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Annual Accounts
Syndicate 0218
31 December 2025
Contents
Directors and administration ............................................................................................................................. 3 ........
Annual Report and Accounts 2025 Financial Year ........................................................................................ 4 ........
Report of the managing agent .......................................................................................................................... 5 ........
Statement of managing agent’s responsibilities ............................................................................................. 10 .......
Independent auditors’ report to the members of Syndicate 218 ................................................................. 11 ........
Statement of profit or loss and comprehensive income – technical account general business ............. 15 .......
Statement of profit or loss and comprehensive income – non-technical account .................................... 16 .......
Balance sheet – assets ........................................................................................................................................ 17 .......
Balance sheet – liabilities .................................................................................................................................... 18 .......
Statement of changes in members’ balances ................................................................................................. 19 .......
Cash flow statement ........................................................................................................................................... 20 ......
Notes to the accounts ......................................................................................................................................... 21 .......
Underwriting Accounts 2023 Closed Year of Account ................................................................................. 56 ......
Reports & Accounts Syndicate 218 2
Directors and administration
MANAGING AGENT
Managing agent IQUW Syndicate Management Limited
Directors Francois-Xavier B Boisseau (Chairman)
Peter A Bilsby
Charlotte Constable
Michele J Faull
Martin Hall
Richard A Hextall
John G Holland
David E Morris
Nathan R Ott
Heather I Thomas
Christopher E Watson (Resigned 21 July 2025)
Sarah A Willmont (Appointed 31 July 2025)
Managing agent’s registered office 30 Fenchurch Street
London
EC3M 3BD
Managing agent’s company number 00426475
SYNDICATE
Active underwriter Scott Tillbrook (Appointed 1 May 2025)
Bankers National Westminster Bank Plc
Citibank NA
Royal Bank of Canada Dexia
Investment managers Conning Asset Management Limited
Independent Auditors PricewaterhouseCoopers LLP
Reports & Accounts Syndicate 218 3
Annual Report
and Accounts
2025 Financial Year
Report of the managing agent
IQUW Syndicate Management Limited (the “Managing Agent”), the managing agent of Syndicate 218 (the
“Syndicate” or “ERS”), presents its report for the year ended 31 December 2025 which has been prepared
under the regulations outlined in note 1 of the annual accounts.
Separate underwriting year accounts for the 2023 year of account which closed at 31 December 2025 are
included following these accounts from page 56.
Principal activities
The principal activities of the Syndicate remain a specialist motor-only, broker-only insurer, focused on
delivering sustainable profits. The Syndicate offers a broad range of specialist motor insurance products to
commercial market and personal lines segments principally in the United Kingdom. It operates under a
strong brand, ERS, and is the largest specialist motor insurer in Lloyd’s and the only motor-focused Lloyd’s
syndicate.
The four key elements of the Syndicate’s strategy are as follows:
• ERS is deliberately different. It focuses on drivers whose needs are different or more intricate, or who
have a passion for their vehicle or who depend upon it for their livelihood;
• ERS has strong broker relationships and is committed to distribution partnerships with specialist
brokers. Their knowledge and understanding of their customers and market together with ERS’s
underwriting and claims capabilities continue to foster mutual and sustainable relationships;
• ERS continues to enhance its capabilities and will adopt technology where it improves the customers’
experience, the efficacy of underwriting judgement, the efficiency of the insurance process, and the
settlement of claims; and
• ERS remains committed to being a sustainable business whose consistent underwriting approach
provides to brokers, and to their customers, protection in what continues to be a volatile market. ERS
benefits from the Lloyd’s credit ratings, namely an A+ (Superior) rating from A.M. Best, AA- (Strong)
rating from Standard & Poor’s, AA- (Very strong) rating from Kroll Bond Rating Agency, AA- (Very
strong) rating from Fitch Ratings.
Review of the business
The Syndicate’s key financial performance indicators during the year were as follows:
Financial Year
£'000 2025 2024 2023 2022
Gross premium written 503,672 490,052 412,568 359,396
Net premiums written 439,820 434,717 349,530 316,658
Net earned premium 423,792 409,303 330,876 294,455
Investment Income 31,323 24,375 25,887 (5,793)
Profit/(loss) for financial year 92,135 70,165 8,364 (7,914)
Claims ratio* 50.2 % 57.0 % 72.1 % 67.8 %
Commission ratio** 13.5 % 13.3 % 13.9 % 13.8 %
Expense ratio*** 16.6 % 16.4 % 18.1 % 18.2 %
Combined operating ratio**** 80.3 % 86.7 % 104.1 % 99.8 %
Profit Commission 23,033 7,920 4,112 3,294
* (Claims incurred, net of Reinsurance / Net Earned Premium)
** (Acquisition cost, net of Reinsurance / Net Earned Premium)
*** (Administrative expenses / Net Earned Premium)
**** (Claims ratio + Commission ratio + Expense ratio)
Report of the managing agent
For the year ended 31 December 2025
Reports & Accounts Syndicate 218 5
The Syndicate's result for the calendar year 2025 was a profit of £92.1m (2024: £70.2m profit). The
improvements are due to a reduction in claims frequency alongside positive rate strength and claims
inflation more in line with the long-term average. The Syndicate’s long-term investments in digital trading
and automation have enabled efficient growth.
Total gross premium written for the calendar year was £503.7m (2024: £490.1m). The Syndicate continues
to target pricing discipline to ensure the portfolio is well funded and the diversified nature of the account
has enabled it to manage market trading conditions effectively.
Claims inflation has remained closer to the historic long-term trend after the rapid increases seen in 2023
and prior. There remains pressure on large injury claims settlement arising from the cost of providing long-
term care.
During 2024, whilst traffic levels remained relatively constant compared to the previous period, the
Syndicate observed a reduction in claims frequency, driven by improved business mix and wider industry
trends. These trends have been reported across the industry with no single factor solely responsible. This
reduction in frequency continued into 2025 with a large proportion attributable to underwriting actions.
Business operations have continued to perform well. The Syndicate maintained high standards of customer
and broker service supported by a Trust Pilot score of 4.7.
The strategy of the Syndicate remains consistent in targeting specialist segments of the motor market,
predominantly in the UK where there are lower levels of competition and where the propositions are
designed to cater for the requirements of customers in these sectors. All business is traded via brokers and
intermediaries and not direct to policyholders.
ERS focuses on drivers and businesses whose needs are different or more intricate, and who have a passion
for their vehicle, or who depend upon it for their livelihood. Target markets include agriculture, commercial
fleets, passenger transport, modified commercial and private vehicles, prestige, enthusiast and classic cars,
non-standard personal risks and vehicle breakdown. ERS also supports changes in transportation solutions
and motor innovations across the market.
The Syndicate’s established focus on specialist and niche business outside the mainstream aggregator-
driven private car market, together with a diversified portfolio, has enabled effective management of the
market rate cycle. The private car market has seen substantial rate reductions during 2025 which are not
replicated across ERS’s portfolio.
The Syndicate has continued to grow in areas of key specialism such as Agriculture and Bespoke Personal
Lines businesses where service, capability and access to decision makers make a difference to the ability to
win and retain customers. Profitability has remained strong, and ERS continues to grow customer numbers.
Fleet and Commercial portfolios have continued to perform and have grown during 2025.
The addition of Motor Innovation business in 2024 has contributed to the overall profitability of the
Syndicate as ERS has built out a business focusing on micro-mobility, on-demand, embedded and
autonomous.
The 2023 year of account has closed with a profit of £42.7m (2024: 2022 year of account closed with a
profit of £12.6m), representing a profit on underwriting capacity of 8.9%.
2026 and the future
The Managing Agent sees opportunity for continued profitability in 2026, albeit at a more moderate level
than in 2025. The expectation is that Personal Line rates will increase strongly throughout the year
reflecting general market performance with small but positive increases seen in Commercial Lines.
Claims inflation is expected to continue in line with the long-term average but uncertainty exists due to the
volatility in UK and Global economies. The Syndicate exercises rigour around its claims inflation
assumptions and will continue to maintain its underwriting and pricing discipline.
Report of the managing agent (continued)
For the year ended 31 December 2025
Reports & Accounts Syndicate 218 6
On 29 October 2025, Starr International, Inc ("Starr"), a global investment and insurance organisation,
announced that it had entered into a definitive agreement to acquire IQUW Holdings Bermuda Limited, the
ultimate parent company of the IQUW Group and all of its subsidiaries, including the Managing Agent
IQUW Syndicate Management Ltd. Starr Insurance and Reinsurance Limited, a Bermuda exempted
company, registered as a class 4 insurance company under The Insurance Act 1978, will be the acquiring
entity. The transaction is expected to close in the first half of 2026, subject to regulatory approvals and
closing conditions.
Outwards Reinsurance
The Syndicate purchases outwards reinsurance to protect its balance sheet, reduce volatility in underwriting
result, and provide capital efficiency. The programme is designed to ensure that individual large losses and
accumulations of losses do not unduly impact the Syndicate’s financial position, while also supporting
sustainable growth across the underwriting portfolio.
To achieve this, the Syndicate combines traditional excess of loss reinsurance with structured solutions.
These contracts collectively provide protection across multiple underwriting years and are intended to
manage financial outcomes by limiting exposure to severe loss events.
Investment report
2025 2024
£’000
Total Total
Invested assets
604,361 502,882
Investment return
31,323 24,375
% Return on investments
5.2 % 4.8 %
Investment income
21,360 15,990
2025 has been a year whereby politics have created notable uncertainty and subsequent market volatility.
This was due to the planned imposition of US tariffs against international trading partners, in addition to
sizeable fiscal stimulus plans and subsequent funding concerns, particularly for the UK. Subsequently,
financial markets have been uneven. Two-year UK government bonds have traded through a range of 90
basis points. The VIX volatility index spiked above 50 and fell back to 15 with other notable spikes during the
second half of the year. GBP investment grade credit spreads had a range of approximately 50 basis points.
Overall, the moves have seen short-dated UK government bond yields trend substantially lower by 66bp
over the year, with the Bank of England cutting interest rates from 4.75% to 3.75%. Despite the volatility in
the market, the Syndicate's investment portfolio achieved a favourable return on investments of 5.2%
compared to 4.8% in 2024.
Capital
For the 2025 year of account, £400.5m (79.3%) of the capacity to support the Syndicate’s underwriting was
provided by IQUW Corporate Member Limited (“IQUW CML”). The remaining £104.6m (20.7%) of the
Syndicate’s capacity was provided by non-aligned members. The non-aligned members have taken 20.7% of
capacity on the 2026 year of account.
Year of Account
£’000
2026 2025 2024 2023 2022 2021
Syndicate Capacity
525,000 505,000 480,000 479,525 479,737 479,890
IQUW CML Participation
416,312 400,453 380,628 380,170 376,972 373,722
IQUW CML Participation
79.3 % 79.3 % 79.3 % 79.3 % 78.6 % 77.9 %
Each member is required to provide capital sufficient to meet its Economic Capital Assessment (“ECA”).
Lloyd’s rules require each member to hold sufficient capital across the member’s interests at Lloyd’s in
Report of the managing agent (continued)
For the year ended 31 December 2025
Reports & Accounts Syndicate 218 7
aggregate, rather than at a syndicate level. A member’s capital can be held through a combination of three
options. First, capital may be held in trust by Lloyd’s, called Funds at Lloyd’s (“FAL”). Second, it may be held
within and managed as syndicate funds, called Funds in Syndicate (“FIS”). Third, it may be held as a
member’s share of the members’ balances on each syndicate in which the member participates. As a result,
because the capital requirement applies at an overall member level, the capital requirement in respect of
the Syndicate is not disclosed in these financial statements.
Syndicate capital is determined through the submission to and agreement by Lloyd’s of an ultimate
solvency capital requirement (“SCR”), which is subject to an uplift determined by the Franchise Board to
arrive at the capital required by Lloyd’s. The Managing Agent uses its own internal capital model to measure
the Syndicate’s SCR, based on a rigorous process of risk identification and quantification, which is reflected
in the Managing Agent’s Own Risk and Solvency Assessment (“ORSA”). The model is based on regulatory
requirements and has been approved by Lloyd’s.
Climate change and environmental matters
The Syndicate is committed to considering sustainability in its business decisions, to intelligently using data
and automation to enhance the management of risks from climate change, and to supporting customers in
the move towards a low carbon economy.
The Syndicates (re)insurance products actively support climate change resilience, protecting society from
the physical risks of climate change through underwriting classes of business that help rebuild infrastructure
and communities after natural disasters. The Syndicate provides insurance for alternative fuel vehicles,
supporting the UK’s ambition for all new cars to be zero-emission by 2035.
The Syndicate imposes ESG guidelines on its external investment managers in relation to the constituents
of the investment portfolios and acceptable asset classes. The performance of the investment managers is
regularly reviewed to confirm adherence to these guidelines along with any appropriate assessment and
change to the investment strategy.
Principal risks and uncertainties
A description of the principal risks and uncertainties facing the Syndicate and how it manages those risks is
set out in note 4 to the financial statements. In particular, the Syndicate is exposed to Insurance Risk,
Financial Risk, and Operational Risk.
Report of the managing agent (continued)
For the year ended 31 December 2025
Reports & Accounts Syndicate 218 8
Directors’ interests and interests in other group companies
The directors of the Managing Agent who were in office during the year and up to the date of signing the
financial statements were:
Francois-Xavier B Boisseau Independent Non-Executive Chairman
Peter A Bilsby Chief Executive Officer
Charlotte Constable Chief Financial Officer
Michele J Faull Independent Non-Executive Director
Martin Hall Managing Director Syndicate 218
Richard A Hextall
Non-Executive Director
John G Holland Chief Risk Officer
David E Morris Chief Strategy Officer
Nathan R Ott Non-Executive Director
Heather I Thomas Independent Non-Executive Director
Christopher E Watson Non-Executive Director (Resigned 21 July 2025)
Sarah A Willmont Independent Non-Executive Director (Appointed 31 July 2025)
A number of the directors hold shares in the ultimate parent company. Shares are not held in any other
group company.
Disclosure of information to the auditors
The directors of the Managing Agent who held office at the date of approval of the Report of the Managing
Agent confirm that, so far as each of them is aware, there is no relevant audit information of which the
Syndicate’s auditors are unaware, and each director has taken all the steps that they ought to have taken as
a director in order to make themselves aware of any relevant audit information and to establish that the
Syndicate’s auditors are aware of that information.
Syndicate auditors
The Syndicate’s auditors, PricewaterhouseCoopers LLP, are deemed reappointed under the provisions of
The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008.
Annual general meeting (“AGM”)
Notice is hereby given that the Managing Agent does not propose holding a Syndicate AGM this year
unless objections to this proposal or the intention to reappoint the auditors are received from Syndicate
members by 30 April 2026.
On behalf of the Board:
Peter Bilsby
Director
11 February 2026
Report of the managing agent (continued)
For the year ended 31 December 2025
Reports & Accounts Syndicate 218 9
Statement of managing agent’s responsibilities
The managing agent is responsible for preparing the managing agent’s report and the annual accounts in
accordance with applicable law and regulations.
The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 require
the managing agent to prepare annual accounts for each financial year. Under that law, the managing agent
is required to prepare the syndicate accounts in accordance with United Kingdom Generally Accepted
Accounting Practice (United Kingdom Accounting Standards and applicable law). Under The Insurance
Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008, the managing agent
must not approve the annual accounts unless it is satisfied that they give a true and fair view of the state of
affairs of the Syndicate and of the profit or loss of the Syndicate for that period.
In preparing these syndicate annual accounts, the managing agent is required to:
• select suitable accounting policies and then apply them consistently;
• make judgements and accounting estimates that are reasonable and prudent;
• state whether applicable UK Accounting Standards have been followed, subject to any material
departures disclosed and explained in the Syndicate annual accounts; and
• prepare the syndicate annual accounts on a going concern basis unless it is inappropriate to presume
that the Syndicate will continue in business.
The managing agent is responsible for keeping adequate accounting records that are sufficient to show and
explain the Syndicate’s transactions and disclose with reasonable accuracy at any time the financial position
of the Syndicate and to enable it to ensure that the syndicate annual accounts 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 business's website. Legislation
in the UK governing the preparation and dissemination of syndicate annual accounts may differ from
legislation in other jurisdictions.
The managing agent is responsible for the preparation and review of the iXBRL tagging that has been
applied to the Syndicate Accounts in accordance with the instructions issued by Lloyd’s, including
designing, implementing and maintaining systems, processes and internal controls to result in tagging that
is free from material non-compliance with the instructions issued by Lloyd’s, whether due to fraud or error.
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 1.0 issued by Lloyd’s.
Statement of managing agent’s responsibilities
For the year ended 31 December 2025
Reports & Accounts Syndicate 218 10
Independent auditors’ report to the members of Syndicate 218
Report on the audit of the syndicate annual accounts
Opinion
In our opinion, 218’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 V3.1 as modified by the Frequently Asked Questions issued
by Lloyd’s V1.0 (“the Lloyd’s Syndicate Instructions”).
We have audited the syndicate annual accounts included within the Annual Accounts (the “Annual Report”),
which comprise: the Balance sheet - assets and Balance sheet – liabilities as at 31 December 2025; the
Statement of profit or loss and comprehensive income – technical account for general business, the
Statement of profit or loss and comprehensive income – non-technical account for general business, the
Cash flow statement, and the Statement of changes in members’ balance 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 7, we have provided no non-audit services to the syndicate in the period
under audit.
Conclusions relating to going concern
Based on the work we have performed, we have not identified any material uncertainties relating to events
or conditions that, individually or collectively, may cast significant doubt on the syndicate’s ability to
continue as a going concern for a period of at least twelve months from when the syndicate annual accounts
are authorised for issue.
In auditing the syndicate annual accounts, we have concluded that the Managing Agent’s use of the going
concern basis of accounting in the preparation of the syndicate annual accounts is appropriate.
However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as
to the syndicate's ability to continue as a going concern.
Our responsibilities and the responsibilities of the Managing Agent with respect to going concern are
described in the relevant sections of this report.
Independent auditors’ report to the members of Syndicate 218
For the year ended 31 December 2025
Reports & Accounts Syndicate 218 11
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 Report of the managing agent (the “Managing Agent’s Report”), we also considered
whether the disclosures required by The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate
Accounts) Regulations 2008 have been included.
Based on our work undertaken in the course of the audit, The Insurance Accounts Directive (Lloyd’s
Syndicate and Aggregate Accounts) Regulations 2008 requires us also to report certain opinions and
matters as described below.
Managing Agent’s Report
In our opinion, based on the work undertaken in the course of the audit, the information given in the
Managing Agent’s Report for the year ended 31 December 2025 is consistent with the syndicate annual
accounts and has been prepared in accordance with applicable legal requirements.
In light of the knowledge and understanding of the syndicate and its environment obtained in the course of
the audit, we did not identify any material misstatements in the Managing Agent’s Report.
Responsibilities for the syndicate annual accounts and the audit
Responsibilities of the Managing Agent for the syndicate annual accounts
As explained more fully in the Statement of managing agent’s responsibilities, the Managing Agent is
responsible for the preparation of the syndicate annual accounts in accordance with the applicable
framework and for being satisfied that they give a true and fair view. The Managing Agent is also responsible
for such internal control as they determine is necessary to enable the preparation of syndicate annual
accounts that are free from material misstatement, whether due to fraud or error.
In preparing the syndicate annual accounts, the Managing Agent is responsible for assessing the syndicate’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless it is intended for the syndicate to cease operations, or it has
no realistic alternative but to do so.
Auditors’ responsibilities for the audit of the syndicate annual accounts
Our objectives are to obtain reasonable assurance about whether the syndicate annual accounts as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these
syndicate annual accounts.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design
procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of
irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities,
including fraud, is detailed below.
Independent auditors’ report to the members of Syndicate 218 (continued)
For the year ended 31 December 2025
Reports & Accounts Syndicate 218 12
Based on our understanding of the syndicate and industry, we identified that the principal risks of non-
compliance with laws and regulations related to breaches of regulatory principles, such as those governed
by the Prudential Regulation Authority and the Financial Conduct Authority, and those regulations set by
the Council of Lloyd’s, and we considered the extent to which non-compliance might have a material effect
on the syndicate annual accounts. We also considered those laws and regulations that have a direct impact
on the syndicate annual accounts such as The Insurance Accounts Directive (Lloyd’s Syndicate and
Aggregate Accounts) Regulations 2008 and the Lloyd’s Syndicate Instructions. We evaluated
management’s incentives and opportunities for fraudulent manipulation of the syndicate annual accounts
(including the risk of override of controls), and determined that the principal risks were related to
management bias in accounting estimates and the posting of inappropriate journals. . Audit procedures
performed by the engagement team included:
• Discussions with the Audit Committee, management, internal audit, and the syndicate’s compliance
function, including consideration of known or suspected instances of non-compliance with laws and
regulation and fraud;
• Assessment of any matters reported on the Managing Agent’s whistleblowing helpline and
management’s investigation of such matters;
• Reviewing relevant meeting minutes including those of the Board, the Audit Committee, the Risk
Management Committee, the Reserving Committee, and correspondence with regulatory
authorities, including Lloyd’s of London, the Financial Conduct Authority and the Prudential
Regulatory Authority;
• Reviewing, and challenging where appropriate, the assumptions and judgements made by
management in their significant accounting estimates, in particular in relation to the estimation of
claims outstanding, with a focus on the incurred but not reported (“IBNR”) claims;
• Designing audit procedures to incorporate unpredictability around the nature, timing or extent of
our testing; and
• Identifying and testing journal entries based on selected fraud risk criteria, in particular journal
entries posted with unusual account combinations.
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 members 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.
Independent auditors’ report to the members of Syndicate 218 (continued)
For the year ended 31 December 2025
Reports & Accounts Syndicate 218 13
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Statement of profit or loss and comprehensive income –
technical account general business
For the year ended 31 December 2025
Note
2025
£000
2024
£000
Earned premium, net of reinsurance
Gross premium written 5 503,672 490,052
Outward reinsurance premium (63,852 ) (55,335 )
Premium written, net of reinsurance 439,820 434,717
Change in the provision for unearned premium:
Gross amount 11 (8,280 ) (22,740 )
Reinsurers’ share 11 (7,748 ) (2,674 )
Change in the net provision for unearned premium (16,028 ) (25,414 )
Earned premium, net of reinsurance 423,792 409,303
Allocated investment return transferred from the non-technical
account 6 31,323 24,375
Claims incurred, net of reinsurance
Claims paid:
Gross amount 11 (243,092 ) (261,864 )
Reinsurers’ share 11 7,073 19,531
Net claims paid (236,019 ) (242,333 )
Change in the provision for claims:
Gross amount 11 10,098 47,985
Reinsurers’ share 11 12,973 (38,906 )
Change in the net provision for claims 23,071 9,079
Claims incurred, net of reinsurance (212,948 ) (233,254 )
Net operating expenses 7 (150,490 ) (129,514 )
Balance on the technical account for general business 91,677 70,910
All amounts relate to continuing operations.
The notes on pages 21 to 55 form an integral part of these annual accounts.
Statement of profit or loss and comprehensive income – technical account for general business
For the year ended 31 December 2025
Reports & Accounts Syndicate 218 15
Statement of profit or loss and comprehensive income – non-
technical account
For the year ended 31 December 2025
Note | 2025 £000 | 2024 £000 | |
| Balance on the technical account for general business | | | |
Investment return | |||
| Investment income | | | |
| Realised gains on investments | | | |
| Unrealised gains on investments | | | |
| Investment expenses and charges | ( | ( | |
| Total investment return | | | |
Allocated investment return transferred to technical account for general business | 6 | ( | ( |
| Gain/(loss) on foreign exchange | 10 | | ( |
| Profit for the financial year | | | |
| Total comprehensive income for the year | | |
The notes on pages 21 to 55 form an integral part of these annual accounts.
Statement of profit or loss and comprehensive income – non-technical account
For the year ended 31 December 2025
Reports & Accounts Syndicate 218 16
Balance sheet – assets
At 31 December 2025
Note
2025
£000
2024
£000
Investments
Financial investments 9 604,361 502,882
Deposits with ceding undertakings 560 602
Reinsurers’ share of technical provisions
Provision for unearned premium 11 22,049 29,797
Claims outstanding 11 241,925 228,951
Debtors
Debtors arising out of direct insurance operations 14 90,519 85,933
Debtors arising out of reinsurance operations 15 14,772 18,460
Other debtors 16 12,990 56,286
Other assets
Cash at bank and in hand 17 12,997 21,169
Other 147 145
Prepayments and accrued income
Accrued interest and rent 7,564 48
Deferred acquisition costs 13 41,036 39,621
Other prepayments and accrued income 19 9,656 15,405
Total assets 1,058,576 999,299
The notes on pages 21 to 55 form an integral part of these annual accounts.
Balance sheet – assets
At 31 December 2025
Reports & Accounts Syndicate 218 17
Balance sheet – liabilities
At 31 December 2025
Note
2025
£000
2024
£000
Members’ balances 110,210 30,582
Total capital and reserves 110,210 30,582
Provision for unearned premium 11 243,278 234,998
Claims outstanding 11 591,173 601,268
Technical provisions 834,451 836,266
Creditors arising out of direct insurance operations 20 5,607 4,167
Creditors arising out of reinsurance operations 21 58,447 58,092
Other creditors including taxation and social security 22 45,094 67,904
Creditors 109,148 130,163
Accruals and deferred income 4,767 2,288
Total liabilities 948,366 968,717
Total liabilities, capital and reserves 1,058,576 999,299
The notes on pages 21 to 55 form an integral part of these annual accounts.
The Syndicate annual accounts on pages 15 to 55 were approved by the Board on 11 February 2026 and
signed on behalf of the Syndicate’s Managing Agent by:
Charlotte Constable
Director
11 February 2026
Balance sheet – liabilities
At 31 December 2025
Reports & Accounts Syndicate 218 18
Statement of changes in members’ balances
For the year ended 31 December 2025
2025
£000
2024
£000
Members’ balances brought forward at 1 January 30,582 (23,224 )
Total comprehensive income for the year 92,135 70,165
Payments of profit to members’ personal reserve funds: (12,138 ) (16,003 )
Members agent fees (369 ) (356 )
Members’ balances carried forward at 31 December 110,210 30,582
Members participate in syndicates by reference to years of account and their ultimate result. Assets and
liabilities are assessed with reference to policies incepting in that year of account.
The notes on pages 21 to 55 form an integral part of these annual accounts.
Statement of changes in members’ balances
For the year ended 31 December 2025
Reports & Accounts Syndicate 218 19
Cash flow statement
For the year ended 31 December 2025
Note | 2025 £000 | 2024 £000 | |
Cash flows from operating activities | |||
Profit for the financial year | | | |
Adjustments: | |||
Decrease in gross technical provisions | ( | ( | |
(Increase)/decrease in reinsurers’ share of gross technical provisions | ( | | |
Decrease/(increase) in debtors | | ( | |
(Decrease)/increase in creditors | ( | | |
Movement in other assets/liabilities | | | |
| Investment return | 6 | ( | ( |
Foreign exchange | | | |
Net cash generated in operating activities | | | |
Cash flows from investing activities | |||
Purchase of equity and debt instruments* | ( | ( | |
Sale of equity and debt instruments | | | |
Investment income received | | | |
Other | | | |
Net cash used in investing activities | ( | ( | |
Cash flows from financing activities | |||
Distribution of profit | ( | ( | |
Other (members' agent fees) | ( | ( | |
Net cash used in financing activities | ( | ( | |
Net increase/(decrease) in cash at bank and in hand* | | ( | |
Cash and cash equivalents at the beginning of the year | | | |
| Cash and cash equivalents at the end of the year | 17 | | |
The notes on pages 21 to 55 form an integral part of these annual accounts. | |||
*Prior year reclassification to comply with the requirements of Lloyd’s Syndicate Accounts Instructions (version 3.1 issued 1 December 2025). ‘Purchase
of equity and instruments‘ has been updated to remove ‘Other’.
Cash flow statement
For the year ended 31 December 2025
Reports & Accounts Syndicate 218 20
Notes to the accounts
1. Basis of preparation
Syndicate 218 (the "Syndicate") comprises a group of members of the Society of Lloyd's that underwrites
insurance business in the London Market. The address of the Syndicate’s managing agent IQUW Syndicate
Management Limited (the "Managing Agent") is 30 Fenchurch Street, London, EC3M 3BD. The principal
activity of the Syndicate is to underwrite a range of specialist motor insurance business at Lloyd’s, and it is
regarded as a specialist provider of motor solutions in several niche areas.
The financial statements have been prepared in accordance with the Insurance Accounts Directive (Lloyd’s
Syndicate and Aggregate Accounts) Regulations 2008, and applicable Accounting Standards in the United
Kingdom and the Republic of Ireland, including Financial Reporting Standard 102 (FRS 102). FRS 102
requires the application of Financial Reporting Standard 103 (FRS 103) in relation to insurance contracts,
and the Lloyd’s Syndicate Accounts Instructions Version 3.1 as modified by the Frequently Asked Questions
Version 1.0 issued by Lloyd’s.
Going concern
The Syndicate has financial resources to meet its financial needs and manage its portfolio of insurance risk.
The directors have continued to review the business plans, liquidity and operational resilience of the
Syndicate and are satisfied that the Syndicate is well positioned to manage its business risks in the current
economic environment. The Syndicate 2026 year of account has opened and the directors have concluded
that the Syndicate has sufficient resources to, and a reasonable expectation that it will, open a 2027 year of
account. The Syndicate has sufficient capital for each year of account in its Funds at Lloyd’s ("FAL"). There is
no intention to cease underwriting or cease the operations of the Syndicate.
Accordingly, the directors of the Managing Agent continue to adopt the going concern basis in preparing
the annual report and financial statements.
On 29 October 2025, Starr International, Inc ("Starr"), a global investment and insurance organisation,
announced that it had entered into a definitive agreement to acquire IQUW Holdings Bermuda Limited, the
ultimate parent company of the IQUW Group, and all of its subsidiaries, including the Managing Agent
IQUW Syndicate Management Ltd. Starr Insurance and Reinsurance Limited, a Bermuda exempted
company, registered as a class 4 insurance company under The Insurance Act 1978, will be the acquiring
entity. The transaction is expected to close in the first half of 2026, subject to regulatory approvals and
closing conditions.
2. Judgements and key sources of estimation uncertainty
In the application of the accounting policies, which are described in note 3, the directors are required 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.
The following judgements, estimations and assumptions have had the most significant effect on amounts
recognised in the financial statements.
Valuation of general insurance contract liabilities
The estimation of the ultimate liability arising from claims made under insurance contracts is the Syndicate’s
most critical accounting estimate. The carrying amount of the liability is disclosed in note 11. For general
insurance contracts, estimates are made for the expected ultimate cost of claims notified as at the balance
sheet date and the cost of claims incurred but not yet reported. It can take a significant period before the
ultimate cost of claims can be established with certainty, and the final outcome may be better or worse than
that provided. The estimation of these claims is based on historical experience projected forward, and where
the syndicate does not have sufficient historical experience this is supplemented with other data sources
such as relevant market loss data or cedant notifications of their own underlying loss experience. The
Syndicate’s estimate of claims and of related claims handling costs is mainly achieved through the
Notes to the accounts
For the year ended 31 December 2025
Reports & Accounts Syndicate 218 21
application of several commonly accepted actuarial projection methodologies based on the estimation of
the following:
• paid claims development, where payments to date are extrapolated based upon market data and
observed development of earlier years;
• the development of claims based on seasonally adjusted exposure curves;
• application of frequency/severity methods for large claims;
• incurred claims development, where incurred claims to date for each year are extrapolated based upon
observed development of earlier years;
• expected ultimate loss ratios, which are estimated using an average of (developed) years, the averaging
period varies depending on reserving subclass, but is based on historic claims trends and risk
characteristics;
• quarterly underwriter updates on expected premium and associated rating assumptions; and
• inflationary assumptions are set so as to allow for both exposure inflation and claims inflation. The
former is based on an appropriate economic index, relative to the class of business, and the latter with
additional excess inflation and social inflation allowances.
The Syndicate uses several statistical methods to incorporate the assumptions made to estimate the
ultimate cost of claims. The Syndicate has not applied these methods mechanically. The final selections are
not necessarily the result of a single method, and in some cases are selected using a weighted average of
different methods. From 2023, inflationary impacts continued to be over and above experience seen in
historic data for damage and injury claims. During 2025, inflation on damage claims was lower than
observed in recent years and no adjustment is made in reserves. A higher uncertainty remains in injury
claims and therefore an excess inflation approach is undertaken, where an uplift is applied based on internal
and external data relating to rising care costs and award inflation for injury claims.
The estimation of the ultimate cost of bodily injury claims is a complex process that cannot be performed
using conventional actuarial techniques alone. The cost of bodily injury claims, especially for the more
serious injuries, often involves a legal process where compensation awards are made by the courts. The
outcomes in these cases are hard to predict as case law evolves. The process is further complicated by the
imposition of Periodical Payment Order (“PPO”) settlements by the court or requested by the claimant.
PPO settlements have an annuity-type structure, typically paid annually over the claimant’s life span. PPO
liabilities are analysed separately. For each claim that has settled as a PPO, the future costs are projected
based on a medical expert’s assessment of life expectancy, adjusted for wage inflation and investment
return. The long term wage inflation assumption is 3.0% (2024: 3.0%) with an elevated assumption for the
next five years to reflect current market conditions, based on publicly available information, such as the
Annual Survey of Hours and Earning by the Office for National Statistics. The long term investment
assumption is 3.0% (2024: 3.0%) based on the current yields to maturity of appropriately matched assets
held in the investment portfolio.
The claims provisions are initially calculated gross of any reinsurance recoveries. A separate estimate is
made of the amounts recoverable from all the Syndicate’s reinsurance arrangements, having due regard to
collectability. Claims provisions are subject to regular review, both within the Syndicate and externally.
The Syndicate’s management discusses and challenges the actuarial best estimate and selected booked
claims provisions at the quarterly Management Agent's Reserve Committee (“RC”) and also at the Audit
Committee (“AC”), the membership of which comprises exclusively non-executive directors with significant
insurance experience. External actuaries are also engaged to calculate an independent best estimate of the
ultimate cost of claims at 31 December and present a Statement of Actuarial Opinion (“SAO”) against which
the Syndicate’s booked reserves are assessed.
Notes to the accounts (continued)
For the year ended 31 December 2025
Reports & Accounts Syndicate 218 22
3. Summary of significant accounting policies
The principal accounting policies applied in the preparation of these annual accounts are set out below.
These policies have been consistently applied to all years presented, unless otherwise stated.
(i) Gross premium written
Gross premium written comprises premium on contracts incepted during the financial year as well as
adjustments made in the year to premium written in prior accounting periods. Premium is shown gross of
brokerage payable and excludes taxes and duties levied on it.
Premium written includes an estimate of gross premium written during the year. For certain contracts,
premium is initially recognised based on estimates of ultimate premium. This occurs where pricing is based
on variables which are not known with certainty at the point of binding the policy. In determining the
estimated premium, use is made of information provided by brokers and coverholders, past underwriting
experience, the contractual terms of the policy, and prevailing market conditions. Subsequently,
adjustments to those estimates arise as updated information relating to those pricing variables becomes
available, for example due to declarations obtained on binding authority contracts, reinstatement premium
on reinsurance contracts, or other policy amendments. Such adjustments are recorded in the period in
which they are determined, and impact both gross premium written in the income statements and premium
received from insureds and cedants recorded on the balance sheet.
(ii) Unearned premium
Written premium is recognised as earned according to the risk profile of the policy. The provision for gross
unearned premium in addition to the unearned premium held within reinsurers’ share of technical
provisions comprises the proportion of gross and outwards reinsurance premium written, which is estimated
to be earned in the following or subsequent financial years, computed using the daily pro-rata method
weighted by the risk profile of the underlying policies.
(iii) Reinsurance premium ceded
Outwards reinsurance premium comprises premium on contracts incepted during the financial year.
Outwards reinsurance premium is also disclosed gross of commissions and profit participations recoverable
from reinsurers. Written outwards reinsurance premium is recognised as earned according to the coverage
period and in line with the risk profile to which the inwards business being protected relates.
Reinsurance structured contracts within the main motor programme are administered differently from
traditional excess of loss ("XoL") contracts. In these structured contracts, a margin is paid to reinsurers, while
the remaining funds are retained by the reinsured for reinsurance recoveries as claims are settled. These
contracts feature a profit commission due back to the reinsured, calculated based on the underwriting
result minus the margin, plus interest credit as specified within each contract. However, if losses exceed
expectations, this could result in increased costs. Reserving judgement is applied to calculate incurred but
not reported ("IBNR") claims, determining the ultimate reinsurance split by contract and layer. Profit
commission is recognised and booked on an earned basis within the reinsurance premium and earned line.
(iv) Investment return
Investment return comprises interest, realised and unrealised gains and losses on assets held at fair value
through profit or loss. Fair value realised gains and losses are calculated as the difference between net sales
proceeds and fair value at acquisition. Fair value unrealised gains and losses are calculated as the difference
between the current fair value at the balance sheet date and the fair value at acquisition or at previous
remeasurement date, adjusted for by excluding previously recognised unrealised gains and losses of those
financial assets disposed of in the accounting period.
The returns on pooled investments arising in each calendar year are apportioned to years of account open
during the calendar year in proportion to average funds available for investment on each year of account.
Notes to the accounts (continued)
For the year ended 31 December 2025
Reports & Accounts Syndicate 218 23
Investment return is initially recorded in the statement of comprehensive income non-technical account. A
transfer is made from the statement of comprehensive income non-technical account to the statement of
comprehensive income-technical account for general business. Investment return has been wholly
allocated to the technical account as all investments relate to underwriting activities.
(v) Operating expenses
Where expenses are incurred by or on behalf of the Managing Agent for the administration of the
Syndicate, these expenses are apportioned appropriately based on type of expense. Expenses that are
incurred jointly are apportioned between the Managing Agent and the Syndicate on bases depending on
the amount of work performed, resources used, and the volume of business transacted. Syndicate operating
expenses are allocated to the year of account for which they are incurred.
(vi) 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
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 during the year are included in the
balance sheet under the heading ‘Members’ balances’. No provision has been made for any overseas tax
payable by members on underwriting results.
(vii) Foreign currency
The functional currency of the Syndicate is Sterling which is the currency of the primary economic
environment in which the Syndicate operates.
Transactions denominated in foreign currencies are translated into Sterling at the rates of exchange ruling
at the date of the transaction. Foreign exchange gains and losses resulting from the settlement of such
transactions and from the re-translation at year-end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognised in the statement of profit or loss and comprehensive
income non-technical account for the period.
(viii) Financial instruments
The Managing Agent has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.
Financial instruments are recognised in the balance sheet at such time as the Syndicate becomes a party to
the contractual provisions of the financial instrument. A financial asset is derecognised when the contractual
rights to receive cash flows from the financial assets expire, or where the financial assets have been
transferred, together with substantially all the risks and rewards of ownership. Financial liabilities are
derecognised if the Syndicate’s obligations specified in the contract expire, are discharged or cancelled.
Financial assets
The Syndicate has classified these assets into the following categories: financial assets at fair value through
profit or loss, and loans and receivables. Syndicate loans to the central fund are measured at fair value
through profit and loss.
Financial investments
Financial investment assets are designated at fair value through profit or loss on initial recognition where it
is the Syndicate’s strategy to manage those financial investments on a fair value basis. Internal reporting and
performance measurement of these assets are also on a fair value basis. Note 9 sets out the amount of each
class of financial asset that has been designated at fair value through profit or loss.
Notes to the accounts (continued)
For the year ended 31 December 2025
Reports & Accounts Syndicate 218 24
Investments carried at fair value through profit or loss are initially recognised at fair value with any
associated transaction costs being expensed through the statement of comprehensive income – non-
technical account.
If the market for an investment is not active, the valuation is based upon the net asset values of underlying
holdings, which are independently sourced. The fair value of listed equity and debt securities is determined
by reference to their quoted bid price at the balance sheet date.
Fair values for unlisted debt securities are estimated at the present value of their future cash flows,
discounted at the market rate of interest at the reporting date.
The fair value of forward exchange contracts is based on their listed market price, if available. If a listed
market price is not available, then fair value is estimated by discounting the difference between the
contractual forward price and the current forward price for the residual maturity of the contract using a risk
free interest rate (based on government bonds).
Loans and receivables
Loans and receivables are recognised at amortised cost, being the fair value of consideration paid plus
incremental direct transaction costs less any provision for impairments.
(ix) Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term highly
liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts,
when applicable, are shown within current borrowings in liabilities. For the purpose of the cash flow
statement, cash and cash equivalents consist of cash and cash equivalents as defined above, net of
outstanding bank overdrafts.
(x) Deferred acquisition costs
The costs of acquiring new business, which are incurred during the financial year, but where the benefit of
such costs will be obtained in subsequent accounting periods, are deferred, and recognised as an asset to
the extent that they are recoverable out of margins in future matching revenues. All other costs are
expensed when they are incurred.
In respect of insurance contracts, acquisition costs comprise direct and indirect costs incurred in writing
new contracts. Deferred acquisition costs are amortised over the life of the policy in line with the
recognition of earned premium.
All deferred acquisition costs are tested for recoverability at each reporting date. The carrying values are
adjusted to recoverable amounts and any resulting impairment losses are charged through the profit and
loss account.
(xi) Claims provision and related recoveries
Gross claims incurred comprise the estimated cost of all claims occurring during the year, whether reported
or not, including related direct and indirect claims handling costs and adjustments to claims incurred from
previous years.
The provision for claims outstanding is assessed on an individual case basis, and is based on the estimated
ultimate cost of all claims notified but not settled by the balance sheet date, together with a provision for
related claims handling costs. The provision also includes an estimated cost of claims IBNR at the balance
sheet date based on statistical methods.
These methods generally involve projecting from past experience the development of claims over time to
form a view of the likely ultimate claims to be experienced for more recent underwriting, having regard to
variations in the business accepted and the underlying terms and conditions. For the most recent years,
where a high degree of volatility arises from projections, estimates may be based in part on output from
Notes to the accounts (continued)
For the year ended 31 December 2025
Reports & Accounts Syndicate 218 25
premium rating and other pricing models of business accepted, together with assessments of underwriting
conditions.
The reinsurers’ share of the provision for claims is based on the amount of outstanding claims and
projections for IBNR, net of estimated irrecoverable amounts, having regard to the reinsurance programme
in place for the class of business, the claims experience for the year and the current rating of the reinsurance
companies involved. Several statistical methods are used to assist in making these estimates.
The two most critical assumptions with regards to claims provisions are that the past is a reasonable
predictor of the likely level of future claims development, and that the premium rating and other pricing
models used for current business are fair reflections of the likely level of ultimate claims to be incurred.
The directors consider that the provision for gross claims and related reinsurance recoveries is fairly stated
based on the information currently available to them. However, the ultimate liability will vary because of
subsequent information and future events and this may result in significant adjustments to the amounts
provided. Adjustments to the amounts of claims provisions established in prior years are reflected in the
annual accounts for the period in which the adjustments are made. The methods used, and the estimates
made, are reviewed regularly.
(xii) Discounted claims provision
Large loss injury awards comprise either a lump-sum payment, which is calculated as the present value of
the claimant’s loss and expense, or as a structured settlement, typically under a PPO awarded by the courts
or agreed with the claimant.
With respect to PPOs, due to the long delay between the inception date of the policy and the final
settlement of the claim, the outstanding claims provisions are discounted to take account of the expected
future investment income on the assets held to cover the payments (see note 2 for further details).
(xiii) Unexpired risks provision
A provision for unexpired risks is made where claims, related claims handling costs and other related
expenses arising after the end of the financial year in respect of contracts concluded before that date are
expected to exceed the unearned premiums on these contracts, after the deduction of any deferred
acquisition costs.
The provision for unexpired risks is calculated by reference to classes of business that are managed
together. No account is taken of the relevant investment return arising from investments supporting the
unexpired premiums and unexpired risk provisions.
(xiv) Pension costs
IQUW Administration Services Limited (“IQUW ASL”) employs all UK based employees and operates a
defined contribution scheme. Pension contributions relating to staff recharged to the Syndicate via IQUW
Syndicate Services Limited (“IQUW SSL”) are included within net operating expenses.
(xv) Profit commission
The profit commission calculation is subject to a two-year deficit clause. For the purpose of calculating the
profit commission any reporting year of account losses can be offset against open year of account profits
for a maximum of two years.
(xvi) Deposit components of reinsurance contracts
Where a deposit component exists in a reinsurance contract, it is not unbundled and is recorded as part of
the reinsurance assets. Any interest payable on the deposit component is accrued annually at the effective
interest rate.
Notes to the accounts (continued)
For the year ended 31 December 2025
Reports & Accounts Syndicate 218 26
(xvii) Reinsurance assets and liabilities
Amounts due to and from reinsurers are accounted for in a manner consistent with the insured policies and
in accordance with the relevant reinsurance contract. Reinsurance assets are assessed for impairment at
each balance sheet date. A reinsurance asset is deemed impaired if there is objective evidence, because of
an event that occurred after its initial recognition, that the Syndicate may not recover all amounts due, and
that the event has a reliably measurable impact on the amounts that the Syndicate will receive from the
reinsurer. Objective factors that are considered when determining whether a reinsurance asset or group of
reinsurance assets may be impaired include, but are not limited to the following:
• negative rating agency announcements of reinsurers;
• significant reported financial difficulties of reinsurers;
• actual breaches of credit terms such as persistent late payment or actual default; and
• adverse economic or regulatory conditions that may restrict future cash flows and asset
recoverability.
Impairment losses on reinsurance assets are recognised in the profit and loss account.
(xviii) Bad debt
The bad debt provision is calculated for debtors over 90 days outside credit terms using an agreed sliding
scale percentage. In addition to the general provision, a top-up is made by way of a specific provision where
specific information is available to suggest a debtor may be unable or unwilling to settle its debt to the
Syndicate. The provision is calculated on a case-by-case basis. Bad debt provisions are recognised in the
profit and loss account.
Notes to the accounts (continued)
For the year ended 31 December 2025
Reports & Accounts Syndicate 218 27
4. Risk management
The Syndicate’s overall appetite for accepting and managing varying classes of risk is defined by the
Managing Agent’s Board (the “Board”). The Board has developed a governance framework and has set risk
management policies and procedures which include risk identification, risk assessment, risk response, risk
monitoring, and risk reporting. The objective of these policies and procedures is to protect the Syndicate’s
members, policyholders and other stakeholders from negative events that could hinder the Syndicate’s
delivery of its contractual obligations and its achievement of sustainable profitable performance.
The Board exercises oversight of the development and operational implementation of its risk management
policies and procedures through the Managing Agent’s Risk and Compliance Committee (“RCC”). The Risk
Management Function under the stewardship of the Chief Risk Officer (“CRO”), coordinates the risk
management policies and procedures and supports the Board and the RCC. The Executive Committee
operates regular oversight of the Risk Management Function activities and outcomes. Ongoing compliance
is monitored through the Internal Audit function, which is shared with the other entities in the IQUW Group,
and which has operational independence, a charter and clear upwards reporting structures back into the AC
and the Board.
The Board’s risk appetites and tolerances consider risk capacity, capital adequacy, prevailing regulatory and
legislative adherence, and the fair treatment and protection of customer and stakeholder interests. Risk
metrics and measures of the business are monitored against the risk appetites and reported to the RCC and
Board quarterly.
The Board is ultimately responsible for ensuring that the Risk Management Framework (“RMF”) is in place
and adhered to. Responsibilities are then delegated through the Three Lines of Defence Model across the
IQUW Group, summarised as follows:
• Line 1: Business units operating within a framework of internal controls underpinned by policies,
procedures, and senior management oversight with direct responsibility for risk management and
controls;
• Line 2: Risk Management and Compliance functions ensure that the RMF is effective, and that the
Syndicate operates within its legal and regulatory boundaries. Employees in Line 2 coordinate, facilitate
and oversee the effectiveness and integrity of the RMF. As a key input to decision making, the RMF
focusses on assuring the Board that the risk profile is in line with expectations, escalating all material
risk and capital issues to the Board, and providing input to, challenge and oversight of Line 1 decision
making; and
• Line 3: Internal Audit provides independent assurance to the Board via the AC as to the effectiveness
of the internal control environment. Employees in Line 3 provide independent assurance and challenge
across all business functions in respect of the integrity and effectiveness of the RMF.
The principal sources of risk relevant to the Syndicate fall into three broad categories: 4.1 Insurance Risk, 4.2
Financial Risk, and 4.3 Operational Risk.
4.1 Insurance risk
The predominant risk to which the Syndicate is exposed is insurance risk, which is assumed through the
underwriting process. Insurance risk is defined as the risk of fluctuations in the frequency, severity and
timing of insured events and claims settlements relative to expectation. Insurance risk can be sub-
categorised into: (a) underwriting risk, including the risk arising from risk selection and pricing, systemic
insurance losses, and the insurance cycle and competition. Underwriting risk also encompasses the risk that
insurance premiums will not be sufficient to cover future claims and associated expenses, as well as people,
process, and system risks directly related to underwriting; and (b) reserving risk, defined as the risk that
reserves set in respect of insurance claim losses are ultimately insufficient to fully settle these claims and
associated expenses.
Notes to the accounts (continued)
For the year ended 31 December 2025
Reports & Accounts Syndicate 218 28
4.1 (a) Underwriting risk
The Board sets the Syndicate’s underwriting strategy and risk appetite, seeking to benefit from identified
opportunities considering other relevant anticipated market conditions.
The Syndicate aims to manage underwriting risk:
• to achieve profits and return on equity by ensuring that insurance risks are carefully selected in
accordance with the underwriting strategy and risk appetite tolerances, underwritten in accordance
with risk strategy and priced to reflect the underlying risk; and
• to mitigate insurance risk using optimal reinsurance arrangements.
4.1 (a) (i) Underwriting strategy
The Syndicate provides specialist motor insurance to personal and commercial customers, principally within
the UK. The underwriting proposition is designed to meet the needs of customers whose requirements are
unique, more complex, or who have a passion for their vehicle, as well as those who depend upon it for their
livelihood. Target segments include agricultural and commercial risks, larger commercial fleets, private
collections, enthusiast and classic cars, and non-standard retail business. The Syndicate also supports the
evolving motor market, including the shift towards short-term insurance solutions and developments in
autonomous vehicle technology. The overarching underwriting strategy remains focused on writing for
profit rather than volume.
The objective is to maintain a well-diversified underwriting portfolio in terms of risk type, exposure level,
demographic profile, and geography, while ensuring that all risks underwritten meet approved underwriting
criteria. The Syndicate places strong emphasis on a data-driven approach to pricing and underwriting, with
regular reviews of pricing adequacy and performance against the business plan.
Specific underwriting objectives are prepared and reviewed by the Managing Agent to translate the
underwriting strategy into clear, measurable actions and targets. These objectives are approved ahead of
each underwriting year. Performance against them is continually monitored and reported quarterly to the
Board.
The Syndicate considers underwriting risk at an individual contract level for material policies and from a
portfolio perspective where the risks assumed in similar classes of policies are aggregated and the exposure
evaluated considering historical portfolio experience and prospective factors.
Policies are predominantly annual contracts, enabling repricing based on the latest account experience,
external market conditions, and individual risk performance. While motor pricing is closely linked to the
characteristics of each individual risk, the Syndicate’s underwriting strategy recognises that writing a large
and diverse portfolio of largely uncorrelated individual risks reduces the variability of overall results, even
though variability at the level of any single policy remains. The strategy therefore seeks to accept a
sufficiently large population of risks within each product class to stabilise overall portfolio outcomes.
The delegation of underwriting authority to specific individuals is subject to regular review. All underwriting
staff are set strict parameters in relation to the levels and types of business they can underwrite, based on
individual levels of experience and competence.
4.1 (a) (ii) Sensitivity to insurance risk
The 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 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.
Notes to the accounts (continued)
For the year ended 31 December 2025
Reports & Accounts Syndicate 218 29
General insurance business sensitivities as of
31 December 2025
Sensitivity
+2.5% £000 -2.5% £000 +5.0% £000 -5.0% £000
Claims outstanding - gross of reinsurance
605,952 576,394 620,732 561,614
Claims outstanding - net of reinsurance
357,979 340,517 366,710 331,786
General insurance business sensitivities as of
Sensitivity
+2.5% £000 -2.5% £000 +5.0% £000 -5.0% £000
Claims outstanding - gross of reinsurance
616,300 586,236 631,332 571,205
Claims outstanding - net of reinsurance
381,625 363,010 390,933 353,702
4.1 (a) (iii) Claims management
Claims management risk relates to the effective, timely and accurate handling of claims once they are
notified, and is distinct from reserving risk, which concerns the adequacy of financial provisions for future
claim payments. The objective of the claims management process is to ensure that all notified claims are
assessed fairly, managed efficiently and settled in accordance with policy terms, regulatory requirements
and internal authority levels.
Claims management encompasses first notification of loss, investigation, assessment of coverage and
liability, settlement, and recovery processes. Operational risks in this area include delays in settlement,
incorrect coverage decisions, and failures in fraud detection or delegated claims oversight. The scrutiny of
claims is facilitated by using various technical aids, such as weather validation and fraud databases, and by
using claims specialists.
Additional tools and controls include structured claims triage processes, regular internal claims audits and
quality assurance reviews. Claims performance is monitored through management information, KPIs and
oversight by the Claims function, with governance reporting to senior management and relevant
committees.
4.1 (a) (iv) Outwards reinsurances
The Syndicate mitigates underwriting risk by purchasing reinsurance. Reinsurance protection, such as XoL
cover, is purchased to manage the effect of individual large losses, especially injury awards where the cost of
care required can be significant, and of catastrophes or unexpected concentrations of risk.
The Syndicate purchases motor XoL reinsurance contracts to mitigate the impact of individual large claims
and the aggregation of claims from a single event. For underwriting years 2020–2024, XoL provides cover
for losses exceeding £1.0m, extending to unlimited, with the Syndicate retaining 20% of the first layer
(£4.0m xs £1.0m). The 2025 and 2026 programmes provide protection for losses above £2.0m, with the
Syndicate retaining 25% of the £3.0m xs £2.0m layer.
Alongside traditional XoL placements, the Syndicate also utilises single year and multi year structured XoL
contracts across underwriting years 2020 to 2026. These contracts provide protection up to defined
thresholds and are designed to manage loss experience over time. The first layers of the programme
therefore combine traditional and structured placements to diversify risk transfer and maintain stability in
reinsurance cost and coverage.
Reinsurance purchases follow strict protocols and require sign-off by senior underwriting and reinsurance
leadership, with Board approval for the overall strategy and exceptional cases.
Although the Syndicate has reinsurance arrangements in place to reduce its insurance risk, these
arrangements do not relieve it of its ultimate liability to policyholders and as such, the Syndicate is exposed
to credit risk to the extent that any reinsurer is unable to meet its obligations assumed under such
reinsurance arrangements. The Syndicate’s exposure to this credit risk is discussed in note 4.2(a)(ii).
Notes to the accounts (continued)
For the year ended 31 December 2025
Reports & Accounts Syndicate 218 30
4.1 (b) Reserving risk
The Syndicate’s procedures for estimating the outstanding costs of settling insured losses at the balance
sheet date, including IBNR, are detailed in note 2.
The Syndicate aims to manage reserving risk:
• to minimise reserve volatility through robust reserving and application of actuarial modelling
approaches; and
• to monitor reserve adequacy and performance on an ongoing basis.
The Syndicate undertakes both an internal and external actuarial review of the claims provisions,
independent of the underwriting teams. The SAO on claims reserve adequacy, required by Lloyd’s, is
provided by an independent external actuarial firm.
The Syndicate’s estimates are subject to regular and rigorous review by senior management from all areas of
the business including independent actuaries and Audit Committee. The final provision is approved by the
Managing Agent’s Board.
Booked reserves include a net margin of £10.2m (2024: £18.6m). This is the margin above the best estimate
to mitigate the uncertainty within the reserve estimates. As the best estimate matures and becomes more
certain, the management margin is gradually released in line with the reserving policy. The decrease in the
year reflects the release of the specific margin established in the prior year following updates to the
reserving model and related assumption changes, which had prudently allowed for a reduced number of
modelled cases.
4.1 (b) (i) Sources of uncertainty in the estimation of future claim payments
Claims on motor insurance contracts are payable on a loss-occurrence basis. The Syndicate is liable for all
insured events that occur during the term of the contract, even if the loss is reported after the end of the
contract term. Policyholders will tend to report a claim relatively soon after a road traffic accident, but it may
take longer for claims from third parties to be reported. An element of the claims provision therefore relates
to claims which are IBNR. The Syndicate pays on these contracts the monetary awards agreed or awarded
for property damage and bodily injury suffered by third parties involved in road traffic accidents with our
policyholders, as well as any property damage suffered by our policyholders (in line with the Road Traffic
Act 1988). Bodily injury awards are typically settled over a longer period than property damage claims. Such
bodily injury awards cover compensation for temporary or permanent disability together with the lost
earnings and rehabilitation expenses that the injured party suffers because of the accident. Recurring
annual payments are indexed in line with inflation, to cover the costs of care until the end of the claimant’s
life.
The estimated cost of claims includes direct expenses to be incurred in settling claims, net of any expected
subrogation and/or salvage value and other recoveries. All reasonable steps are taken to ensure that
appropriate information regarding claims exposures is available. However, given the uncertainty in
establishing claims provisions, it is likely that the final outcome will prove to be different from the original
liability established. The liability for these contracts comprises a provision for IBNR, a provision for reported
claims not yet paid, and a provision for unexpired risks at the end of the reporting period. The estimation of
IBNR is generally subject to a greater degree of uncertainty than the estimation of the cost of settling claims
already notified. In estimating the liability of the cost of reported claims not yet paid, any information
available from loss adjusters and information on the cost of settling claims with similar characteristics in
previous periods is considered. Large claims are assessed on a case-by-case basis and projected separately
to allow for the possible distortive effect of the development and incidence on the rest of the portfolio.
Consideration is given to the operational and systems changes that occur within the business, which would
distort the information of how claims have developed and settled across different periods of time.
Where possible, multiple statistical methods are used to estimate the required level of claims provisions.
This provides a greater understanding of the trends inherent in the claims experience being projected. The
claims projections deriving from the various methodologies also assist in estimating the range of possible
outcomes. The most appropriate estimation method is selected considering the characteristics of the risk
and the extent of the development each year.
Notes to the accounts (continued)
For the year ended 31 December 2025
Reports & Accounts Syndicate 218 31
In December 2024, the Ogden Discount Rate was announced at 0.5% effective January 2025. This
prescribes the discount rate to be applied in the calculation of bodily injury claims. The best estimate
reserves reflect the move to the 0.5% rate.
The following key areas of uncertainties have been identified:
• injury inflation: third party injury claims are impacted by increasing care costs due to a severe lack of
supply to meet demand. Other external factors could continue to increase claim severities for both
injury and damage claims, such as exchange rates and availability of core resources;
• propensities for PPOs: while theoretically the propensity for PPO payments could increase based upon
the new Ogden discount rate, the claimant’s individual circumstances appear to be the predominant
driver of the likelihood of a PPO.
The calculation of claims provisions is performed internally on a best estimate basis, meaning that the
provisions are intended to represent the probability-weighted average of all possible payment outcomes,
and a net margin of £10.2m (2024: £18.6m) is added to help mitigate the uncertainty within the reserve
estimates. Independent calculations are performed by an external actuary, who also provides the Lloyd’s
SAO.
4.1 (b) (ii) Development of claims provision
Historical claims development information is disclosed to illustrate the uncertainty inherent in the
estimation of future claims payments. The tables below show the estimated ultimate cumulative claims,
being incurred claims plus IBNR and claims handling costs, for each successive underwriting year at each
balance sheet date.
The Syndicate seeks to set robust reserves and to minimise volatility in those reserves over time to mitigate
the risk that reserves will be insufficient to meet future claims payments and related expenses. The tables
below show the development of the estimated ultimate claims costs over an extended period to provide an
illustration of the Syndicate’s ability to accurately estimate the ultimate level of claims.
While the information in the tables below provides a historical perspective on the adequacy of unpaid
claims estimates established in previous years, readers of these financial statements are cautioned against
extrapolating past redundancies or deficiencies to current unpaid loss provisions. The Managing Agent
management believes the booked reserves are adequate at the balance sheet date.
Notes to the accounts (continued)
For the year ended 31 December 2025
Reports & Accounts Syndicate 218 32
Analysis of claims development – gross of reinsurance
| Underwriting year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total |
| £000 | £000 | £000 | £000 | £000 | £000 | £000 | £000 | £000 | £000 | £000 | |
At end of reporting year | | | | | | | | | | | |
One year later | | | | | | | | ||||
Two years later | | | | | | | | | |||
Three years later | | | | | | | |||||
Four years later | | | | | | | |||||
Five years later | | | | | | | |||||
Six years later | | | | | |||||||
Seven years later | | | | | |||||||
Eight years later | | | | ||||||||
Nine years later | | | |||||||||
Current estimate of cumulative claims | | | | | | | | | | | |
Provision in respect of prior years | | ||||||||||
Less gross claims paid | ( | ( | ( | ( | ( | ( | ( | ( | ( | ( | ( |
Total gross provision included in the balance sheet | | | | | | | | | | | |
Analysis of claims development – net of reinsurance
| Underwriting year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total |
| £000 | £000 | £000 | £000 | £000 | £000 | £000 | £000 | £000 | £000 | £000 | |
Estimate of ultimate net claims costs: | |||||||||||
At end of reporting year | | | | | | | | | | | |
One year later | | | | | | | | | | | |
Two years later | | | | | | | | | | ||
Three years later | | | | | | | | | |||
Four years later | | | | | | | | ||||
Five years later | | | | | | | |||||
Six years later | | | | | | ||||||
Seven years later | | | | | |||||||
Eight years later | | | | ||||||||
Nine years later | | | |||||||||
Current estimate of cumulative claims | | | | | | | | | | | |
Provision in respect of prior years | | ||||||||||
Less net claims paid | ( | ( | ( | ( | ( | ( | ( | ( | ( | ( | ( |
Total net provision included in the balance sheet | | | | | | | | | | | |
*The initial estimate of gross and net provision at the end of the reporting year is on an earned basis.
Notes to the accounts (continued)
For the year ended 31 December 2025
Reports & Accounts Syndicate 218 33
The Syndicate has taken advantage of the exemption in FRS 103 paragraph 6.3 not to disclose information
about claims development that occurred before the beginning of the earliest period for which the managing
agent presents full comparative information that complies with FRS 103.
4.1 (b) (iii) Sensitivity analysis of reserve estimates
Assumptions about future developments, outcomes or events underpin the setting of the Syndicate’s
booked reserves. The sources of estimation uncertainty are discussed in note 4.1(b)(i). Sensitivity analysis of
the key assumptions provides an illustration of the inherent uncertainty in the reserves as shown below.
The expected loss ratio is the ratio of expected claims to premium:
• propensity for PPOs – a 5 percentage point decrease/increase in the propensity for claims to settle as a
PPO would result in a £0.5m decrease/increase to the net reserves;
• inflation in future care costs - a 1 percentage point decrease/increase in long term rate of wage inflation
underlying PPO claims would result in a £1.1m decrease/increase to the net reserves;
• inflation in repair costs – a 5 percentage point decrease/increase in damage severity in the current year
would result in a £3.5m decrease/increase to the net reserves;
• current underwriting year loss ratio – a 1 percentage reduction/improvement in the loss ratio for the
current underwriting year would result in a £4.4m decrease/increase to the net reserves; and
• previous two underwriting years’ loss ratios – a 1 percentage reduction/improvement in the loss ratios
for each of the last two underwriting years would result in a £7.7m decrease/increase to net reserves.
4.2 Financial risk
The Syndicate is exposed to financial risk through its ownership of financial instruments including financial
liabilities. The Syndicate invests in financial assets to fund obligations arising from its insurance contracts
and other liabilities.
The key financial risk for the Syndicate is that the proceeds from its financial assets and investment result
generated therefrom are not sufficient to fund the obligations. The most important variables that could
result in such an outcome relate to (a) credit risk, (b) market risk, and (c) liquidity risk.
4.2 (a) Credit risk
Credit risk is the risk of loss arising from the failure of a counterparty to fulfil its payment obligations,
including failing to perform them in a timely manner. The primary sources of credit risk for the Syndicate are:
• brokers and intermediaries – the risk of delayed payment or inability to settle outstanding funds owed
to the Syndicate by all counterparties;
• reinsurers – the risk that reinsurance counterparties fail to meet their financial obligations to the
Syndicate; and
• investments – the risk of an issuer default which results in the Syndicate losing all or part of the value of
a financial instrument.
The Syndicate has a relatively low appetite for credit risk, as its principal business is to accept insurance risk.
This approach is intended to protect the Syndicate’s capital from erosion from credit risk so that it can meet
its insurance liabilities. The Syndicate structures the acceptable levels of credit risk by placing limits on its
exposure to singular and group counterparties, to geographical and industry segments and by reviewing the
creditworthiness of reinsurers through credit ratings provided by rating agencies and other publicly
available financial information detailing their financial strength and performance. Risk limits are subject to
regular review. The Syndicate also mitigates credit risk through the requirement for certain counterparties
to hold high-credit quality collateral in segregated accounts.
The credit control function monitors the ageing and collectability of debtor balances, with credit evaluations
performed on all relevant counterparties.
Notes to the accounts (continued)
For the year ended 31 December 2025
Reports & Accounts Syndicate 218 34
4.2 (a)(i) Investments
The Syndicate is exposed to counterparty risk with respect to cash and cash equivalents, investments and
other deposits.
The Syndicate mitigates counterparty credit risk by ensuring appropriate diversification of total invested
assets across high-quality instruments. Investments are to be fully admissible for Lloyd’s/Prudential
Regulation Authority ("PRA") solvency purposes, primarily only in liquid securities and with counterparties
that have a credit rating equal to investment grade or better.
The Syndicate imposes guidelines on its external investment managers in relation to the constituents of the
investment portfolios. These guidelines specify the acceptable asset classes, duration, and credit ratings.
The performance of the investment managers is regularly reviewed to confirm adherence to these
guidelines.
4.2 (a) (ii) Analysis of counterparty credit risk
The following table summarises the Syndicate’s significant credit risk for impacted assets:
2025
AAA AA A BBB Other **
Not
Rated 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
Participation in
investment pools
Derivative assets — — — — — 485 485
Syndicate loans to
central fund
Deposits with ceding
undertakings
Total Investments 116,082 53,735 129,404 243,727 46,023 15,950 604,921
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 168,736 198,696 261,268 254,243 67,154 26,329 976,426
Notes to the accounts (continued)
For the year ended 31 December 2025
Reports & Accounts Syndicate 218 35
2024
AAA AA A BBB Other**
Not
Rated 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
Participation in
investment pools
Derivative assets — — — — — 10 10
Syndicate loans to
central fund
Deposits with ceding
undertakings
Total Investments 85,850 41,422 152,347 165,075 43,981 14,809 503,484
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 150,222 54,964 430,883 185,660 48,995 32,689 903,413
*Prior year reclassification to comply with the requirements of Lloyd’s Syndicate Accounts Instructions (version 3.1 issued 1 December
2025). ‘Reinsurers’ share of claims outstanding’, ‘Debtors arising out of direct insurance’ and ‘Debtors arising out of reinsurance’ have
been updated to remove overdue debtors and impairment allowances. Additionally, ‘Other debtors and accrued interest’ has been
updated to include ‘Other debtors’ and ‘Other’.
**Shares and other variable yield securities and units in unit trusts rated other include £46.0m (2024: £43.9m) of investments in the
Octagon Senior Secured Credit Fund. The fund seeks to generate high current income consistent with capital preservation and low
duration by investing primarily in broadly syndicated floating rate US bank loans.
Notes to the accounts (continued)
For the year ended 31 December 2025
Reports & Accounts Syndicate 218 36
The tables below provide an analysis of the maximum credit risk exposure to these assets, together with the
extent to which they are due, past due and impaired. An assessment is performed on all assets, based on the
ageing maturity of these assets, which may result in an impairment charge in the statement of profit or loss
and comprehensive income if the Syndicate considers this to be appropriate.
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
Participation in
investment pools
Derivative assets
Syndicate loans
to central fund
Deposits with
ceding
undertakings
Reinsurer' 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
Notes to the accounts (continued)
For the year ended 31 December 2025
Reports & Accounts Syndicate 218 37
2024
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
Participation in
investment pools
Derivative assets
Syndicate loans
to central fund
Deposits with
ceding
undertakings
Reinsurer' 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 903,413 16,283 11,297 (1,112 ) 929,881
*Prior year reclassification to comply with the requirements of Lloyd’s Syndicate Accounts Instructions (version 3.1 issued 1 December
2025). ‘Other investments’ has been updated to remove ‘Other’, and ‘Other debtors and accrued interest’ has been updated to include
‘Other’ and ‘Other debtors’.
Notes to the accounts (continued)
For the year ended 31 December 2025
Reports & Accounts Syndicate 218 38
The table below sets out a reconciliation of changes in impairment allowance during the financial year for
each class of financial asset at the balance sheet date:
2025
1 Jan
New
impairment
charges
added in
year
Changes in
impairment
charges
Released
to income
statement
Foreign
exchange Others 31 Dec
£000 £000 £000 £000 £000 £000 £000
Financial
investments
Reinsurer' 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 1,112 800 — — — — 1,912
2024
1 Jan
New
impairment
charges
added in
year
Changes in
impairment
charges
Released
to income
statement
Foreign
exchange Others 31 Dec
£000 £000 £000 £000 £000 £000 £000
Financial
investments
Reinsurer' 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 1,170 81 (139 ) — — — 1,112
Notes to the accounts (continued)
For the year ended 31 December 2025
Reports & Accounts Syndicate 218 39
The table below sets out the age analysis of financial assets that are past due but not impaired at the
balance sheet date:
2025
0-3 months
past due
3-6 months
past due
6-12
months
past due
Greater
than 1 year
past due
Total
£000 £000 £000 £000 £000
Debtors arising out of direct insurance
operations
Debtors arising out of reinsurance
operations
Total
2024
0-3 months
past due
3-6 months
past due
6-12
months
past due
Greater
than 1 year
past due
Total
£000 £000 £000 £000 £000
Debtors arising out of direct insurance
operations
Debtors arising out of reinsurance
operations
Total
4.2 (b) Market risk
Market risk is the risk of a variation in the value of financial institution deposits and financial investments,
relative to the variation in the value of liabilities due to market movements. Market risk arises where the
value of assets less liabilities changes because of movements in foreign exchange rates, interest rates,
inflation rates and/or market prices.
The Syndicate engages external investment managers to actively manage the market risk associated with
financial investments. Detailed guidelines imposed on the investment managers are in place and the Board
and its Investment Committee regularly monitor performance and risk metrics.
4.2 (b)(i) Foreign currency risk
The Syndicate is exposed to changes in the value of assets and liabilities due to movements in foreign
exchange rates. The Syndicate deals in five main currencies, Sterling (GBP), Canadian dollar (CAD), Euros
(EUR), Australian dollar (AUD) and US dollar (USD). Transactions in all other currencies are converted to
Sterling on initial recognition.
Although over 96% (2024: 96%) of the insurance premium is GBP-denominated, the Syndicate has some
exposure to non-GBP denominated insurance claims from its legacy run-off portfolios. The foreign
exchange rate exposure is closely monitored from a liquidity and asset-liability matching standpoint.
The investment managers invest part of the GBP-denominated premium trust fund in non-GBP
denominated investments which are fully hedged back to GBP using derivatives, thereby mitigating the
foreign exchange rate risk.
Notes to the accounts (continued)
For the year ended 31 December 2025
Reports & Accounts Syndicate 218 40
The following table summarises the carrying value of total assets and total liabilities categorised by currency:
GBP USD EUR CAD AUD Other Total
At 31 December 2025 £000 £000 £000 £000 £000 £000 £000
Financial investments
Reinsurers' share of
technical provisions
Debtors
Other assets
Prepayments and accrued
income
Total assets
Technical provisions
(834,028 ) (37 ) (6 ) (380 ) — —
(834,451 )
Creditors
(106,932 ) (279 ) (1,656 ) (2 ) (279 ) — (109,148 )
Accruals and deferred
income
(4,767 ) — — — — — (4,767 )
Total liabilities less
members Balance
(945,727 ) (316 ) (1,662 ) (382 ) (279 ) — (948,366 )
Total capital and
reserves
(41,839 ) (30,606 ) (36,374 ) (797 ) (594 ) — (110,210 )
GBP USD EUR CAD AUD Other Total
At 31 December 2024 £000 £000 £000 £000 £000 £000 £000
Financial investments
Reinsurers' share of
technical provisions
Debtors
Other assets
Prepayments and accrued
income
Total assets
Technical provisions
(836,122 ) (40 ) (6 ) (83 ) (15 ) —
(836,266 )
Creditors
(126,725 ) — (2,196 ) — (1,242 ) —
(130,163 )
Accruals and deferred
income
(2,288 ) — — — — —
(2,288 )
Total liabilities
(965,135 ) (40 ) (2,202 ) (83 ) (1,257 ) —
(968,717 )
Total capital and
reserves
4.2 (b) (ii) Interest rate risk
Most of the Syndicate’s investments comprise debt securities and other fixed income securities. The fair
value of these securities is normally inversely correlated to interest rate movements. If interest rates fall, the
fair value of the Syndicate’s securities would tend to rise and vice versa if credit spreads remain constant.
Fixed income assets are predominantly invested in high quality corporate, government, supranational and
Notes to the accounts (continued)
For the year ended 31 December 2025
Reports & Accounts Syndicate 218 41
asset backed securities. The investments typically have relatively short durations and terms to maturity.
The fair values of the Syndicate’s debt and fixed income securities are stated in note 9.
4.2 (b) (iii) Sensitivity analysis on market risk
The sensitivity analysis for interest rate risk and market price risk in the table below illustrates how changes
in the fair value or future cash flows of a financial instrument will fluctuate because of changes in market
interest rates or market prices at the reporting date.
2025 Impact on
result
£000
2025 Impact
on members'
balances
£000
2024 Impact
on result
£000
2024 Impact
on members'
balances
£000
Interest rate risk
50 basis points increase in yield curve
(7,169 )
(7,169 )
(5,048 )
(5,048 )
50 basis points decrease in yield curve
Price risk
5% increase in stock market prices
5% decrease in stock market prices
(763 )
(763 )
(2,209 )
(2,209 )
With the exception of PPOs, insurance contract liabilities are not directly sensitive to the level of market
interest rates as they are undiscounted and contractually non-interest bearing. Although interest may be
payable as damages for late payment of claims under statute or case law, this does not create sensitivity of
the underlying insurance liabilities to market interest rate movements.
4.2 (c) Liquidity risk
Liquidity risk arises where cash may not be available at a reasonable cost to pay obligations when due . The
Syndicate is exposed to daily cash outflows on its available cash resources, mostly for the settlement of
claims arising from insurance contracts. Limits on the minimum level of cash and maturing funds available to
meet such outflows are set to cover unexpected levels of claims and other cash demands. A sizeable
proportion of the Syndicate’s investments is in highly liquid assets that can be converted to cash at short
notice without any significant capital loss or material expense. These funds are monitored by management
daily.
Undiscounted net cash flows
At 31
December
2025
Carrying
amount
£000
No stated
maturity
£000
0-1 year
£000
1-3 years
£000
3-5 years
£000
> 5 years
£000
Total
£000
Gross claims
outstanding
591,173 — 157,355 152,921 80,167 200,730 591,173
Creditors 109,148 — 109,148 — — — 109,148
Other credit
balances
— — — — — — —
Total 700,321 — 266,503 152,921 80,167 200,730 700,321
Notes to the accounts (continued)
For the year ended 31 December 2025
Reports & Accounts Syndicate 218 42
Undiscounted net cash flows
At 31
December
2024
Carrying
amount
£000
No stated
maturity
£000
0-1 year
£000
1-3 years
£000
3-5 years
£000
> 5 years
£000
Total
£000
Gross claims
outstanding
601,268 — 155,993 158,591 74,749 211,935 601,268
Creditors 130,163 — 130,163 — — — 130,163
Other credit
balances*
2,288 — 2,288 — — — 2,288
Total 733,719 — 288,444 158,591 74,749 211,935 733,719
*Prior year reclassification to comply with the requirements of Lloyd’s Syndicate Accounts Instructions (version 3.1 issued 1 December
2025). ‘Accruals and deferred income’ have been removed from the ‘Other credit balances’.
4.2 (c) (i) Lloyd's capital setting process
In order to meet Lloyd’s requirements, each syndicate is required to calculate its Solvency Capital
Requirement (SCR) for the prospective underwriting year. This amount must be sufficient to cover a 1 in
200 year loss, reflecting uncertainty in the ultimate run-off of underwriting liabilities (SCR ‘to ultimate’). The
Syndicate must also calculate its SCR at the same confidence level but reflecting uncertainty over a one
year time horizon (one year SCR) for Lloyd’s to use in meeting Solvency II requirements. The SCRs of each
Syndicate are subject to review by Lloyd’s and approval by the Lloyd’s Capital and Planning Group.
A syndicate may be comprised of one or more underwriting members of Lloyd’s. Each member is liable for
its own share of underwriting liabilities on the syndicates on which it is participating but not other members’
shares. Accordingly, the capital requirements that Lloyd’s sets for each member operate on a similar basis.
Each member’s SCR shall thus be determined by the sum of the member’s share of the Syndicate SCR ‘to
ultimate’. Where a member participates on more than one syndicate, a credit for diversification is provided
to reflect the spread of risk, but consistent with determining an SCR which reflects the capital requirement
to cover a 1 in 200 loss ‘to ultimate’ for that member. Over and above this, Lloyd’s applies a capital uplift to
the member’s capital requirement, known as the Economic Capital Assessment (ECA). The purpose of this
uplift, which is a Lloyd’s not a Solvency II requirement, is to meet Lloyd’s financial strength, licence and
ratings objectives. The capital uplift applied for 2025 was 35% (2024: 35%) of the member’s SCR ‘to
ultimate’.
4.3 Operational risk
Operational risk is the risk of loss from people, processes or systems, or external events with origins outside
the scope of other risk categories. The Managing Agent actively monitors and controls its operational risks.
The nature of the risk means that it can impact all areas of the business. Examples of key operational risks
for the Syndicate include IT performance and stability, cyber security, data integrity and the delivery of
major projects.
Key activities to manage operational risk across the Syndicate include:
• quarterly assessment of the risk register across all areas of the business to identify instances where
the risk profile has increased, and/or areas where additional mitigation may be necessary to control
the risk within tolerance;
• the Operational Committee reviewing key activities across the business, with governance, reporting
and escalation paths for operational risk;
• independent second line and third line reviews of key controls designed to mitigate operational risk;
• risk culture and management training to ensure continued awareness of operational risk for all
employees: and
• disaster recovery planning, with effective communication programmes in place utilising Everbridge
and scenario testing across the business.
Notes to the accounts (continued)
For the year ended 31 December 2025
Reports & Accounts Syndicate 218 43
4.3 (a) Regulatory risk
Regulatory risk is the failure to identify or advise the business of legal and regulatory requirements and to
ensure appropriate implementation and adherence. Given the nature and size of the Syndicate’s customer
base, a key area of focus for the Compliance function relates to controls and processes associated with
FCA’s rules on Consumer Duty.
4.3 (b) Third-party risk
The company recognises the evolving risks associated with third-party relationships, particularly in the areas
of cyber security, operational resilience, technology reliance, and data protection. These risks are
heightened by increasing regulatory scrutiny, the complexity of supply chains, and the ever-present threat
of cyberattacks. The potential impact of third-party incidents could include financial loss, regulatory
penalties, operational disruptions, and reputational damage.
To mitigate these risks, the company has made significant investments over the past number of year to
enhance its IT infrastructure and cyber resilience. Key initiatives include a significant upgrade of the
infrastructure to improve resilience, implementing advanced threat detection and response systems,
advanced security and protection across the laptop estate, and strengthening data protection measures.
Additionally, the company has improved third-party risk management practices, including enhanced due
diligence, regular audits of third-party providers, and robust incident response planning. These efforts are
aimed at ensuring continued operational integrity and safeguarding stakeholder interests in a rapidly
changing risk landscape.
4.3 (c) Climate change risk
The Syndicate’s underwriting performance is not materially exposed to the physical risk of climate change.
The frequency or severity of road traffic accidents or other motor insurance loss events are not likely to be
impacted by a rise in global temperatures, although poor weather may lead to more hazardous driving
conditions.
Notes to the accounts (continued)
For the year ended 31 December 2025
Reports & Accounts Syndicate 218 44
5. Segmental analysis
An analysis of the technical account balance before investment return is set out below:
For the year ended 31
December 2025
Gross
premium
written
£000
Gross
premium
earned
£000
Gross
claims
incurred
£000
Gross
operating
expenses
£000
Reinsurance
balance
£000
Total
£000
Direct insurance
Accident and health — — (6 ) — —
(6 )
Motor (third party
liability)
Motor (other classes) 398,536 392,196 (176,438 ) (121,869 ) (41,860 )
Fire and other damage
to property
Miscellaneous 4,745 4,731 (3,724 ) (1,951 ) 33
(911 )
Total Direct 485,696 478,031 (216,654 ) (149,023 ) (50,483 )
Reinsurance accepted* 17,976 17,361 (16,340 ) (2,538 ) —
(1,517 )
Total 503,672 495,392 (232,994 ) (151,561 ) (50,483 )
For the year ended 31
December 2024
Gross
premium
written
£000
Gross
premium
earned
£000
Gross
claims
incurred
£000
Gross
operating
expenses
£000
Reinsurance
balance
£000
Total
£000
Direct insurance
Accident and health — — 208 — —
Motor (third party
liability)
Motor (other classes) 329,030 168,044 (112,817 ) (48,872 ) (11,482 )
(5,127 )
Fire and other damage
to property
Miscellaneous 4,911 5,048 (3,849 ) (2,130 ) 60
(871 )
Total Direct 471,866 452,915 (207,846 ) (129,700 ) (76,710 )
Reinsurance accepted* 18,186 14,397 (6,033 ) 5 (493 )
Total 490,052 467,312 (213,879 ) (129,695 ) (77,203 )
*Premium and claims reported under reinsurance accepted relate to inwards reinsurance business which commenced in 2021 in order
to write overseas business.
The geographical analysis of gross premium written for direct insurance by location (where the contracts
were concluded) is presented in the table below:
| 2025 | 2024 | |
| £000 | £000 | |
| United Kingdom | | |
| European Union Member States | | |
| Rest of the world | | |
| Total gross premium written | | |
Notes to the accounts (continued)
For the year ended 31 December 2025
Reports & Accounts Syndicate 218 45
(i) Claims
Favourable movements of £19.1m (2024: £20.3m) in the past year’s provision for claims outstanding, net of
expected reinsurance recoveries, are included in claims incurred, net of reinsurance.
6. Investment return
All the Syndicate’s investments are recognised at fair value through the profit and loss.
2025 £000 | 2024 £000 | |
Interest income | ||
From financial instruments designated at fair value through profit or loss | ||
| Interest and similar income | | |
| Total income from financial assets at fair value through profit and loss | | |
| Interest on cash at bank | | |
Other income from investments | ||
From financial instruments 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 expenses and charges | ( | ( |
| Total investment return | | |
| Transferred to the technical account from the non-technical account | | |
| Impairment losses on debtors recognised in administrative expenses* | ( | ( |
*Prior year reclassification to comply with the requirements of Lloyd’s Syndicate Accounts Instructions (version 3.1 issued 1 December
2025).
7. Net operating expenses
2025 £000 | 2024 £000 | |
Acquisition costs | | |
Change in deferred acquisition cost | ( | ( |
Administrative expenses | | |
Members’ standard personal expenses | | |
| 151,561 | 129,695 | |
Reinsurers’ share | ||
| Acquisition costs – commission expenses | (1,071) | (181) |
| Reinsurance commissions and profit participation | ( | ( |
| Total | |
Notes to the accounts (continued)
For the year ended 31 December 2025
Reports & Accounts Syndicate 218 46
Administrative expenses include staff costs (note 8) of £44.4m (2024: £44.3m), and audit fees of £0.6m
(2024:£0.6m).
Administrative expenses include: | ||
2025 £000 | 2024 £000 | |
Auditors’ remuneration: | ||
Fees payable to the Syndicate’s auditors for the audit of these financial statements | | |
Fees payable to the Syndicate’s auditors and their associates in respect of other services pursuant to legislation | | |
Impairment losses on debtors: | ||
| Arising out of direct insurance operations* | | |
| Arising out of reinsurance operations* | | |
*Prior year reclassification to comply with the requirements of Lloyd’s Syndicate Accounts Instructions (version 3.1 issued 1 December
2025).
8. Staff costs
The Syndicate and the Managing Agent have no employees, and incur no staff costs directly. All employees
are employed by IQUW ASL and costs are recharged to the Syndicate via IQUW SSL. The following salary
and related costs were recharged to the Syndicate during the year:
2025
£000
2024
£000
Wages and salaries 29,524 30,364
Social security costs 4,617 3,709
Other pension costs 2,180 2,016
Other 8,102 8,191
Total 44,423 44,280
The average number of staff employed by IQUW ASL and recharged via IQUW SSL to the Syndicate during
the year was as follows:
| 2025 | 2024 | |
| Underwriting | ||
| Claims | ||
| Administration | ||
| Total |
The directors of the Managing Agent received the following aggregate remuneration recharged to the
Syndicate and included in net operating expenses:
2025
£000
2024
£000
Directors’ emoluments 1,199 1,218
Pension contributions 39 36
Total 1,238 1,254
Notes to the accounts (continued)
For the year ended 31 December 2025
Reports & Accounts Syndicate 218 47
The active underwriter received the following remuneration charged as Syndicate expense:
2025
£000
2024
£000
Emoluments 225 385
Total 225 385
9. Financial Investments
All financial instruments are designated at fair value through profit or loss on initial recognition.
| Carrying value | Cost | |||
2025 £000 | 2024* £000 | 2025 £000 | 2024 £000 | |
Shares and other variable yield securities and units in unit trusts | | | | |
Debt securities and other fixed income securities | | | | |
Participation in investment pools | | | | |
Derivative assets | | | | |
Syndicate loans to central fund | | | | |
Total financial investments | | | | |
*Prior year reclassification to comply with the requirements of Lloyd’s Syndicate Accounts Instructions (version 3.1 issued 1 December
2025). ‘Other’ has been remapped to ‘Other debtors and accrued interest’.
All financial investments in the current and prior financial year were carried at fair value through profit or
loss. No financial assets in the current or prior financial year were classified as ‘held for trading’ under FRS
102.
The table below analyses the derivative assets and liabilities by type:
| 2025 | 2024 | |||
| Notional amount | Fair value | Notional amount | Fair value | |
| £000 | £000 | £000 | £000 | |
Foreign exchange forward contracts | | | | ( |
Total | | | | ( |
Fair value hierarchy
The Syndicate has classified its financial investments using the fair value hierarchy in accordance with the
FRS 102 amendments to “Fair value hierarchy disclosures” issued by the Financial Reporting Council on 8
March 2016.
The fair value hierarchy classifies financial instruments into Levels 1 through 3 based on the significance of
the inputs used in measuring their fair value with Level 1 being the most reliable. The classifications within
the fair value hierarchy are defined as follows:
• Level 1 – Quoted price for an identical asset in an active market. This includes securities and financial
investments that are priced based on unadjusted quoted prices in an active market for identical assets
that can be accessed at the measurement date;
• Level 2 – Price of a recent transaction for an identical asset and valuation technique using observable
market data. This includes securities and financial investments that are priced using valuation
Notes to the accounts (continued)
For the year ended 31 December 2025
Reports & Accounts Syndicate 218 48
techniques based on direct or indirect observable market data, including market prices from
recognised exchanges, broker-dealers, recognised indices, or pricing vendors; and
• Level 3 – Valuation technique using unobservable market data. This includes securities which are not
actively traded. The pricing service uses common market valuation pricing models. Observable inputs
used in common market valuation pricing models include, but are not limited to, broker quotes, credit
ratings, interest rates, and yield curves, prepayment speeds, default rates, and other such inputs which
are available from market sources
At 31 December 2025
Level 1
£000
Level 2
£000
Level 3
£000
Total
£000
Shares and other variable yield securities — — 46,222 46,222
Debt securities and other fixed income securities — 517,494 — 517,494
Participation in investment pools 40,160 — — 40,160
Derivative assets — 485 — 485
Syndicate loan to central fund — — — —
Total financial investments 40,160 517,979 46,222 604,361
Deposits with ceding undertakings — — 560 560
Derivative liabilities — — — —
Total 40,160 517,979 46,782 604,921
At 31 December 2024
Level 1
£000
Level 2
£000
Level 3
£000
Total*
£000
Shares and other variable yield securities — — 44,180 44,180
Debt securities and other fixed income securities — 435,601 — 435,601
Participation in investment pools 18,700 — — 18,700
Derivative assets — 10 — 10
Syndicate loan to central fund — — 4,391 4,391
Total financial investments 18,700 435,611 48,571 502,882
Deposits with ceding undertakings — — 602 602
Derivative liabilities — (554 ) — (554 )
Total 18,700 435,057 49,173 502,930
*Prior year reclassification to comply with the requirements of Lloyd’s Syndicate Accounts Instructions (version 3.1 issued 1 December
2025). ‘Other’ has been remapped to ‘Other debtors and accrued interest’.
Level 3 Shares and other variable yield securities above include £46.0m (2024: £43.9m) of investments in
Octagon Senior Secured Credit Fund. Level 3 investments include loans made to the Lloyd’s Central Fund
to which a fair value adjustment has been applied based on the Lloyd’s RT1 valuation model and
investments included in Octagon. The fund has been classed as equity instrument as its contractual features
meet the criteria for equity. During 2025, the loan was fully repaid by the Corporation of Lloyd’s.
Notes to the accounts (continued)
For the year ended 31 December 2025
Reports & Accounts Syndicate 218 49
10. Foreign exchange gain/loss
2025
£000
2024
£000
Non-technical account foreign exchange loss
Foreign exchange translation differences 458 (745)
Total 458 (745)
11. Technical Provisions
Unearned premium
At 31 December 2025
Gross technical
provisions
£000
Reinsurers’ share of
technical provisions
£000
Net
£000
Balance at 1 January
Premium written in the year
Premium earned in the year
(495,392 ) 71,600
(423,792 )
Change in unearned premiums 8,280 7,748 16,028
Other
Balance at 31 December 243,278 (22,049 ) 221,229
Unearned premium
At 31 December 2024
Gross technical
provisions
£000
Reinsurers’ share of
technical provisions
£000
Net
£000
Balance at 1 January
Premium written in the year
Premium earned in the year
(467,312 ) 58,009
(409,303 )
Change in unearned premiums 22,740 2,674 25,414
Other*
Balance at 31 December 234,998 (29,797 ) 205,201
*Prior year reclassification to comply with the requirements of Lloyd’s Syndicate Accounts Instructions (version 3.1 issued 1 December
2025).
Claims outstanding
At 31 December 2025
Gross technical
provisions
£000
Reinsurers’ share of
technical provisions
£000
Net
£000
Balance at 1 January
Claims paid during the year
(243,092 ) 7,073 (236,019 )
Expected cost of current year claims
Foreign exchange movements 3 (1 ) 2
Balance at 31 December 591,173 (241,925 ) 349,248
Notes to the accounts (continued)
For the year ended 31 December 2025
Reports & Accounts Syndicate 218 50
Claims outstanding
At 31 December 2024
Gross technical
provisions
£000
Reinsurers’ share of
technical provisions
£000
Net
£000
Balance at 1 January
Claims paid during the year
(261,864 ) 19,531 (242,333 )
Expected cost of current year claims
Foreign exchange movements — — —
Balance at 31 December 601,268 (228,951 ) 372,317
12. Discounted claims
The claims relating to PPOs have been discounted at the following rate. The period that will elapse before
claims are settled is determined using impaired mortality tables.
| Discount rate | Mean of liabilities | ||
| 2025 | 2024 | 2025 2024 | |
| Motor (third party liability) | | |
The effect of discounting credits on claims provisions is shown as follows:
Undiscounted claims Effect of discounting After discounting
2025
£000
2024
£000
2025
£000
2024
£000
2025
£000
2024
£000
Gross claims provisions
Reinsurers share of total
claims
(271,281 ) (218,038 ) 137,492 107,633 (133,789 ) (110,405 )
Net claims provisions
13. Deferred acquisition costs
2025
£000
2024
£000
Gross Reinsurance Net Gross Reinsurance Net
Balance at 1 January
Incurred Deferred
Acquisition
Amortised Deferred
Acquisition
(83,059 ) — (83,059 ) (78,510 ) — (78,510 )
Balance at 31
December
14. Debtors arising out of insurance operations
2025
£000
2024
£000
Due within one year 90,519 85,933
Total 90,519 85,933
Notes to the accounts (continued)
For the year ended 31 December 2025
Reports & Accounts Syndicate 218 51
15. Debtors arising out of reinsurance operations
2025 £000 | 2024 £000 | |
| Due within one year | | |
| Total | | |
16. Other debtors
2025 £000 | 2024 £000 | |
| Other related party balances (non-syndicate) | | |
| Other | | |
| Total | | |
17. Cash and cash equivalents
2025
£000
2024
£000
Cash at bank and in hand 12,997 21,169
Short term debt instruments presented within other financial investments 40,160 18,700
Total cash and cash equivalents 53,157 39,869
18. Analysis of net debt
At 1
January
2025 Cash flows Acquired
Fair value and
exchange
movements
Non-cash
changes
At 31
December
2025
£000
£000
£000
£000
£000
£000
Cash and cash
equivalents
Derivative financial
liabilities
(554 ) 554 — — — —
Total 39,315 13,842 — — — 53,157
19. Other prepayments and accrued income
2025
£000
2024
£000
Prepaid administrative expenses 5,326 5,489
Prepaid Lloyd’s personal expenses and other charges 4,330 3,871
Accrued Income — 6,045
Total 9,656 15,405
Notes to the accounts (continued)
For the year ended 31 December 2025
Reports & Accounts Syndicate 218 52
20. Creditors arising out of direct insurance operations
2025 £000 | 2024 £000 | |
Amounts due to intermediaries: | ||
Due within one year | | |
| Total | | |
21. Creditors arising out of reinsurance operations
2025
£000
2024
£000
Amounts due to intermediaries:
Due within one year
Total 58,447 58,092
22. Other creditors including taxation and social security
2025
£000
2024
£000
Due within one year
Amounts due to related companies 2,967 43,791
Profit commission payable to managing agent 27,809 7,920
Other related party balances (non-syndicates) 14,296 15,648
Derivatives liabilities — 545
Other Liabilities 22 —
Total 45,094 67,904
23. Related Parties
IQUW Corporate Member Limited (“IQUW CML”)
IQUW CML is a wholly owned subsidiary of IQUW UK Insurance Group Limited ("IQUW IGL") through
which IQUW Group conducts its underwriting business at Lloyd’s.
IQUW CML’s share of the syndicate profit for the year is £73.1m (2024: £55.4m). IQUW CML’s share of the
syndicate’s 2023 closed year of account profit is £33.9m.
IQUW Syndicate Management Limited (The “Managing Agent”)
The Managing Agent is a wholly-owned subsidiary of IQUW IGL and acts as managing agent for the
Syndicate. The Managing Agent charged management fees of £4.4m (2024: £4.3m) to the Syndicate.
IQUW Administration Services Limited (“IQUW ASL”)
IQUW ASL is a wholly owned subsidiary of IQUW IGL and provides services for all activities of IQUW UK
entities. All expenses not paid directly by the Syndicate are paid for by IQUW ASL and recharged
accordingly via IQUW SSL. In accordance with the Managing Agent’s current syndicate expense policy,
which complies with the Lloyd’s Code of Practice:
• Directly attributable expenses are recharged fully to the Syndicate; and
Notes to the accounts (continued)
For the year ended 31 December 2025
Reports & Accounts Syndicate 218 53
• non-directly attributable expenses are recharged to the Syndicate on an allocation basis across all
other IQUW IGL group companies. These allocations are on an equitable basis, to ensure no gain or
loss arises from these accounting treatments.
IQUW Syndicate Services Limited (“IQUW SSL”)
IQUW SSL is a wholly owned subsidiary of the Managing Agent and acts as a service company for the
Syndicate.
IQUW SSL became an appointed representative of the Managing Agent on 14 January 2005 and is
authorised by the PRA and regulated by the Financial Conduct Authority (“FCA”) and the PRA. The
Managing Agent does not receive any direct income from IQUW SSL. No director of the Managing Agent
has received any benefit for acting as a director of IQUW SSL.
IQUW SSL recharged the following expenses to the Syndicate:
Closing balance
receivable
£000
In-year expense
transactions
£000
2025 calendar year 9,006 64,973
2024 calendar year 11,283 61,890
Closing balance
receivable
£000
Cumulative expense
transactions
£000
2023 closed year 17,909 53,457
2022 closed year 20,347 48,217
24. Syndicate structure
The Managing Agent of the Syndicate is IQUW Syndicate Management Limited whose immediate parent
undertaking is IQUW IGL, a company registered in England and Wales.
The ultimate parent undertaking of the largest and smallest group of companies for which group accounts
are drawn up is IQUW Holdings Bermuda Limited. Copies of financial statements can be obtained from the
Company Secretary Appleby Global Services at Canon's Court, 22 Victoria Street, Hamilton HM12,
Bermuda.
25. Funds at Lloyd's
Every member is required to hold capital at Lloyd's, which is held in trust and known as FAL. These funds are
intended primarily to cover circumstances where syndicate assets prove insufficient to meet participating
members' underwriting liabilities.
The level of FAL that Lloyd's requires a member to maintain is determined by Lloyd's based on PRA
requirements and resources criteria. These resources are calculated by Lloyd's under the rules of the
Solvency II regime.
The resources calculation has regard to a number of factors including the nature and amount of risk to be
underwritten by the member and the assessment of the reserving risk in respect of business that has been
underwritten. Since FAL is not under the control of the managing agents, no amount has been shown in
these annual accounts for such capital resources. However, managing agents are able to make a call on the
members' FAL to meet liquidity requirements to settle losses.
Notes to the accounts (continued)
For the year ended 31 December 2025
Reports & Accounts Syndicate 218 54
26. Foreign Exchange Rates
The following currency exchange rates have been used for principal foreign currency transactions:
| 2025 | 2024 | |||||
Start of period rate | End of period rate | Average rate | Start of period rate | End of period rate | Average rate | |
| Sterling | | | | | | |
| US dollar | | | | | | |
| Euro | | | | | | |
Canadian dollar | | | | | | |
Australian dollar | | | |
27. Post Balance Sheet Event
The closing underwriting year of 2023 was reinsured to close (“RITC”) into the Syndicate on 1 January 2026.
Notes to the accounts (continued)
For the year ended 31 December 2025
Reports & Accounts Syndicate 218 55
Underwriting
Accounts
2023 Closed
Year of Account
Report of the managing agent
IQUW Syndicate Management Limited (the “Managing Agent”), the managing agent of Syndicate 218 (“the
Syndicate”) presents its report for the 2023 closed underwriting year of account as at 31 December 2025.
This report is prepared in accordance with Lloyd’s regulations and the Syndicate Accounting Byelaw.
Review of the 2023 closed year of account
The 2023 account has closed with a profit of £42.7m after personal expenses representing a profit on
underwriting capacity of 8.9%. The profit attributable to business reinsured into the 2023 year of account
was £17.1m representing a profit on underwriting capacity of 3.6%. The pure 2023 underwriting year has
generated a profit of £25.6m representing 5.3% of underwriting capacity.
Review of the business
This is available in the Report of the Managing Agent within the Annual Report and Accounts for the 2025
Financial Year.
Disclosure of information to the auditors
The directors of the Managing Agent who held office at the date of approval of the Report of the Managing
Agent confirm that, so far as each of them is aware, there is no relevant audit information of which the
syndicate’s auditors are unaware, and each director has taken all steps that they ought to have taken as a
director to make himself / herself aware of any relevant audit information and to establish that the
syndicate’s auditors are aware of that information.
Syndicate auditors
The syndicate’s auditors, PricewaterhouseCoopers LLP, are deemed reappointed under the provisions of
The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008.
By order of the Board:
Peter Bilsby
Director
11 February 2026
Report of the managing agent
For the 2023 closed year of account as at ended 31 December 2025
Reports & Accounts Syndicate 218 57
Statement of managing agent’s responsibilities
For the year ended 31 December 2025
The managing agent is responsible for preparing the managing agent’s report and the syndicate
underwriting year 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 underwriting year accounts at 31 December, in respect of any
underwriting year which is being closed by reinsurance to close, which give a true and fair view of the results
of the underwriting year at closure. Detailed requirements in respect of the underwriting year accounts are
set out in the Lloyd’s Syndicate Accounting Byelaw (No. 8 of 2005) and applicable Accounting Standards in
the United Kingdom, comprising Financial Reporting Standard 102, “The Financial Reporting Standard
applicable in the United Kingdom and the Republic of Ireland (“FRS 102”), as modified by the Insurance
Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 and the Lloyd’s
Syndicate Accounting Byelaw (No.8 of 2005).
In preparing these syndicate underwriting year accounts, the managing agent is required to:
• select suitable accounting policies and apply these consistently and where there are items which affect
more than one year of account, ensure a treatment which is equitable as between the members of the
syndicate affected. In particular, the amount charged by way of premium in respect of the reinsurance
to close shall, where the reinsuring members and reinsured members are members of the same
syndicate for different years of account, be equitable as between them, having regard to the nature
and amount of the liabilities reinsured;
• take into account all income and charges relating to a closed year of account without regard to the
date of receipt or payment;
• make judgements and accounting estimates that are reasonable and prudent; and
• state whether applicable UK Accounting Standards have been followed, subject to any material
departures disclosed and explained in the underwriting year accounts.
The managing agent is responsible for keeping adequate accounting records that are sufficient to show and
explain the syndicate’s transactions and disclose with reasonable accuracy at any time the financial position
of the syndicate and enable it to ensure that the syndicate underwriting year accounts comply with the
Regulations. 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 business's website. Legislation
in the United Kingdom governing the preparation and dissemination of the syndicate underwriting year
accounts may differ from legislation in other jurisdictions.
Statement of managing agent’s responsibilities
For the 2023 closed year of account as at ended 31 December 2025
Reports & Accounts Syndicate 218 58
Independent auditors’ report to the members of Syndicate 218 -
2023 closed year of account
Report on the audit of the syndicate underwriting year financial
statements
Opinion
In our opinion, Syndicate 218’s syndicate underwriting year financial statements for the 2023 year of
account for the 3 years ended 31 December 2025 (the “underwriting year financial statements”):
• 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 2023 closed year of account;
• 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 Lloyd’s Syndicate
Accounting Byelaw (No. 8 of 2005).
We have audited the underwriting year financial statements included within the Underwriting Accounts
2023 Closed Year of Account (the “Underwriting Year Accounts”), which comprise: the Balance sheet as at
31 December 2025; the Statement of profit or loss and comprehensive income – technical account general
business, the Statement of profit or loss and comprehensive income – non technical account, the Cash flow
statement, and the Statement of changes in members’ balances for the 3 years then ended; and the notes to
the underwriting year financial statements, 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)”),
including ISA (UK) 800, and The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts)
Regulations 2008 and other applicable law. Our responsibilities under ISAs (UK) are further described in the
Auditors’ responsibilities for the audit of the underwriting year financial statements 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 underwriting year financial statements 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.
Emphasis of matter – Basis of preparation
Without modifying our opinion, we draw attention to note 1 of the underwriting year financial statements,
which describes the basis of preparation. In particular, as these underwriting year financial statements relate
to a closed underwriting year of account, matters relating to going concern are not relevant to these
underwriting year financial statements. The underwriting year financial statements are prepared in
accordance with a special purpose framework for the specific purpose as described in the Use of this report
paragraph below. As a result, the underwriting year financial statements may not be suitable for another
purpose.
Reporting on other information
The other information comprises all of the information in the Underwriting Year Accounts other than the
underwriting year financial statements and our auditors’ report thereon. The Managing Agent is responsible
for the other information. Our opinion on the underwriting year financial statements does not cover the
Independent auditors report to the members of Syndicate 218 – 2023 closed year of account
For the 2023 closed year of account as at ended 31 December 2025
Reports & Accounts Syndicate 218 59
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 underwriting year financial statements, our responsibility is to read the
other information and, in doing so, consider whether the other information is materially inconsistent with the
underwriting year financial statements 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 underwriting
year financial statements 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.
Responsibilities for the underwriting year financial statements and the audit
Responsibilities of the Managing Agent for the underwriting year financial statements
As explained more fully in the Statement of managing agent’s responsibilities, the Managing Agent is
responsible for the preparation of the underwriting year financial statements in accordance with the
applicable framework and for being satisfied that they give a true and fair view of the result for the 2023
closed year of account. The Managing Agent is also responsible for such internal control as they determine
is necessary to enable the preparation of underwriting year financial statements that are free from material
misstatement, whether due to fraud or error.
Auditors’ responsibilities for the audit of the underwriting year financial statements
Our objectives are to obtain reasonable assurance about whether the underwriting year financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of these underwriting year financial statements.
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 underwriting year financial statements. We also considered those laws and regulations that have a
direct impact on the underwriting year financial statements such as The Insurance Accounts Directive
(Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008. We evaluated management’s incentives
and opportunities for fraudulent manipulation of the underwriting year financial statements (including the
risk of override of controls), and determined that the principal risks were related to management bias in
accounting estimates and the posting of inappropriate journals. Audit procedures performed by the
engagement team included:
• Discussions with the Audit Committee, management, internal audit, and the syndicate’s compliance
function, including consideration of known or suspected instances of non-compliance with laws and
regulation and fraud;
• Assessment of any matters reported on the Managing Agent’s whistleblowing helpline and
management’s investigation of such matters;
• Reviewing relevant meeting minutes including those of the Board, the Audit Committee, the Risk
Management Committee, the Reserving Committee, and correspondence with regulatory
authorities, including Lloyd’s of London, the Financial Conduct Authority and the Prudential
Regulatory Authority;
Independent auditors report to the members of Syndicate 218 – 2023 closed year of account
(continued)
For the 2023 closed year of account as at ended 31 December 2025
Reports & Accounts Syndicate 218 60
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Statement of profit or loss and comprehensive income –
technical account general business
For the 2023 closed year of account for the three years ended 31
December 2025
Note £000
Syndicate allocated capacity 479,525
Earned premium, net of reinsurance
Gross premium written 3 416,047
Outward reinsurance premium (50,846)
Earned premium, net of reinsurance 365,201
Reinsurance to close premium received, net of reinsurance 4 182,898
Allocated investment return transferred from non-technical account 6 25,549
Claims incurred, net of reinsurance
Claims paid
Gross amount (241,003)
Reinsurers’ share 5,511
Net claims paid (235,492)
Reinsurance to close premium payable, net of reinsurance 5 (170,368)
Claims incurred, net of reinsurance (405,860)
Net operating expenses 7 (125,147)
Balance on the technical account for general business 42,641
Statement of profit or loss and comprehensive income – technical account for general business
For the 2023 closed year of account for the three years ended 31 December 2025
Reports & Accounts Syndicate 218 62
Statement of profit or loss and comprehensive income – non-
technical account
For the 2023 closed year of account for the three years ended 31
December 2025
Note £000
Balance on the technical account for general business 42,641
Investment return
Investment income 6 17,352
Unrealised gains on investments 6 15,812
Investment expenses and charges 6 (575)
Unrealised losses on investments 6 (7,040)
Total investment return 25,549
Allocated investment return transferred to technical account for general
business (25,549)
Other charges, including value adjustments 76
Profit for the 2023 closed year of account 42,717
Total comprehensive income 42,717
There are no differences between the profit for the financial year stated above and the historical cost
equivalents in the statement of profit or loss and comprehensive income for the period.
The notes on pages 67 to 71 form an integral part of these underwriting accounts.
Statement of profit or loss and comprehensive income – non-technical account
For the 2023 closed year of account for the three years ended 31 December 2025
Reports & Accounts Syndicate 218 63
Balance sheet
For the 2023 closed year of account as at 31 December 2025
Note £000
Assets
Investments 8 233,745
Deposits with ceding undertakings 560
Debtors 10 5,502
Reinsurance recoveries anticipated on gross reinsurance to close premium
payable 5 188,616
428,423
Other assets
Cash at bank and in hand 2,500
Other 147
Accrued interest and rent 1,730
Deferred acquisition costs —
Other prepayments and accrued income —
4,377
Total assets 432,800
Members’ balances 42,416
Total capital and reserves 42,416
Liabilities
Gross reinsurance to close premium payable 5 358,985
Creditors 11 30,280
Accruals and deferred income 1,119
Total liabilities 390,384
Total liabilities, capital and reserves 432,800
The notes on pages 67 to 71 form an integral part of these underwriting accounts.
The underwriting year accounts on pages 62 to 66 were approved by the Board on 11 February 2026 and
signed on behalf of the Syndicate’s Managing Agent by:
Charlotte Constable
Director
11 February 2026
Balance sheet
For the 2023 closed year of account as at 31 December 2025
Reports & Accounts Syndicate 218 64
Statement of changes in members’ balances
For the 2023 closed year of account as at 31 December 2025
£000
2022 year of account
Members’ balances brought forward at 1 January 2025 12,577
Receipt of loss from members’ personal reserve funds (12,577)
Members’ balances carried forward at 31 December 2025 —
2023 year of account
Profit for the closed 2023 year of account 42,717
Members’ agents' fees paid in year (301)
Amounts due to members carried forward at 31 December 2025 42,416
Combined amount due to members carried forward at 31 December 2025 42,416
The notes on pages 67 to 71 form an integral part of these underwriting accounts.
Statement of changes in members’ balances
For the 2023 closed year of account as at 31 December 2025
Reports & Accounts Syndicate 218 65
Cash flow statement
For the 2023 closed year of account for the three years ended 31
December 2025
Note £000
Net cash inflow from operating activities 12 39,493
Cash flow from investing activities
Purchase of equity and debt instruments (231,923)
Sale of equity and debt instruments 191,072
Investment income received net of expenses paid 17,352
Net cash used in investing activities (23,499)
Cash flow from financing activities
Transfer from members in respect of underwriting participations (12,138)
Members’ agents' fees (301)
Net cash used in financing activities (12,439)
Net increase in cash at bank and in hand 3,555
Cash and cash equivalents at the beginning of the period 14,477
Cash and cash equivalents at the end of the period 18,032
Cash and cash equivalents consist of:
Cash at bank and in hand 2,500
Short term deposits with credit institutions 15,532
Cash and cash equivalents 18,032
The notes on pages 67 to 71 form an integral part of these underwriting accounts.
Cash flow statement
For the 2023 closed year of account for the three years ended 31 December 2025
Reports & Accounts Syndicate 218 66
Notes to the accounts
For the 2023 closed year of account as at 31 December 2025
1. Basis of preparation
These accounts have been prepared in accordance with the Insurance Accounts Directive (Lloyd’s
Syndicate and Aggregate Accounts) Regulations 2008, the Lloyd’s Syndicate Accounting Byelaw (No. 8 of
2005) and applicable accounting standards in the United Kingdom, comprising Financial Reporting
Standard 102 “The Financial Reporting Standard applicable in the United Kingdom and the Republic of
Ireland” (“FRS 102”) as modified by the Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate
Accounts) Regulations 2008 and the Lloyd’s Syndicate Accounting Byelaw (No. 8 of 2005).
Members participate in a syndicate by reference to a year of account and each syndicate year of account is
a separate annual venture. These accounts relate to the 2023 year of account which has been closed by
reinsurance to close as at 31 December 2025. Consequently, the balance sheet represents the assets and
liabilities of the 2023 year of account at the date of closure. The underwriting accounts reflects the
transactions for that year of account during the three year period from date of inception until closure.
Accordingly, this is the only reporting period and so corresponding amounts are not shown.
The underwriting accounts for each year of account are normally kept open for three years before the result
for that year is determined. At the end of the three year period, outstanding liabilities can normally be
determined with sufficient accuracy to permit the year of account to be closed by payment of a reinsurance
to close (“RITC”) premium to the successor year of account.
2. Accounting policies
The accounting policies adopted are the same as those disclosed in the annual report and accounts except
for:
RITC premium
The RITC premium is assessed on an individual case basis and is based on the estimated ultimate cost of all
claims notified but not settled by the balance sheet date, together with the provision for related claims
handling costs. The provision also includes the estimated cost of claims incurred but not reported (“IBNR”)
at the balance sheet date based on statistical methods.
Notes to the accounts
For the 2023 closed year of account for the three years ended 31 December 2025
Reports & Accounts Syndicate 218 67
3. Segmental analysis
2023 closed year of
account
Gross
premium
written and
earned
£000
Gross claims
incurred
£000
Gross
operating
expenses
£000
Reinsurance
balance
£000
Total
£000
Direct insurance
Accident and health — (6) — — (6)
Motor (third party liability) 117,290 (67,853) (36,344) (9,265) 3,828
Motor (other classes) 279,842 (161,685) (86,768) (22,169) 9,220
Fire and other damage to
property — — — — —
Other 4,986 (3,885) (2,002) (6) (907)
402,118 (233,429) (125,114) (31,440) 12,135
Reinsurance accepted 13,929 (6,401) (33) (2,538) 4,957
Total 416,047 (239,830) (125,147) (33,978) 17,092
Investment return 25,549
Technical account
balance 42,641
4. RITC premium received, net of reinsurance
2022 year of account closure at 31 December 2024 £000
Gross
Provision for reported claims 341,813
Provision for IBNR 18,343
Gross RITC received 360,156
Reinsurers’ share
Provision for reported claims (169,115)
Provision for IBNR (8,143)
Reinsurance recoveries anticipated on gross RITC premium received (177,258)
RITC premium received, net of reinsurance 182,898
Notes to the accounts (continued)
For the 2023 closed year of account for the three years ended 31 December 2025
Reports & Accounts Syndicate 218 68
5. RITC premium paid, net of reinsurance
2023 year of account closure at 31 December 2025 £000
Gross
Provision for reported claims 344,422
Provision for IBNR 14,563
Gross RITC payable 358,985
Reinsurers’ share
Provision for reported claims (175,162)
Provision for IBNR (13,454)
Reinsurance recoveries anticipated on gross RITC premium payable (188,616)
RITC premium payable, net of reinsurance 170,369
6. Investment return
£000
Investment income
Income from financial assets at fair value through profit and loss 15,229
Net gain on realisation of investments 2,123
17,352
Unrealised gains on investments 15,812
Unrealised losses on investments (7,040)
Investment expenses and charges (575)
Total investment return 25,549
Investment returns are allocated from the non-technical to the technical account as the entire investment
portfolio supports the general insurance business.
7. Net operating expenses
£000
Gross
Acquisition costs – commission expenses 48,746
Acquisition costs – operating expenses 23,559
Administrative expenses 35,184
Lloyd’s personal expenses and other charges 17,658
125,147
Reinsurers’ share
Acquisition costs – commission expenses —
Total 125,147
Notes to the accounts (continued)
For the 2023 closed year of account for the three years ended 31 December 2025
Reports & Accounts Syndicate 218 69
8. Investments
All financial instruments are designated as fair value through profit or loss on initial recognition.
Fair value
£000
Cost
£000
Designated at fair value through profit or loss
Shares, other variable yield securities and units in unit trusts 17,877 14,871
Debt securities and other fixed income securities 200,148 197,756
Derivative assets 188 —
Participation in investment pools 15,532 15,275
Total 233,745 227,902
9. Discounted claims
The claims relating to PPOs have been discounted at the following rate. The period that will elapse before
claims are settled is determined using impaired mortality tables.
Class of business Discount rate
Mean term of
liabilities
Motor 3 % 19.3
The effect of discounting credits on claims provisions is shown as follows:
Class of business
Gross
£000
Reinsurers’
share
£000
Claims provisions before discounting 302,838 (271,281)
Discounting credits (151,892) 137,492
Claims provisions after discounting 150,946 (133,789)
10. Debtors
£000
Debtors arising out of direct insurance operations – intermediaries (443)
Debtors arising out of ceding insurers and intermediaries under reinsurance business 85
Debtors arising out of reinsurance operations 4,165
Debtors due from related parties 209
Other 1,486
Total 5,502
Notes to the accounts (continued)
For the 2023 closed year of account for the three years ended 31 December 2025
Reports & Accounts Syndicate 218 70
11. Creditors
£000
Creditors arising out of direct insurance operations – intermediaries 1,867
Creditors arising out of reinsurance operations 19,437
Related parties 8,976
Total 30,280
12. Reconciliation of profit for the year of account to net cash
inflow from operating activities
£000
Profit for the closed year of account 42,717
RITC premium received, net of reinsurance – non cash consideration (182,898)
RITC premium payable, net of reinsurance 170,369
Decrease in debtors 44,341
Increase in creditors (11,992)
Movements in other assets and liabilities 2,505
Investment return (25,549)
Net cash inflow from operating activities 39,493
13. Related parties
Information regarding related parties of the Syndicate is disclosed on page 53.
Notes to the accounts (continued)
For the 2023 closed year of account for the three years ended 31 December 2025
Reports & Accounts Syndicate 218 71
Seven year summary of results (unaudited)
2017
2018
2019
2020
2021
2022
2023
closed closed closed closed closed closed closed
Syndicate allocated capacity
(£’000)
478,865 479,598 479,575 480,000 479,890 479,737 479,525
Number of members of the
Syndicate
1,290 1,076 1,032 602 569 569 457
Aggregate net premium (£’000) 354,939 297,843 296,628 276,674 277,603 321,144 365,201
Result for a member with an illustrative share of £10,000
Gross premium written 7,850 6,805 7,361 7,067 6,619 7,520 8,676
As a percentage of allocated
capacity
79 % 68 % 74 % 71 % 66 % 75 % 87 %
Net premium written 7,412 6,210 6,185 5,764 5,785 6,694 7,616
As a percentage of allocated
capacity
74 % 62 % 62 % 58 % 58 % 67 % 76 %
Premium for the reinsurance to
close and earlier years of account
3,518 3,323 3,086 2,400 4,054 3,851 3,814
Net claims paid (4,973) (4,694) (4,546) (1,173) (3,828) (4,710) (4,911)
Reinsurance to close year of
account
(3,328) (3,086) (2,403) (4,053) (3,850) (3,812) (3,553)
Underwriting result 2,629 1,753 2,322 2,938 2,161 2,023 2,966
As a percentage of gross premium 33 % 26 % 32 % 42 % 33 % 27 % 34 %
Syndicate operating expenses (2,051) (1,997) (1,944) (1,898) (1,754) (1,930) (2,240)
Net underwriting result 578 (244) 378 1,040 407 93 726
As a percentage of gross premium 7 % (4) % 5 % 15 % 6 % 1 % 8 %
Investment return 161 148 122 24 172 379 533
Profit/(loss) before personal
expenses
739 (96) 500 1,064 579 472 1,259
Illustrative personal expenses and
profit commission
(149) (139) (169) (333) (236) (209) (368)
Profit/(loss) after illustrative
profit commission and personal
expenses (£000)
590 (235) 331 731 343 263 891
Notes:
(i) The illustrative personal expenses and profit commission are estimates of amounts which might be
charged on a share of £10,000.
(ii) The effect of any minimum charges on personal expenses or deficit clauses on profit commission has
been ignored.
(iii) Investment expenses are included within the investment return.
(iv) Syndicate operating expenses include foreign exchange differences and other non-technical income
and charges.
Seven year summary of results (unaudited)
For the 2023 closed year of account for the three years ended 31 December 2025
Reports & Accounts Syndicate 218 72
