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Dale
Underwriting
Partners
Special Purpose
Arrangement 6131
Annual Report and Accounts
Dale Underwriting Partners | Syndicate 6131
Contents
Directors and Administration ......................................................................................................................................... 1
Managing Agent's Report ............................................................................................................................................. 3
Statement of Managing Agent's responsibilities ........................................................................................................... 7
Independent auditor’s report ......................................................................................................................................... 8
Statement of profit or loss and other comprehensive income .................................................................................... 12
Statement of profit or loss and other comprehensive income continued.................................................................... 13
Statement of changes in Members' balances ............................................................................................................. 13
Balance sheet – Assets .............................................................................................................................................. 14
Balance sheet continued – Liabilities ......................................................................................................................... 15
Statement of cash flows .............................................................................................................................................. 16
Notes to the financial statements – (forming part of the financial statements) ........................................................... 17
1. Basis of preparation ................................................................................................................................................ 17
2. Use of judgement and estimates ............................................................................................................................ 17
3. Significant accounting policies ................................................................................................................................ 17
4. Risk and capital management ................................................................................................................................ 22
5. Analysis of underwriting result ................................................................................................................................ 28
6. Net operating expenses .......................................................................................................................................... 28
Administrative expenses include: ............................................................................................................................... 29
7. Key management personnel compensation ........................................................................................................... 29
8. Staff numbers and costs ......................................................................................................................................... 29
9. Distribution and open years of account .................................................................................................................. 29
11. Claims development ............................................................................................................................................. 30
12. Technical provisions ............................................................................................................................................. 31
13. Creditors arising out of reinsurance operations .................................................................................................... 31
14. Related parties ...................................................................................................................................................... 32
15. Funds at Lloyd’s .................................................................................................................................................... 32
16. Post balance sheet events………………………………………………………………………………………………..32
17. Contingencies and commitments………………………………………………………………………………………...32
18. Foreign exchange rates………………………………………………………………………………………………….. 32
19. Fund at Lloyds’………………………….…..…………………………………………………………………………….. 32
Dale Underwriting Partners | Syndicate 6131
1
Directors and Administration
Managing Agent
Directors
J P Hastings-Bass (Chairman)* I J Bridge D H Dale
A Grant* C N Griffiths J W Hume*
C A McCarthy H R McKinlay*
Non-Executive Directors*
Managing Agent's Registered Office Managing Agent's Registered Number
70 St. Mary Axe 13526063
London
EC3A 8BE
Active Underwriter Registered Auditors
I J Bridge Ernst & Young LLP
Signing Actuary
Ernst & Young LLP
Dale Underwriting Partners | Syndicate 1729
2
Dale Underwriting Partners | Syndicate 6131
3
Managing Agent's Report
The Special Purpose Arrangement (SPA) has been managed by Dale Managing Agency Limited (DMAL), a company
registered in England and Wales, since 1
st
October 2022. Prior to that date, the SPA was managed by Asta Managing
Agency Limited.
The Directors of the Managing Agent present their report for the year ended 31 December 2025.
This annual report is prepared using the annual basis of accounting as required by Statutory Instrument No 1950 of
2008, The Insurance Accounts Directive (Lloyd's Syndicate and Aggregate Accounts) Regulations 2008 ("Lloyd's
Regulations 2008") as well as in compliance with applicable Accounting Standards in the United Kingdom and the
Republic of Ireland, including Financial Reporting Standard 102 ("FRS 102"), Financial Reporting Standard 103
("FRS 103") in relation to insurance contracts, and the Lloyd's Syndicate Accounts Instructions V3.1 as modified by
the Frequently Asked Questions V1.1 issued by Lloyd's.
Results
The result for calendar year 2025 is a loss of £4,248,498 (2024: loss £10,102,477) on a gross written premium of
(£130,700) (2024: £296,274).
The SPA has not written any business since 2021 year of account, therefore the movement during the calendar year
is movement arising from that year of account.
Principal activity and review of the business
The SPA’s principal activity was a whole account quota share of the Specialty class of business written by the host,
Dale Underwriting Partners Syndicate 1729. This quota share arrangement ceased for the 2022 year of account, and
all Specialty business is now retained within Syndicate 1729. Under the Lloyd’s 3-year accounting the 2021 year of
account would have normally closed at the end of 2023. However, we have made the decision to keep the year open
at this stage. In order to assess appropriate level of technical provisions for future claims, the Syndicate has engaged
its internal actuarial expert to estimate the future Incurred but Not Reported (IBNR) claims. The Directors of the
Managing Agent consider that the provisions for gross claims and related reinsurance recoveries are fairly stated on
the basis of the information currently available to them. However, there are specific areas of concern related to the
business impacted by the Ukraine invasion, which have arisen on the 2021 year of account, but which impacted the
calendar year result, and which carry a high degree of uncertainty. The primary areas of uncertainty involve the
specialty books, where claims can take many years to resolve and may be affected by changes in legislation
and legal precedents. As the business has been in run off for some time, the number of open claims and the
reserve amounts are generally declining, movements on individual large losses can have a materially more
significant impact on the level of reserves reported, and related reinsurance recoveries. The ultimate estimate of
the gross claims outstanding liabilities, and related reinsurance recoveries, are subject to significant
uncertainty and may differ materially from the estimate that is currently provided in the Annual Accounts. The
Directors are comfortable with the level of IBNR held for this event but, due to the lack of claim notifications, the
development of the losses is uncertain and as such it is in the best interests of the names to keep the SPA open at
this stage.
Gross written premium income by class of business for the calendar year was as follows:
2025
2024
£’000
£’000
Specialty Insurance
(131)
296
Total
(131)
296
The SPA's key financial performance indicators during the year were as follows:
2025
2024
Change
£’000
£’000
%
Gross written premiums
(131)
296
(144.1%)
Loss for the financial year
(5,301)
(10,058)
(47.3%)
Total comprehensive loss
(4,248)
(10,102)
(57.9%)
Combined ratio
15,548.9%
4,536.4%
11,012.5%
The combined ratio is the ratio of net claims incurred and net operating expenses to net premiums earned. Lower
ratios represent better performance.
Dale Underwriting Partners | Syndicate 6131
4
The return on capacity as at 31 December 2025 is shown below:
2021
YOA Open
Capacity (£’000)
20,000
Forecast*/Result (£’000)
(17,367)
Return on capacity (%)
(86.8%)
* 2021 YOA forecasts are unaudited
Principal risks and uncertainties
The SPA sets risk appetite annually, which is approved by the Managing Agency as part of the SPA’s Solvency
Capital Requirement (‘SCR’) process. The Managing Agency Risk and Compliance Committee (RCC) meets at least
4 times a year to oversee the risk management framework. The RCC, a sub-committee of the Managing Agency
Board, reviews the risk profile as reflected in the risk register, and monitors performance against risk appetites and
key risk indicators. The principal risk and uncertainties facing the Syndicate are as follows:
Insurance risk
Insurance risk includes the risks that a policy will be written for too low a premium (pricing risk) or provide
inappropriate cover (underwriting risk), that the frequency or severity of insured events will be higher than expected
(claims risk), or that estimates of claims subsequently prove to be insufficient (reserving risk). The Managing Agency
Board manages insurance risk through the approved business plan, which sets out targets for volumes, pricing, line
sizes and retention by class of business. The Managing Agency Board then monitors performance against the
business plan through the year. Reserve adequacy, including adequate provision for inflation, is monitored through
quarterly review by the Reserving Committee and Dale Actuarial team.
Credit risk
The main credit risk for the SPA is non-settlement of the account by the host at closure. The host Syndicate’s primary
credit risk is reinsurance counterparty risk which is the risk of default by one or more of its reinsurers and Syndicate
intermediaries. The Managing Agency Board’s policy is that they will only reinsure with approved reinsurers,
supported by collateralisation, where required. The Credit Committee sets approval and usage criteria, monitors
reinsurer ratings and is required to approve and oversee the application of the reinsurer approval policy.
Market risk
Interest Rate Risk – The SPA has no investments, and therefore has no exposure to interest rate risk.
Currency Risk – The SPA writes the majority of its business in U.S. Dollars, which is its functional currency. The SPA
incurs the majority of its expenses in GBP; these expenses, however, do not create material currency risk for the
SPA.
Investment Price Risk – The SPA has no investments, and therefore has no exposure to investment price risk.
Liquidity risk
The host Syndicate pays insurance claims and other liabilities (including expenses) on the SPA’s behalf in
accordance with the funds withheld arrangement. To mitigate this risk the Managing Agency Board and Investment
Committee reviews cash flow projections and associated testing regularly and ensures that, where needed, the host
Syndicate has liquidity facilities in place or has utilised the option of a cash call from Capital providers.
Operational risk
This is the risk that errors caused by people, processes, systems and external events lead to losses to the SPA. The
Agency seeks to manage this risk through the use of an operational risk and control framework, detailed procedures
manual, thorough training programmes and a structured programme of testing of processes and systems by Internal
Audit. Business continuity and disaster recovery plans are in place and are regularly updated and tested.
Regulatory risk
Regulatory risk is the risk of loss owing to a breach of regulatory requirements or failure to respond to regulatory
change. The Managing Agency is required to comply with the requirements of the Financial Conduct Authority (FCA),
Prudential Regulatory Authority (PRA) and Lloyd’s. Lloyd’s requirements include those imposed on the Lloyd’s market
by overseas regulators, particularly in respect of US situs business. The Managing Agency has a Compliance Officer
who manages a function that monitors business activity and regulatory developments to assess any effects on the
Managing Agency.
Dale Underwriting Partners | Syndicate 6131
5
The SPA has no appetite for failing to treat customers fairly. The SPA manages and monitors its customer risk
through a suite of risk indicators and reporting metrics as part of its documented customer risk framework. The
Managing Agency is committed to protecting the best interests of customers at all times. Conduct management
measures are employed to provide assurance that products and services provide good customer outcomes. The
Board oversee a suite of risk indicators and reporting metrics while an Underwriting Management Board provides
customer challenge. A non-executive Director fulfils the role of Consumer Duty Champion.
Group / strategic risk
This is the risk of contagion that arises from being associated with key stakeholders and the impact that activities
and events that occur within other connected or third parties has on the business.
Strategic risk covers the risks faced by the SPA due to changes in underlying strategy of the business or that of its
key stakeholders (including strategic conflicts of interest).
Group and Strategic Risk are monitored by the Managing Agency Board and the Board of Dale Partners Group
Limited.
Future developments
The decision has been made to discontinue the SPA for the 2022 year of account onwards. The Specialty line of
business will continue to be written in the host Syndicate and will be fully retained within that syndicate.
The Directors of the Managing Agent have made the decision after speaking to members, that the 2021 year of
account will remain open for at least a further 12 months due to the uncertainty of the reserves being held. The
Directors have concluded that the SPA is a going concern due to the following:
• When it does close it will RITC into the host Syndicate 1729
• DMAL will continue to be the managing agent for the SPA and therefore it will remain operationally viable
• The third party SAO report shows that the best estimate reserves are adequate.
As such, the annual accounts for the SPA have been prepared under the going concern basis.
Sustainability
The Managing Agency has had a Sustainability Forum in place since 2021. The Forum includes representation from
all functions and works to identify Sustainability priorities and connect Sustainability considerations across the
business.
Climate change
The Managing Agency has built a climate change framework, covering the physical, transition and liability climate
change risks, based on the underlying business written by the syndicate. We accept climate change risk where it is
an inherent part of an insurance business model, providing it is understood, managed and controlled and/or
compensated. There is no appetite for uncontrolled, unmanaged exposure to the financial risks of Climate Risks.
A measure for climate change exposure within insurance risk appetites has been implemented to highlight where
time and resource is most required in order to manage the potential exposure and successfully steer portfolios
through global changes. The Syndicate has identified the level of climate change exposure in its business plans and
will manage this accordingly, with the ability to change the level of risk being taken in future and thereby amend the
oversight and monitoring framework.
The framework ensures Board-level engagement and accountability with the PRA’s requirements, assigning clear
responsibilities for managing the agency’s financial risks associated with climate change.
Directors
Details of the Directors of the Managing Agent that were serving at the year end and up to the date of signing of the
financial statements are provided on page 1. There were no changes to Directors since the last report.
Disclosure of information to the auditors
So far as each person who was a Director of the Managing Agent at the date of approving the report is aware, there
is no relevant audit information, being information needed by the SPA auditor in connection with the auditor's report,
of which the auditor is unaware. Having made enquiries of fellow Directors of the Agency and the SPA's Auditors,
each Director has taken all the steps that he or she ought to have taken as a director to become aware of any relevant
audit information and to establish that the Syndicate's auditor is aware of that information.
Dale Underwriting Partners | Syndicate 6131
6
Auditors
The Managing Agent intends to reappoint Ernst & Young LLP as the SPA’s auditors.
SPA Annual General Meeting
In accordance with the Syndicate Meetings (Amendment No 1) Byelaw (No 18 of 2000) the Managing Agent does
not propose holding an annual meeting this year; objections to this proposal or the intention to reappoint the auditors
for a further 12 months can be made by SPA members before 20 March 2026.
On behalf of the Board
D H Dale
Director
20 February 2026
Dale Underwriting Partners | Syndicate 6131
7
Statement of Managing Agent's responsibilities
The Directors of the Managing agent are responsible for preparing the SPA annual accounts in accordance with
applicable law and regulations.
The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 require the
managing agent to prepare SPA annual accounts at 31 December each year in accordance with United Kingdom
Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The SPA
annual accounts are required by law to give a true and fair view of the state of affairs of the SPA as at that date and
of its profit or loss for that year.
In preparing the SPA annual accounts, the Directors of the Managing Agent are required to:
• select suitable accounting policies and then apply them consistently subject to changes arising on the adoption
of new accounting standards in the year.
• make judgements and estimates that are reasonable and prudent;
• state whether applicable Accounting Standards have been followed, subject to any material departures disclosed
and explained in the notes to the SPA accounts; and
• prepare the SPA accounts on the basis that the SPA will continue to write future business unless it is inappropriate
to presume that the SPA will do so.
• prepare and review of the iXBRL tagging that has been applied to the SPA Accounts in accordance with the
instructions issued by Lloyd’s, including designing, implementing and maintaining systems, processes and internal
controls to result in tagging that is free from material non-compliance with the instructions issued by Lloyd’s,
whether due to fraud or error.
The Directors of the Managing agent are responsible for keeping adequate accounting records which disclose with
reasonable accuracy at any time the financial position of the SPA and enable it to comply with the Insurance Accounts
Directive (Lloyd's Syndicate and Aggregate Accounts) Regulations 2008. It is also responsible for safeguarding the
assets of the SPA 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 corporate and financial
information included on the business' website. Legislation in the United Kingdom governing the preparation and
dissemination of annual accounts may differ from legislation in other jurisdictions. The Directors confirm that they
have complied with the above requirements in preparing the financial statements.
We confirm that to the best of our knowledge the SPA annual accounts, including the iXBRL tagging applied to these
accounts, comply with the requirements of the Lloyd’s Syndicate Accounts Instructions version 3.1 as modified by
the Frequently Asked Questions version 1.1 issued by Lloyd’s
C A McCarthy
Finance Director
20 February 2026
Dale Underwriting Partners | Syndicate 6131
8
Independent auditor’s report
Independent auditor's report to the members of Dale Underwriting Partners Syndicate
6131
Opinion
We have audited the syndicate annual accounts of syndicate 6131 (‘the syndicate’) for the year ended 31 December
2025 which comprise the Statement of Profit or Loss and Other Comprehensive Income, the Statement of Changes
in Members’ Balances, the Balance Sheet, the Statement of Cash Flows and the related notes 1 to 19, including a
summary of significant accounting policies. The financial reporting framework that has been applied in their
preparation is applicable law including The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts)
Regulations 2008, United Kingdom Accounting Standards including FRS 102 ‘The Financial Reporting Standard
applicable in the UK and Republic of Ireland’ and FRS 103 ‘Insurance Contracts’ (‘United Kingdom Generally
Accepted Accounting Practice’), and Section 1 of the Lloyd’s Syndicate Accounts Instructions V3.1 as modified by
the Frequently Asked Questions Version 1.1 issued by Lloyd’s (‘the Syndicate Accounts Instructions’).
In our opinion, the syndicate annual accounts:
ï‚„ give a true and fair view of the syndicate’s affairs as at 31 December 2025 and of its loss for the year then
ended;
ï‚„ have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
and
ï‚„ have been prepared in accordance with the requirements of The Insurance Accounts Directive (Lloyd’s
Syndicate and Aggregate Accounts) Regulations 2008 and the Syndicate Accounts Instructions.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)), The Insurance
Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008, the Syndicate Accounts
Instructions, and other applicable law. Our responsibilities under those standards are further described in the
Auditor’s responsibilities for the audit of the syndicate annual accounts section of our report. We are independent of
the syndicate in accordance with the ethical requirements that are relevant to our audit of the syndicate annual
accounts in the UK, including the FRC’s Ethical Standard as applied to other entities of public interest, and we have
fulfilled our other ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Emphasis of Matter Paragraph of the Opinion – Uncertainty of claims outstanding and
related reinsurance recoveries
We have considered the adequacy of disclosures made in note 12 to the Annual Accounts concerning the uncertainty
of claims outstanding and related reinsurance recoveries values. The ultimate claims outstanding and related
reinsurance recoveries is subject to significant uncertainty and may differ materially from the estimate that is currently
provided in the Annual Accounts.
Our opinion is not modified in respect of this matter.
Conclusions relating to going concern
In auditing the syndicate annual accounts, we have concluded that the managing agent’s use of the going concern
basis of accounting in the preparation of the syndicate annual accounts is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or
conditions that, individually or collectively, may cast significant doubt on the syndicate’s ability to continue as a going
concern for a period of 12 months from when the syndicate annual accounts are authorised for issue.
Our responsibilities and the responsibilities of the directors of the managing agent with respect to going concern are
described in the relevant sections of this report. However, because not all future events or conditions can be
predicted, this statement is not a guarantee as to the syndicate’s ability to continue as a going concern.
Dale Underwriting Partners | Syndicate 6131
9
Other information
The other information comprises the information included in the Annual Report and Accounts, other than the
syndicate annual accounts and our auditor’s report thereon. The directors of the managing agent are responsible for
the other information contained within the Annual Report and Accounts.
Our opinion on the syndicate annual accounts does not cover the other information and, except to the extent
otherwise explicitly stated in this report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially
inconsistent with the syndicate annual accounts or our knowledge obtained in the course of the audit or otherwise
appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements,
we are required to determine whether this gives rise to a material misstatement in the syndicate annual accounts
themselves. If, based on the work we have performed, we conclude that there is a material misstatement of the other
information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by The Insurance Accounts Directive (Lloyd’s
Syndicate and Aggregate Accounts) Regulations 2008
In our opinion, based on the work undertaken in the course of the audit:
ï‚„ the information given in the managing agent’s report for the financial year in which the syndicate annual accounts
are prepared is consistent with the syndicate annual accounts; and
ï‚„ the managing agent’s report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the syndicate and its environment obtained in the course of the
audit, we have not identified material misstatements in the managing agent’s report.
We have nothing to report in respect of the following matters where The Insurance Accounts Directive (Lloyd’s
Syndicate and Aggregate Accounts) Regulations 2008 requires us to report to you, if in our opinion:
Responsibilities of the managing agent
As explained more fully in the Statement of Managing Agent’s Responsibilities on page 7, the directors of the
managing agent are responsible for the preparation of the syndicate annual accounts and for being satisfied that they
give a true and fair view, and for such internal control as they determine is necessary to enable the preparation of
the syndicate annual accounts that are free from material misstatement, whether due to fraud or error.
In preparing the syndicate annual accounts, the directors of the managing agent are responsible for assessing the
syndicate’s ability to continue in operation, disclosing, as applicable, matters related to its ability to continue in
operation and using the going concern basis of accounting unless the directors of the managing agent either intends
to cease to operate the syndicate, or has no realistic alternative but to do so.
• the managing agent in respect of the syndicate has not kept adequate accounting records; or
• the syndicate annual accounts are not in agreement with the accounting records; or
• certain disclosures of the managing agent’s emoluments specified by law are not made; or
• we have not received all the information and explanations we require for our audit.
Dale Underwriting Partners | Syndicate 6131
10
Auditor’s responsibilities for the audit of the syndicate annual accounts
Our objectives are to obtain reasonable assurance about whether the syndicate annual accounts as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error
and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these syndicate annual accounts.
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in
line with our responsibilities, outlined above, to detect irregularities, including fraud. The risk of not detecting a
material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may
involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
However, the primary responsibility for the prevention and detection of fraud rests with both those charged with
governance of the managing agent and management.
Our approach was as follows:
• We obtained a general understanding of the legal and regulatory frameworks that are applicable to the syndicate
and determined that the most significant are direct laws and regulations related to elements of Lloyd’s Byelaws
and Regulations, and the financial reporting framework (UK United Kingdom Generally Accepted Accounting
Practice), and requirements referred to by Lloyd’s in the Syndicate Accounts instructions. Our considerations of
other laws and regulations that may have a material effect on the syndicate annual accounts included
permissions and supervisory requirements of Lloyd’s of London, the Prudential Regulation Authority (‘PRA’) and
the Financial Conduct Authority (‘FCA’).
• We obtained a general understanding of how the syndicate is complying with those frameworks by making
enquiries of management, internal audit, and those responsible for legal and compliance matters of the
syndicate. In assessing the effectiveness of the control environment, we also reviewed significant
correspondence between the syndicate, Lloyd’s of London and other UK regulatory bodies; reviewed minutes
of the Board and Risk Committee of the managing agent; and gained an understanding of the managing agent’s
approach to governance.
• For direct laws and regulations, we considered the extent of compliance with those laws and regulations as part
of our procedures on the related syndicate annual accounts’ items.
• For both direct and other laws and regulations, our procedures involved: making enquiries of the directors of the
managing agent and senior management for their awareness of any non-compliance of laws or regulations,
enquiring about the policies that have been established to prevent non-compliance with laws and regulations by
officers and employees, enquiring about the managing agent’s methods of enforcing and monitoring compliance
with such policies, and inspecting significant correspondence with Lloyd’s, the PRA and the FCA.
• The syndicate operates in the insurance industry which is a highly regulated environment. As such the Senior
Statutory Auditor considered the experience and expertise of the engagement team to ensure that the team had
the appropriate competence and capabilities, which included the use of specialists where appropriate.
• We assessed the susceptibility of the syndicate’s annual accounts to material misstatement, including how fraud
might occur by considering the controls that the directors of the managing agent have established to address
risks identified by them, or that otherwise seek to prevent, deter or detect fraud. We also considered areas of
significant judgement, complex transactions, performance targets, economic or external pressures and the
impact these have on the control environment. Where this risk was considered to be higher, we performed audit
procedures to address each identified fraud risk. These procedures included testing manual journals and were
designed to provide reasonable assurance that the syndicate annual accounts were free from material
misstatement whether due to fraud or error.
A further description of our responsibilities for the audit of the annual accounts is located on the Financial Reporting
Council’s website at https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Other matter
Our opinion on the syndicate annual accounts does not cover the iXBRL tagging included within these syndicate
annual accounts, and we do not express any form of assurance conclusion thereon.
Dale Underwriting Partners | Syndicate 6131
11
Use of our report
This report is made solely to the syndicate’s members, as a body, in accordance with The Insurance Accounts
Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008. Our audit work has been undertaken so
that we might state to the syndicate’s members those matters we are required to state to them in an auditor’s report
and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone
other than the syndicate and the syndicate’s members as a body, for our audit work, for this report, or for the opinions
we have formed.
Robert Bruce (Senior statutory auditor)
for and on behalf of Ernst & Young LLP, Statutory Auditor
London
20 February 2026
Dale Underwriting Partners | Syndicate 6131
12
Statement of profit or loss and other comprehensive
income
Technical account - general business
For the year ended 31 December 2025
| 2025 | 2024 | ||
Note | £’000 | £’000 | |
Gross premiums written | 5 | ( | |
Outward reinsurance premiums | ( | ||
Premiums written, net of reinsurance | ( | ||
Changes in unearned premium | |||
Change in the gross provision for unearned premiums | |||
| Change in the provision for unearned premiums reinsurers’ share | |||
Net change in provisions for unearned Premiums | |||
Earned premiums, net of reinsurance | ( | ||
| Claims paid | |||
| Gross amount | ( | ( | |
| Reinsurers’ share | |||
| Net claims paid | ( | ( | |
| Change in the provision for claims | |||
| Gross amount | ( | ||
| Reinsurers’ share | ( | ( | |
Net change in provision for claims | ( | ||
Claims incurred, net of reinsurance | ( | ( | |
| Net operating expenses | 6 | ( | ( |
| Balance on the technical account - general business | ( | ( |
Dale Underwriting Partners | Syndicate 6131
13
Statement of profit or loss and other comprehensive
income continued
Non-technical account - general business
For the year ended 31 December 2025
| 2025 | 2024 | ||
Note | £’000 | £’000 | |
Balance on the technical account - general business | ( | ( | |
Investment income | |||
| Realised gains on investments | |||
| Unrealised gains on investments | |||
Investment expenses and charges | |||
Total investment return | |||
| (Loss)/gain on foreign exchange | ( | ||
Loss for the financial year | ( | ( | |
| Other comprehensive income | |||
| Currency translation gains/(losses) | ( | ||
| Total comprehensive loss for the year | ( | ( |
All the amounts above are in respect of continuing operations.
The accompanying notes from page 17 to 32 form an integral part of these financial statements.
Statement of changes in Members' balances
For the year ended 31 December 2025
| 2025 | 2024 | ||
Note | £’000 | £’000 | |
| Members’ balances brought forward at 1 January | ( | ( | |
Total comprehensive income for the financial year | ( | ( | |
| Members’ balances carried forward at 31 December | ( | ( |
Dale Underwriting Partners | Syndicate 6131
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Balance sheet – Assets
As at 31 December 2025
| 2025 | 2024 | ||
Note | £’000 | £’000 | |
| Provision for unearned premiums | |||
| Claims outstanding | 12 | ||
Reinsurers' share of technical provisions | |||
| Debtors arising out of reinsurance operations | 10 | ||
Debtors | |||
| Deferred acquisition costs | |||
| Other prepayments and accrued income | |||
Prepayments and accrued income | |||
Total assets |
The accompanying notes from page 17 to 32 form an integral part of these financial statements.
Dale Underwriting Partners | Syndicate 6131
15
Balance sheet continued – Liabilities
As at 31 December 2025
| 2025 | 2024 | ||
Note | £’000 | £’000 | |
| Members’ balances | ( | ( | |
Total capital and reserves | ( | ( | |
| Provision for unearned premiums | |||
| Claims outstanding | 11,12 | ||
Technical provisions | |||
| Creditors arising out of reinsurance operations | 13 | ||
Creditors | |||
Accruals and deferred income | |||
Total liabilities | |||
Total liabilities, capital and reserves |
The accompanying notes from page 17 to 32 form an integral part of these financial statements.
The financial statements on pages 12 to 15 were approved by board of directors on 20 February 2026 and were
signed on its behalf by:
C A McCarthy
Finance Director
20 February 2026
Dale Underwriting Partners | Syndicate 6131
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Statement of cash flows
For the year ended 31 December 2025
| 2025 | 2024 | ||
Note | £’000 | £’000 | |
| Cash flows from operating activities | |||
| Loss for the financial year | ( | ( | |
| Adjustments: | |||
| (Decrease)/increase in gross technical provisions | ( | ||
Decrease in reinsurers’ share of gross technical provisions | |||
Decrease in debtors | |||
Increase in creditors | |||
Movement in other assets/liabilities | ( | ||
Foreign exchange profit/(loss) | ( | ||
Investment return | |||
| Net cash flows generated from operating activities | |||
| Cash flows from investing activities | |||
Investment income received | |||
| Net cash flows generated /(used in) from investing activities | |||
| Cash flows from financing activities | |||
| Collection from members’ personal reserve funds | |||
| Members’ agents fee advances | |||
| Net cash flows used in from financing activities | |||
Net Increase in cash and cash equivalents | |||
Cash and cash equivalents at the beginning of the year | |||
Foreign exchange on cash and cash equivalents | |||
| Cash and cash equivalents at the end of the year |
Dale Underwriting Partners | Syndicate 6131
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Notes to the financial statements – (forming part of the
financial statements)
For the year ended 31 December 2025
1. Basis of preparation
Statement of compliance
The SPA’s financial statements have been prepared in accordance with, the Insurance Accounts Directive (Lloyd’s
Syndicate and Aggregate Accounts) Regulations 2008 and applicable Accounting Standards in the United Kingdom
and the Republic of Ireland, including Financial Reporting Standard 102 (FRS 102), Financial Reporting Standard
103 (FRS 103) in relation to insurance contracts, and the Lloyd’s Syndicate Accounts Instructions Version 3.1 as
modified by the Frequently Asked Questions Version 1.1 issued by Lloyd’s.
The financial statements are prepared under the historical cost convention except for certain financial instruments
which are measured at fair value. The financial statements are prepared in GBP which is the reporting and
presentational currency of the SPA and rounded to the nearest £'000. The functional currency of the SPA is US
Dollars. The presentational currency is different from the functional currency of the SPA because the SPA has elected
to use a presentational currency aligned with the presentational currency of Lloyd’s reports.
As permitted by FRS 103 the SPA continues to apply the existing accounting policies that were applied prior to this
standard for its insurance contracts.
Going concern
The Directors of the Managing Agent have made the decision after speaking to members, that the 2021 year of
account will remain open for at least a further 12 months due to the uncertainty of the reserves being held. The
Directors have concluded that the SPA is a going concern due to the following:
• When it does close it will RITC into the host Syndicate 1729
• DMAL will continue to be the managing agent for the SPA and therefore it will remain operationally viable
• The third-party SAO report showed that the best estimate reserves are adequate.
As such, the annual accounts for the SPA have been prepared under the going concern basis.
2. Use of judgement and estimates
In preparation of the financial statements, the directors of the Managing Agent have made judgements, estimates
and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and
liabilities at the date of the accounts, and the reported amounts of income and expenses during the reporting period.
These judgements may be made in respect of the hosts recognition of income and outgoings, which are ceded to the
SPA. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimate is revised and in any future period affected. In particular,
information about significant areas of estimation uncertainty and critical judgements in applying accounting policies
that have the significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within
the next financial year are addressed below:
(i) provision for claims outstanding (refer to claims incurred accounting policy).
(ii) estimates of future premium for binder contracts (refer to gross premiums accounting policy).
3. Significant accounting policies
Special Purpose Arrangement
The SPA assumes premium solely through its quota share contract with its host, Syndicate 1729. Premium is ceded
from the host, and assumed by the SPA, gross of the SPA’s share of the host’s acquisition costs.
Funds Withheld
The quota share with the host operates on a funds withheld basis and in the normal course of business the profit and
loss under the contract is settled with the host when the SPA year of account closes after three years. The quota
share does allow for early cash calls by the host under certain circumstances.
Reinsurance protection is purchased “in common” with the host and therefore the host and the SPA show their
respective share. The relevant asset and liabilities are shown within the SPA’s financial statements as due when the
host expects to receive or pay the balances, notwithstanding the fact that any cash settlement of these balances from
the SPA’s perspective may only occur when the quota share contract with the host is settled, on closure of the SPA’s
relevant year of account.
Dale Underwriting Partners | Syndicate 6131
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Significant accounting policies
The following principal accounting policies have been applied consistently in dealing with items which are considered
material in relation to the Syndicate’s annual accounts.
Gross premiums
The host’s gross written premiums written, which are subsequently ceded to, and assumed by, the SPA comprise
the total premiums receivable (by the host) for the whole period of cover provided by the contracts entered into (by
the host) during the reporting period. This is recognised regardless of whether these are wholly due for payment (to
the host) in the reporting period, together with any adjustments arising in the reporting period to such premiums
receivable in respect of business written in prior reporting periods. These premiums are recognised (by the host, and
therefore within the SPA) on the date on which the policy commences.
Gross written premiums are stated gross of brokerage payable in the host but are ceded to, and assumed by, the
SPA gross of the SPA’s share of the hosts acquisition costs, and exclude taxes and duties levied on them.
Other key estimates contained within the syndicate close process are premium estimates and the earning pattern of
recognising premium over the life of the contract. In the syndicate the premium written is initially based on the
estimated premium income (‘EPI’) of each contract. Where premium is sourced through binders, the binder EPI is
pro-rated across the binder period. This is done on a straight-line basis. The underwriters adjust their EPI estimates
as the year of account matures. As the year of account closes premiums are adjusted to match the actual signed
premium. An accrual for estimated future reinstatement premiums is retained. Premiums are earned on a straight-
line basis over the life of each contract. At a portfolio level this is considered to provide a reasonable estimate for the
full year of the pattern of risk over the coverage period.
Reinsurance premiums
Reinsurance written premiums comprise the total premiums payable (for the SPA’s share of reinsurance purchased
“in-common” with the host) provided by contracts entered into the period, including portfolio premiums payable, and
are recognised on the date on which the policy incepts. Premiums include any adjustments arising in the accounting
period in respect of reinsurance contracts incepting in prior accounting periods. These premiums are recognised (by
the host, and therefore within the SPA) on the date on which the policy commences.
Claims incurred
Claims incurred comprise the cession of the hosts claims and settlement expenses (both internal and external) paid
in the year and the movement in provision for outstanding claims and settlement expenses, including an allowance
for the cost of claims incurred by the balance sheet date, but not reported until after the year end.
The provision for claims comprises the cession of the amounts set aside in the host for claims notified and claims
incurred, but not yet reported (IBNR).
The amount included in respect of IBNR is based on statistical techniques of estimation applied by actuaries. These
techniques generally involve projecting from past experience of the development of claims over time to form a view
of the likely ultimate claims to be experienced for more recent underwriting, having regard to variations in the business
accepted and the underlying terms and conditions. The provision for claims also includes amounts in respect of
internal and external claims handling costs. For the most recent years, where a high degree of volatility arises from
projections, estimates may be based in part on output from rating and other models of the business accepted and
assessments of underwriting conditions.
The reinsurers’ share of provisions for claims is based on calculated amounts of outstanding claims and projections
for IBNR, net of estimated irrecoverable amounts, having regard to the reinsurance programme in place for the class
of business and the claims experience for the year. The host, and therefore the SPA, uses a number of statistical
techniques to assist in making these estimates.
Accordingly, the two most critical assumptions as regards claims provisions are that the past is a reasonable predictor
of the likely level of claims development and that the rating and other models used for current business are fair
reflections of the likely level of ultimate claims to be incurred.
The Directors consider that the provisions for gross claims and related reinsurance recoveries within the SPA are
fairly stated on the basis of the information currently available to them. However, ultimate liability will vary as a result
of subsequent information and events and this may result in significant adjustments to the amounts provided.
Dale Underwriting Partners | Syndicate 6131
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Reinsurance to close (RITC)
The underwriting accounts for each year of account are normally kept open for three years before the result on that
year is determined. At the end of the three-year period, outstanding liabilities can normally be determined with
sufficient accuracy to permit the year of account to be closed by payment of a reinsurance to close premium to the
successor year of account.
The reinsurance to close premium is determined on the basis of estimated outstanding liabilities and related claims
settlement costs (including claims incurred but not reported), net of estimated collectible reinsurance recoveries,
relating to the closed year of account and all prior years of account reinsured therein.
Provisions for unearned premiums
Unearned premiums are those proportions of premiums written in a year that relate to periods of risk after the
reporting date. In respect of general insurance business, written premiums are recognised as earned over the period
of the policy on a time apportionment basis having regard where appropriate, to the incidence of risk. The proportion
attributable to subsequent periods is deferred as a provision for unearned premiums.
Unearned reinsurance premiums are those proportions of premiums written in a year that relate to periods of risk
after the reporting date. Unearned reinsurance premiums are deferred over the term of the underlying insurance
policies for risks-attaching contracts and over the term of the reinsurance contract for losses-occurring contracts.
Unexpired risks
A provision for unexpired risks is made where claims and related expenses likely to arise after the end of the financial
period in respect of contracts concluded before that date, are expected to exceed the unearned premiums and
premiums receivable under these contracts, after the deduction of any acquisition costs deferred.
The provision for unexpired risks is calculated separately by reference to classes of business which are managed
together, after taking into account relevant investment return.
At 31 December 2025 the SPA did not have an unexpired risk provision (2024 £nil).
Deferred acquisition costs
Acquisition costs comprise costs arising from the conclusion of insurance contracts. They include both direct costs,
such as intermediary commissions or the cost of drawing up the insurance document or including the insurance
contract in the portfolio, and indirect costs, such as the advertising costs or the administrative expenses connected
with the processing of proposals and the issuing of policies.
Deferred acquisition costs are costs arising from conclusion of insurance contracts that are incurred during the
reporting period but which relate to a subsequent reporting period and which are carried forward to subsequent
reporting periods. Deferred acquisition costs are amortised over the period in which the related premiums are earned.
Deferred acquisition costs are amortised over the period in which the related premiums are earned.
Reinsurance assets
The SPA share of reinsurance premium is 60% of the total reinsurance protection bought “in-common” with the host
in respect of the specialty insurance class written through the host. Amounts recoverable from reinsurers are
estimated in a manner consistent with the outstanding claims provision or settled claims associated with the
reinsurers policies and are in accordance with the related reinsurance contract. All reinsurance premium and paid
recoveries are managed on the funds withheld basis.
Reinsurance assets are reviewed for impairment at each reporting date, or more frequently, when an indication of
impairment arises during the reporting year. Impairment occurs when there is objective evidence as a result of an
event that occurred after initial recognition of the reinsurance asset that the SPA may not receive all outstanding
amounts due under the terms of the contract and the event has a reliably measurable impact on the amounts that
the SPA will receive from the reinsurer. The impairment loss is recorded in the income statement.
Gains or losses on buying reinsurance are recognised in the income statement immediately at the date of purchase
and are not amortised. There were no such gains or losses recognised in 2025.
Ceded reinsurance arrangements do not relieve the SPA from its obligations to the host or the hosts obligations to
the policyholders.
Dale Underwriting Partners | Syndicate 6131
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Insurance receivables
All insurance receivables are due from the host Syndicate 1729 at the closure of the SPA due to it trading on a funds
withheld basis.
Insurance receivables are recognised when due and measured on initial recognition at the fair value of the
consideration received or receivable. Subsequent to initial recognition, insurance receivables are measured at
amortised cost, using the effective interest rate method. The carrying value of insurance receivables is reviewed for
impairment whenever events or circumstances indicate that the carrying amount may not be recoverable, with the
impairment loss recorded in the income statement.
Insurance receivables are not recognised when the derecognition criteria for financial assets have been met.
Insurance receivables from the host are disclosed gross of Claims outstanding.
Insurance payables
All insurance payables are due for settlement with the host Syndicate 1729 at the closure of the SPA due to it trading
on a funds withheld basis.
Insurance payables are recognised when due and measured on initial recognition at the fair value of the consideration
received less directly attributable transaction costs. Subsequent to initial recognition, they are measured at amortised
cost using the effective interest rate method. Insurance payables are derecognised when the obligation under the
liability is settled, cancelled or expired.
Bad Debt
Bad debts for provided for only where specific information is available to suggest a debtor may be unable to unwilling
to settle its debt to the Syndicate. The provision is calculated on a case-by-case basis.
Foreign currencies
The SPA's functional currency is USD and the reporting currency and presentational currency is GBP.
Transactions denominated in currencies other than the functional currency are initially recorded in the functional
currency at the exchange rate ruling at the date of the transactions. Monetary assets and liabilities (which include all
assets and liabilities arising from insurance contracts including unearned premiums and deferred acquisition costs)
denominated in foreign currencies are retranslated into the functional currency at the exchange rate ruling on the
reporting date.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the
exchange rate as at the date of the initial transaction and are not subsequently restated. Non-monetary items
denominated in a foreign currency, measured at fair value are translated into the functional currency using the
exchange rate ruling at the date when the fair value was determined.
Exchange differences are recorded in the non-technical account.
Investment return
Investment return comprises all investment income. Investment return is initially recorded in the non-technical
account. A transfer is made from the non-technical account to the general business technical account to reflect the
investment return on funds supporting underwriting business.
The SPA operates on a funds withheld basis and therefore holds no investments. However, in accordance with the
SPA Agreement, applicable investment income is allocated to the SPA from the host Syndicate using the experience
account balances as a measure of income due.
Taxation
Under Schedule 19 of the Finance Act 1993 managing agents are not required to deduct basic rate income tax from
trading income. In addition, all UK basic rate income tax (currently at 20%) deducted from SPA investment income
is recoverable by managing agents and consequently the distribution made to members or their members’ agents is
gross of tax. Capital appreciation falls within trading income and is also distributed gross of tax.
No provision has been made for any other overseas tax payable by members on underwriting results or investment
earnings. Any payments on account made by the SPA during the year have been included in the balance sheet
under the heading ‘other debtors’.
Dale Underwriting Partners | Syndicate 6131
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Profit commission
Profit commission is charged by the managing agent at a rate of 17.5% on the profit on a year of account basis
subject to a 2-year deficit clause. Such commission does not become payable until after the appropriate year of
account closes normally at 36 months. There is no profit commission payable as there is no profit anticipated.
Pension costs
The Managing Agent operates a defined contribution scheme. No pension costs for staff employed by Dale Syndicate
Services Limited, the Group service company, have been charged to the SPA during the calendar year (2024 : £NIL).
SPA operating expenses
Certain expenses incurred by the Managing Agent or Service Company (Dale Syndicate Services Limited) may be
apportioned to the SPA using an agreed allocation matrix. Also, some host Syndicate expenses incurred may be
recharged to the SPA, again using these agreed allocations.
Dale Underwriting Partners | Syndicate 6131
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4. Risk and capital management
Introduction and overview
This note presents information about the nature and extent of insurance and financial risks to which the SPA is
exposed, the Managing Agent’s objectives, policies and processes for measuring and managing insurance and
financial risks, and for managing the SPA’s capital.
Risk management framework
The SPA's risk and financial management framework aims to protect the SPA's members capital from events that
might otherwise prevent the SPA from meeting its policyholder obligations, while maximising the returns to its
members. The directors recognise the critical importance of having efficient and effective risk management systems
in place.
The Managing Agency maintains a risk management function for the SPA with clear terms of reference from the
Board, its committees and sub committees. The SPA policy framework sets its risk management and control and
business conduct standards for operations. Dale reviews and monitors each policy to ensure compliance.
The Board approves the risk management policies and meets regularly to approve any commercial, regulatory and
organisational requirements of such policies. These policies define the identification of risk and its interpretation to
ensure the appropriate quality and diversification of assets, align underwriting and reinsurance strategy to the SPA
goals and specify reporting requirements.
The Board places significant emphasis on the assessment and documentation of risks and controls, including the
articulation of the SPA's risk appetite.
A) Insurance risk
The principal risk the SPA faces under insurance contracts is that the actual claims and benefit payments or the
timing thereof, differ from expectations. This is influenced by the frequency of claims, severity of claims, actual
benefits paid and subsequent development of long-term claims. Therefore, the objective of the SPA is to ensure that
sufficient reserves are available to cover these liabilities. Market factors, such as inflation and pricing adequacy, need
to be sufficiently taken account of in order to help mitigate this risk.
The SPA purchases reinsurance as part of its risk mitigation programme. Reinsurance ceded is placed on both a
proportional and non-proportional basis. The majority of proportional reinsurance is quota-share reinsurance which
is to reduce the overall exposure to certain classes of business. Non-proportional reinsurance is primarily excess-of-
loss reinsurance designed to mitigate the SPA's net exposure to single risk and catastrophe losses. Retention limits
for the excess-of-loss reinsurance vary by product line and territory. Amounts recoverable from reinsurers are
estimated in a manner consistent with the outstanding claims provision and are in accordance with the reinsurance
contracts. The SPA's placement of reinsurance is diversified such that it is neither dependent on a single reinsurer
nor are the operations substantially dependent upon any single reinsurance contract.
The Reserve Committee a sub-committees of the Managing Agency Audit Committee oversee the management of
reserve risk. The use of standardised and internal modelling techniques, as well as benchmarking and the review of
claims development are key in mitigating reserving risk.
The purpose of these underwriting, reinsurance and reserving strategies is to limit exposure to catastrophes or large
losses based on the SPA's risk appetite as determined by the Managing Agency board.
The SPA uses both its own and commercially available risk management software to assess catastrophe exposure.
However, there is always a risk that the assumptions and techniques used in these models are unreliable or that
claims arising from an unmodelled event are greater than those arising from a modelled event.
Key assumptions
The principal assumption underlying the liability estimates is that the future claims development will follow a similar
pattern to past claims development experience. This includes assumptions in respect of average claim costs, claim
handling costs, claim inflation factors and claim numbers for each underwriting year. Additional qualitative
judgements are used to assess the extent to which past trends may not apply in the future, for example, one-off
occurrences, changes in market factors such as public attitude to claiming, economic conditions, as well as, internal
factors such as portfolio mix, policy conditions and claims handling procedures. Judgement is further used to assess
the extent to which external factors such as judicial decisions and government legislation affect the estimates.
Other key circumstances affecting the reliability of assumptions include variation in interest rates, delays in settlement
and changes in foreign currency rates.
Dale Underwriting Partners | Syndicate 6131
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Sensitivity to insurance risk
The claim liabilities are sensitive to the key assumptions that follow. It has not been possible to quantify the sensitivity
of certain assumptions such as legislative changes or uncertainty in the estimation process including, but not limited
to, the effect of inflation on future claim liabilities. The following analysis is performed for reasonably possible
movements in key assumptions with all other assumptions held constant, showing the impact on gross and net
liabilities. The correlation of assumptions will have a significant effect in determining the ultimate claims liabilities, but
to demonstrate the impact due to changes in assumptions, assumptions have been changed on an individual basis.
General insurance business sensitivities as at 31 December 2025 | Sensitivity | |
+5.0% | -5.0% | |
| £’000 | £’000 | |
| Claims outstanding – gross of reinsurance | ( | |
| Claims outstanding – net of reinsurance | ( |
General insurance business sensitivities as at | Sensitivity | |
+5.0% | -5.0% | |
| £’000 | £’000 | |
| Claims outstanding – gross of reinsurance | ( | |
| Claims outstanding – net of reinsurance | ( |
The method used for deriving sensitivity information and significant assumptions did not change from the previous
period.
B) Financial risk
The focus of financial risk management for the Syndicate is ensuring that the proceeds from its financial assets are
sufficient to fund the obligations arising from its insurance contracts. The goal of the investment management process
is to optimise the risk adjusted investment income and risk adjusted total return by investing in a diversified portfolio
of securities, whilst ensuring that the assets and liabilities are managed on a cash flow and duration matching basis.
a. Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss to the other party by failing to
honour their obligation. The following policy and procedure is in place to mitigate the SPA exposure to credit risk.
Reinsurance is placed with counterparties that have a good credit rating and concentration of risk is avoided by
following policy guidelines in respect of counterparties' limits. If the counterparty is downgraded or does not have a
good credit rating, then collateral is sought to mitigate any risk. This is monitored by the Reinsurance Security
Committee.
i. Exposure to credit risk
The table below provides information regarding the credit risk exposure of the SPA at 31 December 2025 by
classifying assets according to independent credit ratings of the counterparties. AAA is the highest possible rating.
Assets that fall outside the range of AAA to BBB are classified as speculative grade and have not been rated, Debtors,
other than amounts due from reinsurers, have been excluded from the table as these are not rated.
| AAA | AA | A | BBB | Other | Not rated | Total | |
| 2025 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 |
Reinsurers share of claims outstanding | |||||||
Debtors arising out of reinsurance operations | |||||||
Total |
| AAA | AA | A | BBB | Other | Not rated | Total | |
| 2024 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 |
Reinsurers share of claims outstanding | |||||||
Debtors arising out of reinsurance operations | |||||||
Total |
Dale Underwriting Partners | Syndicate 6131
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The Managing Agency Board’s policy is that the SPA will only reinsure with approved reinsurers. The not rated
reinsurers’ that are shown in the tables above are fully collateralised.
Maximum credit exposure
It is the SPA's policy to maintain accurate and consistent risk ratings across its credit portfolio. This enables
management to focus on the applicable risks and the comparison of credit exposures across all lines of business.
During the year, no credit exposure limits were exceeded.
ii. Financial assets that are past due or impaired
The table below show the maximum exposure to credit risk (including an analysis of financial assets exposed to
credit risk) for the components of the statement of financial position. The maximum exposure is shown gross, before
the effect of mitigation through collateral agreements and the use of credit derivatives.
2025
Neither past
due nor
impaired
Past due but
not impaired
assets
Gross value
of impaired
assets
Total
£’000
£’000
£’000
£’000
Reinsurers share of claims outstanding
Debtors arising out of reinsurance operations
Total
2024
Neither past
due nor
impaired
Past due but
not impaired
assets
Gross value
of impaired
assets
Total
£’000
£’000
£’000
£’000
Reinsurers share of claims outstanding
Debtors arising out of reinsurance operations
Total
The table below sets out the age analysis of financial assets that are past due but not impaired at the balance sheet
date.
2025
0-3 months
past due
3-6 months
past due
6-12
months
past due
Greater
than 1 year
past due
Total
£’000
£’000
£’000
£’000
£’000
Debtors arising out of direct insurance operations
Debtors arising out of reinsurance operations
Total
2024
0-3 months
past due
3-6 months
past due
6-12
months
past due
Greater
than 1 year
past due
Total
£’000
£’000
£’000
£’000
£’000
Debtors arising out of direct insurance operations
Debtors arising out of reinsurance operations
Total
b. Liquidity risk
Liquidity risk is the risk that the SPA may not have enough cash to pay insurance claims and other liabilities. The
SPA tries to reduce this risk by reviewing its expected cash obligations on a quarterly basis and keeping adequate
cash on deposit to meet those obligations.
The table below summarises the maturity profile of the SPA's financial liabilities based on remaining undiscounted
contractual obligations, including interest payable and outstanding claim liabilities based on the estimated timing of
claim payments resulting from recognised insurance liabilities. Repayments which are subject to notice are treated
as if notice were to be given immediately.
Dale Underwriting Partners | Syndicate 6131
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| 2025 | No maturity stated | 0-1 Year | 1-3 Years | 3-5 Years | >5 Years | Total |
| £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | |
Claims outstanding | ||||||
Creditors | ||||||
Total |
2024
No
maturity
stated
0-1 Year
1-3 Years
3-5 Years
>5 Years
Total
£’000
£’000
£’000
£’000
£’000
£’000
Claims outstanding
Creditors
Total
c. Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument or insurance contract will
fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency
risk and other price risk.
The objective of market risk management is to manage and control market risk exposures within acceptable
parameters, while optimising the return on risk. The nature of the SPA exposures to market risk and its objectives,
policies and processes for managing market risk have not changed significantly from the prior year.
For each of the major components of market risk the SPA 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 SPA at the reporting date to each major risk are addressed below.
i. Interest rate risk
Interest rate risk is the risk that the value or future cash flows of a financial instrument will fluctuate because of
changes in market interest rates. Floating rate instruments expose the SPA to cash flow interest risk, whereas fixed
rate instruments expose the SPA to fair value interest risk.
The SPA has no significant concentration of interest rate risk. Insurance liabilities are not discounted and therefore
not exposed to interest rate risk.
ii. Currency risk
Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of
changes in foreign exchange rates.
The SPA's functional currency is US Dollars and its exposure to foreign exchange risk arises primarily with respect
to transactions in EUR, JPY, GBP and CAD. The SPA seeks to mitigate the risk by matching the estimated foreign
currency denominated liabilities with assets denominated in the same currency.
The table below summarises the exposure of the financial assets and liabilities to foreign currency exchange risk at
the reporting date, as follows:
Dale Underwriting Partners | Syndicate 6131
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Sterling
US dollar
Euro
Canadian
dollar
Japanese
Yen
Total
2025
£’000
£’000
£’000
£’000
£’000
£’000
Reinsurers’ share of technical
provisions
Debtors
Total assets
Technical provisions
(239 )
(5,193 )
(117 )
(2 )
(1 )
(5,552 )
Creditors arising out of reinsurance
operations
(2,248 )
(10,532 )
(12,237 )
-
-
-
-
-
Total capital and reserves
(422 )
(11 )
(7 )
Sterling
US dollar
Euro
Canadian
dollar
Japanese
Yen
Total
2024
£’000
£’000
£’000
£’000
£’000
£’000
Reinsurers’ share of technical
provisions
Debtors arising out of reinsurance
operations
(1,000 )
Total assets
(1,000 )
Technical provisions
(656 )
(12,318 )
(305 )
(13,279 )
Creditors arising out of reinsurance
operations
(1,233 )
(1,110 )
(459 )
(2,802 )
Accruals and deferred income
(117 )
(117 )
Total liabilities
(2,006 )
(13,428 )
(764 )
(16,198 )
-
-
-
-
-
Total capital and reserves
(517 )
(14 )
(8 )
The SPA matches its currency position so holds net assets across a number of currencies. The SPA takes into
consideration the underlying currency of the SPAs required capital and invests its assets proportionately across these
currencies to protect the solvency of the SPA against variation in foreign exchange rates. In order to make settlements
in a specific currency the SPA has the ability to utilise other currencies as required.
Accruals and deferred income (113 ) - - - - (113 )
Total liabilities (2,600 ) (15,725 ) 405 11 7 (17,902 )
Dale Underwriting Partners | Syndicate 6131
27
Sensitivity to changes in foreign exchange rates
The table below gives an indication of the impact on profit of a percentage change in the relative strength of Sterling
against the value of the USD, CAD, EUR and JPY simultaneously. The analysis is based on the information as at
31st December 2025.
2025
2024
Impact on
results
before tax
Impact on
members’
balances
Impact on
results
before tax
Impact on
members’
balances
£’000
£’000
£’000
£’000
Currency risk
US Dollar weakens
10% against other currencies
(1,485)
(1,485)
(1,011)
(1,011)
20% against other currencies
(2,970)
(2,970)
(2,023)
(2,023)
US Dollar strengthens
10% against other currencies
1,485
1,485
1,011
1,011
20% against other currencies
2,970
2,970
2,023
2,023
iii. Equity price risk
Equity price risk is the risk that the fair value of a financial instrument will fluctuate because of changes in market
prices (other than those arising from interest rate risk or currency risk), principally investment securities, whether
those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting
all similar financial instruments traded in the market.
The SPA operates on a funds-held basis, meaning it doesn't hold any investments on its balance sheet that would
be exposed to equity price risk.
C) Capital management objectives, policies and approach
i. Capital framework at Lloyd's
The Society of Lloyd's (Lloyd's) is a regulated undertaking and subject to the supervision of the Prudential Regulatory
Authority (PRA) under the Financial Services and Markets Act 2000.
Within the supervisory framework, Lloyd's applies capital requirements at member level and centrally to ensure
compliance with Solvency II capital requirements and to meet its own financial strength, licence and ratings
objectives.
Although Lloyd's capital setting processes use a capital requirement set at Syndicate level, the requirement to meet
Solvency II and Lloyd's capital requirements apply at overall and member level only. Therefore, the capital
requirement in respect of SPA 6131 is not disclosed in these financial statements.
ii. Capital framework at Lloyd's
To meet Lloyd's requirements, each SPA is required to calculate its Solvency Capital Requirement (SCR) for the
prospective underwriting year. This amount must be sufficient to cover a 1 in 200-year loss, reflecting uncertainty in
the ultimate run-off of underwriting liabilities (SCR 'to ultimate'). The SPA 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 SPA are subject to review by Lloyd's and approval by the Lloyd's Capital
and Planning Group.
A SPA may be comprised of one or more underwriting members. Each member is liable for its own share of
underwriting liabilities of the SPA on which it participates but not other members' shares. The capital requirement
that Lloyd's sets for each member operates on a similar basis. Each member's SCR is determined by the sum of the
member's share of the SPA SCR 'to ultimate'. Where a member participates on more than one SPA, a credit for
diversification is provided to reflect the spread of risk, but consistent with determining an SCR which reflects the
capital requirement to cover a 1 in 200 year loss 'to ultimate' for that member. Over and above this, Lloyd's applies
Dale Underwriting Partners | Syndicate 6131
28
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 rather than a Solvency II requirement, is to meet Lloyd's financial strength, licence
and ratings objectives. The capital uplift applied for 2024 was 35% of the member's SCR 'to ultimate'.
iii. Capital framework at Lloyd's
Each member must provide capital to meet its ECA either by assets held in trust by Lloyd's specifically for that
member (Funds at Lloyd's), held within and managed within a SPA (Funds in SPA) or as the member's share of the
members' balances on each SPA on which it participates. Accordingly, the ending members balances reported on
the statement of financial position on page 15, represent resources available to meet members' and Lloyd's capital
requirements.
5. Analysis of underwriting result
An analysis of the underwriting result before investment return is set out below:
Gross
premiums
written
Gross
premium
earned
Gross
claims
incurred
Gross
operating
expenses
Reinsurance
balance
Underwriting
results
2025
£’000
£’000
£’000
£’000
£’000
£’000
Reinsurance
Casualty
(125 )
(2 )
(4 )
(129 )
Property
(176 )
(176 )
(155 )
(4 )
(206 )
Aviation
(4,507 )
(89 )
(142 )
(4,695 )
Total
(131 )
(131 )
(4,787 )
(95 )
(17 )
(5,030 )
Gross
premiums
written
Gross
premium
earned
Gross
claims
incurred
Gross
operating
expenses
Reinsurance
balance
Underwriting
results
2024
£’000
£’000
£’000
£’000
£’000
£’000
Reinsurance
Casualty
(18 )
(18 )
(1,414 )
(145 )
(1,423 )
Property
(91 )
(4 )
(54 )
Aviation
(8,804 )
(67 )
(8,752 )
Total
(10,309 )
(216 )
(10,075 )
All premiums were concluded in the UK.
Gross operating expenses are the same as net operating expenses shown in the income statement, as no
commissions in respect of outward reinsurance were received and set off in arriving at the net operating expenses
for 2025.
6. Net operating expenses
| 2025 | 2024 | |
| £’000 | £’000 | |
Acquisition costs | ( | |
Change in deferred acquisition costs | ||
Administration expenses | ||
Net operating expenses |
Total commissions for direct insurance business for the year amounted to:
| 2025 | 2024 | |
| £’000 | £’000 | |
Total commission for direct insurance business |
Dale Underwriting Partners | Syndicate 6131
29
Administrative expenses include:
| 2025 | 2024 | |
| £’000 | £’000 | |
| Auditors’ remuneration | ||
| Fees payable to the Syndicate’s auditor for the audit of these financial statements | ||
| Fees payable to the Syndicate’s auditor and its associates in respect of other services pursuant to legislation | ||
Total | 100 | 93 |
7. Key management personnel compensation
The aggregate emoluments of the directors and staff of the Managing Agency are paid by the service company, Dale
Syndicate Services Limited. These costs are then recharged to either Syndicate 1729 or Dale Managing Agency
Limited, according to an agreed allocation basis.
No emoluments of the Directors or staff of Dale Managing Agency Ltd were directly charged to the SPA.
No other compensation was payable to key management personnel.
The emoluments of the Active Underwriter are borne by the host, Syndicate 1729.
8. Staff numbers and costs
The SPA and Managing Agent have no direct employees. Many of the staff working on the affairs of the SPA are
employed by a Group service company, Dale Syndicate Services Limited. The recharge of the expenses from the
service company to the SPA is through a recharge model across the other group entities and the recharge of the
costs are dependent on the nature of the service performed for the SPA. No cost is recharged to the SPA due to the
fact that an SPA fee was charged to each Year of Account within the first year of development, and now the SPA is
in run-off there are no further fees chargeable.
| 2025 | 2024 | |
| £’000 | £’000 | |
Wages and salaries | ||
Social security costs | ||
Other pension costs | ||
Total |
9. Distribution and open years of account
The table below shows the current reporting year result (total comprehensive loss) of the year of account remaining
open after the three-year period.
2025
£’000
2024
£’000
2021 YOA
(4,248 )
(10,102 )
10. Debtors arising out of reinsurance operations
| 2025 | 2024 | |
| £’000 | £’000 | |
Due within one year | ||
Due after one year | ||
Total |
Dale Underwriting Partners | Syndicate 6131
30
11. Claims development
The tables below show the Syndicate's cumulative incurred claims development, including both claims notified and
IBNR for each underwriting year, together with the cumulative payments to date on a gross and net of reinsurance
basis at the balance sheet date.
The Syndicate has elected to translate estimated claims and claims payments at a consistent rate of exchange as
determined by the balance sheet date.
Pure underwriting year
2018
2019
2020
2021
Total
£’000
£’000
£’000
£’000
£’000
Estimate of gross claims at the end of underwriting year:
At end of underwriting year
One year later
Two years later
Three years later
Four years later
Five years later
Six years later
Seven years later
Estimate of gross claims reserve
Provision in respect of prior years
Less gross claims paid
(4,720 )
(9,570 )
(4,535 )
(17,524 )
(36,349 )
Gross claims reserve
Pure underwriting year
2018
2019
2020
2021
Total
£’000
£’000
£’000
£’000
£’000
Estimate of net claims at the end of underwriting year:
At end of underwriting year
One year later
Two years later
Three years later
Four years later
Five years later
Six years later
Seven years later
Estimate of net claims reserve
Provision in respect of prior years
Less net claims paid
(2,820 )
(6,349 )
(2,662 )
(16,787 )
(28,618 )
Net claims reserve
The uncertainty associated with the ultimate claims experience of an underwriting year is greatest when the
underwriting year is at an early stage of development and the margin for future experience potentially being more
adverse than assumed is at its highest. As claims develop, and the ultimate cost of the claims becomes more certain,
the relative level of margin should decrease. Due, however, to the uncertainty inherent in the claims estimation
process, initial reserves may not always be in a surplus.
Dale Underwriting Partners | Syndicate 6131
31
12. Technical provisions
The table below shows changes in the insurance contract liabilities and assets from the beginning of the period to
the end of the period.
2025
2024
Gross
provisions
Reinsurance
assets
Net
Gross
provisions
Reinsurance
assets
Net
£’000
£’000
£’000
£’000
£’000
£’000
Claims outstanding
Balance at 1 January
(668 )
(1,046 )
Claims paid during the year
(11,902 )
(11,833 )
(2,559 )
(1,948 )
Expected cost of current year claims
(223 )
Foreign exchange movements
(612 )
(575 )
(10 )
Balance as 31 December
(446 )
(668 )
2025
2024
Gross
provisions
Reinsurance
assets
Net
Gross
provisions
Reinsurance
assets
Net
£’000
£’000
£’000
£’000
£’000
£’000
Unearned premiums
Balance at 1 January
Premium written during the year
(131 )
(32 )
(69 )
Premium earned during the year
(99 )
(296 )
(227 )
Foreign exchange movements
Balance as 31 December
In order to assess appropriate level of technical provisions for future claims, the Syndicate has engaged its internal
actuarial expert to estimate the future Incurred but Not Reported (IBNR) claims. The directors of the managing agent
consider that the provisions for gross claims and related reinsurance recoveries are fairly stated on the basis of the
information currently available to them. However, there are specific areas of concern related to the business impacted
by the Ukraine invasion for the 2021 Year of Account (YOA), which carry a high degree of uncertainty. The primary
areas of uncertainty involve the specialty books, where claims can take many years to resolve and may be affected
by changes in legislation and legal precedents. As the business has been in run off for some time, the number of
open claims and the reserve amounts are generally declining, movements on individual large losses can have a
materially more significant impact on the level of reserves reported, and related reinsurance recoveries. The ultimate
estimate of the gross claims outstanding liabilities, and related reinsurance recoveries, are subject to significant
uncertainty and may differ materially from the estimate that is currently provided in the Annual Accounts. The
Directors are comfortable with the level of IBNR held for this event but, due to the lack of claim notifications, the
development of the losses is uncertain and as such it is in the best interests of the names to keep the SPA open at
this stage.
13. Creditors arising out of reinsurance operations
| 2025 | 2024 | |
| £’000 | £’000 | |
Due within one year | ||
Due after one year | ||
Total |
Dale Underwriting Partners | Syndicate 6131
32
14. Related parties
From 1 October 2022, Dale Managing Agency Limited (DMAL) became the Managing Agent for Syndicate 1729 and
Special Purpose Arrangement 6131.
Dale Partners Limited (DPL), a company registered in England and Wales, is the immediate parent company of the
Dale Group. Dale Syndicate Services Limited (DSSL), a company registered in England and Wales, is a service
company within that Group, set up to provide services to SPA 6131. It is the employing company of all staff who
work for the Syndicate and Managing Agency. The ultimate and controlling party is Dale Partners Group Limited,
which is registered and incorporated in Jersey.
At the end of the period, due to the fact that SPA 6131 operates on a cash-withheld basis with host Syndicate 1729,
there was a balance due to Syndicate 1729 of £12,064,000 (2024 - £506,308).
Heather McKinlay, an Independent Non-Executive Director of DMAL also serves as a Non-Executive Director of
Antares Managing Agency Limited, a related party under FRS 102 Section 33; no transactions occurred between the
Syndicate and Antares during the year ended 31 December 2025.
15. Off-balance sheet items
The SPA has not been party to any arrangement, which is not reflected in its statement of financial position, where
material risks and benefits arise for the SPA.
16. Post balance sheet events
The Directors of the Managing Agent have made the decision after speaking to members, that the 2021 year of
account will remain open for at least a further 12 months due to the uncertainty of the reserves being held.
17. Contingencies and commitments
There were no contingencies and commitments required to be disclosed in the SPA financial statements.
18. Foreign exchange rates
The following currency exchange rates have been used for principal foreign currency transactions:
2025
2024
Start of period
rate
End of period
rate
Average rate
Start of period
rate
End of period
rate
Average rate
Sterling
Euro
US dollar
Canadian dollar
Japanese Yen
19. Funds at Lloyd’s
Every member is required to hold capital at Lloyd's which is held in trust and known as Funds at Lloyd's (FAL). These
funds are intended primarily to cover circumstances where SPA 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 annual accounts by
way of such capital resources. However, the managing agent is able to make a call on the members' FAL to meet
liquidity requirements or to settle losses.
