Syndicate Accounts

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Classification: Unclassified

RiverStone

Syndicate 3500

Annual Report and Accounts for the year ended

31 December 2025

For Tagging convenience (annual):

Both for Profit & Loss, Balance Sheet

Current Period

2025-01-01

– 2025-12-31

Prior Period

2024-01-01

–

2024-12-31

Contents

Directors and Administration....................................................................................................4

Strategic report of the Managing Agent...................................................................................5

Managing Agent’s report..........................................................................................................8

Statement of Managing Agent’s responsibilities....................................................................10

Independent auditor’s report to the members of Syndicate 3500..........................................11

Statement of profit or loss and other comprehensive income:...............................................15

Balance sheet – Assets.........................................................................................................17

Balance sheet (cont’d) – Liabilities........................................................................................18

Statement of changes in members’ balances........................................................................19

Statement of cash flows.........................................................................................................20

Notes to the financial statements – (forming part of the financial statements).....................21

Directors and Administration

Managing Agent

RiverStone Managing Agency Limited

Park Gate

161 – 163 Preston Road

Brighton

East Sussex

United Kingdom

BN1 6AU

Directors of Managing Agent

K. Shah – Independent Non-Executive Director

N. Smith – Independent Non-Executive Director

H. Thomas – Independent Non-Executive Director

J. Vazquez – Independent Non-Executive Director

T. Ambridge – Non-Executive Director

P. Prebensen – Non-Executive Director

A. R. Creed (Resigned on 9 February 2026)

J. C. P. Insley

M. J. Bannister (Resigned on 27 March 2025)

C. K. Pritchard (Resigned on 27 March 2025, Appointed on 9 February 2026)

N. S. Taylor (Resigned on 27 March 2025)

Independent Auditor

Deloitte LLP

2 New Street Square

London

EC4A 3BZ

Website

https://www.rsml.co.uk

Strategic report of the Managing Agent

The Directors of RiverStone Managing Agency Limited (“RiverStone Managing Agency”) present their Strategic Report for Syndicate 3500 for the year ended 31 December 2025 (“the Financial Year”).

Principal Activity

Syndicate 3500 was originally formed in 2003 to accept the reinsurance to close of the 2000 and prior years of account of Syndicate 271 and the 2001 and prior years of account of Syndicate 506. Since forming the Syndicate has completed 31 further deals, the latest is detailed below.

Effective 1 January 2025, Syndicate 3500 entered into the following transactions:

•The reinsurance to close of the 2022 and prior underwriting year of account liabilities of Syndicate 2689. This transaction resulted in the transfer to Syndicate 3500 or gross and net technical provisions of $84.6 million and $82.0 million respectively.

•The reinsurance to close of the 2022 and prior underwriting year of account liabilities of Beat Syndicate 4242. This transaction resulted in the transfer to Syndicate 3500 or gross and net technical provisions of $229.0 million and $176.8 million respectively.

RiverStone Managing Agency is a wholly owned subsidiary of RiverStone Holdings Limited (“RiverStone Holdings”) whose ultimate holding company is RiverStone International Holdings Limited. The majority of the shares in RiverStone International are held by CVC Capital Partners Strategic Opportunities II LP.

RiverStone Managing Agency is the managing agent for Syndicate 3500 and its overall strategic objective in administering the run-off of the portfolios under its management remains the payment of all valid claims in a timely manner and the expedient collection of all amounts due from all reinsurers. Additionally, RiverStone Managing Agency actively pursues opportunities to acquire further run-off portfolios for Syndicate 3500 through reinsurance to close or retroactive reinsurance transactions.

RiverStone Managing Agency delegates most of its day-to-day management functions under a service agreement with RiverStone Management Limited (“RiverStone Management”), a fellow subsidiary of RiverStone Holdings. Provision of services under this agreement is monitored by regular reporting to the board of directors of RiverStone Managing Agency (“the Board”), which includes analysis of performance against key performance indicators.

The sole corporate member for Syndicate 3500 is RiverStone Corporate Capital Limited (“RiverStone Corporate Capital”). In addition to capital held at RiverStone Corporate Capital, additional capital support for Syndicate 3500 is currently provided by RiverStone Insurance (UK) Limited, and by way of third-party letters of credit, a deposit facility and reinsurance.

Business Review

Results and Performance

The measures set out below reflect the Syndicate’s key performance indicators.

The profit for the 2025 Financial Year, on an annual accounting basis, is $129.2 million (2024: profit of $247.5 million). The balance on the technical account for general business for the Financial Year was a profit of $112.9 million (2024: profit of $257.8 million). This comprises net earned premiums of $19.2 million (2024: $55.8 million), favourable net incurred claims of $29.8 million (2024: $133.9 million), allocated investment return of $93.5 million (2024: $110.1 million) and other technical income of $22.6

million (2024: $4.1 million), partially offset by net operating expenses of $52.2 million (2024: $46.1 million).

The profit for the Financial Year of $129. million (2024: profit of $247.5 million) comprises net investment gains of $4.3 million (2024: $0.5 million), foreign exchange gains of $12.1 million (2024: loss of $10.8 million), and the gain on the technical account for general business.

Member’s balances decreased to $256.8 million at 31 December 2025 (2024: $330.9 million) due to the negative movement of $228.3 million relating to the distribution, partially offset by positive contributions from the 2025 total comprehensive profit and net movement on Funds in Syndicate (FIS) of $25.0 million.

Total outstanding claims, gross of reinsurance, were $2.4 billion as at 31 December 2025 (2024: $3.0 billion). Total cash, deposits and investments were $1.8 billion at 31 December 2025 (2024: $2.4 billion). Movements in outstanding claims and cash balances predominantly arise as a result of core claims settlement activity during the Financial Year exceeding new liabilities acquired.

Principal Risks and Uncertainties

The process of risk acceptance and risk management is addressed through a framework of policies, procedures and internal controls. Key policies are subject to annual review and approval by the Board, executive committees, risk management and internal audit. Compliance with regulatory, legal and ethical standards is a high priority for Syndicate 3500 and RiverStone Managing Agency. The compliance, legal and finance departments of RiverStone Management take on an important oversight role in this regard. The Board is responsible for ensuring that a proper internal control framework exists to manage financial risks and that controls operate effectively; it is assisted in discharging these responsibilities by the UK Risk & Compliance Committee, a committee of the Board.

The risks that Syndicate 3500 is exposed to and their impact on economic capital have been assessed. This process is risk based and uses Solvency UK principles to manage capital requirements and to ensure that there is sufficient financial strength and capital adequacy to support the obligations to policyholders, regulators and other stakeholders.

The principal risks faced by Syndicate 3500 arise from fluctuations in the severity of claims compared with expectations, late reporting of claims, inadequate reserving, claims inflation and inadequate reinsurance protection (including the credit worthiness of major reinsurers). Syndicate 3500’s assets and liabilities are also exposed to market risk, including the impact of changes to interest rates, equity price fluctuations and adverse changes in exchange rates.

Strategy and Future Developments

The Board’s strategy for Syndicate 3500 is the efficient and economic management of all existing liabilities. The Board intends to continue to actively pursue run-off acquisition opportunities for Syndicate 3500 through reinsurance to close or retroactive reinsurance transactions.

Sustainability at RiverStone

RiverStone Managing Agency recognises sustainability means integrating Environmental, Social, and Governance ("ESG") factors into our core operations. This is seen as vital for building resilience and supporting long-term growth. Rather than considering sustainability issues in isolation, they are embedded into our business strategy, enabling us to proactively manage environmental risks, attract and retain talent, and safeguard operational efficiency, profitability, and shareholder value. This integrated approach helps maintain a competitive advantage and foster responsible, forward-thinking decision-making.

Weaving sustainability into the strategic framework reinforces our commitment to supporting employees and communities, while enhancing environmental resilience to climate-related challenges. Our initiatives directly align with key United Nations Sustainable Development Goals (SDGs), including health and well-being, gender equality, and climate action, which underpin our priorities. Ultimately, this comprehensive approach positions RiverStone as a leading provider of legacy insurance, rooted in resilience, responsibility, and sustainable growth.

As a legacy insurance business, we do not underwrite new policies. ESG risks are incorporated by the original underwriter and assessed during our acquisition process. Because of this, we instead focus our sustainability actions on our operations and responsible investment strategy.

Performance Measurements

RiverStone Managing Agency has made continued progress throughout the Financial Year in relation to key elements of its strategy, through both the continued proactive management of the existing liabilities and the acquisition of further run-off portfolios by its managed syndicate.

The Board considers the following metrics in assessing the performance of the Syndicate and is satisfied with the overall ongoing operation of the Syndicate:

2025

2024

$000

Written and earned premiums net of reinsurance

19,189

55,824

Claims incurred, net of reinsurance

29,789

133,895

Net operating expenses

(52,233)

(46,136)

Net investment return

97,758

110,612

Gross outstanding claims

2,384,476

3,012,070

Managing Agent’s report

The Directors of RiverStone Managing Agency Limited (“RiverStone Managing Agency”) present their report for Syndicate 3500 for the year ended 31 December 2025 (“the Financial Year”).

Reporting Basis

The Directors of the managing agent, RiverStone Managing Agency, present their report and the audited financial statements for the year ended 31 December 2025.

The Directors are responsible for preparing the Directors’ report and the financial statements in accordance with applicable law and regulations.

These Syndicate Annual financial statements are prepared using the annual basis of accounting as required by Statutory Instrument 1950 of 2008, the Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 (“the 2008 Regulations”) and in compliance with United Kingdom Accounting Standards, including Financial Reporting Standard 102, “The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland” (“FRS102”) and Financial Reporting Standard 103, “Insurance Contracts” (“FRS103”).

Directors

The Directors of RiverStone Managing Agency holding office during the period from 1 January 2025 to the date of this report were as follows:

K. Shah – Independent Non-Executive Director

N. Smith – Independent Non-Executive Director

H. Thomas – Independent Non-Executive Director

J. Vazquez – Independent Non-Executive Director

T. Ambridge – Non-Executive Director

P. Prebensen – Non-Executive Director

A. R. Creed (Resigned on 9 February 2026)

J. C. P. Insley

M. J. Bannister (Resigned on 27 March 2025)

C. K. Pritchard (Resigned on 27 March 2025, Appointed on 9 February 2026)

N. S. Taylor (Resigned on 27 March 2025)

Annual General Meeting

The Directors do not propose to hold an annual general meeting for Syndicate 3500. A meeting will be convened should the sole direct corporate member of Syndicate 3500 request one.

Independent Auditor

Deloitte LLP (“Deloitte”) have indicated their willingness to continue in office.

Investment Policy and Management

All assets continue to be invested in a manner to maximise return within agreed investment policies established by RiverStone Managing Agency. These investments are managed within the risk constraints and credit guidelines agreed by the Board. The investment policy and performance of funds are reviewed regularly by the Board. Syndicate 3500 has not been involved in the lending of investments to the securities market.

Financial Instruments

As described in Note 5 to the financial statements, Syndicate 3500 is exposed to financial risk through its financial assets and liabilities, including its reinsurance assets and policyholder liabilities. In particular, a key financial risk is that the proceeds from financial and reinsurance assets are not sufficient to fund the obligations arising from insurance policies as they fall due. The most important components of this financial risk are market risk (including interest rate risk, equity risk and currency risk), credit risk and liquidity risk. Syndicate 3500 manages this risk within its overall risk management framework.

Post balance sheet events

There are no post balance sheet events to note.

Statement of Managing Agent’s responsibilities

The 2008 Regulations require RiverStone Managing Agency to prepare Syndicate Annual Accounts at 31 December each year which give a true and fair view of the state of affairs of Syndicate 3500 and of its profit or loss for that year.

In preparing those Syndicate Annual Accounts, RiverStone Managing Agency is required to:

•select suitable accounting policies, and then apply them consistently, subject to changes arising on the adoption of new accounting standards in the year;

•make judgements and estimates that are reasonable and prudent;

•state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the Syndicate Annual Accounts;

•prepare the Syndicate Annual Accounts on a going concern basis, unless it is inappropriate to do so; and

•prepare and review the iXBRL tagging that has been applied to the Syndicate Accounts in accordance with the instructions issued by Lloyd’s, including designing, implementing and maintaining systems, processes and internal controls to result in tagging that is free from material non-compliance with the instructions issued by Lloyd’s, whether due to fraud or error.

RiverStone Managing Agency confirms that it has complied with the above requirements in preparing the financial statements.

RiverStone Managing Agency is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of Syndicate 3500 and enable it to ensure that the Syndicate Annual Accounts comply with the 2008 Regulations and are prepared in compliance with the Lloyds instructions.

It is also responsible for safeguarding the assets of Syndicate 3500 and hence for taking reasonable steps for prevention and detection of fraud and other irregularities.

It is also responsible for the maintenance and integrity of the business’ website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

In the case of each person who is a director of RiverStone Managing Agency at the date this Managing Agent’s Report is approved:

•so far as the director is aware, there is no relevant audit information of which the company’s auditors are unaware; and

•they have taken all the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company’s auditors are aware of that information.

We confirm that to the best of our knowledge the syndicate accounts, including the iXBRL tagging applied to these accounts, comply with the requirements of the Lloyd’s Syndicate Accounts Instructions version 3.1 as modified by the Frequently Asked Questions version 1.1 issued by Lloyd’s.

Approved by Order of the Board

C. K. PritchardPark Gate, 161 Preston Road

UK Chief Executive OfficerBrighton, East Sussex

17 February 2026 United Kingdom, BN1 6AU

Independent auditor’s report to the members of Syndicate 3500

Report on the audit of the syndicate annual report and accounts

Opinion

In our opinion the syndicate annual report and accounts of Syndicate 3500 (the ‘syndicate’):

•give a true and fair view of the state of the syndicate’s affairs as at 31 December 2025 and of its profit for the year then ended;

•have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”; and

•have been prepared in accordance with the requirements of The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 and sections 1 and 5 of the Syndicate Accounts Instructions Version 3.1 issued by Lloyd’s (the “Lloyd’s Syndicate Accounts Instructions”).

We have audited the syndicate annual report and accounts which comprise:

•the statement of profit or loss and other comprehensive income;

•the balance sheet;

•the statement of changes in members’ balances;

•the statement of cash flows;

•the statement of accounting policies; and

•the related notes 1 to 28.

The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)), applicable law and the Lloyd’s Syndicate Accounts Instructions. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the syndicate annual report and accounts section of our report.

We are independent of the syndicate in accordance with the ethical requirements that are relevant to our audit of the syndicate annual report and accounts in the UK, including the Financial Reporting Council’s (the ‘FRC’s’) Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the annual report and accounts, we have concluded that the managing agent’s use of the going concern basis of accounting in the preparation of the annual report and accounts is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the syndicate’s

ability to continue in operations for a period of at least twelve months from when the syndicate annual report and accounts are authorised for issue.

Our responsibilities and the responsibilities of the managing agent with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, other than the syndicate annual accounts and our auditor’s report thereon. The managing agent is responsible for the other information contained within the annual report. Our opinion on the syndicate annual report and accounts does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the syndicate annual accounts or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Responsibilities of managing agent

As explained more fully in the managing agent’s responsibilities statement, the managing agent is responsible for the preparation of the syndicate annual report and accounts and for being satisfied that they give a true and fair view, and for such internal control as the managing agent determines is necessary to enable the preparation of syndicate annual report and accounts that are free from material misstatement, whether due to fraud or error.

In preparing the syndicate annual report and accounts, the managing agent is responsible for assessing the syndicate’s ability to continue in operation, disclosing, as applicable, matters related to the syndicate’s ability to continue in operation and to use the going concern basis of accounting unless the managing agent intends to cease the syndicate’s operations, or has no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the syndicate annual report and accounts

Our objectives are to obtain reasonable assurance about whether the syndicate annual report and accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these syndicate annual report and accounts.

A further description of our responsibilities for the audit of the syndicate annual report and accounts is located on the FRC’s website at:

www.frc.org.uk/auditorsresponsibilities

. This description forms part of

our auditor’s report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

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.

We considered the nature of the syndicate and its control environment, and reviewed the syndicate’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management, those charged with governance, internal audit, internal general counsel about their own identification and assessment of the risks of irregularities.

We obtained an understanding of the legal and regulatory frameworks that the syndicate operates in, and identified the key laws and regulations that:

•had a direct effect on the determination of material amounts and disclosures in the annual report and accounts. These included the Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 and the Lloyd’s Syndicate Accounting Byelaw (no. 8 of 2005), the Lloyd’s Syndicate Accounts Instructions; and

•do not have a direct effect on the annual report and accounts but compliance with which may be fundamental to the syndicate’s ability to operate or to avoid a material penalty. These included the requirements of Solvency UK.

We discussed among the audit engagement team including relevant internal specialists such as actuarial and IT specialists regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the annual report and accounts.

As a result of performing the above, we identified the greatest potential for fraud or non-compliance with laws and regulations in the following area, and our procedures performed to address it are described below:

•Valuation of technical provisions includes assumptions requiring significant management judgement and involves complex calculations, and therefore there is potential for management bias. In response to these risks, we involved our actuarial specialists to develop independent estimates of the technical provisions.

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following:

•reviewing annual accounts disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the annual report and accounts;

•performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

•enquiring of management, internal audit and in-house legal counsel concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and

reading minutes of meetings of those charged with governance and reviewing internal audit reports, and reviewing correspondence with Lloyd’s, the Prudential Regulation Authority (PRA), and the Financial Conduct Authority (FCA).

Report on other legal and regulatory requirements

Opinions on other matters prescribed by The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 and the Lloyd’s Syndicate Accounts Instructions

In our opinion, based on the work undertaken in the course of the audit:

•the information given in the strategic report and the managing agent’s report for the financial year for which the annual accounts are prepared is consistent with the annual accounts; and

•the strategic report and the managing agent’s report /have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the syndicate and its environment obtained in the course of the audit, we have not identified any material misstatements in the strategic report or the managing agent’s report.

Matters on which we are required to report by exception

Under The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 we are required to report in respect of the following matters if, in our opinion:

•the managing agent in respect of the syndicate has not kept adequate accounting records; or

•the syndicate annual report and accounts are not in agreement with the accounting records; or

•we have not received all the information and explanations we require for our audit.

We have nothing to report in respect of these matters.

Use of our report

This report is made solely to the syndicate’s members, as a body, in accordance with regulation 10 of The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008. Our audit work has been undertaken so that we might state to the syndicate’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the syndicate’s members as a body, for our audit work, for this report, or for the opinions we have formed.

As required by the Lloyd’s Syndicate Accounts Instructions, these annual report and accounts will form part of the Electronic Format Annual Syndicate report and accounts filed with the Council of Lloyd’s and published on the Lloyd’s website. This auditors’ report provides no assurance over whether the Electronic Format Annual Syndicate report and accounts have been prepared in compliance with Section 2 of the Lloyd’s Syndicate Accounts Instructions. We have been engaged to provide assurance on whether the Electronic Format Annual Syndicate report and accounts has been prepared in compliance with Section 2 of the Lloyd’s Syndicate Accounts Instructions and will report privately to the directors of the managing agent and the Council of Lloyd’s on this.

Adam Ely, FCA (Senior statutory auditor)

For and on behalf of Deloitte LLP

Statutory Auditor

London, United Kingdom

17 February 2026

Statement of profit or loss and other comprehensive income:

Technical account – General business

For the year ended 31 December 2025

Note

2025

$000

2024

$000

Gross premiums written

6,045

29,343

Outwards reinsurance premiums

(13,007)

(346)

Premiums written, net of reinsurance

(6,962)

28,997

Changes in unearned premium

Change in the gross provision for unearned premiums

38,663

31,252

Change in the provision for unearned premiums reinsurers’ share

(12,512)

(4,425)

Net change in provisions for unearned premiums

26,151

26,827

Earned premiums, net of reinsurance

19,189

55,824

Allocated investment return transferred from the non-technical account

93,490

110,157

Other technical income, net of reinsurance

22,628

4,105

Claims paid

Gross amount

(1,158,604))

(1,396,259))

Reinsurers’ share

320,917

370,228

Net claims paid

(837,687)

(1,026,031))

Change in the provision for claims

Gross amount

1,076,605

1,555,785

Reinsurers’ share

(209,129)

(395,859)

Net change in provisions for claims

867,476

1,159,926

Claims incurred, net of reinsurance

29,789

133,895

Net operating expenses

(52,233)

(46,136)

Balance on the technical account – general business

112,863

257,845

Statement of profit or loss and other comprehensive income: (cont.)

Non-technical account – General business

For the year ended 31 December 2025

The results above area all derived from continuing operations.

Note

2025$000

2024$000

Balance on the technical account – general business

112,863

257,845

Investment income

88,703

105,102

Realised losses on investments

(11,215)

(3,974)

Unrealised gains on investments

21,157

10,654

Investment expenses and charges

(887)

(1,170)

Total investment return

97,758

110,612

Allocated investment return transferred to the general business technical account

(93,490)

(110,157)

Gain/(loss) on foreign exchange

12,075

(10,813)

Profit for the financial year

129,206

247,487

Total comprehensive income for the year

129,206

247,487

Balance sheet – Assets

As at 31 December 2025

Note

2025$000

2024$000

Financial investments

1,500,668

2,090,505

Deposits with ceding undertakings

23,234

22,989

Investments

1,523,902

2,113,494

Provision for unearned premiums

12,366

Claims outstanding

545,190

671,290

Reinsurers’ share of technical provisions

545,190

683,656

Debtors arising out of direct insurance operations

227,848

233,118

Debtors arising out of reinsurance operations

253,901

293,505

Other debtors

11,069

20,073

Debtors

492,818

546,696

Cash at bank and in hand

96,406

43,685

Overseas deposits

192,713

244,675

Other assets

289,119

288,360

Accrued interest and rent

14,717

18,050

Deferred acquisition costs

4,299

Prepayments and accrued income

14,717

22,349

Total assets

2,865,746

3,654,555

Balance sheet (cont’d) – Liabilities

As at 31 December 2025

Note

2025$000

2024$000

Members’ balances

256,836

330,933

Total capital and reserves

256,836

330,933

Provision for unearned premiums

19,775

55,426

Claims outstanding

2,384,476

3,012,070

Unexpired risk reserve

13,196

21,750

Technical provisions

2,417,447

3,089,246

Deposits received from reinsurers

39,213

26,501

Creditors arising out of direct insurance operations

19,791

28,987

Creditors arising out of reinsurance operations

125,428

176,312

Other creditors including taxation and social security

7,031

2,576

Creditors

152,250

207,875

Total liabilities

2,608,910

3,323,622

Total liabilities, capital and reserves

2,865,746

3,654,555

The financial statements on pages 15 to 47 were approved by the board of RiverStone Managing Agency Limited on 12 February 2026 and were signed on its behalf by the Directors on 17 February 2026:

J. C. P. InsleyUK Chief Financial Officer

Statement of changes in members’ balances

For the year ended 31 December 2025

2025$000

2024$000

Members’ balances brought forward at 1 January

330,933

364,759

Total comprehensive income for the year

129,206

247,487

Payments of profit to members’ personal reserve funds

(228,315)

(314,105)

Net movement on funds in syndicate

25,012

32,792

Members’ balances carried forward at 31 December

256,836

330,933

Statement of cash flows

For the year ended 31 December 2025

Note

2025$000

2024$000

Cash flows from operating activities

Profit for the financial year

129,206

247,487

Adjustments:

Decrease in gross technical provisions

(671,799)

(1,418,814))

Increase in reinsurers’ share of gross

technical provisions

138,466

421,187

Increase in debtors

61,041

369,640

Decrease in creditors

(55,625)

(179,111)

Increase in deposits received from reinsurers

12,712

14,297

Movement in other assets/liabilities

67,347

48,017

Investment return

(97,758)

(110,612)

Other

3 (k)

(49,525)

549,093

Net cash flows from operating activities

(465,935)

(58,816)

Cash flows from investing activities

Purchase of equity and debt instruments

(1,686,601))

(2,226,955))

Sale of equity and debt instruments

2,341,114

2,346,771

Investment income received

72,196

90,600

Other

(3,109)

2,337

Net cash flows from investing activities

723,600

212,753

Cash flows from financing activities

Distribution of profit

(228,315)

(314,105)

Funds In Syndicate released to members

25,012

32,792

Net cash flows from financing activities

(203,303)

(281,313)

Net increase in cash and cash equivalents

54,362

(127,376)

Cash and cash equivalents at the beginning of the year

45,555

168,450

Foreign exchange on cash and cash equivalents

(1,958)

4,481

Cash and cash equivalents at the end of the year

97,959

45,555

Notes to the financial statements – (forming part of the financial statements)

1.General Information

Syndicate 3500 is engaged in the runoff of the assets and liabilities associated with previously written insurance and reinsurance business in the Lloyd’s of London general insurance market. Additionally, Syndicate 3500 seeks to acquire new portfolios of run-off business.

Syndicate 3500 is managed by RiverStone Managing Agency Limited (“the Managing Agent”), whose registered office address is Park Gate, 161-163 Preston Road, Brighton, East Sussex, England, United Kingdom, BN1 6AU.

2.Statement of Compliance

The financial statements of Syndicate 3500 have been prepared in accordance with Regulation 5 of The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008, and in compliance with United Kingdom Accounting Standards, including Financial Reporting Standard 102, “The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland” (“FRS102”) and Financial Reporting Standard 103, “Insurance Contracts” (“FRS103”), and the Lloyd’s Syndicate Accounts Instructions Version 3.1 as modified by the Frequently Asked Questions Version 1.1 issued by Lloyd’s.

3.Summary of Significant Accounting Policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

(a)Basis of Preparation

The preparation of financial statements in conformity with FRS102 and FRS103 requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the accounting policies of Syndicate 3500. The areas involving a higher degree of judgement or complexity or areas where assumptions and estimates are significant to the financial statements, are disclosed further below.

These financial statements are prepared on a going concern basis under the historical cost convention.

(b)Restatement of Comparative Information

In order to ensure consistency with current year presentation and compliance with the Lloyd’s Syndicate Accounts Instructions Version 3.1 the prior year comparatives of the credit risk tables within note 5 have been restated.

Classification: Confidential22

(c)Going Concern

Having addressed the principal risks, the directors of the Managing Agent consider it appropriate to adopt the going concern basis of accounting in preparing these financial statements. The ability of Syndicate 3500 to meet its obligations as they fall due is underpinned by the support provided by Lloyd’s solvency process and its chain of security for any members who are unable to meet their underwriting liabilities. This chain of security includes Funds at Lloyd’s, which are further explained in Note 28.

(d)Insurance Contracts

i)Premiums Written

Premiums written relate to business incepted during the period, together with any difference between recorded premiums for prior years and those previously accrued and include estimates of premiums due but not yet receivable or notified to the Syndicate less an allowance for cancellations. Also included within Premiums written is any amount of unearned premium acquired from transactions undertaken. Premiums written are shown gross of commission payable to intermediaries and exclude related taxes.

Premiums are accreted to the income statement on a pro-rata basis over the term of the related policy, except for those contracts where the period of risk differs significantly from the contract period. In these cases, premiums are recognised over the period of risk in proportion to the amount of insurance protection provided.

The Syndicate treats retroactive quota share (“QS”) contracts as a portfolio transfer in accordance with the FRS 103 definition of a portfolio transfer, directly to the balance sheet. Only premium related to unexpired risks will be recognised as written premium. In the case where there is a difference between the premium for the expired claims and the best estimate value assigned on the reserves, this would be recognised as within the line item ‘Change in the provision for claims’.

A QS retroactive reinsurance contract is considered to economically meet the definition of a portfolio claims transfer and in the absence of specific guidance for these contracts in UK GAAP, management has considered that the application of the accounting for portfolio claims transfers set out in FRS 103 IG2.31 results in more relevant information for the users of the financial statements.

Loss Portfolio Transfers by way of reinsurance are considered to be a single outwards reinsurance contract.

Unearned premiums represent the proportion of premiums written that relate to unexpired terms of policies in force at the balance sheet date. The unearned premium reserve is translated to US Dollars at closing rates of exchange.

Acquisition costs, which represent commission and other related expenses, are allocated over the period in which the related premiums are earned.

ii)Claims Incurred and Reinsurers’ Share

Claims incurred comprise claims and related claims handling expenses paid in the year and changes in provisions for outstanding claims, including provisions for claims incurred but not reported and related expenses, together with any other adjustments to claims from previous years. Where applicable, reductions are made for salvage and other recoveries.

Provisions for outstanding claims and related reinsurance recoveries are established based on estimates of the ultimate net cost of settlement along with actuarial and statistical projections. Claims provisions are determined based upon previous claims experience, knowledge of events and the terms and conditions of the relevant policies and on interpretation of circumstances. Particularly relevant is experience with similar cases and historical claims payment trends. The approach also includes the

Classification: Confidential23

consideration of the development of loss payment trends, levels of unpaid claims, judicial decisions and economic conditions.

Syndicate 3500 applies discounting to claims provisions where there are individual claims with structured settlements that have annuity-like characteristics.

Day 1 profits or losses on acquisition of reinsurance to close or loss portfolio transfers are shown through claims incurred and reinsurers’ share.

Provisions for unexpired risks are established based on estimates of the cost of all claims and expenses in connection with insurance contracts in force after the end of the financial year where these costs are estimated to be in excess of the related unearned premiums and any premiums receivable on those contracts. The unexpired risks provision is included within ‘Other technical provisions’.

Whilst the board of directors of the Managing Agent (“the Board”) believes that the provisions for outstanding claims and related reinsurance recoveries including bad debt provisions are fairly stated, these estimates inevitably contain inherent uncertainties because significant periods of time may elapse between the occurrence of an incurred loss, the reporting of that loss to Syndicate 3500, Syndicate 3500's payment of the loss and the receipt of reinsurance recoveries. These uncertainties are inherent in much of the business previously underwritten and assumed by Syndicate 3500. The estimates made are based upon current facts available to Syndicate 3500 and the prevailing legal environment and are subjected to continual review, with any resulting adjustments reported in current earnings. Anticipated reinsurance recoveries are disclosed separately as assets on the balance sheet.

iii)Debtors and creditors arising out of direct and reinsurance operations

Debtors and creditors arising out of direct and reinsurance operations are initially recognised at transaction price or issued amount and are subsequently carried at the recoverable amount. The carrying value is reviewed for impairment at least annually based on historical performance, the terms and conditions of the relevant policies and whenever interpretation of events or circumstances indicate that the carrying amount is greater than the recoverable amount, with the impairment adjustment recorded in the statement of profit and loss. Debtors arising out of direct insurance and reinsurance operations are stated net of specific provisions against doubtful debts.

(e)Syndicate Operating Expenses

All costs relating to the administration and handling of claims are shown as part of gross claims paid. All other administrative costs of Syndicate 3500, including acquisition costs and any member's expenses, are shown as net operating expenses.

(f)Distribution of Profits and Collection of Losses

Lloyd’s operates a detailed set of regulations regarding solvency and the distribution of profits and payment of losses between Syndicates and their members. Lloyd’s continues to require membership of Syndicates to be on an underwriting year of account basis and profits and losses accrue to members according to their membership of a year of account. Normally profits and losses are settled between Syndicate 3500 and members after results for a year of account are finalised after 36 months. This period may be extended if a year of account goes into run-off. Syndicate 3500 may make earlier on account distributions or cash calls according to the cash flow of a particular year of account and subject to Lloyd’s requirements.

Classification: Confidential24

(g)Translation of Foreign Currencies

The financial statements are presented in US Dollars and, unless otherwise stated, are rounded to thousands. Items included in Syndicate 3500’s financial statements are measured using the currency of the primary economic environment in which it operates. Syndicate 3500’s functional currency is US Dollars.

Foreign currency transactions are translated into the functional currency using the exchange rate at the date of the transaction. At each year end foreign currency monetary items are translated using the year end rate of exchange. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the profit and loss account for the year.

(h)Tax

No amount has been provided in these financial statements for tax on trading income. Under Schedule 19 of the Finance Act 1993, managing agents are not required to deduct basic rate income tax from trading income. In addition, all UK basic rate income tax deducted from syndicate investment income is recoverable by managing agents and consequently the distribution made to members or their members’ agents is gross of tax. Capital appreciation falls within trading income and is also distributed gross of tax.

No provision has been made for any United States Federal Income Tax payable on underwriting results or investment earnings. Any payments on account made by Syndicate 3500 during the year have been included in the balance sheet under the heading ‘other debtors’.

No provision has been made for any other overseas tax payable by members on underwriting results.

(i)Investment Return

Investment return comprises all investment income, realised investment gains and losses and movements in unrealised gains and losses, net of investment expenses and charges.

Realised gains and losses on investments carried at market value are calculated as the difference between sale proceeds and purchase price. Movements in unrealised gains and losses on investments represent the difference between the valuation at the balance sheet date, together with the reversal of unrealised gains and losses recognised in earlier accounting periods in respect of investment disposals in the current year.

(j)Other Financial Investments

Syndicate 3500 has chosen to apply the recognition and measurement provisions of IAS 39 (as adopted for use in the EU) and the disclosure requirements of FRS 102 in respect of the financial statements.

Syndicate 3500 classifies all of its investments as financial assets at fair value through profit and loss. Management determines the classification of its investments at initial recognition and re-evaluates this at every reporting date.

A financial asset is classified as fair value through profit and loss at inception if it is acquired principally for the purpose of selling in the short term, if it forms part of a portfolio of financial assets in which there is evidence of short-term profit-taking, or if so designated by management to minimise any measurement or recognition inconsistency with the associated liabilities. All derivatives are classified as at fair value through profit and loss.

Financial assets designated as at fair value through profit and loss at inception are those that are managed and whose performance is evaluated on a fair value basis. Information about these financial

Classification: Confidential25

assets is provided internally on a fair value basis to Syndicate 3500’s key management personnel. Syndicate 3500’s investment strategy is to invest in predominantly investment grade fixed income securities, closely matching interest rate and currency liability exposures.

The fair values of listed investments are based on current bid prices on the balance sheet date. Unlisted investments for which a market exists are also stated at the current bid price on the balance sheet date or the last trading day before that date.

Net gains or losses arising from changes in the fair value of financial assets at fair value through profit and loss are presented in the Profit and Loss Account within ‘Unrealised gains on investments’ or ‘Unrealised losses on investments’ in the year in which they arise.

Syndicate 3500 discloses its investments in accordance with a fair value hierarchy with the following levels:

i)Level 1 – the unadjusted quoted price in an active market for identical assets or liabilities. An active market is one in which transactions for the asset occur with sufficient frequency and volume to provide readily and regularly available quoted prices.

ii)Level 2 – inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (derived from prices).

iii)Level 3 – inputs are unobservable (i.e. for which market data is unavailable) for the asset or liability.

(k)Related Party Transactions

Syndicate 3500 discloses transactions with related parties. Where appropriate, transactions of a similar nature are aggregated unless, in the opinion of the directors, separate disclosure is necessary to understand the effect of the transactions on the financial statements.

(l)Cashflow Statement

Syndicate 3500 discloses all investment transfers applicable to profit distributions, settlement of reinsurance to close and loss portfolio transfer premiums or intra group transfers within ‘other adjustments’ in the reconciliation to net cashflows from operating activities.

Classification: Confidential26

4.Critical Accounting Judgements and Estimation Uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Syndicate 3500 makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimation of the ultimate gross and ceded liability arising from claims made under insurance contracts is Syndicate 3500’s most critical accounting estimate. There are several sources of uncertainty that need to be considered in the estimate of the liability that Syndicate 3500 will ultimately pay for such claims. Some of these claims are not expected to be settled for many years and there is uncertainty as to the amounts at which they will be settled. The level of provision has been set on the basis of the information that is currently available, including potential outstanding loss advices, experience of development of similar claims and case law.

The most significant assumptions made relate to the level of future claims, the level of future claims settlements, the legal interpretation of insurance policies and the level of claims inflation. Whilst the directors consider that the gross provision for claims and the related reinsurance recoveries is fairly stated on the basis of the information currently available to them, the ultimate liability will vary as a result of subsequent information and events and may result in adjustments to the amount provided.

The Board remain cognisant of the potential impacts of inflation and continue to focus on ensuring that the underwriting and pricing adequately addresses inflationary trends. Reserves continue to be set incorporating the Board’s current view. The potential impact of excess inflation – both macro-economic and social - is explicitly assessed in syndicate reserves and a variety of potential outcomes is reviewed. The diversity of the syndicate reserves in terms of territory and lines of business, combined with the relative maturity of the portfolio, are important considerations when forming this view. Adjustments to the amounts of provision are reflected in the financial statements for the year in which the adjustments are made.

Syndicate 3500 applies discounting to claims provisions where there are individual claims with structured settlements that have annuity-like characteristics.

The Board continues to review the key drivers of claim settlement costs and frequency, and the methods used, and the estimates made, are reviewed regularly. Assumptions, sensitivities and claims development triangles are further detailed in note 16. No other material critical judgements or sources of material estimation uncertainty have been identified.

5.Management of Insurance and Financial Risk

Financial Risk Management Objectives

Syndicate 3500 is exposed to insurance risk through the insurance contracts that it has written and to financial risk through its financial assets, reinsurance assets and policyholder liabilities. In particular, the key financial risk is that the proceeds from financial assets are not sufficient to fund the obligations arising from insurance policies as they fall due. The most important components of this financial risk are market risk (including interest rate risk and currency risk), credit risk and liquidity risk.

Syndicate 3500 has established an overall risk management policy which focuses on the main risks to which it is exposed, paying particular attention to key risks which impact on the overall operation of the business. A risk register is maintained which is updated at least quarterly. All risks on the register are reviewed with key management personnel and the Board reviews the key risks on a quarterly basis.

Classification: Confidential27

(a)Insurance Risk

The risk under any one insurance contract is the possibility that the insured event occurs and the uncertainty over the amount of the resulting ultimate claim. By the very nature of an insurance contract, this risk is unpredictable at the outset.

The principal risk that Syndicate 3500 faces under its insurance contracts is that the actual claims and benefit payments exceed the carrying amount of the insurance liabilities. This could occur because the frequency or severity of claims and benefits are greater than estimated. The actual number and amount of claims and benefits arising from insurance contracts will vary from year to year from the level established using statistical techniques.

Experience shows that the larger the portfolio of similar insurance contracts, the smaller the relative variability about the expected outcome will be. In addition, a more diversified portfolio is less likely to be materially affected by a change in any subset of the portfolio. Syndicate 3500 has a diversified portfolio of insurance risks, which predominantly relate to business previously written.

Syndicate 3500 mitigates insurance risk through the use of reinsurance, both in the form of third party reinsurance associated with the business originally written and reinsurance with affiliated reinsurers.

i)Process for Assessment of Technical Provisions

Syndicate 3500 adopts a consistent process for the calculation of an appropriate provision for the exposures arising from the business it has written. A full reserving analysis is conducted at least annually and the technical provisions recorded on the balance sheet are in line with the Board’s view of the best estimate value of the underlying liabilities.

The technical provisions recorded at the reporting date comprise the estimated ultimate cost of settlement of all claims incurred in respect of events up to that date, whether reported or not, together with related claims handling expenses, less amounts already paid. This is estimated based on known facts at the balance sheet date. The provision is revised as part of a regular ongoing process as claims experience develops, certain claims are settled and further claims are reported.

Syndicate 3500 uses assumptions based on a mixture of internal and market data to measure its claims liabilities. This information is used to project the ultimate number and value of claims, by major class of business, using recognised statistical estimation techniques.

Assumptions are reviewed and tested regularly in the light of actual claims development and general market movements and trends. In accordance with the Lloyd’s Valuation of Liabilities Rules an independent actuary is appointed annually to provide an opinion that the technical provisions for solvency comply with the Lloyd’s Valuation of Liabilities Rules and each year of account is no less than the expected future cost of the corresponding claims and claim handling expenses for which the Syndicate is liable. Additionally, the Actuarial processes are subject to independent internal audit and risk reviews on a rotational basis.

ii)Sources of Uncertainty in the Estimation of Future Claim Payments

The sources of estimation uncertainty in establishing the ultimate liability arising from claims made under insurance contracts are discussed in Note 4.

The estimated cost of claims includes direct expenses to be incurred in settling claims, net of the expected subrogation value and other recoveries. Syndicate 3500 takes all reasonable steps to ensure that it has appropriate information regarding its claims exposures. However, given the uncertainty in establishing claims provisions, it is likely that the final outcome will prove to be different from the original liability established.

The liability for insurance contracts comprises a provision for claims incurred but not yet reported and a provision for reported claims not yet paid. The estimation of claims incurred but not reported is

Classification: Confidential28

generally subject to a greater degree of uncertainty than the estimates of claims that have already been notified for which there is more information available.

iii)Concentration of insurance risk

The concentration of insurance risk before and after reinsurance by the most material classes of business is summarised below, with reference to the carrying amount of outstanding claims (gross and net of reinsurance) arising from insurance contracts.

2025

2024

Gross Claims Outstanding

Net Claims Outstanding

Gross Claims Outstanding

Net Claims Outstanding

$000

Annuities

123,981

104,121

Casualty reinsurance

131,428

99,335

220,688

171,376

Credit and suretyship

51,960

60,626

28,483

27,407

Fire and other damage to property

224,442

124,659

234,129

156,563

General liability

1,340,509

1,082,721

1,738,492

1,410,310

Health insurance

33,809

28,873

42,959

36,719

Income protection

30,664

24,980

31,700

24,493

Legal Expenses

184

344

Marine, aviation and transport

184,989

133,272

271,706

184,510

Miscellaneous financial loss

771

615

892

Motor vehicle liability

71,931

68,425

101,116

98,400

Other motor

21,876

10,076

26,456

17,601

Property reinsurance

72,485

10,661

70,348

6,342

Worker’s compensation

73,346

52,382

114,386

79,354

Claims expense reserve

35,297

31,692

48,000

44,098

Total

2,397,672

1,852,482

3,033,820

2,362,530

iv)Sensitivity to insurance risk

The assumptions that have the greatest impact on gross and net technical provisions are those that affect the expected level of claims in the general liability classes, notably professional indemnity. The largest sensitivities on these classes are in respect of uncertainties around future numbers and amounts of claims. The reserves for these classes will be paid out over several years.

The following table presents the profit and loss impact of the sensitivity of the value of insurance liabilities disclosed in the accounts to potential movements in the assumptions applied within the technical provisions.

General insurance business sensitivities as at 31 December 2025

Sensitivity

+5.0%$000

-5.0%$000

Claims outstanding – gross of reinsurance

119,224

(119,224)

Claims outstanding – net of reinsurance

91,964

(91,964)

Classification: Confidential29

General insurance business sensitivities as at 31 December 2024

Sensitivity

+5.0%$000

-5.0%$000

Claims outstanding – gross of reinsurance

150,604

(150,603)

Claims outstanding – net of reinsurance

117,039

(117,039)

(b)Credit Risk

Credit risk is the risk that a counterparty will be unable to pay amounts in full when due. Key areas where Syndicate 3500 is exposed to credit risk are:

•reinsurers’ share of insurance liabilities;

•amounts due from reinsurers in respect of claims already paid;

•amounts due from insurance intermediaries;

•amounts due from corporate bond issuers;

•counterparty risk with respect to derivative transactions; and

•cash at bank and in hand.

As Syndicate 3500 is in runoff, its exposures to other reinsurers and insurance intermediaries are primarily determined by contracts previously written. Syndicate 3500 manages the levels of credit risk from reinsurers and insurance intermediaries by quarterly review of receivable balances by counterparty. Management assesses the creditworthiness of all reinsurers and intermediaries by reviewing credit grades provided by rating agencies and other publicly available financial information. It is Syndicate 3500’s policy to provide for reinsurer bad debts in situations where it does not expect to collect the full amount outstanding due to the financial position of the reinsurer or due to disputes over coverage. In certain circumstances, collateral is held in the form of either deposits or letters of credit from reinsurers.

Syndicate 3500 reduces its exposure to credit risk in relation to investments by entering into transactions with counterparties that are reputable and by settling trades through recognised exchanges.

The assets bearing credit risk are summarised below, together with an analysis by credit rating (AM Best or equivalent):

Year 2025

AAA$000

AA$000

A$000

BBB$000

Other$000

Not rated$000

Total$000

Shares and other variable yield securities and units in unit trusts

39,515

Debt securities and other fixed income securities

395,394

395,882

421,382

246,813

1,459,471

Loans and deposits with credit institutions

1,553

Derivative assets

129

Syndicate loans to central fund

Deposits with ceding undertakings

23,234

Reinsurers’ share of claims outstanding

258,428

195,616

2,130

93,127

549,354

Debtors arising out of direct insurance operations

63,500

164,348

227,848

Debtors arising out of reinsurance operations

66,113

23,899

35,976

126,003

Cash at bank and in hand

13,817

82,589

96,406

Other debtors and accrued interest

1,856

2,764

5,329

4,346

125

11,366

25,786

Overseas deposits

90,472

26,345

24,517

10,541

6,517

34,321

192,713

Total

487,722

826,849

778,248

263,845

6,695

378,653

2,742,012

Year 2024

AAA$000

AA$000

A$000

BBB$000

Other$000

Not rated$000

Total$000

Shares and other variable yield securities and units in unit trusts

17,077

Debt securities and other fixed income securities

709,301

510,219

556,953

264,063

6,734

2,764

2,050,034

Loans and deposits with credit institutions

1,871

Derivative assets

2,666

Syndicate loans to central fund

18,857

Deposits with ceding undertakings

22,989

Reinsurers’ share of claims outstanding

286,543

254,024

1,304

135,496

677,376

Debtors arising out of direct insurance operations

59,244

173,874

233,118

Debtors arising out of reinsurance operations

69,137

14,779

181

4,336

57,815

146,248

Cash at bank and in hand

11,815

28,387

3,483

43,685

Other debtors and accrued interest

3,306

3,369

4,888

5,428

21,045

38,123

Overseas deposits

25,714

28,365

126,246

17,953

8,281

38,116

244,675

Total

738,321

968,692

1,031,6600

288,929

19,447

449,670

3,496,719

Non-rated reinsurers primarily consist of reinsurance balances that are either fully or partly collateralised.

Assets arising from reinsurance and insurance contracts held and premium receivable are further analysed as follows:

Neither past due nor impaired assets

Past due but not impaired assets

Gross value of impaired assets

Impairment allowance

Total

2025

$000

Shares and other variable yield securities and units in unit trusts

39,515

Debt securities and other fixed income securities

1,459,471

Loans and deposits with credit institutions

1,553

Derivative assets

129

Syndicate loans to central fund

Deposits with ceding undertakings

23,234

Reinsurers' share of claims outstanding

549,354

(4,164)

545,190

Debtors arising out of direct insurance operations

227,848

Debtors arising out of reinsurance operations

126,003

114,860

31,364

(18,326)

253,901

Other debtors and accrued interest

25,786

Overseas deposits

192,713

Cash at bank and in hand

96,406

Total

2,742,012

114,860

31,364

(22,490)

2,865,746

Neither past due nor impaired assets

Past due but not impaired assets

Gross value of impaired assets

Impairment allowance

Total

2024

$000

Shares and other variable yield securities and units in unit trusts

17,077

Debt securities and other fixed income securities

2,050,034

Loans and deposits with credit institutions

1,871

Derivative assets

2,666

Syndicate loans to central fund

18,857

Deposits with ceding undertakings

22,989

Reinsurers' share of claims outstanding

677,376

(6,086)

671,290

Debtors arising out of direct insurance operations

233,118

Debtors arising out of reinsurance operations

146,248

128,296

31,894

(12,933)

293,505

Other debtors and accrued interest

38,123

Overseas deposits

244,675

Cash at bank and in hand

43,685

Total

3,496,719

128,296

31,894

(19,019)

3,637,890

The table below sets out a reconciliation of changes in impairment allowance during the period for each class of financial asset at the balance sheet date:

1 Jan

New impairment charges added in year

Changes in impairment charges

Released to profit and loss account

Foreign exchange

Others

31 Dec

2025

$000

Reinsurers' share of claims outstanding

(6,086)

2,340

(418)

(4,164))

Debtors arising out of reinsurance operations

(12,931)

(4,486)

(909)

(18,326)

)

Total

(19,017)

(2,146)

(1,327)

(22,490)

)

1 Jan

New impairment charges added in year

Changes in impairment charges

Released to profit and loss account

Foreign exchange

Others

31 Dec

2024

$000

Reinsurers' share of claims outstanding

(11,982)

5,691

205

(6,086))

Debtors arising out of reinsurance operations

(14,684)

1,507

244

(12,933)

)

Total

(26,666)

7,198

449

(19,019)

)

The table below sets out the age analysis of financial assets that are past due but not impaired at the balance sheet date:

Past due but not impaired

0-3 months past due

3-6 months past due

6-12 months past due

Greater than 1 year past due

Total

2025

$000

Debtors arising out of reinsurance operations

47,775

18,340

5,674

43,071

114,860

Total

47,775

18,340

5,674

43,071

114,860

Past due but not impaired

0-3 months past due

3-6 months past due

6-12 months past due

Greater than 1 year past due

Total

2024

$000

Debtors arising out of reinsurance operations

20,142

13,016

10,083

85,055

128,296

Total

20,142

13,016

10,083

85,055

128,296

(c)Liquidity Risk

The primary liquidity risk is the obligation to pay claims to policyholders as they fall due. The projected settlement of these liabilities is modelled, on a regular basis, using a combination of operational cash flow forecasting and actuarial techniques. The Board sets limits on the minimum levels of liquid assets that should be available to cover anticipated liabilities and unexpected levels of demand. The table below analyses the maturity of Syndicate 3500’s financial liabilities and outstanding claims. All liabilities are presented using their expected cash flows.

000

Undiscounted net cash flows

Year 2025

No maturity stated$000

0-1 yrs$000

1-3 yrs$000

3-5 yrs$000

>5 yrs$000

Total$000

Claims outstanding

666,878

813,915

384,550

532,329

2,397,672

Derivative liabilities

894

Deposits received from reinsurers

11,749

13,311

6,148

8,005

39,213

Creditors

45,348

51,377

23,732

30,899

151,356

Total

724,869

878,603

414,430

571,233

2,589,135

000

Undiscounted net cash flows

Year 2024

No maturity stated$000

0-1 yrs$000

1-3 yrs$000

3-5 yrs$000

>5 yrs$000

Total$000

Claims outstanding

788,063

1,000,1311

523,620

776,268

3,088,0822

Derivative liabilities

1,584

Deposits received from reinsurers

7,013

8,902

4,586

6,474

26,975

Creditors

54,602

69,303

35,702

50,402

210,009

Total

851,262

1,078,3366

563,908

833,144

3,326,6500

(d)Market Risk

i)Interest Rate Risk

Interest rate risk arises primarily from investments in fixed interest securities. In addition, to the extent that claims inflation is correlated to interest rates, liabilities to policyholders are exposed to interest rate risk. Syndicate 3500 works closely with its investment manager to review the duration of the investment portfolio in relation to the estimated mean duration of the liabilities.

2025Impact on results before tax$000

2025Impact on

members’

balances$000

2024Impact on results before tax$000

2024Impact on

members’

balances$000

Interest rate risk

+ 50 basis points shift in yield curves

(26,350)

(30,605)

- 50 basis points shift in yield curves

26,350

32,928

ii)Currency Risk

Syndicate 3500 manages its foreign exchange risk against its functional currency, which is US Dollars. Syndicate 3500 has a proportion of its assets and liabilities denominated in currencies other than US Dollars, the most significant being Pound Sterling, Euro, Australian Dollar and Canadian Dollar.

Syndicate 3500 seeks to mitigate the risk by matching the estimated foreign currency denominated liabilities with assets denominated in the same currency, and by the utilisation of forward currency contracts.

The table below shows the expected impact on profit for the year if Pound Sterling, Euro, Australian Dollar and Canadian Dollar weakened by 10% more in the period against the US Dollar with all other variables held constant:

Profit for the year

GBP

EUR

AUD

CAD

2025

$000

Higher (lower)

(81)

267

442

Profit for the year

GBP

EUR

AUD

CAD

2024

$000

Higher (lower)

1,578

955

(616)

1,060

The results set out above are mainly due to net foreign exchange gains on the translation of financial assets denominated in Pound Sterling, Euro, Australian Dollar and Canadian Dollar, and liabilities denominated in Pound Sterling, Euro, Australian Dollar and Canadian Dollar.

The table below summarises the carrying value of the Syndicate’s assets and liabilities, at the reporting date:

Sterling

US dollar

Euro

Canadian dollar

Australian dollar

Japanese Yen

Other

Total

2025

$000

Investments

353,541

591,278

146,953

215,825

216,305

1,523,902

Reinsurers' share of technical provisions

146,196

279,699

62,967

28,768

27,533

545,190

Debtors

81,739

328,668

46,042

25,351

11,776

687

(1,445)

492,818

Other assets

13,203

55,641

17,622

56,417

105,742

1,248

39,246

289,119

Prepayments and accrued income

5,232

4,175

1,756

1,280

2,012

262

14,717

Total assets

599,911

1,259,461

275,340

327,641

363,368

1,962

38,063

2,865,746

Technical provisions

(599,466)

(1,058,040)

)

(267,146)

(189,646)

(302,933)

(216)

(2,417,447)

)

Deposits received from reinsurers

(39,213)

Creditors

110,008

(94,524)

(49,887)

(32,519)

(82,638)

(1,007)

(1,683)

(152,250)

Total liabilities

(528,671)

(1,152,564)

)

(317,033)

(222,165)

(385,571)

(1,223)

(1,683)

(2,608,910)

)

Total capital and reserves

(71,240)

(106,897)

41,693

(105,476)

22,203

(739)

(36,380)

(256,836)

Forward contracts in place

(70,346)

120,762

38,757

(106,511)

17,338

Net

894

227,710

(2,936)

(1,035)

(4,865)

739

36,380

256,887

Sterling

US dollar

Euro

Canadian dollar

Australian dollar

Japanese Yen

Other

Total

2024

$000

Investments

576,953

780,872

203,481

318,625

233,563

2,113,4944

Reinsurers' share of technical provisions

161,964

360,645

51,687

51,989

57,371

683,656

Debtors

119,250

340,446

50,009

23,826

12,401

868

(104)

546,696

Other assets

9,557

32,129

6,247

64,894

131,956

(355)

43,932

288,360

Prepayments and accrued income

6,912

8,223

2,676

1,645

2,089

804

22,349

Total assets

874,636

1,522,315

314,100

460,979

437,380

513

44,632

3,654,5555

Technical provisions

(797,835)

(1,320,322)

(316,471)

(250,626)

(403,981)

(11)

(3,089,246)

)

Deposits received from reinsurers

(26,501)

Creditors

54,585

(112,533)

(38,894)

(35,372)

(73,440)

(597)

(1,624)

(207,875))

Total liabilities

(769,751)

(1,432,855)

(355,365)

(285,998)

(477,421)

(608)

(1,624)

(3,323,622)

)

Total capital and reserves

(104,885)

(89,460)

41,265

(174,981)

40,041

(43,008)

(330,933))

Forward contracts in place

(118,352)

223,414

31,065

(180,086)

43,959

Net

(13,467)

312,874

(10,200)

(5,105)

3,918

(95)

43,008

330,933

iii)Equity Price Risk

The syndicate holds equity funds within shares and variable yield securities. These are priced based on underlying net asset valuation statements and as such no equity risk sensitivity is disclosed.

(e)Capital Management

Syndicate 3500 maintains an efficient capital structure comprising only its member’s balance, consistent with its risk profile and the regulatory and market requirements of its business. Syndicate 3500’s objectives in managing its capital are:

•to match the profile of its assets and liabilities, taking account of the risks inherent in the business

•to satisfy the requirements of its policyholders and regulators

•to retain financial flexibility by maintaining adequate liquidity

Syndicate 3500 is regulated by the Prudential Regulation Authority, the Financial Conduct Authority and Lloyd’s and is subject to insurance solvency regulations which specify the minimum amount and type of capital that must be held in addition to the insurance liabilities. Syndicate 3500 manages capital in accordance with these rules and performs the necessary tests to ensure continuous and full compliance with such regulations. Syndicate 3500 has complied with all of its capital requirements throughout the year.

The minimum capital required to support Syndicate 3500 is required to be provided by the corporate member, either by assets held in trust by Lloyd’s specifically for that member (“Funds at Lloyd’s”), held within, and managed within, a syndicate (“Funds in Syndicate”) or as the member’s share of the members’ balances on each syndicate on which it participates.

Accordingly, all of the assets less liabilities of the Syndicate, as represented in the member's balance reported on the Balance Sheet, represent resources available to meet member and Lloyd’s capital requirements.

6.Analysis of underwriting result

An analysis of the underwriting result before investment return is presented in the table below:

2025

Gross premiums written$000

Gross premiums earned$000

Gross claims incurred$000

Gross operating expenses$000

Reinsurance balance$000

Underwriting result$000

Direct insurance

Accident and health

186

699

(12,204)

(1,438)

2,019

(10,924)

Motor (third party liability)

262

771

13,819

(832)

(793)

12,965

Motor (other classes)

2,709

(4,028)

(230)

7,093

5,544

Marine, aviation, and transport

888

1,616

25,934

(1,648)

(9,039)

16,863

Fire and other damage to property

1,320

4,996

37,740

(1,221)

28,467

69,982

Third party liability

2,570

19,815

(138,578)

)

(18,124)

59,567

(77,320)

Credit and suretyship

(115)

793

(47,517)

(478)

15,947

(31,255)

Total direct insurance

5,118

31,399

(124,834)

)

(23,971)

103,261

(14,145)

Reinsurance acceptances

927

13,309

42,835

(5,634)

(16,992)

33,518

Total

6,045

44,708

(81,999)

(29,605)

86,269

19,373

The below is an additional disclosure for Lloyd’s reporting purposes and is included to facilitate the classification of the above segments into the Lloyd’s aggregate classes of business:

2025

Gross premiums written$000

Gross premiums earned$000

Gross claims incurred$000

Gross operating expenses$000

Reinsurance balance$000

Underwriting result$000

Additional analysis

Fire and damage to property of which is:

Specialities

115

867

(28)

(3,339)

(2,385)

Energy

417

(13)

(1,907)

(1,448)

Third party liability of which is:

Energy

176

(1,233)

(161)

(312)

(1,530)

2024

Gross premiums written$000

Gross premiums earned$000

Gross claims incurred$000

Gross operating expenses$000

Reinsurance balance$000

Underwriting result$000

Direct insurance

Accident and health

3,190

3,596

20,288

(2,016)

(3,673)

18,195

Motor (third party liability)

1,578

5,631

6,091

(1,395)

(14)

10,313

Motor (other classes)

677

1,438

3,591

(339)

729

5,419

Marine, aviation, and transport

2,990

3,562

18,916

(2,749)

(752)

18,977

Fire and other damage to property

3,816

8,910

19,642

(3,380)

(8,775)

16,397

Third party liability

10,712

25,167

58,512

(24,521)

(9,895)

49,263

Credit and suretyship

1,883

2,571

11,693

(633)

(1,978)

11,653

Total direct insurance

24,846

50,875

138,733

(35,033)

(24,358)

130,217

Reinsurance acceptances

4,497

9,720

20,793

(6,998)

(6,044)

17,471

Total

29,343

60,595

159,526

(42,031)

(30,402)

147,688

The below is an additional disclosure for Lloyd’s reporting purposes and is included to facilitate the classification of the above segments into the Lloyd’s aggregate classes of business:

2024

Gross premiums written$000

Gross premiums earned$000

Gross claims incurred$000

Gross operating expenses$000

Reinsurance balance$000

Underwriting result$000

Additional analysis

Fire and damage to property of which is:

Specialities

126

294

647

(111)

(17)

813

Energy

190

(33)

(216)

Third party liability of which is:

Energy

161

374

(157)

(21)

357

Gross operating expenses includes other technical income.

All premiums written were in respect of insurance contracts concluded in the UK.

The gross premiums written for direct insurance by underwriting location of risk is presented in the table below:

2025$000

2024$000

United Kingdom

5,118

24,846

Total gross premiums written

5,118

24,846

7.Net operating expenses

Syndicate operating expenses included within net operating expenses comprise:

2025$000

2024$000

Acquisition costs

(2,375)

782

Change in deferred acquisition costs

4,408

2,379

Administrative expenses

50,200

42,975

Net operating expenses

52,233

46,136

Administrative expenses include:

2025$000

2024$000

Auditors’ remuneration:

fees payable to the Syndicate’s auditor for the audit of these financial statements

533

518

fees payable to the Syndicate’s auditor and its associates in respect of other services pursuant to legislation

818

825

The management and administration of RiverStone Managing Agency is carried out by RiverStone Management Limited (“RiverStone Management”), a fellow subsidiary, which also provides these services to other group companies. RiverStone Management recharges costs associated with this management and administration to RiverStone Managing Agency, which in turn recharges them to Syndicate 3500. Certain costs are recovered by Syndicate 3500 under the reinsurance protection agreements it has entered into with affiliated reinsurers.

Operating costs charged to Syndicate 3500 by RiverStone Managing Agency during the year were $62.4 million (2024: $58.8 million).

Fees payable for the audit of the annual accounts of RiverStone Managing Agency are $20,296 (2024: $18,362). Fees payable for audit-related assurance services provided to the managing agent are $nil (2024: $nil). There were no other fees payable for the provision of other non-audit services.

8.Key management personnel compensation

The Directors, Run-off Manager and other key management personnel of Syndicate 3500 receive no emoluments from RiverStone Managing Agency. The contracts of employment of the U.K. executive Directors and employees are with RiverStone Management which makes charges for the services described above. Emoluments paid by RiverStone Management to the key management personnel of Syndicate 3500 in respect of their services in relation to Syndicate 3500 are summarised below. These amounts represent emoluments based on an apportionment of time.

The directors of RiverStone Managing Agency Limited received the following aggregate remuneration charged to the Syndicate:

2025$000

2024$000

Directors’ emoluments

2,173

2,251

The run-off manager received the following aggregate remuneration charged to the Syndicate.

Further information in respect of the directors of RiverStone Managing Agency is provided in that company’s financial statements.

9.Investment return

2025$000

2024$000

Interest and similar income

From financial instruments designated at fair value through profit or loss

Interest and similar income

87,407

103,457

Interest on cash at bank

1,296

1,645

Other income from investments

From financial instruments designated at fair value through profit or loss

Gains on the realisation of investments

5,631

5,853

Losses on the realisation of investments

(16,846)

(9,827)

Unrealised gains on investments

22,810

11,558

Unrealised losses on the investments

(1,653)

(904)

Investment management expenses

(887)

(1,170)

Total investment return

97,758

110,612

Transferred to the technical account from the non-technical account

93,490

110,157

Investment return on Funds in Syndicate

4,268

455

2025$000

2024$000

Emoluments

369

353

An investment return of $93.5 million (2024: $110.2 million) was allocated to the technical account, Funds in Syndicate remains in the non-technical account.

10.Distribution and open years of account

A distribution to members of $170.6 million will be proposed in relation to the closing year of account (2023) (2024: $228.3 million distribution in relation to the closing year of account (2022)) and a cash call will be made in relation to the 2024 year of account.

11.Financial investments

Carrying value

Cost

2025$000

2024$000

2025$000

2024$000

Shares and other variable yield securities and units in unit trusts

39,515

17,077

39,354

17,077

Debt securities and other fixed income securities

1,459,471

2,050,034

1,457,594

2,061,6566

Loans and deposits with credit institutions

1,553

1,871

1,553

1,871

Derivative assets

129

2,666

Syndicate loans to central fund

18,857

Total financial investments

1,500,668

2,090,505

1,498,501

2,099,4611

Included in the carrying values above are listed investments as follows:

2025$000

2024$000

Listed investments

1,455,360

2,047,269

The table below presents an analysis of financial investments by their measurement classification:

2025$000

2024$000

Financial assets measured at fair value through profit or loss

1,500,668

2,090,505

Total financial investments

1,500,668

2,090,505

The table below analyses the derivative assets and liabilities by type:

2025Notional amount$000

2025Fair value$000

2024Notional amount$000

2024Fair value$000

Foreign exchange forward contracts

232,152

(764)

351,037

1,109

Total

232,152

(764)

351,037

1,109

The functional currency of Syndicate 3500 is US Dollars and consequently it is exposed to foreign exchange movements in currencies other than US Dollars. Syndicate 3500 has foreign currency forward contracts in place to provide protection against the impact of potential adverse fluctuations in exchange rates on Syndicate 3500’s net asset positions.

The foreign currency forward contracts are measured at fair value, which is determined using valuation techniques that utilise observable inputs. The key inputs used in valuing the derivatives are forward exchange rates.

As the Syndicate is fully aligned, the Syndicate holds the capital supporting their underwriting in their Syndicate’s premium trust funds. These funds are known as Funds in Syndicate (FIS). At 31 December 2025, the following amount was held as funds in syndicate:

2025$000

2024$000

Funds in Syndicate (FIS)

62,512

33,247

Total funds in syndicate

62,512

33,247

The table below analyses financial instruments held at fair value in the Syndicate’s balance sheet at the reporting date by its level in the fair value hierarchy:

2025

Level 1$000

Level 2$000

Level 3$000

Assets held at amortised cost

Total$000

Shares and other variable yield securities and units in unit trusts

39,515

Debt securities and other fixed income securities

523,121

936,350

1,459,4711

Loans and deposits with credit institutions

1,553

Derivative assets

129

Syndicate loans to central fund

Total financial investments

524,674

936,350

39,644

1,500,6688

Derivative liabilities

(894)

Total

524,674

936,350

38,750

1,499,7744

The prior year comparatives have been re-presented to show an amount of Level 2 hierarchy for corporate and other bonds.

2024

Level 1$000

Level 2$000

Level 3$000

Assets held at amortised cost

Total$000

Shares and other variable yield securities and units in unit trusts

17,077

Debt securities and other fixed income securities

765,210

1,284,8244

2,050,0344

Loans and deposits with credit institutions

1,871

Derivative assets

2,666

Syndicate loans to central fund

18,857

Total financial investments

767,081

1,284,8244

38,600

2,090,5055

Derivative liabilities

(1,556)

Total

767,081

1,284,8244

37,044

2,088,9499

Level 3 Pricing

Level 3 valuation techniques are used by Syndicate 3500 in respect of Lloyd’s central fund loan, foreign exchange forward contracts and equity funds, observable inputs include the historical cost of the loan, strike price of the forwards, the prevailing market foreign exchange rates and net asset valuation statements.

Collateralised Cash and Investments

Syndicate 3500 maintains a collateralised letter of credit facility, Lloyd’s trust funds and overseas deposits in respect of its contractual obligations under which Syndicate 3500 is obliged to collateralise its liabilities. The total amount of collateral provided at 31 December 2025 was $1.54 billion (2024: $1.38 billion).

12.Debtors arising out of direct insurance operations

2025$000

2024$000

Due within one year

227,848

233,118

Total

227,848

233,118

13.Debtors arising out of reinsurance operations

2025$000

2024$000

Due within one year

253,901

293,505

Total

253,901

293,505

14.Other debtors

2025$000

2024$000

Other

11,069

20,073

Total

11,069

20,073

Other debtors primarily comprise amounts receivable in respect of US Federal Tax.

15.Deferred acquisition costs

The table below shows changes in deferred acquisition costs assets from the beginning of the period to the end of the period:

2025

2024

Gross$000

Reinsurance$000

Net$000

Gross$000

Reinsurance$000

Net$000

Balance at 1 January

4,299

6,818

Amortised deferred acquisition costs

(4,408)

(2,379)

Foreign exchange movements

109

(140)

Balance at 31 December

4,299

16.Claims development

The following tables illustrate the development of the estimates of earned ultimate cumulative claims incurred, including claims notified and IBNR, for each successive underwriting year, illustrating how amounts estimated have changed from the first estimates made.

As these tables are on an underwriting year basis, there is an apparent large increase from amounts reported for the end of the underwriting year to one year later as a large proportion of premiums are earned in the year of account’s second year of development.

Balances have been translated at exchange rates prevailing at 31 December 2025 in all cases.

Gross:

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Total

Pure underwriting year

$000

Estimate of gross claims

at end of underwriting year

1,808,5922

3,636,4077

3,288,5655

726,496

725,248

1,252,786

202,1933

192,542

235,953

one year later

4,108,126

6,062,586

5,486,117

1,701,8477

1,332,9833

1,284,429

326,272

166,124

244,575

two years later

4,608,113

6,612,668

5,917,610

1,875,894

1,407,525

1,379,557

374,271

152,632

three years later

4,701,040

6,670,507

6,240,424

1,858,492

1,379,330

1,492,761

350,210

four years later

4,761,460

6,757,218

6,282,066

1,869,778

1,307,656

1,382,878

five years later

4,861,343

6,611,379

6,162,688

1,860,752

1,267,646

six years later

4,765,412

6,638,922

6,155,675

1,852,099

seven years later

4,754,168

6,581,479

6,220,595

eight years later

4,740,575

6,580,657

nine years later

4,742,615

Estimate of gross claims reserve

4,742,615

6,580,657

6,220,595

1,852,099

1,267,646

1,382,878

350,210

152,632

244,575

22,793,907

Provision in respect of prior years

280,514

Less gross claims paid

(4,564,094)

)

(6,323,680)

)

(5,752,012)

)

(1,644,367)

)

(1,099,834)

)

(950,543))

(223,206)

)

(83,468)

)

(48,741)

)

(20,689,945)

Gross claims reserve

178,521

256,977

468,583

207,732

167,812

432,335

127,004

69,164

195,834

2,384,476

Net:

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Total

Pure underwriting year

$000

Estimate of net claims

at end of underwriting year

1,378,3900

1,766,1555

1,872,379

487,347

466,224

1,205,192

165,638

192,542

235,953

one year later

3,031,1877

3,328,3055

3,357,528

1,106,929

787,264

1,234,447

261,734

166,124

244,575

two years later

3,367,3877

3,681,3455

3,641,603

1,163,571

993,176

1,335,569

306,275

152,632

three years later

3,449,5999

3,731,0655

3,847,720

1,279,747

1,045,686

1,444,547

307,317

four years later

3,476,2433

3,786,1566

3,821,160

1,282,052

997,866

1,351,089

five years later

3,586,1388

3,778,1833

3,788,817

1,266,221

962,458

six years later

3,587,1755

3,783,4255

3,738,141

1,267,160

seven years later

3,568,1266

3,751,5011

3,741,683

eight years later

3,546,6299

3,745,6711

nine years later

3,540,9533

Estimate of net claims reserves

3,540,9533

3,745,6711

3,741,683

1,267,160

962,458

1,351,089

307,317

152,632

244,575

15,313,538

Provision in respect of prior years

150,8777

Less net claims paid

(3,433,498)

)

(3,548,202)

)

(3,432,352)

)

(1,113,383)

)

(846,311)

(923,717)

(195,457)

(83,468)

(48,741)

(13,625,129)

)

Net claims reserve

107,455

197,469

309,331

153,777

116,147

427,372

111,860

69,164

195,834

1,839,286

17.Technical provisions

The table below shows changes in the insurance contract liabilities and assets from the beginning of the period to the end of the period.

2025

2024

Gross provisions$000

Reinsurance

Assets$000

Net$000

Gross provisions$000

Reinsurance

Assets$000

Net$000

Claims outstanding

Balance at 1 January

3,012,070

(671,290)

2,340,780

4,401,513

(1,087,835)

3,313,678

Claims paid during the year

(1,158,604)

)

320,917

(837,687)

)

(1,396,259)

)

370,228

(1,026,031))

Expected cost of current year claims

24,620

(7,328)

17,292

25,307

(3,172)

22,135

Change in estimates of prior year provisions

4,620

(59,903)

(55,283)

(210,773)

77,141

(133,632)

Foreign exchange movements

188,162

(72,753)

115,409

(33,157)

(27,652)

(60,809)

Liabilities acquired

313,608

(54,833)

258,775

225,439

Balance at 31 December

2,384,476

(545,190)

1,839,286

3,012,070

(671,290)

2,340,780

Included within reinsurers’ share of technical provisions – claims outstanding are amounts recoverable from related companies of $85.4 million (2024: $101.1 million).

The unwind of discount has been included within the statement of profit or loss - technical account – within claims incurred.

2025

2024

Gross provisions$000

Reinsurance

Assets$000

Net$000

Gross provisions$000

Reinsurance

Assets$000

Net$000

Unearned premiums

Balance at 1 January

55,426

(12,366)

43,060

88,487

(17,008)

71,479

Premiums written during the year

6,045

(13,007)

(6,962)

29,343

(346)

28,997

Premiums earned during the year

(44,708)

25,519

(19,189)

(60,595)

4,771

(55,824)

Foreign exchange movements

3,012

(146)

2,866

(1,809)

217

(1,592)

Balance at 31 December

19,775

55,426

(12,366)

43,060

The initial recognition of reinsurers’ share of unearned premium associated with the reinsurance of new liabilities is recognised in the profit and loss account as a gross up to gross premiums written.

2025

2024

Gross provisions$000

Reinsurance

Assets$000

Net$000

Gross provisions$000

Reinsurance

Assets$000

Net$000

Unexpired risk reserve

Balance at 1 January

21,750

18,060

Movements in provision

(10,163)

4,088

Foreign exchange movements

1,609

(398)

Balance at 31 December

13,196

21,750

Refer to Note 5 for the sensitivity analysis performed over the value of insurance liabilities, disclosed in the accounts, to potential movements in the assumptions applied within the technical provisions.

18.Discounted claims

Discounting may be applied to claims provisions where there are individual claims with structured settlements that have annuity-like characteristics.

The claims have been discounted as follows:

Average discounted rates

Average mean term of liabilities

2025

2024

2025

2024

Class of business

Motor (third party liability)

3.00%

20.8

20.0

Third party liability

3.00%

20.8

20.0

The period that will elapse before claims are settled is determined using impaired life mortality tables. The claims provision before and after discounting are as follows:

Undiscounted claims

Effect of discounting

After discounting

2025$000

2024$000

2025$000

2024$000

2025$000

2024$000

Gross claims provisions

244,668

221,608

(123,606)

(109,520)

121,062

112,088

Reinsurers share of total claims

(6,133)

(6,129)

979

(5,154)

(5,150)

Net claims provisions

238,535

215,479

(122,627)

(108,541)

115,908

106,938

19.Creditors arising out of direct insurance operations

2025$000

2024$000

Due within one year

19,791

28,987

Total

19,791

28,987

20.Creditors arising out of reinsurance operations

2025$000

2024$000

Due within one year

125,428

176,312

Total

125,428

176,312

21.Other creditors

2025$000

2024$000

Derivative liabilities

894

1,556

Other liabilities

6,137

1,020

Total

7,031

2,576

22.Cash and cash equivalents

2025$000

2024$000

Cash at bank and in hand

96,406

43,685

Deposits with credit institutions

1,553

1,870

Total cash and cash equivalents

97,959

45,555

Included within cash and cash equivalents are the following amounts which are not available for use by the Syndicate because they are held in FIS.

2025$000

2024$000

Cash at bank and in hand

4,742

205

Total cash and cash equivalents not available for use by the syndicate

4,742

205

23.Analysis of net debt

At 1 January 2025

Cash flows

Acquired

Fair value and exchange movements

Non-cash changes

At 31 December 2025

Cash and cash equivalents

45,555

54,362

(1,958)

97,959

Derivative financial liabilities

(1,556)

(6,680)

7,342

(894)

Total

43,999

47,682

5,384

97,065

24.Related parties

The managing agent of the syndicate, RiverStone Managing Agency Limited, and the corporate member that provides capital to the syndicate, RiverStone Corporate Capital Limited, are wholly owned subsidiaries of RiverStone Holdings Limited which is registered in England and Wales. The ultimate holding company is RiverStone International Holdings Limited (“RiverStone International”) which is registered in Jersey. The majority of the shares in RiverStone International are held by CVC Capital Partners Strategic Opportunities II LP.

The nature of the transactions with the related parties below was primarily the provision of services and insurance transactions. All transactions are entered into on an arm’s length basis.

The following amounts reflected in the profit and loss were transacted with related parties:

2025

2024

$000

RiverStone Managing Agency Limited

(62,684)

(59,568)

RiverStone International subsidiaries (Insurance)

2,554

(8,445)

Total

(60,130)

(68,013)

The following balance sheet amounts were outstanding at year-end:

2025

2024

$000

RiverStone Managing Agency Limited

(363)

(14,326)

RiverStone International subsidiaries (Insurance)

(39,168)

(8,598)

RiverStone International subsidiaries (Other)

(57,458)

(32,452)

Total

(96,989)

(55,376)

25.Post balance sheet events

There are no post balance sheet events to note.

26.Contingencies and commitments

As at 31 December 2025, there were no outstanding commitments or contingent liabilities (2024: nil).

27.Foreign exchange rates

The following currency exchange rates have been used for principal foreign currency transactions:

2025

2024

Start of period rate

End of period

rate

Average

rate

Start of period rate

End of period rate

Average

rate

Sterling

0.80

0.74

0.76

0.79

0.80

0.78

Euro

0.96

0.85

0.89

0.92

0.97

0.92

US dollar

1.00

Canadian dollar

1.45

1.37

1.40

1.34

1.44

1.37

Australian dollar

1.60

1.50

1.55

1.51

1.62

1.52

Japanese Yen

154.85

156.74

149.67

146.18

157.16

151.48

28.Funds at Lloyd’s

Every member is required to hold capital at Lloyd’s which is held in trust and known as Funds at Lloyd’s (‘FAL’). These funds are intended primarily to cover circumstances where Syndicate assets prove insufficient to meet participating members’ underwriting liabilities. The level of FAL that Lloyd’s requires a member to maintain is determined by Lloyd’s based on Prudential Regulatory Authority requirements and resource criteria. The determination of FAL has regard to a number of factors including the nature and amount of risk to be underwritten by the member and the assessment of the reserving risk in respect of business that has been underwritten. Since FAL is not under the management of the Managing Agent, no amount has been shown in these Financial Statements by way of such capital resources. However, the Managing Agent is able to make a call on the Member’s FAL to meet liquidity requirements or to settle losses.