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Syndicate 0044 Annual Report & Accounts
As at 31 December 2025
Contents
CMA
Syndicate 0044 Annual Report & Accounts 31 December 2025
Page 2 of 35
Syndicate 0044
Directors and Advisers
............................................................................................................................
3
Report of the Directors of the Managing Agent
.....................................................................................
4
Independent auditor’s report to the member of Syndicate 0044
..........................................................
7
Income Statement: Technical Account – Long Term Business
.............................................................
11
Income Statement: Non-technical Account
..........................................................................................
12
Statement of Changes in Member’s Balances
......................................................................................
12
Statement of Financial Position – Assets
..............................................................................................
13
Statement of Financial Position – Liabilities
.........................................................................................
14
Statement of Cash Flows
......................................................................................................................
15
Notes to the Financial Statements
........................................................................................................
16
Directors and Professional Advisors
CMA
Syndicate 0044 Annual Report & Accounts 31 December 2025
Page 3 of 35
MANAGING AGENT:
Directors
P Ceurvorst *
M V Greenwood OBE DL*
P F Hazell *
M Newman
H Patel *
Appointed 1 May 2025
J Pearson
A Rouffiac
Former Directors who served during the year and prior to date of signing
P Meader *
Resigned 31 March 2025
* Non-Executive Director
Company Secretary
P Makwana
Registered office
Floor 29
22 Bishopsgate
London
EC2N 4BQ
Managing Agent’s registration No.
01514453
FCA firm registration No.
204847
SYNDICATE:
Run-off Management
Executive Responsible:
M Newman
Run-off manager:
W Monelle
Syndicate:
0044
Bankers
Barclays Bank PLC
Citibank N.A.
Independent Auditors
Ernst & Young LLP (“EY”)
25 Churchill Place, Canary Wharf, London, E14 5EY
Report of the Directors of the Managing Agent
CMA
Syndicate 0044 Annual Report & Accounts 31 December 2025
Page 4 of 35
The directors of Canopius Managing Agents Limited (“CMA”), the managing agent for Syndicate 0044 (the
“Syndicate”), present the annual report and audited financial statements for the Syndicate for the year ended 31
December 2025.
These financial statements have been prepared in compliance with United Kingdom Accounting Standards,
including Financial Reporting Standard 102, “The Financial Reporting Standard applicable in the United Kingdom
and Republic of Ireland” (“FRS102”), Financial Reporting Standard 103, “Insurance Contracts” (“FRS103”) and the
Companies Act 2006.
Furthermore, these financial statements comply with the Insurance Accounts Directive
(Lloyd's Syndicate and Aggregate Accounts) Regulations 2008 ("the 2008 Regulations"), and the Lloyd’s Syndicate
Accounts Instructions Version 3.1 as modified by the Frequently Asked Questions V1.1 issued by Lloyd’s.
Principal activity
The Syndicate’s principal activity continues to be the transaction of term life insurance and reinsurance business
as the Syndicate runs-off its business following the previous Managing Agent’s, AmTrust Syndicates Limited
(‘ASL’), decision to cease underwriting at the end of 2018. With effect from 1 January 2019 the Syndicate was
placed into run-off. The Syndicate capacity for the 2018 year of account was £20.0m.
Significant events
The sole remaining open year of account, 2018, remains open given the lack of either a successor year of account
or a market for an external RITC.
Management continues to focus on those steps necessary to achieve closure of the Syndicate at the earliest
opportunity.
It has become increasingly unlikely that Management’s preferred option, a transfer of the Syndicate’s remaining
liability by means of a Part VII transfer, can be achieved. Therefore, whilst remaining open to any viable
opportunities to complete a Part VII transfer, Management have looked to take steps to minimise the financial
exposure of the capital provider and to take steps to curtail the length of time the Syndicate will remain on risk for
its remaining policies.
The first objective has been achieved by means of a 100% Quota Share treaty with GenRe, effective from 1 January
2021 and which continues until expiry of the Syndicate’s last policy. During 2022, with the agreement of GenRe,
all the Syndicate’s existing reinsurance policies were commuted.
The second objective progressed by securing agreed voluntary terminations with those policyholders who held
policies with the longest durations. This exercise has concluded with policyholders in the Netherlands, where
regulatory changes in 2023 also drove requirements. With this process concluded in the Netherlands, the
Syndicate’s last remaining policy, excluding lapses, will expire in 2029.
The provision for future expense reflects the fact that the Syndicate is likely to remain on risk for the remaining
policies until they expire. Work continues to structure CMA’s support to the Syndicate in the most efficient and cost
effective way possible.
Results and performance – Key performance indicators (“KPIs”)
During the year the Syndicate generated a loss of £312k being expenses in excess of the release from the long
term business provision and foreign exchange movement.
Being in run-off, the Syndicate’s key financial performance indicators had concerned claims developments,
management of operating expenses, the adequacy of the run-off provision and the maintenance of sufficient
liquidity to meet the Syndicate’s obligations as they fall due. Following the reinsurance of the liabilities to the
quota share reinsurer, the focus is now on the adequacy of the run-off provision and achieving closure of the
Syndicate, this is monitored through regular Financial review, as such no KPI’s have been presented.
A run-off provision has been included within the technical provisions of the Syndicate, Note 7, since the decision
to place the Syndicate into run-off was made as of 1 January 2019. The provision represents Management’s best
estimate assessment of the expected future developments in finalising the Syndicate’s liabilities.
Report of the Directors of the Managing Agent
CMA
Syndicate 0044 Annual Report & Accounts 31 December 2025
Page 5 of 35
The table below presents the movement in the run-off provision during the year compared to the result for the
period excluding the impact of investment income and foreign exchange gains and losses:
£m
Run-off provision at 31 December 2024
(1.1)
Run-off provision at 31 December 2025
(0.9)
Movement in run-off provision during the year
0.2
Result excluding movement in run-off provision, investment income and foreign exchange
(0.3)
Result development
(0.1)
During the period the run-off provision decreased in line with the reduction in the number of years of run-off. The
provision reflects the likelihood a Part VII transfer of the Syndicate’s remaining policies will not be achievable and
that the Syndicate will remain open until all policies expire. The Syndicate made a loss of £0.3m (2024 profit
£0.3m).
Cash, investments and overseas deposits
On a combined basis the Syndicate’s funds decreased £0.6m from last year end (2024 increase £0.2m).
Management closely monitors the Syndicate’s cash flow projections, any net outflow in respect of claims will be
reimbursed by the quota share reinsurer under the terms of the quota share arrangement. Additionally, up to £2
million of cash can be retained by the Syndicate as a claims float to ensure short term liquidity.
Member’s balances
Amounts due from the member have increased by £0.3m from 31 December 2024, following the 2025 calendar
year loss.
Open year of account
The 2018 year of account, the sole remaining year of the Syndicate, remains open at 96 months with no successor
year to close into and there being no market within Lloyd’s for an external RITC of a Life syndicate. Management
continues to work closely with the Syndicate’s member to conclude the Syndicate’s liabilities as soon as possible.
Principal risks and uncertainties
The process of risk acceptance and risk management is addressed through a framework of policies, procedures
and internal controls. Policies are subject to CMA’s Board (‘Board’) approval and ongoing review by
management, risk management and internal audit.
The Audit Committee is responsible for satisfying itself that a
proper internal control framework exists to manage financial risks and that controls operate effectively.
CMA’s governance structure ensures a clear definition of responsibility for the management and oversight of the
risks faced by the business.
CMA has established an Enterprise Risk Management (“ERM”) framework that is
designed to identify, assess, measure, mitigate, monitor and report all material financial and non-financial risk.
The key uncertainty facing the Syndicate is the ultimate cost and timing of arrangements to conclude the
Syndicate’s business, including the future expenses associated therewith.
A description of the principal risks and uncertainties facing the Syndicate is set out in note 4 to the financial
statements (Risk and capital management).
Future developments
CMA continues to actively manage the run-off of the Syndicate and seeks opportunities to conclude the Syndicate’s
liabilities at the earliest opportunity in order to achieve a positive outcome for its capital provider.
Going concern
With effect from 1 January 2019 the Syndicate ceased underwriting and was put into run-off. A run-off provision
has been included within the Syndicate’s technical provisions representing Management’s best estimate of the
expected future cost of finalising the Syndicate’s liabilities. The Syndicate continues to trade as it manages claims
made on in-force policies. Accordingly, these accounts have been prepared on a going concern basis.
Report of the Directors of the Managing Agent
CMA
Syndicate 0044 Annual Report & Accounts 31 December 2025
Page 6 of 35
Directors
The directors of the managing agents who served from 1 January 2025 to the date of this report are shown on
page 3. None of the directors had an allocated premium limit on the Syndicate, on either an unlimited or limited
liability basis, for the 2018 years of account.
Statement of disclosure of information to auditors
In the case of each of the persons who are directors of the managing agent at the time the report is approved:
•
So far as the director is aware, there is no relevant audit information, being information needed by the
Syndicate’s auditor in connection with the auditor’s report, of which the auditor is unaware; and
•
Having made enquiries of fellow directors of the agency and the Syndicate’s auditor, each director has
taken all the steps that he or she ought to have taken as a director to become aware of any relevant audit
information and to establish that the Syndicate’s auditor is aware of that information.
Statement of Managing Agent’s Responsibilities
The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 require the
directors of the managing agent to prepare syndicate annual accounts each year which give a true and fair view,
in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice, of the state of
affairs of the syndicate and of the profit or loss of the syndicate for that period. In preparing those financial
statements, 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 syndicate accounts; and
•
Prepare the syndicate accounts on the basis that the syndicate will continue to write future business
unless it is inappropriate to do so.
The managing agent confirms that it has complied with the above requirements in preparing the syndicate accounts.
The directors of the managing agent are responsible for keeping proper accounting records that disclose with
reasonable accuracy at any time the financial position of the Syndicate and enable it to ensure that the syndicate
accounts comply with the 2008 Regulations. The managing agent 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 preparation and review of the iXBRL tagging that has been applied to
the Syndicate Accounts in accordance with the instructions issued by Lloyd’s, including designing, implementing
and maintaining systems, processes and internal controls to result in tagging that is free from material non-
compliance with the instructions issued by Lloyd’s, whether due to fraud or error.
The managing agent is responsible for the maintenance and integrity of the corporate and financial information
included on the business’ website. Legislation in the United Kingdom governing the preparation and dissemination
of annual accounts may differ from legislation in other jurisdictions.
Independent Auditors
In accordance with section 14(2) of Schedule 1 of the Lloyd’s Regulations 2008, the auditors, Ernst & Young LLP,
will be deemed to be reappointed and therefore continue in office.
Syndicate annual general meeting
In accordance with the Syndicate Meetings (Amendment No. 1) Byelaw (No. 18 of 2000) the managing agent does
not propose to hold a syndicate annual meeting this year. The member may object to this proposal, or the intention
to reappoint the auditors for a further 12 months, within 21 days of this notice. Any objections must be made in
writing to the managing agent.
By order of the Board of the managing agent
James Pearson
Chief Financial Officer
Canopius Managing Agents Limited
19 February 2026
Independent Auditor’s Report to the Member of
Syndicate 0044
for the year ended 31 December 2025
CMA
Syndicate 0044 Annual Report & Accounts 31 December 2025
Page 7 of 35
Opinion
We have audited the syndicate annual accounts of syndicate 0044 (‘the syndicate’) for the year ended
31 December 2025 which comprise the Income Statement, the Statement of Changes in Member’s
Balances, the Statement of Financial Position, the Statement of Cash Flows and
the related notes 1 to
24, including a summary of significant accounting policies. The financial reporting framework that has
been applied in their preparation is applicable law including The Insurance Accounts Directive (Lloyd’s
Syndicate and Aggregate Accounts) Regulations 2008, United Kingdom Accounting Standards
including FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and
FRS 103 ‘Insurance Contracts’ (‘United Kingdom Generally Accepted Accounting Practice’), and
Section 1
of the Lloyd’s Syndicate Accounts Instructions V3.1 as modified by the Frequently Asked
Questions Version 1.1 issued by Lloyd’s (‘the Syndicate Accounts Instructions’).
In our opinion, the syndicate annual accounts:
give a true and fair view of the syndicate’s affairs as at 31 December 2025 and of its loss
for the
year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting
Practice; and
have been prepared in accordance with the requirements of The Insurance Accounts Directive
(Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 and the Syndicate Accounts
Instructions.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)), The
Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008, the
Syndicate Accounts Instructions, and other applicable law. Our responsibilities under those standards
are further described in the Auditor’s responsibilities for the audit of the syndicate annual accounts
section of our report. We are independent of the syndicate in accordance with the ethical requirements
that are relevant to our audit of the syndicate annual accounts in the UK, including the FRC’s Ethical
Standard as applied to other entities of public interest, and we have fulfilled our other ethical
responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Conclusions relating to going concern
In auditing the syndicate annual accounts, we have concluded that the managing agent’s use of the
going concern basis of accounting in the preparation of the syndicate annual accounts is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to
events or conditions that, individually or collectively, may cast significant doubt on the syndicate’s ability
to continue as a going concern for a period of 12 months from when the syndicate annual accounts are
authorised for issue.
Our responsibilities and the responsibilities of the directors of the managing agent with respect to going
concern are described in the relevant sections of this report. However, because not all future events or
conditions can be predicted, this statement is not a guarantee as to the syndicate’s ability to continue
as a going concern.
Independent Auditor’s Report to the Member of
Syndicate 0044
for the year ended 31 December 2025
CMA
Syndicate 0044 Annual Report & Accounts 31 December 2025
Page 8 of 35
Other information
The other information comprises the information included in the Annual Report and Accounts, other
than the syndicate annual accounts and our auditor’s report thereon. The directors of the managing
agent are responsible for the other information contained within the Annual Report and Accounts.
Our opinion on the syndicate annual accounts does not cover the other information and, except to the
extent otherwise explicitly stated in this report, we do not express any form of assurance conclusion
thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other
information is materially inconsistent with the syndicate annual accounts or our knowledge obtained in
the course of the audit or otherwise appears to be materially misstated. If we identify such material
inconsistencies or apparent material misstatements, we are required to determine whether this gives
rise to a material misstatement in the syndicate annual accounts themselves. If, based on the work we
have performed, we conclude that there is a material misstatement of the other information, we are
required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by The Insurance Accounts Directive (Lloyd’s Syndicate
and Aggregate Accounts) Regulations 2008
In our opinion, based on the work undertaken in the course of the audit:
the information given in the managing agent’s report for the financial year in which the syndicate
annual accounts are prepared is consistent with the syndicate annual accounts; and
the managing agent’s report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the syndicate and its environment obtained in the
course of the audit, we have not identified material misstatements in the managing agent’s report.
We have nothing to report in respect of the following matters where The Insurance Accounts Directive
(Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 requires us to report to you, if in our
opinion:
the managing agent in respect of the syndicate has not kept adequate accounting records; or
the syndicate annual accounts are not in agreement with the accounting records; or
certain disclosures of the managing agent’s emoluments specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of the directors of the managing agent
As explained more fully in the Statement of Managing Agent’s Responsibilities
set out on page 6
, the
directors of the managing agent are responsible for the preparation of the syndicate annual accounts
and for being satisfied that they give a true and fair view, and for such internal control as they determine
is necessary to enable the preparation of the syndicate annual accounts that are free from material
misstatement, whether due to fraud or error.
Independent Auditor’s Report to the Member of
Syndicate 0044
for the year ended 31 December 2025
CMA
Syndicate 0044 Annual Report & Accounts 31 December 2025
Page 9 of 35
In preparing the syndicate annual accounts, the directors of the managing agent are responsible for
assessing the syndicate’s ability to continue in operation, disclosing, as applicable, matters related to
its ability to continue in operation and using the going concern basis of accounting unless the directors
of the managing agent either intends to cease to operate the syndicate, or has no realistic alternative
but to do so.
Auditor’s responsibilities for the audit of the syndicate annual accounts
Our objectives are to obtain reasonable assurance about whether the syndicate annual accounts as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these syndicate annual accounts.
Explanation as to what extent the audit was considered capable of detecting irregularities,
including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design
procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. The
risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one
resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional
misrepresentations, or through collusion.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed
below. However, the primary responsibility for the prevention and detection of fraud rests with both
those charged with governance of the managing agent and management.
Our approach was as follows:
•
We obtained a general understanding of the legal and regulatory frameworks that are applicable
to the syndicate and determined that the most significant are direct laws and regulations related to
elements of Lloyd’s Byelaws and Regulations, and the financial reporting framework (UK United
Kingdom Generally Accepted Accounting Practice), and requirements referred to by Lloyd’s in the
Syndicate Accounts Instructions. Our considerations of other laws and regulations that may have
a material effect on the syndicate annual accounts included permissions and supervisory
requirements of Lloyd’s of London, the Prudential Regulation Authority (‘PRA’) and the Financial
Conduct Authority (‘FCA’).
•
We obtained a general understanding of how the syndicate is complying with those frameworks by
making enquiries of management, internal audit, and those responsible for legal and compliance
matters of the syndicate. In assessing the effectiveness of the control environment, we also
reviewed significant correspondence between the syndicate, Lloyd’s of London and other UK
regulatory bodies; reviewed minutes of the Board and the Audit Committee of the managing agent;
and gained an understanding of the managing agent’s approach to governance.
•
For direct laws and regulations, we considered the extent of compliance with those laws and
regulations as part of our procedures on the related syndicate annual accounts’ items.
•
For both direct and other laws and regulations, our procedures involved: making enquiries of the
directors of the managing agent and senior management for their awareness of any non-
compliance of laws or regulations, enquiring about the policies that have been established to
prevent non-compliance with laws and regulations by officers and employees, enquiring about the
managing agent’s methods of enforcing and monitoring compliance with such policies, and
inspecting significant correspondence with Lloyd’s, the PRA and the FCA.
•
The syndicate operates in the insurance industry which is a highly regulated environment. As such
the Senior Statutory Auditor considered the experience and expertise of the engagement team to
ensure that the team had the appropriate competence and capabilities, which included the use of
specialists where appropriate.
Independent Auditor’s Report to the Member of
Syndicate 0044
for the year ended 31 December 2025
CMA
Syndicate 0044 Annual Report & Accounts 31 December 2025
Page 10 of 35
•
We assessed the susceptibility of the syndicate’s annual accounts to material misstatement,
including how fraud might occur by considering the controls that the directors of the managing
agent have established to address risks identified by them, or that otherwise seek to prevent, deter
or detect fraud. We also considered areas of significant judgement,
and the impact these have on
the control environment. The fraud risk was considered to be higher within the valuation of the run-
off provision within the long-term business provision.
Our audit procedures included:
•
Reviewing the methodology used and assumptions applied by management for determining
the run-off provision. We assessed if there were any indicators of management bias in the
valuation of the run-off provision within the long-term business provision.
•
Auditing the valuation of the run-off provision to ensure it is reasonable and accurate.
A further description of our responsibilities for the audit of the annual accounts is located on the
Financial Reporting Council’s website at https://www.frc.org.uk/auditorsresponsibilities. This description
forms part of our auditor’s report.
Other matter
Our opinion on the syndicate annual accounts does not cover the iXBRL tagging included within these
syndicate annual accounts, and we do not express any form of assurance conclusion thereon.
Use of our report
This report is made solely to the syndicate’s members, as a body, in accordance with The Insurance
Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008. Our audit work has
been undertaken so that we might state to the syndicate’s members those matters we are required to
state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we
do not accept or assume responsibility to anyone other than the syndicate and the syndicate’s members
as a body, for our audit work, for this report, or for the opinions we have formed.
Andrew Blackmore (Senior statutory auditor)
for and on behalf of Ernst & Young LLP, Statutory Auditor
London
19 February 2026
Income Statement: Technical Account – Long Term
Business
for the year ended 31 December 2025
CMA
Syndicate 0044 Annual Report & Accounts 31 December 2025
Page 11 of 35
2025
2024
Notes
£’000
£’000
£’000
£’000
Earned premiums, net of reinsurance
Gross premiums written
6
(156 )
Outward reinsurance premiums
(292 )
Premiums written, net of reinsurance
Net change in provisions for unearned
premium
Earned premiums, net of reinsurance
Allocated investment return transferred
from
the non-technical account
11
Claims incurred, net of reinsurance
Claims paid
Gross amount
(140 )
Reinsurers’ share
Net claims paid
Change in the provision for claims
Gross amount
Reinsurers’ share
(112 )
(265 )
Net change in provision for claims
Claims incurred, net of reinsurance
Changes in other technical provisions,
net of reinsurance
Long term business provision, net of reinsurance
Gross amount
7
Reinsurers’ share
7
(2,509 )
(1,149 )
Net change in long term business provision
Net operating expenses
8
(542 )
(303 )
Balance on the technical account –
long-term business
(312 )
The Syndicate has ceased trading forward and therefore there are no component parts of the business to be
separately classified and disclosed as discontinued.
The accompanying notes form an integral part of the financial statements.
Income Statement: Non-technical Account
for the year ended 31 December 2025
CMA
Syndicate 0044 Annual Report & Accounts 31 December 2025
Page 12 of 35
Note
2025
2024
£’000
£’000
Balance on the Technical Account – Long-Term
Business
(312 )
Investment income
11
Total investment income
Allocated investment return transferred to the long term
business technical account
(5 )
(8 )
(Loss)/profit for the financial year
(312 )
Total comprehensive (loss)/income for the year
(312 )
The accompanying notes form an integral part of the financial statements.
There is no other comprehensive income and consequently no Statement of Other Comprehensive Income has
been presented.
Statement of Change in Member’s Balances
for the year ended 31 December 2025
2025
2024
£’000
£’000
Member’s balances brought forward at 1 January 2025
(40 )
(316 )
Total comprehensive (loss)/income for the financial year
(312 )
Member’s balances carried forward at 31 December 2025
(352 )
(40 )
Members participate on syndicates by reference to years of account and the ultimate result therefrom. Assets and
liabilities are allocated to members by reference to policies incepting in the year of account on which they
participate.
Statement of Financial Position – Assets
at 31 December 2025
CMA
Syndicate 0044 Annual Report & Accounts 31 December 2025
Page 13 of 35
Assets
2025
2024
Notes
£’000
£’000
£’000
£’000
Financial Investments
12
Total Investments
Long term business provision
7
Claims outstanding
7
Reinsurers’ share of technical provisions
Debtors arising out of direct insurance operations
13
Other debtors
14
Debtors
Cash at bank and in hand
16
Other
15
Other assets
Total assets
The accompanying notes form an integral part of the financial statements.
Statement of Financial Position – Liabilities
at 31 December 2025
CMA
Syndicate 0044 Annual Report & Accounts 31 December 2025
Page 14 of 35
Liabilities
2025
2024
Notes
£’000
£’000
£’000
£’000
Member’s balances
(352 )
(40 )
Total capital and reserves
(352 )
(40 )
Claims outstanding
7
Long term business provision
7
Technical provisions
Creditors arising out of reinsurance operations
17
Other creditors including taxation and social security
18
Creditors
Total liabilities
Total liabilities, capital and reserves
The accompanying notes form an integral part of the financial statements.
The annual accounts on pages 11 to 35 were approved by the Board of CMA on 18 February 2026 and were
signed on its behalf by:
James Pearson
Chief Financial Officer
Canopius Managing Agents Limited
19 February 2026
Statement of Cash Flows
for the year ended 31 December 2025
CMA
Syndicate 0044 Annual Report & Accounts 31 December 2025
Page 15 of 35
2025
2024
£’000
£’000
Cash flows from operating activities
(Loss)/profit for the financial year
(312 )
Adjustment for:
Decrease in gross technical provisions
(2,892 )
(1,722 )
Decrease in reinsurers' share of gross technical provisions
Decrease in debtors
Decrease in creditors
(457 )
(255 )
Decrease in other assets
Investment return
(5 )
(8 )
Foreign exchange
(27 )
Net cash inflow/(outflow) from operating activities
(550 )
Cash flows from investing activities
Investment income received
Net cash flow from investing activities
Net cash flow from financing activities:
Financing activities
Net cash flow from financing activities
Net (decrease)/increase in cash and cash equivalents
(545 )
Cash and cash equivalents at the beginning of the year
FX on cash and cash equivalents
(37 )
Cash and cash equivalents at the end of the year
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 0044 Annual Report & Accounts 31 December 2025
Page 16 of 35
1.
Basis of preparation
The Syndicate is supported by a single corporate member of Lloyd’s (AmTrust Corporate Member Two Limited)
that underwrote business in the London Market and is managed by CMA.
The address of the Syndicate’s managing
agent, CMA, is Floor 29, 22 Bishopsgate, London EC2N 4BQ.
The financial statements have been prepared in accordance with the Insurance Accounts Directive (Lloyd’s
Syndicate and Aggregate Accounts) Regulations 2008 (“the Regulations”) and Financial Reporting Standard (FRS)
100 (‘Application of Financial Reporting Requirements’), Financial Reporting Standard 102, the Financial Reporting
Standard applicable in the UK and Republic of Ireland (FRS 102) and Financial Reporting Standard 103 Insurance
Contracts (FRS 103), and the Lloyd’s Syndicate Accounts Instructions Version 3.1 as modified by the Frequently
Asked Questions V1.1 issued by Lloyd’s.
The financial statements have been prepared on the historical cost basis, except for financial assets measured at
fair value through profit or loss.
The financial statements are presented in Pound Sterling (GBP), which is the Syndicate’s functional currency. All
amounts have been rounded to the nearest thousand, unless otherwise indicated.
Going concern
The Syndicate ceased actively underwriting with effect from 1 January 2019. A run-off provision has been included
within the technical provisions of the Syndicate representing Management’s best estimate of the expected costs to
be incurred in finalising the Syndicate’s liabilities. The Syndicate continues to trade as it manages claims made on
in-force policies. Accordingly, these accounts have been prepared on a going concern basis.
CMA will actively manage the run-off of the Syndicate and seek opportunities to conclude its liabilities at the earliest
opportunity in order to achieve a positive outcome for its capital provider.
2.
Use of judgements and estimates
In preparing these financial statements, the directors of the Managing Agent have made judgements, estimates
and assumptions that affect the application of the Syndicate’s accounting policies and the reported amounts of
assets, liabilities, income and expenses.
Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing
basis. Revisions to estimates are recognised in the period in which they are identified.
The Syndicate’s principal estimates are for claims provisions, related recoveries and the run-off provision included
within the long-term business provision. Management regularly reviews and revises these estimates as appropriate
based on current information. Any adjustments made to these estimates are reflected in the period the estimates
are revised.
The measurement of the long-term business provision involves judgements and assumptions about the future that
have the most significant effect on the amounts recognised in the financial statements.
The long-term business provision includes the estimated cost of settling all claims incurred but unpaid at the
statement of financial position date, whether reported or not as well as the expected costs required to conclude the
Syndicate. This is a judgemental and complex area due to the subjectivity inherent in estimating the impact of
claims events that have occurred but for which the eventual outcome remains uncertain. In particular, judgement
is applied when estimating the value of amounts that should be provided for claims that have been incurred at the
reporting date but have not yet been reported (IBNR) to the Syndicate. The whole account quota share provides
certainty for the Syndicate with regard to claims balances but the cost of concluding the Syndicate’s business within
the long-term business provision remains Management’s best estimate as at the balance sheet date.
The amount included in respect of IBNR is based on statistical techniques of estimation applied by the Syndicate’s
in-house actuaries. These techniques generally involve projecting from past experience the development of claims
over time to estimate the likely ultimate claims to be experienced and for more recent underwriting years, having
regard to variations in business accepted and the underlying terms and conditions. The provision for claims also
includes amounts in respect of internal and external claims handling costs as well as the expected future costs in
concluding the business of the Syndicate. For the most recent years, estimates may be based in part on output
from rating and other models of business accepted and assessments of underwriting conditions.
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 0044 Annual Report & Accounts 31 December 2025
Page 17 of 35
In arriving at the level of claims provisions a margin may be applied over and above the actuarial best estimate in
line with the Syndicate’s Reserving Policy to address the risk of un-modelled claims development.
Further information about the risk that the provision for claims outstanding could be materially different from the
ultimate cost of claims settlement is included in note 7.
3.
Significant accounting policies
The following principal accounting policies have been applied consistently in accounting for items which are
considered material in relation to the Syndicate’s financial statements.
Gross premiums written
Premiums, including reinsurance premiums, are accounted for on inception. Premiums are shown gross of
brokerage payable and exclude taxes and duties levied on them.
Single premium contracts consist of those contracts under which there is no expectation of continuing premiums
being paid at regular intervals. Additional single premiums paid in respect of existing individual contracts are also
included within single premiums.
Portfolio premiums received are included within written premiums with all life premiums earned once written. RITC
premiums received from the transaction of inwards external RITC’s are fully written in the year in which they incept.
An assessment is performed at the date of acquisition of the fair value of the insurance liabilities assumed and
insurance assets acquired in line with the Syndicate’s accounting policies. Any adjustments to the fair value arising
are not capitalised but are recorded within the technical account as required by Statutory Instrument No 1950 of
2008, The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 (Lloyd’s
Regulations 2008).
Outwards reinsurance premiums
Written outwards reinsurance premiums comprise the total premiums payable for contracts entered into during the
period and are recognised on the date on which the policy incepts. Premiums include any adjustments arising in
the accounting period in respect of reinsurance contracts incepting in prior accounting periods.
Under some policies, reinsurance premiums payable are adjusted retrospectively in the light of claims experience.
Where written premiums are subject to a re-measurement retrospectively, adjusted premiums are recognised as
soon as there is an obligation to the reinsurer.
Outwards reinsurance premiums are accounted for and earned in the same accounting period as the premiums for
the related direct or inwards business being reinsured within the parameters of the reinsurance contract terms.
Long-term business provision
The long term business provision is determined following an annual investigation of the long term fund in
accordance with the requirements of EU Directive 92/96/EEC, under which certain contingency and other reserves
required by insurance company regulations are excluded from the long term business provision. The basis of
calculation is as follows:
Individual Life - Reserves are calculated using the gross premium method. The principle for the calculation of the
reserve is, for each policy separately, to calculate the discounted value of expected future claims less the
discounted value of expected future premium as received by the Syndicate (i.e. net of commission) plus an
allowance for expenses.
Group Life (including schemes) - The reserves are calculated as the unexpired proportion at the valuation date of
the premium received net of commission. Additional reserves are included to allow for claims that have been
incurred but not reported (IBNR) based on a reporting delay of eight to twelve weeks. Reserves are also held for
some policies that have expired, but claims may still arise in the future due to reporting delays. The Syndicate
actuary is satisfied that this method of reserving is prudent.
The provision for claims also includes amounts in respect of claims handling costs and a run-off provision. The run-
off provision has been calculated as Management’s best estimate of the expected future developments in finalising
the Syndicate’s liabilities.
Accordingly, the most critical assumptions as regards claims provisions are that the past is a reasonable predictor
of the likely level of claims development, that the outstanding claims estimates are reasonable and that appropriate
provision has been incorporated for the run-off of exposures to ultimate, particularly given the decreasing volume
of exposures as the portfolio continues to run off.
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 0044 Annual Report & Accounts 31 December 2025
Page 18 of 35
The assessment of these provisions is usually the most subjective aspect of an insurer’s accounts and may result
in greater uncertainty within an insurer’s accounts than within those of many other businesses. Long term insurance
provisions, together with related reinsurance recoveries, are established on the basis of current information. Such
provisions are subject to subsequent reassessment as changes to underlying factors such as mortality occur.
These factors are discussed in more detail in note 6.
Net operating expenses (including acquisition costs)
Net operating expenses include acquisition costs and amounts charged to the member through the Syndicate.
Certain contracts between the Syndicate and its producing agents and brokers include the requirement to pay
overrider commissions based on the volume of business produced on the Syndicate’s behalf. Amounts in relation
to this and other commissions are accrued and earned in line with the premium to which they relate and classified
as acquisition costs.
Acquisition costs comprise costs arising from the conclusion of insurance contracts and include direct costs such
as brokerage and commission. Acquisition costs incurred and not deferred are included in net operating expenses.
Foreign currencies
Transactions in foreign currencies are translated to the functional currency using the exchange rates at the date of
the transactions. The Syndicate’s monetary assets and liabilities denominated in foreign currencies are translated
into the functional currency at the rates of exchange at the Statement of Financial Position date. Non-monetary
assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the
functional currency at the exchange rate at the date that the fair value was determined. Non-monetary items
denominated in foreign currencies that are measured at historic cost are translated to the functional currency using
the exchange rate at the date of the transaction. Under FRS 103, insurance assets and insurance liabilities are
deemed monetary items.
Differences arising on translation of foreign currency amounts relating to the insurance operations of the Syndicate
are included in the technical account in line with the requirements for Life accounting.
Financial assets and liabilities
The Syndicate has elected to apply the provisions of Section 11 (Basic Financial Instruments) and Section 12
(Other Financial Instruments Issues) of FRS 102 for the treatment and disclosure of financial assets and liabilities.
The Syndicate’s investments comprise cash and cash equivalents. The Syndicate does not invest in derivative
financial instruments.
Recognition:
Financial assets and liabilities are recognised when the Syndicate becomes a party to the contractual provisions
of the instrument. Financial liabilities and equity instruments are classified according to the substance of the
contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in
the assets of an undertaking after deducting all of its liabilities. The Syndicate does not hold any equity instruments.
Initial Measurement:
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for
those financial assets classified as at fair value through profit or loss, which are initially measured at fair value
(which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing
transaction. If an arrangement constitutes a finance transaction, the financial asset or financial liability is measured
at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
The Syndicate was not party to any financing transactions during the period.
Subsequent measurement:
All debt instruments are measured at fair value through the profit or loss.
Realised and unrealised gains and losses arising from changes in the fair value of investments are initially
presented in the non-technical account in the period in which they arise. Dividend and interest income is recognised
when earned. Investment management and other related expenses are recognised when incurred. The overall
investment return is subsequently transferred to the Technical Account to reflect the investment return on funds
supporting the underwriting business.
Derecognition of financial assets and liabilities:
Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial
asset expire or are settled, b) the Syndicate transfers to another party substantially all of the risks and rewards of
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 0044 Annual Report & Accounts 31 December 2025
Page 19 of 35
ownership of the financial asset, or c) the Syndicate, despite having retained some significant risks and rewards of
ownership, has transferred control of the asset to another party and the other party has the practical ability to sell
the asset in its entirety to an unrelated third party and is able to exercise that ability unilaterally and without needing
to impose additional restrictions on the transfer.
Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or
expires.
Fair value measurement:
The best evidence of fair value is a quoted price for an identical asset in an active market. When quoted prices are
unavailable, the price of a recent transaction for an identical asset provides evidence of fair value as long as there
has not been a significant change in economic circumstances or a significant lapse of time since the transaction
took place. If the market for the asset is not active and recent transactions of an identical asset on their own are
not a good estimate of fair value, the Managing Agent estimates the fair value by using a valuation technique.
Inputs are used in applying the various valuation techniques and broadly refer to the assumptions that market
participants use to make valuation decisions, including assumptions about risk. Inputs may include price
information, volatility statistics, yield curves, credit spreads, liquidity statistics and other factors.
The use of different valuation techniques could lead to different estimates of fair value.
FRS 102 section 34.22 provides the fair value hierarchy criteria upon which the financial instruments should be
categorised, as defined below. A fair value measurement is categorised in its entirety on the basis of the lowest
level input that is significant to the fair value measurement in its entirety.
•
Level 1: The unadjusted quoted price in an active market for identical assets or liabilities that the entity
can access at the measurement date.
•
Level 2: Inputs other than quoted prices included within Level 1 that are observable (i.e. developed using
market data) for the asset or liability, either directly or indirectly.
•
Level 3: Inputs are unobservable (i.e. for which market data is unavailable) for the asset or liability.
Impairment of financial instruments measured at amortised cost or cost:
For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s
carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original
effective interest rate.
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s
carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at
the reporting date.
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event
occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An
impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable
value does not lead to a revised carrying amount higher than the carrying value had no impairment been
recognised. The amount of the reversal is recognised in the income statement immediately.
Cash and cash equivalents
Cash and cash equivalents comprise cash balances and call deposits with maturities of three months or less from
the acquisition date that are subject to an insignificant risk of changes in fair value, and are used by the Syndicate
in the management of its short-term commitments.
Investment return
Investment return comprises investment income, realised investment gains and losses and movements in
unrealised gains and losses, net of investment expenses and charges and interest.
Realised gains and losses on investments carried at market value are calculated as the difference between sale
proceeds and purchase price. Unrealised gains and losses on investments represent the difference between the
valuation at the balance sheet date and their valuation at the previous balance sheet date, or purchase price, if
acquired during the year, together with the reversal of unrealised gains and losses recognised in earlier accounting
periods in respect of investment disposals in the current period.
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 0044 Annual Report & Accounts 31 December 2025
Page 20 of 35
Taxation
Under Schedule 19 of the Finance Act 1993 Managing Agents are not required to deduct basic rate income tax
from trading income. In addition, all UK basic rate income tax (currently at 20%) deducted from syndicate
investment income is recoverable by the Managing Agent and consequently the distribution made to the member
is gross of tax. Capital appreciation falls within trading income and is also distributed gross of tax.
No provision has been made for any United States Federal Income Tax payable on underwriting results or
investment earnings. Any payments on account made by the Syndicate during the year have been included in the
statement of financial position under the heading ‘other debtors’.
No provision has been made for any other overseas tax payable by the members on underwriting results.
Retirement benefit scheme costs
The Canopius Group service company operates a defined contribution retirement benefit scheme for all qualifying
employees. Pension contributions relating to Managing Agency staff working on behalf of the Syndicate are
charged to the Syndicate and included within net operating expenses.
4.
Risk and capital management
The Syndicate’s activities expose the Managing Agent to a number of key risks which have the potential to affect
the Managing Agent’s ability to achieve its and the Syndicate’s objectives. The Managing Agent’s Risk Committee
oversees the operation of the Syndicate’s risk management framework and reviews and monitors the management
of the risks to which the Syndicate is exposed. Risk management policies are established to identify and analyse
the risks faced by the Syndicate, to set appropriate risk limits and controls and to monitor risks and adherence to
limits.
The principal risks and uncertainties facing the Syndicate are as follows:
Insurance Risk
i.
Management of Insurance Risk
As the syndicate is in run-off, the driver of Insurance risk is that estimates of future claims prove to be insufficient
(reserving risk).
The Syndicate makes use of full reinsurance to eliminate the risk of incurring losses linked to one or multiple events.
ii.
Concentration of Insurance Risk
The Syndicate’s exposure to gross insurance risk is as shown by the following table which provides an analysis of
the geographical breakdown of gross written premiums by destination. The 100% quota share arrangement
eliminates the net insurance risk.
Territory
2025
£’000
2024
£’000
United Kingdom
(51 )
European Union Member States
(73 )
Rest of the world
(32 )
Total
(156 )
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 0044 Annual Report & Accounts 31 December 2025
Page 21 of 35
iii
Sensitivity to Insurance Risk
The liabilities established could be significantly lower or higher than the ultimate cost of settling the claims arising
from developments in case reserving for large losses or from changes in the level of attritional losses. A five per
cent increase or decrease in the ultimate cost of settling gross claims arising is considered to be reasonably
possible at the reporting date and would have the following approximate effect on the result of the Syndicate.
Sensitivities as at 31 December
2025
+5.0%
-5.0%
£000
£000
Claims outstanding – gross of reinsurance
(161 )
Claims outstanding – net of reinsurance
Sensitivities as at 31 December
2024
+5.0%
-5.0%
£000
£000
Claims outstanding – gross of reinsurance
(294 )
Claims outstanding – net of reinsurance
iv.
Claims development tables
The development of insurance liabilities provides a measure of the Syndicate’s ability to estimate the ultimate value
of claims. The following tables show the estimates of cumulative incurred claims, including both claims notified and
IBNR for each successive underwriting year at each reporting date, together with cumulative payments to date,
related direct and indirect claims handling costs and, for the latest calendar year, the run-off provision representing
Management’s estimated future developments to be incurred in finalising the Syndicate’s liabilities. Balances have
been translated at exchange rates prevailing at 31 December 2025 in all cases. The entity chose not to disclose
information about claims development that occurred earlier than five years before the end of the first financial year
in which FRS 103 is applied in line with a transitional provision (FRS 103.6.3).
Gross basis as at 31 December 2025:
Pure underwriting year
2016
£’000
2017
£’000
2018
£’000
Total
£’000
Estimate of gross claims
At end of underwriting year
one year later
two years later
three years later
four years later
five years later
six years later
seven years later
eight years later
nine years later
Gross ultimate claims on premium earned
to date
Less Gross claims paid
(5,969 )
(13,358 )
(13,934 )
(33,261 )
Estimate of gross claims reserves
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 0044 Annual Report & Accounts 31 December 2025
Page 22 of 35
Net basis as at 31 December 2025:
Pure underwriting year
2016
£’000
2017
£’000
2018
£’000
Total
£’000
Estimate of gross claims
At end of underwriting year
one year later
two years later
three years later
four years later
five years later
six years later
seven years later
eight years later
nine years later
Net ultimate claims on premium earned to
date
Less net claims paid
(5,484 )
(11,580 )
(9,137 )
(26,201 )
Estimate of net claims reserves
Investment risk
Given the need to maintain liquidity and the relatively small amount of funds available the Syndicate’s funds are
held in cash and collective investment pools. The investment risk is low and related to market interest rates.
Financial Risk
The Syndicate’s key financial risk is that the proceeds from its assets are not sufficient to fund the obligations
arising from the costs incurred in maintaining the Syndicate’s operations.
An analysis of the Syndicate's exposure to the significant components of financial risk is given below split between:
(i)
Market risk (including interest rate risk);
(ii)
Credit risk (including Fair Value Hierarchy);
(iii) Currency risk; and
(iv) Liquidity risk.
i.
Market risk
Market risk arises from fluctuations in values of, or income from, assets or in interest or exchange rates and is
derived primarily from the Syndicate’s investment asset portfolio and from currency exposures. The Board has
agreed an investment strategy commensurate with the Syndicate’s risk appetite.
Interest rate risk
CMA manages sensitivity to market conditions by reference to interest rate risk. Interest rate risk arises primarily
from the Syndicate’s financial investments, cash and overseas deposits. The risk of change in the fair value of
these assets is managed by solely investing in short-duration financial investments and cash and cash equivalents.
An analysis of the Syndicate’s sensitivity to interest rate changes on the result and net assets of the Syndicate is
presented in the table below.
Impact on result before tax
Impact on member’s balance
2025
£’000
2024
£’000
2025
£’000
2024
£’000
Interest rate risk
+ 50 basis points shift in yield curves
(5 )
(5 )
(5 )
(5 )
- 50 basis points shift in yield curves
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 0044 Annual Report & Accounts 31 December 2025
Page 23 of 35
ii.
Credit risk
Credit risk is the risk that the Syndicate becomes exposed to loss if a counterparty fails to perform its contractual
obligations. Credit risk could, therefore, impact upon the Syndicate’s ability to meet its claims as they fall due. The
Syndicate has in place policies and procedures designed to manage its credit risk exposures. The Syndicate is
exposed to credit risk in respect of the following:
•
Investment pools
•
Overseas deposits;
•
Cash at bank and deposits with credit institutions;
•
Reinsurers’ share of insurance liabilities;
•
Amounts due from reinsurers in respect of settled claims; and
•
Amounts due from insurance intermediaries.
The Syndicate limits the amount of cash and deposits that can be held with a single counterparty. Overseas
deposits are managed centrally by Lloyd’s (Note 15)
The Syndicate’s exposure to reinsurance counterparties is managed by CMA’s Reinsurance Security Forum which
establishes standards applicable to all reinsurers and the reinsurance department which monitors the financial
status of reinsurance debtors.
The Syndicate’s exposure to intermediaries is monitored as part of the credit control processes. All intermediaries
must meet minimum requirements established by the Syndicate. The credit ratings and payment histories of
intermediaries are monitored on a regular basis.
Debtors arising out of direct operations are comprised of pipeline premiums, balances relating to outstanding
receipts from Lloyd’s Central Accounting (‘LCA’) and amounts for business settled outside of Xchanging (‘settled
direct’). By their nature, it is not possible to classify these balances by credit rating.
An analysis of the carrying amounts of neither past due nor impaired debtors is presented in the table below.
Debtors arising from insurance operations
2025
£’000
2024
£’000
Past due but not impaired financial assets:
Past due by:
1 to 90 days
-
-
91 to 180 days
-
-
More than 180 days
-
-
Past due but not impaired financial assets
-
-
Impaired financial assets
-
-
Neither past due nor impaired financial assets
594
989
Net carrying value
594
989
As at 31 December 2025
Neither past due
nor impaired
assets
£’000
Past due but
not impaired
assets
£’000
Total
£’000
Participation in investment pools
-
Reinsurers’ share of outstanding claims
-
Debtors arising out of direct insurance operations
-
Other debtors
-
Cash at bank and in hand
-
Deposits as other assets
12
12
Total
-
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 0044 Annual Report & Accounts 31 December 2025
Page 24 of 35
As at 31 December 2024
Neither past due
nor impaired
assets
£’000
Past due but
not impaired
assets
£’000
Total
£’000
Participation in investment pools
-
Reinsurers’ share of outstanding claims
-
Debtors arising out of direct insurance operations
-
Other debtors
-
Cash at bank and in hand
-
Deposits as other assets
93
-
93
Total
-
An analysis of the Syndicate's major exposure to counterparty credit risk and credit risk with the investment funds
and cash, based on Standard & Poor's or equivalent rating, is presented below. These assets are neither overdue
nor impaired.
The credit rating of the assets within the statement of financial position is as follows:
As at 31 December 2025
AAA
£’000
AA
£’000
A
£’000
BBB
£’000
Not rated
£’000
Total
£’000
Financial investments:
Participation in investment pools
Reinsurers’ share of outstanding claims
Debtors arising out of direct insurance
operations
Cash at bank and in hand
Other debtors
Other assets
1
1
1
-
9
12
Total
As at 31 December 2024
AAA
£’000
AA
£’000
A
£’000
BBB
£’000
Not rated
£’000
Total
£’000
Financial investments:
Participation in investment pools
Reinsurers’ share of outstanding claims
Debtors arising out of direct insurance
operations
Cash at bank and in hand
Other debtors
Other assets
15
64
5
1
8
93
Total
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 0044 Annual Report & Accounts 31 December 2025
Page 25 of 35
Fair Value Hierarchy
The Syndicate has classified its financial instruments in accordance with the requirements of paragraph 34.42 to
the March 2018 amendment to FRS102 and has adopted an approach consistent with IFRS13, Fair Value
Measurement. The fair value hierarchy classifies financial instruments into Level 1 to 3 based on the significance
of the inputs used in measuring their fair value.
The levels within the fair value hierarchy are defined as follows:
Level 1
-
Based on unadjusted quoted price in an active market for identical assets or liabilities that
the entity can access at the measurement.
Level 2
-
Based on inputs other than quoted prices included within Level 1 that are observable (i.e.
developed using market data) for the asset or liability, either directly or indirectly.
Level 3
-
Where inputs are unobservable (i.e. for which market data is unavailable) for the asset or
liability.
The table below analyses financial instruments held at fair value in the Syndicate’s statement of financial position
at the reporting date by its level in the fair value hierarchy.
As at 31 December 2025
Level 1
Level 2
Level 3
Total
£’000
£’000
£’000
£’000
Participation in investment pools
Total Financial Investments
As at 31 December 2024
Level 1
Level 2
Level 3
Total
£’000
£’000
£’000
£’000
Participation in investment pools
Total Financial Investments
The participation in investment pools comprises the Lloyd’s American Trust Fund (LATF).
Currency risk
Policyholders’ assets are held in four Lloyd’s settlement currencies (Sterling, Euro, US dollars and Norwegian
Krone) which represent the Syndicate’s liabilities by currency. Its presentation currency is Sterling and, therefore,
foreign exchange risk also arises when non-Sterling profits are converted into Sterling.
CMA has a policy to mitigate foreign exchange risk and this policy is managed by the Finance team and overseen
by the Finance Forum.
The Syndicate is exposed to foreign exchange risk primarily with respect to the Sterling, US dollars and Euro. The
Syndicate mitigates this risk by endeavouring to match assets and liabilities in foreign currency.
Currency risk is limited to future net expenses, almost all GBP, cash held in EUR and cash equivalents held in USD
restricted fund accounts.
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 0044 Annual Report & Accounts 31 December 2025
Page 26 of 35
As at 31 December 2025
Sterling
£’000
Euro
£’000
US Dollar
£’000
Other
£’000
Total
£’000
Financial Investments
Reinsurers share of technical provisions
Debtors
Other assets
Total Assets
Technical provisions
(3,435 )
(166 )
(515 )
(1 )
(4,117 )
Creditors
(3,599 )
(1,930 )
Total Liabilities
(3,078 )
(3,765 )
(6,047 )
Total Capital and Reserves
(258 )
(1,559 )
(830 )
As at 31 December 2024
Sterling
£’000
Euro
£’000
US Dollar
£’000
Other
£’000
Total
£’000
Financial Investments
Reinsurers share of technical provisions
Debtors
Other assets
Total Assets
Technical provisions
(5,502 )
(387 )
(1,009 )
(111 )
(7,009 )
Creditors
(3,778 )
(2,387 )
Total Liabilities
(5,367 )
(4,165 )
(127 )
(9,396 )
Total Capital and Reserves
(1,686 )
(770 )
If the exchange rates of all non-GBP currencies moved by a foreseeable 10% either to the benefit or detriment of
the Syndicate at the same time, the impact on both the result for the year and the member’s balances would be
£55k (2024: £4k).
iii.
Liquidity risk
All valid claims must be paid as they fall due and, therefore, it is essential that the Syndicate maintains an
appropriate level of liquidity at all times. As a consequence, cash is managed closely by the Finance team. The
Syndicate is exposed to calls on its available cash resources, principally from claims arising from its insurance
activities and its ongoing expenses.
The Syndicate’s policy is to manage its liquidity position so that it can reasonably meet a significant individual or
market loss event. This means that the Syndicate maintains sufficient liquid assets, or assets that can be quickly
converted into liquid assets, without any significant capital loss, to meet estimated cash flow requirements.
The majority of the Syndicate’s investments are in highly liquid assets which could be converted into cash promptly
and at minimal expense. Cash and overseas deposits are generally bank deposits and money market funds.
The table below summarises the maturity profile of the Syndicate’s Statement of Financial Position based on the
estimated timing of claims payments and other undiscounted contractual obligations.
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 0044 Annual Report & Accounts 31 December 2025
Page 27 of 35
Undiscounted net cash flows
As at 31 December 2025
Total cash
flows
£’000
0-1 years
£’000
1-3 years
£’000
3-5 years
£’000
> 5 years
£’000
Participation in investment pools
561
561
-
-
-
Reinsurers’ share of technical provisions
3,215
2,990
225
-
-
Debtors arising out of insurance operations
594
594
-
-
-
Cash at bank and in hand
1,253
1,253
-
-
-
Other debtors
60
60
-
-
-
Other assets
12
12
-
-
-
Total assets
5,695
5,470
225
-
-
Technical provisions
Creditors
Total liabilities
Net liabilities
(352)
(289)
(63)
-
-
Undiscounted net cash flows
As at 31 December 2024
Total cash
flows
£’000
0-1 years
£’000
1-3 years
£’000
3-5 years
£’000
> 5 years
£’000
Participation in investment pools
607
607
-
-
-
Reinsurers’ share of technical provisions
5,882
5,263
427
192
-
Debtors arising out of insurance operations
989
989
-
-
-
Cash at bank and in hand
1,725
1,725
-
-
-
Other debtors
60
60
-
-
-
Other assets
93
93
Total assets
9,356
8,737
427
192
-
Technical provisions
Creditors
Total liabilities
Net liabilities
(40)
79
(82)
(37)
-
Operational risk and Regulatory risk
This is the risk that errors caused by people, processes, systems or external events lead to losses to the Syndicate.
CMA seeks to manage this risk through the use of procedures manuals and reviews of systems and controls, and
a structured programme of testing of processes and systems by internal audit. The internal audit process is
designed to provide Management and the Board, through its Audit Committee, with reasonable assurance that the
controls and procedures are able to contain the risks within acceptable limits.
Regulatory risk is the risk that the Syndicate fails to meet the regulatory requirements of the Prudential Regulatory
Authority (“PRA”), the Financial Conduct Authority (“FCA”), Lloyd’s and those of overseas regulators in jurisdictions
where Lloyd’s syndicates are licensed to trade.
Regulatory risk is a key area of focus for the Risk and Compliance teams to ensure legislative and regulatory
changes are understood and observed.
Conduct Risk is the risk that customers experience poor outcomes in their engagement with CMA and is part of
Regulatory Risk. This risk applies to all of the Syndicate’s business but is particularly focused where the Syndicate
insures retail risks especially using delegated underwriting. CMA has a Conduct Oversight Forum and Risk
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 0044 Annual Report & Accounts 31 December 2025
Page 28 of 35
Committee which oversees its response to these requirements and operates a conduct framework designed to
ensure that appropriate outcomes are delivered to customers.
Supplementing and informing the assessment of risk in the categories identified above, Management receives
regular risk reports highlighting the material areas of risk, uncertainty and comparison with risk appetite as well as
risk events, near misses and emerging risks.
Capital management (excluding Funds at Lloyd’s)
The Managing Agent’s objectives in managing the capital of the Syndicate, consistent with the risk profile and the
regulatory and market requirements of its business are:
•
To match the profile of assets and liabilities, taking account of the risks inherent in the business;
•
To satisfy the requirements of the policyholders, regulators and rating agencies; and
•
To manage exposure to movements in exchange rates.
Capital framework at Lloyd’s
The Society of Lloyd’s (Lloyd’s) is a regulated undertaking and subject to the supervision of the Prudential
Regulation Authority (PRA) under the Financial Services and Markets Act 2000 and in accordance with the
Solvency II framework. Within this supervisory framework, Lloyd’s applies capital requirements at member level
and centrally to ensure that Lloyd’s complies with Solvency II requirements, and beyond that to meet its own
financial strength, licence and ratings objectives.
Although, as described below, Lloyd’s capital setting processes use a capital requirement set at syndicate level as
a starting point, the requirement to meet Solvency II and Lloyd’s capital requirements apply at overall and member
level only respectively, not at syndicate level. Accordingly, the capital requirement in respect of the Syndicate is
not disclosed in these financial statements.
Lloyd’s capital setting process
In order to meet Lloyd’s requirements, each syndicate is required to calculate its Solvency Capital Requirement
(SCR) for the prospective underwriting year. This amount must be sufficient to cover a 1 in 200 year loss, reflecting
uncertainty in the ultimate run-off of underwriting liabilities (SCR to ultimate). The Syndicate must also calculate its
SCR at the same confidence level but reflecting uncertainty over a one year time horizon (one year SCR) for Lloyd’s
to use in meeting Solvency II requirements. The SCRs of each syndicate are subject to review by Lloyd’s and
approval by the Lloyd’s Capital and Planning Group.
A syndicate may be comprised of one or more underwriting members of Lloyd’s. Each member is liable for its own
share of underwriting liabilities on the Syndicates on which it participates though not other members’ shares.
Accordingly, the capital requirement that Lloyd’s sets for each member operates on a similar basis. Each member’s
SCR is therefore determined by the sum of the member’s shares of the Syndicates’ SCR to ultimate. Where a
member participates on more than one syndicate, a credit for diversification is provided to reflect the spread of risk,
but consistent with determining an SCR which reflects the capital requirement to cover a 1 in 200 loss to ultimate
for that member. Over and above this, Lloyd’s applies a capital uplift to the member’s capital requirement, the
combination of both is known as the Economic Capital Assessment (“ECA”). The purpose of this uplift, which is a
Lloyd’s not a Solvency II requirement, is to meet Lloyd’s financial strength, licence and ratings objectives. The
capital uplift was 35% of the member’s SCR to ultimate.
Provision of capital by members
Each member may provide capital to meet its ECA either by assets held in trust by Lloyd’s specifically for that
member (Funds at Lloyd’s), assets held and managed within a syndicate (Funds in Syndicate), or as the member’s
share of the members’ balances on each syndicate on which it participates. Accordingly, all of the assets less
liabilities of the Syndicate, as represented in the members’ balances reported on the Statement of Financial Position
on pages 13 to 14, represent resources available to meet members’ and Lloyd’s capital requirements.
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 0044 Annual Report & Accounts 31 December 2025
Page 29 of 35
5.
Foreign exchange rates
The main currency rates of exchange are shown below:
2025
2024
Start of Period
Rate
End of Period
Rate
Average Rate
Start of Period
Rate
End of Period
Rate
Average Rate
Sterling
US dollar
Euro
Swiss Francs
Norwegian Krone
6.
Analysis of underwriting result
An analysis of the technical account result by business class before investment return is set out below:
2025
2024
Direct Insurance
Note
£’000
£’000
Scheme
(a)
30
103
Individual
(188)
181
Group
(a)
2
8
Gross premium written – Life
(b)
(156 )
Total Direct Insurance
(156 )
Gross premiums earned
(156 )
Gross claims incurred
Gross operating expenses
(550 )
(714 )
Reinsurance balance
(c)
(2,317 )
(1,161 )
Total – Life
(317 )
Notes:
(a)
Group business written through a coverholder is included in the above table as scheme business.
(b)
All premiums written are in respect of contracts concluded in the UK and are in respect of term life business and ancillary covers. An
analysis of the geographical breakdown of written premiums by destination is included within note 4.
(c)
The reinsurance balance comprises reinsurance recoveries less outward reinsurance premiums. All gross premiums written by the
Syndicate are in respect of direct business.
Total commissions on direct business for the year amounted to:
2025
2024
£'000
£'000
Total commission for direct insurance business
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 0044 Annual Report & Accounts 31 December 2025
Page 30 of 35
7.
Technical provisions
The Syndicate has applied a similar approach to establishing technical provisions for claims outstanding reserves
and reinsurer’s share thereof, as included within the Long-Term Business Provision, to that employed at the end
of the previous year.
2025
2024
LTBP Gross
provisions
LTBP
Reinsurer’s
share
Net
LTBP Gross
provisions
LTBP
Reinsurer’s
share
Net
£’000
£’000
£’000
£’000
£’000
£’000
Long term business provisions
Balance at 1 January
(5,685 )
(6,833 )
Movements in provision
(2,734 )
(225 )
(1,426 )
(282 )
Foreign exchange movements
(49 )
(4 )
Balance at 31 December
(3,127 )
(5,685 )
Notes:
Gross
Movements in provision = Sum of Gross Claims incurred + Movement in Gross LTBP
RI Assets
Movements in provision = Sum of Ceded Claims incurred + Movement in Ceded LTBP
The basis of calculation of the long-term business provisions is as follows:
The long term business provision of individual life business is calculated based on the discounted value of expected
future claims less discounted value of expected future premiums (net of commissions) plus allowance for expenses.
The technical provisions have been calculated on actuarial bases considered most appropriate by the Board.
The portfolio of the Syndicate is too small to carry out a quantitative analysis of mortality experience. The
assumptions used are based on standard industry tables, but with additional provision for uncertainty to ensure
that the reserving basis remains prudent.
The principal assumptions underlying the calculation of the long term business provision are as follows:
2025
2024
Mortality table
TMN00/TFN00 for non-smokers,
TMS00/TFS00 for smokers,
TMC00/TFC00 where status unknown 5
year select.
TMN00/TFN00 for non-smokers,
TMS00/TFS00 for smokers,
TMC00/TFC00 where status unknown 5
year select.
Mortality rating
160% for Italian binder,
140% for Think Money,
150% for Leadenhall Polska,
200% for Pulse.
160% for Italian binder,
140% for Think Money,
150% for Leadenhall Polska,
200% for Pulse.
Discount rate
Nil
Nil
Allowance for
negative reserves:
100%
100%
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 0044 Annual Report & Accounts 31 December 2025
Page 31 of 35
As the assets are all in cash, and we have used a zero discount rate, we have not considered it necessary to hold
any additional resilience reserve. An increase in the discount rate would not impact the discounting on the long
term business provision, as a zero per cent investment income is assumed and therefore no discounting is applied.
If a lower mortality rate were assumed to apply, the long term business provision would decrease. A 5% reduction
in mortality would not decrease the liability materially.
The level of expenses included in the valuation is based on an assessment of the cost of running off the
Syndicate’s existing business.
8.
Net operating expenses
2025
2024
£’000
£’000
Acquisition costs – brokerage and commissions
Administrative expenses
Loss/(gain) on foreign exchange
(103 )
Gross operating expenses – technical account
550
715
Reinsurance commissions and profit participation
(8 )
(412 )
Net operating expenses – technical account
Administrative expenses include:
Auditors’ remuneration:
2025
2024
£’000
£’000
Fees payable to the Syndicate’s auditor for the audit of these financial
statements
Fees payable to the Syndicate’s auditor and its associates in respect of
other services pursuant to legislation
96
126
9.
Staff numbers and costs
All staff are employed by the Canopius Group service company, Canopius Services Limited. The average number
of persons working for the Syndicate during the year, analysed by category, was as follows:
2025
2024
Administration and finance
Technical Support
1
1
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 0044 Annual Report & Accounts 31 December 2025
Page 32 of 35
The following amounts were recharged to the Syndicate in respect of payroll costs:
2025
2024
£’000
£’000
Wages and salaries
Social security costs
Other pension costs
10.
Key management personnel compensation
Following cessation of the Syndicate, the Syndicate was charged a proportion of expense attributable to a Run-Off
Manager.
Run-Off
Manager
2025
Run-Off
Manager
2024
£’000
£’000
Emoluments
4
3
Contributions to defined contribution pension schemes
-
-
Total Expense Run-Off Manager
No remuneration was charged to the Syndicate in respect of CMA directors (2024: £nil)
11.
Investment return
2025
2024
£’000
£’000
Investment income:
Total investment return transferred to the technical account from the non-
technical account
The total income, expenses, net gains or losses, including changes in fair value, recognised on all financial
assets, including cash at bank, and financial liabilities comprises the following:
2025
2024
£’000
£’000
Financial assets at fair value through profit or loss
Interest and similar income on cash at bank
Total investment return
12.
Financial investments
The carrying values of the Syndicate’s financial assets are summarised by category below:
Carrying Value
Cost Value
2025
2024
2025
2024
£'000
£'000
£'000
£'000
Financial assets
Participation in Investment pools
Total Financial Investments
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 0044 Annual Report & Accounts 31 December 2025
Page 33 of 35
The amount ascribable to listed investments is £nil (2024: £nil)
The table below presents an analysis of financial investments by their measured classification.
2025
2024
£'000
£'000
Financial assets measured at fair value through profit and loss
Total Financial Investments
All investments are measured at fair value through profit or loss. The Syndicate did not hold any derivative
financial instruments during the year (2024: none). The Syndicate does not enter into or trade instruments for
speculative purposes.
13.
Debtors arising out of direct insurance operations
2025
2024
£’000
£’000
Intermediaries
Due within one year
14.
Other debtors
2025
2024
£’000
£’000
Tax debtor
Intercompany debtor
15.
Other assets
Other assets include overseas deposits lodged as a condition of conducting underwriting business in certain
countries and are managed by Lloyd’s centrally or by investment managers on their behalf. Overseas deposits
have not been included on the statement of financial position within investments or cash at bank or in hand as they
are not under the direct control of the Managing Agency.
2025
2024
£'000
£'000
Other assets
12
93
Other assets
12
93
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 0044 Annual Report & Accounts 31 December 2025
Page 34 of 35
16.
Cash and cash equivalents
2025
2024
£’000
£’000
Cash at bank and in hand
Short term deposits
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.
17.
Creditors arising out of reinsurance operations
2025
2024
£’000
£’000
Intermediaries
Due within one year
18.
Other creditors
2025
2024
£’000
£’000
Other creditors
19.
Distribution and open years of account
See below the current reporting year result total comprehensive (loss)/profit of the year of account remaining open
after the three-year period:
2025
£’000
2024
£’000
2018
(312 )
20.
Post balance sheet events
There are no material post balance sheet events that require disclosure in the annual report and accounts.
21.
Pension
CSL operates defined contribution pension schemes for the employees of CSL, including those working on the
Syndicate’s affairs during the year. The assets of the schemes are held separately from those of CSL in
independently administered funds. The amounts recharged to the Syndicate from CSL in respect of pensions are
disclosed in Note 8.
22.
Related parties
Lloyd’s market regulations require that a Managing Agent be responsible for engaging underwriting staff and
managing the affairs of each syndicate at Lloyd’s on behalf of the syndicate members. The Managing Agent of the
Syndicate is Canopius Managing Agents Limited (‘CMA’).
Throughout 2025 the expenses incurred in operating the Syndicate were incurred by the Canopius Group service
company and recharged under an intragroup service agreement with CMA on a basis that reflected the Syndicate's
usage of resources.
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 0044 Annual Report & Accounts 31 December 2025
Page 35 of 35
Group recharges are charged on a cost basis and predominantly represent recharges of staff costs for employees
working on syndicate business as well as associated other administrative expenses including accommodation,
professional fees and information technology. These recharges, included within amounts disclosed as net operating
expenses, acquisition costs and claims incurred were as follows:
2025
£’000
2024
£’000
Canopius Services Limited (‘CSL’)
320
380
Total expenses recharged
320
380
The following amounts were outstanding at 31 December 2025 and 31 December 2024:
2025
£’000
2024
£’000
Due from CSL
(60)
(57)
Total amount outstanding in relation to group recharges
(60)
(57)
CMA and CSL are both 100% subsidiaries of Canopius Holdings UK Limited (‘CHUKL’).
Member’s expenses, being agent’s fees and profit commission payable to the Managing Agent, and subscriptions
and central fund contributions payable to Lloyd’s, are charged on an underwriting year of account, rather than a
calendar year basis. As the Syndicate ceased underwriting at the end of 2018, no managing agent’s fee was
charged by CMA in 2025 (2024: £nil).
Syndicate capital
Syndicate 0044’s entire capital is provided by AmTrust Corporate Member Two Limited, a subsidiary of AmTrust
Lloyd’s Holdings Limited, an intermediate parent company of ASL.
Directors’ interests
None of the directors or the run-off manager participate on the Syndicate.
23.
Immediate and ultimate parent undertaking and controlling party
As at 31 December 2025, Syndicate 0044 was managed by CMA and CMA’s immediate UK parent is CHUKL,
which is registered in England and Wales. CHUKL is part of CGL which is registered in Jersey.
The ultimate controlling parties of CGL are CCP Holdings GP (Cayman) Limited, CCP III Cayman GP Limited and
CCP III SBS Cayman GP Limited.
24.
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 a member is required to maintain is determined by CMA and Lloyd’s based on compliance
with PRA requirements. The determination of the FAL requirement has regard to a number of factors including
the nature and amount of insurance contracts to be underwritten by the member and the assessment of the
reserving risk in respect of business that has been underwritten. Since the assets in FAL are not owned by the
syndicate, no amount has been shown in these financial statements by way of such capital resources. However,
the managing agent is able to make a call on the members' FAL to meet liquidity requirements or to settle losses.