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Page
Managing agent’s report 1
Statement of managing agent’s responsibilities 7
Independent auditor's report to the member of Syndicate 1458 8
Income statement 12
Statement of changes in member's balances 14
Statement of financial position 15
Statement of cash flows 17
Notes to the financial statements 18
Table of contents
Syndicate 1458 Annual Report and Accounts 2025
The Syndicate's managing agent, RenaissanceRe Syndicate Management Limited (“RSML” or the “Agency”), is a
company registered in England and Wales (Company Number: 01120384). The managing agency's immediate
parent undertaking is RenaissanceRe European Holdings Limited, a company incorporated in the United Kingdom.
The ultimate parent company of the largest group as well as the smallest group that produces consolidated
accounts of which the company is a member is RenaissanceRe Holdings Ltd. ("RRH Ltd"), a company incorporated
in Bermuda. Copies of the group financial statements of RRH Ltd. are available from this company’s registered
office, 125 Old Broad Street, London EC2N 1AR.
The directors of RSML 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.
Principal activity
There have not been any significant changes to the Syndicate's principal activities during the year. The Syndicate's
principal activities continued to be the transaction of general insurance and reinsurance business across property,
casualty and specialty lines.
The Syndicate capacity (expressed as gross premium written net of acquisition costs) for the 2025 year of account
was £763.4m. The capacity for the 2024 year of account was £971.3m.
Results
During the year ended 31 December 2025, the Syndicate generated an underwriting profit of $150.1m (2024 -
$54.0m) before addition of investment return of $57.7m (2024 - $36.3m). The overall result, after the inclusion of
profits/losses on exchange and investment income, is a profit of $198.5m (2024 - $89.2m).
Business Review
Review of the business of the Syndicate
The Syndicate’s key financial performance indicators during the year were as follows:
2025 2024 Change
$m / % $m / %
Gross premiums written $1,096.4 $1,370.6 (20.0)%
Profit for the financial year $198.5 $89.2
Combined ratio 71.3% 90.3% (19.0)%
Investment return 4.3% 3.2% 1.1%
Note: The combined ratio is the ratio of net claims incurred and net operating expenses to net premiums earned. A
lower combined ratio represents better performance. The investment return is the total investment return (inclusive
of realised and unrealised gains and losses) divided by the average amount of funds available for investment during
the year.
Gross premiums written for the year was $1,096.4m and represented a 20.0% decrease on 2024 gross premiums
written. The decrease is across both Property and Casualty/Specialty segments and is driven by current market
conditions. Within the Property segment, the decrease in gross premiums reflects rate pressure within our Property
Direct and Facultative book, impacting the current Underwriting Year as well as prior Underwriting Year premium
estimates. Within the Casualty/Specialty segment, the decrease in gross premiums is primarily in Specialty,
particularly Cyber and Marine, Aviation and Transport classes.
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Syndicate 1458 Annual Report and Accounts 2025
Outward reinsurance premiums for the year was $590.3m and represented a 20.1% decrease on 2024. The
decrease in ceded premiums is primarily from lower ceded QS premium as a function of the reduction in underlying
gross premiums written. The ceded strategy for the 2025 underwriting year was broadly similar to the 2024
underwriting year.
The Syndicate's combined ratio for the year was 71.3% (2024 - 90.3%). Notwithstanding the impact from California
Wildfires and Hurricane Melissa, the 2025 results benefitted from relatively low catastrophe activity during the year
in addition to strong attritional claims performance and favourable prior year claims development. While the 2024
results also benefitted from favourable prior year claims development, this was offset by catastrophe activity in the
year, most notably from Hurricanes Milton and Helene.
Review of financial position
Financial investments as at 31 December 2025 are $1,395.2m reflecting an increase compared to the prior year
(2024 - $1,141.1m). The increase in financial investments is due to continued premium receipts, lower net claims
activity and higher investment returns.
Reinsurers' share of claims outstanding as at 31 December 2025 are $1,050.4m compared to $1,326.6m as at the
prior year. The reinsurers' share of claims outstanding as a percentage of gross claims outstanding has reduced
largely due to the settlement of a funds withheld reinsurance agreement. Part of the credit risk arising on
recoverables from reinsurers is mitigated by collateral held in trust for certain balances, as disclosed in the note 24
to the financial statements.
Debtors arising from insurance and reinsurance operations as at 31 December 2025 is $618.5m compared to
$756.8m as at the prior year. The decrease is attributable to the reduction in gross premiums written. There have
been no collection issues during the year.
Gross technical provisions have decreased to $2,688.8m from $2,866.0m. Unearned premiums has stayed
relatively flat in spite of gross premiums written decreases largely due to changes in business mix. The decrease in
claims outstanding aligned with the decrease in underlying gross premiums and also reflects lower catastrophe
activity during the year, as well as the favourable attritional performance and prior year claims development.
Principal risks and uncertainties
RSML’s risk strategy is based on the integrated management of capital and risk. The risk management tools utilised
by RSML allow for the determination of capital to support the risks assumed on an individual basis. The Syndicate’s
risk tolerance is set by the RSML Board and is reviewed on an ongoing basis as part of the risk management
process. RSML has an established Risk Function that coordinates the execution of risk management processes
across the company by ensuring RSML has an effective and efficient risk management framework which enables
risks to be captured, measured and managed appropriately. RSML also has a Risk Committee which oversees the
activities of the Risk Function, ensuring that there is a robust risk management framework in place and monitoring
adherence to agreed risk appetite and tolerance levels. RSML also has a 'Risk Management Working Group', a
cross-functional discussion forum which meets on a periodic basis to discuss topical risk issues and to provide
feedback on existing risk management processes and reporting to ensure they remain appropriate. RSML also has
a Finance Committee that overseas activities with respect to the management of Credit Risk, Market Risk and
Liquidity Risk.
The Risk Committee, the Finance Committee, the Risk Management Working Group and the Risk Function are key
elements of RSML’s governance structure that, as a whole, is designed to provide for clear ownership and
accountability for risk throughout the company. Material risk related matters are reported to the Executive
Committee, the Risk Committee and the RSML Board, whilst the controls in place to mitigate these risks are
monitored for ongoing effectiveness.
The principal risks and uncertainties facing the Syndicate are set out below, including reference to the notes where
additional information in relation to these risks are provided in the financial statements:
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Syndicate 1458 Annual Report and Accounts 2025
Regulatory risk [Note 24 (b)]
Regulatory risk is the risk of loss and / or damaging of reputation owing to a breach of regulatory requirements or
failure to respond to regulatory change. The Agency is required to comply with the requirements of the Prudential
Regulation Authority ("PRA"), Financial Conduct Authority ("FCA") and Lloyd’s. Lloyd’s requirements include those
imposed on the Lloyd’s market by overseas regulators, particularly in respect of US Situs business. RSML has a
Compliance team that monitors regulatory developments and assesses the impact on RSML policy. Further, those
responsible for satisfying regulatory requirements are well-versed in those requirements.
Underwriting risk [Note 24 (a)-(c)]
Underwriting risk is the risk that is assumed into or ceded from the Syndicate as a result of its underwriting activities
during the time period of interest, in particular the risk of incurring claims in excess of expectations and the
associated reduction in profits and/or erosion of capital. Risk related to previously earned premium, including that on
expired underwriting contracts, is considered as part of reserve risk. Underwriting and reserve risks are the most
material components of RSML’s risk management framework. RSML has articulated the underwriting risk tolerance
of the Syndicate as well as associated processes and policies in the Underwriting Risk Policy. Further, annually the
Syndicate articulates its business plan, setting out targets for volumes, pricing, line sizes and retentions by class of
business. Performance against the business plan is monitored on an ongoing basis.
Reserve risk [Note 24 (c)]
The Syndicate's claims and claim expense reserves reflect its estimates, using actuarial and statistical projections at
a given point in time, of the expectations of the ultimate settlement and administration costs of claims incurred.
Although the Syndicate uses actuarial and computer models as well as historical reinsurance and insurance
industry loss statistics, it also relies heavily on management's experience and judgement to assist in the
establishment of appropriate claims and claim expense reserves. Estimates are revised as additional experience
and other data become available, as new or improved methodologies are developed, as loss trends and claims
inflation impact future payment, or as rules and regulations change.
Reserve risk is the risk that claims and claim expense reserves subsequently prove to be insufficient to cover
eventual claims. Deterioration in reserves can originate from frequency of claims being more than expected,
severity of claims being higher than expected and difference between timing of claims payments versus expected.
Reserve risk relates to all business earned at the valuation date. Risk relating to claims on unearned and future
business is considered as part of underwriting risk. Reserve adequacy is monitored through quarterly review of
reserves by the RSML Actuarial Function, by the RSML Reserve Committee and as well as through an annual
assessment performed by the Syndicate's Independent Actuary.
Credit risk [Note 24 (d)(1)]
Credit risk is the risk of loss in the value of financial assets due to counterparties failing to meet part or all of their
obligations or failing to meet them in a timely manner, as well as adverse changes in the market value of assets
caused by changed perceptions of the creditworthiness of counterparties. For Syndicate 1458, key counterparties
with whom we are exposed to credit risk include reinsurers, brokers, insureds, reinsureds, coverholders and
investment counterparties. RSML has articulated the credit risk appetite of the Syndicate as well as associated
processes and policies in the Credit Risk Policy. Further, the Syndicate has established counterparty credit rating
guidelines providing a suggested maximum limit to be exposed to individual reinsurers based on their credit rating.
The guidelines also provide some perspective which should facilitate the reinsurance purchasing process and credit
risk management and monitoring process. Aged receivable reports are produced on a regular basis and monitored
by the Finance Committee. Also, the Syndicate holds collateral which mitigates the credit risk of reinsurers' share of
claims outstanding and reinsurance debtors of certain reinsurers. In relation to credit risk on the investment
portfolio, the Syndicate manages credit risk by maintaining an investment portfolio which is typically positioned in
high quality fixed incomes securities.
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Syndicate 1458 Annual Report and Accounts 2025
Liquidity risk [Note 24 (d)(2)]
Liquidity risk is the risk that the Syndicate, although solvent, might not have sufficient available liquid resources to
enable it to meet its obligations as they fall due, or could secure them only at excessive cost. The liquidity objective
is to preserve capital and provide adequate liquidity to support the Syndicate's underwriting and day-to-day
operations. RSML has articulated the liquidity risk appetite of the Syndicate as well as associated processes and
policies in the Liquidity Risk Policy. Also, Syndicate liquidity is formally reviewed quarterly by the Finance
Committee, as well as on an ongoing basis by the Finance Director.
Market risk [Note 24 (d)(3)]
Market risk is the risk of financial loss due to movements in market factors. For the Syndicate, this can manifest
through investment market movements, including movements in interest rates, inflation, movements in foreign
exchange rates, resulting in mismatches between currencies in which assets and liabilities are denominated, and
changes in credit ratings or investment prices. RSML has articulated the market risk appetite of the Syndicate as
well as associated processes and policies in the Market Risk Policy adherence to which is monitored by the Finance
Committee. In addition, the Finance Committee is responsible for reviewing, among other things, investment
performance, strategy and investment policy.
Operational risk
Operational risk is the risk that errors caused by people, processes or systems lead to losses to the Syndicate.
RSML seeks to manage this risk through the use of of the three lines of defense model in conjunction with detailed
procedures manuals and a structured programme of monitoring and testing of processes and systems.
Climate change [Note 24 (e)]
Natural catastrophes including extreme weather are a material risk that impacts the business of the Syndicate.
Climate change is expected to increase the frequency and or severity of future extreme weather events. Some of
our principal economic exposures arise from our coverages for natural disasters and catastrophes.
We believe that this potential increase in severe weather, coupled with currently projected demographic trends in
catastrophe-exposed regions, contributes to factors that will increase the average economic value of expected
losses, increase the number of people exposed per year to natural disasters and in general exacerbate disaster
risk, including risks to infrastructure, global supply chains and agricultural production. Accordingly, we expect an
increase in both the frequency and magnitude of claims, especially from properties located in coastal areas.
The consideration of the impacts of climate-related risk, including climate change is integrated into our risk
management process. We have taken measures to mitigate losses related to climate change through our
underwriting process and by continuously monitoring and adjusting our risk management models to reflect the
higher level of risk that we think will persist. We have been progressively integrating the consideration of the
financial risk of climate change into our governance frameworks, risk management processes, and business
strategies over the past several years. We monitor emerging regulatory expectations, as many of our regulators are
increasingly focused on climate-related risk oversight and disclosures.
Our board of directors and its committees are actively engaged in the oversight of sustainability initiatives and
receive regular updates from management on progress, risk and developments.
We structure our investment portfolio to emphasize the preservation of capital and the availability of liquidity to meet
our claims obligations, to be well diversified across market sectors, and to generate relatively attractive returns on a
risk-adjusted basis over time. To further the sustainability of our investment portfolio, we consider certain
environmental, social and governance factors within our investment strategy. In addition to the impacts that
environmental incidents have on our business, there has been a proliferation of governmental and regulatory
scrutiny related to climate change and greenhouse gases, which will also affect our business.
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Syndicate 1458 Annual Report and Accounts 2025
Effects of Inflation [Note 24 (f)]
General economic inflation has increased over the past few years compared to recent historical norms, and there is
a risk of inflation remaining elevated for an extended period, which could cause claims and claims related expenses
to increase, impact the performance of our investment portfolio, or have other adverse effects. This risk may have
been exacerbated by geopolitical factors and global supply chain issues or tariffs, among other factors, from time to
time. Central bank policy and changes to interest rates may also increase the risk of inflationary pressures. The
actual effects of the current and potential future increase in inflation on our results cannot be accurately known until,
among other items, claims are ultimately settled. The duration and severity of an inflationary period cannot be
estimated with precision. We consider the anticipated effects of inflation on us in our catastrophe loss models and
on our investment portfolio. Our estimates of the potential effects of inflation are also considered in pricing and in
estimating reserves for unpaid claims and claim expenses. The potential exists, after a catastrophe loss, for the
development of inflationary pressures in a local economy.
Furthermore, unanticipated developments in the law as well as changes in social conditions could result in
unexpected claims for coverage under our insurance and reinsurance contracts. Our exposure to these
uncertainties could be exacerbated by social inflation trends, including increased litigation, expanded theories of
liability and higher jury awards. These uncertainties are taken into consideration in establishment of appropriate
claims and claims expense reserves.
Future developments
During 2026, the Syndicate will continue to underwrite insurance and reinsurance business, seeking opportunities to
grow a diversified portfolio with ongoing focus on bottom line profitability, and to further develop key strategic
relations and the brand.
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Syndicate 1458 Annual Report and Accounts 2025
Directors
Details of the Directors of RSML (Company Number: 01120384) that served during the year and up to the date of
signing of the Syndicate annual accounts are as follows:
L D L Barran
H R T Brennan
H A Brown
M E A Carpenter
E J Cruttenden
H C Hatchek
C S McMenamin
E Mishambi
R J Murphy
A L H Smith
D D Upadhyaya
J Wilson
Company Secretary
M Smith
Registered office
18th Floor
125 Old Broad Street
London
EC2N 1AR
Reappointment of auditors
PricewaterhouseCoopers LLP are the independent auditors for the 2025 report and accounts.
PricewaterhouseCoopers LLP have indicated their willingness to continue in office as the Syndicate's auditors. The
registered office of PricewaterhouseCoopers LLP is 7 More London Riverside, London, SE1 2RT.
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Managing agent's report
Syndicate 1458 Annual Report and Accounts 2025
The managing agent is responsible for preparing the Syndicate annual accounts in accordance with applicable law
and regulations.
The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 requires the
managing agent to prepare Syndicate annual accounts at 31 December each year in accordance with United
Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The
Syndicate annual accounts are required by law to give a true and fair view of the state of affairs of the Syndicate as
at that date and of its profit or loss for that year.
In preparing the Syndicate annual accounts, the managing agent is required to:
• Select suitable accounting policies and then apply them consistently;
• Make judgements and estimates that are reasonable and prudent;
• State whether applicable UK Accounting Standards have been followed, subject to any material departures
disclosed and explained in the notes to the Syndicate accounts;
• Prepare the Syndicate annual accounts on the basis that the Syndicate will continue to write future business
unless it is inappropriate to presume that the Syndicate will do so; and
• Prepare and review the iXBRL tagging that has been applied to the Syndicate Accounts in accordance with the
instructions issued by Lloyd’s, including designing, implementing and maintaining systems, processes and
internal controls to result in tagging that is free from material non-compliance with the instructions issued by
Lloyd’s, whether due to fraud or error.
The managing agent is responsible for keeping adequate accounting records which disclose with reasonable
accuracy at any time the financial position of the Syndicate and enable it to comply with the Insurance Accounts
Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008. It is also responsible for safeguarding the
assets of the Syndicate and hence for taking reasonable steps for the prevention and detection of fraud and other
irregularities.
The managing agent is responsible for the maintenance and integrity of the corporate and financial information
included on the business’ website. Legislation in the United Kingdom governing the preparation and dissemination
of annual accounts may differ from legislation in other jurisdictions.
Director's confirmations
In the case of each of the persons who are directors of the managing agent at the time the report is approved:
• So far as the director is aware, there is no relevant audit information, being information needed by the Syndicate
auditor in connection with the auditor's report, of which the auditor is unaware; and
• Having made enquiries of fellow directors of the Agency and the Syndicate’s auditor, each director has taken all
the steps that he or she ought to have taken as a director to become aware of any relevant audit information
and to establish that the Syndicate's auditor is aware of that information.
We confirm that to the best of our knowledge the syndicate accounts, including the iXBRL tagging applied to these
accounts, comply with the requirements of the Lloyd's Syndicate Accounts Instructions version 3.1 as modified by
the Frequently Asked Questions version 1.1 issued by Lloyd's.
On behalf of the Board
D D Upadhyaya
Director
17 February 2026
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Statement of managing agent's responsibilities
Syndicate 1458 Annual Report and Accounts 2025
Report on the audit of the syndicate annual accounts
Opinion
In our opinion, 1458’s syndicate annual accounts:
• Give a true and fair view of the state of the syndicate’s affairs as at 31 December 2025 and of its profit and
cash flows for the year then ended;
• 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
• 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 Syndicate Annual report and Accounts (the
“Annual Report”), which comprise: the Statement of financial position as at 31 December 2025; the Income
statement Technical account - General business, the Income statement Non-technical account - General business,
the Statement of cash flows, and the Statement of changes in member's 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 16, 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.
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Independent auditor's report to the member of Syndicate 1458
Syndicate 1458 Annual Report and Accounts 2025
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.
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 Managing agent’s report (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
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Syndicate 1458 Annual Report and Accounts 2025
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 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 manipulation of external financial reporting information through the use of inappropriate manual
journals, adjustments or one-off transactions, or through bias in the setting of estimates. Audit procedures
performed by the engagement team included:
• Discussion with management and internal audit, including considerations of known or suspected instances
of non-compliance with laws and regulations and fraud.
• Identifying and testing journal entries based on selected fraud risk criteria.
• Assessing significant estimates for evidence of management bias, or override by management of the
estimates made by internal or external experts (the key areas being claim reserving and estimated
premium income).
• Reviewing relevant meeting minutes of the governance bodies in the organisation.
• Designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing.
• Obtaining an understanding of the incentive arrangements and metrics used to monitor the business
performance, in order to identify the incentives and likelihood for manipulation of the results.
• Obtaining an understanding of the business rationale of significant transactions that we become aware of
that are outside the normal course of business, or which otherwise appear unusual.
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.
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Independent auditor's report to the member of Syndicate 1458
Syndicate 1458 Annual Report and Accounts 2025
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:
• we have not obtained all the information and explanations we require for our audit; or
• adequate accounting records have not been kept by the Managing Agent in respect of the syndicate; or
• certain disclosures of Managing Agent remuneration specified by law are not made; or
• 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
17 February 2026
11
Independent auditor's report to the member of Syndicate 1458
Syndicate 1458 Annual Report and Accounts 2025
| 2025 | 2024 | ||
| Notes | $000 | $000 | |
| Gross premiums written | 2 | | |
| Outward reinsurance premiums | ( | ( | |
| Net premiums written | | | |
Change in provision for unearned premiums | |||
| - Gross amount | | ( | |
| - Reinsurers’ share | | | |
Change in the net provision for unearned premiums | 3 | | ( |
| Earned premiums, net of reinsurance | | | |
Allocated investment return transferred from the non-technical account | | | |
Claims paid | |||
| - Gross amount | 4 | ( | ( |
| - Reinsurers’ share | 4 | | |
| Net claims paid | ( | ( | |
Change in claims outstanding | |||
| - Gross amount | | ( | |
| - Reinsurers’ share | ( | | |
| Change in the net provision for claims | ( | ( | |
| Claims incurred, net of reinsurance | 4 | ( | ( |
| Net operating expenses | 5 | ( | ( |
| Balance on technical account - general business | | |
12
Income statement
Technical account - General business
For the year ended 31 December 2025
Syndicate 1458 Annual Report and Accounts 2025
| 2025 | 2024 | ||
| Notes | $000 | $000 | |
Balance on technical account for general business | | | |
| Investment income | 6 | | |
| Realised gains/(losses) on investments | 6 | | ( |
| Unrealised gains on investments | 6 | | |
| Investment management charges | 6 | ( | ( |
| Total investment return | 6 | | |
Allocated investment return transferred to general business technical account | ( | ( | |
| Exchange losses | ( | ( | |
| Profit for the financial year | | |
There is no other comprehensive income or expense not already reported in the Income Statement, thus no
Statement of Comprehensive Income has been prepared.
13
Income statement
Non-technical account - General business
For the year ended 31 December 2025
Syndicate 1458 Annual Report and Accounts 2025
| 2025 | 2024 | |
| $000 | $000 | |
| Member's balances brought forward at 1 January | | |
| Profit for the financial year | | |
| Payments of profit to member’s personal reserve funds | ( | ( |
| Cash calls on open underwriting years | | |
| Member's balances carried forward at 31 December | | |
14
Statement of changes in member's balances
For the year ended 31 December 2025
Syndicate 1458 Annual Report and Accounts 2025
| 2025 | 2024 Restated | ||
| Notes | $000 | $000 | |
ASSETS | |||
Investments | |||
| Financial investments | 7 | | |
| Deposits with ceding undertakings | | | |
| | | ||
Reinsurers' share of technical provisions | |||
| Provision for unearned premiums | 3 | | |
| Claims outstanding | 4 | | |
| | | ||
Debtors | |||
Debtors arising out of direct insurance operations | 8 | | |
| Debtors arising out of reinsurance operations | 9 | | |
| Other debtors | | | |
| | | ||
Other assets | |||
| Cash at bank and in hand | 10 | | |
| | | ||
Prepayments and accrued income | |||
| Accrued interest | | | |
| Deferred acquisition costs | 11 | | |
| | | ||
| Total assets | | |
15
Statement of financial position
As at 31 December 2025
Syndicate 1458 Annual Report and Accounts 2025
| 2025 | 2024 Restated | ||
| Notes | $000 | $000 | |
MEMBER'S BALANCES AND LIABILITIES | |||
Member's balances | |||
| Profit and loss account | | | |
| Total member's balances | | | |
LIABILITIES | |||
Technical provisions | |||
| Provision for unearned premiums | 3 | | |
| Claims outstanding | 4 | | |
| | | ||
| Deposits received from reinsurers | | | |
Creditors | |||
Creditors arising out of direct insurance operations | 12 | | |
| Creditors arising out of reinsurance operations | 13 | | |
| Other creditors | 14 | | |
| | | ||
| Accruals and deferred income | | | |
| Total liabilities | | | |
| Total member's balances and liabilities | | |
The financial statements on pages 12 to 56 were approved by the board of directors on 17 February 2026 and were
signed on its behalf by:
D D Upadhyaya
Director
17 February 2026
16
Statement of financial position (cont'd)
As at 31 December 2025
Syndicate 1458 Annual Report and Accounts 2025
| 2025 | 2024 | ||
Notes | $000 | $000 | |
| Profit on ordinary activities | | | |
Movement in general insurance unearned premiums and outstanding claims | ( | | |
Movement in reinsurers' share of unearned premiums and outstanding claims | | ( | |
| Decrease/(increase) in debtors | | ( | |
| (Decrease)/increase in creditors | ( | | |
| Increase in deposits received from reinsurers | | | |
| Investment return | ( | ( | |
| Movements in other assets/liabilities | | ( | |
| Currency exchange differences | ( | | |
| Net cash inflow from operating activities | | | |
Investing activities | |||
| Investment income received | | | |
| Purchase of debt and equity instruments | ( | ( | |
| Sales of debt and equity instruments | | | |
| Other | ( | | |
| Net cash outflow from investing activities | ( | ( | |
Financing activities | |||
Payment of profit to member's personal reserve funds | ( | ( | |
| Open year cash calls made | | | |
| Net cash outflow from financing activities | ( | ( | |
Net increase/(decrease) in cash and cash equivalents | | ( | |
| Foreign exchange on cash and cash equivalents | | ( | |
| Cash and cash equivalents at 1 January | | | |
| Cash and cash equivalents at 31 December | 10 | | |
17
Statement of cash flows
For the year ended 31 December 2025
Syndicate 1458 Annual Report and Accounts 2025
1. Accounting policies
1.1 Statement of compliance
The financial statements have been prepared in compliance with The Insurance Accounts Directive (Lloyd’s
Syndicate and Aggregate Accounts) Regulations 2008 and FRS 102 and FRS 103, being applicable UK GAAP
accounting standards and the Companies Act 2006. The financial statements have been prepared in accordance
with the provisions of Schedule 3 of the Large and Medium-sized Companies and Groups (Accounts and Reports)
Regulations relating to insurance companies, and the Lloyds Syndicate Accounts Instructions Version 3.1 as
modified by the Frequently Asked Questions Version 1.1 issued by Lloyd's.
1.2 Basis of preparation
The financial statements for the year ended 31 December 2025 were approved for issue by the board of directors
on 17 February 2026.
As permitted by FRS 103 the Syndicate continues to apply the existing accounting policies that were applied prior to
this standard for its insurance contracts.
The accounting policies have been applied consistently, other than where new policies have been adopted.
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 presented in US Dollars
presentational currency of the Syndicate. All amounts have been rounded to the nearest thousand, unless otherwise
indicated.
The directors of the managing agent have assessed the Syndicate's ability to continue as a going concern and are
satisfied that it has adequate resources to meet its obligations as they fall due. Underpinning this is the support
provided by the Lloyd's solvency process and its chain of security for any members who are unable to meet their
underwriting liabilities. Funds at Lloyd's are explained further in note 22. As a result, the annual accounts have been
prepared on a going concern basis, and no material uncertainties have been identified that may cast significant
doubt over the Syndicate's ability to continue as a going concern.
1.3 Prior period restatements
Change in classification of direct and reinsurance operations
The 2024 comparative balances relating to Debtors/Creditors arising out of direct insurance operations and Debtors/
Creditors arising out of reinsurance operations have been restated to reclassify certain balances that were
previously presented as reinsurance operations to direct insurance operations. Reclassification is appropriate to
better align the underlying nature of these balances with the definition and substance of direct insurance versus
reinsurance activities.
This restatement has no impact on reported profit, net assets, or equity for the prior period. The effect of the
reclassification on each affected financial statement line item is as follows:
18
Notes to the financial statements
For the year ended 31 December 2025
Syndicate 1458 Annual Report and Accounts 2025
Restatement of Statement of financial position
Impacted line
2024 as previously
reported
2024 restated Change
$000 $000 $000
Debtors
Debtors arising out of direct insurance
operations 13,456 420,280 406,824
Debtors arising out of reinsurance
operations 743,379 336,555 (406,824)
Creditors
Creditors arising out of direct insurance
operations 2,261 62,560 60,299
Creditors arising out of reinsurance
operations 884,203 823,904 (60,299)
This reclassification has also been updated in Notes 8, 9, 12, 13 and 24(d) (1).
Changes to credit risk methodology
To enhance the consistency and accuracy of credit risk disclosures, we have updated the methodology within the
Credit Risk Note 24(d) as it pertains to the ageing of debtors and credit rating of debtors disclosed. We have also
amended our credit rating table to be limited to assets which are neither past due nor impaired. These changes
have been applied retrospectively to the comparative 2024 information. The comparative tables in Note  24 reflect
the updated classifications, and additional analysis is provided within each note to illustrate the impact from these
methodology changes.
These changes affect disclosure presentation only and have no impact to the overall debtor balances or profit for
the period.
1.4 Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions
that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for
revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ
from those estimates. The Syndicate’s key sources of estimation uncertainty, discussed below, are claims provisions
and related recoveries and ultimate premiums.
1.5 Significant accounting policies
Financial investments
As permitted by FRS 102, the Syndicate has elected to apply the recognition and measurement provisions of IAS 39
(as adopted under International Accounting Standards in conformity with the requirements of the Companies Act
2006) - Financial Instruments to account for all of its financial instruments.
The Syndicate classifies its financial investments as financial assets at fair value through profit or loss. The
Syndicate determines the classification of its financial assets at initial recognition. Financial assets are initially
recognised at fair value.
19
Notes to the financial statements
For the year ended 31 December 2025
Syndicate 1458 Annual Report and Accounts 2025
The classification depends on the purpose for which the investments were acquired or originated. In general,
financial assets are classified as fair value through profit or loss as the Syndicate’s documented investment strategy
is to manage financial investments acquired on a fair value basis.
All regular way purchases and sales of financial assets are recognised on the trade date, i.e., the date the
Syndicate commits to purchase or sell the asset. Regular way purchases or sales of financial assets require delivery
of assets within the time frame generally established by regulation or convention in the market place.
Financial assets at fair value through profit or loss has a sub category namely those designated at fair value through
profit or loss at initial recognition. For these investments, the following criteria must be met:
• The designation eliminates or significantly reduces the inconsistent treatment that would otherwise arise from
measuring the assets or liabilities or recognising gains or losses on a different basis; or
• The assets and liabilities are part of a group of financial assets, financial liabilities or both which are managed
and their performance evaluated on a fair value basis, in accordance with a documented risk management or
investment strategy.
These investments are initially recorded at fair value. Subsequent to initial recognition, these investments are re-
measured at fair value at each reporting date. Fair value adjustments and realised gains and losses are recognised
in the income statement.
Deposits with ceding undertakings
Deposits with ceded undertakings are primarily premium deposits retained and loss deposits provided on assumed
business. Deposits with ceded undertakings are measured at cost less allowance for impairment as appropriate.
Cash and cash equivalents
Cash and cash equivalents in the statement of financial position comprise cash at banks and in hand and short term
deposits with an original maturity date of three months or less.
Fair value of financial assets
The Syndicate uses the following hierarchy for determining the fair value of financial instruments by valuation
technique:
• Level 1: The unadjusted quoted price in an active market for identical assets or liabilities that the entity can
access at the measurement date.
• Level 2: Inputs other than quoted prices included within Level 1 that are observable (i.e. developed using
market data) for the asset or liability, either directly or indirectly.
• Level 3: Inputs are unobservable (i.e. for which market data is unavailable) for the asset or liability.
See note 7 for details of financial instruments classified by fair value hierarchy.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the statement of financial
position if, and only if:
• There is currently enforceable legal right to offset the recognised amounts; and
• There is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.
20
Notes to the financial statements
For the year ended 31 December 2025
Syndicate 1458 Annual Report and Accounts 2025
Financial liabilities
The Syndicate's financial liabilities include trade and other payables and insurance payables. All financial liabilities
are recognised initially at transaction price, and where applicable, subsequently measured at amortised cost using
the effective interest method.
Investment return
Investment return comprises all investment income, realised investment gains and losses and movements in
unrealised gains and losses, net of investment expenses, charges and interest.
Unrealised and realised gains and losses on financial investments are recognised based on the appropriate
classification of financial investments and are covered in detail under the accounting policy for financial investments.
An allocation of actual investment return on investments supporting the general insurance technical provision and
associated member's balances is made from the non-technical account to the technical account. Investment return
has been wholly allocated to the technical account as all investments relate to the technical account.
Insurance contracts - Product classification
Insurance contracts are those contracts when the Syndicate (the insurer/reinsurer) has accepted significant
insurance risk from another party (the policyholder/reinsured) by agreeing to compensate the policyholder if a
specified uncertain future event (the re/insured event) adversely affects the policyholders. As a general guideline,
the Syndicate determines whether it has significant insurance risk, by comparing benefits paid with benefits payable
if the insured event did not occur. Insurance contracts can also transfer financial risk.
Once a contract has been classified as an insurance contract, it remains an insurance contract for the remainder of
its lifetime, even if the insurance risk reduces significantly during this period, unless all rights and obligations are
extinguished or expire.
Gross Premiums
Gross premiums written relate to business incepted during the year, together with any differences between booked
premiums for prior years and those previously accrued, and include estimates of premiums due but not yet
receivable or notified to the company.
Premiums for excess of loss business are fully recognised at inception. Premiums for proportional and delegated
underwriting business are recognised based on the application of a writing pattern to initial estimates of ultimate
premiums. In relation to estimation of ultimate premiums, the premium written is initially based on the estimated
premium income ('EPI') of each contract. EPI estimates are regularly monitored and reviewed for appropriateness
by underwriters and judgements are made to the estimates where it is deemed appropriate. Over time, premiums
are adjusted to match the actual reported risk premium. Subsequent differences arising on estimates of ultimate
premiums are recorded in the period in which they are determined. Premiums are shown gross of commissions,
brokerage and taxes / duties levied on them.
Due to the nature of the Lloyd's business and settlement patterns for 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 a receivable on
the balance sheet. The amount of estimated future premium that remains in insurance receivables relating to years
of account that are more than three years developed is not material.
Reinstatement premiums are estimated in accordance with the contract terms and recorded based upon paid losses
and case reserves.
21
Notes to the financial statements
For the year ended 31 December 2025
Syndicate 1458 Annual Report and Accounts 2025
Reinsurance premiums
Outwards reinsurance premiums comprise ceded premiums on contracts in force during the financial year.
The provision for ceded unearned premiums represents the portion of ceded premiums written that relate to
unexpired terms of policies in force at the balance sheet date. For quota-share contracts, outwards reinsurance
premiums are accounted for and earned in the same accounting period as the premiums for the related direct or
inwards business being reinsured.
Claims provisions and related recoveries
Gross claims incurred comprise the estimated cost of all claims occurring during the year, whether reported or not,
including claims handling costs and adjustments to claims outstanding from previous years.
The provision for claims and claim expenses includes estimates for unpaid claims and claim expenses on reported
losses as well as an estimate of losses incurred but not reported (“IBNR”). The provision is based on individual
claims, case reserves and other reserve estimates reported by insureds and ceding companies as well as
management estimates of ultimate losses. Inherent in the estimates of ultimate losses are expected trends in claims
severity and frequency and other factors which could significantly vary as claims are settled.
The directors of RSML consider that the provision for gross claims and related reinsurance recoveries are fairly
stated on the basis of the information currently available to them. However, ultimate losses may vary materially from
the amounts provided in the financial statements. Ultimate loss estimates are reviewed regularly and, as experience
develops and new information becomes known, the reserves are adjusted as necessary. Such adjustments, if any,
are reflected in the financial statements in the period in which they become known and are accounted for as
changes in estimates.
When reserving for attritional losses on our property, casualty and specialty reinsurance and insurance lines of
business the Syndicate considers several actuarial techniques such as the expected loss ratio method and the
Bornhuetter-Ferguson actuarial method. For classes of business and underwriting years where the Syndicate has
limited historical claims experience, attritional losses are generally initially determined based on the expected loss
ratio method. Unless the Syndicate has credible claims experience or unfavorable development, it generally selects
an ultimate loss based on its initial view of the loss. The selected ultimate losses are determined by multiplying the
initial expected loss ratio by the earned premium.
The determination of when reported losses are sufficient and credible to warrant selection of an ultimate loss ratio
different from the initial expected loss ratios also require judgement. The Syndicate generally makes adjustment for
reported loss experience indicating unfavourable variances from initial expected loss ratios sooner than reported
loss experience indicating favourable variances. This is because the reporting of losses in excess of expectations
tend to have greater credibility than an absence or lower than expected level of reported losses. Over time, as a
greater number of claims are reported and the credibility of reported losses improves, actuarial estimates of IBNR
are typically based on the Bornhuetter-Ferguson actuarial method.
The Bornhuetter-Ferguson actuarial method allows for greater weight to be applied to expected results in periods
where little or no actual experience is available, and, hence, is less susceptible to the potential pitfall of being
excessively swayed by one year or one quarter of actual paid and/or reported loss data. This method uses initial
expected loss ratio expectations to the extent that losses are not paid or reported, and it assumes that past
experience is not fully representative of the future. As the Syndicate's reserves for claims and claim expenses
develop, and actual claims experience becomes available, this method places less weight on expected experience
and places more weight on actual experience. This experience, which represents the difference between expected
reported claims and actual reported claims is reflected as a change in estimate. The Syndicate re-evaluates its
actuarial reserving techniques on a periodic basis.
22
Notes to the financial statements
For the year ended 31 December 2025
Syndicate 1458 Annual Report and Accounts 2025
The utilisation of the Bornhuetter-Ferguson actuarial method requires the Syndicate to estimate an expected
ultimate claims and claim expense ratio and select an expected loss reporting pattern. The Syndicate selects its
estimates of the expected ultimate claims and claim expense ratios and expected loss reporting patterns by
reviewing industry results for similar business and adjusting for the terms of the coverages it offers. The estimated
expected claims and claim expense ratio at a given point in time may differ to what would be expected based on the
selected loss reporting pattern due to reported losses. The estimate of IBNR is the product of the premium we have
earned, the initial expected ultimate claims and claim expense ratio and the percentage of estimated unreported
losses.
Reserving for most of the Syndicate's property catastrophe insurance and reinsurance business does not involve
the use of traditional actuarial techniques. Rather, claims and claim expense reserves are estimated by
management after a catastrophe occurs by completing an in-depth analysis of the individual contracts which may
potentially be impacted by the catastrophe event.
Amounts recoverable from reinsurers are estimated in a manner consistent with the claim liability associated with
the reinsured policies. These amounts recoverable from reinsurers are recorded net of a bad debt provision for
estimated uncollectable recoveries, if applicable.
The Syndicate establishes a provision for unallocated loss adjustment expenses (“ULAE”) when the related reserve
for claims and claim expenses is established. ULAE are expenses that cannot be associated with a specific claim
but are related to claims paid or in the process of settlement, such as internal costs of the claims function, and are
included in the reserve for claims and claim expenses. The determination of the ULAE provision is subject to
judgment.
Provision 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 and earned over the
period of the policy on a time apportionment basis having regard where appropriate, to the incidence of the risk. The
proportion attributable to subsequent periods is deferred as a provision for unearned premiums.
Unearned reinsurance premiums are deferred over the term of the underlying direct insurance policies for risks-
attaching contracts and over the term of the reinsurance contract for losses-occurring contracts.
Reinstatement premiums are earned when written.
Unexpired risks provision
A provision for unexpired risks is made where claims and related expenses arising after the end of the financial year
in respect of contracts incepted before that date, are expected to exceed the unearned premiums and premium
receivable under these contracts, after the deduction of any acquisition costs deferred. The provision for unexpired
risks is calculated by reference to years of account. As at 31 December 2025 and 31 December 2024, the Syndicate
did not have an unexpired risks provision.
Deferred acquisition costs
Acquisition costs comprise costs arising from the conclusion of insurance contracts.
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 and reinsurers' share of deferred acquisition costs are amortised over the period in which
the related premiums are earned.
23
Notes to the financial statements
For the year ended 31 December 2025
Syndicate 1458 Annual Report and Accounts 2025
Reinsurance assets
The Syndicate cedes insurance risk in the normal course of business for all of its businesses. Reinsurance assets
represent balances due from reinsurance companies. Amounts recoverable from reinsurers are estimated in a
manner consistent with the outstanding claims provision or settled claims associated with the reinsurer’s policies
and are in accordance with the related reinsurance contract.
Reinsurance assets are reviewed for impairment at each reporting date, or more frequently, when an indication of
impairment arises during the reporting year. Impairment occurs when there is objective evidence as a result of an
event that occurred after initial recognition of the reinsurance asset that the Syndicate may not receive all
outstanding amounts due under the terms of the contract and the event has a reliably measurable impact on the
amounts that the Syndicate will receive from the reinsurer. The impairment loss is recorded in the income
statement.
Ceded reinsurance arrangements do not relieve the Syndicate from its obligations to policyholders.
Insurance receivables
Insurance receivables are recognised and measured on initial recognition of gross premiums written less acquisition
costs and losses payable.
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. There
were no such impairments recognised in 2025 or 2024.
Insurance payables
Insurance payables are recognised and measured on initial recognition of outwards reinsurance premiums written
net of reinsurance commissions and profit participation and losses receivable.
Foreign currencies
Transactions denominated in currencies other than the functional currency are initially recorded in the functional
currency at the relevant transactional rates of exchange in effect on the date in which the related transaction
occurred. 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 rate of exchange at the reporting date. Non-monetary assets and liabilities in a
foreign currency are translated using the exchange rate as at the date of the initial transaction and are not
subsequently retranslated. Exchange differences arising from the retranslation to functional currency are recorded
in the non-technical account.
Taxation
Under schedule 19 of the Finance Act 1993 managing agents are not required to deduct basic rate income tax from
trading income. In addition, all UK basic-rate income tax deducted from Syndicate investment income is recoverable
by managing agents and consequently the distribution made to members or their members’ agents is gross of tax.
Capital appreciation falls within trading income and is also distributed gross of tax.
No provision has been made for any United States Federal Income Tax payable on underwriting results or
investment earnings. Any payments on account made by the Syndicate are included in the statement of financial
position under the heading ‘other debtors’.
No provision has been made for any overseas tax payable by the member on underwriting results.
24
Notes to the financial statements
For the year ended 31 December 2025
Syndicate 1458 Annual Report and Accounts 2025
Pension costs
RenaissanceRe Services (UK) Limited ("RSUKL") is a UK service company, operating on behalf of the Syndicate via
a service level agreement. RSUKL operates a defined contribution pension scheme. Pension contributions relating
to Syndicate staff are charged to the Syndicate and included within net operating expenses.
Collateral
The Syndicate receives and pledges collateral in the form of cash or non-cash assets in respect of reinsurance
arrangements in order to reduce the credit risk of these transactions. The amount and type of collateral required
where the Syndicate receives collateral depends on an assessment of the credit risk of the counterparty.
All collateral received and held in trust by third parties is not recognised in the statement of consolidated financial
position, unless the counterparty defaults on its obligations under the relevant agreement.
All collateral pledged by the Syndicate is retained in the statement of financial position, unless the Syndicate
defaults on its obligations under the relevant agreement.
Retroactive reinsurance contracts
FRS 103 does not provide guidance on how to account for retroactive reinsurance contracts and an accounting
policy choice therefore exists between balance sheet and reinsurance accounting, subject to the stated policy being
consistently applied. The Syndicate’s policy in respect of retroactive reinsurance is that: i) gains and losses arising
are recognised in the income statement immediately at the date of purchase; and ii) premiums ceded and claims
reimbursed are presented on a gross basis. This policy has been applied in respect of the Adverse Development
Cover protecting the Casualty classes on the Syndicate for the 2017 and prior underwriting years which came into
effect on 1 January 2020.
25
Notes to the financial statements
For the year ended 31 December 2025
Syndicate 1458 Annual Report and Accounts 2025
2. Segmental analysis
An analysis of the underwriting result before investment return is set out below.
The reinsurance balance is the aggregate total of all those items included in the technical account which relate to
reinsurance outwards transactions including items recorded as reinsurance commissions and profit participation.
The reinsurance balance includes reinsurance commission receivable.
Gross premiums written | Gross premiums earned | Gross claims incurred | Gross operating expenses | Reinsurance balance | Underwriting result | |
| $000 | $000 | $000 | $000 | $000 | $000 | |
2025 | ||||||
Direct insurance | ||||||
Marine, aviation, and transport | | | ( | ( | | |
Fire and other damage of property | | | ( | ( | ( | |
| Third party liability | | | ( | ( | ( | ( |
| Credit and suretyship | | | ( | ( | ( | |
| Total direct insurance | | | ( | ( | ( | |
| Reinsurance acceptances | | | ( | ( | ( | |
| Total | | | ( | ( | ( | |
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:
Gross premiums written | Gross premiums earned | Gross claims incurred | Gross operating expenses | Reinsurance balance | Underwriting result | |
| $000 | $000 | $000 | $000 | $000 | $000 | |
2025 | ||||||
Additional analysis | ||||||
Fire and damage to property of which is: | ||||||
| Specialities | | | ( | ( | ( | ( |
| Energy | | | ( | ( | | |
26
Notes to the financial statements
For the year ended 31 December 2025
Syndicate 1458 Annual Report and Accounts 2025
Gross premiums written | Gross premiums earned | Gross claims incurred | Gross operating expenses | Reinsurance balance | Underwriting result | |
| $000 | $000 | $000 | $000 | $000 | $000 | |
2024 | ||||||
Direct insurance | ||||||
Marine, aviation, and transport | | | ( | ( | | ( |
Fire and other damage of property | | | ( | ( | ( | |
| Third party liability | | | ( | ( | ( | |
| Credit and suretyship | | | ( | ( | ( | ( |
| Total direct insurance | | | ( | ( | ( | |
| Reinsurance acceptances | | | ( | ( | ( | |
| Total | | | ( | ( | ( | |
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:
Gross premiums written | Gross premiums earned | Gross claims incurred | Gross operating expenses | Reinsurance balance | Underwriting result | |
| $000 | $000 | $000 | $000 | $000 | $000 | |
2024 | ||||||
Additional analysis | ||||||
Fire and damage to property of which is: | ||||||
| Specialities | | | | ( | ( | |
| Energy | | | ( | ( | ( | |
All premiums were concluded in the UK.
The geographical analysis of gross premiums written for direct insurance by underwriting location (or by situs of the
risk) is as follows:
| 2025 | 2024 | |
| $000 | $000 | |
| UK | 7,810 | 18,561 |
| EU countries | 415 | 1,939 |
| US | 818,476 | 1,057,403 |
| Other | 12,881 | 35,905 |
| | |
27
Notes to the financial statements
For the year ended 31 December 2025
Syndicate 1458 Annual Report and Accounts 2025
3. Provision for unearned premiums
| Gross | Reinsurers' share | Net | |
| $000 | $000 | $000 | |
| At 1 January 2025 | | ( | |
| Premiums written in the year | | ( | |
| Premiums earned in the year | ( | | ( |
| Foreign exchange | | ( | |
| At 31 December 2025 | | ( | |
| Gross | Reinsurers' share | Net | |
| $000 | $000 | $000 | |
| At 1 January 2024 | | ( | |
| Premiums written in the year | | ( | |
| Premiums earned in the year | ( | | ( |
| Foreign exchange | ( | ( | ( |
| At | | ( | |
4. Claims outstanding
The table below shows changes in the insurance contract liabilities and assets from the beginning of the period to
the end of the period.
| Gross | Reinsurers' share | Net | |
| $000 | $000 | $000 | |
| At 1 January 2025 | | ( | |
| Expected cost of current year claims | | ( | |
| Change in estimates of prior year provisions | ( | | ( |
| Claims paid during the year | ( | | ( |
| Foreign exchange | | | |
| At 31 December 2025 | | ( | |
| Gross | Reinsurers' share | Net | |
| $000 | $000 | $000 | |
| At 1 January 2024 | | ( | |
| Expected cost of current year claims | | ( | |
| Change in estimates of prior year provisions | ( | | ( |
| Claims paid during the year | ( | | ( |
| Foreign exchange | ( | | ( |
| At 31 December 2024 | | ( | |
Refer to note 24 for the sensitivity analysis performed over the value of insurance liabilities.
28
Notes to the financial statements
For the year ended 31 December 2025
Syndicate 1458 Annual Report and Accounts 2025
5. Net operating expenses
| 2025 | 2024 | |
| $000 | $000 | |
| Acquisition costs | | |
| Change in deferred acquisition costs | ( | ( |
| Administrative expenses | | |
| Member's standard personal expenses | | |
| Reinsurance commissions and profit participation | ( | ( |
| | |
Reinsurers' share of change in deferred acquisition costs are included in reinsurance commissions and profit
participation.
Member's standard personal expenses include Lloyd's subscriptions, Central Fund contributions, Managing Agent
fees and profit commission.
Total commissions for direct insurance business for the year amounted to:
| 2025 | 2024 | |
| $000 | $000 | |
| Total commission for direct insurance business | | |
29
Notes to the financial statements
For the year ended 31 December 2025
Syndicate 1458 Annual Report and Accounts 2025
6. 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 | | |
| Interest on cash at bank | | |
Other income from investments | ||
From financial assets designated at fair value through profit or loss | ||
| Gains on the realisation of investments | | |
| Losses on the realisation of investments | ( | ( |
| Unrealised gains on investments | | |
| Unrealised losses on the investments | ( | ( |
| Investment management expenses | ( | ( |
| Total investment return | | |
| Transferred to the technical account from the non-technical account | | |
Average amount of funds available for investment:
2025 2024
$000 $000
Sterling 46,030 46,673
US dollars 1,168,368 969,585
Canadian dollars 93,517 83,914
Euro 20,318 26,545
Combined in US dollars 1,328,233 1,126,717
Gross calendar year investment yield:
Sterling 3.7 % 3.5 %
US dollars 4.2 % 4.6 %
Canadian dollars 3.3 % 5.1 %
Euro — % 0.1 %
Combined 4.0 % 4.5 %
"Average amount of funds" is the average of bank balances, overseas deposits and investments held at the end of
each quarter during the calendar year. For this purpose, investments are revalued at quarter-end market prices,
which include accrued income where appropriate. Additionally, gross calendar year investment yield is calculated
gross of the interest paid in relation to the funds withheld balances under the Multi-line quota share arrangement
with Renaissance Reinsurance Ltd (2024: RenaissanceRe Europe AG).
30
Notes to the financial statements
For the year ended 31 December 2025
Syndicate 1458 Annual Report and Accounts 2025
7. Financial Investments
| Carrying value | Cost | |||
| 2025 | 2024 | 2025 | 2024 | |
| $000 | $000 | $000 | $000 | |
Shares and other variable yield securities and units in unit trusts | | |||
Debt securities and other fixed income securities | | | | |
| Other Investments | | | | |
| Syndicate loan to central fund | | | | |
| Total financial investments | | | | |
Included in the carrying values above are listed investments as follows:
| 2025 | 2024 | |
| $000 | $000 | |
| Listed investments | | |
Included within debt securities and other fixed income securities is collateral pledged on assumed business of
$8.5m (2024 - $11.3m).
Other investments of $52.7m (2024 - $48.0m) comprise overseas deposits which are lodged as a condition of
conducting underwriting business in certain countries.
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 or loss | | |
| Total financial investments | | |
The table below analyses financial instruments held at fair value in the Syndicate’s balance sheet at the reporting
date by its level in the fair value hierarchy.
| 2025 | Level 1 | Level 2 | Level 3 | Assets held at amortised cost | Total |
| $000 | $000 | $000 | $000 | $000 | |
Shares and other variable yield securities and units in unit trusts | | | | | |
Debt securities and other fixed income securities | | | | | |
| Other Investments | | | | | |
| Syndicate loans to central fund | | | | | |
| Total | | | | | |
31
Notes to the financial statements
For the year ended 31 December 2025
Syndicate 1458 Annual Report and Accounts 2025
| 2024 | Level 1 | Level 2 | Level 3 | Assets held at amortised cost | Total |
| $000 | $000 | $000 | $000 | $000 | |
Shares and other variable yield securities and units in unit trusts | | | | | |
Debt securities and other fixed income securities | | | | | |
| Other Investments | | | | | |
| Syndicate loans to central fund | | | | | |
| Total | | | | | |
Level 3 investments relate to the syndicate loan provided to the Lloyd’s Central Fund in connection with the 2021
underwriting year. These instruments were not tradeable and were valued using discounted cash flow techniques
incorporating significant unobservable inputs.
As at 31 December 2024, the fair value of these loans was $10.3m, reflecting a cumulative negative fair value
adjustment of $0.4m. As at 31 December 2025, the syndicate loans were fully repaid.
32
Notes to the financial statements
For the year ended 31 December 2025
Syndicate 1458 Annual Report and Accounts 2025
8. Debtors arising out of direct insurance operations
| 2025 | 2024 | |
Restated | ||
| $000 | $000 | |
| Due within one year | | |
| | |
As outlined in Note 1.3, the 2024 comparative balance has been restated to reflect an improved classification
between direct insurance operations and reinsurance operations. The impact of this reclassification on the amounts
disclosed in this note is presented below. Refer to Note 1.3 for additional detail.
Restatement of Debtors arising out of direct insurance operations
Impacted line
2024 as previously
reported
2024 restated Change
$000 $000 $000
Due within one year 13,456 420,280 406,824
9. Debtors arising out of reinsurance operations
| 2025 | 2024 | |
Restated | ||
| $000 | $000 | |
| Due within one year | | |
| | |
As outlined in Note 1.3, the 2024 comparative balance has been restated to reflect an improved classification
between direct insurance operations and reinsurance operations. The impact of this reclassification on the amounts
disclosed in this note is presented below. Refer to Note 1.3 for additional detail.
Restatement of Debtors arising out of reinsurance operations
Impacted line
2024 as previously
reported
2024 restated Change
$000 $000 $000
Due within one year 743,379 336,555 (406,824)
33
Notes to the financial statements
For the year ended 31 December 2025
Syndicate 1458 Annual Report and Accounts 2025
10. Cash and cash equivalents
| 2025 | 2024 | |
| $000 | $000 | |
| Cash at bank and in hand | | |
Short term debt instruments presented within other financial investments | | |
| Total cash and cash equivalents | | |
Short term deposits with financial institutions are included within financial investments as shares and other variable
yield securities and units in unit trusts. Overseas deposits are included within Short term debt instruments presented
within other financial investments. These are classified as cash and cash equivalents as they are readily convertible
or have a maturity of less than 3 months.
Only deposits with credit institutions with maturities of three months or less that are used by the Syndicate in the
management of its short-term commitments are included in cash and cash equivalents. Included within cash and
cash equivalents are the following amounts which are not available for use by the Syndicate as they are lodged as a
condition of conducting underwriting business in certain countries and therefore access to these funds is restricted.
| 2025 | 2024 | |
| $000 | $000 | |
Short term debt instruments presented within other financial investments | | |
Total cash and cash equivalents not available for use by the syndicate | | |
11. Deferred acquisition costs
| 2025 | 2024 | |||||
| Gross | Reinsurance | Net | Gross | Reinsurance | Net | |
| $000 | $000 | $000 | $000 | $000 | $000 | |
| Balance at 1 January | | ( | | | ( | |
Incurred deferred acquisition costs | | ( | | | ( | |
Amortised deferred acquisition costs | ( | | ( | ( | | ( |
| Foreign exchange | | ( | ( | | ( | |
| Balance at 31 December | | ( | | | ( | |
34
Notes to the financial statements
For the year ended 31 December 2025
Syndicate 1458 Annual Report and Accounts 2025
12. Creditors arising out of direct insurance operations
| 2025 | 2024 | |
Restated | ||
| $000 | $000 | |
| Due within one year | | |
| | |
As outlined in Note 1.3, the 2024 comparative balance has been restated to reflect an improved classification
between direct insurance operations and reinsurance operations. The impact of this reclassification on the amounts
disclosed in this note is presented below. Refer to Note 1.3 for additional detail.
Restatement of Creditors arising out of direct insurance operations
Impacted line
2024 as previously
reported
2024 restated Change
$000 $000 $000
Due within one year 2,261 62,560 60,299
13. Creditors arising out of reinsurance operations
| 2025 | 2024 | |
Restated | ||
| $000 | $000 | |
| Due within one year | | |
| Due after one year | | |
| | |
As outlined in Note 1.3, the 2024 comparative balance has been restated to reflect an improved classification
between direct insurance operations and reinsurance operations. The impact of this reclassification on the amounts
disclosed in this note is presented below. Refer to Note 1.3 for additional detail.
Restatement of Creditors arising out of reinsurance operations
Impacted line
2024 as previously
reported
2024 restated Change
$000 $000 $000
Due within one year 563,846 503,547 (60,299)
35
Notes to the financial statements
For the year ended 31 December 2025
Syndicate 1458 Annual Report and Accounts 2025
14. Other creditors
| 2025 | 2024 | |
| $000 | $000 | |
| Other related party balances (non-syndicates) | | |
| Other liabilities | | |
| | |
15. Analysis of net debt
The Syndicate does not have any debt as as at 31 December 2025 and 31 December 2024. Accordingly, the
analysis of net debt includes cash and cash equivalents only.
At 1 January 2025 | Cash flows | Fair value and exchange movements | At 31 December 2025 | |
| $000 | $000 | $000 | $000 | |
| Cash and cash equivalents | | | | |
| | | | |
16. Auditor's remuneration
| 2025 | 2024 | |
| $000 | $000 | |
| Audit of the Syndicate annual accounts | | |
| Other services pursuant to Regulations and Lloyd's Byelaws | | |
| 838 | 696 |
Auditor's remuneration is included as part of the administrative expenses in note 5 to the financial statements.
36
Notes to the financial statements
For the year ended 31 December 2025
Syndicate 1458 Annual Report and Accounts 2025
17. Emoluments of the directors of RSML and active underwriter role
8 directors (2024 - 8) of RSML received the following aggregate remuneration charged to the Syndicate and
included within net operating expenses:
| 2025 | 2024 | |
| $000 | $000 | |
| Aggregate remuneration in respect of qualifying services | | |
The following aggregate remuneration pertaining to the active underwriter role was charged to the Syndicate and is
included within net operating expenses:
| 2025 | 2024 | |
| $000 | $000 | |
| Emoluments | | |
18. Staff costs
The following amounts were recharged to the Syndicate in respect of salary costs:
| 2025 | 2024 | |
| $000 | $000 | |
| Wages and salaries | | |
| Other short/long term incentive costs | | |
| Social security costs | | |
| Other pension costs | | |
| | |
Staff cost is included as part of the administrative expenses in note 5 to the financial statements.
The average monthly number of employees of RenaissanceRe Services (UK) Limited that worked directly on the
Syndicate during the year were as follows:
| 2025 | 2024 | |
| Administration and finance | | |
| Underwriting | | |
| Claims | | |
| | |
19. Distribution and open years of account
A distribution of $150,578 k to the Syndicate's member will be proposed in relation to the closing year of account
2023 (2024: $32,137 k in relation to the closing year of account 2022).
37
Notes to the financial statements
For the year ended 31 December 2025
Syndicate 1458 Annual Report and Accounts 2025
20. Related parties
DaVinci Reinsurance Ltd.
DaVinci Reinsurance Ltd. ("DaVinci") is a managed joint venture and consolidated within the group financial
statements of RenaissanceRe Holdings Ltd, the ultimate parent company.
The Syndicate entered into an excess of loss agreement with DaVinci relating to the Property class of business. The
Syndicate recorded gross premiums written net of acquisition costs of $1.0m (2024 - $3.4m) during the year. The
intercompany debtor balance, within debtors arising out of reinsurance operations, was $nil (2024 - $0.4m) as at the
year end.
Fontana Reinsurance Ltd.
Fontana Reinsurance Ltd. ("Fontana") is a managed joint venture and consolidated within the group financial
statements of RenaissanceRe Holdings Ltd, the ultimate parent company.
The Syndicate entered into a quota share agreement with Fontana for Casualty and Specialty lines of business for
the 2022 to 2025 underwriting years. The Syndicate ceded premiums written of $69.1m (2024 - $84.6m) during the
year and has an intercompany creditor balance of $50.3m (2024 - $50.9m) within creditors arising out of
reinsurance operations at the year end.
Fontana Reinsurance U.S. Ltd.
Fontana Reinsurance U.S. Ltd. ("Fontana US") is a managed joint venture and consolidated within the group
financial statements of RenaissanceRe Holdings Ltd, the ultimate parent company.
The Syndicate entered into a quota share agreement with Fontana US for Casualty and Specialty lines of business
for the 2022 to 2025 underwriting years. The Syndicate ceded premiums written of $10.1m (2024 - $9.9m) during
the year and has an intercompany creditor balance of $5.3m (2024 - $4.3m) within creditors arising out of
reinsurance operations at the year end.
RenaissanceRe Corporate Capital (UK) Limited
RenaissanceRe Corporate Capital (UK) Limited (“RRCCL”) is a wholly owned subsidiary of Renaissance
Reinsurance Ltd and acts as the sole corporate member for the Syndicate.
The distributions and cash calls during the year between the Syndicate and RRCCL are reported in the statement of
changes in member's balance.
RenaissanceRe IP UK Limited
RenaissanceRe IP UK Limited ("RIPUKL") is a wholly owned subsidiary of RenaissanceRe IP Holdings Ltd, which is
a wholly owned subsidiary of RenaissanceRe Holdings Ltd, the ultimate parent company.
During the year, the Syndicate was charged $5.3m (2024 - $4.6m) by RIPUKL for its share of global expenses
incurred centrally by the group and has an intercompany creditor balance of $1.4m within other creditors (2024 -
$1.2m) at the year end.
38
Notes to the financial statements
For the year ended 31 December 2025
Syndicate 1458 Annual Report and Accounts 2025
RenaissanceRe Europe AG
RenaissanceRe Europe AG ("RREAG") is a wholly owned subsidiary of RenaissanceRe Specialty Holdings (UK)
Limited, which is a wholly owned subsidiary of RenaissanceRe Holdings Ltd, the ultimate parent company.
The Syndicate has entered into Whole Account Stop Loss arrangements with RREAG for the 2020 to 2025
underwriting years. The Syndicate recorded outward reinsurance premiums of $16.6m (2024 - $16.6m) during the
year and has an intercompany debtor balance of $8.5m within debtors arising out of reinsurance operations (2024 -
$8.2m) at the year end.
The Syndicate has entered into a quota share arrangement with RREAG in relation to certain Property contracts for
prior underwriting years. The Syndicate has an intercompany debtor balance of $0.4m within debtors arising out of
reinsurance operations (2024 - $3.0m) at the year end.
The Syndicate entered into a Multi-line quota share arrangement with RREAG for the 2022 to 2024 underwriting
years. This agreement was non-renewed for 2025 underwriting year. The Syndicate ceded premiums written of
$12.2m (2024 - $300.7m) during the year and has an intercompany creditor balance of $329.7m (2024 - $582.5m)
within creditors arising out of reinsurance operations at the year end. This agreement is on a funds withheld basis.
Due to this the Syndicate has an intercompany creditor balance due to RREAG of $16.4m (2024 - $9.8m) within
other creditors at the year end relating to the interest accrued on the funds withheld balance.
The Syndicate assumed certain deals as part of the reinsurance agreement with Validus Reinsurance, Ltd. ("Validus
Re"). Prior to 6 November 2024, ValidusRe was a wholly owned subsidiary of Validus Holdings, Ltd., which in turn
was wholly owned by RenaissanceRe Holdings, the ultimate parent company, merged with Renaissance
Reinsurance Ltd on 6 November 2024. In relation to this arrangement, the Syndicate entered into a quota share
agreement with Validus Reinsurance (Switzerland) Ltd., which subsequently merged with RREAG on June 21,
2024. The Syndicate ceded premiums written of $1.3m (2024 - $nil) during the year and has an intercompany
debtor balance of $1.1m (2024 - $0.2m).
Renaissance Reinsurance Ltd
Renaissance Reinsurance Ltd (“RRL”) is a wholly owned subsidiary of RenaissanceRe Holdings Ltd, the ultimate
parent company.
The Syndicate has entered into a quota share arrangement with RRL to cover specific contracts on a facultative
basis. The Syndicate ceded premiums written of ($0.5m) (2024 - $2.2m) during the year and has an intercompany
creditor balance of $2.0m within creditors arising out of reinsurance operations (2024 - $2.0m).
The Syndicate has an intercompany creditor balance due to RRL of $nil for the current year (2024 - $0.1m) within
other creditors at the year end.
The Syndicate entered into an excess of loss agreement with RRL, relating to the Property class of business. The
Syndicate recorded gross premiums written net of acquisition costs of $2.0m (2024 - $6.8m) during the year. The
intercompany debtor balance,within debtors arising out of reinsurance operations, was $nil (2024 - $0.7m) at the
year end.
The Syndicate has entered into a reinsurance agreement with ValidusRe, which subsequently merged with RRL on
6 November 2024. At the year end, the Syndicate has an intercompany creditor balance of $0.7m (2024 - $0.9m
debtor balance) within creditors arising out of reinsurance operations.
During the year, the Syndicate entered into a Multi-line Quota Share arrangement with RRL for the 2025
underwriting year. The Syndicate ceded premiums written of $214.7m (2024 - $nil) during the year and has an
intercompany creditor balance of $120.7m (2024 - $nil) within creditors arising out of reinsurance operations at the
year end.
39
Notes to the financial statements
For the year ended 31 December 2025
Syndicate 1458 Annual Report and Accounts 2025
RenaissanceRe Services Ltd
RenaissanceRe Services Ltd (“RSL”) is a wholly owned subsidiary of RenaissanceRe Holdings Ltd, the ultimate
parent company.
During the year, the Syndicate was charged $18.8m (2024 - $18.1m) by RSL for its share of global expenses
incurred centrally by the group. The Syndicate has an intercompany creditor balance to RSL of $6.0m within other
creditors (2024 - $5.7m) at the year end.
RenaissanceRe Services (UK) Limited
RSUKL is a wholly owned subsidiary of RenaissanceRe European Holdings Limited, which is a wholly owned
subsidiary of RenaissanceRe Holdings Ltd, the ultimate parent company.
During the year, the Syndicate was charged $20.2m (2024 - $19.7m) by RSUKL for its share of operating expenses
incurred. The Syndicate has an overall intercompany creditor balance to RSUKL of $6.6m within other creditors
(2024 - $6.1m) at the year end.
RenaissanceRe Syndicate Management Limited
RSML is a wholly owned subsidiary of RenaissanceRe European Holdings Limited, which is a wholly owned
subsidiary of RenaissanceRe Holdings Ltd, the ultimate parent company.
Under the terms of the managing agency agreement between RSML and the Syndicate, RSML is entitled to charge
the Syndicate a management fee based on the gross premiums written per latest approved Syndicate Business
Forecast. In 2025, RSML charged management fees of $6.9m to the Syndicate (2024 - $8.4m).
The Syndicate has an overall intercompany creditor balance to RSML of $0.9m within other creditors (2024 - $1.9m)
at the year end.
RenaissanceRe U.S. Inc
RenaissanceRe U.S. Inc ("RRUSI") is a wholly owned subsidiary of RenaissanceRe Specialty U.S. Limited, which is
a wholly owned subsidiary of RenaissanceRe Holdings Ltd, the ultimate parent company.
The Syndicate has entered into a binding authority agreement with RRUSI. In respect of this agreement the
Syndicate incurred coverholder fees of $0.6m (2024 - $0.2m) during the year.
The Syndicate was also charged $2.0m (2024 - $1.8m) for its allocation of administrative expenses to support the
business written through this agreement during the year.
The Syndicate has an overall intercompany creditor balance to RRUSI of $0.4m within other creditors (2024 -
$0.4m) at the year end.
Tower Hill Companies
Tower Hill Companies is an equity interest of RenaissanceRe Holdings Ltd, the ultimate parent company.
During the year the Syndicate entered into reinsurance arrangements with certain subsidiaries and affiliates of
Tower Hill with respect to business produced by the Tower Hill Companies. The Syndicate recorded gross premiums
written net of acquisition costs of $24.8m (2024 - $20.6m) during the year and has an intercompany debtor balance
of $11.8m within debtors arising out of reinsurance operations (2024 - $5.1m) at the year end.
40
Notes to the financial statements
For the year ended 31 December 2025
Syndicate 1458 Annual Report and Accounts 2025
Upsilon RFO Re Ltd
Upsilon RFO Re Ltd ("Upsilon") is a managed joint venture and consolidated within the group financial statements
of RenaissanceRe Holdings Ltd, the ultimate parent company.
The Syndicate has an intercompany debtor balance of $nil (2024 - $6.0m) within debtors arising out of reinsurance
at the year end.
21. 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 | | | | | | |
22. Funds at Lloyd's
Underwriting capacity of a member of Lloyd's must be supported by providing a deposit in the form of cash,
securities or letters of credit, which are referred to as Funds at Lloyd's ("FAL"). This amount is determined by Lloyd's
and is based on the Syndicate’s solvency and capital requirement as calculated through the Syndicate’s internal
model. In addition, if the FAL are not sufficient to cover all losses, the Lloyd's Central Fund provides an additional
level of security for policyholders. Since FAL is not under the management of the managing agent, no amounts have
been shown in these annual accounts by way of such capital resource. However, the managing agent is able to
make a call on member's FAL to meet liquidity requirements or settle losses.
23. Off-balance sheet items
The Syndicate has not been party to any other arrangement, which is not reflected in its statement of financial
position, where material risks and benefits arise for the Syndicate, other than FAL (note 22) and Collateral (notes 1
and 24 (d)(1)).
41
Notes to the financial statements
For the year ended 31 December 2025
Syndicate 1458 Annual Report and Accounts 2025
24. Risk management
(a) Governance framework
The primary objective of the Syndicate’s risk and financial management framework is to protect the Syndicate’s
member from events that hinder the sustainable achievement of financial performance objectives, including failing to
exploit opportunities. Management recognise the critical importance of having efficient and effective risk
management systems in place.
The managing agent has established a risk management function with clear terms of reference from the board of
directors. This is supported by a clear organisational structure with documented delegated authorities and
responsibilities from the board of directors to executive management committees and senior managers. Lastly, a
risk policy framework which sets out the risk appetite, risk management processes and control framework for the
Syndicate’s operations has been put in place. Each policy has a member of senior management charged with
overseeing compliance with the policy throughout the Syndicate.
The board of directors delegates approval of the risk management policies to the relevant committee regularly to
approve any commercial, regulatory and organisational requirements of such policies. These policies define the
identification of risk and its interpretation to ensure there is a constant understanding of risk which assists the
alignment of the underwriting and reinsurance strategy to the Syndicate goals, and they also specify reporting
requirements. Significant emphasis is placed on assessment and documentation of risks and controls, including the
articulation of ‘risk appetite’.
(b) Capital management objectives, policies and approach
Capital framework at Lloyd’s
Lloyd’s is a regulated undertaking and subject to the supervision of the 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 that
Lloyd’s complies with Solvency II capital requirements, and beyond that to meet its own financial strength, license
and ratings objectives.
Although Lloyd’s capital setting processes use a capital requirement set at Syndicate level as a starting point, the
requirement to meet Solvency II and Lloyd’s capital requirements apply at overall and member level only
respectively, not at Syndicate level. Accordingly the capital requirement in respect of Syndicate 1458 is not
disclosed in these annual accounts.
Lloyd’s capital setting process
In order to meet Lloyd’s requirements, each Syndicate is required to calculate its Solvency Capital Requirement
("SCR") for the prospective underwriting year. This amount must be sufficient to cover a 1 in 200 year loss,
reflecting uncertainty in the ultimate run-off of underwriting liabilities (SCR ‘to ultimate’). The Syndicate must also
calculate its SCR at the same confidence level but reflecting uncertainty over a one year time horizon (one year
SCR) for Lloyd’s to use in meeting Solvency II requirements. The SCRs of each Syndicate are subject to review by
Lloyd’s and approval by the Lloyd’s Capital and Planning Group.
42
Notes to the financial statements
For the year ended 31 December 2025
Syndicate 1458 Annual Report and Accounts 2025
A Syndicate may be comprised of one or more underwriting members of Lloyd’s. Each member is liable for its own
share of underwriting liabilities on the Syndicate on which it participates but not other members’ shares. Accordingly,
the capital requirement that Lloyd’s sets for each member operates on a similar basis. Each member’s SCR shall
thus be determined by the sum of the member’s share of the Syndicate SCR ‘to ultimate’. Where a member
participates on more than one Syndicate, a credit for diversification is provided to reflect the spread of risk, but
consistent with determining an SCR which reflects the capital requirement to cover a 1 in 200 year 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 ratings objectives. The capital uplift applied is 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), held within and managed within a Syndicate (Funds in Syndicate) or as the member’s
share of the members’ balances on each Syndicate on which it participates.
Accordingly all of the assets less liabilities of the Syndicate, as represented in the member's balances reported on
the statement of financial position represent resources available to meet the member's and Lloyd’s capital
requirements.
(c) Insurance risk
Underwriting risk is the risk that is assumed into or ceded from the Syndicate as a result of its underwriting activities
during the time period of interest, in particular the risk of incurring claims in excess of expectations and the
associated reduction in profits and/or erosion of capital. Risk related to previously earned premium, including that on
expired underwriting contracts, is considered as part of reserve risk. Underwriting and reserve risks are the most
material components of RSML’s risk management framework. RSML has articulated the underwriting risk tolerance
of the Syndicate as well as associated processes and policies in the Insurance Risk Policy. Further, annually the
Syndicate articulates its business plan, setting out targets for volumes, pricing, line sizes and retentions by class of
business. Performance against the business plan is monitored on an ongoing basis.
The Syndicate's claims and claim expense reserves reflect its estimates, using actuarial and statistical projections at
a given point in time, of the expectations of the ultimate settlement and administration costs of claims incurred.
Although the Syndicate uses actuarial and computer models as well as historical reinsurance and insurance
industry loss statistics, it also relies heavily on management's experience and judgement to assist in the
establishment of appropriate claims and claim expense reserves. Estimates are revised as additional experience
and other data become available, as new or improved methodologies are developed, as loss trends and claims
inflation impact future payment, or as rules and regulations change.
Reserve risk is the risk that claims and claim expense reserves subsequently prove to be insufficient to cover
eventual claims. Deterioration in reserves can originate from frequency of claims being more than expected,
severity of claims being higher than expected and difference between timing of claims payments versus expected.
Reserve risk relates to all business earned at the valuation date. Risk relating to claims on unearned and future
business is considered as part of underwriting risk. Reserve adequacy is monitored through quarterly review of
reserves by the RSML Actuarial Function, by the RSML Reserve Committee and as well as through an annual
assessment performed by the Syndicate's Independent Actuary.
The above risk exposures are mitigated by diversification across a large portfolio of insurance and reinsurance
contracts and geographical areas. The variability of risks, including exposure to catastrophic events, is also
mitigated by the use of reinsurance arrangements.
43
Notes to the financial statements
For the year ended 31 December 2025
Syndicate 1458 Annual Report and Accounts 2025
The table below sets out the concentration of outstanding claim liabilities by type of contract:
31 December 2025 31 December 2024
Gross liabilities
Reinsurance of
liabilities Net liabilities Gross liabilities
Reinsurance of
liabilities Net liabilities
$000 $000 $000 $000 $000 $000
Direct insurance
Marine, aviation, and
transport 30,725 (9,169) 21,556 45,977 (21,944) 24,033
Fire and other
damage of property 362,304 (217,642) 144,662 519,984 (391,414) 128,570
Third party liability 885,685 (472,150) 413,535 877,885 (550,827) 327,058
Credit and suretyship 15,571 (6,283) 9,288 11,103 (7,678) 3,425
Total direct insurance 1,294,285 (705,244) 589,041 1,454,949 (971,863) 483,086
Reinsurance
acceptances 684,207 (345,188) 339,019 694,755 (354,716) 340,039
Total 1,978,492 (1,050,432) 928,060 2,149,704 (1,326,579) 823,125
Sensitivities
Sensitivities liabilities established could be significantly lower or higher than the ultimate cost of settling the claims
arising. This level of uncertainty varies between the classes of business and the nature of the risk being
underwritten and can arise from developments in case reserving for large losses and catastrophes, or from changes
in estimates of claims IBNR.
The following table presents the sensitivity of the value of insurance liabilities disclosed in the accounts to potential
movements in the assumptions applied within the technical provisions. Given the nature of the business
underwritten by the Syndicate, the approach to calculating the technical provisions for each class can vary and as a
result the sensitivity performed is to apply a beneficial and adverse risk margin to the total insurance liability. The
amount disclosed in the table represents the profit or loss impact of an increase or decrease in the insurance liability
as a result of applying the sensitivity. The amount disclosed for the impact on claims outstanding – net of
reinsurance represents the impact on both the profit and loss for the year and member's balances.
General insurance business sensitivities as at 31 December 2025 | Sensitivity | |
| 5.00 % | (5.00) % | |
| $000 | $000 | |
| Claims outstanding – gross of reinsurance | ( | |
| Claims outstanding – net of reinsurance | ( |
General insurance business sensitivities as at 31 December 2024 | Sensitivity | |
| 5.00 % | (5.00) % | |
| $000 | $000 | |
| Claims outstanding – gross of reinsurance | | ( |
| Claims outstanding – net of reinsurance | ( |
44
Notes to the financial statements
For the year ended 31 December 2025
Syndicate 1458 Annual Report and Accounts 2025
Claims development table
The following tables show the estimates of cumulative incurred claims, including both claims notified and IBNR for each successive calendar year at each reporting date,
together with cumulative payments to date. The cumulative claims estimates and cumulative payments are translated at the current year end rate. The tables include
historic claims information on reserves acquired through an external RITC transaction in the 2024 calendar year, which relate only to the 2020 and 2021 underwriting
years.
Gross insurance contract outstanding claims provision as at 31 December 2025:
Underwriting year
(u/w year)
Earlier 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Total
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
Estimate of cumulative claims incurred
At end of u/w year
12 months later
24 months later
36 months later
48 months later
60 months later
72 months later
84 months later
96 months later
108 months later
Current estimate of
cumulative claims
incurred 749,432 414,855 626,076 561,449 566,934 697,768 773,016 684,451 439,622 586,442 231,044 6,331,089
Cumulative
payments to date (666,742) (365,511 ) (554,092 ) (465,545 ) (448,637 ) (560,937 ) (605,265 ) (422,432 ) (147,704 ) (104,057 ) (11,676 ) (4,352,598 )
Total gross
outstanding claims
provision per the
statement of
financial position 82,690 49,344 71,984 95,904 118,297 136,831 167,751 262,019 291,918 482,385 219,368 1,978,491
45
Notes to the financial statements
For the year ended 31 December 2025
Syndicate 1458 Annual Report and Accounts 2025
Net insurance contract outstanding claims provision as at 31 December 2025:
Underwriting year
(u/w year)
Earlier 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Total
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000 $000
Estimate of cumulative claims incurred
At end of u/w year
12 months later
24 months later
36 months later
48 months later
60 months later
72 months later
84 months later
96 months later
108 months later
Current estimate of
cumulative claims
incurred 551,743 227,969 249,006 342,761 283,622 309,913 460,946 256,116 233,960 324,244 125,157 3,365,437
Cumulative
payments to date (533,820) (235,888 ) (236,910 ) (281,379 ) (224,770 ) (229,462 ) (366,343 ) (105,233 ) (120,448 ) (91,579 ) (11,546 ) (2,437,378 )
Total net
outstanding claims
provision per the
statement of
financial position 17,923 (7,919 ) 12,096 61,382 58,852 80,451 94,603 150,883 113,512 232,665 113,611 928,059
During 2020, an Adverse Development Cover was purchased protecting the Casualty classes for the 2017 and prior underwriting years.
46
Notes to the financial statements
For the year ended 31 December 2025
Syndicate 1458 Annual Report and Accounts 2025
(d) Financial risk
(1) Credit risk
Credit risk is the risk of loss in the value of financial assets due to counterparties failing to meet part or all of their
obligations or failing to meet them in a timely manner, as well as adverse changes in the market value of assets
caused by changed perceptions of the creditworthiness of counterparties. For Syndicate 1458, key counterparties
with whom we are exposed to credit risk include reinsurers, brokers, insureds, reinsureds, coverholders and
investment counterparties.
The Syndicate has a graded tolerance for accepting credit risk associated with its outwards reinsurance activities.
As part of the underwriting decision to purchase outwards reinsurance, the creditworthiness of the reinsurer is one
of the many variables that is considered.
The Syndicate has established counterparty credit rating guidelines which assist in this process by providing a
suggested maximum limit to be exposed to individual reinsurers based on their credit rating. The guidelines are
mostly aimed at core, strategic reinsurance purchases and are not aimed at more tactical, facultative reinsurance
transactions entered into occasionally, on an opportunistic basis.
The tables 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.
As at 31 December 2025, the Syndicate holds collateral of $111.0m (2024 - $182.9m) which mitigates the credit risk
pertaining to $572.5m (2024 - $632.0m) of reinsurers' share of claims outstanding and reinsurance debtors of
certain reinsurers. Collateral held can be in the form of cash and cash equivalents and debt securities, other fixed
income securities and letters of credit.
31 December 2025 | Neither past due nor impaired assets | Past due but not impaired assets | Gross value of impaired assets | Impairment allowance | Total |
| $000 | $000 | $000 | $000 | $000 | |
Shares and other variable yield securities and units in unit trusts | | | | ||
Debt securities and other fixed income securities | | | | | |
| Syndicate loans to central fund | | | | | |
| Other investments | | | | | |
| Deposits with ceding undertakings | | | | | |
| Reinsurers' share of claims outstanding | | | | ||
Debtors arising out of direct insurance operations | | | | | |
| Debtors arising out of reinsurance operations | | | | | |
| Other debtors and accrued interest | | | | | |
| Cash at bank and in hand | | | | | |
| Total | | | |
47
Notes to the financial statements
For the year ended 31 December 2025
Syndicate 1458 Annual Report and Accounts 2025
31 December 2024 Restated | Neither past due nor impaired assets | Past due but not impaired assets | Gross value of impaired assets | Impairment allowance | Total |
| $000 | $000 | $000 | $000 | $000 | |
Shares and other variable yield securities and units in unit trusts | | | | | |
Debt securities and other fixed income securities | | | | | |
| Syndicate loans to central fund | | | | | |
| Other investments | | | | | |
| Deposits with ceding undertakings | | | | | |
| Reinsurers' share of claims outstanding | | | | ||
Debtors arising out of direct insurance operations | | | | | |
| Debtors arising out of reinsurance operations | | | | | |
| Other debtors and accrued interest | | | | | |
| Cash at bank and in hand | | | | | |
| Total | | | |
The table below sets out the age analysis of financial assets that are past due but not impaired at the balance sheet
date:
| 31 December 2025 | Past due but not impaired | ||||
0-3 months past due | 3-6 months past due | 6-12 months past due | Greater than 1 year past due | Total | |
| $000 | $000 | $000 | $000 | $000 | |
Debtors arising out of direct insurance operations | | | | | |
Debtors arising out of reinsurance operations | | - | | ||
| Total | |||||
31 December 2024 Restated | Past due but not impaired | ||||
0-3 months past due | 3-6 months past due | 6-12 months past due | Greater than 1 year past due | Total | |
| $000 | $000 | $000 | $000 | $000 | |
Debtors arising out of direct insurance operations | | | | ||
Debtors arising out of reinsurance operations | | | | ||
| Total | | | | ||
48
Notes to the financial statements
For the year ended 31 December 2025
Syndicate 1458 Annual Report and Accounts 2025
As outlined in Note 1.3, the 2024 comparative balance has been restated to reflect an improved classification
between direct insurance operations and reinsurance operations together with a change in methodology as it
pertains to the ageing of debtor balances. The impact of these changes on the amounts disclosed in this note is
presented below. Refer to Note 1.3 for additional detail.
Neither past
due nor
impaired assets
Past due but
not impaired
assets
Gross value of
impaired assets
Impairment
allowance
Total
$000 $000 $000 $000 $000
2024 as previously reported
Debtors arising out of direct insurance
operations 12,707 749 — — 13,456
Debtors arising out of reinsurance
operations 731,086 12,293 — — 743,379
2024 restated
Debtors arising out of direct insurance
operations 416,054 4,226 — — 420,280
Debtors arising out of reinsurance
operations 255,777 80,778 — — 336,555
Change
Debtors arising out of direct insurance
operations 403,347 3,477 — — 406,824
Debtors arising out of reinsurance
operations (475,309) 68,485 — — (406,824)
Past due but not impaired
0-3 months past
due
3-6 months past
due
6-12 months
past due
Greater than 1
year past due Total
$000 $000 $000 $000 $000
2024 as previously reported
Debtors arising out of direct insurance
operations 403 — 346 — 749
Debtors arising out of reinsurance
operations 652 2,864 8,777 — 12,293
2024 restated
Debtors arising out of direct insurance
operations 104 — 1,385 2,737 4,226
Debtors arising out of reinsurance
operations 651 27,659 27,914 24,554 80,778
Change
Debtors arising out of direct insurance
operations (299) — 1,039 2,737 3,477
Debtors arising out of reinsurance
operations (1) 24,795 19,137 24,554 68,485
49
Notes to the financial statements
For the year ended 31 December 2025
Syndicate 1458 Annual Report and Accounts 2025
The table below provide information regarding the credit risk exposure of the Syndicate by classifying assets which
are neither past due nor impaired, according to Standard & Poor’s and A M Best 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. The Syndicate manages the risk of default through quality control procedures to
ensure the management of credit risk in relation to brokers and other relevant counterparties.
| 31 December 2025 | AAA | AA | A | BBB | Other | Not rated / Not readily available | Total |
| $000 | $000 | $000 | $000 | $000 | $000 | $000 | |
Shares and other variable yield securities and units in unit trusts | | | |||||
Debt securities and other fixed income securities | | | | | | ||
| Syndicate loans to central fund | | | | | | | |
| Other investments | | | | | | | |
Deposits with ceding undertakings | | | | | | | |
Reinsurers’ share of claims outstanding | | | | | | ||
Debtors arising out of direct insurance operations | | | | | | | |
Debtors arising out of reinsurance operations | | | | | | | |
| Cash at bank and in hand | | | | | | | |
Other debtors and accrued interest | | | | | | | |
| Total | | |
31 December 2024 Restated | AAA | AA | A | BBB | Other | Not rated / Not readily available | Total |
| $000 | $000 | $000 | $000 | $000 | $000 | $000 | |
Shares and other variable yield securities and units in unit trusts | | | | | |||
Debt securities and other fixed income securities | | | | ||||
| Syndicate loans to central fund | | | | | | | |
| Other investments | | | | | | ||
Deposits with ceding undertakings | | | | | | ||
Reinsurers’ share of claims outstanding | | | | ||||
Debtors arising out of direct insurance operations | | | | | |||
Debtors arising out of reinsurance operations | | | | | |||
| Cash at bank and in hand | | | | | | | |
Other debtors and accrued interest | | | | | | | |
| Total | | | |
Included in investments rated AA above are certain assets that are rated AA+ that have been included within this
rating categorisation in line with the classification applied by the investment managers.
50
Notes to the financial statements
For the year ended 31 December 2025
Syndicate 1458 Annual Report and Accounts 2025
As outlined in Note 1.3, the 2024 comparative balance has been restated to reflect an improved classification
between direct insurance operations and reinsurance operations together with a change in methodology as it
pertains to the credit rating of debtor balances. We have also amended our credit rating table to be limited to assets
which are neither past due nor impaired. The impact of these changes on the amounts disclosed in this note is
presented below. Refer to Note 1.3 for additional detail.
31 December 2024
Restated AAA AA A BBB Other
Not rated /
Not readily
available Total
$000 $000 $000 $000 $000 $000 $000
2024 as previously reported
Debtors arising out of direct
insurance operations — — — — — 13,456 13,456
Debtors arising out of
reinsurance operations 588,764 60,335 49,697 8,777 — 35,806 743,379
2024 restated
Debtors arising out of direct
insurance operations 2,775 35,517 118,928 54,297 — 204,537 416,054
Debtors arising out of
reinsurance operations — 63,457 121,152 12,241 2,063 56,864 255,777
Change
Debtors arising out of direct
insurance operations 2,775 35,517 118,928 54,297 — 191,081 402,598
Debtors arising out of
reinsurance operations (588,764) 3,122 71,455 3,464 2,063 21,058 (487,602)
(2) Liquidity risk
Liquidity risk is the risk that the Syndicate, although solvent, might not have sufficient available liquid resources to
enable it to meet its obligations as they fall due, or could secure them only at excessive cost. The liquidity objective
is to preserve capital and provide adequate liquidity to support the Syndicate's underwriting and day-to-day
operations.
The Syndicate has no tolerance to be operationally illiquid for any time period. Operational illiquidity does not
include illiquidity after large loss events, which is addressed below.
To ensure the liquidity requirements of the Syndicate are satisfied, the investment portfolio will be positioned in very
high quality fixed income securities, which will allow a strong platform for the Syndicate to assume insurance related
exposure. The Syndicate's philosophy of generating strong risk adjusted returns in the investment portfolio will be
balanced by liquidity, credit quality, market volatility as well as other considerations to accommodate present and
future insurance underwriting.
The investment portfolio is subject to a set of tight guidelines, as set out in the Syndicate’s Investment Management
Agreements, with a largely high quality and short term focus thereby providing sufficient liquidity for prompt payment
of claims and short term obligations.
The Syndicate is a participant of a cash pooling arrangement with certain subsidiaries of the group to facilitate
liquidity management. Cash pooling is a centralized cash management strategy to concentrate and centralize cash
balances across accounts of a group’s subsidiaries. Excess cash balances in the pool can be used to meet short
term liquidity needs across participants. The Syndicate is a beneficiary to the cash pooling arrangement but not a
contributor.
51
Notes to the financial statements
For the year ended 31 December 2025
Syndicate 1458 Annual Report and Accounts 2025
Maturity profiles
The tables below summarises the maturity profile of the Syndicate’s creditors balances based on remaining
undiscounted contractual obligations and claims outstanding based on the estimated timing of claim payments
resulting from recognised insurance liabilities.
No maturity stated | Up to a year | 1-3 years | 3-5 years | > 5 years | Total | |
| $000 | $000 | $000 | $000 | $000 | $000 | |
31 December 2025 | ||||||
| Claims outstanding | | | | | | |
| Deposits received from reinsurers | | | | | | |
| Creditors | | | | | | |
| | | | | | |
No maturity stated | Up to a year | 1-3 years | 3-5 years | > 5 years | Total | |
| $000 | $000 | $000 | $000 | $000 | $000 | |
31 December 2024 | ||||||
| Claims outstanding | | | | | | |
| Deposits received from reinsurers | | | | | | |
| Creditors | | | | | | |
| | | | | | |
(3) Market risk
Market risk is the risk of financial loss due to movements in market factors. For the Syndicate, this can manifest
through investment market movements, including movements in interest rates, inflation, movements in foreign
exchange rates, resulting in mismatches between currencies in which assets and liabilities are denominated, and
changes in credit ratings or investment prices.
Currently, the Syndicate holds a mix of cash and cash equivalents (including collective investment schemes), fixed
and variable income investments (the “investment portfolio”). The investment policy of the Syndicate is to manage
and maintain an investment portfolio which will be positioned in high quality fixed income securities, which will allow
a strong platform for the Syndicate to assume underwriting risk. The Syndicate's philosophy of generating strong
risk adjusted returns in the investment portfolio will be balanced by liquidity, credit quality, market volatility as well as
other considerations to accommodate present and future underwriting. The investment portfolio must also comply
with FCA and US Situs fund asset admissibility criteria.
Our investment portfolio also includes securities with a longer duration, which may be more susceptible to risks
such as inflation.
52
Notes to the financial statements
For the year ended 31 December 2025
Syndicate 1458 Annual Report and Accounts 2025
Market risk comprises two types of risk:
(3)(a) Currency risk
Currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of
changes in foreign exchange rates.
The table below summarises the exposure of the financial assets and liabilities to foreign currency exchange risk at
the reporting date, as follows:
| Converted $000 | GBP | USD | EUR | CAD | Total |
31 December 2025 | |||||
| Investments | | | | ||
| Reinsurers' share of technical provisions | | | | | |
| Debtors | | | | ||
| Other assets | | | | | |
| Prepayments and accrued income | | | | ||
| Total assets | | | | | |
| Technical provisions | ( | ( | ( | ( | ( |
| Deposits received from reinsurers | ( | ( | ( | ( | ( |
| Creditors | ( | ( | ( | ( | ( |
| Accruals and deferred income | ( | ( | | ( | |
| Total liabilities | ( | ( | ( | ( | ( |
| Total Capital and reserves | ( | | ( | ( | |
| Converted $000 | GBP | USD | EUR | CAD | Total |
31 December 2024 | |||||
| Investments | | | | | |
| Reinsurers' share of technical provisions | | | | | |
| Debtors | | | | | |
| Other assets | | | | | |
| Prepayments and accrued income | | | | | |
| Total assets | | | | | |
| Technical provisions | ( | ( | ( | ( | ( |
| Deposits received from reinsurers | | ( | ( | ( | |
| Creditors | ( | ( | ( | ( | ( |
| Accruals and deferred income | ( | ( | | ( | |
| Total liabilities | ( | ( | ( | ( | ( |
| Total Capital and reserves | | ( | | ( | ( |
53
Notes to the financial statements
For the year ended 31 December 2025
Syndicate 1458 Annual Report and Accounts 2025
Sensitivity to changes in foreign exchange rates
The table below gives an indication of the impact on profit and member's balances of a percentage change in the
relative strength of US dollar against other currencies. The analysis is based on the information as at 31 December.
Impact on profit Impact on member's balances
2025 2024 2025 2024
$000 $000 $000 $000
US dollar weakens
10% against other currencies
(8,025) (10,884) (8,025) (10,884)
US dollar strengthens
10% against other currencies
8,025 10,884 8,025 10,884
(3)(b) Interest rate risk
Interest rate risk is the risk that the fair value and/or future cash flows of a financial instrument will fluctuate because
of changes in interest rates.
The Syndicate is exposed to interest rate risk through its investment portfolio, borrowings and cash and cash
equivalents.
The analysis below is performed for reasonably possible movements in interest rates 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 member's balances.
Impact on profit | Impact on member's balances | Impact on profit | Impact on member's balances | |
| 2025 | 2025 | 2024 | 2024 | |
| $000 | $000 | $000 | $000 | |
Interest rate risk | ||||
+ 50 basis points shift in yield curves | ( | ( | ( | ( |
| - 50 basis points shift in yield curves | | | |
(e) Climate risk
Natural catastrophes including extreme weather are a material risk that impacts the business of the Syndicate.
Climate change is expected to increase the frequency and or severity of future extreme weather events. Some of
our principal economic exposures arise from our coverages for natural disasters and catastrophes.
We believe that this potential increase in severe weather, coupled with currently projected demographic trends in
catastrophe-exposed regions, contributes to factors that will increase the average economic value of expected
losses, increase the number of people exposed per year to natural disasters and in general exacerbate disaster
risk, including risks to infrastructure, global supply chains and agricultural production. Accordingly, we expect an
increase in both the frequency and magnitude of claims, especially from properties located in coastal areas.
The consideration of the impacts of climate change is integral to our ERM process. We have taken measures to
mitigate losses related to climate change through our underwriting process and by continuously monitoring and
adjusting our risk management models to reflect the higher level of risk that we think will persist. We have been
progressively integrating the consideration of the financial risk from climate change into our governance
frameworks, risk management processes, and business strategies over the last several years.
54
Notes to the financial statements
For the year ended 31 December 2025
Syndicate 1458 Annual Report and Accounts 2025
Our board of directors and its committees are actively engaged in the oversight of sustainability initiatives and
receive regular updates from management on progress, risk and developments.
(f) Risk due to inflation
General economic inflation has increased over the past few years compared to recent historical norms, and there is
a risk of inflation remaining elevated for an extended period, which could cause claims and claims related expenses
to increase, impact the performance of our investment portfolio, or have other adverse effects. This risk may have
been exacerbated by geopolitical factors and global supply chain issues or tariffs, among other factors, from time to
time. Central bank policy and changes to interest rates may also increase the risk of inflationary pressures. The
actual effects of the current and potential future increase in inflation on our results cannot be accurately known until,
among other items, claims are ultimately settled. The duration and severity of an inflationary period cannot be
estimated with precision. We consider the anticipated effects of inflation on us in our catastrophe loss models and
on our investment portfolio. Our estimates of the potential effects of inflation are also considered in pricing and in
estimating reserves for unpaid claims and claim expenses. The potential exists, after a catastrophe loss, for the
development of inflationary pressures in a local economy.
Furthermore, unanticipated developments in the law as well as changes in social conditions could result in
unexpected claims for coverage under our insurance and reinsurance contracts. Our exposure to these
uncertainties could be exacerbated by social inflation trends, including increased litigation, expanded theories of
liability and higher jury awards. These uncertainties are taken into consideration in establishment of appropriate
claims and claims expense reserves.
55
Notes to the financial statements
For the year ended 31 December 2025
Syndicate 1458 Annual Report and Accounts 2025
