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Argenta Syndicate Management Limited
Syndicate 6134
Report and Annual Accounts
as at 31 December 2025
Argenta Syndicate 6134
Argenta Syndicate Management Limited
Company Information
Directors
Paul Wilson
Nicholas J Moore
Graham K Allen
Sven Althoff
Shawn Baggs
Rosemary F Beaver
Ralph M Beutter
Ian Burford
Miriam C Goddard
Nigel S Meyer
Niranjan Nathan
Anne-Kathrin Saake
Registered office
5th Floor
70 Gracechurch Street
London EC3V 0XL
Registered in England number 3632880
Independent auditors
PricewaterhouseCoopers LLP
7 More London Riverside
London SE1 2RT
Syndicate bankers
Barclays Bank PLC
1 Churchill Place
Canary Wharf
London E14 5HP
Syndicate actuaries
PricewaterhouseCoopers LLP
7 More London Riverside
London SE1 2RT
Managing agency independent auditors
PricewaterhouseCoopers LLP
7 More London Riverside
London SE1 2RT
Argenta Syndicate 6134
Contents of Report and Accounts
Page
Managing Agent’s Report 3
Annual Accounts
Statement of managing agent’s responsibilities 12
Independent auditors’ report 13
Income statement: technical account – general business 17
Income statement: non-technical account 18
Statement of changes in member’s balances 19
Statement of financial position 20
Statement of cash flows 22
Notes to the accounts 23
Argenta Syndicate 6134
3
Managing Agent’s Report
The directors of Argenta Syndicate Management Limited (“ASML”), a company registered in England and Wales, present their report for
the year ended 31 December 2025.
The annual accounts are prepared using the annual basis of accounting as required by Statutory Instrument No. 1950 of 2008, the
Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 (“the 2008 Regulations”). They are also
prepared in accordance with the Lloyd’s Syndicate Accounts Instructions version 3.1 as modified by the Frequently Asked Questions
version 1.1 issued by Lloyd’s.
The financial reporting framework that has been applied is United Kingdom Generally Accepted Accounting Practice (“UK GAAP”)
including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (“FRS
102”) and Financial Reporting Standard 103 ‘Insurance Contracts’ (“FRS 103”).
Principal activities
There has been no change during the year to the syndicate’s principal activity which continues to be the transaction of reinsurance
business.
Overview of business
Syndicate 6134 is a Special Purpose Arrangement established to underwrite quota share reinsurances of business underwritten by
Syndicate 2121 as the host syndicate. The portfolio can be broken down into the following main areas:
• Property (including terrorism)
• Energy (offshore, utilities and liability)
• Marine (liability, cargo and specie)
• Specialty (political risks, cyber, warranty and indemnity)
• Casualty (both insurance and reinsurance)
• Financial lines & professional indemnity
Overall the portfolio of the host syndicate has a worldwide spread and comprises business assumed through single risk writings,
reinsurance treaties, Lloyd’s market consortia and coverage provided through third party delegated underwriting authorities.
The casualty class, written predominantly via binding authorities granted to specialist US underwriting agencies, continues to be the
largest account ceded to Syndicate 6134. This book of business consists of financial institutions, professional indemnity, general liability
and errors and omissions type risks. A relatively modest book of casualty reinsurance business is also underwritten.
The syndicate also takes a share of an established direct and facultative property book. This has been built around a number of long-
standing relationships with managing general agents from around the world with a particular focus on the USA, written alongside a
property open market account with a similar geographical focus.
The only other class of business with a significant degree of premium ceded by Syndicate 2121 is the cyber account. This is written by
the host syndicate predominantly through participation on approved Lloyd’s consortia and binding authorities.
The reinsurance arrangement with Syndicate 6134 provides for the host Syndicate 2121 to receive overriding commissions based on
premium income, which vary depending on the class of business. The political risk account also carries a profit commission in line with
previous years.
In addition to the overriding and profit commissions payable to Syndicate 2121 at a class level, Syndicate 6134 incurs management and
member level expenses including a fee and profit commission payable to ASML.
Argenta Syndicate 6134
4
Review of underwriting activities
Back in May 2025, the US National Oceanic and Atmospheric Administration (“NOAA”) predicted that the upcoming hurricane season
would be “above average” for activity, meaning they expected there to be an increased frequency of intensely powerful hurricanes
during 2025, when compared to prior years. The Atlantic hurricane season, which runs broadly from 1 June until 30 November, has
now run its course without a major hurricane hitting the US mainland, the first time this has happened in a decade. The most notable
windstorm of the year, named Melissa, devastated Jamaica making landfall as a Category 5 storm on 28 October 2025. Whilst the
syndicate did not have significant losses from this event, sadly, the island of Jamaica was not well prepared for such an intense storm,
the worst to strike the island since Hurricane Gilbert in 1988, and 45 people lost their lives.
Overall, hurricane activity in the Atlantic basin was material, as predicted, with 13 named storms, three of which became Category 5 on
the Saffir-Simpson scale of intensity. The fact that the US was spared any direct hurricane activity means that the only major
catastrophe of the year to affect the mainland began on 7
January 2025 when an incredibly wealthy area in California, known as the
Palisades, hit the headlines and news channels. A wildfire broke out, moving quickly through the area driven by wind speeds near to
hurricane force. This fire was unique in many ways; not only did it affect a coastal region, many miles away from known wildfire
topography, it also destroyed the homes of many well-known film and music artists. Unsurprisingly the Palisades fire, along with a
smaller yet equally destructive fire to the north called Eaton that happened around the same time, are together the most catastrophically
expensive wildfires in history, with a current estimated market loss of around US$40 billion. There was also a very active tornado
season in the US, with the first EF5 rated tornado (Enhanced Fujita scale, rating tornados from 1, the weakest to 5, the strongest)
forming since 2013. The overall season, that runs broadly from February to May, was notably violent with eight tornados registering as
EF4, again not seen since 2013.
Market conditions remain favourable even though the trading environment was challenging as the syndicate faced the strengthening
headwinds of a softening market. It was fortuitous that an active hurricane season passed without any of the storms making landfall on
the US mainland, but that means many businesses will be able to release the claims reserve budgets they hold for such losses,
exacerbating the speed of the softening in rates in some lines. Overall, at the syndicate level, risk adjusted rate change for the year
closed at plus 0.9%, relatively close to the plus 1.5% estimate in the 2025 business plan. This is, however, masking some very
aggressive behaviour from some in the market who are cutting rates unnecessarily to gain market share. The energy and open market
property units are under particular pressure, working hard to maintain a good rate adequacy yet having to face reductions of up to, and
sometimes beyond, 20% to remain competitive. This is not sustainable and, hopefully, those aggressors will soon see sense. The
syndicate remains focused on long-term pricing adequacy and is prepared to walk away from inadequately priced business if the
required margins are not present.
It is pleasing that the syndicate is able to declare a profit of £20.0 million for the year, with a net combined ratio of 83.2%.
The table below summarises the capacity, premium volumes and performance of Syndicate 6134 for 2025 alongside comparative
numbers for 2024. Other than in respect of capacity, the numbers shown are on an annually accounted basis. The table is followed by
further detailed comments in relation to each of the years on an annually accounted basis and also on an underwriting year of account
basis.
Key performance indicators
2025
2024
Capacity (underwriting year)
£133 million
£133 million
Gross premiums written
£126.8 million
£146.8 million
Net premiums earned
£125.5 million
£141.0 million
Profit for the year
£20.0 million
£22.7 million
Claims ratio (net)
(i)
42.0%
40.9%
Combined ratio
(ii)
83.2%
83.6%
(i)
Ratio of claims incurred to net premiums earned.
(ii)
Ratio of net claims incurred, commissions and expenses (excluding exchange differences) to net premiums earned.
Argenta Syndicate 6134
5
Review of underwriting activities continued
2023 year of account
In comparison to 2022, the storm activity during the year was relatively modest, with most losses coming from the extreme tornado
activity seen in the early part of the year. It was, however, the fourth year in a row that overall natural peril insured losses exceeded the
US$100 billion mark, with the previous ten year average being just under that threshold.
The year will be remembered for the awful events of 7
October 2023 when Hamas launched an attack on Israel. The world is still living
with the seismic effects of this act of hostility, having to navigate an ever-changing geopolitical climate exacerbated by this attack, but
already heightened as a result of Russia’s invasion of Ukraine that continues to this day.
Overall market conditions, however, remained favourable and the syndicate was able to achieve a healthy rate increase across the book
of plus 7.2%, in addition to the rate increases already achieved in 2022.
This year of account has closed with a healthy return on capacity of 15.0%.
2024 year of account
On 26
March 2024 a large containership, Dali, struck the Francis Scott Key Bridge in Baltimore, causing the bridge to collapse and sadly
taking the lives of six highway workers. As expected with a large loss as complex as this, the claims adjustment and settlement process
is taking a long time to reach a conclusion. Whilst this could possibly be the largest ever marine claims incident, the host syndicate had
very little exposure and the loss incurred by Syndicate 6134 was not material.
The Palisades and Eaton wildfire losses that occurred in January 2023, referred to earlier, have impacted the 2024 year of account. As
expected for a large catastrophic loss such as this, the comprehensive reinsurance programme purchased by the host has attached,
meaning the net retained loss to syndicate 6134 has been reduced to a more manageable level.
The trading conditions for 2024 continued to be favourable, building on the momentum from 2023 with risk adjusted rate increases
ending up at plus 3.7% against a plan of plus 3.5%. As a result, the forecast profit for this year of account is between 8% and 18.0% of
capacity.
2025 year of account
As indicated above, major loss activity in the year started early with the largest wildfire event in recorded history that began on 7
January 2025, devastating a high-profile and incredibly wealthy area of the Californian coastline. Whilst a loss such as this was
unprecedented, it has given the host syndicate the opportunity to review its activities in the classes affected and improve the overall
underwriting of the wildfire peril and the associated aggregation strategies. There were some positives to take from the syndicate’s
involvement in paying claims to those affected by both the Palisades and Eaton wildfires. With the host syndicate writing a
predominantly homeowners account in the area, the claims team was able to proactively review the homes affected using satellite
imagery and, due to the severity of the losses involved, settle claims quickly without the need for a long drawn out adjustment process.
Put simply, these homes were destroyed to the point that only the concrete base slabs remained, meaning most of the claims were
settled within six weeks of the loss occurring. It is also a reminder that insurance plays a critical role in helping society manage risk,
rebuild lives and maintain resilience in an increasingly volatile world.
As mentioned earlier, market catastrophic loss activity for the year was relatively light when compared to 2024 (which is estimated to be
around US$140 billion) with the 2025 estimate being around US$107 billion (according to a major reinsurer based in Switzerland). This
is the sixth consecutive year in which catastrophic loss activity passed the US$100 billion mark.
Argenta Syndicate 6134
6
Trading conditions for 2026
Trading conditions for 2025 were good. There were, however, pockets of challenging market behaviour. As the syndicate enters a new
year of account, rate adequacy remains good in all the lines written, but in some segments the pressure to reduce prices intensified
dramatically throughout 2025. There were areas, such as the casualty portfolio, which continued to see modest rate increases
throughout 2025, whereas the shorter-tail account and, in particular, the classes mentioned previously being energy and property open
market, have had to react to a rapidly declining rating environment throughout the year. To reiterate, price adequacy is good as the
syndicate looks forward to 2026, and in these shorter-tail classes the current adequacy can still be categorised as very good, meaning
the syndicate is able to tolerate most of the reductions being seen. The market will reach a point, however, where tough decisions will
need to be made, meaning the syndicate declining an increasing amount of under-priced business. That point has not yet been reached,
and may not be in 2026. The syndicate, however, will not drop its guard as it works hard to maintain profitability.
The syndicate’s appetite for catastrophe exposure remains consistent with that adopted in previous years and the risk metrics for major
US and International perils are expected to remain in line with previous years at a whole account level.
Sustainability strategy
ASML is committed to developing a sustainable business and considers this to be one of the long-term measures of success. In this
regard, ASML will consider the impact of the company’s activities on the environment, both operationally and in respect of its
underwriting and investment strategies, and the wellbeing of its clients, employees, suppliers and society more generally. In this regard,
ASML will assess its performance in the key areas of environmental, social and governance (“ESG”) impacts.
Environmental
ASML seeks to protect the environment and to address through its actions, the challenges presented by climate change, energy
demands, scarcity of resources, pollution and waste. It will work with its clients and other stakeholders to develop solutions to these
environmental challenges. ASML aspires to be a net zero business by 2050, across all of its products and investments. Operationally,
ASML is committed to reducing its carbon emissions and implementing appropriate measures to achieve as far a possible, over time,
carbon neutrality. In areas where this is not possible, ASML will seek to offset its calculated CO
2
emissions through participation in
carbon offset schemes or carbon capture projects.
Social
ASML recognises its social responsibilities and the importance of its contribution to improving social outcomes for all. In doing so, ASML
will take action through its initiatives in human rights, health, safety and wellbeing, diversity and inclusion and through its community
engagement work. ASML seeks to maintain a strong ethical foundation in all of its activities, acting with integrity, treating all people with
respect and taking care to avoid any business which may have an adverse impact on human rights. Examples of the types of business
avoided include forced labour, land grabbing or resettlement of indigenous communities and controversial weapons.
ASML also provides a safe and healthy working environment, recognising the importance of the health and wellbeing of its employees.
ASML is committed to working towards creating a more diverse business, promoting equality of opportunity and empowering people
from all backgrounds to develop their talents within the organisation. ASML’s community engagement aims to support, at a community
level, its diversity and inclusion initiatives and to contribute with its time and resources to improving the lives and opportunities of those
around it.
Governance
Argenta Holdings Limited (“AHL”) sets policies and directions for the group companies, with each subsidiary responsible for the
development and implementation of their detailed plans, appropriate for their business and for meeting their specific legal, regulatory
and compliance obligations.
ASML maintains a robust governance structure, in which its sustainability strategy is embedded at all levels, with clear lines of
accountability across its business. This enables ASML to meet its strategic objectives and regulatory obligations. The ASML board
retains responsibility for the development of the sustainability framework and sustainability strategy and oversight of its implementation
with regular monitoring delegated to sub-committees of the board.
Day to day responsibility for implementation of the sustainability strategy rests with the executive committee, including the active
underwriter and finance director, and the risk management and compliance functions as appropriate.
Argenta Syndicate 6134
7
Sustainability strategy continued
As part of the development of its sustainability governance, the board and senior management will identify the most effective metrics
and management information which enables the board to measure the delivery of the sustainability strategy and the degree of
sustainability integration within the business and to also ensure that ASML can meet its current and future reporting obligations.
ASML business structure
ASML is the Lloyd’s managing agency subsidiary of AHL, a private company with diversified interests in the Lloyd’s insurance market.
AHL is wholly owned by Hannover Rück SE (“Hannover Re”) whose immediate parent undertaking is Talanx AG, a leading global
insurance group. ASML is the managing agency for two syndicates trading at Lloyd’s, namely Syndicate 2121 and the associated
Special Purpose Arrangement, Syndicate 6134.
The Hannover Re group is the sole capital provider to Syndicate 6134, which underwrites quota share reinsurances of business
underwritten by Syndicate 2121 as the host syndicate. For the closing 2023 year of account Syndicate 6134 underwrote gross net
written premium of £80.8 million across certain classes within the underwriting capability of the host syndicate. For the 2026 year of
account, Syndicate 6134 is forecast to underwrite £93.3 million of gross net written premium.
Syndicate 2121 is also supported by Hannover Re both as a traditional reinsurer and a long-term capital provider. ASML has maintained
a strategy of steadily growing Syndicate 2121 with capacity increasing from £660 million in 2022 to £800 million for the 2023, 2024 and
2025 years of account. The capacity of the syndicate for 2026 has been increased slightly to £820 million. The growth strategy is
achieved by the selective addition over the years of new classes of business to complement the existing portfolio, as well as continued
organic growth in a number of areas.
Syndicate 2121 underwrites a broad cross section of classes including marine, property, energy and utility and elements of the specialty
class on a predominantly short tail basis and financial lines, casualty, and marine and energy liability with longer tail characteristics.
Syndicate 2121 underwrites business on a global basis primarily from London and, until recently, via the Australian branch of Argenta
Underwriting Asia Pte Ltd (“AUA”). In June 2024 the syndicate ceased to underwrite new or renewal business from the AUA branch
office in Sydney although the branch office in Tuggerah remained actively underwriting. With effect from 1 July 2025, the business
underwritten by the Tuggerah branch of AUA, was transferred to a newly established, UK domiciled service company owned by AHL,
Argenta International Limited (“AIL”).
Syndicate 6134 has not bought reinsurance protection, but benefits from certain reinsurance protections purchased by Syndicate 2121.
Premiums and claims are ceded under the quota share net of Syndicate 2121’s reinsurance where applicable. Syndicate 6134 operates
on a funds withheld basis, although amounts may be advanced if needed to enable it to finance its standalone obligations or in the event
that there is an interim profit release to supporting capital on an open year of account.
Directors
Paul Wilson – Non-executive Chairman form 1 July 2025 (appointed as non-executive Director on 26 February 2025)
John LP Whiter – Non-executive Chairman (resigned 1 July 2025)
Nicholas J Moore – Director
Graham K Allen – Director
Sven Althoff – Non-executive Director
Shawn Baggs – Director
Rosemary F Beaver – Non-executive Director
Ralph M Beutter – Non-executive Director (appointed 1 June 2025)
Ian Burford – Director and Active Underwriter syndicates 2121 and 6134
Carol-Ann Burton – Company Secretary
Miriam C Goddard – Non-executive Director
Nigel S Meyer – Non-executive Director
Niranjan Nathan – Director
Gary A Powell – Non-executive Director (resigned 31 December 2025)
Anne-Kathrin Saake – Non-executive Director
Argenta Syndicate 6134
8
Risk management
As an underwriting business Syndicate 6134 is exposed to a variety of financial and non-financial risks. These risks, which shape the
risk management strategy adopted by ASML, are integral to the capital setting process that is undertaken to ensure there is an
appropriate level of capital held in respect of the insurance liabilities to which Syndicate 6134 is exposed. The Own Risk and Solvency
Assessment (“ORSA”) undertaken in respect of Syndicate 6134 reflects the risk profile of the business as well as the business strategy.
Risks are managed through the risk management framework in order to ensure that the risk profile of the business is fully understood
and can be monitored against the agreed risk appetite. Further information in respect of this is also disclosed in note 19.
ASML is committed to risk management as an integral part of management and governance best practice, and has developed a risk
management strategy to protect the financial and non-financial assets of Syndicate 6134 and to minimise its losses and liabilities.
The risks to the business are grouped under various categories, each of which is the subject of a risk policy which sets out ASML’s
approach to the management of the risk in conjunction with the overarching risk management framework and risk strategy. ASML
groups risks into the following key categories:
Insurance risk
Insurance risk is the risk that arises from the inherent uncertainties in the occurrence, amount and timing of insurance liabilities. The
underwriting profile of Syndicate 6134 is such that it is likely that claims will arise on the business underwritten. An expected level of
claims in relation to attritional, large and catastrophe type losses has, therefore, been included in the business planning process.
Other mitigating measures, in the form of internal controls, are used to preserve the syndicate’s performance by limiting the exposure to
wider underwriting, claims and reserving risks, such as:
•
Adverse catastrophe loss experience;
•
Adverse large and attritional loss experience;
•
Poor or inappropriate risk selection;
•
Inadequate reinsurance placement; and
•
Final claims costs deviating materially from estimated earned reserves due to the inherent variability of the business.
ASML manages these risks against an agreed risk appetite. The framework of systems and controls is designed to reduce the likelihood
of such risks occurring and to mitigate their impact, as far as possible, on the overall business of the syndicate.
Operational risk
Operational risk is defined as the risk of loss resulting from people, processes, systems or from external events. Control procedures are
used to proactively address the risks associated with ASML’s business processes, systems and other resources that might otherwise be
detrimental to overall performance. Business continuity is considered key and ASML has developed plans to recover all important
business services within impact tolerances, and all business services within 24-48 hours.
The retention of key staff is also fundamental to the success of the business and the strategy adopted by ASML is designed to ensure
that the terms and conditions offered to employees, as part of their overall remuneration package, remain competitive with the rest of
the London market insurance industry.
As a regulated business, ASML is fully aware of its regulatory obligations to the UK Financial Conduct Authority (“FCA”), the Prudential
Regulation Authority (“PRA”), Lloyd’s and other overseas regulators. The procedures adopted by ASML in this regard rigorously monitor
compliance with the regulatory standards and, through continuous assessment, highlight any developments that might impact the
business.
Capital risk
Capital risk is defined as the risk to the syndicate of losses arising from inappropriate levels or sources of capital. Syndicate 6134 is
supported by Hannover Re whose ongoing support is important to the syndicate continuing to trade forward.
Argenta Syndicate 6134
9
Risk management continued
Liquidity risk
Liquidity risk is the risk that the syndicate will not have sufficient cash resources to be able to meet its liabilities as they fall due.
Management information is used to enable the effective monitoring of the liquidity risk framework in line with the agreed procedures and
governance arrangements. Robust procedures are in place for the monitoring of cash flow and effective credit control. The syndicate is
managed on a funds withheld basis but does operate its own bank account for paying direct expenses and invests surplus funds in
unitised money market funds that are both highly liquid and highly rated.
Credit risk
Credit risk is inherent to the business conducted with brokers, coverholders, reinsurers and other counterparties. The potential for
losses arising from a counterparty failing to fulfil its contracted payment obligations is managed by strict control procedures. Aged debt in
respect of the payment of premiums and reinsurance recoveries is closely monitored and actively managed in the host syndicate. The
ASML third party management group approves the brokers, coverholders and reinsurers with which the host syndicate may conduct its
business. There is no appetite to deal with counterparties who have not been approved.
Financial market risk
Financial market risk is concerned with the loss resulting from adverse movements in the financial markets, impacting investments or
funds held in other currencies. The risks are relatively low as the syndicate is managed on a funds withheld basis and is only expected to
hold cash, cash equivalents and unitised money market funds in the form of highly diversified collective investment schemes for paying
expenses. It is however exposed to movements in exchange rates impacting the underlying values of the quota share reinsurance
contracts it underwrites.
Emerging risk
In addition to monitoring the individual risk categories outlined above, ASML has in place an emerging risks process to review risks that
may impact the business in the future, and to ensure that any such risks are understood and mitigated where possible.
Conduct risk
ASML defines conduct risk as any activities undertaken by the business that give rise to poor customer outcomes and has in place a
mechanism for identifying, monitoring, reporting and mitigating its exposure to conduct related issues. This includes monitoring and
reporting on a wide range of conduct management information and risk appetite metrics to the ASML board, Risk Framework & Capital
Committee and product oversight group.
Investment managers and policy
During 2025, the syndicate’s funds were retained in a combination of a sterling bank deposit and highly liquid money market funds with
Blackrock and Invesco. The money market funds investment objective is to preserve capital and invest in high quality sterling
denominated short-term debt and fixed income securities aiming to achieve short-term money market returns. The average funds held
during 2025 was £5.8 million (2024: £5.0 million) and a return of 4.4% (2024: 5.2%) was achieved yielding £0.3 million (2024: £0.3
million).
Research and development
The syndicate has not participated in any research and development activity during the year.
Disclosure of information to the auditors
In the case of each of the persons who are directors of the managing agent at the time the report is approved:
•
So far as the director is aware, there is no relevant audit information, being information needed by the syndicate’s auditors in
connection with the auditors’ report, of which the auditors are unaware; and
•
Having made enquiries of fellow directors of the agency and the syndicate’s auditors, each director has taken all the steps that he or she
ought to have taken as a director to become aware of any relevant audit information and to establish that the syndicate’s auditors are
aware of that information.
Argenta Syndicate 6134
10
Independent auditors
PricewaterhouseCoopers LLP ("PwC") continue to act as auditors of the syndicate annual accounts and also as the auditors of ASML.
Lloyd’s approval for this arrangement under the relevant provisions of the Audit Arrangements Byelaw (No. 7 of 1988) was granted
following notification to the syndicate member and their non-objection to the arrangement. Notice is hereby given that it is intended to
continue with this arrangement unless objections to this proposal are received from the syndicate member. Any such objection should
be made in writing to the registered office of ASML, within 21 days of receipt of this statement. Under the 2008 Regulations, the auditors
are deemed reappointed in subsequent years if there is no objection. PwC has signified its willingness to continue in office as the
independent auditors to the syndicate and it is proposed that the appointment remains in force.
Annual general meeting with the syndicate member
In accordance with the provisions of the 2008 Regulations, it is not intended to hold an annual general meeting with the member of Syndicate
6134, unless objections to this proposal or to the deemed reappointment of the auditors are received from the syndicate member. Any
such objection should be made in writing to the registered office of ASML, within 21 days of receipt of this statement.
Nicholas J Moore
Managing Director
Approved by the board of Argenta Syndicate Management Limited on 18 February 2026.
Argenta Syndicate 6134
11
S Y N D I C A T E
6134
ANNUAL
ACCOUNTS
2025
Argenta Syndicate 6134
12
Statement of Managing Agent’s Responsibilities
The managing agent is responsible for preparing the syndicate annual accounts in accordance with applicable law and regulation.
The 2008 Regulations require the managing agent to prepare syndicate annual accounts as at 31 December each year in accordance
with UK accounting standards and applicable law (“UK GAAP”). The syndicate annual accounts are required by law to give a true and
fair view of the state of affairs of the syndicate at that date and its profit or loss for that year.
The managing agent is also responsible for preparing the accounts in accordance with the Lloyd’s Syndicate Accounts Instructions
version 3.1 as modified by the Frequently Asked Questions version 1.1 issued by Lloyd’s, which includes the preparation and review of
the iXBRL tagging that has been applied to the syndicate annual accounts.
In preparing the syndicate annual accounts, the managing agent is required to:
•
select suitable accounting policies and then apply them consistently;
•
state whether applicable United Kingdom accounting standards have been followed, subject to any material departures disclosed
and explained in the notes to the syndicate annual accounts;
•
make judgements and accounting estimates that are reasonable and prudent; and
•
prepare the syndicate annual accounts on the basis that the syndicate will continue to write future business unless it is inappropriate
to presume the syndicate will do so.
The managing agent is responsible for safeguarding the assets of the syndicate and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities.
The managing agent is also responsible for keeping adequate accounting records that are sufficient to show and explain the syndicate’s
transactions and disclose with reasonable accuracy at any time the financial position of the syndicate and enable it to ensure that the
syndicate annual accounts comply with the 2008 Regulations.
The managing agent is responsible for the maintenance and integrity of the company’s website. Legislation in the United Kingdom
governing the preparation and dissemination of syndicate annual accounts may differ from legislation in other jurisdictions.
Argenta Syndicate 6134
13
Independent auditors’ report to the member of Syndicate 6134
Report on the audit of the syndicate annual accounts
Opinion
In our opinion, 6134’s syndicate annual accounts:
•
give a true and fair view of the state of the syndicate’s affairs as at 31 December 2025 and of its profit and cash flows for the year
then ended;
•
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom
Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and
applicable law); and
•
have been prepared in accordance with the requirements of The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate
Accounts) Regulations 2008 and the requirements within the Lloyd’s Syndicate Accounts Instructions version 3.1 as modified by
the Frequently Asked Questions issued by Lloyd’s version 1.1 (“the Lloyd’s Syndicate Instructions”).
We have audited the syndicate annual accounts included within the Report and Annual Accounts (the “Annual Report”), which comprise:
the Statement of financial position as at 31 December 2025; the Income statement: technical account – general business, the Income
statement: non-technical account, the Statement of cash flows, and the Statement of changes in members’ balances for the year then
ended; and the notes to the syndicate annual accounts, which include a description of the significant accounting policies.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”), The Insurance Accounts Directive
(Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008, the Lloyd’s Syndicate Instructions and applicable law. Our
responsibilities under ISAs (UK) are further described in the Auditors’ responsibilities for the audit of the syndicate annual accounts
section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Independence
We remained independent of the syndicate in accordance with the ethical requirements that are relevant to our audit of the syndicate annual
accounts in the UK, which includes the FRC’s Ethical Standard, as applicable to other entities of public interest, and we have fulfilled our other
ethical responsibilities in accordance with these requirements.
To the best of our knowledge and belief, we declare that non-audit services prohibited by the FRC’s Ethical Standard were not provided.
Other than those disclosed in note 4, we have provided no non-audit services to the syndicate in the period under audit.
Conclusions relating to going concern
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that,
individually or collectively, may cast significant doubt on the syndicate’s ability to continue as a going concern for a period of at least
twelve months from when the syndicate annual accounts are authorised for issue.
In auditing the syndicate annual accounts, we have concluded that the Managing Agent’s use of the going concern basis of accounting
in the preparation of the syndicate annual accounts is appropriate.
However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the syndicate's ability to
continue as a going concern.
Our responsibilities and the responsibilities of the Managing Agent with respect to going concern are described in the relevant sections
of this report.
Argenta Syndicate 6134
14
Reporting on other information
The other information comprises all of the information in the Annual Report other than the syndicate annual accounts and our auditors’
report thereon. The Managing Agent is responsible for the other information. Our opinion on the syndicate annual accounts does not
cover the other information and, accordingly, we do not express an audit opinion or, except to the extent otherwise explicitly stated in
this report, any form of assurance thereon.
In connection with our audit of the syndicate annual accounts, our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent with the syndicate annual accounts or our knowledge obtained in the
audit, or otherwise appears to be materially misstated. If we identify an apparent material inconsistency or material misstatement, we
are required to perform procedures to conclude whether there is a material misstatement of the syndicate annual accounts or a material
misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of
this other information, we are required to report that fact. We have nothing to report based on these responsibilities.
With respect to the Managing Agent’s Report (the “Managing Agent’s Report”), we also considered whether the disclosures required by
The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 have been included.
Based on our work undertaken in the course of the audit, The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate
Accounts) Regulations 2008 requires us also to report certain opinions and matters as described below.
Managing Agent’s Report
In our opinion, based on the work undertaken in the course of the audit, the information given in the Managing Agent’s Report for the
year ended 31 December 2025 is consistent with the syndicate annual accounts and has been prepared in accordance with applicable
legal requirements.
In light of the knowledge and understanding of the syndicate and its environment obtained in the course of the audit, we did not identify
any material misstatements in the Managing Agent’s Report.
Responsibilities for the syndicate annual accounts and the audit
Responsibilities of the Managing Agent for the syndicate annual accounts
As explained more fully in the Statement of Managing Agent’s Responsibilities, the Managing Agent is responsible for the preparation of the
syndicate annual accounts in accordance with the applicable framework and for being satisfied that they give a true and fair view. The
Managing Agent is also responsible for such internal control as they determine is necessary to enable the preparation of syndicate annual
accounts that are free from material misstatement, whether due to fraud or error.
In preparing the syndicate annual accounts, the Managing Agent is responsible for assessing the syndicate’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless it is intended for
the syndicate to cease operations, or it has no realistic alternative but to do so.
Auditors’ responsibilities for the audit of the syndicate annual accounts
Our objectives are to obtain reasonable assurance about whether the syndicate annual accounts as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these syndicate annual accounts.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our
procedures are capable of detecting irregularities, including fraud, is detailed below.
Argenta Syndicate 6134
15
Auditors’ responsibilities for the audit of the syndicate annual accounts continued
Based on our understanding of the syndicate and industry, we identified that the principal risks of non-compliance with laws and
regulations related to breaches of regulatory principles, such as those governed by the Prudential Regulation Authority and the Financial
Conduct Authority, and those regulations set by the Council of Lloyd’s, and we considered the extent to which non-compliance might
have a material effect on the syndicate annual accounts. We also considered those laws and regulations that have a direct impact on
the syndicate annual accounts such as The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations
2008 and the Lloyd’s Syndicate Instructions. We evaluated management’s incentives and opportunities for fraudulent manipulation of
the syndicate annual accounts (including the risk of override of controls), and determined that the principal risks were related to the risk
of fraud in revenue recognition and management override of controls, including the potential for management bias in significant
accounting estimates, particularly in relation to insurance contract technical provisions and estimates of future premiums. Audit
procedures performed by the engagement team included:
•
Discussions with the Board, management and compliance function of the Managing Agent, including consideration of known or
suspected instances of fraud and non-compliance with laws and regulations;
•
Reviewing relevant meeting minutes, including those of the Board and Audit Committee of the Managing Agent, and
correspondence with regulatory authorities, including Lloyd’s of London, the Prudential Regulation Authority and the Financial
Conduct Authority;
•
Testing and challenging where appropriate the assumptions and judgements made by management in their significant accounting
estimates, particularly in relation to insurance contract technical provisions and the estimates of future premiums;
•
Identifying and testing journal entries based on risk criteria; and
•
Designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-
compliance with laws and regulations that are not closely related to events and transactions reflected in the syndicate annual accounts.
Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as
fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities for the audit of the syndicate annual accounts is located on the FRC’s website at:
www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors’ report.
Use of this report
This report, including the opinions, has been prepared for and only for the syndicate’s members as a body in accordance with part 2 of
The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 and for no other purpose. We do not,
in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or
into whose hands it may come save where expressly agreed by our prior consent in writing.
Other required reporting
Under The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 we are required to report to you
if, in our opinion:
•
we have not obtained all the information and explanations we require for our audit; or
•
adequate accounting records have not been kept by the Managing Agent in respect of the syndicate; or
•
certain disclosures of Managing Agent remuneration specified by law are not made; or
•
the syndicate annual accounts are not in agreement with the accounting records.
We have no exceptions to report arising from this responsibility.
Argenta Syndicate 6134
16
Other Matter
We draw attention to the fact that this report may be included within a document to which iXBRL tagging has been applied. This
auditors’ report provides no assurance over whether the iXBRL tagging has been applied in accordance with section 2 of the Lloyd’s
Syndicate Instructions version 3.1.
Deepti Vohra (Senior statutory auditor)
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
London
18 February 2026
Argenta Syndicate 6134
17
Income Statement: Technical Account – General Business
for the year ended 31 December 2025
All items relate only to continuing operations.
| 2025 | 2024 | ||||
Notes | £’000 | £’000 | £’000 | £’000 | |
Earned premiums, net of reinsurance | |||||
Gross premiums written | 2 | ||||
Outward reinsurance premiums | |||||
Net premiums written | |||||
Change in the provision for unearned premiums | |||||
Gross amount | ( | ( | |||
| Reinsurers’ share | |||||
Change in the net provision for unearned premiums | ( | ( | |||
Earned premiums, net of reinsurance | |||||
Allocated investment return transferred from the non-technical account | |||||
Claims incurred, net of reinsurance | |||||
Claims paid | |||||
Gross amount | ( | ( | |||
| Reinsurers’ share | |||||
Net claims paid | ( | ( | |||
Change in the provision for claims | |||||
Gross amount | ( | ( | |||
| Reinsurers’ share | |||||
Change in the net provisions for claims | ( | ( | |||
| Claims incurred, net of reinsurance | ( | ( | |||
Net operating expenses | 4 | ( | ( | ||
Balance on the technical account for general business |
Argenta Syndicate 6134
18
Income Statement: Non-Technical Account
for the year ended 31 December 2025
| 2025 | 2024 | |
| £’000 | £’000 | |
Balance on the general business technical account | ||
Income from other financial investments | ||
Total investment return | ||
Allocated investment return transferred to the general business technical account | ( | ( |
Exchange losses | ( | ( |
Profit for the financial year | ||
Total comprehensive income |
There is no other comprehensive income in the accounting period other than that dealt with in the technical and non-technical accounts.
Accordingly, a separate statement of comprehensive income has not been presented.
Argenta Syndicate 6134
19
Statement of Changes in Member’s Balances
for the year ended 31 December 2025
| 2025 | 2024 | ||
Notes | £’000 | £’000 | |
At 1 January | |||
Profit for the financial year | |||
| Payments of profit to member’s personal reserve fund | 12 | ( | ( |
Cash calls on open underwriting years | 12 | ||
| Member’s agent’s fees | ( | ( | |
Other | ( | ||
At 31 December |
Argenta Syndicate 6134
20
Statement of Financial Position
as at 31 December 2025
| 2025 | 2024 | ||||
Notes | £’000 | £’000 | £’000 | £’000 | |
ASSETS | |||||
Investments | |||||
Financial investments | 8 | ||||
Total investments | |||||
| Reinsurers’ share of technical provisions | |||||
Provision for unearned premiums | 11 | ||||
Claims outstanding | 11 | ||||
| Debtors | |||||
Debtors arising out of reinsurance operations | 9 | ||||
Other debtors | 10 | ||||
Cash and other assets | |||||
| Cash at bank and in hand | |||||
Prepayments and accrued income | |||||
Accrued interest | |||||
Deferred acquisition costs | 11 | ||||
| Other prepayments and accrued income | |||||
TOTAL ASSETS |
Argenta Syndicate 6134
21
Statement of Financial Position
as at 31 December 2025 continued
The syndicate annual accounts on pages 17 to 49 were approved by the board of Argenta Syndicate Management Limited on
18 February 2026 and were signed on its behalf by
Nicholas J Moore
Managing Director
| 2025 | 2024 | ||||
Notes | £’000 | £’000 | £’000 | £’000 | |
| MEMBER’S BALANCES AND LIABILITIES | |||||
| Member’s balances | |||||
Total capital and reserves | |||||
Technical provisions | |||||
Provision for unearned premiums | 11 | ||||
Claims outstanding | 11 | ||||
Creditors | |||||
Creditors arising out of reinsurance operations | |||||
Other creditors | |||||
| Accruals and deferred income | |||||
Total liabilities | |||||
| TOTAL MEMBER’S BALANCES AND LIABILITIES |
Argenta Syndicate 6134
22
Statement of Cash Flows
for the year ended 31 December 2025
| 2025 | 2024 | ||
Notes | £’000 | £’000 | |
Profit on ordinary activities | |||
Increase in unearned premiums and outstanding claims | |||
Increase in debtors | ( | ( | |
Increase in creditors | |||
Investment return | ( | ( | |
Movements in other assets/liabilities | |||
Exchange differences | |||
Net cash inflow from operating activities | |||
Investing activities | |||
Purchase of equity and debt instruments | |||
Sale of equity and debt instruments | |||
Investment income received | |||
Net cash inflow from investing activities | |||
Financing activities | |||
| Payments of profit to member’s personal reserve fund | ( | ( | |
Open year profit release | ( | ( | |
| Cash calls made from the member’s personal reserve fund | |||
Other | ( | ( | |
Net cash outflow from financing activities | ( | ( | |
Increase/(decrease) in cash and cash equivalents | ( | ||
Cash and cash equivalents at 1 January | |||
Cash and cash equivalents at 31 December | 14 |
Argenta Syndicate 6134
23
Notes to the Accounts
1.
Accounting policies
1.1
Statement of compliance
The financial statements have been prepared in compliance with the 2008 Regulations and FRS 102 and FRS 103, being applicable
UK GAAP accounting standards, and in accordance with the provisions of Schedule 3 of the Large and Medium-sized Companies and
Groups (Accounts and Reports) Regulations 2008 relating to insurance companies. They have also been prepared in accordance with
the Lloyd’s Syndicate Accounts Instructions Version 3.1 as modified by the Frequently Asked Questions version 1.1 issued by Lloyd’s.
The financial statements are prepared under the historical cost convention except for certain financial instruments which are
measured at fair value.
1.2
Basis of preparation
The premiums written by the syndicate under the quota reinsurance share contracts with Syndicate 2121, as host syndicate, are gross
premiums written by Syndicate 2121 less the cost of specific reinsurance contracts that protect the gross exposure of Syndicate 2121
and which the syndicate has the benefit of. Accordingly, premiums reported in the annual accounts are stated net of the cost of the
applicable reinsurance purchased by Syndicate 2121 and claims are ceded from Syndicate 2121 net of applicable reinsurance
recoveries. The syndicate has not purchased any additional reinsurance on its own account.
The financial statements for the year ended 31 December 2025 were approved for issue by the board of directors on 18 February
2026.
The financial statements are prepared in sterling which is the functional and presentational currency of the syndicate and rounded to the
nearest £’000.
1.3
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the
amounts reported for assets and liabilities as at the year-end date and the amounts reported for revenues and expenses during the
year. However, the nature of estimation means that actual outcomes could differ from those estimates. The syndicate’s key sources of
estimation uncertainty are as follows:
Insurance contract technical provisions
For insurance contracts, estimates have to be made both for the expected ultimate cost of claims reported at the reporting date and for
the expected ultimate cost of claims incurred but not yet reported (“IBNR”) at the reporting date. It can take a significant period of time
before the ultimate claims cost can be established with certainty and for some types of policies, claims IBNR form the majority of the
liability in the statement of financial position.
The ultimate cost of outstanding claims is estimated by using a range of standard actuarial claims projection techniques, such as Chain
Ladder and Bornhuetter-Ferguson methods.
Argenta Syndicate 6134
24
Notes to the Accounts
continued
1.
Accounting policies continued
The main assumption underlying these techniques is that past claims development experience can be used to project future claims
development and hence ultimate claims costs. The provision for claims outstanding is based on the estimated ultimate cost of all
claims notified but not settled by the year-end date assessed on an individual case basis, together with the provision for related claims
handling costs. The provision also includes the estimated cost of claims IBNR at the year-end date based on statistical methods.
Analysis of amounts for claims notified and claims incurred but not reported is provided in note 11.
These methods generally involve projecting from past experience the development of claims over time to form a view of the likely
ultimate claims to be experienced for more recent underwriting, having regard to variations in the business accepted and the
underlying terms and conditions. For the most recent years, where a high degree of volatility arises from projections, estimates may be
based in part on output from rating and other models of the business accepted and assessments of underwriting conditions. The
amount of salvage and subrogation recoveries is separately identified and, where material, reported as an asset.
Similar judgements, estimates and assumptions are employed in the assessment of adequacy of provisions for unearned premiums.
Judgement is also required in determining whether the pattern of insurance service provided by a contract requires amortisation of
unearned premiums on a basis other than time apportionment.
Estimates of future premiums
For certain insurance contracts, premium is initially recognised based on estimates of ultimate premiums. These estimates are
judgmental and could result in misstatements of revenue being recorded in the financial statements.
The main assumption underlying these estimates is that past premium development can be used to project future premium
development.
1.4
Significant accounting policies
Funds withheld
The syndicate operates on a “funds withheld basis” and primarily operates its own bank account for the purpose of settling direct
expenses.
Financial investments
As permitted by FRS 102, the syndicate has elected to apply the recognition and measurement provisions of sections 11 and 12 in full
to account for all of its financial instruments.
Financial assets and financial liabilities are recognised when the syndicate becomes a party to the contractual provisions of the
instrument.
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial
assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price
excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing
transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of
interest for a similar debt instrument.
Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.
Argenta Syndicate 6134
25
Notes to the Accounts
Continued
1.
Accounting policies continued
Derivative financial instruments
The syndicate uses derivative financial instruments to reduce exposure to foreign exchange risk and interest rate movements. The syndicate
does not hold or issue derivative financial instruments for speculative purposes. Derivatives are initially recognised at fair value at the
date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date. The resulting gain or
loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event
the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
Cash and cash equivalents
For the purpose of the cash flow statement, cash and cash equivalents comprise cash at banks and in hand and short term deposits
with an original maturity date of three months or less, net of outstanding bank overdrafts.
Fair value of financial assets
The syndicate uses the following hierarchy for determining the fair value of financial instruments by valuation technique:
•
Level 1: The unadjusted quoted price in an active market for identical assets or liabilities that the entity can access at the
measurement date.
•
Level 2: Inputs other than quoted prices included within Level 1 that are observable (i.e. developed using market data) for the
asset or liability, either directly or indirectly.
•
Level 3: Inputs are unobservable (i.e. for which market data is unavailable) for the asset or liability.
Impairment of financial assets
For financial assets not held at fair value through profit or loss, the syndicate assesses at each reporting date whether the financial
asset or group of financial assets is impaired. The syndicate first assesses whether objective evidence of impairment exists for financial
assets. If it is determined that no objective evidence of impairment exists for an individually assessed financial asset, the asset is
included in a group of financial assets with similar credit risk characteristics and that group of financial assets is collectively assessed
for impairment. Assets that are individually assessed for impairment and for which an impairment loss is or continues to be recognised
are not included in the collective assessment of impairment.
Derecognition of financial assets
A financial asset or, when applicable, a part of a financial asset is derecognised when:
•
The rights to the cash flows from the asset have expired; or
•
The syndicate retains the right to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full
without material delay to a third party under a ‘pass–through’ arrangement and either (a) the syndicate has transferred
substantially all the risks and rewards of the asset; or (b) the syndicate has neither transferred nor retained substantially all the
risks and rewards of the asset, but has transferred control of the asset.
When the syndicate has transferred its right to receive cash flows from an asset or has entered into a pass-through arrangement, and
has neither transferred nor retained substantially all the risks and rewards nor transferred control of the asset, the asset is recognised
to the extent of the syndicate’s continuing involvement in the asset. Continuing involvement that takes the form of a guarantee over
the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration
that the syndicate could be required to repay. In that case, the syndicate also recognises an associated liability.
Offsetting of financial instruments
Financial assets and financial instruments are offset and the net amount is reported in the statement of financial position if, and only if:
•
There is a currently enforceable legal right to offset the recognised amounts; and
•
There is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.
Argenta Syndicate 6134
26
Notes to the Accounts
Continued
1.
Accounting policies continued
Financial liabilities
The syndicate’s financial liabilities include trade and other payables, borrowings, insurance payables and derivative financial
instruments, where applicable. All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings, net
of directly attributable transaction costs.
Trade and other payables and loans and borrowings are subsequently measured at amortised cost using the effective interest rate (“EIR”)
method. Gains and losses are recognised in the income statement when the liabilities are derecognised as well as through the EIR
method amortisation process.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the
EIR. The EIR amortisation is included in investment return in the profit or loss.
Derivative financial liabilities are subsequently measured at fair value through profit or loss. A financial liability is derecognised when the
obligation under the liability is discharged or expires. When an existing financial liability is replaced by another from the same lender
on substantially different terms, or the terms of the existing liability are substantially modified, such an exchange or modification is
treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective amounts is
recognised in profit or loss.
Investment return
Dividends are recognised when the investments to which they relate are declared ‘ex-dividend’. Interest income is recognised on a time
proportionate basis taking into account effective interest yield.
Unrealised and realised gains and losses on financial investments are recognised based on the appropriate classification of financial
investments and are covered in detail under the accounting policy for financial investments.
An allocation of actual investment return on investments supporting the general insurance technical provisions and associated
member’s balance is made from the non-technical account to the technical account. Investment return related to non-insurance
business and member’s balance is attributed to the non-technical account. Investment return has been wholly allocated to the
technical account as all investments relate to the technical account.
Insurance contracts – product classification
Insurance contracts are those contracts when the syndicate (the insurer/reinsurer) has accepted significant insurance risk from
another party (the policyholder/reinsured) by agreeing to compensate the policyholder/reinsured if a specified uncertain future event
(the re/insured event) adversely affects the policyholder/reinsured. As a general guideline, the syndicate determines whether it has
significant insurance risk, by comparing benefits paid with benefits payable if the re/insured event did not occur. Insurance contracts
can also transfer financial risk.
Once a contract has been classified as an insurance contract, it remains an insurance contract for the remainder of its lifetime, even if the
insurance risk reduces significantly during this period, unless all rights and obligations are extinguished or expire.
Any separable embedded derivatives within an insurance contract are separated and accounted for in accordance with sections 11
and 12 of FRS102 unless the embedded derivative is itself an insurance contract (i.e. the derivative is not separated if the policyholder
benefits from the derivative only when the insured event occurs).
Argenta Syndicate 6134
27
Notes to the Accounts
Continued
1.
Accounting policies continued
Premiums written
Syndicate 6134 solely writes quota share reinsurances of business written by Syndicate 2121. Gross written premiums comprise the
syndicate’s share of total premiums receivable by Syndicate 2121, net of reinsurance purchased by Syndicate 2121 where applicable,
for the whole period of cover provided by the contracts entered into during the reporting period by Syndicate 2121. These include any
adjustments arising in the reporting period to such premiums receivable in respect of business written in prior reporting periods. This
is regardless of whether these are wholly due for payment in the reporting period. They are recognised on the date on which the policy
written or reinsurance purchased by Syndicate 2121 commences. Additional or return premiums are treated as a remeasurement of the
initial premium. Gross written premiums are stated gross of brokerage payable and exclude taxes and duties levied on them.
Written premiums include an estimate for pipeline premiums (i.e. premiums written but not reported to the syndicate by the reporting
date) relating only to those underlying contracts of insurance where the period of cover has commenced with Syndicate 2121 prior to
the reporting date. The most significant assumption in this estimate is that current experience will be consistent with prior year
experience.
Under some policies, written premiums are adjusted retrospectively in the light of claims experience or where the risk covered cannot
be assessed accurately at the commencement of cover. Where written premiums are subject to an increase retrospectively, potential
increases are recognised as follows:
•
In respect of the policies underwritten by Syndicate 2121, the increase is deferred until the additional amount can be ascertained
with reasonable certainty; and
•
In respect of reinsurance purchased by Syndicate 2121, the increase is recognised as soon as there is an obligation to the
reinsurer.
Where written premiums are subject to a reduction, a remeasurement taking account of such a reduction is made as soon as there is
an obligation to the policyholder or deferred until the reduction in the amount due to the reinsurer can be ascertained with reasonable
certainty.
Profit commission
Profit commission is charged by the managing agent at a rate of 17.5% of the profit on a year of account basis subject to the operation
of a deficit clause. This is charged to the syndicate as incurred but does not become payable until after the appropriate year of
account closes, normally at 36 months, although the managing agent may receive payments on account of anticipated profit
commissions in line with interim profits released to the member.
Claims
Gross claims include the syndicate’s share of Syndicate 2121 claims occurring during the year, whether reported or not; related
internal and external claims handling costs that are directly related to the processing and settlement of claims; a reduction for the value
of salvage and other recoveries; and any adjustments to claims outstanding from previous years. These amounts are ceded from
Syndicate 2121 net of relevant reinsurance that is applicable when the related gross insurance claim is recognised.
Argenta Syndicate 6134
28
Notes to the Accounts
Continued
1.
Accounting policies continued
Technical
provisions
Technical provisions comprise claims outstanding, provisions for unearned premiums and provisions for unexpired risks.
Claims outstanding
The outstanding claims provision is based on the syndicate’s share of the Syndicate 2121 estimated ultimate cost of all claims
incurred at the reporting date, whether reported or not, together with related claims handling costs and reduction for the expected
value of salvage and other recoveries. Delays can be experienced in the notification and settlement of certain types of claims,
therefore the ultimate cost of these cannot be known with certainty at the reporting date. The liability is calculated at the reporting date
using a range of standard actuarial claim projection techniques, based on empirical data and current assumptions that may include a
margin for adverse deviation. The liability is not discounted for the time value of money. The claims provision is recognised net of the
applicable reinsurer’s share of provisions for claims in Syndicate 2121.
Provisions for unearned premiums
Unearned premiums are those proportions of premiums written in a year that relate to periods of risk after the reporting date. In
respect of general insurance business, written premiums are recognised as earned over the period of the policy on a time
apportionment basis having regard, where appropriate, to the incidence of risk. Reinsurance purchased by Syndicate 2121 is deferred
over the term of the underlying direct insurance policies for risks attaching contracts and over the term of the reinsurance contract for
losses occurring contracts. The proportion attributable to subsequent periods is deferred as a provision for unearned premiums.
Unexpired risks
A liability adequacy provision (the unexpired risks provision) is made where the cost of claims and expenses arising after the end of the
financial year from contracts concluded before that date is expected to exceed the provision for unearned premiums, net of deferred
acquisition costs.
The assessment of whether a provision is necessary is made by considering separately each category of business on the basis of
information available at the reporting date, after offsetting surpluses and deficits arising on products which are managed together.
Investment income is taken into account in calculating the provision.
At 31 December 2025 and 31 December 2024 the syndicate did not have an unexpired risks provision.
Deferred acquisition costs
Acquisition costs take account of the syndicate’s share of the Syndicate 2121 acquisition costs arising from the conclusion of
insurance contracts. They include both direct costs, such as intermediary commissions or the cost of drawing up the insurance
document or including the insurance contract in the portfolio, and overriding commissions and profit commissions payable to
Syndicate 2121 under the quota share reinsurance agreements.
Deferred acquisition costs are costs arising from the conclusion of insurance contracts that are incurred during the reporting period but
which relate to a subsequent reporting period and which are carried forward to subsequent reporting periods.
Deferred acquisition costs are amortised over the period in which the related premiums are earned.
Argenta Syndicate 6134
29
Notes to the Accounts
Continued
1.
Accounting policies continued
Insurance receivables
Insurance receivables relate to the funds withheld in respect of the business ceded by Syndicate 2121 and are recognised when due
and measured on initial recognition at the fair value of the consideration received or receivable. Subsequent to initial recognition,
insurance receivables are measured at amortised cost. The carrying value of insurance receivables is reviewed for impairment
whenever events or circumstances indicate that the carrying amount may not be recoverable, with the impairment loss recorded in the
income statement.
Insurance receivables are derecognised when the derecognition criteria for financial assets have been met.
Insurance payables
Insurance payables are recognised when due and measured on initial recognition at the fair value of the consideration received less
directly attributable transaction costs. Subsequent to initial recognition, they are measured at amortised cost using the EIR method.
Insurance payables are derecognised when the obligation under the liability is settled, cancelled or expired.
Foreign currencies
The syndicate’s functional currency and presentational currency is sterling. Transactions denominated in currencies other than the
functional currency are initially recorded in the functional currency at the exchange rate ruling at the date of the transactions or at an
approximate average rate.
Monetary assets and liabilities (which include all assets and liabilities arising from insurance contracts including unearned premiums
and deferred acquisition costs) denominated in foreign currencies are retranslated into the functional currency at the exchange rate
ruling on the reporting date.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate as at
the date of the initial transaction and are not subsequently restated. Non-monetary items denominated in a foreign currency,
measured at fair value, are translated into the functional currency using the exchange rate ruling at the date when the fair value was
determined.
Exchange differences are recorded in the non-technical account.
Taxation
Under Schedule 19 of the Finance Act 1993 managing agents are not required to deduct basic rate income tax from trading income. In
addition, any UK basic rate income tax deducted from syndicate investment income is recoverable by managing agents and
consequently the distribution made to the member or their member’s agent is gross of tax. Capital appreciation falls within trading
income and is also distributed gross of tax.
No provision has been made for any United States Federal Income Tax payable on underwriting results or investment earnings. Any
payments on account made by the syndicate are included in the statement of financial position under the heading ‘other debtors’.
No provision has been made for any overseas tax payable by the member on underwriting results.
Pension costs
Pension contributions relating to a defined contribution scheme and charged to the syndicate are included within net operating
expenses.
Argenta Syndicate 6134
30
Notes to the Accounts
Continued
2.
Particulars of business written
Type of business
An analysis of the technical account balance before investment return is set out below:
2025
Gross
premiums
written
Gross
premiums
earned
Gross
claims
incurred
Gross
operating
expenses*
Reinsurance
balance
Total
£’000
£’000
£’000
£’000
£’000
£’000
Reinsurance
acceptances
(52,708 )
(51,745 )
Total
(52,708 )
(51,745 )
Gross
premiums
written
Gross
premiums
earned
Gross
claims
incurred
Gross
operating
expenses*
Reinsurance
balance
Total
£’000
£’000
£’000
£’000
£’000
£’000
Reinsurance
acceptances
(57,599 )
(60,263 )
Total
(57,599 )
(60,263 )
*Gross operating expenses are the same as net operating expenses shown in the income statement, as no commissions in respect of
outward reinsurance were offset in arriving at the net operating expenses.
All premiums were concluded in the UK. The syndicate solely writes quota share reinsurances of business written by Syndicate 2121 that
operates within the Lloyd’s of London insurance market.
3.
Movement in prior year’s provision for claims outstanding
An overall improvement of £9.1 million on prior years’ provisions was experienced during the year. This is due to improvements of
£4.9 million on casualty reinsurance, £3.1 million on property reinsurance, and £1.1 million on marine reinsurance.
(2024: An overall improvement of £12.5 million on prior years’ provisions was experienced during the year. This is due to
improvements of £7.7 million on casualty reinsurance, £3.4 million on property reinsurance, and £1.4m on marine reinsurance.)
Argenta Syndicate 6134
31
Notes to the Accounts
Continued
4.
Net operating expenses
| 2025 | 2024 | |
| £’000 | £’000 | |
| Acquisition costs | ||
| Change in deferred acquisition costs | ( | |
| Administrative expenses | ||
| Member’s standard personal expenses | ||
Administrative expenses include:
| 2025 | 2024 | ||
| £’000 | £’000 | ||
| Auditors’ remuneration | - audit of the syndicate accounts | ||
| - other services pursuant to the regulations and Lloyd’s byelaws |
No commissions for direct insurance were accounted for during the year.
Member’s standard personal expenses include managing agent’s fees and profit commission.
5.
Staff numbers and costs
The following amounts were recharged by the managing agency to the syndicate in respect of payroll costs:
| 2025 | 2024 | |
| £’000 | £’000 | |
Wages and salaries | ||
| Social security costs | ||
| Other pension costs | ||
Other short term incentive costs | ||
The average number of employees employed by the managing agency but working for the syndicate during the year was as follows:
| 2025 | 2024 | |
Number | Number | |
Administration and finance | ||
| Underwriting and underwriting support | ||
The staff numbers exclude employees providing services by way of a cross charge from other group companies.
Argenta Syndicate 6134
32
Notes to the Accounts
Continued
6.
Emoluments of the directors of ASML and the active underwriter
| 2025 | 2024 | |
| £’000 | £’000 | |
Emoluments |
ASML charged the syndicate the amounts above in respect of emoluments paid to its directors, including the active underwriter.
No advances or credits granted by ASML to any of its directors subsisted during the year.
7.
Active underwriter emoluments
| 2025 | 2024 | |
| £’000 | £’000 | |
Active underwriter emoluments |
The aggregate remuneration above was charged to the syndicate in respect of the role active underwriter.
8.
Financial investments
2025
Carrying
value
Purchase
price
Listed
£’000
£’000
£’000
Shares and other variable yield securities and units in unit trusts
- designated at fair value through profit or loss
4,953
2024
Carrying
value
Purchase
price
Listed
£’000
£’000
£’000
Shares and other variable yield securities and units in unit trusts
- designated at fair value through profit or loss
3,510
The shares and other variable yield securities and units in unit trusts relate to holdings in highly diversified collective investment
schemes.
There was no material change in fair value for financial instruments held at fair value attributable to own credit risk in the current
period.
There have been no day one profits recognised in respect of financial instruments designated at fair value through profit or loss.
Argenta Syndicate 6134
33
Notes to the Accounts
Continued
8.
Financial investments continued
The following table shows financial investments recorded at fair value analysed between the three levels in the fair value hierarchy.
| 2025 | Level 1 | Level 2 | Level 3 | Total |
| £’000 | £’000 | £’000 | £’000 | |
Shares and other variable yield securities and units in unit trusts - designated at fair value through profit or loss | | | ||
| | |
| 2024 | Level 1 | Level 2 | Level 3 | Total |
| £’000 | £’000 | £’000 | £’000 | |
Shares and other variable yield securities and units in unit trusts - designated at fair value through profit or loss | | | ||
| | |
Included in the level 1 category are financial assets that are measured by reference to published quotes in an active market. A
financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange,
dealer, broker, industry syndicate, pricing service or regulatory agency and those prices represent actual and regularly occurring
market transactions on an arm’s length basis.
The level 2 category would include financial assets measured using a valuation technique based on assumptions that are supported by
prices from observable current market transactions. For example, assets for which pricing is obtained via pricing services but where
prices have not been determined in an active market, financial assets with fair values based on broker quotes, investments in private
equity funds with fair values obtained via fund managers and assets that are valued using the syndicate’s own models whereby the
significant inputs into the assumptions are market observable.
The level 3 category would include financial assets measured using a valuation technique (model) based on assumptions that are neither
supported by prices from observable current market transactions in the same instrument nor based on available market data. Therefore,
unobservable inputs would reflect the syndicate’s own assumptions about the assumptions that market participants would use in pricing
the asset or liability (including assumptions about risk). These inputs would be developed based on the best information available, which
might include the syndicate’s own data.
9.
Debtors arising out of reinsurance operations
| 2025 | 2024 | |
| £’000 | £’000 | |
| Amounts falling due within one year – Syndicate 2121 | ||
| Amounts falling due after one year – Syndicate 2121 | ||
Argenta Syndicate 6134
34
Notes to the Accounts
Continued
10. Other debtors
| 2025 | 2024 | |
| £’000 | £’000 | |
Inter syndicate balances | ||
Other | ||
11. Technical provisions
Claims outstanding
2025
2024
Gross
Reinsurers’
share
Net
Gross
Reinsurers’
share
Net
£’000
£’000
£’000
£’000
£’000
£’000
At 1 January
Claims incurred during the
year
Change in prior year
provisions
(9,085 )
(9,085 )
(12,473 )
(12,473 )
Claims paid during the year
(34,413 )
(34,413 )
(40,749 )
(40,749 )
Foreign exchange
(10,640 )
(10,640 )
(1,189 )
(1,189 )
At 31 December
Claims reported
94,878
-
94,878
82,154
-
82,154
Claims incurred but not
reported
144,591
-
144,591
149,660
-
149,660
At 31 December
239,469
-
239,469
231,814
-
231,814
Provision for unearned premiums
2025
2024
Gross
Reinsurers’
share
Net
Gross
Reinsurers’
share
Net
£’000
£’000
£’000
£’000
£’000
£’000
At 1 January
Premiums written in the year
Premiums earned in the year
(125,498 )
(125,498 )
(140,972 )
(140,972 )
Foreign exchange
(3,606 )
(3,606 )
(474 )
(474 )
At 31 December
Argenta Syndicate 6134
35
Notes to the Accounts
Continued
11. Technical provisions
continued
.
12.
Reconciliation of member’s balance
Payments of profit to the member’s personal reserve fund relates to distributions of £23.6 million in respect of the 2022 year of
account and £4.9 million in respect of the 2023 year of account. An open year cash call of £4.5 million was made on the 2025 year
of account to provide working capital for the syndicate. No losses were collected in relation to distribution on closure of an
underwriting year. (2024: Payments of profit to the member’s personal reserve fund relates to distributions of £26.7 million in respect
of the 2021 year of account and £2.9 million in respect of the 2022 year of account. An open year cash call of £3.5 million was made
on the 2024 year of account to provide working capital for the syndicate. No losses were collected in relation to distribution on
closure of an underwriting year). The member’s results on closed years of account are determined without reference to whether they
are earned.
13.
Other creditors
| 2025 | 2024 | |
| £’000 | £’000 | |
Other liabilities | ||
14.
Cash and cash equivalents
| 2025 | 2024 | |
| £’000 | £’000 | |
Cash at bank and in hand | ||
Short term deposits with financial institutions | ||
15.
Off balance sheet items
The syndicate has not been party to an arrangement which is not reflected in its statement of financial position, where material risks
or benefits arise for the syndicate.
Deferred acquisition costs
2025
2024
Gross
Reinsurers’
share
Net
Gross
Reinsurers’
share
Net
£’000
£’000
£’000
£’000
£’000
£’000
At 1 January
Incurred deferred acquisition
costs
Amortised deferred
acquisition costs
(44,849 )
(44,849 )
(53,000 )
(53,000 )
Foreign exchange
(1,108 )
(1,108 )
(240 )
(240 )
At 31 December
Argenta Syndicate 6134
36
Notes to the Accounts
Continued
16.
Foreign exchange rates
The following currency exchange rates have been used for transactions in principal foreign currencies:
17.
Related parties
Argenta Holdings Limited
ASML manages syndicates 6134 and 2121 and is a wholly owned subsidiary of AHL, which owns 100% of the voting and economic
rights of ASML. AHL is regarded by ASML as its immediate parent undertaking. Copies of the financial statements for AHL and
ASML can be obtained from Companies House.
AHL is wholly owned by Hannover Re, which is the smallest group to consolidate the financial statements of ASML. Its financial
statements can be obtained from its registered office address at Karl-Wiechert-Allee 50, 30625 Hannover, Germany. The parent
undertaking of Hannover Re is Talanx AG which holds a 50.2% interest in the company. The principal shareholder in Talanx AG is
HDI Haftpflichtverband der Deutschen lndustrie V.a.G. (“HDI”) which holds approximately 76.7% of Talanx AG’s issued share
capital.
AHL and its related parties provide certain underwriting, administrative, accounting, human resources, information technology, risk
management, compliance, legal and internal audit services to ASML. These services are provided on a non-profit making basis by
way of inter-group cross charges and direct salary charges.
Argenta Private Capital Limited (“APCL”), an AHL group company, provides taxation services to the syndicate in respect of which it
receives a fee. Fees are agreed on a commercial basis and the profit to APCL generated from providing these services is less than
£1,000 (2024: less than £1,000).
AUA, a service company originally approved by Lloyd’s and the Monetary Authority of Singapore (“MAS”), is a subsidiary of AHL
and was established to underwrite business on the Lloyd’s Asia platform in Singapore. AUA ceased underwriting business in 2022
and was de-registered from the MAS in April 2025. AUA had two branch offices in Australia; one located in Sydney and the other on
the Central Coast north of Sydney, in Tuggerah trading under the name of MHIA. In June 2024, the syndicate ceased to underwrite
business from the Sydney office which has been closed. The Tuggerah branch of AUA continued to underwrite on behalf of the
syndicate until 30 June 2025. With effect from 1 July 2025, the business underwritten from the office in Tuggerah was transferred to
a new UK service company owned by AHL, AIL. Such services relating to business written in Singapore were provided at cost plus
a small profit margin of 5% mainly for tax purposes. The total value of the margin in 2025 is less than £100,000 (2024: less than
£100,000).
2025
2024
Start of
period rate
End of
period rate
Average rate
Start of
period rate
End of
period rate
Average rate
Sterling
US dollar
Canadian dollar
Australian dollar
Euro
Japanese yen
Argenta Syndicate 6134
37
Notes to the Accounts
Continued
17.
Related parties continued
The commissions retained by AUA for business attaching during 2025 under coverholder agreements underwritten in Sydney by the
Australian branch prior to cessation, on behalf of Syndicate 2121, were charged at a rate of original acquisition costs plus up to 3%
capped at a maximum commission of 32.5% unless otherwise agreed. Business underwritten by MHIA on behalf of Syndicate 2121
during 2025 was charged commissions of 22.5%. These commissions covered original acquisition costs, branch office expenses and
processing costs. The total commissions payable by Syndicate 2121 were £3.4 million (2024: £10.2 million). These arrangements are in
line with other Australian facilities currently supported by Syndicate 2121.
A profit commission was also payable to AUA in respect of the business underwritten by both the AUA Sydney office and by MHIA.
The total profit commission charged in relation to the Sydney office and MHIA for 2025 was £1.4 million (2024: nil) and £0.7 million
(2024: nil) respectively.
Mr Graham Allen, Mr Sven Althoff, Mr Ian Burford and Mr Nicholas Moore are all directors of AHL. Mr Paul Wilson was appointed a
director of AHL on 11 February 2025. Mr John Whiter was a director of AHL until his retirement on 1 July 2025. Mr Nicholas Moore
is a director of APCL and Mr Graham Allen and Mr Shawn Baggs are both directors of AUA. Mr Nicholas Moore, Mr Graham Allen
and Ms Carol-Ann Burton are all directors of AIL.
Other than by virtue of directorship fees, salaries and other related remuneration in respect of their employment by either AHL or its
related parties none of the directors, officers or related parties concerned, derive any personal benefit from the arrangements that
exist.
Business transactions
Hannover Re
Hannover Re and certain of its subsidiaries and joint ventures have, in the past, provided and are likely to provide in the future,
traditional types of reinsurance protection to Syndicate 2121.
Syndicate 2121 has in the past provided insurance or reinsurance cover to Hannover Re and its subsidiaries and it may do so in the
future.
All such business underwritten and reinsurances purchased have in the past been, and will continue to be, transacted on an arm’s
length commercial basis with no personal benefit derived by the directors, officers or related parties concerned, other than by virtue
of directorship fees, salaries and related remuneration in respect of their employment or by virtue of any increase in capital value
arising on shareholdings.
ASML Directors
Mr Sven Althoff is a member of the Executive Board of Hannover Re and a director of other Hannover Re group companies. He is
also a director of HDI Global Specialty SE (“HGS”).
Mr Shawn Baggs and Mr Niranjan Nathan were appointed as executive directors of ASML on 19 March 2024 and 18 October 2024
respectively.
Ms Rosemary Beaver is a non-executive director of Newline Underwriting Management Limited and Newline Insurance Company
Limited, and is a Lloyd’s enforcement board member.
Mr Ralph Beutter was appointed as a non-executive director of ASML on 1 June 2025. Mr Beutter is a former chairman of HGS and
a former non-executive of HDI Re (Ireland).
Argenta Syndicate 6134
38
Notes to the Accounts
Continued
17.
Related parties continued
Ms Carol-Ann Burton resigned as an executive director of ASML on 12 November 2024. Ms Burton remains with the company as
company secretary.
Mr Gary Powell resigned as a non-executive director on 31 December 2025.
Mrs Miriam Goddard was appointed as a non-executive director of ASML on 24 April 2024. Mrs Goddard is a former joint active
underwriter of Syndicate 1967 and former chief underwriting officer for WR Berkely Corporation. Mrs Goddard joined the LMA
Nominations Committee in June 2025.
Mr Nigel Meyer holds non-executive directorships with First Central Insurance Management Limited, an insurance broker; Amtrust
Specialty Limited, an insurance company; and is an executive director of Heydon Consulting Limited, a consultancy providing
mergers and acquisitions advisory services to the insurance sector. Mr Meyer owns 50% of the shares of Heydon Consulting
Limited.
Ms Anne-Kathrin Saake was appointed as a non-executive director of ASML on 27 November 2024. Ms Saake is the managing
director of the UK and Ireland, Aviation and Marine division within Hannover Re.
Mr Jens Schäfermeier was previously the managing director of the UK and Ireland, Aviation and Marine division within Hannover
Re. Mr Schäfermeier resigned from the Board of ASML on 27 August 2024.
Mr Paul Wilson was appointed as a non-executive director of ASML on 26 February 2025. Mr Wilson is also a director of Unigestion
(UK) Limited.
Mr John Whiter was a director of ASML until his retirement on 1 July 2025. Mr Whiter was a non-executive director of Continuum
Advisory Partners Limited from 16 January 2023 until his resignation on 31 March 2025.
The above entities may in the past have transacted business with syndicates managed by ASML and may do so in the future. Any such
business, however, has been and will continue to be, conducted on an arm’s length commercial basis with no involvement, either directly or
indirectly, from the individuals above.
Other than directorship fees, salaries and other related remuneration and any increase in capital value arising on shareholdings, no
personal benefit is derived by the individuals concerned from these arrangements.
ASML
Total fees payable to ASML in respect of services provided to the syndicate amounted to £1.0 million (2024: £1.0 million). Profit commission
is only due on closure of the year of account although managing agents may receive payments on account of anticipated profit
commissions in line with interim profits released to members. During 2025, £4.2 million (2024: £4.8 million) of profit commission was
charged to Syndicate 6134. Accruals and deferred income at the year-end include amounts accrued in respect of profit commissions due to
ASML of £7.7 million (2024: £9.0 million) including £2.7 million in relation to the 2023 closed year of account payable in 2026.
In addition to this, £1.7 million (2024: £1.5 million) was recharged by ASML for expenses paid on behalf of the syndicate. There were no
creditors at the year-end in relation to amounts due to ASML (2024: £0.5 million).
Argenta Syndicate 6134
39
Notes to the Accounts
Continued
17.
Related parties continued
Capital support for Syndicate 6134
Hannover Re supported Syndicate 6134 for the 2023 to 2026 years of account through Inter Hannover (No.1) Ltd (“IH1”), a wholly
owned subsidiary of the Hannover Re group.
IH1 also participates on Syndicate 2121 for the 2023 to 2026 years of account. Mr Allen and Mr Moore are directors of IH1. Mr
Schäfermeier was appointed a director of IH1 on 26 January 2024 and resigned on 31 December 2024.
APCL allocates capacity to syndicates 6134 and 2121 for the open years of account. It has also allocated capacity to syndicates
6134 and 2121 in respect of the 2026 year of account.
Mr Moore is a director of AU2 and AU3. Mr Allen was a director of AU2 and AU3 until he resigned on 1 September 2025.
AU2 and AU3 participate on Syndicate 2121 for the 2023 to 2026 years of account. AU2 and AU3 are subsidiaries of AHL.
HDI Corporate Member Limited will participate on Syndicate 2121 for the 2026 year of account.
Other than by virtue of directors’ fees, salaries and other related remuneration in respect of their employment and any increase in
capital value arising on shareholdings, none of the directors, officers or related parties concerned derive any personal benefits from
the arrangements that exist.
There are no other transactions or arrangements to be disclosed.
18.
Funds at Lloyd’s
In case syndicate assets prove insufficient to meet the member’s underwriting liabilities, the member is required to hold additional
capital at Lloyd’s which is held in trust and known as Funds at Lloyd’s (“FAL”).
The level of FAL that Lloyd’s requires a member to maintain is determined by Lloyd’s based on PRA requirements and resource
criteria according to the nature and the amount of risk to be underwritten by the member and the assessment of the reserving risk in
respect of business that has been underwritten. FAL is not hypothecated to any specific syndicate participation by a member and
therefore, there are no specific funds available to a syndicate which can be precisely identified as its capital. As such, no amount has
been shown in these annual accounts by way of FAL. However, the managing agent is able to make a call on the member’s FAL to
meet liquidity requirements or to settle losses.
19.
Risk management
Syndicate 6134 writes quota share reinsurances of the host Syndicate 2121. Therefore the risk policies described below are in some
cases implemented at the host level.
Governance framework
The primary objective of the syndicate’s risk management framework is to protect the syndicate’s member from events that hinder
the sustainable achievement of financial performance objectives, including failing to exploit opportunities. ASML recognises the
critical importance of having efficient and effective risk management systems in place.
Argenta Syndicate 6134
40
Notes to the Accounts
Continued
19.
Risk management continued
The managing agent has established a Risk function for the syndicate with clear terms of reference from the board of directors and its
sub-committees. This is supplemented with a clear organisational structure with documented delegated authorities and
responsibilities from the board of directors to executive management committees and senior managers. Lastly, a syndicate policy
framework that sets out the risk profiles for the syndicate, risk management, control and business conduct standards for the
syndicate’s operations has been put in place. This has been embedded in the business with senior management ownership and
accountability.
The board of directors approves the risk management policies and meets regularly to approve any commercial, regulatory and
organisational requirements of such policies. These policies define the identification of risk and its interpretation to ensure the
appropriate quality and diversification of assets; align underwriting and reinsurance strategy to the syndicate’s objectives; and
specify reporting requirements. Significant emphasis is placed on assessment and documentation of risks and controls, including the
articulation of ‘risk appetite’.
Capital management objectives
Capital framework at Lloyd’s
Lloyd’s is a regulated undertaking and subject to the supervision of the PRA under the Financial Services and Markets Act 2000.
Within the supervisory framework, Lloyd’s applies capital requirements at member level and centrally to ensure that Lloyd’s complies
with Solvency UK capital requirements, and beyond that to meet its own financial strength, licence and ratings objectives.
With effect from 31 December 2025, Lloyd’s is required to adopt Solvency UK replacing the previous Solvency II framework. The
PRA granted Lloyd’s a rule modification deferring application of Solvency UK until 31 December 2025.
Although Lloyd’s capital setting processes use a capital requirement set at syndicate level as a starting point, the requirement to
meet Solvency UK and Lloyd’s capital requirements apply at overall and member level only respectively, not at syndicate level.
Accordingly, the capital requirement in respect of Syndicate 6134 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 requirements (“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 UK requirements. The SCRs of each
syndicate are subject to review by Lloyd’s and approval by the Lloyd’s Capital and Planning Group.
A syndicate may be comprised of one or more underwriting members of Lloyd’s. Each member is liable for its own share of
underwriting liabilities on the syndicate on which it participates but not other members’ shares. Accordingly, the capital requirement
that Lloyd’s sets for each member operates on a similar basis. For a member participating on a single syndicate, its SCR is
determined by the member’s share of the syndicate SCR ‘to ultimate’. Where a member participates on more than one syndicate a
credit for diversification is included to reflect the spread of risk. The credit given is consistent with determining a SCR which reflects
the capital requirement to cover a 1 in 200 year loss ‘to ultimate’ for that member. Over and above this, Lloyd’s applies an uplift to
the member’s SCR to determine the overall level of capital required. This is known as the member’s Economic Capital Assessment
(“ECA”). The purpose of this uplift, which is a Lloyd’s not a Solvency UK requirement, is to meet Lloyd’s financial strength, licence
and ratings objectives. The capital uplift applied for 2025 was 35% of the member’s SCR ‘to ultimate’.
Argenta Syndicate 6134
41
Notes to the Accounts
Continued
19.
Risk management continued
Provision of capital by members
Each member may provide capital to meet its ECA either by assets held in trust by Lloyd’s specifically for that member FAL, held
within and managed within a syndicate (funds in syndicate) or as the member’s share of the members’ balances on each syndicate
on which it participates (the latter being adjusted to reflect their value on a Solvency UK basis).
Accordingly all of the assets less liabilities of the syndicate, as represented in the member’s balances reported on the statement of
financial position on page 21, represent resources available to meet the member’s and Lloyd’s capital requirements.
Insurance risk
The principal risk the syndicate faces under insurance contracts is that the actual claims and benefit payments or the timing thereof,
differ from expectations. This is influenced by the frequency of claims, severity of claims, actual benefits paid and subsequent
development of long–term claims. Therefore, the objective of the syndicate is to ensure that sufficient reserves are available to cover
these liabilities. References to insurance business should, as appropriate, be understood to include the equivalent reinsurance
business underwritten by the syndicate.
The risk exposure is mitigated by diversification across a large portfolio of insurance contracts and geographical areas in the host
syndicate. The variability of risks is also improved by careful selection and implementation of underwriting strategy guidelines, as
well as the use of reinsurance arrangements.
The most significant risks arise from natural disasters, terrorist activities, cyber attacks, large risk losses and adverse attritional claims
experience. For longer tail claims that take some years to settle, there is also inflation risk.
The host syndicate uses both its own and commercially available proprietary risk management software to assess catastrophe
exposure. However, there is always a risk that the assumptions and techniques used in these models are unreliable or that claims
arising from an unmodelled event are greater than those arising from a modelled event.
As a further guide to the level of catastrophe exposure written by the syndicate, the following table shows forecast claims arising
from various hypothetical catastrophe events for the 2026 year.
These include Realistic Disaster Scenario (“RDS”) events, as well as annual aggregate losses in respect of natural catastrophe
events that would be expected to occur once every 30 years (30-year loss).
The figures are consistent with the 2026 Syndicate Business Forecast (“SBF”) approved by Lloyd's, therefore are based on expected
risk exposures estimated for the 2026 year.
Catastrophe Event
Estimated
gross loss
Estimated
net loss
£m
£m
Cyber – ransomware contagion
19
19
30-year loss - whole world natural catastrophe
18
18
Terrorism - UK event
18
18
Cyber - major data security breach
14
14
Cyber - Cloud cascade
14
14
Argenta Syndicate 6134
42
Notes to the Accounts
Continued
19.
Risk management continued
The table below sets out the concentration of outstanding claim liabilities and unearned premiums by type of contract:
The geographical concentration of the outstanding claim liabilities and unearned premiums is noted below. The disclosure is based
on the domicile of counterparties.
Key assumptions
The principal assumption underlying the liability estimates is that the future claims development will follow a similar pattern to past
claims development experience. This includes assumptions in respect of claims indemnity costs, claims handling costs and claims
inflation for each underwriting year. For more recent years of account, ‘a priori’ loss ratio selections are also key assumptions in
determining the reserves, which are themselves based on historical experience as well as judgements to reflect current underwriting
conditions.
Additional qualitative judgements are used to assess the extent to which past trends may not apply in the future, for example: one–off
occurrence; changes in market factors; economic conditions; as well as internal factors such as portfolio mix, policy conditions and claims
handling procedures. Judgement is further used to assess the extent to which external factors such as judicial decisions and
government legislation affect the estimates.
Other key circumstances affecting the reliability of assumptions include the occurrence of large losses, delays in settlement and
changes in foreign currency rates.
Sensitivities
The claim liabilities are sensitive to the key assumptions that follow. It has not been possible to quantify the sensitivity of certain
assumptions such as legislative changes or uncertainty in the estimation process.
The following analysis is performed for reasonably possible movements in key assumptions with all other assumptions held
constant, showing the impact on gross and net liabilities, the result and the member’s balance. The correlation of assumptions will
have a significant effect in determining the ultimate claims liabilities, but to demonstrate the impact due to changes in each
assumption, assumptions had to be changed on an individual basis. It should be noted that movements in these assumptions are non–
linear.
2025
2024
Gross
liabilities
Net liabilities
Gross
liabilities
Net liabilities
£’000
£’000
£’000
£’000
Reinsurance acceptances
317,557
317,557
312,180
312,180
317,557
317,557
312,180
312,180
2025
2024
Gross
liabilities
Net liabilities
Gross
liabilities
Net liabilities
Reinsurance acceptances
£’000
£’000
£’000
£’000
United Kingdom
317,557
317,557
312,180
312,180
317,557
317,557
312,180
312,180
Argenta Syndicate 6134
43
Notes to the Accounts
Continued
19.
Risk management continued
The method used for deriving sensitivity information and the significant assumptions are the same for both periods.
Claims development table
The following tables show the estimates of cumulative incurred claims, including both claims notified and IBNR for each successive
underwriting year at each reporting date, together with cumulative payments to date. The cumulative claims estimates and
cumulative payments are translated to sterling at the rate of exchange that applied at 31 December 2025.
In setting claims provisions the syndicate gives consideration to the probability and magnitude of future adverse experience. Due to
the uncertainty inherent in the estimation process, the actual overall claim provision may not always be in surplus.
Gross insurance contract outstanding claims provision as at 31 December 2025:
2025
Change in
assumptions
Impact on
gross
liabilities
Impact on
net liabilities
Impact on
result
Impact on
member’s
balance
£’000
£’000
£’000
£’000
‘A priori’ loss ratios
+5%
9,820
9,820
(10,065)
(10,065)
Incurred claims development
patterns
Recede
development by 1
month
5,335
5,335
(5,568)
(5,568)
2024
Change in
assumptions
Impact on
gross
liabilities
Impact on
net liabilities
Impact on
result
Impact on
member’s
balance
£’000
£’000
£’000
£’000
‘A priori’ loss ratios
+5%
9,720
9,720
(9,975)
(9,975)
Incurred claims development
patterns
Recede
development by 1
month
5,801
5,801
(6,054)
(6,054)
Underwriting year: | 2023 | 2024 | 2025 | Total |
| Estimate of cumulative claims incurred | £’000 | £’000 | £’000 | £’000 |
At end of underwriting year | ||||
12 months later | ||||
24 months later | ||||
Current estimate of cumulative claims incurred | | | | |
Cumulative payments to date | ( | ( | ( | ( |
Gross and net outstanding claims provision at 31 December 2025 per the statement of financial position | | | |
Argenta Syndicate 6134
44
Notes to the Accounts
Continued
19.
Risk management continued
Net insurance contract outstanding claims provision as at 31 December 2025:
The 2023 amounts above include the 2022 year of account, which was reinsured into Syndicate 2121 on closure at 31 December
2024. The 2022 year of account liabilities were subsequently reassumed by Syndicate 6134 as part of the 2023 quota share
agreement.
Financial risk
i. Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss to the other party by failing to discharge
an obligation.
The following policies and procedures are in place to mitigate the exposure to credit risk:
• A credit risk policy setting out the assessment and determination of what constitutes credit risk for the syndicate. Compliance
with the policy is monitored and exposures and breaches are reported to the Risk Framework & Capital Committee. The policy
is regularly reviewed for pertinence and for changes in the risk environment.
• Net exposure limits are set for each investment counterparty or syndicate of counterparties, with minimum credit quality
requirements at a portfolio level.
• Reinsurance is placed with counterparties that have a good credit rating and concentration of risk is avoided by following policy
guidelines in respect of counterparties’ limits that are set by the Third Party Management Group and are subject to regular reviews. At
each reporting date management performs an assessment of creditworthiness of reinsurers, ascertaining a suitable allowance for
impairment.
• The credit risk in respect of customer balances, incurred on non-payment of premiums or contributions, will only persist during
the grace period specified in the policy document or trust deed until expiry, when the policy is either paid up or terminated.
Commission paid to intermediaries is netted off against amounts receivable from them to reduce the risk of doubtful debts.
Underwriting year: | 2023 | 2024 | 2025 | Total |
| Estimate of cumulative claims incurred | £’000 | £’000 | £’000 | £’000 |
At end of underwriting year | | | | |
12 months later | ||||
24 months later | ||||
Current estimate of cumulative claims incurred | | | | |
Cumulative payments to date | ( | ( | ( | ( |
Gross and net outstanding claims provision at 31 December 2025 per the statement of financial position | | | |
Argenta Syndicate 6134
45
Notes to the Accounts
Continued
19.
Risk management continued
The tables below show the maximum exposure to credit risk (including an analysis of financial assets exposed to credit risk) for the
components of the statement of financial position. The maximum exposure is shown gross, before the effect of mitigation through
collateral agreements and the use of credit derivatives.
2025
Neither past
due nor
impaired
Past due
Impaired
Total
£’000
£’000
£’000
£’000
Financial investments
- Shares and other variable yield securities and units in unit
trusts
-
-
Debtors arising out of reinsurance operations
-
-
Cash at bank and in hand
-
-
Other debtors
-
-
-
-
2024
Neither past
due nor
impaired
Past due
Impaired
Total
£’000
£’000
£’000
£’000
Financial investments
- Shares and other variable yield securities and units in unit
trusts
-
-
Debtors arising out of reinsurance operations
-
-
Cash at bank and in hand
-
-
Other debtors
-
-
-
-
Argenta Syndicate 6134
46
Notes to the Accounts
Continued
19.
Risk management continued
The following table analyses the credit risk exposure by classifying assets according to Standard and Poor’s credit ratings of the
counterparties.
Maximum credit exposure
It is the syndicate’s policy to maintain accurate credit ratings across its portfolio of investments and reinsurance counterparties.
ii. Liquidity risk
Liquidity risk is the risk that the syndicate will encounter difficulty in meeting obligations associated with financial instruments. The
syndicate is managed on a funds withheld basis and it primarily uses its bank account for paying expenses. The following
policies and procedures are in place to mitigate the syndicate’s exposure to liquidity risk:
 A liquidity risk policy exists that sets out the assessment and determination of what constitutes liquidity risk. Compliance with
the policy is monitored and exposures and breaches are reported to the Risk Framework & Capital Committee. The policy is
regularly reviewed for pertinence and for changes in the risk environment.
 Guidelines on asset allocation, portfolio limit structures and maturity profiles of assets are set, in order to ensure that sufficient
funding is available to meet insurance and investment contracts obligations.
| 2025 | AAA | AA | A | BBB | Not rated | Total |
| £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | |
Shares and other variable yield securities and unit trusts | | | | |||
Debtors arising out of reinsurance operations | | | | |||
Cash at bank and in hand | | | | |||
Other debtors | | | | |||
Total | | | |
| 2024 | AAA | AA | A | BBB | Not rated | Total |
| £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | |
Shares and other variable yield securities and unit trusts | | | | |||
Debtors arising out of reinsurance operations | | | | |||
Cash at bank and in hand | | | | |||
Other debtors | | | | |||
Total | | | |
Argenta Syndicate 6134
47
Notes to the Accounts
Continued
19.
Risk management continued
Maturity profiles
The table below summarises the maturity profile of the syndicate’s financial liabilities based on remaining undiscounted contractual
obligations, including interest payable, and gross outstanding claim liabilities based on the estimated timing of claim payments
resulting from recognised insurance liabilities. Repayments which are subject to notice are treated as if notice were to be given
immediately.
| 2025 | 0-1 year | 1-3 years | 3-5 years | Over 5 years | Total |
| £’000 | £’000 | £’000 | £’000 | £’000 | |
Outstanding claim liabilities | |||||
| Other | |||||
| 2024 | 0-1 year | 1-3 years | 3-5 years | Over 5 years | Total |
| £’000 | £’000 | £’000 | £’000 | £’000 | |
Outstanding claim liabilities | |||||
| Other | |||||
iii. Financial market risk
Financial market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market prices. Financial market risk comprises three types of risk:
a.
Currency risk;
b.
Interest rate risk; and
c.
Equity price risk.
The following policies and procedures are in place to mitigate the exposure to financial market risk:
•
A financial market risk policy exists that sets out the assessment and determination of what constitutes financial market risk for
the syndicate. Compliance with the policy is monitored and exposures and breaches are reported to the Risk Framework &
Capital Committee. The policy is reviewed regularly for pertinence and for changes in the risk environment.
•
Strict control over derivative instruments (e.g. equity derivatives are only permitted to be held to facilitate portfolio management
or to reduce investment risk).
•
For assets backing outstanding claims provisions, financial market risk is managed by ensuring the duration and profile of assets are
aligned to the technical provisions they are backing. This helps manage financial market risk to the extent that changes in the
values of assets are matched by a corresponding movement in the values of the technical provisions.
(a)
Currency risk
Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
foreign exchange rates. The syndicate’s functional currency is sterling and its exposure to foreign exchange risk arises primarily with
respect to transactions in euros, Australian dollars, US dollars and Canadian dollars. The syndicate seeks to mitigate the risk by
seeking to match the estimated foreign currency denominated liabilities with assets denominated in the same currency. As the
syndicate is managed on a funds withheld basis, it seeks assistance from the host syndicate in this regard as far as it is
reasonably able.
Argenta Syndicate 6134
48
Notes to the Accounts
Continued
19.
Risk management continued
The table below summarises the exposure of the financial assets and liabilities by settlement currency to foreign exchange risk at the
reporting date, as follows:
The non-sterling denominated net assets of the syndicate may lead to a reported loss or gain should exchange rates fluctuate.
| 2025 | UK £ | US $ | CAD $ | AUS $ | EUR € | JPY | Total |
| £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | |
Investments | |||||||
Debtors | |||||||
Cash and other assets | |||||||
Prepayments and accrued income | |||||||
Total assets | |||||||
Technical provisions | ( | ( | ( | ( | ( | ( | ( |
Creditors | ( | ( | |||||
Accruals and deferred income | ( | ( | |||||
| Total liabilities | ( | ( | ( | ( | ( | ( | ( |
Total capital and reserves | ( | ( | ( | ( | ( | ( | ( |
| 2024 | UK £ | US $ | CAD $ | AUS $ | EUR € | JPY | Total |
| £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | |
Investments | |||||||
Debtors | |||||||
Cash and other assets | |||||||
Prepayments and accrued income | |||||||
Total assets | |||||||
Technical provisions | ( | ( | ( | ( | ( | ( | ( |
Creditors | ( | ( | |||||
Accruals and deferred income | ( | ( | |||||
| Total liabilities | ( | ( | ( | ( | ( | ( | ( |
Total capital and reserves | ( | ( | ( | ( | ( | ( | ( |
Argenta Syndicate 6134
49
Notes to the Accounts
Continued
19.
Risk management continued
In part, foreign currency forward contracts may be used to achieve the desired exposure to each currency. From time to time the
syndicate may also choose to utilise options on foreign currency derivatives to mitigate the risk of reported losses due to changes in
foreign exchange rates. The degree to which options are used is dependent on the prevailing cost versus the perceived benefit to the
member’s value from reducing the chance of a reported loss due to changes in foreign currency exchange rates.
Sensitivity to changes in foreign exchange rates
The table below gives an indication of the impact on the result of a percentage change in the relative strength of sterling against the
value of the main settlement currencies simultaneously. The analysis is based on the information as at 31 December 2025.
Impact on results
2025
2024
£’000
£’000
Sterling weakens
10% against other currencies
3,152
2,022
20% against other currencies
7,092
4,550
Sterling strengthens
10% against other currencies
(2,579)
(1,654)
20% against other currencies
(4,416)
(2,992)
(b)
Interest rate risk
Interest rate risk is the risk that the value or future cash flows of a financial instrument will fluctuate because of changes in market
interest rates.
The syndicate has no significant concentration of interest rate risk. Insurance liabilities are not discounted and therefore are not
exposed to interest rate risk.
(c)
Equity price risk
Equity price is the risk that the fair value on future cash flows of a financial instrument will fluctuate because of changes in market
prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the
individual instrument or its issuer, or factors affecting all similar financial instruments traded in the market.
The syndicate’s equity price risk exposure relates to financial assets and financial liabilities whose value will fluctuate as a result
of changes in market prices, principally investment securities.
The financial market risk policy requires it to manage such risks by setting and monitoring objectives and constraints on
investments, diversification plans, limits on investment in each sector and market, and careful and planned use of derivative
financial instruments.
There is no significant concentration of equity price risk.
Argenta Syndicate Management Limited
5
th
Floor
70 Gracechurch Street
London EC3V 0XL
Tel: +44 (0)20 7825 7200
www.argentagroup.com
Argenta Syndicate Management Limited
is a subsidiary of Argenta Holdings Limited
Argenta Syndicate Management Limited
is authorised by the Prudential Regulation Authority and regulated by
the Financial Conduct Authority and the Prudential Regulation
Authority
