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SYNDICATE 3622
ANNUAL REPORT AND ACCOUNTS
YEAR ENDED
31 DECEMBER 2025
CONTENTS
STRATEGIC REPORT OF THE MANAGING AGENT …………………………………………………………… 4
MANAGING AGENT’S REPORT..………………………………………………………………………………………… 6
STATEMENT OF MANAGING AGENT’S RESPONSIBILITIES……………………………………………… 14
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SYNDICATE 3622 ……………… 15
STATEMENT OF COMPREHENSIVE INCOME .…………………………………………………………………… 18
BALANCE SHEET .……………………………………………………………………………………………………………… 19
STATEMENT OF CHANGES IN MEMBERS' BALANCES ..…………………………………………………… 20
STATEMENT OF CASH FLOWS ………………………………………………………………………………………… 21
NOTES TO THE SYNDICATE ANNUAL ACCOUNTS.…………………………………………………………… 22
MANAGING AGENT'S CORPORATE INFORMATION...………………………………………………………… 44
SYNDICATE 3622
31 DECEMBER 2025
3
STRATEGIC REPORT OF THE MANAGING AGENT
Overview
Syndicate 3622 (the ‘syndicate’) underwrites life insurance and reinsurance at Lloyd’s.
The capacities of the syndicates managed by Beazley Furlonge Limited ('BFL') are as follows:
Syndicate Number Capacities
2025 Year of Account
£ m
2024 Year of Account
£ m
623 861.0 887.2
2623 2,357.1 2,299.6
3622 35.5 37.0
3623 432.0 1,325.6
4321 — —
5623 419.3 396.6
6107 43.9 57.8
Total 4,148.8 5,003.8
The result for Syndicate 3622 for the year ended 31 December 2025 is a profit of £3,927k (2024:
£7,558k).
Year of account results
The 2023 year of account ('YoA') declares a return on capacity of 14.2%. The 2024 YoA is currently
forecasting to break even. The 2025 YoA is still in the early stages of development.
Rating environment
Overall rates on renewal business increased by 0.4% in 2025 (2024: 0.5%).
Combined ratio
The combined ratio is a measure of operating performance and represents the ratio of the syndicate's total
costs (excluding foreign exchange) to total net earned premium. The syndicate’s combined ratio has
increased in 2025 to 85.3% (2024: 71.1%) primarily driven by the claims ratio. 2024 saw significant prior
year reserve releases, with releases of the same magnitude not occurring in 2025.
Claims
The claims ratio is a measure of the syndicate's claims experience and represents the ratio of its net
insurance claims to net earned premium. The claims ratio has increased to 36.5% (2024: 17.6%). As
described above, there were significant prior year releases in 2024 that did not occur at the same level in
2025.
Net operating expenses
Net operating expenses, including business acquisition costs and administrative expenses, were £11,897k
(2024: £13,613k). The expense ratio is a measure of net operating expenses to net earned premium. The
expense ratio for 2025 is 48.8% (2024: 53.5%).
2025 2024
£'000 £'000
Brokerage costs
4,247 5,237
Other acquisition costs
1,057 826
Total acquisition costs
5,304 6,063
Administrative and other expenses
6,593 7,550
Net operating expenses*
11,897 13,613
* A further breakdown of net operating expenses can be found in note 4.
Brokerage costs as a percentage of net earned premiums are approximately 17.4% (2024: 20.6%).
Brokerage costs are deferred and expensed over the life of the associated premiums in accordance with
accounting guidelines. Other acquisition costs comprise costs that have been identified as being directly
related to underwriting activity (e.g. underwriters’ salaries and Lloyd’s box rental). These costs are also
deferred in line with premium earning patterns. Administrative expenses comprise primarily IT costs,
facilities costs, Lloyd’s central costs and other support costs.
SYNDICATE 3622
31 DECEMBER 2025
4
STRATEGIC REPORT OF THE MANAGING AGENT CONTINUED
Administrative and other expenses decreased over the year due to reduced business volumes written in
the syndicate, a reduction in performance-linked costs, as well as wider active expense management by
the managing agent.
Reinsurance
In 2025, the amount spent on outward reinsurance was £2,691k (2024: £6,464k). As a percentage of
gross premiums written it decreased to 10.3% in 2025 (2024: 20.6%). The decrease reflects the reduced
quota share cede percentage on the 2025 YoA, on the direct insurance book.
Outlook
The 2024 YoA is currently forecasting a breakeven return on capacity. The 2025 YoA is still in the early
stages of development.
The rating environment was challenging over the past year. The managing agent will continue to seek out
additional opportunities for this syndicate, taking heed to the rating environment and general condition of
the life market as 2026 develops.
…………………………
C C J Wong
Director
19 February 2026
SYNDICATE 3622
31 DECEMBER 2025
5
MANAGING AGENT’S REPORT
The managing agent presents its report 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
and Financial Reporting Standard 103: Insurance Contracts.
Principal activity
The principal activity of Syndicate 3622 is the underwriting of life business at Lloyd’s.
Business review
A review of the syndicate’s activities and future outlook is included in the strategic report.
Risk governance and reporting
BFL’s Board of Directors (the 'Board') has the responsibility for defining and monitoring the risk appetite
within which BFL and the syndicates operate (collectively, ‘Beazley’), with key individuals and committees
accountable for day-to-day management of risks and controls. Regular reporting from the Risk Function to
Board and Risk Committee meetings and senior management committees ensures that risks are monitored
and managed as they arise. Beazley Group is structured across three platforms, one of which is the London
Wholesale platform governed by BFL on behalf of the syndicates. This platform-focused structure
strengthens leadership accountability, enhances platform-level and legal entity governance, and further
reinforces the effectiveness of the overall risk management framework.
Climate-related risks and opportunities
Climate-related risks, opportunities, and other sustainability related matters were regular agenda items
throughout 2025 led by Beazley plc’s Board and supported by the boards of BFL and the Group’s other
regulated subsidiaries. The Group’s sustainability strategy, sets out the goals and targets across a wider
range of sustainability issues, including climate change. Beazley plc’s consolidated Annual report and
accounts includes the Group’s disclosures for the Task Force on Climate-Related Financial Disclosures
('TCFD') Recommendations. The 2025 Beazley plc Annual report and accounts is expected to be published
on the Group's website in March 2026.
Although not specifically listed in the risk categories detailed further in this report, the Board of BFL deems
climate risk to be inherently embedded within all risks managed across the syndicate.
Risk management
The Board maintains a sound understanding of all drivers of risk and, supported by the Risk Function,
provides effective challenge to management in overseeing risks across Beazley. The Board and the Risk
Committee continue to ensure that the risk management framework remains aligned to Beazley’s evolving
risk profile, supports robust oversight and challenge, and embeds a strong risk culture across the business.
The Board remains attentive to emerging risks and developments in the regulatory and legal landscape.
The Risk Function continues to engage in key strategic projects, providing proportionate and effective
second-line challenge to support the ongoing evolution of the risk management framework.
The effectiveness of risk management across the business is underpinned by continued collaboration
between Beazley's assurance functions, in particular Compliance, Risk Function and, Control and
Compliance Assurance Team, to deliver a coherent second line oversight function.
Throughout the year, Beazley strengthened its risk leadership team and further matured its risk culture
across the Group. Investment in both the first and second lines of defence has progressed through the
phased delivery of modernisation and transformation programmes, to enhance oversight, agility and
overall risk management capability.
Risk management oversight and framework
The Board has ultimate responsibility for risk management and delegates direct oversight of the risk
management framework to its Risk Committee. The Board delegates executive oversight of the Risk
Function and framework to the BFL Management Committee, which fulfils this responsibility in conjunction
with the Group Risk and Regulatory Committee.
The risk management framework sets out the approach to identifying, assessing, managing, monitoring,
and reporting principal risks. This framework underpins the delivery of the Group’s strategic priorities and
supports informed decision making at all levels.
SYNDICATE 3622
31 DECEMBER 2025
6
MANAGING AGENT’S REPORT CONTINUED
Beazley operates a governance structure founded on the ‘three lines of defence’ model, with the Risk
Function forming part of the second line of defence. Ongoing communication and collaboration across the
three lines of defence ensures that Beazley identifies and manages risks effectively.
The Board approves Beazley's risk appetite statements annually and receives regular updates throughout
the year on performance against these appetites, including impact on the risk profile of the business.
A comprehensive suite of reports from the Risk Function supports senior management and the Board in
fulfilling their oversight responsibilities. These reports include updates on risk culture, risk appetite, risk
profiles, stress and scenario testing (including reverse stress testing) and analysis, emerging and
heightened risks, and the Own Risk and Solvency Assessment. In addition, the Risk Function provides
reporting to the Remuneration Committee to ensure alignment between risk considerations and
remuneration practices.
An annual risk management plan is developed, with reference to Beazley's business strategy, external
market and regulatory developments, as well as Beazley's risk profile. In addition, the Risk Function
integrates insights from internal audit findings and other assurance activities into its risk assessment and
planning processes to ensure a comprehensive and forward-looking approach.
The approach to identifying, managing and mitigating emerging risks includes inputs from across the
business, analysis of lessons learned following incidents and industry thought leadership. The approach
considers the potential materiality and likelihood of impacts, which helps prioritise emerging risks that
Beazley monitors or undertakes focused work on. Key emerging risks in 2025 included: Artificial
Intelligence; Geopolitical and conflict escalation; Supply chain complexity; and Political and social unrest/
instability.
Principal risks
Beazley operates in a dynamic environment where risk exposures evolve in response to changes in market
conditions, regulatory developments, and strategic priorities. Identifying and managing these risks is
fundamental to safeguarding Beazley's financial strength and delivering sustainable value to stakeholders.
Principal risks are subject to regular review through Beazley's risk and control assessment process. The
overall risk profile is continuously monitored with emphasis on operational and regulatory risks, to ensure
that our control environment and risk management capabilities evolve in line with business change and
developments in the external environment.
The table below summarises the principal risks faced by Beazley, together with the governance, oversight
and control measures in place to mitigate these exposures, and the associated outlook.
Legend for principal risks table below
Risk outlook
Increasing Stable Decreasing
SYNDICATE 3622
31 DECEMBER 2025
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MANAGING AGENT’S REPORT CONTINUED
Insurance
Risk of loss arising from uncertainties and
deviations in the occurrence, frequency,
amount and timing of insurance premium
and claim liabilities relative to the
assumptions at the time of underwriting.
This includes key underwriting risk drivers
such as market cycle, reinsurance and
reserves.
• Market cycle: potential systematic
mispricing of medium or long-tailed
business that does not support
revenue to invest and cover future
claims;
• Reinsurance arrangements:
reinsurance may not be available or
purchases do not support the
business underwritten (e.g.
mismatch); and
• Reserving: reserves may not be
sufficiently established to reflect the
ultimate paid losses.
Insurance risk, arising in the syndicates, is principally managed by
Beazley through pricing tools, analysis of macro trends and claim
frequency/severity, which ensures exposure is well diversified and
not overly concentrated in any one area, or line of business.
Our strategic approach to exposure management and a
comprehensive internal and external reinsurance programme help
to reduce volatility of profits in addition to managing net exposure
through the transfer of risk.
Our prudent and comprehensive approach to reserving ensures
adequate provisions are made for the payment of all valid claims.
High calibre claims and underwriting professionals deliver expert
service and claims handling to insureds, ensuring good customer
outcomes.
Beazley carries out periodic analysis to identify significant areas of
concentration risk across its business and monitors solvency
regularly to ensure adequate capitalisation.
Beazley makes use of our Solvency II model and stress and
scenario testing to ensure insurance risk is within approved risk
appetite.
Investment in underwriting, reinsurance, and exposure
management systems and processes continue to strengthen our
risk management capabilities in an increasingly complex landscape
shaped by advances in artificial intelligence and rising geopolitical
tensions.
Outlook:
While we continue to assess Beazley's insurance risk outlook as
stable, supported by active management of market cycles across
all lines of business, we recognise that the cycle of rate increases
have likely peaked and in the absence of a market turning event,
we anticipate further soft market pressures in the near term,
making effective risk management increasingly critical.
Credit
Exposure to credit risk largely emanates
from the use of reinsurers, brokers, and
coverholders.
Credit risk is the risk of loss resulting from
default in obligations due or changes in
the credit standing of either issuers of
securities, counterparties or any debtors
which Beazley is exposed to.
Beazley maintains long-term partnerships with strategic
reinsurance partners to support it throughout the insurance cycle
and during potential claims events. Beazley uses a range of
traditional and alternative reinsurance mechanisms to diversify
reinsurance credit risk. All reinsurers must meet stringent internal
approval criteria, overseen by the Reinsurance Security
Committee.
Beazley operates established broker relationships and mitigates
credit risk via the monitoring of broker concentrations, payment
performance oversight and broker onboarding review criteria.
Coverholder monitoring and onboarding utilises a risk-based
approach, using financial stability information, overseen by the
Delegated Authority Oversight Committee.
Outlook:
The credit risk outlook remains stable, as Beazley manages
reinsurance, broker and coverholder credit risks, maintaining low
levels of aged and/or bad debt.
Principal risks and summary descriptions Mitigation and monitoring
SYNDICATE 3622
31 DECEMBER 2025
8
MANAGING AGENT’S REPORT CONTINUED
Principal risks and summary descriptions Mitigation and monitoring
Group
The contagion risk that an action or inaction of
one part of the Beazley Group adversely affect
another part or parts of the syndicate. This also
includes a changes in culture which leads to
inappropriate behaviour, actions and/or
decisions including dilution of culture or
negative impact on the brand.
In 2025, Beazley further developed its Risk Culture
Framework, to align with industry best practice. The
framework is underpinned by six guiding principles:
Leadership and Tone from the Top; Risk Governance and
Accountability; Risk Awareness; Communication and
Transparency; Risk and Reward; and Innovation and
Adaptiveness.
A strong risk culture is the cornerstone of a mature risk
function. It enables informed and responsible decision-
making, fosters transparency, and promotes vigilance across
both existing and emerging risks, ensuring Beazley remains
resilient and forward-looking in an evolving risk and
regulatory landscape. In 2025, advancing our risk culture
maturity was a key management priority. A series of
organisation-wide initiatives were launched to strengthen
communication and engagement, with the aim of cultivating
a consistent and robust risk culture. These efforts focused on
building a shared understanding of risk, encouraging
proactive management, and reinforcing a supportive ‘speak
up’ environment.
Beazley operates shared services, systems, processes and
controls across different legal entities and jurisdictions. As
such, the impact of an issue or incident in one area of the
business can have implications across the Group (i.e.
contagion risk). To mitigate this risk we continue focus on
group-wide strategic initiatives, which include continued
enhancement of our internal control environment and
optimization of key business and IT processes through
deployment of technology solutions.
The BFL Management Committee and the Board oversee
Group risk, with regular monitoring conducted by the Risk
Function and overseen by the Risk Committee.
Outlook:
Our Group risk outlook remains stable, with the BFL
Management Committee continuously evolving our risk
culture through ongoing monitoring and annual assessments,
designed to drive enhancements.
Liquidity
Investments and/or other assets are not
available or adequate in order to settle financial
obligations when they fall due.
By actively managing its liquidity needs, Beazley maximizes
flexibility in handling its financial assets and investment
strategy. This proactive approach ensures that clients and
creditors are financially protected. Beazley regularly
evaluates the liquidity position of the syndicates, under the
oversight of the Risk Committee.
Liquidity stress testing is performed to assess the largest
cash flow demands from the ten most severe Realistic
Disaster Scenarios across a 1-day and 12-month time
horizon.
Liquidity is monitored quarterly to ensure an adequate
liquidity surplus is maintained, such that liquidity exceeds
internal requirements, even under stressed scenarios.
Outlook:
The liquidity risk outlook remains stable, with sufficient
available liquidity to meet expected cashflow requirements,
including under stressed scenarios, while maintaining
adequate levels of liquidity and capital buffers.
SYNDICATE 3622
31 DECEMBER 2025
9
MANAGING AGENT’S REPORT CONTINUED
Principal risks and summary descriptions Mitigation and monitoring
Regulatory and legal
The risk of non-compliance with
regulatory and legal requirements and
supervisory expectations or failing to
operate in line with the relevant
regulatory framework in the territories
where Beazley operates. This may lead
to financial loss (fines, penalties),
sanctions, reputational damage, loss of
confidence from regulators, regulatory
intervention, inability to underwrite or
pay claims.
Beazley’s compliance framework supports adherence to rules, laws
and regulatory expectations including through horizon scanning,
advice and training. The work of the compliance function is overseen
by the Risk and Regulatory Committee.
In 2025, we implemented a global horizon scanning tool to support
the increasing size and complexity of our multi-jurisdictional business.
This tool aids in identifying, assessing and implementing new and
emerging legal and regulatory policy in a way that is both accessible
and immediate across all areas of our business and locations that we
underwrite. Additionally, it helps to increase awareness of the
regulatory environment for a wider audience, strengthens our
adherence to requirements and provides additional clarity over the
expectations of our regulators.
We enhanced our regulatory engagement protocols by developing a
new framework, establishing oversight and strengthening our
reporting mechanisms for sharing key information with our regulators.
To ensure effective embedding of the new protocols and further
strengthen our culture of transparency and openness, we provided
firm-wide training to ensure that expectations are understood.
Delivering good customer outcomes remains central to our business.
The second line functions contribute to the work of the Conduct
Review Group, which provides oversight of conduct risk throughout
the product lifecycle, ensuring we are able to consistently meet
regulatory expectations for the treatment of our policyholders and
retail customers.
Beazley maintains a very low appetite for regulatory and legal risk. As
we consolidate the regulatory engagement achieved in 2025 and
navigate an increasingly complex environment, maintaining strong
and open relationships with our regulators remains paramount.
Outlook:
The outlook for this risk has moved from increased to stable as a
result of the positive action taken above. We also continue to enhance
our key systems and internal control frameworks as well as adapting
our compliance framework to adhere to our regulatory and compliance
landscape. We expect the risk outlook to improve as changes become
well embedded.
SYNDICATE 3622
31 DECEMBER 2025
10
MANAGING AGENT’S REPORT CONTINUED
Principal risks and summary descriptions Mitigation and monitoring
Operational
The risk of failure of people, processes
and systems or the impact of an
external event on Beazley operations
Primary risk drivers include technology,
information management, project and
change transformation, third-party
management and the process and
people related infrastructure supporting
core business activities; Underwriting
and Claims management
Our risks and controls are formally monitored and reported through a
risk and control self-assessment process and the use of quantifiable
Key Risk Indicators. Our ongoing control enhancement and
underwriting transformation programmes are designed to ensure that
Beazley is fully equipped to meet current and future operational
challenges, strengthening our resilience and supporting sustainable
growth.
In 2025, we further advanced our investment in technology and
process re-engineering to strengthen our operational capabilities and
add resilience to internal processes and associated controls. Our
business continuity, disaster recovery and incident response plans
ensure the stability of our processes and systems, enabling our team
to consistently deliver optimal outcomes for our clients.
As the external environment grows more complex, technology and
cyber resilience remain top priorities. We have advanced our cyber
maturity journey, collaborating with external agencies, and
maintaining robust controls over information security, data and
operational resilience. Regular reviews of our incident response plans
and ongoing investment in cyber security training for all employees
ensure we remain vigilant and prepared.
While maintaining a low appetite for operational risk, we observed an
increase in reported risk incidents during 2025, albeit of lower
materiality, reflecting both the growing complexity of our operational
environment and our enhanced risk awareness and reporting culture.
Our Risk Function works closely with first line teams to ensure that
controls and processes evolve in line with emerging risks and
business change.
Outlook:
This risk has moved from an increased to stable outlook in 2026,
reflecting a reduction in the severity of operational risk incidents. This
is supported by the continued benefits of our investment in
modernising controls, systems and processes. As our transformation
programmes and modernisation initiatives progress, we expect these
efforts to further enhance our operational resilience in the years
ahead.
SYNDICATE 3622
31 DECEMBER 2025
11
MANAGING AGENT’S REPORT CONTINUED
Principal risks and summary descriptions Mitigation and monitoring
Strategic
The risk of loss resulting from ineffective strategic
direction and implementation that leads to
inadequate profitability, financial loss and/or
reputational damage.
Pervasive risks impacting multiple areas of Beazley
(e.g., reputation, and sustainability) occurring
through real or perceived action, or inaction, by a
regulatory body, market and/or third-party
provider.
A negative change to Beazley’s reputation would
have a detrimental impact to BFL and the
syndicates performance and public perception.
Beazley consistently addresses key strategic
opportunities and challenges, striving to be the highest
performing and most sustainable specialist insurer. We
ensure that we recognise, understand, discuss, and
develop action plans for significant strategic priorities in
a timely manner, while maintaining operational
effectiveness and brand reputation.
More widely over the past 18 months, Beazley has
made enhancements to its corporate governance
arrangements to align to a three-platform model. It
aims to ensure that the legal entities benefit from
increased transparency, and clarity around decision-
making powers & autonomy, which aims to de-risk the
organisation. The three platform model has been
implemented and will continue to be embedded
throughout 2026.
Beazley creates an environment that attracts, retains
and develops high performing talent with diverse
perspectives, encouraging exploration, creation, and
innovation. By investing in understanding the
complexities of the risks our clients face and deploying
our expertise where it adds value, we thrive. The BFL
Management Committee and the Board oversee these
risks, in collaboration with the Group Executive
Committee.
Our commitment is to create a sustainable business for
our people, partners, and planet through responsible
business goals. This focuses on understanding and
reducing our carbon footprint, contributing positively to
our social environment, and upholding strong
governance practices. Sustainability principles are
embedded into business planning with a documented
transition plan and reputational risk is mitigated
through transparent climate-related decision-making
across underwriting, investments and operations. While
market developments are considered, each is
evaluated individually to balance potential opportunities
and risks.
Outlook:
As we build on our past achievements, our outlook for
strategic risk in 2026 remains stable, underpinned by
our commitment to disciplined growth, innovation and
sustainability.
Market
The risk of loss resulting from fluctuations in the
level and in the volatility of market prices of assets,
liabilities and financial instruments. Investment
assets may be impacted by adverse movements in
financial markets, interest rates, exchange rates, or
external market forces.
There is limited market risk for this syndicate as assets
are largely held in cash or cash equivalents but it is
exposed to FX risk.
Outlook:
We maintain a stable market risk outlook for 2026,
underpinned by active investment portfolio
management and a robust internal control framework.
SYNDICATE 3622
31 DECEMBER 2025
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MANAGING AGENT’S REPORT CONTINUED
Directors
A list of Directors of the managing agent who held office during the year and to the date of this report can
be found on page 44.
Disclosure of information to the auditor
The Directors of the managing agent who held office at the date of approval of this Managing Agent’s
Report confirm that, so far as they are each aware, there is no relevant audit information of which the
syndicate’s auditor is unaware; and each director has taken all the steps that they ought to have taken as
a director to make themselves aware of any relevant audit information and to establish that the
syndicate’s auditor is aware of that information.
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 Ernst & Young
LLP will therefore continue in office.
On behalf of the Board
…………………………
C C J Wong
Director
19 February 2026
SYNDICATE 3622
31 DECEMBER 2025
13
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 requires
the Directors of the managing agent to prepare their syndicate annual accounts for each financial year.
Under that law they have elected to prepare the annual accounts in accordance with UK Accounting
Standards and applicable law (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 annual accounts unless they are satisfied that they
give a true and fair view of the state of affairs of the syndicate and of the profit or loss of the syndicate for
that period. In preparing these financial statements, the Directors of the managing agent are required to:
• select suitable accounting policies and then apply them consistently;
• make judgements and estimates that are reasonable and prudent;
• state whether applicable UK Accounting Standards have been followed, subject to any material
departures disclosed and explained in the annual accounts;
• assess the syndicate’s ability to continue as a going concern, disclosing, as applicable, matters related
to going concern; and
• use the going concern basis of accounting unless they either intend to cease trading, or have no
realistic alternative but to do so.
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 financial statements comply
with the Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008. They
are responsible for such internal control as they determine is necessary to enable the preparation of
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 financial statements may differ from legislation in other jurisdictions.
The Directors of the managing agent are required to comply with the requirements of Section 1 of the
Lloyd’s Syndicate Accounts Instructions version 3.1 as modified by the Frequently Asked Questions Version
1.1 issued by Lloyd’s (the 'Syndicate Accounts Instructions').
The Directors of the managing agent are responsible for the preparation and review of the iXBRL tagging
that has been applied to the syndicate accounts in accordance with the instructions issued by Lloyd's,
including designing, implementing and maintaining systems, processes and internal controls to result in
tagging that is free from material non-compliance with the instructions issued by Lloyd's, whether due to
fraud or error.
We confirm that to the best of our knowledge the syndicate accounts, including the iXBRL tagging applied
to these accounts, comply with the requirements of the Lloyd’s Syndicate Accounts Instructions version 3.1
as modified by the Frequently Asked Questions version 1.1 issued by Lloyd’s.
On behalf of the board
…………………………
C C J Wong
Director
19 February 2026
SYNDICATE 3622
31 DECEMBER 2025
14
Opinion
We have audited the syndicate annual accounts of syndicate 3622 (‘the syndicate’) for the year ended 31
December 2025 which comprise the Statement of Comprehensive Income, the Balance Sheet, the
Statement of Changes In Members’ Balances, the Statement of Cash Flows and the related notes 1 to 21,
including a summary of significant accounting policies. The financial reporting framework that has been
applied in their preparation is applicable law including The Insurance Accounts Directive (Lloyd’s Syndicate
and Aggregate Accounts) Regulations 2008, United Kingdom Accounting Standards including FRS 102 ‘The
Financial Reporting Standard applicable in the UK and Republic of Ireland’ and FRS 103 ‘Insurance
Contracts’ (‘United Kingdom Generally Accepted Accounting Practice’), and Section 1 of the Lloyd’s
Syndicate Accounts Instructions V3.1 as modified by the Frequently Asked Questions Version 1.1 issued by
Lloyd’s (‘the Syndicate Accounts Instructions’).
In our opinion, the syndicate annual accounts:
• give a true and fair view of the syndicate’s affairs as at 31 December 2025 and of its Profit for the
year then ended;
• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting
Practice; and
• have been prepared in accordance with the requirements of The Insurance Accounts Directive
(Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 and the Syndicate Accounts
Instructions.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)), The
Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008, the Syndicate
Accounts Instructions, and other applicable law. Our responsibilities under those standards are further
described in the Auditor’s responsibilities for the audit of the syndicate annual accounts section of our
report. We are independent of the syndicate in accordance with the ethical requirements that are relevant
to our audit of the syndicate annual accounts in the UK, including the FRC’s Ethical Standard as applied to
other entities of public interest, and we have fulfilled our other ethical responsibilities in accordance with
these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Conclusions relating to going concern
In auditing the syndicate annual accounts, we have concluded that the managing agent’s use of the going
concern basis of accounting in the preparation of the syndicate annual accounts is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events
or conditions that, individually or collectively, may cast significant doubt on the syndicate’s ability to
continue as a going concern for a period of 12 months from when the syndicate annual accounts are
authorised for issue. from when the syndicate annual accounts are authorised for issue.
Our responsibilities and the responsibilities of the directors of the managing agent with respect to going
concern are described in the relevant sections of this report. However, because not all future events or
conditions can be predicted, this statement is not a guarantee as to the syndicate’s ability to continue as a
going concern.
Other information
The other information comprises the information included in the annual report and accounts other than the
syndicate annual accounts and our auditor’s report thereon. The directors of the managing agent are
responsible for the other information contained within the annual report and accounts.
Our opinion on the syndicate annual accounts does not cover the other information and, except to the
extent otherwise explicitly stated in this report, we do not express any form of assurance conclusion
thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information
is materially inconsistent with the syndicate annual accounts or our knowledge obtained in the course of
the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or
apparent material misstatements, we are required to determine whether this gives rise to a material
misstatement in the syndicate annual accounts themselves. If, based on the work we have performed, we
conclude that there is a material misstatement of the other information, we are required to report that
fact.
We have nothing to report in this regard.
SYNDICATE 3622
31 DECEMBER 2025
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SYNDICATE 3622
15
Opinions on other matters prescribed by The Insurance Accounts Directive (Lloyd’s Syndicate
and Aggregate Accounts) Regulations 2008
In our opinion, based on the work undertaken in the course of the audit:
• the information given in the managing agent’s report for the financial year in which the
syndicate annual accounts are prepared is consistent with the syndicate annual accounts; and
• the managing agent’s report has been prepared in accordance with applicable legal
requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the syndicate and its environment obtained in the
course of the audit, we have not identified material misstatements in the managing agent’s report.
We have nothing to report in respect of the following matters where The Insurance Accounts Directive
(Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 requires us to report to you, if in our
opinion:
• the managing agent in respect of the syndicate has not kept adequate accounting records; or
• the syndicate annual accounts are not in agreement with the accounting records; or
• certain disclosures of the managing agent’s emoluments specified by law are not made; or
• we have not received all the information and explanations we require for our audit.
Responsibilities of the directors of the managing agent
As explained more fully in the Statement of Managing Agent’s Responsibilities set out on page 14, the
directors of the managing agent are responsible for the preparation of the syndicate annual accounts and
for being satisfied that they give a true and fair view, and for such internal control as they determine is
necessary to enable the preparation of the syndicate annual accounts that are free from material
misstatement, whether due to fraud or error.
In preparing the syndicate annual accounts, the directors of the managing agent are responsible for
assessing the syndicate’s ability to continue in operation, disclosing, as applicable, matters related to its
ability to continue in operation and using the going concern basis of accounting unless the directors of the
managing agent either intends to cease to operate the syndicate, or has no realistic alternative but to do
so.
Auditor’s responsibilities for the audit of the syndicate annual accounts
Our objectives are to obtain reasonable assurance about whether the syndicate annual accounts as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of these syndicate annual accounts.
Explanation as to what extent the audit was considered capable of detecting irregularities,
including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design
procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. The risk
of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting
from error, as fraud may involve deliberate concealment by, for example, forgery or intentional
misrepresentations, or through collusion.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed
below. However, the primary responsibility for the prevention and detection of fraud rests with both those
charged with governance of the managing agent and management.
Our approach was as follows:
• We obtained a general understanding of the legal and regulatory frameworks that are applicable to
the syndicate and determined that the most significant are direct laws and regulations related to
elements of Lloyd’s Byelaws and Regulations, and the financial reporting framework (UK United
Kingdom Generally Accepted Accounting Practice), and requirements referred to by Lloyd’s in the
Syndicate Accounts instructions. Our considerations of other laws and regulations that may have a
material effect on the syndicate annual accounts included permissions and supervisory
requirements of Lloyd’s of London, the Prudential Regulation Authority (‘PRA’) and the Financial
Conduct Authority (‘FCA’).
SYNDICATE 3622
31 DECEMBER 2025
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SYNDICATE 3622
16
• We obtained a general understanding of how the syndicate is complying with those frameworks by
making enquiries of management, internal audit, and those responsible for legal and compliance
matters of the syndicate. In assessing the effectiveness of the control environment, we also
reviewed significant correspondence between the syndicate, Lloyd’s of London and other UK
regulatory bodies; reviewed minutes of the Board and Risk Committee of the managing agent; and
gained an understanding of the managing agent’s approach to governance.
• For direct laws and regulations, we considered the extent of compliance with those laws and
regulations as part of our procedures on the related syndicate annual accounts’ items.
• For both direct and other laws and regulations, our procedures involved: making enquiries of the
directors of the managing agent and senior management for their awareness of any non-
compliance of laws or regulations, enquiring about the policies that have been established to
prevent non-compliance with laws and regulations by officers and employees, enquiring about the
managing agent’s methods of enforcing and monitoring compliance with such policies, and
inspecting significant correspondence with Lloyd’s, the PRA and the FCA.
• The syndicate operates in the insurance industry which is a highly regulated environment. As such
the Senior Statutory Auditor considered the experience and expertise of the engagement team to
ensure that the team had the appropriate competence and capabilities, which included the use of
specialists where appropriate.
• We assessed the susceptibility of the syndicate’s annual accounts to material misstatement,
including how fraud might occur by considering the controls that the directors of the managing
agent have established to address risks identified by them, or that otherwise seek to prevent,
deter or detect fraud. We also considered areas of significant judgement, complex transactions,
performance targets, economic or external pressures and the impact these have on the control
environment. Where this risk was considered to be higher, we performed audit procedures to
address each identified fraud risk, including;
â—¦ Reviewing accounting estimates for evidence of management bias. Supported by our
Actuaries, we assessed if there were any indicators of management bias in the valuation of
insurance liabilities and the recognition of estimated premium income.
â—¦ Evaluating the business rationale for significant and/or unusual transactions.
â—¦ Testing the appropriateness of journal entries recorded in the general ledger, particularly in
respect of judgemental areas including valuation of insurance liabilities and estimated
premium income.
A further description of our responsibilities for the audit of the annual accounts is located on the Financial
Reporting Council’s website at https://www.frc.org.uk/auditorsresponsibilities. This description forms part
of our auditor’s report.
Other matter
Our opinion on the syndicate annual accounts does not cover the iXBRL tagging included within these
syndicate annual accounts, and we do not express any form of assurance conclusion thereon.
Use of our report
This report is made solely to the syndicate’s members, as a body, in accordance with The Insurance
Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008. Our audit work has been
undertaken so that we might state to the syndicate’s members those matters we are required to state to
them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not
accept or assume responsibility to anyone other than the syndicate and the syndicate’s members as a
body, for our audit work, for this report, or for the opinions we have formed.
Niamh Byrne (Senior statutory auditor)
for and on behalf of Ernst & Young LLP, Statutory Auditor
London
SYNDICATE 3622
31 DECEMBER 2025
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SYNDICATE 3622
17
20 February 2026
2025 2024
Notes £'000 £'000
Gross premiums written 3 26,153 31,379
Outward reinsurance premiums (2,691 ) (6,464 )
Premiums written, net of reinsurance
Changes in unearned premium
Change in the gross provision for unearned premiums
14
Change in the provision for unearned premiums, reinsurers’ share
14 (1,421 ) (137 )
Net change in the provisions for unearned premiums 931 544
Earned premiums, net of reinsurance 24,393 25,459
Allocated investment return transferred from the non-
technical account
7 236 242
Claims paid
Gross amount
14
(13,907 ) (12,931 )
Reinsurers’ share
14
Net claims paid (10,076 ) (8,107 )
Long term business provision, net of reinsurance
Gross amount 14 1,602 5,070
Reinsurers' share
14
(441 ) (1,443 )
Net change in long term business provisions 1,161 3,627
Claims incurred, net of reinsurance (8,915 ) (4,480 )
Net operating expenses 4
(11,897 ) (13,613 )
Balance on the technical account - general business
Investment income 7 230 386
Realised losses on investments
Unrealised gains on investments 7
Investment expenses and charges
7 — (168 )
Total investment return
Allocated investment return transferred to technical
account
(236 ) (242 )
(Loss)/gain on foreign exchange 110 (137 )
Other income — 87
Profit for the financial year
Total comprehensive income for the financial year
There were no other comprehensive gains or losses in the year.
The notes on pages 22 to 43 form part of these financial statements.
SYNDICATE 3622
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2025
18
2025 | 2024 | ||
| Assets | Notes | £'000 | £'000 |
Investments | |||
| Financial investments | 9 | | |
| | | ||
Reinsurers’ share of technical provisions | |||
| Provision for unearned premiums | 14 | | |
| Claims outstanding | 14 | | |
| | | ||
Debtors | |||
Debtors arising out of direct insurance operations | 10 | | |
Debtors arising out of reinsurance operations | 11 | | |
| Other debtors | 12 | | |
| | | ||
Other assets | |||
| Cash at bank and in hand | 17 | | |
| | | ||
Prepayments and accrued income | |||
| Deferred acquisition costs | 13 | | |
| Other prepayments and accrued income | | | |
| | | ||
| Total assets | | | |
Capital and reserves | |||
| Members' balances | | | |
| | | ||
Liabilities | |||
Technical provisions | |||
| Provision for unearned premiums | 14 | | |
| Claims outstanding | 14 | | |
| | | ||
Creditors | |||
| Creditors arising out of direct insurance operations | | | |
| Creditors arising out of reinsurance operations | 15 | | |
| Other creditors | 16 | | |
| | | ||
| Accruals and deferred income | | | |
| Total liabilities | | | |
| Total liabilities, capital and reserves | | |
The notes on pages 22 to 43 form part of these financial statements.
The syndicate annual accounts on pages 18 to 43 were approved and authorised for issue by the Board of
Beazley Furlonge Limited on 19 February 2026 and were signed on its behalf by
…………………………
C C J Wong (Director)
SYNDICATE 3622
BALANCE SHEET
AS AT 31 DECEMBER 2025
19
| 2025 | 2024 | |
| £'000 | £'000 | |
Members’ balances brought forward at 1 January | | |
| Total comprehensive income for the financial year | | |
| Payments of profit to members' personal reserve funds | ( | ( |
| Member’s balance carried forward at 31 December | | |
Members participate in syndicates by reference to Year of Account (YoA) and their ultimate result, assets
and liabilities are assessed with reference to policies incepting in that YoA in respect of their membership
of a particular year.
The notes on pages 22 to 43 form part of these financial statements.
SYNDICATE 3622
STATEMENT OF CHANGES IN MEMBERS’ BALANCES
FOR THE YEAR ENDED 31 DECEMBER 2025
20
| 2025 | 2024 | ||
| Notes | £'000 | £'000 | |
Cash flows from operating activities | |||
Profit for the financial year | | | |
Adjustments for: | |||
Decrease in gross technical provisions | 14 | ( | ( |
Decrease in reinsurers' share of gross technical provisions | 14 | | |
Decrease/(increase) in debtors | | ( | |
Decrease in creditors | ( | ( | |
Movement in other assets/liabilities | | | |
Investment return | 7 | ( | ( |
Foreign exchange | | | |
Net cash flows from operating activities | | ( | |
Cash flows from investing activities | |||
Investment income received | | | |
Other | | | |
Net cash flows from investing activities | | | |
Cash flows from financing activities | |||
Distribution of profit | ( | ( | |
Net cash flows from financing activities | ( | ( | |
Net increase/(decrease) in cash and cash equivalents | | ( | |
Cash and cash equivalents at the beginning of the year | | | |
Foreign exchange on cash and cash equivalents | ( | ( | |
Cash and cash equivalents at the end of the year | 17 | | |
The notes on pages 22 to 43 form part of these financial statements.
SYNDICATE 3622
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
YEAR ENDED 31 DECEMBER 2025
21
1. Accounting policies
Basis of preparation
Syndicate 3622 (the ‘syndicate’) comprises a member of the Society of Lloyd’s that underwrites insurance
business in the London Market. The managing agent of the syndicate is Beazley Furlonge Limited ('BFL'),
whose registered address and principal place of business is 22 Bishopsgate, London, EC2N 4BQ. The
ultimate controlling party of BFL is Beazley plc, a company incorporated in England and Wales.
The syndicate annual accounts 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 historic cost basis, except for financial assets at fair
value through profit or loss which are measured at fair value. All amounts presented are stated in sterling,
being the syndicate’s functional currency, and in thousands, unless noted otherwise.
Going Concern
The financial statements of the syndicate have been prepared on a going concern basis. The syndicate's
business activities, together with the factors likely to affect its future development, performance and
position, are set out in the Strategic report of the managing agent on pages 4 - 5. In addition, note 2
includes the syndicate's risk management objectives and the managing agent’s objectives, policies and
processes for managing its capital. The syndicate has sufficient capital for each year of account in it's
Funds at Lloyd's (FAL). There is no intention to cease underwriting or cease the operations of the
syndicate.
In assessing the syndicate's going concern position as at 31 December 2025, the managing agent has
considered a number of factors, including the current statement of financial position and the syndicate's
strategic and financial plan. The assessment concluded that, for the foreseeable future, the syndicate has
sufficient capital and liquidity for the 12 months from the date the financial statements are authorised for
issue.
Use of estimates and judgements
The preparation of financial statements requires the use of certain estimates and judgements that affect
the reported amounts of assets, liabilities, income and expenses. Actual results may differ from those on
which management’s estimates are based. Estimates and assumptions are continually evaluated and are
based on historical experience and other factors. For example, estimates which are sensitive to economic,
regulatory and geopolitical conditions could be impacted by significant changes in the external
environment such as the volatile macroeconomic environment, climate change, international conflicts, and
significant changes in legislation. Any revisions to accounting estimates are recognised in the period in
which the estimate is revised and in any future periods affected.
Specific to climate change, since responses to it are still developing, it is not possible to consider all
possible future outcomes when determining asset and liability valuations, and timing of future cash flows,
as these are not yet known. Nevertheless, the current management view is that reasonably possible
changes arising from climate risks would not have a material impact on asset and liability valuations at the
year-end date.
(a) Valuation of insurance contract liabilities
The most critical estimate included within the syndicate’s balance sheet is the estimate for insurance losses
incurred but not reported (‘IBNR’), which is included within total technical provisions and reinsurers’ share
of technical provisions in the balance sheet and Note 14. This estimate is critical as it outlines the current
liability for future expenses expected to be incurred in relation to claims. If this estimation was to prove
inadequate then an exposure would arise in future years where a liability has not been provided for.
The best estimate of the most likely ultimate outcome is used when calculating notified claims. This
estimate is based upon the facts available at the time, in conjunction with the claims manager’s view of
likely future developments. The total estimate of gross IBNR as at 31 December 2025 included within
claims outstanding is £11,557k (2024: £12,598k).
SYNDICATE 3622
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2025
22
1. Accounting policies continued
(b) Premium estimates
Premium written is initially based on the estimated premium income (‘EPI’) of each contract. Where
premium is sourced through binders, the binder EPI is pro-rated across the binder period. Judgement is
involved in determining the ultimate estimates in order to establish the appropriate premium value and,
ultimately, the cash to be received. EPI estimates are updated to reflect changes in an underwriters
expectation through consultation with brokers and third-party coverholders, changes in market conditions,
historic experience and to reflect actual cash received for a contract.
Due to the nature of Lloyd’s business and the settlement patterns of the underlying business it is also not
uncommon for some contracts to take a number of years to finalise and settle, and a receivable on the
balance sheet remains. The amount of estimated future premium that remains in insurance receivables
relating to years of account that are more than three years developed at 31 December 2025 is £1,367k
(2024: £1,431k).
Significant accounting policies
The financial statements have been prepared on an annual basis of accounting, whereby the incurred cost
of claims, commissions and related expenses are charged against the earned proportion of premiums, net
of reinsurance as follows:
(a) Premiums written
Gross premiums written comprise premiums on contracts incepted during the financial year together
with adjustments to premiums written in previous accounting periods and estimates for premiums
from contracts entered into during the course of the year. Gross written premiums are stated before
the deduction of brokerage, taxes, duties levied on premiums and other deductions.
(b) Unearned premiums
A provision for unearned premiums represents that part of the gross premiums written that is
estimated will be earned in the following or subsequent financial periods. It is calculated using the
daily pro rata method, under which the premium is apportioned over the period of risk.
(c) Claims provisions and related reinsurance recoveries
Claims represent the cost of claims and claims handling expenses paid during the financial year,
together with the movement in provisions for outstanding claims, IBNR and future claims handling
provisions. The provision for claims outstanding comprises amounts set aside for claims advised and
IBNR.
The IBNR amount is based on estimates calculated using widely accepted actuarial techniques (e.g.
chain ladder) which are reviewed quarterly by the group actuary and annually by the independent
syndicate reporting actuary. The techniques generally use projections, based on past experience of
the development of claims over time, to form a view on the likely ultimate claims to be experienced.
For more recent underwriting, regard is given to the variations in the business portfolio accepted and
the underlying terms and conditions. Thus, the critical assumptions used when estimating claims
provisions are that the past experience is a reasonable predictor of likely future claims development
and that the rating and other models used to analyse current business are a fair reflection of the likely
level of ultimate claims to be incurred.
A provision is made at the year-end for the estimated cost of claims incurred but not settled at the
balance sheet date, including the cost of claims incurred but not yet reported to the managing agent.
The managing agent takes all reasonable steps to ensure that it has appropriate information regarding
its claims exposures. However, given the uncertainty in establishing claims provisions, it is likely that
the final outcome will prove to be different from the original liability established.
(d) Liability adequacy testing
At each reporting date, liability adequacy tests are performed to ensure the adequacy of the claims
liabilities net of deferred acquisition costs and unearned premium reserves. In performing these tests,
current best estimates of future contractual cash flows, claims handling and administration expenses
as well as investment income from the assets backing such liabilities are used.
Any deficiency is charged to the statement of comprehensive income and an unexpired risk provision
for losses is set up as a liability.
SYNDICATE 3622
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
YEAR ENDED 31 DECEMBER 2025
23
1. Accounting policies continued
(e) Acquisition costs
Acquisition costs comprise brokerage, premium levies, and staff related costs of the underwriters
acquiring the business. The proportion of acquisition costs in respect of unearned premiums is
deferred at the balance sheet date and recognised in later periods when the related premiums are
earned.
(f) Foreign currencies
Foreign currency transactions are translated into the functional currency using average exchange
rates applicable to the period in which the transactions take place and where the syndicate considers
these to be a reasonable approximation of the transaction rate. Foreign exchange gains and losses
resulting from the settlement of such transactions and from translation at the period end of monetary
assets and liabilities denominated in foreign currencies are recognised in the statement of
comprehensive income.
(g) Investment return
Investment return comprises all investment income, realised investment gains and losses and
movements in unrealised gains and losses, net of investment expenses, charges and interest.
Realised gains and losses on investments carried at market value are calculated as the difference
between sale proceeds and the original cost of the investment. Movements in unrealised gains and
losses on investments represent the difference between the valuation at the balance sheet date, and
the valuation at the previous period end or purchase value during the period.
Investment return is initially recorded in the non-technical account. A transfer is made from the non-
technical account to the general business technical account to reflect the investment return on funds
supporting underwriting business.
(h) Ceded reinsurance
These are contracts entered into by the syndicate with reinsurers under which the syndicate is
compensated for losses on contracts issued by the syndicate and that meet the definition of an
insurance contract. Insurance contracts entered into by the syndicate under which the contract holder
is another insurer (inwards reinsurance) are included with insurance contracts.
Any benefits to which the syndicate is entitled under its reinsurance contracts held are recognised as
reinsurance assets. These consist of balances due from reinsurers relating to claims and also includes
the provision for unearned premiums, reinsurers’ share. Balances due relating to the reinsurers share
of claims are based on calculated amounts of outstanding claims recoveries and projections for IBNR,
net of estimated irrecoverable amounts having regard to the reinsurance programme in place for the
class of business, the claims experience for the period and the current security rating of the reinsurer
involved. Reinsurance liabilities are primarily premiums payable for reinsurance contracts and are
recognised as an expense when due.
Reinsurance assets are assessed for impairment at each reporting date. If there is objective evidence
of impairment, then the carrying amount is reduced to its recoverable amount and the impairment
loss is recognised in the statement of comprehensive income.
(i) Financial instruments
Recognition and derecognition
Financial instruments are recognised on the balance sheet at such time that the syndicate becomes a
party to the contractual provisions of the financial instrument. A financial asset is derecognised when:
• the contractual rights to receive cash flows from the financial assets expire;
• the financial assets have been transferred, together with substantially all the risks and rewards of
ownership; or
• despite having retained some, but not substantially all, risks and rewards of ownership, control of
the asset is transferred to another party and the other party has the practical ability to sell the
asset in its entirety to an unrelated third party.
Financial liabilities are derecognised if the syndicate’s obligations specified in the contract expire, are
discharged or cancelled.
SYNDICATE 3622
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
YEAR ENDED 31 DECEMBER 2025
24
1. Accounting policies continued
Financial assets and liabilities measurement
On acquisition of a financial asset or liability, the asset or liability is measured at the transaction price,
except for those financial assets and liabilities at FVTPL, which are initially measured at fair value. The
exception to this is when the arrangement constitutes a financing transaction however, the syndicate
does not make use of any such arrangements.
All financial investments are designated as FVTPL upon initial recognition because they are managed
and their performance is evaluated on a fair value basis. Information about these financial
instruments is provided internally on a fair value basis to key management. The investment strategy
is to invest and evaluate their performance with reference to their fair values.
Fair value measurement
Fair value is the price at which an orderly transaction to sell an asset or to transfer a liability would
take place between market participants at the measurement date. Fair value is a market-based
measure and in the absence of observable market prices in an active market, it is measured using the
assumptions that market participants would use when pricing the asset or liability.
The best evidence of the fair value of a financial instrument at initial recognition is the transaction
price, i.e., the fair value of the consideration given or received, unless the fair value of that
instrument is evidenced by comparison with other observable current market transactions in the same
instrument (i.e., without modification or repackaging) or based on a valuation technique whose
variables include only data from observable markets.
When transaction price provides the best evidence of fair value at initial recognition, the financial
instrument is initially measured at the transaction price and any difference between this price and the
value initially obtained from a valuation model is subsequently recognised in the statement of
comprehensive income depending on the individual facts and circumstances of the transaction but not
later than when the valuation is supported wholly by observable market data or the transaction is
closed out.
Upon initial recognition, attributable transaction costs relating to financial instruments at FVTPL are
recognised in the statement of comprehensive income when incurred. Financial assets at FVTPL are
continuously measured at fair value, and changes therein are recognised in the statement of
comprehensive income. Net changes in the fair value of financial assets at FVTPL exclude interest and
dividend income, as these items are accounted for separately.
(j) Insurance debtors and creditors
Insurance debtors and creditors include amounts due to and from agents, brokers and insurance
contract holders. These are classified as debt instruments as they are non-derivative financial assets
with fixed or determinable payments that are not quoted on an active market. Insurance debtors are
measured at amortised cost less any provision for impairments. Insurance creditors are stated at
amortised cost. The syndicate does not have any debtors directly with policyholders, all transactions
occur via an intermediary.
(k) Other debtors
Other debtors principally consist of intercompany debtor balances and sundry debtors and are carried
at amortised cost less any impairment losses.
(l) Other creditors
Other creditors principally consist of amounts due to other related entities, and profit commissions
payable. These are stated at amortised cost determined using the effective interest rate method.
(m) Impairment of financial assets
Assessment is made at each reporting date whether there is objective evidence that a financial asset
or group of financial assets measured at amortised cost is impaired. A financial asset or group of
financial assets is impaired and impairment losses are incurred only if there is objective evidence of
impairment as a result of one or more events that have occurred after the initial recognition of the
assets and that event has an impact on the estimated cash flows of the financial asset or group of
financial assets that can be reliably estimated.
SYNDICATE 3622
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
YEAR ENDED 31 DECEMBER 2025
25
1. Accounting policies continued
If there is objective evidence that impairment exists, the amount of the loss is measured as the
difference between the assets carrying amount and the value of the estimated future cash flows
discounted at the financial asset’s original effective interest rate. Where a loss is incurred this is
recognised in the statement of comprehensive income.
(n) Cash and cash equivalents
This consists of cash at bank and in hand, deposits held at call with banks and other short-term highly
liquid investments with maturities of three months or less from the date of acquisition. Cash at bank
and in hand balances are classified as loans and receivables and carried at amortised cost less any
impairment losses.
(o) Taxation
Under Schedule 19 of the Finance Act 1993 managing agents are not required to deduct basic rate
income tax from trading income. In addition, all UK basic rate income tax (currently at 20%) deducted
from syndicate investment income is recoverable by managing agents and consequently the
distribution made to members or their members’ agents is gross of tax. Capital appreciation falls
within trading income and is also distributed gross of tax.
No provision has been made for any US federal income tax payable on underwriting results or
investment earnings. Any payments on account made by the syndicate during the year have been
included in the balance sheet under the heading ‘other debtors’.
No provision has been made for any other overseas tax payable by members on underwriting results.
(p) Pension costs
Pension contributions relating to staff who act on behalf of the syndicate are charged to the syndicate
and included within net operating expenses.
(q) Related party transactions
The syndicate has taken advantage of the exemption contained in FRS 102.1 and has therefore not
disclosed transactions with other wholly owned entities forming part of the Beazley Group.
2 Risk management
The managing agent has identified the risks arising from its activities and has established policies and
procedures to manage these items in accordance with its risk appetite. The sections below outline the
syndicate’s risk appetite and explain how the managing agent defines and manages each category of risk.
The risk management framework is discussed in the managing agent's report.
2.1 Insurance risk
The syndicate’s insurance business assumes the risk of loss from persons or organisations that are directly
exposed to an underlying loss. Insurance risk arises from this risk transfer due to inherent uncertainties
about the occurrence, amount and timing of insurance liabilities. The four key components of insurance
risk are underwriting, reinsurance, claims management and reserving. Each element is considered below.
a) Underwriting risk
Underwriting risk comprises four elements that apply to all insurance products offered by the syndicate:
• cycle risk – the risk that business is written without full knowledge as to the (in)adequacy of rates,
terms and conditions;
• event risk – the risk that individual risk losses or catastrophes lead to claims that are higher than
anticipated in plans and pricing;
• pricing risk – the risk that the level of expected loss is understated in the pricing process; and
• expense risk – the risk that the allowance for expenses and inflation in pricing is inadequate.
The managing agent manages and model these four elements in the following three categories: attritional
claims, large claims and catastrophe events.
SYNDICATE 3622
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
YEAR ENDED 31 DECEMBER 2025
26
2 Risk management continued
The syndicate’s underwriting strategy is to seek a diverse and balanced portfolio of risks in order to limit
the variability of outcomes. This is achieved by accepting a spread of business over time, segmented
between different products, geography and size.
The annual business plans for each underwriting team reflect the syndicate’s underwriting strategy, and
set out the classes of business, the territories and the industry sectors in which business is to be written.
These plans are approved by the Board of BFL and monitored by the Underwriting Committee.
The managing agent’s underwriters calculate premiums for risks written based on a range of criteria
tailored specifically to each individual risk. These factors include but are not limited to the financial
exposure, loss history, risk characteristics, limits, deductibles, terms and conditions and acquisition
expenses. The managing agent also recognises that insurance events are, by their nature, random, and
the actual number and size of events during any one year may vary from those estimated using
established statistical techniques.
To address this, the managing agent sets out the exposure that it is prepared to accept in certain
territories to a range of events such as natural catastrophes and specific scenarios which may result in
large industry losses. This is monitored through regular calculation of Realistic Disaster Scenarios. The
aggregate position is monitored at the time of underwriting a risk, and reports are regularly produced to
highlight the key aggregations to which the syndicate is exposed.
The managing agent uses a number of modelling tools to monitor its exposures against the agreed risk
appetite set and to simulate catastrophe losses in order to measure the effectiveness of its reinsurance
programmes.
Stress and scenario tests are also run using these models. The range of scenarios considered includes
natural catastrophe, cyber, marine, liability, political, terrorism and war events.
One of the largest types of event exposure relates to natural catastrophe events such as windstorm or
earthquake. With the increasing risk from climate change impacting the frequency and severity of natural
catastrophes, the managing agent continues to monitor its exposure. Where possible the managing agent
measures geographic accumulations and uses its knowledge of the business, historical loss behaviour and
commercial catastrophe modelling software to assess the expected range of losses at different return
periods. Upon application of the reinsurance coverage purchased, the key gross and net exposures are
calculated on the basis of extreme events at a range of return periods.
To manage underwriting exposures, the managing agent has developed limits of authority and business
plans which are binding upon all staff authorised to underwrite and are specific to underwriters, classes of
business and industry.
These authority limits are enforced through a comprehensive sign-off process for underwriting transactions
including dual sign-off for all line underwriters and peer review for all risks exceeding individual
underwriters authority limits. Exception reports are also run regularly to monitor compliance.
All underwriters also have a right to refuse renewal or change the terms and conditions of insurance
contracts upon renewal. Rate monitoring details, including limits, deductibles, exposures, terms and
conditions and risk characteristics are also captured and the results are combined to monitor the rating
environment for each class of business.
Binding Authority contracts
A proportion of the syndicate’s insurance risks are transacted by third parties under delegated underwriting
authorities. Each third party is thoroughly vetted by the managing agent's coverholder approval group
before it can bind risks, and is subject to rigorous monitoring to maintain underwriting quality and confirm
ongoing compliance with contractual guidelines.
b) Reinsurance risk
Reinsurance risk to the syndicate arises where reinsurance contracts put in place to reduce gross insurance
risk do not perform as anticipated, result in coverage disputes or prove inadequate in terms of the vertical
or horizontal limits purchased. Failure of a reinsurer to pay a valid claim is considered a credit risk which is
detailed separately below.
SYNDICATE 3622
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
YEAR ENDED 31 DECEMBER 2025
27
2 Risk management continued
The syndicate’s reinsurance programmes complement the underwriting team business plans and seek to
protect syndicate capital from an adverse volume or volatility of claims on both a per risk and per event
basis. In some cases the syndicate deems it more economic to hold capital than purchase reinsurance.
These decisions are regularly reviewed as an integral part of the business planning and performance
monitoring process.
The Reinsurance Security Committee examines and approves all reinsurers to ensure that they possess
suitable security. The syndicate’s ceded reinsurance team ensures that these guidelines are followed,
undertakes the administration of reinsurance contracts, monitors and instigates our responses to any
erosion of the reinsurance programmes.
c) Claims management risk
Claims management risk may arise within the syndicate in the event of inaccurate or incomplete case
reserves and claims settlements, poor service quality or excessive claims handling costs. These risks may
damage the Beazley brand and undermine its ability to win and retain business or incur punitive damages.
These risks can occur at any stage of the claims life-cycle.
The managing agent’s claims teams are focused on delivering quality, reliability and speed of service to
both internal and external clients. Their aim is to adjust and process claims in a fair, efficient and timely
manner, in accordance with the policy’s terms and conditions, the regulatory environment, and the
business’s broader interests. Prompt and accurate case reserves are set for all known claims liabilities,
including provisions for expenses.
d) Reserving and ultimate reserves risk
Reserving and ultimate reserves risk occurs within the syndicate where established insurance liabilities are
insufficient through inaccurate forecasting, or where there is inadequate allowance for expenses and
reinsurance bad debts in provisions.
To manage reserving and ultimate reserves risk, the managing agent's actuarial team uses a range of
recognised techniques to project gross premiums written, monitor claims development patterns and stress
test ultimate insurance liability balances. An external independent actuary also performs an annual review
to produce a statement of actuarial opinion for the syndicate.
The objective of the syndicate’s reserving policy is to produce accurate and reliable estimates that are
consistent over time and across classes of business. The estimates of gross premiums written and claims
prepared by the actuarial department are used through a formal quarterly peer review process to
independently test the integrity of the estimates produced by the underwriting teams for each class of
business. These meetings are attended by senior management, senior underwriters, actuarial, claims, and
finance representatives.
The syndicate monitors its exposure to insurance risk by location. The geographical breakdown of written
premiums is disclosed in note 3.
A set increase or decrease in total claims liabilities would have the following impact on profit and members'
balances' on the following page:
Sensitivity to insurance risk (claims reserves)
Impact on profit and members'
balances
2025
£'000
2024
£'000
Claims outstanding - gross of reinsurance 12,769 14,620
Claims outstanding - net of reinsurance 11,106 12,506
5% increase in gross claims reserve
(638 ) (731 )
5% decrease in gross claims reserve
5% increase in net claims reserve
(555 ) (625 )
5% decrease in net claims reserve 555 625
SYNDICATE 3622
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
YEAR ENDED 31 DECEMBER 2025
28
2 Risk management continued
2.2 Market risk
Market risk arises where the value of assets and liabilities changes as a result of movements in foreign
exchange rates, interest rates and market prices.
Foreign exchange risk
The functional and presentational currency of the syndicate is the pound sterling. The effect of this on
foreign exchange risk is that the syndicate is exposed to fluctuations in exchange rates for non-sterling
denominated transactions and net assets.
The syndicate deals in four main settlement currencies: US dollars, sterling, Canadian dollars and euros.
Transactions in all currencies are converted to sterling on initial recognition and revalued at the reporting
date. Remaining foreign exchange risk is still actively managed as described below.
The following table summarises the carrying value of total assets and total liabilities categorised by
currency:
| UK £ | US $ | EUR € | CAD $ | Other | Total | |
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
Investments | | | | | | |
Reinsurers' share of technical provisions | | | | | | |
Debtors | | | ( | | | |
Other assets | | | | | | |
Prepayments and accrued income | | | | | | |
Total assets | | | | | | |
Technical provisions | ( | ( | ( | ( | | ( |
Creditors | ( | | | | | ( |
Accruals and deferred income | ( | | | | | ( |
Total liabilities | ( | ( | | ( | | ( |
| Total Capital and Reserves | | ( | ( | ( | ( | ( |
| UK £ | US $ | EUR € | CAD $ | Other | Total | |
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
Investments | | | | | | |
Reinsurers' share of technical provisions | | | | | | |
Debtors | | | ( | | | |
Other assets | | | | | | |
Prepayments and accrued income | | | | | | |
Total assets | | | | | | |
Technical provisions | ( | ( | ( | ( | | ( |
Creditors | ( | ( | | ( | | ( |
Accruals and deferred income | ( | ( | | | | ( |
Total liabilities | ( | ( | | ( | | ( |
Total Capital and Reserves | | | ( | ( | ( | ( |
Foreign exchange risk - Sensitivity analysis
In 2025, the managing agent managed the syndicate's foreign exchange risk by periodically assessing its
non-sterling exposures while targeting net assets to be predominately sterling denominated. As at 31
December 2025 the syndicate held no derivatives (2024: nil).
Fluctuations in the syndicate’s trading currencies against pound sterling would result in a change to profit
and members' balances. The table below gives an indication of the impact on profit and members' balances
of a 10% change in relative strength of sterling against the value of US dollar, Canadian dollar and euro,
simultaneously. The analysis is based on the current information available and an assumption that the
impact of foreign exchange on non-monetary items will be nil and is presented net of the impact of the
exchange rate derivatives referenced above.
SYNDICATE 3622
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
YEAR ENDED 31 DECEMBER 2025
29
2 Risk management continued
Impact on profit and members
balances
Change in exchange rate of US dollar, Canadian dollar and euro
relative to sterling
2025
£'000
2024
£'000
Sterling weakens 10% against other currencies 700 172
Sterling strengthens 10% against other currencies
(700) (172)
Interest rate risk
Some of the syndicate’s financial instruments, including financial investments and cash and cash
equivalents are exposed to movements in market interest rates.
The managing agent manages interest rate risk by primarily investing in short duration financial
investments and cash and cash equivalents. The Investment Committee monitors the duration of these
assets on a regular basis.
The managing agent also entered into interest rate futures contracts to manage the interest rate risk on
fixed income portfolios.
The following table shows the average duration at the reporting date of the financial instruments that are
exposed to movements in market interest rates. Duration is a commonly used measure of volatility and
gives a better indication than maturity of the likely sensitivity of our portfolio to changes in interest rates.
Duration <1 yr 1-2 yrs 2-3 yrs 3-4 yrs 4-5 yrs 5-10 yrs >10 yrs Total
31 December
2025
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Other investments
2,520 — — — — — — 2,520
Cash at bank in
hand
9,438 — — — — — — 9,438
Syndicate loans to
central fund
— — — — — — — —
Total 11,958 — — — — — — 11,958
Duration <1 yr 1-2 yrs 2-3 yrs 3-4 yrs 4-5 yrs 5-10 yrs >10 yrs Total
31 December
2024
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Other
investments
3,165 — — — — — —
3,165
Cash at bank in
hand
8,864 — — — — — — 8,864
Syndicate loans to
central fund
269 — — — — — — 269
Total 12,298 — — — — — — 12,298
Sensitivity analysis - interest rate risk
The syndicate holds financial assets and liabilities that are exposed to interest rate risk. Changes in
interest yields, with all other variables constant, will not result in changes in the capital value of deposits
held. The impact of movements in interest rates was not material to the fair value of the syndicate’s
financial assets at 31 December 2025 or 31 December 2024.
SYNDICATE 3622
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
YEAR ENDED 31 DECEMBER 2025
30
2 Risk management continued
Impact on profit for the year
Impact on members balances
Shift in yield (basis
points)
2025
£'000
2024
£'000
2025
£'000
2024
£'000
50 basis point increase (47 ) (57 ) (47 ) (57 )
50 basis point decrease
Price risk
Financial assets are recognised on the balance sheet at their fair value are not susceptible to losses due
to adverse changes in prices. This is referred to as price risk. Financial assets include fixed term money
market deposits, that invest in fixed and floating debt securities. The fixed income securities are well
diversified across high quality, liquid securities. The price risk associated with these securities is
predominantly interest and foreign exchange.
2.3 Credit risk
Credit risk arises from the failure of another party to perform its financial or contractual obligations to the
syndicate in a timely manner. The primary sources of credit risk for the syndicate are:
• reinsurers – whereby reinsurers may fail to pay valid claims against a reinsurance contract held by
the syndicate;
• brokers and coverholders – whereby counterparties fail to pass on premiums or claims collected or
paid on behalf of the syndicate;
• investments – whereby issuer default results in the syndicate losing all or part of the value of a
financial instrument and derivative financial instrument; and
• cash at bank and in hand.
The syndicate’s core business is to accept significant insurance risk and the appetite for other risks is low.
This protects the syndicate’s capital from erosion so that it can meet its insurance liabilities.
The managing agent limits exposure to a single counterparty or a group of counterparties and analyses the
geographical locations of exposures when assessing credit risk.
An approval system also exists for all new brokers, and broker performance is carefully monitored. Regular
exception reports highlight trading with non-approved brokers, and the syndicate’s credit control function
frequently assesses the ageing and collectability of debtor balances. Any large, aged items are prioritised
and where collection is outsourced, incentives are in place to support these priorities.
The Investment Committee has established comprehensive guidelines for the syndicate’s investment
managers regarding the type, duration and quality of investments acceptable to the syndicate. The
performance of investment managers is regularly reviewed to confirm adherence to these guidelines.
The managing agent has developed processes to formally examine all reinsurers before entering into new
business arrangements. New reinsurers are approved by the Reinsurance Security Committee, which also
reviews arrangements with all existing reinsurers at least annually. Vulnerable or slow-paying reinsurers
are examined more frequently.
To assist in the understanding of credit risks, A.M. Best, Moody’s and Standard & Poor’s (‘S&P’) ratings are
used. These ratings have been categorised below as used for Lloyd’s reporting. The following table
summarise the syndicate’s concentrations of credit risk:
SYNDICATE 3622
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
YEAR ENDED 31 DECEMBER 2025
31
2 Risk management continued
AAA AA A BBB
Other
Not
Rated
Total
31 December 2025 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Investments
Syndicate loans to central fund — — — — — — —
Other investments — — 2,520 — — — 2,520
Total Investments — — 2,520 — — — 2,520
Reinsurers’ share of claims
outstanding — 1,426 237 — — — 1,663
Debtors arising out of direct
insurance operations
Debtors arising out of direct
reinsurance operations
Cash at bank and in hand
Other debtors and accrued interest — 39 72 — — 8 119
Total — 5,846 9,156 — — 15,845 30,847
AAA AA A BBB
Other
Not
Rated
Total
31 December 2024 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Investments
Syndicate loans to central fund — — 269 — — — 269
Other investments — — 3,165 — — — 3,165
Total Investments — — 3,434 — — — 3,434
Reinsurers’ share of claims
outstanding — 373 1,444 — — 297 2,114
Debtors arising out of direct
insurance operations
Debtors arising out of direct
reinsurance operations
Cash at bank and in hand
Other debtors and accrued interest 16 — — — — 60 76
Total 16 385 16,062 — — 17,307 33,770
Based on all evidence available, debtors arising out of insurance operations and other debtors have not
been impaired and no impairment provision has been recognised in respect of these assets (2024:Nil). No
other financial assets held at year end were impaired.
The syndicate has insurance debtors and reinsurance assets that are past due but not impaired at the
reporting date. An aged analysis of these is presented below:
Neither past
due nor
impaired
Past due but
not impaired
Gross value
of impaired
assets
Impairment
allowance
Total
31 December 2025 £'000 £'000 £'000 £'000 £'000
Investments
Syndicate loans to central fund — — — — —
Other investments 2,520 — — — 2,520
Total Investments 2,520 — — — 2,520
Reinsurers’ share of claims outstanding 1,663 — — — 1,663
Debtors arising out of direct insurance
operations
Debtors arising out of reinsurance operations 4,282 5 — — 4,287
Cash at bank and in hand 9,438 — — — 9,438
Other debtors and accrued interest 119 — — — 119
Total 30,847 5 — — 30,852
SYNDICATE 3622
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
YEAR ENDED 31 DECEMBER 2025
32
2 Risk management continued
Neither past
due nor
impaired
Past due but
not impaired
Gross value
of impaired
assets
Impairment
allowance
Total
31 December 2024 £'000 £'000 £'000 £'000 £'000
Investments
Syndicate loans to central fund 269 — — — 269
Other investments 3,165 — — — 3,165
Total Investments 3,434 — — — 3,434
Reinsurers’ share of claims outstanding 2,114 — — — 2,114
Debtors arising out of direct insurance
operations
Debtors arising out of reinsurance operations 4,567 957 — — 5,524
Cash at bank and in hand 8,864 — — — 8,864
Other debtors and accrued interest 76 — — —
Total 33,770 957 — — 34,727
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 assets | 0 - 3 months past due | 3 - 6 months past due | 6 - 12 months past due | Greater than 1 year past due | Total |
31 December 2025 | £'000 | £'000 | £'000 | £'000 | £'000 |
Debtors arising out of direct insurance operations | | | | | |
Debtors arising out of reinsurance operations | | | | | |
| Total | | | | | |
Past due but not impaired assets | 0 - 3 months past due | 3 - 6 months past due | 6 - 12 months past due | Greater than 1 year past due | Total |
31 December 2024 | £'000 | £'000 | £'000 | £'000 | £'000 |
Debtors arising out of direct insurance operations | | | | | |
Debtors arising out of reinsurance operations | | | | | |
| Total | | | | | |
2.4 Liquidity risk
Liquidity risk arises where cash may not be available to pay obligations when due at a reasonable cost.
The syndicate is exposed to daily calls on its available cash resources, principally from claims arising from
its insurance business. In the majority of the cases, these claims are settled from the premiums received.
The syndicate’s approach is to manage its liquidity position so that it can reasonably survive a significant
individual or market loss event. This means that the syndicate maintains sufficient liquid assets, or assets
that can be translated into liquid assets at short notice and without any significant capital loss, to meet
expected cash flow requirements. These liquid funds are regularly monitored using cash flow forecasting to
ensure that surplus funds are invested to achieve a higher rate of return.The table below summarises the
carrying amount at reporting date of financial instruments analysed by maturity on the following page:
The maturity analysis presented in the table below shows the remaining contractual maturities for the
syndicate’s insurance contracts and financial instrument liabilities. 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.
SYNDICATE 3622
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
YEAR ENDED 31 DECEMBER 2025
33
2 Risk management continued
Undiscounted net cash flows | No maturity stated | 0 - 1 yrs | 1 - 3 yrs | 3 - 5 yrs | >5 yrs | Total |
31 December 2025 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 |
Claims outstanding | | | | | | |
Creditors | | | | | | |
Other liabilities | | | | | | |
| Total | | | | | | |
Undiscounted net cash flows
No maturity
stated
0 - 1 yrs 1 - 3 yrs 3 - 5 yrs >5 yrs Total
31 December 2024
£'000 £'000 £'000 £'000 £'000 £'000
Claims outstanding
Creditors
Other liabilities
Total — 9,883 4,977 3,477 4,014 22,351
2.5 Capital management
Capital framework at Lloyd’s
The Society of Lloyd’s is a regulated undertaking and subject to the supervision of the Prudential
Regulation Authority under the Financial Services and Markets Act 2000.
Within this supervisory framework, Lloyd’s applies capital requirements at member level and centrally to
ensure that Lloyd’s complies with Solvency II, and beyond that to meet its own financial strength, license
and ratings objectives. Although, as described below, the Lloyd’s capital setting processes use a capital
requirement set at syndicate level as a starting point, the requirement to meet Solvency II and Lloyd’s
capital requirements apply at an overall and member level respectively, not at a syndicate level.
Accordingly the capital requirement in respect of Syndicate 3622 is not disclosed in these financial
statements.
Lloyd’s capital setting process
In order to meet Lloyd’s requirements, each syndicate is required to calculate its Solvency Capital
Requirement ('SCR') for the prospective underwriting year. This amount must be sufficient to cover a 1 in
200 year loss, reflecting uncertainty in the ultimate run-off of underwriting liabilities (SCR ‘to ultimate’).
The syndicate must also calculate its SCR at the same confidence level but reflecting uncertainty over a
one year time horizon (one year SCR) for Lloyd’s to use in meeting Solvency II requirements. The SCRs of
each syndicate are subject to review by Lloyd’s and approval by the Lloyd’s Capital and Planning Group.
A syndicate comprises one or more underwriting members of Lloyd’s. Each member is liable for its own
share of underwriting liabilities on the syndicate(s) on which it participates but not other members’ shares.
Accordingly, the capital requirement that Lloyd’s sets for each member operates on a similar basis. Each
member’s SCR shall thus be determined by the sum of the member’s share of the syndicate SCR to
ultimate.
Where a member participates on more than one syndicate, a credit for diversification is provided to reflect
the spread of risk, but consistent with determining an SCR which reflects the capital requirement
to cover a 1 in 200 year loss to ultimate for that member. Over and above this, Lloyd’s applies a capital
uplift to the member’s capital requirement, known as the Economic Capital Assessment (‘ECA’). The
purpose of this uplift, which is a Lloyd’s not a Solvency II requirement, is to meet Lloyd’s financial
strength, licence and ratings objectives. The capital uplift applied for 2025 was 35% (2024: 35%) of the
member’s SCR to ultimate.
Provision of capital by members
Each member may provide capital to meet its ECA either by assets held in trust by Lloyd’s specifically for
that member (funds at Lloyd’s), held within and managed within a syndicate (funds in syndicate) and/or as
the member’s share of the Solvency II members’ balances on each syndicate on which it participates.
SYNDICATE 3622
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
YEAR ENDED 31 DECEMBER 2025
34
3 Analysis of underwriting result
Underwriting result is the balance on the technical result - general business, less the allocated investment return
transferred from the non-technical account.
Gross premiums written | Gross premiums earned | Gross claims incurred | Gross operating expenses | Reinsurance balance | Underwriting result | |
2025 | £'000 | £'000 | £'000 | £'000 | £'000 | £'000 |
Direct Insurance | ||||||
Life | | | ( | ( | ( | |
Total direct insurance | | | ( | ( | ( | |
Reinsurance acceptances | | | ( | ( | ( | |
| Total | | | ( | ( | ( | |
Gross
premiums
written
Gross
premiums
earned
Gross claims
incurred
Gross
operating
expenses
Reinsurance
balance
Underwriting
result
2024*
£'000 £'000 £'000 £'000 £'000 £'000
Direct Insurance
Life 25,602 26,168 (6,292 ) (12,065 ) (3,160 ) 4,651
Total direct
insurance
Reinsurance
acceptances
Total 31,379 32,060 (7,861 ) (13,660 ) (3,173 ) 7,366
*Certain balances which were previously classified within gross operating expenses have now been classified within
reinsurance balance. The prior period comparative has been restated accordingly.
The gross premiums written for direct insurance by location (where the contracts were concluded) is
presented in the table below:
Concentration of insurance risk
2025
£'000
2024
£'000
United Kingdom 20,919 25,602
Total gross premiums written 20,919 25,602
SYNDICATE 3622
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
YEAR ENDED 31 DECEMBER 2025
35
4 Net operating expenses
| 2025 | 2024 | |
| £'000 | £'000 | |
Acquisition costs | | |
Change in deferred acquisition costs | | ( |
Administrative expenses | | |
| Reinsurance commission and profit participation | ( | ( |
| Net operating expenses | |
Total commission for direct insurance business for the year amounted to:
| 2025 | 2024 | |
| £'000 | £'000 | |
Total commission for direct insurance business | | |
Administrative expenses include:
| 2025 | 2024 | |
| £’000 | £’000 | |
Auditor’s remuneration: | ||
Fees payable to the syndicate’s auditor for the audit of these annual accounts | | |
Fees payable to the syndicate’s auditor and other services pursuant to legislation to align with Lloyds | | |
Total | 241 | 224 |
Fees payable to the syndicate's auditor in relation to other services pursuant to legislation primarily relate
to the review and audit of syndicate regulatory returns along with the statement of actuarial opinion.
5 Key management personnel compensation
The Directors of BFL received the following aggregate remuneration charged to Syndicate 3622 and
included within net operating expenses:
| 2025 | 2024 | |
£'000 | £'000 | |
Directors' emoluments | | |
The active underwriter received the following aggregate remuneration charged to the Syndicate 3622.
| 2025 | 2024 | |
£'000 | £'000 | |
Emoluments |
SYNDICATE 3622
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
YEAR ENDED 31 DECEMBER 2025
36
6 Staff numbers and costs
The syndicate has no employees. All staff are employed by Beazley Management Limited ('BML'), a related
company to the managing agent, both of which operate within the Beazley Group. The average number of
persons employed by BML analysed by category, was as follows:
Number of employees | ||
| 2025 | 2024 | |
| Administration and finance | | |
| Underwriting | | |
| Claims | | |
| Investments | | |
Total | | |
The following amounts were recharged to the syndicate in respect of payroll costs:
| 2025 | 2024 | |
| £'000 | £'000 | |
| Wages and salaries | | |
| Social security | | |
| Other pension costs | | |
| Other | | |
| Total | | |
7 Investment return
| 2025 | 2024 | |
| £'000 | £'000 | |
Interest and similar income | ||
From financial assets designated at fair value through profit | ||
or loss | ||
| Interest and similar income | | |
From financial assets classified at amortised cost | ||
| Interest on cash at bank | | |
From financial assets designated at fair value through profit | ||
or loss | ||
| Unrealised gains on investments | | |
| Unrealised losses on the investments | | ( |
| Total investment return | | |
Transferred to the technical account from the non-technical account | | |
8 Distribution and open years of account |
A distribution of £4,806 k to members will be proposed in relation to the 2023 year of account which is
closing (2024: distribution of £647 k profit for the 2022 year of account).
SYNDICATE 3622
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
YEAR ENDED 31 DECEMBER 2025
37
9 Financial investments
| Carrying value | Cost | |||
| 2025 | 2024 | 2025 | 2024 | |
| £'000 | £'000 | £'000 | £'000 | |
Syndicate loans to central fund | | | | |
Other investments | | | | |
Total financial investments | | | ||
Overseas deposits, included within other investments, are held as a condition of conducting underwriting
business in certain countries.
The syndicate held no listed investments in the period to 31 December 2025.
The table below presents an analysis of financial investments by their measurement classification:
| 2025 | 2024 | |
| £'000 | £'000 | |
| Financial assets measured at fair value through profit or loss | | |
Total financial investments | | |
Valuation hierarchy
All assets and liabilities for which fair value is measured or disclosed in the financial statements are
categorised within the fair value hierarchy described as follows, based on the lowest level input that is
significant to the fair value measurement as a whole. If the inputs used to measure the fair value of an
asset or a liability could be categorised in different levels of the fair value hierarchy, then the fair value
measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level
input that is significant to the entire measurement.
Level 1 – Valuations based on quoted prices in active markets for identical instruments. An active market
is a market in which transactions for the instrument occur with sufficient frequency and volume on an
ongoing basis such that quoted prices reflect prices at which an orderly transaction would take place
between market participants at the measurement date.
Level 2 – Valuations based on quoted prices in markets that are not active, or based on pricing models for
which significant inputs can be corroborated by observable market data, directly or indirectly (e.g. interest
rates, exchange rates). Level 2 inputs include:
• Quoted prices similar assets and liabilities in active markets;
• Quoted prices for identical or similar assets and liabilities in markets that are not active, the prices
are not current, or price quotations vary substantially either over time or among market makers, or
in which little information is released publicly;
• Inputs other than quoted prices that are observable for the asset or liability (for example, interest
rates and yield curves observable at commonly quoted intervals, implied volatilities and credit
spreads); and
• Market corroborated inputs. Included within level 2 are government bonds and treasury bills, equity
funds and corporate bonds which are not actively traded, hedge funds and senior secured loans.
Level 3 – Valuations based on inputs that are unobservable or for which there is limited market activity
against which to measure fair value. The availability of financial data can vary for different financial assets
and is affected by a wide variety of factors, including the type of financial instrument, whether it is new
and not yet established in the marketplace, and other characteristics specific to each transaction. To the
extent that valuation is based on models or inputs that are unobservable in the market, the determination
of fair value requires more judgement. Accordingly the degree of judgement exercised by management in
determining fair value is greatest for instruments classified in level 3. The managing agent uses prices and
inputs that are current as of the measurement date for valuation of these instruments.
SYNDICATE 3622
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
YEAR ENDED 31 DECEMBER 2025
38
38
9 Financial investments continued
The table below shows the fair value of financial instruments at 31 December 2025, including their levels
in the fair value hierarchy:
| 2025 | Level 1 | Level 2 | Level 3 | Total |
| £'000 | £'000 | £'000 | £'000 | |
| Syndicate loans to central fund | | | | |
Other investments | | | | |
| Total financial investments | | | | |
| 2024 | Level 1 | Level 2 | Level 3 | Total |
| £'000 | £'000 | £'000 | £'000 | |
Syndicate loans to central fund | | | | |
Other investments | | | | |
| Total financial investments | | | | |
10 Debtors arising out of direct insurance operations
| 2025 | 2024 | |
| £'000 | £'000 | |
| Due within one year | | |
| Due after one year | | |
Total | | |
11 Debtors arising out of direct reinsurance operations
| 2025 | 2024 | |
| £'000 | £'000 | |
| Due within one year | | |
Due after one year | | |
Total | | |
12 Other debtors
| 2025 | 2024 | |
| £'000 | £'000 | |
Inter-syndicate balances | ||
| Amounts due from Syndicate 2623 | — | 16 |
| Total inter-syndicate balances | | |
| Other | | |
Total | | |
These balances are due within one year.
SYNDICATE 3622
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
YEAR ENDED 31 DECEMBER 2025
39
13 Deferred acquisition costs
| 2025 | 2024 | |||||
| Gross | Reinsurance | Net | Gross Reinsurance | Net | ||
| £'000 | £'000 | £'000 | £'000 | £'000 | £'000 | |
Balance at 1 January | ( | | | ( | | |
Incurred deferred acquisition costs | ( | | | ( | | |
Amortised deferred acquisition costs | ( | | ( | ( | | ( |
Foreign exchange movements | ( | | ( | ( | | ( |
Balance at 31 December | | ( | | ( | | |
14 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
Gross
provisions
Reinsurance
assets
Net
Gross
provisions
Reinsurance
assets
Net
Claims outstanding £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 January
Claims paid during the year
(13,907 ) 3,831 (10,076 ) (12,931 ) 4,824 (8,107 )
Expected cost of current year
claims
Change in estimates of prior year
provisions
(2,758 ) 449 (2,309 ) (9,976 ) 2,102 (7,874 )
Foreign exchange movements (249 ) 10 (239 ) (78 ) 11 (67 )
Balance at 31 December
2025 2024
Gross
provisions
Reinsurance
assets
Net
Gross
provisions
Reinsurance
assets
Net
Unearned premiums £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 January
Premiums written during the year
Premiums earned during the year
(28,505 ) 4,112 (24,393 ) (32,060 ) 6,601
(25,459 )
Foreign exchange movements
(80 ) 11 (69 ) (32 ) 3 (29 )
Balance at 31 December
Refer to note 2 for the sensitivity analysis performed over the value of insurance liabilities, disclosed in the
accounts, to potential movements in the assumptions applied within the technical provisions.
SYNDICATE 3622
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
YEAR ENDED 31 DECEMBER 2025
40
14 Technical Provisions continued
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. The below tables were previously shown
on a fully earned basis. This is the first year presenting these tables on a earned basis. 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.
Gross
| 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total | |
Pure underwriting year | £ '000 | £ '000 | £ '000 | £ '000 | £ '000 | £ '000 | £ '000 | £ '000 | £ '000 | £ '000 | £ '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 reserves | | | | ||||||||
Provision in respect of prior years | |||||||||||
Less gross claims paid | ( | ( | ( | ( | ( | ( | ( | ( | ( | ( | ( |
Gross claims reserves | | | | | | | | | | |
Net
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Total
Pure underwriting
year
£ '000 £ '000 £ '000 £ '000 £ '000 £ '000 £ '000 £ '000 £ '000 £ '000 £ '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 net
claims reserves
Provision in
respect of prior
years
Less net claims
paid
(8,994 ) (10,681 ) (9,568 ) (9,335 ) (11,047 ) (7,858 ) (12,459 ) (7,695 ) (8,284 ) (1,666 ) (87,587 )
Net claims
reserves
SYNDICATE 3622
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
YEAR ENDED 31 DECEMBER 2025
41
15 Creditors arising out of direct reinsurance operations
| 2025 | 2024 | |
| £'000 | £'000 | |
| Due within one year | | |
| Due after one year | | |
| Total | | |
16 Other creditors
| 2025 | 2024 | |
| £'000 | £'000 | |
| Other related party balances (non-syndicates) | | |
| Total | | |
The above other creditors balances are payable within one year.
17 Cash and cash equivalents
| 2025 | 2024 | |
£'000 | £'000 | |
| Cash at bank and in hand* | | |
Short term debt instruments presented within other financial investments | | |
| Total cash and cash equivalents | | |
*Included within Cash at bank and in hand are money market funds of $3,322k ( 2024: nil).
18 Analysis of net debt
All amounts in £'000 | At 1 January 2025 | Cash flows | Acquired | Fair value and exchange movements | Non cash charges | At 31 December 2025 |
Cash and cash equivalents | | | | ( | | |
Total | | | | ( | | |
All amounts in £'000 | At 1 January 2024 | Cash flows | Acquired | Fair value and exchange movements | Non cash charges | At 31 December 2024 |
Cash and cash equivalents | | ( | | ( | | |
| Total | | ( | | ( | | |
19 Subsequent events
The 2023 YoA has closed with a profit of £4,806k. It is the intention that these funds will be distributed to
the members reserve funds in May 2026.
SYNDICATE 3622
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
YEAR ENDED 31 DECEMBER 2025
42
20 Foreign exchange rates
The syndicate used the following exchange rates to translate foreign currency assets, liabilities, income
and expenses into Pound Sterling, being the syndicate’s presentational currency:
| 2025 | 2024 | |||||
Start of period | End of period | Average | Start of period | End of period | Average | |
| Sterling | | | | | ||
| Euro | | | | | | |
| US Dollars | | | | | | |
| Canadian dollars | | | | | | |
21 Funds at Lloyd's
Every member is required to hold capital at Lloyd’s which is held in trust and known as Funds at Lloyd’s
(‘FAL’). These funds are intended primarily to cover circumstances where syndicate assets prove
insufficient to meet participating members’ underwriting liabilities. The level of FAL that Lloyd’s requires a
member to maintain is determined by Lloyd’s based on 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 3622
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
YEAR ENDED 31 DECEMBER 2025
43
Beazley Furlonge Limited has been the managing agent of Syndicate 3622 throughout the period covered by
this report and the registered office is 22 Bishopsgate, London EC2N 4BQ.
Directors
R A Stuchbery* - Chair
R S Anarfi - (resigned 28/02/2025)
P J Bantick - (resigned 17/03/2025)
W W E Barkholt* - (appointed 01/01/2025)
R J Clark*
A P Cox - (resigned 18/03/2025)
M E Diacon - (appointed 10/03/2025)
B J Greenwood - (appointed 18/03/2025)
G A Hayes - (appointed 13/03/2025)
A J Reizenstein* - (resigned 30/04/2025)
L Santori*
K J Somasundaram* - (appointed 03/11/2025)
N Wall*
C C J Wong
* Non-Executive Director.
Active underwriter
G A Hayes
Company secretary
R Yeoman
Managing agent’s registered office
22 Bishopsgate
London
EC2N 4BQ
United Kingdom
Registered number
01893407
Syndicate number
3622
Auditor
Ernst & Young LLP
25 Churchill Place
London
E14 5EY
Banker
Deutsche Bank AG
Winchester House
London
1 Great Winchester Street
EC2N 2DB
SYNDICATE 3622
MANAGING AGENT'S CORPORATE INFORMATION
YEAR ENDED 31 DECEMBER 2025
44
44
