Syndicate Accounts

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Classification: Unclassified

Premia Syndicate 1884

Syndicate Annual Report and Accounts for the year ended31 December 2025

Contents

Directors and Administration....................................................................................................4

Run-off manager’s report.........................................................................................................5

Managing Agent’s report..........................................................................................................6

Statement of Managing Agent’s responsibilities......................................................................9

Independent auditor’s report to the members of Syndicate 1884..........................................10

Statement of profit or loss and other comprehensive income:...............................................14

Balance sheet – Assets.........................................................................................................16

Balance sheet (cont’d) – Liabilities........................................................................................17

Statement of changes in members’ balances........................................................................18

Statement of cash flows.........................................................................................................19

Notes to the financial statements – (forming part of the financial statements).....................20

Directors and Administration

Managing Agent

Premia Managing Agency Limited

Directors

C D Forbes (Chairman)*

D J Atkins

T J Carroll*

J Perkins*

S P Curtis

C M Grint

S J Helson*

P Koslover

C L Tanner

* Independent non-executive directors

Company Secretary

M Daoud O’Connell

Managing Agent’s Registered Office

2 Minster Court

Mincing Lane

London

EC3R 7BB

Managing Agent’s Registered Number

09147885

Syndicate

Premia Syndicate 1884

Run-off Manager

D J Atkins

Bankers

Barclays PLC

Citibank NA

RBC Dexia

Independent Auditor

Deloitte LLP

2 New Street Square

London

EC4A 3BZ

Run-off manager’s report

Overview

Syndicate 1884 (“the Syndicate”) underwrites Reinsurance to Close (“RITC”) and legacy reinsurance in the Lloyd’s market, supported by fully aligned capital ultimately owned by Premia Holdings Limited (“Premia”), a Bermuda based legacy reinsurance group. The Syndicate’s 2018 Year of Account (“YOA”) was closed via RITC into the 2021 YOA, along with the 2018 YOA of Syndicate 1955 and the 2018 YOA of Syndicate 1861. The Syndicate has completed two Loss Portfolio Transfers (“LPTs”) with Syndicate 33. The LPTs cover various classes of business written by Syndicate 33 for the 2019 and prior YOAs.

Business review

The Syndicate’s mix of business is composed of marine, energy, property, D&O, financial institutions, professional indemnity, general liability, aviation and space, political risk, cyber, consumer products and contingency business.

The Syndicate’s exposure to COVID pandemic related losses is mature with limited scope for new claims. There is no known exposure to Ukraine losses and very little exposure to Russian losses. There is no known exposure to losses arising from the Israel Gaza conflict. In 2022, the Syndicate put in place a process to monitor the impact of the heightened inflationary environment on loss reserves. At the end of 2025, no material impact has been identified although an allowance continues to be made within the IBNR for potential future impact.

The Syndicate continues to have exposure to a small number of unexpired longer-term risks, typically where the duration of the insurance contract is linked to a long-term underlying construction project or financing arrangement, or to warranty related business. Consequently, there is a continuing requirement to monitor net exposures relative to the Syndicate’s risk appetite. However, the Syndicate’s primary risk arises from reserve risk, which is risk typical of the classes of business reinsured.

The primary activities of management during 2025 were:

•Ensuring continuity of claims and post-bind underwriting service levels to policyholders is maintained throughout the lifetime of each policy in line with reasonable policyholder expectations, Lloyd’s Principles, and other regulatory requirements.

•Ensuring run-off management actions (such as settlement of claims, reinsurance purchase, post-bind underwriting activity) enhance the financial and risk position of the syndicate.

During the year, the Syndicate made cash calls on the 2023 YOA totalling $20m, to aid liquidity. A further cash call on the 2023 YOA of $40m was made in January 2026. At 31 December 2025, the 2023 YOA, which was the only open year of account of the Syndicate, closed into the 2026 YOA.

Outlook

As an integral part of the Premia group, the Syndicate continues to seek appropriate opportunities to add new business to the portfolio of risks under management through RITC or legacy reinsurance transactions during 2026.

Approved by the Board of directors and signed on its behalf by:

D J Atkins

Run-off Manager, Premia Syndicate 1884

Managing Agent’s report

The directors of Premia Managing Agency Limited (“PMAL”) present their report in respect of the Syndicate 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 (“the 2008 Regulations”).

Results: The result for the year ended 31 December 2025 is a loss of £55.2m (2024: loss of £20.2m).

Principal activity: The principal activity of the Syndicate is the management of legacy direct insurance and reinsurance business underwritten in the Lloyd’s market, in accordance with the risk appetite agreed by the Board of PMAL. A review of the year’s activity is included in the Run-off Manager’s report.

Key performance indicators: The key performance indicators during the year were as follows:

2025)

2024)

Calendar year result

£000)

Underwriting result*

(48,627)

(15,501)

Administrative expenses**

(12,448)

(13,421)

Investment return

6,201

8,967

*Aggregate of earned premiums net of reinsurance, total technical charges before net operating expenses and acquisition costs

**Consisting of administrative expenses and members personal expenses

The underwriting loss is primarily driven by the strengthening of reserves, mainly in the casualty classes, and an increase in reinsurance bad debt provisions. The prior year underwriting loss was primarily driven by strengthening of reserves, partially offset by the recognition of additional written premium. Investment return reflects the respective market conditions in each year, and the reducing size of the investment portfolio.

Principal risks and uncertainties

External risks: Following the execution of the RITCs of the 2018 YOA of syndicates 1861, 1884 and 1955, and the LPTs of syndicate 33, the Syndicate’s business now consists of a diversified portfolio of marine, energy, property, D&O, financial institutions, professional indemnity and general liability policies, with smaller exposures to aviation and space, political risk, consumer products, contingency, and cyber business. Since most premiums are earned, the Syndicate is exposed to worse than anticipated trends in external factors that impact case reserves and IBNR projections. These include trends in global trade, energy and commodity prices, political, legal and regulatory developments, such as changes in sanctions rules, as well as the heightened inflationary environment including social inflation.

The Syndicate is also directly and indirectly exposed to a range of macroeconomic factors including exchange rates, interest rates and inflation, and to the levels of activity and capital deployed within the insurance industry, which may affect operating costs and the pricing and availability of reinsurance. The Syndicate is subject to regulatory requirements in the UK, EU, US, and Canada which are subject to change and create compliance requirements which may have an impact on operating costs and levels of capital required to be held by members.

To ensure continued market access to European (re)insurance business following the UK’s exit from the European Union, Lloyd’s established a Belgian subsidiary - Lloyd’s Insurance Company S.A.. On 31 December 2020 all legacy EEA business was transferred to Lloyd’s Insurance Company S.A. via a Part VII transfer and subsequently reinsured by the Syndicate. The Syndicate has continued to pay all valid claims on transferred policies via Lloyd’s Insurance Company S.A..

Risk management framework: The risk management framework is designed to provide a consistent, effective and documented approach to risk management practices employed across the business, and to support the identification, evaluation, mitigation, monitoring and reporting of risks that are material to the achievement of the business objectives. The risk management framework is embedded throughout the risk management process (see summary of the risk management framework in place throughout 2025 in note 4: Risk management).

Risk management strategy: The primary source of insurance risk arises from the historical underwriting activities of the business the Syndicate has accepted through reinsurance to close transactions. Key risk management strategies employed include:

•Ensuring key operational functions are appropriately resourced to manage the orderly run-off of the Syndicate’s liabilities whilst minimising overall operating costs.

•Proactive management of reinsurance recoveries through effective monitoring and chasing of aged debt.

•Proactive management of claims through effective litigation management and early settlement of claims where such opportunities arise.

The Syndicate’s risk management approach to investment, exchange rate and liquidity risks includes seeking to match investments to the maturity and currency profile of liabilities, monitoring and management of the credit quality of investment counterparties, and maintenance of a diversified portfolio of investments.

The Syndicate’s risk management approach to assuming additional risk through new RITC or run-off reinsurance contracts includes application of a range of actuarial, claims and reinsurance due diligence procedures, and transaction pricing and modelling against internal return on capital targets.

PMAL employs several risk management strategies, methods and tools to manage other non-insurance related risks, deemed appropriate and proportionate to our risk profile being managed. Further details are given in Note 4

Environmental, Social and Governance (ESG)

The Syndicate has an ESG Framework in place with the aims of providing assurance that ESG requirements are being considered appropriately, setting an ESG strategy in accordance, monitoring of ESG related processes and controls and that it supports a transparent decision-making process in relation to ESG requirements.

The Syndicate is now monitoring its carbon footprint in line with TCDF guidance although further improvements and enhancements will nonetheless be made in this area going forward, as data and tools are developed and experience gained. In line with the recommendations of the TCDF, key developments in the core elements of recommended disclosures, namely ‘Governance’, ‘Strategy’, ‘Risk Management’, and ‘Metrics and Targets’, are reported below.

Governance: Ownership of this area has been assigned to an appropriate SMF (Senior Management Functions) holder. The ESG steering committee, a sub-committee of Executive Committee, meets up on a regular basis to oversee the progress on ESG. There is also regular Board-level engagement on ESG related risks and the strategies to assess and remediate such risk.

Strategy: ESG related risks are now integrated into PMAL’s strategy. The Syndicate’s operating model leads to a low carbon footprint, and this includes a hybrid-working approach which reduces the emissions of the business through diminished levels of staff commuting. A formally evidenced and multi-faceted consideration of potential climate-change related financial risks is included within PMAL’s due diligence process for legacy transactions. The investment guidelines reflect PMAL’s approach to ESG considerations, including climate-change.

Risk management: ESG related risks and controls are included on the Risk Register to ensure regular assessment and reporting to key stakeholders. Climate-change is also monitored as part of emerging risk analysis and reporting, the key conclusions of which are included in the Syndicate’s annual ORSA report. Review of exposures and potential exposures, for example in respect of Insurance Risk and Market Risk, have been undertaken and were found to not constitute material exposures at present, though regular monitoring and assessment will continue. Potential climate-change related scenarios are considered as part of the model’s parameterisation process and consequently validated, if any, through the Internal Model validation process to ensure that impact of such stressed scenarios is understood and appropriately captured in findings, though the results continue to indicate that no extra capital is required in respect of such risks.

Metrics and Targets: Two ESG related risk appetite metrics are assessed and reported on an ongoing basis to ensure their adherence to the overall risk appetite in this area. ESG reporting is also embedded within the investment reports received from our investment managers utilising the Sustainalytics reporting tool.

Going Concern

The Syndicate has financial resources to meet its financial needs and manage 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 future year of account. The Syndicate has sufficient capital for each year of account in its Funds at Lloyd’s (FAL). There is no current 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.

Indemnity

PMAL has made qualifying third-party indemnity provisions for the benefit of its directors which were made during the period and remain in force as at the date of this report.

Subsequent events

There have been no significant events since the balance sheet date which would have a material effect on the financial statements.

Directors serving in the period

Details of the directors of PMAL as at the date of signing the Syndicate Annual Report & Accounts are provided on page 4. J Perkins was appointed as independent non-executive director on 12 November 2025. C L Lofthouse changed her name to C L Tanner during the year.

Disclosure of information to the auditor

In the case of each of the persons who are directors of PMAL at the time the report is approved:

•so far as the directors are aware, there is no relevant audit information, being information needed by the Syndicate auditor relating to the auditor’s report, of which the auditor is unaware; and

•having made enquiries of fellow directors of PMAL 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.

Appointment of auditor

Deloitte LLP was appointed as auditor on 3 August 2021. In accordance with section 14(2) of Schedule 1 of the Lloyd’s Regulations 2008, Deloitte LLP will be deemed to be reappointed for 2026.

Approved by the Board of directors and signed on its behalf by:

S P Curtis

Director

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 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 Report 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 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 notes to the Syndicate Annual Report and Accounts, and

•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.

•prepare and review the iXBRL tagging that has been applied to the Syndicate Annual Report and 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 adequate accounting records which disclose with reasonable accuracy at any time the financial position of the Syndicate and enable it to 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 the 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’s 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 version 3.1 as modified by the Frequently Asked Questions version 1.1 issued by Lloyd’s.

S P Curtis

Director

20 February 2026

Independent auditor’s report to the members of Syndicate 1884

Report on the audit of the Syndicate Annual Report and Accounts

Opinion

In our opinion the Syndicate Annual Report and Accounts of Syndicate 1884 (the ‘syndicate’):

•give a true and fair view of the state of the syndicate’s affairs as at 31/12/2025 and of its loss for the year then ended;

•have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”; and

•have been prepared in accordance with the requirements of The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 and sections 1 and 5 of the Syndicate Accounts Instructions Version 3.1 as modified by the Frequently Asked Questions Version 1.1 issued by Lloyd’s (the “Lloyd’s Syndicate Accounts Instructions”).

We have audited the Syndicate Annual Report and Accounts which comprise:

•the statement of profit or loss and comprehensive income;

•the balance sheet;

•the statement of changes in member’s balances;

•the statement of cash flows; and

•the related notes 1 to 27.

The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)), applicable law and the Lloyd’s Syndicate Accounts Instructions. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the syndicate annual financial statements 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 financial statements in the UK, including the Financial Reporting Council’s (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.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the managing agent’s use of the going concern basis of accounting in the preparation of the financial statements 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 in operations for a period of at least twelve months from when the syndicate financial statements 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.

Other information

The other information comprises the information included in the annual report, other than the syndicate annual financial statements and our auditor’s report thereon. The managing agent is responsible for the other information contained within the annual report. Our opinion on the syndicate annual financial statements 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 financial statements 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 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.

Responsibilities of managing agent

As explained more fully in the managing agent’s responsibilities statement, the managing agent is responsible for the preparation of the syndicate annual financial statements 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 financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the syndicate annual financial statements, the managing agent is responsible for assessing the syndicate’s ability to continue in operation, disclosing, as applicable, matters related to the syndicate’s ability to continue in operation and to use the going concern basis of accounting unless the managing agent intends to cease the syndicate’s operations, or has no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the Syndicate Annual Report and Accounts

Our objectives are to obtain reasonable assurance about whether the syndicate annual financial statements 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 financial statements.

A further description of our responsibilities for the audit of the Syndicate Annual Report and Accounts is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Extent to which 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 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 considered the nature of the syndicate and its control environment, and reviewed the syndicate’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management, internal audit and those charged with governance about their own identification and assessment of the risks of irregularities

We obtained an understanding of the legal and regulatory frameworks that the syndicate operates in, and identified the key laws and regulations that:

•had a direct effect on the determination of material amounts and disclosures in the financial statements. These included the Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 and the Lloyd’s Syndicate Accounting Byelaw (no. 8 of 2005); and

•do not have a direct effect on the financial statements but compliance with which may be fundamental to the syndicate’s ability to operate or to avoid a material penalty. These included permissions and supervisory requirements of Lloyd’s of London, The Prudential Regulation Authority (PRA) and the Financial Conduct Authority and the requirements of Solvency UK.

We discussed among the audit engagement team including IT and actuarial specialists regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

As a result of performing the above, we identified the greatest potential for fraud in the following area, and our procedures performed to address it are described below:

•The valuation of technical provisions for Incurred But Not Reported (IBNR) claims, including specific IBNR reserves, relies on significant management judgement and complex calculations. This inherently increases the potential for management bias. In response, we tested the design and implementation of controls over the end-to-end reserving process, involved our actuarial specialists to develop independent estimates of the technical provisions for classes associated with significant risk, and tested a sample of adjustments made to technical provisions outside the normal reserving process. Additionally, we performed a ‘stand back’ assessment to consider all audit evidence and assess for indications of management bias in the determination of IBNR reserves.

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following:

•reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

•performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

•enquiring of management and internal audit concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and

•reading minutes of meetings of those charged with governance, reviewing internal audit reports and reviewing correspondence with Lloyd’s, PRA and FCA.

Report on other legal and regulatory requirements

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 financial statements are prepared is consistent with the financial statements; and

•the managing agent’s report has been prepared in accordance with applicable legal requirements.

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 any material misstatements in the managing agent’s report.

Matters on which we are required to report by exception

Under The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 we are required to report in respect of the following matters if, in our opinion:

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

•the Syndicate Annual Report and Accounts are not in agreement with the accounting records; or

•we have not received all the information and explanations we require for our audit.

We have nothing to report in respect of these matters.

Use of our report

This report is made solely to the syndicate’s members, as a body, in accordance with regulation 10 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’s members as a body, for our audit work, for this report, or for the opinions we have formed.

As required by the Lloyd’s Syndicate Accounts Instructions, these financial statements will form part of the Electronic Format Annual Syndicate Accounts filed with the Council of Lloyd’s and published on the Lloyd’s website. This auditors’ report provides no assurance over whether the Electronic Format Annual Syndicate Accounts have been prepared in compliance with Section 2 of the Lloyd’s Syndicate Accounts Instructions. We have been engaged to provide assurance on whether the Electronic Format Annual Syndicate Accounts has been prepared in compliance with Section 2 of the Lloyd’s Syndicate Accounts Instructions and will report privately to the directors of the managing agent and the Council of Lloyd’s on this.

Ben Newton (Senior statutory auditor)For and on behalf of Deloitte LLPStatutory AuditorLondon, United Kingdom20 February 2026

Statement of profit or loss and other comprehensive income:

Technical account – General business

For the year ended

31 December 2025

Note

2025

£000

2024

£000

Gross premiums written

(1,495)

8,304

Outwards reinsurance premiums

(991)

(975)

Premiums written, net of reinsurance

(2,486)

7,329

Changes in unearned premium

Change in the gross provision for unearned premiums

1,922

2,563

Change in the provision for unearned premiums reinsurers’ share

Net change in provisions for unearned premiums

1,922

2,563

Earned premiums, net of reinsurance

(564)

9,892

Allocated investment return transferred from the non-technical account

6,201

8,702

Other technical income, net of reinsurance

Claims paid

Gross amount

(103,302)

(188,954)

Reinsurers’ share

38,391

55,340

Net claims paid

(64,911)

(133,614)

Change in the provision for claims

Gross amount

31,450

153,015

Reinsurers’ share

(14,477)

(45,200)

Net change in provisions for claims

16,973

107,815

Claims incurred, net of reinsurance

(47,938)

(25,799)

Changes in other technical provisions, net of reinsurance, not shown under other headings

Other technical provisions, net of reinsurance

410

1,486

Net change in other technical provisions

410

1,486

Net operating expenses

(12,983)

(14,501)

Other technical charges, net of reinsurance

Balance on the technical account – general business

(54,874)

(20,220)

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

Non-technical account – General business

For the year ended 31 December 2025

The accompanying notes from page

form an integral part of these financial statements.

Note

2025£000

2024£000

Balance on the technical account – general business

(54,874)

(20,220)

Investment income

4,772

6,861

Realised gains on investments

757

1,024

Unrealised gains on investments

1,241

1,291

Investment expenses and charges

(81)

(209)

Total investment return

6,689

8,967

Allocated investment return transferred to the general business technical account

(6,201)

(8,702)

Loss on foreign exchange

(849)

(259)

Loss for the financial year

(55,235)

(20,214)

Other comprehensive income:

Other

Total comprehensive loss for the year

(55,235)

(20,214)

Balance sheet – Assets

As at 31 December 2025

Note

2025£000

2024£000

Financial investments

56,857

84,997

Deposits with ceding undertakings

52,382

71,109

Investments

109,239

156,106

Provision for unearned premiums

Claims outstanding

66,788

84,987

Reinsurers’ share of technical provisions

66,788

84,987

Debtors arising out of direct insurance operations

6,577

11,473

Debtors arising out of reinsurance operations

47,046

55,927

Other debtors

Debtors

53,636

67,440

Cash at bank and in hand

3,965

4,614

Other

12,366

15,909

Other assets

16,331

20,523

Deferred acquisition costs

179

662

Other prepayments and accrued income

Prepayments and accrued income

179

662

Total assets

246,173

329,718

Balance sheet (cont’d) – Liabilities

As at 31 December 2025

Note

2025£000

2024£000

Members’ balances

(20,779)

20,133

Total capital and reserves

(20,779)

20,133

Provision for unearned premiums

727

2,719

Claims outstanding

258,847

297,447

Other technical provisions

436

Technical provisions

259,574

300,602

Creditors arising out of direct insurance operations

1,523

3,272

Creditors arising out of reinsurance operations

575

1,046

Other creditors including taxation and social security

5,280

4,665

Creditors

7,378

8,983

Accruals and deferred income

Total liabilities

266,952

309,585

Total liabilities, capital and reserves

246,173

329,718

The Syndicate financial statements on pages

to 48 were approved by the board of Premia Managing Agency Limited on 18 February 2026 and were signed on its behalf by;

S P CurtisDirector

20 February 2026

Statement of changes in members’ balances

For the year ended 31 December 2025

2025£000

2024£000

Members’ balances brought forward at 1 January

20,133

16,272

Total comprehensive (loss) for the year

(55,235)

(20,214)

Losses collected in relation to distribution on closure of underwriting year

608

Cash calls on open underwriting years

14,869

23,954

Net movement on funds in syndicate

(1,154)

121

Members’ balances carried forward at 31 December

(20,779)

20,133

Statement of cash flows

For the year ended 31 December 2025

Note

2025£000

2024£000

Cash flows from operating activities

(Loss) for the financial year

(55,235)

(20,214)

Adjustments:

(Decrease) in gross technical provisions

(26,724)

(156,978)

Increase in reinsurers’ share of gross

technical provisions

14,081

45,177

Increase in debtors

10,882

11,382

Decrease/(increase) in creditors

(3,263)

1,540

Movement in other assets/liabilities

4,318

5,515

Investment return

(6,689)

(8,967)

Foreign exchange

849

259

Net cash flows from operating activities

(61,781)

(122,286)

Cash flows from investing activities

Purchase of equity and debt instruments

(114,224)

(57,692)

Sale of equity and debt instruments

139,655

111,412

Investment income received

4,237

6,002

Other

14,362

38,865

Net cash flows from investing activities

44,030

98,587

Cash flows from financing activities

Distribution of profit

(8,331)

Capital contributions/open year cash calls made

14,869

23,954

Other

8,331

Net cash flows from financing activities

14,869

23,954

Net (decrease)/increase in cash and cash equivalents

(2,882)

255

Cash and cash equivalents at the beginning of the year

4,698

5,251

Foreign exchange on cash and cash equivalents

2,193

(808)

Cash and cash equivalents at the end of the year

4,009

4,698

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

1.Basis of preparation

The financial statements have been prepared in accordance with the Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008, applicable Accounting Standards in the United Kingdom and the Republic of Ireland, including Financial Reporting Standard 102 (FRS 102), Financial Reporting Standard 103 (FRS 103) in relation to insurance contracts, and the Lloyd’s Syndicate Accounts Instructions Version 3.1 as modified by the Frequently Asked Questions Version 1.1 issued by Lloyd’s.

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

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

The financial statements are prepared in Sterling which is the functional and presentational currency of the Syndicate and are rounded to the nearest £’000.

Restatement of comparative information

During 2024, Lloyd's introduced changes to the syndicate accounts process to rationalise and standardise financial reporting across the market. As a result, certain comparative information has been represented to ensure consistency with current year presentation and compliance with the Lloyd's Syndicate Accounts Instructions.

i. Reclassification changes

Certain financial statement line items have been reclassified whilst the underlying amounts remain unchanged. Principal changes include Deposits with cedings from undertakings have been reclassified from Investments to Other Assets, Deferred Acquisition Costs (DAC) have been reclassified from Other Assets to Prepayments and Accrued Income. Debtors arising from direct insurance operations have now been incorporated into the currency risk disclosure, ensuring a complete reflection of all debtor balances exposed to foreign exchange movements. Overseas deposits have been reclassified from Other Investments to Other Assets within the exposure to credit risk disclosure. These changes align the balance sheet presentation with the underlying nature of the items.

ii. Aggregation changes

To align with Lloyd's reporting requirements whilst maintaining FRS 102 compliance, certain items have been aggregated within the financial statements and related notes. This includes adjustments made to the breakdown between: debtors arising from reinsurance operations, other debtors, and accrued interest. These represent re-allocations within the total; the overall financial asset total remains unchanged. Debtors arising out of reinsurance operations now include both direct insurance and reinsurance totals, ensuring consistent aggregation rules across disclosures.

2.Significant judgements and key sources of estimation uncertainty

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

Insurance contract technical provisions

For insurance contracts, estimates must be made both for the expected ultimate cost of claims reported at the reporting date and for the expected ultimate cost of claims incurred, but not yet reported (IBNR), at the reporting date. It can take a significant period before the ultimate claims cost can be established with certainty and for some types of policies, IBNR claims form a significant proportion of the liability in the Balance sheet.

The ultimate cost of outstanding claims is estimated by using a range of standard actuarial claims projection techniques, such as the Chain Ladder and the Bornhuetter-Ferguson methods.

The main assumption underlying these techniques is that past claims development experience can be used to project future claims development and hence ultimate claims costs. The provision for claims outstanding is assessed on an individual case basis and is based on the estimated ultimate cost of all claims notified but not settled by the balance sheet date, together with the provision for related claims handling costs. The provision also includes the estimated cost of claims incurred but not reported (IBNR) at the balance sheet date based on statistical and exposure based methods and judgemental specific IBNR where appropriate.

These methods generally involve projecting from experience of the development of claims over time to form a view of the likely ultimate claims to be experienced for more recent underwriting, having regard to variations in the business accepted and the underlying terms and conditions.

Similar judgements, estimates and assumptions are employed in the assessment of adequacy of provisions for unearned premium. Judgement is also required in determining whether the pattern of insurance service provided by a contract requires amortisation of unearned premium on a basis other than time apportionment.

Further details are given in Note 4.

Critical accounting judgements

In the course of preparing the financial statements, no accounting judgements have been made in the process of applying the Syndicate’s accounting policies, other than those involving estimations, that have had a significant effect on the amounts recognised in the financial statements.

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.Financial Investments

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

B.Cash and cash equivalents

Cash and cash equivalents in the Balance sheet comprise cash at banks and in hand and short-term deposits with an original maturity date of three months or less. For the Statement of cash flows, cash and cash equivalents consist of cash and cash equivalents as defined above.

C.Fair value of financial assets

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

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

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

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

See Note 11 for details of financial instruments classified by fair value hierarchy.

D.Investment return

Dividends are recognised when the investments to which they relate are declared ‘ex-dividend’. Interest income is recognised on a time proportionate basis considering effective interest yield.

Unrealised and realised gains and losses on financial investments are recognised based on the appropriate classification of financial investments.

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

E.Insurance contracts – Product classification

Insurance contracts are those contracts where the Syndicate (the insurer/reinsurer) has accepted significant insurance risk from another party (the policyholder/reinsured) by agreeing to compensate the policyholder if a specified uncertain future event (the re/insured event) adversely affects the policyholder. As a general guideline, the Syndicate determines whether it has significant insurance risk, by comparing benefits paid with benefits payable if the insured event did not occur. Insurance contracts can also transfer financial risk.

Once a contract has been classified as an insurance contract, it remains an insurance contract for the remainder of its lifetime, even if the insurance risk reduces significantly during this period, unless all rights and obligations are extinguished or expire.

F.Gross premium

Gross written premium comprises the total premiums receivable for the whole period of cover provided by the contracts entered during the year, regardless of whether these are wholly due for payment in the

reporting year, together with any adjustments arising in the reporting year to such premiums receivable in respect of business written in prior reporting years or periods. They are recognised on the date on which the policy commences. Additional or return premiums are treated as a remeasurement of the initial premium. Gross written premiums are stated net of brokerage payable and exclude taxes and duties levied on them.

Written premiums include an estimate for pipeline premiums (i.e., premiums written but not reported to the Syndicate by the reporting date) relating only to those underlying contracts of insurance where the period of cover has commenced prior to the reporting date. The most significant assumption in this estimate is that prior year experience will be consistent with current experience.

Under some policies, written premiums are adjusted retrospectively in the light of claims experience. Where written premiums are subject to an increase retrospectively, recognition of any potential increase is deferred until the additional amount can be ascertained with reasonable certainty. Where written premiums are subject to a reduction, a remeasurement taking account of such a reduction is made as soon as there is an obligation to the coverholder.

G.Reinsurance premium

Reinsurance written premium comprises the total premiums payable for the whole cover provided by contracts entered in the year, including portfolio premiums payable, and are recognised on the date on which the policy incepts. Premiums include any adjustments arising in the year in respect of reinsurance contracts incepting in prior accounting year or periods.

Under some policies, reinsurance premiums payable is adjusted retrospectively in the light of claims experience or where the risk covered cannot be assessed accurately at the commencement of cover. Where written premiums are subject to an increase retrospectively, recognition of any potential increase is recognised as soon as there is an obligation to the policyholder.

H.RITC premium

RITC premiums received from third party syndicates are accounted for as a transfer of assets and are not recognised in the profit and loss account.

I.Risk premium

Where a risk premium is received in excess of ceded reserves this is held on the balance sheet as other technical provisions and released in line with the movement in underlying reserves. The risk premium reserve may also be released to cover any deterioration in the ultimate position and will be reinstated when possible.

J.Claims

Claims include all claims occurring during the year, whether reported or not, related internal and external claims handling costs that are directly related to the processing and settlement of claims, a reduction for the value of salvage and other recoveries, and any adjustments to claims outstanding from previous years.

Reinsurance claims are recognised when the related gross insurance claim is recognised according to the terms of the relevant contract.

K.Technical provisions

Technical provisions comprise claims outstanding, provisions for unearned premiums, provisions for unexpired risk and risk premium provisions on closed years of account.

L.Claims outstanding

The outstanding claims provision is based on the estimated ultimate cost of all claims incurred but not settled at the reporting date, whether reported or not, together with related claims handling costs and reduction for the expected value of salvage and other recoveries. Delays can be experienced in the

notification and settlement of certain types of claims; therefore, the ultimate cost of these cannot be known with certainty at the reporting date. The liability is calculated at the reporting date using a range of standard actuarial claim projection techniques, based on empirical data and current assumptions that may include a margin for adverse deviation. The liability is not discounted for the time value of money. A significant degree of caution and expert judgement is applied when setting the overall outstanding claims provision, to reflect the uncertainty of claims, including claims that are subject to dispute or potential litigation.

M.Provisions for unearned premiums

Unearned premiums are those proportions of premiums written in a year that relate to periods of risk after the reporting date. In respect of general insurance business, written premiums are recognised as earned over the period of the policy on a time apportionment basis, having regard where appropriate, to the incidence of risk. The proportion attributable to subsequent periods is deferred as a provision for unearned premiums.

Unearned reinsurance premiums are those proportions of premiums written in a year that relate to periods of risk after the reporting date. Unearned reinsurance premiums are deferred over the term of the underlying direct insurance policies for risks-attaching contracts and over the term of the reinsurance contract for losses-occurring contracts.

N.Unexpired risks

A liability adequacy provision (the unexpired risks provision) is made where the cost of claims and expenses arising after the end of the financial year from contracts concluded before that date, are expected to exceed the provision for unearned premiums, net of deferred acquisition costs.

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

O.Deferred acquisition costs

Acquisition costs comprise costs arising from the conclusion of insurance contracts, such as intermediary commissions or the cost of drawing up the insurance document or including the insurance contract in the portfolio.

Deferred acquisition costs are costs arising from conclusion of insurance contracts that are incurred during the reporting period but that relate to a subsequent reporting period and that are carried forward to subsequent reporting periods.

Deferred acquisition costs are amortised over the period in which the related premiums are earned.

The reinsurers’ share of deferred acquisition costs is amortised in the same manner as the underlying asset amortisation is recorded in the income statement.

Commissions receivable on outwards reinsurance contracts are deferred and amortised on a straight-line basis over the term of the expected premiums payable.

P.Reinsurance assets

The Syndicate cedes insurance risk in the normal course of business. Reinsurance assets represent balances due from reinsurance companies. Amounts recoverable from reinsurers are estimated in a manner consistent with the outstanding claims provision or settled claims associated with the reinsurer’s policies and are in accordance with the related reinsurance contract.

Reinsurance assets are reviewed for impairment at each reporting date, or more frequently, when an indication of impairment arises during the reporting year. Impairment occurs when there is objective evidence because of an event that occurred after initial recognition of the reinsurance asset that the

Syndicate may not receive all outstanding amounts due under the terms of the contract and the event has a reliably measurable impact on the amounts that the Syndicate will receive from the reinsurer. The impairment loss is recorded in the income statement.

Gains or losses on buying reinsurance are recognised in the income statement immediately at the date of purchase and are not amortised. There were no such gains or losses recognised in the period.

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

Q.Insurance receivables

Insurance receivables are recognised when due and measured at the fair value of the consideration received or receivable. The carrying value of insurance receivables is reviewed for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable, with the impairment loss recorded in the income statement.

R.Insurance payables

Insurance payables are recognised when due and measured at the fair value of the consideration paid or payable less directly attributable transaction costs.

S.Foreign currencies

The Syndicate’s functional currency and presentational currency is Sterling being the primary currency of the economic environment where staff are employed, expenses are paid and where the Syndicate operates.

Transactions in foreign currencies are translated using the average exchange rates applicable in the quarter in which the transaction occurs. This is deemed to be a reasonable approximation of the rate at which the transaction took place. Monetary assets and liabilities (which include all assets and liabilities arising from insurance contracts, including unearned premiums and deferred acquisition costs) denominated in foreign currencies are retranslated into the functional currency at the exchange rate ruling on the reporting date.

Non-monetary items where applicable are measured in terms of historical cost in a foreign currency and translated using the exchange rate as at the date of the initial transaction and are not subsequently restated. Non-monetary items denominated in a foreign currency and measured at fair value are translated into the functional currency using the exchange rate ruling at the date when the fair value was determined.

Exchange differences are recorded in the non-technical account.

T.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 are included in the Balance sheet under the heading ‘other debtors’.

No provision has been made for Singapore or any other overseas tax payable by members on underwriting results.

U.Pension costs

All staff are employed by Premia UK Services Company Limited, which operates a defined contribution scheme. Pension contributions relating to Syndicate staff are charged to the Syndicate and are included within net operating expenses.

4.Risk and capital management

Introduction and overview

This note presents information about the nature and extent of insurance, financial and operational 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 purpose of PMAL’s Risk Management Framework is to provide a consistent, effective and documented approach to risk management practices. It is designed to be in line with regulatory requirements and industry best practice and covers Risk Management’s Organisation and Strategy, Risk Management Culture, Risk Appetite, Risk Management Processes, Incident Reporting, Emerging Risks; and Risk Tools.

The overall risk management approach is to identify, assess, manage, monitor and report on all material risks faced by the business in line with established risk appetites and tolerances. To achieve this, PMAL adopts the three lines of defence approach with respect to structuring roles, responsibilities for the ownership and management of risk, oversight and decision making, and independent assurance.

Risk Culture

PMAL’s culture is to embed risk management throughout the business in a consistent way in order to identify, assess, manage, monitor and report on risks, controls and incidents as part of fulfilling the business plan.

The Board, via its Risk and Capital Committee (RCC), are ultimately responsible for risk management and risk culture, but on a day-to-day basis this is delegated to the Chief Risk Officer (RO) and the Risk Management (RM) function. The RCC promotes a positive risk culture through active involvement and engagement in all aspects of the risk management framework.

The RM function embeds and promotes a positive risk culture throughout the business through its regular activities and engagement with the first line of business, including training and briefing sessions, to foster transparency, continuous learning and a shared understanding of risk across all levels of the organisation.

Ownership of risk lies with the first line of business with the RM function monitoring and coordinating risk culture throughout the business as part of its regular activities and reporting on this to the RCC on a quarterly basis.

Risk Appetite Statement

PMAL’s risk appetite statement defines its attitude towards the risks it faces in the pursuit of its strategic objectives. It details the amount of risk that the business is willing to assume to achieve such objectives by clearly delineating tolerances within which it must operate. The risk appetite statement is crucial for the integration of strategy and risk management in the business.

The key principles underlying the risk appetite statement and related monitoring are as follows:

•The risk appetite statement reflects strategic objectives and the approach of the business to key areas of risk, broken down by risk categories.

•Risk tolerances in relation to key risk areas are defined in the statement.

•Risk controls and tolerances at a more granular level reflect over-arching risk appetites and are embedded across the business.

•Risk appetites and measurable metrics are monitored and reported on through a Risk Appetite Dashboard on at least a quarterly basis.

•The risk appetite statement is approved by the Board – following the review and recommendation of the RCC – on an annual basis.

Risk Management Processes

The Risk Management Framework depends on the processes to identify, assess, manage, monitor, and report on risks.

These processes involve close liaison between the RM function and the first line functions who are responsible for the risks and control performance.

A key feature of the risk management process is the creation, update, and maintenance of a risk register by the RM function which captures all the risks faced by the business and the controls to mitigate them. This register is held by the RM function and also includes the incident register.

Emerging Risks

Emerging risks are considered as part of the review of risks with risk owners, and the quarterly monitoring and reporting to the RCC.

Identification of emerging risks is facilitated by participation in industry risk groups and reports on emerging risks by key international organisations and companies. Emerging risks may also be identified as a result of stress and scenario testing carried out on a periodic basis and for the internal model validation.

An annual report on emerging risks is submitted by the RM function to the RCC for their review and updates.

Risk Tools

The main tools available that the RM function may use are summarised as follows:

•Sensitivity tests (either deterministic changes in assumptions, or plausible alternative assumptions).

•Stress and scenario tests. These depend on the selection and severity of the stress/scenario (i.e. what events could occur and what would be the financial impact); and an independent estimate of the probability of the event occurrence.

•Reverse Stress tests. Begins with consideration of the events or combinations of events that could threaten the viability of the business. ‘Viability’ here is the assumed outcome of business failure as a result of capital depletion and is not necessarily defined by exhaustion of capital.

•Back-testing against experience and other appropriate data to the extent that data are reasonably available (apply the tests to aggregated results and appropriate single elements of the results). Identify the reason for any significant divergence between assumptions and results.

•Stability tests e.g. by varying number of simulations and seed.

A.Insurance risk

Insurance risk is defined as the fluctuation in benefits payable to policyholders and comprises premium risk and reserve risk. Insurance risk includes both catastrophe risk and non-catastrophe risk elements. The key components are defined as follows:

•Premium Risk – The risk that actual losses and expenses are greater than the premium income.

•Reserve Risk – The risk that current reserves are insufficient to cover their run-off as a result of either inappropriate methodology or inherent volatility.

The Syndicate’s risk profile is dominated by reserve risk rather than premium risk.

i.Management of insurance risk

Risk

Examples of risk management approach

Claims arising from prior year business cost more to settle than the amounts estimated in the Syndicate’s reserves

•governance through the operation of a Reserving Committee as a sub-committee of the Board to which the reserving actuaries report

•regular comparison of actual claims compared with expected claim development patterns

•close liaison with the claims team to monitor the sources and types of incurred claims to identify unanticipated trends

•Comparison between independent valuation and internal year end estimate of reserves

Reinsurance protections fail to protect the Syndicate in the manner expected

•analysis of the extent to which the reinsurance programme is exposed given the underlying gross exposure

•monitoring of remaining cover given the level of incurred claims

•focus on collecting reinsurance recoveries swiftly and carefully managing reinsurance disputes

Premium collections are less than forecast

•analysis of actual verses expected premium income by policy to identify uncollected or outstanding amounts

•monthly monitoring of actual collections verses actuarial forecasts of premium at class level to identify trends

ii.Concentration of insurance risk

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

At 31 December 2025

Gross

Liabilities

£000

Reinsurance

of liabilities

£000

Net

Liabilities

£000

Direct insurance:

Accident & health

(1,350)

Motor (third party liability)

(177)

Motor (other classes)

Marine, aviation and transport

(13,281)

7,44

(12,537)

Fire and other damage to property

(2,917)

(86)

(3,003)

Third-party liability

(121,602)

4,720

(116,882)

Credit and suretyship

5,479

(158)

5,321

(133,818)

5,220

(128,598)

Reinsurance

(125,029)

61,568

(63,460)

(258,847)

66,788

(192,058)

At 31 December 2024

Gross

Liabilities

£000

Reinsurance

of liabilities

£000

Net

Liabilities

£000

Direct insurance:

Accident & health

(2,295)

878

(1,417)

Motor (third party liability)

(268)

Motor (other classes)

Marine, aviation and transport

(15,586)

1,345

(14,241)

Fire and other damage to property

(10,216)

215

(10,001)

Third-party liability

(117,792)

6,127

(111,665)

Credit and suretyship

4,812

(125)

4,687

(141,296)

8,440

(132,856)

Reinsurance

(156,151)

76,547

(79,604)

(297,447)

84,987

(212,460)

iii.Sensitivity to insurance risk

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 or decrease in the insurance liability as a result of applying the sensitivity. The amount disclosed for the impact on claims outstanding – net of reinsurance represents the impact on both the profit and loss for the year and member balance.

General insurance business sensitivities as at 31 December 2025

Sensitivity

+5.0%£000

-5.0%£000

Claims outstanding – gross of reinsurance

12,942

(12,942)

Claims outstanding – net of reinsurance

12,942

(12,942)

General insurance business sensitivities as at 31 December 2024

Sensitivity

+5.0%£000

-5.0%£000

Claims outstanding – gross of reinsurance

14,872

(14,872)

Claims outstanding – net of reinsurance

10,623

(10,623)

B.Financial risk

The Syndicate is exposed to a range of financial risks in the normal course of business, including counterparty credit risk, liquidity risk, and market risk, as set out below:

a.Credit risk

Credit risk is the risk that one party to a financial instrument will cause a financial loss to the other party by failing to discharge an obligation. Credit risk is actively monitored and managed. This includes the risk of counterparty default on amounts due under reinsurance contracts, unpaid premiums on inwards insurance policies, premiums held by brokers or deposits held with credit institutions.

PMAL monitors the Syndicate’s level of overdue debt by counterparty and reviews the credit worthiness of the Syndicate’s reinsurers based on an analysis of the financial condition of each reinsurer. This analysis uses a range of information including financial reports, published credit rating opinions and information provided by reinsurance brokers.

All new reinsurers must meet minimum security thresholds. Concentration risk is managed through the application of credit limits expressed in terms of each reinsurer’s share of the overall reinsurance programme. Credit risk is actively monitored through PMAL’s governance committees.

iv.Exposure to credit risk

The carrying amount of financial assets and reinsurance assets represents the maximum credit risk exposure. The Syndicate does not hold any collateral as security or purchase any credit enhancements (such as guarantees, credit derivatives and netting arrangements that do not qualify for offset).

The following table analyses the credit rating by investment grade of financial investments, debt securities and derivative financial instruments, 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.

2025

AAA£000

AA£000

A£000

BBB£000

Other£000

Not rated£000

Total£000

Debt securities and other fixed income securities

4,051

16,137

13,196

2,180

35,564

Participation in investment pools

21,249

Loans and deposits with credit institutions

Other assets

4,129

1,603

1,146

366

1,008

4,114

12,366

Deposits with ceding undertakings

2,082

50,300

52,382

Reinsurers’ share of claims outstanding

3,971

39,956

22,410

520

(69)

66,788

Debtors arising out of direct insurance operations

6,577

Debtors arising out of reinsurance operations

493

118

(5)

627

Cash at bank and in hand

3,965

Other debtors and accrued interest

192

Total

39,505

58,189

87,170

3,073

1,008

10,807

199,752

2024

AAA£000

AA£000

A£000

BBB£000

Other£000

Not rated£000

Total£000

Debt securities and other fixed income securities

8,147

43,849

17,873

4,864

74,733

Participation in investment pools

10,180

Loans and deposits with credit institutions

Other assets

6,871

1,746

1,340

922

1,347

3,683

15,909

Deposits with ceding undertakings

3,279

67,830

71,109

Reinsurers’ share of claims outstanding

83,873

630

484

84,987

Debtors arising out of direct insurance operations

11,473

Debtors arising out of reinsurance operations

149

Cash at bank and in hand

4,614

Other debtors and accrued interest

702

Total

33,175

45,595

170,990

5,786

1,977

16,417

273,940

v.Financial assets that are past due or impaired

The Syndicate has debtors arising from direct insurance and reinsurance operations that are past due but not impaired at the reporting date.

An analysis of the carrying amounts of past due or impaired debtors is presented in the table below:

Neither past due nor impaired assets

Past due but not impaired assets

Gross value of impaired assets

Impairment allowance

Total

2025

£000

Debt securities and other fixed income securities

35,564

Participation in investment pools

21,249

Loans and deposits with credit institutions

Other assets

12,366

Deposits with ceding undertakings

52,382

Reinsurers' share of claims outstanding

66,788

Debtors arising out of direct insurance operations

6,577

Debtors arising out of reinsurance operations

627

46,419

47,046

Other debtors and accrued interest

192

Cash at bank and in hand

3,965

Total

199,752

46,419

246,171

Neither past due nor impaired assets

Past due but not impaired assets

Gross value of impaired assets

Impairment allowance

Total

2024

£000

Debt securities and other fixed income securities

74,733

Participation in investment pools

10,180

Loans and deposits with credit institutions

Other assets

15,909

Deposits with ceding undertakings

71,109

Reinsurers' share of claims outstanding

84,987

Debtors arising out of direct insurance operations

11,473

Debtors arising out of reinsurance operations

149

55,778

55,927

Other debtors and accrued interest

702

Cash at bank and in hand

4,614

Total

273,940

55,778

329,718

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

b.Liquidity risk

Liquidity risk arises as a result of the inability to meet obligations to policyholders as they fall due, and/or under extreme but plausible scenarios or an inability to meet such obligations at an acceptable cost.

PMAL monitors the Syndicate’s liquidity position and regularly performs liquidity stress testing. 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.

Past due but not impaired

0-3 months past due

3-6 months past due

6-12 months past due

Greater than 1 year past due

Total

2025

£000

Debtors arising out of reinsurance operations

7,772

10,849

5,870

21,928

46,419

Total

7,772

10,849

5,870

21,928

46,419

Past due but not impaired

0-3 months past due

3-6 months past due

6-12 months past due

Greater than 1 year past due

Total

2024

£000

Debtors arising out of reinsurance operations

17,618

6,076

6,131

25,953

55,778

Total

17,618

6,076

6,131

25,953

55,778

The Syndicate’s approach to managing its liquidity risk is as follows:

•Cash-flow forecasts over the short, medium and long term are prepared and revised on a regular basis;

•This is compared with the profile of existing cash and the profile of investment asset maturities;

•The Syndicate maintains cash and cash equivalent assets to meet daily calls on its insurance contracts within a monitored risk tolerance;

•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 stressed circumstances.

vi.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 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.

000

Undiscounted net cash flows

2025

No maturity stated£000

0-1 yrs£000

1-3 yrs£000

3-5 yrs£000

>5 yrs£000

Total£000

Claims outstanding

82,523

88,331

44,532

43,461

258,847

Creditors

7,377

Total

89,900

88,331

44,532

43,461

266,224

000

Undiscounted net cash flows

2024

No maturity stated£000

0-1 yrs£000

1-3 yrs£000

3-5 yrs£000

>5 yrs£000

Total£000

Claims outstanding

86,781

137,533

53,285

19,850

297,447

Creditors

8,983

Total

95,764

137,533

53,285

19,850

306,430

c.Market risk

Market risk arises from fluctuations in values of, or income from, invested assets including movements in interest rates, inflation rates or foreign exchange rates including that arising from asset concentration. In addition, there is a risk of mismatch with the currency denomination of assets and liabilities, and with the timing of when its liabilities fall due in relation to the availability of its assets.

Asset-Liability Management (ALM) is the management of a business in such a way that decisions on asset management are coordinated to reflect the expected liability profile of the business, and potential variations around that.

i.Management of market risks

In managing Market Risk, PMAL aims to ensure:

•Fluctuations in asset values are appropriately managed and minimised to achieve suitable investment returns.

•Investment durations are appropriately, and reasonably, aligned to the liabilities, whilst considering duration and currency.

•Working capital including its denomination is enough to meet obligations as and when they fall due.

•Sufficient funds for trust funds, and other regulated funding requirements, are identified and made available.

The table below summarises the carrying value of the Syndicate’s assets and liabilities, at the reporting date:

Sterling

US dollar

Euro

Canadian dollar

Australian dollar

Japanese Yen

Other

Total

2025

£000

Investments

4,235

95,142

1,737

8,119

109,239

Reinsurers' share of technical provisions

13,331

52,362

375

366

354

66,788

Debtors

10,229

38,501

3,157

536

1,019

124

53,636

Other assets

7,624

1,003

436

1,473

5,162

283

350

16,331

Prepayments and accrued income

107

179

Total assets

35,477

187,115

5,716

10,495

6,541

355

474

246,173

Technical provisions

(36,638)

(196,551)

(14,793)

(4,179)

(5,165)

(2,248)

(259,574)

Creditors

(1,641)

(5,626)

(53)

(40)

(18)

(7,378)

Total liabilities

(38,279)

(202,177)

(14,846)

(4,219)

(5,183)

(2,248)

(266,952)

Total capital and reserves

2,802

15,062

9,130

(6,276)

(1,358)

1,893

(474)

20,779

Sterling

US dollar

Euro

Canadian dollar

Australian dollar

Japanese Yen

Other

Total

2024

£000

Investments

4,584

136,771

5,521

9,224

156,106

Reinsurers' share of technical provisions

18,749

61,859

1,618

146

2,615

84,987

Debtors

12,531

48,043

5,097

(249)

1,841

111

67,440

Other assets

6,244

1,433

709

1,896

8,133

126

1,982

20,523

Prepayments and accrued income

152

438

662

Total assets

42,260

248,544

12,998

11,028

12,601

239

2,048

329,718

Technical provisions

(47,453)

(219,144)

(17,972)

(5,114)

(7,176)

(3,743)

(300,602))

Creditors

(1,729)

(7,025)

(87)

(62)

(78)

(2)

(8,983)

Total liabilities

(49,182)

(226,169)

(18,059)

(5,176)

(7,254)

(3,745)

(309,585))

Total capital and reserves

6,922

(22,375)

5,061

(5,852)

(5,347)

3,506

(2,048)

(20,133)

ii.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.

2025Impact on results before tax£000

2025Impact on

members’

balances£000

2024Impact on results before tax£000

2024Impact on

members’

balances£000

Interest rate risk

+ 50 basis points shift in yield curves

(400)

(697)

- 50 basis points shift in yield curves

413

715

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 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.

C.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 Prudential Regulatory Authority (PRA) 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 UK capital requirements which became effective from 1 January 2016.

Solvency UK requires insurers to maintain capital sufficient to cover a 1-in-200-year loss, reflecting uncertainty that could arise over a one-year time horizon (known as the Solvency Capital Requirement or “SCR”). Lloyd’s has received approval from the PRA to calculate this value using its own internal capital model, based on inputs received from managing agents in respect of the syndicates they manage.

ii.Lloyd’s capital setting process

The Lloyd’s capital setting process calculates capital requirements at syndicate level. Lloyd’s requires each managing agent to calculate the SCR for its managed syndicates for the prospective underwriting year based on each syndicate’s business forecast. This amount must be sufficient to cover a 1-in-200-year loss, reflecting the full uncertainty in the ultimate run-off of underwriting liabilities (SCR ‘to ultimate’). An SCR at the same confidence level but reflecting uncertainty over a one-year time horizon (one-year SCR) is also calculated for Lloyd’s to use in calculating its own regulatory 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. The SCR ‘to ultimate’ is the basis for the Lloyd’s capital requirement for each syndicate.

Lloyd’s applies an additional capital uplift known as the Economic Capital Assessment (ECA) to each syndicate’s ultimate SCR. The purpose of this uplift is to meet Lloyd’s financial strength, licence and credit-rating objectives. This uplift, which applies to all syndicates, is currently set at 35% of SCR ‘to ultimate’.

iii.Provision of capital by member

Regulatory capital requirements for Lloyd’s apply at an overall market level and at a member level. The Syndicate is comprised of a single underwriting member of Lloyd’s. The member is liable for Syndicate liabilities and is required to provide capital that reflects this. Where the 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 that reflects the capital requirement to cover a 1-in-200-year loss ‘to ultimate’ for the member.

The member may provide capital to meet its ECA either by assets held in trust by Lloyd’s specifically for the member (FAL), held within and managed within a Syndicate (Funds in Syndicate) or as the member’s share of the members’ balances on each Syndicate on which it participates.

D.Operational Risk

Operational risk is defined as the loss or inefficiencies arising from inadequate or failed internal processes, people and systems or from external events to support delivery of the business plan. Operational risk comprises:

•Governance

•Information Systems

•Business Continuity

•Business Processes

•Compliance

•Fraud

•Human Resources

•Outsourcing

•Distribution Channels

Premia manages these operational risks primarily through controls which are recorded and monitored in the Syndicate’s risk register. Premia aims, inter-alia, to ensure:

•Effective business practices proportionate to the needs of the business are designed and embedded across each function to support an effective control environment.

•Services received from external or related parties are in accordance with agreed upon service levels and standards.

•Adequately experienced and competent employees are recruited and retained.

•Roles and responsibilities are clearly defined and support the structure necessary to deliver strategy and / or business plan.

•Timely and appropriate management information supported by adequate and quality data is used to coordinate business activities and support effective decision making.

•The IT infrastructure, systems and applications are stable and adequate to support business needs including MI.

•Group risk is included here covering undue influence by related parties and/or activity load impacts.

5.Analysis of underwriting result

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

2025

Gross premiums written£000

Gross premiums earned£000

Gross claims incurred£000

Gross operating expenses£000

Reinsurance balance£000

Underwriting result£000

Direct insurance

Accident and health

(53)

(639)

(133)

(16)

(841)

Motor (third party liability)

(1)

(28)

(26)

Motor (other classes)

(2)

(25)

(20)

Marine, aviation, and transport

855

878

(6,469)

(1,695)

4,835

(2,451)

Fire and other damage to property

(253)

(108)

5,698

(1,293)

4,357

Third party liability

(225)

141

(58,336)

(5,963)

25,934

(38,224)

Credit and suretyship

(283)

1,095

190

(470)

(7,227)

(6,412)

Total direct insurance

1,960

(59,609)

(8,201)

22,233

(43,617)

Reinsurance acceptances

(1,533)

(12,243)

(4,782)

1,100

(17,458)

Total

(1,495)

427

(71,852)

(12,983)

23,333

(61,075)

Gross written premiums are negative for 2025 due to the recognition of a provision against previously recognised premiums which may not be fully collectible.

The below is an additional disclosure for Lloyd’s reporting purposes and is included to facilitate the classification of the above segments into the Lloyd’s aggregate classes of business:

2025

Gross premiums written£000

Gross premiums earned£000

Gross claims incurred£000

Gross operating expenses£000

Reinsurance balance£000

Underwriting result£000

Additional analysis

Fire and damage to property of which is:

Specialities

(219)

(28)

(135)

(319)

Energy

(39)

(127)

(24)

299

109

Third party liability of which is:

Energy

(5)

280

(14)

(62)

199

2024

Gross premiums written£000

Gross premiums earned£000

Gross claims incurred£000

Gross operating expenses£000

Reinsurance balance£000

Underwriting result£000

Direct insurance

Accident and health

(48)

(54)

(257)

(10)

7,515

7,194

Motor (third party liability)

(10)

342

(13)

(10)

325

Motor (other classes)

(4)

Marine, aviation, and transport

208

340

1,225

(469)

11,815

12,911

Fire and other damage to property

393

(8,915)

(238)

(3,846)

(12,606)

Third party liability

2,034

3,039

(40,108)

(8,961)

16,939

(29,091)

Credit and suretyship

367

663

10,598

319

(3,135)

8,445

Total direct insurance

2,587

4,412

(37,112)

(9,376)

29,278

(12,798)

Reinsurance acceptances

5,717

6,455

1,173

(5,125)

(18,627)

(16,124)

Total

8,304

10,867

(35,939)

(14,501)

10,651

(28,922)

The below is an additional disclosure for Lloyd’s reporting purposes and is included to facilitate the classification of the above segments into the Lloyd’s aggregate classes of business:

2024

Gross premiums written£000

Gross premiums earned£000

Gross claims incurred£000

Gross operating expenses£000

Reinsurance balance£000

Underwriting result£000

Additional analysis

Fire and damage to property of which is:

Specialities

119

(15)

127

Energy

Third party liability of which is:

Energy

(2)

(2,407)

(234)

398

(2,245)

No gains or losses were recognised in profit or loss during the year on buying reinsurance (2024: nil).

The gross premiums written for direct insurance by underwriting location of risk is presented in the table below:

2025£000

2024£000

United Kingdom

2,587

European Union Member States

Rest of the world

Total gross premiums written

2,587

2024 Total gross premiums written have been restated to reflect the change from reporting total gross premiums written to reporting total direct insurance gross premiums written.

6.Net operating expenses

2025£000

2024£000

Acquisition costs

Change in deferred acquisition costs

468

981

Administrative expenses

12,048

12,963

Members’ standard personal expenses

400

458

Net operating expenses

12,983

14,501

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

2025£000

2024£000

Total commission for direct insurance business

Administrative expenses include:

2025£000

2024£000

Auditors’ remuneration:

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

424

349

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

186

170

7.Key management personnel compensation

The directors of the managing agent received the following aggregate remuneration charged to the Syndicate:

2025£000

2024£000

Directors’ emoluments

1,560

1,642

Fees

The run-off manager received the following aggregate remuneration charged to the Syndicate.

No advance or credits were granted by PMAL to any of the directors during the year. We deem the directors of PMAL to be the key management personnel.

2025£000

2024£000

Emoluments

427

437

8.Staff numbers and costs

Staff are employed by Premia UK Services Limited. The average number of persons employed by the service company but working for the Syndicate during the year, analysed by category, was as follows:

Number of employees

2025

2024

Administration and finance

Underwriting

Claims

Investments

Total

The following amounts were recharged by the service company to the Syndicate in respect of payroll costs:

2025£000

2024£000

Wages and salaries

5,605

6,085

Social security costs

755

719

Other pension costs

326

343

Total

6,686

7,147

9.Investment return

2025£000

2024£000

Interest and similar income

From financial instruments designated at fair value through profit or loss

Interest and similar income

4,772

6,861

Dividend income

Interest on cash at bank

Other income from investments

From financial instruments designated at fair value through profit or loss

Realised gains on investments

804

1,350

Realised losses on investments

(47)

(326)

Unrealised gains on investments

1,242

1,657

Unrealised losses on the investments

(1)

(366)

Investment management expenses

(81)

(209)

Total investment return

6,689

8,967

Transferred to the technical account from the non-technical account

6,201

8,702

Investment return on Funds in Syndicate

488

265

Impairment losses on debtors recognised in administrative expenses

10.Distribution

A collection from members in the form of a cash call for $40,000,000 took place in January 2026 in relation to the closing year of account (

2023

) (2024: $761,526 collection in relation to the closing year of account (

2022

)).

11.Financial investments

Carrying value

Cost

2025£000

2024£000

2025£000

2024£000

Debt securities and other fixed income securities

35,564

74,733

38,222

80,193

Participation in investment pools

21,249

10,180

21,248

10,180

Loans and deposits with credit institutions

Total financial investments

56,857

84,997

59,514

90,457

Included in the carrying values above are listed investments as follows:

2025£000

2024£000

Listed investments

56,813

84,913

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

2025£000

2024£000

Financial assets measured at fair value through profit or loss

56,857

84,997

Financial assets measured at fair value as available for sale

Financial assets measured at amortised cost

Total financial investments

56,857

84,997

As the Syndicate is fully aligned, the Syndicate holds the capital supporting their underwriting in their Syndicate’s premium trust funds. These funds are known as funds in syndicate (FIS). At 31 December 2025, the following amount was held as funds in syndicate:

2025£000

2024£000

Funds in Syndicate (FIS)

7,765

8,432

Total funds in syndicate

7,765

8,432

During the year, the Syndicate made a cash call on the 2023 YOA of $20m.

Funds in Syndicate (FIS) refers to capital held by aligned members within syndicate premium trust funds rather than centrally at Lloyd’s. When aggregating the Syndicate Accounts for the PFFS, the balance of FIS reported in this note is used to reconcile and disclose the movement in members’ balances. This disclosure only applies to syndicates with FIS.

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:

2025

Level 1£000

Level 2£000

Level 3£000

Total£000

Debt securities and other fixed income securities

3,291

32,273

35,564

Participation in investment pools

21,249

Loans and deposits with credit institutions

Total

24,584

32,273

56,857

2024

Level 1£000

Level 2£000

Level 3£000

Total£000

Debt securities and other fixed income securities

16,084

58,649

74,733

Participation in investment pools

10,180

Loans and deposits with credit institutions

Total

26,348

58,649

84,997

Information on the methods and assumptions used to determine fair values for each major category of financial instrument measured at fair value is provided below.

Debt securities are generally valued using prices provided by external pricing vendors. Pricing vendors will often determine prices by consolidating prices of recent trades for identical or similar securities obtained from a panel of market makers into a 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.

Some government and supranational securities are listed on recognised exchanges and are generally classified as level 1 in the fair value hierarchy. Those that are not listed on a recognised exchange are generally based on composite prices of recent trades in the same instrument and are generally classified as level 2 in the fair value hierarchy. Corporate bonds, including asset backed securities, that are not listed on a recognised exchange or are traded in an established over-the-counter market are

also mainly valued using composite prices. Where prices are based on multiple quotes and those quotes are based on actual recent transactions in the same instrument the securities are classified as level 2, otherwise they are classified as level 3 in the fair value hierarchy.

Management performs an analysis of the prices obtained from pricing vendors to ensure that they are reasonable and produce a reasonable estimate of fair value. Management considers both qualitative and quantitative factors as part of this analysis. Examples of analytical procedures performed include reference to recent transactional activity for similar securities, review of pricing statistics and trends and consideration of recent relevant market events.

At the reporting date Level 1 and Level 2 financial assets and liabilities were valued using valuation techniques based on observable market data. All of the investments categorised as Level 3 are fair valued based on the inputs to the valuation technique used.

12.Debtors arising out of direct insurance operations

2025£000

2024£000

Due within one year

6,577

11,473

Due after one year

Total

6,577

11,473

13.Debtors arising out of reinsurance operations

2025£000

2024£000

Due within one year

47,046

55,927

Due after one year

Total

47,046

55,927

14.Other debtors

2025£000

2024£000

Inter syndicate balances

Other related party balances (non-syndicate)

Amounts due from members

Other

Total

15.Deferred acquisition costs

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

2025

2024

Gross£000

Reinsurance£000

Net£000

Gross£000

Reinsurance£000

Net£000

Balance at 1 January

662

1,642

Incurred deferred acquisition costs

Amortised deferred acquisition costs

(468)

(981)

Foreign exchange movements

(15)

Balance at 31 December

179

662

16.Claims development

The following tables illustrate the development of the estimates of earned ultimate cumulative claims incurred, including claims notified and IBNR, for each successive underwriting year, illustrating how amounts estimated have changed from the first estimates made.

As these tables are on an underwriting year basis, there is an apparent large increase from amounts reported for the end of the underwriting year to one year later as a large proportion of premiums are earned in the year of account’s second year of development.

Balances have been translated at exchange rates prevailing at 31 December 2025 in all cases.

Gross:

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Total

Pure underwriting year

£000

Estimate of gross claims

at end of underwriting year

151,366

272,657

183,838

132,237

43,399

one year later

304,190

425,726

355,878

138,018

34,738

two years later

342,190

498,023

365,635

149,267

32,315

three years later

350,048

505,958

902,608

160,567

four years later

354,756

1,030,830

857,617

five years later

394,235

1,000,675

880,449

six years later

373,213

1,006,180

887,805

seven years later

371,200

1,029,659

936,823

eight years later

372,075

1,048,493

nine years later

369,161

Estimate of gross claims reserve

369,161

1,048,493

936,823

160,567

32,315

2,547,359

Provision in respect of prior years

30,409

Less gross claims paid

(351,159)

(994,893)

(844,017)

(107,901)

(20,951)

(2,318,921)

Gross claims reserve

18,002

53,600

92,806

52,666

11,364

258,847

Net:

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Total

Pure underwriting year

£000

Estimate of net claims

at end of underwriting year

60,111

72,470

79,612

132,237

43,399

one year later

143,697

156,883

145,444

138,018

34,738

two years later

160,981

174,200

153,984

149,267

32,315

three years later

159,734

221,629

607,450

160,567

four years later

175,713

663,652

583,125

five years later

278,624

634,978

592,080

six years later

265,471

637,177

596,156

seven years later

263,309

649,887

622,404

eight years later

265,943

660,935

nine years later

264,600

Estimate of net claims reserves

264,600

660,935

622,404

160,567

32,315

1,740,821

Provision in respect of prior years

28,893

Less net claims paid

(251,127)

(627,399)

(570,277)

(107,901)

(20,951)

(1,577,655)

)

Net claims reserve

13,473

33,536

52,127

52,666

11,364

192,059

17.Technical provisions

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

2025

2024

Gross provisions£000

Reinsurance

Assets£000

Net£000

Gross provisions£000

Reinsurance

Assets£000

Net£000

Claims outstanding

Balance at 1 January

297,447

(84,987)

212,460

449,383

(129,536)

319,847

Claims paid during the year

(103,302)

38,391

(64,911)

(188,954)

55,340

(133,614)

Expected cost of current year claims

71,852

(23,914)

47,938

35,939

(10,140)

25,799

Change in estimates of prior year provisions

Discount unwind

Foreign exchange movements

(7,150)

3,722

(3,428)

1,079

(651)

428

Other

Balance at 31 December

258,847

(66,788)

192,059

297,447

(84,987)

212,460

2025

2024

Gross provisions£000

Reinsurance

Assets£000

Net£000

Gross provisions£000

Reinsurance

Assets£000

Net£000

Unearned premiums

Balance at 1 January

2,719

5,281

Premiums written during the year

(1,495)

(991)

(2,486)

8,304

(975)

7,329

Premiums earned during the year

(427)

991

564

(10,867)

975

(9,892)

Foreign exchange movements

(70)

Other

Balance at 31 December

727

2,719

Refer to Note 4 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.

18.Creditors arising out of direct insurance operations

2025£000

2024£000

Due within one year

1,523

3,272

Due after one year

Total

1,523

3,272

19.Creditors arising out of reinsurance operations

2025£000

2024£000

Due within one year

575

1,046

Due after one year

Total

575

1,046

20.Other creditors

2025£000

2024£000

Other related party balances (non-syndicates)

5,280

4,665

Total

5,280

4,665

21.Cash and cash equivalents

2025£000

2024£000

Cash at bank and in hand

3,965

4,614

Deposits with credit institutions

Total cash and cash equivalents

4,009

4,698

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.

22.Analysis of net debt

At 1 January 2025

Cash flows

Acquired

Fair value and exchange movements

Non-cash changes

At 31 December 2025

Cash and cash equivalents

4,698

(2,882)

2,193

4,009

Other

Total

4,698

(2,882)

2,193

4,009

23.Related parties

PMAL is wholly owned by Premia Managing Agency Holdings Limited (“PMAH”), the ultimate controlling party is Premia Holdings Limited (“Premia”).

Premia UK Service Company Limited, a 100% subsidiary of PMAH, provided underwriting and management services, including claims, accounting, human resources, IT and infrastructure, to both the Syndicate and PMAL by way of inter-group cross charges. All transactions are entered into on normal market terms.

PMAH wholly owns Premia Syndicate Services Limited, which is a service company coverholder approved by Lloyd’s. The Syndicate utilises the service company as a coverholder to bind risks on its behalf. Under the terms of the arrangement with the Syndicate, the service company charges fees to the Syndicate equal to their operating costs plus a margin of 7.5%. On behalf of the Syndicate the service company wrote in 2025 gross premium of nil, 2024: £8,000.

Some of the directors of PMAL during the year were also directors of other Premia entities and other London market companies and these individuals disclose and manage any potential conflicts of interest. Any business transacted has been and will continue to be conducted at an arm’s length commercial basis with no involvement, either directly or indirectly by the individuals. Other than directorship fees, salaries and other related remuneration, no personal benefit is derived by the individuals concerned from any such arrangements.

Given the insurance-related activities undertaken within the broader Premia group it is possible that transactions may be entered between the Syndicate and other related parties. Any such related party transactions are entered by the Syndicate on a commercial basis.

In 2025, the syndicate entered into a reinsurance contract on commercial terms with Canal Re S.A., a Luxembourg reinsurer which is also part of the Premia group.

Transactions with related parties:

2025)

£000)

2024

£000

Premia Managing Agency Limited

Managing Agent fee

408

458

Amount outstanding at 31 December

Premia UK Services Company Limited

Recharges (administrative expenses)

12,590

13,639

Amount outstanding at 31 December

4,979

4,622

Premia Syndicate Services Limited

Service fees

Amount outstanding at 31 December

Canal Re S.A.

Outwards reinsurance premiums

248

Amount outstanding at 31 December

245

These disclosure requirements are in addition to the requirement to disclose key management personnel compensation. This disclosure is given in note 7.

Capital support

From the 2021 YOA, the only capital provider to the Syndicate is Premia Corporate Name (3) Limited, a 100% indirect subsidiary of Premia Holdings Limited.

All capital providers who underwrite on the Syndicate are charged managing agency fees on a similar basis as disclosed in the Register of Underwriting Agency Charges.

24.Off-balance sheet items

The Syndicate has not been party to any arrangements that are not reflected in its Balance sheet, where material risks and benefits arise for the Syndicate.

25.Post balance sheet events

The amounts that are proposed to be transferred to members are disclosed in note

26.Foreign exchange rates

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

2025

2024

Start of period rate

End of period

rate

Average

rate

Start of period rate

End of period rate

Average

rate

Sterling

1.00

Euro

1.21

1.15

1.14

1.15

1.21

1.18

US dollar

1.25

1.35

1.33

1.27

1.25

1.28

Canadian dollar

1.80

1.84

1.85

1.68

1.80

1.75

Australian dollar

2.02

2.03

1.87

2.02

1.94

Japanese Yen

196.83

210.83

204.88

179.72

196.83

193.45

27.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.