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
Markel
Syndicate 3000
Annual Report and Financial Statements
for the year ended
Syndicate 3000
Annual Report and Financial Statements
for the year ended
31 December 2025
Contents
Directors and Administration
1
Report of the Directors of the Managing Agent
3
Statement of Managing Agent's Responsibilities
14
Independent Auditor's Report to the Member of Syndicate 3000
15
Statement of profit or loss and other comprehensive income
20
Statement of financial position
22
Statement of changes in member's balances
24
Statement of cash flows
25
Notes to the Financial Statements
26
Annual Report and Financial Statements for the year ended
31 December 2025
Directors and Administration
Managing Agent
Board of Directors
John W J Spencer
(Chair)
Wai-Fong Au
Andrew J Davies
Alexander W Finn
Henry G L Gardener
Thomas J Hillier
Andrew N McMellin
Kalpana Shah
Company Secretary
Lara Teesdale
Managing Agent’s registered office
20 Fenchurch Street
London
EC3M 3AZ
Managing Agent’s registered number
3114590
Syndicate
3000
Active Underwriter
Thomas J Hillier
Bankers
Bank of New York
Barclays Bank PLC
Citibank N.A.
Royal Bank of Canada
Royal Trust
1
Syndicate 3000
Annual Report and Financial Statements for the year ended
31 December 2025
Investment Managers
Markel Gayner Asset Management LLC
Registered Auditor
KPMG LLP, London
Lawyers
Norton Rose Fulbright LLP, London
Directors' Interest
The Syndicate is supported 100% by Markel Capital Limited ("MCAP") and therefore no Director has any
participation.
Syndicate 3000
2
Annual Report and Financial Statements for the year ended
31 December 2025
Report of the Directors of the Managing Agent
The Directors of the Managing Agent, Markel Syndicate Management Ltd ("MSM"), present the financial
statements of
Syndicate 3000 for the year ended
31 December 2025.
This annual report is prepared using the annual basis of accounting as required by Statutory Instrument No
1950 of 2008, the Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations
2008 and applicable United Kingdom Accounting Standards, including Financial Reporting Standard 102: The
Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (‘FRS102’) and
Financial Reporting Standard 103: Insurance Contracts (‘FRS103’).
Review of the business
Markel Syndicate 3000 (the “Syndicate”) is the Lloyd’s platform for Markel International which is the
international insurance operations for Markel Group Inc. ("Markel" or “Markel Group”). Markel International
also writes business through Markel International Insurance Company Limited (“MIICL”) and Markel
Insurance SE ("MISE").
The principal activity of the Syndicate is the underwriting of general insurance and reinsurance business from
its offices in London and its overseas operations in Canada, Singapore, Labuan, Hong Kong, Dubai, China,
India and Australia.
Business profile and units
The Syndicate operates three underwriting units within the London Market, namely marine and energy,
professional and financial risks, and cyber ("PFR and cyber") and specialty.
In Canada, Markel Canada Limited ("Markel Canada"), a wholly owned subsidiary of the Markel Group,
underwrites a diverse portfolio of property and casualty coverages for Canadian domiciled insureds, which is
placed through the Syndicate.
Markel Canada provides casualty, environmental liability, professional and financial risks, Markel Connect,
property package, life sciences liability, security and protection industry liability, Markel Care and Markel Play.
Our teams working in Singapore, Hong Kong, Kuala Lumpur, Mumbai, Shanghai, Sydney, Melbourne,
Brisbane and Dubai provides cover for marine and energy, PFR and cyber, casualty, and trade credit risks
throughout the Asia Pacific region.
In Asia, the Syndicate's Singapore office operates as a regional hub, supporting the Labuan and Hong Kong
offices. The Syndicate is also a member of Lloyd's platforms in Dubai, China, Japan, India and Australia.
The Syndicate provides non-life reinsurance to Lloyd's Insurance Company S.A ("Lloyd's Brussels"),
supporting European Economic Area ("EEA") clients. Lloyd’s Brussels is authorised and regulated by the
National Bank of Belgium.
3
Syndicate 3000
Annual Report and Financial Statements for the year ended
31 December 2025
The three underwriting units in the London Market are:
Marine and Energy
The marine and energy liability account offers a range of traditional marine liability cover as well as ports and
terminals, marine trades, and energy offshore and onshore coverages. Marine coverage includes primary and
excess coverage for cargo, hull and war, specie, and terrorism risks.
Energy offers coverage on a worldwide
basis for all aspects of upstream, downstream, midstream oil and gas activities. Coverage includes business
interruption or loss of production income, construction of energy related structures, control of wells and
physical damage to installations. The team also offers coverage for renewable energy sources including
coverage for the full life-cycle of onshore and offshore wind farms and solar photovoltaic installations, from
procurement to construction of the completed operations.
The cargo account comprises a broad portfolio of transit and storage risk across many industries on a
worldwide basis (excluding sanctioned territories). The hull and war account offers a full range of products
on a worldwide basis including marine war, specialist tonnage, builders risks, mortgages interest and port
risks. The terrorism account provides protection on a worldwide basis (excluding sanctioned territories)
against physical damage, business interruption and contingency losses directly caused by acts of war,
terrorism, and political violence. The specie account includes a range of cover for jewellers' block and cash in
transit, on a worldwide basis. The transport and logistics account covers a wide range of UK marine
professionals, from boat manufacturers, boat dealers and commercial crafts, to marinas, ports, yacht clubs,
and sailing schools.
In November 2025, Markel International announced its new Construction & Engineering practice, offering
global Construction All Risks ("CAR") and Erection All Risks ("EAR") products. CAR provides cover for a wide
range of construction projects, while EAR offers specialist cover for energy and industrial installations.
Markel completed the acquisition of the Michael Else & Company group of companies ("MECO") in May 2025,
to strengthen our marine capabilities with a highly complementary portfolio of specialist products, deep
sector expertise and established distribution with products including Aurora, Charterers Protection &
Indemnity, and transmarine brands.
PFR and Cyber
The Professional and Financial Risks team provides cover on a worldwide basis. This team underwrites
professional indemnity, entertainment, financial institutions insurance, commercial directors' and officers'
liability ("D&O"), financial technology ("Fintech") cover, technology and media cover and warranty and
indemnity. The Markel Cyber 360 policy is a standalone primary cyber insurance product. Key coverages
include, privacy breach notification, extortion costs cover, regulatory investigations and fines, cyber and
privacy liability, E-media, and professional and technology services liability.
The professional indemnity account services most core, regulated and miscellaneous professions which
include architects and engineers, insurance brokers, recruitment agents and more.
The entertainment team writes a broad book of film and media insurance. Advertising agents' insurance,
commercial producers' insurance and film production insurance are the mainstays of the book and we are
also able to offer both employers' and public liability for companies involved in film shoots.
Financial institutions insurance can provide cover on a stand-alone basis or as a blended package to include
bankers blanket bond, professional indemnity and D&O, depending on the client's requirements. The cover is
provided on a worldwide basis (excluding sanctioned territories).
Commercial D&O offer market leading products which provide a wide range of coverage to ensure protection
for directors and officers of companies of all types and sizes. It covers companies in the FTSE 100 and the
financial services sector along with non-financial industries as well.
Syndicate 3000
4
Annual Report and Financial Statements for the year ended
31 December 2025
Fintech provides cover for a range of fintech companies, including those offering neo banking, payments,
investech, wealthtech, insurtech and lendtech services. The modular 'FintechRisk+' policy gives clients the
flexibility to choose the covers that suit them, including professional liability, D&O liability, theft and cyber
liability and loss.
Technology and media provides modular cover for clients in the technology and telecommunications field,
specialising in media, film, television, patent/intellectual property insurance, as well as information
technology, telecommunications and cyber/privacy risks.
Warranty and indemnity provides cover to clients in mergers and acquisitions, including both funds and
corporations. It covers transactions across most sectors and specialise in professional services, financial
institutions, technology, media, consumer and energy.
International Specialty
Trade Credit and Political Risk
Our trade credit and political risk teams have extensive experience and knowledge of commercial
counterparty and country risks across a wide variety of trade sectors and markets. The key benefits we
provide for our clients include: security of non-cancellable credit and country limits; balance sheet and cash
flow protection; improved terms for bank financing facilities; and bonds and guarantees to assist with
working capital management.
The trade credit team specialises in insurance solutions with a focus on risk management, providing
insurance coverage to help protect businesses. Coverage includes prepayment cover, insolvency and default,
trade finance solutions, captive reinsurance, syndicated co-insurance solutions and financial institutions.
The political risk team works with clients to manage their cross-border portfolios and overseas investments
with tailored, specialist policies. The key clients include financial institutions, corporates, exporters, and
traders. The account has a broad range of coverage including insolvency or default by either a public or
privately owned entity, licence cancellation, aircraft and vessel repossession, mortgage rights insurance and
currency inconvertibility and exchange transfer.
Equine and Livestock
The equine account offers a wide portfolio of products including bloodstock and equine liability to suit a
broad range of risks, from large stud farms to individual horses.
The livestock account provides a wide range of cover including farm combined, mortality, disease and
business interruption across farm, zoo and other animal interests. Risks are also underwritten through the
Lloyd’s livestock consortium led by the Syndicate.
International Casualty
The International Casualty team operates across London, Australia, Dubai and Asia. Markel offers products to
support the needs of insureds offering bespoke wordings on a primary and excess basis, covering public,
products, premises and pollution liability, environmental liability, clinical trials, and life sciences.
Clinical trials policies are offered to a number of organisations, including research organisations, universities,
clinical trial sponsors and sites, as well as providing cover for investigator-led studies and charities' clinical
trial exposures.
Markel offers life science insurance for a number of different markets, including but not limited to
pharmaceuticals, medical devices, research and development companies, biotechnology companies, as well
as laboratory exposures and cosmetics.
5
Syndicate 3000
Annual Report and Financial Statements for the year ended
31 December 2025
Structure Portfolio Solutions ("SPS")
Our SPS portfolio was established in January 2025 to allow us to participate intelligently in the growing
smart-follow, multi-line facility market. It provides Markel with an efficient mechanism to 'index' the market,
diversify intently, and access richer data to enhance underwriting decisions. This capability strengthens our
relevance with major trading partners, provides accretive capacity at a low expense base, and supports more
resilient, cycle aware portfolio management.
Results and performance
The results for the year, as set out on page 21, show a profit for the financial year of £153.6m (
2024,
£145.7m profit).
As set out on page 7, the underwriting result is a profit of £100.6m or 84.9% combined ratio (
2024, £113.4m
profit or 80.6% combined ratio). Contributing to the strong underwriting result was the claims loss ratio
which benefited from favorable development on prior year claims reserves.
The investment return was a profit of £59.8m (
2024, £38.1m profit) generating a yield of 5.3% on the
investment portfolio, compared to a yield of
4.0% in
2024. The favourable return for the year was driven by
strong investment income generated from fixed and short-term investments, as well as equities, money
market instruments and short-term treasury bills.
The profit for the financial year of £153.6m (
2024,
£145.7m profit) reflects the underwriting profit described
above and the favourable investment return.
Syndicate 3000
6
Annual Report and Financial Statements for the year ended
31 December 2025
Key Performance Indicators
We set out below our financial key performance indicators. We do not use non-financial key performance
indictors to manage the performance of the Syndicate.
2021
£'m
2022
£'m
2023
£'m
2024
£'m
2025
£'m
Gross written premiums
482.6
623.6
701.5
785.5
927.5
Net written premiums
406.1
498.2
479.6
619.2
730.7
Retention rate
84.1%
79.9%
68.4%
78.8%
78.8%
Net earned premiums
409.0
465.3
452.6
580.5
665.1
Net underwriting profit/(loss)
20.0
(1.6)
52.5
113.4
100.6
Claims loss ratio
54.5%
61.6%
40.0%
34.9%
38.7%
Expense ratio
40.6%
38.7%
48.4%
45.7%
46.2%
Combined ratio
95.1%
100.3%
88.4%
80.6%
84.9%
Investment return
(9.6)
(50.1)
43.3
38.1
59.8
Investment yield
(0.8)%
(4.2)%
4.1%
4.0
%
5.3%
Profit/(loss)
10.5
(38.9)
89.5
145.7
153.6
Statement of Financial Position
2021
£'m
2022
£'m
2023
£'m
2024
£'m
2025
£'m
Financial investments and cash
968.1
1,030.9
1,031.9
1,038.9
1,105.8
Gross claims outstanding
1,146.5
1,310.5
1,223.1
1,231.7
1,243.0
Reinsurers' share of claims outstanding
184.4
256.2
303.5
360.7
353.8
Net claims outstanding
962.1
1,054.4
919.6
871.0
889.2
Three Year Accounting Data
2021
£'m
2022
£'m
2023
£'m
2024
£'m
2025
£'m
Syndicate Capacity
486.0
500.0
645.5
736.0
934.3
Underwriting result
29.8
105.0
71.0
Investment result
12.2
21.7
50.9
Result on closure
42.0
126.7
121.9
Forecast return at 12 months
6.3%
6.8%
12.0%
11.2%
11.0%
Forecast return at 24 months
9.7%
15.9%
15.3%
20.5%
Return on capacity at closure
8.6%
25.3%
18.9%
7
Syndicate 3000
Annual Report and Financial Statements for the year ended
31 December 2025
Underwriting profit of £284.9m over the five year period of 2021 –
2025, generated an average combined
ratio of 88.9%:
The 2021 year was impacted by £8.2m of natural catastrophe losses, a £7.6m deterioration on the
COVID-19 loss estimates and £4.6m of loss estimates for the South Africa Riots large loss.
The 2022 year was impacted by losses on the Russia Ukraine conflict of £3.8m and a £15.7m
deterioration on the COVID-19 loss estimates. In response to the high inflation environment experienced
there was also an additional £14.8m of reserve loadings included in the losses reported. Partially
offsetting the adverse experience are releases from prior year reserves of £13.6m.
The 2023 year was impacted by prior year reserve releases of £42.6m as a result of favourable claims
development. This is partially offset by £9.4m of net catastrophe losses.
The 2024 year was impacted by prior year reserve releases of £70.2m as a result of more favourable
claims development, this was partially offset by £11.4m of net catastrophe losses.
The 2025 year was impacted by prior year reserve releases of £68.3m, reflecting more favourable claims
development, and significantly lower net catastrophe losses than originally anticipated.
Excluding COVID-19, the Russia Ukraine conflict, and natural catastrophe losses there was an underwriting
profit over the five year period of 2021 –
2025 of £348.8m, generating an average combined ratio of 86.4%.
The underwriting performance includes results of business lines that were exited in 2018 and 2020 (Open
Market Property, Contingency) or heavily restructured (Marine). The COVID-19 losses were predominantly
driven by event cancellation impacting our Contingency book. During 2020 the decision was taken to exit this
class of business as part of our underwriting assessment.
Profit of £360.4m over the period 2021 to
2025 is a result of favourable claims development and high
investment returns. An average return on capacity of 8.0% for the 2002 to 2023 closed years of account.
Events since the reporting date
There have been no material events since the reporting date.
Syndicate 3000
8
Annual Report and Financial Statements for the year ended
31 December 2025
Going concern and future outlook
The Directors of the Managing Agent ("Directors") have conducted their going concern assessment and have
concluded that there are no material uncertainties that could cast significant doubt over the Syndicate’s
ability to continue as a going concern for at least a year from the date of approval of the financial statements
(“the going concern period”).
As part of their assessment, the Directors have evaluated the relevant solvency and liquidity risks to the
Syndicate which includes examining the capital position which is subject to stress and scenario-based testing.
The Syndicate continues to monitor its capital position and takes necessary underwriting actions on its future
business. There is no intention to liquidate the Syndicate or to cease its operations. The 2026 year of account
has been established, and the Directors expect to establish a 2027 year of account, and are not aware of any
reason why this will not be possible. Where there are any short-term liquidity requirements, Markel Group
has made available a loan facility to Syndicate 3000. The Syndicate's capacity for the 2026 year of account is
£904.2m (2025, £934.3m).
With disciplined underwriting and a strong asset base, inclusive of the Funds at Lloyd's supporting the
Syndicate's underwriting, the Syndicate is in an excellent position to capitalise on opportunities as they arise.
The Syndicate will continue to apply Markel’s underwriting discipline of underwriting for profit rather than
volume and, accordingly, will decline business where the rates are not acceptable.
As part of the Directors' going concern assessment, cybersecurity risks have been considered given their
potential to impact operational resilience and financial reporting. Cyber-attacks represent a systemic and
evolving risk to the insurance market and the wider financial services sector. Threats include ransomware,
data breaches, and disruption to critical systems, which could impact underwriting operations, claims
processing, and financial reporting. The Syndicate implemented an enterprise-wide cyber risk framework,
detailed in the ‘Principal risks and uncertainties’ section on page 11.
Based on the above assessment, including stress testing and mitigation strategies, the Board considers that
the Syndicate has adequate resources and controls to manage the impact of potential cyber incidents.
The Syndicate will continue to look to develop new lines of business and markets, within the parameters of
the overall underwriting strategy. The Syndicate invests in high-quality corporate, government and municipal
bonds as well as a diverse equity portfolio and plans to continue this investment strategy in 2026.
Accordingly, the financial statements have been prepared on a going concern basis.
9
Syndicate 3000
Annual Report and Financial Statements for the year ended
31 December 2025
Principal risks and uncertainties
The Syndicate has a risk register detailing the risks to which it is exposed, which includes all business
underwritten by the Syndicate. Risks are grouped under the following categories:
• Underwriting Risk
• Reserving Risk
• Asset Risk
• Credit Risk
• Liquidity Risk
• Solvency Capital Risk
• Operational Risk
The risk and capital management note (note 4) provides a detailed explanation of the above risk categories.
The risks arising from climate change, and Lloyd's of London’s response to it, are multifaceted, occur over an
extended time horizon and are dependent on the severity of the changes in the climate. These risks continue
to develop and the relative impact will be dependent on a number of aspects such as industry changes,
Government policy changes and the speed with which those changes are implemented.
The Board has ultimate responsibility for the Syndicate's approach to responsible business which includes
consideration of climate risks. The Board approved the establishment of a special purpose ‘Responsible
Business Committee’, during the 2024 calendar year. The Responsible Business Committee considers
environmental matters, including the impact of these on the Syndicate’s business, and the impact of the
Syndicate’s business on the environment.
Climate risk can be broadly divided into three categories: physical, transition and liability. Physical risk relates
to the change in climate and weather events which have the potential to directly affect the economy. This
includes the risk of higher claims as a result of more frequent and more intense natural catastrophes.
Scenario analysis of differing levels of claims are included within our standard underwriting risk assessment.
Transition risk can occur when moving towards a lower carbon economy and how the speed of the transition
may affect certain sectors and affect financial stability. Liability risk refers to potential increased litigation
against policyholders from individuals or businesses who have experienced losses because of physical or
transition risk.
Potential risks are regularly reviewed by the Risk, Capital and Compliance Committee ("RCCC") and risks are
addressed within the underwriting, risk and audit functions, although Responsible Business activity is not
segregated from the other work of these functions, but rather embedded in their operations.
The risks arising from inflation, the impact it has on the economy and the insurance industry’s response to it
form a key consideration going forward. Inflation risks in the current environment are influenced by both
short-to-mid term trends (e.g. the state of the economy, geopolitical events and cybercriminal activity), as
well as by long-term trends (e.g. social/excess inflation, other frequency events such as the impact of new
technology, safety improvements and other severity effects such as repair cost changes out of line with
Retail Price Index/Consumer Price Index). We have considered recent trends in inflation throughout our
strategic planning and business management activities. The impacts of inflation on open years of account as
well as on subsequent years are regularly assessed and considered, with actions and measures presented to
the RCCC but equally to key committees regarding Claims, Reserving and Finance.
Syndicate 3000
10
Annual Report and Financial Statements for the year ended
31 December 2025
The current global landscape is marked by heightened geopolitical tensions and uncertainties. Factors such
as international conflicts, trade disputes, and political instability in key regions can disrupt markets, interrupt
supply chains, affecting the syndicate’s investment returns, and also leading to increased insurance claims.
Additionally, regulatory changes and sanctions can impact our ability to operate in certain jurisdictions. We
monitor developments in these areas and adjust our risk management and business strategies to mitigate
against the potential adverse effects that such events may have on the Syndicate. The potential impacts of
changes in the geopolitical environment are regularly assessed and considered, with actions and measures
presented to the RCCC but equally to the Underwriting and Finance Committees.
There are currently 32 risks in the Risk Register. Each risk has an allocated Risk Owner and Risk Manager.
The Risk Owner is responsible for identifying the risks associated with their objectives, assessing the impact
of those risks on their objectives, acting where necessary to mitigate those risks, including (but not limited
to) reporting on appropriate metrics to measure the success and risks related to the achievement of their
objectives. The Risk Manager is responsible for supporting the Risk Owner and assess the performance of
their risk and ensure that there is an adequate level of control in place by making recommendations to the
Control Owners. A quarterly confirmation is sought from the Control Owners of these controls to confirm the
effectiveness of the design and operation of their controls.
The RCCC meets quarterly to consider compliance with the Board’s risk appetite and Key Risk Indicators and
any risk issues that have arisen. These are summarised in the Chief Risk Officer's quarterly report to the
Board.
An Own Risk and Solvency Assessment report is produced at least annually which is a forward-looking
assessment of the risk profile and adequacy of the Syndicate's capital to meet solvency needs over the
business planning time horizon. The Syndicate is in compliance with Solvency UK regulation.
Cyber-attacks represent a systemic and evolving risk to the insurance market and wider financial services
sector. Threats include ransomware, data breaches, and disruption to critical systems, which could impact
underwriting operations, claims processing, and financial reporting. The Syndicate has an established
enterprise-wide cyber risk framework which includes:
Governance framework and oversight:
Implementation of the globally recognised National Institute of
Standards and Technology ("NIST") Cybersecurity Framework which utilises the NIST Special Publication
800-53 control catalogue. Regular reporting to the Risk, Capital and Compliance Committee and Board
on cyber risk, with support provided by the Chief Information Security Officer.
System and Organisation Controls for cybersecurity: Completion of an external assessment of the
Cybersecurity Risk Management Program has been conducted by independent, qualified auditors.
Proactive Threat Intelligence Gathering: Utilisation of technology to stay ahead of potential cyber threats
and vulnerabilities.
Continuous monitoring: Real-time threat and vulnerability detection across infrastructure, applications,
and third-party dependencies, supported by external intelligence feeds and internal security operations.
Incident response: Tested cyber incident response and business continuity plans, including recovery time
objectives.
Third-party risk management: Enhanced due diligence and monitoring of outsourced service providers
and supply chain partners.
The Board continues to monitor and evaluate its risks associated with cybersecurity on a regular basis, taking
mitigating actions when needed.
11
Syndicate 3000
Annual Report and Financial Statements for the year ended
31 December 2025
Directors
The Directors of the Managing Agent who served during
2025 and up to the date of this report were as
follows:
John W J Spencer
(Chair)
Wai-Fong Au
Andrew J Davies
Alexander W Finn
Henry G L Gardener
Thomas J Hillier
(Appointed 12/12/2025)
Nicholas J S Line
(Resigned 31/10/2025)
Andrew N McMellin
(Appointed 02/09/2025)
Kalpana Shah
Simon Wilson
(Resigned 02/09/2025)
Markel maintains liability insurance cover on behalf of the Directors and named officers of the Managing
Agent.
The Syndicate is supported 100% by MCAP and therefore no Director has any participation.
Corporate governance
Markel Syndicate Management Limited, the Lloyd's Managing Agent of the Syndicate, is authorised by the
Prudential Regulation Authority ("PRA") and regulated by the Financial Conduct Authority ("FCA"). The Board
includes four non-executive Directors and meets at least quarterly. Sub-committees of the Board include the
Executive Committee, Audit Committee, Risk, Capital and Compliance Committee, Reserving Committee,
Finance Committee, Remuneration Committee and Nominations Committee. A number of Management
Committees, including Committees with a divisional focus, report to the Executive Committee.
Financial instruments and risk management
Information on the use of financial instruments by the Syndicate and its management of financial risk is
disclosed in note 4 of the financial statements. In particular, the Syndicate's exposures to price risk, credit
risk and liquidity risk are separately disclosed in that note. The Syndicate's exposure to cash flow risk is
addressed under the headings of 'Asset risk', 'Credit risk' and 'Liquidity risk'.
Carbon policy
As set out in the “Markel Style”, the Syndicate has a commitment to its communities, which we recognise
includes environmental responsibilities. Our goal is to minimise our environmental impact whilst still adhering
to our other principles as expressed in the "Markel Style" and our company profile. The "Markel Style" is a
statement of Markel’s core values which underpin how we do business, influence our behaviour, and govern
our actions.
Through the development of best practices in our business, the Syndicate aims to use no more consumables
than are necessary and recycle the maximum of those we do use. The Directors also believe that embedding
environmental awareness throughout the organisation will be best achieved through a continuous
programme of employee education.
Syndicate 3000
12
Annual Report and Financial Statements for the year ended
31 December 2025
Disclosure of information to the Auditor
The Directors of the Managing Agent who held office at the date of approval of this Report of the Managing
Agent 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.
Auditor
Pursuant to Section 14(2) of Schedule 1 of the Insurance Accounts Directive (Lloyd's Syndicate and
Aggregate Accounts) Regulations 2008, the auditor will be deemed to be reappointed and
KPMG LLP will
therefore continue in office.
Annual general meeting
As permitted under the Syndicate Meetings (Amendment No 1) Byelaw (No 18 of 2000) the sole corporate
member has agreed that no annual general meeting will be held for the Syndicate.
By order of the Board,
Andrew Davies
Director
London
2
6
February 2026
13
Syndicate 3000
Annual Report and Financial Statements for the year ended
31 December 2025
Statement of Managing Agent's Responsibilities
The Directors of the Managing Agent are responsible for preparing the Syndicate financial statements in
accordance with applicable law and regulations.
The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 require the
Directors of the Managing Agent to prepare Syndicate financial statements at 31 December for each financial
year. Under that law they have elected to prepare the financial statements in accordance with UK accounting
standards and applicable law (UK Generally Accepted Accounting Practice), including FRS 102 the Financial
Reporting Standard applicable in the UK and Republic of Ireland.
Under Insurance Accounts Directive (Lloyd's Syndicate and Aggregate Accounts) Regulations 2008 the
Directors of the Managing Agent must not approve the financial statements 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 financial statements, the Directors of the Managing Agent are required to:
• select suitable accounting policies which are applied 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 financial statements;
• assess the Syndicate's ability to continue as a going concern, disclosing, as applicable, matters related to
going concern;
• use the going concern basis of accounting unless they either intend to cease trading, or have no realistic
alternative but to do so; and
• oversee the preparation and review of the iXBRL tagging that has been applied to the Syndicate Accounts
in accordance with the instructions issued by Lloyd’s, including designing, implementing and maintaining
systems, processes and internal controls to result in tagging that is free from material non-compliance with
the instructions issued by Lloyd’s, whether due to fraud or error.
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 Syndicate financial statements
comply with the Insurance Accounts Directive (Lloyds’s Syndicate and Aggregate Accounts) Regulations
2008. They are responsible for such internal control as they determine is necessary to enable the preparation
of Syndicate financial statements that are free from material misstatement, whether due to fraud or error,
and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets
of the company and to prevent and detect 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 Syndicate’s website. Legislation in the UK governing the preparation and dissemination of Syndicate
financial statements may differ from legislation in other jurisdictions
.
We confirm that to the best of our knowledge the syndicate accounts, including the iXBRL tagging applied to
these accounts, comply with the requirements of the Lloyd’s Syndicate Accounts Instructions version 3.1 as
modified by the Frequently Asked Questions version 1.1 issued by Lloyd's.
By order of the Board,
Andrew Davies
Director
London
2
6
February 2026
Syndicate 3000
14
Annual Report and Financial Statements for the year ended
31 December 2025
Independent Auditor's Report to the Member of
Syndicate
3000
Opinion
We have audited the Syndicate financial statements of Syndicate 3000 (“the Syndicate”) for the year ended
31 December 2025 which comprise the Statement of Profit or Loss and Other Comprehensive Income,
Statement of Financial Position, Statement of Changes in Members’ Balances, Statement of Cash Flows, and
related notes, including the accounting policies in note 2.
In our opinion the Syndicate financial statements:
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 issued by the Council of Lloyd’s, as modified by the Syndicate Accounts
Frequently Asked Questions Version 1.1 dated 13 February 2026 issued by the Council of Lloyd’s
(together “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 5 August 2025, the Syndicate Accounts
Instructions. Our responsibilities are described below. 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 evidence 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 financial statements 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 position 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 financial statements (“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 period, including inspecting correspondence with the Council of Lloyd’s to
assess whether there were any known impediments to establishing a further year of account.
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 financial statements 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 concern for the going concern period.
15
Syndicate 3000
Annual Report and Financial Statements for the year ended
31 December 2025
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 Syndicate will continue in operation.
Fraud and breaches of laws and regulations – ability to detect
Identifying and responding to risks of material misstatement due to fraud
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 included:
Enquiring of directors, the audit committee, internal audit, legal, risk and compliance, and management,
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 the 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 other relevant meeting minutes;
Considering remuneration incentive schemes and performance targets; and
Using analytical procedures to identify any unusual 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, we perform procedures to address the risk of management override of
controls, in particular the risk that management may be in a position to make inappropriate accounting
entries and the risk of bias in accounting estimates and judgements such as incurred but not reported
(“IBNR”) reserves. On this audit we do not believe there is a fraud risk related to revenue recognition
because of the limited estimation involved in accruing premium income.
We did not identify any additional fraud risks.
We performed procedures including:
Identifying journal entries to test based on risk criteria and comparing the identified entries to supporting
documentation. These included entries posted with key words, entries posted by unauthorised users,
entries posted to unusual accounts with a corresponding entry to cash, entries posted by seldom users to
accounts related to significant estimates, entries posted by senior management, and entries posted and
approved by the same user; and
Assessing whether the judgements made in making accounting estimates are indicative of a potential
bias, including assessing the appropriateness and consistency of the methods and assumptions used for
reserving. For a selection of classes of business we considered to be high risk, we performed alternative
reprojections to the actuarial best estimate using our own gross loss ratios and compared these to the
Syndicate’s results, assessing the results for evidence of bias.
Identifying and responding to risks of material misstatement related to compliance with laws and regulations
We identified areas of laws and regulations that could reasonably be expected to have a material effect on
the financial statements from our general commercial and sector experience and through discussion with the
directors and other management (as required by auditing standards), and from inspection of the Syndicate
and Managing Agent’s regulatory 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.
Syndicate 3000
16
Annual Report and Financial Statements for the year ended
31 December 2025
The potential effect of these laws and regulations on the financial statements varies considerably.
Firstly, the Syndicate is subject to laws and regulations that directly affect the financial statements including
financial reporting legislation (such as the Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate
Accounts) Regulations 2008 and 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 financial statement
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 financial statements, for instance
through the imposition of fines or litigation or the loss of the Syndicate’s license to operate.
We identified
the following areas as those most likely to have such an effect regulatory capital requirements, corruption
and bribery, recognising the 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 of operational regulations is not disclosed to us or evident from relevant
correspondence, an audit will not detect that breach.
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 financial statements, 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 financial
statements, the less likely the inherently limited procedures required by auditing standards would identify it.
In addition, as with any audit, there remained a higher risk of non-detection of fraud, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit
procedures are designed to detect material 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 financial statements 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 financial statements audit work, the information therein is materially
misstated or inconsistent with the Syndicate financial statements 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 financial statements; 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.
17
Syndicate 3000
Annual Report and Financial Statements for the year ended
31 December 2025
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 financial statements 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.
Responsibilities of the Directors of the Managing Agent
As explained more fully in their statement set out on page 14, the Directors of the Managing Agent are
responsible for: the preparation of the Syndicate financial statements in accordance with the requirements of
the Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 and the
Syndicate 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 financial statements that 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 they 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 financial statements 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 level 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 financial statements.
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 tagged document has been prepared in accordance with those
requirements.
Syndicate 3000
18
Annual Report and Financial Statements for the year ended
31 December 2025
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 Agent, and
for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to
anyone other than the Syndicate and the Syndicate’s members, as a body, for our audit work, for this report,
or for the opinions we have formed.
Timothy Butchart (Senior Statutory Auditor)
for and on behalf of
KPMG LLP, Statutory Auditor
Chartered Accountants
15 Canada Square
London
E14 5GL
2
6
February 2026
19
Syndicate 3000
Annual Report and Financial Statements for the year ended
31 December 2025
Statement of profit or loss and other comprehensive income
Technical account - General business
For the year ended
31 December 2025
2025
2024
Notes
£'000
£'000
Gross premiums written
5
Outward reinsurance premiums
(196,816 )
(166,224 )
Premiums written, net of reinsurance
Changes in unearned premium
17
Change in the gross provision for unearned premium
(72,244 )
(51,864 )
Change in the provision for unearned premiums reinsurers' share
Net change in provisions for unearned premiums
(65,617 )
(38,749 )
Earned premiums, net of reinsurance
Allocated investment return transferred from the non-technical
account
9
Claims paid
17
Gross amount
(265,012 )
(279,824 )
Reinsurers' share
Net paid claims
(207,759 )
(230,656 )
Change in the provision for claims
17
Gross amount
(55,705 )
(25,019 )
Reinsurers' share
Net change in provision for claims
(49,611 )
Claims incurred, net of reinsurance
(257,370 )
(202,014 )
Net operating expenses
6
(307,115 )
(265,128 )
Balance on the technical account - general business
The notes on pages 26 to 60 form part of these financial statements.
Syndicate 3000
20
Annual Report and Financial Statements for the year ended
31 December 2025
Statement of profit or loss and other comprehensive income
(cont'd)
Non-Technical Account
for the year ended
31 December 2025
Notes
2025
£'000
2024
£'000
Balance on the technical account - general business
Investment income
9
Realised gains on investments
9
Unrealised gains on investments
9
Investment expenses and charges
9
(2,794 )
(2,337 )
Total investment return
Allocated investment return transferred to the general business technical
account
(59,837 )
(38,063 )
Loss on foreign exchange
(6,846 )
(5,732 )
Profit for the financial year
Other comprehensive income
Currency translation (loss)/gain
(3,782 )
Total comprehensive income for the year
The notes on pages 26 to 60 form part of these financial statements.
21
Syndicate 3000
Annual Report and Financial Statements for the year ended
31 December 2025
Statement of financial position
as at
31 December 2025
2025
2024
Notes
£'000
£'000
Financial investments
11
Deposits with ceding undertakings
Investments
Provisions for unearned premiums
17
Claims outstanding
17
Reinsurers' share of technical provisions
Debtors arising out of direct insurance operations
12
Debtors arising out of reinsurance operations
13
Other debtors
14
Debtors
Cash at bank and in hand
22
Other assets
Accrued interest and rent
Deferred acquisition costs
15
Other prepayments & accrued income
Prepayments and accrued income
Total Assets
The notes on pages 26 to 60 form part of these financial statements.
Syndicate 3000
22
Annual Report and Financial Statements for the year ended
31 December 2025
Statement of financial position (cont'd)
as at
31 December 2025
2025
2024
Notes
£'000
£'000
Members' balance
Total Capital and reserves
Provisions for unearned premiums
17
Claims outstanding
17
Technical provisions
17
Creditors arising out of direct insurance operations
19
Creditors arising out of reinsurance operations
20
Other creditors including taxation and social security
21
Creditors
Accruals and deferred income
Total Liabilities
Total liabilities, capital and reserves
The notes on pages 26 to 60 form part of these financial statements.
The Syndicate financial statements on pages 20 to 60 were approved by the Board of Directors on
25
February 2026 and were signed on behalf of MSM by Andrew Davies, Company Director.
Andrew Davies
Director
London
2
6
February 2026
23
Syndicate 3000
Annual Report and Financial Statements for the year ended
31 December 2025
Statement of changes in member's balances
for the year ended
31 December 2025
2025
£'000
2024
£'000
Members' balances brought forward at 1 January
Total comprehensive income for the year
Payments of profit to members' personal reserve funds
(126,682 )
(42,025 )
Members' balance carried forward at
31 December
The notes on pages 26 to 60 form part of these financial statements.
Syndicate 3000
24
Annual Report and Financial Statements for the year ended
31 December 2025
Statement of cash flows
for the year ended
31 December 2025
2025
2024
Note
£'000
£'000
Cash flows from operating activities
Profit for the financial year
Adjustments
Increase/(decrease) in gross technical provisions
(Increase)/decrease in reinsurers' share of gross technical provisions
(12,725 )
(66,776 )
(Increase)/decrease in debtors
(92,227 )
(39,451 )
Increase/(decrease) in creditors
(39,823 )
Investment return
(59,837 )
(38,063 )
Foreign exchange
(11,445 )
Net cash flows from operating activities
Net cash flows from investing activities
Purchases of equity and debt instruments
(253,982 )
(1,476,697 )
Sale of equity and debt instruments
Investment income received
Other
(26,295 )
Net cash flow from investing activities
(50,410 )
Cashflow from financing activities
Distribution of profit
(126,682 )
(42,025 )
Net cash flows from financing activities
(126,682 )
(42,025 )
Net increase/(decrease) in cash and cash equivalents
(11,309 )
Cash and cash equivalents at the beginning of the year
Foreign exchange on cash and cash equivalents
(11,530 )
(2,534 )
Cash and cash equivalents at the end of the year
22
The notes on pages 26 to 60 form part of these financial statements.
25
Syndicate 3000
Annual Report and Financial Statements for the year ended
31 December 2025
Notes to the Financial Statements
1
Statement of compliance and basis of preparation
The financial statements have been prepared in accordance with the Insurance Accounts Directive
(Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008, applicable Accounting Standards in
the United Kingdom and the Republic of Ireland, including Financial Reporting Standard 102 (FRS
102), Financial Reporting Standard 103 (FRS 103) in relation to insurance contracts, and the
Lloyd’s
Syndicate Accounts Instructions Version 3.1 as modified by the Frequently Asked Questions
version 1.1 issued by Lloyd's.
The financial statements have been prepared on the historical cost basis, except for financial assets
at fair value through profit or loss that are measured at fair value.
All amounts have been rounded to the nearest thousand, unless otherwise indicated.
The Syndicate presents its financial statements in sterling (the 'reporting currency') since they are
subject to regulation in the United Kingdom. Items included in the financial statements are measured
using the currency of the primary economic environment in which the entity operates (the 'functional
currency'). The functional currency of the Syndicate is US dollars.
Going concern
The Directors of the Managing Agent have conducted their going concern assessment and have
concluded that there are no material uncertainties that could cast significant doubt over the
Syndicate’s ability to continue as a going concern for at least a year from the date of approval of the
financial statements (“the going concern period”).
As part of their assessment, the Directors have evaluated the relevant solvency and liquidity risks to
the Syndicate which includes examining the capital position which is subject to stress and scenario-
based testing. The Syndicate continues to monitor its capital position and takes necessary
underwriting actions on its future business. There is no intention to liquidate the Syndicate or to
cease its operations. The 2026 year of account has been established, and the Directors expect to
establish a 2027 year of account, and are not aware of any reason why this will not be possible.
Where there are any short-term liquidity requirements, Markel Group has made available a loan
facility to Syndicate 3000. The Syndicate's capacity for the 2026 year of account is £904.2m (2025,
£934.3m).
With disciplined underwriting and a strong asset base, inclusive of the Funds at Lloyd's supporting
the Syndicate's underwriting, the Syndicate is in an excellent position to capitalise on opportunities
as they arise. The Syndicate will continue to apply Markel’s underwriting discipline of underwriting for
profit rather than volume and, accordingly, will decline business where the rates are not acceptable.
As part of the Directors' going concern assessment, cybersecurity risks have been considered given
their potential to impact operational resilience and financial reporting. Cyber-attacks represent a
systemic and evolving risk to the insurance market and wider the financial services sector. Threats
include ransomware, data breaches, and disruption to critical systems, which could impact
underwriting operations, claims processing, and financial reporting. The Syndicate implemented an
enterprise-wide cyber risk framework, detailed in the ‘Principal risks and uncertainties’ section on
page 11.
Based on the above assessment, including stress testing and mitigation strategies, the Board
considers that the Syndicate has adequate resources and controls to manage the impact of potential
cyber incidents.
Syndicate 3000
26
Annual Report and Financial Statements for the year ended
31 December 2025
The Syndicate will continue to look to develop new lines of business and markets, within the
parameters of the overall underwriting strategy. The Syndicate invests in high-quality corporate,
government and municipal bonds as well as a diverse equity portfolio and plans to continue this
investment strategy in 2026.
Accordingly, the financial statements have been prepared on a going concern basis.
2
Significant accounting policies
The following significant accounting policies have been applied in the preparation of these financial
statements and are set out below. These policies have been consistently applied to all the years
presented, unless otherwise stated.
2.1 Insurance contracts
Insurance contracts are those contracts that transfer significant insurance risk. The significance of
insurance risk is dependent on both the probability of an insured event and the magnitude of its
potential effect to the policyholder. 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.
2.1.1 Underwriting results
The underwriting result is determined using an annual basis of accounting, whereby the incurred
cost of claims, commission and expenses are charged against the earned proportion of premiums,
net of reinsurance.
2.1.2 Premiums
Premiums written relate to direct and inwards reinsurance business incepted during the year,
together with any difference between booked premiums for prior years and those previously
accrued, and include estimates of premiums not yet due or notified. Premiums are shown gross of
brokerage payable and exclude taxes and duties levied on them. Reinstatement premiums on
inwards business are accreted to the technical account on a pro-rata basis over the term of the
original policy to which they relate.
2.1.3 Provision for unearned premiums
Unearned premiums represent the proportion of premiums written in the year that relates to
unexpired terms of policies in force at the reporting date, calculated on the basis of established
earnings patterns or time apportionment as appropriate. The movement in the provision is taken to
the technical account in order that revenue is recognised over the period of the risk. In the opinion
of the Directors, the resulting provision is not materially different from one based on the pattern of
incidence of risk.
2.1.4 Acquisition costs
Acquisition costs, which represent commission and underwriters' staff costs related to the production
of business, are deferred and amortised over the period in which the related premiums are earned.
Deferred acquisition costs relate to subsequent financial periods and are deferred to the extent that
they are recoverable out of future revenue.
27
Syndicate 3000
Annual Report and Financial Statements for the year ended
31 December 2025
2.1.5 Provision for unexpired risks
A provision for unexpired risks is made where claims, related expenses and deferred acquisition costs
likely to arise after the end of the financial year in respect of contracts concluded before that date
were expected to exceed the unearned premiums receivable under these contracts. Provision for
unexpired risks is calculated separately by class and includes an allowance for investment income.
Unexpired risk surplus and deficits are offset where, in the opinion of the Directors, the business
classes concerned are managed together. In such cases, a provision for unexpired risks is made only
where there is an aggregate deficit.
2.1.6 Claims
Claims incurred comprise claims and claims handling expenses paid in the year and the change in
provisions for outstanding claims, including provisions for claims incurred but not reported ("IBNR")
and related expenses, together with any adjustments to claims from prior years.
Outstanding claims represent the estimated ultimate cost of settling all claims arising from events
which have occurred up to the date of the statement of financial position, including IBNR, less any
amounts paid in respect of those claims. The Syndicate does not discount its liabilities for unpaid
claims, with the exception of period payments orders (“PPOs”). The discount rate used is based upon
an investment return expected to be earned by financial assets which are appropriate in value and
duration to match the provisions for insurance contract liabilities being discounted during the period
expected before the final settlement of such claims.
Claims provisions are established on an individual class of business basis. Management conducts a
quarterly review of each class of business. Claims are projected to the ultimate position and
provision is made for known claims and claims IBNR. Adjustments to the amounts of the claims
provisions established in prior years are reflected in the technical account for the period in which the
adjustments are made.
2.1.7 Reinsurance
Reinsurance premiums ceded and reinsurance recoveries on claims incurred are included in the
respective expense and income accounts. Reinsurance outwards premiums are earned according to
the nature of the cover. ‘Losses occurring during’ policies are earned evenly over the policy period.
‘Risks attaching’ policies are expensed on the same basis as the inwards business being protected.
Reinsurance assets include amounts recoverable from reinsurance companies for paid and unpaid
claims and loss adjustment expenses, and ceded unearned premiums. Amounts recoverable from
reinsurers are calculated with reference to the claims liability associated with the reinsured risks.
Revenues and expenses arising from reinsurance agreements are therefore recognised in accordance
with the underlying risk of the business reinsured.
If a reinsurance asset is impaired the Syndicate reduces its carrying amount accordingly, and will
immediately recognise the impairment loss in the technical account. A reinsurance asset will be
deemed to be impaired if there is objective evidence, as a result of an event that occurred after
initial recognition of that asset, that the Syndicate may not receive all amounts due to it under the
terms of the contract, and that the event has a reliably measurable impact on the amounts that the
Syndicate will receive from the reinsurer.
Reinstatement premiums on outwards business are accreted to the technical account on a pro-rata
basis over the term of the original policy to which they relate.
Syndicate 3000
28
Annual Report and Financial Statements for the year ended
31 December 2025
Reinsurers' commissions, which include overriding commissions, are treated as a contribution to
expenses. Overriding commissions are recognised on an accrual basis, in accordance with FRS 102,
and is earned under the terms of the treaty, regardless of when the cash is received.
2.1.8 Net operating expenses
Underwriting acquisition costs, general overheads and other expenses are charged as incurred to the
technical account, net of the change in deferred acquisition costs.
2.2 Financial assets and liabilities
In applying FRS 102, the Syndicate has chosen to apply the recognition and measurement provisions
of International Accounting Standard ("IAS 39") Financial Instruments: Recognition and
Measurement (as adopted for use in the UK).
2.2.1 Classification
The accounting classification of financial assets and liabilities determines the way in which they are
measured and changes in those values are presented in the Statement of Profit or Loss. Financial
assets and liabilities are classified upon initial recognition. Subsequent reclassifications are permitted
only in restricted circumstances.
Financial assets and financial liabilities are classified fair value through profit and loss comprise
financial assets and financial liabilities held for trading and those designated as such on initial
recognition. Investments in shares and other variable yield securities, and debt and other fixed
income securities are designated as at fair value through profit or loss on initial recognition, as they
are managed on a fair value basis in accordance with the Syndicate’s investment strategy.
Investments are valued at market value, based on bid price, and deposits with credit institutions are
stated at cost.
2.2.2 Recognition and derecognition
Financial instruments are recognised when the Syndicate becomes a party to the contractual
provisions of the contract. A financial asset is derecognised if the Syndicate‘s contractual rights to
the cash flows from the financial assets expire or if the Syndicate transfers the financial asset to
another party without retaining control of substantially all risks and rewards of the asset. A financial
liability is de-recognised when its contractual obligations are discharged, cancelled, or expired.
Regular way purchases and sales of financial assets are recognised and derecognised, as applicable,
on the trade date, i.e. the date that the Syndicate commits itself to purchase or sell the asset.
2.2.3 Measurement
A financial asset or financial liability is measured initially at fair value plus, for a financial asset or
financial liability not at fair value through profit and loss, transaction costs that are directly
attributable to its acquisition or issue.
Financial assets at fair value through profit or loss are measured at fair value with changes
recognised immediately in profit or loss. Net gains or net losses on financial assets measured at fair
value through profit and loss includes foreign exchange gains/losses arising on their translation to
the functional currency, but excludes interest and dividend income. Loans and receivables and non-
derivative financial liabilities are also measured at fair value through profit and loss, including the
Syndicate Loans to the Central Fund.
29
Syndicate 3000
Annual Report and Financial Statements for the year ended
31 December 2025
2.2.4 Offsetting
Financial assets and financial liabilities are offset, and the net amount presented in the statement of
financial position when, and only when, the Syndicate currently has a legal right to set off the
amounts and intends either to settle on a net basis or to realise the asset and settle the liability
simultaneously.
2.3 Investment Return
Investment income comprises interest and dividends receivable for the year before investment
expenses. Dividends receivable are stated after adding back any withholding taxation deducted at
source. Investment expenses are charged to the Statement of profit or loss and other
comprehensive income: Non-Technical Account on an incurred basis.
Realised gains or losses represent the difference between net sales proceeds and purchase price.
Unrealised gains and losses on investments represent the difference between the current value of
investments at the reporting date and their purchase price. The movement in unrealised investment
gains/losses includes an adjustment for previously recognised unrealised gains/losses on investments
disposed of in the accounting period.
Dividends receivable are accounted for by reference to the date on which the price of the investment
is quoted ex-dividend.
The investment return is initially recorded in the Income Statement: Non-Technical Account. A
transfer is made from the Income Statement: Non-Technical account to the Income Statement:
Technical Account to reflect the investment return on funds supporting underwriting business.
The investment return is initially recorded in the Statement of profit or loss and other comprehensive
income: Non Technical Account. A transfer is made from the Non Technical account to the Technical
Account to reflect the investment return on funds supporting underwriting business.
2.4 Cash and cash equivalents
Cash and cash equivalents comprise cash balances and call deposits with maturities of three months
or less from the acquisition date that are subject to an insignificant risk of changes in fair value, and
are used by the Syndicate in the management of its short term commitments. Cash and cash
equivalents are carried at amortised cost in the Statement of Financial Position.
2.5 Foreign currency translation
Transactions in foreign currencies are translated at the average rates of exchange for the month of
the transactions.
Monetary assets and liabilities are translated at the rate of exchange at the reporting date or if
appropriate at the forward contract rate. Non monetary assets and liabilities are translated at the
rate of exchange prevailing on recognition.
All exchange differences arising on the translation of the results and financial position in US dollars
(the functional currency) into sterling (the reporting currency) are recognised in the Statement of
Comprehensive Income. Exchange differences on all other currencies are recognised in the
Statement of profit or loss and other comprehensive income: Non Technical Account.
Syndicate 3000
30
Annual Report and Financial Statements for the year ended
31 December 2025
2.6 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 deducted from Syndicate
investment income is recoverable by Managing Agents and consequently the distribution made to
Members or their Members' Agents is gross of tax. Capital appreciation falls within trading income
and is also distributed gross of tax.
No provision has been made for any United States or Canadian Federal Income Tax payable on
underwriting results or investment earnings. Any payments on account made by the Syndicate during
the year are included in the Statement of Financial Position under the heading ‘other debtors’, as the
Syndicate is reimbursed by MCAP for any of the Income Taxes paid.
No provision has been made for any overseas tax payable by the Member on underwriting results.
3
Critical accounting estimates and judgements in applying
accounting policies
In preparing these financial statements, the Directors of the Managing Agent have made
judgements, estimates and assumptions that affect the application of the Syndicate’s accounting
policies and the reported amounts of assets, liabilities, income and expenses.
Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to estimates are recognised prospectively.
Estimation and judgement in relation to the valuation of claims recognised under
insurance contracts
The estimation of the ultimate liability arising from claims made under insurance contracts is the
Syndicate’s most critical accounting estimate. There are key sources of uncertainty that need to be
considered in the estimate of the amounts that the Syndicate will ultimately pay to settle such
claims. Significant areas requiring estimation and judgement include:
Estimates of the amount of any liability in respect of claims notified but not settled, and claims
IBNR to be included within the claims provisions for inwards insurance and reinsurance
contracts.
The corresponding estimate of the amount of outwards reinsurance recoveries which will
become due as a result of the estimated claims on inwards business.
The adequacy of the outstanding claims provisions is assessed by reference to projections of the
ultimate development of claims in respect of each underwriting year. Management continually
attempts to improve its claims estimation process by refining its ability to analyse claims
development patterns, claims payments and other information, but many reasons remain for
potential adverse development of estimated ultimate liabilities. The process of estimating claims
reserves is a difficult and complex exercise involving many variables and subjective judgements. As
part of the reserving process, historical data is reviewed and the impact of various factors such as
trends in claim frequency and severity, changes in operations, emerging economic and social trends,
inflation and changes in regulatory and litigation environments is considered. Significant delays occur
in notifying certain claims and a large measure of experience and judgement is involved in assessing
outstanding liabilities, the ultimate cost of which cannot be known with certainty at the reporting
date. The reserve for claims outstanding is determined on the basis of information currently
available. However, it is inherent in the nature of the business written that the ultimate liabilities
may vary as a result of subsequent development.
31
Syndicate 3000
Annual Report and Financial Statements for the year ended
31 December 2025
The two most critical assumptions regarding claims provisions are that the past is a reasonable
predictor of the likely level of claims development and that the models used for current business are
fair reflections of the likely level of ultimate claims to be incurred. However, the Directors believe the
process of evaluating past experience, adjusted for the effects of current developments and
anticipated trends, is an appropriate basis for predicting loss development. The estimation process
has required reviewing risks and events which are expected to trigger future reported claims and
assessing the potential financial loss of insureds. This has required underwriter, claims and actuarial
experience and management’s professional judgement. Furthermore, there is inherent uncertainty in
relation to the ultimate liability which will vary as a result of subsequent information and events.
There is no precise method, however, for evaluating the impact of any significant factor on the
adequacy of reserves, actual results are likely to differ from original estimates. Management believes
the Syndicate’s provision for gross and reinsurers’ share of claims outstanding is adequate and
represents a reasonable estimate.
4
Risk and capital management
Financial risk management objectives
The Syndicate is exposed to financial risks primarily through its financial assets, reinsurance assets
and policyholder liabilities. The Syndicate's risks are recorded on a risk register and managed
through the risk management framework. Solvency UK principles are used to manage the Syndicate’s
capital requirements and to ensure that it has the financial strength to support the growth of the
business and meet the requirements of policyholders, regulators and rating agencies.
The key financial risks assessed are underwriting risk, reserving risk, asset risk, credit risk, liquidity
risk, capital risk and operational risk.
Underwriting risk
Underwriting Risk is the risk of losses arising from the inherent uncertainties as to the occurrence,
amount and timing of insurance liabilities, focusing on risks that arise from the acceptance of
business.
All underwriting by the Syndicate is governed by high level “underwriting principles” that set out
imperatives for underwriting.
The first of these is related to underwriting profitable business and is
“price business at a level which would enable the Syndicate to achieve the agreed target combined
ratios”.
The Syndicate's fundamental objective is to underwrite profitably on a gross basis and to
achieve target combined ratios. For this purpose, a combined ratio is the ultimate loss ratio plus
expense ratio.
This measure of underwriting performance excludes any benefit from investment
return and focuses attention on premium charged, coverage granted, commissions and other
deductions and all direct and indirect expenses.
The underwriters and underwriting units are
assigned combined ratio targets.
Underwriting risk is primarily mitigated through the Syndicate’s underwriting of a diversified portfolio
of risks (for example, by geography, industry, class of business, size of client). Reinsurance is also
purchased on both a proportional and non proportional basis by the Syndicate to mitigate exposures
to catastrophe events and large losses.
The Underwriting Risk Policy governs all underwriting by the Syndicate, it sets out the principles and
governance processes for underwriting. Underwriting risk appetites are agreed annually by the MSM
Board and adherence to these is monitored at the Underwriting Committee. Any exceptions to these
risk appetites are reported to the RCCC, and the Board.
Syndicate 3000
32
Annual Report and Financial Statements for the year ended
31 December 2025
The amount of insurance risk the Syndicate takes on in relation to any policy is controlled by the use
of prudent maximum line sizes.
All underwriters have signed underwriting authorities and there are
peer reviews/review processes in place to ensure that business underwritten does not exceed
authority or is outside the business plan.
Risks exceeding 18 months are not permitted to be written
without prior, written approval, although certain general exceptions are made.
Compliance with line
size and policy duration is monitored by the Syndicate's Underwriting Operations team.
Technical pricing has been developed for many classes, and rate movements and rate adequacy are
both monitored on a regular basis.
An independent reviewer performs a qualitative review of
underwriting.
The key method of monitoring the Syndicate's aggregate exposures is the production of a quarterly
“Aggregations pack” which sets out its exposures to various elemental and non elemental perils. For
example, for natural catastrophe risk we monitor and report the Syndicate's exposure, both gross
and net, to each material region/peril. Underwriting divisions are given aggregate limits for
catastrophe business in each zone and adherence to these is monitored within the pack.
The Syndicate's aggregate underwriting exposures are reported quarterly to the Underwriting
Committee, the RCCC and to the Board.
Reserving risk
Reserving risk is the risk of losses arising from the inherent uncertainties as to the occurrence,
amount and timing of insurance liabilities, focusing on risks that arise from the quantification of
those liabilities.
Markel adopts a cautious approach to claims reserving, such that reserves are expected to be more
likely to prove redundant than deficient. The reserving policy at Markel International is to hold a
margin above the Chief Actuary’s best estimate in order to absorb unforeseen reserve development
and to give additional comfort to rating agencies, regulatory and policyholders.
Risk appetites in respect of reserving risk are agreed annually by the Board and adherence to these
is monitored at the Reserving Committee. Any exceptions to the risk appetites are reported to the
RCCC and the Board.
The Claims Reserving Philosophy document and the Claims handling Manual set out the Syndicate's
approach to claims.
Various controls are in place including:
Claims diaries – A diary system is operated driving timely, regular and full reviews of claims
promptly, effectively and proactively progressing claims towards resolution and driving the best
outcome for the customer. Team performance against the KPIs for financial value and the
volumes of static claims is reviewed and discussed at the Monthly Claims Leadership Meetings.
Claim authorities – Claim handlers have a documented and signed claims authority that confirms
financial, and where relevant the non financial, claims thresholds.
These authorities are
regularly reviewed and updated to reflect changes in staff training, experience, and risk appetite.
Claims peer review – The peer review assesses the accuracy of the claim assessment including
the case reserve, adherence to the claims handling manual, and the appropriateness of the claim
resolution.
An Actuarial reserving exercise occurs quarterly for the reserving basis and best estimate basis for
the Syndicate. This involves internal review within the Actuarial department and discussions with
relevant underwriters and claims staff, including consideration of the impact of factors such as trends
in claims frequency and severity as well as inflation. The reserving basis reflects Markel's reserving
philosophy of holding reserves that are more likely to be redundant than deficient.
33
Syndicate 3000
Annual Report and Financial Statements for the year ended
31 December 2025
Combined Ratio packs are produced which contain gross and net projections for all classes of
business written across Markel International. The packs are discussed in detail at the quarterly
“Markel International ExCo Pack Review” meetings, which are attended by the Executive
Management, the Divisional Managing Director/Managing Director from each Division/Branch and the
relevant actuaries.
An independent actuary also performs an annual review of the Syndicate's reserves in order to
produce a statement of actuarial opinion for the Board.
The Reserving Committee has oversight of Reserving Risk.
The following table presents the profit and loss impact of the sensitivity of the value of insurance
liabilities disclosed in the financial statements to potential movements in the assumptions applied
within the technical provisions. Given the nature of the business underwritten by the Syndicate, the
approach to calculating the technical provisions for each class can vary and as a result the sensitivity
performed is to apply a beneficial and adverse risk margin to the total insurance liability. The amount
disclosed in the table represents the profit or loss impact of an increase or decrease in the insurance
liability as a result of applying the sensitivity.
The amount disclosed for the impact on claims
outstanding – net of reinsurance represents the impact on both the profit and loss for the year and
member balance.
General insurance business sensitivities as at 31 December
2025
Sensitivity
+5%
£'000
-5%
£'000
Claims outstanding - gross of reinsurance
(42,762 )
Claims outstanding - net of reinsurance
(33,253 )
General insurance business sensitivities as at 31 December
2024
Sensitivity
+5%
£'000
-5%
£'000
Claims outstanding - gross of reinsurance
(29,025 )
Claims outstanding - net of reinsurance
(29,025 )
Credit risk
Credit risk is the risk of losses arising from a counterparty being unable or unwilling to fulfil its
payment obligations. The Credit Risk Policy defines our approach to managing this risk.
Key areas where the Syndicate is exposed to credit risk are:
Amounts recoverable from reinsurers.
Amounts due from insurance intermediaries and insurance contract holders.
Amounts due from corporate bond issuers.
On an annual basis the Board agrees risk appetites for the amount of exposure it is prepared for the
Syndicate to accept in respect of reinsurers and brokers and investment counterparties. These are
monitored through reports to the Finance Committee and any exceptions are reported to the RCCC
and Board.
Syndicate 3000
34
Annual Report and Financial Statements for the year ended
31 December 2025
The Syndicate maintains a robust level of bad debt provision against the possibility of non payment
from a reinsurer and takes a proactive approach to the collection of reinsurance recoveries, including
the pursuit of commutations. Reinsurers may be requested to post collateral depending on their size,
rating, policy holder surplus and potential debt to the Syndicate. If a reinsurer is not willing to post
collateral then their line sizes will be reduced to an appropriate level dependent on the reinsurer’s
credit rating and capital levels.
The Syndicate's securities portfolio is monitored at the Finance Committee to ensure that credit risk
does not exceed the risk appetite. The Syndicate's investment risk appetite places limits on
exposures to a single counterparty or concentrations of exposures to a specific counterparty and
their credit quality. At 31 December 2025, 100% (2024, 98%) of the Syndicate's fixed maturity
portfolio is rated 'A' or better.
The Syndicate does not hold any financial investments that are past due or impaired as at 31
December 2025 (2024, none).
Assets not contained in the credit rating by assets class table include deferred acquisition costs.
These assets have been excluded from the table as credit ratings are not relevant or readily
ascertainable, in addition to the reinsurers' share of provisions for unearned premiums.
The Finance Committee has oversight of Credit Risk.
The following table analyses the credit rating by investment grade of financial assets that are neither
past due nor impaired:
2025
AAA
£'000
AA
£'000
A
£'000
BBB
£'000
Other
£'000
Not rated
£'000
Total
£'000
Shares and other variable yield
securities and units in unit trusts
Debt securities and other fixed
income securities
Participation in investment pools
Loans and deposits with credit
institutions
Syndicate loan to central fund
Deposits with ceding undertakings
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
35
Syndicate 3000
Annual Report and Financial Statements for the year ended
31 December 2025
2024
AAA
£'000
AA
£'000
A
£'000
BBB
£'000
Other
£'000
Not rated
£'000
Total
£'000
Shares and other variable yield
securities and units in unit trusts
Debt securities and other fixed
income securities
Participation in investment pools
Loans and deposits with credit
institutions
Syndicate loan to central fund
Deposits with ceding undertakings
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
The prior year's disclosure included £21.2m of debtors arising out of direct insurance operations and
£10.0m of debtors arising out of reinsurance operations that were past due but not impaired. As this
was a voluntary additional disclosure not required by UK GAAP, the note has been re-presented to
show only the amounts that are neither past due nor impaired.
Financial assets that are past due
The Syndicate has debtors arising from direct insurance and reinsurance operations that are past
due but not impaired at the reporting date.
2025
Neither past due
nor impaired
assets
£'000
Past due but not
impaired assets
£'000
Gross value of
impaired assets
£'000
Total
£'000
Shares and other variable yield securities and units in
unit trusts
Debt securities and other fixed income securities
Participation in investment pools
Loans and deposits with credit institutions
Syndicate loan to central fund
Deposits with ceding undertakings
Reinsurers' share of claims outstanding
Debtors arising out of direct insurance operations
Debtors arising out of reinsurance operations
Other debtors and accrued interest
Cash at bank and in hand
Total
Syndicate 3000
36
Annual Report and Financial Statements for the year ended
31 December 2025
2024
Neither past due
nor impaired
assets
£'000
Past due but not
impaired assets
£'000
Gross value of
impaired assets
£'000
Total
£'000
Shares and other variable yield securities and units in
unit trusts
Debt securities and other fixed income securities
Participation in investment pools
Loans and deposits with credit institutions
Syndicate loan to central fund
Deposits with ceding undertakings
Reinsurers' share of claims outstanding
Debtors arising out of direct insurance operations
Debtors arising out of reinsurance operations
Other debtors and accrued interest
Cash at bank and in hand
Total
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
2025
0-3 months
past due
£'000
3-6 months
past due
£'000
6-12 months
past due
£'000
Greater than 1
year past due
£'000
Total
£'000
Debtors arising out of direct
insurance operations
Debtors arising out of reinsurance
operations
Total
Past due but not impaired
2024
0-3 months
past due
£'000
3-6 months
past due
£'000
6-12 months
past due
£'000
Greater than 1
year past due
£'000
Total
£'000
Debtors arising out of direct
insurance operations
Debtors arising out of reinsurance
operations
Total
Liquidity risk
Liquidity risk is the risk that sufficient liquid financial resources are not maintained to meet liabilities
as they fall due. The Liquidity and Concentration risk policy sets out the Board’s approach to
identifying, monitoring and managing this area of risk.
MSM monitors the Syndicate's projected settlement of liabilities and, in conjunction with Markel
Gayner Asset Management LLC ("MGAM"), sets guidelines on the composition of the asset portfolio
in order to manage this risk for the Syndicate.
37
Syndicate 3000
Annual Report and Financial Statements for the year ended
31 December 2025
Liquidity risk appetites are agreed annually by the Board and adherence to these is monitored at the
Finance Committee. Any exceptions to risk appetite are reported to the RCCC and the Board.
The liquidity risk appetite is monitored on a quarterly basis through a series of stress tests. These
stress tests are based on potential liquidity related events that could materialise over different time
horizons such as a 1 in 200 year natural or non natural catastrophe event; or a 25% increase in the
expected gross operating outflows.
The average duration of net liabilities is 3.6 years (2024, 3.5 years). The duration of the Syndicate's
investment portfolio is managed to match the expected cash outflows on liabilities.
The Finance Committee has oversight of Liquidity Risk.
The maturity analysis presented in the table below shows the remaining contractual maturities for
the Syndicate’s insurance contracts and financial instruments. For insurance and reinsurance
contracts, the contractual maturity is the estimated date when the gross undiscounted contractually
required cash flows will 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 those at the reporting date.
Undiscounted net cash flows
2025
No maturity
stated
£'000
0-1 yrs
£'000
1-3 yrs
£'000
3-5yrs
£'000
>5 yrs
£'000
Total
£'000
Claims outstanding
(412,449 )
(377,827 )
(208,229 )
(244,482 )
(1,242,987 )
Creditors
(140,696 )
(140,696 )
Other credit balances
(67,093 )
(67,093 )
Total
(620,238 )
(377,827 )
(208,229 )
(244,482 )
(1,450,776 )
Undiscounted net cash flows
2024
No maturity
stated
£'000
0-1 yrs
£'000
1-3 yrs
£'000
3-5yrs
£'000
>5 yrs
£'000
Total
£'000
Claims outstanding
(427,345 )
(379,470 )
(199,596 )
(225,241 )
(1,231,652 )
Creditors
(101,303 )
(101,303 )
Other credit balances
(38,529 )
(38,529 )
Total
(567,177 )
(379,470 )
(199,596 )
(225,241 )
(1,371,484 )
Currency risk
The Syndicate writes business primarily in Sterling, US dollar, Euro, Canadian dollar, Australian dollar
and Japanese Yen and is therefore exposed to currency risk arising from fluctuations in these
exchange rates.
Foreign exchange risk: Foreign exchange risk is managed primarily by matching assets and liabilities
in each foreign currency as closely as possible. To assist in the matching of assets and liabilities in
foreign currencies the Syndicate may purchase foreign exchange forward contracts or buy and sell
currencies in the open market purchases or sales of foreign currencies made. No foreign exchange
forward contracts have been entered into during the year (2024, none).
Syndicate 3000
38
Annual Report and Financial Statements for the year ended
31 December 2025
The table below summarises the carrying value of the Syndicate’s assets and liabilities, at the
reporting date:
2025
Currency Code
GBP'000
USD'000
EUR'000
CAD'000
AUD'000
JPY'000
Other'000
Total'000
Investments
Reinsurers' share of
technical provisions
Debtors
Other assets
Prepayment and
accrued income
Total assets
Technical provisions
(221,798 )
(751,077 )
(106,314 )
(335,229 )
(113,162 )
(5,478 )
(74,418 )
(1,607,476 )
Creditors
(19,363 )
(110,293 )
(8,835 )
(25,308 )
(18,098 )
(121 )
(25,771 )
(207,789 )
Accruals and
deferred income
(466 )
(5,656 )
(2,047 )
(8,169 )
Total liabilities
(241,627 )
(867,026 )
(115,149 )
(362,584 )
(131,260 )
(5,599 )
(100,189 )
(1,823,434 )
Total Capital and
reserves
(6,532 )
(15,228 )
(109,496 )
(20,033 )
(8,953 )
(48,006 )
(177,399 )
2024
Currency Code
GBP'000
USD'000
EUR'000
CAD'000
AUD'000
JPY'000
Other'000
Total'000
Investments
Reinsurers' share of
technical provisions
Debtors
Other assets
Prepayment and
accrued income
Total assets
Technical provisions
(265,360 )
(730,975 )
(91,919 )
(271,899 )
(101,788 )
(7,634 )
(68,515 )
(1,538,090 )
Creditors
(17,143 )
(69,650 )
(5,830 )
(14,721 )
(20,266 )
(17 )
(11,617 )
(139,244 )
Accruals and
deferred income
(583 )
(5 )
(588 )
Total liabilities
(282,503 )
(801,208 )
(97,749 )
(286,625 )
(122,054 )
(7,651 )
(80,132 )
(1,677,922 )
Total Capital and
reserves
(22,513 )
(128,222 )
(12,642 )
(43,440 )
(154,307 )
Asset Risk
Asset risk is the risk of loss resulting from adverse financial market movements including interest
rates, equity prices or exchange rates.
The Markel International Investment Plan and Strategy detail the policy with regard to different asset
types and concentration limits.
39
Syndicate 3000
Annual Report and Financial Statements for the year ended
31 December 2025
An Investment Policy is in place that sets out the governance requirements regarding the Syndicate’s
investment portfolio and also includes a number of key principles including a requirement that the
Syndicate adheres to the “prudent person principle”.
Risk appetites are agreed annually by the Board to limit investment concentration and currency risk.
Adherence to these are monitored at the Finance Committee. Any exceptions to the risk appetite are
reported to the RCCC and the Board.
Compliance against the annual Investment Plan is monitored by our investment manager, MGAM,
against the annual Investment Plan through quarterly reporting and participation in a quarterly
Markel Group Investment Committee meeting at which the Quarterly Investment report is considered
which includes investments held directly by the Syndicate. Any items outside of appetite are
investigated and where appropriate an action plan is put in place to bring the investments back into
compliance with the Investment Plan.
The principal asset risks and how exposure to these risks is managed are as follows:
•
Interest rate risk: The Syndicate works to manage the impact of interest rate fluctuations on the
fixed maturity interest portfolio. The effective duration of the Syndicate's fixed maturity profile is
managed with consideration given to the estimated duration of the Syndicate's policyholder liabilities.
The Investment risk appetite sets limits regarding the Syndicate's average portfolio duration in
relation to the average liability duration.
•
Equity price risk: The Board sets risk appetite limits on the amount of equities that can be held
overall and with any one issuer within the Syndicate. The overall equity portfolio is also monitored to
ensure that equity risk does not exceed the Syndicate’s risk appetite.
The Finance Committee has oversight of Asset Risk.
2025
£'000
2025
£'000
2024
£'000
2024
£'000
Impact on
results
Impact on
member's
balances
Impact on
results
Impact on
member's
balances
Interest rate risk
+ 50 basis point shift in yield curves
(9,155 )
(9,155 )
(8,619 )
(8,619 )
- 50 basis point shift in yield curve
Equity price risk
5 percent increase in equity prices
5 percent decrease in equity prices
(4,112 )
(4,112 )
(1,843 )
(1,843 )
Operational risk
Operational Risk is the risk of loss resulting from inadequate or failed internal processes, people and
systems or from external events.
The Operational risk policy sets out the Board's approach to identifying, monitoring and managing
this risk for the Syndicate.
Operational risk appetites are agreed annually by the Board and adherence to these is monitored at
the RCCC. Any exceptions to risk appetite are reported to the Board.
Syndicate 3000
40
Annual Report and Financial Statements for the year ended
31 December 2025
The Board maintains a Risk Register which includes the key Operational Risks faced by the
Syndicate. For each Operational Risk, there is a designated Risk Owner as well as details of the key
controls that are in place to mitigate the risk. There is a quarterly attestation undertaken by Control
Owners in order to confirm that the key controls that they are responsible for are in place and are
operating effectively. A summary of the key findings from the quarterly attestation process is issued
to members of MSM's senior management.
The Risk Management team logs and records operational incidents arising from the failure of people,
processes, systems and external events and coordinates with the identified Event Owner (i.e. the
person who is considered to be the key contact within the business in respect of the incident) in
order to develop an appropriate action plan to strengthen the control environment to mitigate the
likelihood and/or impact of a reoccurrence of the incident. The Chief Risk Officer and Chief Operating
Officer report on a number of areas of Operational Risk at the quarterly RCCC, with material issues
escalated to the Board.
The RCCC and Operations Group has oversight of Operational Risk.
Capital risk
Capital risk is the risk of failing to hold sufficient capital to meet regulatory or rating agency
requirements for the Syndicate, inefficient allocation of capital, or a failure to obtain an adequate
return on capital.
There are various policies and procedures in place which governs MSM's approach to managing
Capital Risk. A Solvency Capital Risk appetite is agreed annually by the MSM Board and adherence to
this is monitored at the RCCC. Any exceptions to risk appetite are reported to the Board. This risk
appetite monitors the sufficiency of the level of eligible funds held to meet the board defined
economic capital requirement.
The RCCC has oversight of Capital Risk.
Capital management
The Society of 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 Solvency UK Framework.
Within this supervisory framework, Lloyd’s applies capital requirements at corporate 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.
Every corporate member is required to hold capital at Lloyd’s, which is held in trust and known as
Funds at Lloyd's ("FAL"). These funds are intended primarily to cover circumstances where syndicate
assets prove insufficient to meet participating members’ underwriting liabilities.
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 sufficent to cover a
1 in 200 year loss, reflecting uncertainty in the ultimate run off of underwriting liabilities. The SCRs
of each syndicate are subject to review by Lloyd’s and approved by the Lloyd’s Capital and Planning
Group.
41
Syndicate 3000
Annual Report and Financial Statements for the year ended
31 December 2025
Each corporate member is liable for its own share of underwriting liabilities on a syndicate on which
it participates, but not other members’ shares. As a result, the capital requirement that Lloyd’s sets
for each corporate member operates on a similar basis. Each corporate member’s SCR shall thus be
determined by the sum of the member’s share of the syndicate SCR. Lloyd’s applies a capital uplift to
the corporate member’s capital requirement, known as the Economic Capital Assessment (“ECA”).
The purpose of the ECA, which is a Lloyd’s not a Solvency UK requirement, is to meet Lloyd’s
financial strength, license and rating objectives. The capital uplift for 2025 was 35% (2024, 35%).
The level of FAL that Lloyd’s requires a member to maintain is determined by Lloyd’s based on PRA
requirements and resource criteria, including the Lloyd's ECA. 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. The Managing Agent is able to
make a call on the members' FAL to meet liquidity requirements or to settle losses. The FAL provided
by a member takes into account of any estimate surpluses or expected losses in respect of open
years. Any consequential deficit must be funded as part of the Lloyd’s ‘quarterly corridor test’ and
annual ‘coming into line’ exercise. Consequently, the actual FAL provided may be higher or lower
than the ECA.
5
Analysis of underwriting result
An analysis of the underwriting result before investment return is presented in the table below:
2025
Calendar Year
Gross
premiums
written
£'000
Gross
premiums
earned
£'000
Gross
claims
incurred
£'000
Gross
operating
expenses
£'000
Reinsurance
balance
£'000
Underwriting
result
£'000
Direct insurance
Accident & health
Motor (third party liability)
Motor (other classes)
(1,298 )
Marine, aviation and transport
(58,102 )
(44,976 )
(19,003 )
Fire and other damage to
property
(58,227 )
(40,205 )
(12,686 )
Third party liability
(108,342 )
(125,660 )
(80,771 )
Credit and suretyship
(10,472 )
(4,947 )
(1,869 )
Total direct insurance
(236,441 )
(215,788 )
(113,031 )
Reinsurance acceptances
(84,276 )
(91,327 )
(13,811 )
Total
(320,717 )
(307,115 )
(126,842 )
The below is an additional disclosure for Lloyd’s reporting purposes and is included to facilitate the
classification of the above segments into the Lloyd’s aggregate classes of business:
2025
Calendar Year
Gross
premiums
written
£'000
Gross
premiums
earned
£'000
Gross
claims
incurred
£'000
Gross
operating
expenses
£'000
Reinsurance
balance
£'000
Underwriting
result
£'000
Additional analysis
Fire and damage to property of
which is:
Specialities
(18 )
(318 )
(256 )
Energy
(13,730 )
(14,109 )
(6,727 )
Third party liability of which is:
Energy
(7,308 )
(3,635 )
(472 )
(624 )
Syndicate 3000
42
Annual Report and Financial Statements for the year ended
31 December 2025
2024
Calendar Year
Gross
premiums
written
£'000
Gross
premiums
earned
£'000
Gross
claims
incurred
£'000
Gross
operating
expenses
£'000
Reinsurance
balance
£'000
Underwriting
result
£'000
Direct insurance
Accident & health
(317 )
(489 )
Motor (third party liability)
Motor (other classes)
Marine, aviation and transport
(54,207 )
(52,546 )
(19,556 )
Fire and other damage to
property
(43,399 )
(30,939 )
(3,019 )
Third party liability
(117,149 )
(109,589 )
(9,567 )
Credit and suretyship
(3,035 )
(3,743 )
(4,937 )
Total direct insurance
(213,895 )
(197,306 )
(36,828 )
Reinsurance acceptances
(90,948 )
(67,822 )
(13,453 )
Total
(304,843 )
(265,128 )
(50,281 )
The below is an additional disclosure for Lloyd’s reporting purposes and is included to facilitate the
classification of the above segments into the Lloyd’s aggregate classes of business:
2024
Calendar Year
Gross
premiums
written
£'000
Gross
premiums
earned
£'000
Gross
claims
incurred
£'000
Gross
operating
expenses
£'000
Reinsurance
balance
£'000
Underwriting
result
£'000
Additional analysis
Fire and damage to property of
which is:
Specialities
(131 )
(131 )
(13 )
Energy
(9,412 )
(8,220 )
(3,538 )
Third party liability of which is:
Energy
(5,636 )
(4,239 )
(1,726 )
No gains or losses were recognised in profit or loss during the year on buying reinsurance (2024:
£Nil).
Gross written premiums underwritten for direct insurance by destination of risk is presented in the
table below. The prior year's disclosure included this information about total gross written premiums
underwritten by the Syndicate. As this was a voluntary additional disclosure not required by UK
GAAP, the note has been re-presented to show only the gross written premiums for direct insurance.
2025
£'000
2024
£'000
United Kingdom
European Union Member States
US
Rest of the world
Total gross written premium
43
Syndicate 3000
Annual Report and Financial Statements for the year ended
31 December 2025
6
Net operating expenses
2025
£'000
2024
£'000
Acquisition costs
Change in deferred acquisition costs
(15,613 )
(8,414 )
Administrative expenses
Members' standard personal expenses
Reinsurance commissions and profit participations
(25,724 )
(12,986 )
Net operating expenses
Total commissions for direct insurance business for the year amounted to:
2025
£'000
2024
£'000
Total commission for direct insurance business
Administrative expenses include:
2025
£'000
2024
£'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
7
Key management personnel compensation
The directors of the managing agent, MSM, received the following aggregate remuneration charged
to the Syndicate. On an annual basis, management conduct an assessment to evaluate the
reasonableness of the assumptions used to appropriately estimate the directors' and active
underwriters' apportionment of time in performing their qualifying services which is included within
net operating expenses.
2025
£'000
2024
£'000
Directors' emoluments
The active underwriters received the following aggregate remuneration charged to the Syndicate.
2025
£'000
2024
£'000
Active underwriters' emoluments
Further information in respect of the directors of MSM is provided in that company's financial
statements.
Syndicate 3000
44
Annual Report and Financial Statements for the year ended
31 December 2025
8
Staff numbers and costs
The Syndicate and Managing Agent have no employees. Staff are employed by Markel International
Services Limited ("MISL"), Markel Australia PTY Limited, Markel Canada Limited, Markel Corporation
China, Markel International Dubai Limited, Markel International Labuan Limited, Markel International
Singapore Pte Limited and Markel Services India Private Limited
The average number of persons
employed by the service companies above but working for the Syndicate during the year, analysed
by category, was as follows:
Number of employees
2025
2024
Administration and finance
Underwriting
Claims
Total
The following amounts were recharged by MISL to the Syndicate in respect of payroll costs:
2025
2024
Wages and Salaries
Social security costs
Other pension costs
Total
45
Syndicate 3000
Annual Report and Financial Statements for the year ended
31 December 2025
9
Investment return
2025
£'000
2024
£'000
Interest and similar income
From financial assets designated at fair value through profit or loss
Interest and similar income
From financial assets classified as Available for Sale
Interest and similar income
Dividend income
Interest and similar income
-
(2)
Interest on cash at bank
Other income from investments
From financial assets designated at fair value through profit or loss
Gains on the realisation of investments
Losses on the realisation of investments
(2,306 )
(4,700 )
Unrealised gains on investments
Unrealised losses on the investments
(2,782 )
(12,852 )
Other relevant gains
Investment management expenses
(2,794 )
(2,337 )
Total investment return
Transferred to the technical account from the non-technical account
Syndicate 3000
46
Annual Report and Financial Statements for the year ended
31 December 2025
10
Distribution and open years of account
A distribution payment of £121.9m to the corporate member, to be collected in 2026, has been
proposed in relation to the 2023 year of account (2024, distribution payment of £126.7m in relation
to the 2022 year of account).
The table below shows the current underwriting year result of the years of account remaining open
after the three year period.
Year of Account
2025
£'000
2024
£'000
2022
2023
2024
(37,609 )
2025
(50,388 )
Calendar Year Result
177,399
154,307
11
Financial Investments
Carrying value
Cost
2025
£'000
2024
£'000
2025
£'000
2024
£'000
Shares and other variable yield securities and units in unit trusts
Debt securities and other fixed income securities
Participation in investment pools
Loans and deposits with credit institutions
Syndicate loans to central fund
Total financial investments
Included in the carrying values above are listed investments as follows:
2025
£'000
2024
£'000
Listed investments
Listed investments represent financial investments that are traded on a recognised exchange and are
supported by market observable prices.
The table below presents an analysis of financial investments by their measurement classification.
2025
£'000
2024
£'000
Financial assets measured at fair value through profit or loss
Financial assets measured at fair value as available for sale
Total financial investments
47
Syndicate 3000
Annual Report and Financial Statements for the year ended
31 December 2025
The Syndicate classifies its financial instruments held at fair value in its balance sheet using a fair
value hierarchy based on the inputs used in the valuation techniques as follows:
Level 1 – financial assets that are measured by reference to published quotes in an active
market. A financial instrument is regarded as quoted in an active market if quoted prices are
readily and regularly available from an exchange, dealer, broker, industry group, pricing service
or regulatory agency and those prices represent actual and regularly occurring market
transactions on an arm’s length basis.
Level 2 – financial assets measured using a valuation technique based on assumptions that are
supported by prices from observable current market transactions. For example, assets for which
pricing is obtained via pricing services but where prices have not been determined in an active
market, financial assets with fair values based on broker quotes, investments in private equity
funds with fair values obtained via fund managers and assets that are valued using the
Syndicate’s own models whereby the significant inputs into the assumptions are market
observable.
Level 3 – financial assets measured using a valuation technique (model) based on assumptions
that are neither supported by prices from observable current market transactions in the same
instrument nor are they based on available market data. Therefore, unobservable inputs reflect
the Syndicate's own assumptions about the assumptions that market participants would use in
pricing the asset or liability (including assumptions about risk). These inputs are developed
based on the best information available, which might include the Syndicate’s own data.
The table below analyses financial instruments that are held at fair value in the Syndicate’s balance
sheet at the reporting date by its level in the fair value hierarchy.
2025
Level 1
£'000
Level 2
£'000
Level 3
£'000
Total
£'000
Shares and other fixed income securities and units in unit trusts
Debt securities and other fixed income securities
Participation in investment pools
Loan and deposits with other credit institutions
Syndicate loan to central fund
Total assets
Total
2024
Level 1
£'000
Level 2
£'000
Level 3
£'000
Total
£'000
Shares and other fixed income securities and units in unit trusts
Debt securities and other fixed income securities
Participation in investment pools
Loans and deposits with other credit institutions
Syndicate loan to central fund
Total assets
Total
Syndicate 3000
48
Annual Report and Financial Statements for the year ended
31 December 2025
12
Debtors arising out of direct insurance operations
Direct insurance operations
2025
£'000
2024
£'000
Due within one year
Due after one year
Total
13
Debtors arising out of reinsurance operations
Reinsurance operations
2025
£'000
2024
£'000
Due within one year
Due after one year
Total
14
Other debtors
2025
£'000
2024
£'000
Other related party balances (non-syndicate)
Other
Total
Other related party balances (non-Syndicates) wholly relates to balances owed to the Syndicate from
other entities within the Markel Group.
15
Deferred acquisition costs
The table below shows changes in deferred acquisition costs assets from the beginning of the period
to the end of the period.
2025
2024
£'000
£'000
Balance at
1 January
Incurred deferred acquisition costs
Amortised deferred acquisition costs
(41,636 )
(42,402 )
Foreign exchange movements
(3,143 )
(1,037 )
Balance at
31 December
49
Syndicate 3000
Annual Report and Financial Statements for the year ended
31 December 2025
16
Claims Development
The following tables illustrate the development of the estimates of earned ultimate cumulative claims
incurred, including claims notified and IBNR, for each successive underwriting year, illustrating how
amounts estimated have changed from the first estimates made.
As these tables are on an underwriting year basis, there is an apparent large increase from amounts
reported for the end of the underwriting year to one year later as a large proportion of premiums are
earned in the year of account’s second year of development.
Balances have been translated at exchange rates prevailing at 31 December 2025 in all cases.
Syndicate 3000
50
Annual Report and Financial Statements for the year ended
31 December 2025
Gross outstanding claims provision as at 31 December 2025
Pure underwriting year
2016
£'000
2017
£'000
2018
£'000
2019
£'000
2020
£'000
2021
£'000
2022
£'000
2023
£'000
2024
£'000
2025
£'000
Total
£'000
Estimate of gross claims
At end of underwriting year
One year later
Two years later
Three years later
Four years later
Five years later
Six years later
Seven years later
Eight years later
Nine years later
Estimate of gross claims reserve
Provision in respect of prior years
Less gross claims paid
Gross claims reserve
Syndicate 3000
51
Annual Report and Financial Statements for the year ended
31 December 2025
Net outstanding claims provision as at 31 December 2025
Pure underwriting year
2016
£'000
2017
£'000
2018
£'000
2019
£'000
2020
£'000
2021
£'000
2022
£'000
2023
£'000
2024
£'000
2025
£'000
Total
£'000
Estimate of net claims
At end of underwriting year
One year later
Two years later
Three years later
Four years later
Five years later
Six years later
Seven years later
Eight years later
Nine years later
Estimate of gross claims reserve
Provision in respect of prior years
Less net claims paid
Net claims reserve
52
Syndicate 3000
Annual Report and Financial Statements for the year ended
31 December 2025
17
Technical provisions
The table below shows changes in the insurance contract liabilities and assets from the beginning of
the period to the end of the period.
2025
2024
Provision for claims
outstanding
Gross
£'000
Reinsurance
£'000
Net
£'000
Gross
£'000
Reinsurance
£'000
Net
£'000
Balance at
1 January
(360,691 )
(303,536 )
Claims paid during the year
(265,012 )
(207,759 )
(279,824 )
(230,656 )
Expected cost of current year
claims
(63,934 )
(75,945 )
Change in estimates of prior year
provisions
(24,190 )
Discount unwind
(1,298 )
(2,694 )
Effects of movement in exchange
rates
(44,370 )
(31,368 )
(16,477 )
(3,494 )
(19,971 )
Balance at
31 December
(353,783 )
(360,691 )
The unwind of discount has been included within the statement of profit or loss – technical account –
within claims incurred.
2025
2024
Provision for unearned
premiums
Gross
£'000
Reinsurance
£'000
Net
£'000
Gross
£'000
Reinsurance
£'000
Net
£'000
Balance at
1 January
(43,694 )
(31,284 )
Premium written during the year
(196,816 )
(166,224 )
Premiums earned during the year
(855,239 )
(665,050 )
(733,603 )
(580,494 )
Foreign exchange movements
(14,193 )
(12,194 )
(6,020 )
(5,315 )
Balance at
31 December
(48,322 )
(43,694 )
53
Syndicate 3000
Annual Report and Financial Statements for the year ended
31 December 2025
18
Discounted claims
Discounting may be applied to claims provisions where there are individual claims with structured
settlements that have annuity like characteristics, or for books of business with mean term payment
greater than four years from the accounting date.
The claims have been discounted as follow:
Average discounted rates
Average mean term of liabilities
Class of business
2025
2024
2025
2024
Motor (third party liability)
In the year-ended 31 December 2023, the Syndicate entered into a deal with Marco Capital Ltd for
the LPT in relation to its UK Motor PPO portfolio. As a result the UK Motor PPO portfolio is now fully
reinsured, resulting in no remaining net liability for the syndicate.
The period that will elapse before claims are settled is determined using adjusted mortality tables.
The claims provisions before discounting are as follows:
Undiscounted claims
Effect of discounting
After discounting
2025
£'000
2024
£'000
2025
£'000
2024
£'000
2025
£'000
2024
£'000
Gross claims provision
Reinsurer share of total claims
(79,406 )
(83,200 )
(38,746 )
(39,930 )
(40,660 )
(43,270 )
Net claims provisions
Syndicate 3000
54
Annual Report and Financial Statements for the year ended
31 December 2025
19
Creditors arising out of direct insurance operations
2025
£'000
2024
£'000
Due within one year
Total
20
Creditors arising out of reinsurance operations
2025
£'000
2024
£'000
Due within one year
Total
21
Other creditors
2025
£'000
2024
£'000
Other related party balances (non-Syndicates)
Other liabilities
Total
Other related party balances (non-Syndicates) wholly relates to balances owed from the Syndicate to
other entities within Markel Group.
55
Syndicate 3000
Annual Report and Financial Statements for the year ended
31 December 2025
22
Cash and cash equivalents
2025
£'000
2024
£'000
Cash at bank and in hand
Short term debt instruments presented within other financial investments
Total cash and cash equivalents
Included within cash and cash equivalents are the following amounts which are not available for use
by the Syndicate because the amounts were held in regulated bank accounts in overseas
jurisdictions:
2025
£'000
2024
£'000
Cash at bank and in hand
Short term debt instruments presented within other financial investments
Total cash and cash equivalents not available for use by the syndicate
This note discloses all cash, and cash equivalent balances that the Syndicate holds including any
balances that may also classify as financial investments which are reported in Note 11 (Financial
Investments). It has been presented in line with the Lloyd’s requirements and FRS 102 as set out in
Note 1 (Statement of compliance and basis of preparation).
23
Analysis of net debt
At 1
January
2025
Cash flows
Acquired
Fair value
and
exchange
movement
Non-cash
changes
At 31
December
2025
Cash and cash equivalents
(17,675 )
(5,164 )
Total
(17,675 )
(5,164 )
Syndicate 3000
56
Annual Report and Financial Statements for the year ended
31 December 2025
24
Related parties
MISL and Markel Services Incorporated ("MSI") provides services to the Syndicate. The amounts
charged to and balances due from the Syndicate at the year end are:
2025
£'000
2024
£'000
Expenses recharged
(131,192)
(111,788)
Year end balance due from the Syndicate
(8,185)
(7,321)
The Syndicate pays income tax for various territories, the most notable being Canadian and United
States Income Tax, which is reimbursed by MCAP. The Syndicate has paid the following amounts and
balances due from the Syndicate at the year end are:
2025
£'000
2024
£'000
United States and Canadian Income Tax paid by/(reimbursed to) the Syndicate in the year
359
2,929
United States and Canadian Income Tax settled by/(reimbursed to) MCAP in the year
16
(3,668)
Other Income Taxes reimbursed by/(to) the Syndicate in the year
2
(518)
year end balance to/(from) the Syndicate
146
(231)
The following companies provide services to the Syndicate. The amounts charged to and balances
due from the Syndicate at the year end are:
Management
Fees Charged
2025
£'000
YE balance
due from the
Syndicate
2025
£'000
Management
Fees Charged
2024
£'000
YE balance due
(from)/to the
Syndicate
2024
£'000
Markel International Singapore PTE Limited
(9,641)
(4,080)
(8,292)
(2,057)
Markel International Hong Kong Limited
(2,822)
(562)
(1,924)
(556)
Markel International Labuan Limited
(329)
(30)
(163)
-
Markel International Dubai Limited
(3,816)
(313)
(2,728)
(212)
Markel Canada Limited
(2,000)
(3,036)
(1,716)
(1,565)
Markel Services India Private Limted
(1,964)
(322)
(2,224)
33
Markel Australia PTY Limited
(6,048)
(380)
(4,614)
205
The Group have made available a $200m credit revolving facility. As at December 31, 2025 the
Syndicate has not drawn down on this facility (2024, $nil).
57
Syndicate 3000
Annual Report and Financial Statements for the year ended
31 December 2025
The Syndicate has a reinsurance arrangement with MIICL in relation to its US Wind and Quake,
Japanese Wind and Quake and European Wind exposure, which was in place for the 2014 to the
2021 years of account.
The Syndicate has recognised the following amounts in the year and the balances due from MIICL at
the end of the year relating to these arrangements are:
2025
£'000
2024
£'000
Incurred claims movement
(40)
7
Year end balance due to the Syndicate
551
591
The Syndicate had an internal reinsurance in place on the 2021 year of account, which transfers
liability from the Syndicate to MIICL. In December 2025, the Syndicate completed the commutation
of this agreement, resulting in the full and final settlement of all related liabilities and recoverables.
The Syndicate has an internal reinsurance in place on the 2022 year of account, which transfers
liability from the Syndicate to MIICL. It has limits of $7.5m xs $2.5m and covers all Marine and
Energy classes, as well as
80% of Trade Credit, Political Risk, and Surety classes.
The Syndicate has an internal reinsurance in place on the 2023 year of account, which transfers
liability from the Syndicate to MIICL. It has limits of $15m xs $5m covering Marine and Energy
classes, limits of $20m xs $5m covering Terrorism classes, as well as 75% of Trade Credit, Political
Risk, and Surety classes.
The Syndicate has an internal reinsurance in place on the 2024 year of account, which transfers
liability from the Syndicate to MIICL. It has limits of $15m xs $5m covering Marine and Energy
classes, limits of $20m xs $5m covering Terrorism classes, limits of $7.5m xs $2.5m and limits of
$10m xs $10m covering Trade Credit, Political Risk, and Surety classes, and limits of £5m xs £5m
covering 75% of Polictal Financial Risks.
The Syndicate has an internal reinsurance in place on the 2025 year of account, which transfers
liability from the Syndicate to MIICL. It has limits of $20m xs $5m covering 100% of Marine and
Energy classes and covering 75% of Terrorism classes, limits of $7.5m xs $2.5m and limits of $10m
xs $10m covering Trade Credit and limits of £5m xs £5m covering Polictal Financial Risks.
The following reinsurance amounts in the year and balances due to the Syndicate at the end of the
year relating to these are:
2025
£'000
2024
£'000
Premiums ceded to MIICL
(32,122)
(26,701)
Incurred claims movement
6,794
12,188
Year end balance due to the Syndicate
55,816
55,316
Syndicate 3000
58
Annual Report and Financial Statements for the year ended
31 December 2025
The Syndicate has an internal reinsurance in place on the 2023 year of account, which transfers
liability from the Syndicate to Markel Bermuda Limited ("MBL"). It has limits of $15m xs $5m and
covers the Hull, Cargo and Specie classes.
The Syndicate has an internal reinsurance in place on the 2024 year of account, which transfers
liability from the Syndicate to MBL. It has limits of $15m xs $5m covering the Hull, Cargo and Specie
classes, limits of CAD$7m xs CAD$3m covering the Canada General Liabilty classes, and limits of
£5m xs £5m covering the Offshore FI and Investment Managers FI classes.
The Syndicate has an internal reinsurance in place on the 2025 year of account, which transfers
liability from the Syndicate to MBL. It has limits of $17.5m xs $7.5m covering the Hull, Cargo and
Specie classes, limits of $15m xs $10m covering Transport and Logistics,
limits of CAD$5m xs
CAD$5m covering the Canada General Liabilty classes and limits of £5m xs £5m covering the
Offshore FI and Investment Managers FI classes.
The following reinsurance amounts in the year and balances due to the Syndicate at the end of the
year relating to these are:
2025
£'000
2024
£'000
Premiums ceded to MBL
(13,517)
(12,766)
Incurred claims movement
-
29
Year end balance due to the Syndicate
20,621
8,053
Markel Gayner Asset Management LLC "MGAM LLC" is the Syndicate investment manager. The
following amounts have been charged to the Syndicate:
2025
£'000
2024
£'000
Fees paid
2,794
2,337
Year end balance due from the Syndicate
-
-
Key management personnel
K. Shah resigned as a Director of Just Group plc. on 1 March 2025. For the year-ended 31 December
2025, there were no transactions or balances held with Just Group Plc (2024, gross written premium
of £116.00, no outstanding balances held).
A. Davies is a Director of Certa Insurance Partners Limited which is a Syndicate 3000 coverholder.
During the year, Syndicate 3000 has underwritten £7,234k (2024, £2,495k) in gross written
premiums and £494k (2024, £396k) is receivable at year-end.
59
Syndicate 3000
Annual Report and Financial Statements for the year ended
31 December 2025
25
Foreign exchange rates
2025
2024
Start of
period rate
Year-end rate
Average rate
Start of
period rate
Year-end rate
Average rate
Sterling
Euro
US dollar
Canadian dollar
Australian dollar
Japanese Yen
26
Funds at Lloyd's
Every member is required to hold capital at Lloyd’s which is held in trust and known as Funds at
Lloyd’s (‘FAL’). These funds are intended primarily to cover circumstances where Syndicate assets
prove insufficient to meet participating members’ underwriting liabilities. The level of FAL that Lloyd’s
requires a member to maintain is determined by Lloyd’s based on Prudential Regulatory Authority
requirements and resource criteria. The determination of FAL has regard to a number of factors
including the nature and amount of risk to be underwritten by the member and the assessment of
the reserving risk in respect of business that has been underwritten. Since FAL is not under the
management of the Managing Agent, no amount has been shown in these Financial Statements by
way of such capital resources. However, the Managing Agent is able to make a call on the Member’s
FAL to meet liquidity requirements or to settle losses.
Syndicate 3000
60