Strategic report of the Managing Agent (continued)
10
Environment, Social & Governance : Climate change
The impact on the business from climate change continues to be assessed; relevant data is considered and action taken as appropriate bearing in mind the long term nature of the impacts of climate change. The managing agent is mindful of its corporate and social responsibilities in the global market place in which the syndicate is active. Specific resource has been dedicated to evaluating climate change with an on-going review of the risk factors from a financial and an operational perspective.
Future developments
Whilst it is too early to assess rates across the various lines of business 2026 has opened, in the main, with a very competitive trading environment. This is due, in part, to surplus capacity in many areas with aggressive appetite. Whilst disappointing, our Underwriters remain focussed on writing business that meets our strict internal metrics around price adequacy and finding opportunities that supplement the existing portfolio.
Faraday continues to work with Lloyd’s to ensure we are positioned for long term success as well as supporting the Lloyd’s franchise with engagement in the roll-out of The Future at Lloyd’s, Blueprint Two which has been subject to several delays.
The managing agent remains mindful that Faraday’s primary platform continues to be the syndicate. However, in certain circumstances this may not be suitable and Faraday MGA Limited, our second platform, would provide a means to accommodate Faraday’s clients’ needs. In 2025 our MGA has bound business on behalf of General Reinsurance AG and it is dealing with the runoff of business bound in earlier years on behalf of Berkshire Hathaway International Insurance Limited, both are related group companies. And, as noted in the Managing Agent’s Report Faraday Europe SAS (FESAS) was formed in late 2024. This now has branches in France, Germany, Spain, Italy and the UK. Once fully operational this network will provide another route for business for Syndicate 435. Some business was written through FESAS in 2025
Faraday continues to review its vision and overall strategy. We strive to ensure the optimum outcome for policyholders as well as adding strength to the Faraday brand. We continue to investigate other classes of business and will look to broaden the Faraday product offering where appropriate. Faraday maintains its strong underwriting discipline across all lines of business and is prepared to take tough decisions should the underlying risk not pass strict criteria. Underwriters remain focused on the profitability of the business being written. We are actively looking to enhance our market presence during the coming year through growth in our younger teams, participation in further new lines of business and large individual bespoke arrangements.
By order of the board
Elisabeth Richardson
Company Secretary
London
19 February 2026
