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Travelers Syndicate 5000
ANNUAL REPORT AND ACCOUNTS FOR THE YEAR ENDED
CONTENTS
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Syndicate 5000
1
Directors and Administration 2
Strategic report of the Managing Agent 3
Managing Agent’s report 8
Statement of Managing Agent’s Responsibilities 9
Independent Auditor’s Report to the Members’ of Syndicate 5000 10
Statement of profit or loss and other comprehensive income 14
Balance sheet 15
Statement of changes in members’ balances 16
Statement of cash flows 16
Notes to the financial statements 17
DIRECTORS AND ADMINISTRATION
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Syndicate 5000
2
Managing Agent Syndicate
Travelers Syndicate Management Limited (TSML) Syndicate 5000
Directors
A G Coughlan
(Independent Non-Executive Chair)
P R McConnell
(Executive Director)
W A McKee
(Independent Non-Executive Director)
M Olivo
(Non-Executive Director)
G D Somerville
(Independent Non-Executive Director)
M L Wilson
(Executive Director)
M W Woods
(Non-Executive Director)
Company secretary
J Foley
Registered office
30 Fenchurch Street
London
EC3M 3BD
Company number
3207530
Active underwriter
M J Clifford
Bankers
Barclays Bank PLC
Citibank N.A.
Royal Bank of Canada
Investment manager
The Travelers Indemnity Company
Registered auditor
Forvis Mazars LLP
30 Old Bailey
London
EC4M 7AU
STRATEGIC REPORT OF THE MANAGING AGENT
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3
The Directors of Travelers Syndicate Management Limited present their strategic report for the year ended 31
December 2025.
Key financial performance indicators during the year were as follows:
2025
2024
£000
£000
% Change
Gross premiums written
552,200
560,426
(1.5)
Net premiums earned
429,098
401,529
6.9
Total recognised profit for the year
11,933
37,814
(68.4)
Claims
ratio (%)
58.5
52.7
5.8
Expense ratio (%)
44.6
42.9
1.7
Combined ratio (%)
103.1
95.6
7.5
The expense ratio includes net acquisition costs and administrative expenses. All ratios are expressed as a
percentage of net premiums earned.
Principal activities
The principal activity of Syndicate 5000 (the Syndicate) during the year continued to be the transaction of
insurance in its chosen classes, which in 2025 were namely:
•
Marine
•
Aviation
•
Special Risks
•
Energy
•
Property
•
Professional Lines
The Syndicate's business is produced through the Lloyd's broker network and written in the subscription market,
in either a lead or follow capacity.
Review of the business
The result for the 12 months ended 31 December 2025 was a profit of £11.9m (2024: profit of £37.8m) and a
combined ratio of 103.1% (2024: 95.6%). These are partially offset by new business.
Gross premiums written were down year on year by £8.2m (1.5%) mainly driven by changes in rates of exchange
as the book is predominantly written in US Dollars.
The deterioration in the combined ratio reflects the dual effect of a higher expense ratio and the impact of prior
year reserve strengthening.
The expense ratio of 44.6% is 1.7pts higher than the prior year (42.9%) and is driven by the administrative
expense ratio being higher due to lower Net earned premium, coupled with investment in significant technology
upgrades. The claims ratio includes 2.2pts of adverse prior year development driven by large loss activity in
various lines, partially offset by releases in Professional Lines risks classes. This compares to 4.3pts of
favourable prior year development in 2024.
Catastrophe and large losses are higher than the prior year due primarily to the California wildfire losses
however these are partially offset by a favourable attritional loss ratio variance.
Investment return for the year was £31.7m (2024: £20.7m), driven primarily by strong returns and growth in the
fixed income investment portfolio.
On 31 December 2025, the Member’s balances were £270.7m (2024: £251.8m). The Directors consider this
position to be satisfactory.
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Syndicate 5000
4
Going concern
The Directors have assessed the suitability of using the Going Concern assumption in preparing these accounts.
In making this assessment they have looked forward for a period of twelve months from the date that these
accounts are signed. The Syndicate does not have any external debt. The Directors have prepared these
accounts on the going concern basis. In doing so the Directors considered the 2026 business plan and the likely
trading environment over the next twelve months.
The Directors concluded that it remained appropriate to continue to prepare the Syndicate’s financial statements
using the going concern assumption.
Changing climate conditions
The Syndicate follows The Travelers Companies, Inc. in its approach to climate-related risks and opportunities.
The approach is multi-faceted and allows the Syndicate to mitigate exposure to climate-related risks and provide
products and services that both help customers mitigate those risks and support the transition to a lower carbon
economy. In the latter regard, the Syndicate provides insurance coverage to the Renewable Energy sector.
As part of its regular risk management activities, the Managing Agent’s Board of Directors and its Risk
Committee consider changing climate conditions, including changes in frequency and severity of catastrophe
losses and uncertainty surrounding weather volatility and climate-related risk, and the effect on investment
valuations that may occur as part of the transition to a lower carbon economy.
The Syndicate’s underwriting risk appetite is dependent on the ability to understand the property and casualty
risks that it underwrites. Understanding the climate-related effects on insured perils is part of this fundamental
risk evaluation process. Core to this strategy is the incorporation of climate variability into underwriting and
pricing decisions. We are also committed to supporting our clients with meaningful risk management and
insurance capacity to help them transition to a lower carbon future.
Market Risk is managed by employing a thoughtful and responsible investment philosophy that focuses on
appropriate risk-adjusted returns. The investment strategy, approved by the Board of Directors, reflects a long-
term approach to sustainable value creation and requires that Travelers consider environmental, social and
governance (ESG) factors in the investment process to the extent relevant.
Investment report
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Syndicate 5000
5
The Syndicate's investment portfolio is managed by The Travelers Indemnity Company, a subsidiary of The
Travelers Companies, Inc. A change in the invested balances and returns were as follows:
Cash & investment balance
2025
£000
2024
£000
Balance at 1 January
851,807
737,485
Balance at 31 December
923,215
851,807
Investment return profit
2025
£000
2024
£000
Interest and realised gains
31,693
20,684
Unrealised gains
18,322
12,734
Total
50,015
33,418
The credit risk in the portfolio is actively managed. Investment guidelines are designed to mitigate credit risk by
ensuring a diversification of holdings and setting average credit rating targets across the whole portfolio.
The stratification of the portfolio’s credit quality at 31 December was:
2025
2024
AAA
AA
A
BBB
17.1%
53.8%
28.9%
0.2%
31.0%
40.4%
28.1%
0.5%
Total
100.0%
100.0%
Average credit quality
Average duration (years)
AA
2.83
AA
2.32
The Syndicate’s total investment return was a profit of £50.0m (2024: profit of £33.4m). The portfolio was
predominantly comprised of fixed income assets.
The currency mix of the portfolio was:
2025
2024
US dollar
74.8%
73.0%
Sterling
9.4%
13.8%
Euro
10.8%
8.1%
Canadian dollar
5.0%
5.1%
Total
100.0%
100.0%
The total investment returns achieved for the major currencies were as follows:
2025
2024
US dollar
5.9%
4.8%
Sterling
6.4%
3.0%
Euro
2.4%
3.1%
Canadian dollar
3.2%
4.2%
The Investment returns are largely driven by prevailing market yields which have improved in the year. This
applies to all currencies the Syndicate invests in.
The Syndicate does not anticipate any significant changes to the investment strategy in 2026.
Risk review
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Syndicate 5000
6
Principal Risks and Uncertainties
The Board of Directors of Travelers Syndicate Management Limited has overall responsibility for the
establishment and oversight of the Syndicate's Risk Management Framework.
The Board of Directors has established a Board Risk Committee and is responsible for setting the risk appetite
and approving it annually as part of the Syndicate's business planning process. The Board Risk Committee
meets regularly to provide oversight of key risks and issues and to oversee performance against risk appetite.
Reporting to the Board Risk Committee, the Managing Agent has established an Executive Risk Committee
which meets regularly to review and update key risks and issues arising from the risk register and to monitor
performance against risk appetite using a series of metrics.
The principal risks and uncertainties facing the Syndicate are set out below.
Insurance Risk
Insurance risk relates to underwriting and claims management and the risk that arises from the inherent
uncertainties as to the occurrence, amount, and timing of insurance liabilities, and includes catastrophe risk and
reserve risk.
The Managing Agent manages insurance risk by setting an appetite annually through the business planning
process, which sets down the Syndicate's targets for underwriting classes, underwriting volumes, pricing
sufficiency, line sizes and retentions by class of business. The Managing Agent subsequently monitors
performance against the business plan throughout the year. The Syndicate uses catastrophe modelling software
to model probabilities of loss from catastrophe exposed business.
Reserve adequacy is monitored through quarterly internal actuarial review. The Underwriting Committee
oversees underwriting and catastrophe risks, and the Finance Committee oversees reserving risk.
One aspect of underwriting risk is the risk of changing climate conditions. This is discussed further in the
Strategic report of the Managing Agent.
Credit risk
The major sources of credit risk arise from the risk of default by one or more of the Syndicate's reinsurers or
from one or more of the Syndicate's investment counterparties. The Syndicate operates a rigorous policy for
the selection of reinsurers and managing the concentration of the ceded exposure. The Syndicate has a
conservative appetite to credit risk from investment counterparties and maintains a high-quality investment
portfolio with an average credit rating of AA. The Finance Committee monitors and manages the Syndicate's
exposure to credit risk.
Market risk
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Syndicate 5000
7
The primary source of market risk is the risk of adverse movements in the value of assets due to movements in
interest rates, currency rates and other market factors. Market risk exposures are monitored through the Finance
Committee.
A sensitivity analysis can be found on page 29 of these accounts.
Operational risk
The primary source of operational risk is the failure of people, processes, or systems. These risks are managed
through well documented policies and procedures, sound internal control processes and business continuity
management procedures. The Executive Risk Committee oversees this risk.
Regulatory risk
Regulatory risk comprises the failure to comply with relevant regulations and laws. The Executive Risk
Committee oversees this risk.
Conduct risk
Conduct risk is the risk that the Syndicate fails to pay due regard to the interest of its customers or fails to always
treat them fairly. The Executive Risk Committee oversees this risk.
Approved by the Board of Travelers Syndicate Management Limited.
M L Wilson
Chief Executive Officer
16 February 2026
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Syndicate 5000
8
MANAGING AGENT’S REPORT
The Directors of the Managing Agent present their report for Syndicate 5000 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
and applicable United Kingdom Accounting Standards, including Financial Reporting Standard 102: The
Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (‘FRS102’) and Financial
Reporting Standard 103: Insurance Contracts (‘FRS103’).
The Managing Agent has agreed with the Syndicate's members to take advantage of the dispensation available
and will not be producing separate underwriting year accounts for the Syndicate.
Results
The result for the year ended 31 December 2025 is a profit of £11.9m (2024: profit of £37.8m).
Principal activities
The principal activities of the Syndicate are described within the Strategic report of the Managing Agent.
Business review
An analysis of the performance of the Syndicate and likely future developments in the business are described
within the Strategic report of the Managing Agent. There have been no notable events affecting the Syndicate
which have occurred since the end of the financial year.
Directors' interests
All the Directors set out at the beginning of these accounts served throughout the year and to the date of this
report.
No director participated in the Syndicate during the period under review.
The Directors benefited from qualifying third-party indemnity provisions.
Active underwriter
Mark Clifford served as the Active Underwriter for the period under review.
Disclosure of information to the auditor
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
auditor is 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 auditor is aware of that
information.
Auditor
Pursuant to Section 14(2) of Schedule 1 of the Insurance Accounts Directive (Lloyd's Syndicate and Aggregate
Accounts) Regulations 2008, the auditor will be deemed to be reappointed, and Forvis Mazars LLP will therefore
continue in office.
On behalf of the Board
Jennifer Foley
Company Secretary
16 February 2026
STATEMENT OF MANAGING AGENT'S RESPONSIBILITIES
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Syndicate 5000
9
The Directors of the Managing Agent are responsible for preparing the Syndicate annual accounts in
accordance with applicable law and regulations.
The Insurance Accounts Directive (Lloyd's Syndicate and Aggregate Accounts) Regulations 2008 requires the
Directors of the Managing Agent to prepare their Syndicate's annual accounts for each financial year. Under
that law they have elected to prepare the annual accounts in accordance with UK Accounting Standards and
applicable law (UK Generally Accepted Accounting Practice), including FRS 102, The Financial Reporting
Standard applicable in the UK and Republic of Ireland and Financial Reporting Standard 103 Insurance
Contracts (FRS 103).
Under Insurance Accounts Directive (Lloyd's Syndicate and Aggregate Accounts) Regulations 2008 the
Directors of the Managing Agent must not approve the annual accounts unless they are satisfied that they give
a true and fair view of the state of affairs of the Syndicate and of the profit or loss of the Syndicate for that period.
In preparing these annual accounts, the Directors of the Managing Agent are required to:
•
select suitable accounting policies and then apply them consistently;
•
make judgments and estimates that are reasonable and prudent;
•
state whether applicable UK Accounting Standards have been followed, subject to any material departures
disclosed and explained in the annual accounts;
•
assess the Syndicate's ability to continue as a going concern, disclosing, as applicable, matters related to
going concern; and
•
use the going concern basis of accounting unless they either intend to cease trading or have no realistic
alternative but to do so.
The Directors of the Managing Agent are responsible for keeping adequate accounting records that are sufficient
to show and explain the Syndicate's transactions and disclose with reasonable accuracy at any time the financial
position of the Syndicate and enable them to ensure that the annual accounts comply with the Insurance
Accounts Directive (Lloyd's Syndicate and Aggregate Accounts) Regulations 2008. They are responsible for
such internal control as they determine is necessary to enable the preparation of annual accounts that are free
from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps
as are reasonably open to them to safeguard the assets of the company and to prevent and detect fraud and
other irregularities.
The Directors of the Managing Agent are responsible for the maintenance and integrity of the Syndicate and
financial information included on the Syndicate's website. Legislation in the UK governing the preparation and
dissemination of annual accounts may differ from legislation in other jurisdictions.
On behalf of the Board
Jennifer Foley
Company Secretary
16 February 2026
INDEPENDENT AUDITOR’S
REPORT
TO
THE
MEMBERS’
OF
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Syndicate 5000
10
SYNDICATE 5000
We have audited the syndicate annual accounts of Syndicate 5000 (the “syndicate”) for the year ended 31
December 2025 which comprise the statement of profit and loss and other comprehensive income, balance
sheet, statement of changes in members’ balances and the statement of cash flows and notes to the syndicate
annual accounts, including a summary of significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United
Kingdom Accounting Standards, including The Syndicate accounts instructions Version 3.1 as modified by the
Frequently Asked Questions Version 1.1 issued by Lloyd’s (the “Lloyd’s Syndicate Accounts Instructions”), FRS
102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” and FRS 103 “Insurance
Contracts” (“United Kingdom Generally Accepted Accounting Practice”).
In our opinion the 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
for the year then ended;
•
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting
Practice; 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 Lloyd’s Syndicate
Accounts Instructions.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”), The
Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008, the Lloyd’s
Syndicate Accounts Instructions and other applicable law. Our responsibilities under those standards are further
described in the “Auditor’s responsibilities for the audit of the syndicate annual accounts” section of our report.
We are independent of the syndicate in accordance with the ethical requirements that are relevant to our audit
of the syndicate annual accounts in the UK, including the FRC’s Ethical Standard as applied to other entities of
public interest, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Other matter – iXBRL tagging
In forming our opinion on the syndicate annual accounts, which is not modified, 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 the Lloyd’s
Syndicate Accounts Instructions.
Conclusions relating to going concern
In auditing the syndicate annual accounts, we have concluded that the directors of the Managing Agent’s use
of the going concern basis of accounting in the preparation of the syndicate annual accounts is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or
conditions that, individually or collectively, may cast significant doubt on the syndicate's ability to continue as a
going concern for a period of at least twelve months from when the syndicate annual accounts are authorised
for issue.
Our responsibilities and the responsibilities of the Managing Agent with respect to going concern are described
in the relevant sections of this report.
Other information
The other information comprises the information included in the Syndicate Annual Report and Accounts, other
than the syndicate annual accounts and our auditor’s report thereon. The Managing Agent is responsible for the
other information. Our opinion on the syndicate annual accounts does not cover the
INDEPENDENT AUDITOR’S
REPORT
TO
THE
MEMBERS’
OF
SYNDICATE 5000 (continued)
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Syndicate 5000
11
other information and, except to the extent otherwise explicitly stated in our report, we do not express any form
of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is
materially inconsistent with the syndicate annual accounts or our knowledge obtained in the course of the audit
or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material
misstatements, we are required to determine whether this gives rise to a material misstatement in the syndicate
annual accounts. 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 in this regard.
Opinions on other matters prescribed by The Insurance Accounts Directive (Lloyd’s Syndicate and
Aggregate Accounts) Regulations 2008
In our opinion, based on the work undertaken in the course of the audit:
•
the information given in the Managing Agent’s Report for the financial year for which the syndicate
annual accounts are prepared is consistent with the syndicate annual accounts; and
•
the Managing Agent’s Report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In light of the knowledge and understanding of the syndicate and its environment obtained in the course of the
audit, we have not identified material misstatements in the Managing Agent’s Report.
We have nothing to report in respect of the following matters in relation to which The Insurance Accounts
Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 requires us to report to you, if in our
opinion:
•
the Managing Agent in respect of the syndicate has not kept adequate accounting records; or
•
the syndicate annual accounts are not in agreement with the accounting records; or
•
certain disclosures of the Managing Agent’s remuneration specified by law are not made; or
•
we have not received all the information and explanations we require for our audit.
Responsibilities of the Managing Agent
As explained more fully in the Statement of Managing Agent’s Responsibilities set out on page 9, the Managing
Agent is responsible for the preparation of the syndicate annual accounts and for being satisfied that they give
a true and fair view, and for such internal control as the Managing Agent determines is necessary to enable the
preparation of the syndicate annual accounts that are free from material misstatement, whether due to fraud or
error.
In preparing the syndicate annual accounts, the 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 the Managing Agent either intends for the syndicate to cease
operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the syndicate annual accounts
Our objectives are to obtain reasonable assurance about whether the syndicate annual accounts as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted
in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of the syndicate annual accounts.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
INDEPENDENT AUDITOR’S
REPORT
TO
THE
MEMBERS’
OF
SYNDICATE 5000 (continued)
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Syndicate 5000
12
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.
Based on our understanding of the syndicate and its industry, we considered that non-compliance with the
following laws and regulations might have a material effect on the syndicate annual accounts: Data Protection
Act, GDPR, proceeds of crime and anti-money laundering, Health and Safety act, Bribery Act 2010, permissions
and supervisory requirements of the Prudential Regulation Authority (‘PRA’) and the Financial Conduct Authority
(“FCA”), and regulations set by the Council of Lloyd’s.
To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing
the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited
to:
•
Gaining an understanding of the legal and regulatory framework applicable to the syndicate and the
industry in which it operates, and considering the risk of acts by the syndicate which were contrary to
the applicable laws and regulations, including fraud;
•
Inquiring of directors and management of the Managing Agent and the syndicate’s management as to
whether the syndicate is in compliance with laws and regulations, and discussing their policies and
procedures regarding compliance with laws and regulations;
•
Inspecting correspondence, if any, with relevant licensing or regulatory authorities including the PRA,
FCA and the Council of Lloyd’s;
•
Reviewing minutes of meetings of the Managing Agent in the year and up to the date of this report; and
•
Discussing amongst the engagement team the laws and regulations listed above, and remaining alert
to any indications of non-compliance.
We also considered those laws and regulations that have a direct effect on the preparation of the syndicate
annual accounts such as United Kingdom Generally Accepted Accounting Practice, The Insurance Accounts
Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 and the Lloyd’s Syndicate Accounts
Instructions.
In addition, we evaluated the directors’ and management of the Managing Agent’s and the syndicate
management’s incentives and opportunities for fraudulent manipulation of the syndicate annual accounts,
including the risk of management override of controls and determined that the principal risks related to posting
manual journal entries to manipulate financial performance, management bias through judgements and
assumptions in significant accounting estimates that involve more complex assumptions and subjective inputs,
in particular in relation to valuation of the provisions for the settlement of future claims, revenue recognition
(which we pinpointed to the valuation of binder business and pipeline business), and significant one-off or
unusual transactions. Our audit procedures in relation to fraud included but were not limited to:
•
Making enquiries of the directors and management of the Managing Agent and syndicate management
on whether they had knowledge of any actual, suspected or alleged fraud;
•
Gaining an understanding of the internal controls established to mitigate risks related to fraud;
•
Discussing amongst the engagement team the risks of fraud;
•
Addressing the risks of fraud through management override of controls by performing journal entry
testing;
•
Reviewing the accounting estimate in relation to valuation of insurance liabilities for evidence of
management bias and performing procedures to respond to the fraud risk in revenue recognition;
•
Designing audit procedures to incorporate unpredictability around nature, timing or extent of our testing;
and
•
Considering significant transactions outside the normal course of business. Our approach included
reviewing Board minutes, review of correspondence with the PRA, FCA and Lloyd’s, and substantively
testing the transactions and related disclosures where considered material.
INDEPENDENT AUDITOR’S
REPORT
TO
THE
MEMBERS’
OF
SYNDICATE 5000 (continued)
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Syndicate 5000
13
The primary responsibility for the prevention and detection of irregularities, including fraud, rests with both those
charged with governance and management. As with any audit, there remained a risk of non-detection of
irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override
of internal controls.
A further description of our responsibilities is available on the Financial Reporting Council’s website at
www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of the audit report
This report is made solely to the syndicate’s members as a body in accordance with The Insurance Accounts
Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008. Our audit work has been undertaken
so that we might state to the syndicate’s members those matters we are required to state to them in an auditor’s
report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility
to anyone other than the syndicate and the syndicate’s members, as a body, for our audit work, for this report,
or for the opinions we have formed.
Andrew Heffron (Senior Statutory Auditor)
for and on behalf of Forvis Mazars LLP
Chartered Accountants and Statutory Auditor
30 Old Bailey
London
EC4M 7AU
Date: 16 February 2026
STATEMENT OF PROFIT OR LOSS & OTHER COMPREHENSIVE
INCOME:
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Syndicate 5000
14
Technical
account
Note
2025
£000
2024
£000
Gross premiums written
5
Outwards reinsurance premiums
(112,357 )
(88,033 )
Net premiums written
Change in provision for unearned premiums:
17
Gross amount
(25,042 )
(75,887 )
Reinsurers’ share
Net change in provision for unearned premiums
(10,745 )
(70,864 )
Earned
premiums, net of reinsurance 429,098
Allocated
investment return transferred from the non-technical account 9 22,873
Claims paid:
17
Gross claims amount
(210,614 )
(205,077 )
Reinsurers' share
Net claims paid
(186,407 )
(166,949 )
Change in the provision for claims:
17
Gross claims amount
(89,777 )
(34,140 )
Reinsurers’ share
(10,175 )
Net change in provisions for claims
(64,440 )
(44,315 )
Claims incurred, net of reinsurance
(250,847 )
(211,264 )
Net operating expenses
6
(191,353 )
(172,421 )
Other technical charges, net of reinsurance
Balance on the technical account for general business
Non-Technical account
Note
2025
£000
2024
£000
Balance on the technical account for general business
Investment income
9
Realised gains/(losses) on investments
9
(2,416 )
Investment expenses and charges
9
(578 )
(506 )
Total investment return
Allocated investment return transferred to the general business technical
account
9 (22,873 )
(16,119 )
Loss on foreign exchange
(6,658 )
(714 )
Profit for the financial period
Other comprehensive income:
Currency translation (loss)/gain
(11,174 )
Unrealised gains on available for sale assets
Total comprehensive income for the period
The notes from page 17 to 39 form an integral part of these annual accounts.
BALANCE SHEET:
travelers.com
Syndicate 5000
15
Assets
Note
2025
£000
2024
£000
Investments
Financial investments
11
Deposits with ceding undertakings
Reinsurers’ share of technical provisions
Provision for unearned premiums
Claims outstanding
17
Debtors
Debtors arising out of direct insurance operations
12
Debtors arising out of reinsurance operations
13
Other debtors
14
Other assets
Cash at bank and in hand
Other
Prepayments and accrued income
Accrued interest and rent
Deferred acquisition costs
15
Other prepayments and accrued income
Total assets
Liabilities
Note
2025
£000
2024
£000
Capital and reserves
Members’ balance
Technical provisions
Provision for unearned premiums
Claims outstanding
17
Creditors
Creditors arising out of direct insurance Operations
18
Creditors arising out of reinsurance operations
19
Other creditors
20
Accruals and deferred income
Total liabilities
Total liabilities, capital and reserves
The notes from page 17 to 39 form an integral part of these annual accounts.
The Syndicate annual accounts on pages 14 to 39 were approved by the board of Travelers Syndicate
Management Limited and were signed on its behalf by.
P R McConnell
Director
16 February 2026
STATEMENT OF CHANGES IN MEMBERS’ BALANCES
travelers.com
Syndicate 5000
16
2025
£000
2024
£000
Members’ balances brought forward at 1 January
Total comprehensive income for the year
Net movement on funds in syndicate
(117 )
Other
(61 )
(134 )
Members’ balances carried forward at 31 December
STATEMENT OF CASH FLOWS
Note
2025
£000
2024
£000
Cash flows from operating activities
Profit for the financial year
Increase in gross technical provisions
(Increase)/decrease in reinsurers’ share of gross technical provisions
(31,830 )
Decrease/(increase) in debtors
(53,654 )
Decrease in creditors
(2,000 )
Movement in other assets/liabilities
(1,454 )
(120 )
Investment return
(31,693 )
(20,684 )
Other
(2,960 )
Net cash flows from operating activities
Cash flows from investing activities
Purchase of debt instruments
(382,241 )
(466,142 )
Sale of debt instruments
Investment income received
Other
(27 )
Net cash flows from investing activities
(58,370 )
(81,940 )
Cash flows from financing activities
Distribution profit
(78,067 )
(43,064 )
Funds In Syndicate released to members
Net cash flows from financing activities
Net decrease in cash and cash equivalents
(3,159 )
Cash and cash equivalents at the beginning of the year
Foreign exchange on cash and cash equivalents
(159 )
(69 )
Cash and cash equivalents at the end of the year
21
NOTES TO THE FINANCIAL STATEMENTS
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Syndicate 5000
17
1
BASIS OF PREPARATION
Syndicate 5000 (“The Syndicate”) is supported by two corporate members’ of the Society of Lloyd’s and
underwrites insurance business in the London market. The Syndicate’s Managing Agent is Travelers Syndicate
Management Limited. The registered address of the Syndicate’s Managing Agent is 30 Fenchurch Street,
London, EC3M 3BD.
The financial statements have been prepared in accordance with the Insurance Accounts Directive (Lloyd’s
Syndicate and Aggregate Accounts) Regulations 2008 and applicable Accounting Standards in the United
Kingdom and the Republic of Ireland, including Financial Reporting Standard 102 (FRS 102). FRS 102 requires
the application of Financial Reporting Standard 103 (FRS 103) in relation to insurance contracts.
These annual accounts are prepared under the historical cost convention, as modified by the recognition of
certain financial assets and liabilities measured at fair value.
The financial statements are presented in Pound Sterling (GBP), which is the Syndicate’s presentational
currency. The functional currency of the Syndicate is US Dollars (USD). The Syndicate has chosen to have a
presentational currency of sterling, which is different to its functional currency of dollars, as its regulatory
reporting to Lloyd’s is required in sterling and this allows for consistency between the Syndicate’s Report and
Accounts and its regulatory reporting to Lloyd’s. All amounts have been rounded to the nearest thousand, unless
otherwise indicated.
Going concern
The Directors have assessed the suitability of using the Going Concern assumption in preparing these accounts.
In making this assessment they have looked forward for a period of twelve months from the date that these
accounts are signed. The Syndicate does not have any external debt. The Directors have prepared these
accounts on the going concern basis. In doing so the Directors considered the 2026 business plan, the likely
trading environment over the next twelve months.
The Directors concluded that it remained appropriate to continue to prepare the Syndicate’s financial statements
using the going concern assumption.
Restatement of comparative information
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 restated to ensure consistency with
current year presentation and compliance with the Lloyd's Syndicate Accounts Instructions.
2
USE OF CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
The preparation of the annual accounts requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the Syndicate’s accounting policies. Key
sources of estimation uncertainty at the reporting date, which have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities within the next financial year. In respect of those
assets and liabilities. The areas involving a higher degree of judgement or complexity, or areas where
assumptions and estimates are significant to the annual accounts are those listed below.
Incurred but not reported claims (IBNR)
The estimation of claims IBNR is generally subject to a greater degree of uncertainty than the estimation of the
cost of settling claims already notified to the Syndicate, where more information about the claim event is
generally available. In calculating the estimated cost of unpaid claims, the Syndicate uses a variety of estimation
techniques, generally based upon statistical analyses of historical experience, which assumes that the
development pattern of the current claims will be consistent with experience.
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Incurred but not reported claims (IBNR) (continued)
Allowance is made, however, for changes or uncertainties which may create distortions in the underlying
statistics, or which might cause the cost of unsettled claims to increase or reduce when compared with the cost
of previously settled claims including:
•
the effect of large losses;
•
changes in processes which might accelerate or slow down the development and/or recording of paid or
incurred claims compared with the statistics from previous periods;
•
changes in the legal environment;
•
the effects of inflation;
•
changes in the mix of business;
•
movements in industry benchmarks.
A component of these estimation techniques is the estimation of the cost of notified but not paid claims. In
estimating the cost of these claims, regard is given to the claim circumstance as reported, any information
available from loss adjusters and information on the cost of settling claims with similar characteristics in previous
periods. Large claims affecting each relevant business class are generally assessed separately, either
measured on a case-by-case basis or projected separately, in order to allow for the possible distorting effect of
the development and incidence of these large claims. Where possible, multiple techniques are adopted in order
to estimate the required level of provisions. This assists in giving greater understanding of the trends inherent
in the data being projected. The projections given by the various methodologies also assist in setting the range
of possible outcomes. The most appropriate estimation technique is selected considering the characteristics of
the business class and the extent of the development of each accident year. The directors consider that the
provisions for gross claims and related reinsurance recoveries are fairly stated on the basis of the information
currently available to them. However, the ultimate liability will vary as a result of subsequent information and
events, and this may result in significant adjustments to the amounts provided. Adjustments to the amounts of
claims provisions established in prior years are reflected in the financial statements in the period in which the
adjustments are made. The methods used, and the estimates made, are reviewed regularly. Provisions are
calculated gross of any reinsurance recoveries. A separate estimate is made of the amounts that will be
recoverable from reinsurers based upon the gross provisions and having due regard to collectability. An
estimate of the future cost of indirect claims handling is calculated as a percentage of the claims reserves held
at the balance sheet date.
The gross IBNR held at 31 December 2025 was £427.6m (2024: £382.8m). This is disclosed in note 17 to these
accounts.
A sensitivity of the results and members balances to a 5% increase or decrease in net claims liabilities is
disclosed on page 24 of these accounts.
Premiums written
Written premium is reported according to management estimation of when risks will be incepting. An estimate
of premiums written during the year that have not yet been booked by the financial year-end ‘pipeline premiums’
is made on a risk-by-risk basis. The pipeline premium is booked as written, and an assessment is made of the
related unearned premium provision and an estimate of claims incurred but not reported in respect of the earned
element. For delegated authority business the underwriters estimate how much business will attach to a facility
based on information provided by the broker and using their experience with reference to the trading conditions
of the market. This estimate is updated on a regular basis. It is assumed that risks attaching to the master facility
incept evenly across the period of the facility and therefore only the proportion of risks which have attached to
the master facility by the year-end date are reported within written premium in these financial statements.
The premium debtor’s receivable held at 31 December 2025 was £172.2m (2024: £169.9m). This is disclosed
in note 12 of these accounts.
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3
SIGNIFICANT ACCOUNTING POLICIES
The following principal accounting policies have been applied consistently in dealing with items which are
considered material in relation to the Syndicate’s financial statements.
Premiums written
Gross premiums written comprise direct insurance contracts and inwards reinsurance contracts incepting during
the financial year. Written premiums are disclosed gross of commission payable to intermediaries and exclude
taxes and duties levied on these premiums.
Written premium is reported according to management estimation of when risks will be attaching. An estimate
of premiums written during the year that have not yet been booked by the financial year-end, ‘pipeline
premiums’, is made on a risk-by-risk basis. The pipeline premium is booked as written and an assessment is
made of the related unearned premium provision.
For delegated authority business underwriters estimate how much business will attach to a facility based on
information provided by the broker and using their experience with reference to the trading conditions of the
market. This estimate is updated on a regular basis. It is assumed that risks attaching to the master facility
incept evenly across the period of the facility and therefore only the proportion of risks which have attached to
the master facility by the year-end date are reported within written premium in these financial statements.
Unearned premiums
For open market risks premiums are assumed to earn evenly over the duration of the policy. For facilities, on
the whole the underlying risks are assumed to attach evenly through the policy period of the facility and period
of the underlying risk.
No adjustments are made for seasonal exposures. A bespoke long tail earning pattern is used in proportion to
the release of risk for the Transactional Liability line of business.
Outward reinsurance premiums
Outwards reinsurance premiums are accounted for in the accounting period in which the underlying reinsurance
treaty or facultative contract incepts.
Reinstatement premiums arise when a loss has been incurred that affects our reinsurances and there is a clause
in the underlying reinsurance policy which requires the reinstatement of the policy with the payment of a further
premium.
Reinstatement premiums are recognised as incurred in full at the date of the event giving rise to the
reinstatement.
Claims paid, claims incurred, claims provisions
Paid claims represent all claims paid during the year and include claims handling expenses. Claims incurred
comprise paid claims and changes in the provisions for outstanding claims, including provisions for claims
incurred but not reported (IBNR) and related expenses, together with any adjustments to claims from previous
years.
The provision for claims outstanding is assessed on an individual case basis for reported claims and is based
on the estimated ultimate cost of all claims notified but not settled by the balance sheet date, together with the
provision for related claims handling costs. The provision also includes the estimated cost of claims incurred by
the balance sheet date but not reported until after the year end (IBNR), based on statistical methods.
These methods generally involve projecting from past experience the development of claims over time to form
a view of the likely ultimate claims to be experienced from more recent underwriting, having regard to variations
in the business accepted and the underlying terms and conditions. For the most recent years, where a high
degree of volatility arises from projections, estimates may be based in part on output from rating and other
models of the business accepted, and assessments of underwriting conditions, together with a contract-by-
contract assessment of problematical areas and major catastrophes that do not lend themselves to projection-
based methods.
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20
Claims paid, claims incurred, claims provisions (continued)
The two most critical assumptions as regards claims provisions are that the past is a reasonable predictor of
the likely level of claims development in the future and that the rating and other models used for current business
are fair reflections of the likely level and cost of ultimate claims to be incurred.
The reinsurers’ share of provisions for claims is based on the amounts of outstanding claims and projections for
IBNR, net of estimated irrecoverable amounts, having regard to the reinsurance programme in place for the
class of business, the claims experience for the year and the current security rating of the reinsurance
companies involved. A number of statistical methods are used to assist in making these estimates.
Reinsurance assets are assessed for impairment at each balance sheet date. A reinsurance asset is deemed
impaired if there is objective evidence, as a result of an event that occurred after its initial recognition, that the
Syndicate may not recover all amounts due, and that event has a reliably measurable effect on the amount that
the Syndicate will receive from the reinsurer. Impairment losses are recognised in profit or loss in the period in
which the impairment loss is recognised.
In arriving at the level of claims provisions a margin is applied over and above the actuarial best estimate, to
reduce the likelihood of adverse run-off deviation.
The directors consider that the provisions for gross claims and related reinsurance recoveries are fairly stated
on the basis of the information currently available to them. However, the ultimate liability will vary as a result of
subsequent information and events, and this may result in significant adjustments to the amounts provided.
Adjustments to the amounts of claims provisions established in prior years are reflected in the financial
statements for the period in which the adjustments are made. The methods used, and the estimates made, are
reviewed regularly.
Unexpired risks provision
A provision for unexpired risks is made where claims and related expenses arising after the end of the financial
period, in respect of contracts concluded before that date, are expected to exceed the unearned premiums after
the deduction of any deferred acquisition costs. The provision for unexpired risks is calculated at a reporting
year of account level which is the level the contracts are managed together, after taking into account the future
investment return on investments held to back the unearned premiums.
If an unexpired risk provision is required, it will be disclosed as a component of technical provisions. The
calculation is based upon statistical analyses of historical experience, which assumes that the development
pattern of premiums and claims will be similar to past experience. However, given the uncertainty in establishing
a provision for unexpired risks, it is likely that the final outcome will prove to be different from the original liability
established.
Acquisition costs
Acquisition costs are comprised of commission and fees paid to brokers and coverholders. They are deferred
to the extent that they are attributable to premiums unearned at the balance sheet date, with the exception of
contingent profit commissions that are accrued in line with earned premium using actuarial estimates. Where
proportional reinsurances are bought the relevant share of gross commission is treated as commissions ceded
to reinsurers.
Foreign currencies
Transactions in foreign currencies are translated to the functional currency using exchange rates at the date of
transactions. The Syndicate’s monetary assets and liabilities denominated in foreign currencies are translated
into the functional currency at the rates of exchange at the balance sheet date. For the purposes 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 into the functional currency are included in the
non-technical account.
Differences arising from the conversion of the functional to the presentational currency are included in the
statement of comprehensive income, with all profit and loss balances translated at average rate, and all assets
and liabilities translated at closing rates.
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Syndicate 5000
21
Financial assets and liabilities
The Syndicate chose to apply recognition and measurement provisions of IAS 39 Financial Instruments:
Recognition and Measurement (as adopted in the relevant jurisdiction), the disclosure requirements of Sections
11 and 12 and the presentation requirements of paragraphs 11.38A and 12.25W.
Classification
The accounting classification of financial assets and liabilities determines the way in which they are measured
and changes in those values presented in the statement of profit and loss or the statement of comprehensive
income. Financial assets and liabilities are classified on their initial recognition. Subsequent reclassifications are
permitted only in restricted circumstances.
Debt and other fixed-income securities are designated as available for sale and initially recognised at cost which
equates to fair value at initial recognition. After initial measurement, these assets are subsequently measured
at fair value. Interest earned whilst holding available for sale financial assets is reported as interest income.
Other fair value changes are recognised in other comprehensive income.
If an available-for-sale investment is sold or impaired, the net cumulative gain or loss accumulated in other
comprehensive income is reclassified to profit or loss. Impairment losses on available-for-sale financial assets
are recognised by reclassifying the losses accumulated in other comprehensive income to profit or loss. The
net cumulative loss that is reclassified from other comprehensive income to profit or loss is the difference
between the acquisition cost, net of any principal repayment, and the current fair value, less any impairment
loss recognised previously in profit or loss.
If, in a subsequent period, the fair value of an impaired available-for-sale debt security increases and the
increase can be related objectively to an event occurring after the impairment loss was recognised, the
impairment loss is reversed through profit or loss. Otherwise, it is reversed through the statement of
comprehensive income.
Deposits with credit institutions, overseas deposits, debtors, and accrued interest are classified as loans and
receivables.
When loans and receivables are recognised initially, they are measured at the transaction price that
approximates fair value. After initial recognition loans and receivables are measured at amortised cost using
effective interest rate.
Recognition
Financial instruments are recognised when the Syndicate becomes a party to the contractual provisions of the
instrument. Financial instruments are derecognised if the Syndicate’s contractual rights to the cash flows from
the financial instruments expire or the Syndicate transfers the financial asset to another party without retaining
control of substantially all risks and rewards of the asset. A financial liability is derecognised when the
Syndicate’s contractual obligations are discharged, cancelled, or expire.
Identification & measurement of impairment
The Syndicate conducts a periodic review to identify invested assets that are impaired. Some of the factors
considered in identifying assets that are impaired include:
•
whether the Syndicate intends to sell the investment or whether it is more likely than not that the Syndicate
will be required to sell the investment prior to an anticipated recovery in value;
•
the likelihood of the recoveries in full of the principal and interest;
•
the financial condition, near-term and long-term prospects for the issuer, including the relevant industry
conditions and trends, and implications of rating agency actions and offering prices.
Financial assets are impaired when objective evidence demonstrates that a loss event has occurred after initial
recognition of an asset, and that the loss event has an effect of future cash flows on the asset that can be
estimated reliably. All impairment losses are recognised in full in the profit and loss account.
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Syndicate 5000
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Off-setting
Financial assets and liabilities are set off and the net amount presented in the balance sheet when, and only
when, the Syndicate has a legal right to set off the amounts and intends either to settle on a net basis or to
realise the asset and settle the liability simultaneously.
Investment return
Investment return comprises investment income, and realised investment gains and losses, net of investment
expenses and charges.
Realised gains and losses on investments are calculated as the difference between sale proceeds and the
purchase price.
Interest income is recognised on an accruals basis in the profit and loss account.
Investment return is initially recorded in the non-technical account. The investment return relating to the profits
on closed years retained within the Syndicate is allocated to the non-technical account. The balance of the
investment return is allocated to the technical account.
Movements in unrealised gains and losses on investments are reported in the statement of comprehensive
income. They represent the difference between their valuation at the balance sheet date and their purchase
price or, if they have been previously valued, their valuation at the last balance sheet date, as well as the
reversal of previously recognised unrealised gains and losses in respect of investments disposed of in the
current period.
Overseas deposits
Overseas deposits are stated at market value at the balance sheet date. US Situs trust funds are classified as
investments.
Cash and cash equivalents
Cash and cash equivalents comprise cash balances and call deposits with maturities of three months or less
that are subject to insignificant risk of changes in valuation and are used by the Syndicate in the management
of its short-term commitments.
Taxation
Under Schedule 19 of the Finance Act of 1993 Managing Agents are not required to deduct basic income tax
from trading income, including capital appreciation, of syndicates.
It remains the responsibility of members to agree their corporation tax liabilities with HM Revenue & Customs.
No provision has been made for any United States Federal Income Tax or Canadian Federal Income Tax
payable on underwriting results and investment income. The Syndicate is required to fund on account
assessments of US Dollar and Canadian Dollar source income and these amounts are then recovered by
reimbursements from the Member Services Unit. 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.
Syndicate operating expenses
Where expenses are incurred by the Managing Agent, or on behalf of the Managing Agent, on the administration
of the managed Syndicate, these expenses are apportioned using various methods depending on the type of
expense. Expenses which are incurred jointly for the Managing Agent and managed Syndicate are apportioned
between the Managing Agent and the Syndicate depending on the amount of work performed, resources used,
and the volume of business transacted.
Pension costs
Travelers Management Limited, a service company within the group, operates a group personal pension plan.
Pension contributions relating to syndicate staff are charged to the Syndicate and included within net operating
expenses or, where in respect of claims handling staff, as claims handling costs within gross claims paid.
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Syndicate 5000
23
Contingencies and commitments
Contingent liabilities arise as a result of past events when either it is not probable that there will be an outflow
of resources or that the amount cannot be reliably measured at the reporting date or when the existence will be
confirmed by the occurrence or non-occurrence of uncertain future events not wholly within the Syndicate’s
control. Contingent liabilities are disclosed in the annual accounts unless the probability of an outflow of
resources is remote.
Debtors and creditors arising out of direct and reinsurance operations
Debtors and creditors arising out of direct and reinsurance operations are initially recognised at transaction price
and are subsequently carried at the recoverable amount. The carrying value is reviewed for impairment
whenever events or circumstances indicate that the carrying amount is greater than the recoverable amount,
with the impairment adjustment recorded in the profit and loss account. Debtors arising out of direct insurance
and reinsurance operations are stated net of specific provisions against doubtful debts which are made on the
basis of reviews conducted by management.
Other debtors and creditors
Any other debtors and creditors are recognised initially at transaction price and subsequently carried at the
recoverable amount. The carrying value of other debtors is reviewed for impairment whenever events or
circumstances indicate that the carrying amount is greater than the recoverable amount, with the impairment
adjustment recorded in the profit and loss account. All other debtors and creditors are due within one year,
unless otherwise stated.
4
RISK AND CAPITAL MANAGEMENT
Introduction and overview
This note presents information about the nature and extent of insurance and financial risks to which the
Syndicate is exposed and the Managing Agent’s objectives, policies and processes for measuring and managing
these risks and for managing the Syndicate’s capital.
Risk management framework
As described in the Managing Agent’s report, the Board of Directors has overall responsibility for the
establishment and oversight of the Syndicate’s risk management framework.
Risk management policies are established to identify and analyse the risks faced by the Syndicate, to set
appropriate risk limits and controls, and to monitor risks and adherence to limits.
INSURANCE RISK
Management of insurance risk
A key component of the management of underwriting risk for the Syndicate is a disciplined underwriting strategy
that is focused on writing quality business and not writing for volume. Product pricing is designed to incorporate
appropriate premiums for each type of assumed risk. The underwriting strategy includes underwriting limits on
the Syndicate’s total exposure to specific risks and classes of business, together with limits on geographical
and industry exposures.
The aim is to ensure that a well-diversified book is maintained with no over-exposure in any one geographical
region, class or industry. Insurance contracts can contain a number of features which help to manage the
underwriting risk, such as the use of deductibles, or capping the maximum permitted loss, or number of claims
(subject to local regulatory and legislative requirements).
The Syndicate makes use of reinsurance to mitigate the risk of incurring significant losses linked to one risk or
event, including excess of loss, quota share and catastrophe reinsurance. Where an individual exposure is
deemed to be in excess of the Syndicate’s appetite additional facultative reinsurance is also purchased.
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Syndicate 5000
24
Management of insurance risk (continued)
The Underwriting Committee oversees the management of insurance risk, whilst the Finance Committee
oversees reserving risk. The use of proprietary and standardised modelling techniques, internal and external
benchmarking, and the quarterly reviews of claims development are all instrumental in mitigating reserving risk.
The Managing Agent’s in-house actuaries perform a reserving analysis on a quarterly basis, liaising closely with
underwriters, claims and reinsurance technicians. The aim of this exercise is to produce a probability-weighted
average of the expected future cash outflows arising from the settlement of incurred claims. These projections
include an analysis of claims development compared to the previous ‘best estimate’ projections. The Finance
Committee performs a review of the results from the reserving analysis, both gross and net of reinsurance.
Following the quarterly reviews, the Finance Committee makes recommendations to the Managing Agent’s
Board of Directors of the claims provisions to be established.
In arriving at the level of claims provisions a margin is applied over and above the actuarial best estimate to
reduce the probability of adverse run-off deviation.
Concentration of insurance risk
The liabilities established as at 31 December 2025 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 reserves for large losses and catastrophes,
or from changes in estimates of claims incurred but not reported (IBNR). A five per cent increase or decrease
in the ultimate cost of settling claims arising is considered to be reasonably possible at the reporting date.
The amount disclosed in the table represents the profit or loss effect of an increase or decrease in the insurance
liability because of applying the sensitivity. The amount disclosed for the effect on claims outstanding – net of
reinsurance represents the effect on both the profit and loss for the year and member balance.
General
insurance business sensitivities as at 31 December 2025
+5.0%
£000
-5.0%
£000
Claims outstanding - gross of reinsurance
(34,373 )
Claims outstanding - net of reinsurance
(29,340 )
General insurance business sensitivities as at 31 December 2024
Claims outstanding - gross of reinsurance
Claims outstanding - net of reinsurance
CREDIT RISK
Credit risk is the risk of financial loss to the Syndicate if a counterparty fails to discharge a contractual obligation.
The Syndicate is exposed to credit risk in respect of the following:
•
debt securities;
•
reinsurers’ share of claims outstanding;
•
premiums due from intermediaries;
•
amounts due from reinsurers in respect of settled claims;
•
cash and cash equivalents; and
•
other debtors and accrued interest.
The nature of the Syndicate’s exposures to credit risk and its objectives, policies and processes for managing
credit risk have not changed significantly from the prior year.
Management of credit risk
The Syndicate's credit risk in respect of debt securities is managed by placing limits on its exposure to a single
counterparty by reference to the credit rating of the counterparty. Financial assets are graded according to
current credit ratings issued by rating agencies. The Syndicate has maintained its commitment to high quality
assets with 71% of bonds having credit ratings of AA or higher.
+5.0%
-5.0%
£000
£000
(31,309 )
(27,293 )
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25
Management of credit risk (continued)
The Syndicate limits the amount of cash and cash equivalents that can be deposited with a single counterparty
and maintains an authorised list of acceptable counterparties.
The Syndicate's exposure to intermediaries is monitored as part of its credit control processes. All intermediaries
must meet minimum requirements established by the Syndicate. The credit ratings and payment histories of
intermediaries are monitored on a regular basis.
The Syndicate assesses the creditworthiness of all reinsurers by reviewing public rating information and by
internal investigations. The effect of reinsurer default is regularly assessed and managed accordingly. The
Syndicate only uses reinsurers that have been pre-approved by its internal credit processes.
Exposure to credit risk
The carrying amount of financial assets and reinsurance assets represents the maximum credit risk exposure.
The Syndicate does not hold any collateral as security or purchase any credit enhancements (such as
guarantees, credit derivatives and netting arrangements that do not qualify for offset).
The following table provides counterparty credit exposure by credit rating:
2025
AAA
£000
AA
£000
A
£000
BBB
£000
Other
£000
NR
£000
Total
£000
Debt
securities and other fixed income
securities
Loans
and deposits with credit institutions 0 0 0 0 0 0
Deposits with ceding undertakings
Reinsurers'
share of claims outstanding 0 55,366 42,279 0 0 3,020
Debtors arising out of direct insurance
operations
Debtors arising out of reinsurance
operations
Cash at bank and in hand
Other assets
9,880
11,227
3,965
2,619
3,551
3,373
34,615
Other debtors and accrued interest
Total
securities
operations
operations
On 31 December 2025 the largest concentration of risk within the investment portfolio was to the Canadian
government and amounted to £60m (2024: Canadian government £55m).
2024
AA
A
BBB
Other
NR
Total
£000
£000
£000
£000
£000
£000
£000
Debt securities and other fixed income
Loans and deposits with credit institutions 0 0 0 0 0 2,743 2,743
Deposits with ceding undertakings 0
Reinsurers' share of claims outstanding 0
Debtors arising out of direct insurance
Debtors arising out of reinsurance
Cash at bank and in hand 0 1,391 8,314 0 0 518 10,223
Other assets 10,527
10,164
2,595
2,104
4,138
3,633
33,161
Other debtors and accrued interest 0
Total 260,381
AAA
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Syndicate 5000
26
Financial assets that are past due or impaired
The Syndicate has debtors arising from direct insurance and reinsurance operations that are past due but not
impaired at the reporting date.
2025
Neither past
due
nor impaired
£000
Past due
but
not impaired
£000
Gross value
of impaired
£000
Impairment
allowance
Total
£000 £000
Debt securities and other fixed
income securities
Loans and deposits with credit
institutions
Deposits with ceding undertakings
Reinsurers' share of claims
outstanding
Debtors arising out of direct
insurance operations
Debtors arising out of reinsurance
(253 ) 15,089
operations
Cash at bank and in hand
Other assets
34,615
0
0
34,615
Other debtors and accrued interest
Total
(253 ) 1,225,000
income securities
institutions
outstanding
insurance operations
operations
The table below sets out the age analysis of financial assets that are past due but not impaired at the balance
sheet date:
0-3 | 3-6 | 6-12 | Greater than | ||
| 2025 | months | months | months | 1 year | Total |
| £000 | £000 | £000 | £000 | £000 | |
| Debtors arising out of direct insurance operations | | ||||
| Debtors arising out of reinsurance operations | | ||||
| Total | |
2024
0-3
months
3-6
months
6-12
months
Greater than
1 year
Total
£000
£000
£000
£000
£000
Debtors arising out of direct insurance operations
Debtors arising out of reinsurance operations
Total
Neither past due
2024
nor impaired
Past due but
not impaired
Gross value
of impaired
Impairment
allowance
Total
£000
£000
£000
£000
£000
Debt securities and other fixed
Loans and deposits with credit
Deposits
with ceding undertakings 621 0
Reinsurers' share of claims
Debtors arising out of direct
Debtors arising out of reinsurance
Cash at bank and in hand 10,223
Other assets 33,161
0
0
33,161
Other debtors and accrued interest 11,886
Total 1,110,250
(285 )
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Syndicate 5000
27
LIQUIDITY RISK
Liquidity risk is the risk that the Syndicate will encounter difficulty in meeting obligations arising from its insurance
contracts and financial liabilities. The Syndicate is exposed to daily calls on its available cash resources mainly
from claims arising from insurance contracts.
The nature of the Syndicate’s exposures to liquidity risk and its objectives, policies and processes for managing
liquidity risk have not changed significantly from the prior year.
Management of liquidity risk
The Syndicate's approach to managing liquidity risk is to ensure, as far as possible, that it will always have
sufficient liquidity to meet its liabilities when they fall due, under both normal and stressed conditions, without
incurring unacceptable losses or risking damage to the Syndicate's reputation.
The Syndicate’s approach to managing its liquidity risk is as follows:
•
forecasts are prepared and revised on a regular basis to predict cash outflows from insurance contracts
over the short, medium and long term;
•
the Syndicate maintains cash and liquid assets to meet daily calls on its insurance contracts;
Liquidity risk is not considered to be a principal risk to the Syndicate and therefore is not specifically quantified
within these accounts.
The maturity analysis presented in the table below shows the remaining contractual maturities for the
Syndicate’s insurance contracts.
2025
No maturity
stated
£000
0-1 yrs
£000
1-3 yrs
£000
3-5 yrs
£000
>5 yrs
£000
Total
£000
Claims outstanding
Creditors
Total
No maturity
| 2024 | stated | 0-1 yrs | 1-3 yrs | 3-5 yrs | >5 yrs | Total |
| £000 | £000 | £000 | £000 | £000 | £000 | |
| Claims outstanding | ||||||
| Creditors | ||||||
| Total |
MARKET RISK
Market risk is the risk that the fair value or future cash flows of a financial instrument or insurance contract will
fluctuate because of changes in market prices. Market risk for the Syndicate comprises two principal types of
risk: interest rate risk and currency risk.
The objective of market risk management is to manage and control market risk exposures within acceptable
parameters, while optimising the return on risk. The nature of the Syndicate's exposure to market risk and its
objectives, policies, and processes for managing market risk have not changed significantly from the prior year.
Management of market risks
For each of the major components of market risk the Syndicate has policies and procedures in place which
detail how each risk should be managed and monitored. The management of each of these major components
of market risk and the exposure of the Syndicate at the reporting date to each of these major components are
addressed below.
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Syndicate 5000
28
Interest rate risk
Interest rate risk arises from primarily from the Syndicate's financial investments, cash and overseas deposits.
The risk of changes in the fair value of these assets is managed by primarily investing in short-term financial
investments and cash and cash equivalents. The Finance Committee monitors the duration of these assets on
a regular basis and ensures the asset duration approximates the duration of the underlying liabilities.
Currency risk
The Syndicate primarily writes business in Sterling, Euros, and US dollars and is therefore exposed to currency
risk arising from fluctuations in the exchange rates of these currencies.
The foreign exchange policy is to maintain assets in the currency in which the cash flows from liabilities are to
be settled in order to hedge the currency risk inherent in these contracts. Any surplus assets are held in US
dollars.
The table below summarises the carrying value of the Syndicate's assets and liabilities, at the reporting date:
2025
Sterling
£000
US dollar
£000
Euro
£000
Canadian
dollar
£000
Australian
dollar
£000
Other
£000
Total
£000
Investments
Reinsurers' share of
technical provisions
Debtors
(7,282 )
Other assets
Prepayments and
accrued income
Total assets
Technical
provisions (221,274 )
(685,146 ) (104,086 ) (26,459 ) 0
(1,036,965 )
Creditors
(6,424 )
(35,819 )
(5,497 )
(2,764 )
(50,504 )
Accruals and deferred
(4,710 )
(10,993 )
(2,975 )
(510 )
(19,188 )
income
Total liabilities
(232,408 )
(731,958 )
(112,558 )
(29,733 )
(1,106,657 )
Total capital and
reserves
(283,582 ) (9,955 ) (29,450 ) (8,262 ) (19,272 )
(270,700 )
technical provisions
accrued income
income
reserves
2024 Sterling
US dollar
Euro
Canadian
dollar
Australian
dollar
Other
Total
£000
£000
£000
£000
£000
£000
£000
Investments 113,961
Reinsurers' share of
Debtors 23,343
Other assets 2,619
Prepayments and
Total assets 180,074
Technical provisions (199,956 )
(648,358 )
(92,309 )
(24,352 )
(964,975 )
Creditors (21,279 )
(11,050 )
(7,724 )
(2,667 )
(42,720 )
Accruals and deferred
(3,721 )
(7,729 ) (2,631 ) (625 ) 0
(14,706 )
Total liabilities (224,956 )
(667,137 )
(102,664 )
(27,644 )
(1,022,401 )
Total capital and
(240,168 ) 12 (29,854 )
(7,335 )
(19,334 )
(251,797 )
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Syndicate 5000
29
Sensitivity analysis to market risks
An analysis of the Syndicate's sensitivity to interest rate and currency price risk is presented in the table below.
The table shows the effect on the result and net assets of reasonably possible changes in the relevant risk
variable, assuming that all other variables remain constant, if that change had occurred at the end of the
reporting period and had been applied to the risk exposures at that date.
2025
Effect on total Effect
on
comprehensive members'
result before tax balances
£000 £000
2024
Effect on total Effect
on
comprehensive members'
result before tax balances
£000 £000
Interest rate risk
+ 50 basis points shift in yield curves
(12,338 ) (12,338 )
(9,133 ) (9,133 )
- 50 basis points shift in yield curves 12,610 12,610
+ 200 basis points shift in yield curves (47,783) (47,783)
(35,460) (35,460)
- 200 basis points shift in yield curves
52,120 52,120
38,397 38,397
Currency risk
15% increase in GBP
(47,209) (47,209)
41,604 41,604
15% decrease in GBP
41,050 41,050
(36,175) (36,175)
50 and 200 basis points increase/(decrease) in yield curves and a 15% increase/(decrease) in exchange rates
have been selected on the basis that these are considered to be reasonably possible changes in these risk
variables over the following year.
The sensitivity analysis demonstrates the effect of a change in a key variable while other assumptions remain
unchanged. However, the occurrence of a change in a single market factor may lead to changes in other market
factors as a result of correlations.
CAPITAL MANAGEMENT
Capital framework at Lloyd’s
The Society of Lloyd’s (Lloyd’s) is a regulated undertaking and subject to supervision by the Prudential
Regulatory Authority (PRA) under the Financial Services and Markets Act 2000, and in accordance with the
Solvency II Framework.
Within this supervisory framework, Lloyd’s applies capital requirements at member level and centrally to ensure
that Lloyd’s would comply with the Solvency II requirements, and beyond that to meet its own financial strength,
licence and ratings objectives.
Although, as described below, Lloyd’s capital setting processes use a capital requirement set at syndicate level
as a starting point, the requirement to meet Solvency II and Lloyd’s capital requirements apply at overall and
member level only respectively, not at syndicate level. Accordingly, the capital requirement in respect of
Syndicate 5000 is not disclosed in these financial statements.
Lloyd’s capital setting process
In order to meet Lloyd’s requirements, each Syndicate is required to calculate its Solvency Capital Requirement
(SCR) for the prospective underwriting year. This amount must be sufficient to cover a 1 in 200-year loss,
reflecting uncertainty in the ultimate run-off of underwriting liabilities (SCR ‘to ultimate’). The Syndicate must
also calculate its SCR at the same confidence level but reflecting uncertainty over a one-year time horizon (one
year SCR) for Lloyd’s to use in meeting Solvency II requirements. The SCRs of each Syndicate are subject to
review by Lloyd’s and approval by the Lloyd’s Capital and Planning Group.
A syndicate may be comprised of one or more underwriting members of Lloyd’s. Each member is liable for its
own share of underwriting liabilities on the Syndicates on which it is participating but not other members’ shares.
Accordingly, the capital requirements that Lloyd’s sets for each member operates on a similar basis.
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Syndicate 5000
30
Lloyd’s capital setting process (continued)
Each member’s SCR shall thus be determined by the sum of the member’s share of the Syndicate SCR ‘to
ultimate’. Where a member participates on more than one syndicate, a credit for diversification is provided to
reflect the spread of risk, but consistent with determining an SCR which reflects the capital requirement to cover
a 1 in 200 loss ‘to ultimate’ for that member. Over and above this, Lloyd’s applies a capital uplift to the member’s
capital requirement, known as the Economic Capital Assessment (ECA). The purpose of this uplift, which is a
Lloyd’s not a Solvency II requirement, is to meet Lloyd’s financial strength, licence and ratings objectives. The
capital uplift applied for 2025 was 35% (2024: 35%) of the member’s SCR ‘to ultimate’.
In the case of Syndicate 5000, the Funds at Lloyd's ("FAL") is wholly provided by Aprilgrange Limited and F&G
UK Underwriters Limited, which are both wholly owned subsidiaries of The Travelers Companies, Inc.
5
ANALYSIS OF UNDERWRITING RESULT
An analysis of the underwriting result before investment return is presented in the table below:
2025
Gross
premiums
written
£000
Gross
premiums
earned
£000
Gross
claims
incurred
£000
Gross
operating
expenses
£000
Reinsurance
balance
£000
Underwriting
result
£000
Direct insurance
Accident
& health 9,790 9,851 (1,702 ) (1,198 ) (2,538 )
Marine,
aviation, & transport 148,110 124,321 (64,873 ) (45,666 ) (14,649 )
(867 )
Fire & other damage to property
(56,034 )
(39,444 )
(7,004 )
Third
party liability 99,826 84,720 (44,023 ) (30,989 ) (3,372 )
Miscellaneous
(261 )
Total direct insurance
(168,490 )
(118,605 )
(28,683 )
Reinsurance
acceptances 154,525 172,890 (131,901 ) (92,848 ) 267
(51,592 )
Total
(300,391 )
(211,453 )
(28,416 )
(13,102 )
The below table is an additional disclosure for Lloyd’s reporting purposes and is included to facilitate the
classification of the above segments into the Lloyd’s aggregate classes of business:
2025
Gross
premiums
written
£000
Gross
premiums
earned
£000
Gross
claims
incurred
£000
Gross
operating
expenses
£000
Reinsurance
balance
£000
Underwriting
result
£000
Additional analysis
Fire & other damage to property of
which is:
Specialities 9,385 9,034 (3,854 ) (2,713 ) (482 )
Energy 25,749 24,788 (10,575 ) (7,444 ) (1,322 )
Third
party liability of which is:
Energy
(9,650 )
(6,793 )
(739 )
5 ANALYSIS OF UNDERWRITING RESULT (continued)
travelers.com
Syndicate 5000
31
2024
The below table 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:
Additional analysis
Fire & other damage to property of
which is:
Specialities
(3,709 )
(2,425 )
(864 )
Energy
(11,133 )
(7,278 )
(2,594 )
Third party liability of which is:
Energy 17,338 14,643 (8,563 ) (4,968 ) (1,577 )
(465 )
The gross premiums written for direct insurance by destination of risk is presented in the table below:
2025
£000
2024
£000
United Kingdom
European Union Member States 38,574
United States of America
Rest of the world
Total
written
£000
earned
£000
incurred
£000
expenses
£000
balance
£000
result
£000
Direct
insurance
Accident
& health
(1,619 )
(4,348 )
(1,309 )
Marine,
aviation, & transport 139,657 114,271 (57,565 ) (43,469 ) (22,648 )
(9,411 )
Fire &
other damage to property 157,421 120,732 (55,151 ) (36,056 ) (12,849 )
Third party liability
(45,540 )
(26,418 )
(8,386 )
(2,473 )
Miscellaneous
(1,360 )
Total direct insurance
Reinsurance
acceptances 154,886 158,912 (77,085 ) (60,347 ) (8,846 )
Total
(239,217 )
(172,421 )
(55,057 )
Gross
2024
premiums
Gross
premiums
Gross
claims
Gross
operating
Reinsurance
Underwriting
written
earned
incurred
expenses
balance
result
£000
£000
£000
£000
£000
£000
Gross
Gross
Gross
Gross
premiums
premiums
claims
operating
Reinsurance
Underwriting
6 NET OPERATING EXPENSES
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Syndicate 5000
32
2025
£000
2024
£000
Acquisition costs
Change in deferred acquisition costs
(17,341 )
Administrative expenses
Members’ standard personal expenses
Reinsurance commissions and profit participation
(20,100 )
(13,484 )
Total
Brokerage and commissions on direct business written was £96.2 m (2024: £102.0 m).
Administrative expenses include fees payable to the auditors and its associates.
2025
£000
2024
£000
Auditors’ remuneration
Fees payable to the Syndicate’s auditor for the audit of these financial statements
Fees payable to the Syndicate’s auditor and its associates in respect of other
services pursuant to legislation
Total
449
442
Fees payable to the syndicate's auditor in relation to other services pursuant to legislation primarily relate to the
review and audit of syndicate regulatory returns along with the statement of actuarial opinion.
7
KEY MANAGEMENT PERSONNEL COMPENSATION
The directors of Travelers Syndicate Management Limited received the following aggregate remuneration
charged to the Syndicate and included within net operating expenses:
2025
£000
2024
£000
Directors’ emoluments
Fees
Total
1,348
1,022
The active underwriter received the following aggregate remuneration charged to the Syndicate:
2025
£000
2024
£000
Underwriters emoluments
8
STAFF NUMBERS AND COSTS
The Syndicate and managing agent have no employees. Staff are employed by Travelers Management Limited
(TML). During the year the Syndicate did not directly incur staff costs (2024: nil).
The following amounts were recharged by the managing agency to the Syndicate in respect of payroll costs:
2025
£000
2024
£000
Wages and salaries
Social security costs
Total
9 INVESTMENT RETURN
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Syndicate 5000
33
2025
£000
2024
£000
Interest
and similar income
From
financial instruments designated at fair value through profit or loss
Interest on cash at bank
Total Interest and similar income
Other
income from investments
From
financial instruments designated at fair value through profit or loss
Gains on the realisation of investments
Losses on the realisation of investments
(2,103 )
(3,433 )
Total gains & losses on the realisation of investments
(2,416 )
Investment
management expenses
(578 )
(506 )
Total investment return
Transferred to the technical account from the non-technical account
10
DISTRIBUTION
A distribution to members of £22,523,563 will be proposed in relation to the closing year of account 2023 (2024:
£78,066,993 distribution in relation to the closing year of account 2022).
11
FINANCIAL INVESTMENTS
2025
Carrying
value
Cost
£000 £000
2024
Carrying
value
Cost
£000 £000
Debt securities and other fixed income securities
Syndicate loan to central fund
Total financial investments
The table below presents an analysis of financial investments by their measurement classification.
2025
£000
2024
£000
Financial assets measured at fair value as available for sale
Total financial investments
As the Syndicate is fully aligned, the Syndicate holds the capital supporting their underwriting in their Syndicate’s
premium trust funds. These funds are known as funds in syndicate (FIS). At 31 December 2025, the following
amount was held as funds in syndicate:
2025
£000
2024
£000
Funds in Syndicate (FIS)
Total funds in syndicate
11 FINANCIAL INVESTMENTS (continued)
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Syndicate 5000
34
The Syndicate classifies its financial instruments held at fair value in its balance sheet using a fair value
hierarchy based on the inputs used in the valuation techniques 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.
•
Level 3 – Inputs are unobservable (i.e. for which market data is unavailable) for the asset or liability and
therefore, prices are determined using a valuation technique.
The Syndicate utilised a pricing service to estimate the fair value of its investments at both 31 December 2025
and 31 December 2024.
The fair value of a financial instrument is the estimated amount at which the instrument could be exchanged in
an orderly transaction between knowledgeable, unrelated, willing parties, i.e. not in a forced transaction. The
estimated fair value of a financial instrument may differ from the amount that could be realised if the security
were sold in an immediate sale, e.g. a forced transaction. Additionally, the valuation of investments is more
subjective when markets are less liquid due to the lack of market-based inputs, which may increase the potential
that the estimated fair value of an investment is not reflective of the price at which an actual transaction would
occur.
For investments that have quoted market prices in active markets, the Syndicate uses the unadjusted quoted
market prices as fair value and includes these prices in the amounts disclosed in Level 1 of the hierarchy. The
Syndicate receives the quoted market prices from third party, nationally recognised, pricing services.
When quoted market prices are unavailable, the Syndicate utilises these pricing services to determine an
estimate of fair value. The fair value estimates provided from these pricing services are included in the amount
disclosed in Level 2 of the hierarchy. If quoted market prices and an estimate from a pricing service are
unavailable, the Syndicate produces an estimate of fair value based on internally developed valuation
techniques, which, depending on the level of observable market inputs, will render the fair value estimate as
Level 2 or Level 3. The Syndicate bases all its estimates of fair value for assets on the bid price as it represents
what a third-party market participant would be willing to pay in an arm's length transaction.
Syndicate loans to the Lloyd’s Central Fund are classified as Level 3, these loans are not tradeable. Their
valuation is at as fair value.
The table below analyses financial instruments held at fair value in the Syndicate’s balance sheet at the reporting
date by its level in the fair value hierarchy.
2025
Level 1
£000
Level 2
£000
Level 3
£000
Total
£000
Debt securities and other fixed income securities
Syndicate loans to central fund
Total
2024
Level 1 Level 2 Level 3 Total
£000
£000
£000
£000
Debt securities and other fixed income securities
Syndicate loans to central fund
Total
12 DEBTORS ARISING OUT OF DIRECT INSURANCE OPERATIONS
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Syndicate 5000
35
2025
£000
2024
£000
Due within one year
Due after one year
Total
13
DEBTORS ARISING OUT OF REINSURANCE OPERATIONS
2025
£000
2024
£000
Due within one year
Due after one year
Total
14
OTHER DEBTORS
2025
£000
2024
£000
Other related party balances (non-syndicates)
Other debtors
Total
15
DEFERRED ACQUISITION COSTS
The table below shows changes in deferred acquisition costs assets from the beginning of the period to the end
of the period.
Gross
£000
2025
Reinsurance
£000
Net
£000
Gross
£000
2024
Reinsurance
£000
Net
£000
Balance at 1 January
(137,188 )
(3,006 )
(14,706 )
(24,885 )
(117,088 )
(2,703 )
(123,355 )
(152 )
(13,030 )
(15,194 )
(109,871 )
(118 )
Incurred deferred
acquisition costs
Amortised deferred
acquisition costs
Foreign exchange
movements
Balance at 31 December
(19,188 )
(14,706 )
16 CLAIMS DEVELOPMENT
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Syndicate 5000
36
The following tables illustrate the development of the estimates of earned ultimate cumulative claims incurred,
including claims notified and IBNR, for each successive underwriting year, illustrating how amounts estimated
have changed from the first estimates made.
As these tables are on an underwriting year basis, there is an apparent large increase from amounts reported
for the end of the underwriting year to one year later as a large proportion of premiums are earned in the year
of account’s second year of development.
Balances have been translated at exchange rates prevailing at 31 December 2025 in all cases.
Gross | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| Pure underwriting year | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m |
| at end of underwriting year | ||||||||||
| one year later | ||||||||||
| two years later | ||||||||||
| three years later | ||||||||||
| four years later | ||||||||||
| five years later | ||||||||||
| six years later | ||||||||||
| seven years later | ||||||||||
| eight years later | ||||||||||
| nine years later | ||||||||||
| Cumulative payments | ( | ( | ( | ( | ( | ( | ( | ( | ( | ( |
| Estimated balance to pay | ||||||||||
| Net | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| Pure underwriting year | £m | £m | £m | £m | £m | £m | £m | £m | £m | £m |
| at end of underwriting year | ||||||||||
| one year later | ||||||||||
| two years later | ||||||||||
| three years later | ||||||||||
| four years later | ||||||||||
| five years later | ||||||||||
| six years later | ||||||||||
| seven years later | ||||||||||
| eight years later | ||||||||||
| nine years later | ||||||||||
| Cumulative payments | ( | ( | ( | ( | ( | ( | ( | ( | ( | ( |
| Estimated balance to pay |
Gross
£000
Reinsurance
£000
Net
£000
Estimated
balance to pay 659,461 (101,199)
Provision in respect of prior years
534
Total
provision included in the
balance sheet
(100,665)
17 TECHNICAL PROVISIONS
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Syndicate 5000
37
The table below shows changes in the insurance contract liabilities and assets from the beginning of the period
to the end of the period.
Claims outstanding
Gross
provisions
£000
2025
Reinsurance
assets
£000
Net
provisions
£000
Gross
provisions
£000
2024
Reinsurance
assets
£000
Net
provisions
£000
Balance at 1 January 626,185 (80,317 )
Claims paid during the year (210,614 ) 24,207
(186,407 )
(205,077 ) 38,128
(166,949 )
Expected cost of current year
claims
Change in claims outstanding 89,777 (25,337 )
Effect of movements in
exchange
rate
(28,497 ) 4,989
(23,508 )
Balance at 31 December
(100,665 )
(80,317 )
Claims notified
244,060
(39,862)
204,198
229,939
(32,101)
197,838
Claims incurred but not reported
(IBNR)
427,625 (60,803)
366,822
382,798 (48,216)
334,582
Unallocated loss adjusted
expenses
15,780 0
15,780
13,449 0
13,449
Unexpired risk provision
0
0
0
0
0
0
Balance at 31 December
687,465
(100,665)
586,800
626,185
(80,317)
545,868
Gross IBNR has increased year on year due to volume and timing.
Unearned premiums
Gross
provisions
£000
2025
Reinsurance
assets
£000
Net
provisions
£000
Gross
provisions
£000
2024
Reinsurance
assets
£000
Net
provisions
£000
Balance at 1 January 338,790 (54,725 )
Premiums written during the year
Premiums earned during the
year
(527,158 ) 98,060
(429,098 )
(484,539 ) 83,010
(401,529 )
Change in unearned premiums 25,042 (14,297 )
Effect of movements in
exchange
rate
(14,332 ) 2,815
(11,517 )
Balance at 31 December
(66,207 )
(54,725 )
18 CREDITORS ARISING OUT OF DIRECT INSURANCE OPERATIONS
2025
£000
2024
£000
Due within one year
Due after one year
Total
19 CREDITORS ARISING OUT OF REINSURANCE OPERATIONS
travelers.com
Syndicate 5000
38
2025
£000
2024
£000
Due within one year
Due after one year
Total
20
OTHER CREDITORS
2025
£000
2024
£000
Other related party balances (non-syndicates)
Other liabilities
Total
21
CASH AND CASH EQUIVALENTS
2025
£000
2024
£000
Cash at bank and in hand
Total
22
RELATED PARTIES
No guarantees were given to, or received from, related parties during the year (2024: £ Nil). No provision was
held for uncollectible receivables from related parties at 31 December 2025 (2024: £ Nil) and no bad debt
expense in relation to such balances recognised during the year (2024: £ Nil).
Travelers Underwriting Agency Limited (TUAL) is related to Syndicate 5000 by virtue of common control. TUAL
acts as a coverholder to Lloyd's underwriters. During the year TUAL placed inwards premium income with the
Syndicate on normal commercial terms. Brokerage and commissions paid by the Syndicate to TUAL in the year
amounted to £0.3m (2024: £0.3m).
Travelers Indemnity Company (TIC) is related to Syndicate 5000 by virtue of common control. Investment
Management fees paid by the Syndicate to TIC in the year amounted to £0.6m (2024: £0.5m). Intercompany
reinsurance premiums ceded to TIC in the year amounted to £7.0m (2024: £4.5m).
Travelers Casualty and Surety Company of America is related to Syndicate 5000 by virtue of common control.
Intercompany reinsurance premiums ceded to Travelers Casualty and Surety Company of America amounted
to £0.3m (2024: £35k).
Travelers Syndicate Management Limited (TSML) is related to Syndicate 5000 by virtue of common control.
Managing agent’s fees paid by the Syndicate amounted to £0.3m (2024: £0.2m).
Travelers Management Limited (TML) is related to Syndicate 5000 by virtue of common control. The recharged
expenses amounted to £73m (2024: £62m).
Corvus Agency Limited is related to Syndicate 5000 by virtue of common control. Corvus Agency Limited acts
as a Coverholder to Lloyd's underwriters. During the year Corvus placed inwards premium income with the
Syndicate on normal commercial terms. Brokerage and commissions paid by the Syndicate to Corvus Agency
Limited in the year amounted to £0.6m (2024: £0.2m).
Aprilgrange Limited and F&G UK Underwriters Limited are corporate members who provide capacity for
Syndicate 5000 and are related by virtue of common control.
SPC Insurance Agency Inc. (SPC) is related to Syndicate by virtue of common control. SPC acts as a
coverholder to Lloyd’s underwriters. During the year SPC placed inwards premium income with the Syndicate
on normal commercial terms. Brokerage and commissions paid by the Syndicate to SPC in the year amounted
to £39k (2024: £32k).
22 RELATED PARTIES (continued)
travelers.com
Syndicate 5000
39
773
(7,624)
(1,234)
114
(204)
2025
£000
The following balance sheet amounts were outstanding at year end with related parties:
Travelers Underwriting Agency Limited
The Travelers Indemnity Company
Travelers Casualty and Surety Company of America
Travelers Syndicate Management Limited
Travelers Management Limited
Corvus Agency Limited
SPC Insurance Agency Inc.
2024
£000
530
(3,984)
(1,213)
0
(5,195)
(882)
0
23
FOREIGN EXCHANGE RATES
The following currency exchange rates have been used for principal foreign currency transactions:
2025
Start of End of
period rate period rate Average rate
2024
Start of End of
period rate period rate Average rate
Sterling
Euro
US dollar
Canadian dollar
24
FUNDS AT LLOYD’S
Every member is required to hold capital at Lloyd’s which is held in trust and known as Funds at Lloyd’s (‘FAL’).
These funds are intended primarily to cover circumstances where Syndicate assets prove insufficient to meet
participating members’ underwriting liabilities. The level of FAL that Lloyd’s requires a member to maintain is
determined by Lloyd’s based on Prudential Regulatory Authority requirements and resource criteria. The
determination of FAL has regard to several factors including the nature and amount of risk to be underwritten
by the member and the assessment of the reserving risk in respect of business that has been underwritten.
Since FAL is not under the management of the Managing Agent, no amount has been shown in these Financial
Statements by way of such capital resources. However, the Managing Agent can make a call on the Member’s
FAL to meet liquidity requirements or to settle losses.
25 ULTIMATE CONTROLLING PARTY
The immediate and ultimate parent company of TSML is The Travelers Companies, Inc. (TRV), a company
registered in the USA. Group accounts for TRV are available from the Company Secretary of TSML, at 30
Fenchurch, London, EC3M 3BD.
0
0
