported by excellent underwriting and strong investment returns, we delivered a
record profit of $299.9 m (202 4: $163.5 m profit) as th e net combined ratio decreased to 80 .7% (2024 : 87.3 %).
The Syndicate’s key financial performance indicators during the year were as follows:
Report of the directors of the Managing Agent
202 5
$000
202 4
$000
Growth
%
Gross premiums written
1,569,709
1,339,990
17.1%
Net premiums written
1,259,720
1,058,768
19.0%
Gross premiums earned
1,446,363
1,228,331
17.8%
Net premiums earned
1,145,057
957,358
19.6%
Profit for the financial year
299,906
163,523
83.4 %
Net claims ratio
49.7%
57.5%
Net commission ratio
18.2%
18.8%
Net expense ratio
12.8%
11.0%
Net combined ratio
80. 7%
87.3%
11
Confidential
Confidential
Results, performance and key performance indicators (continued)
The Syndicate continued to deliver strong growth, with gross written premiums increasing 17.1% to $1,569.7 m
(202 4: $1,340.0 m).
Gross written premiums in the Insurance segment increased by 22.8 % with growth primarily driven by our
expansion into International Property D&F and International General Liability and the continued growth of our
Auto Liability portfolio. We further leveraged favo urable market conditions in Marine & Energy Liability and
Cyber , where the strength and expertise of our underwriting team enabled us to deliver targeted growth.
Conversely , we reduced writing in classes such as Financial Lines and Aviation War , which continued to
experience rate softening in 202 5 due to surplus capacity .
In the Reinsurance segment, gross written premiums increased by 3.2 % , with th e impact of softening
rates largely offset by reinstatement premiums for the California wildfires and our entry into the Reinsurance
Casualty class .
The Partnerships segment continued to develop, with three new Casualty partnerships established during the
period , complementing the existing Property partnerships .
Net written premium grew by 19.0%, reflecting the optimisation of our reinsurance protection across the
portfolio of business.
The net claims ratio for the year was 49.7 % (202 4: 57.5 %) . We incurred $569.3 m of net losses (2024:
$550.9 m), reflecting growth in the business and the impact of the California wildfires. Favourable prior
year reserve developments and a relatively benign catastrophe experience during the peak hurricane season
helped to reduce the overall level of reported losses .
The net acquisition costs ratio improved to 18.2% (2024: 18.8%) as a result of relative growth in the Insurance
segment, which has a lower acquisition cost ratio compared to the Reinsurance and Partnerships segments.
The Syndicate’s net expense ratio was 12.8% (202 4: 11.0%) , reflecting costs associated with a planned office
relocation in 2025 , continued enhancements of our Systems, Data & Analytics capabilities and investment in
our people to support our growth .
The non -technical account includes a foreign exchange gain of $ 2.5 m (202 4: loss of $ 5.3 m), recognised on
the translation of foreign currency net positions at closing rates of exchange . The other income of $ 1.8m (202 4:
$1.3m) relat es to consortia fees.
Despite spots of geopolitical and trade policy driven stress, returns remained strong in 2025 due to a relatively
attractive yield environment, supportive policy movements and a generally positive risk sentiment. The
Syndicate reported a strong investment return of $ 74.1m (202 4: $45.2 m) for the financial year. This comprises
investment income of $ 55.0 m (202 4: $40.3 m), unrealised gains of $ 10.5m (202 4: $ 3.1m), realised gains of
$9.5 m (202 4: gain of $2.6 m) and investment expenses and charges of $ 0.9m (202 4: $ 0.6m). Financial
investments grew by 40.4 % during the year to $1,646 .5m (2024 : $1,172.9m). The Syndicate invests in fixed
income securities, primarily comprised of corporate and government bonds.
Report of the directors of the Managing Agent
12
Confidential
Confidential
Business Review
The gross written premium for 202 5 and 202 4 was:
Inigo relaunched the Syndicate in 2021 with a new portfolio of insurance and reinsurance business focusing
on a limited number of core lines in in Property, Casualty and Reinsurance classes. In January 2024 we
restructured our underwriting teams to bring together specialists from across different lines of our insurance
business and launched a Partnerships segment. During 2025 we expanded into International Property D&F,
continued t o grow our Gen eral Liability and Auto Liability portfolio s and launched Casualty Reinsurance.
The Partnerships team is working with a small number of agents and brokers, to build portfolios of business
that we don’t have access to in our Insurance Division. We aim to create meaningful value by aligning our
financial objectives , sharing data effectively , and fostering a strong, cohesive cultur e.
Insurance
For 202 5, the Insurance portfolio comprised 10 lines of business.
Property Direct and Facultative (D&F)
The team underwrite risks across a broad spectrum of industries including Commercial Real Estate, Global
Manufacturing, Hospitality, and Municipal/Institutional. During 2025 we expanded into International D&F. The
D&F book focuses on risks domiciled in the US, Canada, UK, EU, Australasia and Japan, writing both primary
and excess layers of large complex Commercial risks.
The team wrote $ 357.7 m in the 202 5 calendar year ( 202 4: $286.4 m).
Directors & Officers (D&O)
The team focuse s predominantly on primary and low excess positions in publicly listed businesses in the US
and Australia. There is a broad appetite by industry , and risks can include companies at an early stage of
maturity as they go public. The majority of the businesses insured are listed on stock exchanges in the US and
Australia , but other jurisdictions, such as the UK, Europe and Latin America, are also covered.
The team wrote $ 72.4 m in the 202 5 calendar year ( 202 4: $92.2 m).
202 5
$000
202 4
$000
Insurance
954,753
777,384
Reinsurance
548,934
532,037
Partnerships
66,022
30,569
Total Gross written premium
1,569,709
1,339,990
Report of the directors of the managing agent Report of the directors of the Managing Agent
13
Confidential
Confidential
Business Review (continued)
Insurance (continued)
Financial Institutions
The team write a portfolio of Comprehensive Crime, Professional Indemnity and Directors & Officers insurance
for a broad range of Financial Institutions predominantly domiciled in the US, Canada, Australia, UK and
Europe.
The team wrote $ 29. 8m in the 202 5 calendar year ( 202 4: $29.7 m).
General Liability
The team focus on five core industries: Rail, Owners -landlords -tenants, Construction, Manufacturing and
Natural Resources. It also considers exposure to Municipalities, Trucking and Chemical companies. Most of the
businesses insured are Fortune 1000 compan ies in the US and the portfolio consists predominantly of higher
excess layers. We also launched a General Liability Auto team which underwrites large fleets in the USA. We
launched this book on the back of our innovative partnership with Samsara, and the team focus predominantly
on low excess layers . We also expanded into International General Liability during the year.
The team wrote $197.6m in the 202 5 calendar year , inclusive of General Liability Auto (202 4: $121.9m).
Marine & Energy Liability
The team focuses on three main sub -segments: Marine Liability, Energy Liability and Ports.
The team write a broad spectrum of Marine Liability business across all sectors of the maritime industry - ports
and terminals, shipbuilders, ship repairers, marina operators, shipowners, ship operators and ship charterers.
Energy Liability primarily focus es on Drilling & Service Contractors, Exploration & Production Companies,
Offshore Construction and Onshore Upstream, mid -stream and downstream Operations.
The team wrote $ 104.0 m in the 202 5 calendar year ( 202 4: $70.8 m).
Political Violence and Terrorism
The team offers a broad suite of coverages in Political Violence and Terrorism (PVT) which includes: Sabotage
and Terrorism, Political Violence, Civil Unrest, and other related coverages. The PVT portfolio principally
focuses on risks domiciled in the US, with additional exposures in other strategic markets , writing both primary
and excess layers across a wide array of commercial occupancies.
The team wrote $ 25.4 m in the 202 5 calendar year ( 202 4: $20.5 m).
Aviation War
The team underwrite a global client base covering major airline operators plus associated lessors, banks and
finance parties, manufacturers and general aviation. Coverage includes physical loss or damage to aircraft,
confiscation, and aircraft spares. The team also specialise in covering operations into distressed territories on
behalf of governmental, non -governmental, or humanitarian organisations. Lastly, the team write all risks Hull
and Liability coverage for aircraft leasing companies.
The team wrote $ 49.1m in the 202 5 calendar year ( 202 4: $58.6 m).
Report of the directors of the Managing Agent
14
Confidential
Confidential
Business Review (continued)
Insurance (continued)
Onshore Energy
The Onshore Energy team focuses primarily on downstream, midstream, power generation and renewables
risks, writing on a quota share basis, but also significant primaries and a few smaller excess layers. The bulk of
the book focuses on risks from the US, Canada, Europe, Australasia and Japan.
The team wrote $44 .6m in the 202 5 calendar year ( 202 4: $39.6 m).
Mining
The Mining team focuses on the mid -tier mining market focused on the Americas, Australia and Africa,
excluding sanctioned territories. Capacity is predominantly deployed on a primary or quota share basis.
The team wrote $31.0m in the 202 5 calendar year ( 202 4: $27.5 m).
Cyber
The team write a portfolio of Cyber, Technology /Miscellaneous E&O and Cyber Property insurance , primarily
focused on larger risk managed accounts and clients domiciled in the US, Europe, and Canada .
The team wrote $43.1m in 202 5 calendar year ( 202 4: $30.0 m).
Reinsurance
The Reinsurance portfolio includes Property Catastrophe excess of loss, Quota Share, Retro, Risk excess of loss
and Specialty reinsurance.
The team wrote $ 548.9 m in the 202 5 calendar year ( 202 4: $532.0 m).
Property Reinsurance
Across the property reinsurance portfolio Inigo looks to partner with best -in-class insurers, those with strong
financials, a history of claims outperformance, transparent data, and the willingness to embrace long -term
partnerships. Inigo’s reinsurance und erwriters have a long history of leading high -profile programmes.
Catastrophe XL
The largest element of the property reinsurance account is Catastrophe excess of loss. This is a global portfolio,
albeit with a particular emphasis on North America, Japan, Europe and Australia/New Zealand. The team invest
heavily in research into the maj or cat perils to enhance the underwriting decisions and portfolio construction.
Peak zone exposures are hedged using both traditional reinsurance and catastrophe bonds through our
partners.
Pro rata
This account focuses on a small number of material relationships with trusted clients. There are 3 categories:
1) Catastrophe driven: the main exposure is a cat astrophe peril. e.g. Japanese quake or US flood.
2) General commercial .
3) Specialist: supporting clients who have a specific expertise in a line of business.
Report of the directors of the managing agent Report of the directors of the managing agent Report of the directors of the Managing Agent
15
Confidential
Confidential
Business Review (continued)
Reinsurance (continued)
Risk XL
The portfolio targets low -catastrophe, information -rich, technically -competent cedants with a history of strong
underwriting performance . These are determined by identifying strategic relationships and using proprietary
tools, paying careful attention to the cedant’s underwriting philosophy, line setting and claims expertise.
Retrocession
The smallest of the property reinsurance segments, this account focusses on areas where we do not have a
large reinsurance presence due to inadequate pricing, whereas the retro pricing in such areas is strong .
Specialty Reinsurance
The Specialty reinsurance account encompasses a diverse range of classes including Cyber, Agriculture,
Nuclear, Entertainment, Surety, Terrorism, and Wildfire Liability. Cyber is currently the biggest line by premium,
a market which experienced dramatic ra te increases from 2021 to 2023 but has seen some rate pressure in
2024. Cyber exposures are all written on a capped basis, and there is a strict overall maximum exposure limit.
The other major line, Agriculture, protects cedants against widespread deterior ation in crop yields and is
typically provided on a stop -loss basis.
The majority of risks are written on a non -proportional basis, but some pro -rata is also written. The account is
worldwide in scope but is driven by exposures from the US. We seek to partner with the best -in-class cedants
in their niche areas of expertise.
Casualty Reinsurance
We have spent 2025 looking at the Casualty Reinsurance market in more detail to see where this could fit in
with our strategy. We have underwritten a small, broad portfolio in 2025, and we will be building on this for
2026, particularly in the Internationa l Casualty Reinsurance space where our lead underwriter joined in
November. Our initial focus is on supporting our current international clients with a broader product offering,
including general liability and financial & professional lines.
Report of the directors of the Managing Agent
16
Confidential
Confidential
Business Review (continued)
Partnerships
2025 was our first full year for our newest division : Partnerships, which is Inigo’s new strategic approach to
seeking business we would not otherwise see . By collaborating with select trading partners, we are able to
increas e our access to the US market and other geographies of choice. We aim to create significant offerings
by sharing financial alignment, data, and cultural values , thereby creating a franchise that adds value to our
partners . A core component of our Partnership s division will be the creation of new product offering s or
approach es to a market that allows our partner s to differentiate themselves.
The underwriting team focuses on Property and Casualty Partnerships, areas where Inigo has strong
underwriting expertise. A favourable market exists for Property, and we expect strong underwriting
performance in both the high valued homeowners market , the US property middle market segment and the
small and medium sized enterprises segment in Australia .
We are also anticipating continued improvements in the US excess casualty space, where multiple carriers are
pulling back capacity as prior year loss reserves continue to develop advers ely to expectation. Over time we
will look to add classes of business through our Partnerships where we see an opportunity to diversify our
writings in a way that complements our financial objectives.
The team has written $ 66.0 m of premium in 202 5 (202 4: $30.6 m).
Report of the directors of the Managing Agent
17
Confidential
Confidential
Inigo Claims team
At Inigo, we uphold our commitment to providing a client -focused claims experience for our clients and brokers.
Our proactive and responsive claims specialists understand the distinctive challenges our clients encounter in
their business operations.
Claims value proposition
Our claims philosophy revolves around delivering an exceptional and results -oriented claims service to our
clients. We ensure claims are processed and paid promptly and efficiently.
Our claims value proposition is as follows:
Team expertise
To achieve our claims value proposition, we expanded our team in 202 5 and recruited two additional staff. As
at the end of the year, a team of seven teen blends senior expertise with new talent.
Our experienced leadership team draws valuable lessons from previous positions at large organisations and
brings a wealth of knowledge and technical experience. The team is also highly experienced in responding to
and handling catastrophe claims across the globe as well as having three qualified lawyers who are experienced
in handl ing some of the most complex Casualty and Financial Lines claims.
We actively promote Inigo’s “Get Smart” value, providing learning and development opportunities at all levels.
As we expand the team, we are upskilling the new talent through formalised training, coaching and mentorship.
The team are encouraged to be extremely visible in the Market; leading market meetings, participating on the
line of business panels and delivering thought leadership in expert areas. The claims team are also represented
on five Lloyd’s Market claims committees. We pride ourselves on being decisive and empower our Claims Team
with appropriate authority based on their experience, maintaining transparent oversight and referral
procedures.
Our claims professionals are ready to respond immediately when clients need us most, helping them recover
from disasters, resolving the most complex issues, as well as helping them learn from claims. The Inigo claims
team fosters collaboration with all int ernal and external stakeholders, providing the highest quality customer
service and continuous improvement.
Report of the directors of the Managing Agent
18
Confidential
Confidential
Inigo Claims team (continued)
Operational performance & governance
Governance remains a strategic focus, our control environment is supported by a Claims Management
Framework. The Underwriting & Claims Committee, Operations Committee and Reserving Committee provide
oversight over the claims process. Each of the committees includes senior representation from the Claims
Team. These committees report to the Inigo Executive Committee, which includes the Head of Claims, and
ultimately the Board. Our Claims Operations function is fully embedded within the Claims team, their prio rity
is to maximize operational efficiency through streamlined systems, strategic project implementation and
process support.
We continue to be Market leaders when compared to our peers within the Lloyd’s claims metrics. Our average
response time for claims transactions is 2.3 days compared to our p eer group average of 4. 4 days.
Emerging risks and trends
US Securities Class Action (SCA), claims inflation and the impact of climate change remain the three sources
of emerging claims risk.
We continue to closely watch our SCA exposure, as historically they have had the most significant impact on
the D&O book. Inigo has relevant coverage defences and attachment points, which remove or reduce our
potential liability.
The claims team actively work with the actuarial teams to monitor and manage the effects of claims inflation
against our significant losses and IBNR. We continue to monitor the effects of inflation, especially in the US,
which is impacted by societal shifts, wider wage and price inflation and litigation risks.
For climate change risk we monitor every large catastrophe event through our Event Response process that is
co-chaired by our Head of Exposure Management and the Head of Claims. The risk and actuarial teams attend
these meetings to ensure that there is an understanding and focus on the types and frequency of catastrophe
events and any financial risks that could occur.
Catastrophe research
Our Catastrophe Research team analyses our most material physical perils and shares the outputs throughout
Inigo. The conclusions of our catastrophe research are embedded in day -to-day processes across the firm,
including exposure management, pricing, and capital modelling, while also informing underwriting and risk
management decisions through the Inigo View of Risk (‘IVoR’).
Report of the directors of the Managing Agent
OUR AVERAGE
RESPONSE TIME ON
ELECTRONIC CLAIM
FILES
2.3
DAYS
PEER GROUP AVERAGE
4.4
DAYS
19
Confidential
Confidential
Future developments
In September 2025 Inigo Limited, the parent company of IMAL and ICML , entered into a definitive agreement
to be acquired by Radian Group Inc (“Radian”) in a primarily all cash transaction . The transaction closed on 2
February 2026 , following regulatory approvals. Inigo Limited and its subsidiaries (“Inigo Group”) will continue
to operate as an independent brand, under the ownership of Radian and will be led by the existing Inigo
management team.
Following the acquisition of Inigo Group by Radian, Rick Thornberry was appointed as a non -executive director
of IMAL on 2 February 2026. On the same day, Tim Hanford resigned from his position as a non -executive
director of IMAL.
As Inigo enters its sixt h year of underwriting, the Syndicate continues its targeted approach of underwriting
select classes of core business. The Syndicate retains its focus on complex, open market business, and
providing exceptional service to its clients. It operates from a single location . The Syndicate will continue to
optimise the shape of the portfolio on both a gross and net basis. Having maintained strong broker relationships
in 202 5, the Syndicate will continue to build on these in the coming year . The Syndicate will adopt a
comprehensive reinsurance purchasing strategy, with the continued aim of good volatility management.
Inflation
The current geopolitical and macroeconomic environment acts to increase uncertainty around the level and
trajectory of claims inflation for the Syndicate, though overall inflationary expectations remain materially lower
than for the 2022/2023 ‘hump’. The S yndicate has undertaken detailed analysis of inflation drivers and impacts
by class of business and continues to review its methodology and assumptions for appropriateness, with a
framework in place to support proactive monitoring of emerging inflationary trends .
The effect of the inflation on reserving is complex for many reasons, including:
• The Syndicate is affected by many types of inflation , including wage inflation, social inflation, and
inflation arising from increasing litigation and ever -higher court awards, amongst others.
• For property claims, whether the loss is total or partial, the inflation applicable is reflective of the
nature of the claim to which the Syndicate is exposed . For instance, a complete building fire
necessitates having separate inflationary uplift factors for different combinations of buildings,
contents and business interruption claims , whilst inflation relating to the cost of repair of a partial roof
leak is limited to the specific roof repair costs. The differential inflation applicable for business
interruption compared to property damage is allowed for within the modelling .
• The difficulties in precisely understanding how these types of inflation interact to impact claims and
the extent to which the inflation is captured within outstanding claims reserves .
• The uncertainty in timing of events including the date of loss, time to reporting and time to settlement.
The classes Inigo has chosen to write generally experience low frequency, high severity claims. By their nature,
the key uncertainties in these classes, particularly those affected by catastrophes, are normally whether an
event occurs, and its scale. As a result, the Syndicate’s net technical provisions have not been significantly
impacted by ongoing inflationary pressures.
From a new business perspective, we mitigate inflationary pressures through a combination of exposure
indexation, driving increased premium , and assessing the policy structures . Our current pricing and reserving
assumptions incorporate expected inflation , and allowances are considered adequate .
Report of the directors of the Managing Agent
20
Confidential
Confidential
Risk review
A description of the principal risks and uncertainties facing the Syndicate is set out in note 4 to the financial
statements (Risk and Capital Management).
Directors
None of the directors of the Managing Agent who served during the year ended 31 December 202 5 were
underwriting Names on the Syndicate for the 202 3, 202 4 or 202 5 years of account.
The current directors of the Managing Agent are set out on page 3.
Auditor
Following the acquisition of Inigo Limited by Radian , the Directors have reviewed the audit arrangement to
ensure consistency across the wider group. Following the conclusion of the 2025 audit, it is intended that PwC,
who are the auditors of Radian, will be appointed as auditors for the audit of the 2026 financial year
Disclosure of information to auditor
The directors of the Managing Agent who held office at the date of approval of this Managing Agent's report
confirm that, so far as they are each aware, there is no relevant audit information of which the Syndicate's
auditor is unaware; and each director has taken all the steps that they ought to have taken as a director to make
themselves aware of any relevant audit information and to establish that the Syndicate's auditor is aware of
that information.
Syndicate meeting
The Managing Agent confirms that it does not propose to hold an annual general meeting of the members of
the Syndicate.
For and on behalf of the Board
S J Bridges
Director
18 February 202 6
Report of the directors of the Managing Agent Report of the directors of the Managing Agent
21
Confidential
Confidential
The directors of the Managing Agent are responsible for preparing the Syndicate annual accounts in
accordance with applicable law s and regulations.
The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 requires the
directors of the Managing Agent to prepare their Syndicate’s annual accounts for each financial year. Under
that law , they have elected to prepare the annual accounts in accordance with UK Accounting Standards and
applicable law s (UK Generally Accepted Accounting Practice), including FRS 102 The Financial Reporting
Standard applicable in the UK and Republic of Ireland , and Sections 1 and 5 of the Syndicate Accounts
Instructions Version 3.1, as modified by the Syndicate Accounts Frequently Asked Questions Version 1.1 dated
13 February 2026, issued by the Council of Lloyd’s (“the Syndicate Accounts Instructions”) .
Under Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 the
directors of the Managing Agent must not approve the annual accounts unless they are satisfied that they give
a true and fair view of the state of affairs of the Syndicate and of the profit or loss of the Syndicate for that
period. In preparing these annual accounts, the directors o f the Managing Agent are required to:
• select suitable accounting policies and then 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 annual accounts; and
â–ª prepare the annual financial statements on the going concern basis , unless it is inappropriate to
presume that the Syndicate will continue in business .
The directors of the Managing Agent are responsible for keeping adequate accounting records that are
sufficient to show and explain the Syndicate’s transactions and disclose with reasonable accuracy at any time
the financial position of the Syndicate and enable them to ensure that the Syndic ate annual accounts comply
with the Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008. They
are responsible for safeguarding the assets of the Syndicate and hence for taking reasona ble steps for the
prevention and detection of fraud and other irregularities.
The directors of the Managing Agent are responsible for the maintenance and integrity of the Syndicate and
financial information included on the Inigo Group website. Legislation in the UK governing the preparation and
dissemination of the Syndicate annual accounts may differ from legislation in other jurisdictions.
For and on behalf of the Board
S J Bridges
Director
18 February 202 6
Statement of Managing Agent’s directors ’ responsibilities
22
Confidential
Confidential
Opinion
We have audited the Syndicate annual accounts of Syndicate 1301 (“the Syndicate”) for the year ended 31
December 2025 which comprise the Income Statement: Technical Account - General Business, Income
Statement: Non -Technical Account, Statement of Financial Position - Assets, Statement of Financial Position -
Liabilities, Statement of Changes in Members Balance s, Statement of Cash Flows and related notes, including
the accounting policies in note 3.
In our opinion the Syndicate annual accounts:
• give a true and fair view of the state of the Syndicate’s affairs as at 31 December 2025 and of its
profit for the year then ended;
• have been properly prepared in accordance with UK accounting standards, including FRS 102 The
Financial Reporting Standard applicable in the UK and Republic of Ireland ; and
• have been prepared in accordance with the requirements of the Insurance Accounts Directive
(Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008, and Sections 1 and 5 of the
Syndicate Accounts Instructions Version 3.1, as modified by the Syndicate Accounts Frequently
Asked Questions Version 1.1 dated 13 February 2026, issued by the Council of Lloyd’s (“the Syndicate
Accounts Instructions”) .
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”), applicable
law, and, under the terms of our engagement letter dated 29th July 2025 , the Syndicate Account Instructions.
Our responsibilities are described be low. We have fulfilled our ethical responsibilities under, and are
independent of the Syndicate in accordance with, UK ethical requirements including the FRC Ethical Standard
as applied to other entities of public interest. We believe that the audit eviden ce we have obtained is a sufficient
and appropriate basis for our opinion .
Going concern
The Directors of the Managing Agent (“the Directors”) have prepared the Syndicate annual accounts on the
going concern basis as they do not intend to cease underwriting or to cease its operations, and as they have
concluded that the Syndicate’s financial p osition means that this is realistic. They have also concluded that
there are no material uncertainties that could have cast significant doubt over its ability to continue as a going
concern for at least a year from the date of approval of the Syndicate an nual accounts (“the going concern
period”).
In our evaluation of the Directors’ conclusions, we considered the inherent risks to the Syndicate’s business
model and analysed how those risks might affect the Syndicate’s financial resources or ability to continue
operations over the going concern perio d, including inspecting correspondence with the Council of Lloyd’s to
assess whether there were any known impediments to establishing a further year of account .
Independent auditor ’s report to the members of Syndicate 1301
23
Confidential
Confidential
Going concern (continued)
Our conclusions based on this work:
• we consider that the Directors’ use of the going concern basis of accounting in the preparation of the
Syndicate annual accounts is appropriate; and
• we have not identified, and concur with the Directors’ assessment that there is not, a material
uncertainty related to events or conditions that, individually or collectively, may cast significant doubt
on the Syndicate’s ability to continue as a going con cern for the going concern period .
However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes
that are inconsistent with judgements that were reasonable at the time they were made, the above conclusions
are not a guarantee that the Syndicat e will continue in operation .
Fraud and breaches of laws and regulations – ability to detect
To identify risks of material misstatement due to fraud (“fraud risks”) we assessed events or conditions that
could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk
assessment procedures at the Syndicate and Managing Agent included :
• Enquiring of directors, internal audit, compliance, legal and risk and inspection of policy
documentation as to the Syndicate and Managing Agent’s high -level policies and procedures to
prevent and detect fraud, including the internal audit function, and th e Syndicate and Managing
Agent’s channel for “whistleblowing”, as well as whether they have knowledge of any actual, suspected
or alleged fraud.
• Reading Board, audit committee and risk committee minutes.
• Considering remuneration incentive schemes and performance targets for management and
directors.
• Using analytical procedures to identify any usual or unexpected relationships.
We communicated identified fraud risks throughout the audit team and remained alert to any indications of
fraud throughout the audit .
As required by auditing standards and taking into account possible pressures to meet profit targets and our
overall knowledge of the control environment, we perform procedures to address the risk of management
override of controls, in particular the risk t hat management may be in a position to make inappropriate
accounting entries, and the risk of bias in accounting estimates and judgements which include the valuation of
insurance contract liabilities. We did not identify any additional fraud risks .
Independent auditor ’s report to the members of Syndicate 1301
24
Confidential
Confidential
Fraud and breaches of laws and regulations – ability to detect
(continued)
We performed procedures including:
• Identifying journal entries and other adjustments to test based on risk criteria and comparing the
identified entries to supporting documentation. Some of these included those posted containing key
words, those posted by personnel who typically are not exp ected to be posting or approving journal
entries.
• Assessing whether the judgement made in accounting estimates are indicative of potential bias .
Identifying and responding to risks of material misstatement due to non -compliance with laws and regulations
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the
Syndicate annual accounts from our general commercial and sector experience and through discussion with
the directors and other management (as re quired by auditing standards), and from inspection of the Managing
Agent’s regulatory and legal correspondence and discussed with the directors and other management the
policies and procedures regarding compliance with laws and regulations.
As the Syndicate is regulated, our assessment of risks involved gaining an understanding of the control
environment including the entity’s procedures for complying with regulatory requirements.
We communicated identified laws and regulations throughout our team and remained alert to any indications
of non -compliance throughout the audit.
The potential effect of these laws and regulations on the Syndicate annual accounts varies considerably.
Firstly, the Syndicate is subject to laws and regulations that directly affect the Syndicate annual accounts
including financial reporting legislation ((such as the Insurance Accounts Directive (Lloyd’s Syndicate and
Aggregate Accounts) Regulations 2008, a nd the Lloyd’s Syndicate Accounts Instructions) and we assessed the
extent of compliance with these laws and regulations as part of our procedures on the related Syndicate annual
accounts items.
Secondly, the Syndicate is subject to many other laws and regulations where the consequences of non -
compliance could have a material effect on amounts or disclosures in the Syndicate annual accounts, for
instance through the imposition of fines or litigati on or the loss of the Syndicate’s capacity to operate. We
identified the following areas as those most likely to have such an effect: regulatory capital and conduct
recognising the financial and regulated nature of the Syndicate’s activities and its legal form. Auditing
standards limit the required audit procedures to identify non -compliance with these laws and regulations to
enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any.
Therefore, if a breach o f operational regulations is not disclosed to us or evident from relevant correspondence,
an audit will not detect that breach .
Independent auditor ’s report to the members of Syndicate 1301
25
Confidential
Confidential
Fraud and breaches of laws and regulations – ability to detect
(continued)
Context of the ability of the audit to detect fraud or breaches of law or regulation
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some
material misstatements in the Syndicate annual accounts, even though we have properly planned and
performed our audit in accordance with auditing standards. For example, the further removed non -compliance
with laws and regulations is from the events and transactions reflected in the Syndicate annual accounts, the
less likely the inherently limited procedures required by auditing standards would ide ntify it.
In addition, as with any audit, there remained a higher risk of non -detection of fraud, as these may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit
procedures are designed to detect ma terial misstatement. We are not responsible for preventing non -
compliance or fraud and cannot be expected to detect non -compliance with all laws and regulations .
Other information – Report of the directors of the Managing Agent
The Directors are responsible for the Report of the Directors of the Managing Agent. Our opinion on the
Syndicate annual accounts does not cover that report and, accordingly, in this audit report we do not express
an audit opinion or, except as explicitly stated below, any form of assurance conclusion thereon.
Our responsibility is to read the Report of the Directors of the Managing Agent and, in doing so, consider
whether, based on our Syndicate annual accounts audit work, the information therein is materially misstated
or inconsistent with the Syndicate annual accounts or our audit knowledge. Based solely on that work :
• we have not identified material misstatements in the Report of the Directors of the Managing Agent;
• in our opinion the information given in the Report of the Directors of the Managing Agent is consistent
with the Syndicate annual accounts; and
• in our opinion the Report of the Directors of the Managing Agent has been prepared in accordance
with the requirements of the Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate
Accounts) Regulations 2008 .
Matters on which we are required to report by exception
Under the Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008, we
are required to report to you if, in our opinion:
• adequate accounting records have not been kept on behalf of the Syndicate; or
• the Syndicate annual accounts are not in agreement with the accounting records; or
• certain disclosures of 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.
We have nothing to report in these respects.
Independent auditor ’s report to the members of Syndicate 1301
26
Confidential
Confidential
Responsibilities of the directors of the Managing Agent
As explained more fully in their statement set out on page 21, the Directors of the Managing Agent are
responsible for: the preparation of the Syndicate annual accounts in accordance with the requirements of the
Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 and the
Syndicat e Accounts Instructions, and for being satisfied that they give a true and fair view; such internal control
as they determine is necessary to enable the preparation of Syndicate annual accounts t hat are free from
material misstatement, whether due to fraud or error; assessing the Syndicate’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern; and using the going concern basis of
accounting unless th ey either intend to cease operations, or have no realistic alternative but to do so .
Auditor’s responsibilities
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 our opinion in an auditor’s
report. Reasonable assurance is a high lev el of assurance, but does not 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 aggregate , they could reasonably be
expected to influence the economic decisions of users taken on the basis of the Syndicate annual accounts .
A fuller description of our responsibilities is provided on the FRC’s website at
www.frc.org.uk/auditorsresponsibilities .
The Directors of the Managing Agent are required, under the Syndicate Accounts Instructions, to include these
financial statements within a document to which XBRL tagging has been applied. This auditor’s report provides
no assurance over whether the XBRL t agged document has been prepared in accordance with those
requirements .
The purpose of our audit work and to whom we owe our responsibilities
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 and the terms of our engagement
letter with the Managing Agent. 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 the further matters we are
required to state to them in accordance with the terms agreed with the Managing Age nt, 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 form ed.
James Anderson
for and on behalf of KPMG LLP, Statutory Auditor
Chartered Accountants
15 Canada Square London
E14 5GL
18 February 202 6
Independent auditor ’s report to the members of Syndicate 1301
27
Confidential
Confidential
The notes on pages 33 to 73 form an integral part of these financial statements.
Income statement: technical account – general business
For the year ended 31 December 202 5
Note
202 5
$000
202 4
$000
| Written premiums, net of reinsurance | |||
| Gross premiums written | 5 | ||
| Outwards reinsurance premiums | ( | ( | |
| | | ||
| Change in the provision for unearned premiums | |||
| Gross amount | ( | ( | |
| Reinsurers' share | |||
| 17 | ( | ( | |
| Earned premiums, net of reinsurance | |||
| Allocated investment return transferred from the non -technical account | 10 | ||
| Claims paid | |||
| Gross amount | ( | ( | |
| Reinsurers’ share | |||
| 5 | ( | ( | |
| Change in the provision for claims | |||
| Gross amount | ( | ( | |
| Reinsurers’ share | |||
| 17 | ( | ( | |
| Claims incurred, net of reinsurance | ( | ( | |
| Net Operating Expenses | 7 | ( | ( |
| Balance on the technical account – general business | |
28
Confidential
Confidential
All operations relate to continuing activities. The notes on pages 33 to 73 form an integral part of these financial
statements.
Income statement: non -technical account
For the year ended 31 December 202 5
Note
202 5
$000
202 4
$000
| Balance on the technical account - general business | |||
| Investment income | | | |
| Realised gains on investments | | ||
| Unrealised gains on investments | | ||
| Investment expenses and charges | ( | ( | |
| Total investment return | 10 | ||
| Allocated investment return transferred to technical account | ( | ( | |
| Foreign exchange gains/ (loss es) | ( | ||
| Non-technical account - other income | | ||
| Non-technical account – charges | ( | ||
| Profit for the financial year | | |
29
Confidential
Confidential
The notes on pages 33 to 73 form an integral part of these financial statements.
As at 31 December 202 5
Note
202 5
$000
202 4
$000
| Investments | |||
| Other financial investments | |||
| 11 | | ||
| Reinsurers' share of technical provisions | |||
| Provision for unearned premiums | | ||
| Claims outstanding | | ||
| 17 | | | |
| Debtors | |||
| Debtors arising out of direct insurance operations | 12 | | |
| Debtors arising out of reinsurance operations | 13 | ||
| Other debtors | 14 | ||
| Other assets | |||
| Cash at bank and in hand | 21 | ||
| Prepayments and accrued income | |||
| Accrued interest | |||
| Deferred acquisition costs | 15 | | |
| Other prepayments and accrued income | |||
| | | ||
| Total assets |
Statement of financial position: assets Statement of financial position: assets
30
Confidential
Confidential
The notes on pages 33 to 73 form an integral part of these financial statements.
The Syndicate financial statements on pages 27 to 7 3 were approved by the Board of Inigo Managing Agent
Limited and were signed on its behalf by:
S J Bridges
Director
18 February 202 6
As at 31 December 202 5
Note
202 5
$000
202 4
$000
| Capital and reserves | |||
| Members' balances | | | |
| Technical provisions | |||
| Provision for unearned premiums | |||
| Claims outstanding | |||
| 17 | | | |
| Creditors | |||
| Creditors arising out of direct insurance operations | 18 | ||
| Creditors arising out of reinsurance operations | 19 | ||
| Other creditors including taxation and social security | 20 | ||
| | | ||
| Accruals and deferred income | | | |
| Total liabilities | | | |
| Total liabilities, capital and reserves | | |
Statement of financial position: liabilities
31
Confidential
Confidential
The notes on pages 33 to 73 form an integral part of these financial statements.
Members participate on syndicates by reference to years of account and their ultimate result, assets and
liabilities are assessed with reference to policies incepting in that year of account in respect of their
membership of a particular year.
Statement of financial position: liabilities
For the year ended 31 December 202 5
202 5
$000
202 4
$000
| Members' balances brought forward at 1 January | | |
| Profit for the year | | |
| Distribution of profit | ( | ( |
| Members' balances carried forward at 31 December | |
Statement of change s in members’ balances
32
Confidential
Confidential
The notes on pages 33 to 73 form an integral part of these financial statements.
Statement of cash flows
For the year ended 31 December 202 5
Note
202 5
$000
202 4
$000
| Cash flows from operating activities: | |||
| Profit for the year | |||
| Adjustments | |||
| Increase in gross technical provisions | |||
| Increase in reinsurers' share of technical provisions | ( | ( | |
| Increase in debtors | ( | ( | |
| Increase in creditors | |||
| Movement in other assets/liabilities | ( | ( | |
| Investment return | ( | ( | |
| Foreign exchange | ( | ||
| Net cash inflow from operating activities | |||
| Cash flows from investing activities: | |||
| Purchases of debt instruments | ( | ( | |
| Sales of debt instruments | |||
| Investment income received | |||
| Other | ( | ( | |
| Net cash (outflow) from investing activities | ( | ( | |
| Cash flow from financing activities: | |||
| Distribution of profit | ( | ( | |
| Net cash (outflow ) from financing activities | ( | ( | |
| Net increase / (decrease) in cash and cash equivalents | ( | ||
| Cash and cash equivalents at 1 January | |||
| Foreign exchange on cash and cash equivalents | ( | ||
| Cash and cash equivalents at 31 December | 21 |
33
Confidential
Confidential
1. Basis o f preparation
The Syndicate is a vehicle on which (re)insurance business is conducted at Lloyd’s on behalf of the corporate
capital provider, ICML , and a third party capital provider for 202 3 to 202 6 years of account .
The Syndicate is managed by IMAL. The address of the Syndicate’s Managing Agent is 25 Fenchurch Avenue ,
London, EC3 M 5A D.
The financial statements have been prepared in accordance with the Insurance Accounts Directive (Lloyd’s
Syndicate and Aggregate Accounts) Regulations 2008 , Financial Reporting Standard 102 The Financial
Reporting Standard applicable in the UK and Republic of Ireland ("FRS 102") as published in September 2024 ,
Financial Reporting Standard 103 Insurance Contracts ("FRS 103") as published in September 2024 , and
Sections 1 and 5 of the Syndicate Accounts Instructions Version 3.1, as modified by the Syndicate Accounts
Frequently Asked Questions Version 1.1 dated 13 February 2026, issued by the Council of Lloyd’s (“the
Syndicate Accounts Instructions”) .
The financial statements have been prepared on the historical cost basis, except for financial assets which have
been recorded at fair value through the statement of profit or loss.
The financial statements are presented in US Dollars (“USD
amounts have been rounded to the nearest thousand, unless otherwise indicated.
As permitted by FRS 103 the Syndicate has continued to apply the accounting policies that existed prior to this
standard for its insurance contracts.
Going concern
The Directors of the Managing Agent have prepared the annual accounts on a going concern basis. In adopting
the going concern basis, the Syndicate’s current and forecast solvency and liquidity positions for the next 12
months and beyond has been reviewed. As part of the consideration of the appropriateness of adopting the
going concern basis, the Directors used scenario analysis to assess the robustness of the Syndicate’s solvency
and liquidity positions.
Even in a severe downside scenario, no material uncertainty in relation to going concern has been identified.
This is due to the Syndicate’s strong capital and liquidity positions, which provide considerable resilience to
these shocks, underpinned by the S yndicate’s approach to risk management, which is described in note 4.
In addition to the above, Lloyd’s require the Syndicate to perform an assessment of certain events on the
financial position of the Syndicate by running specific realistic disaster scenarios (RDS). It can be demonstrated
that under the selected RDS scenari os, the Syndicate will continue to operate, and any capital requirements
can be provided from the members’ FAL.
The 2026 year of account has opened, and the Directors have concluded that the Syndicate has sufficient
resources to, and a reasonable expectation that it will, open a 20 27 year of account .
The capital requirements are set at the member level, and a member is not allowed to participate in the
Syndicate if they have not met their capital requirement and the capacity of the Syndicate is adjusted down to
reflect this.
Notes to the financial statements
34
Confidential
Confidential
1. Basis of preparation (continued)
The Syndicate benefits from being part of the Lloyd’s capital structure, often referred to as the chain of security,
which provides excellent financial security to policyholders and capital efficiency for members. The three
elements that make up the Lloyd’ s capital structure are:
1. Syndicate assets – all premiums received by the Syndicates are held in trust by the managing agents
as the first resource for paying policyholders’ claims and to fund regulatory deposits. Until all liabilities
have been provided for, no profits can be rele ased. Every year, the Syndicate ’s reserves for future
liabilities are independently audited and subject to an actuarial review.
2. Funds at Lloyd’s – each member, whether corporate or individual, must provide sufficient capital to
support their underwriting at Lloyd’s. Managing agents are required to assess the solvency capital
requirement (SCR) for each syndicate that they manage. Th is sets out how much capital the syndicate
requires to cover its underlying business risks at a 99.5% confidence level .
3. Lloyd’s central capital – Lloyd’s central assets, which include the Central Fund, are available, at the
discretion of the Council of Lloyd’s, to meet any valid claim that cannot be met from the resources of
any member.
After making enquiries, the Directors have a reasonable expectation that the Syndicate has adequate resources
to continue in operational existence over a period of at least 12 months from the date of this report. For this
reason, the Syndicate continues to adopt the going concern basis in preparing its financial statements.
2. Key judgments and estimates
In preparing these financial statements, the directors of the Managing Agent have made judgments, estimates
and assumptions that affect the application of the Syndicate’s accounting policies and the reported amounts
of assets, liabilities, income and expenses.
Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to estimates are recognised prospectively.
Technical Provisions
The measurement of the provision for claims outstanding involves judgments and assumptions about the future
that have the most significant effect on the amounts recognised in the financial statements.
The provision for claims outstanding comprises the estimated cost of settling all claims incurred but unpaid at
the balance sheet date, whether reported or not. This is a judgmental and complex area due to the subjectivity
inherent in estimating the impact of claims events that have occurred for which the eventual outcome remains
uncertain. In particular, judgment is applied when estimating the value of amounts that should be provided for
claims that have been incurred at the reporting date but have not yet been reported (IBNR) to the Syndicate.
Notes to the financial statements
35
Confidential
Confidential
2. Key judgments and estimates (continued)
Technical Provisions (continued)
The amount included in respect of IBNR is based on statistical techniques of estimation applied by the
Syndicate Managing Agent’s in -house actuaries and reviewed by external consulting actuaries. These
techniques generally involve projecting from past experience the development of claims over time in view of
the likely ultimate claims to be experienced and for more recent und erwriting, having regard to variations in
business accepted and the underlying terms and conditions. The provision for claims also in cludes amounts in
respect of internal and external claims handling costs . For the most recent years, where a high degree of
volatility arises from projections, estimates may be based in part on output from rating and other models of
business accepted and assessments of underwriting conditions.
In arriving at the level of claims provisions a management margin is applied over and above the actuarial best
estimate. Further information about the risk that the provision for claims outstanding could be materially
different from the ultimate cost of cl aims settlement is included in note 4.
Estimates of future premiums
For certain insurance contracts, in particular binders and line slips , premium is initially recognised based on
estimates of premiums. These estimates are judgemental and could result in misstatements of revenue
recorded in the financial statements.
The estimation of premium income is inherently judgemental , as the process uses expert judgement, the
underwriters’ best estimates and observable historical trends . The se estimates are reviewed on a regular basis
by the underwriters and are assessed by the actuarial and finance teams .
Swing premiums that are linked to claims experience and exposure to insurance risk are estimated to the extent
that available data can be used to reliably estimate premiums.
Climate change related risks
Responses to climate change are still developing, it is not possible to consider all possible future outcomes
when determining asset and liability valuations, and timing of future cash flows, as these are not yet known.
Notes to the financial statements
36
Confidential
Confidential
3. Significant accounting policies
The following principal accounting policies have been applied consistently in dealing with items which are
considered material in relation to the Syndicate’s financial statements.
Insurance Contracts
Product classifications
Insurance contracts are those contracts whe re the Syndicate (the insurer) has accepted significant insurance
risk from another party (the policyholder) by agreeing to compensate the policyholder if a specified uncertain
future event (the insured event) adversely affects the policyholders. As a general guideline, th e Syndicate
determines whether it has significant insurance risk, by comparing benefits paid with benefits payable if the
insured event did not occur. Insurance contracts can also transfer financial risk.
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, unless all rights and obligations
are extinguished or exp ire.
Premiums written
Gross written premiums comprise the total premiums receivable for the whole period of cover provided by the
contracts incepting during the reporting period, regardless of whether these are wholly due for payment in the
reporting period, together with any a djustments arising in the reporting period to such premiums receivable in
respect of business written in the current or prior reporting periods. They are recognised on the date on which
the policy incepts . Additional or return premiums are treated as a re -measurement of the initial premium.
Premiums are shown gross of brokerage payable and exclude taxes and duties levied on them.
Written premiums include an estimate for pipeline premiums (i.e. premiums written but not reported to the
Syndicate by the reporting date) relating to those underlying contracts of insurance where the period of cover
has commenced prior to the reporting date. Where information exists to make a reliable estimate, written
premiums include estimated swing premiums, which are based on claims and risk exposure during the coverage
period.
Swing premiums based on claims experience are recognised and calculated in a manner that is consistent with
the measurement of the related claims provisions. Swing premium adjustments based on risk exposure are
recognised as soon as they can be determined with reasonable certainty.
Outward reinsurance premiums are accounted for in the same accounting period as the premiums for the
related direct insurance or inwards reinsurance business.
Managing Agent profit commission
Profit commission is charged by the Managing Agent at a standard rate of 20% on the third party capital
provider’s share of the 2023, 202 4 and 202 5 underwriting year s of account. Profit commission is disclosed
within Members’ standard personal expenses .
Other income
Other income relates to the consortium profit commission . The p rofit commission is recognised as revenue in
line with gross premiums earned.
Notes to the financial statements
37
Confidential
Confidential
3. Significant accounting policies (continued)
Claims
Claims include all claims occurring during the year, whether reported or not, together with related external and
internal claims handling costs that have been determined by an apportionment of employment costs and any
adjustments to claims outstanding from previous years.
Internal claims handling costs, including remuneration costs of the claims department, are reclassified from
administrative expenses and included within claims incurred.
Claims arising out of reinsurance operations are recognised when the related gross insurance claim is
recognised according to the terms of the relevant contract
Technical Provisions
Technical provisions comprise claims outstanding and provisions for unearned premiums.
Claims outstanding
Full provision is made on an individual case basis for the estimated cost of claims notified but not settled by the
balance sheet date after taking into account handling costs and settlement trends. A provision for claims
incurred but not reported (IBNR) i s established from statistical analysis undertaken by the Managing Agent’s
actuaries. The methods used and the estimates made are reviewed regularly.
Whilst the directors of the Managing Agent consider that the gross provision for claims and the related
reinsurance recoveries are fairly stated on the basis of the information currently available to them, the ultimate
liability will vary as a result of subsequent information and events. Any differ ences between provisions and
subsequent settlements are dealt with in the technical account of later years.
In calculating the estimated cost of unpaid claims, the Syndicate uses a variety of estimation techniques,
generally based upon statistical analyses of historical experience, which assumes that the development pattern
of current claims will be consistent with past experience.
Allowance is made, however, for changes or uncertainties which may create distortions in the underlying
statistics, or which may cause the cost of unsettled claims to change when compared with the cost of previously
settled claims including:
• changes in the Syndicate processes which might accelerate or slow down the development and/or
recording of paid or incurred claims compared with the statistics from previous periods;
• changes in the legal environment;
• the effects of inflation;
• the impact of large claims;
• movement in industry benchmarks.
A component of these estimation techniques is the estimation of the cost of notified but not paid claims. In
estimating the cost of these the Syndicate has regard to claim circumstances as reported, and information
available from loss adjusters and informa tion on the cost of settling claims with similar characteristics.
Large losses impacting each relevant business class are assessed separately where appropriate, being
measured on a case -by-case basis or projected separately in order to allow for the possible distortive effect of
the development and incidence of the large claims.
Notes to the financial statements
38
Confidential
Confidential
3. Significant accounting policies (continued)
Claims outstanding (continued)
The provision for claims outstanding is based on information available at the balance sheet date and is
estimated to give a result within a normal range of outcomes.
Anticipated salvage and subrogation recoveries are calculated on an individual case basis. The level of recovery
estimated is set on the basis of information, which is currently available, including potential outstanding claims
advices and case law. Salvage and subrogation recoveries are included in claims incurred in the income
statement.
Provision for unearned premiums
Unearned premiums are those proportions of premiums written in a year that relate to periods of risk after the
reporting date. Written premiums are recognised as earned over the period of the policy on a time
apportionment basis having regard, where approp riate, to the incidence of risk. The provision for unearned
premiums is calculated on a daily pro rata basis where appropriate. The exception to straight -line earning is the
property catastrophe excess of loss reinsurance class, which is earned based on ex posure to reflect the
seasonality of the business line. The proportion attributable to subsequent periods is deferred as a provision
for unearned premiums.
Unearned reinsurance premiums are those proportions of reinsurance premiums written in a year that relate
to periods of risk after the reporting date. Unearned reinsurance premiums are deferred over the term of the
underlying direct insurance policies for risks -attaching contracts, and over the term of the reinsurance contract
for losses -occurring contracts. The exception to straight -line earning are those contracts providing coverage
for the property catastrophe excess of loss reinsurance class, which are earned based on exposure to reflect
the seasonality of the underlying business line.
Deferred acquisition costs
Acquisition costs, comprising commission and other direct and indirect costs related to the acquisition of new
insurance contracts or the renewal of existing insurance contracts, are deferred to the extent that they are
attributable to premiums unearned at the balance sheet date.
Deferred acquisition costs are amortised over the period in which the related premiums are earned.
The reinsurers’ share of deferred acquisition costs is amortised in the same manner as the underlying asset.
Amortisation is reported in the technical account.
Commissions receivable on outwards reinsurance contracts are amortised over the term of the outwards
reinsurance premiums and deferred to the extent that they are attributable to outwards reinsurance premiums
unearned as at the balance sheet date.
Notes to the financial statements
39
Confidential
Confidential
3. Significant accounting policies (continued)
Reinsur ers’ share of claims outstanding
The Syndicate cedes insurance risk in the normal course of business. Reinsur ers’ share of claims outstanding
represents 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 reins urance contract.
Provisions are calculated allowing for reinsurance recoveries and a separate asset is recorded for the
reinsurers’ share, having regard to collectability.
The reinsurers’ share of provisions for claims is based on the amounts of outstanding claims and projections
for IBNR, net of estimated irrecoverable amounts, having regard to the reinsurance programme in place for the
class of business, the claims experie nce for the year, and the current security rating of the reinsurance
companies involved.
Reinsur ers’ share of claims outstanding is reviewed for impairment at each reporting date. Impairment occurs
when there is objective evidence as a result of an event that occurred after initial recognition , 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 income statement in the period in which the impairment loss is recognised .
Debtors arising from direct insurance and reinsurance operations
Debtors arising from direct insurance and reinsurance operations are recognised when due and measured on
initial recognition at the fair value of the consideration received or receivable. Subsequent to initial recognition,
they are measured at amortised co st less any provision for impairment in value.
The carrying value of debtors arising from direct insurance and reinsurance operations is reviewed for
impairment whenever events or circumstances indicate that the carrying amount may not be recoverable, with
the impairment loss recorded in the statement of profit or loss. Debtors arising from direct insurance and
reinsurance operations are derecognised when the de -recognition criteria for financial assets have been met.
Creditors arising from direct insurance and reinsurance operations
Creditors arising from direct insurance and reinsurance operations are recognised when due and measured on
initial recognition at the fair value of the consideration paid or payable less directly attributable transaction
costs. Subsequent to initial recogn ition, they are measured at amortised cost.
Creditors arising from direct insurance and reinsurance operations are derecognised when the obligation under
the liability is settled, cancelled or expired.
Financial Investments
As permitted by FRS 102, the Syndicate has elected to apply the recognition and measurement provisions of
IAS 39 Financial Instruments: Recognition and Measurement (as adopted for use in the UK) to account for all of
its financial instruments.
Notes to the financial statements
40
Confidential
Confidential
3. Significant accounting policies (continued)
Financial Investments (continued)
Recognition
Financial instruments are recognised when the Syndicate becomes a party to the contractual provisions of the
instrument. Financial assets are derecognised if the Syndicate's contractual rights to the cash flows from the
financial assets expire or if the Sy ndicate transfers the financial asset to another party without retaining control
of substantially all risks and rewards of the asset.
Purchases and sales of financial assets are recognised and derecognised, as applicable, on the trade date, i.e.
the date that the Syndicate commits itself to purchase or sell the asset .
Classification
The Syndicate classifies its financial investments into the following categories: fair value through profit or loss
and loans and receivables. The financial investments classified as fair value through profit and loss are :
redeemable fixed interest securities, deposits with credit institutions and shares and other variable yield
securities .
The classification depends on the purpose for which the investments were acquired. The Syndicate determines
the classification of its financial assets on initial recognition.
Fair value through profit or loss investments
Redeemable debt securities and other fixed -income securities are classified as fair value through profit or loss
and are initially measured at fair value , normally their cost of acquisition on the trade date .
The fair value of quoted investments is based on quoted bid prices. Unquoted investments are initially carried
at cost as the best estimate of fair value, which is adjusted using appropriate valuation techniques and having
regard to subsequent events or ch anges in circumstances. Realised and unrealised fair value gains and losses
arising from the changes in fair values of investments held at fair value through profit or loss are included in
investment return in the income statement in the period in which th ey arise.
Shares and other variable yield securities comprise money market funds, which are investments in cash
equivalents.
These are also designated on initial recognition as an asset to be measured at fair value with fair value changes
recognised in profit or loss account at subsequent reporting periods. Realised gains and losses are also
recognised in the income statement .
Loans and receivables
Loans and receivables are non -derivative financial assets with fixed or determinable payments that are not
quoted on an active market. The recognition and measurement of receivables arising from insurance contracts
are covered in the Debtors arising from direct insurance and reinsurance operations section . Other receivables
are recognised at transaction price and carried at the recoverable amount / amount expected to be paid. The
carrying values of other debtors are reviewed for impairment whenever events o r circumstances indicate that
the carrying amount is greater than the recoverable amount, with the impairment adjustment recorded in the
Income Statement.
Notes to the financial statements Notes to the financial statements
41
Confidential
Confidential
3. Significant accounting policies (continued)
Offsetting
Financial assets and financial liabilities are offset and the net amount presented in the balance sheet when, and
only when, the Syndicate currently has a legal right to set off the amounts and intends either to settle on a net
basis or to realise the asse t and settle the liability simultaneously.
Cash and cash equivalents
Cash and cash equivalents includes cash at bank and in hand, short -term deposits with credit institutions and
other short -term, highly liquid investments with minimal risk of fair value fluctuation . These investments
typically have a maturity of three months or less from the date of acquisition.
Cash at bank and in hand of the statement of financial position includes only cash and bank balances. Cash and
cash equivalents are carried at amortised cost except for those held in money market funds which are measured
at fair value.
Investment return
Investment income comprises interest income, dividends receivable and realised investment gains and losses.
Investment return comprises investment income and movements in unrealised gains and losses on financial
instruments at fair value through profit or loss, less investment management expenses and interest payable.
Realised gains and losses on investments are calculated as the difference between sale proceeds and purchase
price. Unrealised gains and losses on investments represent the difference between the valuation at the
balance sheet date and their valuation at t he previous balance sheet date, or purchase price if acquired during
the year, together with the reversal of unrealised gains and losses recognised in earlier accounting periods in
respect of investment disposals in the current period.
Investment return is initially recorded in the non -technical account. A transfer is made from the non -technical
account to the general business technical account. Investment return has been allocated to the technical
account in respect of actual investment return on investments supporting the general insurance technical
provisions and member balances. Any investment returns on investments that relate to undistributed profits
on closed years remain in the non -technical account.
Financial liabilities
The Syndicate’s financial liabilities consist of creditors arising out of direct insurance and reinsurance
operations , intercompany balances and trade payables.
All financial liabilities are recognised initially at fair value and subsequently measured at amortised cost .
Intercompany balances are repayable on demand and are typically settled within one year. A financial liability
is derecognised when the obligation under the liability is discharged or expires.
Notes to the financial statements
42
Confidential
Confidential
3. Significant accounting policies (continued)
Foreign currencies
The Syndicate’s functional currency is USD. Transactions in foreign currencies are translated to the functional
currency at the exchange rates ruling at the date of the transactions, or at an appropriate average rate. The
Syndicate’s monetary assets and li abilities denominated in foreign currencies are translated into the functional
currency at the rates of exchange at the balance sheet date. Non -monetary assets and liabilities denominated
in foreign currencies that are measured at fair value are retranslat ed to the functional currency at the exchange
rate at the date that the fair value was determined. Non -monetary items denominated in foreign currencies
that are measured at historic cost are translated to the functional currency using the exchange rate at the date
of the transaction.
Differences arising on translation of foreign currency amounts relating to the insurance operations of the
Syndicate are included in the non -technical account.
Taxation
Under Schedule 19 of the Finance Act 1993 managing agents are not required to deduct basic rate income tax
from trading income. In addition, all UK basic rate income tax (currently at 25%) deducted from the Syndicate
investment income is recoverable by managing agents and consequently the distribution made to members or
their members ’ agents is gross of tax.
No provision has been made for any 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 overseas tax payable by members on underwriting results.
Pension costs
Inigo operates a defined contribution scheme. Pension contributions relating to staff working on behalf of the
Syndicate are charged to the Syndicate when incurred and are included within net operating expenses.
Administrative expenses
Administrative expenses are accounted for on an accruals basis.
4. Risk and capital management
Introduction and overview
This note presents information about the nature and extent of the risks to which the Syndicate is exposed, and
the Managing Agent ’s objectives, policies and processes for measuring and managing insurance and financial
risks, and for managing the Syndicate ’s capital.
Notes to the financial statements
43
Confidential
Confidential
4. Risk and capital management (continued)
Risk management framework
The Board of directors of the Managing Agent has overall responsibility for the establishment and oversight of
the Syndicate ’s risk management framework. The Board has established a Risk & Investment Committee to
oversee the operation of the Syndicate ’s risk management framework and to review and monitor the
management of the risks to which the Syndicate is exposed. The Risk & Investment Committee has delegated
oversight of the day -to-day management of risk to the Executive Committee with support from i ts management
level committees . Their respon sibility includes developing risk appetite and risk policies for Board approval and
the monitoring of the risk and control profile with reporting to the Risk & Investment Committee. IMAL have
established an Enterprise Risk Management Framework (“ERMF”), wh ich sets out the principles, concepts,
processes and accountabilities which govern how risk is managed across the business.
IMAL operates a Three Lines Model which sets out clear responsibilities between the first, second and third
lines to ensure that there is consistent understanding of the way that risks are identified and controlled in the
relevant business area in the firs t line, with the second and third lines having a clear separation allowing
ongoing independence and therefore the ability to provide effective oversight and assurance. The first line
incorporates the risk and control owners for the business areas with resp onsibility and accountability for day -
to-day identification, measurement, monitoring, management and reporting of risk. The second line includes
the risk and compliance functions with reporting through to the Risk & Investment Committee and Board. The
third line is Internal Audit which provides independent assurance covering the first and second lines to the
Audit Committee and Board.
Insurance risk
The predominant risk to which the Syndicate is exposed is insurance risk which arises through the underwriting
process. Insurance risk can be subcategorised into: (i) underwriting risk and (ii) reserve risk.
Underwriting risk
Underwriting (premium) risk relates to the inherent uncertainty as to the occurrence, value and timing of
insurance liabilities we assume through our underwriting process. The Board manages underwriting risk by
agreeing its risk appetite annually and ensuring that the business plan is consistent with the agreed appetite.
The Underwriting and Clai ms Committee supports the Board by overseeing the management of underwriting
risk. The Syndicate utilises pricing models to assist in the pricing of risks and has in place an exposure
management process to ensure aggregations of exposure are understood and can both be priced for and
reported on.
Contracts can contain a number of features which help to manage underwriting risk , such as the use of
deductibles or limits that cap the maximum permitted loss or number of claims (subject to local regulatory and
legislative requirements).
Notes to the financial statements
44
Confidential
Confidential
4. Risk and capital management (continued)
Underwriting risk (continued)
The Syndicate uses reinsurance to mitigate the risk of incurring significant claims linked to one event or
catastrophe, including excess of loss and quota share reinsurance. The Syndicate also maintains catastrophe
bond placements . Where an individual exposure is deemed material relative to the Syndicate ’s appetite ,
additional facultative reinsurance may also be purchased. In addition, the Syndicate purchase s sideways
aggregate protection (i.e. excess of loss structure with aggregate deductibles) that protect against multiple
claims from our third -party exposures (i.e. classes such as D&O, GL and FI). Reinsurance risk to the Syndicate
arises where reinsurance contracts , put in place to reduce gross insurance risk , fail to perform as intend ed,
result ing in coverage disputes or prove inadequate. Failure of a reinsurer t o pay a valid claim is considered a
credit risk which is detailed in the credit risk section.
Reserve risk
Reserve risk arises when the Syndicate’s reserves are not sufficient to cover its unpaid loss and loss adjustment
expense costs. The Reserving Committee oversees the management of reserve risk. The use of proprietary and
standardised modelling techniques, internal and external be nchmarking, and the review of claims development
are all instrumental in mitigating reserve risk.
The Managing Agent ’s in-house actuaries perform a reserving analysis on a quarterly basis liaising closely with
underwriters, claims and outwards reinsurance technicians and include input from the large loss claims review
meeting. This produces a probability -weighted average of the expected future cash outflows arising from the
settlement of incurred claims. These projections include an analysis of claims development compared to the
previous ‘best estimate’ projections. The output of the reserving analysis is reviewed by exte rnal consulting
actuaries annually.
The Reserving Committe e pe rform s a comprehensive review of the projections, both gross and net of
reinsurance. Following this review the Reserving Committee makes recommendations to the Executive
Committee and Audit Committee for review prior to approval by the Managing Agent’s Board of directors ,
covering the amount of claims provisions to be established and included within the financial statements.
Concentration of insurance risk
The Syndicate ’s exposure to insurance risk is diversified. The Managing Agent’s Underwriting and Claims
Committee has oversight of the management of the Syndicate’s exposures across perils and geographies
compared to agreed risk appetite. The Syndicate uses an external catastrophe model as part of its management
of its exposure s. The following table provides an analysis of the geographical breakdown of its written premiums
by class of business and risk location.
Notes to the financial statements Notes to the financial statements
45
Confidential
Confidential
4. Risk and capital management (continued)
Concentration of insurance risk (continued)
Marine, aviation
and transport
Fire and other
damage to
property
Third party
liability
Reinsurance
Total
202 5
$000
$000
$000
$000
$000
United Kingdom
2,693
5,329
29,511
88,650
126,183
Europe an Union
808
2,023
3,877
81,313
88,021
United States
62,894
301,550
232,946
463,549
1,060,939
Other countries
3,453
51,820
27,906
211,387
294,566
Total
69,848
360,722
294,240
844,899
1,569,709
Marine,
aviation and
transport
Fire and other
damage to
property
Third party
liability
Reinsurance
Total
202 4
$000
$000
$000
$000
$000
United Kingdom
3,019
3,847
27,446
47,035
81,347
Europe an Union
2,342
1,349
6,827
71,996
82,514
United States
44,355
262,353
158,977
462,527
928,212
Other countries
8,147
22,043
39,695
178,032
247,917
Total
57,863
289,592
232,945
759,590
1,339,990
All business was concluded in the UK.
The Other countries category includes policies with worldwide risk exposures.
Sensitivity to insurance risk
The liabilities established, which includes claims outstanding and claims incurred but not reported (IBNR),
could be significantly lower or higher than the ultimate cost of settling the claims arising. This level of
uncertainty varies between the classes o f business and the nature of the risk being underwritten and can arise
from developments in case reserving for large claims and catastrophes, or from changes in estimates of IBNR.
An increase or decrease in the ultimate cost of settling claims arising is c onsidered to be reasonably possible
at the reporting date.
Notes to the financial statements
46
Confidential
Confidential
4. Risk and capital management (continued)
Sensitivity to insurance risk (continued)
A five percent Increase or decrease in claims liabilities would have the following effect on profit or loss and
member balance :
Sensitivity
+5.0%
$000
-5.0%
$000
| General Insurance business sensitivities as at 31 December 202 5 | ||
| Claims outstanding – gross of reinsurance | ( | |
| Claims outstanding – net of reinsurance | ( |
Sensitivity
+5.0%
$000
-5.0%
$000
General Insurance business sensitivities as at 31 December 2024
Claims outstanding – gross of reinsurance 52,852 (52,852 )
Claims outstanding – net of reinsurance
(42,367 )
Credit risk
Credit risk is the risk of financial loss to the Syndicate if a counterparty fails to perform its financial obligations
or fails to perform them in a timely fashion.
The Syndicate is exposed to credit risk through its day to day (re)insurance activities principally through
payments due for the (re)insurance coverages provided by the Syndicate and collections from its outwards
reinsurance counterparties and also through the credit risk associated with the Syndicate’s investment and
banking counterparties. This includes:
• debt securities;
• reinsurers' share of insurance liabilities;
• amounts due from intermediaries;
• amounts due from reinsurers in respect of settled claims;
• cash and cash equivalents; and
• other debtors and accrued interest.
The IMAL Credit risk policy outlines the approach to credit risk, and the IMAL Reinsurance Security and Broker
Committee is responsible for overseeing the management of credit risk from brokers and reinsurers.
Notes to the financial statements
47
Confidential
Confidential
4. Risk and capital management (continued)
Credit risk (continued)
The Syndicate's exposure to intermediaries and reinsurance counterparties is monitored as part of the
Managing Agent’s credit control processes. All intermediaries must meet minimum requirements established
by the Managing Agent. The credit risk ratings and payment histories of intermediaries are monitored on a
regular basis. The Managing Agent assesses the creditworthiness of all reinsurers by reviewing public rating
information and by internal investigations. The impact of reinsurer default is regularly assessed and managed
accordingly.
Management of credit risk associated with financial assets
Credit risk in respect of debt securities is managed by the establishment and monitoring of industry and
counterparty limits, credit rating concentration limits and minimum credit rating requirements at both the per -
asset and aggregate portfolio level. Any asset rated outside of these requirements by an External Credit
Assessment Institution ( “ECAI ”) is subject to a strict exceptions monitoring process and is reported to the Risk
and Investment Committees.
Exposure to credit risk
The carrying amount of financial assets and reinsurance assets represents the maximum credit risk exposure.
The Syndicate ’s credit risk is mitigated by the collateral pledged by ceded reinsurance counterparties. At the
balance sheet date, the Syndicate holds $5 15.6m (202 4: $469.2 m) in collateral in the event of failure of those
counterparties to meet their contractual obligations.
Collateral held may reduce the level of credit risk associated with this exposure but does not change the total
amount recoverable.
The following table analyses the credit rating by investment grade of financial investments, reinsurers' share
of claims outstanding, debtors arising out of direct insurance and reinsurance operations, cash at bank and in
hand, and other debtors and accrue d interest that are neither past due, nor impaired. A look through analysis
is performed on the money market funds , where the credit rating per fund is not available .
Not rated balances represent assets for which rating information is not readily available. Reinsurers’ share of
claims outstanding with unrated counterparties are fully collateralised. Debtors arising out of direct insurance
operations that are past due ar e still expected to be received in full.
Notes to the financial statements
48
Confidential
Confidential
4. Risk and capital management (continued)
Exposure to credit risk (continued)
AAA
AA
A
BBB
Other
Not rated
Total
202 5
$000
$000
$000
$000
$000
$000
$'000
| Shares and other variable yield securities and units in unit trusts | | | | | | | |
| Debt securities and other fixed income securities | | | |||||
| Other investments | | | | | | ||
| Reinsurers’ share of claims outstanding | | | | | | ||
| Debtors arising out of direct insurance operations | | | | | | ||
| Debtors arising out of reinsurance operations | | | | | | ||
| Cash at bank and in hand | | | | | | | |
| Other debtors and accrued interest | | | | | | | |
| Total |
AAA
AA
A
BBB
Other
Not rated
Total
202 4
$000
$000
$000
$000
$000
$000
$'000
| Shares and other variable yield securities and units in unit trusts | | | | | | ||
| Debt securities and other fixed income securities | | | | ||||
| Other investments | | | | | | ||
| Reinsurers’ share of claims outstanding | | | | | |||
| Debtors arising out of direct insurance operations | | | | | |||
| Debtors arising out of reinsurance operations | | | | | | ||
| Cash at bank and in hand | | | | | | | |
| Other debtors and accrued interest | | | | | | | |
| Total |
Prior period comparatives have been represented to exclude the debtors arising from insurance and
reinsurance operations that are past due but not impaired from the credit risk disclosure .
Notes to the financial statements Notes to the financial statements
49
Confidential
Confidential
4. Risk and capital management (continued)
Exposure to credit risk (continued)
Other investments balances represent overseas deposits.
The largest aggregated counterparty exposure related to debt and fixed income holdings as at 31 December
2025 and 2024 is to US Treasures and US Agencies , which amounted to $301.6m (2024: $216.7m).
The Group is exposed to concentrations of risk with individual reinsurers due to the nature of the reinsurance
market and the restricted range of reinsurers that have acceptable credit ratings. The largest counterparty
exposure included in reinsurance asse ts as at 31 December 2025 is to $39.2 m (202 4: $36. 9m ).
Where there is a developing risk profile that is out of appetite e.g. in response to perceived growing specific
geopolitical risks, the Syndicate has introduced additional restrictions which are reviewed regularly.
Financial assets that are past due or impaired
The Syndicate has debtors arising from direct insurance and reinsurance operations that are past due but not
impaired at the reporting date.
These debtors 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.
An analysis of the carrying amounts of past due but not impaired and neither past due n or impaired debtors is
presented in the table below. The Syndicate does not have any impaired assets as at 31 December 2025 (2024:
nil).
Neither past due
nor impaired
Past due but
not impaired
Total
202 5
$000
$000
$000
| Shares and other variable yield securities and units in unit trusts | | ||
| Debt securities and other fixed income securities | | ||
| Other investments | | ||
| Reinsurers’ share of claims outstanding | | ||
| Debtors arising out of direct insurance operations | | | |
| Debtors arising out of reinsurance operations | | ||
| Cash at bank and in hand | | ||
| Other debtors and accrued interest | | ||
| Total | |
Notes to the financial statements
50
Confidential
Confidential
4. Risk and capital management (continued)
Financial assets that are past due or impaired (continued)
Neither past due
nor impaired
Past due but
not impaired
Total
202 4
$000
$000
$000
| Shares and other variable yield securities and units in unit trusts | | | |
| Debt securities and other fixed income securities | | | |
| Other investments | | | |
| Reinsurers’ share of claims outstanding | | | |
| Debtors arising out of direct insurance operations | | | |
| Debtors arising out of reinsurance operations | | | |
| Cash at bank and in hand | | | |
| Other debtors and accrued interest | | | |
| Total | |
Other investments balances represent overseas deposits.
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
202 5
$000
$000
$000
$000
$000
| Debtors arising out of direct insurance operations | | | |||
| Debtors arising out of reinsurance operations | | | |||
| Total |
Notes to the financial statements Notes to the financial statements
51
Confidential
Confidential
4. Risk and capital management (continued)
Financial assets that are past due or impaired (continued)
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
202 4
$000
$000
$000
$000
$000
Debtors arising out of direct insurance
operations
Debtors arising out of reinsurance
operations
Total
Investment risk
The focus of investment risk management for the Syndicate is to ensure that the management of invested
assets sufficiently ensures the ability to fund obligations arising from the Syndicate’s insurance contracts and
other liabilities, as they are expected to fall due. The investment management process aims to achieve an
appropriate level of risk adjusted investment return as is consistent with the preservation of capital, liquidity
and prudent diversification of portfolio assets and achievement of the inves tment objectives.
Liquidity risk
Liquidity risk is the risk that the Syndicate may be unable to meet on a timely basis its financial obligations
arising from its insurance contracts and financial liabilities . The Syndicate is exposed to daily calls on its
available cash resources mainly from claims arising from insurance contracts.
IMAL has in place a Liquidity risk policy which details its approach to liquidity risk management. The IMAL Risk
& Investment Committee is responsible for overseeing the management of liquidity risk, with management
level oversight provided by the IMAL Inv estment Committee.
Notes to the financial statements
52
Confidential
Confidential
4. Risk and capital management (continued)
Management of liquidity risk
The Syndicate's approach to managing liquidity risk is to ensure, as far as possible, that it will always have
sufficient liquidity to meet its liabilities when they fall due, under both normal and stressed conditions, without
incurring unacceptable losses or risking damage to the Syndicate's reputation. The Syndicate's approach to
managing its liquidity risk is as follows:
• Forecasts are prepared and revised on a regular basis to predict cash outflows from insurance
contracts over the short, medium and long term;
• The liquidity profile of assets purchased by the Syndicate are required to be consistent with the stated
liquidity risk appetite and forecast liquidity needs;
• The Syndicate maintains cash and liquid assets to meet daily calls on its insurance contracts and
additional assets of primary liquidity sufficient to meet reasonably foreseeable stressed liquidity
requirements;
• The Syndicate maintains, and reports against, liquidity risk appetite measures;
• The Syndicate regularly reviews its contingency funding plans to ensure that adequate liquid financial
resources are in place to meet obligations as they fall due in the event of reasonably foreseeable
abnormal circumstances.
The maturity analysis presented in the table below shows the remaining contractual maturities for the
Syndicate’s insurance contracts and financial liabilities. For insurance contracts, the contractual maturity is the
estimated date when the gross undiscounted contractually required cash flows are expected to occur. For
financial liabilities, it is the earliest date on which the gross undiscounted cash flows (including contractual
interest payments) could be paid assuming conditions are consistent with thos e at the reporting date. The
actual timing of future settlement cash flows may differ materially from the disclosure below.
| No maturity | ||||||
| stated | 0-1 year | 1-3 years | 3-5 years | > 5 years | Total | |
| 202 5 | $000 | $000 | $000 | $000 | $000 | $000 |
| Claims outstanding | ||||||
| Creditors | | |||||
| Total liabilities | ||||||
| No maturity | ||||||
| stated | 0-1 year | 1-3 years | 3-5 years | > 5 years | Total | |
| 202 4 | $000 | $000 | $000 | $000 | $000 | $000 |
| Claims outstanding | ||||||
| Creditors | ||||||
| Total liabilities |
Notes to the financial statements Notes to the financial statements Notes to the financial statements
53
Confidential
Confidential
4. Risk and capital management (continued)
Market risk
Market risk is the risk arising from the level or volatility of economic variables which have an impact upon the
value of the assets and, where impacted, liabilities of the Syndicate. Further details on the associated interest
rate and currency risks are d etailed below. The credit risk related to investment and banking counterparties is
covered within the credit risk section above.
The objective of market risk management is to manage and control market risk exposures within acceptable
parameters, while optimising the return on risk.
IMAL has a Market risk policy which details its approach to market risk. The IMAL Risk & Investment Committee
is responsible for overseeing the management of market risk, with management level oversight provided by
the IMAL Investment Committee.
Management of market risks
IMAL maintains policies and procedures for each of the major component s of market risk that impact the
Syndicate. The details of IMAL’s approach to managing and monitoring the market risk , and the Syndicate ’s
exposure to it at the reporting date are provided on pages 5 3 to 5 6.
Interest rate risk
Interest rate risk is the risk that the value of future cash flows of a financial instrument will fluctuate because
of changes in interest rates.
Interest rate risk arises primarily from the Syndicate's financial investments, cash and overseas deposits. The
risk of changes in the fair value of these assets is managed by investing in short -duration financial investments
and cash and cash equivalents. The Inigo Risk and Investment Committee monitors the duration of these assets
on a regular basis.
Currency risk
The Syndicate writes business primarily in Sterling, Euro, Australian dollar, Canadian dollar, Japanese Yen and
US dollar and is therefore exposed to currency risk arising from fluctuations in the exchange rates of US dollars
against these currencies. The foreign exchange policy is to maintain assets in the currency in which the cash
flows from liabilities are to be settled.
Where liabilities in any currency exceed 5% of total liabilities, the policy is to maintain assets in that currency
to the level of at least 80% of the value of liabilities.
The table below summarises the carrying value of the Syndicate's assets and liabilities, at the reporting date:
Notes to the financial statements Notes to the financial statements
54
Confidential
Confidential
4. Risk and capital management (continued)
Currency risk (continued)
GBP
EUR
USD
CAD
AUD
JPY
Total
202 5
$000
$000
$000
$000
$000
$000
$000
| Investments | | | | ||||
| Reinsurers' share of technical provisions | | | |||||
| Debtors | | | |||||
| Other assets | | | |||||
| Prepayments and accrued income | | | | ||||
| Total assets | | | |||||
| Technical provisions | ( | ( | ( | ( | ( | ( | ( |
| Other creditors | ( | ( | ( | ( | ( | ( | ( |
| Accruals and deferred Income | ( | ( | ( | ( | ( | ( | ( |
| Total liabilities | ( | ( | ( | ( | ( | ( | ( |
| Total capital and reserves | ( | ( | ( | ( | | ( | ( |
Notes to the financial statements
55
Confidential
Confidential
4. Risk and capital management (continued)
Currency risk (continued)
GBP
EUR
USD
CAD
AUD
JPY
Total
202 4
$000
$000
$000
$000
$000
$000
$000
| Financial investments | |||||||
| Reinsurers' share of technical provisions | |||||||
| Debtors | |||||||
| Other assets | |||||||
| Prepayments and accrued income | |||||||
| Total assets | | | | | |||
| Technical provisions | ( | ( | ( | ( | ( | ( | ( |
| Other creditors | ( | ( | ( | ( | ( | ( | ( |
| Accruals and deferred Income | ( | ( | ( | ( | ( | ( | ( |
| Total liabilities | ( | ( | ( | ( | ( | ( | ( |
| Total capital and reserves | | ( | ( | ( | ( | ( | ( |
Sensitivity analysis to market risks
An analysis of the Syndicate's sensitivity to interest rate and currency risk is presented in the table below. The
table shows the effect on profit or loss of reasonably possible changes in the relevant risk variable, assuming
that all other variables remain constant, if that change had occurred at the end of the reporting pe riod and had
been applied to the risk exposures at that date.
Notes to the financial statements
56
Confidential
Confidential
4. Risk and capital management (continued)
Sensitivity analysis to market risks (continued)
202 5
202 4
Profit or loss
for the year
Members’
balances
Profit or loss
for the year
Members’
balances
$000
$000
$000
$000
| Interest rate risk | ||||
| + 50 basis points shift in yield curves | ( | ( | ( | ( |
| - 50 basis points shift in yield curves | | |||
| Currency risk | ||||
| 10 percent increase in USD/Euro exchange rate | 1,112 | 1,112 | 1,058 | 1,058 |
| 10 percent decrease in USD/Euro exchange rate | (1,112) | (1,112) | (1,058) | (1,058) |
| 10 percent increase in USD/GBP exchange rate | 955 | 955 | (685) | (685) |
| 10 percent decrease in USD/GBP exchange rate | (955) | (955) | 685 | 685 |
| 10 percent increase in USD/ CAD exchange rate | 4,584 | 4,584 | 1,697 | 1,697 |
| 10 percent decrease in USD/CAD exchange rate | (4,584) | (4,584) | (1,697) | (1,697) |
| 10 percent increase in USD/ JPY exchange rate | 327 | 327 | 943 | 943 |
| 10 percent decrease in USD/ JPY exchange rate | (327) | (327) | (943) | (943) |
| 10 percent increase in USD/ AUD exchange rate | (217) | (217) | 319 | 319 |
| 10 percent decrease in USD/ AUD exchange rate | 217 | 217 | (319) | (319) |
The sensitivity analysis demonstrates the effect of a change in a key variable while other assumptions remain
unchanged. However, the occurrence of a change in a single market factor may lead to changes in other market
factors as a result of correlations.
The sensitivity analyses do not take into consideration that the Syndicate’s financial investments are actively
managed. Additionally, the sensitivity analysis is based on the Syndicate's financial position at the reporting
date and may vary at the time th at any actual market movement occurs. As investment markets move past pre -
determined trigger points, action would be taken which would alter the Syndicate's position.
Operational risk
This is the risk of loss resulting from inadequate or failed internal processes, people and systems, or from
external events. Should they crystalise, operational risks are likely to disrupt the normal flow of business
processes and generate customer harm, financial loss or damage to the reputation of the firm. Operational risk
is inherent in all of Inigo’s business activities and as such Inigo’s suite of risk categories and associated business
policies cover the control environment in place to mitigate thos e risks and the control environment is assessed
through the risk and control self -assessment process. At a management level the oversight of operational risk
is provided by the Operations and Executive Committees. Inigo has a Board approved Operational Resilience
framework, which has been developed to meet regulatory expectations and to mitigate Inigo’s operational risk
exposure. Important Business Services and their respective Impact Tolerances have been identified, mapped,
and tested. No breaches of ou r Impact Tolerances have been reported to -date.
Notes to the financial statements Notes to the financial statements
57
Confidential
Confidential
4. Risk and capital management (continued)
Regulatory risk
A key operational risk is in relation to regulatory risk. The Managing Agent is required to comply with the
requirements of the Prudential Regulation Authority, the Financial Conduct Authority and Lloyd's. Lloyd's
requirements include oversight principles and those imposed on the Lloyd’s market by overseas regulators,
particul arly in respect of US Situs business. Regulatory risk is the risk of loss owing to a breach of regulatory
requirements or failure to respond to a regulatory change. The Managing Agent monitors regulatory
developments and assesses their impact on its polic ies and procedures. In addition, the Managing Agent carries
out a compliance monitoring programme which is aligned to the Lloyd’s Principles and considers Inigo’s
adherence to its policies and procedures.
Strategic risk
This is the risk of unintended adverse impact on the business plan objectives arising from business decisions,
improper implementation of those decisions, inability to adapt to changes in the external environment, or
circumstances that are beyond the control of the Syndicate. IMAL has a strategic risk policy in place with
management level oversight by the Executive Committee.
Climate Risk
Climate risk relates to the range of complex physical, transition and liability risks arising from climate change.
This includes the risk of higher claims as a result of more frequent and more intense natural catastrophes; the
financial risk which could a rise from the transition to a lower -carbon economy, and the risk that those who have
suffered loss from climate change might then seek to recover those losses from those who they believe are
responsible. Climate -related risk is not considered a standalone risk, but a cross -cutting risk with the potential
to amplify each existing risk type.
Capital management
Capital framework at Lloyd’s
The Society of Lloyd's (Lloyd's) is a regulated undertaking and subject to supervision by the Prudential
Regulatory Authority (PRA) under the Financial Services and Markets Act 2000, and in accordance with the
Solvency UK Framework .
Within this supervisory framework, Lloyd’s applies capital requirements at member level and centrally to
ensure that Lloyd’s would comply with the Solvency UK 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 a Syndicate level as a starting point,
the requirement to meet Solvency UK and Lloyd's capital requirements apply at overall and member level only,
not at a Syndicate level. Accordingly, the capital requirement in respect of Syndicate 1301 is not disclosed in
these financial statements.
Notes to the financial statements
58
Confidential
Confidential
4. Risk and capital management (continued)
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 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 o f each Syndicate are subject to review by
Lloyd's and approval by the Lloyd's Capital and Planning Group.
The syndicate utilises its own validated capital model to establish the level of its SCR .
A Syndicate may be comprised of one or more underwriting members of Lloyd's. Each member is liable for its
own share of the liabilities of the Syndicate on which it is participating , but not for other members' share.
Accordingly, the capital requirements that Lloyd's sets for each member operates on a similar basis. Each
member’s SCR shall thus be determined by the proportion of the member's share of the Syndicate SCR 'to
ultimate'. Over and abo ve this, Lloyd's applies a capital uplift to the member's cap ital requirement . The purpose
of this uplift, which is a Lloyd’s requirement and not a Solvency UK requirement, is to meet Lloyd's financial
strength, licence and ratings objectives. The capital uplift is a 35% uplift, applied to the ultimate SCR, adjusted
for the risk margin and the reinsurance contract boundaries . The capital requirement after the uplift has been
applied is known as the Economic Capital Assessment (“ECA”).
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 ), assets held 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, all of the assets less
liabilities of the Syndicate, represent resources available to meet members' and Lloyd's capital requirements.
Notes to the financial statements
59
Confidential
Confidential
5. Analysis of underwriting result
An analysis of the underwriting result before investment return and profit/(loss) on foreign exchange is
presented in the table below:
Gross
premiums
written
Gross
premiums
earned
Gross
claims
incurred
Gross
operating
expenses
Reinsurance
balance
Underwriting
result
202 5
$000
$000
$000
$000
$000
$000
| Direct insurance | ||||||
| Marine, aviation and transport | | ( | ( | | | |
| Fire and other damage to property | | ( | ( | ( | | |
| Third party liability | | ( | ( | ( | | |
| Total direct insurance | | ( | ( | ( | | |
| Reinsurance acceptances | | | ( | ( | ( | |
| Total | ( | ( | ( | |
Gross
premiums
written
Gross
premiums
earned
Gross
claims
incurred
Gross
operating
expenses
Reinsurance
balance
Underwriting
result
202 4
$000
$000
$000
$000
$000
$000
Direct insurance
Marine, aviation and transport
(18,411 )
(14,578 )
(13,769 )
Fire and other damage to
property
(121,789 )
(65,206 )
(44,300 )
Third party liability
(131,252 )
(50,080 )
(8,498 )
Total direct insurance
(271,452 )
(129,864 )
(66,567 )
Reinsurance acceptances
(356,30 6 )
(168,644 )
(113,150 )
Total
(627,75 8 )
(298,508 )
(179,717 )
A net reinsurance cost of $103.9 m was recognised in profit or loss during the year on buying reinsurance (20 24:
$179.7m).
Notes to the financial statements
60
Confidential
Confidential
5. Analysis of underwriting result (continued)
The analysis 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:
| Gross premiums written | Gross premiums earned | Gross claims incurred | Gross operating expenses | Reinsurance balance | Underwriting result | |
| 202 5 | $000 | $000 | $000 | $000 | $000 | $000 |
| Additional analysis | ||||||
| Fire and other damage to property, of which is: | ||||||
| Specialities | | ( | ( | ( | | |
| Energy | | ( | ( | ( | ( | |
| Gross premiums written | Gross premiums earned | Gross claims incurred | Gross operating expenses | Reinsurance balance | Underwriting result | |
| 202 4 | $000 | $000 | $000 | $000 | $000 | $000 |
| Additional analysis | ||||||
| Fire and other damage to property, of which is: | ||||||
| Specialities | | | ( | ( | ( | ( |
| Energy | | ( | ( | ( | | |
The gross premiums written for direct insurance by geographical risk exposure is presented in the table below .
The Other countries category includes policies with worldwide risk exposures.
202 5
202 4
$000
$000
| United Kingdom | ||
| Europe an Union | ||
| United States | ||
| Other countries | ||
| Total gross premiums written |
Notes to the financial statements
61
Confidential
Confidential
6. Claims
Favourable movements of $ 138.6m (202 4: $ 35.7 m favourable) in the past year's provision for claims
outstanding, net of expected reinsurance recoveries, are included in claims incurred, net of reinsurance. These
arose in respect of the following classes of business:
| 202 5 | 202 4 | |
| $000 | $000 | |
| Marine, aviation and transport | 5,119 | 335 |
| Fire and other damage to property | 42,191 | 15,171 |
| Third party liability | 33,931 | 13,902 |
| Reinsurance | 57,396 | 6,286 |
| Total | 138,637 | 35,694 |
7. Net operating expenses
202 5
202 4
$000
$000
| Acquisition costs | ||
| Change in deferred acquisition costs | ( | ( |
| Administrative expenses | ||
| Members' standard personal expenses | ||
| Reinsurance commissions and profit participation | ( | ( |
| Total |
Total written commissions for direct insurance business for the year amounted to $101.0m (202 4: $80.2 m).
The majority of administrative expenses are incurred by Inigo Limited, the parent company of IMAL, and are
recharged to the Syndicate in line with Group policy.
The member’s standard personal expenses are included within administrative expenses and include Lloyd’s
subscriptions, Central Fund contributions and Managing Agent’s fees.
Notes to the financial statements Notes to the financial statements Notes to the financial statements
62
Confidential
Confidential
7. Net operating expenses (continued)
Administrative expenses include:
| 202 5 | 202 4 | |
| $000 | $000 | |
| Auditors' remuneration: | ||
| fees payable to the Syndicate's auditor for the audit of these financial statements | ||
| fees payable to the Syndicate's auditor and its associates in respect of other services pursuant to legislation |
8. Key management personnel compensation
The Directors of Inigo Managing Agent Limited received the following aggregate remuneration charged to the
Syndicate and included within net operating expenses:
202 5
202 4
$000
$000
| Directors' emoluments | |
For the year ended 31 December 202 5, the directors' aggregate remuneration relate s to the remuneration
received by the directors, including that of the active underwriter, of the Managing Agent that were recharged
to the Syndicate based on time spent on services rendered to the Syndicate and is reported within net operating
expenses. This excludes performance related remuneration, which was not recharged to the Syndicate.
The active underwriter received the following aggregate amount of remuneration , which was recharged to the
Syndicate and included within directors’ remuneration above:
202 5
202 4
$000
$000
| Emoluments |
Notes to the financial statements
63
Confidential
Confidential
9. Staff numbers and costs
All staff working for Syndicate 1301 are employed by Inigo Limited . The average number of persons employed
by Inigo Limited, but working for the Syndicate , analysed by category, was as follows:
| 202 5 | 202 4 | |
| Administration and finance | ||
| Underwriting | ||
| Claims | ||
| Investments | ||
| Total |
The following amounts were recharged by Inigo Limited to the Syndicate in respect of payroll costs:
| 202 5 | 202 4 | |
| $000 | $000 | |
| Wages and salaries | ||
| Social security costs | ||
| Other pension costs | ||
| Other | ||
| Total |
Other costs in 2025 include $2.3m in relation to share -based payment expenses.
Notes to the financial statements
64
Confidential
Confidential
10. Investment return
The investment return transferred to the technical account from the non -technical account comprises the
following:
202 5
202 4
$000
$000
| Interest and similar income | ||
| From financial instruments designated at fair value through profit or loss | ||
| Interest and similar income | ||
| Interest on cash at bank | ||
| Other income from investments | ||
| From financial instruments designated at fair value through profit or loss | ||
| Gains on realisation of investments | ||
| Losses on realisation of investments | ( | ( |
| Unrealised gains on investments | ||
| Unrealised losses on investments | ( | ( |
| Investment management expenses | ( | ( |
| Total investment return | ||
| Investment return transferred to the technical account from the non -technical account | | |
The Syndicate’s investment objective is to maintain suitable levels of liquidity whilst implementing an
investment strategy targeting capital preservation and income return. The Syndicate aims to construct a
predominantly high quality, diversified portfoli o with a maturity profile and currency mix complementary to
that of the liabilities.
A distribution to members of $279. 1m will be proposed in relation to the closing year of account 202 3 (a
distribution of $ 53.6 m was made this year in relation to the closing year of account 202 2).
Notes to the financial statements
65
Confidential
Confidential
11. Financial Investments
Carrying Value
Cost
202 5
202 4
202 5
202 4
| $000 | $000 | $000 | $000 | |
| Shares and other variable yield securities and units in unit trusts | ||||
| Debt securities and other fixed income securities | ||||
| Other investments | ||||
| Total financial investments | | | |
Other investments represent overseas deposits. The financial investments of $ 1,646.5 m (202 4: $ 1,172.9m)
presented in the table above are measured at fair value through profit or loss.
The Syndicate classifies its financial instruments held at fair value in its statement of financial position using a
fair value hierarchy, as follows:
Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2 – Prices based on inputs other than quoted prices included within Level 1 that are directly or indirectly
market observable inputs.
Level 3 – Prices determined using a valuation technique for which significant inputs are not based on market
observable data .
The table below analyses financial instruments held at fair value in the Syndicate’s statement of financial
position at the reporting date by its level in the fair value hierarchy.
Notes to the financial statements
66
Confidential
Confidential
11. Financial Investments (continued)
Level 1
Level 2
Total
202 5
$000
$000
$000
| Shares and other variable yield securities and units in unit trusts | | ||
| Debt securities and other fixed income securities | |||
| Other investments | |||
| Total | | |
| Level 1 | Level 2 | Total | |
| 202 4 | $000 | $000 | $000 |
| Shares and other variable yield securities and units in unit trusts | | ||
| Debt securities and other fixed income securities | |||
| Other investments | |||
| Total | | | |
Information on the methods and assumptions used to determine fair values for each major category of financial
instrument measured at fair value is provided below.
Debt securities are generally valued using prices provided by external pricing vendors. Pricing vendors will
often determine prices by consolidating prices of recent trades for identical or similar securities obtained from
a panel of market makers into a c omposite price. The pricing service may make adjustments for the elapsed
time from a trade date to the valuation date to take into account available market information. Lacking recently
reported trades, pricing vendors will use modelling techniques to dete rmine a security price.
Some government and supranational securities are listed on recognised exchanges and are actively traded.
These are generally classified as level 1 in the fair value hierarchy. Those that are not listed and actively traded
on a recognised exchange are generally based on composite prices of recent trades in the same instrument and
are generally classified as level 2 in the fair value hierarchy.
Corporate bonds, including asset backed securities, that are not listed on a recognised exchange or actively
traded in an established over -the-counter market are also mainly valued using composite prices. Where prices
are based on multiple quotes and those quotes are based on actual recent transactions in the same instrument ,
the securities are classified as level 2, otherwise they are classified as level 3 in the fair value hierarchy.
The fair values for all securities in the fixed maturity investments portfolio are independently provided by the
investment accounting service provider, investment managers and investment custodians, each of which utilise
internationally recognised indepen dent pricing services.
Notes to the financial statements
67
Confidential
Confidential
11. Financial Investments (continued)
Overseas deposits are lodged as a condition of conducting underwriting business in certain countries. The funds
are required in order to protect policyholders in overseas markets and enable the Syndicate to operate in those
markets. The access to those fu nds is restricted and the Syndicate cannot influence the investment strategy.
The Syndicate reports the unadjusted price provided by the investment accounting service provider,
investment managers or investment custodians and validate this price through a process that includes, but is
not limited to:
(i) quantitative analysis (e.g. comparing the quarterly return for each managed portfolio to its target
benchmark);
(ii) evaluation of methodologies used by external parties to estimate fair value, including a review of
the inputs used for pricing;
(iii) comparing the price to Managing Agent’s knowledge of the current investment market.
At the reporting date all debt instruments were valued using valuation techniques based on observable market
data.
12. Debtors arising out of direct insurance operations
2025
| 202 4 | ||
| $000 | $000 | |
| Due within one year | | |
| Total | |
13. Debtors arising out of reinsurance operations
| 202 5 | 202 4 | |
| $000 | $000 | |
| Due within one year | | |
| Total |
Notes to the financial statements
68
Confidential
Confidential
14. Other debtors
| 202 5 | 202 4 | |
| $000 | $000 | |
| Other | ||
| Total | | |
15. Deferred acquisition costs
202 5
202 4
Gross
$000
Reinsurance
$000
Net
$000
Gross
$000
Reinsurance
$000
Net
$000
| Balance at 1 January | ( | ( | ||||
| Incurred costs deferred | ( | ( | ||||
| Amortisation | ( | ( | ( | ( | ||
| Effect of movements in exchange rates | ( | ( | ( | |||
| Balance at 31 December | ( | ( |
Notes to the financial statements
69
Confidential
Confidential
16. Claims development
Claims development is shown in the tables below, both gross and net of reinsurance ceded, on an underwriting
year basis. Balances have been translated at exchange rates prevailing at 31 December 202 5 in all cases.
Pure underwriting estimate –
gross
2021
2022
2023
2024
202 5
Total
$000
$000
$000
$000
$000
$000
| Estimate of ultimate gross claims | ||||||
| at end of underwriting year | | | | |||
| one year later | | | | | | |
| two years later | | | | | ||
| three years later | | | | | | |
| four years later | | | | | | |
| Estimate of gross claims reserve | | | | | | |
| Provision in respect of prior years | | |||||
| Less gross claims paid | ( | ( | ( | ( | ( | ( |
| Gross ultimate claims reserve | | | | | | |
Pure underwriting estimate –
net
2021
2022
2023
2024
202 5
Total
$000
$000
$000
$000
$000
$000
| Estimate of ultimate net claims | ||||||
| at end of underwriting year | | | | | | |
| one year later | | | | | | |
| two years later | | | | | | |
| three years later | | | | | | |
| four years later | | | | | | |
| Estimate of net claims reserve | | | | | | |
| Provision in respect of prior years | ||||||
| Less net claims paid | ( | ( | ( | ( | ( | ( |
| Net ultimate claims reserve | | | | | | |
Notes to the financial statements
70
Confidential
Confidential
17. Technical provisions
The table below shows changes in the insurance contract liabilities and asset s from the beginning of the period
to the end of the period.
202 5
202 4
Gross
provisions
Reinsurance
assets
Net
Gross
provisions
Reinsurance
assets
Net
$000
$000
$000
$000
$000
$000
Incurred claims outstanding:
| Balance at 1 January | ( | ( | ||||
| Claims paid during the year | ( | ( | ( | ( | ||
| Expected cost of current year claims | ( | ( | ||||
| Change in estimates of prior year provisions | ( | ( | ( | ( | ||
| Foreign exchange movements | ( | ( | ( | |||
| Balance at 31 December | ( | ( |
Unearned premiums
| Balance at 1 January | ( | ( | ||||
| Premiums written during the year | ( | ( | ||||
| Premiums earned during the year | ( | ( | ( | ( | ||
| Foreign exchange movements | ( | ( | ( | |||
| Balance at 31 December | ( | ( |
Notes to the financial statements
71
Confidential
Confidential
18. Creditors arising out of direct insurance operations
202 5
202 4
$000
$000
| Due within one year | | |
| Total | |
19. Creditors arising out of reinsurance operations
202 5
202 4
$000
$000
| Due within one year | | |
| Total | |
20 . Other creditors
202 5
202 4
$000
$000
| Profit commission payable | | |
| Other related party balances | | |
| Other liabilities | | |
| Total | |
Notes to the financial statements Notes to the financial statements
72
Confidential
Confidential
21. Cash and cash equivalent s
| 202 5 | 202 4 | |
| $000 | $000 | |
| Short term debt instruments presented within financial investments | | |
| Cash at bank and in hand | | |
| Total cash and cash equivalents |
22. Related parties
ICML provided 97% of the syndicate capacity for the 202 5 and 2024 year s of account , and a third party
provided the other 3% .
IMAL acts as the Managing Agent for the Syndicate. ICML and IMAL are wholly owned subsidiaries of the holding
company Inigo Limited.
IMAL charged a Managing Agent fee of $13.9m (202 4: $12.0m) and a profit commission of $1.6m (2024: $0.5m )
to the Syndicate for its services for the 202 5 calendar year. At the balance sheet date, the Syndicate owed
IMAL $ 3.4m (202 4: $3.2 m).
Inigo Limited employs the staff for Inigo Group and provides services to the Syndicate, for which the costs are
incurred and recharged to the Syndicate. Inigo Limited charged a total of $ 149.4m (202 4: $ 102.7m) to the
Syndicate in 202 5. At the balance sheet date, the Syndicate owed Inigo Limited $46.3m (2024 : $27.4 m).
23. Foreign Exchange Rates
The following currency exchange rates have been used for principal foreign currency transactions :
202 5
202 4
Start of
period rate
Year -end
rate
Average
rate
Start of
period rate
Year -end
rate
Average
rate
Australian dollar
Canadian dollar
Euro
Pound sterling
Japanese Yen
US dollar
Notes to the financial statements Notes to the financial statements
73
Confidential
Confidential
24. Funds at Lloyds
Every member is required to hold capital at Lloyd's which is held in trust and is known as FAL. These funds are
intended primarily to cover circumstances where the 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 members FAL to meet liquidity requirements or to
settle claims.
25. Post balance sheet events
In September 2025 Inigo Limited, the parent company of IMAL and ICML, entered into a definitive agreement
to be acquired by Radian Group Inc (“Radian”) in a primarily all cash transaction . The transaction closed on 2
February 2026 , following regulatory approvals. Inigo Limited and its subsidiaries (“Inigo Group”) will continue
to operate as an independent brand, under the ownership of Radian and will be led by the existing Inigo
management team.
Following the acquisition of Inigo Group by Radian, Rick Thornberry was appointed as a non -executive director
of IMAL on 2 February 2026. On the same day, Tim Hanford resigned from his position as a non -executive
director of IMAL.
26. Ultimate Parent Company
Inigo Limited, a company incorporated in the United Kingdom, is the immediate parent company of ICML and
IMAL. From 2 February 2026, Radian Group Inc, a company incorporated in the US, is the ultimate parent and
controlling party of ICML and IMAL. Prior to this date the ultimate parent and controlling party was Inigo
Limited.
For the year ending 31 December 2025, Inigo limited is the largest and smallest group of companies for which
group accounts are drawn. Copies of the consolidated financial statements of Inigo Limited can be obtained
from the Secretary, 25 Fenchurch Avenue , London, EC3 M 5A D.
Notes to the financial statements
www.inigoinsurance.com
Confidential
Confidential
