QBE SYNDICATE 2999
ANNUAL REPORT 0 31 DECEMBER 2025
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QBE SYNDICATE 2999
ANNUAL REPORT 1 31 DECEMBER 2025
Annual Report
QBE Syndicate 2999
QBE SYNDICATE 2999
ANNUAL REPORT 1 31 DECEMBER 2025
ANNUAL REPORT
for the year ended 31 December 2025
Contents Page
Managing Agency - corporate information 2
Strategic report 3
Report of the Directors of the Managing Agent 15
Independent Auditors Report 17
Profit and loss account - Technical account - General business 20
Profit and loss account - Non-technical account 21
Statement of changes in members' balance 22
Balance sheet 23
Statement of cash flows 25
Notes to the annual accounts 26
QBE SYNDICATE 2999
ANNUAL REPORT 2 31 DECEMBER 2025
MANAGING AGENCY – CORPORATE INFORMATION
Directors
C A Brown*
C G L M Fresneau
J R Harris
S Maddock*
Sir N K Skeoch*
R C Stone
N J D Terry
TC Wade*
*Non-Executive Director
Former Directors who served during the year and prior to date of signing
C T Killourhy Resigned on 31 December 2025
Company secretary
A J Smith
Registered office
30 Fenchurch Street
London
EC3M 3BD
Independent auditors
PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
7 More London Riverside
London
SE1 2RT
QBE SYNDICATE 2999
ANNUAL REPORT 3 31 DECEMBER 2025
STRATEGIC REPORT
The Directors of QBE Underwriting Limited (‘the Company’ or ‘QUL’), the Managing Agent for QBE Syndicate 2999
(‘the Syndicate’), present their Strategic Report and audited annual accounts for the Syndicate for the year ended 31
December 2025.
Principal Activities
The Syndicate was headed by Christopher Killourhy, Managing Director, QBE Re (the Global Reinsurance Division of
QBE) and Kevin Shallow, Executive Director of International Markets as Joint Active Underwriters up to 31 December
2025. On 1 January 2026, Nicholas Hankin, Managing Director, QBE Re, was appointed as Joint Active Underwriter to
replace Christopher Killourhy, following receipt of approval from the Society of Lloyd’s (‘Lloyd’s’).
The Syndicate forms an integral part of the QBE European Operations Division (‘QBE EO’) of QBE Insurance Group
Limited (‘QBE Group’).
The four trading units for the syndicate for 2025 are as follows:
Reinsurance
This account totals approximately 39% of overall gross written premium and encompasses reinsurance risks in property,
aviation, casualty, personal accident and marine.
Marine and Energy
This account totals approximately 10% of overall gross written premium and encompasses risks in hull, energy, liability,
specie, cargo, war, ports and political risks.
Non-marine Property and Casualty
This account totals approximately 24% of overall gross written premium and encompasses risks in non-marine general
liability; professional and financial lines, motor, property direct and facultative and property binders.
Multi-line facility business
This account totals approximately 27% of overall gross written premium and encompasses all product lines in broker
facilities, Managing General Agents and Consortia.
Business review and future developments
The results of the Syndicate for the year are set out in the Profit and Loss Account on page 21 and Key Performance
Indicators on page 4.
QBE EO’s vision, consistent with the wider QBE Group, is to be “the most consistent and innovative risk partner” and is
guided by our purpose “QBE – enabling a more resilient future”, which appropriately reflects the ambitions of the QBE
Group and the world in which we live. Our Vision and Purpose provide a strong sense of direction for the future. To
achieve this, we are committed to 6 strategic priorities: portfolio optimisation, sustainable growth, bringing the enterprise
together, pace and efficiency, our people and customer. These 6 priorities ensure that we deliver on our vision and maintain
consistency across QBE EO.
With regards to Environmental, Social and Governance (‘ESG’), QBE Group has adopted the approach of an orderly and
inclusive transition to a net-zero economy. Our current focus is to continue building our capability to reduce insurance-
associated greenhouse gas emissions. This continual measurement and ongoing client conversations will inform our
underwriting considerations over time.
The Syndicate continues to monitor the war in Ukraine and the ongoing situation in the Middle East and any resulting
developments that may impact its assessment of potential exposures. The exposure to these issues identified to date are
not significant.
In an increasingly competitive marketplace for talent, QBE EO have continued to focus on establishing QBE as the
employer of choice and embedding the new global employee value proposition, ‘Why QBE’.
This year QBE EO won the Commercial Lines Insurer of the Year; Environmental, Social and Governance (‘ESG’),
Diversity, Equity and Inclusion Initiative of the Year; and Reinsurer of the Year at the British Insurance Awards.
We also won the Diversity, Equity and Inclusion Award at Modern Claims Awards and the Progress Award at the
Insurance Insider Honours.
QBE SYNDICATE 2999
ANNUAL REPORT 4 31 DECEMBER 2025
STRATEGIC REPORT (continued)
Key Performance Indicators and future developments
As an insurance entity, key performance indicators include Gross Written Premium, Net Earned Premium and Investment
return. Key ratios monitored by the Board include the Combined Operating Ratio, comprising the Claims Ratio and
Commission and Expense Ratio. The Ratios are net claims, expenses and commissions incurred for the year, expressed
as a percentage of the Net Earned Premium.
The table below details the Syndicate’s annually accounted result for the year ended 31 December 2025 relative to the
previous year:
2025 2024
Gross written premium £’000 2,845,565 2,536,209
Net earned premium £’000 2,041,543 1,781,336
Claims incurred, net of reinsurance £’000 (1,218,850) (996,587)
Acquisition costs and expenses £’000 (634,386) (544,577)
Investment return £’000 154,987 101,197
Profit for the year £’000 377,691 346,693
Claims ratio % 59.7% 55.9%
Commission and expense ratio % 31.1% 30.6%
Combined operating ratio % 90.8% 86.5%
The Active Underwriters’ comment is as follows:
The 2025 financial year has produced a total profit for the year of £377,691k (2024: £346,693k). The results include an
underwriting profit of £188,307k (2024: £240,172k), equivalent to a combined operating ratio of 90.8% (2024: 86.5%).
Overall gross written premium (‘GWP’) of £2,845,565k (2024: £2,536,209k) is circa 12.2% up on the previous year. This
is primarily due to growth within QBE Portfolio Solutions, partially offset by a decrease in premium in QBE Re following
the non-renewal of Cyber business in the Syndicate.
Loss experience includes the LA Wildfires at the start of the year.
Acquisition costs and expenses have increased in line with the growth in premiums during the year. The increase in the
commission and expense ratio from 30.6% in 2024 to 31.1% in 2025 was mainly driven by the change in underlying
business mix.
The investment profit of £154,987k or 5.2% return (2024: £101,197k or 4.1% return) was supported by attractive yields,
demonstrating earnings resilience despite geopolitical tensions. Fixed income represents circa 95% of the Syndicate’s
overall portfolio. Further details regarding the investment performance are included on page 5.
PwC has been engaged to provide independent projections to support the Statement of Actuarial Opinion (‘SAO’).
Outlook
Through 2026, geopolitical and economic uncertainty, including ongoing tariff tensions, are expected to persist. Market
conditions remain competitive, with strong competition for profitable business. Early trading in 2026 has seen a
continuation of the rate softening experienced through 2025. We are seeing rate pressure across most classes and regions,
however, in many lines of business, successive years of compound rate increases mean that rates remain adequate. Our
underwriting teams remain focused on disciplined execution, actively monitoring performance trends to identify and
target profitable segments.
Our 1 January outwards reinsurance placements have been successfully completed, aligning with QBE Group and the
Syndicate’s strategic objectives and current market conditions. Trading relationships with high-quality reinsurance
providers have been maintained and strengthened, enabling the business to optimise its reinsurance structure. This
approach is designed to support portfolio growth and reflect the Syndicate's risk appetite going forward.
QBE SYNDICATE 2999
ANNUAL REPORT 5 31 DECEMBER 2025
STRATEGIC REPORT (continued)
Outlook (continued)
Our operational and underwriting approach remains tightly aligned to QBE Group’s overarching purpose—enabling a
more resilient future—which reflects our commitment to supporting customers, communities and partners through
uncertainty. Our 2026 activities contribute directly to the Group’s six strategic priorities:
x Portfolio Optimisation – ensuring disciplined risk selection and balanced growth;
x Sustainable Growth – extending into priority segments where we have advantage;
x Bringing the Enterprise Together – leveraging global expertise and simplifying how we operate;
x Pace & Efficiency – modernising technology, embedding AI, and accelerating execution;
x Our People – developing capability, adaptability and a strong performance culture; and
x Customer – strengthening relationships and delivering superior risk insights and service.
These priorities guide how we respond to market conditions and achieve an optimal balance of growth and profitability.
Investment policy
For those investment funds not directly managed by Lloyd’s, management of the investment portfolios for the Syndicate
is delegated to QBE Group Services Pty Limited, (the investment manager), a wholly owned subsidiary of the QBE Group.
The performance of the investment manager is monitored against an absolute return mandate, using other reference
benchmarks or peer group performance as key performance indicators.
QBE EO management along with input from the investment manager is responsible for developing and monitoring the
Syndicate’s investment policy and strategy, subject to QUL’s Board approval. The Board also monitors the Syndicate’s
investment manager’s performance and their compliance with the investment guidelines. The investment guidelines are
designed to ensure that liquidity, credit and market risk are appropriately managed.
Syndicate investments are primarily held in core fixed income bonds with modest exposure to growth assets through
investment funds in developed market equities, high yield debt, and infrastructure assets. The majority of the core fixed
income portfolios have an average credit rating equivalent to or better than Standard & Poor’s “A”. The Syndicate has not
incurred any credit defaults or write downs in any of its fixed interest portfolios.
Responsibility for the oversight and monitoring of the asset and liability strategy falls within the remit of the Board.
Duration of the Syndicate’s core fixed income portfolios are managed broadly in line with that of net outstanding claim
liabilities.
The Syndicate operates a foreign exchange policy to minimise foreign exchange risk by holding assets in foreign
currencies in order to match net outstanding claim liabilities and policy holders interest. Any remaining foreign currency
exposure is hedged using foreign exchange forward rate derivatives in order to minimise residual foreign exchange risk.
Investment performance
The total investment returns achieved for each financial year are set out below. These include income earned on funds
which are not managed by the investment manager, such as certain regulatory overseas deposits managed directly by
Lloyd’s. The investment return is calculated as an absolute return on the underlying portfolio of assets held during the
year, which was 5.2% (2024: 4.1%).
2025 2025 2024 2024
Average Average Average Average
funds return funds return
Portfolio currency £’000 % £’000 %
Australian dollar 173,835 5.2 179,065 4.1
Canadian dollar 894,745 3.4 968,095 5.1
Euro 210,800 1.8 131,364 1.6
Sterling 647,225 7.3 386,452 (0.1)
US dollar 693,830 6.4 985,206 3.9
The benchmark target for investment portfolios is an absolute return yield, agreed for each currency on an annual basis
by the Board of QUL. The table above shows the actual combined returns for all asset classes held in each currency.
QBE SYNDICATE 2999
ANNUAL REPORT 6 31 DECEMBER 2025
STRATEGIC REPORT (continued)
Principal risks and uncertainties of the Syndicate and the Company
The Syndicates and the Company face a number of principal risks and uncertainties specific to the Syndicate’s role as an
insurance undertaking.
The Syndicate’s activities expose the business to a number of key risks which have the potential to affect the Company’s
ability to achieve its business objectives. The Board is responsible for ensuring that an appropriate structure for managing
these risks is maintained. The Board acknowledges that it is not realistic or desirable to eliminate risk entirely and therefore
seeks to ensure that the appropriate controls are in place to effectively manage risks in line with the agreed tolerance.
QBE EO’s established Enterprise Risk Management (‘ERM’) Framework, together with QBE Group’s Risk Management
Strategy, describes the approach to managing risk effectively, which in turn supports strategy and fundamental principles.
QBE EO’s Risk Appetite Statements (‘RAS’) set out the nature and level of risk that the Board are willing to take in
pursuit of the organisation’s objectives. The RAS are used to support risk-based decision making by clearly defining QBE
EO’s appetite (what we should do) and tolerance (what we can do) across the risk categories defined below.
A summary of the main risk categories faced by the Syndicate managed by the Company, and risk mitigation techniques
to identify, assess, evaluate, and mitigate these risks are outlined as follows:
Strategic risk
The Company defines strategic risk as the current and prospective impact on earnings and/or capital arising from strategic
business decisions and responsiveness to external change.
The Company manages strategic risk as follows:
x Through oversight, monitoring and reporting of strategic risks including performance, capital, reputational,
Environmental, Social and Governance (‘ESG’) and emerging risks;
x Considering strategic options in light of the impact on return volatility and capital requirements of the Syndicate;
and
x Planning and monitoring capital levels of the Syndicate on an ongoing basis, with reference to economic
requirements.
During periods of uncertainty like the war in Ukraine and the ongoing situation in the Middle East, the Company continues
to monitor its potential exposures. The Company also has a programme of stress and scenario testing to review the
potential impacts of a range of different strategic threats on the Syndicate’s capital position and exposure to market,
liquidity and operational risks.
Insurance risk
The Company defines insurance risk as the risk of fluctuations in the timing, frequency and severity of insured events and
claims settlements, relative to expectations.
Our exposure to insurance risk arises from:
x Underwriting/pricing;
x Insurance concentrations; and
x Reserving.
The Company manages insurance risk as follows:
x Analysing historical pricing and claims experience;
x Setting a tolerance to concentration risk;
x Monitoring and reviewing underwriting performance and authority limits;
x Monitoring usage and availability of pricing models including independent reviews;
x Purchase of appropriate reinsurance programme to reduce Syndicate’s exposure to individual losses or an
accumulation of losses;
x Review of key insurance related risks to the to the organisation in the current environment via the quarterly Top Risk
process;
x Setting thresholds and monitoring of reserve probability of adequacy (‘PoA’); and
x Conducting both an in-house and external actuarial review of our claims provisions, independent of our underwriting
teams.
QBE SYNDICATE 2999
ANNUAL REPORT 7 31 DECEMBER 2025
STRATEGIC REPORT (continued)
Principal risks and uncertainties of the Syndicates and the Company (continued)
Credit risk
The Company defines credit risk as the risk of financial loss from obligors’ failure to meet their financial obligations,
including both inability or unwillingness to pay, as well as loss due to credit quality deterioration. Credit risks are
monitored and managed in relation to obligations to the Syndicate in respect of reinsurance counterparties; insurance
activities; issuers and transactional counterparties.
The Company manages credit risk as follows:
x Regular counterparty monitoring through dedicated systems and procedures to manage and control exposure to
counterparties;
x Regular exposure monitoring against applicable counterparty limits via the Board-approved RAS and supporting
Key Risk Indicators (‘KRI’) that apply to entities, which are reported on a quarterly basis;
x Through management and monitoring of credit related risks including reinsurance credit risk and other recoveries,
insurance credit risk and investment and treasury credit risk;
x Regular performance of stress and scenario analyses and the application of models that estimate remote losses due
to economic events. This may include holding collateral in respect of specific exposures;
x Review of key credit related risks to the to the organisation in the current environment via the quarterly Top Risk
process;
x The monitoring on an on-going basis of external issuer default and financial strength ratings and QBE Group ratings
and updating as appropriate; and
x Regular review of receivables, the collectability of those debts, and the adequacy of associated impairments.
Market risk
The Company defines market risk as the risk of adverse impacts on earnings resulting from changes in market factors.
Market factors include but are not limited to: interest rates, credit spreads, foreign exchange rates and equity prices.
The Company manages market risk as follows:
x Management and monitoring of market factors and risks including investment market movements related to equity
prices, interest rates, credit spreads and foreign exchange rate movements, as noted above;
x Assessing and reporting of various market risk exposures using the Board-approved market RAS, that is reported on
a quarterly basis;
x Application of stress and scenario analyses and the application of credit models that are able to estimate remote
losses due to economic events;
x Actively managing investment assets;
x Maintaining a diversified portfolio;
x Hedging residual non-functional currency net asset exposures;
x Review of key market related risks to the to the organisation in the current environment via the quarterly Top Risk
process;
x Use of derivatives for efficient portfolio management; and
x Monitoring compliance with legal and regulatory requirements, including the Prudent Person Principle.
Liquidity risk
The Company defines liquidity risk as the risk of insufficient liquid assets to meet liabilities as they fall due to
policyholders and creditors or only being able to access liquidity at excessive cost.
The Company manages liquidity risk as follows:
x Monitoring liquidity risks against the Board-approved RAS and supporting KRIs to ensure minimum coverage of
stressed financial outflows for liabilities, which are reported on a regular basis;
x Performing stress and scenario testing analyses and the application of models that estimate remote losses due to
various events;
x Setting minimum levels of liquid, short-term money market securities;
x Matching assets and liabilities in our major currency positions;
x Regular monitoring of the ratio of liquid assets to liabilities;
x Review of key liquidity related risks to the to the organisation in the current environment via the quarterly Top Risk
process;
QBE SYNDICATE 2999
ANNUAL REPORT 8 31 DECEMBER 2025
STRATEGIC REPORT (continued)
Principal risks and uncertainties of the Syndicates and the Company (continued)
Liquidity risk (continued)
x The production of cash-flow forecasts, supplemented by Early Warning Indicators, such as the short-term liquidity
ratio, to proactively identify any changes to the liquidity position or potential funding needs; and
x Recourse to a Board-approved Liquidity Contingency Plan, permitting access to sources of further liquid assets in
the event of extreme liquidity stress
Operational risk
The Company defines operational risk as the risk of loss resulting from inadequate or failed internal processes, people
and systems or from external events. Operational risk is managed through the following sub-risk categories: internal fraud,
external fraud, employment practices and workplace safety, improper business practices, damage to physical assets,
business disruption and system failures, and execution, delivery, and process management.
The Company manages operational risk using the following:
x Actively monitoring our key processes and systems in line with frameworks, policies, standards and guidelines;
x Conducting scenario reviews to identify and quantify potential exposures for mitigation;
x Maintaining effective segregation of duties, access controls, governance and reconciliation procedures;
x Performance of functional level Risk and Control Self-Assessments (‘RCSA’) providing periodic assessment of risks
as well as assurance over control design and performance;
x Identification and management of Issues and Incidents with defined remediation plans in place, as appropriate;
x Monitoring operational, cyber and technology risks against the Board-approved RAS and supporting KRIs on a
quarterly basis; and
x Review of key operational related risks to the to the organisation in the current environment via the quarterly Top
Risk process.
Compliance risk
The Company defines compliance risk as the risk of legal or regulatory penalties, financial loss or non-financial loss or
customer detriment resulting from a non-compliance with laws, regulations or standards, and includes Conduct Risk.
The Company manages compliance risk using the following:
x Identifying and monitoring of compliance obligations/risks;
x Embedding of compliance requirements into processes, systems and procedures including through RCSAs;
x Identification and management of Issues and Incidents with defined remediation plans in place, as appropriate;
x Conducting scenario reviews to identify and quantify potential exposures for mitigation;
x Monitoring of internal / external fraud, improper business practices and non-compliance with external requirements;
x Monitoring compliance risks against the Board-approved RAS and supporting KRIs on a quarterly basis;
x Review of key compliance related risks to the to the organisation in the current environment via the quarterly Top
Risk process;
x Closely monitoring rapid changes in the international sanctions regulatory environment, undertaking appropriate
screening and due diligence and communicating requirements to the business as required; and
x Maintaining effective segregation of duties, access controls, governance, and reconciliation procedures.
Group risk
The Company defines group risk as the risk to a division or entity arising specifically from being part of a wider group,
including financial impact and loss of support from the parent company.
The Company manages group risk as follows:
x Challenge and oversight from independent Non-Executive Directors (‘NED’) on the Company Board;
x Monitoring contractual arrangements in place for material services provided by other QBE Group divisions and
companies;
x Conducting scenario reviews to identify and quantify potential exposures for mitigation;
x Ensuring functional RCSAs include Group risks;
x Identification and management of Issues and Incidents with defined remediation plans in place, as appropriate;
x Monitoring group risks against the Board-approved RAS, including intra-Group loans, intra-QBE EO loans, Intra-
Group collateral monitoring and Group Outsourced Services Service Level Agreement (‘SLA’) monitoring;
x Review of key group related risks to the to the organisation in the current environment via the quarterly Top Risk
process;
QBE SYNDICATE 2999
ANNUAL REPORT 9 31 DECEMBER 2025
STRATEGIC REPORT (continued)
Principal risks and uncertainties of the Syndicates and the Company (continued)
Group risk (continued)
x Group Risk Dashboard monitoring including Group Risk Appetites and other Group risk related Management
Information, as well as Group issues and incidents impacting QBE EO;
x QBE Capital Global Ltd (‘QCG’) Risk Dashboard: including monitoring of QBE Group’s captive reinsurer’s
collateral adequacy, operational metrics and financial metrics; and
x Involvement of QBE EO executive management individuals within material QBE Group initiatives that could impact
the Company.
Corporate governance
The Syndicate is managed by the Company, a subsidiary of QBE European Operations plc, which is itself the holding
company for QBE EO of QBE Group. The corporate governance framework is managed at QBE EO level.
During 2025, the Company’s corporate governance structure and system of governance continued to evolve, reflecting
the Board’s ongoing commitment to ensuring that it remains efficient, relevant and supportive of the strategic aims of the
Company. QBE Group’s mandated formal Board level corporate governance is addressed in the QBE Group Governance
Framework (‘GGF’) which covers the statutory Boards and Board Committees. This was updated in 2025, published by
Group and adopted by the Board. To achieve a consistent approach to Executive level governance across QBE, the Group
Executive Governance Framework (‘EGF’) sets the principles and framework for the Executive Management Committees
and their sub-committees but is not mandated for adoption by the Board. Any Divisional governance supported by
Company Secretarial should be aligned to the GGF and EGF.
In light of this, following Executive Management Board (‘EMB’) approval, a project was undertaken to review the formal
Executive Governance forums within the QBE EO Division.
The structure continues to comply with all relevant regulatory and legal requirements.
The role of the Board is to provide leadership, to oversee the design and implementation of QBE EO’s strategy and to set
a framework of prudent and effective controls which enable risk to be assessed and managed within it. The Board Charter
includes an agreed set of matters reserved for the Board’s consideration. The Board ensures that the necessary financial,
people resources, policies and practices are in place for the Company to meet its objectives and measure the performance
of management in delivering on QBE EO’s strategic aims.
The Board establishes and instils QBE EO’s purpose, values and culture and ensures these are aligned with those set by
QBE Group and ensures that its obligations to its shareholder and other stakeholders of QBE EO are understood and met,
generate value for shareholders and contribute to wider society.
During the year the Board Committees’ Terms of Reference and Board Charter for the Company were reviewed by the
relevant Committees and Boards, with minor enhancements made to reflect ongoing corporate governance and general
housekeeping updates. A review of the Executive Management Board terms of reference was undertaken to take into
consideration executive divisional oversight of the external insurance and reinsurance business written for the
International Division by QBE Capital Limited, amongst other updates.
The main QBE EO Boards and Board Committees met regularly during the year and there was strong attendance from all
members.
The Board of the Company comprises four independent Non-Executive Directors and four Executive Directors.
The Board of QBE Underwriting Limited
The Board Charter of the Company states that the role of the Board is to provide leadership; to oversee the design and
implementation of QBE EO’s strategy and to set a framework of prudent and effective controls which enable risk to be
assessed and managed within it. The Board Charter includes an agreed set of matters reserved for the Board’s
consideration. The Board ensures that the necessary financial and people resources, policies and practices are in place for
the Company to meet its objectives and reviews the performance of management in delivering on QBE EO’s strategic
aims. The Board establishes and instils QBE EO’s values and culture in line with those set by QBE Group and ensure that
its obligations to its shareholder and other stakeholders of QBE EO are understood and met.
The role of the Chair of the Board is distinct from that of the Chief Executive Officer (‘CEO’), and each role is clearly
established and held by different individuals. The Chair is responsible for leading the Board and its overall effectiveness,
and overseeing the performance of the Board, leading the development of the Company’s culture by the Board of Directors
as well as leading the development of and monitoring the effective implementation of policies and procedures for the
induction, training and professional development of all members of the Board.
QBE SYNDICATE 2999
ANNUAL REPORT 10 31 DECEMBER 2025
STRATEGIC REPORT (continued)
The Board of QBE Underwriting Limited (continued)
The Chair promotes open debate and facilitates constructive discussion within the board by ensuring that Directors
receive meeting papers no later than three working days prior to the scheduled Board meetings.
The CEO has responsibility for the day-to-day management and operations of the Company, supported by the EMB, which
the CEO chairs. The CEO is responsible for leading, directing and being accountable for the performance of the Company
and reporting to the Board of Directors in respect of these matters.
This separation of roles ensures that the balance of responsibilities, accountabilities and decision making are effectively
maintained. Directors have equal voting rights when making decisions and the Chair has a casting vote when required.
All Directors have access to the advice and services of the Company Secretary and are able to seek professional advice at
the Company’s expense.
Following his appointment as Group Chief Financial Officer of the QBE Group, Mr Christopher Killourhy resigned as a
director of the Company effective 31 December 2025.
The Board considers that the experience and areas of focus which each Board member brings to the Company results in a
strong and balanced leadership team. The independent NEDs have no material business or relationships with the Company
that might influence their independence or judgement and bring a range of financial services and wider industry experience
to the Board. As such, the size and composition of the Board is considered to be appropriate.
QBE Group have a continuing professional development programme which requires each NED to undertake ten hours of
continuous professional development each year covering areas such as Regulation, Insurance and Customer. A NED skills
matrix is maintained by Company Secretarial, together with NED training records.
In conjunction with QBE Group and supported by the Nomination Committee, succession planning is undertaken in
accordance with the talent and culture objective within the strategic priorities of both QBE EO and QBE Group whilst
ensuring the Board has the right balance of skills, background, knowledge, experience and diversity to be effective.
The duties of the Board are executed to some degree through Board Committees that are each chaired by a NED. The
Board and other regulated companies in QBE EO have jointly constituted these Board Committees which comprise
appropriately skilled members and are supported by attendees as necessary. QBE EO’s key Committees comprise: Audit
Committee; People and Remuneration Committee (‘PARC’); Nomination Committee; and Risk and Capital Committee
(‘RCC’).
In addition, the EMB has also been constituted to act as a Management Committee of the Company and other UK regulated
companies in QBE EO. The EMB is Chaired by the CEO (and its management groups are each chaired by an EMB
member). The Board delegates authority for day-to-day management of the Company to the CEO who is supported by the
EMB. Membership of the EMB includes the Chief Financial Officer (‘CFO’), Chief Risk Officer (‘CRO’), leaders of the
Insurance and Reinsurance business areas, Chief Underwriting Officer, Chief People Officer, Chief Operations Officer,
Chief Information Officer, Chief Marketing and Communications Officer, Claims Director and the CEO Asia. The EMB’s
responsibilities include formulating and implementing approved strategies and plans, and management of the day-to-day
effective running of the Company. During the year the EMB met formally ten times and additional regular informal
discussion forums took place during the year.
Climate-related Financial Disclosures (‘CFD’)
The Company, as part of the QBE Group, recognises the material risk that climate change poses to its business, including
the Syndicate and is committed to embedding climate change considerations within its decision making. Our approach to
managing the Financial Risks from Climate Change (‘FRCC’) has been guided by our Board-approved Roadmap to meet
the requirements of the Prudential Risk Authority’s (‘PRA’) Supervisory Statement SS3/19 (‘SS3/19’) and we continue
to assess and update our approach in response to Supervisory Statement SS5/25 (‘SS5/25’). the proposed updates to
SS3/19 in Consultation Paper CP10/25.
QBE EO is guided by the QBE Group’s Risk Management Strategy to ensure we achieve our strategic priorities while
also establishing effective governance and fundamental principles for the management of risk across all levels of the
organisation. The FRCC are a component of ESG risk, which is classified as a strategic risk sub-class.
In line with SS3/19, exposures to physical, transition and liability risks are monitored and reported to the Risk & Capital
Group (‘RCG’), RCC and the Board on a quarterly basis using the EO Climate Risk Dashboard (‘CRD’). The CRD
includes the following assessments:
QBE SYNDICATE 2999
ANNUAL REPORT 11 31 DECEMBER 2025
STRATEGIC REPORT (continued)
Climate-related Financial Disclosures (‘CFD’) (continued)
x Physical risks: modelling of natural climate perils, for example assessing how EO’s Insurance Concentrations risk
appetites statements would be impacted by future climate stress scenarios. When considering physical risks,
Representative Concentration Pathway 8.5 (‘RCP 8.5’) is adopted, which is considered a ‘worst-case scenario’ and
is based on a substantial global temperature increase;
x Underwriting transition risks: modelling transition scenario impacts on sensitive industry sectors and assessing how
they could impact QBE EO’s GWP derived from products written for customers in these sectors;
x Investments transition risks: assessments of specific EO investment portfolios’ exposure to transition risks; and
x Liability transition risks: climate-related litigation trends are monitored, and scenario assessments are conducted –
supported by the litigation monitoring work performed by the Legal team.
During 2025, the Company has continued to enhance and refresh its approach to meeting the requirements of SS3/19.
Further developments to our approach to managing the FRCC, and broader ESG risks, have included:
x Updated scenario assessments of physical risks to estimate changes in exposure materiality and to inform
underwriting strategy updates for EO insurance products;
x Reassessing hypothetical climate litigation scenarios to ensure that frequency and severity estimates are updated and
appropriate, including in relation to internal model validation; and
x Regular updates to the RCG, RCC and EO board via the EO Climate Risk Dashboard and updates within the Own
Risk and Solvency Assessment (‘ORSA’) report.
Our Accumulation Management team provides technical catastrophe pricing for a large proportion of our commercial
property policies which is refreshed frequently to reflect current catastrophe accumulations, reinsurance costs and required
return on allocated capital.
More details on the QBE Group climate-related strategy can be found in the Group Annual Report.
The Company does not enter into any direct energy consumption contracts. All disclosure relating to the Company’s
Streamlined Energy and Carbon Reporting (‘SECR’) requirements can be found in the accounts of its parent, QBE
European Operations plc.
Solvency II and capital adequacy
The Syndicate, managed by the Company, applies QBE EO’s internal capital model, as approved by the PRA and Lloyd’s.
The internal model is an integrated framework to support the Company’s objectives by managing risk and capital across
the Syndicates’ business. The internal model has broad scope including capital modelling; risk identification, mitigation,
assessment and monitoring, and is used in the day-to-day operations of the Company.
The internal model is used to help assess our risk and calculate the appropriate level of risk-based capital to allocate to
risks to which we are exposed. The assessment of risk-based capital enables us to make decisions that involve quantitative
risk reward trade-offs. The allocation of risk-based capital helps ensure that the level of risk we take is commensurate
with the required returns and is within the approved risk appetite and tolerance.
The Syndicates managed by the Company comply with Lloyd’s capital setting processes which are described in note 2 in
the financial statements.
Section 172 Companies Act 2006 statement
The Directors are fully aware of their duty under section 172 of the Companies Act 2006 to act in the way which they
consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a
whole and, in doing so, to have regard amongst other matters to the duties contained therein.
The Directors have acted in accordance with such responsibilities during the year. The Board has identified that its key
stakeholders are its employees, shareholders, customers, suppliers, regulators, brokers, and other intermediaries, together
with communities and the environment.
Being a part of QBE Group, the Company adheres to QBE’s purpose and DNA values. QBE’s purpose is to enable a more
resilient future. QBE is committed to the highest standards of corporate governance as reflected in its DNA. The QBE
DNA interlinks seven cultural elements (listed below) that are fundamental to QBE and how QBE needs to operate in the
future to succeed, recognising its customers, employees, shareholders, and the community. QBE believes that a culture,
which rewards transparency, integrity and performance will promote its long-term substantiality and the ongoing success
of its business.
QBE SYNDICATE 2999
ANNUAL REPORT 12 31 DECEMBER 2025
STRATEGIC REPORT (continued)
Section 172 Companies Act 2006 statement (continued)
The QBE DNA is as follows:
x customer-focused – we proactively listen with empathy to guide how we meet customer needs and have an impact
(#Outside In);
x technical experts – we build and share our expertise, striving for excellence and knowing when to ask for guidance
(#Know your stuff);
x fast-paced – we move with pace, adapting with our purpose and future in mind (#Ramp It Up);
x inclusive – we treat each other with respect and fairness, and value diverse perspectives (#Value All Views);
x courageous – we act with integrity and challenge the status quo, feeling safe to speak up and experiment with new
ideas (#Do the Right Thing);
x accountable – we take ownership and follow through to deliver, managing risks and learning from mistakes (#Own
It Now); and
x a team – we support each other and collaborate widely to achieve common goals, knowing we are stronger together
(#Together)
How the Board engages
QBE employees
x A comprehensive communications and engagement plan ensures regular employee and leader updates on strategic
priorities and business performance by the Group and Divisional CEO’s;
x Each EMB member (of which five are QBE EO board members) host Town Halls on a regular basis. Further
engagement opportunities are available through informal connection opportunities and email communications;
x The CEO and NEDs visit and engage with regional and overseas offices, and have deep dives and other update
sessions with management and staff across the business;
x The Chief People Officer Report includes an overview on progress against the People and Culture strategic priorities;
x The EMB proactively encourage and act on employee feedback through regular pulse surveys, Together@QBE
forums and employee networks to help identify opportunities to improve our ways of working, benefits, policies and
overall culture;
x The CEO chairs a bi-annual Inclusion Forum with the Chief People Officer, the EMB, Inclusion team, employee
network chairs, and executive sponsors to track progress against our Inclusion and Diversity strategy and plans;
x Recurring EMB Discussion Forums with opportunities for executive network sponsors to present; and
x A strong focus on culture and whistleblowing reports.
Our shareholder
x There is regular interaction with the shareholder, QBE Group, on a frequent basis. The QBE Group Board receives
on an annual basis a presentation on the financial plans for the forthcoming year and business updates; and
x There is a global NED conference held on a biennial basis. Chairs of Board Committees around the globe meet
frequently to discuss key matters, the last one being held in June.
Our customers
x The Board reviews strategy and monitors performance during the year with the aim of meeting customers’ needs
more effectively/efficiently;
x The Board receives competitor updates to understand QBE’s competitive performance and its strengths and
weaknesses as regards to meeting customer needs;
x Benchmarks performance in relation to customers using research and survey results;
x Customer continues to be one of our priorities for 2025 with an aim of being our customers’ favourite insurer; and
x QBE EO has applied the Consumer duty in line with the Financial Conduct Authority (‘FCA’) policy statement
PS22/9 “A new consumer duty” to all in scope new and existing products and services open to sale or renewal,
effective 31 July 2023 and has also applied the consumer duty to in scope products and services held in closed books
from 31 July 2024.
QBE SYNDICATE 2999
ANNUAL REPORT 13 31 DECEMBER 2025
STRATEGIC REPORT (continued)
Section 172 Companies Act 2006 statement (continued)
How the Board engages (continued)
Our brokers and other intermediaries
x The Board receives updates regarding partner relationships, development and engagement;
x Consideration of key strategic partnerships and technology; and
x Understand our approach with partners.
Our regulators including the PRA, National Bank of Belgium, FCA, Financial Services and Markets Authority
(Belgium) and Lloyd’s of London
x There is transparent and regular communication with our regulators and Lloyd’s which is facilitated through our
Compliance Department; and
x Various teams in the business and Board members including NEDs have ongoing engagement with our regulators
on a frequent basis, including discussion on specific matters requested. All material regulator engagements are
reported to the respective EO Boards.
Our suppliers
x The Board receives updates as necessary from management on suppliers (e.g. claim service providers and IT and
operational suppliers), and reviews and approves applicable policies and procedures. Key areas of focus for
regulators include the fair treatment of customers, fair pricing and product value, controls for the management of
outsourcing and third-party risk, and employee conduct standards and awareness of the regulatory environment they
operate in as well as financial risks arising from climate change; and
x The Board receives updates as necessary from management on suppliers (e.g. IT and operational suppliers) and
reviews and approves applicable policies and procedures.
Our communities and the environment
x The Board’s responsibilities related to climate change are detailed in the Climate-Related Financial Disclosures
(“CFD”) section of this report;
x In addition to climate-related matters, the Board also supports the following sustainability initiatives:
x Group wide sustainability initiatives as detailed in the 2025 Sustainability Report published on the QBE Group
website;
x Tax transparency through the annual publication of the QBE Group Tax Transparency Report and the
production of a Tax strategy document outlining its UK tax strategy;
x The board aims to promote and uphold the human rights of our employees, customers and communities, as
outlined in the QBE Group Human Rights Policy and in our Modern Slavery and Human Trafficking
Statements;
x Premiums4Good is the collaboration between QBE, our customers, partners and shareholders through which
we invest a portion of everyday premiums into investments that have additional social or environmental benefits
at no extra cost to the customer. Premiums4Good now has US$2.4 billion invested in 154 securities across our
key impact areas;
x The Board endorses a culture of giving back to the community time and skills, through employee volunteer
days and pro bono support; and
x The QBE Foundation EO, which supports involvement in the community by promoting employee volunteering,
employee matching, and through grant donations to registered charities aligned to the Foundation’s focus areas.
For all of the above interactions, the Board seeks to ensure that all stakeholder interests are considered.
Business continuity management
An established business continuity management framework is in place to ensure the Company is able to respond
effectively to incidents that threaten business continuity and is designed to ensure that the impact of any major disruption
is minimised. The business continuity management framework is complimented by an operational resilience framework.
The business continuity management framework includes a set of crisis and specialist team plans, department-level
business continuity plans and technology recovery plans. It is supported by a range of activities, including staff awareness
and testing.
For all of the above interactions, the EO Board seeks to ensure that all stakeholder interests are considered.
QBE SYNDICATE 2999
ANNUAL REPORT 14 31 DECEMBER 2025
STRATEGIC REPORT (continued)
Business continuity management (continued)
This Strategic report was approved by the Board of Directors on 18 February 2026 and signed on its behalf by:
R C Stone
Director
QBE Underwriting Limited
London
19 February 2026
QBE SYNDICATE 2999
ANNUAL REPORT 15 31 DECEMBER 2025
REPORT OF THE DIRECTORS OF THE MANAGING AGENT
The Directors of QUL, the Managing Agent for the Syndicate, present their report and the audited annual accounts of the
Syndicate for the year ended 31 December 2025.
This annual report is prepared using the annual basis of accounting as required by regulation 5 of the Insurance Accounts
Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 (‘the Regulations’ or ‘IAD’).
Directors and officers
Details of the Directors and officers of the Managing Agent for the Syndicate are set out on page 2.
Strategic report
The Strategic report, which includes details of the Syndicate’s principal activities, business review, position and future
developments, performance and KPI’s, governance structure, risk management framework and climate change, is set out
on pages 3 to 14.
Internal audit
An internal audit department provides assurance to the Audit Committee as to the effectiveness of internal systems and
controls, makes recommendations for improvement and monitors progress towards completion via management action
plans. Internal audit also provides feedback on the risk management process.
Going concern
The Directors of the Managing Agent have reasonable expectations, having made appropriate enquiries, that the Syndicate
has adequate resources to continue in operational existence for the foreseeable future. The Directors of the Managing
Agent have not identified any material uncertainties relating to events or conditions that, individually or collectively, may
cast significant doubt on the Syndicate’s ability to continue as a going concern for a period of at least 12 months from the
date on which the accounts are authorised for issue. For this reason, they continue to adopt the going concern basis in
preparing the accounts.
Relationship with Managing Agent
QUL has adopted a code of conduct which outlines a set of general business ethics that apply to all employees when
conducting any activity on behalf of the Syndicate. The code of conduct requires employees to carry on business in an
open and honest manner with customers, shareholders, employees, regulatory bodies, outside suppliers, intermediaries,
and the community at large. The code also deals with a number of other requirements including whistleblowing,
confidentiality, disclosure of information, conflicts of interest and treating customers fairly. Other policies are in place to
cover areas such as health and safety, harassment, equal opportunities and financial crime.
Statement of Managing Agent’s responsibilities
The Directors of the Managing Agent are responsible for preparing the Strategic report, report of the Directors of the
Managing Agent and the annual accounts in accordance with applicable law and regulations.
The Regulations require the Managing Agent to prepare annual accounts for each financial year. Under that law, the
Directors are required to prepare the Syndicate annual accounts in accordance with UK generally accepted accounting
practice (UK accounting standards and applicable law). The IAD requires that the Directors must not approve the annual
accounts unless they are satisfied that they give a true and fair view of the state of affairs of the Syndicate and of the profit
and loss of the Syndicate for that period.
In preparing these Syndicate annual 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 annual accounts;
• Prepare the annual accounts on the basis that the Syndicate will continue to write business unless it is
inappropriate to presume that the Syndicate will do so; and
• Prepare and review that 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, results in tagging that is free from material non-compliance with the instructions issued by
Lloyd’s, whether due to fraud or error.
The Directors of the Managing Agent are responsible for keeping proper accounting records that are sufficient to show
and explain the Syndicate’s transactions and disclose with reasonable accuracy at any time the financial position of the
QBE SYNDICATE 2999
ANNUAL REPORT 16 31 DECEMBER 2025
REPORT OF THE DIRECTORS OF THE MANAGING AGENT (continued)
Statement of Managing Agent’s responsibilities (continued)
Syndicate and enable them to ensure that the Syndicate annual accounts comply with the IAD. They are 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 Directors of the Managing Agent are responsible for the maintenance and integrity of the Company’s website.
Legislation in the United Kingdom governing the preparation and dissemination of annual accounts may differ from
legislation in other jurisdictions.
The Directors of the Managing Agent confirm that to the best of their knowledge the Syndicate accounts, including the
iXBRL tagging applied to these accounts, comply with the requirement of the Lloyd’s Syndicate accounts instructions
version 3.1 as modified by the frequently asked questions version 1.1 issued by Lloyds.
Statement of disclosure of information to auditors
Each person who is a Director of the Managing Agent at the date of this report confirms that:
• So far as the Director is aware, there is no information relevant to the audit of the Syndicate’s annual accounts
for the year ended 31 December 2025 of which the auditors are unaware; and
• The Director has taken all the steps that he or she ought to have taken as a Director in order to make himself or
herself aware of, and to establish that the Syndicate’s auditors are aware of, any relevant audit information.
Independent auditors
The Directors of the Managing Agent intend to reappoint PricewaterhouseCoopers LLP as the Syndicate’s auditors.
On behalf of the Board of the Managing Agent.
R C Stone
Director
London
19 February 2026
QBE SYNDICATE 2999
ANNUAL REPORT 17 31 DECEMBER 2025
INDEPENDENT AUDITORS’ REPORT TO THE MEMBER OF QBE SYNDICATE 2999
Report on the audit of the syndicate annual accounts
Opinion
In our opinion, 2999’s syndicate annual accounts:
භ give a true and fair view of the state of the syndicate’s affairs as at 31 December 2025 and of its profit and cash
flows for the year then ended;
භ have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice
(United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in
the UK and Republic of Ireland”, and applicable law); and
භ have been prepared in accordance with the requirements of The Insurance Accounts Directive (Lloyd’s Syndicate
and Aggregate Accounts) Regulations 2008 and the requirements within the Lloyd’s Syndicate Accounts
Instructions version 3.1 as modified by the Frequently Asked Questions issued by Lloyd’s version 1.1 (“the
Lloyd’s Syndicate Instructions”).
We have audited the syndicate annual accounts included within the Annual Report, which comprise: the Balance sheet as
at 31 December 2025; the Profit and Loss account – Technical account – General Business, the Profit and Loss account
– Non-technical account, the Statement of cash flows, and the Statement of changes in members’ balances for the year
then ended; and the notes to the syndicate annual accounts, which include a description of the significant accounting
policies.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”), The Insurance
Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008, the Lloyd’s Syndicate Instructions
and applicable law. Our responsibilities under ISAs (UK) are further described in the Auditors’ responsibilities for the
audit of the syndicate annual accounts section of our report. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
Independence
We remained independent of the syndicate in accordance with the ethical requirements that are relevant to our audit of
the syndicate annual accounts in the UK, which includes the FRC’s Ethical Standard, as applicable to other entities of
public interest, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
To the best of our knowledge and belief, we declare that non-audit services prohibited by the FRC’s Ethical Standard
were not provided.
Other than those disclosed in note 4, we have provided no non-audit services to the syndicate in the period under audit.
Conclusions relating to going concern
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 at least twelve months from when the syndicate annual accounts are authorised for issue.
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.
However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the
syndicate's ability to continue as a going concern.
Our responsibilities and the responsibilities of the Managing Agent with respect to going concern are described in the
relevant sections of this report.
Reporting on other information
The other information comprises all of the information in the Annual Report other than the syndicate annual accounts and
our auditors’ report thereon. The Managing Agent is responsible for the other information. Our opinion on the syndicate
annual accounts does not cover the other information and, accordingly, we do not express an audit opinion or, except to
the extent otherwise explicitly stated in this report, any form of assurance thereon.
QBE SYNDICATE 2999
ANNUAL REPORT 18 31 DECEMBER 2025
INDEPENDENT AUDITORS’ REPORT TO THE MEMBER OF QBE SYNDICATE 2999
(continued)
In connection with our audit of the syndicate annual accounts, 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 audit, or otherwise appears to be materially misstated. If we identify an apparent material
inconsistency or material misstatement, we are required to perform procedures to conclude whether there is a material
misstatement of the syndicate annual accounts or a material misstatement of the other information. 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 based on these responsibilities.
With respect to the Report of the Directors of the Managing Agent (the “Managing Agent’s Report”), we also considered
whether the disclosures required by The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts)
Regulations 2008 have been included.
Based on our work undertaken in the course of the audit, The Insurance Accounts Directive (Lloyd’s Syndicate and
Aggregate Accounts) Regulations 2008 requires us also to report certain opinions and matters as described below.
Managing Agent’s Report
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 year ended 31 December 2025 is consistent with the syndicate annual accounts and has been prepared in
accordance with applicable legal requirements.
In light of the knowledge and understanding of the syndicate and its environment obtained in the course of the audit, we
did not identify any material misstatements in the Managing Agent’s Report.
Responsibilities for the syndicate annual accounts and the audit
Responsibilities of the Managing Agent for the syndicate annual accounts
As explained more fully in the Statement of Managing Agent’s Responsibilities, the Managing Agent is responsible for
the preparation of the syndicate annual accounts in accordance with the applicable framework and for being satisfied that
they give a true and fair view. The Managing Agent is also responsible for such internal control as they determine is
necessary to enable the preparation of syndicate annual accounts that are free from material misstatement, whether due to
fraud or error.
In preparing the syndicate annual accounts, the Managing Agent is responsible for assessing the syndicate’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis
of accounting unless it is intended for the syndicate to cease operations, or it has no realistic alternative but to do so.
Auditors’ 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 auditors’ 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.
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.
Based on our understanding of the syndicate and industry, we identified that the principal risks of non-compliance with
laws and regulations related to breaches of regulatory principles, such as those governed by the Prudential Regulation
Authority and the Financial Conduct Authority, and those regulations set by the Council of Lloyd’s, and we considered
the extent to which non-compliance might have a material effect on the syndicate annual accounts. We also considered
those laws and regulations that have a direct impact on the syndicate annual accounts such as The Insurance Accounts
Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 and the Lloyd’s Syndicate Instructions. We
evaluated management’s incentives and opportunities for fraudulent manipulation of the syndicate annual accounts
(including the risk of override of controls), and determined that the principal risks were related to the risk of fraud in
revenue recognition and management override of controls, including the potential for management bias in significant
accounting estimates, particularly in relation to the claims incurred but not reported portion of outstanding claims reserves
(gross and reinsurers’ share), and the estimated portion of gross premiums written. Audit procedures performed by the
engagement team included:
QBE SYNDICATE 2999
ANNUAL REPORT 19 31 DECEMBER 2025
INDEPENDENT AUDITORS’ REPORT TO THE MEMBER OF QBE SYNDICATE 2999
(continued)
භ inspecting relevant meeting minutes, including those of the Board and Audit Committee of the Managing Agent,
and correspondence with regulatory authorities, including Lloyd’s of London, the Prudential Regulatory
Authority and the Financial Conduct Authority;
භ discussions with the Board, management, the compliance function and internal audit function of the Managing
Agent, including consideration of known or suspected instances of fraud and non-compliance with laws and
regulations;
භ testing and challenging where appropriate the assumptions and judgements made by management in their
significant accounting estimates, particularly in relation to the claims incurred but not reported portion of
outstanding claims reserves (gross and reinsurer’s share), and the estimated portion of gross premiums written;
භ testing journal entries identified in accordance with our risk assessment; and
භ designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances
of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the
syndicate annual accounts. Also, 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.
A further description of our responsibilities for the audit of the syndicate annual accounts is located on the FRC’s website
at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors’ report.
Use of this report
This report, including the opinions, has been prepared for and only for the syndicate’s member as a body in accordance
with part 2 of The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 and for
no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any
other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior
consent in writing.
Other required reporting
Under The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 we are required
to report to you if, in our opinion:
භ we have not obtained all the information and explanations we require for our audit; or
භ adequate accounting records have not been kept by the Managing Agent in respect of the syndicate; or
භ certain disclosures of Managing Agent remuneration specified by law are not made; or
භ the syndicate annual accounts are not in agreement with the accounting records.
We have no exceptions to report arising from this responsibility.
Other matter
We draw attention to the fact that this report may be included within a document to which iXBRL tagging has been
applied. This auditors’ report provides no assurance over whether the iXBRL tagging has been applied in accordance with
section 2 of the Lloyd’s Syndicate Instructions version 3.1.
Matthew Nichols (Senior statutory auditor)
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
London
19 February 2026
QBE SYNDICATE 2999
ANNUAL REPORT 20 31 DECEMBER 2025
PROFIT AND LOSS ACCOUNT -
TECHNICAL ACCOUNT - GENERAL BUSINESS
for the year ended 31 December 2025
2025 2024
Note £’000 £’000 £’000 £’000
Earned premiums, net of reinsurance
Gross premiums written 3 2,845,565 2,536,209
Outward reinsurance premiums (607,247 ) (596,735 )
Premiums written, net of reinsurance 2,238,318 1,939,474
Change in the gross provision for unearned premiums 12 (293,817 ) (172,137 )
Change in the provision for unearned premiums,
reinsurers’ share 12
Net change in provisions for unearned premiums (196,775 ) (158,138 )
Earned premiums, net of reinsurance 2,041,543 1,781,336
Allocated investment return transferred from the
non-technical account 7
Claims incurred, net of reinsurance
Claims paid
Gross amount 12 (961,894 ) (833,123 )
Reinsurers’ share 12 239,167 268,846
Net claims paid (722,727 ) (564,277 )
Change in the provision for claims
Gross amount 12 (591,100 ) (523,101 )
Reinsurers’ share 12 94,977 90,791
Change in the net provision for claims (496,123 ) (432,310 )
Claims incurred, net of reinsurance (1,218,850 ) (996,587 )
Net operating expenses 4 (634,386 ) (544,577 )
Balance on the technical account for general
business 343,294 341,369
The notes set out on pages 26 to 56 form an integral part of these annual accounts.
QBE SYNDICATE 2999
ANNUAL REPORT 21 31 DECEMBER 2025
PROFIT AND LOSS ACCOUNT -
NON-TECHNICAL ACCOUNT
for the year ended 31 December 2025
2025 2024
Note £’000 £’000
Balance on the general business technical account 343,294 341,369
Investment income 7 94,425 71,961
Unrealised gains/(losses) on investments 7 39,224 (3,599 )
Investment expenses and charges 7 (3,236 ) (2,897 )
Realised gains on investments 7 24,574 35,732
Investment return 154,987 101,197
Allocated investment return transferred to the general business
technical account (154,987 ) (101,197 )
Gain on foreign exchange 34,397 5,324
Profit for the financial year 377,691 346,693
Total comprehensive income for the year 377,691 346,693
The results above are derived from continuing operations.
There are no recognised gains or losses for the current and preceding year other than those included in the profit and loss
account above and therefore no statement of comprehensive income has been presented.
The notes set out on pages 26 to 56 form an integral part of these annual accounts.
QBE SYNDICATE 2999
ANNUAL REPORT 22 31 DECEMBER 2025
STATEMENT OF CHANGES IN MEMBERS’ BALANCE
for the year ended 31 December 2025
2025 2024
£’000 £’000
Member’s balance brought forward at 1 January 359,255 208,106
Total comprehensive income for the year 377,691 346,693
Payments of profit to members’ personal reserve funds (442,110 ) (197,164 )
Other - Non-standard personal (expense) / income (4,573 ) 1,620
Member’s balance carried forward at 31 December 290,263 359,255
The notes set out on pages 26 to 56 form an integral part of these annual accounts.
QBE SYNDICATE 2999
ANNUAL REPORT 23 31 DECEMBER 2025
BALANCE SHEET
as at 31 December 2025
| 2025 | 2024 | ||
| Assets | Note | £’000 | £’000 |
Investments | |||
| Financial investments | 8 | ||
| Deposits with ceding undertakings | | | |
| | |||
Reinsurers’ share of technical provisions | |||
| Provision for unearned premiums | 12 | | |
| Claims outstanding | 12 | ||
| | | ||
Debtors | |||
| Debtors arising out of direct insurance operations | 14(i) | | |
| Debtors arising out of reinsurance operations | 14(ii) | | |
| Other debtors | 14(iii) | | |
| | | ||
Other assets | |||
| Cash at bank and in hand | | | |
| Other | 16 | | |
| | | ||
Prepayments and accrued income | |||
| Accrued interest and rent | | | |
| Deferred acquisition costs | 17 | | |
| Other prepayments and accrued income | | |
Total assets 6,494,702 5,836,256
The notes set out on pages 26 to 56 form an integral part of these annual accounts.
QBE SYNDICATE 2999
ANNUAL REPORT 24 31 DECEMBER 2025
BALANCE SHEET (continued)
as at 31 December 2025
2025 2024
Liabilities Note £’000 £’000
Capital and reserves
Members’ balance 290,263 359,255
Technical provisions
Provision for unearned premiums 12 1,470,959 1,312,551
Claims outstanding 12 4,079,449 3,651,653
Creditors
Creditors arising out of direct insurance operations 22(i) 71,987 51,050
Creditors arising out of reinsurance operations 22(ii) 527,280 430,006
Other creditors including taxation and social security 23
Accruals and deferred income 23,665 10,876
Total liabilities 6,204,439 5,477,001
Total liabilities, Capital and reserves 6,494,702 5,836,256
These annual accounts on pages 20 to 56 were approved by the Board of QBE Underwriting Limited on 18 February 2026
and were signed on its behalf by:
R C Stone
Director
19 February 2026
The notes set out on pages 26 to 56 form an integral part of these annual accounts.
QBE SYNDICATE 2999
ANNUAL REPORT 25 31 DECEMBER 2025
STATEMENT OF CASH FLOWS
for the year ended 31 December 2025
Restated**
| 2025 | 2024 | ||
| £’000 £’000 | |||
| Cash flow from operating activities | |||
| Profit for the financial year | | | |
| Increase in gross technical provisions | | | |
| Increase in reinsurers’ share of technical provisions | ( | ( | |
| Increase in debtors | ( | ( | |
| Increase in creditors | | | |
| Investment return | ( | ( | |
| Other * | ( | ||
| Foreign exchange | | | |
| Net cash flows from operating activities | | | |
| Cash flows from investing activities | |||
| Purchase of equity and debt instruments | ( | ( | |
| Sale of equity and debt instruments | | | |
| Investment income received | | | |
| Purchase of derivatives | ( | ( | |
| Sale of derivatives | | | |
| Other (incl. deposits with ceding undertakings) | | | |
| Net cash flows used in investing activities | ( | ( | |
| Cash flow from financing activities | |||
| Distribution of profit | ( | ( | |
| Open year profit release | ( | ( | |
| Other - Non-standard personal expense | ( | ( | |
| Net cash flows used in financing activities | ( | ( | |
| Movement in cash and cash equivalents during year | |||
| Cash and cash equivalents at the beginning of the year | | | |
| Net (decrease)/increase in cash and cash equivalents | ( | | |
| Foreign exchange movement on cash and cash equivalents | ( | | |
Cash and cash equivalents at the end of the year | 15 | ||
* This line contains adjustments for operating transactions that were settled through in-specie purchases of investments
(£31,786k) and sales of investments (£127,980k).
** The comparative cash flow statement has been amended to remove non-cash transactions that were previously recorded
as cash purchases and sales of equity and debt instruments. There is no impact to the Balance Sheet or Profit and Loss
Account, and the impact on the Statement of Cashflows is disclosed below:
2024 Adjustment 2024 Restated
£’000 £’000 £’000
Cash flows from operating activities
Other - (45,784) (45,784)
Net cash flows from operating activities 705,166 (45,784) 659,382
Cash flows from investing activities
Purchase of equity and debt instruments (5,703,423) 62,949 (5,640,474)
Sale of equity and debt instruments 5,127,868 (17,165) 5,110,703
Net impact to cash flows used in investing activities (499,595) 45,784 (453,811)
The notes set out on pages 26 to 56 form an integral part of these annual accounts.
QBE SYNDICATE 2999
ANNUAL REPORT 26 31 DECEMBER 2025
NOTES TO THE ANNUAL ACCOUNTS
for the year ended 31 December 2025
1. Accounting policies
The principal accounting policies adopted in the preparation of these annual accounts are set out below. These policies
have been consistently applied to all the years presented unless otherwise stated. The comparative period is the 12 months
ended 31 December 2024 .
(a) Basis of preparation
These annual accounts have been prepared in accordance with regulation 5 of the Insurance Accounts Directive (Lloyd’s
Syndicate and Aggregate Accounts) Regulations 2008, and in compliance with United Kingdom Accounting Standards,
including Financial Reporting Standard 102, “The Financial Reporting Standard applicable in the United Kingdom and
the 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 Version 1.1 issued
by Lloyd’s.
These annual accounts incorporate all transactions committed to for the 2025 year of account and prior years of account.
The Directors of the Managing Agent have prepared the annual accounts on the basis that the Syndicate will continue to
write business. The ability of the Syndicate to meet its obligations as they fall due is underpinned by the support provided
by Lloyd’s solvency process and its chain of security for any members who are unable to meet their underwriting
liabilities. Members’ Funds at Lloyd’s are further explained in note 2.
(b) Basis of accounting for insurance
The result is determined on an annual basis whereby the incurred cost of claims, commission and related expenses are
charged against the earned portion of premiums, net of reinsurance, as described below.
(i) Premiums written
Premium comprises amounts charged to policyholders, excluding taxes collected on behalf of third parties. The
earned portion of premium received and receivable, including unclosed business or ‘pipeline’ premium, is
recognised as revenue. Pipeline premium represents amounts due to the Syndicate not yet notified and
adjustments to estimates of premiums written in previous periods. Premiums are earned from the date of
attachment of risk over the indemnity period based on the pattern of the risks underwritten.
(ii) Unearned premiums
Unearned premiums represent the proportion of premiums written in the year that relates to the unexpired terms
of policies in force at the balance sheet date, calculated on the basis of established earnings patterns using either
the daily pro-rata method or the 24ths method, adjusted where appropriate to reflect different risk patterns, and
may include straight line earnings patterns where appropriate.
(iii) Outwards reinsurance premiums written
Outwards reinsurance premiums written relate to business ceded during the year, including an estimate of any
adjustment premiums payable, together with any differences between estimates in the prior years and that
actually ceded. Outwards premiums are recognised as earned over the period of the policy having regard to the
incidence of risk. Policies that respond with reference to the attachment point are earned in line with the related
inwards written premiums.
(iv) Claims incurred
Claims incurred comprise claims and related expenses paid in the year and changes in provisions for outstanding
claims, including provisions for claims incurred but not reported and related expenses, together with any other
adjustments to claims from previous years. Where applicable, deductions are made for salvage and other
recoveries.
(v) Claims outstanding
Provisions are made for the estimated cost of claims incurred but not settled at the balance sheet date, including
the cost of claims incurred but not yet reported to the Syndicate. The estimated cost of claims includes expenses
to be incurred in settling claims and allows for the expected value of salvage and other recoveries.
QBE SYNDICATE 2999
ANNUAL REPORT 27 31 DECEMBER 2025
NOTES TO THE ANNUAL ACCOUNTS (continued)
for the year ended 31 December 2025
1. Accounting policies (continued)
(b) Basis of accounting for insurance (continued)
(v) Claims outstanding (continued)
Outstanding claims are estimated by reviewing individual claims and making allowance for claims incurred but
not reported using past experience and trends adjusted for foreseeable events.
Case estimates are set by experienced claims technicians, applying their skill and specialist knowledge to the
circumstances of individual claims. The ultimate cost of outstanding claims, including claims incurred but not
reported, is estimated by the Syndicate actuaries who apply recognised actuarial techniques considered
appropriate for each portfolio, such as the Chain Ladder and Bornhuetter-Ferguson methods. These methods take
into account, amongst other things, statistical analysis of the development of the value and frequency of past
claims and the results of analyses undertaken at the point of underwriting. Techniques considered appropriate
for specific portfolios include contract by contract analysis, segmentation by subclass, and stochastic analysis.
Classes of business are analysed at a level of detail appropriate to their materiality. Allowance is made for
changes or uncertainties which may create distortions in the underlying statistics, or which might cause the cost
of unsettled claims to increase or decrease when compared with the cost of previously settled claims, for example,
one-off occurrences and changes in mix of business, policy conditions or the legal environment.
The Syndicate actuaries produce an estimate of reserves, which is reviewed by an independent actuarial firm,
and is then assessed by QBE EO management with input from the Syndicate underwriting and claims experts.
As provisions for claims outstanding are based on information, which is currently available, the eventual outcome
may vary from the original assessment depending on the nature of information received or developments in
future periods. For certain classes of business, including liability and other long tail classes written by the
Syndicate, claims may not be apparent for many years after the event giving rise to the claim has happened.
These classes will typically display greater variation between initial estimates and final outcomes.
Differences between the estimated cost and subsequent re-estimation or settlement of claims are reflected in the
technical account for the year in which these claims are re-estimated or settled.
Provisions are calculated gross of any reinsurance recoveries. In accordance with accounting regulations,
discounting of outstanding claims is permitted in certain circumstances. For the Syndicate, this includes
discounting of outstanding reserves in respect of liabilities relating to periodical payment orders.
(vi) Reinsurance recoveries
An estimate is made of the amounts that will be recoverable from reinsurers based upon the gross claims
provisions and having due regard to collectability. Reinsurance recoveries are estimated by reviewing individual
claims including allowance for claims incurred but not reported and assessing the reinsurance recovery which is
expected based on the outwards reinsurance protections. Reinsurance recoveries estimates are set by experienced
outwards reinsurance technicians, applying their skill and specialist knowledge to the circumstances of individual
claims and the outwards reinsurance protections.
(vii) Unexpired risks provision
Provisions are made for any deficiencies arising when unearned premiums, net of associated acquisition costs,
are insufficient to meet expected claims and expenses after taking into account future investment return on the
investments supporting the unearned premiums provision and unexpired risks provision. The expected claims
are calculated having regard to events that have occurred prior to the balance sheet date.
All business classes are managed together, therefore unexpired risk surpluses and deficits at the class of business
level can be offset.
(viii) Acquisition costs
Acquisition costs (which include commission costs) are the costs associated with obtaining and recording
insurance contracts. Acquisition costs are capitalised when they relate to the acquisition of new business or
renewal of existing business and are referred to as deferred acquisition costs. These costs are amortised on the
same basis as the earning pattern of the premium, over the period of the insurance contract to which they relate.
At the reporting date, deferred acquisition costs represent the capitalised costs that relate to the unearned
premium. Acquisition costs are deferred in recognition of their future benefit and are measured at cost.
QBE SYNDICATE 2999
ANNUAL REPORT 28 31 DECEMBER 2025
NOTES TO THE ANNUAL ACCOUNTS (continued)
for the year ended 31 December 2025
1. Accounting policies (continued)
(c) Foreign currency
The functional currency of the Syndicate is UK Pound Sterling
of GBP.
Transactions denominated in foreign currencies are translated into sterling at the rates of exchange prevailing at the time
of the transactions. Assets and liabilities denominated in foreign currencies are translated into sterling at the rates of
exchange prevailing at the balance sheet date with the exception of non-monetary assets and liabilities, which are
maintained at historic rates. Open foreign exchange derivatives are marked to market at year end date. All assets and
liabilities arising from insurance contracts are treated as monetary items.
Exchange gains or losses are recognised in the profit and loss non-technical account.
(d) Investments
(i) Other financial investments
Other financial investments comprise shares and other variable yield securities, units in unit trusts, debt
securities, other fixed income securities, loans and deposits with credit institutions. These are managed on a fair
value basis in accordance with the Syndicate’s investment strategy. The Syndicate has elected to measure other
financial investments at fair value through the profit and loss non-technical account. All fair value gains and
losses on other financial investments are reallocated to the technical account as all investments held by the
Syndicate support its insurance operations.
Listed investments are stated at fair value using quoted prices in active markets for the same instruments where
available. In the absence of an active market, current or recent prices for similar instruments may be used to
estimate fair value, or other valuation techniques for which all significant inputs are based on observable market
data.
Units in unit trusts, including unit trusts which invest in property, are stated at fair value using current unit prices
as advised by the responsible entity, trustee or equivalent of the investment management scheme.
Other unlisted investments are carried at the Directors’ estimate of the current fair value, where prices are sourced
from the investment manager who may use a combination of observable and comparable market prices where
available and carried book value where none exist.
Loans to the Central Fund at Lloyd’s are included within Shares and other variable yield securities and units in
unit trusts. The loans are valued based on amounts collected by Lloyd’s on a percentage of the Syndicate gross
written premium forecast. There is no contractual obligation for Lloyd’s to settle the loans and there is no market
in which these loans are tradeable. The loans are valued at fair value.
Other financial investments are derecognised when the right to receive future cash flows from the assets has
expired, or when the Syndicate has transferred substantially all the risks and rewards of ownership.
(ii) Derivative financial instruments
Derivatives are initially recognised at fair value on the date on which a derivative contract is entered into and
are subsequently stated at fair value through the profit and loss non-technical account, using valuation techniques
for which all significant inputs are based on observable market data.
(e) Cash at bank and in hand
Cash comprises cash at bank and deposits which are used by the Syndicate in the management of its short-term
commitments and operational cash requirements.
(f) Cash and cash equivalents
Cash and cash equivalents include cash at bank and in hand and other short-term, highly liquid investments that are readily
convertible to known amounts of cash and that are subject to an insignificant risk of changes in value.
(g) Overseas deposits
Overseas deposits, classified as “Other” in Other Assets, comprise funds held in overseas deposits which are subject to
Lloyd’s trust fund arrangements. These are managed on a fair value basis in accordance with Lloyd’s investment strategy.
The Syndicate has elected to measure overseas deposits at fair value through the profit and loss non-technical account.
QBE SYNDICATE 2999
ANNUAL REPORT 29 31 DECEMBER 2025
NOTES TO THE ANNUAL ACCOUNTS (continued)
for the year ended 31 December 2025
1. Accounting policies (continued)
(g) Overseas deposits (continued)
Overseas deposits are stated at fair value using quoted prices in active markets for the same instruments where available.
In the absence of an active market, current or recent prices for similar instruments may be used to estimate fair value, or
other valuation techniques for which all significant inputs are based on observable market data.
Overseas deposits are derecognised when the right to receive future cash flows from the assets has expired, or when the
Syndicate has transferred substantially all the risks and rewards of ownership.
(h) Debtors
Debtors comprise amounts receivable in the normal course of business. Debtors are initially recognised at transaction
price, and where applicable are subsequently measured at amortised cost using the effective interest rate method. The
recoverability of these assets is assessed at each balance date and appropriate provision made to ensure that the balances
properly reflect the amounts that will ultimately be received, taking into account counterparty credit risk and the
contractual terms of the contract.
(i) Creditors
Creditors comprise amounts due in the normal course of business. Creditors are initially recognised at transaction price,
and where applicable are subsequently measured at amortised cost using the effective interest rate method. Amounts owed
to group undertakings are unsecured, interest free and payable on demand, except where specific loan agreements exist
prescribing the term and other features of the loan.
(j) Investment income
Investment income, excluding dividends is accounted for on an accruals basis in the profit and loss non-technical account,
with the exception of dividends which are recognised when the right to receive the income is established (usually the ex-
dividend date). Investment income includes realised gains or losses on the disposal of financial assets.
A transfer is made from the non-technical account to the technical account for the entire return on investments which
support the insurance technical provisions.
(k) 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 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 on behalf of the member during the year are included in the
balance sheet under the heading “Members’ balance”.
No provision has been made for any overseas tax payable by the member on underwriting results.
(l) Administrative expenses
Administrative expenses are taken into account on an accrual basis. These recharged expenses include the costs of staff,
who are employed by QBE Management Services (UK) Limited (‘MSUK’) and QBE Europe SA/NV, as well as QBE
Management (Ireland) Limited. MSUK operates both defined benefit and defined contribution pension schemes, the
expense of which is included in the recharges. The recharged expenses also include the costs of various service and claims
handling companies.
(m) Profit commission
Profit commission is recognised on the basis of the annual accounting result for each year of account and charged to the
Syndicate as incurred. No profit commission has been charged by the Managing Agent.
QBE SYNDICATE 2999
ANNUAL REPORT 30 31 DECEMBER 2025
NOTES TO THE ANNUAL ACCOUNTS (continued)
for the year ended 31 December 2025
1. Accounting policies (continued)
(n) Critical accounting estimates and judgements
The Syndicate makes estimates and judgments in respect of the reported amounts of certain assets, liabilities and income.
These estimates and judgments are determined by qualified and experienced employees with reference to historical data
and reasoned expectations of future events and are continually updated. Actual results may differ from these estimates.
Estimates which are sensitive to changes in future economic conditions could be impacted by significant changes in the
economic and regulatory environment, such as geopolitical unrest, supply chain disruptions, climate change and inflation.
The key uncertainty is the risk that inflation remains higher than expected over the coming years, and elevated for longer
than expected, or the impact on claims inflation is significantly higher which would lead to increased claims reserves.
Our estimates include an explicit allowance for the impact of increased levels of inflation. Management continues to
monitor the geopolitical environment in which the Syndicate operates, the war in Ukraine (including legal uncertainty
relating to Aviation), the unrest in the Middle East and any developments that may impact its assessment of potential
exposures.
The following are the critical estimates that the Syndicate has made in the process of applying the accounting policies
and that have the most significant effect on the amounts recognised in the accounts.
Outstanding claims provisions
The Syndicate’s net outstanding claims provision comprises:
• The gross estimate of expected future claims payments; and
• Amounts recoverable from reinsurers based on the gross estimate.
Gross estimate
The provision for expected future payments includes claims reported but not yet paid; claims incurred but not reported
(‘IBNR’); claims incurred but not enough reported (‘IBNER’); and estimated claims handling costs, being the direct and
indirect expenses incurred in the settlement of claims.
The estimation of IBNR is generally subject to a greater degree of uncertainty than the estimation of the cost of settling
claims already notified to the Syndicate, where more information about the claims is generally available. Liability and
other long tail classes of business, where claims settlement may not happen for many years after the event giving rise to
the claim, typically display greater variability between initial estimates and final settlement due to delays in reporting
claims and uncertainty in respect of court awards and future claims inflation. Claims in respect of property and other short
tail classes are typically reported and settled sooner after the claim event, giving rise to more certainty. The estimation
techniques and assumptions used in determining the gross estimate are described below.
The Syndicate’s process for establishing the gross estimate involves extensive consultation with internal and external
actuaries, claim managers, underwriters and other senior management. This process includes quarterly in-house claims
review meetings attended by senior divisional management and detailed review by external actuaries at least annually.
The determination of the amounts that the Syndicate will ultimately pay for claims arising under insurance and reinsurance
contracts involves a number of critical assumptions. Some of the uncertainties impacting these assumptions are as follows:
• Changes in patterns of claims incidence, reporting and payment;
• Volatility in the estimation of future costs for long tail insurance classes due to the longer period of time that
elapses before a definitive determination of the ultimate claims cost can be made;
• Incidence of catastrophic events close to the balance sheet date;
• Changes in the legal environment, including the interpretation of liability laws and the quantum of damages
including but not limited to Ogden rate changes; and
• Social and economic trends, for example price and wage inflation and interest rate changes.
Gross estimates for each class of business are determined by reference to a variety of estimation techniques, generally
based on a statistical analysis of historical experience which assumes an underlying pattern of claims development and
payment. The final selected estimates are based on a judgmental consideration of the results of each method and
qualitative information, for example, the class of business, the maturity of the portfolio and the expected term to settlement
of the class. In setting the provision for insurance liabilities, a best estimate is determined on an undiscounted basis and
an allowance for risk and uncertainty is added as explained in note 1(b)(v). Projections are based on both historical
experience and external benchmarks where relevant.
Estimates are calculated gross of any reinsurance recoveries. A separate estimate is made of the amounts recoverable
from reinsurers based on the gross estimate
QBE SYNDICATE 2999
ANNUAL REPORT 31 31 DECEMBER 2025
NOTES TO THE ANNUAL ACCOUNTS (continued)
for the year ended 31 December 2025
1. Accounting policies (continued)
(n) Critical accounting estimates and judgements (continued)
Assets arising from contracts with reinsurers
Assets arising from reinsurance recoveries under contracts with the Syndicate’s reinsurers are determined using the same
methods described above. The recoverability of these assets is assessed at each balance date and appropriate provision
made to ensure that the balances properly reflect the amounts that will ultimately be received, taking into account
counterparty credit risk and the contractual terms of the reinsurance contract.
The Syndicate benefits from an aggregate reinsurance programme that provides cover for certain large and catastrophe
events. A key input into the calculation of recoveries on this contract is an estimate of the ultimate claims for the
contributing large and catastrophe events by accident year. Actuarial reserving primarily produces ultimate claims by
underwriting year, with some estimation required to assign IBNR to an accident year, particularly on more recent accident
years which are still immature in their development for certain large losses on long tail classes of business.
Premiums estimates
Premiums written and earned include signed premiums as well as unclosed premiums, being business which has an
attachment date prior to the end of the reporting period but which has not yet been processed into the systems utilised by
the Syndicate. This unclosed premium is initially based on the estimated premium income (‘EPI’) of each contract, before
being written and earned based on established patterns which reflect expected timings and risk exposures. If premium
cannot be reliably estimated at that date, then the premium written is recognised as soon as it can be reliably determined.
The underwriters adjust their EPI estimates as the year of account matures. At the end of the calendar year, premiums are
adjusted to match the actual signed premium for the closing year of account and all closed years of account, as appropriate.
Estimation techniques are necessary to quantify the EPI on all syndicate business written and are commonly used within
the Lloyd’s insurance market. The process of determining the EPI is based on a number of factors, which can include:
• Historical trends of business written versus expectation;
• Current and expected market conditions for the line of business; and
• Cover holder business plan documents provided prior to binding.
Due to the nature of the Lloyd’s business and the settlement patterns of the underlying business it is also not uncommon
for some contracts to take a number of years to finalise and settle, and as such remain as a receivable on the balance sheet.
There are no critical judgments made in the preparation of these annual accounts.
2. Capital management
Capital Framework at Lloyd’s
Lloyd’s is a regulated undertaking and subject to supervision by the 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 would comply with the 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 an overall and member level only
respectively, not at syndicate level. Accordingly, the capital requirement in respect of Syndicate 2999 is not disclosed in
these accounts.
Lloyd’s capital setting process
In order to meet Lloyd’s requirements, each syndicate is required to calculate its Solvency Capital Requirements (‘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.
QBE SYNDICATE 2999
ANNUAL REPORT 32 31 DECEMBER 2025
NOTES TO THE ANNUAL ACCOUNTS (continued)
for the year ended 31 December 2025
2. Capital management (continued)
Lloyd’s capital setting process (continued)
A syndicate comprises one or more underwriting members of Lloyd’s. Each member is liable for its own share of
underwriting liabilities on the syndicates on which it is participating but not other member’s shares. Accordingly, the
capital requirements that Lloyd’s set for each member operate on a similar basis. Each member’s SCR shall thus be
determined by the sum of the member’s share of the syndicate’s SCR ‘to ultimate’.
Where a member participates on more than one syndicate, a credit for diversification is provided to reflect the spread of
risk, but consistent with determining an SCR which reflects the capital requirement to cover a 1 in 200 loss ‘to ultimate’
for that member. Over and above this, Lloyd’s applies a capital uplift to the member’s capital requirement, known as the
Economic Capital Assessment (‘ECA’). The purpose of this uplift, which is a Lloyd’s and not a Solvency II requirement,
is to meet Lloyd’s financial strength, licence and rating objectives. The capital uplift applied for 2025 was maintained at
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’ or ‘FAL’), 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
Balance Sheet on pages 23 and 24, represent resources available to meet members’ and Lloyd’s capital requirements.
Funds at Lloyd’s
FAL 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 PRA requirements and resource criteria. 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
accounts by way of such capital resources. However, the Managing Agent is able to make a call on the member’s FAL to
meet liquidity requirements or to settle losses through a formal process controlled by Lloyd’s.
QBE SYNDICATE 2999
ANNUAL REPORT 33 31 DECEMBER 2025
NOTES TO THE ANNUAL ACCOUNTS (continued)
for the year ended 31 December 2025
3. Segmental information
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
premium
written
Gross
premium
earned
Gross
claims
incurred
Gross
operating
expenses
Reinsurance
balance Total
£’000 £’000 £’000 £’000 £’000 £’000
Direct Insurance
| Accident and health | | ( | ( | | ( | |
| Motor (third party liability) | | ( | ( | ( | | |
| Marine, aviation and transport | | ( | ( | ( | | |
| Fire and other damage to property | | | ( | ( | ( | |
| Third party liability | | ( | ( | | ( | |
| Credit and suretyship | | ( | ( | ( | | |
| Miscellaneous ( | ( | | ( | | ( | |
| Total direct insurance | ( | ( | ( | | ||
| Reinsurance acceptances | | ( | ( | | | |
| Total | ( | ( | ( | | ||
2024
Gross
premium
written
Gross
premium
earned
Gross
claims
incurred
Gross
operating
expenses
Reinsurance
balance Total
£’000 £’000 £’000 £’000 £’000 £’000
Direct insurance
| Accident and health | | ( | ( | ( | ( | |
| Motor (third party liability) | | | ( | ( | ( | ( |
| Marine, aviation and transport | | | ( | ( | ( | |
| Fire and other damage to property | | | ( | ( | ( |
Third party liability 600,572 582,869 (421,589 ) (167,188 ) 16,229 10,321
Credit and suretyship 49,353 42,524 (8,539 ) (12,652 ) (9,495 ) 11,838
Miscellaneous - - 6 4,126 (2 ) 4,130
| Total direct insurance | ( | ( | ( | |||
| Reinsurance acceptances | | | ( | ( | ( | |
Total 2,536,209 2,364,072 (1,356,224 ) (597,605 ) (170,071 ) 240,172
A loss of £104,509k was recognised in profit or loss during the year on buying reinsurance (2024: loss of £170,071k).
Operating expenses includes standard personal expenses.
QBE SYNDICATE 2999
ANNUAL REPORT 34 31 DECEMBER 2025
NOTES TO THE ANNUAL ACCOUNTS (continued)
for the year ended 31 December 2025
3. Segmental information (continued)
The gross premiums written for direct insurance by location (where the contracts were concluded) is presented in the table
below:
2025 2024
£’000 £’000
United Kingdom 1,728,366 1,610,844
4. Net operating expenses
2025 2024
£’000 £’000
| Acquisition costs | ||
| Changes in deferred acquisition costs | ( | ( |
| Administrative expenses | ||
| Reinsurance commission revenue | ( | ( |
Total commissions for direct insurance business for the year amounted to:
| 2025 | 2024 | |
| £’000 | £’000 | |
| Total commissions for direct insurance business |
Administrative expenses include:
2025 2024
£’000 £’000
Auditors’ remuneration:
Fees payable to the Syndicate’s auditors for the auditing of these accounts 816 805
Fees payable to the Syndicate’s auditors for other services pursuant to regulatory
requirements 178 107
5. Employees
The Syndicate and managing agent did not directly incur staff costs during the year (2024: nil). Staff are jointly employed
by MSUK and QBE Europe SA/NV, as well as QBE Management (Ireland) Limited, to provide services to the Company
during the year and up to the date of signing. MSUK recharged the Syndicate for the services, provided by these staff.
MSUK and QBE Europe SA/NV are fellow group undertakings.
QBE SYNDICATE 2999
ANNUAL REPORT 35 31 DECEMBER 2025
NOTES TO THE ANNUAL ACCOUNTS (continued)
for the year ended 31 December 2025
6. Directors’ emoluments and Key management compensation
The Directors of QUL and the Active Underwriters received the following aggregate remuneration charged to the
Syndicate and included within net operating expenses:
2025 2024
£’000 £’000
| Directors of the Managing Agent | ||
| Active Underwriters |
Further information in respect of the Directors of QUL is provided in that Company’s annual report.
7. Investment return
2025 2024
£’000 £’000
Interest and similar income
From financial assets designated at fair value through profit or loss
Interest and similar income 85,678 64,592
Dividend income 4,424 3,880
From financial assets at amortised cost
Interest on cash at bank 4,323 3,489
Other income from investments
From financial assets designated at fair value through profit or loss
Gains on the realisation of investments 24,574
Unrealised gains on investments
Unrealised losses on investments
Investment management expenses (3,236 ) (2,897 )
Total investment return 154,987 101,197
Transferred to the technical account from the non-technical account (154,987 ) (101,197 )
The investment return was wholly reallocated to the technical account as all investments held support the underwriting
activities of the Syndicate.
8. Financial investments
2025 2024
Cost Fair value Cost Fair value
£’000 £’000 £’000 £’000
Shares and other variable yield securities and units in
unit trusts 187,463 221,073 195,634 214,908
Debt securities and other fixed income securities 2,605,696 2,555,738 2,489,337 2,434,854
Derivative assets - - - 17,485
QBE SYNDICATE 2999
ANNUAL REPORT 36 31 DECEMBER 2025
NOTES TO THE ANNUAL ACCOUNTS (continued)
for the year ended 31 December 2025
8. Financial investments (continued)
Included in the carrying values above are listed investments as follows:
2025 Restated*
2024
£’000 £’000
Listed investments
Total Listed investments
1,676,003 1,296,976
*The comparative figure has been restated by £1,338,839k to correct the classification between listed and unlisted
investments. The value of listed investments previously disclosed was £2,635,815k.
The table below presents an analysis of financial investments by their measurement classification:
2025 2024
£’000 £’000
Financial assets measured at fair value through profit and loss | ||
| Total financial investments | ||
9. Derivative financial instrument
The below table analyses the derivative assets and liabilities by type:
2025 2024
Notional
amount
Fair value Notional
amount
Fair value
£’000 £’000 £’000 £’000
| Foreign exchange forward contracts | | ( | | |
| Total | ( | | |
Foreign currency derivatives
The Syndicate uses forward foreign exchange derivatives in order to hedge its exposure to foreign currencies. These are
valued using the underlying foreign exchange rates at the year end.
The forward foreign exchange derivatives outstanding at year end all expire by 28 August 2026 (2024: 10 October 2025).
During the year a gain of £15,944k (2024: gain of £38,967k) relating to such contracts was recognised in the profit and
loss non-technical account.
Equity derivatives
The Syndicate enters into equity derivatives from time to time in order to facilitate efficient portfolio management and
the management of market risk. The Syndicate did not hold any equity derivatives during the year (2024: nil).
QBE SYNDICATE 2999
ANNUAL REPORT 37 31 DECEMBER 2025
NOTES TO THE ANNUAL ACCOUNTS (continued)
for the year ended 31 December 2025
10. Valuation hierarchy
The table below shows the financial instruments carried at fair value by valuation method.
2025
Level 1 Level 2 Level 3 Total
£’000 £’000 £’000 £’000
Shares and other variable yield securities and units in
unit trusts 109,525 39,355 72,193 221,073
Debt securities and other fixed income securities 760,972 1,794,766 - 2,555,738
Derivative assets - - - -
Total Financial Investments 870,497 1,834,121 72,193 2,776,811
Other assets – Overseas deposits 150,527 143,142 - 293,669
Derivate liabilities - (485 ) - (485 )
Total 1,021,024 1,976,778 72,193 3,069,995
The table below shows the financial instruments carried at fair value by valuation method.
2024
Level 1 Level 2 Level 3 Total
£’000 £’000 £’000 £’000
Shares and other variable yield securities and units in
unit trusts 97,593 57,432 59,883 214,908
Debt securities and other fixed income securities
Derivative assets
Total Financial Investments 611,779 1,995,585 59,883 2,667,247
Other assets – Overseas deposits
Derivate liabilities - - - -
Total 766,759 2,140,926 59,883 2,967,568
Level 1 Valuation is based on quoted prices in active markets for the same instruments.
Level 2 Valuation is based on quoted market prices in active markets for similar assets or liabilities or other valuation
techniques for which all significant inputs are based on observable market data, for example, consensus
pricing using broker quotes and valuation models with observable input. For valuation of the syndicate
holdings in collective investment schemes, including those which invest into unlisted property, fair value is
determined by using the current unit price as advised by the responsible entity, trustee or equivalent of the
Investment management scheme.
Level 3 Valuation techniques are applied in situations where any one or more significant valuation input is not based
on observable market data. This includes infrastructure assets, unlisted property and loans to the Lloyd's
central fund. Infrastructure asset prices are sourced from the investment manager who may use a combination
of observable and comparable market prices where available, and other valuation techniques. For unlisted
property, fair value is determined by using the current unit price as advised by the responsible entity, trustee
or equivalent of the investment management scheme. Loan amounts to the Lloyd's Central Fund are valued
at fair value.
QBE SYNDICATE 2999
ANNUAL REPORT 38 31 DECEMBER 2025
NOTES TO THE ANNUAL ACCOUNTS (continued)
for the year ended 31 December 2025
10. Valuation hierarchy (continued)
Movements in level 3 investments
2025
£’000
2024
£’000
At 1 January 59,883 59,324
Purchases 27,699 1,329
Unrealised gains 493 4,062
Disposals (15,882) (4,832)
At 31 December 72,193 59,883
The Syndicate’s approach to measuring the fair value of investments is described below:
(i) Shares and other variable yield securities and units in unit trusts
These assets mainly comprise listed equities traded in active markets valued by reference to quoted prices.
(ii) Debt securities and other fixed income securities
These assets are valued based on quoted prices sourced from external data providers. The fair value categorisation of
these assets is based on the observability of the inputs.
(iii) Derivative assets and liabilities
For derivative assets and liabilities traded in an active market, the fair value is determined by reference to quoted market
prices.
(iv) Other assets – overseas deposits
Overseas deposits managed as part of the investment portfolio are categorised as Level 1 in the fair value hierarchy and
are valued at par.
11. Financial risk
The activities of the Syndicate expose it to financial risks such as market risk (including currency risk, interest rate risk
and equity price risk), credit risk and liquidity risk. The Syndicate’s risk management framework recognises the
unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the
Syndicate.
The key objectives of the Syndicate’s asset and liability management strategy are to ensure sufficient liquidity is
maintained at all times to meet the Syndicate’s obligations, including its settlement of insurance liabilities and, within
these parameters, to optimise investment returns for the Syndicate.
(i) Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market factors. Market risk comprises three types of risk: currency risk (due to fluctuations in
foreign exchange rates), interest rate risk (due to fluctuations in market interest rates) and price risk (due to
fluctuations in market prices).
The objective of market risk management is to manage and control market risk exposures within acceptable
parameters, while optimising the return on risk. The nature of the Syndicate exposures to market risk and its
objectives, policies and processes for managing market risk have not changed significantly from the prior
year.
a) Management of market risks
For each of the major components of market risk the Syndicate has policies and procedures in place which
detail how each risk should be managed and monitored. The management of each of these major components
of major risk and the exposure of the Syndicate at the reporting date to each major risk are addressed below.
QBE SYNDICATE 2999
ANNUAL REPORT 39 31 DECEMBER 2025
NOTES TO THE ANNUAL ACCOUNTS (continued)
for the year ended 31 December 2025
11. Financial risk (continued)
(i) Market risk (continued)
b) Sensitivity analyses
The sensitivity analyses in the sections below are performed for reasonably possible movements in 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.
The sensitivity analyses demonstrate 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 analyses are 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) Currency risk
The Syndicate writes business primarily in UK Pound Sterling (‘GBP’), US dollar (‘USD’), Euro, Canadian
dollar (‘CAD’), Australian dollar (‘AUD’) and Japanese Yen (‘JPY’) and is therefore exposed to foreign
currency risk in respect of its foreign currency exposures arising from fluctuations in these exchange rates. The
Syndicate manages its exposure to foreign currencies based on the balance sheet by currency which also includes
insurance assets and liabilities. Forward foreign exchange derivatives are used to protect the currency positions.
The risk management process covering forward foreign exchange derivatives involves close senior management
scrutiny, including regular board and other management reporting. All forward foreign exchange derivatives are
subject to delegated authority levels provided to management, and levels of exposure are reviewed on an ongoing
basis.
The table below summarises the carrying value of the Syndicate’s assets and liabilities, at the reporting date:
2025 GBP USD Euro CAD AUD JPY Total
£’000 £’000 £’000 £’000 £’000 £’000 £’000
| Investments | | | | | | | |
Reinsurer’s share of technical p rovisions | |||||||
Debtors | | | ( | ( | ( | ( | |
Other assets | | | | | | | |
Prepayments and accrued income | |||||||
Total assets | | | | | | | |
Technical p rovisions | ( | ( | ( | ( | ( | ( | ( |
Creditors | ( | ( | | | ( | ( | ( |
Accruals and deferred income | ( | ( | ( | ( | |||
Total liabilities | ( | ( | ( | ( | ( | ( | ( |
Total ca p ital and reserves | ( | | | ( | | | ( |
QBE SYNDICATE 2999
ANNUAL REPORT 40 31 DECEMBER 2025
NOTES TO THE ANNUAL ACCOUNTS (continued)
for the year ended 31 December 2025
11. Financial risk (continued)
(i) Market risk (continued)
c) Currency risk (continued)
The table below summarises the carrying value of the Syndicate’s assets and liabilities, at the reporting date:
| 2024 | GBP | USD | Euro | CAD | AUD | JPY | Total |
| £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | |
Investments | | | | | | ||
Reinsurer’s share of technical provisions | | | | | | | |
Debtors | | ( | ( | ( | ( | ||
Other assets | | | | | | ||
Prepayments and accrued income | | | | | | ||
Total assets | | ||||||
Technical provisions | ( | ( | ( | ( | ( | ( | ( |
Creditors ( ) ( ) | ( ) ( ) | ( ) | |||||
Accruals and deferred | |||||||
income | ( | ( | ( | ( | ( | ( | ( |
| Total liabilities | ( ) | ( ) | ( ) | ( ) | ( ) | ( ) ( | ) |
| Total capital and reserves | ( | | | ( | | | ( |
QBE SYNDICATE 2999
ANNUAL REPORT 41 31 DECEMBER 2025
NOTES TO THE ANNUAL ACCOUNTS (continued)
for the year ended 31 December 2025
11. Financial risk (continued)
(i) Market risk (continued)
c) Currency risk (continued)
The table below shows the impact on profit and loss and members’ balance as a result of movements in foreign
exchange rates. The basis for this sensitivity analysis is the residual foreign currency exposures at the balance
sheet date.
2025 2024
Movement in
Profit / (loss) and
members’
balance
Profit / (loss) and
members’
balance
variable %
£’000 £’000
USD +10 (2,186) (10,029)
-10 2,186 10,029
New Zealand dollar +10 (34) 711
-10 34 (711)
Euro +10 (1,030) 223
-10 1,030 (223)
JPY +10 (418) 39
-10 418 (39)
CAD
+10
-10
(1,150)
1,150
(2,065)
2,065
AUD
+10
-10
(793)
793
(1,147)
1,147
d) Interest rate risk
Interest rate risk is the risk that the fair value and/or future cash flows of a financial instrument will fluctuate
because of changes in interest rates.
The Syndicate is exposed to interest rate risk arising on interest bearing assets. Assets with floating interest rate
expose the Syndicate to cash flow interest rate risk. Fixed interest rate assets expose the Syndicate to fair value
interest rate risk. The Syndicate’s strategy is to invest in high quality, liquid fixed interest securities and cash
and to actively manage duration. The investment portfolios are actively managed to achieve a balance between
cash flow interest rate risk and fair value interest rate risk bearing in mind the need to meet the liquidity
requirements of the business.
The investment committee monitors the duration of these assets on a regular basis, targeting an investment
portfolio duration that, in the event of changes in interest rates, always maintains internal capital requirements.
The Syndicate’s sensitivity to movements in interest rates in relation to the value of fixed interest securities is
shown in the table below. A 50-basis point increase (or decrease) in yield curves has been selected based on
Lloyd’s requirement to be a reasonably possible change in the risk variable over the following year.
2025 2024
Impact on results
before tax
Impact on
members’
balances
Impact on results
before tax
Impact on
members’
balances
£’000 £’000 £’000 £’000
Interest rate risk | ||||
+50 basis points shift in yield | ||||
curves | ( | ( | ( | ( |
-50 basis points shift in yield | ||||
curves |
QBE SYNDICATE 2999
ANNUAL REPORT 42 31 DECEMBER 2025
NOTES TO THE ANNUAL ACCOUNTS (continued)
for the year ended 31 December 2025
11. Financial risk (continued)
(i) Market risk (continued)
d) Interest rate risk (continued)
The Syndicate’s exposure to interest rate risk for each significant class of interest-bearing financial assets and
liabilities is as follows:
2025 Floating
interest
rate
Fixed interest rate maturing in Total
1 year or
less
1 to 2
years
2 to 3
years
3 years &
over
£000 £000 £000 £000 £000 £000
Interest bearing assets 318,835 857,134 280,179 247,398 1,197,847 2,901,393
2024 Floating
interest
rate
Fixed interest rate maturing in Total
1 year or
less
1 to 2
years
2 to 3
years
3 years &
over
£000 £000 £000 £000 £000 £000
Interest bearing assets 434,722 935,294 304,569 172,238 910,607 2,757,430
Interest bearing assets include debt fund instruments of £15,252k (2024: nil) that are subject to interest rate risk
due to the underlying nature of the investments held within these debt fund instruments.
At 31 December 2025, the average duration of cash and fixed interest securities was 3.0 years (2024 2.4 years).
e) Equity price risk
Equity price risk is the risk that the fair value of an equity instrument will fluctuate because of changes in market
prices (other than those arising from interest rate or currency risk), whether those changes are caused by factors
specific to the individual equity instrument or its issuer, or factors affecting all similar equity instruments traded
on the market. The potential impact of movements in the market value of equities on the profit and loss account
and balance sheet is shown in the sensitivity analysis below.
The Syndicate holds a limited portfolio of equities which are subject to equity price risk. This exposure benefits
members through the enhanced longer-term returns on equities compared with debt securities.
Equity price risks are managed by setting and monitoring objectives and constraints on investments,
diversification plans and limits on investments. The management ensures that the Syndicate’s internal capital
requirements are met at all times, as well as those mandated by the Syndicate’s external regulators.
The potential impact of movements in the market value of equities on the profit and loss account and balance
sheet is shown in the sensitivity analysis below. A 5% increase (or decrease) in equity prices has been selected
based on Lloyd’s requirement as this is considered to be a reasonably possible change in the risk variable over
the following year.
The impact has been shown on the basis that equity funds are fully exposed to market price fluctuations. Equity
portfolios are from time to time hedged in order to manage this exposure. Exchange traded futures contracts used
from time to time to provide the hedges are not perfectly correlated to the composition of the underlying equity
fund. At 31 December 2025, the Syndicate held developed market equity investment in FTSE 100 Exchange
Traded Fund.
2025 2024
Impact on results
before tax
Impact on
members’
balances
Impact on results
before tax
Impact on
members’
balances
£’000 £’000 £’000 £’000
Equity price risk
5 percent increase in
equity prices
5 percent decrease in
equity prices
(5,476 )
(5,476 )
(4,829 )
(4,829 )
QBE SYNDICATE 2999
ANNUAL REPORT 43 31 DECEMBER 2025
NOTES TO THE ANNUAL ACCOUNTS (continued)
for the year ended 31 December 2025
11. Financial risk (continued)
f) Property price risk
Property price risk is the risk that the fair value of property will fluctuate because of changes in market prices.
The Syndicate is exposed to property price risk indirectly through holdings in unit trusts which invest in property
in key developed markets.
Financial impact
2025 2024
Movement in
Profit / (loss)
and members’
balance
Profit / (loss)
and members‘
balance
variable % £000 £000
Europe +10 476 -
-10 (476) -
(ii) Credit risk
Credit risk is the risk that one party to a financial instrument will cause financial loss to the other party by failing
to discharge an obligation.
The Syndicate is exposed to credit risk in respect of the following:
x Debt securities and derivative financial instruments;
x Reinsurers’ share of claims outstanding;
x Amounts due from intermediaries;
x Amounts due from reinsurers in respect of settled claims;
x Cash and cash equivalents; and
x Other debtors and accrued interest.
The nature of the Syndicate’s exposures to credit risk and its objectives, policies and processes for managing
credit risk have not changed significantly from the prior year.
a) Management of credit risk
The Syndicate’s credit risk in respect of debt securities is managed by placing limits on its exposure to a single
counterparty, by reference to the credit rating of the counterparty. Financial assets are graded according to current
credit ratings issued by rating agencies such as Standard and Poor’s. The Syndicate has a policy of investing
mainly in government issued and government backed debts. The Syndicate does not currently invest new monies
in speculative grade assets (i.e. those rated below BBB) in the core fixed income portfolio. The Syndicate does
not expect any investment counterparties to fail to meet their obligations given their strong credit ratings. The
Syndicate only uses derivatives in highly liquid markets.
The Syndicate limits the amount of cash and cash equivalents that can be deposited with a single counterparty
and maintains an authorised list of acceptable cash counterparties.
The Syndicate’s exposure to intermediaries and reinsurance counterparties is monitored by the individual
business units as part of their credit control processes.
All intermediaries must meet minimum requirements established by the Syndicate. The credit ratings and
payment histories of intermediaries are monitored on a regular basis.
Credit risk exposures are calculated regularly and compared with authorised credit limits before further
transactions are undertaken with counterparties. The credit ratings and payment histories of intermediaries are
monitored on a regular basis.
b) Exposure to credit risk
The carrying amount of financial assets and reinsurance assets represents the maximum credit risk exposure. The
Syndicate holds letters of credit as security to mitigate credit risk exposure to reinsurers.
QBE SYNDICATE 2999
ANNUAL REPORT 44 31 DECEMBER 2025
NOTES TO THE ANNUAL ACCOUNTS (continued)
for the year ended 31 December 2025
11. Financial risk (continued)
(ii) Credit risk (continued)
b) Exposure to credit risk (continued)
At the balance sheet date, the Syndicate held £5,853k (2024: £5,990k) in the form of letters of credit and
£263,177k (2024: £283,082k) as investment assets pledged.
The following table analyses the credit rating by investment grade of financial investments that are neither past
due nor impaired.
Neither past due nor impaired
2025 AAA AA A BBB Other Not rated Total
£’000 £’000 £’000 £’000 £’000 £’000 £’000
| Shares and other variable yield | |||||||
| securities and unit trusts | |||||||
Debt securities and other fixed income securities | |||||||
Overseas de p osits | 145,081 | 31,320 | 39,219 | 19,435 | 15,573 | 43,041 | 293,669 |
Deposits with ceding undertakings | | ||||||
Reinsurers’ share of claims outstandin g | | | | | | ||
Debtors arising out of direct insurance o p erations | |||||||
Debtors arising out of reinsurance operations | | | | | | | |
Cash at bank and in hand | | | | | | | |
Derivative assets | | | | | | | |
Other debtors and prepayments | | | | | | | |
Total | | | | ||||
Neither past due nor impaired
2024 AAA AA A BBB Other
Not rated
Total
£’000 £’000 £’000 £’000 £’000 £’000 £’000
Shares and other variable yield
securities and unit trusts 43,617 - 13,816 - - 157,475 214,908
Debt securities and other fixed income
securities
Overseas deposits 152,847 30,310 32,462 25,553 18,221 40,928 300,321
Deposits with ceding undertakings - - -
Reinsurers’ share of claims outstanding 546 452,603 511,141 71 - 40,752 1,005,113
Debtors arising out of direct insurance
operations - - - - -
Debtors arising out of reinsurance
operations - - - - -
Cash at bank and in hand - 9,028 13,116 111 - - 22,255
Derivative assets - - - - - 17,485 17,485
Other debtors and prepayments - - - - - 536,642
Total 585,669 1,486,276 1,274,262 275,160 115,433
The above tables have been aligned to the total value of the credit ratings per investment grade of financial instruments
that are neither past due nor impaired to note 11 (ii)(c), per 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.
QBE SYNDICATE 2999
ANNUAL REPORT 45 31 DECEMBER 2025
NOTES TO THE ANNUAL ACCOUNTS (continued)
for the year ended 31 December 2025
11. Financial risk (continued)
(ii) Credit risk (continued)
c) Financial assets that are past due or impaired
2025
Neither past
due nor
impaired
Past due but
not impaired
Gross value
of impaired
assets
Impairment
allowance Total
£’000 £’000 £’000 £’000 £’000
Shares and other variable yield securities
and unit trusts
Debt securities and other fixed income
securities
Overseas deposits 293,669 - - - 293,669
Deposits with ceding undertakings 2,438 - - - 2,438
Reinsurers’ share of claims outstanding 1,055,404 - - - 1,055,404
Debtors arising out of direct insurance
operations
Debtors arising out of reinsurance
operations
Cash at bank and in hand 36,736 - - - 36,736
Derivative assets - - - - -
Other debtors and prepayments 659,969 - - - 659,969
Total 6,164,643 330,059 - - 6,494,702
2024
Neither past
due nor
impaired
Past due but
not impaired
Gross value
of impaired
assets
Impairment
allowance Total
£’000 £’000 £’000 £’000 £’000
Shares and other variable yield securities
and unit trusts 214,908 - - - 214,908
Debt securities and other fixed income
securities 2,434,854 - - - 2,434,854
Overseas deposits 300,321 - - - 300,321
Deposits with ceding undertakings 3,651 - - - 3,651
Reinsurers’ share of claims outstanding 1,005,113 - - - 1,005,113
Debtors arising out of direct insurance
operations 499,568 97,611 - - 597,179
Debtors arising out of reinsurance
operations
Cash at bank and in hand 22,255 - - - 22,255
Derivative assets 17,485 - - - 17,485
Other debtors and prepayments 536,642 - - - 536,642
Total 5,566,662 269,594 - - 5,836,256
The value of financial assets included in past due but not impaired, do not have credit ratings.
QBE SYNDICATE 2999
ANNUAL REPORT 46 31 DECEMBER 2025
NOTES TO THE ANNUAL ACCOUNTS (continued)
for the year ended 31 December 2025
11. Financial risk (continued)
(ii) Credit risk (continued)
c) Financial assets that are past due or impaired (continued)
Past due but not impaired by
2025
Up to 3
months
3 to 6
months
6 months to
1 year
Greater
than 1 year Total
£’000 £’000 £’000 £’000 £’000
Debtors arising out of direct insurance
operations 24,138 18,018 9,004 19,692 70,852
Debtors arising out of reinsurance operations 133,838 70,116 2,562 52,691 259,207
Past due but not impaired by
2024
Up to 3
months
3 to 6
months
6 months to
1 year
Greater
than 1 year Total
£’000 £’000 £’000 £’000 £’000
Debtors arising out of direct insurance
operations 61,285 12,654 9,368 14,304 97,611
Debtors arising out of reinsurance operations 106,610 19,619 18,079 27,675 171,983
iii) Liquidity risk
Liquidity risk is the risk that the Syndicate will encounter difficulty in meeting obligations arising from insurance
contracts and financial liabilities. The Syndicate is exposed to daily calls on its available cash resources mainly
from claims arising from insurance contracts.
The nature of the Syndicate’s exposures to liquidity risk and its objectives, policies and processes for managing
liquidity risk have not changed significantly from the prior year.
a) Financial assets that are past due or impaired
The Syndicate’s approach to managing liquidity risk is to ensure, as far as possible, that it will always have
sufficient liquidity to meet its liabilities when they fall due, under both normal and stressed conditions.
The Syndicate’s approach to managing its liquidity risk is as follows:
x Forecasts are prepared and revised on a regular basis to predict cash outflows from insurance
contracts over the short, medium and long term;
x The Syndicate purchases assets with durations not greater than its estimated insurance contract
outflows;
x Assets purchased by the Syndicate are required to satisfy specified marketability requirements;
x The Syndicate maintains cash and liquid assets to meet daily calls on its insurance contracts;
x The Syndicate holds significant committed borrowing facilities from a range of highly rated banks
to enable cash to be raised in a relatively short time span; and
x The Syndicate regularly updates its contingency funding plans to ensure that adequate liquid
financial resources are in place to meet obligations as they fall due in the event of reasonably
foreseeable abnormal circumstances.
QBE SYNDICATE 2999
ANNUAL REPORT 47 31 DECEMBER 2025
NOTES TO THE ANNUAL ACCOUNTS (continued)
for the year ended 31 December 2025
11. Financial risk (continued)
(iii) Liquidity risk (continued)
a) Financial assets that are past due or impaired (continued)
In addition to the treasury cash held for working capital requirements, a minimum percentage of the Syndicate’s
total financial assets is held in liquid, short term money market securities to ensure there are sufficient liquid
funds available to meet current obligations.
b) 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 the contractual interest
payments) could be paid assuming conditions are consistent with those at the reporting date.
Undiscounted net cash flows
2025
No
maturity
stated Up to 1 year 1 to 3 years 3 to 5 years
Greater
than 5
years
Total
£’000 £’000 £’000 £’000 £’000 £’000
Claims outstanding
Derivative liabilities
Creditors
Total - 1,718,313 1,265,746 749,966 1,080,709 4,814,734
Undiscounted net cash flows
2024
No
maturity
stated Up to 1 year 1 to 3 years 3 to 5 years
Greater
than 5
years Total
£’000 £’000 £’000 £’000 £’000 £’000
Claims outstanding - 969,910 1,154,704 668,711 954,272
Derivate liabilities - - - - -
Creditors - 501,921 - - - 501,921
Total - 1,471,831 1,154,704 668,711 954,272 4,249,518
At 31 December 2025, the average contractual duration of cash and fixed interest securities was 4.4 years (2024: 3.9
years).
QBE SYNDICATE 2999
ANNUAL REPORT 48 31 DECEMBER 2025
NOTES TO THE ANNUAL ACCOUNTS (continued)
for the year ended 31 December 2025
12. Technical provisions
The tables below show the changes in the insurance contract liabilities and assets from the beginning of the period to the
end of the period.
2025
Gross Reinsurance Net
Provision for unearned premiums
£’000 £’000 £’000
At 1 January | | ( | |
Premiums written during the year | | ( | |
Premiums earned during the year | ( | | ( |
Effect of foreign exchange | ( | | ( |
At 31 December | | ( | |
Claims outstanding
At 1 January | | ( | |
Claims paid during the year | ( | | ( |
Expected cost of current year claims | | ( | |
Change in estimates of prior year | |||
| provisions | | | |
Discount unwind | ( | ( | ( |
Effect of foreign exchange | ( | | ( |
Other | ( | | ( |
At 31 December | | ( | |
Total technical provisions | 5,550,408 | (1,275,181) | 4,275,227 |
The Syndicate applies discounting of outstanding reserves in respect of liabilities relating to periodical payment orders
on third party liability and motor lines of business. See note 13 for further information on the impact of discounting on
the outstanding reserves.
The unwind of discount has been included within the Statement of profit or loss – technical account – within Net change
in provisions for claims.
During the prior period, the Syndicate entered into a transaction to reinsure certain prior year claims liabilities. The
transaction had a positive net impact on the reported profit for the financial year.
QBE SYNDICATE 2999
ANNUAL REPORT 49 31 DECEMBER 2025
NOTES TO THE ANNUAL ACCOUNTS (continued)
for the year ended 31 December 2025
12. Technical provisions (continued)
Claims outstanding
At 1 January
Claims paid during the year
(833,123 ) 268,846 (564,277 )
Expected cost of current year claims
Change in estimates of prior year
provisions
(46,949 )
Discount unwind
(20,565 ) 248 (20,317 )
Effect of foreign exchange
(24,561 ) 27,103 2,542
Other
(1,382 ) 1,588 206
At 31 December
Total technical provisions
4,964,204 (1,148,241) 3,815,963
Refer to note 20 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.
13. Discounted claims
Discounting may be applied to claims provisions where there are individual claims with structured settlements that have
annuity-like characteristics, or for books of business with mean term payments greater than four years from the accounting
date.
The claims have been discounted as follows:
Average discounted rates Average mean term of
liabilities
2025 2024
2025 2024
% % Years Years
| Class of business | ||||
| Motor (Third party liability) | | |||
| Third party liability | | |
2024 Gross Reinsurance Net
Provision for unearned premiums £’000 £’000 £’000
At 1 January | ( | ||
Premiums written during the year | ( | ||
Premiums earned during the year | ( | ( | |
Effect of foreign exchange | ( | ( | ( |
At 31 December | ( |
QBE SYNDICATE 2999
ANNUAL REPORT 50 31 DECEMBER 2025
NOTES TO THE ANNUAL ACCOUNTS (continued)
for the year ended 31 December 2025
13. Discounted claims (continued)
The claims provision before and after discounting is as follows:
Undiscounted claims Effect of discounting After discounting
2025 2024 2025 2024 2025 2024
£’000 £’000 £’000 £’000 £’000 £’000
| Gross claims provisions | ( | ( | ||||
| Reinsurers’ share of total claims | ( | ( | ( | ( | ||
| ( | ||||||
14. Debtors
(i) Debtors arising out of direct insurance operations
2025 2024
£’000 £’000
Due from intermediaries
Due within one year 850,783 597,179
(ii) Debtors arising out of reinsurance operations
2025 2024
£’000 £’000
Due within one year 818,892 703,848
(iii) Other debtors
2025 2024
£’000 £’000
| Other related party balances (non-syndicate) | ||
| Other * | ||
* Other debtors include Taxation and social security of £3,470k (2024: £1,709k), unsettled investment trade debtors of
£16,766k (2024: nil) and other receivables £4,739k (2024: £5,629k).
15. Cash and cash equivalents
2025 2024
£’000 £’000
Cash at bank and in hand 36,736 22,255
Short term debt instruments presented within other financial investments 32,421
Only deposits with credit institutions with maturities of three months or less at inception that are used by the Syndicate
in the management of its short-term commitments are included at bank and in hand.
QBE SYNDICATE 2999
ANNUAL REPORT 51 31 DECEMBER 2025
NOTES TO THE ANNUAL ACCOUNTS (continued)
for the year ended 31 December 2025
16. Other Assets
2025 2024
£’000 £’000
Overseas deposits 293,669 300,321
293,669 300,321
Use of overseas deposit funds is restricted under the terms of the trust agreements where the deposits are lodged.
17. Deferred acquisition costs
2025
Gross Reinsurance Net
£’000 £’000 £’000
| At 1 January | ( | | |
| Incurred deferred acquisition costs | ( | | |
| Amortised deferred acquisition costs | ( | | ( |
| Foreign exchange rate movement | ( | | ( |
| At 31 December | ( | |
2024 Restated *
Gross Reinsurance Net
£’000 £’000 £’000
| At 1 January | ( | ||
| Incurred deferred acquisition costs | ( | ||
| Amortised deferred acquisition costs | ( | | ( |
| Foreign exchange rate movement | ( | ( | ( |
| At 31 December | ( |
* The comparative figures have been restated to include reinsurance deferred acquisition costs, which were previously
disclosed as £nil. This has resulted in a £10,445k restatement of the Net deferred acquisition costs. There is no impact to
the Balance sheet or Profit and loss account - Technical account - General business.
QBE SYNDICATE 2999
ANNUAL REPORT 52 31 DECEMBER 2025
NOTES TO THE ANNUAL ACCOUNTS (continued)
for the year ended 31 December 2025
18. Outstanding claims – 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.
The Syndicate has applied a consistent approach to prior years in establishing the technical provisions for claims
outstanding and reinsurers share thereof.
2025
2015 and
p
rior 2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Total
Net basis £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
At end of
y
ear 281,250 317,617 288,651 277,341 309,162 372,391 447,654 457,285 558,606 554,007
One year later 510,312 564,572 505,639 518,479 534,093 728,152 742,293 856,005 1,013,675
Two years later 579,542 662,436 584,408 624,715 672,357 762,767 752,853 899,897
Three years later 557,530 652,737 586,731 651,898 663,957 737,900 787,596
Four years later 550,416 647,646 638,930 675,497 678,447 758,625
Five years later 564,355 690,763 608,541 677,975 686,074
Six years later 594,383 647,511 607,029 694,066
Seven years later 566,319 653,553 598,800
Eight years later 571,644 658,003
Nine years later 571,183
Current estimate of
net cumulative
claims cost
Cumulative net
claims payments to
date
(535,976 ) (618,554 ) (537,913 ) (585,094 ) (522,553 ) (514,959 ) (485,144 ) (339,635 ) (193,739 ) (35,143 ) (4,368,710 )
Net outstanding
claims
170,829 35,207 39,449 60,887 108,972 163,521 243,666 302,452 560,262 819,936 518,864 3,024,045
2025
2015 and
p
rior 2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Total
Gross basis £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
At end of
y
ear 352,662 619,730 403,070 320,096 378,846 501,226 585,277 516,907 696,870 692,697
One
y
ear later
Two
y
ears later
Three
y
ears later
Four
y
ears later
Five
y
ears later
Six
y
ears later
Seven
y
ears later
Ei
g
ht
y
ears later
Nine
y
ears later
Current estimate of
gross cumulative
claims cost
Cumulative gross
claims payments to
date
(754,343 ) (1,147,459 ) (745,193 ) (772,966 ) (644,043 ) (685,304 ) (549,063 ) (378,590 ) (215,380 ) (54,781 ) (5,947,122 )
Gross outstanding
claims
325,512 84,014 78,687 157,462 157,318 233,277 344,552 389,661 651,416 1,019,634 637,916 4,079,449
QBE SYNDICATE 2999
ANNUAL REPORT 53 31 DECEMBER 2025
NOTES TO THE ANNUAL ACCOUNTS (continued)
for the year ended 31 December 2025
18. Outstanding claims – claims development (continued)
The claims development tables express the development on an underwriting year basis. At the end of the opening year,
the underwriting year has not yet fully earned. One year after the opening year, the underwriting year has substantially
earned, and the development of that underwriting year becomes evident. The table demonstrates developments in actuarial
assumptions.
The Syndicate writes business in currencies other than GBP. The translation of outstanding claims denominated in foreign
currencies gives rise to foreign exchange movements which have no direct bearing on the development of the underlying
claims. To eliminate this distortion, claims liabilities have been retranslated to the GBP at constant rate of exchange.
All estimates of cumulative claims cost and cumulative claims payments for the nine most recent reporting years reported
in functional currencies other than GBP have been retranslated to GBP using the exchange rate at the end of the reporting
year.
19. Concentration of insurance risk
The Syndicate’s exposure to concentrations of insurance risk is mitigated by a portfolio diversified across countries and
classes of business. Product diversification is achieved through a strategy of developing strong underwriting skills in a
wide variety of classes of business. A combination of core and speciality products under the control of employees skilled
in underwriting such products allows the Syndicate to lead underwriter in many of the markets in which they operate.
The segmental and geographical analysis at note 3 demonstrates the diversity of the Syndicate’s operations.
The Syndicate has potential exposure to catastrophe losses. Each year, the Syndicate sets its tolerance to concentration
risk. Realistic Disaster Scenarios (‘RDSs’), using industry standard and the Syndicate determined probable maximum
losses and various catastrophe models, are calculated for each portfolio as part of the business planning process. These
RDSs are aggregated across all portfolios to determine the Syndicate’s maximum event retention (‘MER’) which is the
estimated maximum net claim from a one in 250-year natural catastrophe event. The MER must be less than the
Syndicate’s concentration risk tolerance, otherwise steps such as the purchase of additional reinsurance are taken to limit
the exposure.
20. Impact of changes of key variables on the outstanding claims provision
Net claims outstanding could be lower or higher than the ultimate cost of settling the claims arising. This level of
uncertainty would vary between the classes of business and the underlying nature of the risk being underwritten and can
arise from developments in reserving for large losses catastrophes or from changes in the level of attritional losses. A five
percent increase or decrease in the ultimate cost of settling gross claims arising is considered to be reasonable possible at
the reporting date. Net outstanding claims in respect of liabilities relating to long term personal injury lines of business
could be lower or higher as a result of movements in the Ogden rate, a half a percent increase or decrease in the Ogden
rate movement is considered to be reasonably possible. Net outstanding claims could be lower or high as a result of
movements in exchange rates. A ten percent increase or decrease in the exchange rate movement of currency reserves is
considered to be reasonably possible.
The approximate impact on the result of the Syndicate of changes in these variables used in the calculation of the
outstanding claims provision is summarised in the table below. Each change has been calculated in isolation from the
other changes, and each change shows the impact on profit assuming that there is no change to any of the other variables.
QBE SYNDICATE 2999
ANNUAL REPORT 54 31 DECEMBER 2025
NOTES TO THE ANNUAL ACCOUNTS (continued)
for the year ended 31 December 2025
20. Impact of changes of key variables on the outstanding claims provision (continued)
2025 2024
Profit / (loss) and
members’ balance
Profit / (loss) and
members’ balance
Sensitivity Gross Net Gross Net
% £’000 £’000 £’000 £’000
Claims outstanding +5% 203,972 151,202 182,583 132,327
-5% (203,972 ) (151,202 ) (182,583 ) (132,327 )
Change in Ogden rate on certain long term
personal injury claims
+0.5% (7,545) (7,102) (6,277) (6,277)
-0.5% 7,545 7,102 7,348 7,348
Sterling to US Dollar exchange rate
+10% 233,557 172,241 205,146 146,330
-10% (233,557) (172,241) (205,146) (146,330)
Sterling to Australian Dollar exchange rate +10%
25,182 22,688 24,488 22,231
-10% (25,182) (22,688) (24,488) (22,231)
Sterling to Euro exchange rate
+10% 19,169 15,777 17,160 14,874
-10%
(19,169) (15,777) (17,160) (14,874)
Sterling to Canadian Dollar exchange rate
+10% 38,648 33,204 36,610 31,275
-10% (38,648) (33,204) (36,610) (31,275)
The syndicate’s current year exposure to the sensitivity on foreign exchange movements compared to the prior year has
increased as a result of increases in business written in foreign currencies.
21. Expected maturity profile of net outstanding claims
1 year or
less
1 to 2
years
2 to 3
years
3 to 4
years
4 to 5
years
Over 5
years Total
£’000 £’000 £’000 £’000 £’000 £’000 £’000
2025 721,383 501,313 386,753 312,041 247,701 854,854 3,024,045
2024 613,929 464,781 336,164 273,267 218,477 739,921 2,646,539
22. Creditors
(i) Creditors arising out of direct insurance operations
2025 2024
£’000 £’000
| Due to intermediaries | ||
| Due within one year |
(ii) Creditors arising out of reinsurance operations
2025 2024
| £’000 £’000 | ||
| Due within one year | ||
QBE SYNDICATE 2999
ANNUAL REPORT 55 31 DECEMBER 2025
NOTES TO THE ANNUAL ACCOUNTS (continued)
for the year ended 31 December 2025
23. Other creditors including taxation and social security
2025 2024
£’000 £’000
| Due within one year | ||
| Other related party balances (non-syndicate) | | |
| Derivative liabilities | | |
| Other liabilities * | | |
* Other liabilities include Unsettled investment trade creditors of £16,800k (2024: £2,204k) and other payables of £828k
(2024: £974k).
24. Financial assets and liabilities
The assets and liabilities of the Syndicate, excluding deferred acquisition costs, unearned premiums, prepayments,
accruals and deferred income, gross and net technical provisions, and members’ balances, are financial assets and
liabilities. The Directors consider the carrying value of the financial assets and liabilities to be equal to their fair value.
25. Related parties
The Managing Agent, QUL, and the corporate member QBE Corporate Limited (‘QCORP’), are wholly owned
subsidiaries of the ultimate parent company QBE Insurance Group Limited.
The Syndicate is managed at the QBE EO level, which is headed by QBE European Operations plc. The immediate parent
company of QUL and QCORP is QBE Holdings (‘EO’) Limited (‘QHEO’). QHEO is a wholly owned subsidiary of QBE
European Operations plc. QBE European Operations plc, QUL, QCORP and QHEO are incorporated in the United
Kingdom.
The consolidated annual report for QBE Insurance Group Limited is available from QUL’s registered office at 388 George
Street, Sydney, NSW 2000, Australia.
Directors’ interests
All of the executive Directors listed on page 2 hold, or held in the year, executive directorships of companies within the
QBE EO division. In addition, C A Brown, S Maddock, Sir N K Skeoch and T C Wade, are, or were in the year, Non-
Executive Directors of related companies within QBE EO.
Inter-syndicate transactions
In certain instances, the Syndicate has underwritten reinsurances of QBE’s other managed syndicate. During the current
and prior financial year, there were no instances of reinsurances underwritten between QBE’s syndicates.
Inwards reinsurance contracts with related QBE companies
In certain instances, the Syndicate has underwritten inwards reinsurance business from companies within the QBE Group.
During the year, inwards premiums totalling £48,949k (2024: £43,670k) were written in the year with related QBE
companies. At the year end, balances due from related QBE companies in respect of inwards reinsurance premium were
£19,466k (2024: £9,541k). At the year end, there was a £46,336k (2024: £39,129k) share of technical provisions.
QBE SYNDICATE 2999
ANNUAL REPORT 56 31 DECEMBER 2025
NOTES TO THE ANNUAL ACCOUNTS (continued)
for the year ended 31 December 2025
25. Related parties (continued)
Inwards reinsurance contracts with related QBE companies (continued)
Inwards Premium Balance outstanding
Share of
technical
provisions
2025 2024 2025 2024 2025 2024
£’000 £’000 £’000 £’000 £’000 £’000
QBE Insurance Corporation 30,443 21,410 924 1,123 6,629 3,777
Stonington Insurance Company 308 953 (13) - 2,038 3,178
QBE Capital (Global) Ltd (formerly Equator
Reinsurances Limited) 3,306 3,641 14,054 3,758 13,660 13,835
QBE Insurance (Singapore) Pte Ltd 11,763 14,922 1,657 1,426 17,747 12,970
QBE Insurance (Malaysia) Berhad - - 30 408 1,056 138
QBE Capital Ltd (formerly QBE Blue Ocean
Re Limited) 3,129
2,744 2,806
2,826 5,206
5,231
48,949 43,670 19,458 9,541 46,336 39,129
Outwards reinsurance contracts with related QBE companies
The Syndicate has purchased reinsurance from companies within the QBE Group during the year. Outward premiums
totalling £168,785k (2024: £249,287k) were booked with QBE Capital (Global) Ltd (‘QCAP Global’). At the year end,
balances due from QCAP Global in respect of reinsurers’ share of technical provisions were £427,740k (2024:
£380,407k).
Administrative expenses
Total expenses recharged from MSUK in respect of services provided to the Syndicate amounted to £213,150k (2024:
£190,463k). The balance outstanding at year end from MSUK is £5,307k (2024: £7,425k) and will be settled throughout
2026 as part of the usual expense recharges. There are no other transactions or arrangements to be disclosed.
Service companies
Certain QBE EO service companies provided administrative services to the Syndicate and charged fees equal to the costs
they incurred in placing the business with the Syndicate. These charges are centrally administered within QBE EO and
are included within recharges made to the Syndicate by MSUK.
26. Foreign exchange rates
The following currency exchange rates have been used for principal foreign currency transactions against the Syndicate’s
functional currency:
2025
2024
Start of year
rate
Year-end
rate
Average rate Start of year
rate
Year-end
rate
Average rate
Sterling 1.00
Euro 1.21 1.15 1.17 1.15 1.21 1.18
US dollar 1.25 1.35 1.32 1.27 1.25 1.28
Canadian dollar 1.80 1.84 1.84 1.68 1.80 1.75
Australian dollar 2.02 2.02 2.04 1.87 2.02 1.94
Japanese Yen 196.83 210.83 197.17 179.72 196.83 193.53
