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Docusign Envelope ID: 11B1D072-1549-4C34-8E84-7A8E036098E7
Lloyd’s Syndicate
Syndicate 2843
Annual Report and Accounts for the year ended
Docusign Envelope ID: 11B1D072-1549-4C34-8E84-7A8E036098E7
Registered office: Polo Managing Agency, registered in England & Wales Registration no.
03935227
www.polo.works
1
Contents
Directors and Administration
...........................................................................................................
2
Managing Agent’s Report
................................................................................................................
3
Statement of Managing Agent’s Responsibilities
.............................................................................
7
Independent auditor’s report to the members’ of Syndicate 2843
....................................................
8
Statement of profit or loss and other comprehensive income
........................................................
12
Balance sheet – Assets
.................................................................................................................
14
Balance sheet (cont’d) – Liabilities
................................................................................................
15
Statement of changes in members’ balances
................................................................................
16
Statement of cash flows
................................................................................................................
17
Notes to the financial statements
.................................................................................................
18
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03935227
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2
Directors and Administration
Managing Agent
Registered Office
Grange Park,
Bishop's Cleeve,
Cheltenham, England,
GL52 8YQ
Registered Number
03935227
Directors
P D Andrews
M J Bishop (resigned 13 Mar 2025)
I J Bremner*
K D Curtis*
J A Hummerston (resigned 19 Feb 2025)
C E Layton (appointed 3 Jan 2025)
S Minshall
G H J Nokes (appointed 13 Mar 2025)
R M Richardson-Bunbury
M Sebold-Bender*
P R Smith
Z Szalkai
P I Wooldridge
* Independent non-executive director
Company Secretary
L Robinson (appointed 6 Oct 2025)
P M Laws (resigned 15 Sep 2025)
Syndicate
Active Underwriter
C Carr
Bankers
Barclays Bank – London
Citibank NA – London and New York
RBC Investor & Treasury Services – Toronto
Investment manager
Conning Asset Management Limited
Auditors
PKF Littlejohn LLP
Statement of actuarial opinion signing actuary
PKF Littlejohn LLP
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Registered office: Polo Managing Agency, registered in England & Wales Registration no.
03935227
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Managing Agent’s Report
The Directors of PMA, the Managing Agent, present their report for Syndicate 2843 ("the Syndicate") for the
year ended 31 December 2025.
The financial statements have been prepared in accordance with 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 the Lloyd’s Syndicate Accounts
Instructions V3.1 as modified by the Frequently Asked Questions Version V1.1 issued by Lloyd’s (the
Syndicate Accounts Instructions).
Results
The result for the year ended 31 December 2025 is a profit of $39.2m.
This is the first year of operation for the Syndicate.
Principal activities
The principal activity of the Syndicate is underwriting reinsurance and insurance business in the Lloyd’s
market.
Management of the Syndicate
Polo Managing Agency Limited (“PMA”) is the Managing Agency for the Syndicate.
The Managing Agent is a wholly owned subsidiary of Marco Capital Holdings (UK) Limited.
Review of the Financial Performance
The syndicate reported a $39.2m profit for the 2025 financial year.
The calendar year combined ratio was
83.9%.
The Syndicate’s key financial performance indicators during the year were as follows:
Key performance indicators
2025
$’000
Gross premiums written
381,906
Net premium written
321,916
Net premiums earned
238,488
Net claims incurred
(92,380)
Net operating expenses
(107,768)
Profit for the financial year
39,162
Net annual accounting ratios
2025
%
Claims ratio
38.7
Expense ratio
45.2
Combined ratio
83.9
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03935227
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Gross written premium by class:
2025
$m
Property Catastrophe
196,610
Property Specialty
62,544
Marine Energy Terror
63,865
Cyber
25,375
Credit
20,607
Innovation
8,857
Transition
4,048
Total
381,906
As this is the first year of operation for the Syndicate, no comparative information is available.
Gross premium written of $381.9m exceeded the initial Syndicate Business Plan for the 2025 year of account
and was in line with the resubmitted plan.
In 2025, global insured losses from natural catastrophes surpassed $100 billion for the sixth consecutive year,
primarily driven by wildfires in Los Angeles and severe convective storms in the United States.
The Syndicate’s
exposure to these events was limited and, together with the absence of significant land-falling hurricanes
during the year, contributed to a claims ratio of 38.7%.
Principal risks and uncertainties
The Managing Agent has a Risk Management Function for the Syndicate with clear terms of reference from
the Board of Directors and its committees, including the Audit and Risk committees. The Board approves the
risk management policies and meets regularly to approve commercial, regulatory and organisational
requirements of such policies. The Board reviews and approves its risk appetite annually.
The Risk Management FBunction has implemented a Board approved Risk Management Framework to
enable the ongoing identification, assessment and management (mitigation, monitoring and reporting) of risks
and is also responsible for producing the Syndicate’s Own Risk and Solvency Assessment (‘ORSA’);
recommending the assessment to the Board for approval.
The principal risks and uncertainties facing the Syndicate are set out below. Additional information regarding
how the Syndicate manages risk, including capital management is disclosed in Note 4 to these financial
statements.
Insurance Risk
The principal risk the Syndicate faces under insurance contracts is that the actual claims and benefit payments
or the timing thereof, differ from expectations. This is influenced by the frequency of claims, severity of claims,
actual benefits paid and subsequent development of long–term claims. The objective of the Syndicate is to
ensure that sufficient reserves are available to cover these liabilities.
The Board manages insurance risk by agreeing its appetite for these risks annually through the business plan,
which sets out targets for volumes, pricing, line sizes and retention. The Syndicate purchases reinsurance as
part of its risk mitigation programme.
The Syndicate Management Committee (“SMC”) monitors performance against the business plan on a
quarterly basis. Reserve adequacy is monitored through quarterly review by the Syndicate Actuary and the
Reserving and Syndicate Management Committee.
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Credit Risk
Credit risk relates to the risk of default on the settlement of balances receivable by the Syndicate. The
Syndicate’s reinsurers represent the principal sources of this risk.
This risk is actively managed by the policies,
procedures and controls overseen by the SMC. The Syndicate has reinsurance with highly rated or reputable
reinsurers.
Liquidity Risk
Liquidity risk is the risk that the Syndicate will encounter difficulty in meeting obligations due to a short-term
shortfall in available funds. A number of processes are followed by the Managing Agent to further mitigate
against the risk of the Syndicate being unable to settle its obligations as they fall due.
Market Risk
The key aspect of market risk is that the Syndicate incurs losses on foreign exchange movements as a result
of mismatches between the currencies in which assets and liabilities are denominated. Currency matching is
reviewed by Management quarterly. Where there is a significant mismatch, the Managing Agent seeks to
mitigate the risk through buying or selling currency, where this is appropriate.
Interest rate risk
Interest rate risk is the risk that the value or future cash flows of a financial instrument will fluctuate because
of changes in market interest rates. The extent of any price fluctuation is driven by the portfolio duration and
changes in interest rate spreads. The investment portfolio duration is managed so as to be slightly less than
the duration of claims payments and spread risk is mitigated by investment guidelines which place limits on
the amounts that can be invested with different grades of counterparty.
Operational Risk
This is the risk that errors caused by people, processes or systems lead to losses to the Syndicate. Risks
include those from information security (including cyber) and technology related activities, legal and regulatory,
financial reporting, and financial crime as well as those from operations, outsourcing and change. The
Managing Agent seeks to manage this risk through its governance structure and internal control framework as
well as business processes (including business continuity and resilience plans).
Regulatory Risk
The Managing Agent is required to comply with the requirements of the Prudential Regulation Authority (“PRA”)
and Financial Conduct Authority (“FCA”) and Lloyd’s. Lloyd’s requirements include those imposed on the
Lloyd’s market by overseas regulators, particularly in respect of US situs business. Regulatory risk is the risk
of loss owing to a breach of regulatory requirements or failure to respond to regulatory change.
The Managing Agent has a Compliance Function that monitors regulatory developments and assesses the
impact on the Managing Agent’s policies. The compliance function reports regularly to the Board which has
ultimate responsibility for ensuring compliance with applicable laws and regulations.
Conduct risk
Conduct risk is the risk that the Syndicate fails to pay appropriate regard to the interest of its customers
and/or fails to treat them fairly at all times. Conduct risk is managed through the application of strong internal
controls, compliance policies and procedures, and through the monitoring of various conduct risk metrics.
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Future developments
The Syndicate plans to increase premium volume for the 2026 and 2027 underwriting years subject to Lloyd’s
approval. The Syndicate will continue to transact the current classes of general direct insurance and
reinsurance business and will being underwriting in the property per risk class from 2026.
Environmental matters
The Managing Agent does not consider its business to have a large adverse impact upon the environment. As
a result, the agent does not manage its underwriting business by reference to any environmental key
performance indicators. The Managing Agent takes a responsible approach in the management of assets by
striving to invest in institutions that do no harm to the environment.
Directors
Details of the Directors of the Managing Agent who served during the year and up to the date of signing of
the Syndicate Annual are provided on page 2 in the Directors and Administration section.
Disclosure of information to the auditors
The Directors of the Managing Agent at the time the report is approved confirm that:
•
So far as each of them is aware, there is no relevant audit information, being information needed by
the Syndicate’s auditor in connection with the auditor’s report, of which the auditor is unaware; and
•
Having made enquiries of fellow Directors of the Managing Agency and the Syndicate’s auditor, each
director has taken all the steps that he or she ought to have taken as a director to become aware of
any relevant audit information and to establish that the Syndicate’s auditor is aware of that
information.
Auditors
PKF Littlejohn LLP has been appointed as the Syndicate’s auditor and pursuant to Section 14 (2) of Schedule
1 of the Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008, PKF
Littlejohn LLP will continue in office.
On behalf of the Board
G H J Nokes
Director
17 February 2026
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Statement of Managing Agent’s Responsibilities
The Managing Agent is responsible for preparing the Syndicate annual report and accounts in accordance
with applicable laws and regulations.
The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 require the
Managing Agent to prepare Syndicate annual report and accounts at 31 December each year in accordance
with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and
applicable law). The Syndicate annual reports and accounts are required by law to give a true and fair view of
the state of affairs of the Syndicate as at that date and of its profit or loss for that year.
In preparing the Syndicate annual report and accounts, the Managing Agent is required to
•
Select suitable accounting policies which are applied consistently;
•
Make judgements and estimates that are reasonable and prudent;
•
State whether applicable UK accounting standards have been followed, subject to any material
departures disclosed and explained in the notes to the Syndicate annual accounts;
•
Prepare the Syndicate annual report and accounts on the basis that the Syndicate will continue to
write future business unless it is inappropriate to presume that the Syndicate will do so; and
•
Prepare and review of the iXBRL tagging that has been applied to the Syndicate Accounts in
accordance with the instructions issued by Lloyd’s, including designing, implementing and maintaining
systems, processes and internal controls to result in tagging that is free from material non-compliance
with the instructions issued by Lloyd’s, whether due to fraud or error.
The Managing Agent is responsible for keeping proper accounting records which disclose with reasonable
accuracy at any time the financial position of the Syndicate and enable it to ensure that the Syndicate annual
report and accounts comply with the Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate
Accounts) Regulations 2008. It is also responsible for safeguarding the assets of the Syndicate and hence for
taking reasonable steps for prevention and detection of fraud and other irregularities.
The Managing Agent is responsible for the maintenance and integrity of the corporate and financial information
included on the business’ website. Legislation in the United Kingdom governing the preparation and
dissemination of annual accounts may differ from legislation in other jurisdictions.
We confirm that to the best of our knowledge the Syndicate accounts, including the iXBRL tagging applied to
these accounts, comply with the requirements of the Lloyd’s Syndicate Accounts Instructions V3.1 as
modified by the Frequently Asked Questions V1.1 issued by Lloyd’s.
On behalf of the Board
G H J Nokes
Director
17 February 2026
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03935227
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Independent auditor’s report to the members’ of Syndicate 2843
Opinion
We have audited the Syndicate Annual Accounts of Syndicate 2843 (the ‘Syndicate’) for the year ended 31
December 2025 which comprise the Statement of profit or loss and other comprehensive income, the Balance
sheet, the Statement of changes in members’ balances, the Statement of cash flows and notes to the financial
statements, including significant accounting policies. The financial reporting framework that has been applied
in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The
Financial Reporting Standard applicable in the UK and Republic of Ireland and FRS 103 “Insurance
Contracts” (United Kingdom Generally Accepted Accounting Practice), 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
Syndicate Accounts Instructions).
In our opinion, the Syndicate Annual Accounts:
•
give a true and fair view of the state of the Syndicate’s affairs as at 31 December 2025 and of its profit
for the year then ended;
•
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting
Practice; and
•
have been prepared in accordance with the requirements of the Insurance Accounts Directive (Lloyd’s
Syndicate and Aggregate Accounts) Regulations 2008 and the requirements within Lloyd’s Syndicate
Accounts Instructions Version 3.1 as modified by the Frequently Asked Questions Version 1.1 issued
by Lloyd’s (the “Lloyd’s Syndicate Accounts Instructions”).
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)), The
Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008, the Lloyd’s
Syndicate Accounts Instructions and other applicable law. Our responsibilities under those standards are
further described in the Auditor’s responsibilities for the audit of the Syndicate Annual Accounts section of our
report. We are independent of the Syndicate in accordance with the ethical requirements that are relevant to
our audit of the Syndicate Annual Accounts in the UK, including the FRC’s Ethical Standard, and we have
fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Other Matter
This report may be included within a document to which iXBRL tagging has been applied. This auditor’s report
provides no assurance over whether the iXBRL tagging has been applied in accordance with the Lloyd’s
Syndicate Accounts Instructions.
Conclusions relating to going concern
In auditing the Syndicate Annual Accounts, we have concluded that the managing agent’s use of the going
concern basis of accounting in the preparation of the Syndicate Annual Accounts is appropriate.
Based upon the work we have performed, we have not identified any material uncertainties relating to events
or conditions that, individually or collectively, may cast significant doubt on the Syndicate’s ability to continue
as a going concern for a period of at least twelve months from when the Syndicate Annual Accounts are
authorised for issue.
Our responsibilities and the responsibilities of the managing agent with respect to going concern are described
in the relevant sections of this report.
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Other information
The other information comprises the information included in the Syndicate Annual Report and Accounts,
other than the Syndicate Annual Accounts and our auditor’s report thereon.
The managing agent is responsible for the other information contained within the Syndicate Annual Report
and Accounts. Our opinion on the Syndicate Annual Accounts does not cover the other information and,
except to the extent otherwise explicitly stated in our report, we do not express any form of assurance
conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the
other information is materially inconsistent with the Syndicate Annual Accounts or our knowledge obtained in
the course of the audit, or otherwise appears to be materially misstated. If we identify such material
inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to
a material misstatement in the Syndicate Annual Accounts themselves. If, based on the work we have
performed, we conclude that there is a material misstatement of this other information, we are required to
report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Insurance Accounts Directive (Lloyd’s Syndicate and
Aggregate Accounts) Regulations 2008
In our opinion, based on the work undertaken in the course of the audit:
•
the information given in the managing agent’s report for the financial year for which the Syndicate
Annual Accounts are prepared is consistent with the Syndicate Annual Accounts; and
•
the managing agent’s report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Syndicate and its environment obtained in the course
of the audit, we have not identified material misstatements in the managing agent’s report.
We have nothing to report in respect of the following matters in relation to which the Insurance Accounts
Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 requires us to report to you if, in our
opinion:
•
adequate accounting records have not been kept on behalf of the Syndicate; or
•
the Syndicate Annual Accounts are not in agreement with the accounting records and returns; or
•
certain disclosures of managing agent emoluments and other benefits specified by law are not made;
or
•
we have not received all the information and explanations we require for our audit.
Responsibilities of the managing agent
As explained more fully in the statement of managing agent’s responsibilities, the managing agent is
responsible for the preparation of the Syndicate Annual Accounts and for being satisfied that they give a true
and fair view and for such internal control as the managing agent determines is necessary to enable the
preparation of Syndicate Annual Accounts that are free from material misstatement, whether due to fraud or
error.
In preparing the Syndicate Annual Accounts, the managing agent is responsible for assessing the Syndicate’s
ability to continue to write new business, disclosing, as applicable, matters related to its ability to continue to
operate and using the going concern basis of accounting, unless the managing agent intends to cease to
operate the Syndicate or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Syndicate Annual Accounts
Our objectives are to obtain reasonable assurance about whether the Syndicate Annual Accounts as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted
in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably
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be expected to influence the economic decisions of users taken on the basis of these Syndicate Annual
Accounts.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design
procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of
irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities,
including fraud is detailed below:
•
We obtained an understanding of the Syndicate and the insurance sector in which it operates to identify
laws and regulations that could reasonably be expected to have a direct effect on the Syndicate Annual
Accounts such as The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts)
Regulations 2008 and the Lloyd’s Syndicate Accounts Instructions. We obtained our understanding in this
regard through discussions with management, industry research and the application of our cumulative
audit knowledge and experience of the insurance sector.
•
We determined the principal laws and regulations relevant to the Syndicate in this regard to be those
arising from the Financial Conduct Authority (FCA), the Prudential Regulation Authority (PRA), Lloyd’s of
London and the Insurance Accounts Directive (Lloyd’s Syndicates and Aggregate Accounts) Regulations
2008, and the financial reporting framework (UK GAAP).
•
The Syndicate operates in the insurance industry which is a highly regulated environment. As such the
Senior Statutory Auditor considered the experience and expertise of the engagement team to ensure that
the team has the appropriate competence and capabilities to perform the audit.
•
We designed our audit procedures to ensure the audit team considered whether there were any indications
of non-compliance by the Syndicate with those laws and regulations. These procedures included, but were
not limited to:
o
agreement of the Syndicate Annual Accounts disclosures to underlying supporting documentation;
o
enquiries of management and review of minutes of Board, committee and management meetings
throughout the period;
o
understanding the Syndicate’s policies and procedures in monitoring compliance with laws and
regulations;
o
inspection of correspondence with Lloyd’s of London, the PRA and FCA; and
o
reviewing compliance reports and internal audit reports relating to the Syndicate.
•
We also identified possible risks of material misstatement of the Syndicate Annual Accounts due to fraud;
in particular:
o
We considered that there is a rebuttable presumption that there is a significant fraud risk over
revenue recognition. We considered there to be a fraud risk over the valuation of estimated premium
income. To address this, our procedures included an examination of the calculations of the estimated
premiums and agreeing on a sample basis estimated premium income to supporting documentation
as well as engaging in discussions with the Syndicate to confirm that the information provided to the
Managing Agent was complete and accurate.
o
We considered that there was potential for management bias in the reporting of events and
transactions in the Syndicate Annual Accounts relating to the valuation of technical provisions and
the calculation of the reinsurer’s share of technical provisions. To address this, we involved actuarial
specialists to assist us in challenging the assumptions and judgements made by management when
auditing those significant accounting estimates.
o
As in all of our audits, we addressed the risk of fraud arising from management override of controls
by performing audit procedures which included, but were not limited to, the testing of journals,
reviewing accounting estimates for evidence of bias and evaluating the business rationale of any
significant transactions that were unusual or outside the normal course of business.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including
those leading to a material misstatement in the Syndicate Annual Accounts or non-compliance with laws and
regulations. This risk increases the more that compliance with a law or regulation is removed from the events
and transactions reflected in the Syndicate Annual Accounts, as we will be less likely to become aware of
instances of non-compliance. This risk is also greater regarding irregularities occurring due to fraud rather than
error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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A further description of our responsibilities for the audit of the Syndicate Annual Accounts is located on the
Financial Reporting Council’s website at:
www.frc.org.uk/auditorsresponsibilities
. This description forms part
of our auditor’s report.
Use of our report
This report is made solely to the Syndicate’s members, as a body, in accordance with Part 2 of the Insurance
Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008.
Our audit work has been
undertaken so that we might state to the Syndicate’s members those matters we are required to state to them
in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone, other than the Syndicate and the Syndicate's members as a body, for our
audit work, for this report, or for the opinions we have formed.
Garin McFarlane
(Senior Statutory Auditor)
15 Westferry Circus
For and on behalf of PKF Littlejohn LLP
Canary Wharf
Statutory Auditor
London E14 4HD
17 February 2026
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Statement of profit or loss and other comprehensive income
Technical account – General business
For the year ended 31 December 2025
Note
2025
$000
Gross premiums written
5
Outwards reinsurance premiums
(59,990 )
Premiums written, net of reinsurance
Changes in unearned premium
16
Change in the gross provision for unearned premiums
(84,727 )
Change in the provision for unearned premiums reinsurers’ share
Net change in provisions for unearned premiums
(83,428 )
Earned premiums, net of reinsurance
Allocated investment return transferred from the non-technical
account
9
Claims paid
16
Gross amount
(15,525 )
Net claims paid
(15,525 )
Change in the provision for claims
16
Gross amount
(78,414 )
Reinsurers’ share
Net change in provisions for claims
(76,855 )
Claims incurred, net of reinsurance
(92,380 )
Net operating expenses
6
(107,768 )
Balance on the technical account – general business
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Statement of profit or loss and other comprehensive income (cont.)
Non-technical account – General business
For the year ended 31 December 2025
Note
2025
$000
Balance on the technical account – general business
Investment income
9
Realised gains on investments
Unrealised gains on investments
Total investment return
Allocated investment return transferred to technical account
(1,108 )
Loss on foreign exchange
(286 )
Profit for the financial year
Other comprehensive income
Total comprehensive profit for the year
The accompanying notes from page 18 to 37 form an integral part of these financial statements.
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Balance sheet – Assets
As at 31 December 2025
Note
2025
$000
Financial investments
Investments
10
Provision for unearned premiums
Claims outstanding
Reinsurers’ share of technical provisions
16
Debtors arising out of direct insurance operations
11
Debtors arising out of reinsurance operations
12
Other debtors
13
Debtors
Cash at bank and in hand
19
Other assets
Deferred acquisition costs
14
Prepayments and accrued income
Total assets
Docusign Envelope ID: 11B1D072-1549-4C34-8E84-7A8E036098E7
Registered office: Polo Managing Agency, registered in England & Wales Registration no.
03935227
www.polo.works
15
Balance sheet (cont’d) – Liabilities
As at 31 December 2025
Note
2025
$000
Members’ balances
Total capital and reserves
Provision for unearned premiums
Claims outstanding
Technical provisions
16
Creditors arising out of reinsurance operations
17
Other creditors including taxation and social security
18
Creditors
Accruals and deferred income
Total liabilities
Total liabilities, capital and reserves
The Syndicate financial statements on pages 12 to 37 were approved by the board of Directors of Polo
Managing Agency Limited on 16 February 2026 and were signed on its behalf by:
G H J Nokes
Director
17 February 2026
Docusign Envelope ID: 11B1D072-1549-4C34-8E84-7A8E036098E7
Registered office: Polo Managing Agency, registered in England & Wales Registration no.
03935227
www.polo.works
16
Statement of changes in members’ balances
For the year ended 31 December 2025
2025
$000
Members’ balances brought forward at 1 January
Total comprehensive profit for the year
Members agent fees
(254 )
Members’ balances carried forward at 31 December
Docusign Envelope ID: 11B1D072-1549-4C34-8E84-7A8E036098E7
Registered office: Polo Managing Agency, registered in England & Wales Registration no.
03935227
www.polo.works
17
Statement of cash flows
For the year ended 31 December 2025
Note
2025
$000
Cash flows from operating activities
Profit for the financial year
Adjustments:
Increase in gross technical provisions
Increase in reinsurers’ share of gross technical provisions
(2,858 )
Increase in debtors
(113,242 )
Increase in creditors
Increase in other assets/liabilities
(18,082 )
Investment return
(1,108 )
Foreign exchange
Net cash flows from operating activities
Cash flows from investing activities
Purchase of equity and debt instruments
(39,266 )
Investment income received
Other
(942 )
Net cash flows from investing activities
(39,158 )
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Foreign exchange on cash and cash equivalents
(50 )
Cash and cash equivalents at the end of the year
19
Docusign Envelope ID: 11B1D072-1549-4C34-8E84-7A8E036098E7
Registered office: Polo Managing Agency, registered in England & Wales Registration no.
03935227
www.polo.works
18
Notes to the financial statements – (Forming part of the financial
statements)
1. Basis of preparation
Syndicate
2843 (‘The Syndicate’) comprises a member of the Society of Lloyd's that underwrites insurance
business in the London Market. The address of the Syndicate’s managing agent is 'Grange Park', Bishop's
Cleeve, Cheltenham, England, GL52 8YQ.
The financial statements have been prepared in accordance with 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 the Lloyd’s Syndicate Accounts
Instructions V3.1 as modified by the Frequently Asked Questions Version V1.1 issued by Lloyd’s (the
Syndicate Accounts Instructions).
The financial statements have been prepared on the historical cost basis, except for financial assets at fair
value through profit or loss.
The financial statements are presented in US Dollars. The functional currency of the Syndicate is US Dollars
which is the currency of the primary economic environment in which the Syndicate operates.
All amounts have been rounded to the nearest thousand, unless otherwise indicated.
Going concern
The Syndicate has financial resources to meet its financial needs and manages its portfolio of insurance risk.
The Directors have continued to review the business plans, liquidity and operational resilience of the Syndicate
and are satisfied that the Syndicate is well positioned to manage its business risks in the current economic
environment. The Syndicate 2026 year of account has opened and the Directors have concluded that the
Syndicate has sufficient resources to, and a reasonable expectation that it will, open a 2027 year of account.
The Syndicate has sufficient capital in its Funds at Lloyd’s (FAL). There is no intention to cease underwriting
or cease the operations of the Syndicate.
Accordingly, the Directors of the Managing Agent continue to adopt the going concern basis in preparing the
annual report and financial statements.
2.
Use of judgements and estimates
In preparing these financial statements, the Directors of the Managing Agent have made judgements,
estimates and assumptions that affect the application of the Syndicate’s accounting policies and the reported
amounts of assets, liabilities, income and expenses. The Syndicate makes estimates and assumptions
concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual
results. The following significant estimates have been made in applying the Syndicate’s accounting policies:
Premium estimates
Premium written includes estimated premium receivable, based on underwriters’ judgement and using their
knowledge of the market and individual classes of business. Underwriter judgement at this class level is based
on the maturity of markets, perceived competition and rating pressure, and geographical splits of risks,
alongside consultation with brokers and cedents. Initial estimates are based on class level booking factors,
and are then reviewed at policy level once further detail is available from underwriters, broker, cedents and
the market.
Writing and earning patterns applied to premium are estimates of the risk exposure of the contracts, and are
based on the method of acceptance, and the claims basis of the contract, along with assessment of the
seasonality of underlying perils covered within contracts.
Docusign Envelope ID: 11B1D072-1549-4C34-8E84-7A8E036098E7
Registered office: Polo Managing Agency, registered in England & Wales Registration no.
03935227
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Consideration is made on whether the estimates of premium are accurate based on the most up to date
information available at the reporting date. Premium estimates may change as a result of subsequent events
or information and may result in adjustments.
Insurance technical provisions
Estimates are made for notified outstanding claims and claims incurred but not yet reported (IBNR) at the
reporting date. These estimates may settle a significant time after the reporting date and may settle for values
other than they were initially provided for.
The ultimate cost of claims outstanding is estimated using standard actuarial techniques and benchmarking
against market wide Lloyd’s Market Association (“LMA”) data.
Unallocated Loss Adjustment Expenses
The Syndicate has a nil Unallocated Loss Adjustment Expense provision as all claims handling and related
indirect costs are borne by the Service Company under a contractual service fee arrangement. No additional
claims handling costs are expected to be incurred by the Syndicate in respect of outstanding claims.
3. Significant accounting policies
The following significant accounting policies have been applied consistently in dealing with items which are
considered material in relation to the Syndicate’s financial statements.
A. Premiums written
Gross premiums written reflect direct and reinsurance business written during the year, gross of commission
payable to intermediaries, and exclude any taxes or duties based on premiums. Premiums written include
estimates for ‘pipeline’ premiums representing amounts due to the Syndicate not yet notified.
Estimated premium income in respect of facility contracts, for example binding authorities, are deemed to be
written in a manner that reflects the expected profile of the underlying business which has been written.
Outwards reinsurance premiums are accounted for in the same accounting period as the premiums for the
related direct or inwards business being reinsured. The earned proportion of premiums is recognised as
income. Premiums are earned from the date of attachment of risk over the indemnity period based on the
pattern of the risks underwritten.
B. Unearned premiums
The provision for unearned premiums comprises the proportion of gross premiums written which is estimated
to be earned in the following or subsequent financial periods, computed separately for each insurance contract,
on a monthly basis, adjusted if necessary to reflect any variation in the incidence of risk during the period
covered by the contract.
C. Acquisition costs
Costs incurred in acquiring general insurance contracts are deferred. Acquisition costs include direct costs
such as brokerage and commission, and indirect costs such as administrative expenses connected with the
processing of proposals and the issuing of policies. The deferred acquisition cost asset represents the
proportion of acquisition costs which corresponds to the proportion of gross premiums written that is unearned
at the balance sheet date.
D. Reinsurance
The Syndicate assumes and cedes reinsurance in the normal course of business. Premiums and claims on
reinsurance assumed are recognised in the technical account on the same basis as direct business, taking
into account the product classification. Reinsurance premiums ceded and reinsurance recoveries on claims
incurred are included in the respective expense and income accounts. Premiums ceded and claims
reimbursed are presented on a gross basis in the technical account and balance sheet as appropriate.
Docusign Envelope ID: 11B1D072-1549-4C34-8E84-7A8E036098E7
Registered office: Polo Managing Agency, registered in England & Wales Registration no.
03935227
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Reinsurance outwards premiums are earned according to the nature of the cover. ‘Losses occurring during’
policies are earned evenly over the policy period with the exception of property, which reflect the seasonality
of the inwards business being protected. ‘Risks attaching’ policies are expensed on the same basis as the
inwards business being protected.
Reinstatement premiums on both inwards and outwards business are accreted to the technical account at the
point the loss is provided for.
E.
Claims provisions and related reinsurance recoveries
Claims incurred comprise indemnity claims and allocate loss expenses. The Syndicate does not discount its
liability for outstanding claims nor the reinsurer’s share of outstanding claims.
Outstanding claims include an allowance for the cost of claims incurred by the balance sheet date but not
reported until after the period end (IBNR).
Salvage and subrogation and other recoveries are deducted from the provision for outstanding claims. The
liability for outstanding claims is estimated using the input of assessments for individual cases reported to the
Syndicate and widely accepted actuarial techniques for the claims incurred but not reported (IBNR). The
techniques generally use initial expected loss ratios, based on market experience of the development of claims
over time, to form a view on the likely ultimate claims.
The reinsurers’ share of provisions for claims is based on calculated amounts of outstanding claims and
projections for IBNR, net of estimated irrecoverable amounts, having regard to the reinsurance programme in
place for the class of business, the claims experience for the period and the current security rating of the
reinsurance companies involved. A number of statistical techniques are used to assist in making these
estimates.
Reinsurance assets are assessed for impairment at each balance sheet date. A reinsurance asset is deemed
impaired if there is objective evidence, as a result of an event that occurred after its initial recognition, that the
Syndicate may not recover all amounts due, and that event has a reliably measurable impact on the amount
that the Syndicate will receive from the reinsurer. Impairment losses are recognised in profit or loss in the
period in which the impairment loss is recognised.
F.
Unexpired risks provision
Provision is made for unexpired risks arising from general insurance contracts where the expected value of
claims and expenses attributable to the unexpired periods of policies in force at the balance sheet date
exceeds the unearned premiums provision in relation to such policies (after the deduction of any deferred
acquisition costs). The provision for unexpired risks is calculated by reference to classes of business which
are managed together. No unexpired risk provision has been made at the Balance Sheet date.
G. Foreign currencies
Transactions in foreign currencies are translated to the functional currency using the average exchange rates
for the period. The Syndicate’s monetary assets and liabilities denominated in foreign currencies are translated
into the functional currency at the rates of exchange at the balance sheet date. Non-monetary assets and
liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional
currency at the exchange rate at the date that the fair value was determined. Non-monetary items denominated
in foreign currencies that are measured at historical cost are translated to the functional currency using the
exchange rate at the date of the transaction. For the purposes of foreign currency translation, unearned
premiums and deferred acquisition costs are treated as if they are monetary items.
Differences arising on translation of foreign currency amounts relating to the insurance operations of the
Syndicate are included in the non-technical account.
Docusign Envelope ID: 11B1D072-1549-4C34-8E84-7A8E036098E7
Registered office: Polo Managing Agency, registered in England & Wales Registration no.
03935227
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H.
Financial assets and liabilities
The full provisions of FRS 102 have been applied to the treatment of financial instruments. The accounting
classification of financial assets and liabilities determines their basis of measurement and how changes in
those values are presented in the profit or loss or other comprehensive income. These classifications are
made at initial recognition, and subsequent reclassification is only permitted in restricted circumstances.
i.
Classification
The accounting classification of financial assets and liabilities determines the way in which they are measured
and changes in those values are presented in the statement of profit or loss and other comprehensive income.
Financial assets and liabilities are classified on their initial recognition.
The initial classification of a financial instrument shall take into account contractual terms including those
relating to future variations. Once the classification of a financial instrument is determined at initial recognition,
re-assessment is only required subsequently when there has been a modification of contractual terms that is
relevant to an assessment of the classification.
Financial assets and financial liabilities at fair value through profit and loss comprise financial assets and
financial liabilities designated as such on initial recognition. Investments in shares and other variable yield
securities, units in unit trusts, and debt and other fixed income securities are designated as at fair value through
profit or loss on initial recognition, as they are managed on a fair value basis in accordance with the Syndicate’s
investment strategy.
The Syndicate does not hold any derivatives.
ii.
Recognition
Financial instruments are recognised when the Syndicate becomes a party to the contractual provisions of the
instrument. Financial assets are derecognised if the Syndicate’s contractual rights to the cash flows from the
financial assets expire or if the Syndicate transfers the financial asset to another party without retaining control
of substantially all risks and rewards of the asset. A financial liability is derecognised when its contractual
obligations are discharged, cancelled or expired.
Purchases and sales of financial assets are recognised and derecognised, as applicable, on the trade date,
i.e. the date that the Syndicate commits itself to purchase or sell the asset.
iii. Measurement
A financial asset or financial liability is measured initially at fair value, plus, for a financial asset or financial
liability not at fair value through profit or loss, transaction costs that are directly attributable to its acquisition or
issue.
Subsequently, financial assets at fair value through profit or loss are measured at fair value with fair value
changes recognised immediately in profit or loss. Net gains or net losses on financial assets measured at fair
value through profit or loss includes foreign exchange gains/losses arising on their translation to the functional
currency but excludes interest.
Impairment losses and foreign exchange gains or losses are reported in profit or loss. Other fair value changes
are recognised in other comprehensive income (“OCI”). Any gain or loss recognised in OCI will be recycled to
profit and loss on derecognition of the asset.
Loans and receivables and non-derivative financial liabilities are measured at amortised cost using the
effective interest method.
iv. Identification
and measurement of impairment
At each reporting date the Syndicate assesses whether there is objective evidence that financial assets not at
fair value through profit or loss are impaired. Financial assets are impaired when objective evidence
demonstrates that a loss event has occurred after the initial recognition of an asset, and that the loss event
has an impact on the future cash flows on the asset that can be estimated reliably.
Docusign Envelope ID: 11B1D072-1549-4C34-8E84-7A8E036098E7
Registered office: Polo Managing Agency, registered in England & Wales Registration no.
03935227
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22
Objective evidence that financial assets are impaired includes observable data that comes to the attention of
the Syndicate about any significant financial difficulty of the issuer, or significant changes in the technological,
market, economic or legal environment in which the issuer operates.
An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference
between the carrying amount, and the present value of the estimated future cash flows discounted at the
asset’s original effective interest rate. Individually significant financial assets are tested for impairment on an
individual basis. The remaining financial assets are assessed collectively in groups that share similar credit
risk characteristics.
v.
Off-setting
Debtors/creditors arising from reinsurance operations shown in the balance sheet include the totals of all
outstanding debit and credit transactions as processed by the Lloyd’s central facility. No account has been
taken of any offsets which may be applicable in calculating the net amounts due between the Syndicate and
each of its counterparty insureds, reinsurers or intermediaries as appropriate.
Financial assets and financial liabilities are offset, and the net amount presented in the balance sheet when,
and only when, the Syndicate has a legal right to set off the amounts and intends either to settle on a net basis
or to realise the asset and settle the liability simultaneously.
I.
Investment return
Investment return comprises investment income and interest expense.
Investment return is initially recorded in the non-technical account. The return is transferred in full to the
general business technical account to reflect the investment return on funds supporting underwriting business.
J.
Cash and cash equivalents
Cash and cash equivalents comprise cash balances, which are carried at amortised cost in the balance sheet.
Bank overdrafts that are repayable on demand and form an integral part of the Syndicate’s cash management
are included as a component of cash and cash equivalents for the purpose of the statement of cash flows.
K. Overseas deposits
Overseas deposits, which are lodged as a condition of underwriting business in certain countries, are included
within other investments.
L. Taxation
Under Schedule 19 of the Finance Act 1993 Managing Agents are not required to deduct basic rate income
tax from trading income. In addition, all UK basic rate income tax deducted from Syndicate investment income
is recoverable by Managing Agents and consequently the distribution made to members or their members’
agents is gross of tax. Capital appreciation falls within trading income and is also distributed gross of tax.
No provision has been made for any United States Federal Income Tax payable on underwriting results or
investment earnings. Any payments on account made by the Syndicate during the period 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.
M. Pension costs
No pension costs are directly borne by the Syndicate.
Polo Managing Agency Limited operates a defined contribution scheme. No explicit charge is made for pension
contributions relating to Managing Agent staff who act on behalf of the Syndicate within the Managing Agents
fee.
Docusign Envelope ID: 11B1D072-1549-4C34-8E84-7A8E036098E7
Registered office: Polo Managing Agency, registered in England & Wales Registration no.
03935227
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N.
Prepayments and accrued income
Prepayments are payments made in advance for services to be received in future periods. These are initially
recognised as assets in the balance sheet and are amortised over the period to which they relate. The expense
is recognised in the income statement as the benefits are received.
Accrued income represents income that has been earned but not yet received by the end of the accounting
period. This is recognised as an asset in the balance sheet and the corresponding investment income is
recorded in the income statement for the period in which it is earned.
O. Operating expenses
Operating expenses are taken into account on an accruals basis. The Managing Agent charges an agreed fee
for the administration of the Syndicate.
P.
Reinsurers’ commission and profit participation
Reinsurers’ commissions and profit participations, which include reinsurance profit commission and overriding
commission, are treated as a contribution to expenses.
Q. Debtors and creditors
Insurance debtors and creditors include amounts due to and from agents, brokers and insurance contract
holders. Reinsurance debtors and creditors include amounts due to and from reinsurers. These are classified
as debt instruments as they are non-derivative financial assets with fixed or determinable payments that are
not quoted on an active market. Insurance and reinsurance debtors are measured at amortised cost less any
provision for impairments. Insurance and reinsurance creditors are stated at amortised cost. The Syndicate
does not have any debtors directly with policyholders, all transactions occur via an intermediary. Reinsurance
creditors are primarily premiums payable for reinsurance contracts and are recognised as an expense when
due. Reinsurance debtors principally relate to claims recoveries where the underlying claim has been settled,
and the recovery is due. Where a legal right of offset exists the reinsurance creditors will be offset by any
amounts related to claim recoveries.
Other debtors principally consist of amounts due from members and sundry debtors and are carried at
amortised cost less any impairment losses.
Other creditors principally consist of amounts due to other related entities and other sundry payables. These
are stated at amortised cost determined using the effective interest rate method.
R.
Classification of insurance and reinsurance contracts
Insurance and reinsurance contracts are classified as insurance contracts where they transfer significant
insurance risk. If a contract does not transfer significant insurance risk it is classified as a financial instrument.
All of the Syndicates written contracts and purchased reinsurance contracts transfer significant insurance risk
and therefore are recognised as insurance contracts.
4.
Risk and capital management
Introduction and overview
This note presents information about the nature and extent of insurance and financial risks to which the
Syndicate is exposed, the Managing Agent’s objectives, policies and processes for measuring and managing
insurance and financial risks, and for managing the Syndicate’s capital.
Risk management framework
The Board of Directors of the Managing Agent has overall responsibility for the establishment and oversight of
the Syndicate’s risk management framework. The Board has established a Risk Committee to oversee the
operation of the Syndicate’s risk management framework and to review and monitor the management of the
risks to which the Syndicate is exposed. The Risk Committee has delegated oversight of the management of
aspects of insurance risks to the Underwriting and Reserving Committee, which is responsible for developing
Docusign Envelope ID: 11B1D072-1549-4C34-8E84-7A8E036098E7
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03935227
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24
and monitoring insurance risk management policies, and the management of aspects of financial risks to the
Investment Committee, which is responsible for developing and monitoring financial risk management policies.
The Risk Committee reports regularly to the Board of Directors on its activities. The Underwriting and
Reserving Committee report regularly to the Risk Committee on their activities.
The risk management policies are established to identify and analyse the risks faced by the Syndicate, to set
appropriate risk limits and controls, and to monitor risks and adherence to limits.
A. Insurance risk
Insurance risk arises from the possibility of an adverse financial result due to actual claims experience being
different from that expected when an insurance product was designed and priced. The actual performance of
insurance contracts is subject to the inherent uncertainty in the occurrence, timing and amount of the final
insurance liabilities.
The insurance risk the Syndicate is exposed can be separated into underwriting risk and reserve risk.
i. Underwriting risk
Underwriting risk is the risk that the insurance premium will not be sufficient to cover future insurance losses
and associated expenses. This includes the risks that the premium is set too low, provides inappropriate levels
of cover, or that the actual frequency or severity of claims events will be significantly higher than was expected
during the underwriting process.
ii. Reserve Risk
Reserving risk is the risk of exposure to the financial consequences of material uncertainty in ultimate claim
payments and expenses.
This risk is mitigated by the Syndicate's Actuarial function using external expertise and recognised actuarial
reserving approaches, coupled with close liaison with claims personnel to identify potential downside risks
before they become apparent in the data. These results are then subject to formal annual external peer review,
the result of which is a Statement of Actuarial Opinion over the reserves held being at least as high as a mean
best estimate. The statement is provided annually to Lloyd’s.
The governance process supporting Syndicate reserving is applied through the SMC, reporting to the Audit
Committee, which is responsible for approving Syndicate reserves quarterly, as delegated by the PMA Board.
The level of booked reserves is subject to an external audit annually.
Claim estimates are sensitive to the actual rate of claims development. If the Syndicate's rate of claim
development is faster than the market, standard methods would overestimate future claims. Conversely, if the
Syndicate's rate of claim development is slower than the market, standard methods would underestimate
future claims. Consideration is given to Lloyd’s risk code data from the Lloyd’s Market Association
(“LMA”) where PMA uses risk code triangles to produce development patterns.
iii. Management of insurance risk
A key component of the management of underwriting risk for the Syndicate is a disciplined underwriting
strategy that is focused on writing quality business and not writing for volume. Product pricing is designed to
incorporate appropriate premiums for each type of assumed risk. The underwriting strategy includes
underwriting limits on the Syndicate’s total exposure to specific risks together with limits on geographical and
industry exposures. The aim is to ensure a well-diversified book is maintained with no over exposure in any
one geographical region or industry.
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Contracts can contain a number of features which help to manage the underwriting risk such as the use of
deductibles, or capping the maximum permitted loss, or number of claims (subject to local regulatory and
legislative requirements).
The Syndicate makes use of reinsurance to mitigate the risk of incurring significant losses linked to one event,
including excess of loss, stop loss and catastrophe reinsurance. Where an individual exposure is deemed
surplus to the Syndicate’s appetite additional facultative reinsurance is also purchased.
The SMC, Underwriting and Reserving Committee oversees the management of reserving risk. The use of
proprietary and standardised modelling techniques, internal and external benchmarking, and the review of
claims development are all instrumental in mitigating reserving risk.
The Syndicate Managing Agent’s actuaries perform a reserving analysis on a quarterly basis liaising closely
with underwriters, claims and reinsurance technicians. The aim of this exercise is to produce a probability -
weighted average of the expected future cash outflows arising from the settlement of incurred claims. These
projections include an analysis of claims development compared to the previous ‘best estimate’ projections.
The output of the reserving analysis is reviewed by external consulting actuaries. The Underwriting and
Reserving Committee performs a comprehensive review of the projections, both gross and net of reinsurance.
Following this review the Underwriting and Reserving Committee makes recommendations to the Risk
Committee and the Managing Agent’s Board of Directors of the claims provisions to be established.
Insurance risk includes the risks that a policy will be written for too low a premium or provide inappropriate
cover (underwriting risk), that the frequency or severity of insured events will be higher than expected (claims
risk), or that estimates of claims subsequently prove to be insufficient (reserving risk). The Syndicate manages
insurance risk through the approved business plan, which sets out targets for volumes, pricing, line sizes and
retention by class of business. The Syndicate monitors performance against the business plan through the
year and reviews pricing on an ongoing basis depending on market conditions. Reserve adequacy is monitored
through quarterly review by the PMA Actuarial team and SMC, which meets quarterly.
The claims development table in note 15 shows the actual claims incurred.
iv. Sensitivity to insurance risk
The liabilities established could be significantly lower or higher than the ultimate cost of settling the claims
arising. This level of uncertainty varies the risk being underwritten and can arise from developments in case
reserving for large losses and catastrophes, or from changes in estimates of claims IBNR.
The following table presents the profit and loss impact of the sensitivity of the value of insurance liabilities
disclosed in the accounts to potential movements in the assumptions applied within the technical provisions.
Given the nature of the business underwritten by the Syndicate, the approach to calculating the technical
provisions for each class can vary and as a result the sensitivity performed is to apply a beneficial and adverse
risk margin to the total insurance liability. The amount disclosed in the table represents the profit or loss impact
of an increase (+5%) or decrease (-5%) in the insurance liability as a result of applying the sensitivity. The
amount disclosed for the impact on claims outstanding – net of reinsurance represents the impact on both the
profit and loss for the year and member balance.
General insurance business sensitivities as at 31 December 2025
Sensitivity
+5.0%
$000
-5.0%
$000
Claims outstanding – gross of reinsurance
(3,926 )
Claims outstanding – net of reinsurance
(3,848 )
B. Financial risk
The focus of financial risk management for the Syndicate is ensuring that the proceeds from its financial assets
are sufficient to fund the obligations arising from its insurance contracts. The goal of the investment
management process is to optimise the risk adjusted investment income and risk adjusted total return by
Docusign Envelope ID: 11B1D072-1549-4C34-8E84-7A8E036098E7
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investing in a diversified portfolio of securities, whilst ensuring that the assets and liabilities are managed on
a cash flow and duration matching basis.
a. Credit risk
Credit risk is the risk of financial loss to the Syndicate if a counterparty fails to discharge a contractual
obligation.
The Syndicate is exposed to credit risk in respect of the following:
•
Debt securities and derivative financial instruments;
•
Amounts due from intermediaries; and
•
Cash and cash equivalents.
i.
Management of credit risk
The Syndicate’s credit risk in respect of debt securities is managed by placing limits on its exposure to a single
counterparty, by reference to the credit rating of the counterparty. Financial assets are graded according to
current credit ratings issued by rating agencies such as Standard and Poor’s. The Syndicate has a policy of
investing mainly in government issued and government backed debts. The Syndicate does not currently invest
new monies in speculative grade assets (i.e., those rated below BBB).
The Syndicate limits the amount of cash and cash equivalents that can be deposited with a single counterparty
and maintains an authorised list of acceptable cash counterparties.
The Syndicate’s exposure to intermediaries and reinsurance counterparties is monitored by the individual
business units as part of their credit control processes.
All intermediaries must meet minimum requirements established by the Syndicate. The credit ratings and
payment histories of intermediaries are monitored on a regular basis.
The Syndicate assesses the creditworthiness of all reinsurers by reviewing public rating information and by
internal investigations. The impact of reinsurer default is regularly assessed and managed accordingly.
ii.
Exposure to credit risk
The carrying amount of financial assets and reinsurance assets represents the maximum credit risk exposure.
The following table analyses the credit rating by investment grade of financial investments, debt securities and
reinsurers’ share of claims outstanding, amount due from intermediaries, amounts due from reinsurers in
respect of settled claims, cash and cash equivalents, and other debtors and accrued interest.
Year 2025
AAA
AA
A
BBB
Other
Not
rated
Total
$000
$000
$000
$000
$000
$000
$000
Debt securities and other fixed income
securities
Other investments
Reinsurers’ share of claims outstanding
Debtors arising out of direct insurance
operations
Debtors arising out of reinsurance operations
Cash at bank and in hand
Other debtors and accrued interest
Total
iii.
Financial
assets that are past due or impaired
The Syndicate has no financial assets that are past due nor impaired at the reporting date.
Docusign Envelope ID: 11B1D072-1549-4C34-8E84-7A8E036098E7
Registered office: Polo Managing Agency, registered in England & Wales Registration no.
03935227
www.polo.works
27
Year 2025
Neither past
due nor
impaired
assets
Past due
but not
impaired
assets
Gross
value of
impaired
assets
Impairment
allowance
Total
$000
$000
$000
$000
$000
Debt securities and other fixed income securities
-
Other investments
-
Reinsurers’ share of claims outstanding
-
Debtors arising out of direct insurance
operations
-
Debtors arising out of reinsurance operations
-
Cash at bank and in hand
-
Other debtors and accrued interest
-
Total
-
b.
Liquidity risk
Liquidity risk is the risk that the Syndicate will encounter difficulty in meeting obligations arising from its
insurance contracts and financial liabilities. The Syndicate is exposed to calls on its available cash resources
mainly from claims arising from insurance contracts.
The nature of the Syndicate’s exposures to liquidity risk and its objectives, policies and processes for managing
liquidity risk have not changed significantly from the prior year.
i.
Management of liquidity risk
The Syndicate’s approach to managing liquidity risk is to ensure, as far as possible, that it will always have
sufficient liquidity to meet its liabilities when they fall due, under both normal and stressed conditions.
The Syndicate’s approach to managing its liquidity risk is as follows:
•
Forecasts are prepared and revised on a regular basis to predict cash outflows from insurance
contracts over the short, medium and long term;
•
Assets purchased by the Syndicate are required to satisfy specified investment management
guidelines;
•
The Syndicate maintains cash and liquid assets to meet daily calls on its insurance contracts;
•
The Syndicate holds uncommitted borrowing facilities from a highly rated bank to enable cash to be
raised in a relatively short time span in addition to a loan from a related party; and
•
The Syndicate regularly updates its contingency funding plans to ensure that adequate liquid financial
resources are in place to meet obligations as they fall due in the event of reasonably foreseeable
abnormal circumstances.
Docusign Envelope ID: 11B1D072-1549-4C34-8E84-7A8E036098E7
Registered office: Polo Managing Agency, registered in England & Wales Registration no.
03935227
www.polo.works
28
Maturity analysis of syndicate liabilities
The maturity analysis presented in the table below shows the remaining contractual maturities for the
Syndicate’s insurance contracts and financial instruments. For insurance contracts, the contractual maturity is
the estimated date when the gross undiscounted contractually required cash flows will occur. For financial
liabilities, it is the earliest date on which the gross undiscounted cash flows (including contractual interest
payments) could be paid assuming conditions are consistent with those at the reporting date.
Undiscounted net cash flows
Year 2025
No
maturity
stated
0-1 yrs
1-3 yrs
3-5 yrs
>5 yrs
Total
$000
$000
$000
$000
$000
$000
Claims outstanding
Creditors
Total
C. Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument or insurance contract will
fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk,
currency risk and other price risk.
The objective of market risk management is to manage and control market risk exposures within acceptable
parameters, while optimising the return on risk. The nature of the Syndicate exposures to market risk and its
objectives, policies and processes for managing market risk have not changed significantly from the prior year.
i.
Management of market risks
For each of the major components of market risk the Syndicate has policies and procedures in place which
detail how each risk should be managed and monitored. The management of each of these major components
of major risk and the exposure of the Syndicate at the reporting date to each major risk are addressed below.
ii.
Interest rate risk
Interest rate risk is the risk that the fair value and/or future cash flows of a financial instrument will fluctuate
because of changes in interest rates.
The Syndicate is exposed to interest rate risk through its investment portfolio, borrowings and cash and cash
equivalents.
The risk of changes in the fair value of these assets is managed by primarily investing in short-duration financial
investments and cash and cash equivalents. The SMC monitors the duration of these assets on a regular
basis, targeting an investment portfolio duration that, in the event of changes in interest rates, always maintains
the internal liquidity requirements.
Docusign Envelope ID: 11B1D072-1549-4C34-8E84-7A8E036098E7
Registered office: Polo Managing Agency, registered in England & Wales Registration no.
03935227
www.polo.works
29
iii. Currency risk
The table below summarises the carrying value of the Syndicate’s assets and liabilities, at the reporting date:
2025
GBP
USD
EUR
CAD
AUD
JPY
OTH
Total
$000
$000
$000
$000
$000
$000
$000
$000
Investments
Reinsurers' share of technical
provisions
Debtors
(193 )
(325 )
Other assets
Prepayments and accrued
income
Total assets
Technical provisions
(2,498 )
(149,399 )
(6,309 )
(3,412 )
(400 )
(1,447 )
(163,465 )
Creditors
(36,731 )
(3,578 )
(40,238 )
Accruals and deferred income
(1,533 )
(1,533 )
Total liabilities
(40,762 )
(152,977 )
(6,238 )
(3,412 )
(400 )
(1,447 )
(205,236 )
Total Capital and reserves
(17,614 )
(13,438 )
(3,964 )
(1,192 )
(2,963 )
(53 )
(38,908 )
iv.
Sensitivity analysis to market risks
The analysis below is performed for reasonably possible movements in market indices on financial instruments
with all other variables held constant, showing the impact on the result before tax due to changes in fair value
of financial assets and liabilities (whose fair values are recorded in the profit and loss account) and members’
balances.
2025
2025
Impact on
results
Impact on
members'
balances
$000
$000
Interest rate risk
+ 50 basis points shift in yield curves
(201 )
(201 )
- 50 basis points shift in yield curves
Currency risk
10 percent increase in exchange rates
1,927
1,904
10 percent decrease in exchange rates
(1,927)
(1,904)
A 10% increase (or decrease) in exchange rates and a 50 basis point increase (or decrease) in yield curves
have been selected on the basis that these are considered to be reasonably possible changes in these risk
variables over the following year.
The sensitivity analysis demonstrates the effect of a change in a key variable while other assumptions remain
unchanged. However, the occurrence of a change in a single market factor may lead to changes in other
market factors as a result of correlations.
The sensitivity analyses do not take into consideration that the Syndicate’s financial investments are actively
managed. Additionally, the sensitivity analysis is based on the Syndicate’s financial position at the reporting
Docusign Envelope ID: 11B1D072-1549-4C34-8E84-7A8E036098E7
Registered office: Polo Managing Agency, registered in England & Wales Registration no.
03935227
www.polo.works
30
date and may vary at the time that any actual market movement occurs. As investment markets move past
pre-determined trigger points, action would be taken which would alter the Syndicate’s position.
D. Capital management
i.
Capital framework at Lloyd’s
The Society of Lloyd’s (Lloyd’s) is a regulated undertaking and subject to the supervision of the PRA under
the Financial Services and Markets Act 2000 and in accordance with Solvency UK requirements.
Within this supervisory framework, Lloyd’s applies capital requirements at member level and centrally to
ensure that Lloyd’s would comply with the Solvency UK requirements, and beyond that to meet its own financial
strength, licence and ratings objectives.
Although, as described below, Lloyd’s capital setting processes use a capital requirement set at syndicate
level as a starting point, the requirement to meet Solvency UK and Lloyd’s capital requirements apply at overall
and member level only respectively, not at syndicate level. Accordingly, the capital requirement in respect of
Syndicate 2843 is not disclosed in these financial statements.
ii.
Lloyd’s capital setting process
In order to meet Lloyd’s requirements, each Syndicate is required to calculate its Solvency Capital
Requirement (“SCR”) for the prospective underwriting year. This amount must be sufficient to cover a 1 in 200-
year loss, reflecting uncertainty in the ultimate run off of underwriting liabilities (SCR ‘to ultimate’). The
Syndicate must also calculate its SCR at the same confidence level but reflecting uncertainty over a one year
time horizon (one year SCR) for Lloyd’s to use in meeting Solvency UK requirements. The SCRs of each
syndicate are subject to review by Lloyd’s and approval by the Lloyd’s Capital and Planning Group.
A syndicate may be comprised of one or more underwriting members of Lloyd’s. Each member is liable for its
own share of underwriting liabilities on the Syndicates on which it is participating but not other members’
shares. Accordingly, the capital requirements that Lloyd’s sets for each member operates on a similar basis.
Each member’s SCR shall thus be determined by the 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 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 Solvency UK requirement, is to meet Lloyd’s financial strength, licence and ratings
objectives. The capital uplift applied for 2025 was 35% of the member’s SCR ‘to ultimate’.
iii.
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 (FAL), assets held and managed within a syndicate (FIS), or as the member’s share of the members’
balances on each syndicate on which it participates.
Docusign Envelope ID: 11B1D072-1549-4C34-8E84-7A8E036098E7
Registered office: Polo Managing Agency, registered in England & Wales Registration no.
03935227
www.polo.works
31
5.
Analysis for underwriting result
An analysis of the underwriting result before investment return is presented in the table below:
2025
Gross
premiums
written
Gross
premiums
earned
Gross
claims
incurred
Gross
operating
expenses
Reinsurance
balance
Underwriting
result
$000
$000
$000
$000
$000
$000
Direct insurance
Motor (other classes)
Marine, aviation and
transport
(1,409 )
(1,737 )
(161 )
(801 )
Fire and other damage
to property
(1,671 )
(1,924 )
(205 )
(635 )
Third party liability
(103 )
(145 )
(2 )
(28 )
Credit and suretyship
(88 )
(229 )
(49 )
Total direct insurance
(3,271 )
(4,035 )
(368 )
(1,513 )
Reinsurance
acceptances
(90,668 )
(103,733 )
(56,764 )
Total
(93,939 )
(107,768 )
(57,132 )
The below is an additional disclosure for Lloyd’s reporting purposes and is included to facilitate the
classification of the above segments into the Lloyd’s aggregate classes of business:
2025
Gross
premiums
written
Gross
premiums
earned
Gross
claims
incurred
Gross
operating
expenses
Reinsurance
balance
Underwriting
result
$000
$000
$000
$000
$000
$000
Additional analysis
Fire and other damage
to property of which:
Energy
(807 )
(543 )
(83 )
The gross premiums written for direct insurance by underwriting location of risk is presented in the table below:
2025
$000
United Kingdom
Total gross premiums written
6. Net operating expenses
2025
$000
Acquisition costs
Change in deferred acquisition costs
(19,585 )
Administrative expenses
Members’ standard personal expenses
Net operating expenses
Docusign Envelope ID: 11B1D072-1549-4C34-8E84-7A8E036098E7
Registered office: Polo Managing Agency, registered in England & Wales Registration no.
03935227
www.polo.works
32
Total commissions for direct insurance business for the year amounted to:
2025
$000
Total commission for direct insurance business
Administrative expenses include:
2025
$000
Auditors’ remuneration:
Fees payable to the Syndicate’s auditor for the audit of these financial statements
Fees payable to the Syndicate’s auditor and its associates in respect of other services pursuant to
legislation
Total
372
7.
Key management personnel compensation
Polo Managing Agency Limited did not allocate any directors remuneration to the Syndicate and consequently
no meaningful disclosure can be made.
8.
Staff numbers and costs
The Syndicate and Managing Agent have no employees. Staff costs are not charged directly to the Syndicate
and consequently no meaningful disclosure can be made.
9. Investment return
2025
$000
Interest and similar income
From financial instruments designated at fair value through profit or loss
Interest and similar income
Other income from investments
From financial instruments designated at fair value through profit or loss
Gains on the realisation of investments
Unrealised gains on investments
Total investment return
Transferred to the technical account from the non-technical account
An investment return of $1,108k was wholly allocated to the technical account.
Docusign Envelope ID: 11B1D072-1549-4C34-8E84-7A8E036098E7
Registered office: Polo Managing Agency, registered in England & Wales Registration no.
03935227
www.polo.works
33
10. Financial investments
Carrying value
2025
$000
Cost
2025
$000
Debt securities and other fixed income securities
Other investments
Total financial investments
The table below presents an analysis of financial investments by their measurement classification.
2025
$000
Financial assets measured at fair value through profit or loss
Total financial investments
The Syndicate classifies its financial instruments held at fair value in its balance sheet using a fair value
hierarchy based on the inputs used in the valuation techniques as follows:
•
Level 1
– financial assets that are measured by reference to published quotes in an active market. A
financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly
available from an exchange, dealer, broker, industry group, pricing service or regulatory agency and
those prices represent actual and regularly occurring market transactions on an arm’s length basis.
•
Level 2
– financial assets measured using a valuation technique based on assumptions that are
supported by prices from observable current market transactions. For example, assets for which
pricing is obtained via pricing services but where prices have not been determined in an active market,
financial assets with fair values based on broker quotes, investments in private equity funds with fair
values obtained via fund managers and assets that are valued using the Syndicate’s own models
whereby the significant inputs into the assumptions are market observable.
•
Level 3
– financial assets measured using a valuation technique (model) based on assumptions that
are neither supported by prices from observable current market transactions in the same instrument
nor are they based on available market data. Therefore, unobservable inputs reflect the Syndicate's
own assumptions about the assumptions that market participants would use in pricing the asset or
liability (including assumptions about risk). These inputs are developed based on the best information
available, which might include the Syndicate’s own data.
The table below analyses financial instruments held at fair value in the Syndicate’s balance sheet at the
reporting date by its level in the fair value hierarchy.
As at 31 December 2025
Level 1
$000
Level 2
$000
Level 3
$000
Assets held at
amortised cost
$000
Total
$000
Debt securities and other fixed income securities
Other investments
Total financial investments
Debt securities are generally valued using prices provided by external pricing vendors. Pricing vendors will
often determine prices by consolidating prices of recent trades for identical or similar securities obtained from
a panel of market makers into a composite price. The pricing service may make adjustments for the elapsed
time from a trade date to the valuation date to take into account available market information. Lacking recently
reported trades, pricing vendors will use modelling techniques to determine a security price.
Docusign Envelope ID: 11B1D072-1549-4C34-8E84-7A8E036098E7
Registered office: Polo Managing Agency, registered in England & Wales Registration no.
03935227
www.polo.works
34
11.
Debtors arising out of direct insurance operations
2025
$000
Due within one year
Total
12.
Debtors arising out of reinsurance operations
2025
$000
Due within one year
Total
13.
Other debtors
2025
$000
Other
Total
Other debtors include a claims float and input VAT.
14.
Deferred acquisition costs
The table below shows changes in deferred acquisition costs assets from the beginning of the period to the
end of the period.
2025
Gross
$000
Net
$000
Balance at 1 January
Incurred deferred acquisition costs
Amortised deferred acquisition costs
(51,646 )
(51,646 )
Foreign exchange movements
Balance at 31 December
15.
Claims development
The following tables illustrate the development of the estimates of earned ultimate cumulative claims incurred,
including claims notified and IBNR, for each successive underwriting year, illustrating how amounts estimated
have changed from the first estimates made.
As these tables are on an underwriting year basis, there is an apparent large increase from amounts reported
for the end of the underwriting year to one year later as a large proportion of premiums are earned in the year
of account’s second year of development.
Balances have been translated at exchange rates prevailing at 31 December 2025 in all cases.
Docusign Envelope ID: 11B1D072-1549-4C34-8E84-7A8E036098E7
Registered office: Polo Managing Agency, registered in England & Wales Registration no.
03935227
www.polo.works
35
Gross:
Net:
Pure underwriting year
2025
$000
Estimate of net claims
at end of underwriting year
Less net claims paid
Net claims reserve
16.
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
Gross
provisions
$000
Reinsurance
assets
$000
Net
$000
Claims outstanding
Balance at 1 January
Claims paid during the year
(15,525 )
(15,525 )
Expected cost of current year claims
(1,559 )
Effect of movements in exchange rate
Balance at 31 December
(1,559 )
2025
Gross
provisions
$000
Reinsurance
assets
$000
Net
$000
Unearned premiums
Balance at 1 January
Premiums written during the year
(59,990 )
Premiums earned during the year
(297,179 )
(238,488 )
Effect of movements in exchange rate
Balance at 31 December
(1,299 )
Pure underwriting year
2025
$000
Estimate of gross claims
at end of underwriting year
Less gross claims paid
Gross claims reserve
Docusign Envelope ID: 11B1D072-1549-4C34-8E84-7A8E036098E7
Registered office: Polo Managing Agency, registered in England & Wales Registration no.
03935227
www.polo.works
36
17.
Creditors arising out of reinsurance operations
2025
$000
Due within a one year
Total
18.
Other creditors
2025
$000
Other related party balances (non-syndicates)
Total
19.
Cash and cash equivalents
31 December 2025
$000
Cash at bank and in hand
Total cash and cash equivalents
Only deposits with credit institutions with maturities of three months or less, that are used by the Syndicate in
the management of its short-term commitments, are included in cash and cash equivalents.
20.
Analysis of net debt
1 January
2025
$000
Cash flows
$000
Acquired
$000
Fair value and
exchange
movements
$000
31 December
2025
$000
Cash at bank and in hand
(50 )
Total
(50 )
21.
Related parties
Syndicate
Syndicate 2843 has a related party relationship with OAK Servco Ltd, who provides administrative, technical,
and management services to the Syndicate under a service agreement. Service Company fees are payable
from the Syndicate to the Service Company. Service Company fees for the year were $42.6m.
Managing Agent
Polo Managing Agency Limited’s immediate parent undertaking is Marco Capital Holdings (UK) Limited, a
company incorporated in England and Wales. Registered address is 4th Floor, 24 Monument Street, London
EC3R 8AJ. Managing agency fees of $4.3m were paid by the Syndicate to PMA.
The Managing Agent’s ultimate parent undertaking is Marco Capital Holdings Limited, a company incorporated
in Malta. Registered address is 171 Old Bakery Street, Valletta, VLT1455, Malta.
The Managing Agent’s ultimate controlling party is Brookfield Oaktree Holdings, LLC (formerly known as
Oaktree Capital Group, LLC).
Docusign Envelope ID: 11B1D072-1549-4C34-8E84-7A8E036098E7
Registered office: Polo Managing Agency, registered in England & Wales Registration no.
03935227
www.polo.works
37
22.
Off balance sheet items
The Syndicate has not been party to an arrangement, which is not reflected in its balance sheet, where material
risks and benefits arise for the Syndicate.
23.
Post balance sheet events
There have been no material subsequent events from the balance sheet date until the date of approval of the
financial statements.
24.
Foreign exchange rates
The following currency exchange rates have been used for principal foreign currency transactions:
31 December 2025
Start of
period rate
End of
period rate
Average rate
US Dollar
Euro
Sterling
Canadian Dollar
Australian Dollar
Japanese Yen
Swiss Francs
25.
Funds at Lloyd’s
Every member is required to hold capital at Lloyd’s which is held in trust and known as Funds at Lloyd’s
(“FAL”). These funds are intended primarily to cover circumstances where Syndicate assets prove insufficient
to meet participating members’ underwriting liabilities. The level of FAL that Lloyd’s requires a member to
maintain is determined by Lloyd’s based on Prudential Regulation 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.
Docusign Envelope ID: 11B1D072-1549-4C34-8E84-7A8E036098E7