Important information about Syndicate Reports and Accounts
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The syndicate reports and accounts set forth in this section of the Lloyd’s website, which
have been filed with Lloyd’s in accordance with the Syndicate Accounting Byelaw (No. 8
of 2005), are being provided for informational purposes only.
The syndicate reports and
accounts have not been prepared by Lloyd’s, and Lloyd’s has no responsibility for their
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Access to the syndicate reports and accounts is not being provided for
the purposes of soliciting membership in Lloyd’s or membership on any syndicate of Lloyd’s,
and no offer to join Lloyd’s or any syndicate is being made hereby.
Members of Lloyd’s are
reminded that past performance of a syndicate in any syndicate year is not predictive of the
related syndicate’s performance in any subsequent syndicate year.
You acknowledge and agree to the foregoing as a condition of your accessing the syndicate
reports and accounts.
You also agree that you will not provide any person with a copy
of any syndicate report and accounts without also providing them with a copy of this
acknowledgement and agreement, by which they will also be bound.
SA MEACOCK
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SYNDICATE 727
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SYNDICATE 0727
KEY INFORMATION
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RESULTS – 2023 ACCOUNT
16.3%
Profit
After standard personal expenses
FORECAST – 2024 ACCOUNT
After standard personal expenses
0% to 15%
Profit
CAPACITY
2026 Account £108.7 million
MAPA
7%
DIRECT
CORPORATES
19%
WORKING NAMES
5%
EXTERNAL NAMES INCLUDING
NAMECOS, LLPS & SLPS 69%
SYNDICATE FUNDS – Syndicate’s position as at 31 December 2025
CASH, INVESTMENTS, OVERSEAS DEPOSITS
AND OTHER ASSETS AT 31 DECEMBER 2024
Sterling
£9.1 million
US dollars
US$ 404.2 million
Canadian dollars
CAN$ 49.6 million
Total translated into Sterling
£335.4 million
OUTLOOK – 2025 ACCOUNT
Early signs of pressure on rating environment –
premium volume flat
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SYNDICATE 0727
JOINT ACTIVE UNDERWRITER’S REPORT
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REVIEW OF YEAR OF ACCOUNT
RESULTS AND PROSPECTS
The Closed 2023 Account
The 2023 Account has closed with a profit of 16.33% of capacity after standard expenses. The underwriting
environment remained strong throughout the year with an improvement in rates, terms and conditions seen in
all departments. The year of account benefitted from a relatively benign wind season with very little activity in
the Gulf or Atlantic. The most meaningful loss impacting this year comes from the tragic Los Angeles wildfires,
emanating from our binding authority account - effectively making up a third of our wildfire loss. Overall
though it remains a strong underwriting year of account with the incurred loss ratios tracking consistently better
than 2022. The year has also benefited from a strong investment return, and a modest release from the old years
(following a satisfactory 12 months of run off).
The Open 2024 Account
Throughout 2024 we continued to achieve further rate improvement, but not to the same extent seen during
2023. The Account was also impacted by a much busier wind season with Hurricanes Milton and Helene
making landfall in the southeast of the United States. In addition to these catastrophes, the year also foots the
brunt of our Los Angeles wildfire loss from the reinsurance account. As expected, with these events, our loss
ratios for the 2024 account do not compare well with 2023 (running 6 points worse at the same stage), but
it is comforting to see that despite the increased severity, after 24 months the Account is still outperforming
the 2022 year at the same stage. From a rating perspective, 2024 will most likely be seen as the year where we
reached the peak in the cycle, and with a better rated book of business the loss activity can be more comfortably
contained. The prospect for profit remains unchanged.
The Open 2025 Account
During the year we saw for the first time (since 2021) pressure on both insurance and reinsurance pricing.
Whilst not dramatic, the deterioration is best illustrated in our risk adjusted rate change analysis which at -0.5%
is in negative territory for the first time in a while. This is a definite shift in momentum, but in practice this has
not deterred us from writing a very similar account to the last couple of years, and our gross written premium
remains stable. However, it is the possible trend that concerns us. Recent years have seen positive rate movement
and with it we have grown the account. Now is probably best described as a period of consolidation at 727,
and with a relatively good start to this year in terms of loss activity we fear that the downward pricing trend will
continue as complacency returns to the market.
Prospects for the 2026 Account
Since 2021 we have seen an improvement in pricing and terms throughout our book of business. This began
to flatten out during 2024 and in 2025 we saw the first signs of downward pressure. The market during this
time has achieved good results, and with much more interesting returns for capital providers, our business
has become fashionable again. And fashionable is bad news. Fresh capital attracted to our industry suppresses
pricing as the supply of capacity outstrips demand. The extent to which we retreat will depend on the hunger of
the new capital, and the complacency of the existing. We have already started to take a more defensive approach,
particularly within the reinsurance property catastrophe area, where we have been content to downsize our
positions. However, putting this department to one side, we do feel that our existing book of business has
generally held up and its rating integrity preserved. As a result, and on the basis we can maintain our reserve
strength, we feel comfortable continuing with a very similar business plan going into 2026.
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SYNDICATE 0727
JOINT ACTIVE UNDERWRITER’S REPORT
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REVIEW OF YEAR OF ACCOUNT
Finally, we would like to thank our fellow directors and staff for all their hard work during the year, and you the
Names for all your support.
J M Meacock
M P Bartlett
Joint Active Underwriter
Joint Active Underwriter
20 February 2026
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SYNDICATE 0727
2010
2011
2012
2013
2014
2015
2016
£
£
£
£
£
£
£
Syndicate allocated capacity
78,814,031
79,821,684
79,587,725
80,055,342
80,688,382
80,696,220
80,569,329
Number of Members of the Syndicate
790
792
795
815
820
819
801
Aggregate net premiums
59,102,713
64,602,432
61,713,904
57,826,174
48,027,674
49,724,787
51,455,941
Results for £10,000 share
Gross premiums
7,544
8,316
7,924
7,347
6,005
6,229
6,449
Net premiums
7,405
8,093
7,754
7,223
5,952
6,162
6,387
Premium for the reinsurance to close an
earlier year of account
22,628
21,878
21,987
23,005
23,716
27,617
25,969
Net claims
(5,817)
(6,209)
(5,761)
(4,941)
(4,489)
(5,294)
(5,437)
Reinsurance to close the year of account
(Note 4)
(22,783)
(22,235)
(22,280)
(22,750)
(23,185)
(27,628)
(26,177)
Underwriting result
1,433
1,527
1,701
2,537
1,995
857
742
Syndicate operating expenses
(560)
(613)
(583)
(556)
(514)
(524)
(675)
Balance on technical account
873
914
1,118
1,981
1,481
333
67
Profit/(Loss) on exchange
(151)
125
97
(45)
362
290
215
Investment income less investment expenses
and charges and investment gains less losses
750
380
325
179
466
457
531
Profit/(Loss) before personal expenses
1,472
1,419
1,540
2,115
2,309
1,080
813
Illustrative profit commission
(200)
(244)
(284)
(397)
(438)
(192)
(138)
Illustrative personal expenses
(137)
(140)
(120)
(132)
(121)
(123)
(124)
Total standard personal expenses
(337)
(384)
(404)
(529)
(559)
(315)
(262)
Profit/(Loss) after standard personal
expenses
1,135
1,035
1,136
1,586
1,750
766
551
FOURTEEN YEAR SUMMARY OF RESULTS
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31 DECEMBER 2025
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SYNDICATE 0727
2017
2018
2019
2020
2021
2022
2023
£
£
£
£
£
£
£
Syndicate allocated capacity
80,634,666
80,484,967
80,554,452
84,553,757
84,767,486
88,888,139
101,174,816
Number of Members of the Syndicate
794
794
790
779
762
742
741
Aggregate net premiums
50,157,785
54,092,327
54,345,633
70,185,218
73,021,104
86,708,022
84,528,200
Results for £10,000 share
Gross premiums
6,278
6,785
6,845
8,410
8,695
9,866
8,513
Net premiums
6,220
6,721
6,746
8,301
8,614
9,755
8,355
Premium for the reinsurance to close an
earlier year of account
27,000
26,369
26,258
25,048
27,273
26,774
24,794
Net claims
(6,009)
(5,806)
(5,653)
(6,700)
(6,075)
(7,517)
(5,473)
Reinsurance to close the year of account
(Note 4)
(27,195)
(27,161)
(26,168)
(24,265)
(29,333)
(27,985)
(26,120)
Underwriting result
16
123
1,183
2,384
479
1,027
1,555
Syndicate operating expenses
(330)
(603)
(659)
(655)
(660)
(443)
(599)
Balance on technical account
(314)
(480)
526
1,730
(181)
584
956
Profit/(Loss) on exchange
(84)
45
2
(27)
270
(116)
(207)
Investment income less investment expenses
and charges and investment gains less losses
1,114
1,172
394
(910)
1,276
1,639
1,460
Profit before personal expenses
716
737
920
792
1,366
2,108
2,209
Illustrative profit commission
(120)
(108)
(157)
(114)
(211)
(391)
(408)
Illustrative personal expenses
(121)
(120)
(137)
(142)
(160)
(152)
(167)
Total standard personal expenses
(241)
(228)
(294)
(256)
(371)
(543)
(576)
Profit after standard personal expenses
475
509
627
536
995
1,565
1,633
Notes:
1
This fourteen year summary of results on this and the previous page shows the result for a £10,000 share of the Syndicate for each year of account from 2010 to 2023.
2
Gross premiums and net premiums above, are stated after brokerage and commissions.
3
The illustrative profit commission and personal expenses are estimates of amounts which might be charged on an illustrative share of £10,000 for an individual name.
4
The reinsurance premium received to close an earlier year of account is stated at the exchange rate ruling as at the year-end it transferred the liabilities into the receiving year.
The reinsurance to close the current year of account is stated at the average exchange rate for the calendar year in which it closed. The effect of translating it to the closed year
end exchange rate is included within the profit or loss on exchange.
FOURTEEN YEAR SUMMARY OF RESULTS
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31 DECEMBER 2025
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SYNDICATE 0727
2023 YEAR OF ACCOUNT
SYNDICATE UNDERWRITING
YEAR ACCOUNTS
31 DECEMBER 2025
SA MEACOCK
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SYNDICATE 0727
Report of the Directors of the Managing Agent
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Statement of Managing Agent’s Responsibilities
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Independent Auditor’s Report
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Profit and Loss Account: Technical Account
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Profit and Loss Account: Non-Technical Account
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Statement of Changes in Members’ Balances
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Balance Sheet
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Statement of Cash Flows
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Notes to the Syndicate Underwriting Year Accounts
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CONTENTS
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2023 YEAR OF ACCOUNT CLOSED AT 31 DECEMBER 2025
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SYNDICATE 0727
The Managing Agent presents its Report of the Directors together with the Syndicate Underwriting Year
Accounts for the 2023 Year of Account of Syndicate 0727 for the three years ended 31 December 2025.
REVIEW OF THE 2023 YEAR OF ACCOUNT
ACTIVITIES
The principal activity of the Syndicate is that of underwriting insurance and reinsurance risks and this is
conducted wholly within the Lloyd’s market. A large percentage of the risks underwritten are located in the
USA while significant exposures are accepted in the UK and Canada with more modest exposures in many
other areas of the world. Exposures taken on through reinsurance would have a similar geographic spread with
perhaps less emphasis on the UK.
The initial stamp capacity for 2023 was £110.5m which was an increase of 24% on the previous year of account.
The business plan proposed total gross premium after brokerage and commissions of £100.9m. Gross Premiums
written after brokerage and commissions, converted to sterling at 2023 Business Plan exchange rates, were
£88.9m, 88.1% of plan. Property continues to be the largest category of direct business at 28% of the whole,
with liability, at 19% being the next largest direct business category.
Very little reinsurance was purchased, in line with our general philosophy of only accepting exposures if they are
worth keeping. That reinsurance which was purchased was largely placed with reinsurers whose security is “A”
rated by AM Best or better.
RESULTS
The profit for the 2023 year of account was £16.8m equivalent to 16.3% of the final capacity.
Within this profit, there was a profit arising from the reinsurance to close received from 2022 year of account.
This arose from a decrease in the estimate of 2022 and prior years’ liability reserves as a result of favourable
claims developments in 2025 and changes to the unallocated loss adjustment expense reserve. See page 24 for a
more detailed analysis of the various sources of profit and loss.
AUDITOR
PKF Littlejohn LLP has signified its willingness to continue in office as auditor.
DISCLOSURE OF INFORMATION TO AUDITOR
The Directors of the Managing Agent who held office at the date of the approval of this Report of the Directors
confirm that, so far as they are individually aware, there is no relevant audit information of which the Syndicate’s
auditor is unaware and each Director has taken all the steps that he ought to have taken as Director to make
himself aware of any relevant audit information and to establish that the Syndicate’s auditor is aware of that
information.
Approved by the Board of Directors of S A Meacock & Company Limited and signed on its behalf by:
K W Jarvis
Director
20 February 2026
REPORT OF THE DIRECTORS OF THE MANAGING AGENT
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2023 YEAR OF ACCOUNT CLOSED AT 31 DECEMBER 2025
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SYNDICATE 0727
The Managing Agent is responsible for preparing Syndicate Underwriting Year Accounts and an accompanying
Report of the Directors of the Managing Agent in accordance with applicable law, Lloyd’s Byelaws and United
Kingdom Generally Accepted Accounting Practice.
Regulation 6 of the Insurance Accounts Directive (Lloyd’s Syndicates and Aggregate Accounts) Regulations
2008 (“the 2008 Regulations”) requires the Managing Agent to prepare Syndicate Underwriting Year Accounts
for a Syndicate in respect of any underwriting year which is being closed by reinsurance to close during or at the
end of a financial year.
The Syndicate Underwriting Year Accounts must be prepared on an underwriting-year basis which give a true
and fair view of the result of the underwriting year at closure.
In preparing the Syndicate Underwriting Year Accounts, the Managing Agent is required by the Syndicate
Accounting Byelaw (No. 8 of 2005) to:
•
select suitable accounting policies which are applied consistently and where there are items which affect
more than one year of account, ensure a treatment which is equitable as between the affected Members
of the Syndicate. In particular, the amount charged by way of premium in respect of the reinsurance to
close shall, where the reinsuring Members and reinsured Members are Members of the same Syndicate for
different years of account, be equitable as between them, having regard to the nature and amount of the
liabilities reinsured;
•
take into account all income and charges relating to a closed year of account without regard to the date of
receipt or payment;
•
make judgements and estimates that are reasonable and prudent; and
•
state whether applicable accounting standards have been followed, subject to any material departures
disclosed and explained in these Financial Statements.
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.
The Managing Agent is responsible for keeping proper accounting records which disclose with reasonable accuracy
at any time the financial position of the Syndicate and enable it to ensure that the Syndicate Underwriting Year
Accounts comply with the 2008 Regulations and the Syndicate Accounting Byelaw (No.8 of 2005). It also has
general responsibility for taking such steps as are reasonably open to it to safeguard the assets of the Syndicate
and to prevent and detect fraud and other irregularities.
Approved by the Board of Directors of S A Meacock & Company Limited and signed on its behalf by:
K W Jarvis
Director
20 February 2026
STATEMENT OF MANAGING AGENT’S RESPONSIBILITIES
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2023 YEAR OF ACCOUNT CLOSED AT 31 DECEMBER 2025
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SYNDICATE 0727
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SYNDICATE 0727 – 2023 CLOSED YEAR OF
ACCOUNT
OPINION
We have audited the syndicate underwriting year accounts of Syndicate 0727 (the ‘syndicate’) for the 2023
Year of Account for the three years ended 31 December 2025 which comprise the Profit and Loss Account, the
Statement of Changes in Members’ Balances, the Balance Sheet, the Statement of Cash Flows and Notes to
the Syndicate Underwriting Year Accounts, including significant accounting policies. The financial reporting
framework that has been applied in their preparation is applicable law, United Kingdom Accounting Standards,
including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United
Kingdom Generally Accepted Accounting Practice).
In our opinion, the syndicate underwriting year accounts:
•
give a true and fair view of the state of the syndicate’s affairs as at 31 December 2025 and of its profit for
the 2023 closed year of account for the three years 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 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, and we have fulfilled our other ethical responsibilities
in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
OTHER MATTER
This report may be included within a document to which iXBRL tagging has been applied. This auditors’
report provides no assurance over whether the iXBRL tagging has been applied in accordance with the Lloyd’s
Syndicate Accounts Instructions.
EMPHASIS OF MATTER – CLOSURE OF 2023 YEAR OF ACCOUNT
We draw attention to the Basis of Preparation at Note 1.2 which explains that the 2023 year of account of
Syndicate 0727 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 2023 year of account of Syndicate 0727 is no longer a going concern. The reinsurance to close
occurs in the normal course of business for a syndicate year of account at the 36-month stage of development
and the syndicate underwriting year accounts have been prepared on the basis that the recorded assets and
liabilities will be realised and discharged in the normal course of business.
Our opinion is not modified in respect of this matter.
EMPHASIS OF MATTER – REINSURANCE TO CLOSE (RITC)
We draw your attention to Note 6 of the syndicate underwriting year accounts which describes the composition
of the Reinsurance to Close (“RITC”). The syndicate has throughout its history underwritten a large portfolio
of US liability business which has potential for latent claims to emerge for many years after the risk was
underwritten. This together with the limited extent of reinsurance purchased, increases the risk that the ultimate
level of future claims may vary significantly from the amount at which the RITC has been set. The RITC selected
is significantly in excess of the actuary’s best estimate to reflect this uncertainty. However, should significant
INDEPENDENT AUDITOR’S REPORT
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2023 YEAR OF ACCOUNT CLOSED AT 31 DECEMBER 2025
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SYNDICATE 0727
INDEPENDENT AUDITOR’S REPORT
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2023 YEAR OF ACCOUNT CLOSED AT 31 DECEMBER 2025
latent losses emerge the reserves may be insufficient to fully provide for such development. Conversely, if the
more recent benign patterns of claims developments continues, the claims provision may prove to be in excess
of the ultimate cost.
Our opinion is not modified in respect of this matter.
OTHER INFORMATION
The other information comprises the information included in the 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 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 our report, we do
not express any form of assurance conclusion thereon. Our responsibility is to read the other information and,
in doing so, consider whether the other information is materially inconsistent with the syndicate 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 this
other information, we are required to report that fact.
We have nothing to report in this regard.
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 has not kept proper accounting records in respect of the syndicate; 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, the managing agent is responsible
for the preparation of the syndicate underwriting year accounts and for being satisfied that they give a true and
fair view and for such internal control as the managing agent determines is necessary to enable the preparation
of syndicate 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 continue to write new business, disclosing, as applicable, matters related to its ability to
continue as a going concern and using the going concern basis of accounting, unless the managing agent 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 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.
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SYNDICATE 0727
INDEPENDENT AUDITOR’S REPORT
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2023 YEAR OF ACCOUNT CLOSED AT 31 DECEMBER 2025
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures
in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities,
including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is
detailed below:
•
We obtained an understanding of the syndicate and the insurance sector in which it operates to identify
laws and regulations that could reasonably be expected to have a direct effect on the underwriting year
accounts. We obtained our understanding in this regard through discussions with management and the
application of our cumulative audit knowledge and experience of the insurance sector. We determined the
principal laws and regulations relevant to the syndicate in this regard to be those arising from Insurance
Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 and the Lloyd’s
Syndicate Accounting Byelaw (No.8 of 2005), the Financial Conduct Authority (‘FCA’), Prudential
Regulation Authority (‘PRA’) and the financial reporting framework (UK GAAP).
•
We designed our audit procedures to ensure the audit team considered whether there were any indications
of non-compliance by the syndicate with those laws and regulations. These procedures included, but were
not limited to:
•
agreeing the syndicate underwriting year accounts disclosures to regulatory requirements;
•
making enquiries of management and review of minutes of Board and management meetings
throughout the period;
•
understanding the syndicate’s policies and procedures in monitoring compliance with laws and
regulations;
•
inspecting correspondence with Lloyd’s, the PRA and FCA; and
•
reviewing compliance reports and internal audit reports relating to the syndicate.
•
We also identified possible risks of material misstatement of the syndicate underwriting year accounts
due to fraud. We considered in addition to the non-rebuttable presumption of a risk of fraud arising from
management override of controls, that there was potential for management bias in the reporting of events
and transactions in the syndicate underwriting year accounts relating to the valuation of the Reinsurance
to Close. To address this, in conjunction with our actuarial specialists, we challenged the assumptions and
judgements made by management when auditing those significant accounting estimates.
•
As in all of our audits, we addressed the risk of fraud arising from management override of controls by
performing audit procedures which included, but were not limited to, the testing of journals, reviewing
accounting estimates for evidence of bias and evaluating the business rationale of any significant
transactions that were unusual or outside the normal course of business.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including
those leading to a material misstatement in the syndicate underwriting year accounts or non-compliance with
laws and regulations. This risk increases the more that compliance with a law or regulation is removed from the
events and transactions reflected in the syndicate underwriting year accounts, as we will be less likely to become
aware of instances of non-compliance. This risk is also greater regarding irregularities occurring due to fraud
rather than error, as fraud involves intentional concealment, forgery, conclusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the syndicate underwriting year accounts is located
on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description
forms part of our auditor’s report.
.........
14
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SA MEACOCK
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..........
SYNDICATE 0727
INDEPENDENT AUDITOR’S REPORT
..........
❖
..........
2023 YEAR OF ACCOUNT CLOSED AT 31 DECEMBER 2025
USE OF OUR REPORT
This report is made solely to the syndicate’s members, as a body, in accordance with the Regulation 6(4) of The
Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 and the Syndicate
Accounting Byelaw (No.8 of 2005). 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.
Thomas Seaman (Senior Statutory Auditor)
For and on behalf of PKF Littlejohn LLP
Statutory Auditor
15 Westferry Circus
Canary Wharf
20 February 2026
London E14 4HD
........
.
15
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SA MEACOCK
..........
❖
..........
SYNDICATE 0727
2023 YEAR OF ACCOUNT CLOSED AT 31 DECEMBER 2025
2023
YEAR OF
ACCOUNT
. . . . . . . . .
NOTE
£’000
£’000
Syndicate Allocated Capacity
101,175
Earned Premiums, Net of Reinsurance:
Gross premiums written
3
115,935
Outward reinsurance premiums
(1,600)
Net premiums written
114,335
Reinsurance to Close Premiums Received, Net of Reinsurance
5
250,849
365,184
Allocated Investment Return Transferred from the
Non-Technical Account
14,772
Claims Incurred, Net of Reinsurance
Claims paid
Gross amount
(58,361)
Reinsurers’ share
2,986
(55,375)
Reinsurance to Close Premiums Payable, Net of Reinsurance
6
(264,272)
60,309
Net Operating Expenses
7
(41,444)
Balance on the Technical Account – for General Business
18,865
PROFIT AND LOSS ACCOUNT
TECHNICAL ACCOUNT FOR GENERAL BUSINESS
..........
❖
..........
THREE YEARS ENDED 31 DECEMBER 2025
.........
16
.........
SA MEACOCK
..........
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..........
SYNDICATE 0727
PROFIT AND LOSS ACCOUNT
NON-TECHNICAL ACCOUNT
..........
❖
..........
THREE YEARS ENDED 31 DECEMBER 2025
2023 YEAR OF ACCOUNT CLOSED AT 31 DECEMBER 2025
2023
YEAR OF
ACCOUNT
. . . . . . . . .
NOTE
£’000
Balance on the Technical Account – for General Business
18,865
Investment income
9
15,880
Unrealised gains on investments
9
3,646
Investment expenses and charges
9
(4,670)
Unrealised losses on investments
9
(84)
Allocated investment return transferred to general business technical account
9
(14,772)
Other charges – loss on exchange
(2,099)
Profit for the 2023 Closed Year of Account
16,766
As the 2023 Year of Account following a Reinsurance to Close is no longer trading, all operations relate to
ceased activities for this Year of Account.
The above profit is stated after a £2,099,143 exchange loss, included within the Non-Technical Account other
charges.
There was no other Comprehensive Income for the 2023 Year of Account.
STATEMENT OF CHANGES IN
MEMBERS’ BALANCES
..........
❖
..........
THREE YEARS ENDED 31 DECEMBER 2025
2023
YEAR OF
ACCOUNT
. . . . . . . . .
NOTE
£’000
Balance at 1 January 2023
–
Profit for the 2023 closed year of account
16,766
Members’ agents’ fees advances on behalf of Members
(403)
Amounts due to Members at 31 December 2025
16,363
........
.
17
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SA MEACOCK
..........
❖
..........
SYNDICATE 0727
BALANCE SHEET
..........
❖
..........
AT 31 DECEMBER 2025
2023 YEAR OF ACCOUNT CLOSED AT 31 DECEMBER 2025
2023
YEAR OF ACCOUNT
. . . . . . . . . . . . . . . . .
NOTE
£’000
£’000
Assets
Investments
10
256,152
Debtors
11
830
Reinsurance Recoveries Anticipated on Gross Reinsurance to
Close Premiums Payable
6
7,031
Other Assets
Cash at bank and in hand
6,286
Other (including overseas deposits)
4,168
10,454
Prepayments and Accrued Income
Accrued interest
2,310
Total Assets
276,777
Liabilities
Amount due to Members
16,363
Reinsurance to Close Premium Payable
– Gross Amount
6
252,065
Creditors
12
8,349
Total Liabilities
276,777
The Syndicate Underwriting Year Accounts were approved by the Board of Directors of S A Meacock &
Company Limited on 20 February 2026 and were signed on its behalf by:
J M Meacock
K W Jarvis
Director
Director
.........
18
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SA MEACOCK
..........
❖
..........
SYNDICATE 0727
STATEMENT OF CASH FLOWS
..........
❖
..........
THREE YEARS ENDED 31 DECEMBER 2025
2023 YEAR OF ACCOUNT CLOSED AT 31 DECEMBER 2025
2023
YEAR OF
ACCOUNT
. . . . . . . . .
NOTE
£’000
Cashflow from Operating Activities:
Profit/(loss) for the closed year account
16,363
Adjustments for:
Increase in reinsurance to close payable
6
245,034
(Increase) in debtors, prepayments and accrued interest
(3,543)
Increase in creditors, accruals and deferred income
8,349
Income from investment
9
(12,999)
Net unrealised (gains)/losses on investments
9
(3,562)
Currency changes
17,418
Net Cash Inflow from Operating Activities
267,060
Cash Flows from Investing Activities:
Purchase of equity and debt instruments, overseas deposits and other assets
(357,988)
Sale of equity and debt instruments, overseas deposits and other assets
84,618
Investment income received
9
12,999
Net Cash Outflow from Investing Activities
(260,371)
Cash Flows from Financing Activities:
Advances of fees to Members Agents on behalf of Members
(403)
Net Cash Outflow from Financing Activities
6,286
Net increase in Cash and Cash Equivalents in the three years
Cash and cash equivalents at 1 January 2023
–
Effect of exchange rates on cash and cash equivalents
–
Cash and cash equivalents at 31 December 2025
6,286
Cash and cash equivalents comprise:
Cash at bank and in hand
6,286
Other Financial Investments:
Short-term deposits with credit institutions
–
Cash and cash equivalents
6,286
........
.
19
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SA MEACOCK
..........
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..........
SYNDICATE 0727
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
General Information
1.1 General Information and Principal Activities
Syndicate 0727 is a Lloyd’s Syndicate domiciled in England and Wales. It is managed by S A Meacock & Company Limited
a private company limited by shares that is incorporated in England and whose registered office is Hasilwood House, 60
Bishopsgate, London EC2N 4AW.
The Syndicate underwrites a diverse book of general insurance and reinsurance business from around the world as part of
the Lloyd’s of London insurance market. This activity is carried out primarily from a box in the Lloyd’s Building in London
and from nearby offices.
The Syndicate is supported by capacity from connected and third-party members.
1.2 Basis of Preparation and Compliance with Accounting Standards
These Syndicate Underwriting Year Accounts have been prepared in accordance with United Kingdom Accounting Standards,
including both FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” and FRS 103
“Insurance Contracts” to the extent necessary to produce a true and fair view of the result, as well as the Insurance Accounts
Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 and the Syndicate Accounting Byelaw (No.8 of 2005).
The Syndicate Underwriting Year Accounts have been prepared on the historical cost basis, except for financial assets at fair
value through the profit or loss.
These Syndicate Underwriting Year Accounts (‘Accounts’) represent the participation of members in the 2023 Year
of Account which closed as at 31 December 2025. The accumulated profits of the 2023 Closed Year of Account will be
distributed shortly after publication of these Accounts. Therefore the 2023 Year of Account is not continuing to trade and,
accordingly, the Directors have not adopted the going concern basis of preparation of these Accounts. The amounts reported
would be identical if the accounts had been prepared on a going concern basis as the 2023 Year of Account will be closed by
payment of a Reinsurance to Close Premium, as outlined in Note 1.3 (e) 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 basis on which the Syndicate Underwriting Year Accounts are prepared is consistent with the Managing Agent’s
assessment that the Syndicate will be able to realise its assets and discharge its liabilities in the normal course of business.
This assessment takes into consideration that the Syndicate is continuing to underwrite for the 2026 year of account.
The Syndicate Underwriting Year Accounts are presented in Pounds Sterling which is also the Syndicate’s functional currency.
Members participate on a Syndicate by reference to a year of account and each Syndicate year of account is a separate
annual venture. These Syndicate Underwriting Year Accounts relate to the 2023 year of account which has been closed by
reinsurance to close into the 2024 year of account of Syndicate 0727 at 31 December 2025. Consequently, the Balance Sheet
represents the assets and liabilities of the 2023 year of account and the Profit and Loss Account and the Statement of Cash
Flows reflect the transactions for that year of account during the 36 months period until closure.
As each Syndicate year of account is a separate annual venture, comparatives do not exist and are therefore not included in
these accounts.
Significant Accounting Policies
1.3 Underwriting Transactions
Each account is normally kept open for three years and the underwriting result is ascertained at the end of the third year
when the account is closed, normally by reinsurance to close into the following year of account. The accounts include
transactions on the following bases:
(a)
Gross premiums are allocated to years of account on the basis of the policy inception date. Policies written under binding
authorities, lineslips or consortium arrangements are allocated to the year of account into which the arrangement
incepts. Additional and return premiums and claims are allocated to the year of account to which the related premiums
are allocated. Commissions or brokerage charged to the Syndicate are allocated to the same year of account as the
relevant policy. Premiums are shown gross of brokerage payable and exclude taxes and duties levied on them.
NOTES TO THE SYNDICATE
UNDERWRITING YEAR ACCOUNTS
..........
❖
..........
2023 YEAR OF ACCOUNT CLOSED AT 31 DECEMBER 2025
.........
20
.........
SA MEACOCK
..........
❖
..........
SYNDICATE 0727
NOTES TO THE SYNDICATE
UNDERWRITING YEAR ACCOUNTS
..........
❖
..........
2023 YEAR OF ACCOUNT CLOSED AT 31 DECEMBER 2025
1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(b)
The reinsurance premiums are allocated to a year of account in accordance with the underlying risks being protected.
Any reinsurance premium adjustments are charged to a year of account according to the basis on which the adjustments
concerned are calculated.
(c)
Gross claims paid include internal and external adjustment and settlement expenses. Salvages and reinsurance recoveries
are allocated to the year of account to which the related claim was charged.
(d)
All underwriting transactions are recognised on the basis of transactions processed up to and including the balance
sheet date plus accruals in respect of anticipated additional or return premiums, reinsurance premiums and reinsurance
recoveries in respect of paid claims.
(e)
A Reinsurance to Close is a contract of insurance which, in return for a premium paid by the closing Year of Account,
transfers, normally to the following Year of Account, all known and unknown liabilities arising out of transactions
connected with insurance business underwritten by the closing Year of Account. However, it should be noted that a
reinsurance to close contract does not extinguish the primary liability of the original underwriter.
The estimate of future liabilities (including internal and external settlement costs) and the premium for the Reinsurance
to Close are calculated by the Underwriter based on the latest loss information available at the time of making such
calculation. The calculation allows for the estimated net cost of claims which may have been incurred but not yet reported;
such allowance is established by the Underwriter exercising his judgment aided by statistical projections based on the history
of past claim settlements and by reference to case by case reviews of notified losses. The calculation includes estimates for
known outstanding claims, claims which may have been incurred but not reported, and potential reinsurance recoveries. The
uncertainties which are inherent in the process of estimating are such that in the normal course of events, unforeseen or
unexpected future developments may cause the ultimate cost of settling the outstanding liabilities to differ from that presently
estimated. Credit is taken for any reinsurance recoveries that are presently estimated to be recoverable. No credit is taken for
investment earnings which may be expected to arise in the future on the funds representing either the Reinsurance to Close
or the estimate of future liabilities as applicable. Any unearned premiums are taken into account within the calculation of
the Reinsurance to Close premium.
1.4 Financial assets and financial liabilities
(a)
Classification
The accounting classification of financial assets and liabilities determines their basis of measurement and how changes
in those values are presented in the profit or loss or other comprehensive income. These classifications are made at initial
recognition and subsequent reclassification is only permitted in restricted circumstances.
Investments in shares and other variable yield securities and unit trusts and debt securities and other fixed income securities
are classified as fair value through profit and loss as they are managed on a fair value basis. Cash at bank, deposits with credit
institutions, debtors and accrued interest are classified as held at amortised cost.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered
into. An equity instrument is any contract that evidences a residual interest in the asset after deducting all of its liabilities.
........
.
21
.........
SA MEACOCK
..........
❖
..........
SYNDICATE 0727
NOTES TO THE SYNDICATE
UNDERWRITING YEAR ACCOUNTS
..........
❖
..........
2023 YEAR OF ACCOUNT CLOSED AT 31 DECEMBER 2025
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(b)
Recognition
Financial assets and liabilities are recognised when the Syndicate becomes party to the contractual provisions of the
instrument.
Purchases and sales of financial assets are recognised and derecognised, as applicable, on the trade date, i.e. the date that the
Syndicate commits itself to purchase or sell the asset.
(c)
Initial measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those
financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the
transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement
constitutes a financing transaction, the financial asset or liability is measured at the present value of the future payments
discounted at a market rate of interest for a similar debt instrument.
(d)
Subsequent measurement
Non-current debt instruments are subsequently measured at amortised cost using the effective interest method.
Debt instruments that are classified as payable or receivable within one financial year and which meet the above conditions
are measured at the undiscounted amount of the cash or other consideration expected to be paid or received.
Investments in shares and other debt instruments are measured at fair value through profit or loss. Movements in unrealised
gains and losses on investments represent the difference between their valuation at the balance sheet date and their purchase
price or, if they have been previously valued, their valuation at the last balance sheet date, together with the reversal of
unrealised gains and losses recognised in previous calendar years in respect of the investment disposed of in the current
period.
(e)
De-recognition of financial assets and liabilities
Financial assets are derecognised when and only when a) the contractual rights to the cash flow from the financial asset expire
or are settled, b) the Syndicate transfer to another party substantially all of the risks and rewards of ownership of the financial
asset, or c) the Syndicate, despite having retained some significant risks and rewards of ownership, have transferred control
of the asset to another party and the other party has the practical ability to sell the asset in its entirety to an unrelated third
party and is able to exercise that ability unilaterally and without needing to impose additional restrictions on the transfer.
Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.
(f)
Fair value measurement
The best evidence of fair value is a quoted price for an identical asset or liability in an active market that the entity can access
at the measurement date. When quoted prices are unavailable, observable inputs developed using market data, other than
quoted prices, for the asset or liability, either directly or indirectly, are used to determine the fair value. If the market for
the asset is not active and there are no observable inputs, then the Syndicate estimates the fair value by using unobservable
inputs, where market data is unavailable.
.........
22
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SA MEACOCK
..........
❖
..........
SYNDICATE 0727
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(g)
Impairment of financial instruments measured at amortised cost or cost
For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying
amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate,
i.e. using the effective interest method.
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount
and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring
after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed
on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying
amount higher than the carrying value had no impairment been recognised. The amount of the reversal is recognised in
profit and loss immediately.
(h)
Offsetting
Debtors/creditors arising from insurance/reinsurance operations shown in the balance sheet include the totals of all
outstanding debit and credit transactions as processed by the Lloyd’s central facility. No account has been taken of any offsets
which may be applicable in calculating the net amounts due between the Syndicate and each of its counterparty insureds,
reinsurers or intermediaries as appropriate.
1.5
Investment Return
The gross investment return comprises investment income, realised investment gains and losses and movements in unrealised
gains and losses, net of investment expenses and charges. Investment return arising in each calendar year is allocated to years
of account in proportion to the average funds available for investment attributable to those years. Investment returns in
respect of overseas deposits are allocated to the year of account which funded these deposits.
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.
1.6
Syndicate Operating Expenses
Costs incurred by the Managing Agent in respect of the Syndicate are charged to the Syndicate. Where expenses do not relate
to any specific year of account they are apportioned between years of account on bases which reflect the benefit obtained
by each year of account from each type of expense. Where expenses are incurred jointly by the Managing Agent and the
Syndicate, they are apportioned on bases that are considered to fairly reflect the nature and usage of the expense concerned.
1.7
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 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 HMRC.
No provision has been made for any United States Federal Income Tax or any overseas tax payable on the underwriting
results or investment earnings. Members resident overseas for tax purposes are responsible for agreeing and settling any tax
liabilities with the taxation authorities of their country of residence.
NOTES TO THE SYNDICATE
UNDERWRITING YEAR ACCOUNTS
..........
❖
..........
2023 YEAR OF ACCOUNT CLOSED AT 31 DECEMBER 2025
........
.
23
.........
SA MEACOCK
..........
❖
..........
SYNDICATE 0727
1.8
Basis of Currency Translation
The Syndicate has Pounds Sterling as its functional and presentation currency.
Income and expenditure in US dollars and Canadian dollars are translated at average rates of exchange for each calendar year
as an equivalent of transaction rates. The exception to this is that the reinsurance to close receivable has been translated at the
transaction rates of exchange ruling at the effective dates of the contracts. Underwriting transactions denominated in other
foreign currencies are included at the rate of exchange ruling at the date the transaction is processed.
Although transactions are translated as described above the monetary assets and liabilities, including any unearned premiums
or deferred acquisition costs, within the balance sheet in US dollars and Canadian dollars are translated at the rates of
exchange ruling on 31 December 2025. Any differences are included within the profit or loss on exchange account in the
Non-Technical Account. Any non-monetary assets or liabilities are retained at their original exchange rate.
Where US dollars or Canadian dollars are sold or bought relating to the profit or loss of a closed underwriting account after
31 December 2024, any exchange profit or loss arising is reflected in the underwriting account into which the liabilities of
that year have been reinsured. Where United States Dollars are transferred to or from Members any exchange profit or loss
accrues to those Members.
1.9
Key Accounting Judgements and Estimation Uncertainties
The key accounting judgements, assumptions and estimates made in the preparation of these Underwriting Year Accounts
are those relating to the determination of the Reinsurance to Close to transfer all assets and liabilities from the 2023 Year of
Account to the 2024 Year of Account. However, as this amount has been contractually committed to since the year-end there
can be no further change to the amount in respect of the 2023 Year of Account.
The accounting policy for the Reinsurance to Close is described at 1.3(e) and the related risks relating to the underlying net
technical provisions that it transfers are described at Note 2.2 (c) on pages 56 to 60 within the Syndicate Annual Accounts.
The Reinsurance to Close for net technical provisions after the reinsurers’ share is £245.0m. The most uncertain element
within these technical provisions is the amount for claims outstanding which covers amounts where either a claim event has
occurred but the Syndicate has not yet been notified or where there has been insufficient information to date to be certain
regarding its ultimate cost. An analysis of the Reinsurance to Close for net technical provisions after the reinsurers’ share
including disclosure of the provision for Incurred But Not Reported (“IBNR”) after potential related reinsurance recoveries
is shown at Note 6.
2.
RISK AND CAPITAL MANAGEMENT
Since 31 December 2025 a Reinsurance to Close has been completed which transferred all assets and liabilities from the
2023 year of account to the 2024 year of account. Any change in value of the assets or liabilities or further transactions after
31 December 2025 will be borne by the 2024 year of account. The 2023 year of account therefore bears no further risk and
accordingly no disclosures relating to risks are disclosed in these Underwriting Year Accounts. The risks remain within the
Syndicate and are borne by the 2024 and subsequent years of account and are disclosed in the Syndicate Annual Accounts
on pages 31 to 83 and in particular within Note 2.2 (c) on Risk Management on pages 56 to 60.
The basis on which capital is managed by the Syndicate in accordance with the requirements of the Society of Lloyd’s and
the Prudential Regulation Authority is also described within the Syndicate Annual Accounts within Note 17 on Regulatory
Capital Management on page 80.
NOTES TO THE SYNDICATE
UNDERWRITING YEAR ACCOUNTS
..........
❖
..........
2023 YEAR OF ACCOUNT CLOSED AT 31 DECEMBER 2025
.........
24
.........
SA MEACOCK
..........
❖
..........
SYNDICATE 0727
3.
ANALYSIS BY CLASS OF BUSINESS
An analysis of the underwriting result before investment return for the three years ended 31 December 2025 is set out below::
GROSS
PREMIUMS
WRITTEN
& EARNED
GROSS
CLAIMS
INCURRED
GROSS
OPERATING
EXPENSES
REINSURANCE
BALANCE
TOTAL
TECHNICAL
RESULT
2023 YEAR OF ACCOUNT
£’000
£’000
£’000
£’000
£’000
Direct Insurance
Accident and health
1,244
(1,565)
(402)
(45)
(768)
Motor (third party liability)
1,138
(953)
(557)
–
(372)
Motor (other classes)
9,543
(6,406)
(4,261)
–
(1,124)
Marine aviation and transport
3,528
(1,463)
(1,642)
–
423
Fire and other damage of property
31,986
(20,740)
(12,093)
34
(813)
Third Party Liability
21,545
(16,896)
(8,858)
(6)
(4,215)
Credit and Suretyship
1,198
(585)
(640)
–
(27)
Legal Expenses
–
–
–
–
–
Assistance
–
–
–
–
–
70,182
(48,608)
(28,453)
(17)
(6,896)
Reinsurance Acceptance
45,753
(9,753)
(12,991)
1,403
24,412
115,935
(58,361)
(41,444)
1,386
17,516
Reinsurance to Close received
252,449
–
–
(1,600)
250,849
Reinsurance to Close payable
–
(267,258)
–
2,986
(264,272)
Total
368,384
(325,619)
(41,444)
2,772
4,093
4.
GEOGRAPHICAL ORIGIN OF GROSS DIRECT PREMIUMS WRITTEN
All contracts of insurance were concluded in the United Kingdom.
5.
REINSURANCE TO CLOSE PREMIUMS RECEIVED, NET OF REINSURANCE
OUTSTANDING
CLAIMS
REPORTED
IBNR
2023
YEAR OF
ACCOUNT
TOTAL
£’000
£’000
£’000
Gross reinsurance to close premiums received
44,805
208,012
252,817
Reinsurance recoveries anticipated
(4,149)
(6,201)
(10,350)
40,656
201,811
242,467
Provision for internal claims administration expenses
8,382
At 1 January 2025 exchange rate
250,849
IBNR is the provision for claims incurred but not reported.
The value of the RITC received at the 2025 average exchange rate was £238,623,223
NOTES TO THE SYNDICATE
UNDERWRITING YEAR ACCOUNTS
..........
❖
..........
2023 YEAR OF ACCOUNT CLOSED AT 31 DECEMBER 2025
........
.
25
.........
SA MEACOCK
..........
❖
..........
SYNDICATE 0727
6.
REINSURANCE TO CLOSE PREMIUMS PAYABLE NET OF REINSURANCE
OUTSTANDING
CLAIMS
REPORTED
IBNR
TOTAL
£’000
£’000
£’000
Gross reinsurance to close premiums payable
42,212
221,105
263,317
Reinsurance recoveries anticipated
(1,538)
(6,201)
(7,739)
40,674
214,904
255,578
Provision for internal claims administration expenses
8,694
At 2025 calendar year average exchange rate
264,272
Adjustments to year-end foreign exchange rates
(19,238)
At 31 December 2025 exchange rate
245,034
Continuing to use 31 December 2025 exchange rates, this number is made up of anticipated claims settlements of £243.4m
and anticipated recoveries from reinsurers of £7.0m, but does not include the charge of £4.2m for estimated future return
premium which has been allowed for in arriving at the gross written premium figure of £115.9m. Including the £8.7m
reserve against future claims handling costs the total value of all future liabilities of the 2023 and prior years of account
has been reserved at £245.0m. This compares to the RITC of the 2022 Account brought forward of £233.8m when using
31 December 2025 exchange rates.
As detailed in note 2.2 (c) to the Syndicate Annual Accounts, the syndicate adopts an approach to claims reserving that is above
the actuary’s best estimate, primarily to allow for the future emergence of latent losses on its long tail US liability business,
as has happened in the past. The excess above best estimate within the RITC paid by 2023 Year of Account is £126.4m and
the excess received from the 2022 Year of Account was £114.6m. The amount shown above was the Reinsurance to Close
premium payable for closing the 2023 year of account into the 2024 year of account of Syndicate 0727 as at 31 December
2025 was subsequently approved by the Board of S A Meacock & Company Limited on 29 January 2026.
The table of the development of ultimate claims over the last ten years is shown within Note 4 to the Syndicate Annual
Accounts for the year ended 31 December 2025.
Reconciliation of Reinsurance to Close premiums
received to Reinsurance to Close premiums payable
GROSS
CLAIMS
REINSURERS’
SHARE
TOTAL
£’000
£’000
£’000
Reinsurance to Close Received at 1-1-24 (Note 5)
261,199
(10,350)
250,849
Claims paid in relation to 2022 and prior
(21,275)
2,941
(18,334)
Change in provision for 2022 and prior claims
(8,000)
(329)
(8,329)
Effect of movements in exchange rates
(17,276)
707
(16,569)
Reinsurance to Close Payable for 2022 and prior at 31-12-25
214,648
(7,031)
207,617
Provision for claims in relation to 2023 pure
37,417
–
37,417
Reinsurance to Close Payable for 2023 and prior at 31-12-25
252,065
(7,031)
245,034
NOTES TO THE SYNDICATE
UNDERWRITING YEAR ACCOUNTS
..........
❖
..........
2023 YEAR OF ACCOUNT CLOSED AT 31 DECEMBER 2025
.........
26
.........
SA MEACOCK
..........
❖
..........
SYNDICATE 0727
7.
NET OPERATING EXPENSES
2023
YEAR OF
ACCOUNT
£’000
Brokerage and commissions
29,806
Other acquisition costs
1,130
Acquisition costs
30,936
Administrative Expenses
10,508
41,444
Included within administrative costs above are the following:
Auditors’ remuneration – audit related services
258
Auditors’ remuneration
– other reports to Regulators
–
Standard personal expenses (excluding Members’ agents’ fees)
5,580
8.
BALANCE ON THE TECHNICAL ACCOUNT BEFORE NET OPERATING EXPENSES AND ALLOCATED INVESTMENT RETURN
AND AFTER BROKERAGE AND COMMISSIONS
2022
& PRIOR
YEARS
OF ACCOUNT
2023
PURE
YEAR OF
ACCOUNT
TOTAL
2023
£’000
£’000
£’000
Technical account balance before allocated investment return and net
operating expenses
11,193
34,344
45,537
Brokerage and commission on gross premium (Note 7)
–
(29,806)
(29,806)
Balance after brokerage and commissions
11,193
4,538
15,731
11,193
4,538
15,731
NOTES TO THE SYNDICATE
UNDERWRITING YEAR ACCOUNTS
..........
❖
..........
2023 YEAR OF ACCOUNT CLOSED AT 31 DECEMBER 2025
........
.
27
.........
SA MEACOCK
..........
❖
..........
SYNDICATE 0727
9.
INVESTMENT RETURN
2023
YEAR OF
ACCOUNT
£’000
Income from investments
12,999
Gains on realisation of investments
2,881
Investment Income
15,880
Losses on realisation of investments
(4,670)
Investment expenses and charges
(4,670)
Unrealised gains on investments
3,646
Unrealised losses on investments
(84)
Net unrealised gains on investments
3,562
Allocated investment return transferred to the Technical Account from the Non-Technical Account
14,772
The above is comprised of:
Interest and dividend income from financial assets at fair value through profit or loss
8,359
From financial instruments designated as held to maturity
4,640
Net realised and unrealised gains and losses from financial assets at fair value through profit or loss
1,773
Total Investment Return
14,772
10.
INVESTMENTS
MARKET
VALUE
2023
YEAR OF
ACCOUNT
COST
£’000
£’000
Financial assets at fair value through profit or loss:
Shares and other variable yield securities and unit trusts
34,297
34,297
Debt securities and other fixed income securities
221,855
220,854
256,152
255,151
Fair value hierarchy
The above financial instruments carried at fair value have been classified by valuation method into three levels based on
the reliability of inputs used in determining fair values, with Level 1 being the most reliable. The three levels are as follows:
Level 1: The unadjusted quoted prices in an active market for identical assets or liabilities that the entity can access at the
measurement date.
Level 2: Inputs other than quoted prices included within Level 1 that are observable (i.e. developed using market data), for
the asset or liability, either directly or indirectly.
Level 3: Inputs are unobservable (i.e. for which market data is unavailable) for the asset or liability.
NOTES TO THE SYNDICATE
UNDERWRITING YEAR ACCOUNTS
..........
❖
..........
2023 YEAR OF ACCOUNT CLOSED AT 31 DECEMBER 2025
.........
28
.........
SA MEACOCK
..........
❖
..........
SYNDICATE 0727
10.
INVESTMENTS (CONTINUED)
LEVEL 1
LEVEL 2
LEVEL 3
2023
YEAR OF
ACCOUNT
TOTAL
£’000
£’000
£’000
£’000
Financial assets at fair value through profit or loss:
Shares and other variable yield securities and units in
unit trusts
–
34,297
–
34,297
Debt securities and other fixed income securities
221,855
–
–
221,855
221,855
34,297
–
256,152
Additional details about the methods and assumptions used to determine the fair value of the financial investments are given
in Note 1.4 of these Syndicate Underwriting Year Accounts and Note 1.12 of the Syndicate Annual Accounts for the year
ended 31 December 2025 on pages 20 to 22 and pages 51 to 53 respectively.
11.
DEBTORS
2023
YEAR OF
ACCOUNT
£’000
Arising out of direct insurance operations:
Intermediaries
–
Arising out of reinsurance operations
Other debtors
830
830
All amounts are due within one year.
12.
CREDITORS
2023
YEAR OF
ACCOUNT
£’000
Provision for other risks and charges
426
Creditors arising out of direct insurance operations
4,036
Other creditors
3,887
Financial liabilities at amortised cost
8,349
The other creditors amounting to £3.887m, include profit commission payable to the syndicate’s managing Agent of £3.886.
All amounts are payable within one year.
NOTES TO THE SYNDICATE
UNDERWRITING YEAR ACCOUNTS
..........
❖
..........
2023 YEAR OF ACCOUNT CLOSED AT 31 DECEMBER 2025
........
.
29
.........
SA MEACOCK
..........
❖
..........
SYNDICATE 0727
13.
RELATED PARTIES
(a)
S A Meacock and Company Limited (the company) is a Managing Agent which has managed Syndicate 0727 since
1 January 1997 with standard agency terms as follows:-
FEE
£’000’s
PROFIT
COMMISSION
£’000’s
2023
0.75%
759
20%*
3,886
Profit commission is not charged to staff, Executive Directors of the company or Meacock LLP.
*
The profit commission rate chargeable is the result of the current and prior six years expressed as a percentage of
capacity:
7.5% or greater
20%
Less than 7.5%
17.5%
(b)
Certain expenses amounting to £4,468,354 were incurred by the company and then recharged to the Syndicate.
(c)
The balance due to the company at 31 December 2025 was £3,886,068, in respect of profit commission.
(d)
In 2006 Meacock LLP was formed to enable Executive Directors and staff to participate in the Syndicate. Directors’
participations are included in Note 13(e) below. For 2023, the aggregate capacity of the Meacock LLP was £3,705,267.
(e)
The combined Syndicate participations of the Directors and staff of the Managing Agent, both as individual names
(unlimited and Nameco) and through the Meacock LLP, are shown below:
2023 ACCOUNT
. . . . . . . . . . . . . . . . .
£’000’s
% OPL
M P Bartlett
200
100
N N S Ford (Retired 30 June 2023)
500
100
K W Jarvis
801
100
D J Jones
310
100
J M Meacock
784
47
A Taylor
1,607
100
G J Thompson (Appointed 1 July 2023)
126
100
D A Thorp
587
100
Meacock LLP (other than those shown above, both current and former staff)
1,069
100
None of these participations were through a MAPA and none has been protected by personal stop loss arrangements.
Standard terms have been applied to them with the exception that profit commission has not been charged to staff,
Executive Directors of the company or Meacock LLP.
NOTES TO THE SYNDICATE
UNDERWRITING YEAR ACCOUNTS
..........
❖
..........
2023 YEAR OF ACCOUNT CLOSED AT 31 DECEMBER 2025
.........
30
.........
SA MEACOCK
..........
❖
..........
SYNDICATE 0727
13.
RELATED PARTIES (CONTINUED)
(f)
Meacock Capital plc (MC) which has a total issued share capital of 5,295,146 ordinary 25 pence shares owns 100% of
Meacock Underwriting Limited (MU) which participated on Syndicate 0727 on standard terms and with the following
capacity:
£
2023
19,208,990
The following Directors or connected persons held shares in MC:
2023
ORD. 25P
% SHARE CAP
C N Jarvis (wife of K W Jarvis)
100,500
1.90
C E Meacock*
881,877
16.65
J M Meacock*
881,877
16.65
J W S Meacock*
881,878
16.65
W T R Meacock*
881,877
16.65
D A Thorp
56,000
1.06
A Taylor
50,000
0.94
*
Includes shares inherited from their late father M J Meacock deceased.
(g)
Mr W T R Meacock, was appointed a Director of Meacock Capital plc and Meacock Underwriting Limited on
1 October 2010. He is also a Director of Guy Carpenter & Company LLC, a Marsh McLennan company, which does
place business with Syndicate 0727. Mr W T R Meacock is not personally involved in the placing of any business with
Syndicate 0727 and does not receive any form of direct remuneration or commission for this business.
(h)
The following other ‘close family’ members of Mr J M Meacock also participated on Syndicate 0727, on standard terms:
2023
ACCOUNT
£’000’s
C E Meacock (brother)
249
J W S Meacock (brother)
263
Mrs R J R Meacock (mother)
1,010
W T R Meacock (brother), via Elnry Ltd
207
(i)
There were no unpaid balances due to the Syndicate at 31 December 2025 from any of the Members detailed in notes
13(e) and 13(h) above.
14.
PENSION OBLIGATIONS
The company operates a defined contribution scheme for its employees including Syndicate staff. The cost of the contributions
charged to the 2023 year of account was £180,731 and there were no outstanding or prepaid contributions at 31 December
2025 in respect of the 2023 year of account. As the 2023 year of account has now been reinsured to close, no further pension
contributions are chargeable to the Members of this year of account.
NOTES TO THE SYNDICATE
UNDERWRITING YEAR ACCOUNTS
..........
❖
..........
2023 YEAR OF ACCOUNT CLOSED AT 31 DECEMBER 2025
........
.
31
.........
SYNDICATE 0727
SYNDICATE ANNUAL
REPORT AND ACCOUNTS
FOR THE YEAR ENDED
.........
32
.........
SA MEACOCK
..........
❖
..........
SYNDICATE 0727
Directors and Administration
........
.
33
.........
Strategic Report of the Managing Agent
........
.
34
.........
Managing Agent’s Report
........
.
38
.........
Statement of Managing Agent’s Responsibilities
........
.
39
.........
Independent Auditor’s Report to the members of Syndicate 0727
........
.
40
.........
Statement of profit or loss: Technical Account: General Business
........
.
44
.........
Statement of profit or loss: Technical Account: Non-Technical Account
........
.
45
.........
Statement of Changes in Members’ Balances
........
.
45
.........
Balance Sheet – Assets
........
.
46
.........
Balance Sheet – Liabilities
........
.
47
.........
Statement of Cash Flows
........
.
48
.........
Notes to the Syndicate Annual Accounts
........
.
49
.........
CONTENTS
..........
❖
..........
AT 31 DECEMBER 2025
........
.
33
.........
SA MEACOCK
..........
❖
..........
SYNDICATE 0727
MANAGING AGENT:
Managing Agent
Hasilwood House
60 Bishopsgate
London EC2N 4AW
Directors
D A Thorp (Non-Executive Chair)
M P Bartlett
Mrs M C Goddard (Non-Executive Director) (from 1 July 2025)
K W Jarvis
D J Jones
J M Meacock
A Taylor
D G Taylor Rea (Non-Executive Director)
G J Thompson
D K L White (Non-Executive Director) (to 30 June 2025)
SYNDICATE:
Joint Active Underwriters
J M Meacock and M P Bartlett
Independent Auditor
PKF Littlejohn LLP
Statutory Auditor
15 Westferry Circus
Canary Wharf
London E14 4HD
DIRECTORS AND ADVISERS
..........
❖
..........
31 DECEMBER 2025
.........
34
.........
SA MEACOCK
..........
❖
..........
SYNDICATE 0727
The Directors of S A Meacock & Company Limited present their Strategic Report for Syndicate 0727 for the
year ended 31 December 2025.
Syndicate Underwriting Year Accounts
In addition to these Syndicate Annual Accounts there is also a separate set of Underwriting Year Accounts shown
at pages 7 to 30 drawn up on the three year funded basis which have been prepared to show the cumulative result
for the 2023 closed underwriting account as at 31 December 2025 which is being distributed in 2026.
Activities
The principal activity of the Syndicate is that of underwriting insurance and reinsurance risks and this is
conducted wholly within the Lloyd’s market. A large percentage of the risks underwritten are located in North
America while significant exposures are accepted in the UK and more modest exposures in many other areas of
the world. Exposures taken on through reinsurance would have a similar geographic spread with perhaps less
emphasis on the UK. Note 3 to the Financial Statements provides an analysis of the business by class. There are
no significant lines of business that have been discontinued or commenced during the year.
Key Performance Indicators
The Managing Agent considers the following to be key performance indicators of the Syndicate:
CALENDAR YEAR
2025
2024
Initial capacity (underwriting year)
£108.7m
£108.6m
Gross premiums written (Note 3)
£107.9m
£115.4m
Gross premium (less reinsurance) earned
£106.0m
£115.6m
Acquisition costs earned (Note 5)
£28.5m
£31.3m
Profit/(Loss) for the year earned on the General Business Technical Account
£9.3m
£23.1m
Claims ratio (net)
69.4%
58.6%
Combined ratio (net)
104.6%
92.9%
Cash and investments
£335.4m
£353.3m
The 2025 Account capacity finished at £108.6m and the capacity for the 2026 Underwriting Year of Account
is initially at £108.7m including reinsurance business written. The gross premiums underwritten in the year
ended 31 December 2025 were £107.9m, a 6.5% decrease over the previous year. Property continues to be our
largest line of business, accounting for 55.8% of the earned premium, while casualty is 26.6% of the earned
premium. All other business categories are quite small in comparison. In line with the stated philosophy of
taking on only exposures worth keeping, very little reinsurance has been purchased. Such reinsurance which
has been purchased is largely placed with reinsurers whose security is “A” rated by AM Best (the same level as
Lloyd’s) or better.
Rate integrity in the excess of loss reinsurance book has improved this year, meaning that the proportion of
property and casualty business written through binding authorities has slightly reduced. In 2025, 53.9% of the
£107.7m of gross earned premium came from binding authorities.
The combined ratio of 104.6% reflects adverse catastrophe activity affecting the syndicate in 2025, alongside a
strengthening of reserves on the 2023 and prior years of account. See the Risk Management note beginning on
page 54 for more detail regarding this.
STRATEGIC REPORT OF THE MANAGING AGENT
..........
❖
..........
31 DECEMBER 2025
........
.
35
.........
SA MEACOCK
..........
❖
..........
SYNDICATE 0727
STRATEGIC REPORT OF THE MANAGING AGENT
..........
❖
..........
31 DECEMBER 2025
Results
The profit on the General Business Technical Account for the calendar year 2025 was £9.3m. In calendar year
2024 the profit was £23.1m (comparing claims recognised during 2025 with the gross premium earned during
2025 produces ratios of 66.4% for the property book and 75.6% for the liability book.)
Current Trading Conditions and Future Developments
The slight deterioration in pricing reported twelve months ago has continued. The Syndicate intends to
underwrite a largely similar mix of business in 2026 subject to any changes in market conditions and any
opportunities that may arise. A similar level of reinsurance protection is proposed for 2026 to that purchased
in 2025. The initial stamp capacity remained the same for 2026 at £108.7m and the stamp utilisation level is
forecast to be 79.6%.
There have been no significant post-balance-sheet events other than the proposed distribution of profits to
Members detailed in Note 15 to the Syndicate Annual Accounts.
As a Syndicate that underwrites over 80% of its business in the USA, we take comfort that Lloyd’s and the
broking community in particular have a healthy presence in the USA. This should ensure effective management
of any issues that may arise to challenge the existing arrangements regarding Excess and Surplus Lines business
and Reinsurance Markets business.
Analysis of Risk Management and Underwriting Analysis
The key risks for the business are related to insurance and comprise business volumes and pricing levels, claims
levels from catastrophic events and attritional claims and reserving adequacy. Investment risks are the next
largest element of risk for the business.
The Syndicate Annual Accounts include further details of risks and risk management at Note 2. Additionally
details of the underwriting business written by Class of Business and claims development are included within
Notes 3 and 4 respectively.
OTHER PERFORMANCE INDICATORS
Culture and Staff Engagement
We believe that we create a good working environment with a positive culture for our colleagues to develop and
thrive. We are committed to maintaining a competent workforce, selecting and developing the best individuals,
who believe in team-work and traditional values.
The Managing Agent considers its staff to be a key resource and seeks to provide a good working environment
that is safe and complies with appropriate employee legislation and is also satisfying to all staff, with a view to
achieving a high retention and level of production. During the year there have been no speaking up or whistle
blowing matters raised.
We actively encourage employee views and feedback in order to continually imbed a positive culture throughout
the firm.
.........
36
.........
SA MEACOCK
..........
❖
..........
SYNDICATE 0727
STRATEGIC REPORT OF THE MANAGING AGENT
..........
❖
..........
31 DECEMBER 2025
Environmental Matters and the Financial Risks from Climate Change
The Managing Agent does not consider that Syndicate 0727 has a material impact upon the environment.
As a result the Managing Agent does not currently manage its business by reference to any environmental key
performance indicators, although we continue to have this aspect under review as part of our Sustainability Policy.
Directors and employees of the Managing Agent are not provided with company cars and travel requisitions and
expenses are subject to review as to whether the journey is necessary for the business. The Managing Agent
seeks to maintain a high proportion of its records electronically. To help achieve this the Managing Agent is a
party to the current electronic data exchange programme in the London market, which is intended to reduce
the amount of paper records circulating in the market. The Managing Agent also seeks to recycle over 80% of its
paper consumption by the use of recycling bags for all business wastepaper and shredding.
Climate change poses a serious risk to the global economy and therefore deserves our careful consideration. We
are currently reviewing our approach to managing financial and operational resilience risks from climate change
following the publication of the Supervisory Statement 4/25 Enhancing banks’ and insurers’ approaches to
managing climate-related risks (SS 4/25), published by the Prudential Regulatory Authority (PRA) in December
2025. Climate risks can be grouped into three categories: physical risks arising from a number of factors relating
to weather events; transition risks that could lead to stranded assets and devaluation of our investment portfolio;
and liability risks that could result from legal action related to climate change.
Although SS 4/25 states that litigation is an optional category, we have retained it as a separate category to
maintain a consistent approach and have explored how each of the three types of risks interacts with our risk
universe, incorporating the management of climate-related risks into our overall risk management process.
Corporate Governance
The Governance Framework within the company touches on all aspects of the business, ensuring that checks
and balances are in place so that effective decision making can take place. An external Board Effectiveness
Review (BER) is carried out every 3 years and at Q1 2025 such a BER was completed. The Company Secretary
carries out reviews in the other 2 years and also every year reviews structure, decision making, competency
assessment, succession planning and Non-Executive challenge.
........
.
37
.........
SA MEACOCK
..........
❖
..........
SYNDICATE 0727
STRATEGIC REPORT OF THE MANAGING AGENT
..........
❖
..........
31 DECEMBER 2025
Investment Return
2025
2024
£’000
£’000
Income from investments
12,295
12,831
Net gains/(losses) on realised investments
(1,789)
(3,751)
Net (losses)/gains on unrealised investments
3,621
5,770
Total investment return, expressed at year-end rates for the purpose of calculating the
calendar year investment yield
14,127
14,850
Average amount of Syndicate funds available for investment during the year (expressed in Sterling at year-end
rates):
Sterling
3,701
4,250
US Dollar (in Sterling)
291,347
305,861
Canadian Dollar (in Sterling)
24,287
21,830
Combined in Sterling at year-end rates
319,335
331,941
Gross calendar year investment yield:
Sterling
5.7%
4.8%
US Dollar
4.4%
4.4%
Canadian Dollar
2.8%
4.5%
Combined
4.0%
4.4%
The above investment returns are calculated using average funds based on the monthly balances of bank
accounts and investments as revalued to month-end market prices. The available funds were mostly held in US
Dollars with much smaller amounts held in the other two currencies.
The investments are managed in-house and the custodians for investments were Hargreaves Lansdown, Citibank
and Royal Bank of Canada.
Approved by the Board of Directors of S A Meacock & Company Limited, and signed on its behalf by:
K W Jarvis
Director
20 February 2026
.........
38
.........
SA MEACOCK
..........
❖
..........
SYNDICATE 0727
REPORT OF THE DIRECTORS OF THE MANAGING AGENT
..........
❖
..........
31 DECEMBER 2025
The Managing Agent presents its Directors’ Report for Syndicate 0727 for the year ended 31 December 2025.
Strategic Report
The Managing Agent’s Report should be read in conjunction with the Strategic Report as it includes information
required to be disclosed in the Managing Agent’s Report. This information is primarily relating to a review of
the business and a description of principal risks and uncertainties, although there is more extensive disclosure
of risk management in Note 2 to the Syndicate Annual Accounts.
Directors Serving in the Year
The Directors of the Managing Agent, who served during the year ended 31 December 2025 and up to the date
of this report were as follows:
D A Thorp (Non-Executive Chair)
M P Bartlett
Mrs M C Goddard (Non-Executive Director) from 1 July 2025
K W Jarvis
D J Jones
J M Meacock
A Taylor
D G Taylor Rea (Non-Executive Director)
G J Thompson
D K L White (Non-Executive Director) to 30 June 2025
Annual General Meeting
The Directors do not propose to hold an Annual General Meeting for the Syndicate. If any Members’ agent or
direct corporate supporter of the Syndicate wishes to meet them, the Directors will be happy to do so.
Auditor
PKF Littlejohn LLP has signified its willingness to continue in office as auditor.
Disclosure of Information to Auditor
The Directors of the Managing Agent who held office at the date of the approval of this Report of the Directors
confirm that, so far as they are individually 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 Director to make
themselves aware of any relevant audit information and to establish that the Syndicate’s auditor is aware of that
information.
Approved by the Board of Directors of S A Meacock & Company Limited, and signed on its behalf by:
K W Jarvis
Director
20 February 2026
........
.
39
.........
SA MEACOCK
..........
❖
..........
SYNDICATE 0727
The Managing Agent is responsible for preparing the Annual Report and the Syndicate Annual Accounts in
accordance with applicable law and United Kingdom Generally Accepted Accounting Practice.
Regulation 5 of The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations
2008 (“the 2008 Regulations”) requires the Managing Agent to prepare Syndicate Annual Accounts at 31
December each year in accordance with United Kingdom Generally Accepted Accounting Practice (United
Kingdom Accounting Standards and applicable law). The Syndicate Annual Accounts are required by law to give
a true and fair view of the state of affairs of the Syndicate and of its profit or loss for that year.
In preparing those Syndicate Annual Accounts, the Managing Agent is required to:
•
select suitable accounting policies, and apply them consistently except where relevant accounting
requirements change in the year;
•
make judgments and estimates that are reasonable and prudent;
•
state whether applicable accounting standards have been followed, subject to any material departures
disclosed and explained in the Syndicate Annual Accounts; and
•
prepare the Syndicate Annual Accounts on a going concern basis, unless it is inappropriate to do so.
•
assess the Syndicate’s ability to continue to write new business, disclosing as applicable, matters related to
its ability to continue to operate and using the going concern basis of accounting, unless the Managing
Agent intends to cease to operate the Syndicate or has no realistic alternative but to do so.
The Managing Agent is responsible for keeping proper accounting records which disclose with reasonable
accuracy at any time the financial position of the Syndicate and enable it to ensure that the Syndicate Annual
Accounts comply with the 2008 Regulations. It is also responsible for safeguarding the assets of the Syndicate
and hence for taking reasonable steps for prevention and detection of fraud and other irregularities.
We confirm that to the best of our knowledge the syndicate accounts, including the iXBRL tagging applied to
these accounts, comply with the requirements of the Lloyd’s Syndicate Accounts Instructions version 3.1 as
modified by the Frequently Asked Questions version 1.1 issued by Lloyd’s.
Approved by the Board of Directors of S A Meacock & Company Limited, and signed on its behalf by:
K W Jarvis
Director
20 February 2026
STATEMENT OF MANAGING AGENT’S RESPONSIBILITIES
..........
❖
..........
31 DECEMBER 2025
.........
40
.........
SA MEACOCK
..........
❖
..........
SYNDICATE 0727
Independent Auditor’s Report to the Members of Syndicate 0727
Opinion
We have audited the Syndicate Annual Accounts of Syndicate 0727 (the ‘Syndicate’) for the year ended 31
December 2025 which comprise the Statement of profit or loss and other comprehensive income, the Balance
sheet, the Statement of changes in members’ balances, the Statement of cash flows and notes to the financial
statements, including 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 (United Kingdom Generally
Accepted Accounting Practice).
In our opinion, the Syndicate Annual Accounts:
•
give a true and fair view of the state of the Syndicate’s affairs as at 31 December 2025 and of its profit for
the year then ended;
•
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting
Practice; and
•
have been prepared in accordance with the requirements of the Insurance Accounts Directive (Lloyd’s
Syndicate and Aggregate Accounts) Regulations 2008 and the requirements within Lloyd’s Syndicate
Accounts Instructions Version 3.1 as modified by the Frequently Asked Questions Version 1.1 issued by
Lloyd’s (the “Lloyd’s Syndicate Accounts Instructions”).
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)), The
Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008, the Lloyd’s
Syndicate Accounts Instructions and other applicable law. Our responsibilities under those standards are
further described in the Auditor’s responsibilities for the audit of the Syndicate Annual Accounts section of our
report. We are independent of the Syndicate in accordance with the ethical requirements that are relevant to our
audit of the Syndicate Annual Accounts in the UK, including the FRC’s Ethical Standard, and we have fulfilled
our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our opinion.
Other Matter
This report may be included within a document to which iXBRL tagging has been applied. This auditor’s
report provides no assurance over whether the iXBRL tagging has been applied in accordance with the Lloyd’s
Syndicate Accounts Instructions.
Conclusions relating to going concern
In auditing the Syndicate Annual Accounts, we have concluded that the managing agent’s use of the going
concern basis of accounting in the preparation of the Syndicate Annual Accounts is appropriate.
Based upon the work we have performed, we have not identified any material uncertainties relating to events or
conditions that, individually or collectively, may cast significant doubt on the Syndicate’s ability to continue as a
going concern for a period of at least twelve months from when the Syndicate Annual Accounts are authorised
for issue.
Our responsibilities and the responsibilities of the managing agent with respect to going concern are described
in the relevant sections of this report.
Emphasis of matter – technical provisions
We draw attention to note 2.2 (c) of the Syndicate Annual Accounts which describes the reserving risk in
relation to the syndicate’s technical provisions for outstanding claims and the syndicate’s approach to addressing
INDEPENDENT AUDITOR’S REPORT
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INDEPENDENT AUDITOR’S REPORT
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31 DECEMBER 2025
this risk. The syndicate has, throughout its history, underwritten a large portfolio of US liability business which
has the potential for late developing or latent claims to emerge many years after the risk was underwritten. This
together with the limited extent of reinsurance purchased, increases the risk that the ultimate level of future
claims may vary significantly from the amount at which the technical provisions have been set. As explained
in the note, the outstanding claims provision selected is significantly in excess of the actuary’s best estimate to
reflect this uncertainty and is consistent with the syndicate’s long term approach to claims reserving. However,
should significant losses emerge, the reserves may still be insufficient to fully provide for such development.
Conversely, if the more recent benign patterns of claims development continue, the claims provision may
ultimately prove to be in excess of the ultimate claims cost.
Our opinion is not modified in this respect.
Other information
The other information comprises the information included in the Syndicate Annual Report and Accounts,
other than the Syndicate Annual Accounts and our auditor’s report thereon.
The managing agent is responsible for the other information contained within the Syndicate 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 our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information
is materially inconsistent with the Syndicate Annual Accounts or our knowledge obtained in the course of the
audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent
material misstatements, we are required to determine whether this gives rise to a material misstatement in the
Syndicate Annual Accounts themselves. If, based on the work we have performed, we conclude that there is a
material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Insurance Accounts Directive (Lloyd’s Syndicate and
Aggregate Accounts) Regulations 2008
In our opinion, based on the work undertaken in the course of the audit:
•
the information given in the managing agent’s report for the financial year for which the Syndicate
Annual Accounts are prepared is consistent with the Syndicate Annual Accounts; and
•
the managing agent’s report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In 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 in relation to which the Insurance Accounts
Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 requires us to report to you if, in our
opinion:
•
adequate accounting records have not been kept on behalf of the Syndicate; or
•
the Syndicate Annual Accounts are not in agreement with the accounting records and returns; or
•
certain disclosures of managing agent emoluments and other benefits specified by law are not made; or
•
we have not received all the information and explanations we require for our audit.
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INDEPENDENT AUDITOR’S REPORT
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31 DECEMBER 2025
Responsibilities of the managing agent
As explained more fully in the statement of managing agent’s responsibilities, the managing agent is responsible
for the preparation of the Syndicate Annual Accounts and for being satisfied that they give a true and fair
view and for such internal control as the managing agent determines is necessary to enable the preparation of
Syndicate Annual Accounts that are free from material misstatement, whether due to fraud or error.
In preparing the Syndicate Annual Accounts, the managing agent is responsible for assessing the Syndicate’s
ability to continue to write new business, disclosing, as applicable, matters related to its ability to continue to
operate and using the going concern basis of accounting, unless the managing agent 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures
in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities,
including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is
detailed below:
•
We obtained an understanding of the Syndicate and the insurance sector in which it operates to identify
laws and regulations that could reasonably be expected to have a direct effect on the Syndicate Annual
Accounts such as The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts)
Regulations 2008 and the Lloyd’s Syndicate Accounts Instructions. We obtained our understanding in
this regard through discussions with management, industry research and the application of our cumulative
audit knowledge and experience of the insurance sector.
•
We determined the principal laws and regulations relevant to the Syndicate in this regard to be those
arising from the Financial Conduct Authority (FCA), the Prudential Regulation Authority (PRA), Lloyd’s
of London and the Insurance Accounts Directive (Lloyd’s Syndicates and Aggregate Accounts) Regulations
2008, and the financial reporting framework (UK GAAP).
•
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 has the appropriate competence and capabilities to perform the audit.
•
We designed our audit procedures to ensure the audit team considered whether there were any indications
of non-compliance by the Syndicate with those laws and regulations. These procedures included, but were
not limited to:
•
agreement of the Syndicate Annual Accounts disclosures to underlying supporting documentation;
•
enquiries of management and review of minutes of Board, committee and management meetings
throughout the period;
•
understanding the Syndicate’s policies and procedures in monitoring compliance with laws and
regulations;
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INDEPENDENT AUDITOR’S REPORT
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31 DECEMBER 2025
•
inspection of correspondence with Lloyd’s of London, the PRA and FCA; and
•
reviewing compliance reports and internal audit reports relating to the Syndicate.
•
We also identified possible risks of material misstatement of the Syndicate Annual Accounts due to
fraud. We considered, in addition to the non-rebuttable presumption of a risk of fraud arising from
management override of controls, that there was potential for management bias in the reporting of events
and transactions in the syndicate annual accounts relating to the valuation of technical provisions and
the calculation of the reinsurers’ share of technical provisions. To address this, in conjunction with our
actuarial specialists, we challenged the assumptions and judgements made by management when auditing
those significant accounting estimates.
•
As in all of our audits, we addressed the risk of fraud arising from management override of controls by
performing audit procedures which included but were not limited to, the testing of journals, reviewing
accounting estimates for evidence of bias and evaluating the business rationale of any significant
transactions that were unusual or outside the normal course of business.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including
those leading to a material misstatement in the Syndicate Annual Accounts or non-compliance with laws and
regulations. This risk increases the more that compliance with a law or regulation is removed from the events
and transactions reflected in the Syndicate Annual Accounts, as we will be less likely to become aware of
instances of non-compliance. This risk is also greater regarding irregularities occurring due to fraud rather than
error, as fraud involves intentional concealment, forgery, conclusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the Syndicate Annual Accounts is located on the
Financial Reporting Council’s website at: 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 Part 2 of the Insurance
Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008. Our audit work has been
undertaken so that we might state to the Syndicate’s members those matters we are required to state to them in
an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone, other than the Syndicate and the Syndicate’s members as a body, for our audit work,
for this report, or for the opinions we have formed.
Thomas Seaman
(Senior Statutory Auditor)
For and on behalf of PKF Littlejohn LLP
Statutory Auditor
15 Westferry Circus
Canary Wharf
20 February 2026
London E14 4HD
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SYNDICATE 0727
PROFIT AND LOSS ACCOUNT
TECHNICAL ACCOUNT – GENERAL BUSINESS
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YEAR ENDED 31 DECEMBER 2025
2025
2024
NOTE
£’000
£’000
£’000
£’000
Earned Premiums, Net of Reinsurance
Gross premiums written
3
Outward reinsurance premiums
(1,611 )
(1,502 )
Net premiums written
Change in the provision for unearned
premiums
Gross amount
4
(244 )
Reinsurers’ share
4
(16 )
Change in the net provision for unearned
premiums
(260 )
Earned premiums, net of reinsurance
Allocated investment return transferred
from the Non-Technical Account
Other Technical Income,
net of reinsurance
Claims Incurred, Net of Reinsurance
Claims paid – Gross amount
(61,642 )
(55,322 )
– Reinsurers’ share
Net claims paid
(58,658 )
(54,786 )
Change in the provision for claims
Gross amount
4
(13,988 )
(14,019 )
Reinsurers’ share
4
(975 )
Change in the net provision for claims
(14,963 )
(12,974 )
Claims incurred, net of reinsurance
(73,621 )
(67,760 )
Net Operating Expenses
5
(37,248 )
(39,575 )
Balance on the Technical Account – for
General Business
There are no discontinued operations.
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2025
2024
NOTE
£’000
£’000
Balance on the General Business Technical Account
Investment income
8
Unrealised gains/(losses) on investments
8
Realised gains/(losses) on investments
8
(1,789 )
(3,751 )
Total investment return
Allocated investment return transferred to
general business technical account
8
(14,127 )
(14,850 )
Other charges, including value adjustments
Gain/(Loss) on foreign exchange
(1,318 )
(335 )
Profit/(loss) for the Financial Year
There is no Other Comprehensive Income for 2025 or 2024.
STATEMENT OF CHANGES
IN MEMBERS’ BALANCES
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YEAR ENDED 31 DECEMBER 2025
2025
2024
£’000
£’000
Balance due (from)/to Members at 1 January
Total recognised gains/(losses) for the year
Payments of profit to members personal reserve funds
Losses collected in relation to distribution on closure of
underwriting year
Cash calls on open underwriting years
Profit distributed to Members – 2022 (2021) Year of Account
(13,967)
(8,262)
Advances of fees to Members’ agents on behalf of Members
(405 )
(389 )
Net movement on funds in syndicate
Other
Balance due (from)/to Members at 31 December
PROFIT AND LOSS ACCOUNT
NON-TECHNICAL ACCOUNT
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YEAR ENDED 31 DECEMBER 2025
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2025
2024
NOTE
£’000
£’000
£’000
£’000
Investments
Financial investments
9
Deposits with ceding undertakings
Other
–
–
Reinsurers’ Share of Technical Provisions
Provision for unearned premiums
4
Claims outstanding
4
Debtors
Debtors arising out of direct insurance
operations
10
Debtors arising out of reinsurance
operations
11
Other debtors
12
Other Assets
Cash at bank and in hand
15
Other (including overseas deposits)
Prepayments and Accrued Income
Accrued interest and rent
Deferred acquisition costs
4
Other prepayments and accrued income
Total assets
BALANCE SHEET – ASSETS
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AT 31 DECEMBER 2025
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SYNDICATE 0727
2025
2024
NOTE
£’000
£’000
£’000
£’000
Capital and Reserves
Members’ balances
Total Capital and reserves
Technical Provisions
Provision for unearned premiums
4
Claims outstanding
4
Other technical provisions
Provision for other risks and charges
4
Creditors payable within one year
Creditors arising out of direct insurance
operations
14
Creditors arising out of reinsurance
operations
14
Deposits received from reinsurers
–
–
Other creditors including taxation and
social security
14
Accruals and deferred income
Total Liabilities
Total liabilities, capital and reserves
The Syndicate Annual Accounts were approved by the Board of Directors of S A Meacock & Company Limited
on 20 February 2026 and signed on its behalf by:
J M Meacock
K W Jarvis
Director
Director
BALANCE SHEET – LIABILITIES
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AT 31 DECEMBER 2025
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STATEMENT OF CASH FLOWS
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YEAR ENDED 31 DECEMBER 2025
2025
2024
NOTE
£’000
£’000
Cash Flow from Operating Activities:
Profit/(loss) for the financial year
Adjustments for:
(Decrease)/increase in gross technical provisions
(11,587 )
Decrease/(increase) in reinsurers’ share of technical provisions
(1,304 )
(Increase)/decrease in debtors
(597 )
(Decrease)/increase in creditors
(977 )
Movement in other assets/liabilities
(34 )
(1,666 )
Investment return
(14,127 )
(14,850 )
Other
(5,540 )
Net Cash Generated from Operating Activities
Cash Flows from Investing Activities:
Purchase of equity & debt instruments
(72,443 )
(111,121 )
Sale of equity & debt instruments
Investment income received
Other
Net Cash from Investing Activities
(10,410 )
Cash Flows from Financing Activities:
Distribution of 2022 (2021) Closed Year Profit
(13,967 )
(8,262 )
Advances of fees to Member’s Agent on behalf of Members
(405)
(390)
Other
Net Cash used in Financing Activities
(14,372 )
(8,652 )
Net increase/(decrease) in Cash and Cash Equivalents in year
Cash and cash equivalents at beginning of the year
Cash and cash equivalents at end of the year
Cash and cash equivalents comprise:
Cash at bank and in hand
7,821
6,664
Cash and cash equivalents
7,821
6,664
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SYNDICATE 0727
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
General Information
1.1
General Information and principal activities
Syndicate 0727 is a Lloyd’s Syndicate domiciled in England and Wales. It is managed by S A Meacock & Company Limited
a private company limited by shares that was incorporated in England and whose registered office is Hasilwood House, 60
Bishopsgate, London, EC2N 4AW.
The Syndicate underwrites a diverse book of general insurance and reinsurance business from around the world as part of the
Lloyd’s of London insurance market. This activity is carried out primarily from our box in the Lloyd’s Building in London
and our nearby office.
The Syndicate is supported by capacity from related and third-party members.
SIGNIFICANT ACCOUNTING POLICIES
1.2
Basis of Preparation and Compliance with Accounting Standards
These Syndicate Annual Accounts have been prepared in accordance with United Kingdom Accounting Standards, including
FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, FRS 103 “Insurance Contracts”
and the Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 and the Lloyd’s Syndicate
Accounts Instructions Version V3.1 as modified by the Frequently Asked Questions Version 1.1 issued by Lloyd’s.
The underwriting results are determined on an annual basis of accounting. Under the annual basis of accounting, the
incurred cost of claims, commission and related expenses are charged against the earned proportion of premiums, net of
reinsurance.
The Syndicate Annual Accounts have been prepared on the historical cost basis, except for financial assets at fair value
through the profit or loss which are measured at fair value.
The Syndicate Annual Accounts are presented in Pounds Sterling which is also the Syndicate’s functional currency.
All amounts have been rounded to the nearest thousand, unless otherwise stated.
1.3 Going Concern Basis
These Syndicate Annual Accounts are prepared on a going concern basis. There is no intention to cease underwriting or
operations.
Syndicates by their nature only underwrite for single underwriting years on behalf of their supporting Members; however,
this is within a context of not finalising results until after 36 months so that typically there are three underwriting years in
progress at any time. In addition syndicates will normally expect to continue to trade for more underwriting years into the
future and the syndicate is continuing to underwrite in 2026.
The Syndicate’s business activities, together with the factors likely to affect its future development are set out in the Review
of Business within the Strategic Report. In addition at Note 2 below information on Risk Management is provided detailing
the insurance and financial risks the Syndicate is exposed to and how those risks are managed.
The Syndicate has considerable financial resources together with long term relationships with a number of brokers and
policyholders across different classes of business and geographical areas. As a consequence, the Directors of the Managing
Agent believe that the Syndicate is well placed to manage its business risks successfully despite the current uncertain economic
outlook.
The Directors have a reasonable expectation that the Syndicate has adequate resources including the Funds at Lloyd’s of
the Members supporting the Syndicate (as explained in Note 17). There is no intention to cease underwriting or lease the
operations of the Syndicate. Thus they continue to adopt the going concern basis of accounting in preparing the Syndicate
Annual Accounts.
NOTES TO THE SYNDICATE ANNUAL ACCOUNTS
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NOTES TO THE ANNUAL FINANCIAL STATEMENTS
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1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
1.4 Premiums Written
Premiums written comprise premiums on contracts of insurance incepted during the year in respect of direct and inwards
reinsurance business. Premiums written include any adjustments made in the year to estimates of premiums written in prior
years and estimates are also made for pipeline premiums, including amounts due to the Syndicate not yet notified. Premiums
are shown gross of commission payable and exclude taxes and duties levied on them.
1.5 Unearned Premiums
The provision for unearned premiums comprises the proportion of gross premiums written which is estimated to be earned
in the following or subsequent financial periods, computed separately for each insurance contract using the daily pro rata
method, adjusted if necessary to reflect any variation in the incidence of risk during the period covered by the contract.
1.6 Reinsurance Premium Ceded
Outwards reinsurance premiums are accounted for on an earned basis in the same accounting period as the premiums for
the related direct or inwards business being reinsured.
1.7 Claims Incurred and Reinsurers’ Share
Gross claims incurred comprise claims and settlement expenses (both internal and external) occurring during the year and
the movement in provision for outstanding claims and settlement expenses brought forward. Allowance is made for the cost
of claims incurred by the balance sheet date but not reported until after the year-end. Incurred claims outstanding are reduced
by anticipated salvage and other recoveries from third parties. The provision for claims outstanding comprises amounts set
aside for claims notified and claims incurred but not yet reported (IBNR). The provision for claims also includes amounts in
respect of internal and external claims handling costs.
The reinsurers’ share of provisions for claims is based on calculated amounts of outstanding claims and projections for IBNR,
net of estimated irrecoverable amounts, having regard to the reinsurance programme in place for the class of business, the
claims experience for the year and the current security rating of the reinsurance companies involved.
Adjustments to the amounts of claims provisions established in prior years are reflected in the Syndicate Annual Accounts
for the period in which the adjustments are made.
The provisions are not discounted for the investment earnings that may be expected to arise in the future on the funds
retained to meet the future liabilities.
Reinsurance assets are assessed for impairment at the balance sheet date. A reinsurance asset is deemed impaired if there
is objective evidence, as a result of an event that occurred after its initial recognition, that the Syndicate may not recover
all amounts due, and that event has a reliably measurable impact on the amount that the Syndicate will receive from the
reinsurer. Any impairment will be charged to the profit or loss for the period in which it is recognised.
The methods used, and the estimates made in arriving at the amounts for technical provisions in respect of outstanding
claims, are more fully described in Note 2.2.
1.8 Unexpired Risks Provision
A provision for unexpired risks is made where claims, related expenses and deferred acquisition costs, likely to arise after the
end of the financial period in respect of contracts concluded before that date, are expected to exceed the unearned premiums
and premiums receivable under these contracts, after the deduction of any acquisition costs deferred. The unexpired risk
provision is included within technical provisions in the balance sheet.
The provision for unexpired risks is calculated separately by reference to classes of business which are managed together.
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NOTES TO THE ANNUAL FINANCIAL STATEMENTS
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1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
1.9 Net Operating Expenses (including Acquisition Costs)
Net operating expenses include acquisition costs and amounts charged to Members through the Syndicate. Profit commission
is charged by the Managing Agent as it is incurred but is not payable until the year of account closes, normally at 36 months.
Acquisition costs, comprising commission and other costs related to the acquisition of new insurance contracts are deferred
to the extent that they are attributable to premiums unearned at the balance sheet date, representing Deferred Acquisition
Costs (DAC).
Employee costs include the cost of all employee benefits to which employees have become entitled as a result of service
rendered to the entity during the reporting period, which the Managing Agent considers to be attributable to this Syndicate.
1.10 Balance due to Members and distribution of profits and collection of losses
The balance due to Members represents Syndicate profits or losses attributable to Members net of any early releases to
Members or cash calls received from Members.
Lloyd’s operates a detailed set of regulations regarding solvency and the distribution of profits and payment of losses between
Syndicates and their Members. Lloyd’s continues to require membership of Syndicates to be on an underwriting year of
account basis and profits and losses belong to Members according to their membership of a year of account. Normally profits
and losses are transferred between the Syndicate and Members after results for a year of account are finalised after 36 months.
This period may be extended if a year of account goes into run-off. The Syndicate may make earlier on account distributions
or cash calls according to the cash flow of a particular year of account and subject to Lloyd’s requirements.
1.11 Foreign currencies
The presentation currency of the Syndicate is Pounds Sterling.
The functional currency of the Syndicate is Pounds Sterling.
Income and expenditure in US dollars and Canadian Dollars are translated at the average rates of exchange for the period.
Underwriting transactions denominated in other foreign currencies are included at the rate of exchange ruling at the date
the transaction is processed.
Monetary assets and liabilities (which in accordance with FRS 103 are deemed to include unearned premiums and deferred
acquisition costs) are translated into the Sterling functional currency at the rates of exchange at the balance sheet date and the
resulting foreign exchange gains and losses are recognised in the Profit and Loss Account – Non-Technical Account.
Non-monetary assets and liabilities denominated in foreign currencies are translated to the functional currency at the
exchange rate at the date of the original transaction. Foreign exchange gains and losses resulting from the settlement of
transactions and from the translation at period-end exchange rate of any non-monetary assets and liabilities denominated
in foreign currencies are recognised in Other Comprehensive Income for those items which are required to be recognised
within Other Comprehensive Income and in the Non-Technical Account when the gain or loss is required to be recognised
in the Profit and Loss Account.
1.12 Financial assets and liabilities
(a)
Classification
The full provisions of FRS102 have been applied to the treatment of financial instruments. The accounting classification
of financial assets and liabilities determines their basis of measurement and how changes in those values are presented
in the profit or loss or other comprehensive income. These classifications are made at initial recognition and subsequent
reclassification is only permitted in restricted circumstances.
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NOTES TO THE ANNUAL FINANCIAL STATEMENTS
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31 DECEMBER 2025
1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Investments in shares and other variable yield securities and unit trusts and debt securities and other fixed income securities
are classified as fair value through profit and loss as they are managed on a fair value basis. Cash at bank, deposits with credit
institutions, debtors and accrued interest are classified as held at amortised cost.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered
into. An equity instrument is any contract that evidences a residual interest in the asset after deducting all of its liabilities.
(b)
Recognition
Financial assets and liabilities are recognised when the Syndicate becomes party to the contractual provisions of the
instrument. The regular way that purchases and sales of financial assets are recognised and derecognised, as applicable, is on
the trade date i.e. the date that the Syndicate commits itself to purchase or sell the asset.
(c)
Initial measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those
financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the
transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement
constitutes a financing transaction, the financial asset or liability is measured at the present value of the future payments
discounted at a market rate if interest for a similar debt instrument.
(d)
Subsequent measurement
Non-current debt instruments are subsequently measured at amortised cost using the effective interest method.
Debt instruments that are classified as payable or receivable within one financial year and which meet the above conditions
are measured at the undiscounted amount of the cash or other consideration expected to be paid or received.
Investments in shares and other debt instruments are measured at fair value through profit or loss. Movements in unrealised
gains and losses on investments represent the difference between their valuation at the balance sheet date and their purchase
price or, if they have been previously valued, their valuation at the last balance sheet date, together with the reversal of
unrealised gains and losses recognised in previous calendar years in respect of the investment disposed of in the current
period.
(e)
Derecognition of financial assets and liabilities
Financial assets are derecognised when and only when a) the contractual rights to the cash flow from the financial asset expire
or are settled, b) the Syndicate transfers to another party substantially all of the risks and rewards of ownership of the financial
asset, or c) the Syndicate, despite having retained some significant risks and rewards of ownership, has transferred control
of the asset to another party and the other party has the practical ability to sell the asset in its entirety to an unrelated third
party and is able to exercise that ability unilaterally and without needing to impose additional restrictions on the transfer.
Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.
(f)
Fair value measurement
The best evidence of fair value is a quoted price for an identical asset or liability in an active market that the entity can access
at the measurement date. When quoted prices are unavailable, observable inputs developed using market data, other than
quoted prices, for the asset or liability, either directly or indirectly, are used to determine the fair value. If the market for
the asset is not active and there are no observable inputs, then the Syndicate estimates the fair value by using unobservable
inputs, where market data is unavailable.
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STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(g)
Impairment of financial instruments measured at amortised cost or cost
For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying
amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate,
i.e. using the effective interest method.
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount
and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring
after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed
on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying
amount higher than the carrying value had no impairment been recognised. The amount of the reversal is recognised in
profit and loss immediately.
(h)
Offsetting
Debtors/creditors arising from insurance/reinsurance operations shown in the balance sheet include the totals of all
outstanding debit and credit transactions as processed by the Lloyd’s central facility. No account has been taken of any offsets
which may be applicable in calculating the net amounts due between the Syndicate and each of its counterparty insureds,
reinsurers or intermediaries as appropriate.
1.13 Investment Return
The gross investment return comprises investment income, realised investment gains and losses and movements in unrealised
gains and losses, net of investment expenses and charges. Investment return arising in each calendar year is allocated to years
of account in proportion to the average funds available for investment attributable to those years. Investment returns in
respect of overseas deposits are allocated to the year of account which funded these deposits.
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.
Dividend income is recognised when the right to receive income is established and interest income is recognised as it accrues
on the next coupon payment. For assets measured at fair value, realised gains and losses are the difference between the
purchase price and the net sale proceeds and unrealised gains and losses are the difference between the latest valuation and
purchase price. Movements in unrealised gains and losses in the period represent the change in value of investments still
held from their previous period end value or purchase price if acquired in the period and the reversal of any gains or losses
in previous periods in relation to investments sold in the current period. For any investments at amortised cost realised gains
are the difference between the carrying value at the previous year end or purchase price if acquired in the period and the sale
proceeds or carrying value at the end of the current period.
1.14 Cash and Cash Equivalents
Cash and cash equivalents comprise cash balances and call deposits with maturities of three months or less from the
acquisition date and are carried at amortised cost.
1.15 Taxation
Under Schedule 19 of the Finance Act 1993 Managing Agents are not required to deduct basic rate income tax from trading
income. In addition, all UK basic rate income tax deducted from Syndicate investment income is recoverable by Managing
Agents and consequently the distribution made to Members or their Members’ agents is gross of tax. Capital appreciation
falls within trading income and is also distributed gross of tax.
No provision has been made for any United States 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.
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
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1.
STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
1.16 Pension Costs
S A Meacock & Company Limited operates a defined contribution scheme. Pension contributions relating to Syndicate staff
are charged to the Syndicate as incurred and included within net operating expenses.
1.17 Key Accounting Judgements and Estimation Uncertainties
Of the various accounting judgements, assumptions and estimates made in the preparation of these Syndicate Annual
Accounts those relating to the determination of the technical provisions, premium income and investment valuations are
considered to be those most critical to understanding the Syndicate’s results and financial position.
Technical provisions:
The net technical provisions shown in Note 4 after the reinsurers’ share is £364.6m (2024: £374.4m).
The most uncertain element within these technical provisions is the amount for the incurred but not reported (IBNR)
element of claims outstanding which covers amounts where either the claim has not yet been notified to the Syndicate
or where there has been a notification but there is insufficient information to date to be certain regarding its ultimate
cost. This excluding unallocated loss adjustment expenses amounted to £351.8m (2024: £362.0m). As described in the
risk management note there is a thorough review process of claims notifications and reserving estimates, including detailed
actuarial evaluation of past claims development. There is however a risk that past performance may not be a good indicator
of the future developments. This is mitigated by a mixed spread of different types of business from a number of geographical
areas across several years that should reduce the risk of a common trend of adverse development occurring. The uncertainty
within technical provisions may be mitigated by the element that is reinsurers’ share, although there are also uncertainties
in calculating that.
Premium income:
The estimation of written premium includes amounts for additional or return premiums and business
that may have been underwritten through binding authorities but not yet notified. The earning of this written premium has
then been calculated on a basis of time apportionment and seeking to take account of when underlying binding authority
risks incepted. The Directors consider that this represents a reasonable approximation of the overall earning risk profile of
the policies written. As described in the risk management note there is detailed evaluation of premium written estimates at
the time of writing risks [and these are monitored and checked through the life of the risks]. This risk is mitigated by a large
number of policies which usually make up any account. This lessens the impact of variances in individual estimates. The
allowance for future premium from insurance and reinsurance business amounted to £32m (2024: £30m).
Investment valuations:
Most investments are shown at their market value as described in the accounting policy at Note 1.12
and details of the risks relating to investments are disclosed at Notes 2.3 to 2.5. As the majority of investments are highly
rated securities and regularly traded on major stock exchanges the risks in their valuations are reduced for most of them. As
shown in Note 9 investments amount to £322m (2024: £339m). The Directors consider that the risk of errors in investment
valuations is reduced by the nature of the underlying investments, their short date to maturity and the close monitoring by
the Syndicate’s investment committee, together with these amounts being spread across a number of investments.
2.
RISK MANAGEMENT
2.1
Risk Background
The Syndicate’s activities expose it to a variety of financial and non-financial risks. The Managing Agent is responsible for
managing the Syndicate’s exposure to these risks and, where possible, introducing controls and procedures that mitigate
the effects of the exposure to risk. Each year, the Managing Agent is required to estimate a Solvency Capital Requirement
(SCR) for the Syndicate, its purpose being to agree capital requirements with Lloyd’s, based on an agreed assessment of the
risks affecting the Syndicate’s business and the measures in place to manage and mitigate those risks from a quantitative and
qualitative perspective. The risks described below are all reflected in the SCR; 95% of the total assessed value of the risks
concerned is attributable to Insurance Risk.
The Board of the Managing Agent sets the risk appetites annually as part of the Syndicate’s business planning and capital-
setting process. A Risk Committee meets regularly to monitor performance against risk appetite using a series of key risk
indicators. The Risk Committee is chaired by the non-executive Chairman of the Board and includes the Chief Executive
Officer, the Chief Risk Officer, risk staff and all risk owners. It is responsible for the maintenance of a comprehensive risk
register, risk ranking, risk control measures and the production of an annual Own Risk and Solvency Assessment (ORSA).
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2.
RISK MANAGEMENT (CONTINUED)
The Syndicate operates a “three lines of defence” model of risk management. The first line of defence is the operational
departments of the Syndicate, with identified risk owners, overseen by the Executive Committee. The second line is the
risk-management and compliance functions including the oversight of the Risk Committee. The third line of defence is the
internal audit function.
The Syndicate recognises the following types of risk:
•
Insurance risk
•
Market risk
•
Credit risk
•
Liquidity risk
•
Operational risk
•
Group risk
The Syndicate is not part of a larger group; consequently it considers that it is not exposed to group risk. The other types of
risk are discussed below.
The Syndicate’s core business is to accept significant insurance risk: the appetite for other risks is low.
2.2
Insurance Risk
The nature of the Syndicate’s business exposes it to the possibility that claims will arise on business written at a level that is
greater than expected. The risk attaching to insurance contracts is based on the fortuity that events will occur which will lead
to a claim under the contract. The main insurance risks which affect the Syndicate are:
•
Catastrophic events: the risk that catastrophic events occur which will lead to claims at a total level greater than expected
by the Syndicate.
•
Rating levels: the risk that the expected attritional losses and anticipated catastrophic events, together with the cost of
reinsurance, will result in net claims which exceed the premium income of the Syndicate.
•
Business volume: the risk that the Syndicate will not be able to write as much business as planned.
•
Reserving: the risk that the reserves established by the Syndicate at the previous year-end prove to be inadequate.
(a)
Catastrophic Events
The Syndicate writes property insurance, including excess of loss cover as a reinsurer, that exposes it to multiple claims in the
event of a catastrophe. Catastrophe losses are therefore a normal part of the Syndicate’s claims experience, but it is subject to
the risk that particular catastrophes will occur that cause claims that are well in excess of the expected level. The nature of the
Syndicate’s business is that this will indeed occur from time to time while in most years the level of claims due to catastrophes
is lower than expected.
The Managing Agent has developed underwriting guidelines which express limits to the authority of the underwriters and
to exposure analysed geographically and by assured entities. The Syndicate has also developed Realistic Disaster Scenarios
(“RDS”s) which provide an estimate of the effect on the Syndicate results of an aggregation of claims arising from a number of
disasters specified by Lloyd’s. The Syndicate uses a number of modelling tools to monitor the aggregation of exposure and to
simulate catastrophe losses, in order to measure the effectiveness of the underwriting guidelines in limiting exposure to these
scenarios and the effectiveness of the Syndicate’s reinsurance programmes and to calculate the appropriate levels of capital
required to cover the more-extreme catastrophe events.
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2.
RISK MANAGEMENT (CONTINUED)
(b)
Business Volumes and Rating Levels
The Managing Agent produces an annual business plan for the Syndicate. The plan is produced by anticipating rating levels
and terms and conditions attaching to risks expected to be underwritten by the Syndicate. In the context of the market in
which the Syndicate operates, it might be possible to underwrite the required volume of business if rating levels and terms
were to be compromised, although the underlying profitability would worsen.
Performance against the plan is monitored regularly through a system of underwriting committees, as well as regular review by
the Board. If market conditions change significantly after the plan is produced, a revised plan will be prepared and authorised
by the Board. In this way, rating levels of both business written and reinsurance purchased are subject to constant review.
Should risks be assessed as uneconomical, they will be declined.
If the volume of business underwritten is less than that planned by the Managing Agent, the expense ratio is likely to increase,
although this risk is mitigated by the operating structure of the Syndicate, in which the material element of the acquisition
costs which flows through brokers is accordingly variable. Achieved business volumes may be linked to rating levels, for
instance because of easier or tougher market conditions, in which case the effects of changes in both rating levels and business
volumes will accumulate.
The effect of rating levels being lower than planned is, all other things being equal, to reduce income levels in respect of the
risks underwritten, and hence increase both the claims ratio and the expense ratio. If profitability were maintained but only
volume reduced the impact upon results would be fairly modest but if price rating reductions cause the volume of business
to reduce there is likely to be a more significant impact upon the results.
However, the most likely cause of business being less profitable than expected is that claims other than catastrophe claims
arise at a higher level than expected in the rating basis. Since this risk emerges only after business has been written and its
cause may be changes in the underlying risk it is difficult to mitigate before the next year’s renewals and the appropriate risk-
management approach is to hold sufficient capital to offset any expected level of deviation.
2025
2024
£’000
£’000
Net premiums earned
107,903
115,554
Technical Account result (excluding investment return)
(4,837)
8,218
1% reduction in volume pro-rate Technical result (exc. Investment return)
48
(82)
1% rating price reduction in profit per £1 of earned premium
(1,079)
(1,156)
(c)
Reserving risk
CURRENT RESERVES
2025
2024
£’000
£’000
Gross Claims Provision
324,638
333,261
Net Claims Provision
316,008
322,911
Net Unearned Premium Provision
48,570
51,513
10% movement in Net Claims Provision
31,601
32,291
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2.
RISK MANAGEMENT (CONTINUED)
The above assumes that the Syndicate’s reinsurers share pro-rata in any deterioration in outstanding claims, which may not
be the case, as excess of loss reinsurance will mitigate deteriorations in large losses more significantly than for attritional
losses. The effect of any such distortion should be minor because the Syndicate does not effect significant amounts of
outwards reinsurance. Unearned premiums should not be affected by such movements in outstanding claims; however, larger
movements in loss ratios could trigger a need for an Unexpired Risk Provision if future expected claims and expenses rose
above the level of the unearned premiums.
To mitigate reserving risk, the Syndicate underwriters use a number of approaches, including actuarial techniques, to project
gross and net premiums written and gross and net insurance liabilities. The results of these techniques are then subject
to formal peer review to independently check the integrity of the estimates so produced. In addition, the Chief Actuary
performs his own assessment of the Syndicate’s ultimate gross and net premiums and insurance liabilities; this is used
for reporting under Solvency UK. The results of the actuary’s projections are then compared to the underwriting team’s
assessment before the levels of reserve to be held are determined.
The provision for claims yet to be paid comprises separately amounts set aside for claims reported and for claims incurred but
not yet reported (IBNR). The amount included in respect of IBNR is based on statistical techniques of estimation applied by
the Syndicate’s reserving function. These techniques generally involve projecting from the experience of the development of
claims over time to form a view of the likely ultimate claims to be experienced for more recent underwriting, having regard
to variations in the business accepted and the underlying terms and conditions. The level of uncertainty with regard to the
estimations within these provisions generally decreases with time after the underlying contracts were exposed to risk. By the
nature of short-tail claims such as property, where claims are typically notified and settled within a short period of time, there
will normally be materially less uncertainty after a few years than with long-tail risks such as some liability business where
it is usually at least several years more before claims are fully advised and settled. In addition to these factors if there are
disputes regarding coverage under policies or changes in the relevant law regarding a claim this may increase the uncertainty
in the estimation of the outcomes. These amounts are uncertain, being subject to uncertainty over the facts of reported
claims, the number of claims still to be reported and still to occur on business that has been written, the level of inflation
until the time of settlement, the outcome of disputes, including court cases, on individual claims and any changes in the law
regarding the settlement of particular claims. As time goes by a greater proportion of claims are settled, which reduces the
level of uncertainty, although those remaining unsettled after a number of years are generally the most intractable, so the
proportionate level of uncertainty increases.
The Syndicate’s held technical provisions are set according to the Syndicate’s reserving policy, which specifies that they should
be set on a conservative basis, which means that they are higher than the technical provisions for Solvency UK, which are
based on projections of ultimate claims using actuarial methods designed to produce an estimate of the statistically expected
best-estimate value of ultimate claims. This best-estimate basis is explained in more detail later in this note.
This margin above the net earned best estimate of technical provisions amounted to £149.3 million as at 31 December 2025,
and represents 41.0% of the net technical reserves (including unearned premiums) for these years of account at this year-end
(2024: £134.3m representing 35.9%). Of this margin 84.6% relates to 2023 Account and prior years (2024: 85.3% for 2022
and prior years). The extent of the margin is also influenced by the information available at a given time and the extent to
which the actuary considers it appropriate to recognise such information within his best estimate reserves. If the Syndicate’s
technical provisions do require strengthening in future then it is unlikely that this will be relieved by reinsurance recoveries
to any significant extent.
Any evaluation of the change in the margin between an actuarial best estimate and the held numbers is much more useful
if done using a constant £/US$ exchange rate. Using rates ruling on 31 December 2025, the margin has increased by £7.1
million on 2023 and prior accounts and decreased by £0.6 million on 2024 account. The strengthening of the held reserves
on the 2023 and prior years of account is largely due to the addition of the reserve for the 2023 pure year. On older years, the
concerns regarding litigation funding persist. Similarly, our view of latent exposures from third-party liability business and
losses arising from sports-related brain injury remain consistent with previous years.
The held technical provisions are shown in these Syndicate Annual Accounts and are designed to be consistent with
accounting regulations; the Signing Actuary provides statements of actuarial opinion on the sufficiency of these provisions.
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2.
RISK MANAGEMENT (CONTINUED)
The largest element of this margin above best estimate is to address the risk of the emergence of latent claims situations which
remain totally outside our knowledge, especially from general third-party liability coverages (which exist within more than
one of Lloyd’s main classes of business). These are claims that arise from causes giving rise to damage which is not identified
until some years after the event that caused it. When the damage and the causes are identified they can lead to claims
for substantial amounts on many years of account that had appeared to be fully run off. In the most important historical
examples, asbestos and pollution, it can be seen that changing scientific knowledge and legal frameworks can completely
transform expected claims outcomes on any book of business. There have been few such categories of significant claims in
the last 20 years but exposures remain. Potential sources for such future emergence of latent claims include failings in care
and abuse of individuals, large-scale financial manipulation, various chemicals and products in everyday use and risks arising
from the increasingly cyber-dependent world.
During 2016 a general model for evaluating latent exposures from occurrence-form liability business was developed by the
Syndicate, using post World War II history as a guide, and this model has been used regularly since then. The calculation
takes into account various factors including the comparative scale of the previous losses, the Syndicate’s relevant exposure
expressed in terms of total policy limits issued post 1992, exposure periods and the expected future frequency of such losses
in order to estimate the impact of future losses similar in scale and nature. The most critical assumption is the probability
that such a scale of latent loss will recur and affect these exposed years. The Syndicate continues to analyse and refine this
calculation and calibrate it in line with all available information, and to refine its evaluation of its exposure to latent losses
emerging, particularly from its long tail US business. The next most critical factor is the estimated premium rate (the ratio
between the premium and the policy limits). Application at December 2025 of re-assessed exposures has resulted in a largely
unchanged ultimate latent loss reserve when expressed in US$ terms.
The modelled output reserve amount for earned latent liability exposures as at 31 December 2025 has been calculated as
£77.8m, which represents 48% of the overall margin (2024: £84.0m and 56% of the overall margin). The whole of this
reserve falls within the margin as reserves for ”the emergence of new claims types” and is not included in best-estimate
calculations, in line with Lloyd’s Valuation of Liabilities Rules.
There is a fundamental and inherent uncertainty in reserving for latent losses which may or may not develop in future years.
Accordingly, the current reserve established by the Syndicate to cater for these losses may prove to be insufficient, or excessive,
depending upon the future development of latent losses.
Another set of liabilities, which first came to the attention of the Syndicate in 2016, relates to today’s better understanding of
the brain damage arising from certain sporting activity. Many plaintiffs are claiming to have suffered real harm resulting from
their participation in certain sports have come forward and many thousands of suits have been filed by players of these sports
especially in the United States. The events being complained of allegedly took place in the 1970s and in almost every year
since. Many millions of dollars have been spent by insureds and insurers in defending these suits. The costs to the syndicate
have already proven to be material. To date the syndicate has paid for defence costs of approximately US$4.2million and has
reserved for ultimate costs and losses of US$34.2million. This reserve is in addition to reserves based on the modelled output
for latent losses described in preceding paragraphs.
Thus, the overall level of reserve has a significant margin to absorb a reasonable amount of such losses and to allow for the
possibility of claims developments on policies decades after those policies have expired, which has always been a part of the
reserving philosophy for Syndicate 0727. For any syndicate which has been operating for several decades latent exposures
from past years have the potential to have a significant effect on the syndicate’s fortunes should losses materialise, and a
cautious reserve is therefore a vital part of any long-term survival plan.
The Syndicate also assesses its liabilities on a best-estimate basis, the results of which are not intended to be conservative,
and which are designed to be used in certain returns to Lloyd’s. These estimates are designed to comply with the technical-
provisions requirements of Solvency UK, which also require other elements to be added to the technical provisions. The
estimated unpaid claims on the best-estimate basis are lower than those used by the Syndicate for accounting purposes; these
differences tend to be greatest in long-tailed lines of business, such as liability, and smallest in the short-tail property-related
lines, although property coverage also includes incidental liability cover for personal and small-business accounts, and an
appropriate proportion of the latent-claim reserve remains in the property classes. The best-estimate provisions are set using
a variety of standard and adapted actuarial methods. Both sets of estimates are considered by the Board, which adopts them
for their particular uses.
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2.
RISK MANAGEMENT (CONTINUED)
For Solvency UK reporting purposes the technical provisions are separately submitted to Lloyd’s on an underwriting-year
basis rather than an earnings basis, and start with a best-estimate amount. This is then adjusted to include allowance for
certain extra expenses and a provision for losses arising from events not in the data and then discounted for the time value
of money. These technical provisions also are required to include a risk margin calculated in accordance with Solvency UK
principles to reflect the uncertainty inherent in the run-off of claims. To a certain extent this risk margin performs the same
function as the margin in the held reserves in that it is available to fund a deterioration in reserves. In accordance with Lloyd’s
valuation of liability rules these reserves include an allowance for claims arising for events not in the data, but do not allow
for the possibility of the emergence of new claims types.
The assessment of these provisions is usually the most subjective aspect of an insurer’s accounts and may result in greater
uncertainty within an insurer’s accounts than within those of many other businesses. The Directors consider that the
provisions for gross claims and related reinsurance recoveries are fairly stated on the basis of the information currently
available to them. However, ultimate liability will vary as a result of subsequent information and events and this may result
in significant adjustments to the amounts provided.
Adjustments to the amounts of claims provisions established in prior years are reflected in the Syndicate Annual Accounts
for the period in which the adjustments are made. The provisions are not discounted for the investment earnings that may
be expected to arise in the future on the funds retained to meet the future liabilities. The methods used, and the estimates
made, are reviewed regularly.
The liabilities established could be significantly lower or higher than the ultimate cost of settling the claims arising. This
level of uncertainty varies between the classes of business and the nature of the risk being underwritten and can arise from
developments in case reserving for large losses and catastrophes, or from changes in estimates of claim IBNR.
The following table presents the profit and loss impact of the sensitivity of the value of insurance liabilities disclosed in
the accounts to potential movements in the assumptions applied within the technical provisions. Given the nature of the
business underwritten by the Syndicate, the approach to calculating the technical provisions for each class can very and as a
result the sensitivity performed is to apply a beneficial and adverse risk margin to the total insurance liability. The amount
disclosed in the table represents the profit or loss impact of an increase or decrease in the insurance liability as a result of
applying the sensitivity. The amount disclosed for the impact on claims outstanding – net of reinsurance represents the
impact on both the profit and loss for the year and member balance.
GENERAL INSURANCE BUSINESS SENSITIVITIES AS AT 31 DECEMBER 2025
+5.0%
-5.0%
£’000
£’000
Claims outstanding – gross of reinsurance
(18,665 )
Claims outstanding – net of reinsurance
(18,229 )
GENERAL INSURANCE BUSINESS SENSITIVITIES AS AT 31 DECEMBER 2024
+5.0%
-5.0%
£’000
£’000
Claims outstanding – gross of reinsurance
(19,244 )
Claims outstanding – net of reinsurance
(18,721 )
Capital framework at Lloyd’s
The Society of Lloyd’s (Lloyd’s) is a regulated undertaking and subject to the supervision of the Prudential Regulation
Authority (PRA) under the Financial Services and Markets Act 2000 and in accordance with Solvency UK legislation from
Within this supervisory framework, Lloyd’s applies capital requirements at Member level and centrally to ensure that Lloyd’s
complies with Solvency UK, and beyond that to meet its own financial strength, licence and ratings objectives.
Although, as described below, Lloyd’s capital setting processes use a capital requirement set at Syndicate level as a starting
point, the requirement to meet Solvency UK and Lloyd’s capital requirements apply at overall and Member level only
respectively, not at Syndicate level. Accordingly the capital requirement in respect of Syndicate 0727 is not disclosed in these
Syndicate Annual Accounts.
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2.
RISK MANAGEMENT (CONTINUED)
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
UK requirements. The SCRs of each Syndicate are subject to review by Lloyd’s and approval by the Lloyd’s Capital and
Planning Group.
A Syndicate may comprise 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 requirement of Lloyd’s, not Solvency UK, is to meet Lloyd’s financial strength, licence and ratings objectives. The
capital uplift applied for 2025 was 35% of the Member’s SCR ‘to ultimate’.
In addition, Lloyd’s may impose further capital requirements above this level to allow for perceived limitations in a Syndicate’s
capital-setting process or to maintain capital cover for extreme catastrophe events. Syndicate 0727’s capital requirement for
year of account 2025 was similar to the prior year.
2.3
Market Risk
Market risk arises where the value of assets and liabilities change as a result of movements in foreign exchange rates, known
as currency risk, interest rates, inflation rates and market prices (spread risk). Detailed guidelines for the in-house investment
managers are in place and the Board and its Investment Committee regularly monitor investment performance and the
associated risks. Financial investments represent a significant proportion of the Syndicate’s assets.
(a)
Currency Risk
Currency risk is the risk that the Syndicate makes losses in sterling because the value of assets or liabilities denominated in
foreign currency falls or rises as exchange rates change. The principal mitigant for currency risk is matching: holding assets
by currency in the same proportions as the liabilities, so that a reduction in the sterling value of non-sterling assets is offset
by a similar reduction in the sterling value of non-sterling liabilities and similarly that an increase in the value of liabilities is
offset by an increase in the value of assets.
The Syndicate’s main exposure to foreign currency risk arises from insurance business originating overseas, particularly in US
Dollars. The Syndicate is exposed to changes in the value of assets and liabilities due to movements in foreign exchange rates.
The Syndicate deals in three main currencies: UK Sterling, Canadian Dollars and US Dollars. Transactions also take place in
other currencies, although these are immediately converted to UK Sterling.
A 10% fall in the value of all non-sterling currencies from their value as at 31 December 2025 would lead to a £3.254m loss
(2024: £4.118m) with US Dollar net assets being the largest element of that at £1.541m (2024: US Dollar 2.637m). The
Syndicate monitors these currency balances and aims to ensure excessive balances beyond accumulated profits do not accrue
beyond those necessary to meet overseas trust fund requirements. The Syndicate has not taken out any transactions to hedge
these balances; the holding of assets in similar proportions to liabilities provides an important element of hedging.
Because of the US Dollar Trust Fund requirements, a large proportion of the overall net assets are held in US Dollars,
and there is a deficit in Sterling due to expenses. The total net assets held by the Syndicate in US Dollars represented 89%
compared with 90% at the end of 2024. The setting of the Syndicate Capital Requirement has shown that the Syndicate’s
capital is held mainly against the risk of unexpectedly high claims occurring in US dollars. The holding of net assets
predominantly in US dollars is therefore a good match for the capital requirement and the mismatching of assets to liabilities
by currency is more apparent than real.
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SYNDICATE 0727
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
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31 DECEMBER 2025
2.
RISK MANAGEMENT (CONTINUED)
Recent key exchange rates to Pounds Sterling have been:
2025
Start of
period
Rate
2025
End of
period
Rate
2025
Average
Rate
2024
Start of
period
Rate
2024
End of
period
Rate
2024
Average
Rate
US Dollar
1.25
1.35
1.32
1.24
1.25
1.28
Canadian Dollar
1.80
1.84
1.84
1.68
1.80
1.75
Australian Dollar
2.02
2.02
2.04
1.87
2.02
1.94
Euro
1.21
1.15
1.17
1.15
1.21
1.18
Japanese Yen
196.90
210.82
197.23
179.15
196.90
193.53
£
US$
Can $
Aus $
Euro
Japan
Yen
Other
Total
£’000
£’000
£’000
£’000
£’000
£’000
£’000
£’000
As at 31-12-25
Financial investments
Reinsurers’ share of technical provisions
Debtors
Other assets
Prepayments and accrued income
Total assets
Technical provisions
(29,228 ) (329,337 )
(14,729 )
Provision for other risks and charges
(426 )
(426 )
Other creditors
(4,162 )
(3,802 )
(647 )
(8,611 )
Accruals and deferred income
(24 )
(24 )
Total liabilities
(33,414 )
(333,565 )
(15,376 )
(382,355 )
Total capital and reserves
(15,410 )
(15,844 )
(925 )
(363 )
(11,660 )
£
US$
Can $
Aus $
Euro
Japan
Yen
Other
Total
£’000
£’000
£’000
£’000
£’000
£’000
£’000
£’000
As at 31-12-24
Financial investments
Reinsurers’ share of technical provisions
Debtors
Other assets
Prepayments and accrued income
Total assets
Technical provisions
(30,336 ) (339,590 )
(14,955 )
Provision for other risks and charges
(460 )
(460 )
Other creditors
(4,980 )
(3,847 )
(754 )
(9,581 )
Accruals and deferred income
(31 )
(31 )
Total liabilities
(35,347 )
(343,897 )
(15,709 )
(394,953 )
Total capital and reserves
(26,371 )
(13,197 )
(1,261 )
(352 )
(18,060 )
All other currencies are converted to Sterling and no significant balance is held.
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SYNDICATE 0727
2.
RISK MANAGEMENT (CONTINUED)
Sensitivity analysis to market risks
The analysis below is performed for reasonably possible movements in market indices on financial instruments with all
other variables held constant, showing the impact on the result before tax due to changes in fair value of financial assets and
liabilities (whose fair values are recorded in the profit and loss account) and members balances
2025 IMPACT
ON RESULTS
BEFORE TAX
2025 IMPACT
ON MEMBERS
BALANCES
2024 IMPACT
ON RESULTS
BEFORE TAX
2024 IMPACT
ON MEMBERS
BALANCES
£’000
£’000
£’000
£’000
Interest rate risk
+50 basis points shift in yield curve
(1,536 )
(1,536 )
(1,326 )
(1,326 )
-50 basis points shift in yield curve
Equity price risk
5 percent increase in equity prices
5 percent decrease in equity prices
The sensitivity analysis demonstrates the effect of a change in a key variable while other assumptions remain unchanged.
However, the occurrence of a change in a single market factor may lead to changes in other market factors as a result of
correlations.
The sensitivity analyses do not take into consideration that the Syndicate’s financial investments are actively managed.
Additionally, the sensitivity analysis is based on the Syndicate’ financial position at the reporting date and may vary at the
time that any actual market movement occurs. As investment markets move past pre-determined trigger points, action would
be taken which would alter the Syndicate’s position.
(b)
Interest Rate Risk
Interest-rate risk is the risk of loss due to changes in asset values arising from changes in rates of interest. The Syndicate’s main
exposure to fluctuation in interest rates arises from its effect on the value of funds invested in bonds. In order to mitigate
this risk, the Board monitors the economic situation to seek to anticipate any future interest-rate movements and to take
appropriate action to mitigate its effect on the value of investments held. However, the main mitigant to this risk is that the
Syndicate’s investments are predominantly held in bonds with outstanding terms of two years or less: the sensitivity of the
value of bonds of such short duration to changes in interest rates is very low.
Fixed-income securities are a large element of the Syndicate’s investments. The fair value of the investment in fixed income
securities is inversely correlated to the movement in market interest rates. If market rates fall, the fair value of the Syndicate’s
fixed-interest investments would tend to rise and vice versa. Fixed-income assets are predominantly high-quality corporate,
government and supranational securities. The investments typically have relatively short durations and terms to maturity.
The fair value of the Syndicate’s fixed income assets as at 31 December 2025 was £322m (2024: £339m). If interest rates
increase bond values will fall, although future yields on these values will be higher and interest earnings on balances with
banks and credit institutions should increase. The following analysis shows only the sensitivity of bond values to movements
in interest rates.
2025
2024
£’000
£’000
Impact of a 50 basis point increase in interest rates on result & net assets
(1,536)
(1,326)
Impact of a 50 basis point decrease in interest rates on result & net assets
1,555
1,326
(c)
Inflation risk
This is the risk that changes in the rate of inflation may adversely affect the value of investments. The possible effect of higher
inflation on claims values is allowed for under insurance risk.
(d)
Spread risk
This is the risk that the interest-rate spread between bonds of various credit ratings may increase and therefore drive down the
value of investments even in the absence of a general reduction in interest rates. This risk is mitigated in a similar manner to
interest-rate risk: since all assets are held in short-term securities the effect of any increase in spread is minimised.
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
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31 DECEMBER 2025
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SYNDICATE 0727
2.
RISK MANAGEMENT (CONTINUED)
2.4
Credit Risk
Credit risk arises where counterparties fail to meet their financial obligations in full as they fall due. The primary sources of
credit risk for the Syndicate are:
•
Reinsurers: reinsurers may fail to pay valid claims against a reinsurance contract held by the Syndicate.
•
Brokers and Intermediaries: counterparties fail to pass on premiums collected or claims paid on behalf of the Syndicate.
•
Investments: issuer default or credit downgrading results in the Syndicate losing all or part of the value of a financial
instrument.
The Syndicate effects very little outwards reinsurance and does not rely on it significantly to mitigate insurance risk: it is the
Syndicate’s policy to write a book of business that can be fully retained. Therefore the Syndicate’s exposure to reinsurance
credit risk is low.
The following ratings are based upon Standard & Poors classifications or other rating agencies classifications equivalents with
AAA being the highest.
AAA
AA
A
BBB
Other
Unrated
Total
£’000
£’000
£’000
£’000
£’000
£’000
£’000
As at 31-12-2025
Debt securities
Participation in investment pools
Shares and other variable yield securities
and unit trusts
Loans and deposits with credit institutions
Reinsurer’s share of claims outstanding
Derivative assets
Other investments
Debtors arising out of direct insurance
operations
Debtors arising out of direct reinsurance
operations
Cash at bank and in hand
Overseas deposits
1,817
2,057
1,019
316
–
409
5,618
Other debtors and accrued interest
Total
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
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31 DECEMBER 2025
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SYNDICATE 0727
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
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31 DECEMBER 2025
2.
RISK MANAGEMENT (CONTINUED)
AAA
AA
A
BBB
Other
Unrated
Total
£’000
£’000
£’000
£’000
£’000
£’000
£’000
As at 31-12-2024
Debt securities
Participation in investment pools
Shares and other variable yield securities
and unit trusts
Loans and deposits with credit institutions
Reinsurer’s share of claims outstanding
Derivative assets
Other investments
Debtors arising out of direct insurance
operations
Debtors arising out of direct reinsurance
operations
Cash at bank and in hand
Overseas deposits
4,044
1,137
1,021
788
–
444
7,434
Other debtors and accrued interest
Total
Insurance receivables are not shown above but would be categorised as ‘not rated’ as a majority of the balance relates to
insurance broker debt which falls outside credit rating requirements.
No Syndicate assets are classified as past due except for insurance debtors of £NIL (2024: £NIL), and reinsurance debtors of
£NIL (2024: £NIL).
Assets are classified as past due when the contractual payment is in arrears. An assessment is performed on all assets, which
may result in an impairment charge being recorded in the profit and loss account if the Managing Agent considers this to
be appropriate.
An analysis of the carrying amounts past due or impaired debtors is presented in the table below:
2025
Neither past
due nor
impaired
assets
Past due but
not impaired
assets
Gross value
of impaired
assets
Impairment
allowance
Total
£’000
£’000
£’000
£’000
£’000
Shares and other variable yield securities and units in
unit trusts
Debt securities
Participation in investment pools
Loans and deposits with credit and other institutions
Loans secured by mortgages
Derivative assets
Syndicate loans to central fund
Other investments
Deposits with ceding undertakings
Reinsurers share of claims outstanding
Debtors arising out of direct insurance operations
Debtors arising out of reinsurance operations
Other debtors and accrued interest
Cash at bank and in hand
Overseas deposits
5,618
–
–
–
5,618
Total
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SYNDICATE 0727
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
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31 DECEMBER 2025
2.
RISK MANAGEMENT (CONTINUED)
2024
Neither past
due nor
impaired
assets
Past due but
not impaired
assets
Gross value
of impaired
assets
Impairment
allowance
Total
£’000
£’000
£’000
£’000
£’000
Shares and other variable yield securities and units in
unit trusts
Debt securities
Participation in investment pools
Loans and deposits with credit and other institutions
Loans secured by mortgages
Derivative assets
Syndicate loans to central fund
Other investments
Deposits with ceding undertakings
Reinsurers share of claims outstanding
Debtors arising out of direct insurance operations
Debtors arising out of reinsurance operations
Other debtors and accrued interest
Cash at bank and in hand
Overseas deposits
7,434
–
–
–
7,434
Total
There have been no changes in the impairment allowance during the year (2024: no changes)
The table below sets out the age analysis of financial assets that are past due but not impaired at the balance sheet date.
Due but not impaired
2025
0-3 months
past due
3-6 months
past due
6-12 months
past due
Greater than
1 year past
due
Total
£’000
£’000
£’000
£’000
£’000
Debt securities
Participation in investment pools
Loans with credit and other institutions
–
–
–
–
–
Deposits with credit institutions
Derivative assets
Other investments
Reinsurers’ share of claims outstanding
Debtors arising out of direct insurance operations
Debtors arising out of reinsurance operations
Other debtors and accrued interest
Cash at bank and in hand, including letters of credit
and bank guarantees
Overseas deposits
–
–
–
–
–
Total
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NOTES TO THE ANNUAL FINANCIAL STATEMENTS
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31 DECEMBER 2025
2.
RISK MANAGEMENT (CONTINUED)
Due but not impaired
2024
0-3 months
past due
3-6 months
past due
6-12 months
past due
Greater than
1 year past
due
Total
£’000
£’000
£’000
£’000
£’000
Debt securities
Participation in investment pools
Loans with credit and other institutions
–
–
–
–
–
Deposits with credit institutions
Derivative assets
Other investments
Reinsurers’ share of claims outstanding
Debtors arising out of direct insurance operations
Debtors arising out of reinsurance operations
Other debtors and accrued interest
Cash at bank and in hand, including letters
of credit and bank guarantees
Overseas deposits
–
–
–
–
–
Total
2.5
Liquidity Risk
Liquidity risk is the risk that the Syndicate will encounter difficulty in meeting obligations arising from its insurance contracts
and financial liabilities.
The Syndicate is exposed to daily calls on its available cash resources, principally from claims arising from its insurance
business. Liquidity risk arises where cash may not be available to pay obligations when due, or to ensure compliance with the
Syndicate’s obligations under the various trust deeds to which it is party.
The Syndicate’s aim is to manage its liquidity position so that it can fund claims arising from significant catastrophic events,
as modelled in its Lloyd’s realistic disaster scenarios.
The Syndicate’s approach is to maintain an adequate level of liquid assets that can be translated into cash at short notice
without any significant capital loss. These funds are monitored by management on a daily basis and as a result the Managing
Agent does not consider that there is a material risk of loss arising from liquidity risk.
No payments are contractually deferred other than the £3.886m (2024: £3.055m) profit commission due to the Managing
Agent in respect of the closing year, which is not due for payment until three months after closure.
The expected cashflow in respect of outstanding claims is set out separately in Note 4.
The maturity analysis presented in the tables below shows the remaining contractual maturities for the Syndicates insurance
contracts and financial instruments. 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 cashflows (including contractual interest payments) could be paid assuming conditions are
consistent with those at the reporting date.
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NOTES TO THE ANNUAL FINANCIAL STATEMENTS
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31 DECEMBER 2025
2.
RISK MANAGEMENT (CONTINUED)
Undiscounted net cash flows
2025
No maturity
Stated
0-1
Years
1-3
Years
3-5
Years
>5
Years
Total
£’000
£’000
£’000
£’000
£’000
£’000
Claims outstanding
Derivative liabilities
Deposits received from Reinsurers
Creditors
Other liabilities
Total
Undiscounted net cash flows
2024
No maturity
Stated
0-1
Years
1-3
Years
3-5
Years
>5
Years
Total
£’000
£’000
£’000
£’000
£’000
£’000
Claims outstanding
Derivative liabilities
Deposits received from Reinsurers
Creditors
Other liabilities
Total
2.6
Operational Risk
Much of the effect of the Syndicate’s exposure to operational risks is reflected in the various other risk headings above, and is
mitigated and managed through the exercise of the management controls and actions described above. The main additional
non-financial exposures are in relation to operational resilience and people risk.
Operational resilience is the ability of the Syndicate to prevent, adapt and respond to and recover and learn from operational
disruptions. The Managing Agent maintains a Business Continuity Plan (BCP) which sets out the main anticipated
risks, including those relating to the robustness and sustainability of IT infrastructure and business applications, and the
arrangements to mitigate those risks. Additionally, the Managing Agent is working towards enhancing its approach to
operational resilience in line with the Bank of England consultation and discussion papers on the subject, by identifying
processes that, if disrupted, could have a significant impact on consumers.
People risk concerns the management of relationships and arrangements with key individuals to ensure that the Managing
Agent has the right capabilities and culture. The Managing Agent has established arrangements designed to achieve an
appropriate commonality of interest between the Syndicate and the individuals concerned, and these arrangements are
reviewed periodically. In addition, the Managing Agent seeks to maintain a sufficient personnel resource with appropriate
experience and expertise to reduce the dependence on any one individual so far as is practicably possible.
2.7
Other Risks
(a)
Annual Venture Risk
Under the Lloyd’s annual-venture regime, the Syndicate has to show annually that it has enough supporting capital to carry
on underwriting. To mitigate the risk that the Syndicate will not have sufficient backing to continue to trade, the Managing
Agent has adopted a policy of diversifying the Syndicate’s capital base, including using funds supplied by related parties to
support the Syndicate’s underwriting.
(b)
Solvency Risk
In the event of extreme adverse claims experience, it is possible that the Syndicate may not be able to settle its claim liabilities
out of its own funds. In that event, the capital structure underpinning the Syndicate is such that any deficits can be called
from the Syndicate’s capital providers (Members) in accordance with Lloyd’s rules. In the event of any Member being unable
to fulfil its share of such a call, Lloyd’s Central Guarantee Fund may, at Lloyd’s discretion, be applied to make good any
deficits for the benefit of policyholders.
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SYNDICATE 0727
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
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31 DECEMBER 2025
2.
RISK MANAGEMENT (CONTINUED)
(c)
Regulatory Risk
The Managing Agent is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority
and Prudential Regulation Authority in respect of its management of the Syndicate. Failure to comply with applicable
regulations could result in a variety of sanctions, the most extreme being a withdrawal of the right to underwrite business.
The Managing Agent has established a business ethos in which best practice is the required standard for all operations,
both in the commercial interests of the business and to ensure regulatory compliance. Management has also put in place
appropriate monitoring structures to mitigate the risk of failing to meet this standard.
3.
ANALYSIS BY CLASS OF BUSINESS
An analysis of the underwriting result before investment return is set out below:
Gross
premiums
written
Gross
premiums
earned
Gross
claims
incurred
Net
operating
expenses
Reinsurance
balance
Total
technical
result
2025
£’000
£’000
£’000
£’000
£’000
£’000
Direct Insurance
Accident and health
(1,574 )
(522 )
(15 )
(33 )
Motor (third party liability)
(767 )
(503 )
(210 )
Motor (other classes)
(5,804 )
(3,514 )
(478 )
Marine aviation and transport
(1,109 )
(1,371 )
Fire and other damage to property
(20,678 )
(10,531 )
(1,779 )
Third party liability
(16,516 )
(7,371 )
(6 )
(5,269 )
Credit and suretyship
(422 )
(589 )
Total Direct
(46,870 )
(24,401 )
(6,852 )
Reinsurance acceptances
(28,760 )
(12,846 )
Total
(75,630 )
(37,248 )
(4,819 )
The below is an additional disclosure for Lloyd’s reporting purposes and is included to facilitate the classification of the above
segments into the Lloyd’s aggregate classes of business:
Gross
premiums
written
Gross
premiums
earned
Gross
claims
incurred
Net
operating
expenses
Reinsurance
balance
Underwriting
result
2025
£’000
£’000
£’000
£’000
£’000
£’000
Additional analysis
Fire and damage to property of which is:
Specialities
(19 )
(6 )
Energy
Third party liability of which is:
Energy
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NOTES TO THE ANNUAL FINANCIAL STATEMENTS
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31 DECEMBER 2025
3.
ANALYSIS BY CLASS OF BUSINESS (CONTINUED)
Gross
premiums
written
Gross
premiums
earned
Gross
claims
incurred
Net
operating
expenses
Reinsurance
balance
Total
technical
result
2024
£’000
£’000
£’000
£’000
£’000
£’000
Direct Insurance
Accident and health
(971 )
(459 )
(63 )
(178 )
Motor (third party liability)
(891 )
(295 )
(400 )
Motor (other classes)
(5,515 )
(4,031 )
(830 )
Marine aviation and transport
(1,631 )
(1,339 )
Fire and other damage to property
(15,773 )
(11,701 )
(4 )
Third party liability
(12,717 )
(7,858 )
(526 )
Credit and suretyship
(666 )
Total Direct
(35,082 )
(26,349 )
(67 )
Reinsurance acceptances
(34,259 )
(13,226 )
Total
(69,341 )
(39,575 )
The below is an additional disclosure for Lloyd’s reporting purposes and is included to facilitate the classification of the above
segments into the Lloyd’s aggregate classes of business:
Gross
premiums
written
Gross
premiums
earned
Gross
claims
incurred
Net
operating
expenses
Reinsurance
balance
Underwriting
result
2024
£’000
£’000
£’000
£’000
£’000
£’000
Additional analysis
Fire and damage to property of which is:
Specialities
(9 )
(25 )
Energy
Third party liability of which is:
Energy
Total commissions for direct insurance written in the year amounted to £19.2m (2024: £23.0m).
No gain or losses were recognised in the profit or loss during the year on buying reinsurance.
LLOYD’S PART VII TRANSFER
On 30 December 2020, the Members and former Members of the Syndicate, as comprised for each of the relevant years
of account between 1993 and April 2019 (or October 2020 in the case of German reinsurance), transferred all relevant
policies (and related liabilities) underwritten by them for those years of account to Lloyd’s Insurance Company S.A. (‘Lloyd’s
Brussels’), in accordance with Part VII of the Financial Services and Markets Act 2000. On the same date, the Members of the
Syndicate entered into a 100% Quota Share Reinsurance Agreement whereby Lloyd’s Brussels reinsured all risks on the same
policies back to the relevant open years of account of the Syndicate which wrote the transferring policies and/or inherited
liabilities on transferring policies through Reinsurance to Close of earlier years of account.
Following the sanction of the scheme by the High Court on 25 November 2020, the scheme took effect on 30 December
2020 and the Members and former Members of the Syndicate transferred the impacted EEA policies and related liabilities to
Lloyd’s Brussels. On the same date, under the Reinsurance Agreement, Lloyd’s Brussels reinsured the same risks back. The
combined effect of the two transactions had no economic impact for the Syndicate, and accordingly there is no impact on the
Syndicate’s income statement or balance sheet.
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NOTES TO THE ANNUAL FINANCIAL STATEMENTS
..........
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31 DECEMBER 2025
3.
ANALYSIS BY CLASS OF BUSINESS (CONTINUED)
All Part VII business processed since 1 January 2021 is included within the 2024 and 2025 tables’ above as Reinsurance
Inwards business, including if it had originally been classified as Direct Insurance.
The gross premiums written for direct insurance by location (where the contracts were concluded) is presented in the table
below:
2025
2024
£’000
£’000
United Kingdom
European Union (excluding UK)
United States
Rest of the world
Total
2025
2024
£’000
£’000
Reinsurers’ share of earned premiums
(1,627)
(1,411)
Reinsurers’ share of incurred claims
2,009
1,581
Profit arising from reinsurance ceded
382
170
4.
TECHNICAL AND OTHER PROVISIONS
2025
2024
£’000
£’000
Gross Provisions
Provision for unearned premiums
(48,656)
(51,620)
Claims outstanding
(324,638)
(333,261)
Gross technical provisions
(373,294)
(384,881)
Provision for other risks and charges
(426)
(460)
(373,720)
(385,341)
Reinsurers’ Share of Technical Provisions
Provision for unearned premiums
86
107
Claims outstanding
8,630
10,350
8,716
10,457
Net Provisions
Provision for unearned premiums
(48,570)
(51,513)
Claims outstanding
(316,008)
(322,911)
Net technical provisions
(364,578)
(374,424)
Provision for other risks and charges
(426)
(460)
(365,004)
(374,884)
........
.
71
.........
SA MEACOCK
..........
❖
..........
SYNDICATE 0727
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
..........
❖
..........
31 DECEMBER 2025
4.
TECHNICAL AND OTHER PROVISIONS (CONTINUED)
Reconciliation of Movements in Year
At
01-01-2025
Mvt In
Tech Ac
Exch
Mvt
At
31-12-25
2025
£’000
£’000
£’000
£’000
Gross provision for claims
(333,261)
(13,988)
22,611
(324,638)
Reinsurers’ share of provision
10,350
(975)
(745)
8,630
Unearned premium – gross
(51,620)
(244)
3,208
(48,656)
Reinsurers’ share of unearned premium
107
(16)
(5)
86
Deferred acquisition costs (Note 5)
15,462
(61)
(900)
14,501
At
01-01-2024
Mvt In
Tech Ac
Exch
Mvt
At
31-12-24
2024
£’000
£’000
£’000
£’000
Gross provision for claims
(315,080)
(14,019)
(4,161)
(333,261)
Reinsurers’ share of provision
9,135
1,045
171
10,350
Unearned premium – gross
(52,890)
1,520
(251)
(51,620)
Reinsurers’ share of unearned premium
18
91
(2)
107
Deferred acquisition costs (Note 5)
15,472
(64)
54
15,462
The table below shows changes in the in the insurance contract liabilities and assets from the beginning of the period to the
end of the period.
2025
2024
Claims outstanding
Gross
provisions
Reinsurance
balance
Net
Gross
provisions
Reinsurance
balance
Net
£’000
£’000
£’000
£’000
£’000
£’000
Balance at 1 January
(10,350 )
(9,135 )
Claims paid during the year
(61,642 )
(58,658 )
(55,322 )
(54,786 )
Expected cost of current year claims
(2,009 )
(1,580 )
Change in estimates of prior year
provisions
Effect of movement in exchange rate
(22,611 )
(21,866 )
(171 )
Other
Balance at 31 December
(8,630 )
(10,350 )
2025
2024
Unearned premiums
Gross
provisions
Reinsurance
balance
Net
Gross
provisions
Reinsurance
balance
Net
£’000
£’000
£’000
£’000
£’000
£’000
Balance at 1 January
(107 )
(18 )
Premiums written during the year
(1,611 )
(1,502 )
Premiums earned during the year
(107,659 )
(106,032 )
(116,965 )
(115,554 )
Effects of movements in exchange rate
(3,208 )
(3,203 )
Other
Balance at 31 December
(86 )
(107 )
.........
72
.........
SA MEACOCK
..........
❖
..........
SYNDICATE 0727
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
..........
❖
..........
31 DECEMBER 2025
4.
TECHNICAL AND OTHER PROVISIONS (CONTINUED)
Provisions for other risks
2025
2024
£’000
£’000
Balance at 1 January
Additions during the year
Unwind of discount
Amounts utilised
Unused amounts reversed to the profit and loss account
(1,660 )
Effects of movements in exchange rate
(34 )
(6 )
Other
Balance at 31 December
CLAIMS DEVELOPMENT TRIANGULATIONS
The following tables illustrate the development of the estimates of earned ultimate cumulative claims incurred, including
claims notified and IBNR, for each successive underwriting year, illustrating how amounts estimated have changed from the
first estimates made.
As these tables are on an underwriting year basis, there is an apparent large increase for 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 accounts second year of
development. Balances have been translated at exchange rates prevailing at 31 December 2025 in all cases.
Gross Claims Development as at 31 December 2025
Pure underwriting year
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Total
ultimate gross claims
£’000
£’000
£’000
£’000
£’000
£’000
£’000
£’000
£’000
£’000
£’000
At the end of the
underwriting year
After one year
After two years
After three years
After four years
After five years
After six years
After seven years
After eight years
After nine years
Gross ultimate claims
on premium earned
to date
Gross ultimate claims
on premium earned
to date for 2013 and
prior years
–
–
–
–
–
–
–
–
–
–
Less gross claims paid
(42,102 )
(45,413 )
(45,181 )
(40,293 )
(48,624 )
(42,859 )
(47,867 )
(35,682 )
(26,157 )
(5,376 )
(1,866,254 )
Gross outstanding claims
reserve
........
.
73
.........
SA MEACOCK
..........
❖
..........
SYNDICATE 0727
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
..........
❖
..........
31 DECEMBER 2025
4.
TECHNICAL AND OTHER PROVISIONS (CONTINUED)
Net Claims Development as at 31 December 2025
Pure underwriting
year
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Total
ultimate gross claims
£’000
£’000
£’000
£’000
£’000
£’000
£’000
£’000
£’000
£’000
£’000
At the end of the
underwriting year
After one year
After two years
After three years
After four years
After five years
After six years
After seven years
After eight years
After nine years
Net ultimate claims on
premium earned to
date
Net ultimate claims on
premium earned to
date for 2013 and
prior years
–
–
–
–
–
–
–
–
–
–
Less net claims paid
(41,494 )
(43,105 )
(42,173 )
(39,679 )
(48,610 )
(40,613 )
(47,837 )
(35,639 )
(26,155 )
(5,333 )
(1,718,301 )
Net outstanding claims
reserve
The table above utilises the transition provisions available on adoption to show only 10 years development history.
The above analysis is shown in Sterling. Paid claims have been accounted for at historical exchange rates for each calendar year
with the reserves at each year end retranslated using the latest reporting date exchange rate so as to prevent foreign exchange
fluctuations obscuring the view of the claims development.
The expected cashflows of the gross technical provisions for outstanding claims as at 31 December 2025, is as follows:
Less than 1
Year
1-3
Years
3-5
Years
Over 5
Years
Total
£’000
£’000
£’000
£’000
£’000
Gross technical provisions for
outstanding claims
86,020
104,417
50,894
83,307
324,638
The expected cashflows of the gross technical provisions for outstanding claims as at 31 December 2024, is as follows:
Less than 1
Year
1-3
Years
3-5
Years
Over 5
Years
Total
£’000
£’000
£’000
£’000
£’000
Gross technical provisions for
outstanding claims
84,559
101,579
54,366
92,757
333,261
Movements in significant classes in year 2025 for net ultimate claims provisions created at previous year end and relating to
accident years up to year 2024 (positive values show increases in provisions):
2025
2024
£’000
£’000
Accident and health
(272)
(65)
Fire & other damage to property
558
(2,975)
Third party liability
(23)
(2,994)
Property Reinsurance
2,835
(5,293)
Liability Reinsurance
(3,022)
3,384
The movements are consistent in general with a prudent reserving approach.
The increase in provisions in the property reinsurance class is a result of deterioration on the 2024 year of account property
catastrophe portfolio.
.........
74
.........
SA MEACOCK
..........
❖
..........
SYNDICATE 0727
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
..........
❖
..........
31 DECEMBER 2025
5.
NET OPERATING EXPENSES
2025
2024
£’000
£’000
Brokerage and commissions
26,940
30,128
Other acquisition costs
1,475
1,093
Acquisition costs
Change in deferred acquisition costs (Note 4)
Acquisition costs earned
28,476
31,285
Administrative expenses
Reinsurance commissions and profit participation
Net Operating Expenses
Members’ personal expenses
Administrative expenses include:
Fees Payable to the Syndicate’s Auditors for:
The audit of the Syndicate’s Financial Statements
Audit related insurance services (e.g. Returns to Lloyd’s)
Other reports to Regulators
8
6
258
228
Impairment losses on debtors:
Arising out of direct insurance operations
Arising out of reinsurance operations
Impairment losses on financial instruments
Arising from instruments measured at amortised cost
Arising from instruments measured as available for sale
........
.
75
.........
SA MEACOCK
..........
❖
..........
SYNDICATE 0727
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
..........
❖
..........
31 DECEMBER 2025
6.
EMPLOYEES
All staff are employed by the Managing Agency. The following amounts were recharged to the Syndicate in respect of salary
costs (this excludes any benefits where the costs are retained elsewhere in the Managing Agency):
2025
2024
£’000
£’000
Wages and salaries
Social security costs
Other pension costs
Other short/long term incentive costs
The average number of employees employed by the Managing Agency but working for the Syndicate during the year was as
follows:
No.
No.
Administration and finance
Underwriting
Claims
Investment
7.
DIRECTORS’ AND JOINT ACTIVE UNDERWRITERS’ EMOLUMENTS
The Directors of S A Meacock & Company Limited received the following aggregate remuneration charged to the Syndicate
and included within net operating expenses:
2025
2024
£’000
£’000
Emoluments
Contributions to defined contribution pension schemes
65
42
1,506
1,386
The above total also represents Key Management Personnel Compensation as there are no other staff who are considered key
management and there is no other compensation receivable by the Directors recharged to this Syndicate.
Joint Active Underwriters’ emoluments:
The joint active underwriters received the following aggregate
remuneration charged as a Syndicate expense:
Emoluments
The above amounts exclude any benefits not recharged to the Syndicate.
.........
76
.........
SA MEACOCK
..........
❖
..........
SYNDICATE 0727
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
..........
❖
..........
31 DECEMBER 2025
8.
INVESTMENT RETURN
2025
2024
£’000
£’000
Interest and similar income
From financial instruments designated at fair value through profit or loss
Interest and similar income
Dividend income
Interest on cash at bank
Other income from investments
From financial instruments designated at fair value through profit or loss
Gains on realisation of investments
Losses on realisation of investments
(4,670 )
(5,699 )
Unrealised gains on investments
Unrealised losses on investments
(73 )
(115 )
Other relevant gains/(losses)
Investment management expenses
Total Investment Return
Transferred to the technical account from the non-technical account
Impairment losses on debtors recognised in administrative expenses
9.
OTHER FINANCIAL INVESTMENTS
Valuation
Cost
2025
2024
2025
2024
£’000
£’000
£’000
£’000
Financial assets at fair value through profit or loss:
Shares and other variable yield securities and units in
unit trusts
Debt securities and other fixed income securities
Loans with credit institutions
Deposits with credit institutions
–
–
–
–
Syndicate loan to central fund
Other investments
Total
The amount ascribable to listed investments is £Nil (2024: £Nil)
The table below presents an analysis of financial investments by their measurement classification:
2025
2024
Financial assets measured at fair value through profit or loss
Financial assets measured at fair value as available for sale
Financial assets measured at amortised cost
Total financial investments
........
.
77
.........
SA MEACOCK
..........
❖
..........
SYNDICATE 0727
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
..........
❖
..........
31 DECEMBER 2025
9.
OTHER FINANCIAL INVESTMENTS (CONTINUED)
Fair value hierarchy
The above financial instruments carried at fair value have been classified by valuation method into three fair value hierarchy
levels based on the reliability of inputs used in determining fair values, with Level 1 being the most reliable. The three levels
are as follows:
Level 1: The unadjusted quoted prices in an active market for identical assets or liabilities that the entity can access at the
measurement date.
Level 2: Inputs other than quoted prices included within Level 1 that are observable (i.e. developed using market data), for
the asset or liability, either directly or indirectly.
Level 3: Inputs are unobservable (i.e. for which market data is unavailable) for the asset or liability.
2025
Level 1
Level 2
Level 3
Assets held
at amortised
Total
£’000
£’000
£’000
£’000
£’000
Financial assets at fair value through profit or loss
Shares and other variable yield securities and units in
unit trusts
Debt securities and other fixed income securities
Participation in investment pools
Loans and deposits with other credit institutions
Deposits with ceding undertakings
–
–
–
–
–
Syndicate loans to central fund
Other investments
Total Financial Instruments
Total
2024
Level 1
Level 2
Level 3
Assets held
at amortised
Total
£’000
£’000
£’000
£’000
£’000
Financial assets at fair value through profit or loss
Shares and other variable yield securities and units in
unit trusts
Debt securities and other fixed income securities
Participation in investment pools
Loans and deposits with other credit institutions
–
–
–
–
–
Deposits with ceding undertakings
Syndicate loans to central fund
Other investments
Total Financial Instruments
Total
.........
78
.........
SA MEACOCK
..........
❖
..........
SYNDICATE 0727
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
..........
❖
..........
31 DECEMBER 2025
9.
OTHER FINANCIAL INVESTMENTS (CONTINUED)
The investments within the 3 levels mainly comprise the following:
Level 1 includes government and corporate bonds and equities based on listed prices on active markets.
Level 2 includes government and corporate bonds based upon prices supplied by investment managers and custodians and
mutual funds invested in moneymarket investments.
Level 3 includes unquoted equities and other investment funds based upon net asset values provided by fund administrators.
10.
DEBTORS ARISING OUT OF DIRECT INSURANCE OPERATIONS
2025
2024
£’000
£’000
Due within one year:
Amounts due after one year
11.
DEBTORS ARISING OUT OF REINSURANCE OPERATIONS
Due within one year
Amounts due after one year
12.
OTHER DEBTORS
Inter-Syndicate balance
Other related party balances (non-syndicate)
Amounts due from members
Other
13.
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
(11,996 )
(11,996 )
(11,969 )
(11,969 )
Foreign exchange movements
(900 )
(900 )
Other
Balance at 31 December
........
.
79
.........
SA MEACOCK
..........
❖
..........
SYNDICATE 0727
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
..........
❖
..........
31 DECEMBER 2025
14.
CREDITORS
2025
2024
£’000
£’000
Creditors arising out of Direct Insurance Operations:
Due within one year:
Intermediaries
Due after one year:
Intermediaries
Creditors arising out of Reinsurance Operations:
Due within one year:
Intermediaries
Due after one year:
Intermediaries
Financial liabilities at amortised cost
Other creditors
2025
2024
£’000
£’000
Inter-Syndicate balances
Profit commissions payable
Other related party balances (non-syndicate)
Derivative liabilities
Other liabilities
Total
Other creditors include £3,886 (2024: £4,316) due to the Syndicate’s Managing Agent
15.
CASH AND CASH EQUIVALENTS
2025
2024
£’000
£’000
Cash at bank and in hand
Short term debt instruments presented within other financial investments
Deposits with credit institutions
Bank overdrafts
Total cash and cash equivalents
Only deposits with credit institutions with maturities of three months or less that are used by the Syndicate in the management
of its short-term commitments are included in cash and cash equivalents.
Of the total cash and cash equivalents, the following amount was held in regulated bank accounts in overseas jurisdictions
2025
2024
£’000
£’000
Total cash and cash equivalents held in regulated accounts in overseas jurisdictions
16.
ANALYSIS OF NET DEBT
At 1
January
2025
Cash flows
Acquired
Fair
value and
exchange
movements
Non-cash
changes
At 31
December
2025
£’000
£’000
£’000
£’000
£’000
£’000
Cash and cash equivalents
Derivative financial liabilities
Other
Total
.........
80
.........
SA MEACOCK
..........
❖
..........
SYNDICATE 0727
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
..........
❖
..........
31 DECEMBER 2025
17.
POST BALANCE SHEET EVENTS
The following amounts are proposed to be transferred to the Members’ during 2026 (2025).
2025
2024
£’000
£’000
2023 Year of account (2022 Year of account)
16,363
13,966
18.
YEAR OF ACCOUNT DEVELOPMENT
The following table shows how the results of the recent Years of Account were earned by calendar year:
Calendar Years
Cumulative
2022
2023
2024
2025
Result
£’000
£’000
£’000
£’000
£’000
Year of Account
2022
(10,242)
11,924
12,649
–
14,331
2023
–
(5,170)
10,216
11,720
16,766
2024
–
–
(132)
(1,141)
(1,273)
2025
–
–
–
(2,607)
(2,607)
Calendar Year Result
22,733
7,972
19.
REGULATORY CAPITAL REQUIREMENTS
Funds at Lloyd’s
Every Member of Lloyd’s is required to hold additional capital at Lloyd’s which is held in trust and known as Funds at
Lloyd’s (FAL). These funds are required primarily in case syndicate assets prove insufficient to meet Members’ underwriting
liabilities.
The level of FAL that Lloyd’s requires a Member to maintain is determined by Lloyd’s according to the nature and the amount
of risk to be underwritten by the Member and the assessment of the reserving risk in respect of that business. FAL is not
hypothecated to any specific syndicate participation by a Member, therefore there are no specific funds available to a syndicate
which can be precisely identified as its capital.
In addition to the FAL and any additional funds a Member may introduce to meet losses, there is a New Central Fund
controlled by Lloyd’s which they may utilise to meet any syndicate liabilities that are not met by a Member.
Provision of capital by Members
Each Member may provide capital to meet its ECA either by assets held in trust by Lloyd’s specifically for that Member (Funds
at Lloyd’s), held within and managed within a Syndicate (funds in Syndicate) or as the Member’s share of the Members’
balances on each Syndicate on which it participates.
There are no funds in the Syndicate held for this Syndicate, accordingly all of the assets less liabilities of the Syndicate, as
represented by the Members’ balances reported on the balance sheet represent resources available to meet Members’ and
Lloyd’s capital requirements.
........
.
81
.........
SA MEACOCK
..........
❖
..........
SYNDICATE 0727
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
..........
❖
..........
31 DECEMBER 2025
20.
RELATED PARTIES
(a)
Lloyd’s market regulations require that a Managing Agent is responsible for employing the underwriting staff and
managing the affairs of each Syndicate at Lloyd’s on behalf of the Syndicate Members. The Managing Agent of Syndicate
0727 is S A Meacock & Company Limited.
The underwriting participations of the Directors of S A Meacock & Company Limited, both as individual Names
(unlimited and Nameco) and through their share in Meacock LLP, a corporate vehicle, are shown below:
Underwriting Participations in years of account (£000s):
2026 Account
2025 Account
2024 Account
2023 Account
£’000’s
%OPL
£’000’s
%OPL
£’000’s
%OPL
£’000’s
%OPL
M P Bartlett
300
100
300
100
200
100
200
100
N N S Ford (Retired 30 June
2023)
200
100
200
100
500
100
500
100
K W Jarvis
801
100
801
100
801
100
801
100
D J Jones
310
100
310
100
310
100
310
100
J M Meacock
1,971
67
1,971
67
1,971
67
784
47
A Taylor
1,607
100
1,607
100
1,607
100
1,607
100
D G Taylor Rea
–
–
–
–
–
–
–
G J Thompson (Appointed
1 July 2023)
126
100
126
100
126
100
126
100
D A Thorp
587
100
587
100
587
100
587
100
D K L White (retired 30 June
2025)
–
–
–
–
–
–
–
–
Mrs M C Goddard (appointed
1 July 2025)
–
–
–
–
–
–
–
–
Meacock LLP (other than
those shown above, both
current and former staff)
1,069
100
1,069
100
1,069
100
1,069
100
(b)
Corporate Member related to the Managing Agent:
Meacock Capital plc (MC) which has a total issued share capital of 5,295,146 ordinary 25 pence shares owns 100% of
Meacock Underwriting Limited (MU) which participates on Syndicate 0727 on standard terms and with the following
capacity:
£
2023
19,208,990
2024
19,208,990
2025
19,259,846
2026
19,259,846
.........
82
.........
SA MEACOCK
..........
❖
..........
SYNDICATE 0727
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
..........
❖
..........
31 DECEMBER 2025
20.
RELATED PARTIES (CONTINUED)
The following Directors, related parties or connected persons, hold shares in MC:
2023
2024
2025
2026
ORD. 25P
% SHARE
CAP
ORD. 25P
% SHARE
CAP
ORD. 25P
% SHARE
CAP
ORD. 25P
% SHARE
CAP
C N Jarvis
(wife of K W Jarvis)
100,500
1.90
100,500
1.90
100,500
1.90
100,500
1.90
C E Meacock*
881,877
16.65
881,877
16.65
881,877
16.65
881,877
16.65
J M Meacock*
881,877
16.65
881,877
16.65
881,877
16.65
881,877
16.65
J W S Meacock*
881,878
16.65
881,878
16.65
881,878
16.65
881,878
16.65
W T R Meacock*
881,877
16.65
881,877
16.65
881,877
16.65
881,877
16.65
Sir David Thomson Bt
156,600
2.96
156,600
2.96
156,600
2.96
156,600
2.96
D A Thorp
56,000
1.06
56,000
1.06
56,000
1.06
56,000
1.06
A Taylor
50,000
0.94
50,000
0.94
50,000
0.94
50,000
0.94
* Includes shares inherited from their late father M J Meacock deceased.
(c)
Amounts due to/(from) Members for each underwriting year for the above Members are calculated and distributed in
the same way as for all other Members, and are included in the total of £11,060m (2024: £18.060m) shown as Members’
Balances in the balance sheet as at 31 December 2025.
Directors of S A Meacock & Company Limited and related companies of S A Meacock & Company Limited entered
into transactions with the Syndicate as follows:
(d)
Members’ expenses, being agent’s fees and profit commission payable to the Managing Agent, and subscriptions and
Central Fund contributions paid to Lloyd’s, are charged on an underwriting year of account, rather than calendar year
basis. For the 2025 underwriting year of account S A Meacock & Company Limited has charged an agent’s fee of 0.75%
of capacity and, when the year of account result is finalised, usually after 36 months, will charge a profit commission
of 17.5% or 20% of the relevant profit dependant on the seven year rolling average results (2024: 0.75% and profit
commission 17.5% or 20%). Within the Syndicate Annual Accounts for the 2025 calendar year, fees of £0.815m
and profit commission of £2.624m have been reflected within net operating expenses (2024: fees £0.745m and profit
commission £3.959m). At 31 December 2025 there are no unpaid fees but profit commission of £3.886m (2024:
£3.959m) was unpaid.
(e)
The Managing Agent incurs a large proportion of the expenses incurred in operating the Syndicate and recharges them
to the Syndicate on a basis that reflects the Syndicate’s use of resources. The recharges are included within amounts
disclosed as net operating expenses, acquisition costs, claims incurred and investment expenses and charges. Included
within the recharges are amounts relating to the remuneration of Directors of S A Meacock & Company Ltd. The total
amount recharged by the Managing Agent to the Syndicate during 2025 was £4.309m (2024: £4.106m) excluding agent
fees and profit commission. As at 31 December 2025 an amount of £Nil was due to the Managing Agent in relation to
expenses (2024: £Nil).
(f)
Mr W T R Meacock was appointed a Director of Meacock Capital plc and Meacock Underwriting Limited on 1 October
2010. He is also a Director of Guy Carpenter & Company LLC, a Marsh McLennan company, which places business
with Syndicate 0727. Mr W T R Meacock is not personally involved in the placing of any business with Syndicate 0727
and does not receive any form of direct remuneration or commission for this business.
........
.
83
.........
SA MEACOCK
..........
❖
..........
SYNDICATE 0727
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
..........
❖
..........
31 DECEMBER 2025
(g)
The following other ‘close family’ members of Mr J M Meacock also participated on Syndicate 0727, on standard terms:
2026*
2025*
2024*
2023
Account
Account
Account
Account
£000’s
£000’s
£000’s
£000’s
C E Meacock (brother)
1,435
1,435
1,435
249
J W S Meacock (brother)
1,450
1,450
1,450
263
Mrs R J R Meacock (mother)
3,184
3,184
3,184
1,010
W T R Meacock (brother)**
1,394
1,394
1,394
207
*
Includes capacity inherited from M J Meacock deceased via 727 Limited.
**
Includes capacity via Elnry Limited.
(h)
There were no unpaid balances due to the Syndicate at 31 December 2025 from any of the Members detailed in Notes
20(a) and 20(g) above.
21.
PENSION OBLIGATIONS
The Managing Agent operates a defined contribution scheme for its employees including Syndicate staff. The cost of the
contributions made for the year recharged to the Syndicate was £0.25m (2024: £0.21m) and there were no outstanding or
prepaid contributions at the end of this year or the previous year.
22.
FOREIGN EXCHANGE RATES
The following currency exchange rates have been used for principal foreign currency transactions:
2025
Start of period
Rate
2025
End of period
Rate
2025
Average
Rate
2024
Start of period
Rate
2024
End of period
Rate
2024
Average
Rate
Sterling
US Dollar
Canadian Dollar
Australian Dollar
Euro
Japanese Yen
.........
84
.........
SA MEACOCK
..........
❖
..........
SYNDICATE 0727
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
..........
❖
..........
31 DECEMBER 2025
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