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Beazley Furlonge Limited | Syndicate 6107 at Lloyd’s
Annual report and accounts 2025
Welcome to our 2025 Annual report
As a leading global
specialist insurer, we are
passionate about bringing
an innovative and
progressive approach
to helping our clients
mitigate the risks of
the world.
Contents
1
Highlights
2
Strategic report of the managing agent
4
Managing agent’s report
11
Statement of managing
agent’s responsibilities
12
Independent auditor’s report to
the members of Syndicate 6107
15
Statement of comprehensive income
16
Balance sheet
17
Statement of changes
in members’ balances
18
Statement of cash flows
19
Notes to the syndicate annual accounts
34
2023 underwriting year accounts
for Syndicate 6107
35
Managing agent’s report
36
Statement of managing
agent’s responsibilities
37
Independent auditor's report to
the members of Syndicate 6107 –
2023 closed year accounts
40
Profit or loss account
41
Statement of changes
in members’ balances
42
Balance sheet
43
Statement of cash flows
44
Notes to the syndicate 2023
underwriting year accounts
48
Seven-year summary of closed year
results at 31 December 2025
49
Managing agent's corporate information
Highlights
Syndicate capacity Earned premiums, net of reinsurance Claims ratio
£43.9m $51.2m 37.2%
(2024: £57.8m) (2024: $48.9m) (2024: 56.4%)
Gross premiums written Profit for the financial year Expense ratio
$36.6m $15.7m 38.8%
(2024: $63.3m) (2024: $5.9m) (2024: 39.2%)
Net premiums written Rate (decrease) on renewals Combined ratio
$36.8m (6.0)% 76.0%
(2024: $63.8m) (2024: (4.2)%) (2024: 94.6%)
www.beazley.com Beazley | Syndicate 6107 Annual report 2025
1
Strategic report of the managing agent
Overview
In the 2025 underwriting year, Syndicate 6107 ('the syndicate') reinsures 3% of certain classes of cyber business from Beazley
Group's London Market, North American, and European operations. For the 2024 underwriting year, the syndicate reinsured
6.9% of certain classes of cyber business from Beazley Group's London Market operations. For the 2023 underwriting year,
the syndicate reinsured certain classes of cyber and property treaty business from Beazley Group's London Market operations.
Prior to 2025, the syndicate was a special purpose arrangement syndicate. In 2025, the syndicate started writing business
outside the London market.
The capacities of the syndicates managed by Beazley Furlonge Limited ('BFL') are as follows:
2025 Year of Account
£ m
2024 Year of Account
£ m
623 861.0 887.2
2623 2,357.1 2,299.6
3622 35.5 37.0
3623 432.0 1,325.6
4321 — —
5623 419.3 396.6
6107 43.9 57.8
Total
4,148.8 5,003.8
Year of account results
The 2023 underwriting year has closed with a profit of $13.3m, which represents a return on capacity of 22.9% attributable to
strong premium rate growth, rate increases on the Cyber Risks portfolio and favourable claims experience. The 2024 underwriting
year is currently forecast to close with a return on capacity of 10%. The 2025 underwriting year is currently forecast to be profitable.
Rating environment
Premium rates for the underlying reinsured business decreased by 6.0% during 2025 (2024: 4.2% decrease). This has been driven
by the continued softening cyber market during 2025.
The syndicates’ gross written premiums for 2025 are $36.6m (2024: $63.3m). This decrease reflects the reduced cede % (2025
YoA: 3%, 2024 YoA: 6.9%). Net earned premiums for 2025 are $51.2m (2024: $48.9m), reflecting the earnings of the 2024 YoA
(in comparison to the 2023 YoA), outweighing the reduction in the 2025 YoA written premiums.
Combined ratio
The combined ratio is a measure of operating performance and represents the ratio of the syndicate's total costs
(excluding foreign exchange movements) to total net earned premium. The syndicate’s combined ratio for 2025 improved to
76.0% (2024: 94.6%), driven primarily by an improving claims ratio driven by less prior year reserve strengthening in the current
year.
Claims
The claims ratio is a measure of the syndicate's claims experience and represents the ratio of its net insurance claims to net
earned premium. The claims ratio of Syndicate 6107 has improved to 37.2% in 2025 (2024: 56.4%). The current year claims
ratio has benefited from prior year releases, with the prior year claims ratio having been adversely impacted by deterioration on
large losses on older years of account.
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Beazley | Syndicate 6107 Annual report 2025 www.beazley.com
Net operating expenses
Net operating expenses, including business acquisition costs, administrative expenses and profit commissions were $19.9m
(2024: $19.2m). The breakdown of these costs is shown below:
2025
2024
$m $m
Brokerage costs 15.8 14.0
Other acquisition costs
3.1 4.8
Administrative and other expenses
1.0 0.4
Net operating expenses*
19.9 19.2
* A further breakdown of net operating expenses can be seen in note 4.
The 2024 amounts in the table above have been re-presented. Amounts previously disclosed as profit commissions have now
been included as other acquisition costs. There were also amounts reclassified between brokerage costs and administrative
and other expenses.
Brokerage costs as a percentage of net earned premium were approximately 30.9% (2024: 28.7%). Brokerage costs are
deferred and expensed over the life of the associated premiums in accordance with accounting guidelines. Administrative
expenses comprise mainly charges from Lloyd's and managing agent fees. The expense ratio is a measure of the net operating
expenses to net earned premium. The expense ratio for 2025 is 38.8% (2024: 39.2%), remaining relatively stable. Other
acquisition costs mostly relate to profit commissions.
Outlook
The 2024 underwriting year is currently forecast to close with a positive return on capacity of approximately 10.0%. This has been
predominantly driven relatively favourable claims experience.
The 2025 underwriting year is developing well and is forecasting a positive return on capacity, with no significant claims events
to date.
Looking ahead to 2026, the syndicate will continue to focus on the Cyber Risks market. It will continue reinsuring
cyber business from across the Beazley Group. This will include reinsuring cyber business from Beazley Group's London Market,
North American, and European cyber book.
C C J Wong
Director
20 February 2026
www.beazley.com Beazley | Syndicate 6107 Annual report 2025
3
Managing agent’s report
The managing agent presents its report for the year ended 31 December 2025 .
This annual report is prepared using the annual basis of accounting as required by Statutory Instrument No 1950 of 2008,
the Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 and applicable United Kingdom
Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the United Kingdom
and Republic of Ireland and Financial Reporting Standard 103: Insurance Contracts.
Principal activity
The principal activity of Syndicate 6107 is the transaction of property reinsurance and cyber reinsurance business with
Beazley Group's London Market, North American, and European operations. In 2025, the syndicate only wrote cyber reinsurance
business and will continue to write only cyber reinsurance business in 2026.
Business review
A review of the syndicate’s activities and future outlook is included in the strategic report.
Risk governance and reporting
BFL’s Board of Directors (the 'Board') has the responsibility for defining and monitoring the risk appetite within which BFL and
the syndicates operate (collectively, ‘Beazley’), with key individuals and committees accountable for day-to-day management of
risks and controls. Regular reporting from the Risk Function to Board and Risk Committee meetings and senior management
committees ensures that risks are monitored and managed as they arise. Beazley Group is structured across three platforms,
one of which is the London Wholesale platform governed by BFL on behalf of the syndicates. This platform-focused structure
strengthens leadership accountability, enhances platform-level and legal entity governance, and further reinforces the
effectiveness of the overall risk management framework.
Climate-related risks and opportunities
Climate-related risks, opportunities, and other sustainability related matters were regular agenda items throughout 2025 led by
Beazley plc’s Board and supported by the boards of BFL and the Group’s other regulated subsidiaries. The Group’s sustainability
strategy, sets out the goals and targets across a wider range of sustainability issues, including climate change. Beazley plc’s
consolidated Annual report and accounts includes the Group’s disclosures for the Task Force on Climate-Related Financial
Disclosures ('TCFD') Recommendations. The 2025 Beazley plc Annual report and accounts is expected to be published on the
Group's website in March 2026.
Although not specifically listed in the risk categories detailed further in this report, the Board of BFL deems climate risk to be
inherently embedded within all risks managed across the syndicate.
Risk management
The Board maintains a sound understanding of all drivers of risk and, supported by the Risk Function, provides effective
challenge to management in overseeing risks across Beazley. The Board and the Risk Committee continue to ensure that the
risk management framework remains aligned to Beazley’s evolving risk profile, supports robust oversight and challenge, and
embeds a strong risk culture across the business.
The Board remains attentive to emerging risks and developments in the regulatory and legal landscape. The Risk Function continues
to engage in key strategic projects, providing proportionate and effective second-line challenge to support the ongoing evolution
of the risk management framework.
The effectiveness of risk management across the business is underpinned by continued collaboration between Beazley's assurance
functions, in particular Compliance, Risk Function and, Control and Compliance Assurance Team (CCAT), to deliver a coherent
second line oversight function.
Throughout the year, Beazley strengthened its risk leadership team and further matured its risk culture across the Group.
Investment in both the first and second lines of defence has progressed through the phased delivery of modernisation and
transformation programmes, to enhance oversight, agility and overall risk management capability.
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Beazley | Syndicate 6107 Annual report 2025 www.beazley.com
Risk management oversight and framework
The Board has ultimate responsibility for risk management and delegates direct oversight of the risk management framework to
its Risk Committee. The Board delegates executive oversight of the Risk Function and framework to the BFL Management
Committee, which fulfils this responsibility in conjunction with the Group Risk and Regulatory Committee.
The risk management framework sets out the approach to identifying, assessing, managing, monitoring, and reporting principal
risks. This framework underpins the delivery of the Group’s strategic priorities and supports informed decision making at all levels.
Beazley operates a governance structure founded on the ‘three lines of defence’ model, with the Risk Function forming part of
the second line of defence. Ongoing communication and collaboration across the three lines of defence ensures that Beazley
identifies and manages risks effectively.
The Board approves Beazley's risk appetite statements annually and receives regular updates throughout the year on performance
against these appetites, including impact on the risk profile of the business.
A comprehensive suite of reports from the Risk Function supports senior management and the Board in fulfilling their oversight
responsibilities. These reports include updates on risk culture, risk appetite, risk profiles, stress and scenario testing (including
reverse stress testing) and analysis, emerging and heightened risks, and the Own Risk and Solvency Assessment (ORSA).
In addition, the Risk Function provides reporting to the Remuneration Committee to ensure alignment between risk
considerations and remuneration practices.
An annual risk management plan is developed, with reference to Beazley's business strategy, external market and regulatory
developments, as well as Beazley's risk profile. In addition, the Risk Function integrates insights from internal audit
findings and other assurance activities into its risk assessment and planning processes to ensure a comprehensive and
forward-looking approach.
The approach to identifying, managing and mitigating emerging risks includes inputs from across the business, analysis of
lessons learned following incidents and industry thought leadership. The approach considers the potential materiality and
likelihood of impacts, which helps prioritise emerging risks that Beazley monitors or undertakes focused work on. Key emerging
risks in 2025 included: Artificial Intelligence (AI); Geopolitical and conflict escalation; Supply chain complexity; and Political and
social unrest/instability.
Principal risks
Beazley operates in a dynamic environment where risk exposures evolve in response to changes in market conditions,
regulatory developments, and strategic priorities. Identifying and managing these risks is fundamental to safeguarding Beazley's
financial strength and delivering sustainable value to stakeholders.
Principal risks are subject to regular review through Beazley's risk and control assessment process. The overall risk profile is
continuously monitored with emphasis on operational and regulatory risks, to ensure that our control environment and risk
management capabilities evolve in line with business change and developments in the external environment.
The table below summarises the principal risks faced by Beazley, together with the governance, oversight and control measures
in place to mitigate these exposures, and the associated outlook.
Legend for principal risks table below
Risk outlook
Increasing Stable Decreasing
www.beazley.com Beazley | Syndicate 6107 Annual report 2025
5
Managing agent’s report continued
Insurance
Risk of loss arising from uncertainties and
deviations in the occurrence, frequency, amount
and timing of insurance premium and claim
liabilities relative to the assumptions at the time
of underwriting. This includes key underwriting
risk drivers such as market cycle, catastrophe,
reinsurance reserves and climate.
• Market cycle: potential systematic mispricing
of medium- or long-tailed business that does
not support revenue to invest and cover
future claims;
• Catastrophe: one or more large events caused
by mankind (e.g. systemic cyber-event, an act
of terrorism or an act of war and/or a political
event) impacting a number of policies, and
therefore giving rise to multiple losses;
• Reserving: reserves may not be sufficiently
established to reflect the ultimate paid losses.
Insurance risk, arising in the syndicates, is principally managed by Beazley through
pricing tools, analysis of macro trends and claim frequency/severity, which ensures
exposure is well diversified and not overly concentrated in any one area, or line
of business.
Our prudent and comprehensive approach to reserving ensures adequate provisions
are made for the payment of all valid claims. High calibre claims and underwriting
professionals deliver expert service and claims handling to insureds, ensuring good
customer outcomes.
Beazley carries out periodic analysis to identify significant areas of
concentration risk across its business and monitors solvency regularly
to ensure adequate capitalisation.
Beazley continuously monitors key trends and incidents, particularly for evolving
perils such as cyber, to ensure our view of risk is up-to-date.
Beazley makes extensive use of modelling, including catastrophe modelling,
the use of our Solvency II model and stress and scenario testing to ensure
insurance risk is within approved risk appetite.
Investment in underwriting and exposure management systems and processes
continue to strengthen our risk management capabilities in an increasingly complex
landscape shaped by advances in artificial intelligence and rising geopolitical tensions.
Outlook:
While we continue to assess Beazley's insurance risk outlook as stable, supported
by active management of market cycles across all lines of business, we recognise
that the cycle of rate increases have likely peaked and in the absence of a market
turning event, we anticipate further soft market pressures in the near term,
making effective risk management increasingly critical.
Credit
Exposure to credit risk largely emanates from
intra-group reinsurance contracts with other
Beazley syndicates.
Beazley manages and oversees the credit exposure associated with intra-group
reinsurance transactions arrangements between its syndicates.
Outlook:
The credit risk outlook remains stable.
Principal risks and summary descriptions Mitigation and monitoring
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Beazley | Syndicate 6107 Annual report 2025 www.beazley.com
Group
The contagion risk that an action or inaction of
one part of the Beazley Group adversely affect
another part or parts of the syndicate. This
also includes a changes in culture which leads
to inappropriate behaviour, actions and/or
decisions including dilution of culture or
negative impact on the brand.
In 2025, Beazley further developed its Risk Culture Framework, to align with
industry best practice. The framework is underpinned by six guiding principles:
Leadership and Tone from the Top; Risk Governance and Accountability; Risk
Awareness; Communication and Transparency; Risk and Reward; and Innovation
and Adaptiveness.
A strong risk culture is the cornerstone of a mature risk function. It enables
informed and responsible decision-making, fosters transparency, and promotes
vigilance across both existing and emerging risks, ensuring Beazley remains
resilient and forward-looking in an evolving risk and regulatory landscape. In 2025,
advancing our risk culture maturity was a key management priority. A series of
organisation-wide initiatives were launched to strengthen communication and
engagement, with the aim of cultivating a consistent and robust risk culture.
These efforts focused on building a shared understanding of risk, encouraging
proactive management, and reinforcing a supportive ‘speak up’ environment.
Beazley operates shared services, systems, processes and controls across
different legal entities and jurisdictions. As such, the impact of an issue or
incident in one area of the business can have implications across the Group
(i.e. contagion risk). To mitigate this risk we continue focus on group-wide
strategic initiatives, which include continued enhancement of our internal
control environment and optimization of key business and IT processes
through deployment of technology solutions.
The BFL Management Committee and the Board oversee Group risk, with regular
monitoring conducted by the Risk Function and overseen by the Risk Committee.
Outlook:
Our Group risk outlook remains stable, with the BFL Management Committee
continuously evolving our risk culture through ongoing monitoring and annual
assessments, designed to drive enhancements.
Liquidity
Assets are not available or adequate in order
to settle financial obligations when they fall due.
By actively managing its liquidity needs, Beazley maximizes flexibility in handling
its financial assets and investment strategy. This proactive approach ensures
that clients and creditors are financially protected. Beazley regularly evaluates
the liquidity position of the syndicates, under the oversight of the Risk Committee.
Liquidity stress testing is performed to assess the largest cash flow demands
from the ten most severe Realistic Disaster Scenarios (RDSs) across a 1-day and
12-month time horizon.
Liquidity is monitored quarterly to ensure an adequate liquidity surplus is maintained,
such that liquidity exceeds internal requirements, even under stressed scenarios.
Outlook:
The liquidity risk outlook remains stable, with sufficient available liquidity to
meet expected cashflow requirements, including under stressed scenarios,
while maintaining adequate levels of liquidity and capital buffers.
Principal risks and summary descriptions Mitigation and monitoring
www.beazley.com Beazley | Syndicate 6107 Annual report 2025
7
Managing agent’s report continued
Principal risks and summary descriptions Mitigation and monitoring
Regulatory and legal
The risk of non-compliance with regulatory and
legal requirements and supervisory expectations
or failing to operate in line with the relevant
regulatory framework in the territories where
Beazley operates. This may lead to financial
loss (fines, penalties), sanctions, reputational
damage, loss of confidence from regulators,
regulatory intervention, inability to underwrite
or pay claims.
Beazley’s compliance framework supports adherence to rules, laws and regulatory
expectations including through horizon scanning, advice and training. The work
of the compliance function is overseen by the Risk and Regulatory Committee.
In 2025, we implemented a global horizon scanning tool to support the increasing
size and complexity of our multi- jurisdictional business. This tool aids in identifying,
assessing and implementing new and emerging legal and regulatory policy in a
way that is both accessible and immediate across all areas of our business and
locations that we underwrite. Additionally, it helps to increase awareness of
the regulatory environment for a wider audience, strengthens our adherence to
requirements and provides additional clarity over the expectations of our regulators.
We enhanced our regulatory engagement protocols by developing a new framework,
establishing oversight and strengthening our reporting mechanisms for sharing key
information with our regulators. To ensure effective embedding of the new protocols
and further strengthen our culture of transparency and openness, we provided
firm-wide training to ensure that expectations are understood.
Delivering good customer outcomes remains central to our business. The second
line functions contribute to the work of the Conduct Review Group, which provides
oversight of conduct risk throughout the product lifecycle, ensuring we are able to
consistently meet regulatory expectations for the treatment of our policyholders
and retail customers.
Beazley maintains a very low appetite for regulatory and legal risk. As we consolidate
the regulatory engagement achieved in 2025 and navigate an increasingly complex
environment, maintaining strong and open relationships with our regulators remains
paramount.
Outlook:
The outlook for this risk has moved from increased to stable as a result of the
positive action taken above. We also continue to enhance our key systems and
internal control frameworks as well as adapting our compliance framework to
adhere to our regulatory and compliance landscape. We expect the risk outlook to
improve as changes become well embedded.
Operational
The risk of failure of people, processes and
systems or the impact of an external event
on Beazley operations
Primary risk drivers include technology,
information management, project and change
transformation, third-party management and
the process and people related infrastructure
supporting core business activities;
Underwriting and Claims management
Our risks and controls are formally monitored and reported through a risk and
control self-assessment process and the use of quantifiable KRIs. Our ongoing
control enhancement and underwriting transformation programmes are designed
to ensure that Beazley is fully equipped to meet current and future operational
challenges, strengthening our resilience and supporting sustainable growth.
In 2025, we further advanced our investment in technology and process
re-engineering to strengthen our operational capabilities and add resilience to
internal processes and associated controls. Our business continuity, disaster
recovery and incident response plans ensure the stability of our processes and
systems, enabling our team to consistently deliver optimal outcomes for our clients.
As the external environment grows more complex, technology and cyber resilience
remain top priorities. We have advanced our cyber maturity journey, collaborating
with external agencies, and maintaining robust controls over information security,
data and operational resilience. Regular reviews of our incident response plans
and ongoing investment in cyber security training for all employees ensure we
remain vigilant and prepared.
While maintaining a low appetite for operational risk, we observed an increase in
reported risk incidents during 2025, albeit of lower materiality, reflecting both the
growing complexity of our operational environment and our enhanced risk awareness
and reporting culture. Our Risk Function works closely with first line teams to ensure
that controls and processes evolve in line with emerging risks and business change.
Outlook:
This risk has moved from an increased to stable outlook in 2026, reflecting a
reduction in the severity of operational risk incidents. This is supported by the
continued benefits of our investment in modernising controls, systems and
processes. As our transformation programmes and modernisation initiatives
progress, we expect these efforts to further enhance our operational resilience in
the years ahead.
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Beazley | Syndicate 6107 Annual report 2025 www.beazley.com
Principal risks and summary descriptions Mitigation and monitoring
Strategic
The risk of loss resulting from ineffective
strategic direction and implementation that
leads to inadequate profitability, financial loss
and/or reputational damage.
Pervasive risks impacting multiple areas of
Beazley (e.g., reputation, and sustainability)
occurring through real or perceived action,
or inaction, by a regulatory body, market and/or
third-party provider.
A negative change to Beazley’s reputation
would have a detrimental impact to BFL and the
syndicates performance and public perception.
Beazley consistently addresses key strategic opportunities and challenges, striving
to be the highest performing and most sustainable specialist insurer. We ensure
that we recognise, understand, discuss, and develop action plans for significant
strategic priorities in a timely manner, while maintaining operational effectiveness
and brand reputation.
More widely over the past 18 months, Beazley has made enhancements to its
corporate governance arrangements to align to a three-platform model. It aims to
ensure that the legal entities benefit from increased transparency, and clarity
around decision-making powers & autonomy, which aims to de-risk the organisation.
The three platform model has been implemented and will continue to be embedded
throughout 2026.
Beazley creates an environment that attracts, retains and develops high performing
talent with diverse perspectives, encouraging exploration, creation, and innovation.
By investing in understanding the complexities of the risks our clients face and
deploying our expertise where it adds value, we thrive. The BFL Management
Committee and the Board oversee these risks, in collaboration with the Group
Executive Committee.
We maintain capital in excess of regulatory requirements to support our business
plan and strategic objectives across the short, medium, and long term.
Our commitment is to create a sustainable business for our people, partners,
and planet through responsible business goals. This focuses on understanding
and reducing our carbon footprint, contributing positively to our social environment,
and upholding strong governance practices. Sustainability principles are embedded
into business planning with a documented transition plan and reputational risk is
mitigated through transparent climate-related decision-making across underwriting,
investments and operations. While market developments are considered, each is
evaluated individually to balance potential opportunities and risks.
Outlook:
As we build on our past achievements, our outlook for strategic risk in 2026
remains stable, underpinned by our commitment to disciplined growth, innovation
and sustainability.
Market
The risk of loss resulting from fluctuations in the
level and in the volatility of market prices of
assets, liabilities and financial instruments.
Investment assets may be impacted by adverse
movements in financial markets, interest rates,
exchange rates, or external market forces.
There is limited market risk for this syndicate as assets are largely held in cash or
cash equivalents but it is exposed to FX risk.
Outlook:
We maintain a stable market risk outlook for 2026, underpinned by active
investment portfolio management and a robust internal control framework.
www.beazley.com Beazley | Syndicate 6107 Annual report 2025
9
Managing agent’s report continued
Directors
A list of Directors of the managing agent who held office during the year can be found on page 49 of this syndicate annual report.
Syndicate annual general meeting
In accordance with the Syndicate Meetings (Amendment No. 1) Byelaw (No. 18 of 2000) the managing agent does not propose
to hold a syndicate annual meeting this year. Members may object to this proposal within 21 days of this notice. Any objections
must be made in writing to the managing agent.
Disclosure of information to the auditor
The Directors of the managing agent who held office at the date of approval of this managing agent’s report confirm that, so far
as they are each aware, there is no relevant audit information of which the syndicate’s auditor is unaware; and each Director
has taken all the steps that they ought to have taken as a Director to make themselves aware of any relevant audit information
and to establish that the syndicate’s auditor is aware of that information.
Auditor
Pursuant to Section 14(2) of Schedule 1 of the Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts)
Regulations 2008, the auditor will be deemed to be reappointed and Ernst & Young LLP will therefore continue in office.
On behalf of the Board
C C J Wong
Director
20 February 2026
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Beazley | Syndicate 6107 Annual report 2025 www.beazley.com
Statement of managing agent’s responsibilities
The Directors of the managing agent are responsible for preparing the syndicate financial statements in accordance with
applicable law and regulations.
The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 requires the Directors of the
managing agent to prepare their syndicate annual accounts for each financial year. Under that law they have elected to prepare
the annual accounts in accordance with UK Accounting Standards and applicable law (UK Generally Accepted Accounting
Practice), including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland.
Under Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 the Directors of the
managing agent must not approve the annual accounts unless they are satisfied that they give a true and fair view of the state
of affairs of the syndicate and of the profit or loss of the syndicate for that period. In preparing these financial statements,
the Directors of the managing agent are required to:
• select suitable accounting policies and then apply them consistently;
• make judgements and estimates that are reasonable and prudent;
• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and
explained in the annual accounts;
• assess the syndicate’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern;
and
• use the going concern basis of accounting unless they either intend to cease trading, or have no realistic alternative but to do so.
The Directors of the managing agent are responsible for keeping adequate accounting records that are sufficient to show and
explain the syndicate’s transactions and disclose with reasonable accuracy at any time the financial position of the syndicate
and enable them to ensure that the financial statements comply with the Insurance Accounts Directive (Lloyd’s Syndicate and
Aggregate Accounts) Regulations 2008. They are responsible for such internal control as they determine is necessary to enable
the preparation of financial statements that are free from material misstatement, whether due to fraud or error and have
general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the company and to
prevent and detect fraud and other irregularities.
The Directors of the managing agent are responsible for the maintenance and integrity of the syndicate and financial
information included on the syndicate’s website. Legislation in the UK governing the preparation and dissemination of financial
statements may differ from legislation in other jurisdictions.
The Directors of the managing agent are required to comply with the requirements of Section 1 of the Lloyd’s Syndicate
Accounts Instructions version 3.1 as modified by the Frequently Asked Questions version 1.1 issued by Lloyd’s (the 'Syndicate
Accounts Instructions').
The Directors of the managing agent are responsible for the preparation and review of the iXBRL tagging that has been applied
to the syndicate accounts in accordance with the instructions issued by Lloyd's, including designing, implementing and
maintaining systems, processes and internal controls to result in tagging that is free from material non-compliance with the
instructions issued by Lloyd's, whether due to fraud or error.
We confirm that to the best of our knowledge the syndicate accounts, including the iXBRL tagging applied to these accounts,
comply with the requirements of the Lloyd’s Syndicate Accounts Instructions version 3.1 as modified by the Frequently Asked
Questions version 1.1 issued by Lloyd’s.
On behalf of the Board
C C J Wong
Director
20 February 2026
www.beazley.com Beazley | Syndicate 6107 Annual report 2025
11
Independent auditor's report to the members of
Syndicate 6107
Opinion
We have audited the syndicate annual accounts of syndicate 6107 (‘the syndicate’) for the year ended 31 December 2025
which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes In Members’
Balances, the Statement of Cash Flows and the related notes 1 to 19, including a summary of significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law including The Insurance Accounts
Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008, United Kingdom Accounting Standards including FRS
102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and FRS 103 ‘Insurance Contracts’ (‘United
Kingdom Generally Accepted Accounting Practice’), and Section 1 of the Lloyd’s Syndicate Accounts Instructions V3.1 as
modified by the Frequently Asked Questions Version 1.1 issued by Lloyd’s (‘the Syndicate Accounts Instructions’).
In our opinion, the syndicate annual accounts:
• give a true and fair view of the syndicate’s affairs as at 31 December 2025 and of its Profit for the year then ended;
• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
• have been prepared in accordance with the requirements of The Insurance Accounts Directive (Lloyd’s Syndicate and
Aggregate Accounts) Regulations 2008 and the Syndicate Accounts Instructions.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)), The Insurance Accounts
Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008, the Syndicate Accounts Instructions, and other
applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of
the syndicate annual accounts section of our report. We are independent of the syndicate in accordance with the ethical
requirements that are relevant to our audit of the syndicate annual accounts in the UK, including the FRC’s Ethical Standard as
applied to other entities of public interest, and we have fulfilled our other ethical responsibilities in accordance with these
requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the syndicate annual accounts, we have concluded that the managing agent’s use of the going concern basis of
accounting in the preparation of the syndicate annual accounts is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that,
individually or collectively, may cast significant doubt on the syndicate’s ability to continue as a going concern for a period of 12
months from when the syndicate annual accounts are authorised for issue. from when the syndicate annual accounts are
authorised for issue.
Our responsibilities and the responsibilities of the directors of the managing agent with respect to going concern are described
in the relevant sections of this report. However, because not all future events or conditions can be predicted, this statement is
not a guarantee as to the syndicate’s ability to continue as a going concern.
Other information
The other information comprises the information included in the annual report and accounts other than the syndicate annual
accounts and our auditor’s report thereon. The directors of the managing agent are responsible for the other information
contained within the annual report and accounts.
Our opinion on the syndicate annual accounts does not cover the other information and, except to the extent otherwise explicitly
stated in this report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially
inconsistent with the syndicate annual accounts or our knowledge obtained in the course of the audit or otherwise appears to
be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to
determine whether this gives rise to a material misstatement in the syndicate annual accounts themselves. If, based on the
work we have performed, we conclude that there is a material misstatement of the other information, we are required to report
that fact.
We have nothing to report in this regard.
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Opinions on other matters prescribed by The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts)
Regulations 2008
In our opinion, based on the work undertaken in the course of the audit:
• the information given in the managing agent’s report for the financial year in which the syndicate annual accounts are
prepared is consistent with the syndicate annual accounts; and
• the managing agent’s report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the syndicate and its environment obtained in the course of the audit, we
have not identified material misstatements in the managing agent’s report.
We have nothing to report in respect of the following matters where The Insurance Accounts Directive (Lloyd’s Syndicate and
Aggregate Accounts) Regulations 2008 requires us to report to you, if in our opinion:
• the managing agent in respect of the syndicate has not kept adequate accounting records; or
• the syndicate annual accounts are not in agreement with the accounting records; or
• certain disclosures of the managing agents’ emoluments specified by law are not made; or
• we have not received all the information and explanations we require for our audit.
Responsibilities of the managing agent
As explained more fully in the Statement of Managing Agent’s Responsibilities set out on page 11, the directors of the
managing agent are responsible for the preparation of the syndicate annual accounts and for being satisfied that they give a
true and fair view, and for such internal control as they determine is necessary to enable the preparation of the syndicate
annual accounts that are free from material misstatement, whether due to fraud or error.
In preparing the syndicate annual accounts, the directors of the managing agent are responsible for assessing the syndicate’s
ability to continue in operation, disclosing, as applicable, matters related to its ability to continue in operation and using the
going concern basis of accounting unless the directors of the managing agent either intends to cease to operate the syndicate,
or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the syndicate annual accounts
Our objectives are to obtain reasonable assurance about whether the syndicate annual accounts as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always
detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of these syndicate annual accounts.
Explanation as to what extent 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 irregularities, including fraud. The risk of not detecting a material misstatement due to
fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for
example, forgery or intentional misrepresentations, or through collusion.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. However, the
primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the managing
agent and management.
Our approach was as follows:
• We obtained a general understanding of the legal and regulatory frameworks that are applicable to the syndicate and
determined that the most significant are direct laws and regulations related to elements of Lloyd’s Byelaws and Regulations,
and the financial reporting framework (UK United Kingdom Generally Accepted Accounting Practice), and requirements
referred to by Lloyd’s in the Syndicate Accounts instructions. Our considerations of other laws and regulations that may have
a material effect on the syndicate annual accounts included permissions and supervisory requirements of Lloyd’s of London,
the Prudential Regulation Authority (‘PRA’) and the Financial Conduct Authority (‘FCA’).
• We obtained a general understanding of how the syndicate is complying with those frameworks by making enquiries of
management, internal audit, and those responsible for legal and compliance matters of the syndicate. In assessing the
effectiveness of the control environment, we also reviewed significant correspondence between the syndicate, Lloyd’s of
London and other UK regulatory bodies; reviewed minutes of the Board and Risk Committee of the managing agent; and
gained an understanding of the managing agent’s approach to governance.
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13
Independent auditor's report to the members of Syndicate 6107
continued
• For direct laws and regulations, we considered the extent of compliance with those laws and regulations as part of our
procedures on the related syndicate annual accounts’ items.
• For both direct and other laws and regulations, our procedures involved: making enquiries of the directors of the managing
agent and senior management for their awareness of any non-compliance of laws or regulations, enquiring about the policies
that have been established to prevent non-compliance with laws and regulations by officers and employees, enquiring about
the managing agent’s methods of enforcing and monitoring compliance with such policies, and inspecting significant
correspondence with Lloyd’s, the PRA and the FCA.
• The syndicate operates in the insurance industry which is a highly regulated environment. As such the Senior Statutory
Auditor considered the experience and expertise of the engagement team to ensure that the team had the appropriate
competence and capabilities, which included the use of specialists where appropriate.
• We assessed the susceptibility of the syndicate’s annual accounts to material misstatement, including how fraud might occur
by considering the controls that the directors of the managing agent have established to address risks identified by them, or
that otherwise seek to prevent, deter or detect fraud. We also considered areas of significant judgement, complex
transactions, performance targets, economic or external pressures and the impact these have on the control environment.
Where this risk was considered to be higher, we performed audit procedures to address each identified fraud risk, including;
– Reviewing accounting estimates for evidence of management bias. Supported by our Actuaries, we assessed if there were
any indicators of management bias in the valuation of insurance liabilities and the recognition of estimated premium
income.
– Evaluating the business rationale for significant and/or unusual transactions.
– Testing the appropriateness of journal entries recorded in the general ledger, particularly in respect of judgemental areas
including valuation of insurance liabilities and estimated premium income.
A further description of our responsibilities for the audit of the annual accounts is located on the Financial Reporting Council’s
website at https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Other matter
Our opinion on the syndicate annual accounts does not cover the iXBRL tagging included within these syndicate annual
accounts, and we do not express any form of assurance conclusion thereon.
Use of our report
This report is made solely to the syndicate’s members, as a body, in accordance with The Insurance Accounts Directive (Lloyd’s
Syndicate and Aggregate Accounts) Regulations 2008. Our audit work has been undertaken so that we might state to the
syndicate’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the
fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the syndicate and the
syndicate’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Niamh Byrne (Senior Statutory Auditor)
for and on behalf of Ernst & Young LLP, Statutory Auditor
London
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20 February 2026
Statement of comprehensive income
for the year ended 31 December 2025
| 2025 | 2024 | ||
Notes | $'000 | $'000 | |
| Gross premiums written | 3 | | |
| Outward reinsurance premiums | | | |
Premiums written, net of reinsurance | | | |
Changes in unearned premium | |||
| Change in the gross provision for unearned premiums | 11 | | ( |
Change in the provision for unearned premiums, reinsurers’ share | 11 | | ( |
Net change in the provisions for unearned premiums | | ( | |
Earned premiums, net of reinsurance | | | |
| Allocated investment return transferred from the non-technical account | 6 | | |
Claims paid | |||
Gross amount | 11 | ( | ( |
Reinsurers’ share | 11 | | |
Net claims paid | ( | ( | |
Change in the provision for claims | |||
| Gross amount | 11 | ( | |
| Reinsurers' share | 11 | ( | ( |
Net change in provisions for claims | ( | ( | |
Claims incurred, net of reinsurance | ( | ( | |
| Net operating expenses | 4 | ( | ( |
Balance on the technical account - general business | | | |
| Investment income | 6 | | |
| Total investment income | | | |
| Allocated investment return transferred to technical account | ( | ( | |
| Gain on foreign exchange | | | |
Profit for the financial year | | | |
Total comprehensive income for the financial year | | |
There were no other comprehensive gains or losses in the year.
The notes on pages 19 to 33 form part of these financial statements.
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15
Balance sheet
as at 31 December 2025
| 2025 | 2024 | ||
Notes | $'000 | $'000 | |
Assets | |||
Reinsurers' share of technical provisions | |||
| Provision for unearned premiums | 11 | | |
| Claims outstanding | 11 | | |
| | | ||
Debtors | |||
| Debtors arising out of direct insurance operations | | | |
Debtors arising out of reinsurance operations | 8 | | |
| Other debtors | 9 | | |
| | | ||
Other assets | |||
| Cash at bank and in hand | 14 | | |
| | | ||
Prepayments and accrued income | |||
| Deferred acquisition costs | 10 | | |
| Other prepayments and accrued income | | | |
| | | ||
Total assets | | | |
Capital and reserves | |||
| Members' balances | | | |
| | | ||
Liabilities | |||
Technical provisions | |||
| Provision for unearned premiums | 11 | | |
| Claims outstanding | 11 | | |
| | | ||
Creditors | |||
| Creditors arising out of reinsurance operations | 12 | | |
| Other creditors | 13 | | |
| | | ||
Accruals and deferred income | | | |
Total liabilities | | | |
Total liabilities, capital and reserves | | |
The notes on pages 19 to 33 form part of these financial statements.
The syndicate annual accounts on pages 15 to 33 were approved and authorised for issue by the Board of Beazley Furlonge
Limited on 20 February 2026 and were signed on its behalf by:
C C J Wong
Director
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Statement of changes in members’ balances
for the year ended 31 December 2025
| 2025 | 2024 | |
| $'000 | $'000 | |
| Members’ balances brought forward at 1 January | | |
| Total comprehensive income for the financial year | | |
| Payments of profit to members' personal reserve funds | ( | ( |
| Members' agent fees | ( | ( |
Other | ( | ( |
Members’ balances carried forward at 31 December | | |
Members participate in syndicates by reference to year of account (YoA) and their ultimate result, assets and liabilities are
assessed with reference to policies incepting in that YoA in respect of their membership of a particular year.
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17
Statement of cash flows
for the year ended 31 December 2025
| 2025 | 2024 | ||
Notes | $'000 | $'000 | |
Cash flows from operating activities | |||
| Profit for the financial year | | | |
Adjustments for: | |||
(Decrease)/increase in gross technical provisions | 11 | ( | |
Decrease in reinsurers' share of gross technical provisions | 11 | | |
| Decrease in debtors | | | |
| Increase/(decrease) in creditors | | ( | |
| Movement in other assets/liabilities | | ( | |
Investment return | 6 | ( | ( |
| Foreign exchange | ( | | |
Net cash flows from operating activities | | | |
Cash flows from investing activities | |||
| Investment income received | | | |
Net cash flows from investing activities | | | |
Cash flows from financing activities | |||
| Distribution of profit | ( | ( | |
| Other | ( | ( | |
Net cash flows from financing activities | ( | ( | |
Net increase in cash and cash equivalents | | | |
| Cash and cash equivalents at the beginning of the year | | | |
| Foreign exchange on cash and cash equivalents | | ( | |
Cash and cash equivalents at the end of the year | 14 | | |
The notes on pages 19 to 33 form part of these financial statements.
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1 Accounting policies
Basis of preparation
Syndicate 6107 (the ‘syndicate’) comprises a group of members of the Society of Lloyd’s that underwrites insurance business
in the London Market. The managing agent of the syndicate is Beazley Furlonge Limited ('BFL'), whose registered address and
principal place of business is 22 Bishopsgate, London, EC2N 4BQ. The ultimate controlling party of BFL is Beazley plc, a company
incorporated in England and Wales.
The syndicate annual accounts have been prepared in accordance with the Insurance Accounts Directive (Lloyd’s Syndicate and
Aggregate Accounts) Regulations 2008, applicable Accounting Standards in the United Kingdom and the Republic of Ireland,
including Financial Reporting Standard 102 ('FRS 102'), Financial Reporting Standard 103 ('FRS 103') in relation to insurance
contracts, and the Lloyd’s Syndicate Accounts Instructions version 3.1 as modified by the Frequently Asked Questions Version
1.1 issued by Lloyd’s.
The financial statements have been prepared on the historic cost basis, except for financial assets at fair value through profit or
loss which are measured at fair value. All amounts presented are stated in US dollars, being the syndicate’s functional
currency, and in thousands, unless noted otherwise.
Going concern
The financial statements of the syndicate have been prepared on a going concern basis. The syndicate’s business activities,
together with the factors likely to affect its future development, performance and position, are set out in the Strategic report of
the managing agent on pages 2 - 3. In addition, note 2 includes the syndicate’s risk management objectives and the managing
agent’s objectives, policies and processes for managing its capital. The syndicate has sufficient capital for each year of account
in its Funds at Lloyd's. There is no intention to cease underwriting or cease the operations of the syndicate.
In assessing the syndicate’s going concern position as at 31 December 2025, the managing agent has considered a number of
factors, including the current statement of financial position and the syndicate’s strategic and financial plan. The assessment
concluded that, for the foreseeable future, the syndicate has sufficient capital and liquidity for the 12 months from the date the
financial statements are authorised for issue.
Use of estimates and judgements
The preparation of financial statements requires the use of estimates and judgements that affect the reported amounts of assets,
liabilities, income and expenses. Actual results may differ from those on which management’s estimates are based. Estimates
and assumptions are continually evaluated and are based on historical experience and other factors. For example, estimates
which are sensitive to economic, regulatory and geopolitical conditions could be impacted by significant changes in the external
environment such as the volatile macroeconomic environment, climate change, international conflicts, and significant changes
in legislation. Any revisions to accounting estimates are recognised in the period in which the estimate is revised and in any
future periods affected.
Specific to climate change, since responses to it are still developing, it is not possible to consider all possible future outcomes
when determining asset and liability valuations, and timing of future cash flows, as these are not yet known. Nevertheless,
the current management view is that reasonably possible changes arising from climate risks would not have a material impact
on asset and liability valuations at the year-end date.
(a) Valuation of insurance contract liabilities
The most critical estimate included within the syndicate’s balance sheet is the estimate for insurance losses incurred but not
reported (‘IBNR’), which is included within total technical provisions and reinsurers’ share of technical provisions in the balance
sheet and note 11. This estimate is critical as it outlines the current liability for future expenses expected to be incurred in
relation to claims. If this estimation was to prove inadequate then an exposure would arise in future years where a liability has
not been provided for.
The best estimate of the most likely ultimate outcome is used when calculating notified claims. This estimate is based upon the
facts available at the time, in conjunction with the claims manager’s view of likely future developments. The total estimate of gross
IBNR as at 31 December 2025 included within claims outstanding is $70,058k (2024: $69,230k).
Notes to the syndicate annual accounts
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19
1 Accounting policies continued
(b) Premium estimates
Premium written is initially based on the reinsured share of the estimated premium income (‘EPI’) of each underlying insurance
contract. Judgement is involved in determining the ultimate estimates in order to establish the appropriate premium value and,
ultimately, the cash to be received. EPI estimates are updated to reflect changes in an underwriters expectation through
consultation with brokers, coverholders and internal counterparty views, changes in market conditions, historic experience and
to reflect actual cash received for a contract.
Significant accounting policies
The financial statements have been prepared on an annual basis of accounting, whereby the incurred cost of claims,
commissions and related expenses are charged against the earned proportion of premiums, net of reinsurance as follows:
(a) Premiums written
Gross premiums written comprise premiums on contracts incepted during the financial year together with adjustments to premiums
written in previous accounting periods and estimates for premiums from contracts entered into during the course of the year. Gross
written premiums are stated before the deduction of brokerage, taxes, duties levied on premiums and other deductions.
(b) Unearned premiums
A provision for unearned premiums (gross of reinsurance) represents that part of the gross premiums written that it is estimated
will be earned in the following financial periods. It is calculated using the daily pro-rata method, under which the premium is
apportioned over the period of risk.
(c) Claims provisions and related reinsurance recoveries
Claims represent the cost of claims and claims handling expenses paid during the financial year, together with the movement in
provisions for outstanding claims, IBNR and future claims handling provisions. The provision for claims outstanding comprises
amounts set aside for claims advised and IBNR.
The IBNR amount is based on estimates calculated using widely accepted actuarial techniques which are reviewed quarterly by
the group actuary and annually by the independent syndicate reporting actuary. The techniques generally use projections, based
on past experience of the development of claims over time, to form a view on the likely ultimate claims to be experienced. For
more recent underwriting, regard is given to the variations in the business portfolio accepted and the underlying terms and
conditions. Thus, the critical assumptions used when estimating claims provisions are that the past experience is a reasonable
predictor of likely future claims development and that the rating and other models used to analyse current business are a fair
reflection of the likely level of ultimate claims to be incurred.
A provision is made at the year-end for the estimated cost of claims incurred but not settled at the balance sheet date,
including the cost of claims incurred but not yet reported to the managing agent. The managing agent 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.
(d) Liability adequacy testing
At each reporting date, liability adequacy tests are performed to ensure the adequacy of the claims liabilities net of deferred
acquisition costs and unearned premium reserves. In performing these tests, current best estimates of future contractual cash
flows, claims handling and administration expenses as well as investment income from the assets backing such liabilities are
used. Any deficiency is subsequently charged to the statement of comprehensive income and a liability for unexpired risk
provision is established.
(e) Acquisition costs
Acquisition costs comprise brokerage, premium levies, and staff related costs of the underwriters acquiring the business.
The proportion of acquisition costs in respect of unearned premiums is deferred at the balance sheet date and recognised
in later periods when the related premiums are earned.
(f) Foreign currencies
Foreign currency transactions are translated into the functional currency using average exchange rates applicable to the period
in which the transactions take place and where the syndicate considers these to be a reasonable approximation of the
transaction rate. Foreign exchange gains and losses resulting from the settlement of such transactions and from translation at
the period end of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of
comprehensive income.
Notes to the syndicate annual accounts continued
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1 Accounting policies continued
(g) Investment return
Prior to the 2025 year of account, Syndicate 6107's reinsurance arrangements are accounted for on a cash withheld basis. An
investment return payable by the host syndicates ceding business to Syndicate 6107 is calculated based on premium and
claims held by the the host syndicate being used as a proxy for cash, as outlined under the terms of the reinsurance contract.
Investment return is initially recorded in the non-technical account. A transfer is made from the non-technical account to the
general business technical account to reflect the investment return on funds supporting underwriting business.
The 2025 year contracts do not operate on a cash withheld basis and investment return is earned on the underlying assets held
by the Syndicate.
(h) Ceded reinsurance
These are contracts entered into by the syndicate with reinsurers under which the syndicate is compensated for losses on
contracts issued by the syndicate and that meet the definition of an insurance contract. Insurance contracts entered into by the
syndicate under which the contract holder is another insurer (inwards reinsurance) are included with insurance contracts.
Any benefits to which the syndicate is entitled under its reinsurance contracts held are recognised as reinsurance assets. These
consist of balances due from reinsurers relating to claims and also includes the provision for unearned premiums, reinsurers’
share. Balances due relating to the reinsurers share of claims are based on calculated amounts of outstanding claims
recoveries and projections for IBNR, net of estimated irrecoverable amounts having regard to the reinsurance programme in
place for the class of business, the claims experience for the period and the current security rating of the reinsurer involved.
Reinsurance liabilities are primarily premiums payable for reinsurance contracts and are recognised as an expense when due.
Reinsurance assets are assessed for impairment at each reporting date. If there is objective evidence of impairment,
then the carrying amount is reduced to its recoverable amount and the impairment loss is recognised in the statement of
comprehensive income.
(i) Insurance debtors and creditors
Insurance debtors and creditors are recognised when the host syndicate or insurance carrier is on risk. These include amounts
only due from host syndicate. These are classified as ‘insurance debtors and creditors’ as they are non-derivative financial
assets with fixed or determinable payments that are not quoted on an active market. Insurance debtors are measured at
amortised cost less any provision for impairment. Insurance creditors are stated at amortised cost. Reinsurance debtors and
creditors are referred to in the previous policy above.
(j) Other debtors
Other debtors principally consist of intercompany debtor balances and are carried at amortised cost less any impairment losses.
(k) Other creditors
Other creditors principally consist of amounts due to related entities and sundry creditors, and are stated at amortised cost
determined on the effective interest rate method.
(l) Cash and cash equivalents
This consists of cash at bank and in hand, deposits held at call with banks and other short-term highly liquid investments with
maturities of three months or less from the date of acquisition. Cash at bank and in hand balances are classified as loans and
receivables and carried at amortised cost less any impairment losses.
(m) Taxation
Under Schedule 19 of the Finance Act 1993 managing agents are not required to deduct basic rate income tax from trading
income. In addition, all UK basic rate income tax (currently at 20%) deducted from syndicate investment income is recoverable
by managing agents and consequently the distribution made to members or their members’ agents is gross of tax. Capital
appreciation falls within trading income and is also distributed gross of tax.
No provision has been made for any US federal income tax payable on underwriting results or investment earnings.
Any payments on account made by the syndicate during the year 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.
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21
2 Risk management
The managing agent has identified the risks arising from its activities and has established policies and procedures to manage
these items in accordance with its risk appetite. The sections below outline the syndicate’s risk appetite and explain how the
managing agent defines and manages each category of risk. The risk management framework is discussed in the Managing
agent's report.
2.1 Insurance risk
The syndicate’s insurance business assumes the risk of loss from persons or organisations that are directly exposed to an
underlying loss. Insurance risk arises from this risk transfer due to inherent uncertainties about the occurrence, amount and
timing of insurance liabilities. The four key components of insurance risk are underwriting, reinsurance, claims management and
reserving. Each element is considered below:
(a) Underwriting risk
Underwriting risk comprises four elements that apply to all insurance products offered by the syndicate:
• cycle risk – the risk that business is written without full knowledge as to the (in)adequacy of rates, terms and conditions;
• event risk – the risk that individual risk losses or catastrophes lead to claims that are higher than anticipated in plans and pricing;
• pricing risk – the risk that the level of expected loss is understated in the pricing process; and
• expense risk – the risk that the allowance for expenses and inflation in pricing is inadequate.
The annual business plans for each underwriting team reflect the syndicate’s underwriting strategy, and set out the classes of
business, the territories and the industry sectors in which business is to be written. These plans are approved by the Board of
BFL and monitored by the Underwriting Committee.
The host syndicates’ underwriters calculate premiums for risks written based on a range of criteria tailored specifically to each
individual risk. These factors include but are not limited to the financial exposure, loss history, risk characteristics, limits,
deductibles, terms and conditions and acquisition expenses.
The managing agent also recognises that insurance events are, by their nature, random, and the actual number and size of events
during any one year may vary from those estimated using established statistical techniques.
To address this, the managing agent sets out the exposure that it is prepared to accept in certain territories to a range of
events such as natural catastrophes and specific scenarios which may result in large industry losses. This is monitored through
regular calculation of Realistic Disaster Scenarios. The aggregate position is monitored at the time of underwriting a risk,
and reports are regularly produced to highlight the key aggregations to which the syndicate is exposed.
The managing agent uses a number of modelling tools to monitor its exposures against the agreed risk appetite set and to
simulate catastrophe losses in order to measure the effectiveness of the syndicate’s reinsurance programmes. Stress and
scenario tests are also run using these models. The range of scenarios considered includes natural catastrophe, cyber, marine,
liability, political, terrorism and war events.
One of the largest types of event exposure relates to natural catastrophe events such as windstorm or earthquake. With the
increasing risk from climate change impacting the frequency and severity of natural catastrophes, the managing agent continues
to monitor its exposure. Where possible the managing agent measures geographic accumulations and uses its knowledge of
the business, historical loss behaviour and commercial catastrophe modelling software to assess the expected range of losses
at different return periods. Upon application of the reinsurance coverage purchased, the key gross and net exposures are
calculated on the basis of extreme events at a range of return periods.
The syndicate also has exposure to man-made claim aggregations, such as those arising from terrorism and data breach
events. The host syndicate and insurers choose to underwrite data breach insurance within the Cyber Risks division using its
team of specialist underwriters, claims managers and data breach services managers. Other than for data breach, the
reinsuring syndicates and insurers preference is to exclude cyber exposure where possible.
To manage underwriting exposures, the managing agent has developed limits of authority and business plans which are binding
upon all staff authorised to underwrite and are specific to underwriters, classes of business and industry.
Notes to the syndicate annual accounts continued
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2 Risk management continued
These authority limits are enforced through a comprehensive sign-off process for underwriting transactions including dual
sign-off for all line underwriters and peer review for all risks exceeding individual underwriters authority limits. Exception reports
are also run regularly to monitor compliance.
All underwriters also have a right to refuse renewal or change the terms and conditions of insurance contracts upon renewal.
Rate monitoring details, including limits, deductibles, exposures, terms and conditions and risk characteristics are also
captured and the results are combined to monitor the rating environment for each class of business.
Operating divisions
All risks are underwritten in the UK under one reinsurance contract. All risks relate to property and cyber reinsurance business.
(b) Reinsurance risk
Reinsurance risk to the syndicate arises where reinsurance contracts put in place to reduce gross insurance risk do not perform
as anticipated, result in coverage disputes or prove inadequate in terms of the vertical or horizontal limits purchased. Failure of
a reinsurer to pay a valid claim is considered a credit risk which is detailed separately below.
The syndicate’s reinsurance programmes complement the underwriting teams business plans and seek to protect syndicate
capital from an adverse volume or volatility of claims on both a per risk and per event basis. In some cases the syndicate
deems it more economic to hold capital than purchase reinsurance. These decisions are regularly reviewed as an integral part
of the business planning and performance monitoring process.
(c) Claims management risk
Claims management risk may arise within the syndicate in the event of inaccurate or incomplete case reserves and claims
settlements, poor service quality or excessive claims handling costs in the host syndicates and insurers. These risks may
damage the Beazley brand and undermine its ability to win and retain business or incur punitive damages. These risks can
occur at any stage of the claims life-cycle.
The managing agent’s claims teams are focused on delivering quality, reliability and speed of service to both internal and
external clients. Their aim is to adjust and process claims in a fair, efficient and timely manner, in accordance with the policy’s
terms and conditions, the regulatory environment, and the business’s broader interests. Case reserves are set for all known
claims liabilities, including provisions for expenses, as soon as a reliable estimate can be made of the claims liability.
(d) Reserving and ultimate reserves risk
Reserving and ultimate reserves risk occurs within the syndicate where established insurance liabilities are insufficient through
inaccurate forecasting, or where there is inadequate allowance for expenses and reinsurance bad debt in provisions.
To manage reserving and ultimate reserves risk, the managing agent's actuarial team uses a range of recognised techniques
to project gross premiums written, monitor claims development patterns and stress test ultimate insurance liability balances.
An external independent actuary also performs an annual review to produce a statement of actuarial opinion for the syndicate.
The objective of the managing agent's reserving policy is to produce accurate and reliable estimates that are consistent over
time and across classes of business. The estimates of gross premiums written and claims prepared by the actuarial
department are used through a formal quarterly peer review process to independently test the integrity of the estimates
produced by the underwriting teams for each class of business. These meetings are attended by senior management, senior
underwriters, actuarial, claims, and finance representatives.
www.beazley.com Beazley | Syndicate 6107 Annual report 2025
23
2 Risk management continued
An increase or decrease in total claims liabilities would have the following impact on profit and members' balances:
Sensitivity to insurance risk (claims reserves)
Impact on profit and members' balances'
2025 2024
$'000 $'000
Claims outstanding - gross of reinsurance
116,342 111,358
Claims outstanding - net of reinsurance
106,162
97,166
5% increase in gross claims reserve
(5,817 )
(5,568 )
5% decrease in gross claims reserve
5% increase in net claims reserve
(5,308 )
(4,858 )
5% decrease in net claims reserve
2.2 Market risk
Market risk arises where the value of assets and liabilities changes as a result of movements in foreign exchange rates and
interest rates.
Foreign exchange risk
The functional and presentational currency of the syndicate is the US dollar. The effect of this on foreign exchange risk is that
the syndicate is exposed to fluctuations in exchange rates for non-dollar denominated transactions and net assets.
The syndicate has four main settlement currencies: US dollars, sterling, Canadian dollars and euro. Transactions in all
currencies are converted to US dollars on initial recognition and revalued at the reporting date. Remaining foreign exchange risk
is actively managed as described below.
The syndicate’s assets are broadly matched by currency to the principal underlying settlement currencies of its insurance
liabilities. This helps mitigate the risk that future movements in exchange rates would materially impact the syndicate’s assets
required to cover its insurance liabilities. The following table summarises the carrying value of total assets and total liabilities
categorised by currency:
| UK £ | US $ | EUR € | CAD $ | Total | |
| 31 December 2025 | $'000 | $'000 | $'000 | $'000 | $'000 |
| Reinsurers' share of technical provisions | | | | | |
| Debtors | | | | | |
| Other assets | | | | | |
| Prepayments and accrued income | | | | | |
| Total assets | | | | | |
| Technical provisions | ( | ( | ( | ( | ( |
| Creditors | ( | ( | ( | ( | ( |
| Accruals and deferred income | ( | | | | ( |
| Total liabilities | ( | ( | ( | ( | ( |
| Total Capital and Reserves | ( | ( | ( | | ( |
UK £ | US $ | EUR € | CAD $ | Total | |
| 31 December 2024 | $'000 | $'000 | $'000 | $'000 | $'000 |
| Reinsurers' share of technical provisions | | | | | |
| Debtors | | | | | |
| Other assets | | | | | |
| Prepayments and accrued income | | | | | |
| Total assets | | | | | |
| Technical provisions | ( | ( | ( | ( | ( |
| Creditors | ( | ( | ( | ( | ( |
| Accruals and deferred income | ( | ( | | | ( |
| Total liabilities | ( | ( | ( | ( | ( |
| Total Capital and Reserves | ( | ( | ( | | ( |
Notes to the syndicate annual accounts continued
24
Beazley | Syndicate 6107 Annual report 2025 www.beazley.com
2 Risk management continued
Sensitivity analysis - Foreign exchange risk
In 2025, the managing agent managed the syndicate's foreign exchange risk by periodically assessing its non-dollar exposures
while targeting net assets to be predominately US dollar denominated. On a forward looking basis an assessment is made of
expected future exposure development and appropriate currency trades put in place to reduce risk.
Fluctuations in the syndicate’s trading currencies against the US dollar would result in a change to profit and members'
balances. The table below gives an indication of the impact on profit and members' balances of a percentage change in relative
strength of US dollar against the value of sterling, Canadian dollar, Australian dollar, and euro, simultaneously.
Impact on profit and members' balances
2025 2024
Change in exchange rate of sterling, Canadian dollar, Australian dollar and euro relative to US dollar
$'000 $'000
Dollar weakens 10% against other currencies 891 411
Dollar strengthens 10% against other currencies (891) (411)
Interest rate risk
The syndicate receives an investment return from the host syndicates. The syndicate is also exposed to movement in interest
rates and interest rates on its cash deposits.
Price risk
This is not a material risk to the syndicate as it does not hold any financial assets and or liabilities other than those listed
under reinsurance debtors and creditors.
2.3 Credit risk
Credit risk arises from the failure of another party to perform its financial or contractual obligations to the syndicate or host
syndicate/insurers in a timely manner. The primary sources of credit risk for the syndicate are:
• reinsurers – whereby reinsurers may fail to pay valid claims against a reinsurance contract held by the syndicate or host
syndicate/insurer;
• brokers and coverholders – whereby counterparties fail to pass on premiums or claims collected or paid on behalf of the host
syndicate or insurer; and
• cash at bank and in hand.
The syndicate’s core business is to accept significant insurance risk and the appetite for other risks is low. This protects the
syndicate’s capital from erosion so that it can meet its insurance liabilities.
The managing agent and host syndicates limit exposure to a single counterparty or a group of counterparties and analyse the
geographical locations of exposures when assessing credit risk.
An approval system also exists for all new brokers, and broker performance is carefully monitored by the managing agent.
Regular exception reports highlight trading with non-approved brokers, and the managing agent’s credit control function
frequently assesses the ageing and collectability of debtor balances. Any large, aged items are prioritised and where collection
is outsourced, incentives are in place to support these priorities.
The managing agent has developed processes to formally examine all reinsurers before entering into new business
arrangements. New reinsurers are approved by the Reinsurance Security Committee, which also reviews arrangements with all
existing reinsurers at least annually. Vulnerable or slow-paying reinsurers are examined more frequently.
www.beazley.com Beazley | Syndicate 6107 Annual report 2025
25
2 Risk management continued
The following tables summarise the syndicate’s concentrations of credit risk for assets with credit risk:
| AAA | AA | A | BBB | Other | Not rated | Total | |
31 December 2025 | $'000 | $'000 | $'000 | $'000 | $'000 | $'000 | $'000 |
| Reinsurers’ share of claims outstanding | | | | | | | |
| Debtors arising out reinsurance operations | | | | | | | |
| Cash at bank and in hand | | | | | | | |
| Other debtors and accrued interest | | | | | | ||
| Total | | | | | |
| AAA | AA | A | BBB | Other | Not rated | Total | |
31 December 2024 | $'000 | $'000 | $'000 | $'000 | $'000 | $'000 | $'000 |
| Reinsurers’ share of claims outstanding | | | | | | | |
| Debtors arising out reinsurance operations | | | | | | | |
| Cash at bank and in hand | | | | | | | |
| Other debtors and accrued interest | | | | | | | |
| Total | | | | | | | |
Based on all evidence available, debtors arising out of reinsurance operations and other debtors have not been impaired and
no impairment provision has been recognised in respect of these assets.
The syndicate has no insurance debtors and reinsurance assets that are past due but not impaired at the reporting date.
Neither past due
nor impaired
Past due but not
impaired
Gross value of
impaired assets
Impairment
allowance Total
31 December 2025
$'000 $'000 $'000 $'000 $'000
Reinsurers’ share of claims outstanding 10,180 — — — 10,180
Debtors arising out of direct insurance operations — — — — —
Debtors arising out reinsurance operations 34,186 — — — 34,186
Cash at bank and in hand 69,033 — — — 69,033
Other debtors and accrued interest 50,138 — — — 50,138
Total 163,537 — — — 163,537
Neither past due
nor impaired
Past due but not
impaired
Gross value of
impaired assets
Impairment
allowance Total
$'000 $'000 $'000 $'000 $'000
Reinsurers’ share of claims outstanding 14,192 — — — 14,192
Debtors arising out of direct insurance operations — — — — —
Debtors arising out reinsurance operations 24,409 — — — 24,409
Cash at bank and in hand 36,201 — — — 36,201
Other debtors and accrued interest 88,009 — — — 88,009
Total 162,811 — — — 162,811
Exposure to credit risk
The carrying amount of financial assets and reinsurance assets represents the maximum credit risk exposure. The syndicate
does not hold any collateral as security or purchase any credit enhancements (such as guarantees, credit derivatives and
netting arrangements that do not qualify for offset).
Notes to the syndicate annual accounts continued
26
Beazley | Syndicate 6107 Annual report 2025 www.beazley.com
2 Risk management continued
The tables below set out the age analysis of financial assets that are past due but not impaired at the balance sheet date:
Past due but not impaired assets
0 - 3 months
past due
3 - 6 months
past due
6 - 12 months
past due
Greater than 1
year past due Total
31 December 2025
$'000 $'000 $'000 $'000 $'000
Debtors arising out of direct insurance operations — — — — —
Debtors arising out of reinsurance operations — — — — —
Total — — — — —
Past due but not impaired assets
0 - 3 months
past due
3 - 6 months
past due
6 - 12 months
past due
Greater than 1
year past due Total
31 December 2024
$'000 $'000 $'000 $'000 $'000
Debtors arising out of direct insurance operations — — — — —
Debtors arising out of reinsurance operations — — — — —
Total — — — — —
2.4 Liquidity risk
Liquidity risk arises where cash may not be available to pay obligations when due at a reasonable cost. Liquidity risk is not
material to the syndicate as all financial assets have a maturity of less than one year at the reporting date.
The maturity analysis presented in the table below shows the remaining contractual maturities for the syndicate’s insurance
contracts and financial instrument liabilities. For insurance and reinsurance contracts, the contractual maturity is the estimated
date when the gross undiscounted contractually required cash flows will occur. For financial liabilities, it is the earliest date on
which the gross undiscounted cash flows (including contractual interest payments) could be paid assuming conditions are
consistent with those at the reporting date.
Undiscounted net cash flows
No maturity
stated 0-1 yrs 1-3 yrs 3-5 yrs >5yrs Total
31 December 2025
$'000 $'000 $'000 $'000 $'000 $'000
Claims outstanding — 39,355 44,359 18,616 14,012 116,342
Creditors — 8,687 — — — 8,687
Other liabilities — 580 — — — 580
Total
Undiscounted net cash flows
No maturity
stated 0-1 yrs 1-3 yrs 3-5 yrs >5yrs Total
31 December 2024 $'000 $'000 $'000 $'000 $'000 $'000
Claims outstanding — 39,835 42,930 16,678 11,915 111,358
Creditors — 7,144 — — — 7,144
Other liabilities — 148 — — — 148
Total
2.5 Capital management
Capital framework at Lloyd’s
The Society of Lloyd’s is a regulated undertaking and subject to the supervision of the Prudential Regulation Authority under the
Financial Services and Markets Act 2000.
www.beazley.com Beazley | Syndicate 6107 Annual report 2025
27
2 Risk management continued
Within this supervisory framework, Lloyd’s applies capital requirements at a member level and centrally to ensure that Lloyd’s
complies with Solvency II, and beyond that to meet its own financial strength, license and ratings objectives. Although,
as described below, the Lloyd’s capital setting processes use a capital requirement set at syndicate level as a starting point,
the requirement to meet Solvency II and Lloyd’s capital requirements apply at an overall and member level respectively, not at a
syndicate level. Accordingly the capital requirement in respect of Syndicate 6107 is not disclosed in these financial statements.
Lloyd’s capital setting process
In order to meet Lloyd’s requirements, each syndicate is required to calculate its Solvency Capital Requirement (SCR) for the
prospective underwriting year. This amount must be sufficient to cover a 1 in 200 year loss, reflecting uncertainty in the
ultimate run-off of underwriting liabilities (SCR ‘to ultimate’). The syndicate must also calculate its SCR at the same confidence
level but reflecting uncertainty over a one year time horizon (one year SCR) for Lloyd’s to use in meeting Solvency II requirements.
The SCRs of each syndicate are subject to review by Lloyd’s and approval by the Lloyd’s Capital and Planning Group.
A syndicate may be comprised of one or more underwriting members of Lloyd’s. Each member is liable for its own share of
underwriting liabilities on the syndicate(s) on which it participates but not other members’ shares. Accordingly, the capital
requirement that Lloyd’s sets for each member operates on a similar basis. Each member’s SCR shall thus be determined by
the sum of the member’s share of the syndicate SCR ‘to ultimate’. Where a member participates on more than one syndicate,
a credit for diversification is provided to reflect the spread of risk, but consistent with determining an SCR which reflects the
capital requirement to cover a 1 in 200 year loss ‘to ultimate’ for that member. Over and above this, Lloyd’s applies a capital
uplift to the member’s capital requirement, known as the Economic Capital Assessment (‘ECA’). The purpose of this uplift,
which is a Lloyd’s not a Solvency II requirement, is to meet Lloyd’s financial strength, license and ratings objectives. The capital
uplift applied for 2025 was 35% (2024: 35%) of the member’s SCR ‘to ultimate'.
Provision of capital by members
Each member may provide capital to meet its ECA either by assets held in trust by Lloyd’s specifically for that member (funds at
Lloyd’s), held within and managed within a syndicate (funds in syndicate) and/or as the member’s share of the Solvency II
members’ balances on each syndicate on which it participates.
Accordingly all of the assets less liabilities of the syndicate, as represented in the members’ balances reported on the balance
sheet on page 15, represent resources available to meet members’ and Lloyd’s capital requirements.
3 Analysis of underwriting result
Underwriting result is the balance on the technical result - general business, less the allocated investment return transferred
from the non-technical account.
Gross premiums
written
Gross premiums
earned
Gross claims
incurred
Gross operating
expenses
Reinsurance
balance
Underwriting
result
2025 $'000 $'000 $'000 $'000 $'000 $'000
Direct Insurance — — — — — —
Reinsurance acceptances 36,603 51,065 (18,304 ) (19,871 ) (562 ) 12,328
Total direct insurance and
reinsurance accepted
Gross premiums
written
Gross premiums
earned
Gross claims
incurred
Gross operating
expenses
Reinsurance
balance
Underwriting
result
2024 $'000 $'000 $'000 $'000 $'000 $'000
Direct Insurance — — — — — —
Reinsurance accepted 63,311 49,196 (20,726 ) (19,160 ) (7,145 ) 2,165
Total direct insurance and
reinsurance accepted
Notes to the syndicate annual accounts continued
28
Beazley | Syndicate 6107 Annual report 2025 www.beazley.com
4 Net operating expenses
| 2025 | 2024* | |
| $'000 | $'000 | |
Acquisition costs | | |
| Change in deferred acquisition costs | | ( |
| Administrative expenses | | |
| Members’ standard personal expenses | | |
Net operating expenses | | |
*These balances have been re-presented. Amounts previously disclosed in the reinsurance commission and profit participation
line are now shown in acquisitions costs and change in deferred acquisition costs lines.
Administrative expenses include: | ||
| 2025 | 2024 | |
| $'000 | $'000 | |
| Fees payable to the syndicate’s auditor for the audit of these syndicate annual accounts | | |
| Other services pursuant to legislation | | |
Total | 337 | 214 |
Fees payable to the syndicate's auditor in relation to other services pursuant to legislation primarily relate to the review and
audit of syndicate regulatory returns along with the statement of actuarial opinion.
5 Staff numbers and costs
The syndicate has no employees. All staff are employed by Beazley Management Limited ('BML'), a related company to the
managing agent, both of which operate within the Beazley Group. The average number of persons employed by BML analysed by
category was as follows:
Number of employees | ||
| 2025 | 2024 | |
| Administration and finance | | |
| Underwriting | | |
| Claims | | |
| Investments | | |
Total | | |
6 Investment return
| 2025 | 2024 | |
| $'000 | $'000 | |
Interest and similar income | ||
From financial assets classified at amortised cost | ||
| Interest on cash at bank | | |
| Interest and similar income | | |
Total investment return | | |
Transferred to the technical account from the non-technical account | | |
7 Distribution and open years of account
A distribution of $13,310 k to members will be proposed in relation to the 2023 year of account which is closing (2024:
distribution of $11,635 k profit for 2022 year of account).
www.beazley.com Beazley | Syndicate 6107 Annual report 2025
29
8 Debtors arising out of reinsurance operations
| 2025 | 2024 | |
| $'000 | $'000 | |
Due within one year | | |
Due after one year | | |
Total | | |
9 Other debtors
| 2025 | 2024 | |
| $'000 | $'000 | |
Inter-syndicate balances | ||
| Amounts due from Syndicate 2623 | 25,788 | 54,450 |
| Amounts due from Syndicate 623 | 7,259 | 12,937 |
| Amounts due from Syndicate 3623 | 16,108 | 19,695 |
| Total inter-syndicate balances | | |
| Amounts due from members | | |
Total | | |
The above balances are due within one year.
10 Deferred acquisition costs
| 2025 | 2024 | |||||
| Gross | Reinsurance | Net | Gross | Reinsurance | Net | |
| $'000 | $'000 | $'000 | $'000 | $'000 | $'000 | |
Balance at 1 January | | | ( | | ||
Incurred deferred acquisition costs | | | | | ||
Amortised deferred acquisition costs | ( | ( | ( | | ( | |
Foreign exchange movements | | ( | | ( | ||
Balance at 31 December | | | | | | |
11 Technical provisions
The table below shows the changes in the insurance contract liabilities and assets from the beginning of the period to the end
of the period.
2025 2024
Gross
provisions
Reinsurance
assets Net
Gross
provisions
Reinsurance
assets Net
Claims outstanding
$'000
$'000
$'000
$'000
$'000
$'000
Balance at 1 January 111,358 (14,192 ) 97,166 113,609 (24,968 ) 88,641
Claims paid during the year (15,122 ) 3,273 (11,849 )
(22,735 ) 3,962
(18,773 )
Expected cost of current year claims 30,048 (4,366 ) 25,682
Change in estimates of prior year provisions (11,744 ) 5,111 (6,633 )
(4,367 ) 6,660
Foreign exchange movements 1,802 (6 ) 1,796 (242 ) (17 ) (259 )
Balance at 31 December
2025 2024
Gross
provisions
Reinsurance
assets Net
Gross
provisions
Reinsurance
assets Net
Unearned premiums
$'000
$'000 $'000 $'000
$'000
$'000
Balance at 1 January 31,660 — 31,660 17,584 (821 ) 16,763
Premium written during the year 36,603 183 36,786
Premiums earned during the year (51,065 ) (183 ) (51,248 )
(49,196 ) 314
(48,882 )
Foreign exchange movements 210 — 210 (39 ) — (39 )
Balance at 31 December
Notes to the syndicate annual accounts continued
30
Beazley | Syndicate 6107 Annual report 2025 www.beazley.com
11 Technical provisions continued
The following tables illustrate the development of 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.
The below tables were previously shown on a fully earned basis. This is the first year presenting these tables on an earned basis. 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.
Gross: | |||||||||||
| 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total | |
Pure underwriting year | $'000 | $'000 | $'000 | $'000 | $'000 | $'000 | $'000 | $'000 | $'000 | $'000 | $'000 |
Estimate of gross claims | |||||||||||
| at end of underwriting year | |||||||||||
| one year later | |||||||||||
| two years later | |||||||||||
| three years later | |||||||||||
| four years later | |||||||||||
| five years later | |||||||||||
| six years later | |||||||||||
| seven years later | |||||||||||
| eight years later | |||||||||||
nine years later | |||||||||||
Estimate of gross claims reserve | | | | | | | | | | | |
Provision in respect of prior years | | ||||||||||
| Less gross claims paid | ( | ( | ( | ( | ( | ( | ( | ( | ( | ( | ( |
Gross claims reserves | | | |
Net: | |||||||||||
| 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total | |
Pure underwriting year | $'000 | $'000 | $'000 | $'000 | $'000 | $'000 | $'000 | $'000 | $'000 | $'000 | $'000 |
Estimate of net claims | |||||||||||
| at end of underwriting year | | ||||||||||
| one year later | |||||||||||
| two years later | |||||||||||
| three years later | |||||||||||
| four years later | |||||||||||
| five years later | |||||||||||
| six years later | |||||||||||
| seven years later | |||||||||||
| eight years later | |||||||||||
| nine years later | |||||||||||
Estimate of net claims reserve | | | | | | | | | | | |
| Provision in respect of prior years | | ||||||||||
| Less net claims paid | ( | ( | ( | ( | ( | ( | ( | ( | ( | ( | ( |
Net claims reserves | | | | | | | | | | | |
www.beazley.com Beazley | Syndicate 6107 Annual report 2025
31
12 Creditors arising out of reinsurance operations
| 2025 | 2024 | |
| $'000 | $'000 | |
Due within one year | | |
Due after one year | | |
Total | | |
13 Other creditors
| 2025 | 2024 | |
| $'000 | $'000 | |
| Other related party balances (non-syndicate) | | |
| Other liabilities | | |
Total | | |
The above creditor balances are payable within one year.
14 Cash and cash equivalents
| 2025 | 2024 | |
| $'000 | $'000 | |
Cash at bank and in hand* | | |
*Included within Cash at bank and in hand are money market funds of $68,827k ( 2024: nil).
15 Analysis of net debt
All amounts in $'000
At 1 January
2025
Cash flows Acquired
Fair value and
exchange
movements
Non-cash
changes
At 31
December
2025
Cash and cash equivalents 36,201 30,755 — 2,077 — 69,033
Total
All amounts in $'000
At 1 January
2024
Cash flows Acquired
Fair value and
exchange
movements
Non-cash
changes
At 31
December
2024
Cash and cash equivalents 25,727 10,687 — (213 ) — 36,201
Total
16 Related parties transactions
For the 2023 underwriting year and prior, the business written by Syndicate 6107 is reinsured from Syndicate 2623 and 623.
For the 2024 underwriting year, the business written by Syndicate 6107 is reinsured from Syndicates 2623, 623 and 3623 for
which Syndicate 6107 pays an overrider commission and a profit commission. From the 2025 underwriting year, the following
other Beazley Group entities were added to this reinsurance contract: Beazley Insurance dac, Beazley Excess and Surplus, Inc.,
and Beazley Insurance Company, Inc. An overrider commission and a profit commission is payable. The syndicates which cede
business to Syndicate 6107 are all managed by BFL. The other entities party to the reinsurance contract are all insurance
carriers that are wholly owned within the Beazley Group. The transactions between Syndicate 6107 and these companies/
syndicates are set out in the following table.
Notes to the syndicate annual accounts continued
32
Beazley | Syndicate 6107 Annual report 2025 www.beazley.com
16 Related parties transactions continued
Year ended 31 December 2025
Gross written
premium
Claims paid
Overriding
commission
Profit
commission
Amounts due
(to) / from
$'000 $'000 $'000 $'000 $'000
Beazley Insurance dac 14,512 20 4,513 139 (144)
Beazley Insurance Company Inc. 3,409 — 1,009 8 (8)
Beazley Excess and Surplus Inc. 3,160 6 1,000 30 (34)
Syndicate 3623 1,355 6,112 389 706 16,108
Syndicate 2623 10,314 7,139 3,304 1,621 25,788
Syndicate 623 3,854 1,845 1,265 530 7,259
Year ended 31 December 2024
Gross written
premium
Claims paid
Overriding
commission
Profit
commission
Amounts due
(to) / from
$'000 $'000 $'000 $'000 $'000
Syndicate 3623 33,396 422 10,235 690 19,695
Syndicate 2623 21,732 17,927 6,566 3,172 54,450
Syndicate 623 8,183 4,386 2,546 856 12,937
The intercompany positions with other syndicates managed by BFL at 31 December 2025 are disclosed above in note 9 and
note 13 respectively.
17 Subsequent events
There have been no balance sheet events which have occurred between the reporting date and the date which the financial
statements have been signed, for which an adjustment and or disclosure is required. The 2023 year of account has closed
with a profit of $13,310k.
18 Foreign exchange rates
The syndicate used the following exchange rates to translate foreign currency assets, liabilities, income and expenses into US
dollars, being the syndicate’s presentational currency:
| 2025 | 2024 | |||||
| Start of period | End of period | Average | Start of period | End of period | Average | |
| Sterling | | | | | | |
| Euro | | | | | | |
| US dollar | | | | | | |
| Canadian dollar | | | | | | |
19 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.
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33
2023 underwriting
year accounts for
Syndicate 6107
35
Managing agent’s report
36
Statement of managing agent’s responsibilities
37
Independent auditor's report to the members of
Syndicate 6107 – 2023 closed year of account
40
Profit or loss account
41
Statement of changes in members' balances
42
Balance sheet
43
Cash flow statement
44
Notes to the syndicate underwriting year
accounts
48
Seven year summary of closed year results at
31 December 2025
49
Managing agent's corporate information
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Managing agent’s report
The syndicate underwriting year accounts have been prepared under the Insurance Accounts Directive (Lloyd’s Syndicate and
Aggregate Accounts) Regulations 2008 (the ‘Lloyd’s Regulations’) and in accordance with the Syndicate Accounting Byelaw
(No.9 of 2005), including Financial Reporting Standard 102 (FRS 102) and Insurance Contracts 103 (FRS 103) in accordance
with the provisions of Schedule 3 of the Large and Medium-size Companies and Groups (Accounts and Reports) Regulations
relating to insurance companies.
Members participate on a syndicate by reference to a year of account ('YoA') and each syndicate YoA is a separate annual
venture. These accounts relate to the 2023 YoA which has been closed by reinsurance to close at 31 December 2025;
consequently the balance sheet represents the assets and liabilities of the 2023 YoA and the profit or loss account reflects the
transactions for that YoA during the 36 months period until closure. The 2023 closed YoA profit of $13.3m includes a
reinsurance to close surplus from the 2022 YoA of $4.8m (note 6). The profit on the 2023 Y0A represents a return on capacity
of 22.9% and includes the impact of personal members expenses of $0.2m. Return on capacity excluding these expenses
would be 23.2%.
Principal activity
In the 2023 YoA, the syndicate wrote only cyber and property reinsurance business. Please refer to the managing agent’s report
in the Syndicate 6107 annual accounts for details around the principal activities of the syndicate.
Directors
A list of Directors of the managing agent who held office during the current year can be found on page 49 of this document.
Disclosure of information to the auditor
The Directors of the managing agent who held office at the date of approval of this managing agent’s report confirm that, so far
as they are each aware, there is no relevant audit information of which the syndicate’s auditor is unaware; and each Director
has taken all the steps that they ought to have taken as a Director to make themselves aware of any relevant audit information
and to establish that the syndicate’s auditor is aware of that information.
On behalf of the Board
C C J Wong
Director
20 February 2026
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Statement of managing agent’s responsibilities
The Directors of the managing agent are responsible for preparing the syndicate underwriting year accounts in accordance with
the Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 and the Lloyd’s Syndicate
Accounting Byelaw. They have elected to prepare the accounts in accordance with FRS 102 The Financial Reporting Standard
applicable in the UK and Republic of Ireland.
Under Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 the Directors of the
managing agent must not approve the underwriting year accounts unless they are satisfied that they give a true and fair view of
the result of the underwriting year at closure. In preparing these accounts, the Directors of the managing agent are required to:
• select suitable accounting policies and then apply them consistently and where there are items which affect more than one
year of account, ensure a treatment which is equitable between the members of the syndicate affected is used;
• 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 accounts;
• assess the syndicate’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and
• use the going concern basis of accounting unless they either intend to cease trading, or have no realistic alternative but to
do so. As explained in note 1 the Directors of the managing agent have not prepared the underwriting year accounts on a
going concern basis.
The Directors of the managing agent are responsible for keeping adequate and proper accounting records that are sufficient
to show and explain the syndicate’s transactions and disclose with reasonable accuracy at any time the financial position of
the syndicate and enable them to ensure that the underwriting year accounts comply with the Insurance Accounts Directive
(Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008. They are responsible for such internal control as they determine
is necessary to enable the preparation of accounts that are free from material misstatement, whether due to fraud or error,
and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the company
and to prevent and detect fraud and other irregularities.
On behalf of the Board
C C J Wong
Director
20 February 2026
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Beazley | Syndicate 6107 Annual report 2025 www.beazley.com
Independent auditor's report to the members of
Syndicate 6107
2023 closed year of account
Opinion
We have audited the syndicate underwriting year accounts for the 2023 year of account of syndicate 6107 (‘the syndicate’) for
the three years ended 31 December 2025 which comprise the Profit or loss account, the Balance Sheet, the Statement of
Changes In Members’ Balances, the Statement of Cash Flows and the related notes 1 to 11, including a summary of significant
accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United
Kingdom Accounting Standards including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of
Ireland” and FRS 103 “Insurance Contracts” (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the syndicate underwriting year accounts:
• give a true and fair view of the profit for the 2023 closed year of account;
• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
• have been prepared in accordance with the requirements of The Insurance Accounts Directive (Lloyd’s Syndicate and
Aggregate Accounts) Regulations 2008 and have been properly prepared in accordance with the Lloyd’s Syndicate Accounting
Byelaw (no. 8 of 2005).
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our
responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the syndicate
underwriting year 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 underwriting year accounts in the UK, including the FRC’s Ethical
Standard as applied to other entities of public interest, and we have fulfilled our other ethical responsibilities in accordance
with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Emphasis of matter – closure of the 2023 year of account
We draw attention to the Note 1 which explains that the 2023 year of account of syndicate 6107 has closed and all assets and
liabilities transferred to the 2024 year of account by reinsurance to close at 31 December 2025.
As a result, the syndicate underwriting year accounts for the 2023 year of account of syndicate 6107 have been prepared under
basis other than going concern.
Our opinion is not modified in respect of this matter.
Other information
The other information comprises the information included in the Underwriting Year report and accounts, other than the
syndicate underwriting year accounts and our auditor’s report thereon. The managing agent is responsible for the other
information contained within the Underwriting Year report and accounts.
Our opinion on the syndicate underwriting year accounts does not cover the other information and, except to the extent
otherwise explicitly stated in this 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 underwriting year accounts or our knowledge obtained in the course of the audit or otherwise
appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are
required to determine whether this gives rise to a material misstatement in the syndicate underwriting year accounts
themselves. If, based on the work we have performed, we conclude that there is a material misstatement of the other
information, we are required to report that fact.
We have nothing to report in this regard.
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37
Independent auditor's report to the members of Syndicate 6107
2023 closed year of account continued
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where The Lloyd’s Syndicate Accounting Byelaw (no. 8 of 2005)
requires us to report to you, if in our opinion:
• the managing agent in respect of the syndicate has not kept adequate accounting records; or
• the syndicate underwriting year accounts are not in agreement with the accounting records.
Responsibilities of the managing agent
As explained more fully in the Statement of Managing Agent’s Responsibilities set out on page 36, the managing agent is
responsible for the preparation of the syndicate underwriting year accounts in accordance with The Insurance Accounts Directive
(Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 and The Lloyd’s Syndicate Accounting Byelaw (no. 8 of 2005)
and for being satisfied that they give a true and fair view, and for such internal control as the managing agent determines is
necessary to enable the preparation of the syndicate underwriting year accounts that are free from material misstatement,
whether due to fraud or error.
In preparing the syndicate underwriting year accounts, the managing agent is responsible for assessing the syndicate’s ability
to realise its assets and discharge its liabilities in the normal course of business, disclosing, as applicable, any matters that
impact its ability to do so.
Auditor’s responsibilities for the audit of the syndicate underwriting year accounts
Our objectives are to obtain reasonable assurance about whether the syndicate underwriting year 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 underwriting year accounts.
Explanation as to what extent 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 irregularities, including fraud. The risk of not detecting a material misstatement due
to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for
example, forgery or intentional misrepresentations, or through collusion.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. However, the
primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the managing
agent and management.
Our approach was as follows:
• We obtained a general understanding of the legal and regulatory frameworks that are applicable to the syndicate and
determined that the most significant are direct laws and regulations related to elements of Lloyd’s Byelaws and Regulations,
and the financial reporting framework (UKGAAP) and requirements referred to by Lloyd’s in the Instructions. Our
considerations of other laws and regulations that may have a material effect on the syndicate underwriting year accounts
included permissions and supervisory requirements of Lloyd’s of London, the Prudential Regulation Authority (‘PRA’) and the
Financial Conduct Authority (‘FCA’).
• We obtained a general understanding of how the syndicate is complying with those frameworks by making enquiries of
management, internal audit, and those responsible for legal and compliance matters of the syndicate. In assessing the
effectiveness of the control environment, we also reviewed significant correspondence between the syndicate, Lloyd’s of
London and other UK regulatory bodies; reviewed minutes of the Board and Risk Committee of the managing agent; and
gained an understanding of the managing agent’s approach to governance.
• For direct laws and regulations, we considered the extent of compliance with those laws and regulations as part of our
procedures on the related syndicate underwriting year accounts’ items.
• For both direct and other laws and regulations, our procedures involved: making enquiries of the directors of the managing
agent and senior management for their awareness of any non-compliance of laws or regulations, enquiring about the policies
that have been established to prevent non-compliance with laws and regulations by officers and employees, enquiring about
the managing agent’s methods of enforcing and monitoring compliance with such policies, and inspecting significant
correspondence with Lloyd’s, the FCA and the PRA.
• The syndicate operates in the insurance industry which is a highly regulated environment. As such the Senior Statutory
Auditor considered the experience and expertise of the engagement team to ensure that the team had the appropriate
competence and capabilities, which included the use of specialists where appropriate.
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Independent auditor's report to the members of Syndicate 6107
2023 closed year of account continued
• We assessed the susceptibility of the syndicate’s underwriting year accounts to material misstatement, including how fraud
might occur by considering the controls that the managing agent has established to address risks identified by the managing
agent, or that otherwise seek to prevent, deter, or detect fraud. We also considered areas of significant judgement, complex
transactions, performance targets, economic or external pressures and the impact these have on the control environment.
Where this risk was considered to be higher, we performed audit procedures to address each identified fraud risk including,
– Reviewing accounting estimates for evidence of management bias. Supported by our Actuaries we assessed if there were
any indicators of management bias in the valuation of insurance liabilities and the recognition of estimated premium
income.
– Evaluating the business rationale for significant and/or unusual transactions.
• These procedures included testing manual journals and were designed to provide reasonable assurance that the syndicate
underwriting year accounts were free from fraud or error.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting
Council’s website at https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the syndicate’s members, as a body, in accordance with The Lloyd’s Syndicate Accounting Byelaw
(no. 8 of 2005) and The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008. Our audit
work has been undertaken so that we might state to the syndicate’s members those matters we are required to state to them
in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the syndicate and the syndicate’s members as a body, for our audit work, for this report, or
for the opinions we have formed.
Niamh Byrne (Senior statutory auditor)
for and on behalf of Ernst & Young LLP, Statutory Auditor
London
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39
20 February 2026
Profit or loss account
2023 year of account for the 36 months ended 31 December 2025
Notes
2023 year
of account
$m
Gross premiums written 44.3
Outward reinsurance premiums (4.0)
Earned premiums, net of reinsurance
40.3
Allocated investment return transferred from the non-technical account 1.1
Reinsurance to close premiums received, net of reinsurance 4 71.2
Investment return and reinsurance adjusted premium
72.3
Reinsurance to close premiums payable, net of reinsurance 5 (79.2)
Gross claims paid (11.5)
Reinsurers’ share 3.3
Claims incurred, net of reinsurance
(87.4)
Net operating expenses
7
(12.6)
Balance on the technical account
12.6
Profit on foreign exchange 0.7
Investment income 1.1
Allocated investment return transferred to the technical account (1.1)
Profit for the 2023 closed YoA
6
13.3
Syndicate allocated capacity (£ m) 43.3
Profit for the 2023 closed YoA (£ m) 9.9
Return on capacity 22.9 %
There are no recognised gains or losses in the accounting period other than those dealt with within the profit or loss account above.
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Statement of changes in members’ balances
for the 36 months ended 31 December 2025
2023 year
of account
$m
Profit for the 2023 closed YoA 13.3
Amounts due to members at 31 December 2025 13.3
Members participate in syndicates by reference to YoA and their ultimate result, assets and liabilities are assessed with reference
to policies incepting in that YoA in respect of their membership of a particular year.
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41
Balance sheet
closed at 31 December 2025
Notes
2023 year
of account
$m
Assets
Debtors 8 88.2
Reinsurance recoveries anticipated on gross reinsurance
to close premiums payable to close the account
5 9.9
Cash at bank and in hand 5.3
Prepayments and accrued income 0.8
Total assets
104.2
Members' balances and liabilities
Members' balances
Amounts due from members
9 13.3
Liabilities
Reinsurance to close premium payable to close the account – gross amount 5 82.9
Creditors 10 8.0
Total liabilities
104.2
The underwriting year accounts on pages 40 to 47 were approved by the Board of Directors on 20 February 2026 and were
signed on its behalf by:
C C J Wong
Director
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Statement of cash flows
2023 year of account for the 36 months ended 31 December 2025
2023 year
of account
$m
Cash flows from operating activities
Profit for the 2023 closed YoA 13.3
Increase in gross technical provisions 82.9
Increase in reinsurers' share of gross technical provisions (9.9)
Increase in debtors (88.2)
Movement in other assets/liabilities (0.8)
Increase in creditors 8.0
Investment return (1.1)
Foreign exchange –
Net cash flows from operating activities
4.2
Cash flows from investing activities
Investment income received 1.1
Net cash flows from investing activities
1.1
Cash flows from financing activities
Net cash flows from financing activities
–
Net increase/(decrease) in cash and cash equivalents
5.3
Cash and cash equivalents at the opening of the 2023 YoA –
Foreign exchange on cash and cash equivalents –
Cash and cash equivalents at the closing of the 2023 YoA
5.3
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43
1 Accounting policies
Basis of preparation
These underwriting accounts have been prepared in accordance with the Insurance Accounts Directive (Lloyd’s Syndicate
and Aggregate Accounts) Regulations 2008 (‘the Regulations’) and applicable Accounting Standards in the United Kingdom,
including Financial Reporting Standard 102 (FRS 102) and Insurance Contracts (FRS 103). They have also been prepared
in accordance with Lloyd’s Syndicate Accounting Byelaw (N0.8 of 2005) and in accordance with the provisions of Schedule 3
of the Large and Medium-size Companies and Groups (Accounts and Reports) Regulations relating to insurance companies.
Whilst the Directors of the managing agent have a reasonable expectation that the syndicate has adequate resources to
continue in operational existence for the foreseeable future, these financial statements represent the participation of members
in the 2023 year of account ('YoA') which closed on 31 December 2025. The accumulated profits of the 2023 YoA will be
distributed shortly after publication of these accounts. Therefore the 2023 YoA is not continuing to trade and, accordingly,
the Directors have not adopted the going concern basis in the preparation of these accounts. The amounts reported would
be identical if the accounts had been prepared on a going concern basis as the 2023 YoA will be closed by payment of a
reinsurance to close premium, as outlined in note (a) below, which is consistent with the normal course of business for a
Lloyd’s syndicate and with the approach applied to earlier underwriting years.
The principal accounting policies applied in the preparation of these underwriting accounts are set out below. The policies have
been consistently applied to all periods presented, unless otherwise stated. All amounts presented are stated in US dollars,
being the syndicate’s functional currency, and in millions, unless noted otherwise.
Underwriting transactions
(a) The underwriting accounts for each YoA are normally kept open for three years before the result on that year is determined.
At the end of the three year period, outstanding liabilities can normally be determined with sufficient accuracy to permit the
YoA to be closed by payment of a reinsurance to close premium to the successor YoA.
(b) Gross premiums are allocated to years of account on the basis of the inception date of the policy. Commission and
brokerage are charged to the YoA to which the relevant policy is allocated. Policies written under binding authorities,
lineslips or consortium arrangements are allocated to the YoA into which the arrangement incepts. Additional and return
premiums follow the YoA of the original premium. Premiums in respect of reinsurance ceded are attributed to the same year
as the original risk being protected. Gross premiums are stated before the deduction of brokerage, taxes and duties levied
on them. Estimates are made for pipeline premiums, representing amounts due to the syndicate not yet notified.
(c) Gross claims paid are allocated to the same YoA as that to which the corresponding premiums are allocated and include
internal and external claims settlement expenses. Reinsurance recoveries are allocated to the YoA to which the claim
was charged.
(d) A provision for unexpired risks is made where claims, related expenses and deferred acquisition costs, likely to arise after
the balance sheet date in respect of contracts relating to the closing YoA, are expected to exceed the unearned premiums
and premiums receivable under these contracts, after the deduction of any acquisition costs deferred.
(e) The reinsurance to close premium is determined by reference to outstanding liabilities, including claims incurred but not
yet reported, relating to the closed year and to all previous closed years reinsured therein. Although the estimate of net
outstanding liabilities is considered to be fair and reasonable, it is implicit in the estimation procedure that the ultimate
liabilities will be at variance from the premium so determined. The reinsurance to close premium includes a provision for
unearned premiums and unexpired risks at the balance sheet date, net of deferred acquisition costs.
(f) Please refer to note 1 Accounting policies in the Syndicate 6107 annual accounts for details around measurement of
insurance contracts.
Comparatives
(g) Comparatives are not provided in these syndicate underwriting year accounts as each syndicate YoA is a separate
annual venture.
Investment return
(h) Syndicate 6107's reinsurance arrangements are accounted for on a cash withheld basis for the 2023 underwriting year. An
investment return payable by the host syndicates ceding business to Syndicate 6107 is calculated based on premium and
claims held by the the host syndicate being used as a proxy for cash, as outlined under the terms of the reinsurance
contract. Investment return is initially recorded in the non-technical account. A transfer is made from the non-technical
account to the general business technical account to reflect the investment return on funds supporting underwriting
business.
Notes to the syndicate underwriting year accounts
closed at 31 December 2025
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1 Accounting policies continued
Syndicate operating expenses
(i) Acquisition costs comprise brokerage, premium levy, and staff related costs of the underwriters acquiring the business.
Costs incurred by the managing agent in respect of the syndicate are charged to the syndicate. Where expenses do not
relate to any specific YoA they are apportioned between years of account on a basis which reflects the benefit obtained by
each YoA from each type of expense.
(j) Where expenses are incurred jointly by the managing agent and the syndicate, they are apportioned as follows:
• salaries and related costs – according to the staff time spent on dealing with syndicate matters;
• accommodation costs – proportioned based on the overall staff costs allocation above; and
• other costs – as appropriate in each case.
Taxation
(k) 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 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. It is the responsibility of members to agree and settle their individual tax
liabilities with the Inland Revenue.
(l) No provision has been made for any US federal income tax payable on the underwriting results or investment earnings.
Any payments on account made by the syndicate 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. Members resident
overseas for tax purposes are responsible for agreeing and settling any tax liabilities with the taxation authorities of their
country of residence.
Basis of currency translation
(m) The functional and presentational currency of the syndicate is US dollars. Non-USD denominated items going through
the profit or loss account are translated to US dollars at the three years’ average rates of exchange. Assets and liabilities
denominated in foreign currencies at the balance sheet date are retranslated to the functional currency at the foreign
exchange rate at that date.
2 Risk management
The 2023 YoA has closed and all assets and liabilities have been transferred to a reinsuring YoA. The risks that it is exposed to
in respect of the reported financial position and financial performance are significantly less than those relating to the open
YoA's as disclosed in the syndicate annual accounts. Accordingly, these underwriting year accounts do not have associated
risk disclosures as required by section 34 of FRS 102. Full disclosures relating to these risks are provided in the syndicate
annual accounts.
3 Analysis of underwriting result
All business was concluded in the UK under one reinsurance contract. All risks relate to property (36%), digital (5%) and cyber
(59%) business. This is calculated based on the syndicate's gross written premium.
4 Reinsurance to close premiums received
2023 year
of account
$m
Gross reinsurance to close premiums received 81.2
Reinsurance recoveries anticipated (10.0)
Reinsurance to close premiums received, from 2022 and earlier, net of reinsurance
71.2
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45
5 Reinsurance to close premiums payable
2023 year
of account
$m
Gross reinsurance to close premiums through profit and loss 85.4
Reinsurance recoveries anticipated through profit and loss (6.3)
Foreign exchange (6.1)
Reinsurance to close premiums payable to 2024 net of reinsurance
73.0
Reported IBNR Total
$m $m $m
Gross reinsurance to close premium payable
37.5 45.4 82.9
Reinsurance recoveries anticipated
(2.3) (7.6) (9.9)
Reinsurance to close premiums payable, net of reinsurance
35.2 37.8 73.0
6 Analysis of the 2023 year of account result
2023 year
of account
$m
Amount attributable to business allocated to the 2023 year of account 8.5
Surplus on the reinsurance to close for the 2022 year of account 4.8
13.3
7 Net operating expenses
2023 year
of account
$m
Acquisition costs 12.1
Administrative expenses 0.5
12.6
Administrative expenses include:
Audit services 0.2
8 Debtors
2023 year
of account
$m
Debtors arising out of reinsurance operations 12.6
Amounts due from Syndicate 2623 16.1
Amounts due from Syndicate 623 3.5
Other debtors 56.0
88.2
Other debtors mostly relates to amounts owed by other years of account in Syndicate 6107. These balances are due within one
year.
Notes to the syndicate underwriting year accounts
closed at 31 December 2025 continued
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Beazley | Syndicate 6107 Annual report 2025 www.beazley.com
9 Amounts due to members
2023 year
of account
$m
Profit for the 2023 closed YoA before standard personal expenses 13.5
Members standard personal expenses (0.2)
Amounts due to members at 31 December 2025
13.3
10 Creditors
2023 year
of account
$m
Creditors arising out of reinsurance operations
5.2
Other creditors including taxation 2.8
8.0
In the balance of Other creditors including taxation is a payable from Beazley Management Limited ('BML') of $0.1m. Balances are
payable within one year.
11 Related parties transactions
Please refer to page 31 of the syndicate annual accounts for further details of related party transactions for the 2023 YoA.
The business written by Syndicate 6107 is reinsured from Syndicates 2623 and 623, for which Syndicate 6107 pays an
overrider commission and a profit commission. The profit commission payable and the overrider commission are included within
operating expenses and are disclosed as acquisition costs in note 7. As at the balance sheet date, the 2023 YoA has a payable
from BML of $0.1m, and this is included in other creditors, disclosed within note 10. BML provides services to the managing
agent, and by extension, to the syndicate.
The intercompany positions with other syndicates managed by BFL at 31 December 2025 are disclosed above in note 9 of the
syndicate annual accounts.
All transactions between the syndicate and companies within the Beazley Group are conducted on normal market terms. BFL as
the managing agent of the syndicate is responsible for settling intercompany balances with other managed syndicates and net
amounts due to/from other related entities.
BFL, the managing agent of Syndicate 6107, is a wholly-owned indirect subsidiary of Beazley plc.
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47
Seven-year summary of closed year results
(unaudited)
at 31 December 2025
2023 2022 2021 2020 2019 2018 2017
Syndicate allocated capacity – £’m 43.3 67.4 70.5 69.5 67.6 55.1 46.6
Syndicate allocated capacity – $’m 52.4 93.1 87.4 88.3 89.3 71.6 62.4
Capacity utilised 65 % 76 % 98 % 85 % 72 % 83 % 84 %
Aggregate net premiums – $’m 34.2 70.5 85.2 75.0 55.0 43.8 45.1
Underwriting profit as a percentage
of gross premiums
47.2 % 26.2 % 23.7 % 8.8 % 36.1% (9.3%) (26.2%)
Return on capacity 22.9 % 13.5 % 30.8 % (1.0) % 16.9% (8.9%) (27.9%)
Results for an illustrative £10,000 share
Gross premiums – $'000s 8.8 10.6 14.4 10.8 9.5 10.7 11.8
Net premiums 7.9 10.5 12.1 9.2 8.1 7.9 9.7
Reinsurance to close from an earlier
account
16.4 7.0 6.0 4.5 4.0 3.7 1.7
Net claims (1.9) (4.1) (6.1) (6.6) (4.0) (7.9) (9.9)
Reinsurance to close the year of account (18.3) (10.6) (6.7) (6.2) (4.7) (4.8) (4.4)
Underwriting profit/(loss) 4.1 2.8 5.3 0.9 3.4 (1.0) (3.0)
Profit/(loss) on foreign exchange — (0.1) 0.1 0.1 – 0.4 –
Syndicate operating expenses (1.5) (1.6) (1.9) (1.2) (1.3) (0.9) (0.9)
Balance on technical account 2.6 1.1 3.5 (0.2) 2.1 (1.6) (3.9)
Gross investment return 0.2 0.6 0.4 0.1 0.1 0.4 0.3
Profit/(loss) before personal expenses 2.8 1.7 3.9 (0.1) 2.2 (1.2) (3.6)
Illustrative personal expenses
Illustrative personal expenses — — — — — — —
Managing agent’s profit commission — — — — — — —
Profit/(loss) after illustrative profit
commission and personal expenses ($)
2.8 1.7 3.9 (0.1) 2.2 (1.2) (3.6)
Profit/(loss) after illustrative profit
commission and personal expenses (£)
2.3 1.4 3.1 (0.1) 1.7 (0.9) (2.8)
Notes:
1 The illustrative profit commission and personal expenses are estimates of amounts which might be charged on an illustrative share of £10,000. The agency
agreements for 1991 and subsequent years of account only provide for the deduction of fees and profit commission on behalf of the managing agent.
2 The effect of any minimum charges on personal expenses or deficit clauses on profit commission have been ignored.
3 Internal claims settlement expenses have been included in ‘net claims’.
4 The above figures are stated before members’ agents’ fees.
5 Profit after illustrative profit commission and personal expenses is shown in dollars and converted to sterling at the closing rate.
6 Gross and net premium amounts shown above are net of brokerage expenses.
7 The summary of closed years results are on a 'pure year' basis.
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Beazley | Syndicate 6107 Annual report 2025 www.beazley.com
Managing agent's corporate information
Beazley Furlonge Limited has been the managing agent of Syndicate 6107 throughout the period covered by this report and the
registered office is 22 Bishopsgate, London, EC2N 4BQ, United Kingdom.
Directors
R A Stuchbery* - Chair
R S Anarfi - (resigned 28/02/2025)
P J Bantick - (resigned 17/03/2025)
W W E Barkholt* - (appointed 01/01/2025)
R J Clark*
A P Cox - (resigned 18/03/2025)
M E Diacon - (appointed 10/03/2025)
B J Greenwood - (appointed 18/03/2025)
G A Hayes - (appointed 13/03/2025)
A J Reizenstein* - (resigned 30/04/2025)
L Santori*
K J Somasundaram* - (appointed 03/11/2025)
N Wall*
C C J Wong
* Non-Executive Director.
Active underwriter
G A Hayes
Company secretary
R Yeoman
Managing agent’s registered office
22 Bishopsgate
London
EC2N 4BQ
United Kingdom
Registered number
01893407
Syndicate number
6107
Auditor
Ernst & Young LLP
25 Churchill Place
London
E14 5EY
Banker
Deutsche Bank AG
Winchester House
London
1 Great Winchester Street
EC2N 2DB
www.beazley.com Beazley | Syndicate 6107 Annual report 2025
49
50
Beazley | Syndicate 6107 Annual report 2025 www.beazley.com
Beazley Furlonge Limited
Syndicate 6107 at Lloyd’s
22 Bishopsgate
London
EC2N 4BQ
T +44 (0)20 7667 0623
info@beazley.com
www.beazley.com
Syndicate 6107
annual report 2025
investor.relations.beazley.com
