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Annual Report and Accounts
2025
Hiscox Syndicates
0033 and 6104
1
Directors and administration –
Hiscox Syndicates 0033 and 6104
2
Chapter 1
Hiscox Syndicate 0033
annual accounts
45
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
3
Report of the Directors of the
managing agent
46
Report of the Directors of the
managing agent
7
Statement of managing
agent’s responsibilities
48
Statement of managing
agent’s responsibilities
8
Independent auditors’ report
49
Independent auditors’ report
11
Profit and loss account:
technical account
– general business
52
Profit and loss account:
technical account
– general business
12
Profit and loss account:
non-technical account
– general business
53
Profit and loss account:
non-technical account
– general business
13
Balance sheet – assets
54
Balance sheet
14
Balance sheet – liabilities
55
Notes to the accounts
15
Statement of changes in
members’ balances
60
Seven-year summary
16
Statement of cash flows
17
Notes to the accounts
61
Chapter 3
Hiscox Syndicate 6104
annual accounts
84
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
62
Report of the Directors of the
managing agent
85
Report of the Directors of the
managing agent
65
Statement of managing
agent’s responsibilities
87
Statement of managing
agent’s responsibilities
66
Independent auditors’ report
88
Independent auditors’ report
69
Profit and loss account:
technical account
– general business
91
Profit and loss account:
technical account and non-
technical account – general
business
70
Profit and loss account:
non-technical account
– general business
92
Balance sheet
71
Balance sheet – assets
93
Notes to the accounts
72
Balance sheet – liabilities
96
Seven-year summary
73
Statement of changes in
members’ balances
74
Statement of cash flows
75
Notes to the accounts
Directors and administration
Hiscox Syndicates 0033 and 6104
Managing agent:
Managing agent
Hiscox Syndicates Limited (HSL) is the managing agent of
composite Syndicate 0033, aligned Syndicate 3624 and Special
Purpose Arrangement (SPA) 6104. HSL is an indirectly wholly
owned subsidiary of Hiscox Ltd.
Directors
M B Boucher – Non Executive (appointed 1 January 2025)
A P Dolphin
H Hanna – (appointed 13 November 2025)
T W Harris – Non Executive
T C Huerlimann – Non Executive Chair
H A Hussain
J L T Illingworth – Non Executive
S E Kemble
P A Lawrence
K J M Markham
J R Musselle
H Rose – (resigned 22 January 2026)
D S Saker – (appointed 22 January 2026)
Managing agent’s registered office
22 Bishopsgate
London
EC2N 4BQ
United Kingdom
Managing agent’s company number
02590623
Syndicates 0033 and 6104
Active underwriters
Syndicate 0033 – P A Lawrence
Syndicate 0033 and 6104 – A P Dolphin
Bankers (Syndicate 0033)
Lloyds Bank plc
Citibank
Royal Bank of Canada
Goldman Sachs
Northern Trust
Investment managers (Syndicate 0033)
AllianceBernstein Limited
Fiera Capital Corporation
Pantheon Ventures (UK) LLP,
Payden & Rygel Global Limited
Wellington Management Company LLP
Independent registered auditors
PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
7 More London Riverside
London SE1 2RT
United Kingdom
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
1
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 1
Hiscox Syndicate 0033
annual accounts
3
Report of the Directors of the
managing agent
7
Statement of managing
agent’s responsibilities
8
Independent auditors’ report
11
Profit and loss account:
technical account
– general business
12
Profit and loss account:
non-technical account
– general business
13
Balance sheet – assets
14
Balance sheet – liabilities
15
Statement of changes in
members’ balances
16
Statement of cash flows
17
Notes to the accounts
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
2
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
Report of the Directors of the managing agent
Hiscox Syndicate 0033 annual accounts
The Directors of the managing agent present their report for
Syndicate 0033 for the year ended 31 December 2025.
This Annual Report is prepared using the annual basis of
accounting as required by Statutory Instrument No. 1950 of
2008, the Insurance Accounts Directive (Lloyd’s Syndicate
and Aggregate Accounts) Regulations 2008. The Syndicate
continues to adopt the going concern basis in preparing
the syndicate annual accounts. Separate underwriting year
accounts for the closed 2023 account of Syndicate 0033
are included following these annual accounts.
Results
The result for Syndicate 0033 in calendar year 2025 is a profit of
$331.8 million (2024: profit of $316.3 million). The Syndicate has
maintained strong performance, achieving notable premium
growth through the expansion of new business opportunities
partly offset by challenges affecting certain classes, mainly due
to rising competition and heightened pressure on rates. The
Syndicate also achieved positive underwriting profit, attributable
to favourable prior-year results across classes and strong
current-year performance, though impacted by major loss events
such as the California Wildfires and Hurricane Melissa. These
losses remained within modelled expectations and were
mitigated by a relatively benign catastrophe season. Expenses
have increased modestly, primarily due to higher profit
commission reflecting the increase in profits and an overall rise in
Group recharges. Furthermore, results were bolstered by strong
investment returns and favourable foreign exchange movements.
Investment income was supported by fixed income returns, with
coupon income and cash yields serving as the primary
contributors.
The Syndicate’s key financial performance indicators during the
year were as follows:
2025
2024
%
$m
$m
Change
Gross premiums written
2,512.3
2,333.0
7.7
Gross premiums earned
2,400.3
2,297.0
4.5
Net premiums earned
1,364.8
1,408.4
(3.1)
Total recognised profit for
the year
331.8
316.3
4.9
Claims ratio (%)
43.6
45.8
(2.2)
Commission ratio (%)
21.1
19.7
1.4
Expense ratio (%)
24.5
20.2
4.3
Combined ratio (%)
89.2
85.7
3.5
Principal activity
The principal activity of Syndicate 0033 remains the transaction
of general insurance and reinsurance business in the United
Kingdom at Lloyd’s of London and through the Lloyd’s Brussels
platform. Syndicate 0033 is one of the largest composite
Syndicates at Lloyd’s, and has an A.M. Best syndicate rating
of A+ (Superior). Syndicate 0033 underwrites a mixture of
reinsurance, property, casualty and marine and energy
business, as well as a range of specialty lines including
contingency and terrorism risks. Syndicate 0033 trades
through the Lloyd’s worldwide licences and rating. It also
benefits from the Lloyd’s brand. Lloyd’s and Lloyd’s Brussels
has an A+ (Superior) rating from A.M. Best, AA- (Very strong)
rating from S&P, AA- (Very strong) from Fitch and AA- (Very
strong) from Kroll Bond Rating Agency.
Hiscox ESG Syndicate 3033, a sub-syndicate of Hiscox
Syndicate 0033, provides additional insurance capacity for
clients with strong ESG records, including renewable energy
and storage providers. ESG credentials are assessed using a
combination of proprietary and independent third-party data,
with cover available for various insurance lines and industries
operating anywhere in the world where Lloyd’s licences are valid.
The sub-syndicate 3033 is not required to submit separate
annual accounts; instead, its financial information is included in
the annual accounts for Syndicate 0033.
The geographical and currency split of its business is
shown below:
Geographical split of gross premiums written (%)
2025
2024
UK
7
7
Europe
8
7
North America
65
65
Asia
3
3
Rest of the world
17
18
Geographical premiums written settlement currency (%)
2025
2024
Sterling
10
11
Euro
5
5
US Dollar
82
81
Canadian Dollar
3
3
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
3
Review of the business
The result for the year was a profit of $331.8 million
(2024: profit of $316.3 million). A breakdown of divisional
performance is shown below.
Property
The division comprises big-ticket property accounts (covering
both USA and international), property binding authorities
principally focused on the USA, Canada and the Caribbean
and insuring household and small commercial risks, a
product covering flood risk (predominately via our own
proprietary FloodPlus platform), and a new offering focussed
on middle-market commercial property (predominately North
American focussed). 2025 saw a turn in the market, particularly
in open market big-ticket accounts and property binding
authorities, with double digit rate reductions seen in these lines.
Despite several natural catastrophes and secondary peril events
in 2025, such as the California wildfires and Hurricane Melissa,
our loss performance has remained satisfactory. Furthermore,
attritional losses continue to develop at levels below our initial
projections. The underlying portfolio remains strong, following
the re-underwriting which has taken place over the last few
years and this, combined with rate adequacy and attritional
loss performance, as well as some prior-year reserve releases,
enabled the division to deliver a profit in 2025.
Reinsurance
This division covers the Syndicate’s non-marine property
reinsurance business (catastrophe excess of loss including
retrocession, risk excess, and pro-rata reinsurance), marine and
aviation reinsurance, and specialty reinsurance business. The
Syndicate underwrites business for itself and for third-party
capital providers such as insurance companies, other syndicates
(especially Syndicate 6104) and capital market investors. The
division experienced gross premium growth during the year,
driven by increased support from quota share partners and ILS
(Insurance-Linked Securities) investors. Rate reductions have
been seen across the portfolio, following the generational highs
seen in 2023 and 2024, the hardest markets in property
reinsurance since at least 1993.
The California wildfires in
January 2025 caused losses for both the 2024 and 2025
accounts, and the 2024 account was further affected by the
reversal of previously recognised profit commission. The loss has
been offset by benign loss experience throughout the rest of the
year and reserve releases on historic events including Covid-19,
Hurricane Ian, Hurricane Milton and Hurricane Ida.
Marine and energy
This division provides cover for marine hull and war, cargo,
marine and energy liability, and energy property risks comprising
upstream, midstream, downstream, power and renewables. The
rating environment has experienced a continued softening over
the course of this year, and the Syndicate has been actively
managing this transition. Marine and Energy construction
projects have continued to enter the market, alongside growth in
marine war lines, and we have been well positioned to support
these. Geopolitical instability and macroeconomic challenges
remain external factors influencing the division, but we have
successfully navigated these throughout 2025.
Specialty
This division brings together a number of lines such as:
terrorism, product recall, personal accident, kidnap and ransom,
contingency and alternative risk.
The terrorism line has expanded this year with growth in
malicious attack and terrorism related aviation insurance. Trading
conditions continue to be good, despite increased competition.
We continue to maintain a selective approach to underwriting,
mindful of ongoing political and economic instability. Our
collaboration with Google and our own Hiscox USA MGA
(Hiscox Insurance Services Inc.) continues to offer market
differentiation and scalability.
Product recall continues to
experience competition and rate reduction during 2025. We
have maintained our core book and have declined a number of
accounts with unfavourable terms.
The personal accident account has remained stable in terms of
both premium and rating. We have expanded our exposure
within the treaty space and opted not to pursue some new
business under highly competitive terms.
Kidnap and ransom insurance, combined with our exclusive
third-party response providers in Control Risks, is a unique
differentiator for Hiscox.
The contingency market has stabilised after Covid-19, and this
account no longer provides pandemic coverage. The alternative
risk account consists of several specialist binding authorities that
either cover unique risks not typically written by Hiscox or offer
an attractive multi-line opportunity.
Chapter 1
Hiscox Syndicate 0033
annual accounts
Report of the Directors
of the managing agent
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
4
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
Divisional performance
2025
2025
2024
2024
Division
Gross premiums
written
profit
Gross premiums
written
profit
$m
$m
$m
$m
Reinsurance
634.1
58.2
568.9
123.4
Property
534.1
102.4
603.5
65.1
Specialty
532.5
60.7
370.6
30.9
Marine and energy
417.3
50.3
409.4
78.8
Casualty
327.2
45.6
314.5
11.1
Art and private client
67.1
14.6
66.1
7.0
Total
2,512.3
331.8
2,333.0
316.3
Casualty
The division focuses on big-ticket business in the fields of
D&O (directors and officers’), GL (general liability), and cyber
insurance. During 2025, the team has expanded into Financial
Institutions, offering D&O, crime and professional indemnity for
large financial organisations. This is expected to be a significant
growth area for the division going forward. The focus remains on
renewing D&O and cyber policies that still meet adequate rate
criteria. The GL segment is experiencing rate increases in some
areas due to the effects of social inflation, which is raising
settlement values. Overall, the casualty sector in 2025 has
maintained its profitability.
Art and private client
This division includes the fine art, specie and European
household accounts written in Lloyd’s. The majority of the
business is written under lineslips and binding authorities. Some
of the business is sourced through the Hiscox regional offices in
the UK and Europe. Fine art constitutes the bulk of the account.
2026 and the future
The plan for 2026 is based on a portfolio that has performed well
in the last few years being well balanced to be able to withstand
reasonable levels of catastrophe activity and still deliver profits,
followed by the strategic expansion initiative through the newly
established Hiscox Portfolio Solutions division, which will use
data analysis and underwriting expertise to identify promising,
long-term opportunities. This division will enhance current
delegated authority operations and move into more complex
fields such as global MGAs, beta follow, alternative risk transfer
and structured solutions - contributing to ongoing growth and
stable returns.
Whilst rate softening is expected in 2026, this follows several
years of continued rate increases and terms and conditions
improvements. The Syndicate will continue to seek profitable
growth by rebalancing within the market cycles, and seizing
market opportunities where it can. The Syndicate is well
reserved, has a strong reinsurance programme with good
security and a conservative investment portfolio.
The Syndicate’s £1,900 million capacity has increased in 2026,
to take advantage of any opportunities where the market
remains attractive.
Capital
One of the main advantages of trading through Lloyd’s is the
considerably lower capital ratios that are available due to the
diversification of business written in Hiscox Syndicate 0033 and
in Lloyd’s as a whole. The size of the Syndicate is increased or
reduced according to the strength of the insurance environment
in its main classes. At present, Hiscox participates on 72.6%
of the Syndicate, with the remainder being owned by
non-aligned members.
The Hiscox Syndicates Limited (HSL) internal capital model is
used to set the Syndicate’s capital. Syndicate capital is
determined through the submission and agreement by Lloyd’s of
an ultimate solvency capital requirement (SCR), which is subject
to an uplift determined by the Franchise Board to calibrate the
capital required by Lloyd’s. Lloyd’s unique capital structure
provides excellent financial security to policyholders and capital
efficiency for members. This chain of security provides the
financial strength that ultimately backs insurance policies written
at Lloyd’s and has three links:
1.
all premiums received by syndicates are held in trust as the
first resource for paying policyholders’ claims;
2.
every member is required to hold capital at Lloyd’s which is
held in trust and known as Funds at Lloyd’s (FAL). These
funds are intended primarily to cover circumstances where
syndicate assets prove insufficient to meet participating
members’ underwriting liabilities. They are set with reference
to the SCR together with the Lloyd’s uplift. Since FAL is not
under the control of the managing agent, no amount has
been shown in the annual accounts. However, the managing
agent is able to make a call on the members’ FAL to meet
liquidity requirements or to settle losses; and
3.
the central assets are available at the discretion of the
Council of Lloyd’s to meet any valid claim that cannot
be met from the resources of any member further up
the chain.
Lloyd’s works in co-operation with insurance regulators in the
USA and other parts of the world to further strengthen the
security of a Lloyd’s policy. This has resulted in significant
amounts of the Syndicate’s funds being held in various trust
funds. We have determined that the Syndicate has sufficient
levels of liquidity to meet its expected funding requirements.
However, we put members on notice that we may need to
make a cash call, at some time in the future, to improve the
Syndicate’s working capital position.
The Syndicate continues to use the Lloyd’s Brussels platform to
transact European Union risks. Lloyd’s Brussels benefits from
the market’s financial strength through the Central Fund and has
the same financial ratings as Lloyd’s: A.M. Best A+ (Superior),
S&P AA- (Very strong), Fitch AA- (Very strong) and Kroll Bond
Rating Agency AA- (Very strong). The Company is authorised
and regulated by the National Bank of Belgium and capitalised
under Solvency UK rules.
Investment report
Investment income for the Syndicate was a gain of $157.7
million (2024: gain of $128.0 million) equating to a return of
5.6% (2024: return of 4.9%). The Syndicate’s invested
assets totalled $3,086.6 million at 31 December 2025 (2024:
$2,701.4 million).
Fixed income returns were primarily driven by the earn through
of coupon and cash income.
Additionally, mark-to-market bond
returns contributed to the investment income.
Principal risks and uncertainties
A description of the principal risks and uncertainties facing the
Syndicate is set out in note 4.
Chapter 1
Hiscox Syndicate 0033
annual accounts
Report of the Directors
of the managing agent
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
5
Directors’ interests
None of the Directors of the managing agent who served during
the year ended 31 December 2025 were underwriting members
at Lloyd’s for the 2023, 2024, 2025 or 2026 years of account.
M B Boucher – Non Executive (appointed 1 January 2025)
A P Dolphin
H Hanna – (appointed 13 November 2025)
T W Harris – Non Executive
T C Huerlimann – Non Executive Chair
H A Hussain
J L T Illingworth – Non Executive
S E Kemble
P A Lawrence
K J M Markham
J R Musselle
H Rose – (resigned 22 January 2026)
D S Saker – (appointed 22 January 2026)
Disclosure of information to the auditors
The Directors of the managing agent who held office at the date
of approval of this managing agent’s report confirm that, so far
as they are each 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 to make themselves aware of any relevant audit
information and to establish that the Syndicate’s auditors are
aware of that information.
Annual General Meeting
Usually the only formal business conducted at the Syndicate
Annual General Meeting (AGM) is the appointment of the
Syndicate auditors for the following year, and usually the
attendance at the AGM, when it is held, is minimal.
In accordance with the Insurance Accounts Directive
(Lloyd’s Syndicate and Aggregate Accounts) (the 2008
Regulations) a Syndicate AGM was held in 2016 to appoint
PricewaterhouseCoopers LLP (PwC) as the Syndicate’s
registered auditors. The 2008 Regulations contain provisions
for the re-appointment of the Syndicate’s registered auditors.
Lloyd’s requirements allow managing agents to dispense with
the requirement to hold a Syndicate AGM, providing certain
criteria are met.
This year, we therefore give notice that:
•
Hiscox Syndicates Limited does not propose to hold an
AGM of the members of Syndicate 0033 in 2026;
•
PwC will be deemed to be re-appointed as the Syndicate’s
registered auditors pursuant to the 2008 Regulations;
•
members may object to the matters set out above within
21 days of this notice.
If no objections to this are received from any members within the
specified period, we shall notify Lloyd’s to that effect.
If any objections are received, depending on the level or nature
of such objections, we shall then consider whether to:
1.
apply for Lloyd’s consent not to hold an AGM. Lloyd’s may
give its consent subject to any such conditions and
requirements as it may determine; or
2.
convene an AGM.
By order of the Board
David Saker
Chief Financial Officer
17 February 2026
Chapter 1
Hiscox Syndicate 0033
annual accounts
Report of the Directors
of the managing agent
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
6
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
Years of account
2020
2021
2022
2023
2024
2025
2026
Capacity (£m)
1,698
1,699
1,699
1,698
1,696
1,699
1,900
Capacity ($m)*
2,284
2,285
2,285
2,284
2,281
2,285
2,556
Hiscox ownership (£m)
1,233
1,233
1,233
1,233
1,233
1,233
1,378
Hiscox ownership (%)
72.6
72.6
72.6
72.6
72.7
72.6
72.5
*Converted at the closing rate at 31 December 2025.
Statement of managing agent’s responsibilities
Hiscox Syndicate 0033 annual accounts
The managing agent is responsible for preparing the Syndicate
Annual Report and 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 syndicate annual accounts at 31 December
each year in accordance with UK accounting standards and
applicable law (UK Generally Accepted Accounting Practice).
The syndicate annual accounts are required by law to give a
true and fair view of the state of affairs of the Syndicate at that
date and of its profit or loss for that year.
In preparing those syndicate annual accounts, the managing
agent is required to:
•
select suitable accounting policies and then apply them
consistently, subject to changes arising on the adoption
of new accounting standards in the year;
•
make judgements and estimates that are reasonable
and prudent;
•
state whether applicable accounting standards have been
followed, subject to any material departures disclosed and
explained in the syndicate annual accounts; and
•
prepare the syndicate annual accounts on the basis that
the Syndicate will continue to write future business unless
it is inappropriate to presume the Syndicate will do so.
The managing agent is responsible for keeping proper
accounting records that disclose with reasonable accuracy, at
any time, the financial position of the Syndicate and enable it to
ensure that the syndicate annual accounts, including the iXBRL
tagging applied to these 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 prevention and detection of fraud and other irregularities.
The managing agent is responsible for the maintenance and
integrity of the corporate and financial information included on
the company’s website. Legislation in the UK governing the
preparation and dissemination of the syndicate annual accounts
may differ from legislation in other jurisdictions.
We confirm that to the best of our knowledge the syndicate
accounts, including the iXBRL tagging applied to these
accounts, comply with the requirements of the Lloyd’s Syndicate
Accounts instructions version 3.1 as modified by the frequently
asked questions version 1.1 issued by Lloyd’s.
David Saker
Chief Financial Officer
17 February 2026
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
7
Report on the audit of the syndicate annual accounts
Opinion
In our opinion, 0033’s syndicate annual accounts:
•
give a true and fair view of the state of the Syndicate’s
affairs as at 31 December 2025 and of its profit and cash
flows for the year then ended;
•
have been properly prepared in accordance with United
Kingdom Generally Accepted Accounting Practice (United
Kingdom Accounting Standards, including FRS 102 ‘The
Financial Reporting Standard applicable in the UK and
Republic of Ireland’, and applicable law); and
•
have been prepared in accordance with the requirements
of The Insurance Accounts Directive (Lloyd’s Syndicate and
Aggregate Accounts) Regulations 2008 and the
requirements within the Lloyd’s Syndicate Accounts
Instructions version 3.1 as modified by the Frequently
Asked Questions issued by Lloyd’s version 1.1
(‘the Lloyd’s
Syndicate Instructions’).
We have audited the syndicate annual accounts included within
the
Annual
Report and Accounts (the ‘Annual Report’), which
comprise:
B
alance sheet – assets and the
B
alance sheet –
liabilities as at 31 December 2025; the
P
rofit and loss account:
technical account – general business and
P
rofit and loss
account: non-technical
account
– general business, the
S
tatement of cash flows, and the
S
tatement of changes in
members’ balances for the year then ended; and the notes to
the syndicate annual accounts, which include a description of
the significant accounting policies.
Basis for opinion
We conducted our audit in accordance with International
Standards on Auditing (UK) (ISAs (UK)), and 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 6, we have provided no
non-audit services to the Syndicate in the period under audit.
Conclusions relating to going concern
Based on the work we have performed, we have not identified
any material uncertainties relating to events or conditions that,
individually or collectively, may cast significant doubt on the
Syndicate’s ability to continue as a going concern for a period of
at least
twelve
months from when the syndicate annual accounts
are authorised for issue.
In auditing the syndicate annual accounts, we have concluded
that the managing agent’s use of the going concern basis of
accounting in the preparation of the syndicate annual accounts
is appropriate.
However, because not all future events or conditions can be
predicted, this conclusion is not a guarantee as to the
Syndicate’s ability to continue as a going concern.
Our responsibilities and the responsibilities of the managing
agent with respect to going concern are described in the
relevant sections of this report.
Reporting on other information
The other information comprises all of the information in the
Annual Report other than the syndicate annual accounts and our
auditors’ report thereon. The managing agent is responsible for
the other information. Our opinion on the syndicate annual
accounts does not cover the other information and, accordingly,
we do not express an audit opinion or, except to the extent
otherwise explicitly stated in this report, any form of
assurance thereon.
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
Chapter 1
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Chapter 3
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Chapter 4
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underwriting year accounts
84
Independent auditors’ report
To the members of Syndicate 0033
8
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
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
R
eport of the Directors of the managing
agent (the ‘managing agent’s report’), we also considered
whether the disclosures required by The Insurance Accounts
Directive (Lloyd’s Syndicate and Aggregate Accounts)
Regulations 2008 have been included.
Based on our work undertaken in the course of the audit, The
Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate
Accounts) Regulations 2008 requires us also to report certain
opinions and matters as described below.
Managing agent’s report
In our opinion, based on the work undertaken in the course of
the audit, the information given in the managing agent’s report
for the year ended 31 December 2025 is consistent with the
syndicate annual accounts and has been prepared in
accordance with applicable legal requirements.
In light of the knowledge and understanding of the Syndicate
and its environment obtained in the course of the audit, we did
not identify any material misstatements in the managing
agent’s report.
Responsibilities for the syndicate annual accounts and
the audit
Responsibilities of the managing agent for the syndicate
annual accounts
As explained more fully in the
S
tatement of managing agent’s
responsibilities, the managing agent is responsible for the
preparation of the syndicate annual accounts in accordance with
the applicable framework and for being satisfied that they give a
true and fair view. The managing agent is also responsible for
such internal control as they determine is necessary to enable
the preparation of syndicate annual accounts that are free from
material misstatement, whether due to fraud or error.
In preparing the syndicate annual accounts, the managing agent
is responsible for assessing the Syndicate’s ability to continue as
a going concern, disclosing as applicable, matters related to
going concern and using the going concern basis of accounting
unless it is intended for the Syndicate to cease operations, or it
has no realistic alternative but to do so.
Auditors’ responsibilities for the audit of the syndicate
annual accounts
Our objectives are to obtain reasonable assurance about
whether the syndicate annual accounts as a whole are free from
material misstatement, whether due to fraud or error, and to
issue an auditors’ report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with ISAs (UK) will always
detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken
on the basis of these syndicate annual accounts.
Irregularities, including fraud, are instances of non-compliance
with laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect material misstatements
in respect of irregularities, including fraud. The extent to which
our procedures are capable of detecting irregularities, including
fraud, is detailed below.
Based on our understanding of the Syndicate and industry, we
identified that the principal risks of non-compliance with laws
and regulations related to breaches of regulatory principles,
such as those governed by the Prudential Regulation Authority
and the Financial Conduct Authority, and those regulations set
by the Council of Lloyd’s, and we considered the extent to
which non-compliance might have
a material effect on the syndicate annual accounts.
We also considered those laws and regulations that have a
direct impact on the syndicate annual accounts such as The
Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate
Accounts) Regulations 2008
and the Lloyd's Syndicate
Instructions
. We evaluated management’s incentives and
opportunities for fraudulent manipulation of the syndicate annual
accounts (including the risk of override of controls), and
determined that the principal risks were related to manual
Chapter 1
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Hiscox Syndicates 33 and 6104 Report and Accounts 2025
9
journals relating to revenue and accounting estimates in
respect of estimated premium income
and
the valuation of
claims outstanding. Audit procedures performed by the
engagement team included:
•
discussions with senior management, including those in
the risk and compliance functions, including consideration
of known or suspected instances of non-compliance with
laws, regulation and fraud;
•
reading key correspondence with Lloyd’s, in relation to
compliance with laws and regulations;
•
reviewing relevant meeting minutes including those of the
Audit Committee;
•
testing journal entries identified in accordance with our
risk assessment;
•
testing and assessing the appropriateness of insurance
claims reserves;
•
identifying and testing estimated premium income on a
sample basis; and
•
designing audit procedures to incorporate unpredictability
around the nature, timing and extent of our testing.
There are inherent limitations in the audit procedures described
above. We are less likely to become aware of instances of non-
compliance with laws and regulations that are not closely related
to events and transactions reflected in the syndicate annual
accounts. Also, the risk of not detecting a material misstatement
due to fraud is higher than the risk of not detecting one resulting
from error, as fraud may involve deliberate concealment by,
for example, forgery or intentional misrepresentations, or
through collusion.
A further description of our responsibilities for the audit of the
syndicate annual accounts is located on the FRC’s website at:
www.
frc.org.uk/auditorsresponsibilities
. This description forms
part of our auditors’ report.
Use of this report
This report, including the opinions, has been prepared for and
only for the Syndicate’s 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.
Other required reporting
Under The Insurance Accounts Directive (Lloyd’s Syndicate and
Aggregate Accounts) Regulations 2008 we are required to report
to you if, in our opinion:
•
we have not obtained all the information and explanations
we require for our audit; or
•
adequate accounting records have not been kept by the
managing agent in respect of the Syndicate; or
•
certain disclosures of managing agent remuneration
specified by law are not made; or
•
the syndicate annual accounts are not in agreement with
the accounting records.
We have no exceptions to report arising from this responsibility.
Other matter
We draw attention to the fact that this report may be included
within a document to which iXBRL tagging has been applied.
This auditors’ report provides no assurance over whether the
iXBRL tagging has been applied in accordance with section 2
of the Lloyd’s Syndicate Instructions version 3.1.
Neil Riches
(Senior Statutory Auditor)
for and on behalf of
PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
London
17 February 2026
Chapter 1
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Independent auditors’ report
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Chapter 2
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Chapter 3
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61
Chapter 4
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10
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
Profit and loss account:
technical account – general business
Hiscox Syndicate 0033
annual accounts
For the year ended 31 December 2025
2025
2024
Note
$000
$000
Gross premiums written
5
2,512,345
2,333,020
Outward reinsurance premiums
(1,089,231)
(934,207)
Premiums written, net of reinsurance
1,423,114
1,398,813
Change in the provision for unearned premiums:
Gross amount
(112,090)
(35,971)
Reinsurers' share
53,768
45,509
Net change in provisions for unearned premiums
(58,322)
9,538
Earned premiums, net of reinsurance
1,364,792
1,408,351
Allocated investment return transferred from/(to) the non-technical account
157,712
127,968
Claims paid:
Gross amount
10
(876,887)
(999,552)
Reinsurers' share
10
413,567
480,884
Net claims paid
(463,320)
(518,668)
Change in the provision for claims:
Gross amount
(242,635)
(80,527)
Reinsurers' share
111,359
(46,208)
Net change in provisions for claims
(131,276)
(126,735)
Claims incurred, net of reinsurance
(594,596)
(645,403)
Net operating expenses
6
(621,950)
(561,322)
Balance on the technical account for general business
305,958
329,594
The notes on pages 17 to 44 form an integral part of these annual accounts.
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Chapter 2
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Hiscox Syndicates 33 and 6104 Report and Accounts 2025
11
Profit and loss account:
non-technical account – general business
Hiscox Syndicate 0033 annual accounts
For the year ended 31 December 2025
2025
2024
Note
$000
$000
Balance on the technical account for general business
305,958
329,594
Investment income
8
112,646
104,389
Realised gains on investments
8
21,452
9,747
Unrealised gains on investments
8
25,898
16,294
Investment expenses and charges
8
(2,284)
(2,462)
Total investment return
157,712
127,968
Allocated investment return transferred (to)/from the general business technical account
(157,712)
(127,968)
Foreign exchange gains/(losses)
25,870
(13,338)
Profit for the financial year
331,828
316,256
There are no recognised gains or losses in the accounting year other than those dealt with in the technical and non-technical
accounts, therefore no statement of other comprehensive income has been presented.
The notes on pages 17 to 44 form an integral part of these annual accounts.
Chapter 1
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Chapter 2
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Chapter 3
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61
Chapter 4
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84
12
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
Balance sheet – assets
Hiscox Syndicate 0033 annual accounts
At 31 December 2025
2025
2024
Note
$000
$000
Investments
Financial investments
9
3,086,636
2,701,400
Deposits with ceding undertakings
3,394
3,484
3,090,030
2,704,884
Reinsurers' share of technical provisions
Provision for unearned premium
10
376,133
315,169
Claims outstanding
10,14
1,973,272
1,848,529
2,349,405
2,163,698
Debtors
Debtors arising out of direct insurance operations
11
539,698
537,627
Debtors arising out of reinsurance operations
12
307,740
280,914
Other debtors
13
74,345
6,232
921,783
824,773
Other assets
Cash at bank and in hand
19
29,689
16,073
Other
—
—
29,689
16,073
Prepayments and accrued income
Accrued interest
28,112
26,603
Deferred acquisition costs
10
250,854
205,706
Other prepayments and accrued income
8,688
5,873
287,654
238,182
Total assets
6,678,561
5,947,610
The notes on pages 17 to 44 form an integral part of these annual accounts.
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Chapter 2
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45
Chapter 3
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61
Chapter 4
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Hiscox Syndicates 33 and 6104 Report and Accounts 2025
13
Balance sheet – liabilities
Hiscox Syndicate 0033 annual accounts
At 31 December 2025
2025
2024
Note
$000
$000
Capital and reserves
Members' balances
634,568
568,342
634,568
568,342
Technical provisions
Provision for unearned premium
10
1,125,630
1,000,269
Claims outstanding
10,14
3,848,978
3,562,940
4,974,608
4,563,209
Creditors
Creditors arising out of direct insurance operations
15
7,079
2,035
Creditors arising out of reinsurance operations
16
792,250
632,489
Other creditors
17
195,246
122,676
994,575
757,200
Accruals and deferred income
18
74,810
58,859
Total liabilities
6,043,993
5,379,268
Total liabilities, capital and reserves
6,678,561
5,947,610
The notes on pages 17 to 44 form an integral part of these annual accounts.
The syndicate annual accounts on pages 11 to 44 were approved by the Board of Hiscox Syndicates Limited and were signed on its
behalf by
David Saker
Chief Financial Officer
17 February 2026
Chapter 1
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Chapter 2
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Chapter 3
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61
Chapter 4
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84
14
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
Statement of changes in members’ balances
Hiscox Syndicate 0033 annual accounts
For the year ended 31 December 2025
2025
2024
$000
$000
Members' balances brought forward at 1 January
568,342
428,738
Total recognised gains for the year
331,828
316,256
Payments of profit to members’ personal reserve funds
(262,487)
(173,649)
Losses collected in relation to distribution on closure of underwriting year
—
—
Members' agent fees
(3,115)
(3,003)
Members' balances carried forward at 31 December
634,568
568,342
Members participate on 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 in respect of their membership of a particular year.
A profit payment distribution of $433.0 million to members will be proposed in relation to the closing year of account 2023 (2024:
profit payment distribution of $262.5 million in relation to the closing year of account 2022). There are no years of account remaining
open after the three-year period.
Chapter 1
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Chapter 2
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45
Chapter 3
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annual accounts
61
Chapter 4
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84
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
15
Statement of cash flows
Hiscox Syndicate 0033 annual accounts
For the year ended 31 December 2025
2025
2024
Note
$000
$000
Cash flows from operating activities
Profit for the year
331,828
316,256
Increase in gross technical provisions
411,399
83,099
(Increase)/decrease in reinsurers' share of gross technical provisions
(185,707)
10,696
Increase in debtors
(28,897)
(612)
Increase/(decrease) in creditors
164,805
(61,976)
Movement in other assets/liabilities
(29,064)
31,786
Investment return
8
(157,712)
(127,968)
Foreign exchange
19,499
(3,879)
Net cash flows from operating activities
526,151
247,402
Cash flows from investing activities
Purchase of equity and debt instruments
(2,132,501)
(1,700,354)
Sale of equity and debt instruments
1,622,707
1,452,163
Purchase of derivatives
(11)
—
Investment income received
131,814
111,674
Other
88
(178)
Net cash flows from investing activities
(377,903)
(136,695)
Cash flows from financing activities
Distribution of profits*
(174,680)
(176,652)
Collection of losses
—
—
Net cash flows from financing activities
(174,680)
(176,652)
Net decrease in cash and cash equivalents
(26,432)
(65,945)
Effect of exchange rates on cash and cash equivalents
2,492
(1,440)
Cash and cash equivalents at the beginning of the year
119,949
187,334
Cash and cash equivalents at the end of the year
19
96,009
119,949
*Distribution of profits in 2025 in relation to the closing year of account 2022 was $265.6 million which consists of $174.7 million paid in cash and $90.9 million settled
via a transfer of investments. (2024: Distribution of profits in 2024 in relation to the closing year of account 2021 was $176.7 million paid in cash.)
Included within cash and cash equivalents are balances totalling $8.7 million (2024: $6.3 million) not available for immediate use by
the Syndicate.
Chapter 1
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Chapter 2
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45
Chapter 3
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annual accounts
61
Chapter 4
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underwriting year accounts
84
16
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
Notes to the accounts
Hiscox Syndicate 0033 annual accounts
1 Basis of preparation
These annual accounts have been prepared in accordance with
regulation 5 of the Insurance Accounts Directive (Lloyd’s
Syndicate and Aggregate Accounts) Regulations 2008 and
applicable accounting standards in the United Kingdom,
Financial Reporting Standard 102, The Financial Reporting
Standard applicable in the United Kingdom and the Republic
of Ireland (FRS 102), Financial Reporting Standard 103 and
Insurance Contracts (FRS 103) where applicable, and the
Lloyd’s Syndicate Accounts Instructions Version 3.1 as
modified by the Frequently Asked Questions Version 1.1
issued by Lloyd’s.
These annual accounts are presented in US Dollars, which is the
Syndicate’s functional currency. All amounts have been rounded
to the nearest thousand, unless otherwise indicated. Some
disclosure items, for example, Syndicate capacity, are presented
in Sterling as it is denominated in this currency; US Dollar
amounts are converted at the closing rate at 31 December 2025.
The Directors of the managing agent have prepared the annual
accounts on a going concern basis. In adopting the going
concern basis, the Syndicate’s current and forecast solvency
and liquidity positions for the next 12 months and beyond
has been reviewed. As part of the consideration of
the appropriateness of adopting the going concern basis,
the Directors used scenario analysis to assess the robustness
of the Syndicate’s solvency and liquidity positions.
In undertaking this analysis, no material uncertainty in relation to
going concern has been identified, due to the Syndicate's strong
capital and liquidity positions providing resilience to shocks,
underpinned by the Syndicate's approach to risk management
described in note 4.
In addition to the above, Lloyd’s require the Syndicate to
perform an assessment of certain events on the financial position
of the Syndicate by running specific realistic disaster scenarios
(RDS). This is then translated into a capital requirement which
the members must adhere to. It can be demonstrated that
under the selected RDS scenarios, the Syndicate will continue
to operate and any capital requirements can be provided for
from the members’ funds at Lloyd’s (FAL).
In fact, no capital requirement is set for the Syndicate. Capital
requirements are set at the member level and a member is not
allowed to participate in the Syndicate if they have not met their
capital requirement and the capacity of the Syndicate is adjusted
down to reflect this.
The Syndicate benefits from being part of the Lloyd’s capital
structure, often referred to as the chain of security, which
provides excellent financial security to policyholders and capital
efficiency for members. The three elements that make up the
Lloyd’s capital structure are:
1.
syndicate assets – members’ working capital. All premiums
received by the Syndicates are held in trust by the managing
agents as the first resource for paying policyholders’ claims
and to fund regulatory deposits. Until all liabilities have been
provided for, no profits can be released. Every year, the
Syndicates’ reserves for future liabilities are independently
audited and subject to an actuarial review;
2.
funds at Lloyd’s – members’ capital deposited at Lloyd’s.
Each member, whether corporate or individual, must provide
sufficient capital to support their underwriting at Lloyd’s.
Managing agents are required to assess the solvency capital
requirement (SCR) for each syndicate that they manage.
This sets out how much capital the syndicate requires to
cover its underlying business risks at a 99.5% confidence
level; and
3.
Lloyd’s central capital – Lloyd’s central assets, which include
the Central Fund, are available, at the discretion of the
Council of Lloyd’s, to meet any valid claim that cannot be
met from the resources of any member.
After making enquiries, the Directors have a reasonable
expectation that the Syndicate has adequate resources to
continue in operational existence over a period of at least
12 months from the date of this report. For this reason, the
Syndicate continues to adopt the going concern basis in
preparing its annual accounts.
Chapter 1
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Chapter 2
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45
Chapter 3
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61
Chapter 4
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84
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
17
2 Accounting policies
The following principal accounting policies have been applied
consistently in dealing with items which are considered material
in relation to the Syndicate’s annual accounts.
2(a) Premiums
Written gross and outwards reinsurance premiums comprise
premiums on contracts incepting during the financial year,
together with adjustments made in the year to premiums
written in prior years. Written premiums are disclosed gross
of commission payable to intermediaries and exclude taxes
and duties levied on premiums. Premiums written include
estimates for premiums due but not yet received or notified, less
an allowance for expected cancellations. 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 gross premiums written in the income
statements and premiums receivable from insureds and cedants
recorded on the balance sheet.
Outwards reinsurance premiums are also disclosed gross of
commissions and profit participations recoverable from
reinsurers. Retroactive insurance contracts that contain
significant insurance risk and that have an insurance component
and a deposit component are unbundled providing the deposit
component can be measured separately. The deposit
component is recorded directly into the balance sheet within
reinsurers’ share of insurance liabilities with a corresponding
amount in creditors arising out of reinsurance operations. The
reinsurers’ share of insurance liabilities relating to the contracts is
remeasured at each reporting period with movements taken to
the reinsurance recoveries in the income statement. Reinsurance
transactions that transfer risk but are retroactive are included in
reinsurance assets. The excess of estimated liabilities for claims
and claim expenses over the consideration paid is established
as a deferred credit at inception. The deferred amounts are
subsequently amortised using the recovery method over the
settlement period of the reserves and reflected through the
claims and claim adjustment expenses line. In transactions
where the consideration paid exceeds the estimated liabilities
for claims and claim adjustment expenses, a loss is
recognised immediately.
2(b) Unearned premiums
The provision for unearned premiums comprises the proportion
of gross premiums written which is estimated to be earned in the
following or subsequent financial periods, computed using the
daily pro rata method, adjusted if necessary to reflect any
variation in the incidence of risk during the period covered
by the contract.
2(c) Acquisition costs
Acquisition costs comprise all direct and indirect costs arising
from the acquisition of insurance contracts. Deferred acquisition
costs represent the proportion of acquisition costs incurred
which corresponds to the proportion of gross premiums written
which is unearned at the balance sheet date.
2(d) Claims
Claims incurred in respect of general business are charged to
profit or loss as incurred, based on the estimated liability for
compensation owed to contract holders or third parties
damaged by the contract holders. They include direct and
indirect claims settlement costs and arise from events that have
occurred up to the balance sheet date, even if they have not
yet been reported to the Syndicate. The Syndicate does not
discount its liabilities for unpaid claims. Liabilities for unpaid
claims are estimated using the input of assessments for
individual cases reported to the Syndicate and statistical analysis
for the claims incurred but not reported, and an estimate of the
expected ultimate cost of more complex claims that may be
affected by external factors, for example, court decisions.
Claims paid are transactions in the period which have been
signed through Lloyd’s Central Accounting or Lloyd’s Direct
Reporting, adjusted for any material backlogs which may occur
between cash paid and the claims being signed through.
Reinsurers’ share of claims paid are all transactions in the
period which have been signed through the London Outwards
Reinsurance System, adjusted to include an accrual for the
balances which have been billed, but remain unsettled at the
balance sheet date. Reinsurers’ share of claims outstanding
is the amount that it is estimated will be recoverable from
reinsurers based upon the gross claims provisions having
allowed for bad debt. Reinsurance recoveries are estimated
by reviewing individual claims including allowance for claims
incurred but not reported, and assessing the reinsurance
recovery which is expected based on the outwards reinsurance
protections. Amounts recoverable from, or due to, reinsurers
are measured consistently with the amounts associated with
the reinsured insurance contracts and in accordance with the
terms of each reinsurance contract.
While the Directors consider that the gross provisions for claims
and the related reinsurance recoveries are fairly stated on the
basis of the information currently available to them, the ultimate
liability will vary as a result of subsequent information and events
and 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 estimates made, are reviewed regularly.
The benefits to which the Syndicate is entitled under outwards
reinsurance contracts are recognised as reinsurance assets.
These assets consist of short-term balances due from
reinsurers, as well as longer-term receivables (classified
within assets) that are dependent on the expected claims and
benefits arising under the related reinsured insurance contracts.
Amounts recoverable from, or due to, reinsurers are measured
consistently with the amounts associated with the reinsured
insurance contracts and in accordance with the terms of each
reinsurance contract.
2(e) Unexpired risk
Provision is made for unexpired risks arising from general
business where the expected value of the claims and expenses
Chapter 1
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annual accounts
Notes to the accounts
2
Chapter 2
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underwriting year accounts
45
Chapter 3
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annual accounts
61
Chapter 4
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underwriting year accounts
84
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Hiscox Syndicates 33 and 6104 Report and Accounts 2025
attributable to the unexpired periods of policies in force at the
balance sheet date exceeds the unearned premiums provision
in relation to such policies after the deduction of any acquisition
costs deferred. The provision for unexpired risks is assessed at a
business class level which is the level at which the contracts are
managed together.
2(f) Financial assets and liabilities
Financial assets and liabilities include cash at bank and in hand,
financial investments and debtors and creditors. Financial
investments comprise debt securities and other fixed income
securities, shares and other variable yield securities and units in
unit trusts, participation in investment pools, syndicate loans to
central fund and derivative assets.
i.
Financial investments at fair value through profit and loss
Financial investments are managed on a fair value through
the profit and loss accounts (FVPL) basis as they are
managed and their performance is evaluated on that
basis in accordance with the Syndicate’s investment
strategy. The Syndicate has elected to measure
financial investments at fair value through the profit
and loss non-technical account.
ii.
Debtors and creditors
Debtors and creditors are primarily non-derivative financial
assets and liabilities with fixed or determinable payments
and not quoted on an active market. These include
amounts due to and from agents, brokers and insurance
contract holders.
Debtors are initially recognised when due at transaction
price, and where applicable are subsequently measured at
amortised cost using the effective interest rate method.
The recoverability of these assets is assessed at each
balance date and appropriate provision made to ensure
that the balances properly reflect the amounts that will
ultimately be received, taking into account counterparty
credit risk and the contractual terms of the contract. Where
receivable is impaired, the Syndicate reduces the carrying
amount of the receivable accordingly and recognises the
impairment loss in the profit or loss account.
Creditors are initially recognised at transaction price, and
where applicable, are subsequently measured at amortised
cost using the effective interest rate method.
iii.
Derivative financial instruments
Derivative financial instruments are measured at cost for
initial recognition, and subsequently at fair value, with
changes recognised in profit and loss. Transaction
costs incurred in buying and selling derivative financial
instruments are recognised in profit or loss when incurred.
When derivatives are liabilities, they are reported with other
creditors in the balance sheet.
2(g) Investment return
All investment return is initially recognised in the non-technical
account. It is then transferred to the technical account as it all
relates to funds supporting underwriting business.
Realised gains or losses on investments represent the difference
between net sales proceeds and their purchase price.
Unrealised gains and losses on investments represent the
difference between the fair value of investments at the balance
sheet date and their purchase price or their valuation at the
commencement of the year. The movement in unrealised
investment gains/losses includes an adjustment for previously
recognised unrealised gains/losses on investments disposed of
in the accounting period.
2(h) Foreign currency translation
The functional and presentational currency of the Syndicate is
US Dollars which is the currency of the primary economic
environment in which the Syndicate operates.
Transactions denominated in foreign currencies are recorded
at the rates of exchange ruling at the date of the transactions.
At the balance sheet date, monetary assets and liabilities are
translated at the year-end rates of exchange. For the purpose of
foreign currency translation, unearned premiums and deferred
acquisition costs are treated as if they are monetary items.
Differences arising on translation of foreign currency amounts
relating to insurance operations of the Syndicate are included in
profit/(loss) on foreign exchange in the non-technical account.
2(i) Taxation
Under Schedule 19 of the Finance Act 1993, managing agents
are not required to deduct basic rate income tax from trading
income. In addition, all UK basic rate income tax deducted from
Syndicate investment income is recoverable by managing agents
and consequently the distribution made to members or their
members’ agents is gross of tax. Capital appreciation falls within
trading income and is also distributed gross of tax.
No provision has been made for any US 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 ‘other debtors’.
No provision has been made for any overseas tax payable by
members on underwriting results.
2(j) Pension costs
The Hiscox Group has defined contribution and defined benefit
pension schemes.
The defined benefit scheme closed to future accrual with effect
from 31 December 2006 and active members were offered
membership of the defined contribution scheme from 1 January
2007. A defined contribution plan is a pension plan under which
the Group pays fixed contributions into a separate entity and has
no further obligation beyond the agreed contribution rate. A
defined benefit plan is a pension plan that defines an amount of
pension benefit that an employee will receive on retirement,
usually dependent on one or more factors such as age, years of
service and compensation. For defined contribution plans, the
Group pays contributions to publicly or privately administered
pension insurance plans on a contractual basis. The
contributions are recognised as an employee benefit expense
when they are due. Prepaid contributions are recognised as an
asset to the extent that a cash refund or a reduction in future
payments is available. The amount recognised on the Hiscox
Group balance sheet in respect of defined benefit pension plans
is the present value of the defined benefit obligation at the
balance sheet date, less the fair value of plan assets. Plan assets
Chapter 1
Hiscox Syndicate 0033
annual accounts
Notes to the accounts
2
Chapter 2
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underwriting year accounts
45
Chapter 3
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annual accounts
61
Chapter 4
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underwriting year accounts
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Hiscox Syndicates 33 and 6104 Report and Accounts 2025
19
include insurance contracts. The calculation of the defined
benefit obligation is performed annually by a qualified actuary
using the projected unit method. As the plan is closed to all
future benefit accrual, each participant’s benefits under the plan
are based on their service to the date of closure or earlier
leaving, their final pensionable earnings at the measurement date
and the service cost is the expected administration cost during
the year. Past service costs are recognised immediately in the
income statement.
Pension contributions relating to Group recharges are charged
to Syndicate 0033 and included within net operating expenses.
Contributions and movement in surpluses or deficits on the
defined benefit scheme, that relate to Syndicate 0033 are
allocated equally between all open years of account.
2(k) Bad debts
Bad debts are provided for only 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.
2(l) Reinsurers’ commissions and profit participations
Reinsurers’ commissions and profit participations, which include
reinsurance profit commission and overriding commission, are
treated as a contribution to expenses.
2(m) Cash at bank and in hand
This consists of cash at bank and in hand and deposits held
at call with banks, and other highly liquid investments that are
readily convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value.
2(n) Deposits with ceding undertakings
Deposits with ceding undertakings are funds held by Lloyd’s
Brussels on behalf of the Syndicate to settle Part VII claims.
These funds are held at amortised cost in the balance sheet.
3 Judgements and key sources of estimation uncertainty
In the application of the accounting policies, which are described
in note 2, the Directors are required to make judgements,
estimates and assumptions that affect the amounts reported for
assets and liabilities 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
annual accounts.
3(a) 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 the technical provisions note 10. For general
insurance contracts estimates are made for the expected
ultimate cost of claims notified at the balance sheet date and
the cost of claims incurred but not yet reported. It can take a
significant period of time 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. The
Syndicate’s estimate of claims and expenses is mainly achieved
through the application of a number of commonly accepted
actuarial projection methodologies based on the following:
•
the development of previously paid claims, where
payments to date are extrapolated for each prior year;
•
the development of claims based on seasonally adjusted
exposure curves;
•
incurred claims development, where incurred claims to
date for each year are extrapolated based upon observed
development of earlier years; and
•
expected loss ratios.
The claims provisions are initially calculated gross of any
reinsurance recoveries. A separate estimate is made of the
amounts recoverable from the Syndicate’s reinsurance
arrangements including excess of loss and quota share
contracts, having due regard for collectability.
Claims provisions are subject to regular review, both within the
Syndicate and externally. Management discuss and challenge
the actuarial best estimate and booked claims provisions at the
quarterly Reserving Committee meeting, whose membership
includes Directors of the managing agent. External actuaries are
also engaged to calculate an independent best estimate of the
ultimate cost of claims at 31 December annually and present a
statement of actuarial opinion (SAO) against which the
Syndicate’s best estimate is assessed.
The Syndicate tests the adequacy of its unearned premium
liability by comparing current estimates of future claims and
claims handling expenses attributable to the unexpired periods
of policies at the balance sheet date which to the unearned
premium liability net of acquisition costs. As set out in note 2(e),
any deficiency is recognised in the income statement. The
related deferred acquisition costs are first written down and any
additional liability required is then recognised as an unexpired
risk reserve (URR).
3(b) Premium recognition
The gross premiums written are initially based on estimated
premium income (EPI) of each contract. EPI estimates are
based on information provided by brokers and coverholders,
past underwriting experience, the contractual terms of the policy
and prevailing market conditions. The EPI estimates are
reviewed on a regular basis, and premiums are adjusted over
time as needed to match the actual signed premium. Gross
premiums written under binding authorities are booked as the
underlying contracts incept. The Syndicate allocates the
expected premium receipts to each period of gross premiums
written on the basis of the passage of time. If the expected
pattern of release of risk during the coverage period differs
significantly from the passage of time, for example, a group of
contracts that is exposed to large natural catastrophe risk
concentrated in the first or second half of the year, then the
allocation is made on the basis of the expected timing of claims
incurred. At a portfolio level this is considered to provide a
reasonable estimate for the full year of the pattern of risk over the
coverage period. Gross premiums written includes an estimation
for reinstatement premiums which is determined based on
incurred losses held in the technical provisions.
3(c) Fair value of financial instruments
The fair value of financial instruments that are not traded in an
active market is determined by using valuation techniques.
HSL uses judgement to select a variety of methods and make
assumptions that are mainly based on market conditions existing
at the end of each reporting period. See note 4 for discussion of
Chapter 1
Hiscox Syndicate 0033
annual accounts
Notes to the accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
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underwriting year accounts
84
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Hiscox Syndicates 33 and 6104 Report and Accounts 2025
the related risks. See note 9 for an analysis of the measurement
attributes of the financial instruments.
3(d) Pension costs
In light of the recharge for the defined benefit scheme,
obligations are calculated and valued with reference to
a number of actuarial assumptions including mortality, inflation
rates and discount rate, many of which have been subject to
recent volatility.
4 Management of risk
The Syndicate’s overall appetite for accepting and managing
varying classes of risk is defined by the HSL Board. The HSL
Board has developed a governance framework and has set risk
management policies and procedures which include risk
identification, risk management and mitigation 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 economic and social performance.
The HSL Board exercises oversight of the development and
operational implementation of its risk management policies and
procedures through the HSL Risk Committee. Ongoing
compliance is monitored through an internal audit function,
shared with other Hiscox Ltd subsidiaries, which has operational
independence, a charter and clear upwards reporting structures
back into the HSL Audit Committee and HSL Board.
The Syndicate is fundamentally driven by a desire to originate,
retain and service insurance contracts to maturity. The
Syndicate’s cash flows are funded mainly through advance
premium collections and the timing of such premium inflows is
reasonably predictable.
In addition, the majority of material cash outflows are typically
triggered by the occurrence of insured events, although the
timing, frequency and severity of claims can fluctuate.
The principal sources of risk relevant to the Syndicate’s
operations and its annual accounts fall into five broad categories:
climate risk, insurance risk, financial risk, regulatory risk and
operational risk.
Operational risk
The Syndicate is exposed to the risk of direct or indirect loss
resulting from internal processes, people or systems, or from
external events. This includes cyber security risk as well as
major IT, systems or service failures. HSL actively monitors and
controls its operational risks. HSL demonstrated continued
resilience, underscoring the benefits of its business model,
disciplined risk management and ongoing investment in
technology and infrastructure. Hiscox has implemented
several operational risk management processes, which
include a continued focus on Group-wide crisis management
response planning and enhancing its defences and response
to information security and cyber threats. Hiscox regularly
reassesses its information security standards and methodologies
to ensure appropriate governance and consistency in its
approach. In 2024, we also introduced an artificial intelligence
(AI) standard to ensure we have appropriate governance and
controls around our own use of AI.
The Hiscox Group uses a governance, control and risk system
to perform the annual risk and control self assessment exercise. It
also enables more robust reporting and analysis of operational
risk events, driving greater insight and lessons learnt.
Our third-
party suppliers are often crucial to our business, enabling the
delivery of high-quality service to our customers. We have an
established supplier code of conduct which sets out the
standards we expect our suppliers to operate to. Due diligence is
carried out not only as part of an initial sourcing exercise but
refreshed on an annual basis. We are investing in supply chain
management tools and processes which help us better manage
risk, including being part of the Financial Services Qualification
Scheme, utilising ESG ratings and verification tooling.
Insurance risk
The predominant risk to which the Syndicate is exposed is
insurance risk which is assumed through the underwriting
process. Insurance risk can be subcategorised into:
(i) underwriting risk including the risk of catastrophe and
systemic insurance losses and the insurance cycle and
competition; and (ii) reserving risk.
(i) Underwriting risk
Underwriting risk is defined as the risk that insurance
premiums will not be sufficient to cover future insurance
losses and associated expenses. Underwriting risk also
encompasses people, process and system risks directly
related to underwriting.
The HSL Board sets the Syndicate’s underwriting strategy and
risk appetite, seeking to benefit from identified opportunities in
light of other relevant anticipated market conditions.
Specific underwriting objectives such as aggregation limits,
reinsurance protection thresholds, geographical disaster event
risk exposures and line of business diversification parameters
are prepared and reviewed by the HSL management team in
order to translate the HSL Board’s summarised underwriting
strategy into specific measurable actions and targets. These
actions and targets are reviewed and approved in advance of
each underwriting year.
The HSL Board continually reviews its
underwriting strategy throughout each underwriting year in light
of evolving market pricing, loss conditions and as opportunities
present themselves.
The Syndicate’s underwriters and HSL management consider
underwriting risk at an individual contract level, and also from a
portfolio perspective where the risks assumed in similar classes
of policies are aggregated and the exposure evaluated in light of
historical portfolio experience and prospective factors. To assist
with the process of pricing and managing underwriting risk, the
Syndicate routinely performs a wide range of activities including
the following:
•
regularly updating the Syndicate’s risk models
•
documenting, monitoring and reporting against the
Syndicate’s strategy to manage risk;
•
developing systems that facilitate the identification of
emerging issues promptly;
•
utilising sophisticated computer modelling tools to simulate
catastrophes and measure the resultant potential losses
before and after reinsurance;
•
monitoring legal developments and amending the wording
of policies when necessary;
Chapter 1
Hiscox Syndicate 0033
annual accounts
Notes to the accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
21
•
regular monitoring of risk exposures across individual
underwriting portfolios and known accumulations of risk;
•
examining the aggregated exposures in advance of
underwriting further large risks; and
•
developing processes that continually factor market
intelligence into the pricing process.
The delegation of underwriting authority to specific individuals,
both internally and externally, is subject to regular reviews. All
underwriting staff and binding agencies are set strict parameters
in relation to the levels and types of business they can
underwrite, based on individual levels of experience and
competence. These parameters cover areas such as maximum
sums insured per insurance contract, maximum gross premiums
written and maximum aggregated exposures per geographical
zone
and risk class. All delegations are strictly controlled
through these underwriting guidelines and limits and extensive
monitoring, review and auditing of the agencies. The Syndicate
compiles estimates of losses arising from realistic disaster events
using statistical models, alongside input from its underwriters.
They also represent areas of potentially significant exposure
for the Syndicate. In addition to understanding the loss the
Syndicate may suffer from an event, it is important to ensure
that the risk models used are calibrated to the risks faced today.
This includes recognising and forecasting inflationary trends,
updating trends in claims payments, and capturing climate
change-related impacts. HSL has a climate risk framework,
which is used to assess where research resources should be
focused, and models updated, and as a result improves not only
the Syndicate’s understanding of the potential impact of a
changing climate but also the Syndicate’s ability to respond.
The selection of extreme loss scenario events is adjusted
each year and they are not therefore necessarily directly
comparable from one year to the next. The events are extreme
and unprecedented, and as such estimates may prove
inadequate as a result of incorrect assumptions, model
deficiencies, or losses from unmodelled risks. This means that
should a realistic disaster actually occur, the Syndicate’s final
ultimate losses could materially differ from those estimates
modelled by management. The Syndicate’s insurance
contracts include provisions to contain losses, such as the
ability to impose deductibles and demand reinstatement
premiums in certain cases.
In addition, in order to manage the Syndicate’s exposure to
repeated catastrophic events (both man-made and natural
catastrophes), relevant policies frequently contain payment limits
to cap the maximum amount payable from these insured events
over the contract period. In the case of climate-exposed risks
specifically, the vast majority of underwriting contracts written
are annual in nature and thus can be revised frequently. This
flexibility is a key tool for managing the multi-decade challenge
of climate risks holistically.
The Syndicate also manages underwriting risk by purchasing
reinsurance. Reinsurance protection, such as excess of loss
cover, is purchased to mitigate the effect of catastrophes and
unexpected concentrations of risk. The scope and type of
reinsurance protection purchased may change depending on the
extent and competitiveness of cover available in the market. The
Syndicate is exposed to the risk that the reinsurance protection
that has been bought is inadequate or inappropriate, but this is
monitored and managed using modelling techniques, supervised
by a dedicated reinsurance purchase group.
The specific insurance risks accepted by the Syndicate fall
broadly into the following main categories: reinsurance inwards,
property and casualty. The Syndicate also considers climate
change to be a cross-cutting risk with potential to impact each
existing risk type, rather than a standalone risk.
These specific categories are defined for risk review purposes
only, as each contains risks specific to the nature of the cover
provided. The following describes the policies and procedures
used to identify and measure the risks associated with each
individual category of business.
Reinsurance inwards
The Syndicate’s reinsurance inwards acceptances are primarily
focused on large property portfolios held by other insurance
companies predominantly in North America and other developed
economies. This business is characterised more by large claims
arising from individual events or catastrophes than the high-
frequency, low-severity attritional losses associated with certain
other business written by the Syndicate. Multiple insured losses
can periodically arise out of a single natural or man-made
occurrence. The main circumstances that result in claims against
the reinsurance inwards book are conventional catastrophes,
such as earthquakes or storms, but also includes other events
including fires, explosions and cyber events. The occurrence and
impact of these events are very difficult to model over the short
term which complicates attempts to anticipate loss frequencies
on an annual basis. In those years where there is a low incidence
of severe catastrophes, claims frequencies on the reinsurance
inwards book can be relatively low.
A significant proportion of the reinsurance inwards business
provides cover on an excess of loss basis for individual events.
The Syndicate agrees to reimburse the cedant once their losses
exceed a minimum level. Consequently, the frequency and
severity of reinsurance inwards claims are related not only to the
number of significant insured events that occur, but also to their
individual magnitude. If numerous catastrophes occurred in any
one year, but the cedant’s individual loss on each was below the
minimum stated, then the Syndicate would have no liability under
such contracts. Maximum gross line sizes and aggregate
exposures are set for each type of programme.
The Syndicate writes reinsurance risks for periods of mainly one
year so that contracts can be assessed for pricing and terms
and adjusted to reflect any changes in market conditions and the
evolving impact of climate change.
Property risks
The Syndicate directly underwrites a diverse range of property
risks. Property contracts cover fixed and moveable assets such
as ships and other vessels, cargo in transit, energy platforms
and installations, pipelines, other subsea assets, commercial
buildings, industrial plants and machinery, artwork, antiques,
classic cars and jewellery. These assets are typically exposed to
natural catastrophe, large loss events or attritional claims arising
from conventional hazards such as collision, flooding, fire and
theft. Climate change may give rise to more frequent and severe
extreme weather events (for example windstorms and river
flooding) and it may be expected that their frequency will
increase over time.
Chapter 1
Hiscox Syndicate 0033
annual accounts
Notes to the accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
22
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
For this reason, the Syndicate accepts major property insurance
risks for periods of mainly one year so that each contract can be
repriced on renewal to reflect the continually evolving risk profile.
Risks covered for periods exceeding one year are certain
specialist lines such as marine and offshore construction
projects which can typically have building and assembling
periods of between three and four years.
Casualty risks
The casualty underwriting strategy attempts to ensure that the
underwritten risks are well diversified in terms of type and
amount of potential hazard, industry and geography. However,
the Syndicate’s exposure is more focused towards professional,
general, technological and marine liability risks. Claims typically
arise from incidents such as errors and omissions attributed to
the insured, professional negligence and general liability losses
which can be property damage or bodily injury in nature. The
provision of insurance to cover allegations made against
individuals acting in the course of fiduciary or managerial
responsibilities, including directors and officers’ insurance,
is one example of a casualty insurance risk.
The Syndicate’s casualty insurance contracts mainly experience
low-severity attritional losses. By nature, some casualty losses
may take longer to settle than other categories of business. In
addition, there is increased potential for accumulation in casualty
risk due to the growing complexity of business, technological
advances, and greater interconnectivity and interdependency
across the world due to globalisation.
The Syndicate’s pricing strategy for casualty insurance policies is
typically based on historical claim frequencies and average claim
severities, adjusted for inflation and extrapolated forwards to
incorporate projected changes in claims patterns. In determining
the price of each policy, an allowance is also made for
acquisition and administration expenses, reinsurance costs,
investment returns and the Syndicates’s cost of capital.
The market for cyber insurance is still a relatively immature one,
complicated by the fast-moving nature of the threat, as the world
becomes even more connected. The risks associated with cyber
insurance are multiplying in both diversity and scale, with
associated financial and reputational consequences of failing to
prepare for them. The Syndicate has focused its cyber expertise
on prevention, in addition to the more traditional recovery product.
(ii) Reserving risk
Reserving risk is defined as the risk that reserves set, in respect
of insurance claim losses, are ultimately insufficient to fully settle
these claims and associated expenses. This definition also
applies to reserves which have been set previously. The
Syndicate’s procedures for estimating the outstanding costs
of settling insured losses at the balance sheet date, including
claims incurred but not yet reported, are detailed in note 3(a).
The Syndicate’s provision estimates are subject to regular and
rigorous review by senior management from all areas of the
business. The auditors provide an external review of the reserves
together with an independent actuarial opinion. The final
provision is approved by the HSL Board.
Similar to the underwriting risk detailed above, the Syndicate’s
reserve risks are well diversified. Short-tailed claims are
normally notified and settled within 12-to-24 months of the
insured event occurring. Those claims taking the longest time
to develop and settle typically relate to casualty risks, where
legal complexities occasionally develop regarding the insured’s
alleged omissions or negligence. The length of time required to
obtain definitive legal judgments and make eventual settlements
exposes the Syndicate to a degree of reserving risk in an
inflationary environment.
The final quantum for casualty claims may not be established
for many years after the event. A significant proportion of the
casualty insurance amounts reserved on the balance sheet may
not be expected to settle within 24 months of the balance sheet
date. Consequently, our approach is not to recognise favourable
experience in the early years of development in the reserving
process when setting the booked reserve.
Certain marine and property insurance contracts, such as those
relating to subsea and other energy assets and the related
business interruption risks, can also take longer than normal to
settle. This is because of the length of time required for detailed
subsea surveys to be carried out and damage assessments
agreed, together with difficulties in predicting when the assets
can be brought back into full production. For the inwards
reinsurance lines, there is often a time lag between the
establishment and re-estimation of case reserves and reporting
to the Syndicate. The Syndicate works closely with the reinsured
to ensure timely reporting and also centrally analyses industry
loss data to verify the reported reserves.
In addressing the impact of inflation HSL focuses on:
•
regular case reserve reviews to ensure adequacy;
•
uplifts to incurred but not reported (IBNR) reserves to allow
for current and future expectations of high inflation rates;
•
assessment of rate increases against future inflation to
assess loss ratio impacts.
The Syndicate maintains explicit reserve uplifts to allow for the
impact of high inflation in recent years. Loss ratios are closely
Chapter 1
Hiscox Syndicate 0033
annual accounts
Notes to the accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
23
Table (a)
General insurance business sensitivities as at 31 December 2025
2.5 %
(2.5)%
5.0 %
(5.0)%
$000
$000
$000
$000
Claims outstanding - gross of reinsurance
96,224
(96,224)
192,449
(192,449)
Claims outstanding - net of reinsurance
46,893
(46,893)
93,785
(93,785)
General insurance business sensitivities as at 31 December 2024
2.5 %
(2.5) %
5.0 %
(5.0) %
$000
$000
$000
$000
Claims outstanding - gross of reinsurance
89,074
(89,074)
178,147
(178,147)
Claims outstanding - net of reinsurance
42,860
(42,860)
85,721
(85,721)
monitored to ensure they include an appropriate allowance for
future inflation.
Booked reserves include a net margin of $189.5 million (2024:
$173.2 million), representing 9.8% (2024: 9.8%) of net booked
reserves. This is the margin above the best estimate to help
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 liabilities established could be significantly lower or higher
than the ultimate cost of settling the claims arising. This level
of uncertainty varies between the classes of business and
the nature of the risk being underwritten and can arise from
developments in case reserving for large losses and
catastrophes, or from changes in estimates of claims IBNR.
Table (a) 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.
Financial risk
The Syndicate is exposed to financial risk through its ownership
of financial instruments including financial liabilities. The
Syndicate invests in financial assets in order 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 thereon are
not sufficient to fund the obligations.
The most important variables that could result in such an
outcome relate to the interest rate risk, credit risk, liquidity risk
and currency risk.
The Syndicate’s policies and procedures for managing exposure
to these specific categories of risk are detailed below.
(a) Reliability of fair values
The Syndicate has elected to carry all financial investments at fair
value through profit or loss as they are managed and evaluated
on a fair value basis in accordance with a documented strategy.
All of the financial investments held by the Syndicate are
available to trade in markets and the Syndicate therefore seeks
to determine fair value by reference to published prices or as
derived by pricing vendors using observable quotations in the
most active financial markets in which the assets trade.
The fair value of financial assets is measured primarily with
reference to their closing bid-market prices at the balance sheet
date. The ability to obtain quoted bid-market prices may be
reduced in periods of diminished liquidity. In addition, those
quoted prices that may be available may represent an unrealistic
proportion of market holdings or individual trade sizes that could
not be readily available to the Syndicate. In such instances, fair
values may be determined or partially supplemented using other
observable market inputs such as prices provided by market
makers such as dealers and brokers and prices achieved in the
most recent regular transaction of identical or closely-related
instruments occurring before the balance sheet date but
updated for relevant perceived changes in market conditions. At
31 December 2025, the Syndicate held mortgage backed fixed
income securities in its investment portfolio. Together with the
Syndicate’s investment managers, management continues to
monitor the potential for any adverse development associated
with this investment exposure through the analysis of relevant
factors such as credit ratings, collateral, subordination levels and
default rates in relation to the securities held.
The Syndicate did not experience any material defaults on debt
securities during the year.
Valuation of these securities will continue to be impacted by
external market factors including default rates, rating agency
actions and liquidity. The Syndicate will make adjustments to
the investment portfolio as appropriate as part of its overall
portfolio strategy, but its ability to mitigate its risk by selling
or hedging its exposures may be limited by the market
environment. The Syndicate’s future results may be impacted,
both positively and negatively, by the valuation adjustments
applied to these securities.
(b) Interest rate risk
Debt and fixed income investments represent a significant
proportion of the Syndicate’s assets and the HSL Board
continually monitors investment strategy to minimise the risk of a
fall in the portfolio’s market value which could affect the amount
of business that the Syndicate is able to underwrite or its ability
to settle claims as they fall due.
The fair value of the Syndicate’s investment portfolio of debt and
fixed income securities is normally inversely correlated to
movements in market interest rates. If market interest rates rise,
the fair value of the Syndicate’s debt and fixed income
investments would tend to fall and vice-versa if credit spreads
remained constant. The Syndicate may also, from time to time,
enter into interest rate future contracts in order to minimise the
interest rate risk.
The fair value of debt and fixed income assets in the Syndicate’s
balance sheet at 31 December is analysed below:
Table (b)
31 December
2025
31 December
2024
% weighting
% weighting
Government issued bonds and instruments
13
17
Government supported*
4
2
Asset backed securities
7
7
Mortgage backed instruments – agency
7
4
Mortgage backed securities – non agency
2
3
Corporate bonds
67
67
*Includes supranational debt, agency debt and federal deposit insurance
corporation bank bonds.
The sensitivity analysis for interest rate risk illustrates how
changes in the fair value or future cash flows of a financial
instrument will fluctuate because of changes in market interest
rates at the reporting date. The impact of an increase or
decrease of 50 basis points in interest yields is shown in the
table below. Insurance contract liabilities are not directly sensitive
to the level of market interest rates, as they are undiscounted
and contractually non-interest-bearing.
Chapter 1
Hiscox Syndicate 0033
annual accounts
Notes to the accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
24
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
Table (c)
Interest rate risk
2025 impact
on profit
2025 impact
on members'
balance
2024 impact
on profit
2024 impact
on members'
balance
$000
$000
$000
$000
Plus 50 basis points shift
in yield curves
(33,583) (33,583)
(27,202) (27,202)
Minus 50 basis points
shift in yield curves
33,583 33,583
27,202 27,202
(c) Credit risk
The Syndicate has exposure to credit risk, which is the risk that
a counterparty will suffer a deterioration in actual or perceived
financial strength and be unable to pay amounts in full when
due, or that for any other reason they renege on a contract or
alter the terms of an agreement.
The concentrations of credit risk exposures held by insurers may
be expected to be greater than those associated with other
industries, due to the specific nature of reinsurance markets and
the extent of investments held in financial markets. In both
markets, the Syndicate interacts with a number of counterparties
who are engaged in similar activities with similar customer
profiles, and often in the same geographical areas and industry
sectors. Consequently, as many of these counterparties are
themselves exposed to similar economic characteristics, one
single localised or macroeconomic change could severely
disrupt the ability of a significant number of counterparties to
meet the Syndicate’s agreed contractual terms and conditions.
Key areas of exposure to credit risk include:
•
reinsurers’ share of insurance liabilities;
•
amounts due from reinsurers in respect of claims
already paid;
•
amounts due from insurance contract holders
•
amounts due from insurance intermediaries; and
•
counterparty risk with respect to cash and cash
equivalents, and investments and other deposits
including deposits and derivative transactions.
The Syndicate’s maximum exposure to credit risk is represented
by the carrying values of monetary assets and reinsurance assets
included in the balance sheet at any given point in time. The
Syndicate does not use credit derivatives or other products to
mitigate maximum credit risk exposures on reinsurance assets,
but collateral may be requested to be held against these assets.
The Syndicate structures the levels of credit risk accepted by
placing limits on their exposure to a single counterparty, or
groups of counterparties, and having regard to geographical
locations. Such risks are subject to an annual or more frequent
review. There is no significant concentration of credit risk with
respect to loans and receivables, as the Syndicate has a large
number of internationally dispersed debtors with unrelated
operations. Reinsurance is used to contain insurance risk.
This does not, however, discharge the Syndicate’s liability as
primary insurer. If a reinsurer fails to pay a claim for any reason,
the Syndicate remains liable for the payment to the policyholder.
The creditworthiness of reinsurers is therefore continually
reviewed throughout the year.
The managing agent assesses the creditworthiness of all
reinsurers by reviewing credit grades provided by rating agencies
and other publicly available financial information detailing their
financial strength and performance. The financial analysis of
reinsurers produces an assessment categorised by S&P rating
(or equivalent when not available from S&P).
Despite the rigorous nature of this assessment exercise, and
the resultant restricted range of reinsurance counterparties
with acceptable strength and credit credentials that
emerges therefrom, some degree of credit risk concentration
remains inevitable.
While the rating agencies provide strong analysis on the
financials and governance of a reinsurance security, the HSL
Board also takes account of qualitative factors. The HSL Board
considers the reputation of its reinsurance partners and also
receives details of recent payment history and the status of any
ongoing negotiations between other Hiscox entities and these
third parties. The final score that a security receives will
determine how much reinsurance credit risk the Syndicate is
willing to have with that security based on the exposure
guidelines. This information is used to update the reinsurance
purchasing strategy. Individual operating units maintain records
of the payment history for significant brokers and contract
holders with whom they conduct regular business
.
The exposure to individual counterparties is also managed
by other mechanisms, such as the right of offset, where
counterparties are both debtors and creditors of the
Syndicate, and obtaining collateral from unrated counterparties.
Management information reports detail provisions for impairment
on loans and receivables and subsequent write-off. Exposures
to individual intermediaries and groups of intermediaries are
collected within the ongoing monitoring of the controls
associated with regulatory solvency.
The Syndicate also mitigates counterparty credit risk by
concentrating debt and fixed income investments in a portfolio
of typically high-quality corporate and government bonds.
Chapter 1
Hiscox Syndicate 0033
annual accounts
Notes to the accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
25
An analysis of the Syndicate’s major exposures to counterparty credit risk excluding direct policyholder debtors, based on S&P or
equivalent rating at 31 December, is presented in the table below:
Table (d)
At 31 December 2025
AAA
AA
A
BBB
Other
Not rated
Total
$000
$000
$000
$000
$000
$000
$000
Debt securities and other fixed income securities
630,287 548,731
1,182,955
589,429
10,426
46,030
3,007,858
Shares and other variable yield securities
and units in unit trusts
63,132
3,116
72
—
—
—
66,320
Participation in investment pools
—
—
—
—
—
12,447
12,447
Syndicate loans to central fund
—
—
—
—
—
—
—
Derivative assets
—
—
—
—
—
11
11
Deposits with ceding undertakings
—
3,394
—
—
—
—
3,394
Reinsurers’ share of claims outstanding
126,572
1,057,571
789,129
—
—
—
1,973,272
Debtors arising out of direct insurance operations
—
—
—
—
— 464,969 464,969
Debtors arising out of reinsurance operations
34,963 101,196 171,581
—
—
— 307,740
Cash at bank and in hand
—
—
29,689
—
—
—
29,689
Other debtors and accrued interest
—
— 102,457
—
—
— 102,457
Total
854,954
1,714,008
2,275,883
589,429
10,426 523,457
5,968,157
At 31 December 2024
AAA
AA
A
BBB
Other
Not rated
Total
$000
$000
$000
$000
$000
$000
$000
Debt securities and other fixed income securities
336,727 663,675 865,446 662,270
12,079
35,121
2,575,318
Shares and other variable yield securities
and units in unit trusts
88,482
5,781
9,613
—
—
— 103,876
Participation in investment pools
—
—
—
—
—
—
—
Syndicate loans to central fund
—
—
22,206
—
—
—
22,206
Derivative assets
—
—
—
—
—
—
—
Deposits with ceding undertakings
—
—
3,484
—
—
—
3,484
Reinsurers’ share of claims outstanding
95,531 774,183 978,815
—
—
—
1,848,529
Debtors arising out of direct insurance operations*
—
—
—
—
— 463,979 463,979
Debtors arising out of reinsurance operations
39,172 102,290 139,452
—
—
— 280,914
Cash at bank and in hand
—
—
16,073
—
—
—
16,073
Other debtors and accrued interest
4,579
11,957
16,299
—
—
—
32,835
Total
564,491
1,557,886
2,051,388
662,270
12,079 499,100
5,347,214
*During 2024, Lloyd’s introduced changes to the syndicate accounts process to rationalise and standardise financial reporting across the market. As a result, certain
comparative information has been represented to ensure consistency with current year presentation and compliance with the Lloyd’s Syndicate Accounts Instructions.
Within the financial investments, which include debt securities and other fixed income securities, shares and other variable yield
securities and units in unit trusts, participation in investment pools, syndicate loans to central fund and cash equivalent assets, there
are exposures to a range of government borrowers, on either a direct or guaranteed basis, and banking institutions. The Syndicate,
together with its investment managers, closely manages its geographical exposures across government issued and supported debt.
At 31 December 2025 and 2024, the Syndicate held no material debt or fixed income assets that were past due or impaired beyond
their reported fair values. For the current and prior year, the Syndicate did not experience any material defaults on debt securities.
(d) Financial assets that are due or impaired
The Syndicate has no debtors that are impaired at the reporting date. These debtors have been individually assessed for impairment
by considering information such as the occurrence of significant changes in the counterparty’s financial position, patterns of historical
payment information and disputes with counterparties. An analysis of the carrying amounts of past due or impaired debtors is
presented in the table below:
Chapter 1
Hiscox Syndicate 0033
annual accounts
Notes to the accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
26
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
Table (e)
Neither past due
nor impaired assets
Past due but not
impaired assets
Gross value of
impaired assets
Impairment
allowance
Total
At 31 December 2025
$000
$000
$000
$000
$000
Debt securities and other fixed income securities
3,007,858
—
—
— 3,007,858
Shares and other variable yield securities and units in unit trusts
66,320
—
—
—
66,320
Participation in investment pools
12,447
—
—
—
12,447
Syndicate loans to central fund
—
—
—
—
—
Derivative assets
11
—
—
—
11
Deposits with ceding undertakings
3,394
—
—
—
3,394
Reinsurers’ share of claims outstanding
1,973,272
—
—
— 1,973,272
Debtors arising out of direct insurance operations
464,969
74,729
—
—
539,698
Debtors arising out of reinsurance operations
307,740
—
—
—
307,740
Cash at bank and in hand
29,689
—
—
—
29,689
Other debtors and accrued interest
102,457
—
—
—
102,457
Total
5,968,157
74,729
—
— 6,042,886
At 31 December 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
Debt securities and other fixed income securities
2,575,318
—
—
— 2,575,318
Shares and other variable yield securities and units in unit trusts
103,876
—
—
—
103,876
Participation in investment pools
—
—
—
—
—
Syndicate loans to central fund
22,206
—
—
—
22,206
Derivative assets
—
—
—
—
—
Deposits with ceding undertakings
3,484
—
—
—
3,484
Reinsurers’ share of claims outstanding
1,848,529
—
—
— 1,848,529
Debtors arising out of direct insurance operations
463,979
73,648
—
—
537,627
Debtors arising out of reinsurance operations
280,914
—
—
—
280,914
Cash at bank and in hand
16,073
—
—
—
16,073
Other debtors and accrued interest
32,835
—
—
—
32,835
Total
5,347,214
73,648
—
— 5,420,862
The table below sets out the age analysis of financial assets that are past due but not impaired at the balance sheet date:
Table (f)
At 31 December 2025
Less than three
months past due
Between three and
six months past
due
Between six and
12 months past
due
Greater than one
year past due
Total
$000
$000
$000
$000
$000
Debtors arising out of direct insurance operations
48,161
16,547
7,280
2,741
74,729
Debtors arising out of reinsurance operations
—
—
—
—
—
Total
48,161
16,547
7,280
2,741
74,729
At 31 December 2024
Less than three
months past due
Between three and
six months past
due
Between six and
12 months past
due
Greater than one
year past due
Total
$000
$000
$000
$000
$000
Debtors arising out of direct insurance operations
44,870
18,234
6,488
4,056
73,648
Debtors arising out of reinsurance operations
—
—
—
—
—
Total
44,870
18,234
6,488
4,056
73,648
Chapter 1
Hiscox Syndicate 0033
annual accounts
Notes to the accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
27
(e) Liquidity risk
The Syndicate is exposed to daily calls on its available cash resources, mainly from claims arising from insurance and reinsurance
contracts. Liquidity risk is the risk of being unable to meet customer or other third-party payment obligations from available resources
as they fall due. This could result in higher than expected costs in selling assets or raising money quickly to meet our obligations.
The HSL Board sets limits on the minimum level of cash and maturing funds available to meet such calls and on the minimum level of
borrowing facilities that should be in place to cover unexpected levels of claims and other cash demands.
A significant proportion of the Syndicate’s investments is in highly-liquid assets which could be converted to cash in a prompt
fashion and at minimal expense. The deposits with credit institutions largely comprise short-dated certificates for which an active
market exists and which the Syndicate can easily access.
The main focus of the investment portfolio is on high-quality, short-duration debt and fixed income securities, and cash. There
are no significant holdings of investments with specific repricing dates.
Notwithstanding the regular interest receipts and also the Syndicate’s ability to liquidate these securities and the majority of its other
financial instrument assets for cash in a prompt and reasonable manner, the contractual maturity profile of the financial assets and
financial liabilities at 31 December was as follows:
Table (g)
At 31 December 2025
Less than one year
Between one and
three years
Between three and
five years
Over five years
Total
$000
$000
$000
$000
$000
Investments
521,177 1,052,368 1,049,063
467,422 3,090,030
Reinsurers’ share of claims outstanding
798,725
720,100
257,145
197,302 1,973,272
Debtors
849,229
72,554
—
—
921,783
Cash at bank and in hand
29,689
—
—
—
29,689
Accrued interest
28,112
—
—
—
28,112
Other prepayments and accrued income
8,688
—
—
—
8,688
Claims outstanding
(1,524,590) (1,414,847)
(530,852)
(378,689) (3,848,978)
Creditors
(840,679)
(135,769)
(17,657)
(470) (994,575)
Accruals and deferred income
(74,810)
—
—
—
(74,810)
Total
(204,459)
294,406
757,699
285,565 1,133,211
At 31 December 2024
Less than one year
Between one and
three years
Between three and
five years
Over five years
Total
$000
$000
$000
$000
$000
Investments
606,168 1,097,638
796,466
204,612 2,704,884
Reinsurers’ share of claims outstanding
691,180
711,430
255,933
189,986 1,848,529
Debtors
749,112
75,661
—
—
824,773
Cash at bank and in hand
16,073
—
—
—
16,073
Accrued interest
26,603
—
—
—
26,603
Other prepayments and accrued income
5,873
—
—
—
5,873
Claims outstanding
(1,335,244) (1,369,635)
(505,185)
(352,876) (3,562,940)
Creditors
(589,609)
(126,589)
(31,899)
(9,103)
(757,200)
Accruals and deferred income
(58,859)
—
—
—
(58,859)
Total
111,297
388,505
515,315
32,619 1,047,736
The available headroom of working capital is monitored through the use of a detailed Syndicate cash flow forecast which is reviewed
by management quarterly, or more frequently, as required.
A significant proportion of the financial investments are in highly liquid assets which could be converted to cash in a prompt fashion
and at minimal expense to settle Syndicate liabilities as they fall due. The Directors have a reasonable expectation that the Syndicate
has adequate resources to continue in operation for the foreseeable future.
Chapter 1
Hiscox Syndicate 0033
annual accounts
Notes to the accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
28
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
Average contractual maturity analysed by denominated currency of investments was as follows:
Table (h)
At 31 December 2025
2025
2024
In years
In years
Sterling
2.1
1.8
US Dollar
3.3
2.9
Euro
2.6
2.6
Canadian Dollar
1.7
2.0
(f) Currency risk
The majority of the Syndicate’s gross premiums written is in US Dollars, consequently movements in Sterling, Euro and Canadian
Dollar against US Dollar exchange rate may have a material effect on its financial performance and position. The Syndicate’s financial
assets are denominated in the same currencies as its insurance liabilities, in order to reduce currency exchange volatility from the
balance sheet. This profit and loss is distributed in accordance with Lloyd’s rules using a combination of Sterling and US Dollars.
The currency profile of the Syndicate’s financial assets and financial liabilities is as follows:
Table (i)
At 31 December 2025
US Dollar
Sterling
Euro
Canadian Dollar
Total
$000
$000
$000
$000
$000
Investments
2,557,657
227,944
151,117
153,312
3,090,030
Reinsurers share of technical provisions
2,099,855
142,935
50,062
56,553
2,349,405
Debtors
677,274
241,299
11,295
(8,085)
921,783
Other assets
(146,648)
132,104
77,850
(33,617)
29,689
Prepayments and accrued income
241,641
19,915
15,910
10,188
287,654
Total assets
5,429,779
764,197
306,234
178,351
6,678,561
Technical provisions
(4,250,236)
(388,674)
(214,145)
(121,553)
(4,974,608)
Creditors
(784,659)
(178,244)
(11,162)
(20,510)
(994,575)
Accrued and deferred income
(61,687)
(9,678)
(1,365)
(2,080)
(74,810)
Total liabilities
(5,096,582)
(576,596)
(226,672)
(144,143)
(6,043,993)
Members balances by currency
(333,197)
(187,601)
(79,562)
(34,208)
(634,568)
At 31 December 2024
US Dollar
Sterling
Euro
Canadian Dollar
Total
$000
$000
$000
$000
$000
Investments
2,166,014
234,926
153,320
150,624
2,704,884
Reinsurers share of technical provisions
1,945,013
130,349
39,459
48,877
2,163,698
Debtors
617,883
213,278
(6,991)
603
824,773
Other assets
(78,126)
121,009
24,634
(51,444)
16,073
Prepayments and accrued income
196,622
19,099
13,093
9,368
238,182
Total assets
4,847,406
718,661
223,515
158,028
5,947,610
Technical provisions
(3,897,971)
(374,553)
(185,845)
(104,840)
(4,563,209)
Creditors
(581,949)
(145,482)
(7,115)
(22,654)
(757,200)
Accrued and deferred income
(49,218)
(6,736)
(1,037)
(1,868)
(58,859)
Total liabilities
(4,529,138)
(526,771)
(193,997)
(129,362)
(5,379,268)
Members balances by currency
(318,268)
(191,890)
(29,518)
(28,666)
(568,342)
Chapter 1
Hiscox Syndicate 0033
annual accounts
Notes to the accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
29
Sensitivity analysis
The Syndicate performs sensitivity analysis based on a 10% strengthening or weakening of the US Dollar against Sterling, Euro
and the Canadian Dollar. This analysis assumes that all other variables, in particular interest rates, remain constant and that the
underlying valuation of assets and liabilities in their base currency is unchanged. During the year, the Syndicate transacted in a
number of over-the-counter forward currency derivative contracts. The impact of these contracts on the sensitivity analysis is
negligible. The impact of a 10% increase or decrease against the following currencies is shown in the table below:
Table (j)
Currency risk
2025 impact on
profit
2025 impact on
members' balance
2024 impact on
profit
2024 impact on
members' balance
$000
$000
$000
$000
Ten percent increase in US Dollar/Sterling exchange rate
(18,760)
18,760
(19,189)
19,189
Ten percent decrease in US Dollar/Sterling exchange rate
18,760
(18,760)
19,189
(19,189)
Ten percent increase in US Dollar/Euro exchange rate
(7,956)
7,956
(2,952)
2,952
Ten percent decrease in US Dollar/Euro exchange rate
7,956
(7,956)
2,952
(2,952)
Ten percent increase in US Dollar/Canadian Dollar exchange rate
(3,421)
3,421
(2,867)
2,867
Ten percent decrease in US Dollar/Canadian Dollar exchange rate
3,421
(3,421)
2,867
(2,867)
Regulatory risk
The managing agent is required to comply with the requirements
of the Prudential Regulation Authority, Financial Conduct
Authority and Lloyd’s. Lloyd’s requirements include those
imposed on the Lloyd’s market by overseas regulators,
particularly in respect of US situs business. Regulatory risk is the
risk of loss owing to a breach of regulatory requirements or failure
to respond to regulatory change. HSL devotes considerable
resources to meet its regulatory obligations, including
compliance, risk management and internal audit functions.
Climate risk
Climate risk relates to the range of complex physical, transition
and liability risks arising from climate change. This includes the
risk of higher claims as a result of more frequent and more
intense natural catastrophes; the financial risks which could
arise from the transition to a lower-carbon economy; and the risk
that those who have suffered loss from climate change might
then seek to recover those losses from others who they believe
may have been responsible. Climate-related risk is not
considered a standalone risk, but a cross-cutting risk with
potential to amplify each existing risk type. A transition plan is
being developed which will consider in more detail the transition
risk associated with our portfolios.
By design, the established and embedded HSL risk management
framework provides a controlled and consistent system for the
identification, measurement, mitigation, monitoring and reporting
of risks (both current and emerging) and so is structured in a way
that allows us to continually and consistently manage the various
impacts of climate risk on the risk profile. This is supported by a
Group wide sustainability strategy and equally robust processes
and policies that address climate-related underwriting risks, such
as the Group’s environmental, social and governance (ESG)
exclusions policy which applies to HSL and represents a
commitment to reduce steadily and eliminate by 2030 both
underwriting and investment exposure to coal-fired power plants
and coal mines; Arctic energy exploration, beginning with the
Arctic National Wildlife Refuge; oil sands; and controversial
weapons such as landmines.
ESG Syndicate 3033 is a sub-syndicate designed to provide
additional insurance capacity and support to clients who
demonstrate a responsible ESG record. It brings additional
insurance capacity to those clients to help them cover their risks
and, in time, this should lead to premium savings for those
businesses who show how their ESG performance makes them
a more attractive risk.
We want to partner with businesses who are working towards
the net-zero transition and demonstrating a commitment to
strong governance, as well as having a robust social agenda
toward their employees and the communities within which they
operate. Having a specialised syndicate is an important step in
making that happen and reflects our ambitions when it comes
to sustainability.
We also consider the training and development requirements of
those with oversight responsibilities and accountability for
climate matters to ensure we have appropriate awareness and
expertise to drive progress. In 2025, this included a Board-level
training session which aims to enhance the Board’s awareness
and knowledge of transition planning, and Hiscox’s requirement
to publish a transition plan. More information can be in located in
our Task Force on Climate-related Financial Disclosure (TCFD)
report in the ultimate Group Annual Report and Accounts of
Hiscox Ltd.
Capital management
The Syndicate’s objectives in managing its capital are to:
•
satisfy the requirements of its policyholders and
regulators; and
•
allocate capital efficiently to support strategic objectives.
Capital framework at Lloyd’s
The Society of Lloyd’s (Lloyd’s) is a regulated undertaking and
subject to the supervision of the Prudential Regulatory Authority
(PRA) under the Financial Services and Markets Act 2000 and in
accordance with Solvency UK legislation. Within this supervisory
framework, Lloyd’s applies capital requirements at member level
and centrally to ensure that Lloyd’s complies with Solvency UK,
and beyond that to meet its own financial strength, licence and
ratings objectives. Although, as described below, Lloyd’s capital
setting processes use a capital requirement set at syndicate level
as a starting point, the requirement to meet Solvency UK and
Lloyd’s capital requirements applies at overall and member level
respectively, not at syndicate level. Accordingly, the capital
requirement is not disclosed in these annual accounts.
Chapter 1
Hiscox Syndicate 0033
annual accounts
Notes to the accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
30
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
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 one-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 UK 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 syndicate(s) on which it participates but not other
members’ shares. Accordingly, the capital requirement that
Lloyd’s sets for each member operates on a similar basis. Each
member’s SCR shall thus be determined by the sum of the
member’s share of the syndicate SCR ‘to ultimate’. Where a
member participates on more than one syndicate, a credit for
diversification is provided to reflect the spread of risk, but
consistent with determining an SCR which reflects the capital
requirement to cover a one-in-200-year loss ‘to ultimate’ for that
member. Over and above this, Lloyd’s applies a capital uplift to
the member’s SCR requirement, and the resulting capital is
known as the economic capital assessment (ECA). The purpose
of this uplift, which is a Lloyd’s not a Solvency UK requirement, is
to meet Lloyd’s financial strength, licence and ratings objectives.
The capital uplift applied for 2025 was 35% of the member’s SCR
‘to ultimate’.
Provision of capital by members
Each member may provide capital to meet its ECA either by
assets held in trust by Lloyd’s specifically for that member (funds
at Lloyd’s), held within and managed within a syndicate (funds in
syndicate) or as the member’s share of the members’ balances
on each syndicate on which it participates. The level of FAL/FIS
that Lloyd’s requires a member to maintain is determined by
Lloyd’s based on PRA requirements and resource criteria. This
capital requirement is based on 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. Resources available to meet members’
and Lloyd’s capital requirements are separately identified in the
statement of changes in members’ balances. Lloyd’s also retains
the right to request a callable contribution of up to 5% of capacity
from the Syndicate.
Chapter 1
Hiscox Syndicate 0033
annual accounts
Notes to the accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
31
5 Segmental analysis
An analysis of the underwriting result before investment return is set out below:
Year ended 31 December 2025
Gross premiums
written
Gross premiums
earned
Gross claims
incurred
Net operating
expenses
Reinsurance
balance
Underwriting result
$000
$000
$000
$000
$000
$000
Accident and health
37,073
35,335
(16,616)
(15,418)
(2,710)
591
Motor - third-party liability
145
149
(35)
(91)
20
43
Motor - other classes
—
—
—
—
—
—
Marine aviation and transport
191,747
193,632
(115,094)
(69,618)
(13,234)
(4,314)
Fire and other damage to property
1,132,559 1,052,253
(374,685)
(345,160)
(256,762)
75,646
Third party liability
312,414
278,934
(149,096)
(42,642)
(56,224)
30,972
Credit and suretyship
79,596
85,314
(33,743)
(33,446)
(7,044)
11,081
Total direct insurance
1,753,534 1,645,617
(689,269)
(506,375)
(335,954)
114,019
Reinsurance
758,811
754,638
(430,253)
(115,575)
(174,583)
34,227
Total
2,512,345 2,400,255 (1,119,522)
(621,950)
(510,537)
148,246
The below is an additional disclosure for Lloyd’s reporting purposes and is included to facilitate the classification of the above
segments into the Lloyd’s aggregate classes of business:
Year ended 31 December 2025
Gross premiums
written
Gross premiums
earned
Gross claims
incurred
Net operating
expenses
Reinsurance
balance
Underwriting result
$000
$000
$000
$000
$000
$000
Fire and other damage to property of which is:
Specialities
124,617
126,614
(25,744)
(29,343)
(39,443)
32,084
Energy
—
—
—
—
—
—
Third-party liability of which is:
Energy
—
—
—
—
—
—
Year ended 31 December 2024
Gross premiums
written
Gross premiums
earned
Gross claims
incurred
Net operating
expenses
Reinsurance
balance
Underwriting result
$000
$000
$000
$000
$000
$000
Accident and health
32,778
32,161
(19,609)
(12,646)
(2,050)
(2,144)
Motor - third-party liability
124
126
(30)
(10)
(2)
84
Motor - other classes
—
—
—
—
—
—
Marine aviation and transport
194,730
200,178
(181,163)
(63,761)
90,596
45,850
Fire and other damage to property
972,345
948,830
(382,524)
(276,549)
(248,173)
41,584
Third party liability
288,056
283,708
(290,690)
(54,742)
69,282
7,558
Credit and suretyship
152,948
146,864
(101,876)
(46,972)
1,408
(576)
Total direct insurance
1,640,981 1,611,867
(975,892)
(454,680)
(88,939)
92,356
Reinsurance
692,039
685,182
(104,187)
(106,642)
(365,083)
109,270
Total
2,333,020 2,297,049 (1,080,079)
(561,322)
(454,022)
201,626
The below is an additional disclosure for Lloyd’s reporting purposes and is included to facilitate the classification of the above
segments into the Lloyd’s aggregate classes of business:
Year ended 31 December 2024
Gross premiums
written
Gross premiums
earned
Gross claims
incurred
Net operating
expenses
Reinsurance
balance
Underwriting result
$000
$000
$000
$000
$000
$000
Fire and other damage to property of which is:
Specialities
134,320
131,016
(15,454)
(42,367)
(46,228)
26,967
Energy
—
—
—
—
—
—
Third-party liability of which is:
Energy
—
—
—
—
—
—
Chapter 1
Hiscox Syndicate 0033
annual accounts
Notes to the accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
32
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
All premiums were concluded in the UK. The geographical analysis of direct insurance gross premiums written by destination as
a proxy for risk location, is as follows:
2025
2024
$000
$000
United Kingdom
112,763
114,597
European Union Member States
147,342
113,289
United States
1,144,107
1,067,542
Rest of the world
349,322
345,553
Total
1,753,534
1,640,981
6 Net operating expenses
2025
2024
$000
$000
Acquisition costs
667,589
570,654
Change in deferred acquisition costs
(40,995)
(3,489)
Administrative expenses
147,303
136,929
Members' standard personal expenses
34,395
30,741
Reinsurers’ commissions and profit participations
(186,342)
(173,513)
Total
621,950
561,322
Brokerage and commissions on direct business written was $379.1 million (2024: $334.1 million).
Profit commission is charged by the managing agent at a rate of 15% on the total recognised gain of the Syndicate if the rolling
seven-year simple average basis is at least 7.5% or more of capacity. If the rolling seven-year average falls below 7.5% of capacity
profit commission will be charged at 12.5%. This calculation is subject to the operation of a two-year deficit clause. Profit
commission is disclosed within other acquisition costs.
Profit-related remuneration is charged at 5% on the profit of six major business areas. It is disclosed within acquisition costs.
Also included in administrative expenses is the charge for the Syndicate’s share of the movement in the Group pension defined
benefit deficit of $2.0 million (2024: $2.3 million deficit) calculated by the scheme actuary.
Administrative expenses include fees payable to the auditors and its associates (exclusive of VAT).
2025
2024
$000
$000
Auditors' remuneration
Fees payable to the Syndicate’s auditors for audit of the syndicate annual accounts
726
665
Fees payable to the Syndicate’s auditors and its associates in respect of other services pursuant to legislation
303
279
Total auditors’ remuneration expense
1,029
944
Chapter 1
Hiscox Syndicate 0033
annual accounts
Notes to the accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
33
7 Staff numbers and costs
The Syndicate and its managing agent have no employees. Staff are employed by Hiscox Underwriting Group Services Limited
(HUGS). The average number of persons employed by HUGS, but working for the Syndicate during the year, analysed by category,
was as follows:
2025
2024
Administration and finance
392
380
Underwriting
162
160
Claims
51
47
Investments
4
2
Total
609
589
The Syndicate did not directly incur staff costs during the year (2024: nil). The following salary and related costs were recharged
during the year:
2025
2024
$000
$000
Wages and salaries
73,702
66,314
Social security costs
11,444
7,806
Other pension costs
9,543
8,888
Total
94,689
83,008
The Directors of Hiscox Syndicates Limited received the following aggregate remuneration charged to the Syndicate and included
within net operating expenses:
2025
2024
$000
$000
Directors’ emoluments
2,625
2,461
The active underwriters received the following remuneration charged as a Syndicate expense.
2025
2024
$000
$000
Underwriters emoluments
1,206
1,132
Chapter 1
Hiscox Syndicate 0033
annual accounts
Notes to the accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
34
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
8 Investment return
2025
2024
$000
$000
Interest and similar income
From financial assets designated at fair value through profit or loss:
Interest income on financial assets
112,646
104,389
Other income from investments
From financial assets designated at fair value through profit or loss:
Gains on realisation of investments
24,685
17,314
Losses on realisation of investments
(3,233)
(7,567)
Unrealised gains on investments
43,059
35,411
Unrealised losses on the investments
(17,161)
(19,117)
Investment management expenses
(2,284)
(2,462)
Total investment return
157,712
127,968
Transferred to the technical account from the non
-
technical account
157,712
127,968
The tables below present the average amounts of funds in the year per currency and the average investment return yields in the year.
2025
2024
$000
$000
Average amount of syndicate funds available for investment during the year
Sterling
166,567
174,590
Euro
149,768
156,742
US Dollar
2,306,254
2,076,376
Canadian Dollar
208,357
225,733
Total syndicate funds available for investment
2,830,946
2,633,441
2025
2024
%
%
Annual Investment yield
Sterling
5.3
4.9
Euro
3.2
4.2
US Dollar
6.0
4.8
Canadian Dollar
4.0
6.6
Total annual investment yield percentage
5.6
4.9
Syndicate funds include investments and cash. Annual investment yield excludes investment management charges.
9 Financial investments
2025
2025
2024
2024
carrying value
cost
carrying value
cost
$000
$000
$000
$000
Debt securities and other fixed income securities
3,007,858 2,829,930
2,575,318 2,561,022
Shares and other variable yield securities and units in unit trusts
66,320
66,320
103,876
103,876
Participation in investment pools
12,447
12,447
—
—
Syndicate loans to central fund
—
—
22,206
23,019
Derivative assets
11
—
—
—
Total financial investments
3,086,636 2,908,697
2,701,400 2,687,917
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 presents an analysis of financial
investments by their measurement classification.
Chapter 1
Hiscox Syndicate 0033
annual accounts
Notes to the accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
35
9 Financial investments continued
2025
2024
$000
$000
Financial assets measured at fair value through profit or loss
3,086,636
2,701,400
Financial assets measured at amortised cost
—
—
Total financial investments
3,086,636
2,701,400
Other financial assets under FRS 102 are cash at bank and in hand, direct insurance and reinsurance debtors, other debtors and
accrued income, which are classified as debtors.
Fair value hierarchy
The Syndicate has classified its financial investments using the fair value hierarchy in accordance with the FRS 102.
The levels within the fair value hierarchy are defined as follows:
•
level 1 – the unadjusted quoted price in an active market for identical assets or liabilities that the entity can access at the
measurement date;
•
level 2 – inputs other than quoted prices included within level 1 that are observable (i.e. developed using market data) for the
asset or liability, either directly or indirectly; and
•
level 3 – inputs are unobservable (i.e. for which market data is unavailable) for the asset or liability.
2025
Level 1
Level 2
Level 3
Assets held at
amortised cost
Total
$000
$000
$000
$000
$000
Debt securities and other fixed income securities
506,561 2,501,297
—
— 3,007,858
Shares and other variable yield securities and units in unit trusts
66,320
—
—
—
66,320
Participation in investment pools
—
—
12,447
—
12,447
Syndicate loans to central funds
—
—
—
—
—
Derivative financial assets
—
11
—
—
11
Total financial investments
572,881 2,501,308
12,447
— 3,086,636
Total
572,881 2,501,308
12,447
— 3,086,636
2024
Level 1
Level 2
Level 3
Assets held at
amortised cost
Total
$000
$000
$000
$000
$000
Debt securities and other fixed income securities
363,474 2,211,844
—
— 2,575,318
Shares and other variable yield securities and units in unit trusts
103,876
—
—
—
103,876
Participation in investment pools
—
—
—
—
—
Syndicate loans to central funds
—
—
22,206
—
22,206
Derivative financial assets
—
—
—
—
—
Total financial investments
467,350 2,211,844
22,206
— 2,701,400
Total
467,350 2,211,844
22,206
— 2,701,400
The following table sets forth a reconciliation of opening and closing balances for financial instruments classified under level 3 of the
fair value hierarchy:
2025
2024
$000
$000
Balance at 1 January
22,206
27,389
Fair value gains through profit or loss
846
1,089
Foreign exchange gains or (losses)
1,017
(415)
Purchases
12,447
—
Settlements
(24,069)
(5,857)
Balance at 31 December
12,447
22,206
Unrealised gains
in the year on securities held at the end of the year
846
1,089
Chapter 1
Hiscox Syndicate 0033
annual accounts
Notes to the accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
36
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
9 Financial investments continued
The Syndicate measures the fair value of its financial assets based on prices provided by custodians who obtain market data from
numerous independent pricing services. The pricing services used by the custodian obtain actual transaction prices for securities
that have quoted prices in active markets.
For those 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.
2025
Gross contract
notional amount
Fair value of
assets
Fair value of
liabilities
Net balance sheet
position
asset/liability
$000
$000
$000
$000
Interest rate future contracts
2,595
11
—
11
2024
Gross contract
notional amount
Fair value of
assets
Fair value of
liabilities
Net balance sheet
position
asset/liability
$000
$000
$000
$000
Interest rate future contracts
—
—
—
—
Interest rate future contracts
During 2025 and 2024, the Syndicate used Sterling, Euro and US Dollar government bond futures to informally hedge the interest
rate risk on specific corporate bonds. The investment return in 2025 and 2024 on these futures is disclosed in note 8.
10 Technical provisions
2025
Gross
provisions
Reinsurance
assets
Net
$000
$000
$000
Claims outstanding:
Balance at 1 January
3,562,940 (1,848,529) 1,714,411
Over/under provision in respect of prior claims and claim adjustment expenses
(231,415)
144,880
(86,535)
Expected cost of current year claims
1,350,937
(669,806)
681,131
Claims paid for claims settled in year
(876,887)
413,567
(463,320)
Effect of movements in exchange rates
43,403
(13,384)
30,019
Balance at 31 December
3,848,978 (1,973,272) 1,875,706
Claims reported and claims adjustment expenses
1,278,116
(605,082)
673,034
Claims incurred but not reported
2,570,862 (1,368,190) 1,202,672
Balance at 31 December
3,848,978 (1,973,272) 1,875,706
Unearned premiums:
Balance at 1 January
1,000,269
(315,169)
685,100
Premiums written during the year
2,512,345 (1,089,231) 1,423,114
Premiums earned during the year
(2,400,255) 1,035,463 (1,364,792)
Effect of movements in exchange rates
13,271
(7,196)
6,075
Balance at 31 December
1,125,630
(376,133)
749,497
Deferred acquisition costs:
Balance at 1 January
205,706
(58,859)
146,847
Acquisition costs written
515,077
(197,751)
317,326
Acquisition costs earned
(474,082)
186,342
(287,740)
Effect of movements in exchange rates
4,153
(1,225)
2,928
Balance at 31 December
250,854
(71,493)
179,361
Chapter 1
Hiscox Syndicate 0033
annual accounts
Notes to the accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
37
10 Technical provisions continued
2024
Gross
provisions
Reinsurance
assets
Net
$000
$000
$000
Claims outstanding:
Balance at 1 January
3,503,850 (1,902,714) 1,601,136
Over/under provision in respect of prior claims and claim adjustment expenses
(183,769)
132,668
(51,101)
Expected cost of current year claims
1,263,848
(567,344)
696,504
Claims paid for claims settled in year
(999,552)
480,884
(518,668)
Effect of movements in exchange rates
(21,437)
7,977
(13,460)
Balance at 31 December
3,562,940 (1,848,529) 1,714,411
Claims reported and claims adjustment expenses
1,121,159
(541,482)
579,677
Claims incurred but not reported
2,441,781 (1,307,047) 1,134,734
Balance at 31 December
3,562,940 (1,848,529) 1,714,411
Unearned premiums:
Balance at 1 January
976,260
(271,680)
704,580
Premiums written during the year
2,333,020
(934,207) 1,398,813
Premiums earned during the year
(2,297,049)
888,698 (1,408,351)
Effect of movements in exchange rates
(11,962)
2,020
(9,942)
Balance at 31 December
1,000,269
(315,169)
685,100
Deferred acquisition costs:
Balance at 1 January
204,913
(51,674)
153,239
Acquisition costs written
454,175
(181,040)
273,135
Acquisition costs earned
(450,686)
173,513
(277,173)
Effect of movements in exchange rates
(2,696)
342
(2,354)
Balance at 31 December
205,706
(58,859)
146,847
11 Debtors arising out of direct insurance operations
2025
2024
$000
$000
Due within one year
486,003
478,759
Due after one year
53,695
58,868
Total
539,698
537,627
12 Debtors arising out of reinsurance operations
2025
2024
$000
$000
Due within one year
288,881
264,121
Due after one year
18,859
16,793
Total
307,740
280,914
Chapter 1
Hiscox Syndicate 0033
annual accounts
Notes to the accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
38
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
13 Other debtors
2025
2024
$000
$000
Inter syndicate balances
—
—
Amounts owed from fellow subsidiary of managing agent
2,934
1,414
Other
71,411
4,818
Total
74,345
6,232
During the year loss funds were reclassified from technical provisions to other debtors.
14 Claims development tables
The claims development tables below have been calculated by converting estimated claims and cumulative payments in Canadian
Dollars, Sterling and Euros to US Dollars at the closing rate of
exchange at 31 December 2025. The table is produced on a year of
account basis. Some business is not off-risk after the first 12 months, therefore we would anticipate cumulative claims to increase
in the second year as this business is earned.
Pure underwriting year:
Gross of reinsurance
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
$000
$000
$000
$000
$000
$000
$000
$000
$000
$000
Estimate of
cumulative claims:
At end of underwriting
year one
502,314
1,132,740
983,322
1,086,503
921,576
719,257
770,524
566,483
768,580
717,384
One year later
921,765
1,399,135
1,665,151
1,722,999
1,495,453
1,197,689
1,202,525
963,880
1,328,861
Two years later
851,885
1,470,807
1,634,599
1,646,792
1,419,756
1,159,178
1,083,568
926,698
Three years later
877,488
1,388,778
1,497,074
1,550,379
1,388,397
1,146,026
1,074,127
Four years later
888,699
1,372,205
1,465,584
1,447,043
1,342,203
1,117,983
Five years later
892,015
1,320,809
1,466,535
1,501,730
1,299,233
Six years later
883,125
1,338,294
1,506,284
1,485,301
Seven years later
899,145
1,387,661
1,496,485
Eight years later
885,204
1,367,620
Nine years later
883,409
Cumulative payments
(814,303) (1,229,237) (1,350,839) (1,190,951) (1,036,850)
(784,011)
(646,845)
(440,692)
(403,756)
(82,699)
Estimated balance to
pay
69,106
138,383
145,646
294,350
262,383
333,972
427,282
486,006
925,105
634,685
Provision in respect of
prior years
132,060
Total gross provision
included in the balance sheet
3,848,978
Chapter 1
Hiscox Syndicate 0033
annual accounts
Notes to the accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
39
14 Claims development tables continued
Pure underwriting year:
Net of reinsurance
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
$000
$000
$000
$000
$000
$000
$000
$000
$000
$000
Estimate of
cumulative claims:
At end of underwriting
year one
295,645
350,784
374,024
392,187
403,925
349,039
346,812
342,673
370,633
365,520
One year later
593,746
499,451
668,173
765,381
666,091
595,685
624,212
627,553
662,752
Two years later
553,898
528,293
629,624
724,392
616,769
583,150
591,001
607,304
Three years later
563,309
527,862
613,417
670,525
623,782
599,310
586,643
Four years later
565,865
498,023
546,546
592,946
604,626
582,883
Five years later
585,845
430,252
528,788
620,090
589,843
Six years later
528,661
422,496
548,061
614,016
Seven years later
529,349
450,667
546,406
Eight years later
514,600
456,376
Nine years later
514,255
Cumulative payments
(492,252)
(455,331)
(473,284)
(498,693)
(448,761)
(405,281)
(362,600)
(300,916)
(245,991)
(49,779)
Estimated balance to
pay
22,003
1,045
73,122
115,323
141,082
177,602
224,043
306,388
416,761
315,741
Provision in respect of
prior years
82,597
Total net provision
included in the balance sheet
1,875,707
15 Creditors arising out of direct insurance operations
2025
2024
$000
$000
Due within one year
7,079
2,035
Due after one year
—
—
Total
7,079
2,035
16 Creditors arising out of reinsurance operations
2025
2024
$000
$000
Due within one year
644,815
473,520
Due after one year
147,435
158,969
Total
792,250
632,489
17 Other creditors
2025
2024
$000
$000
Inter syndicate balances
8,505
4,668
Amounts owed to fellow subsidiary of managing agent
155,320
117,603
Other
31,421
405
Total
195,246
122,676
During the year ceded loss funds were reclassified from technical provisions to other creditors.
Chapter 1
Hiscox Syndicate 0033
annual accounts
Notes to the accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
40
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
18 Accruals and deferred income
2025
2024
$000
$000
Profit commission
—
—
Deferred acquisition costs
71,493
58,859
Accrued expenses
3,317
—
Total
74,810
58,859
Profit commission accrued at 31 December 2025 is $154.3 million (2024: $116.0 million) and is included under ‘other creditors’
on the balance sheet and also disclosed in Note 20.
19 Cash and cash equivalents
2025
2024
$000
$000
Cash at bank and in hand
29,689
16,073
Short term debt instruments presented within other financial investments
66,320
103,876
Total cash and cash equivalents
96,009
119,949
Only deposits with maturities of three months or less that are used by the Syndicate in the management of its short
-
term
commitments are included in cash and cash equivalents.
Included within cash and cash equivalents are the following amounts
which are not available for use by the Syndicate because they are held in regulated bank accounts in overseas jurisdictions.
2025
2024
$000
$000
Cash at bank and in hand
8,515
6,130
Short term debt instruments presented within other financial investments
208
188
Total cash and cash equivalents not available for use by the syndicate
8,723
6,318
Chapter 1
Hiscox Syndicate 0033
annual accounts
Notes to the accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
41
20 Related parties
Related companies
Hiscox Syndicates Limited (HSL) manages Syndicate 0033 as well as Syndicate 3624 and Syndicate 6104. Syndicate 3624
purchases some reinsurance from Syndicate 0033 on an arm’s-length basis.
Syndicate 6104, also managed by HSL, is a limited tenancy capacity Special Purpose Arrangement, that supports the underwriting
of Syndicate 0033 by providing reinsurance on an arm’s-length basis for certain classes of property catastrophe reinsurance, marine,
terrorism and cyber risks. Syndicate 0033 receives an overriding commission and profit commission on the business ceded to
Syndicate 6104.
HSL is a wholly owned indirect subsidiary of Hiscox Ltd which is incorporated in Bermuda and listed on the London Stock
Exchange. HSL receives a fixed fee for each pure underwriting year. HSL also receives profit commission and profit-related
remuneration as detailed in note 6.
Hiscox Dedicated Corporate Member Limited, a wholly owned indirect subsidiary of Hiscox Ltd, is a corporate member which owns
capacity in all pure underwriting years of Syndicate 0033.
Hiscox Underwriting Group Services Limited, a wholly owned indirect subsidiary of Hiscox Ltd, is an employment service company
which employs all UK-based staff engaged in Syndicate 0033 activities including underwriters, claims handlers, reinsurance staff and
administrative staff. Hiscox Underwriting Group Services Limited charges a fee for the provision of these staff to Syndicate 0033 on a
no profit/no loss basis.
Hiscox Services Ltd, a wholly owned indirect subsidiary of Hiscox Ltd, is service company based in Bermuda. Hiscox Services Ltd
charges a fee for the provision of services to Syndicate 0033 on a no profit/no loss basis.
Hiscox Insurance Company (Bermuda) Limited, a wholly owned direct subsidiary of Hiscox Ltd, is a Class 4 insurer in Bermuda
authorised by the Bermuda Monetary Authority. It supplies some risk modelling services to HSL. Syndicate 0033 purchases a
significant amount of reinsurance from Hiscox Insurance Company (Bermuda) Limited; such reinsurances are on an arm’s-length
basis and are in the interests of all the members on the Syndicate.
Hiscox Insurance Company (Guernsey) Limited, a wholly owned direct subsidiary of Hiscox Ltd, is a non-life insurance company
authorised by the Guernsey Financial Services Commission which predominantly underwrites specialist personal lines business
worldwide. It purchases some reinsurance from Syndicate 0033; such reinsurances are on an arm’s-length basis and are in the
interests of all the members on the Syndicate.
Hiscox Underwriting Ltd, a wholly owned indirect subsidiary of Hiscox Ltd, is an FCA authorised non-life insurance intermediary and
Lloyd’s Service Company. It places business with Syndicate 0033. It is not obliged to place business with any particular carrier and
these arrangements are subject to review by Hiscox Underwriting Ltd.
Hiscox Agencies Limited, a wholly owned indirect subsidiary of Hiscox Ltd, is a authorised non-life insurance intermediary and
Lloyd’s Service Company. It places business with Syndicate 0033. It is not obliged to place business with any particular carrier and
these arrangements are subject to review by Hiscox Agencies Limited.
Hiscox Inc., a wholly owned indirect subsidiary of Hiscox Ltd incorporated in USA (Delaware), is a US authorised non-life insurance
intermediary and Lloyd’s Service Company. It places business with Syndicate 0033. It is not obliged to place business with any
particular carrier and these arrangements are subject to review by Hiscox Inc.
Hiscox Insurance Services Inc., a wholly owned indirect subsidiary of Hiscox Ltd, is a US authorised non-life insurance intermediary
and Lloyd’s Service Company. It places business with Syndicate 0033. It is not obliged to place business with any particular carrier
and these arrangements are subject to review by Hiscox Insurance Services Inc.
Hiscox Insurance Services (Guernsey) Limited, a wholly owned indirect subsidiary of Hiscox Ltd, is a non-life insurance intermediary
and Lloyd’s Service Company authorised by the Guernsey Financial Services Commission. It places business with Syndicate 0033.
It is not obliged to place business with any particular carrier and these arrangements are subject to review by Hiscox Insurance
Services (Guernsey) Limited.
Hiscox Assure SAS is a regulated French insurance intermediary subject to the supervision of the French Prudential Supervisory
Authority ACPR (Autorité de contrôle prudentiel et de résolution) and Lloyd’s Coverholder. Hiscox Assure SAS is duly authorised to
conduct insurance intermediation activities in other Member States of the European Union and the European Economic Area. It
places business with Syndicate 0033. It is not obliged to place business with any particular carrier and these arrangements are
subject to review by Hiscox Assure SAS.
Chapter 1
Hiscox Syndicate 0033
annual accounts
Notes to the accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
42
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
20 Related parties continued
Hiscox MGA Limited, a wholly owned indirect subsidiary of Hiscox Ltd, is an FCA authorised non-life insurance intermediary and
Lloyd’s Coverholder. It places business with Syndicate 0033. It is not obliged to place business with any particular carrier and these
arrangements are subject to review by Hiscox MGA Limited.
Underwriting divisions
Hiscox Ltd and its subsidiaries organises its core underwriting activities into a number of underwriting divisions. Some of these
divisions underwrite for multiple entities which are partly or wholly owned by Hiscox Ltd including Syndicate 0033, and business
opportunities by using combined knowledge to develop new products and markets. There are certain predetermined mechanisms
for allocating certain types of insurance risks to these carriers which take into account the licences, business plans and reinsurance
programmes of each carrier. These arrangements are structured to take full and proper account of the duties owed to the members
of Syndicate 0033 and to manage appropriately any potential conflicts of interest.
The following balance sheet amounts were outstanding at year-end with related parties:
Balance sheet assets and (liabilities) outstanding
2025
2024
$000
$000
Hiscox Agencies Limited
(4)
(127)
Hiscox Assure SAS
242
(804)
Hiscox Inc.
1,039
(1,715)
Hiscox Insurance Company (Bermuda) Limited
125,577
164,183
Hiscox Insurance Company (Guernsey) Limited
(6,747)
(6,650)
Hiscox Insurance Services Inc.
6,073
12,155
Hiscox MGA Limited
—
(741)
Hiscox Services Ltd
(608)
(311)
Hiscox Syndicates Limited
(156,734)
(116,749)
Hiscox Underwriting Group Services Limited
7,945
5,394
Hiscox Underwriting Ltd
2,636
1,995
Syndicate 6104
(48,911)
(54,317)
Other
(14)
—
The following amounts reflected in the profit and loss were transacted with related parties:
Net income and (expenses) reflected in the profit and loss
2025
2024
$000
$000
Hiscox Assure SAS
138
(4,780)
Hiscox Inc.
25,414
(14,157)
Hiscox Insurance Company (Bermuda) Limited
(56,490)
(135,354)
Hiscox Insurance Company (Guernsey) Limited
(1,020)
—
Hiscox Insurance Services Inc.
6,239
(5,740)
Hiscox Syndicates Limited
(109,613)
(77,911)
Hiscox Underwriting Group Services Limited
(185,469)
(167,124)
Hiscox Underwriting Ltd
8,543
(1,212)
Syndicate 6104
27,137
32,094
Other
(111)
26
Hiscox Syndicates Limited charged managing agent fees and profit commission to Syndicate 0033 of $12.8 million (2024: $13.0
million) and $92.1 million (2024: $62.3 million) respectively.
Hiscox Underwriting Group Services Limited charges administrative services to the Syndicate on a no profit/no loss basis.
Chapter 1
Hiscox Syndicate 0033
annual accounts
Notes to the accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
43
21 Foreign exchange rates
The following currency exchange rates have been used for principal foreign currency transactions:
2025
2025
2025
2024
2024
2024
start of period rate
end of period rate
average rate
start of period rate
end of period rate
average rate
US Dollar
1.00
1.00
1.00
1.00
1.00
1.00
Sterling
0.80
0.74
0.76
0.78
0.80
0.78
Euro
0.97
0.85
0.89
0.91
0.97
0.92
Canadian Dollar
1.44
1.37
1.40
1.32
1.44
1.37
22 Syndicate structure
The managing agent of the Syndicate is Hiscox Syndicates Limited whose immediate parent undertaking is Hiscox Holdings Limited,
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 Hiscox Ltd, Bermuda. Copies of Hiscox Ltd report and accounts can be obtained from
Chesney House, 96 Pitts Bay Road, Pembroke HM 08, Bermuda.
Chapter 1
Hiscox Syndicate 0033
annual accounts
Notes to the accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
44
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
46
Report of the Directors of the
managing agent
48
Statement of managing agent’s
responsibilities
49
Independent auditors’ report
52
Profit and loss account:
technical account
– general business
53
Profit and loss account:
non-technical account
– general business
54
Balance sheet
55
Notes to the accounts
60
Seven-year summary
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
45
The Directors of the managing agent present their report for the
period ended 31 December 2025.
This report comprises the cumulative result to 31 December
2025 for the closed 2023 underwriting year of account of
Syndicate 0033.
The syndicate underwriting year accounts have been prepared
under the Insurance Accounts Directive (Lloyd’s Syndicate and
Aggregate Accounts) Regulations 2008, in accordance with the
Lloyd’s Syndicate Accounting Byelaw (No. 8 of 2005) and
applicable accounting standards in the United Kingdom. The
Syndicate continues to adopt the going concern basis in
preparing the syndicate underwriting year accounts.
Principal activity and review of the business
2023 account
The 2023 account has closed with a profit of 19.1% after all
personal expenses (except members’ agent’s fees). The
result after including members’ agents fees was a profit of
$433.0 million which will be settled by way of profit distribution to
the members in June 2026. There was a release of $47.6 million
from the closed years of 2022 and prior representing
approximately 4.7% of reinsurance to close (RITC) brought
forward at constant exchange rates. The 2023 year of account
has seen excellent market conditions in many classes including
property, terrorism and marine and energy along with the
reinsurance market exhibiting what has been termed a
‘generational’ hard market in peak peril property classes and
meaningful positive rate across the board. This has provided
good opportunities to grow these classes. However, other
classes such as casualty overall and cyber in particular are
experiencing less than favourable conditions, therefore the
Syndicate is actively rebalancing these classes. The 2023
account has picked up catastrophe losses mainly the Hawaii
wildfires, Hurricane Hilary, Hurricane Idalia, Canada wildfires
and the Morocco earthquake.
The Syndicate’s capacity is £1,698 million ($2,284 million) and
capacity utilisation was 92.5% when measured using the
premium income monitoring rate of £1 = $1.21. The 2023
account investment return was a gain of $119.6 million. The key
driver of the investment profit was higher coupon income and
the reversal of prior-year mark-to-market investment losses.
The 2025 calendar year return was 5.6%.
2024 account
The 2024 year of account, with capacity of £1,696.0 million
($2,281 million) continues to perform well with losses from an
active wind season and several large losses falling within
expectation. Losses include Hurricane Helene, Hurricane Milton
and the Baltimore bridge loss in addition to large losses in
upstream energy, space and product recall. Hiscox discontinued
underwriting space business in November 2024 due to
persistent adverse claims environment.
Capacity utilisation is forecast to be 92.7% when measured
using the premium income monitoring rate of £1 = $1.27.
We are forecasting a result in the range 3.4% to 15.4%. The
forecast result range takes into account the preliminary loss
estimates resulting from the California wildfires, which occurred
in early 2025.
2025 account
2025 year of account, with capacity of £1,699 million ($2,285
million) has seen strong performance in reinsurance and
portfolios whilst benefitting from continued underwriting
discipline. The 2025 account will pick up losses including the
California wildfires and to a lesser extent Hurricane Melissa in
an otherwise begin catastrophe year.
Capacity utilisation is forecast to be 92.2% when measured
using the premium income monitoring rate of £1 = $1.26.
We are forecasting a result in the range 3.5% to 13.5%.
2026 account and the future
The Syndicate is well placed to deliver profit in 2026, and whilst
there is an expectation for further rate softening, this follows
several years of continued rate increases and terms and
conditions improvements. The Syndicate’s £1,900 million
capacity has been increased in 2026, positioning it to capitalise
on attractive market opportunities. This growth is complemented
by a strategic expansion through the newly established Hiscox
Portfolio Solutions division, which leverages data analysis and
underwriting expertise to identify promising, long-term
prospects. The division will strengthen existing delegated
authority operations and expand into more complex areas such
as global MGAs, beta follow, alternative risk transfer and
structured solutions, thereby supporting sustained growth and
stable returns.
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
Report of the Directors of the managing agent
Hiscox Syndicate 0033 underwriting year accounts
46
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
Syndicate capacity and ownership
Syndicate capacity and ownership is disclosed in Syndicate
0033 annual accounts.
Directors’ interests
The Directors of the managing agent and their interests are
disclosed in Syndicate 0033 annual accounts.
Disclosure of information to the auditors
The Directors who held office at the date of approval of this
managing agent’s report confirm that, so far as they are each
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 to make
themselves aware of any relevant audit information and to establish
that the Syndicate’s auditors are aware of that information.
By order of the Board
David Saker
Chief Financial Officer
17 February 2026
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
Report of the Directors
of the managing agent
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
47
Statement of managing agent’s responsibilities
Hiscox Syndicate 0033 underwriting year accounts
The Insurance Accounts Directive (Lloyd’s Syndicates and
Aggregate Accounts) Regulations 2008 require 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 result of the underwriting year at closure.
Detailed requirements in respect of the underwriting
year accounts are set out in the Lloyd’s Syndicate
Accounting Bye-law (No. 8 of 2005).
In preparing the syndicate underwriting year accounts, the
managing agent is required to:
•
select suitable accounting policies and then apply them
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 estimates that are reasonable and
prudent; and
•
state whether applicable accounting standards have been
followed, subject to any material departures disclosed and
explained in these accounts.
The managing agent is responsible for keeping proper
accounting records that disclose with reasonable accuracy, at
any time, the financial position of the Syndicate and enable it to
ensure that the syndicate underwriting year 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 corporate and financial information included on
the company’s website. Legislation in the UK governing the
preparation and dissemination of syndicate underwriting year
accounts may differ from legislation in other jurisdictions.
David Saker
Chief Financial Officer
17 February 2026
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
X
Chapter 3
Hiscox Syndicate 6104
annual accounts
X
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
48
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
Report on the audit of the syndicate underwriting year
financial statements
Opinion
In our opinion, 0033’s syndicate underwriting year financial
statements for the 2023 year of account for the 36 months
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 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 Hiscox Syndicate 0033 underwriting year
accounts (the ‘underwriting year accounts’), which comprise: the
B
alance sheet as at 31 December 2025; the
P
rofit and loss
account: technical account – general business and the
P
rofit
and loss account: non-technical account – general business, for
the 36 months 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 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.
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
X
Chapter 3
Hiscox Syndicate 6104
annual accounts
X
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
Independent auditors’ report
To the members of Syndicate 0033
2023 closed year of account
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
49
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 manual
journals
relating to revenue
and accounting estimates in respect
of
estimated
premium
income
and
the valuation of
claims
outstanding. Audit procedures performed by the engagement
team included:
•
discussions with senior management, including those in
the risk and compliance functions, including
consideration
of known or suspected instances of non-compliance with
laws, regulation and fraud;
•
reading key correspondence with Lloyd’s, in relation to
compliance with laws and regulations;
•
reviewing relevant meeting minutes including those of the
Audit Committee;
•
testing journal entries identified in accordance with our risk
assessment;
•
testing and assessing the appropriateness of insurance
claims reserves;
•
identifying and testing estimated premium income on a
sam
p
le basis: and
•
designing audit procedures to incorporate unpredictability
around the nature, timing
and
extent of our testing.
There are inherent limitations in the audit procedures described
above. We are less likely to become aware of instances of non-
compliance with laws and regulations that are not closely related
to events and transactions reflected in the underwriting year
financial statements. 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
underwriting year financial statements 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 Part C of the
Lloyd’s Syndicate Accounting Byelaw (No. 8 of 2005) and for no
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
Independent auditors’ report
X
Chapter 3
Hiscox Syndicate 6104
annual accounts
X
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
50
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
other purpose. We do not, in giving these opinions, accept or
assume responsibility for any other purpose or to any other
person
to whom this report is shown or into whose hands it may come
save where expressly agreed by our prior consent
in writing.
Other required reporting
Under The Insurance Accounts Directive (Lloyd’s Syndicate and
Aggregate Accounts) Regulations 2008 and the Lloyd’s
Syndicate Accounting Byelaw (No. 8 of 2005), we are required
to report to you if, in our opinion:
•
we have not obtained all the information and explanations
we require for our audit; or
•
adequate accounting records have not been kept by the
managing agent in respect of the Syndicate; or
•
the underwriting year financial statements are not in
agreement with the accounting records.
We have no exceptions to report arising from this responsibility.
Neil Riches
(Senior Statutory Auditor)
for and on behalf of
PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
London
17 February 2026
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
Independent auditors’ report
X
Chapter 3
Hiscox Syndicate 6104
annual accounts
X
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
51
Profit and loss account:
technical account – general business
Hiscox Syndicate 0033
underwriting year accounts
For the 36 months ended 31 December 2025
2023 year of
account
Note
$000
Syndicate allocated capacity
2,284,486
Gross premiums written
2,289,381
Outward reinsurance premiums
(841,955)
Earned premiums, net of reinsurance
1,447,426
Reinsurance to close premium received, net of reinsurance
3
1,019,231
2,466,657
Allocated investment return transferred from/(to) the non-technical account
119,567
Claims paid:
Gross amount
(816,701)
Reinsurers' share
372,075
Net claims paid
(444,626)
Change in the provision for claims:
Gross amount
(2,259,071)
Reinsurers' share
1,135,404
Net change in provisions for claims
(1,123,667)
Claims incurred, net of reinsurance
(1,568,293)
Net operating expenses
7
(598,500)
Balance on the technical account for general business
419,431
The notes on pages 55 to 59 form an integral part of these underwriting year accounts.
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
52
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
Profit and loss account:
non-technical account – general business
Hiscox Syndicate 0033
underwriting year accounts
For the 36 months ended 31 December 2025
2023 year of
account
Note
$000
Balance on the technical account for general business
419,431
Investment income
6
86,416
Realised gains on investments
6
10,765
Unrealised gains on investments
6
24,190
Investment expenses and charges
6
(1,804)
Total investment return
119,567
Allocated investment return transferred to general business technical account
(119,567)
Foreign exchange gains
16,817
Profit for the 2023 closed year of account
436,248
Members’ agents’ fees advances
(3,222)
Amounts due to members as at 31 December 2025
433,026
There are no recognised gains or losses in the accounting year other than those dealt with in the technical and non-technical
accounts, therefore no statement of other comprehensive income has been presented.
The notes on pages 55 to 59 form an integral part of these underwriting year accounts.
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
53
Balance sheet
Hiscox Syndicate 0033 underwriting year accounts
2023 account at 31 December 2025
2023 year of
account
Note
$000
Investments
Financial investments
8
1,673,058
Deposits with ceding undertakings
1,948
1,675,006
Reinsurance recoveries anticipated on gross reinsurance to close premium payable
3
1,167,609
Debtors
Debtors arising out of direct insurance operations
9
47,742
Debtors arising out of reinsurance operations
10
91,663
Other debtors
11
49,184
188,589
Other assets
Cash at bank and in hand
15,999
Prepayments and accrued income
Accrued income
21,874
Total assets
3,069,077
Capital and reserves
Members’ balances
(433,026)
(433,026)
Reinsurance to close premium payable – gross amount
3
(2,344,417)
Creditors
Creditors arising out of direct insurance operations
12
(6,576)
Creditors arising out of reinsurance operations
13
(179,371)
Other creditors
14
(105,138)
(291,085)
Accruals and deferred income
(549)
Total liabilities
(2,636,051)
Total liabilities, capital and reserves
(3,069,077)
The notes on pages 55 to 59 form an integral part of these underwriting year accounts.
The underwriting year accounts on pages 52 to 59 were approved by the Board of Hiscox Syndicates Limited and were signed
on its behalf by
David Saker
Chief Financial Officer
17 February 2026
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
54
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
Notes to the accounts
Hiscox Syndicate 0033 underwriting year accounts
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 on 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 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 account reflects the transactions for
that year of account during the three-year period until closure.
These accounts cover the three years from the date of inception
of the 2023 year of account to the date of closure. Accordingly,
this is the only reporting period and so corresponding amounts
are not shown.
2 Accounting policies
The following accounting policies have been applied consistently
in dealing with items which are considered material in relation to
the syndicate underwriting year accounts.
The underwriting accounts for each year of account are normally
kept open for three years before the result on that year is
determined. At the end of the three-year period, outstanding
liabilities can normally be determined with sufficient accuracy
to permit the year of account to be closed by payment of a
reinsurance to close premium to the successor year of account.
The accounting policies adopted are the same as those disclosed
in Syndicate 0033 annual accounts with the exception of:
2(d) Claims
Gross claims paid include internal and external claims settlement
expenses and, together with reinsurance recoveries less
amounts provided for in respect of doubtful reinsurers, are
attributed to the same year of account as the original premium
for the underlying policy.
Reinstatement premiums payable in the event of a claim being
made are charged to the same year of account as that to which
the recovery is credited.
The net reinsurance to close premium is determined on the basis
of estimated outstanding liabilities and related claims settlement
costs (including claims incurred but not reported), net of estimated
collectible reinsurance recoveries, relating to the closed year of
account and all prior years of account reinsured therein.
The reinsurance to close contract transfers the liability in respect
of all claims, reinsurance premiums, return premiums and other
payments in respect of the closing year and prior years to the
members on the next open year in so far as they have not been
provided for in these accounts. It gives the members on the next
open year the benefit of refunds, recoveries, premiums due and
other income in respect of those years in so far as they have not
been credited in these accounts. The reinsurance to close is
treated as the extinguishment of the related net insurance
liabilities for the closed underwriting year.
2(g) Investment return
The returns on financial investments arising in a calendar year
are apportioned to years of account open during the calendar
year in proportion to the average funds available for investment
on each year of account.
2(h) Foreign currencies
The functional currency of the Syndicate is US Dollars. Assets,
liabilities, revenues and costs denominated in foreign currencies
are recorded at the rates of exchange ruling at the date of the
transactions. At the balance sheet date, monetary assets and
liabilities are translated at the year-end rates of exchange.
Differences arising on translation of foreign currency amounts
relating to insurance operations of the Syndicate are included in
profit/(loss) on foreign exchange in the non-technical account.
2(o) Operating expenses
Syndicate operating expenses are allocated to the year of
account for which they are incurred. Where expenses are
incurred on behalf of the Syndicate, by an agency company,
these expenses are apportioned to the Syndicate using varying
methods depending on the amount of work performed,
resources used and the volume of business transacted,
for that type of expense.
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
55
3 Reinsurance premium to close the 2023 prior years of account
Reported
IBNR
Unearned
premium*
Total
$000
$000
$000
$000
Reinsurance to close premium received
Gross reinsurance to close premium received
814,390 1,459,748
21,123 2,295,261
Reinsurance recoveries anticipated
(446,707) (822,181)
(7,142) (1,276,030)
Reinsurance to close premium receivable, net of reinsurance
367,683
637,567
13,981 1,019,231
Reinsurance to close premium payable
Gross reinsurance to close premium payable
882,524 1,406,666
55,227 2,344,417
Reinsurance recoveries anticipated
(448,944) (697,039)
(21,626) (1,167,609)
Reinsurance to close premium payable, net of reinsurance
433,580
709,627
33,601 1,176,808
*Unearned premium is shown net of deferred acquisition costs.
The reinsurance to close has been assumed by the following year of account of the Syndicate.
4 Analysis of underwriting result
2022 and prior
2023
Total
$000
$000
$000
Technical account balance before allocated investment return and net operating expenses
63,881
834,483
898,364
Brokerage and commission on gross premium
(13,633) (450,133) (463,766)
Total
50,248
384,350
434,598
5 Segmental analysis
2025
Gross premiums
written
Gross premiums
earned
Gross claims
incurred
Net operating
expenses
Reinsurance
balance
Underwriting result
$000
$000
$000
$000
$000
$000
Accident and health
30,217
30,217
(14,003)
(13,010)
(1,859)
1,345
Motor - third-party liability
27
27
(3)
—
(1)
23
Motor - other classes
—
—
—
—
—
—
Marine aviation and transport
217,942
217,942 (149,279)
(63,179)
5,590
11,074
Fire and other damage to property
942,646
942,646 (299,407) (298,761) (232,403)
112,075
Third party liability
314,104
314,104 (170,169)
(53,307)
(58,999)
31,629
Credit and suretyship
157,303
157,303
(76,423)
(51,284)
(16,741)
12,855
Total direct insurance
1,662,239 1,662,239 (709,284) (479,541) (304,413)
169,001
Reinsurance
627,142
627,142
(71,227) (118,959) (306,093)
130,863
Total
2,289,381 2,289,381 (780,511) (598,500) (610,506)
299,864
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
Notes to the accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
56
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
6 Investment return
2023 year of
account
$000
Interest and similar income
From financial instruments designated at fair value through profit or loss:
Interest income on financial assets
86,416
Other income from investments
From financial instruments designated at fair value through profit or loss:
Gains on realisation of investments
17,692
Losses on realisation of investments
(6,927)
Unrealised gains on investments
38,232
Unrealised losses on the investments
(14,042)
Investment expenses and charges
(1,804)
Total investment return
119,567
Transferred to the technical account from the non
-
technical account
119,567
Investment return for the 2023 year of account is recognised in the 2023, 2024 and 2025 calendar years. The investment income
and yield for these calendar years is disclosed in the investment return notes in each of the respective syndicate annual accounts.
7 Net operating expenses
The cumulative Syndicate expenses charged in the 2023 underwriting account were made up as follows:
2023 year of
account
$000
Brokerage and commissions
463,766
Other acquisition costs
153,482
Members’ standard personal expenses
28,016
Administrative expenses
115,080
Reinsurers’ commissions and profit participations
(161,844)
Total
598,500
Profit commission is charged by the managing agent at a rate of 15% on the total recognised gain of the Syndicate if the rolling
seven-year simple average basis is at least 7.5% or more of capacity. If the rolling seven-year average falls below 7.5% of capacity
profit commission will be charged at 12.5%. This calculation is subject to the operation of a two-year deficit clause. Profit
commission is disclosed within other acquisition costs.
Profit-related remuneration is charged at 5% on the profit of six major business areas. It is disclosed within other acquisition costs.
Administrative expenses include fees payable to the auditors and its associates (exclusive of VAT).
2023 year of
account
$000
Auditors' remuneration
Fees payable to the Syndicate’s auditors for the audit of the syndicate 2023 underwriting account
657
Fees payable to the Syndicate’s auditors and its associates in respect of other services pursuant to legislation
223
Total auditors’ remuneration expense
880
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
Notes to the accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
57
8 Financial investments
Fair value
Cost
$000
$000
Debt securities and other fixed income securities
1,629,766 1,533,357
Shares and other variable yield securities and units in unit trusts
36,555
36,555
Participation in investment pools
6,730
6,730
Derivative financial assets
7
—
Total
1,673,058 1,576,642
All financial investments were carried at fair value through profit or loss. No financial assets were classified as ‘held for trading’ under
FRS 102.
Other financial assets under FRS 102 are cash at bank and in hand, direct insurance and reinsurance debtors, other debtors and
accrued income, which are classified as loans and receivables.
9 Debtors arising out of direct insurance operations
$000
Due within one year
46,052
Due after one year
1,690
Total
47,742
10 Debtors arising out of reinsurance operations
$000
Due within one year
91,042
Due after one year
621
Total
91,663
11 Other debtors
$000
Amounts owed from fellow subsidiary of managing agent
2,895
Other
46,289
Total
49,184
12 Creditors arising out of direct insurance operations
$000
Due within one year
6,576
Due after one year
—
Total
6,576
13 Creditors arising out of reinsurance operations
$000
Due within one year
117,494
Due after one year
61,877
Total
179,371
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
Notes to the accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
58
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
14 Other creditors
$000
Amounts owed to fellow subsidiary of managing agent
80,180
Other
24,958
Total
105,138
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
Notes to the accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
59
Seven-year summary
Hiscox Syndicate 0033 underwriting year accounts
Year of account
2017
2018
2019
2020
2021
2022
2023
Syndicate allocated capacity in £000
1,147,315 1,598,258 1,399,156 1,698,078 1,699,385 1,699,337
1,698,376
Syndicate allocated capacity in $000
1,519,389 2,185,139 1,895,157 2,042,618 2,166,377 2,129,100
2,284,486
Number of underwriting members
1,546
1,551
1,530
1,502
1,485
1,440
1,408
Net premiums net of brokerage in $000
411,279
551,669
555,281
680,962
668,274
848,091
983,660
Capacity utilised (%)
76
67
84
77
73
79
80
Net capacity utilised (%)
27
25
29
33
31
40
43
Results for an illustrative share of £10,000
2017
2018
2019
2020
2021
2022
2023
$000
$000
$000
$000
$000
$000
$000
Gross premiums
13,051
11,973
14,610
11,653
11,673
12,378
13,480
Net premiums
6,561
6,239
7,150
6,363
6,297
7,463
8,522
Reinsurance to close from an earlier account
6,600
4,707
5,911
5,942
5,113
5,245
6,001
Net claims paid
(4,160)
(3,460)
(3,557)
(2,231)
(2,643)
(2,892)
(2,618)
Reinsurance to close
(6,541)
(5,172)
(7,145)
(6,935)
(5,472)
(5,932)
(6,616)
Profit/(loss) on exchange
37
33
1
(7)
(72)
(167)
99
Syndicate operating expenses
(2,625)
(2,423)
(2,529)
(2,312)
(2,320)
(2,615)
(3,359)
Members personal expenses
(175)
(167)
(171)
(168)
(177)
(169)
(165)
Balance on technical account before investment
return
(303)
(243)
(340)
652
726
933
1,864
Investment return
304
260
133
(125)
315
630
704
Profit/(loss) before members’ agent’s fees
1
17
(207)
527
1,041
1,563
2,568
Profit/(loss) before members’ agent’s fees £000
1
12
(153)
438
817
1,248
1,909
Notes to the seven-year summary
1.
The seven-year summary has been prepared from the audited accounts of the Syndicate however the table is unaudited.
2.
Personal expenses have been stated at the amount which would be incurred pro-rata by members writing the illustrative premium income in the Syndicate,
irrespective of any minimum charge applicable. Personal expenses include managing agent fees, central fund contributions, Lloyd’s subscriptions and profit
commissions. These figures exclude members’ agents’ fees.
3.
‘Capacity utilised’ represents gross premiums as a percentage of the allocated capacity. ‘Net capacity utilised’ represents net premiums as a percentage of the
allocated capacity. For these calculations, gross and net premiums are net of brokerage.
4.
Profit commission has been calculated in accordance with the applicable agency agreements.
5.
Premium figures and Syndicate operating expenses are gross of brokerage.
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
60
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 3
Hiscox Syndicate 6104
annual accounts
62
Report of the Directors of the
managing agent
65
Statement of managing agent’s
66
Independent auditors’ report
69
Profit and loss account:
technical account
- general business
70
Profit and loss account:
non-technical account
- general business
71
Balance sheet – assets
72
Balance sheet – liabilities
73
Statement of changes in members’
balances
74
Statement of cash flows
75
Notes to the accounts
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
61
The Directors of the managing agent present their report for Syndicate 6104 for the year ended 31 December 2025.
This Annual Report is prepared using the annual basis of accounting as required by Statutory Instrument No. 1950 of 2008, the
Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008. The Syndicate continues to adopt the
going concern basis in preparing the syndicate annual accounts.
Separate underwriting year accounts for the closed 2023 year of account of Syndicate 6104 are included following these
annual accounts.
Results
The result for Syndicate 6104 in calendar year 2025 is a profit of $26.6 million (2024: $31.7 million). The Syndicate demonstrated
strong performance, supported by substantial premium growth resulting from increased capacity and additional ceded business
from Syndicate 0033, driven by new business opportunities across various accounts within reinsurance. Adverse impacts were
experienced due to significant losses from the California wildfires in January 2025, as well as, to a lesser extent, Hurricane Melissa in
October 2025. These effects were partially offset by favourable prior-year development on historical events, including Hurricanes
Milton, Ida, and Ian, along with reductions associated with Covid-19. Additionally, positive investment income contributed to the
overall result for the year.
The Syndicate’s key financial performance indicators during the year were as follows:
2025
2024
%
$m
$m
Change
Gross premiums written
103.3
75.3
37.2
Gross premiums earned
102.0
66.6
53.2
Net premiums earned
97.9
63.8
53.4
Total recognised profit for the year
26.6
31.7
(16.1)
Claims ratio (%)
55.8
24.9
30.9
Commission ratio (%)
19.6
19.4
0.2
Expense ratio (%)
4.8
11.6
(6.8)
Combined ratio (%)
80.2
55.9
24.3
Principal activity
The principal activity of Syndicate 6104 is the transaction of reinsurance business in the United Kingdom at Lloyd’s of London.
The Syndicate has the following underwriting capacity:
Years of account
2020
2021
2022
2023
2024
2025
2026
Capacity (£m)
44.4
23.3
12.7
19.4
56.4
78.3
100.7
Capacity ($m)*
59.7
31.3
17.1
26.1
75.9
105.3
135.5
*Converted at the closing rate at 31 December 2025.
None of the capacity of the Syndicate is provided by the Hiscox Group.
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
Report of the Directors of the managing agent
Hiscox Syndicate 6104 annual accounts
62
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
Syndicate 6104 trades through the Lloyd’s worldwide licences
and rating. It also benefits from the Lloyd’s brand. Lloyd’s and
Lloyd’s Brussels has an A+ (Superior) rating from A.M. Best, AA-
(Very strong) from S&P, AA- (Very strong) from Fitch and AA-
(Very strong) from Kroll Bond Rating Agency.
The geographical and currency split of its business is
shown below:
Geographical split of gross premium written (%)
2025
2024
%
%
UK
—
—
Europe
9
13
North America
58
58
Asia
4
2
Rest of the world
29
27
Geographical premiums written settlement currency (%)
2025
2024
%
%
Sterling
18
18
Euro
5
5
US Dollar
75
76
Canadian Dollar
2
1
Review of the business
Special Purpose Arrangement 6104 (Syndicate 6104) was
established for the 2008 year of account to provide quota
share reinsurance to Syndicate 0033’s excess of loss property
catastrophe reinsurance account and from the 2019 year of
account it also provided quota share reinsurance to Syndicate
0033’s cyber account. Since the 2023 year of account the
Syndicate has provided quota share reinsurance to Syndicate
0033’s applicable property risk excess of loss, property
catastrophe, marine, terrorism and cyber within the
reinsurance accounts.
Syndicate 6104 pays a fee and profit commission to Syndicate
0033 for the business ceded. In addition, Hiscox Syndicates
Limited (HSL) charges a fee of 0.5% of capacity to Syndicate
6104 from which it must meet all of its Syndicate expenses.
The Syndicate operates like a normal syndicate in that upon
closure of the account the assets and liabilities are transferred to
the next year of account through the reinsurance to close (RITC)
process. There are, however, certain differences, the most
significant of which is that the capacity, which is all provided by
third-party capital providers, operates on a limited tenancy basis.
Syndicate 6104 only writes one contract per year, a reinsurance
of Syndicate 0033. This contract operates on a funds-withheld
basis with Syndicate 6104 credited interest on the balance
owing by Syndicate 0033.
The portfolio is underwritten by the Syndicate 0033 reinsurance
underwriting team and includes exposures from all territories
around the world. Due to the nature of the business, the
Syndicate is likely to produce a volatile operating performance.
The cession from Syndicate 0033 increased to a weighted
average of 20.5% in 2025 (2024: 16.3%), reflecting a significant
increase in support from third-party members and a resulting
increase in stamp capacity. Premium income increased to
$103.3 million (2024: $75.3 million).
2026 and the future
The Syndicate is well placed to deliver profit in 2026, and whilst
there is an expectation for further rate softening, this follows
several years of continued rate increases and terms and
conditions improvements. The Syndicate has increased stamp
capacity to $135.5 million (£100.7 million) in 2026
.
The cession
from Syndicate 0033 has increased inline with this to a weighted
average of 26.9%.
Capital
One of the main advantages of trading through Lloyd’s is the
considerably lower capital ratios that are available in Lloyd’s as
a whole. The size of the Syndicate is increased or reduced
according to the strength of the insurance environment in its
main classes.
The Hiscox Syndicates Limited (HSL) internal capital model is
used to set the Syndicate’s capital. Syndicate capital is
determined through the submission and agreement by Lloyd’s of
an ultimate solvency capital requirement (SCR), which is subject
to an uplift determined by the Franchise Board to calibrate the
capital required by Lloyd’s. Lloyd’s unique capital structure
provides excellent financial security to policyholders and capital
efficiency for members. This chain of security provides the
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
Report of the Directors
of the managing agent
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
63
financial strength that ultimately backs insurance policies written
at Lloyd’s and has three links:
1.
all premiums received by syndicates are held in trust as the
first resource for paying policyholders’ claims;
2.
every member is required to hold capital at Lloyd’s which is
held in trust and known as Funds at Lloyd’s (FAL). These
funds are intended primarily to cover circumstances where
syndicate assets prove insufficient to meet participating
members’ underwriting liabilities. They are set with reference
to the SCR together with the Lloyd’s uplift. Since FAL is not
under the control of the managing agent, no amount has
been shown in the annual accounts. However, the managing
agent is able to make a call on the members’ FAL to meet
liquidity requirements or to settle losses; and
3.
the central assets are available at the discretion of the
Council of Lloyd’s to meet any valid claim that cannot
be met from the resources of any member further up
the chain.
Syndicate 6104 operates on a funds-withheld basis. A significant
loss event could place a strain on Syndicate 0033’s cash flows.
Consequently, we put members on notice that, in these
circumstances, we may need to make a cash call, at some time
in the future.
Principal risks and uncertainties
A description of the principal risks and uncertainties facing the
Syndicate is set out in the annual accounts of Syndicate 0033
(note 4).
Directors’ interests
The Directors of the managing agent and their interests are
disclosed in Syndicate 0033 annual accounts.
Disclosure of information to the auditors
The Directors of the managing agent who held office at the date
of approval of this managing agent’s report confirm that, so far
as they are each 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 to make themselves aware of any relevant audit
information and to establish that the Syndicate’s auditors are
aware of that information.
Annual General Meeting
Usually the only formal business conducted at the Syndicate
Annual General Meeting (AGM) is the appointment of the
Syndicate auditors for the following year, and usually the
attendance at the AGM, when it is held, is minimal.
In accordance with the Insurance Accounts Directive
(Lloyd’s Syndicate and Aggregate Accounts) (the 2008
Regulations) a Syndicate AGM was held in 2016 to appoint
PricewaterhouseCoopers LLP (PwC) as the Syndicate’s
registered auditors. The 2008 Regulations contain provisions
for the re-appointment of the Syndicate’s registered auditors.
Lloyd’s requirements allow managing agents to dispense with
the requirement to hold a Syndicate AGM, providing certain
criteria are met.
This year, we therefore give notice that:
•
Hiscox Syndicates Limited does not propose to hold an
AGM of the members of Syndicate 6104 in 2026;
•
PwC will be deemed to be re-appointed as the Syndicate’s
registered auditors pursuant to the 2008 Regulations;
•
members may object to the matters set out above within
21 days of this notice.
If no objections to this are received from any members within the
specified period, we shall notify Lloyd’s to that effect.
If any objections are received, depending on the level or nature
of such objections, we shall then consider whether to:
1.
apply for Lloyd’s consent not to hold an AGM. Lloyd’s may
give its consent subject to any such conditions and
requirements as it may determine; or
2.
convene an AGM.
By order of the Board
David Saker
Chief Financial Officer
17 February 2026
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
Report of the Directors
of the managing agent
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
64
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
Statement of managing agent’s responsibilities
Hiscox Syndicate 6104 annual accounts
The managing agent is responsible for preparing the Syndicate
Annual Report and 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 syndicate annual accounts at 31 December
each year in accordance with UK accounting standards and
applicable law (UK Generally Accepted Accounting Practice).
The syndicate annual accounts are required by law to give a
true and fair view of the state of affairs of the Syndicate at that
date and of its profit or loss for that year.
In preparing those syndicate annual accounts, the managing
agent is required to:
•
select suitable accounting policies and then apply them
consistently, subject to changes arising on the adoption
of new accounting standards in the year;
•
make judgements and estimates that are reasonable
and prudent;
•
state whether applicable accounting standards have been
followed, subject to any material departures disclosed and
explained in the syndicate annual accounts; and
•
prepare the syndicate annual accounts on the basis that
the Syndicate will continue to write future business unless
it is inappropriate to presume the Syndicate will do so.
The managing agent is responsible for keeping proper
accounting records that disclose with reasonable accuracy, at
any time, the financial position of the Syndicate and enable it to
ensure that the syndicate annual accounts, including the iXBRL
tagging applied to these 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 prevention and detection of fraud and other irregularities.
The managing agent is responsible for the maintenance and
integrity of the corporate and financial information included on
the company’s website. Legislation in the UK governing the
preparation and dissemination of the syndicate annual accounts
may differ from legislation in other jurisdictions.
We confirm that to the best of our knowledge the syndicate
accounts, including the iXBRL tagging applied to these
accounts, comply with the requirements of the Lloyd’s Syndicate
Accounts instructions version 3.1 as modified by the frequently
asked questions version 1.1 issued by Lloyd’s.
David Saker
Chief Financial Officer
17 February 2026
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
65
Report on the audit of the syndicate annual accounts
Opinion
In our opinion, 6104’s syndicate annual accounts:
•
give a true and fair view of the state of the Syndicate’s
affairs as at 31 December 2025 and of its profit and cash
flows for the year then ended;
•
have been properly prepared in accordance with United
Kingdom Generally Accepted Accounting Practice (United
Kingdom Accounting Standards, including FRS 102 ‘The
Financial Reporting Standard applicable in the UK and
Republic of Ireland’, and applicable law); and
•
have been prepared in accordance with the
requirements of The Insurance Accounts Directive
(Lloyd’s Syndicate and Aggregate Accounts)
Regulations 2008 and the requirements within the
Lloyd’s Syndicate Accounts Instructions version 3.1 as
modified by the Frequently Asked Questions issued by
Lloyd’s version 1.1 (‘the Lloyd’s Syndicate Instructions’).
We have audited the syndicate annual accounts included
within the
Annual
Report and Accounts (the ‘Annual Report’),
which comprise:
B
alance sheet – assets and the
B
alance sheet –
liabilities as at 31 December 2025; the
P
rofit and loss account:
technical account – general business and
P
rofit and loss
account: non-technical
account
– general business, the
S
tatement of cash flows, and the
S
tatement of changes in
members’ balances for the year then ended; and the notes to
the syndicate annual accounts, which include a description of
the significant accounting policies.
Basis for opinion
We conducted our audit in accordance with International
Standards on Auditing (UK) (ISAs (UK)), 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 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 6, we have provided no non-
audit services to the Syndicate in the period under audit.
Conclusions relating to going concern
Based on the work we have performed, we have not identified
any material uncertainties relating to events or conditions that,
individually or collectively, may cast significant doubt on the
Syndicate’s ability to continue as a going concern for a period of
at least
twelve
months from when the syndicate annual accounts
are authorised for issue.
In auditing the syndicate annual accounts, we have concluded
that the managing agent’s use of the going concern basis of
accounting in the preparation of the syndicate annual accounts
is appropriate.
However, because not all future events or conditions can be
predicted, this conclusion is not a guarantee as to the
Syndicate’s ability to continue as a going concern.
Our responsibilities and the responsibilities of the managing
agent with respect to going concern are described in the
relevant sections of this report.
Reporting on other information
The other information comprises all of the information in the
Annual Report other than the syndicate annual accounts and
our auditors’ report thereon. The managing agent is responsible
for the other information. Our opinion on the syndicate annual
accounts does not cover the other information and, accordingly,
we do not express an audit opinion or, except to the extent
otherwise explicitly stated in this report, any form of
assurance thereon.
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
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
Independent auditors’ report
To the members of Syndicate 6104
66
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
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
R
eport of the Directors of the managing
agent (the ‘managing agent’s report’), we also considered
whether the disclosures required by The Insurance Accounts
Directive (Lloyd’s Syndicate and Aggregate Accounts)
Regulations 2008 have been included.
Based on our work undertaken in the course of the audit, The
Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate
Accounts) Regulations 2008 requires us also to report certain
opinions and matters as described below.
Managing agent’s report
In our opinion, based on the work undertaken in the course of
the audit, the information given in the managing agent’s report
for the year ended 31 December 2025 is consistent with the
syndicate annual accounts and has been prepared in
accordance with applicable legal requirements.
In light of the knowledge and understanding of the Syndicate
and its environment obtained in the course of the audit, we did
not identify any material misstatements in the managing agent’s
report.
Responsibilities for the syndicate annual accounts and
the audit
Responsibilities of the managing agent for the
syndicate annual accounts
As explained more fully in the
S
tatement of managing agent’s
responsibilities, the managing agent is responsible for the
preparation of the syndicate annual accounts in accordance with
the applicable framework and for being satisfied that they give a
true and fair view. The managing agent is also responsible for
such internal control as they determine is necessary to enable
the preparation of syndicate annual accounts that are free from
material misstatement, whether due to fraud or error.
In preparing the syndicate annual accounts, the managing agent
is responsible for assessing the Syndicate’s ability to continue as
a going concern, disclosing as applicable, matters related to
going concern and using the going concern basis of accounting
unless it is intended for the Syndicate to cease operations, or it
has no realistic alternative but to do so.
Auditors’ responsibilities for the audit of the syndicate
annual accounts
Our objectives are to obtain reasonable assurance about
whether the syndicate annual accounts as a whole are free from
material misstatement, whether due to fraud or error, and to
issue an auditors’ report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with ISAs (UK) will always
detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken
on the basis of these syndicate annual accounts.
Irregularities, including fraud, are instances of non-compliance
with laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect material misstatements
in respect of irregularities, including fraud. The extent to which
our procedures are capable of detecting irregularities, including
fraud, is detailed below.
Based on our understanding of the Syndicate and industry, we
identified that the principal risks of non-compliance with laws
and regulations related to breaches of regulatory principles,
such as those governed by the Prudential Regulation Authority
and the Financial Conduct Authority, and those regulations set
by the Council of Lloyd’s, and we considered the extent to
which non-compliance might have a material effect on the
syndicate annual accounts.
We also considered those laws and regulations that have a
direct impact on the syndicate annual accounts such as The
Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate
Accounts) Regulations 2008
and the Lloyd's Syndicate
Instructions
. We evaluated management’s incentives and
opportunities for fraudulent manipulation of the syndicate annual
accounts (including the risk of override of controls), and
determined that the principal risks were related to manual
journals
relating to revenue
and accounting estimates in respect
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
Independent auditors’ report
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
67
of the valuation of
claims outstanding. Audit procedures
performed by the engagement team included:
•
discussions with senior management, including those in
the risk and compliance functions, including consideration
of known or suspected instances of non-compliance with
laws, regulation and fraud;
•
reading key correspondence with Lloyd’s, in relation to
compliance with laws and regulations;
•
reviewing relevant meeting minutes including those of the
Audit Committee;
•
testing journal entries identified in accordance with our
risk
assessment;
•
testing and assessing the appropriateness of insurance
claims reserves;
and
•
designing audit procedures to incorporate unpredictability
around the nature, timing and extent of our testing.
There are inherent limitations in the audit procedures
described above. We are less likely to become aware of
instances of non-compliance with laws and regulations that
are not closely related to events and transactions reflected in
the syndicate annual accounts. Also, the risk of not detecting
a material misstatement due to fraud is higher than the risk of
not detecting one resulting from error, as fraud may involve
deliberate concealment by, for example, forgery or intentional
misrepresentations, or through collusion.
A further description of our responsibilities for the audit of the
syndicate annual accounts is located on the FRC’s website at:
www.
frc.org.uk/auditorsresponsibilities
. This description
forms part of our auditors’ report.
Use of this report
This report, including the opinions, has been prepared for
and only for the Syndicate’s 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.
Other required reporting
Under The Insurance Accounts Directive (Lloyd’s Syndicate and
Aggregate Accounts) Regulations 2008 we are required to report
to you if, in our opinion:
•
we have not obtained all the information and explanations
we require for our audit; or
•
adequate accounting records have not been kept by the
managing agent in respect of the Syndicate; or
•
certain disclosures of managing agent remuneration
specified by law are not made; or
•
the syndicate annual accounts are not in agreement with
the accounting records.
We have no exceptions to report arising from this responsibility.
Other matter
We draw attention to the fact that this report may be included
within a document to which iXBRL tagging has been applied.
This auditors’ report provides no assurance over whether the
iXBRL tagging has been applied in accordance with section 2
of the Lloyd’s Syndicate Instructions version 3.1.
Neil Riches
(Senior Statutory Auditor)
for and on behalf of
PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
London
17 February 2026
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
Independent auditors’ report
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
68
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
Profit and loss account:
technical account – general business
Hiscox Syndicate 6104 annual accounts
For the year ended 31 December 2025
2025
2024
Note
$000
$000
Gross premiums written
5
Outward reinsurance premiums
(4,630 )
(2,862 )
Premiums written, net of reinsurance
Change in the provision for unearned premiums:
Gross amount
(1,320 )
(8,682 )
Reinsurers' share
Net change in provisions for unearned premiums
(780 )
(8,682 )
Earned premiums, net of reinsurance
Allocated investment return transferred from/(to) the non-technical account
Claims paid:
Gross amount
10
(11,210 )
(19,029 )
Reinsurers' share
Net claims paid
(11,210 )
(19,029 )
Change in the provision for claims:
Gross amount
(43,393 )
Reinsurers' share
Net change in provisions for claims
(43,393 )
Claims incurred, net of reinsurance
(54,603 )
(15,906 )
Net operating expenses
6
(23,892 )
(19,797 )
Balance on the technical account for general business
The notes on pages 75 to 83 form an integral part of these annual accounts.
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
69
Profit and loss account:
non-technical account – general business
Hiscox Syndicate 6104 annual accounts
For the year ended 31 December 2025
2025
2024
Note
$000
$000
Balance on the technical account for general business
Investment income
8
Total investment return
8
Allocated investment return transferred (to)/from the general business technical account
(6,452 )
(4,283 )
Foreign exchange gains/(losses)
(604 )
Profit for the financial year
There are no recognised gains or losses in the accounting year other than those dealt with in the technical and non-technical
accounts, therefore no statement of other comprehensive income has been presented.
The notes on pages 75 to 83 form an integral part of these annual accounts.
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
70
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
Balance sheet – assets
Hiscox Syndicate 6104 annual accounts
At 31 December 2025
2025
2024
Note
$000
$000
Reinsurers' share of technical provisions
Provision for unearned premium
10
Claims outstanding
Debtors
Debtors arising out of reinsurance operations
11
Other debtors
12
Prepayments and accrued income
Deferred acquisition costs
10
Total assets
The notes on pages 75 to 83 form an integral part of these annual accounts.
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
71
Balance sheet – liabilities
Hiscox Syndicate 6104 annual accounts
At 31 December 2025
2025
2024
Note
$000
$000
Capital and reserves
Members' balances
Technical provisions
Provision for unearned premium
10
Claims outstanding
10,13
Creditors
Creditors arising out of reinsurance operations
14
Other creditors
15
Total liabilities
Total liabilities, capital and reserves
The notes on pages 75 to 83 form an integral part of these annual accounts.
The annual accounts on pages 69 to 83 were approved by the Board of Hiscox Syndicates Limited and were signed on its behalf by
David Saker
Chief Financial Officer
17 February 2026
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
72
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
Statement of changes in members’ balances
Hiscox Syndicate 6104 annual accounts
For the year ended 31 December 2025
2025
2024
$000
$000
Members' balances brought forward at 1 January
Total recognised gains for the year
Payments of profit to members’ personal reserve funds
(31,714 )
(1,091 )
Losses collected in relation to distribution on closure of underwriting year
Members' agent fees
(314 )
(234 )
Members' balances carried forward at 31 December
Members participate on 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 in respect of their membership of a particular year.
A profit payment distribution of $13.4 million to members will be proposed in relation to the closing year of account 2023 (2024:
profit payment distribution of $5.8 million to members in relation to the closing year of account 2022 and a profit payment distribution
of $25.9 million to members in relation to the closing year of account 2020). See note 9 the reporting year result of years of account
remaining open after the three-year period.
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
73
Statement of cash flows
Hiscox Syndicate 6104 annual accounts
For the year ended 31 December 2025
2025
2024
Note
$000
$000
Cash flows from operating activities
Profit for the year
Increase in gross technical provisions
Increase in reinsurers' share of gross technical provisions
(540 )
Increase in debtors
(39,061 )
(40,222 )
Increase in creditors
Movement in other assets/liabilities
(4,794 )
Investment return
8
(6,452 )
Foreign exchange
Net cash flows from operating activities
Cash flows from investing activities
Purchase of equity and debt instruments
Sale of equity and debt instruments
Investment income received
Other
(4,283 )
Net cash flows from investing activities
(4,283 )
Cash flows from financing activities
Distribution of profits
(32,028 )
(1,325 )
Collection of losses
Net cash flows from financing activities
(32,028 )
(1,325 )
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
74
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
Notes to the accounts
Hiscox Syndicate 6104 annual accounts
1 Basis of preparation
The basis of preparation of these accounts is the same as
disclosed for Syndicate 0033.
These annual accounts are presented in US Dollars,
which is the Syndicate’s functional currency. All amounts
have been rounded to the nearest thousand, unless
otherwise indicated. Some disclosure items, for example,
Syndicate capacity are presented in Sterling as it is
denominated in this currency, US Dollar amounts are
converted at the closing rate at 31 December 2025.
2 Accounting policies
The principal accounting policies adopted are the same as
those disclosed for Syndicate 0033.
Accounting policies not applied by Syndicate 6104:
2(a) Pension costs
Syndicate 6104 is not recharged for any pension costs.
Additional accounting policies applied by Syndicate 6104:
2(b) Funds withheld
Underlying premiums and claims are settled by Syndicate 0033
with policyholders as they fall due. Within Syndicate 6104 these
are accounted for on a funds-withheld basis.
Debtors and creditors arising between Syndicate 6104 and
Syndicate 0033 are not settled until the year of account has
closed. Up to that time the balances are shown separately.
Claims outstanding are also settled when the year of account
closes. Other non-technical transactions are settled when the
year of account closes.
Interest is calculated on the daily paid cash fund experience
balance, held by Syndicate 0033 on behalf of the Syndicate.
Interest on each currency balance is credited at the same yield
earned by Syndicate 0033 in the period for each currency.
3 Judgements and key sources of estimation uncertainty
The judgements and key sources of estimation uncertainty are
the same as those disclosed for Syndicate 0033, with the
exception of:
3(b) Premium recognition
The Syndicate writes premiums as reported under its
reinsurance contract with Syndicate 0033. The gross
premiums written in Syndicate 0033 are initially based on
estimated premium income (EPI) of each contract. EPI
estimates are based on information provided by the brokers,
past underwriting experience and the contractual terms of the
policy. The EPI estimates are reviewed on a regular basis. As
the year of account closes, premiums are adjusted to match
the actual signed premium. Premiums in respect of insurance
contracts underwritten under binding authorities are booked as
the underlying contracts incept. The Syndicate allocates the
expected premium receipts to each period of insurance
contracts underwritten the basis of the passage of time. But if
the expected pattern of release of risk during the coverage
period differs significantly from the passage of time, for
example a group of contracts that is exposed to large natural
catastrophe risk concentrated in the first or second half of the
year, then the allocation is made on the basis of the expected
timing of claims incurred.
Gross premiums written includes an estimation for reinstatement
premiums which is determined based on incurred losses held in
the technical provisions.
3(c) Fair value of financial instruments
The Syndicate does not hold any investments.
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
75
4 Management of risk
Syndicate 6104 accepts all business under a quota-share reinsurance arrangement with Syndicate 0033 which is operated on a
funds-withheld basis in which funds are only received by the Syndicate when Syndicate 0033 makes a distribution, typically on
closure of the year of account. Consequently the majority of the principal risks applying to Syndicate 6104 are managed within
Syndicate 0033 and are disclosed within the Syndicate 0033 annual accounts management of risk, with the exception of the
following disclosures:
Insurance risk
(ii) Reserving risk
Booked reserves include a net margin of $24.6 million (2024: $17.5 million), representing 30.1% (2024: 29.2%) of net booked
reserves. This is the margin above the best estimate to help 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 table below (a) 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.
Table (a)
General insurance business sensitivities as at 31 December 2025
2.5 %
(2.5)%
5.0 %
(5.0)%
$000
$000
$000
$000
Claims outstanding - gross of reinsurance
2,331
(2,331)
(4,662 )
Claims outstanding - net of reinsurance
2,331
(2,331)
(4,662 )
General insurance business sensitivities as at 31 December 2024
2.5 %
(2.5)%
5.0 %
(5.0)%
$000
$000
$000
$000
Claims outstanding - gross of reinsurance
1,241
(1,241)
(2,482 )
Claims outstanding - net of reinsurance
1,241
(1,241)
(2,482 )
Financial risk
(a) Reliability of fair values
No assets or liabilities are held at fair value.
(b) Interest rate risk
The interest rate risk for this Syndicate is the same as disclosed for Syndicate 0033
.
It receives investment income from Syndicate
0033 and does not directly hold any financial instruments.
Interest rate risk
2025 impact on
profit
2025 impact on
members' balance
2024 impact on
profit
2024 impact on
members' balance
$000
$000
$000
$000
Plus 50 basis points shift in yield curves
(1,660 )
(1,660 )
(881 )
(881 )
Minus 50 basis points shift in yield curves
(c) Credit risk
The credit risk for this Syndicate is the same as disclosed for Syndicate 0033. All assets carrying credit risk are due from Syndicate
0033, which is rated AA- based on S&P.
Table d)
At 31 December 2025
AAA
AA
A
BBB
Other
Not rated
Total
$000
$000
$000
$000
$000
$000
$000
Debtors arising out of reinsurance operations
Other debtors and accrued interest
Total
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
Notes to the accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
76
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
4 Management of risk continued
At 31 December 2024
AAA
AA
A
BBB
Other
Not rated
Total
$000
$000
$000
$000
$000
$000
$000
Debtors arising out of reinsurance operations
Other debtors and accrued interest
Total
(d) Financial assets that are past due or impaired
The Syndicate has no assets which are past due or impaired at the reporting date.
Table (e)
At 31 December 2025
Neither past due
nor impaired assets
Past due but not
impaired assets
Gross value of
impaired assets
Impairment
allowance
Total
$000
$000
$000
$000
$000
Debtors arising out of reinsurance operations
—
Other debtors and accrued interest
—
Total
—
At 31 December 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
Debtors arising out of reinsurance operations
—
Other debtors and accrued interest
—
Total
—
(e) Liquidity risk
The liquidity risk for this Syndicate is the same as disclosed for Syndicate 0033. It is also exposed to Syndicate 0033 as all balances
are settled by Syndicate 0033.
Table g)
At 31 December 2025
Less than one year
Between one and
three years
Between three and
five years
Over five years
Total
$000
$000
$000
$000
$000
Debtors
23,142
148,691
—
—
171,833
Claims outstanding
(94,819 )
(93,230 )
Creditors
(11,107 )
(7,491 )
(18,598 )
Total
At 31 December 2024
Less than one year
Between one and
three years
Between three and
five years
Over five years
Total
$000
$000
$000
$000
$000
Debtors
49,263
79,673
—
—
128,936
Claims outstanding
(12,050 )
(37,598 )
(49,648 )
Creditors
(5,500 )
(9,782 )
(15,282 )
Total
(f) Currency risk
The majority of the Syndicate’s gross premiums written is in US Dollars, consequently movements in Sterling, Euro and Canadian
Dollar against US Dollar exchange rate may have a material effect on its financial performance and position. The Syndicate’s financial
assets are denominated in the same currencies as its insurance liabilities, in order to reduce currency exchange volatility from the
balance sheet. This profit and loss is distributed in accordance with Lloyd’s rules using a combination of Sterling and US Dollars.
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
Notes to the accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
77
4 Management of risk continued
Table h)
At 31 December 2025
US Dollar
Sterling
Euro
Canadian Dollar
Total
$000
$000
$000
$000
$000
Reinsurers share of technical provisions
Debtors
Prepayments and accrued income
Total assets
Technical provisions
(73,698 )
(23,629 )
(6,658 )
(3,692 )
(107,677 )
Creditors
(18,598 )
(18,598 )
Total liabilities
(92,296 )
(23,629 )
(6,658 )
(3,692 )
(126,275 )
Members balances by currency
(38,906 )
(8,245 )
(3,062 )
(48,911 )
At 31 December 2024
US Dollar
Sterling
Euro
Canadian Dollar
Total
$000
$000
$000
$000
$000
Reinsurers share of technical provisions
Debtors
Prepayments and accrued income
Total assets
Technical provisions
(53,640 )
(3,772 )
(2,414 )
(1,828 )
(61,654 )
Creditors
(15,444 )
(15,282 )
Total liabilities
(69,084 )
(3,610 )
(2,414 )
(1,828 )
(76,936 )
Members balances by currency
(31,583 )
(19,454 )
(3,257 )
(23 )
(54,317 )
Sensitivity analysis
The Syndicate performs sensitivity analysis based on a 10% strengthening or weakening of the US Dollar against Sterling, Euro
and the Canadian Dollar. This analysis assumes that all other variables, in particular interest rates, remain constant and that the
underlying valuation of assets and liabilities in their base currency is unchanged. During the year, the Syndicate transacted in a
number of over-the-counter forward currency derivative contracts. The impact of these contracts on the sensitivity analysis is
negligible. The impact of a 10% increase or decrease against the following currencies is shown in the table below:
Table i)
Currency risk
2025 impact on
profit
2025 impact on
members' balance
2024 impact on
profit
2024 impact on
members' balance
$000
$000
$000
$000
Ten percent increase in US Dollar/Sterling exchange rate
(825)
825
(1,945)
1,945
Ten percent decrease in US Dollar/Sterling exchange rate
825
(825)
1,945
(1,945)
Ten percent increase in US Dollar/Euro exchange rate
(306)
306
(326)
326
Ten percent decrease in US Dollar/Euro exchange rate
306
(306)
326
(326)
Ten percent increase in US Dollar/Canadian Dollar exchange rate
130
(130)
(2)
2
Ten percent decrease in US Dollar/Canadian Dollar exchange rate
(130)
130
2
(2)
Operational risk
The Syndicate’s underwriting capacity has fluctuated from $26.1 million for the 2023 year of account to $135.5 million for the 2026
year of account, with the cession of applicable property risk excess of loss, property catastrophe, marine, terrorism and cyber within
the reinsurance accounts from Syndicate 0033 also fluctuating in line with this from a weighted average of 5.3% for the 2023 year of
account to a weighted average of 26.9% for the 2026 year of account. The Syndicate’s operational risk remains aligned with
Syndicate 0033.
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
Notes to the accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
78
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
5 Segmental analysis
All business written by the Syndicate is reinsurance. All premiums were concluded in the UK.
Year ended 31 December 2025
Gross premiums
written
Gross premiums
earned
Gross claims
incurred
Net operating
expenses
Reinsurance
balance
Underwriting result
$000
$000
$000
$000
$000
$000
Reinsurance
(54,603 )
(23,892 )
(4,090 )
Total
(54,603 )
(23,892 )
(4,090 )
Year ended 31 December 2024
Gross premiums
written
Gross premiums
earned
Gross claims
incurred
Net operating
expenses
Reinsurance
balance
Underwriting result
$000
$000
$000
$000
$000
$000
Reinsurance
(15,906 )
(19,797 )
(2,862 )
Total
(15,906 )
(19,797 )
(2,862 )
6 Net operating expenses
2025
2024
$000
$000
Acquisition costs
Change in deferred acquisition costs
(291 )
(1,700 )
Members' standard personal expenses
Total
All administrative expenses are charged to and borne by Syndicate 0033. No brokerage or commissions were borne on direct
business written in the current or prior year.
Members’ standard personal expenses represent a managing agent’s fee payable to Hiscox Syndicates Limited.
Syndicate 0033 has been charged, on behalf of the Syndicate, fees payable to the Syndicate’s auditors for the audit of the syndicate
annual accounts.
2025
2024
$000
$000
Auditors' remuneration
Fees payable to the Syndicate’s auditors for the audit of the syndicate annual accounts
Fees payable to the Syndicate’s auditors and its associates in respect of other services pursuant to legislation
Total auditors’ remuneration expense
107
102
7 Staff costs
All staff are employed by a Hiscox Group service company. No recharge of salaries or Directors’ remuneration is made specifically
to the Syndicate. None of the Syndicate’s active underwriter’s remuneration has been charged to the Syndicate.
8 Investment return
2025
2024
$000
$000
Interest and similar income
From financial assets designated at fair value through profit or loss:
Interest income on financial assets
Total investment return
Transferred to the technical account from the non
-
technical account
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
Notes to the accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
79
9 Distribution and open years of account
A profit payment distribution of $13.4 million to members will be proposed in relation to the closing year of account 2023
(2024: profit payment distribution of $5.8 million
to members in relation to the closing year of account 2022 and a profit payment
distribution of $25.9 million to members in relation to the closing year of account 2020).
The table below shows the current reporting year result (total comprehensive income) of the years of account remaining open after
the three-year period:
2025
2024
$000
$000
2020
10 Technical provisions
2025
Gross
provisions
Reinsurance
assets
Total
$000
$000
$000
Claims outstanding:
Balance at 1 January
Over/under provision in respect of prior claims and claim adjustment expenses
(7,185 )
(7,185 )
Expected cost of current year claims
Claims paid for claims settled in year
(11,210 )
(11,210 )
Effect of movements in exchange rates
Balance at 31 December
Claims reported and claims adjustment expenses
—
—
—
Claims incurred but not reported
93,230
—
93,230
Balance at 31 December
93,230
—
93,230
Unearned premiums:
Balance at 1 January
Premiums written during the year
(4,630 )
Premiums earned during the year
(101,982 )
(97,892 )
Effect of movements in exchange rates
Balance at 31 December
(540 )
Deferred acquisition costs:
Balance at 1 January
Acquisition costs written
Acquisition costs earned
(19,215 )
(19,215 )
Effect of movements in exchange rates
Balance at 31 December
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
Notes to the accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
80
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
10 Technical provisions continued
2024
Gross
provisions
Reinsurance
assets
Total
$000
$000
$000
Claims outstanding:
Balance at 1 January
Over/under provision in respect of prior claims and claim adjustment expenses
(15,830 )
(15,830 )
Expected cost of current year claims
Claims paid for claims settled in year
(19,029 )
(19,029 )
Effect of movements in exchange rates
(310 )
(310 )
Balance at 31 December
Claims reported and claims adjustment expenses
—
—
—
Claims incurred but not reported
49,648
—
49,648
Unexpired risk reserve
—
—
—
Balance at 31 December
49,648
—
49,648
Unearned premiums:
Balance at 1 January
Premiums written during the year
(2,862 )
Premiums earned during the year
(66,624 )
(63,762 )
Effect of movements in exchange rates
Balance at 31 December
Deferred acquisition costs:
Balance at 1 January
Acquisition costs written
Acquisition costs earned
(12,392 )
(12,392 )
Effect of movements in exchange rates
Balance at 31 December
11 Debtors arising out of reinsurance operations
2025
2024
$000
$000
Due within one year
Due after one year
Total
12 Other debtors
2025
2024
$000
$000
Inter syndicate balances
Amount owed from fellow subsidiary of managing agent
Other
Total
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
Notes to the accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
81
13 Claims development tables
The claims development tables below have been calculated by converting estimated claims and cumulative payments in Canadian
Dollars, Sterling and Euros to US Dollars at the closing rate of exchange at 31 December 2025. The table is produced on a year of
account basis. Some business is not off risk after the first 12 months, therefore we would anticipate cumulative claims to increase in
the second year as this business is earned.
Pure underwriting year:
Gross of reinsurance
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
$000
$000
$000
$000
$000
$000
$000
$000
$000
$000
Estimate of
cumulative claims:
At end of underwriting
year one
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
Cumulative payments
(8,107 )
(56,308 )
(64,493 )
(37,876 )
(28,701 )
(18,288 )
(5,591 )
Estimated balance to pay
(22 )
(141 )
(319 )
(1,063 )
(1,102 )
(754 )
(785 )
Provision in respect of
prior years
(307 )
Total gross provision
included in the balance sheet
Pure underwriting year:
Net of reinsurance
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
$000
$000
$000
$000
$000
$000
$000
$000
$000
$000
Estimate of
cumulative claims:
At end of underwriting
year one
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
Cumulative payments
(8,107 )
(56,308 )
(64,493 )
(37,876 )
(28,701 )
(18,288 )
(5,591 )
Estimated balance to pay
(22 )
(141 )
(319 )
(1,063 )
(1,102 )
(754 )
(785 )
Provision in respect of
prior years
(307 )
Total net provision
included in the balance sheet
Prior-year development has been further explained under the ‘results’ section of the report of the Directors of the managing agent.
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
Notes to the accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
82
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
14 Creditors arising out of reinsurance operations
2025
2024
$000
$000
Due within one year
Due after one year
Total
15 Other creditors
2025
2024
$000
$000
Inter syndicate balances
Amounts owed to fellow subsidiary of managing agent
Other
Total
16 Related parties
Hiscox Syndicates Limited (HSL) manages Syndicate 6104 as well as Syndicate 0033 which purchases some reinsurance from
Syndicate 6104 on an arm’s-length basis. Syndicate 6104 pays an overriding commission and profit commission on the business
received from Syndicate 0033. Syndicate 6104 does not sell reinsurance to any other party.
HSL is a wholly owned indirect subsidiary of Hiscox Ltd which is incorporated in Bermuda and listed on the London Stock
Exchange. HSL receives a fixed fee for each pure underwriting year.
The following balance sheet amounts were outstanding at year-end with related parties:
Balance sheet assets and (liabilities) outstanding
2025
2024
$000
$000
Syndicate 0033
48,911
54,317
The following amounts reflected in the profit and loss were transacted with related parties:
Net income and (expenses) reflected in the profit and loss
2025
2024
$000
$000
Hiscox Syndicates Limited
(492)
(363)
Syndicate 0033
(27,137)
(32,094)
Hiscox Syndicates Limited charged managing agent fees to Syndicate 6104 of ($0.5) million (2024: $0.4 million million). Syndicate
0033 owes the Syndicate the cumulative result due on the quota share reinsurances Syndicate 6104 provides.
17 Foreign exchange rates
The following currency exchange rates have been used for principal foreign currency transactions:
2025
2025
2025
2024
2024
2024
start of period rate
end of period rate
average rate
start of period rate
end of period rate
average rate
US Dollar
Sterling
Euro
Canadian Dollar
18 Syndicate structure
The managing agent of the Syndicate is Hiscox Syndicates Limited whose immediate parent undertaking is Hiscox Holdings Limited,
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 Hiscox Ltd, Bermuda. Copies of Hiscox Ltd report and accounts can be obtained from
Chesney House, 96 Pitts Bay Road, Pembroke HM 08, Bermuda.
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
Notes to the accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
83
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
85
Report of the Directors of the
managing agent
87
Statement of managing agent’s
responsibilities
88
Independent auditors’ report
91
Profit and loss account:
technical account and
non-technical account –
general business
92
Balance sheet
93
Notes to the accounts
96
Seven-year summary
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
84
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
The Directors of the managing agent present their report for the
period ended 31 December 2025.
This report comprises the cumulative result to 31 December
2025 for the 2023 underwriting year of account at 36 months
of Syndicate 6104.
The syndicate underwriting year accounts have been prepared
under the Insurance Accounts Directive (Lloyd’s Syndicate and
Aggregate Accounts) Regulations 2008, in accordance with the
Lloyd’s Syndicate Accounting Byelaw (No. 8 of 2005) and
applicable accounting standards in the United Kingdom. The
Syndicate continues to adopt the going concern basis in
preparing the syndicate underwriting year accounts.
Principal activity and review of the business
Special Purpose Arrangement 6104 (Syndicate 6104) was
established for the 2008 year of account to provide quota share
reinsurance to Syndicate 0033’s excess of loss property
catastrophe reinsurance account and from the 2019 year of
account it also provided quota share reinsurance to Syndicate
0033’s cyber account. Since the 2023 year of account it has
provided quota share reinsurance to Syndicate 0033’s
applicable excess of loss property catastrophe reinsurance,
marine, terrorism and cyber accounts.
Syndicate 6104 pays a fee and profit commission to Syndicate
0033 for the business ceded. In addition, Hiscox Syndicates
Limited (HSL) charges a fee of 0.5% of capacity to Syndicate
6104 from which it must meet all of its syndicate expenses.
The Syndicate operates like a normal syndicate in that upon
closure of the account the assets and liabilities are transferred to
the next year of account through the reinsurance to close (RITC)
process. There are, however, certain differences, the most
significant of which is that the capacity, which is all provided by
third-party capital providers, operates on a limited tenancy basis.
The Syndicate only writes one contract per year, a reinsurance of
Syndicate 0033. This contract operates on a funds-withheld
basis, with Syndicate 6104 credited interest on the balance
owing by Syndicate 0033.
The portfolio is underwritten by the Syndicate 0033 reinsurance
underwriting team and includes exposures from all territories
around the world. Due to the nature of the business the
Syndicate is likely to produce a volatile operating performance.
A small amount of very high level attachment US windstorm and
US earthquake industry loss warranty retrocession protection
was purchased with the intention of bringing the US windstorm
and US earthquake net realistic disaster scenario (RDS)
percentages in line with those of the other main exposures.
2023 account
For 2023, to make the Syndicate more compelling to investors,
the strategy was refreshed to diversify the portfolio by
significantly expanding the specialty book, including new
marine and aviation cessions, doubling the cyber cession into
the Syndicate and adding a new risk excess of loss cession.
This was successful, with capacity increased to £19.4 million
($26.1 million) for the 2023 year of account. The cession from
Syndicate 0033 varies by class and the weighted average is
calculated as 5.3% of applicable classes.
2023 account has
closed with a cumulative profit to capacity of 51.7% after all
personal expenses (except members agent fees). The 2023
account will pick up losses including the Hawaii wildfires and
Hurricane Idalia.
2024 account
In 2024, capacity has increased to £56.4 million ($75.9 million)
while keeping the business mix aligned to 2023. The cession
from Syndicate 0033 varies by class and the weighted average is
calculated as 16.3% of applicable classes and increased in line
with the uplift in capacity. 2024 account will pick up a number of
catastrophe losses, including Hurricanes Helene and Milton. We
are forecasting a result in the range of 7.8% to 25.3% on
capacity. The forecast result range takes into account the loss
estimates resulting from the California wildfires, which occurred
in early 2025.
2025 account
In 2025, capacity has increased to £78.3 million ($105.3 million)
while keeping the business mix aligned to 2024. The cession
from Syndicate 0033 varies by class and the weighted average is
calculated as 20.5% of applicable classes and increased in line
with the uplift in capacity. The 2025 account will pick up losses
including the California wildfires and to a lesser extent Hurricane
Melissa. We are forecasting a result in the range of 23.2% to
38.2% on capacity.
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
Report of the Directors of the managing agent
Hiscox Syndicate 6104 underwriting year accounts
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
85
2026 account and the future
Capacity has increased to £100.7 million ($135.5 million) for the
2026 year of account, while keeping the business mix aligned to
2025. Whilst rate softening is expected in 2026, this follows
several years of continued rate increases and terms and
conditions improvements. The Syndicate is writing a diversified
range of classes written by Syndicate 0033’s reinsurance
division. The cession from Syndicate 0033 varies by class and
the weighted average is calculated as 26.9% of applicable
classes for the 2026 year of account.
Syndicate capacity and ownership
Syndicate capacity and ownership is disclosed in Syndicate
6104 annual accounts.
Directors’ interests
The Directors of the managing agent and their interests are
disclosed in Syndicate 0033 annual accounts.
Disclosure of information to the auditors
The Directors who held office at the date of approval of this
managing agent’s report confirm that, so far as they are each
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 to make
themselves aware of any relevant audit information and to establish
that the Syndicate’s auditors are aware of that information.
By order of the Board
David Saker
Chief Financial Officer
17 February 2026
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
Report of the Directors
of the managing agent
84
86
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
Statement of managing agent’s responsibilities
Hiscox Syndicate 6104 underwriting year accounts
The managing agent is responsible for preparing syndicate
underwriting year accounts and an accompanying
managing agent’s report in accordance with applicable law,
Lloyd’s Bye-laws and United Kingdom Generally Accepted
Accounting Practice. Detailed requirements in respect of
the underwriting year accounts are set out in the Lloyd’s
Syndicate Accounting Byelaw (No. 8 of 2005).
In preparing the syndicate underwriting year accounts, the
managing agent is required to:
•
select suitable accounting policies and then apply them
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 estimates that are reasonable and
prudent; and
•
state whether applicable accounting standards have been
followed, subject to any material departures disclosed and
explained in these accounts.
The managing agent is responsible for keeping proper
accounting records that disclose with reasonable accuracy, at
any time, the financial position of the Syndicate and enable it to
ensure that the syndicate underwriting year 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 corporate and financial information included on
the company’s website. Legislation in the UK governing the
preparation and dissemination of syndicate underwriting year
accounts may differ from legislation in other jurisdictions.
David Saker
Chief Financial Officer
17 February 2026
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
87
Report on the audit of the syndicate underwriting year
financial statements
Opinion
In our opinion, 6104’s syndicate underwriting year financial
statements for the 2023 year of account for the 36 months
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 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 Hiscox Syndicate 6104 underwriting year
accounts (the ‘underwriting year accounts’), which comprise:
the
B
alance sheet as at 31 December 2025; the
P
rofit and loss
account: technical account
and non-technical account
– general
business, for the 36 months 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 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 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
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
Independent auditors’ report
To the members of Syndicate 6104
2023 closed year of account
88
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
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 manual
journals
relating to revenue
and accounting estimates in respect
of
the valuation of
claims outstanding. Audit procedures
performed by the engagement team included:
•
discussions with senior management, including
those in the risk and compliance functions,
including consideration of known or suspected instances
of
non-compliance with laws, regulation and fraud;
•
reading key correspondence with Lloyd’s, in relation to
compliance with laws and regulations;
•
reviewing relevant meeting minutes including those of the
Audit Committee;
•
testing journal entries identified in accordance with our risk
assessment;
•
testing and assessing the appropriateness of insurance
claims reserves;
and
•
designing audit procedures to incorporate unpredictability
around the nature, timing
and
extent of our testing.
There are inherent limitations in the audit procedures described
above. We are less likely to become aware of instances of non-
compliance with laws and regulations that are not closely related
to events and transactions reflected in the underwriting year
financial statements. 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
underwriting year financial statements 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 Part C of the
Lloyd’s Syndicate Accounting Byelaw (No. 8 of 2005) 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.
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
Independent auditors’ report
84
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
89
Other required reporting
Under The Insurance Accounts Directive (Lloyd’s Syndicate and
Aggregate Accounts) Regulations 2008 and the Lloyd’s
Syndicate Accounting Byelaw (No. 8 of 2005), we are required to
report to you if, in our opinion:
•
we have not obtained all the information and explanations
we require for our audit; or
•
adequate accounting records have not been kept by the
managing agent in respect of the Syndicate; or
•
the underwriting year financial statements are not in
agreement with the accounting records.
We have no exceptions to report arising from this responsibility.
Neil Riches
(Senior Statutory Auditor)
for and on behalf of
PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
London
17 February 2026
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
Independent auditors’ report
84
90
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
Profit and loss account:
technical account and non-technical account – general business
Hiscox Syndicate 6104 underwriting year accounts
2023 year of account for the 36 months ended 31 December 2025
2023 year of
account
Note
$000
Syndicate allocated capacity
26,133
Earned premiums, net of reinsurance
Gross premiums written
17,750
Outward reinsurance premiums
(1,900)
Earned premiums, net of reinsurance
15,850
Reinsurance to close premium received, net of reinsurance
3
12,050
27,900
Allocated investment return transferred from the non-technical account
6
2,270
Claims paid:
Gross amount
(11,210)
Reinsurers' share
—
Net claims paid
(11,210)
Change in the provision for claims:
Gross amount
895
Reinsurers' share
—
Net change in provisions for claims
895
Claims incurred, net of reinsurance
(10,315)
Net operating expenses
7
(6,494)
Balance on the technical account for general business
13,361
2023 year of account for the 36 months ended 31 December 2025
2023 year of
account
Note
$000
Balance on the technical account for general business
13,361
Investment income
6
2,270
Total investment return
2,270
Allocated investment return transferred to general business technical account
(2,270)
Foreign exchange gains
161
Profit for the 2023 closed year of account
13,522
Members’ agents’ fees advances
(108)
Amounts due to members as at 31 December 2025
13,414
There are no recognised gains or losses in the accounting period other than those dealt with in the technical and non-technical
accounts, therefore no statement of other comprehensive income has been presented.
The notes on pages 93 to 95 form an integral part of these underwriting year accounts.
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
91
Balance sheet
Hiscox Syndicate 6104 underwriting year accounts
2023 account at 31 December 2025
2023 year of
account
Note
$000
Reinsurance recoveries anticipated on gross reinsurance to close premium payable
3
—
Debtors
Debtors arising out of reinsurance operations
8
14,638
Other debtors
9
2,044
16,682
Total assets
16,682
Capital and reserves
Members’ balances
(13,414)
(13,414)
Reinsurance to close premium payable – gross amount
3
1,589
Creditors
Creditors arising out of reinsurance operations
10
(1,900)
Other creditors
11
(2,957)
(4,857)
Total liabilities
(3,268)
Total liabilities, capital and reserves
(16,682)
The notes on pages 93 to 95 form an integral part of these underwriting year accounts.
The underwriting year accounts on pages 91 to 95 were approved by the Board of Hiscox Syndicates Limited and were signed on
its behalf by
David Saker
Chief Financial Officer
17 February 2026
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
92
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
Notes to the accounts
Hiscox Syndicate 6104 underwriting year accounts
1 Basis of preparation
The basis of preparation of these accounts are the same as disclosed for Syndicate 0033 underwriting accounts.
2 Accounting policies
The principal accounting policies adopted are the same as those disclosed for Syndicate 0033 underwriting year accounts.
3 Reinsurance premium to close the 2023 and prior years of account
2023 year of account
Reported
IBNR
Unearned
premium
Total
$000
$000
$000
$000
Reinsurance to close premium received
Gross reinsurance to close premium received
—
12,050
—
12,050
Reinsurance recoveries anticipated
—
—
—
—
Reinsurance to close premium receivable, net of reinsurance
—
12,050
—
12,050
Reinsurance to close premium payable
Gross reinsurance to close premium payable
—
(1,589)
—
(1,589)
Reinsurance recoveries anticipated
—
—
—
—
Reinsurance to close premium payable, net of reinsurance
—
(1,589)
—
(1,589)
The negative reinsurance to close premium payable reflects favourable reserve developments for the closed year of account 2022
and prior years following their closure into the 2023 year of account and subsequent settlement in accordance with the contractual
terms stipulated in the quota share agreement
4 Analysis of underwriting result
2023 year of account
2022 and prior
2023
2023 year of
account
$000
$000
$000
Technical account balance before allocated investment return and net operating expenses
3,691
13,894
17,585
Brokerage and commission on gross premium
73
(3,494)
(3,421)
Total
3,764
10,400
14,164
5 Segmental analysis
All business written by the Syndicate is reinsurance. All premiums were concluded in the UK.
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
93
6 Investment return
2023 year of
account
$000
Interest and similar income
From financial instruments designated at fair value through profit or loss:
Interest and similar income
2,270
Total investment return
2,270
Transferred to the technical account from the non
-
technical account
2,270
Investment return for the 2023 year of account is recognised in the 2023, 2024 and 2025 calendar years. The investment income
and yield for these calendar years is disclosed in the investment return notes in each of the respective syndicate annual accounts.
7 Net operating expenses
The cumulative Syndicate expenses charged in the 2023 underwriting accounts were made up as follows:
2023 year of
account
$000
Brokerage and commissions
3,421
Other acquisition costs
2,957
Members’ standard personal expenses
116
Total
6,494
All administration expenses are charged to and borne by Syndicate 0033. No brokerage or commissions were borne on direct
business written but arises as a share of Syndicate 0033 through the reinsurance arrangement.
Administrative expenses include fees payable to the auditors and its associates (exclusive of VAT).
2023 year of
account
$000
Auditors' remuneration
Fees payable to the Syndicate’s auditors for the audit of the syndicate underwriting account
52
Fees payable to the Syndicate’s auditors and its associates in respect of other services pursuant to legislation
38
Total
90
8 Debtors arising out of reinsurance operations
2023 year of
account
$000
Due from intermediaries
14,638
9 Other debtors
2023 year of
account
$000
Other
2,044
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
Notes to the accounts
84
94
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
10 Creditors arising out of reinsurance operations
2023 year of
account
$000
Amounts due to intermediaries
1,900
11 Other creditors
2023 year of
account
$000
Amounts owed to fellow subsidiary of managing agent
2,957
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
Notes to the accounts
84
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
95
Seven-year summary
Hiscox Syndicate 6104 underwriting year accounts
Year of account
2017
2018
2019
2020
2021
2022
2023
Syndicate allocated capacity in £000
54,490
55,847
54,971
44,363
23,272
12,676
19,429
Syndicate allocated capacity in $000
72,161
76,354
74,458
55,582
29,667
15,882
26,133
Number of underwriting members
1,389
1,296
1,277
1,080
597
278
366
Net premiums net of brokerage in $000
35,023
37,766
43,349
35,616
20,503
11,373
12,429
Capacity utilised (%)
51
51
59
66
69
72
55
Net capacity utilised (%)
49
49
58
64
69
72
48
Results for an illustrative share of £10,000
2017
2018
2019
2020
2021
2022
2023
$000
$000
$000
$000
$000
$000
$000
Gross premiums
8,716
8,540
10,039
10,232
10,797
11,119
9,136
Net premiums
8,327
8,385
9,883
10,003
10,797
11,119
8,158
Reinsurance to close from an earlier
account
1,530
10,838
13,735
8,675
—
15,021
6,202
Net claims paid
(1,533)
(10,844)
(13,247)
(9,324)
—
(15,012)
(5,770)
Reinsurance to close
(11,125)
(13,095)
(8,013)
(883)
(8,177)
(3,514)
461
Profit/(loss) on exchange
56
(382)
(225)
(251)
(161)
(48)
83
Syndicate operating expenses
(1,900)
(1,623)
(1,993)
(2,633)
(1,987)
(3,512)
(3,283)
Members personal expenses
(66)
(69)
(66)
(66)
(68)
(68)
(60)
Balance on technical account before
investment return
(4,711)
(6,790)
74
5,521
404
3,986
5,791
Investment return
73
113
197
373
113
641
1,168
Profit/(loss) before members’ agent’s fees
(4,638)
(6,677)
271
5,894
517
4,627
6,959
Profit/(loss) before members’ agent’s fees £000
(3,502)
(4,883)
200
4,704
406
3,693
5,174
Notes to the seven-year summary
1.
The seven-year summary has been prepared from the audited accounts of the Syndicate however the table is unaudited.
2.
Personal expenses have been stated at the amount which would be incurred pro-rata by members writing the illustrative premium income in the Syndicate,
irrespective of any minimum charge applicable. Personal expenses include managing agent fees, central fund contributions, Lloyd’s subscriptions and profit
commissions. These figures exclude members’ agents’ fees.
3.
‘Capacity utilised’ represents gross premiums as a percentage of the allocated capacity. ‘Net capacity utilised’ represents net premiums as a percentage of the
allocated capacity. For these calculations, gross and net premiums are net of brokerage.
4.
Profit commission has been calculated in accordance with the applicable agency agreements.
5.
Premium figures and Syndicate operating expenses are gross of brokerage.
Chapter 1
Hiscox Syndicate 0033
annual accounts
2
Chapter 2
Hiscox Syndicate 0033
underwriting year accounts
45
Chapter 3
Hiscox Syndicate 6104
annual accounts
61
Chapter 4
Hiscox Syndicate 6104
underwriting year accounts
84
96
Hiscox Syndicates 33 and 6104 Report and Accounts 2025
Hiscox Syndicates Limited is authorised by the Prudential
Regulation Authority and regulated by the Financial Conduct
Authority and Prudential Regulation Authority.
23277 02/26
Hiscox
22 Bishopsgate
London EC2N 4BQ
United Kingdom
T +44 (0)20 7448 6000
E enquiry@hiscox.com
www.hiscoxgroup.com