Syndicate Accounts

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Contents

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

Report of the Directors of the Managing Agent........................................................................5

Statement of Managing Agent’s responsibilities....................................................................11

Independent auditors’ report to the member of syndicate 2987.............................................12

Income Statement – Technical Account................................................................................16

Income Statement – Non-Technical Account.........................................................................17

Statement of Financial Position – Assets...............................................................................18

Statement of Financial Position – Liabilities...........................................................................19

Statement of Changes in Member’s Balance.........................................................................20

Statement of Cash Flows.......................................................................................................21

Notes to the Accounts............................................................................................................22

Directors and Administration

Executive

Martin George Thompson

Gavin Leslie Wilkinson

Jonathan Michael Howson Sullivan

Non-Executive

Jean-Jacques Henchoz (appointed 1 May 2025)

Simon Philip Guy Lee

Caroline Frances Ramsay

Hayley Robinson

Andrea Caroline Natascha Welsch

Secretary

Tim James Harmer

Active Underwriter

John King

Registered Office

The Leadenhall Building

122 Leadenhall Street

London

EC3V 4AB

Independent Auditors

PricewaterhouseCoopers LLP

Chartered Accountants and Statutory Auditors

7 More London, Riverside

LondonSE1 2RT

Report of the Directors of the Managing Agent

The Directors of the Managing Agent, Brit Syndicates Limited (BSL), a company registered in England and Wales, present the Report and Accounts of Syndicate 2987 (the Syndicate) for the year ended

December 2025

. These annual accounts are prepared using the annual basis of accounting as required by Statutory Instrument No 1950 of 2008 and The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 (Lloyd’s Regulations 2008).

Amounts are reported in thousands of US dollars ($’000) unless otherwise stated.

Principal activity and review of the business

The Syndicate’s principal activity is the underwriting of general insurance and reinsurance business in the Lloyd’s market. The underwriting strategy reflects the Directors’ view of prevailing market conditions in the classes of business written by the Syndicate during the year.

The result for the 2025 calendar year is a profit of $388,729k (2024: $237,633k), comprising an underwriting profit of $127,159k (2024: $141,301k) with a combined ratio of 93.6% (2024: 92.3%), and a net investment return of $248,354k (2024: $138,777k). The result reflects a positive, resilient underwriting result, a robust attritional performance and a strong investment income. Foreign exchange gains for the year of $13,216k (2024: loss of $42,445k) are as a result of core currency rates of exchange movements against the US dollar. Net investment return includes losses on currency derivatives of $4,834k (2024: gain of $25,058k), which the Syndicate utilises to effectively manage its currency exposure.

The Syndicate’s key performance indicators during the year were as follows:

2025$’000

2024$’000

Gross premiums written

2,863,369

2,862,918

Net premiums written

1,981,200

1,974,636

Earned premiums, net of reinsurance

1,977,860

1,832,174

Underwriting result

127,159

141,301

Investment return

248,354

138,777

Technical result for the financial year

375,513

280,078

Non-technical account for the financial year

13,216

(42,445)

Result for the financial year

388,729

237,633

Claims ratio¹

53.6%

53.1%

Expense ratio²

40.0%

39.2%

Combined ratio³

93.6%

92.3%

1 The ratio of net claims incurred to net earned premiums.

2 The ratio of net operating expenses (both net acquisition costs and administrative expenses) to net earned premiums.

3 The total of net claims and net operating expenses as a percentage of net earned premium.

Gross premiums written

An analysis of gross premiums written by Brit portfolio is set out below:

2025$’000

2024$’000

Variance

FinPro & Cyber

561,605

517,745

8.5%

Programmes & Facilities

386,139

450,783

(14.3%)

Property & Specialty

1,014,457

972,456

4.3%

Casualty

521,109

525,023

(0.7%)

Property Treaty

386,239

395,105

(2.2%)

Discontinued

(6,180)

1,806

(442.2%)

Total

2,863,369

2,862,918

0.0%

Gross written premium of $2,863,369k is broadly in line with prior year (2024: $2,862,918k). Growth in FinPro & Cyber and Property & Specialty was offset by reductions in Programmes & Facilities, Casualty, Property Treaty and Discontinued portfolios.

Market conditions have become more challenging during 2025. The risk-adjusted rate decrease on renewed business is 5.0% (2024: decrease of 1.2%). The Syndicate has experienced rate reductions across most portfolios, notably in Cyber & Technology (down 14.6%) and Open Market Property (down 11.7%).

The retention rate for the period was 84.3% (2024: 85.0%). Across all lines, the Syndicate has retained underwriting discipline.

Premium increased across the FinPro & Cyber portfolio, driven by strong growth in Ambridge Transactional, following higher M&A activity, and to a lesser extent Political & Credit Risks, which benefited from new business opportunities.

The Programmes and Facilities portfolio comprises Property Facilities, Contingency, Personal Accident and Long Tail Facilities. Premium reduced across the portfolio following adverse premium development in Personal Accident and Property Facilities, as coverholders missed targets.

The Property & Specialty Portfolio comprises US and International Open Market Property, Terrorism and Specie, Private Clients, Energy and Marine. Increased premium was driven by growth in US and International Open Market Property, which benefited from strong new business opportunities and the ability to deploy larger lines. This was achieved despite market conditions becoming increasingly challenging, particularly in the US market. Premium growth was also achieved in Marine, most notably Cargo, reflecting the strategic ambition to grow this class. However, this was more than offset by reduced premium in Energy, driven by Construction, reflecting a reduction in appetite, and Midstream, following adverse rates and limited new business opportunities.

The Casualty portfolio has experienced a modest reduction in premium. This is driven by reduced premium in Casualty Direct, following planned reductions in business from Brit’s formerly owned MGAs Ambridge and Scion, which is partly offset by growth in Casualty Treaty, largely due to the adverse premium development experienced in prior year.

Property Treaty premium decreased due to favourable premium development in the prior year and a current year reduction reflecting the challenging 1/1 renewals after late 2024 market softening, which was partially offset by the benefit of LA Wildfire reinstatement premiums. The North American Cat book also declined due to rate reductions and a redistribution of catastrophe aggregate. These impacts were partly offset by growth in North American Pro Rata, supported by new business and increased signings, though the slower earning pattern means this benefit will take longer to emerge.

Outwards reinsurance

Reinsurance expenditure in 2025 of $882,169k (or 30.8% of Gross Premium Written) was in line with prior year (2024: $888,282k or 31.0% of Gross Premium Written). The Syndicate continues to focus on retaining a larger portion of profitable business, while maintaining a comprehensive level of cover.

Underwriting result

The Syndicate reported an underwriting profit of $127,159k (2024: profit of $141,301k) and a combined ratio of 93.6% (2024: 92.3%).

Claims

Major loss activity

The table below sets out the net impact of major losses on the Syndicate’s results, analysed by event:

2025$’000

2024$’000

LA Wildfires

115,369

Hurricane Melissa

16,679

Hurricane Milton

51,394

Hurricane Helene

35,680

Total

132,048

87,074

Effect on the COR%

6.7%

4.8%

Note: The losses above are reflected gross of reinstatement premiums. Total 2025 net losses including reinstatement premiums are $115,039k.

Worldwide natural disasters in 2025 resulted in estimated economic losses of around $220bn (2024: $327bn), below the ten-year average of $267bn, while estimated insured losses were in the region of $107bn (2024: $141bn), below the ten-year average of $111bn (Source: Swiss Re). 2025 produced the highest insured wildfire losses on record ($40bn), driven by the LA wildfires, and insured losses from severe convective storms are estimated at $50bn, making 2025 the third costliest year on record. There were relatively low hurricane losses, despite an active wind season, with thirteen named storms, five hurricanes, four major hurricanes and three category five hurricanes. Hurricane Melissa was the most costly hurricane, with insured losses estimated at $2.5bn (Source: Swiss Re).

The Syndicate’s major natural catastrophe losses in 2025 amounted to $132,048k and added 6.7pps to the combined ratio (2024: $87,074k / 4.8pps), driven by the LA Wildfires ($115,369k net) and Hurricane Melissa ($16,679k net). The Syndicate does not have material exposure to other catastrophe events which occurred during the year. While some claims are anticipated to emerge, it is expected that these will be attritional in scale.

Attritional losses

The Syndicate’s underlying claims performance in 2025 remained robust and stable compared to the prior year, with an attritional claims ratio (calculated as attritional claims as a percentage of net earned premium) of 48.8% (2024: 48.3%).

Prior year development

The 2025 result includes a prior year reserve release of $36,799k (2024: $885k prior year reserve strengthening), which reduces the overall combined ratio by 1.9pps.

Reserve releases in the Programmes & Facilities and Property & Specialty portfolios were partially offset by reserve strengthening in the FinPro & Cyber and Discontinued portfolios.

Net operating expenses

Net operating expenses include net commissions and administrative expenses. The net commission expense ratio (the ratio of net commission expense to net earned premium) was 25.4%, an improvement on 2024 (26.5%). The gross commission ratio has remained relatively stable, with the improvement in the net ratio largely driven by the earned impact of the reductions in ceded premium in 2024.

The administrative expense ratio (the ratio of net administrative expenses to net earned premium) increased to 14.5% (2024: 12.7%). Administrative expenses (including member’s standard personal expenses) increased by 23.1% to $287,692k (2024: $233,718k), largely due to an increased Managing Agent’s Fee, underlying expense inflation and movements in exchange rates.

Investment return

Net investment return for the 2025 financial year totalled $248,354k, significantly ahead of the prior year (2024: $138,777k). Returns were driven by the fixed income portfolio, as unrealised capital gains added to income in the portfolio. Funds and equities also contributed, benefiting from the positive equity environment. During 2025, the US two-year yield fell from 4.24% to 3.48%, the five-year yield fell from 4.38% to 3.73% and the ten-year yield fell from 4.57% to 4.17%. Investment grade spreads narrowed in the US from 0.60% to 0.59% and from 0.92% to 0.66% in Europe, while high yield spreads in the US narrowed from 2.87% to 2.68% and in Europe narrowed from 3.08% to 2.64%.

Member’s Balance

The Syndicate’s Member’s Balance comprises the cumulative results of the Syndicate for the open years of account, plus any cash calls that the Syndicate has made on its Member. The Member’s balance as at 31 December 2025 was $468,951k (2024: $480,340k).

Financial Position

Net Technical Reserves

Preserving a strong financial position is critical to the long-term success of an insurance business. The Syndicate’s net technical reserves have increased by $334,732k, or 8.3% to $4,353,149k (2024: $4,018,417k). The Syndicate maintains appropriate loss reserves to cover its estimated future liabilities. Reserves are estimates that involve actuarial and statistical projections of the expected cost of the ultimate settlement and administration of claims. The reserving process is robust and managed by the BSL Chief Actuary, under the oversight of the Reserving Committee. Reserving estimates are prepared quarterly and are based on facts and circumstances then known, predictions of future developments, estimates of future trends in claims frequency and severity and other variable factors such as inflation. Movement in reserves forms an integral element of the operating result.

The Syndicate’s reserving policy is to reserve to a best estimate and carry an explicit risk margin above that best estimate. Maintaining reserves is critical to safeguard future obligations to policyholders and the Syndicate’s approach provides a secure foundation. It also provides a secure foundation for the pricing of new business which is particularly critical in a soft rating environment.

Financial Investments and cash

The investment portfolio retains a large proportion of high quality fixed income securities ($2,815,389k or 79.9%), equities ($327,580k or 9.3%) and at the year-end had an allocation to cash and cash equivalents ($212,955k or 6.0%), (2024: fixed income securities: $2,588,500k or 81.6%, equities: $344,961k or 10.9%, cash and cash equivalents: $94,076k or 3.0%).

Syndicate Outlook

Stamp capacity for the 2026 year of account of £2,039,696k is slightly down on prior year. As in previous years, Brit continues to actively manage the portfolios, to grow where the market is strongest and where there are the best opportunities to deliver on profitability, taking action on the weaker segments of the portfolio.

Going into 2026, the industry is faced with a number of challenges and uncertainties including macro-economic, inflationary, environmental and geo-political pressures affecting both the rating environment and cost of claims. New and existing capacity either entering the London Market or attracting business away increase competition and place further pressures on rates and retention.

The Directors assessed the Syndicate’s aggregate exposure to natural catastrophe risk within the 2026 plan by reference to the Cat Risk Management Framework and associated risk appetite. Within this appetite, catastrophe capacity is allocated across underwriting teams based on available underwriting terms, pricing margin and relative risk-return characteristics. By proactively adjusting its risk profile, the Syndicate aims to preserve profitability and financial resilience in changing market conditions.

In 2025, the Syndicate achieved risk adjusted rate change (RARC) of -5.0%, reflecting increased market competition with capacity outstripping demand. The Syndicate continues to underwrite for profit, not top-line income.

Brit remains cognisant of the potential impacts of inflation, with work being undertaken internally to quantify and mitigate its impact on profitability. There is continued focus on ensuring that underwriting and pricing adequately addresses inflationary trends and Brit continues to review the key drivers of claim settlement costs and frequency by class of business. The Syndicate’s reserves continue to be set at a margin above the actuarial best estimate, incorporating management’s current view of social and economic inflation.

Going Concern

Following a review of the financial performance and position of the Syndicate, the Directors have a reasonable expectation that the Syndicate has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the report and accounts.

Principal risks and uncertainties

The information on principal risks and uncertainties is disclosed in note 3 to the accounts.

Employee and environmental matters

All staff in the UK are employed by Brit Group Services Limited, the group’s service company, and the full staff cost disclosures are included in the notes to those accounts. Amounts are recharged to the Syndicate as part of the annual fixed fee charged by the Managing Agent.

Climate change will impact Brit’s business and all its stakeholders, and Brit is committed to responsible business practices and recognises that it is most effective when acting alongside others in the industry.

Directors

The names of the current Directors of the Managing Agent and those who have served during the year are shown on page 4.

Independent Auditors

PricewaterhouseCoopers LLP remain in office as the Syndicate’s auditors.

Statement of disclosure of information to the Auditors

Each person who is a Director of the Managing Agent at the date of approval of this report confirms that:

•so far as the Director is aware, there is no relevant audit information, being information needed by the Syndicate’s auditors in connection with its report, of which the Syndicate’s auditors are unaware; and

•he or she has taken all the steps that he or she is obliged to take as a director in order to make himself or herself aware of any relevant audit information and to establish that the Syndicate’s auditors are aware of that information.

Statement of Managing Agent’s responsibilities

The Managing Agent is responsible for preparing the Syndicate annual accounts in accordance with applicable law and regulations.

The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 require 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 as at that date and of its profit or loss for that year.

In preparing the Syndicate annual accounts, the Managing Agent is required to:

1.select suitable accounting policies and then apply them consistently;

2.make judgements and estimates that are reasonable and prudent;

3.state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the notes to the Syndicate annual accounts; and

4.prepare the Syndicate annual accounts on the basis that the Syndicate will continue to write future business unless it is inappropriate to presume that the Syndicate will do so.

The Directors of the Managing Agent confirm that they have complied with the above requirement in preparing the Syndicate annual accounts.

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 comply with the Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008. 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.

The Managing Agent is responsible for the maintenance and integrity of the corporate and financial information included on the business’ website. Legislation in the United Kingdom governing the preparation and dissemination of annual accounts may differ from legislation in other jurisdictions.

The Directors of the Managing Agent are also responsible for the preparation and review of the iXBRL tagging applied to the Syndicate Accounts in accordance with the instructions issued by Lloyd’s, including designing, implementing and maintaining systems, processes and internal controls to result in tagging that is free from material non-compliance with the instructions issued by Lloyd’s, whether due to fraud or error.

The Directors of the Managing Agent confirm that to the best of their knowledge, the syndicate accounts, including the iXBRL tagging applied to these accounts, comply with the requirements of the Lloyd’s Syndicate Accounts instructions version 3.1 as modified by the Frequently Asked Questions version 1.1 issued by Lloyd’s.

On behalf of the Board,

Gavin Wilkinson

Director

19 February 2026

Independent auditors’ report to the member of syndicate 2987

Report on the audit of the syndicate annual accounts

Opinion

In our opinion, Syndicate 2987’s syndicate annual accounts:

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

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

●have been prepared in accordance with the requirements of The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 and the requirements within the Lloyd’s Syndicate Accounts Instructions version 3.1 as modified by the Frequently Asked Questions issued by Lloyd’s version 1.1 (“the Lloyd’s Syndicate Instructions”).

We have audited the syndicate annual accounts included within the Report and Accounts (the “Annual Report”), which comprise: the Statement of Financial Position as at 31 December 2025; the Income Statement: Technical Account, the Income Statement: Non-Technical Account, the Statement of Cash Flows, and the Statement of Changes in Member’s Balance for the year then ended; and the notes to the syndicate annual accounts, which include a description of the significant accounting policies.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”), The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008, the Lloyd’s Syndicate Instructions and applicable law. Our responsibilities under ISAs (UK) are further described in the Auditors’ responsibilities for the audit of the syndicate annual accounts section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We remained independent of the syndicate in accordance with the ethical requirements that are relevant to our audit of the syndicate annual accounts in the UK, which includes the FRC’s Ethical Standard, as applicable to other entities of public interest, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

To the best of our knowledge and belief, we declare that non-audit services prohibited by the FRC’s Ethical Standard were not provided.

Other than those disclosed in note 5, we have provided no non-audit services to the syndicate in the period under audit.

Conclusions relating to going concern

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the syndicate’s ability to continue as a going concern for a period of at least twelve months from when the syndicate annual accounts are authorised for issue.

In auditing the syndicate annual accounts, we have concluded that the Managing Agent’s use of the going concern basis of accounting in the preparation of the syndicate annual accounts is appropriate.

However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the syndicate's ability to continue as a going concern.

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

Reporting on other information

The other information comprises all of the information in the Annual Report other than the syndicate annual accounts and our auditors’ report thereon. The Managing Agent is responsible for the other information. Our opinion on the syndicate annual accounts does not cover the other information and, accordingly, we do not express an audit opinion or, except to the extent otherwise explicitly stated in this report, any form of assurance thereon.

In connection with our audit of the syndicate annual accounts, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the syndicate annual accounts or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify an apparent material inconsistency or material misstatement, we are required to perform procedures to conclude whether there is a material misstatement of the syndicate annual accounts or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report based on these responsibilities.

With respect to the Report of the Directors of the Managing Agent (the “Managing Agent’s Report”), we also considered whether the disclosures required by The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 have been included.

Based on our work undertaken in the course of the audit, The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 requires us also to report certain opinions and matters as described below.

Managing Agent’s Report

In our opinion, based on the work undertaken in the course of the audit, the information given in the Managing Agent’s Report for the year ended 31 December 2025 is consistent with the syndicate annual accounts and has been prepared in accordance with applicable legal requirements.

In light of the knowledge and understanding of the syndicate and its environment obtained in the course of the audit, we did not identify any material misstatements in the Managing Agent’s Report.

Responsibilities for the syndicate annual accounts and the audit

Responsibilities of the Managing Agent for the syndicate annual accounts

As explained more fully in the Statement of Managing Agent’s Responsibilities, the Managing Agent is responsible for the preparation of the syndicate annual accounts in accordance with the applicable framework and for being satisfied that they give a true and fair view. The Managing Agent is also responsible for such internal control as they determine is necessary to enable the preparation of syndicate annual accounts that are free from material misstatement, whether due to fraud or error.

In preparing the syndicate annual accounts, the Managing Agent is responsible for assessing the syndicate’s ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless it is intended for the syndicate to cease operations, or it has no realistic alternative but to do so.

Auditors’ responsibilities for the audit of the syndicate annual accounts

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Based on our understanding of the syndicate and industry, we identified that the principal risks of non-compliance with laws and regulations related to breaches of regulatory principles, such as those governed by the Prudential Regulation Authority and the Financial Conduct Authority, and those regulations set by the Council of Lloyd’s, and we considered the extent to which non-compliance might have a material effect on the syndicate annual accounts. We also considered those laws and regulations that have a direct impact on the syndicate annual accounts such as The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 and the Lloyd’s Syndicate Instructions. We evaluated management’s incentives and opportunities for fraudulent manipulation of the syndicate annual accounts (including the risk of override of controls), and determined that the principal risks were related to management override of controls, including the potential for management bias in significant accounting estimates. Audit procedures performed by the engagement team included:

●Discussions with the Board, management, internal audit and the compliance function of the Managing Agent, including consideration of known or suspected instances of non-compliance with laws and regulations, and fraud;

●Assessment of matters reported on the Managing Agent’s whistleblowing helpline and the results of the investigation of such matters;

●Reviewing relevant meeting minutes and correspondence with regulatory authorities;

●Testing and challenging where appropriate the assumptions and judgements made in establishing significant accounting estimates;

●Identifying and testing journal entries identified as potential indicators of fraud; and

●Designing audit procedures to incorporate unpredictability around the nature, timing and extent of testing.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the syndicate annual accounts. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities for the audit of the syndicate annual accounts is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors’ report.

Use of this report

This report, including the opinions, has been prepared for and only for the syndicate’s member in accordance with part 2 of The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Other required reporting

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

●we have not obtained all the information and explanations we require for our audit; or

●adequate accounting records have not been kept by the Managing Agent in respect of the syndicate; or

●certain disclosures of Managing Agent remuneration specified by law are not made; or

●the syndicate annual accounts are not in agreement with the accounting records.

We have no exceptions to report arising from this responsibility.

Other matter

We draw attention to the fact that this report may be included within a document to which iXBRL tagging has been applied. This auditors’ report provides no assurance over whether the iXBRL tagging has been applied in accordance with section 2 of the Lloyd’s Syndicate Instructions version 3.1.

Paul Pannell (Senior statutory auditor)

for and on behalf of PricewaterhouseCoopers LLP

Chartered Accountants and Statutory Auditors

London

19 February 2026

Income Statement – Technical Account

General business for the year ended 31 December 2025

Note

2025

$000

2024

$000

Gross premiums written

2,863,369

2,862,918

Outwards reinsurance premiums

(882,169)

(888,282)

Net premiums written

1,981,200

1,974,636

Changes in unearned premium

Change in the gross provision for unearned premiums

(12,186)

(74,280)

Change in the provision for unearned premiums, reinsurers’ share

8,846

(68,182)

Net change in provisions for unearned premiums

(3,340)

(142,462)

Earned premiums, net of reinsurance

1,977,860

1,832,174

Allocated investment return transferred from the non-technical account

248,354

138,777

Claims paid

Gross amount

(1,526,617))

(1,317,844))

Reinsurers’ share

735,342

643,658

Net claims paid

(791,275)

(674,186)

Change in the provision for claims

Gross amount

(164,759)

(360,973)

Reinsurers’ share

(104,257)

62,819

Net change in provisions for claims

(269,016)

(298,154)

Claims incurred, net of reinsurance

(1,060,291))

(972,340)

Net operating expenses

(790,410)

(718,533)

Balance on the technical account for general business

375,513

280,078

The accompanying notes are an integral part of these accounts.

Income Statement – Non-Technical Account

For the year ended 31 December 2025

The accompanying notes are an integral part of these accounts.

Note

2025$000

2024$000

Balance on the technical account for general business

375,513

280,078

Investment income

137,305

129,315

Realised gains on investments

27,687

61,923

Unrealised gains/(losses) on investments

94,246

(42,292)

Investment expenses and charges

(10,884)

(10,169)

Total investment return

248,354

138,777

Allocated investment return transferred to technical account

(248,354)

(138,777)

Gain/(loss) on foreign exchange

13,216

(42,445)

Profit for the financial year

388,729

237,633

Total comprehensive income for the year

388,729

237,633

Statement of Financial Position – Assets

As at 31 December 2025

Note

2025$000

2024$000

Investments:

Financial investments

3,448,139

3,171,252

Deposits with ceding undertakings

3,703

3,172

3,451,842

3,174,424

Reinsurers’ share of technical provisions:

Provision for unearned premium

364,484

347,937

Claims outstanding

2,759,284

2,810,233

3,123,768

3,158,170

Debtors:

Debtors arising out of direct insurance operations

842,140

932,240

Debtors arising out of reinsurance operations

514,463

539,045

Other debtors

148

1,917

1,356,751

1,473,202

Other assets:

Cash at bank and in hand

76,947

4,251

Other

236,943

222,919

313,890

227,170

Prepayments and accrued income:

Deferred acquisition costs

310,340

290,955

Other prepayments and accrued income

36,395

28,693

346,735

319,648

Total assets

8,592,986

8,352,614

The accompanying notes are an integral part of these accounts.

Statement of Financial Position – Liabilities

As at 31 December 2025

Note

2025$000

2024$000

Member’s balance and liabilities

Member’s balance

468,951

480,340

468,951

480,340

Technical provisions

Provision for unearned premium

1,268,109

1,230,653

Claims outstanding

6,208,808

5,945,934

7,476,917

7,176,587

Creditors

Creditors arising out of direct insurance operations

51,014

64,866

Creditors arising out of reinsurance operations

546,094

584,885

Other creditors

8,200

5,811

605,308

655,562

Accruals and deferred income

41,810

40,125

Total liabilities

8,124,035

7,872,274

Total member’s balance and liabilities

8,592,986

8,352,614

The accompanying notes are an integral part of these accounts.

The annual accounts on pages 16 to 63 were approved by the board of Brit Syndicates Limited on 18 February 2026 and were signed on its behalf on 19 February 2026 by:

Gavin WilkinsonDirector

Statement of Changes in Member’s Balance

For the year ended 31 December 2025

2025$000

2024$000

Member’s balance brought forward at 1 January

480,340

593,591

Total comprehensive income for the year

388,729

237,633

Closed year of account distribution

(399,037)

(349,342)

Other

(1,081)

(1,542)

Member’s balance carried forward at 31 December

468,951

480,340

The accompanying notes are an integral part of these accounts.

Statement of Cash Flows

For the year ended 31 December 2025

Restated*

Note

2025$000

2024$000

Cash flows from operating activities

Profit for the financial year

388,729

237,633

Increase in gross technical provisions

176,946

435,254

Decrease in reinsurers’ share of technical provisions

95,411

5,362

Decrease in debtors

150,151

172,500

Decrease in creditors

(66,655)

(207,183)

Movement in other assets/liabilities

(21,045)

(6,894)

Investment return

(248,354)

(138,777)

Foreign exchange

(18,442)

42,126

Net cash flows from operating activities

456,741

540,021

Cash flows from investing activities

Purchase of equity and debt instruments

(3,484,591))

(2,587,866))

Sale of equity and debt instruments

3,000,660

1,994,924

Sale of derivatives

4,065

8,467

Investment income received

107,810

107,712

Other

27,916

4,869

Net cash flows from investing activities

(344,140)

(471,894)

Cash flows from financing activities

Distribution of profit

(166)

(59,664)

Other

1,086

1,565

Net cash flows from financing activities

920

(58,099)

Net increase in cash and cash equivalents

113,521

10,028

Cash and cash equivalents at 1 January

94,076

88,528

Foreign exchange on cash and cash equivalents

5,358

(4,480)

Cash and cash equivalents at 31 December

212,955

94,076

*Refer to note 25 for details of the restatement.

The accompanying notes are an integral part of these accounts.

Notes to the Accounts

For the year ended 31 December 2025

1.Accounting policies, statement of compliance and basis of preparation

1.1 Statement of compliance and basis of preparation

The financial statements have been prepared in compliance with FRS 102 and FRS 103, being the applicable UK GAAP accounting standards, and in accordance with The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 (The Regulations 2008), and where appropriate the provisions of Schedule 3 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 (The Regulations) relating to insurance companies. The financial statements have also been prepared in accordance with the Lloyd’s Syndicate Accounts Instructions version 3.1, as modified by the Frequently Asked Questions version 1.1 issued by Lloyd’s.

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

The financial statements are prepared under the historical cost convention, as modified by the recognition of certain financial assets and liabilities measured at fair value. The annual basis of accounting has been applied to all classes of business written by the Syndicate.

The Directors of the Managing Agent have prepared the annual accounts on the going concern basis that the Syndicate will continue to write future business.

The financial statements are reported in US dollars ($), which is the functional and presentational currency of the Syndicate, and rounded to the nearest $’000, unless otherwise stated.

1.2 Product classification

Insurance contracts are those contracts that transfer significant insurance risk. The significance of insurance risk is dependent on both the probability of an insured event and the magnitude of its potential effect to the policyholder. Once a contract has been classified as an insurance contract, it remains an insurance contract for the remainder of its lifetime, even if the insurance risk reduces significantly during this period.

1.3 Significant accounting policies

1.3.1 Insurance contracts

a. Premiums

Premiums written relate to business incepted during the year, together with any differences between booked premiums for prior years and those previously accrued, and include estimates of premiums due but not yet receivable or notified, less an allowance for cancellations. Pipeline premium estimates (estimated premium income) are derived from ultimate premium estimates which are typically based on standard actuarial projection techniques (e.g. Basic Chain Ladder) on the key assumption that historical development of premiums is representative of future development. Premiums are accreted to the technical account (i.e. earned) on a pro rata basis over the term of the related policy, except for those contracts where the period of risk differs significantly over the contract period. In these circumstances, premiums are recognised over the period of risk in proportion to the amount of insurance protection provided. Reinstatement premiums are accreted to the technical account on a pro rata basis over the term of the original policy to which it relates. Premiums are shown net of premium taxes and other levies on premiums.

b. Profit commissions

Profit commission income arising from whole account quota share contracts is recognised when the economic benefits are highly probable. These are netted off against commission costs which are included within the ‘acquisition costs’ line in the technical account.

c. Deferred acquisition costs

Commission and other acquisition costs incurred during the financial period that are related to securing new insurance contracts and/or renewing existing insurance contracts, but which relate to subsequent financial periods, are deferred to the extent that they are recoverable out of future revenue margins. Deferred acquisition costs are capitalised and amortised over the life of the policy to which they relate on a basis consistent with the earnings pattern of that policy.

d. Claims

Claims incurred comprise claims and claims handling costs paid in the year and changes in the outstanding claims provisions, including provisions for claims incurred but not reported (IBNR) and related expenses, together with any adjustments to claims from prior years. Claims handling costs are mainly external costs related to the negotiation and settlement of claims.

Internal costs to negotiate, manage, and settle claims (unallocated loss adjustment expenses) are apportioned to incurred claims. The apportionment utilises the annual ULAE assumption that is agreed by the Reserving Committee.

Outstanding claims represent the estimated ultimate cost of settling all claims (including direct and indirect claims settlement costs) arising from events which have occurred up to the date of the statement of financial position, including IBNR, less any amounts paid in respect of those claims. The Syndicate does not discount its liabilities for unpaid claims, the ultimate cost of which cannot be known with certainty at the date of the statement of financial position.

Claims provisions have been established on an individual class of business basis. The underwriting and management teams conduct a quarterly review of each class of business. Claims are projected to the ultimate position and provision is made for known claims and claims IBNR by the actuarial function.

While the Directors consider that the estimate of claims outstanding is fairly calculated on the basis of the information currently available to them, there is inherent uncertainty in relation to the ultimate liability which will vary as a result of subsequent information and events. Adjustments to the amounts of the claims provisions established in prior years are reflected in the technical account for the period in which the adjustments are made.

e. Provision for unearned premiums

The proportion of written premiums that relate to unexpired terms of policies in force at the date of the statement of financial position is deferred as a provision for unearned premiums, generally calculated on a time apportioned basis. The movement in the provision is taken to the technical account in order that revenue is recognised over the period of the risk.

f. Unexpired risks provision

Provision is made for any deficiencies arising when unearned premiums, net of related deferred acquisition costs, are insufficient to meet expected claims and expenses. The expected claims are calculated having regard to events that are relevant to the provision at the date of the statement of financial position.

Unexpired risk surpluses and deficits are offset where business classes are managed together, and a provision is made if an aggregate deficit arises. At 31 December 2025, the Syndicate reported an unexpired risks provision of $nil (2024: $nil).

g. Reinsurance

The Syndicate assumes and cedes reinsurance in the normal course of business. Premiums and claims on reinsurance assumed are recognised in the technical account on the same basis as direct business, taking into account the product classification. Reinsurance premiums ceded and reinsurance recoveries on claims incurred are included in the respective expense and income accounts. Reinsurance outwards premiums are earned according to the nature of the cover. ‘Losses occurring during’ policies are earned evenly over the policy period. ‘Risks attaching’ policies are expensed on the same basis as the inwards business being protected. Reinstatement premiums on both inwards and outwards business are accreted to the technical account on a pro rata basis over the term of the original policy to which they relate.

Reinsurance assets include amounts recoverable from reinsurance companies for paid and unpaid losses and loss adjustment expenses, and ceded unearned premiums. Amounts recoverable from reinsurers are calculated with reference to the claims liability associated with the reinsured risks. Revenues and expenses arising from reinsurance agreements are therefore recognised in accordance with the underlying risk of the business reinsured.

Any gains or losses on buying reinsurance are recognised immediately in the technical account.

If a reinsurance asset is impaired, the Syndicate reduces its carrying amount accordingly, and will immediately recognise the impairment loss in the technical account. A reinsurance asset will be deemed to be impaired if there is objective evidence, as a result of an event that occurred after initial recognition of that asset, that the Syndicate may not receive all amounts due to it under the terms of the contract, and that the event has a reliably measurable impact on the amounts that the Syndicate will receive from the reinsurer.

Any gains or losses on buying retroactive reinsurance are recognised immediately in the technical account and are not deferred and amortised. Premiums ceded and claims reimbursed are presented on a gross basis in the technical account and statement of financial position as appropriate.

h. Expenses

The Managing Agent has charged the Syndicate an annual fixed fee and has borne all the management expenses of the Syndicate, other than those related to the direct cost of underwriting and investment management charges. Investment management charges are netted off against investment return, as disclosed in note 8. Any internal or external claims adjustment or settlement costs are included within gross claims paid.

1.3.2 Investments

a. Financial investments

The Syndicate has designated on initial recognition its financial assets held for investment purposes (investments) at fair value through profit or loss (FVTPL). This is in accordance with the Syndicate’s documented investment strategy and consistent with investment risk being assessed on a portfolio basis. Information relating to investments is provided internally to the Directors of the Managing Agent and management personnel on a fair value basis.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value of financial assets and liabilities traded in active markets (which are the principal markets or the most advantageous markets that maximise the amount that would be received to sell the asset or minimises the amount that would be paid to transfer the liability) is based on quoted market bid and ask price for both financial assets and financial liabilities respectively.

The fair value of financial assets and liabilities that are not traded in an active market, including over-the-counter derivatives, is determined using valuation techniques. The Syndicate uses a variety of methods and makes assumptions that are based on market conditions existing at each reporting date.

Valuation techniques include the use of comparable recent arm’s length transactions, reference to other instruments that are substantially the same, discounted cash flow analysis, option pricing models and others commonly used by market participants and which make the maximum use of observable inputs.

Gains and losses on investments designated as FVTPL are recognised through the technical account. Interest income from investments in bonds and short-term investments is recognised at the effective interest rate.

b. Investment return

Investment return comprises all investment income, interest receivable, dividend income, overseas deposit income and realised and unrealised investment gains and losses and investment expenses and charges. Interest income is recognised using the effective interest rate method.

Realised gains and losses on investments carried at market value are calculated as the difference between sale proceeds and purchase price and are recognised when the sale transaction occurs. Unrealised gains and losses on investments represent the difference between the valuation at the date of the statement of financial position and their valuation at the previous statement of financial position, or purchase price if acquired during the year, together with the reversal of unrealised gains and losses recognised in earlier accounting periods in respect of investment disposals in the current period. Investment expenses and charges relate to those costs incurred in relation to investment activities.

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. All investment return is considered to arise on such funds except to the extent that investment income arises on Funds at Lloyd’s retained at the Syndicate level, also known as ‘Funds in Syndicate’ (FIS), which remains in the non-technical account.

1.3.3 Measurement of other financial assets and financial liabilities

Other financial assets and financial liabilities are initially recognised at transaction price and subsequently measured at amortised cost using the effective interest rate method.

1.3.4 Recognition and derecognition of financial assets and financial liabilities

Financial assets and financial liabilities are recognised when the Syndicate becomes a party to the contractual provisions of the contract. A financial asset is derecognised when either the contractual rights to the asset’s cash flows expire, or the asset is transferred and the transfer qualifies for derecognition under a combination of risks and rewards and control tests.

A financial liability is derecognised when it is extinguished, which is when the obligation in the contract is discharged, cancelled or expired.

All ‘regular way purchases and sales’ of financial assets are recognised on the trade date, i.e. the date that the Syndicate commits to purchase or sell the asset. Regular way purchases and sales are purchases and sales of financial assets that require delivery of assets within the time frame generally established by regulation or convention in the marketplace.

If the carrying value of an asset is impaired, it is reduced to the recoverable amount by an immediate charge to the income statement. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use.

1.3.5 Derivatives

Derivative financial instruments include foreign exchange contracts, forward rate agreements, interest rate futures, currency and interest rate swaps and other financial instruments that derive their value mainly from underlying interest rates, foreign exchange rates, credit indices, commodity values or equity instruments. All derivatives are initially recognised in the statement of financial position at their fair value, which represents their cost. They are subsequently remeasured at their fair value, with movements in this value recognised in the technical account. Fair values are obtained from quoted

market prices or, if these are not available, by using valuation techniques such as discounted cash flow models or option pricing models.

All derivatives are carried as assets when the fair values are positive and as liabilities when the fair values are negative. Derivative contracts may be traded on an exchange or over-the-counter (OTC). Exchange-traded derivatives are standardised and include certain futures and option contracts. OTC derivative contracts are individually negotiated between contracting parties and include forwards and swaps.

Derivatives are subject to various risks including market, liquidity and credit risk, similar to those related to the underlying financial instruments. Many OTC transactions are contracted and documented under International Swaps and Derivatives Association (ISDA) master agreements or their equivalent, which are designed to provide legally enforceable set-off in the event of default, reducing the Syndicate’s exposure to credit risk. The notional or contractual amounts associated with derivative financial instruments are not recorded as assets or liabilities on the statement of financial position as they do not represent the fair value of these transactions.

1.3.6 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 are included in the statement of financial position under the heading ‘Member’s balance’.

No provision has been made for any overseas tax payable by the member on underwriting results.

1.3.7 Pension costs

Brit Group Services Limited operates a defined contribution pension scheme on behalf of the Managing Agent. Contributions are charged to the Syndicate within the annual fixed fee.

1.3.8 Foreign currencies

In accordance with FRS102, the functional currency is the currency of the primary economic environment in which the Syndicate operates. The functional currency for Syndicate 2987 is the United States dollar ($). Items included in the annual accounts are measured using the functional currency which is also the Syndicate’s presentational currency.

Unless otherwise stated, transactions in Sterling, Canadian dollars and Euros are translated into the functional currency at average rates of exchange. Transactions in foreign currencies other than Sterling, US dollars, Canadian dollars and Euros are translated at the rate of exchange ruling at the date the transaction is processed.

Monetary assets and liabilities in currencies other than the functional currency are translated at the rate of exchange ruling at 31 December of each year. Exchange profits or losses arising on the translation of foreign currency amounts relating to the Syndicate insurance operations are included within the non-technical account as prescribed by FRS 103.

1.3.9 Offsetting of financial instruments

Financial assets and liabilities are offset and the net amount reported in the statement of financial position only when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis, or to realise the assets and settle the liability simultaneously.

2.Critical accounting estimates and judgements in applying accounting policies

The Syndicate makes various assumptions about the future, and other major sources of estimation uncertainty at the end of the reporting period, that have a significant risk of resulting in a material adjustment to the reported amounts of assets and liabilities within the next financial year.

Estimates and judgements are regularly re-evaluated and are based on a combination of historical experience and other factors, including exposure analysis, expectations of future experience and expert judgement.

2.1 Estimation and judgement in relation to determining the ultimate liability arising from claims made under insurance contracts

The estimation of the ultimate liability arising from claims made under insurance contracts is the Syndicate’s most critical accounting estimate. There are several sources of uncertainty that need to be considered in the estimate of the amounts that the Syndicate will ultimately pay to settle such claims. Significant areas requiring estimation and judgement include:

•Estimates of the amount of any liability in respect of claims notified but not settled and incurred but not reported claims (IBNR) to be included within provisions for inwards insurance and reinsurance contracts;

•The corresponding estimate of the amount of outwards reinsurance recoveries which will become due as a result of the estimated claims on inwards business;

•The recoverability of amounts due from reinsurers; and

•Estimates of the proportion of exposure which has expired in the period as represented by the earned proportion of premiums written.

The assumptions used and the manner in which these estimates and judgements are made are set out below, including the reserving process for the estimation of gross, and net of reinsurance, ultimate premiums and claims:

•Quarterly statistical data is produced in respect of gross and net premiums and claims (paid and incurred);

•Projections of ultimate premiums, reinstatement premiums and claims are produced by the internal actuarial department using standard actuarial projection techniques (e.g. Basic Chain Ladder, Bornhuetter- Ferguson, Initial Expected Loss Ratio). The Basic Chain Ladder and Bornhuetter-Ferguson projection methods are based on the key assumption that historical development of premiums and claims is representative of future development. Claims inflation is explicitly taken into account in the initial expected loss ratio selections but is otherwise assumed to be in line with historical inflation trends, unless explicit adjustments for material changes in the level economic inflation or other drivers of inflation such as legislative developments are deemed appropriate;

•Some classes of business have characteristics which do not necessarily lend themselves easily to statistical estimation techniques e.g. due to low data volumes. In such cases additional analyses, for example, a policy-by-policy review may also be carried out to supplement statistical estimates;

•In the event of catastrophe losses, and prior to detailed claims information becoming available, claims provision estimates are compiled using a combination of output from specific recognised modelling software and detailed reviews of contracts exposed to the event in question.

•Underlying key assumptions and methodology are discussed with class underwriters, divisional underwriting directors and the claims team at the ‘Pre-Meet’ meetings. The actuarial department uses the information gathered to help inform the initial ultimate selections following these meetings;

•A peer review process takes place within the Actuarial department of the initial ultimates and they are also presented to the relevant underwriting MDs by senior members of the Actuarial team. This informs the ‘Pre-Close’ ultimate selections; these selections, along with accompanying

assumptions, methodology and uncertainties are presented to the Reserving Committee for discussion and debate;

•Following the review and challenge of the ‘Pre-Close’ estimate, the Actuarial department may make adjustments to the selections which are then presented to the Reserving Committee;

•The Reserving Committee then recommends the committee estimate to be adopted in the financial statements.

The estimates and judgements are applied in line with the overall reserving philosophy as set out in the Reserving Policy and seek to state the claims provisions on a best estimate, undiscounted basis. A management risk margin is also applied over and above the actuarial best committee estimate (which is defined as a best estimate) to allow for the inherent uncertainty within the best estimate reserve position.

The Syndicate has carefully considered the impact of the higher levels of inflation. The Syndicate’s reserves continue to be set at a margin above the actuarial estimate which is set on a best estimate basis. As part of the year-end reserving exercise, the impact of inflation has been considered in detail by the internal Actuarial team to ensure that assumptions are consistent with the Syndicate’s forward looking expectations for claims inflation. Various techniques have been considered in line with guidance from Lloyd’s and regulators.

In addition to claims provisions, the reserve for future loss adjustment expenses is also subject to estimation with consideration being given to the level of internal and third-party loss adjustment expenses incurred annually. The estimated loss adjustment expenses are expressed as a percentage of gross claims reserves and the reasonableness of the estimate is assessed through benchmarking. Further judgements are made as to the recoverability of amounts due from reinsurers. Provisions for bad debts are made specifically, based on the solvency of reinsurers, internal and external ratings, payment experience with the reinsurer and any disputes of which the Syndicate is aware.

2.2 Estimation of pipeline premiums

Premium income reported by the Syndicate includes estimates for ultimate premiums for certain contracts, in particular those written under delegated authority agreements. These ultimate premiums are written in line with expected attachments of the underlying policies. The Syndicate considers relevant information when determining estimates, including information provided by brokers and coverholders, past underwriting experience, market conditions, and the contractual terms of policies. As updated information relating to such variables becomes available, for example when bordereaux are received, adjustments to estimates are recorded in the period in which they are determined, and will impact gross premiums written and provisions for unearned premium in the technical account.

2.3 Estimation of premium earnings

The Syndicate attributes earning of written premium to each period on the basis of the passage of time. However, if the expected pattern of release of risk during the coverage period differs significantly from the passage of time, for example a group of contracts that is exposed to large natural catastrophe risk concentrated in the first or second half of the year, then the allocation is made on the basis of the expected timing of claims incurred. At a portfolio level this is considered to provide a reasonable estimate for the full year of the pattern of risk over the coverage period.

2.4 Estimation and judgements in respect of fair value of financial investments

Financial investments are carried in the statement of financial position at fair value. Determining the fair value of certain investments requires estimation.

The Syndicate values investments using designated methodologies, estimations and assumptions. The measurement basis for assets carried at fair value is categorised into a ‘fair value hierarchy’ in accordance with the valuation inputs and consistent with UK GAAP.

The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (level one); the middle priority to fair values other than quoted prices based on observable

market information (level two); and the lowest priority to unobservable inputs that reflect the assumptions that the Syndicate considers market participants would normally use (level three). To the extent that valuation is based on models or inputs that are unobservable in the market, the determination of fair value requires more judgement and, accordingly, those instruments included in level three will require a greater degree of judgement to be exercised during valuation than for those included in level two or level one.

The classification within the fair value hierarchy is based on the lowest level of significant input to its valuation. Any change to investment valuations may affect the Syndicate results of operations and reported financial condition. For further information, refer to note 10.

3.Principal risks and uncertainties

Introduction and overview

This note presents information about the nature and extent of insurance and financial risks to which the Syndicate is exposed, the Managing Agent’s objectives, policies and processes for measuring and managing insurance and financial risks, and for managing the Syndicate’s capital.

Risk Management Framework

Brit delivers shareholder value by actively seeking and accepting risk within agreed limits. Risk management at Brit is a continuous process that links directly to the organisation’s business and risk management strategies and the associated Board risk tolerances.

Brit’s Risk Management Framework (RMF) applies a consistent methodology and structure to how risks are identified, measured, managed and monitored. This process enables the Syndicate to protect policyholders and maximise shareholder value by ensuring the risk and capital implications of business strategy are well understood.

The RMF has the following key elements:

Element

Element Description

Responsibility

Oversight

Identification

Risk events, risks and relevant controls are identified and classified. This is a continuous process which considers any emerging and existing risks. The risk register sets out the significant risks faced by the business and identifies the potential impact and likelihood of each risk.

Chief Risk Officer, supported by the Risk function

Risk Oversight Committee (ROC) / Board

Measurement

Risks are assessed and quantified and controls are evaluated. This is done through a combination of stochastic modelling techniques, stress and scenario analysis, reverse stress testing and qualitative assessment using relevant internal and external data.

Chief Risk Officer, supported by the Risk function

ROC / Board

Management

The information resulting from risk identification and measurement is used to improve how the business is managed.

Senior management, with guidance from CRO and Risk function

ROC / Board

A key part of the RMF is the setting of risk tolerances and risk appetite. Risk tolerances are set by the relevant Board and represent the maximum amount of risk Brit is willing to accept to meet its strategic objectives. Risk appetites are set by management and reflect the maximum amount of risk that Brit

wishes to take in the current market environment. The actual amount of risk taken is monitored against the tolerances and appetites on an ongoing basis.

The RMF, including the risk tolerances and appetite, reflects Brit’s strategy and seeks to ensure that risk is accepted in the areas which are expected to maximise shareholder value whilst continuing to protect policyholders against extreme events.

A.Insurance risk

Insurance risk arises from the possibility of an adverse financial result due to actual experience being different from that expected when an insurance product was designed and priced. The actual performance of insurance contracts is subject to the inherent uncertainty in the occurrence, timing and amount of the final insurance liabilities. This is the principal risk the Syndicate is exposed to, as its primary function is to underwrite insurance contracts. The risk arises due to the possibility of insurance contracts being under-priced, under-reserved or subject to unforeseen catastrophe claims.

The areas of insurance risk discussed below include: underwriting (including aggregate exposure management), reinsurance and reserving.

A1. Underwriting risk

Underwriting risk is the risk that insurance premiums will not be sufficient to cover the future losses and associated expenses. It arises from the fluctuations in the frequency and severity of financial losses incurred through the underwriting process by the Syndicate as a result of unpredictable events.

The Syndicate is also exposed to the risks resulting from its underwriters accepting risks for premiums which are insufficient to cover the ultimate claims which result from such policies. The underwriting and economic environment and the associated impact on premium rates, including trends due to the underwriting cycle and inflation, are factored into the Syndicate’s pricing models and risk management tools, and is continually monitored to assess whether any corrective action is required. Additional controls over the underwriting strategy are described in the section below.

The Syndicate writes all its business through Lloyd’s and therefore can take advantage of Lloyd’s centralised infrastructure and service support. Lloyd’s also has an established global distribution framework, with extensive licensing agreements providing the Syndicate access to over 200 territories. Exclusively using the Lloyd’s platform subjects the Syndicate to a number of resulting underwriting risks. The Syndicate relies on the efficient functioning of the Lloyd’s market. In particular, any damage to the brand or reputation of Lloyd’s or deterioration in Lloyd’s asset base when compared with its liabilities may have a material adverse effect on the Syndicate’s ability to write new business.

The Syndicate also benefits from the ability to write business based on the Lloyd’s financial rating, which allows the Syndicate to write more business as part of the Lloyd’s platform. A downgrade in Lloyd’s financial strength ratings may have an adverse effect on the Syndicate.

i. Controls over underwriting strategy

The BSL Board sets the Syndicate’s underwriting strategy for accepting and managing underwriting risk. The Syndicate Underwriting Committee, chaired by the Active Underwriter, meets regularly to drive the underwriting strategy and to monitor performance against the plans. The assessment of underwriting performance is all-encompassing applying underwriting key performance indicators (KPIs), technical pricing management information (MI), premium monitoring, delegated underwriting operations and claims. The risks are managed by the committee in line with the underwriting risk policy and within the risk tolerance set by the Board. The underwriting risk policy also sets out a number of controls, which are summarised below.

The Managing Agent carries out a detailed annual business planning process for each of the Syndicate’s underwriting units. The resulting plans set out premium, territorial and aggregate limits and reinsurance protection thresholds for all classes of business and represent a key tool in managing

concentration risk. Performance against the plans is monitored on a regular basis by the Underwriting Committee as well as by the Board. A dedicated Risk Aggregation team also performs catastrophe modelling and scenario tests (internally developed and Lloyd’s Realistic Disaster Scenarios) on a regular basis to ensure that the Syndicate’s net losses remain within its risk appetite.

The Managing Agent has developed underwriting guidelines, limits of authority and business plans for the Syndicate which are binding upon all staff authorised to underwrite. These are detailed and specific to underwriters and classes of business. Gross and net line size limits are in place for each class of business with additional restrictions in place on catastrophe exposed business.

A proportion of the Syndicate’s insurance risks are written by third parties under delegated underwriting authorities, with the remaining being written through individual risk acceptances or through reinsurance treaties. The third parties are closely vetted in advance and are subject to tight reporting requirements. In addition, the performance of these contracts is closely monitored by underwriters and/or portfolio managers, with regular audits being carried out.

The technical pricing framework ensures that the pricing process in the Syndicate is appropriate. It ensures pricing methodologies are demonstrable and transparent and that technical (or benchmark) prices are assessed for each risk. The underwriting and actuarial functions work together to maintain the pricing models and assess the difference between technical price and actual price. The framework also ensures that sufficient data is recorded and checked by underwriters to enable the Syndicate to maintain an effective rate monitoring process.

Compliance is checked through both a peer review process and, periodically, by the Managing Agent’s Internal Audit department which is entirely independent of the underwriting units.

In order to limit risk, the number of reinstatements per policy is limited, deductibles are imposed, policy exclusions are applied and whenever allowed by statute, maximum indemnity limits are put in place per insured event.

ii. Underwriting risk profile

The core insurance portfolio of property, marine, energy and casualty covers a variety of largely uncorrelated events and also provides some protection against the underwriting cycle as different classes are at different points in the underwriting cycle. The underwriting portfolio is managed to target strong underwriting performance and the mix of business is continually adjusted based on the current environment (including the current pricing strength of each class). This assessment is conducted as part of the business planning process, which operates annually, is an ongoing strategy process and uses inputs from the technical pricing framework. The business plan is approved by the BSL Board and is monitored monthly.

iii. Geographical concentration of premium

The Syndicate enters into policies with policyholders from all over the world, with the underlying risk relating to premiums spread worldwide. This allows the Syndicate to benefit from a wide geographic diversification of risk. The principal location of the Syndicate’s policyholders is the United States. The concentration of insurance premium before and after reinsurance, by the location of the underlying risk, is summarised below:

2025

2024

Gross$000

Net$000

Gross$000

Net$000

United States

1,332,585

909,873

1,366,811

937,991

United Kingdom

225,642

157,422

177,681

116,503

Europe (excluding UK)

113,952

71,428

111,294

67,966

Other (including worldwide)

1,191,190

842,477

1,207,132

852,176

Total

2,863,369

1,981,200

2,862,918

1,974,636

The nature of London Market business is such that the insureds and reinsureds are often operating on a multi-territory or worldwide basis and hence coverage is often provided on a worldwide basis. Premiums written on a multi-territory or worldwide basis are included in ‘Other’ in the table above.

iv. Portfolio mix

The Syndicate’s breakdown of gross premium written by principal categories is summarised below:

2025$000

2024$000

FinPro & Cyber

561,605

517,745

Programmes & Facilities

386,139

450,783

Property & Specialty

1,014,457

972,456

Casualty

521,109

525,023

Property Treaty

386,239

395,105

Discontinued

(6,180)

1,806

Total

2,863,369

2,862,918

The Syndicate underwrites a business mix of both insurance and reinsurance, long and short tailed business across a number of geographic areas which results in a diversification of the Syndicate’s portfolio. The business mix is monitored on an ongoing basis with particular focus on the short tail vs. long tail split and the proportion of delegated underwriting business. Long tail business is currently 32% of the portfolio in the year to 31 December 2025 (2024: 32%) and delegated underwriting represents 38% (2024: 40%). Underwriting risk is mainly driven by US catastrophe exposure. Casualty Treaty is also a driver due to its long-tail exposure.

v. Aggregate Exposure Management

The Syndicate closely monitors aggregation of exposure to natural catastrophe events against agreed risk appetites using stochastic catastrophe modelling tools, along with knowledge of the business, historical loss information, and geographical accumulations. Climate change impacts natural catastrophe events. Analysis and monitoring also measures the effectiveness of the Syndicate’s reinsurance programmes. Risk appetites are set by the Board at least annually, or more frequently if there are changes in strategy or market conditions.

Aggregations of exposure to man-made catastrophes are monitored using inhouse scenario analysis and Lloyd’s Realistic Disaster Scenarios (RDSs). Catastrophe risk tolerances are reviewed by the Board at least annually, or more frequently to reflect any changes in strategy or market conditions.

Stress and scenario tests are also run, such as Lloyd’s and internally developed RDSs. Below are the key RDS losses to the Syndicate for all classes combined as at 1st October 2025 (unaudited):

Estimated Industry Loss (i)

Modelled Syndicate Loss at 1 October 2025 (i)

Modelled Syndicate Loss at 1 October 2024 (ii)

$000

Gross$000

Net$000

Gross$000

Net$000

Gulf of Mexico Windstorm

111,000,000

1,033,000

493,000

931,509

408,803

Florida Miami Windstorm

131,000,000

570,000

276,000

504,104

206,057

US North East Windstorm

81,000,000

914,000

370,000

912,758

261,435

San Francisco Earthquake

80,000,000

1,376,000

544,000

1,449,563

587,879

Japan Earthquake

54,000,000

303,000

134,000

288,854

150,847

Japan Windstorm

12,000,000

105,000

41,000

87,981

43,330

European Windstorm

28,000,000

143,000

65,000

108,008

56,276

(i)At 31 December 2025 foreign exchange rates.

(ii)At 31 December 2024 foreign exchange rates.

Actual results may differ materially from the losses above given the significant uncertainties within model assumptions, techniques and simulations applied to calculate these event loss estimates. There could also be non-modelled losses which result in actual losses exceeding these figures. Moreover, the portfolio of insured risks changes dynamically over time.

vi. Sensitivity to changes in insurance liabilities

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 vary 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’s balance.

General insurance business sensitivities as at 31 December 2025

Sensitivity

+5.0%$000

-5.0%$000

Claims outstanding – gross of reinsurance

310,440

(310,440)

Claims outstanding – net of reinsurance

172,476

(172,476)

General insurance business sensitivities as at 31 December 2024

Sensitivity

+5.0%$000

-5.0%$000

Claims outstanding – gross of reinsurance

297,297

(297,297)

Claims outstanding – net of reinsurance

156,785

(156,785)

A2. Reinsurance risk

The Syndicate purchases reinsurance to manage exposure to individual risks and aggregation of risks arising from individual large claims and catastrophe events. This allows the Syndicate to mitigate exposure to insurance losses against the risk appetite, reduce volatility of reported results and protect capital.

Proportional quota share reinsurance is purchased to provide protection against claims arising either from individual large claims or aggregations of losses. Quota share reinsurance is also used to

manage the Syndicate‘s net exposure to classes of business where the Syndicate’s risk appetite is lower than the efficient operating scale of the class of business on a gross of reinsurance basis. These placements are reviewed on the basis of market conditions.

The Syndicate also has in place a comprehensive programme of arrangements to protect itself from severe size or frequency of losses:

i.Facultative reinsurance is used to reduce risk relating to individual contracts. The amount of cover bought varies by class of business. Facultative reinsurance is also used as a tool to manage the net line size on individual risks to within tolerance.

ii.Risk excess of loss reinsurance is used to protect a range of individual inwards contracts which could give rise to individual large claims. The optimal net retention per risk is assessed for each class of business given the Syndicate’s risk appetite during the business planning exercise.

iii.A range of covers such as catastrophe bonds, industry loss warranties and excess of loss reinsurance are in place to protect the Syndicate against combined property claims from multiple policies resulting from catastrophe events.

Given the fundamental importance of reinsurance protection to the Syndicate’s risk management, the Managing Agent has in place internal controls and processes to ensure that the reinsurance arrangements provide appropriate protection of capital and maintain the Syndicate’s ability to meet policyholder obligations. The Active Underwriter proposes external reinsurance arrangements with input from class underwriters and the BSL Chief Risk Officer. All reinsurance purchases are reviewed by the Underwriting Committee. The Active Underwriter monitors and reports on the purchase of reinsurance protections.

The Syndicate remains exposed to a number of risks relating to its reinsurance programme:

•It is possible for extremely severe losses to exhaust the reinsurance purchased. Any losses exceeding the reinsurance protection would be borne by the Syndicate.

•Some parts of the programme have limited reinstatements which limit the amount that may be recovered from second or subsequent claims. If the entirety of the cover is exhausted, it may not be possible to purchase additional reinsurance at a reasonable price.

•A dispute may arise with a reinsurer which may mean the recoveries received are lower than anticipated.

•Basis risk on reinsurance which responds to something other than the Syndicate’s Ultimate Net Loss.

These risks are managed through a combination of techniques and controls including risk aggregation management, capital modelling and internal actuarial review of outward reinsurance costs. The counterparty risk in relation to reinsurance purchased is managed by the Credit Committee. This is further discussed in the Credit risk section below.

A3. Reserving risk

Reserving risk arises where the actual cost of losses for policyholder obligations incurred before the reporting date may differ from the established reserves due to inaccurate assumptions or unforeseen circumstances. This is a key risk for the Syndicate as the reserves for unpaid losses represent the largest component of the Syndicate’s liabilities and are inherently uncertain. The BSL Reserving Committee is responsible for the management of the Syndicate’s reserving risk.

The Syndicate has a rigorous process for establishing reserves for insurance claim liabilities and a number of controls are used to mitigate reserving risk. The reserving process starts with controls over claims data which ensure complete and accurate recording of all paid and notified claims. Claims adjusters validate policy terms and conditions, adjust claims and investigate suspicious or disputed claims in accordance with the Syndicate’s claims policy. Case reserves are set for notified claims

using the experience of specialist claims adjusters, underwriters and external experts where necessary.

Whilst the case reserve is expected to be sufficient to meet the claims amount when it is settled, incurred but not reported (IBNR) claims require additional reserves. This is particularly the case for the longest tailed classes of business where the final settlement can occur several years after the claim occurred. Actuarial triangulation techniques are employed by the Syndicate’s experienced actuaries to establish the IBNR reserves.

These techniques project IBNR reserves based on historical development of paid and incurred claims by underwriting year. For the most uncertain claims, the triangulation techniques are supplemented by additional methods to ensure the established reserves are appropriate. The actuarial team work closely with other business functions such as underwriting, claims and risk aggregation to ensure that they have a full understanding of the emerging claims experience across the Syndicate. Inflation is considered as part of reserve setting process.

The Syndicate’s reserving policy sets out the approach to estimating claims provisions and is designed to produce accurate and reliable estimates that are consistent over time and across classes of business. The actuarial best estimate set out in the policy is subject to sign-off by the Reserving Committee, as part of the formal governance arrangements for the Syndicate. The estimate agreed by the committees is used as a basis for the Syndicate financial statements. A management risk margin is also applied over and above the actuarial best estimate to allow for the inherent uncertainty within the best estimate reserve position and wider inherent uncertainty across the economic and insurance environment. This margin increases the reserves reflected in the Syndicate financial statements above the mean expectation. Finally, the reserves in the financial statements are presented to the Audit Committee for recommendation to the BSL Board.

The reserves can be more or less than is required to meet the claims arising from earned business. The level of uncertainty varies significantly between the classes written by the Syndicate but typically is highest for those classes where there are significant delays in the settlement of the final claim amount. More specifically, the key areas of uncertainty within the Syndicate’s reserves are considered to be claims from the long-tailed direct and reinsurance classes. The issues contributing to this high uncertainty are common to all entities which write such business.

B.Financial risk

The focus of financial risk management for the Syndicate is ensuring that the proceeds from its financial assets are sufficient to fund the obligations arising from its insurance contracts. The goal of the investment management process is to optimise the risk-adjusted investment income and risk-adjusted total return by investing in a diversified portfolio of securities, whilst ensuring that the assets and liabilities are managed on a cash flow and duration matching basis.

B1. Credit risk

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation in a timely manner. The main sources of credit risk relate to:

•Reinsurers: through the failure to pay valid claims against a reinsurance contract held by the Syndicate;

•Brokers and coverholders: where counterparties fail to pass on premiums or claims collected or paid on behalf of the Syndicate;

•Investments: through the issuer default of all or part of the value of a financial instrument or derivative financial instrument; and

•Cash and cash equivalents: through the default of the banks holding the cash and cash equivalents.

The insurance and non-insurance related counterparty credit risks are managed separately by the Syndicate.

Investments Credit Risk

Investment credit risk management process

The Investment Committee is responsible for the management of investment credit risk. The Investment Guidelines and Investment Policy set out clear limits and controls around the level of investment credit risk. The Syndicate has established concentration guidelines that restrict the exposure to any individual counterparty. The investment guidelines further limit the type, credit quality and maturity profile of both the Syndicate’s cash and investments. In addition, the investment risk framework further limits potential exposure to credit risk through monitoring of the aggregate investment risk limits.

Insurance Credit Risk management process

Insurance credit risk arises primarily from reinsurers (whereby reinsurers fail to pay recoveries due to the Syndicate in a timely manner) and brokers and coverholders (whereby intermediaries fail to pass on premiums due to the Syndicate in a timely manner).

The Credit Committee, chaired by the Brit Group Chief Financial Officer, is responsible for the management of credit risk arising from insurance activities.

Reinsurer credit risk is managed by transacting only with reinsurance counterparties that satisfy a minimum level of financial strength or provide appropriate levels of collateral and have been approved for use by the Credit Committee. The reinsurer security list, which sets out the list of approved reinsurance counterparties, is reviewed at least annually and following any significant change in risk profile, which includes any changes to reinsurers' financial ratings. Credit risk appetite limits are set for reinsurance entities and groups to limit accumulations of risk. These positions are monitored quarterly against current statement of financial position exposures and in relation to a number of extreme loss scenarios.

Reinsurance aged debt is monitored and managed against the management risk appetite limits set by the Credit Committee. A bad debt provision is held against all non-rated reinsurers or any reinsurer where there is deemed to be a specific risk of non-payment.

Any breaches of credit risk tolerance and/or appetite are reported to the Risk Oversight Committee and the Board on at least a quarterly basis.

Credit risk profile

A summary of the credit risk exposures for the Syndicate is set out in the table below:

Year 2025

AAA$000

AA$000

A$000

BBB$000

Other$000

Not rated$000

Total$000

Shares and other variable yield securities and units in unit trusts

124,011

11,963

495,006

631,013

Debt securities and other fixed income securities

307,532

2,407,102

51,649

35,087

2,274

11,745

2,815,389

Derivative assets

521

1,216

1,737

Deposits with ceding undertakings

3,703

Reinsurers’ share of claims outstanding

1,455

1,097,332

1,524,491

(511)

342

136,175

2,759,284

Debtors arising out of direct insurance operations

841,837

Debtors arising out of reinsurance operations

439,719

Other debtors and accrued interest

36,543

Cash at bank and in hand

70,105

6,842

76,947

Other assets

82,894

95,574

28,628

12,333

17,514

236,943

Total

585,997

3,611,971

1,612,164

46,909

20,130

1,965,944

7,843,115

Year 2024

AAA$000

AA$000

A$000

BBB$000

Other$000

Not rated$000

Total$000

Shares and other variable yield securities and units in unit trusts

85,577

3,983

457,276

546,836

Debt securities and other fixed income securities

1,910,3577

39,285

513,965

113,598

940

10,355

2,588,500

Derivative assets

7,404

1,720

9,124

Syndicate loans to central fund

26,792

Deposits with ceding undertakings

3,172

Reinsurers’ share of claims outstanding

3,035

1,188,8200

1,467,7188

1,130

319

149,211

2,810,233

Debtors arising out of direct insurance operations

931,583

Debtors arising out of reinsurance operations

475,616

Other debtors and accrued interest

30,610

Cash at bank and in hand

4,251

Other assets

149,994

17,622

26,696

11,306

17,301

222,919

Total

2,148,9633

1,249,7100

2,020,0344

126,034

18,560

2,086,3355

7,649,636

This table has been updated since prior year to exclude balances which are past due or impaired, in line with the Lloyd’s Illustrative accounts. This has resulted in a $657k reduction in the value of ‘Not rated’ debtors arising out of direct insurance operations and a $63,429k reduction in the value of ‘Not rated’ debtors arising out of reinsurance operations.

Collateral of $1,257,031k (2024: $1,045,275k) is held in third party trust accounts or as a letter of credit (‘LOC’) to guarantee Syndicate 2987 against reinsurance counterparties and is available for immediate drawdown in the event of a default. As at 31 December 2025, collateral of $4,988k (2024: $7,932k) had been drawn against reinsurance assets.

i.Financial assets that are past due or impaired

The Syndicate has debtors arising from direct insurance and reinsurance operations that are past due but not impaired at the reporting date. The Syndicate also has debtors arising from reinsurance operations that are impaired at the reporting date.

These debtors have been assessed for impairment and an analysis of the carrying amounts of past due or impaired debtors is presented in the table below:

Neither past due nor impaired assets

Past due but not impaired assets

Gross value of impaired assets

Impairment allowance

Total

2025

$000

Shares and other variable yield securities and units in unit trusts

631,013

Debt securities and other fixed income securities

2,815,389

Derivative assets

1,737

Deposits with ceding undertakings

3,703

Reinsurers' share of claims outstanding

2,759,284

Debtors arising out of direct insurance operations

841,837

303

842,140

Debtors arising out of reinsurance operations

439,719

24,411

55,321

(4,988)

514,463

Other debtors and accrued interest

36,543

Cash at bank and in hand

76,947

Other assets

236,943

Total

7,843,115

24,714

55,321

(4,988)

7,918,162

Neither past due nor impaired assets

Past due but not impaired assets

Gross value of impaired assets

Impairment allowance

Total

2024

$000

Shares and other variable yield securities and units in unit trusts

546,836

Debt securities and other fixed income securities

2,588,500

Derivative assets

9,124

Syndicate loans to central fund

26,792

Deposits with ceding undertakings

3,172

Reinsurers' share of claims outstanding

2,810,233

Debtors arising out of direct insurance operations

931,583

657

932,240

Debtors arising out of reinsurance operations

475,616

40,829

30,532

(7,932)

539,045

Other debtors and accrued interest

30,610

Cash at bank and in hand

4,251

Other assets

222,919

Total

7,649,636

41,486

30,532

(7,932)

7,713,722

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

1 Jan

New impairment charges added in year

Changes in impairment charges

Released to profit and loss account

Foreign exchange

Others

31 Dec

2025

$000

Debtors arising out of reinsurance operations

7,932

(2,677)

(267)

4,988

Total

7,932

(2,677)

(267)

4,988

1 Jan

New impairment charges added in year

Changes in impairment charges

Released to profit and loss account

Foreign exchange

Others

31 Dec

2024

$000

Debtors arising out of reinsurance operations

7,912

329

(309)

7,932

Total

7,912

329

(309)

7,932

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

Past due but not impaired

0-3 months past due

3-6 months past due

6-12 months past due

Greater than 1 year past due

Total

2025

$000

Debtors arising out of direct insurance operations

290

303

Debtors arising out of reinsurance operations

6,777

3,460

11,161

3,013

24,411

Total

6,777

3,460

11,174

3,303

24,714

Past due but not impaired

0-3 months past due

3-6 months past due

6-12 months past due

Greater than 1 year past due

Total

2024

$000

Debtors arising out of direct insurance operations

124

372

657

Debtors arising out of reinsurance operations

22,150

3,113

7,483

8,083

40,829

Total

22,274

3,191

7,566

8,455

41,486

B2. Liquidity risk

Liquidity risk is the risk the Syndicate may encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. The predominant liquidity risk the Syndicate faces is the daily calls on its available cash resources in respect of claims arising from insurance contracts.

The Managing Agent monitors the levels of cash and cash equivalents on a daily basis, ensuring adequate liquidity to meet the expected cash flow requirements due over the short-term.

The Syndicate also limits the amount of investment in illiquid securities in line with the investment policy set by the Board. This involves ensuring sufficient liquidity to withstand an internally developed stressed scenario which includes a severe catastrophe event (with associated payment and funding requirements) and financial market volatility. Contingent liquidity also exists in the form of the Group’s revolving credit facility.

The tables below present the undiscounted value of monetary liabilities of the Syndicate into their relevant maturing groups based on the remaining period at the end of the year to their contractual maturities or expected repayment dates.

000

Undiscounted net cash flows

Year 2025

0-1 yrs$000

1-3 yrs$000

3-5 yrs$000

>5 yrs$000

Total$000

Claims outstanding

1,789,245

2,001,314

1,014,204

1,404,045

6,208,808

Derivative liabilities

5,166

Creditors

600,142

Accruals and deferred income

1,487

Total

2,396,040

2,001,314

1,014,204

1,404,045

6,815,603

000

Undiscounted net cash flows

Year 2024

0-1 yrs$000

1-3 yrs$000

3-5 yrs$000

>5 yrs$000

Total$000

Claims outstanding

1,700,0611

1,883,9111

962,450

1,399,5122

5,945,9344

Derivative liabilities

3,150

Creditors

652,412

Accruals and deferred income

1,802

Total

2,357,4255

1,883,9111

962,450

1,399,5122

6,603,2988

B3. Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk. Credit risk on financial investments and cash is covered in the credit risk section.

i.Currency risk

Currency risk is the risk that movements in exchange rates impact the financial performance or solvency position of the Syndicate. The split of assets and liabilities for each of the Syndicate’s main currencies, converted to US dollars, is set out in the tables below:

Sterling

US dollar

Euro

Canadian dollar

Australian dollar

Total

2025

$000

Investments

18,777

2,833,126

67,402

532,273

264

3,451,842

Reinsurers' share of technical provisions

460,046

2,339,019

192,128

132,575

3,123,768

Debtors

242,768

979,277

84,820

49,886

1,356,751

Other assets

77,678

106,926

505

59,417

69,364

313,890

Prepayments and accrued income

78,503

235,795

17,455

14,982

346,735

Total assets

877,772

6,494,143

362,310

789,133

69,628

8,592,986

Technical provisions

(931,255)

(5,813,277)

(420,227)

(312,158)

(7,476,917)

Creditors

(117,705)

(424,472)

(36,440)

(26,691)

(605,308)

Accruals and deferred income

(5,676)

(31,590)

(3,001)

(1,543)

(41,810)

Total liabilities

(1,054,636)

(6,269,339)

(459,668)

(340,392)

(8,124,035)

Total capital and reserves

176,864

(224,804)

97,358

(448,741)

(69,628)

(468,951)

Adjustment for foreign exchange derivatives

19,632

(292,007)

(72,581)

400,438

(55,482)

Adjusted total capital and reserves

196,496

(516,811)

24,777

(48,303)

(125,110)

(468,951)

Sterling

US dollar

Euro

Canadian dollar

Australian dollar

Total

2024

$000

Investments

67,267

2,577,409

41,592

488,156

3,174,424

Reinsurers' share of technical provisions

424,334

2,422,898

171,566

139,372

3,158,170

Debtors

147,404

1,103,575

93,577

128,646

1,473,202

Other assets

60,795

48,906

690

55,504

61,275

227,170

Prepayments and accrued income

63,580

228,550

14,479

13,039

319,648

Total assets

763,380

6,381,338

321,904

824,717

61,275

8,352,614

Technical provisions

(824,961)

(5,715,869)

(339,759)

(295,998)

(7,176,587))

Creditors

(120,034)

(478,506)

(36,001)

(21,021)

(655,562)

Accruals and deferred income

(5,997)

(30,575)

(2,174)

(1,379)

(40,125)

Total liabilities

(950,992)

(6,224,950)

(377,934)

(318,398)

(7,872,274))

Total capital and reserves

187,612

(156,388)

56,030

(506,319)

(61,275)

(480,340)

Adjustment for foreign exchange derivatives

3,598

(297,065)

(63,994)

357,461

Adjusted total capital and reserves

191,210

(453,453)

(7,964)

(148,858)

(61,275)

(480,340)

The non-US dollar denominated net assets of the Syndicate may lead to profit or losses (depending on the mix relative to the liabilities), should the US dollar vary relative to these currencies.

The Syndicate manages its exposure in each of the main four currencies and the net asset position is rebalanced periodically. Where mismatches occur, these may lead to FX gains and losses reported through the income statement.

Foreign currency forward contracts may be used to achieve the desired exposure to each currency. From time to time the Syndicate may also choose to utilise foreign currency derivatives to manage the risk of reported losses due to changes in foreign exchange rates. The degree to which derivatives are used is dependent on the prevailing cost versus the perceived benefit to the Syndicate from reducing the chance of a reported loss due to changes in foreign exchange rates. The details of all foreign currency derivatives contracts entered into are given in Note 11.

The table below gives an indication of the impact on the result of a percentage movement in the relative strength of the US dollar against the value of sterling, Canadian dollar and Euro simultaneously, after taking into consideration the effect of hedged positions. The analysis is based on the information at 31 December of each year end:

Impact on result for the financial year and net assets

2025$000

2024$000

US dollar weakens

10% against other currencies

(4,786)

2,689

20% against other currencies

(9,572)

5,378

US dollar strengthens

10% against other currencies

4,786

(2,689)

20% against other currencies

9,572

(5,378)

ii.Interest rate risk

Interest rate risk is the risk that the fair value and/or future cash flows of a financial instrument will fluctuate because of changes in interest rates. The Syndicate is exposed to interest rate risk through its investment portfolio, borrowings and cash and cash equivalents. The sensitivity of the price of these financial exposures is indicated by their respective durations. The greater the duration of a security, the greater the possible price volatility.

Insurance liabilities are measured on an undiscounted basis and therefore the reported liabilities are not sensitive to changes in interest rates.

The Syndicate takes into account the duration of its required capital, targeting an investment portfolio duration that, under a variation in interest rates, preserves the solvency ratio of the Syndicate. The duration of the investment portfolio is then set within an allowable range relative to the targeted duration.

iii.Equity price risk

Equity price risk is the risk that the fair value of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), principally investment securities, whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market.

The Syndicate holds a limited portfolio of equities which are subject to equity price risk. This exposure benefits members through the enhanced longer-term returns on equities compared with debt securities.

iv.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 member’s balances.

2025Impact on results before tax$000

2025Impact on

members’

balances$000

2024Impact on results before tax$000

2024Impact on

members’

balances$000

Interest rate risk

+ 50 basis points shift in yield curves

(38,686)

(59,514)

- 50 basis points shift in yield curves

38,686

59,514

Equity price risk

5 percent increase in equity prices

16,379

16,235

5 percent decrease in equity prices

(16,379)

(16,235)

C.Operational Risk

Operational risk is the potential for loss arising from the failure of people, process or technology or the impact of external events. The nature of operational risk means that it is dispersed across all functional areas of the Brit Group which the syndicate is managed by. Operational risk exposures are managed through a consistent set of management processes that drive risk identification, assessment, control and monitoring.

The BSL Operations Committee, chaired by the Group Chief Operations Officer, is a key governance committee reporting to the BSL Board. The BSL Operations Committee is responsible for managing operational risk in line with the operational risk policy and the risk tolerance and management appetite limits set by the BSL Board and management respectively. Each individual risk committee is provided with relevant operational risk updates and these committees include operational risk owners within executive management who actively manage operational risk within their respective areas (such as Underwriting, Claims, Investments and Finance).

An operational risk management framework is in place to ensure an appropriate standard approach is taken to managing operational risk across the Brit Group. The key elements of this framework are:

•Allocation of responsibility for the identification and assessment of operational risk. Standard tools are used to facilitate these assessments;

•Definition of standard elements of sound operating controls that are expected to be in place to address all identified operational risks;

•A process that integrates with Brit’s internal model to support the setting and monitoring of operational risk appetite and tolerances;

•Governance, reporting and escalation for operational risk;

•Infrastructure supporting the operational risk management framework; and

•Operational risk management training and awareness.

A conduct risk framework is in place across the Brit Group to ensure Brit’s products and services continue to meet the needs of our customers.

D.Emerging Risks

Brit undertakes a formal emerging risk review annually with the results reported to the Risk Oversight Committee and included in the Own Risk & Solvency Assessment (ORSA) report and Commercial Insurer’s Solvency Self-Assessment (CISSA) reports of the underwriting entities. The review is an

important part of the risk identification aspect of the Risk Management Framework and includes horizon scanning of the internal and external risk environment to identify potential new or developing risks to Brit. These risks can then be included in the risk register and managed appropriately as required.

The emerging risk review has previously identified risks such as climate change, geopolitics and cyber risk. These risks have been managed throughout their development and are now considered as part of the business-as-usual risk management process for each of the main risks faced by the Syndicate as described earlier in this Note (insurance risk, credit risk, reinsurance risk, market risk, credit risk, liquidity risk, operational risk). Refer to the relevant sections of this Note for details of the Syndicate’s approach to managing those risks.

i.Climate Change

Climate change has been recognised as an emerging risk since 2014 and has been an area of focus since having been identified as a high priority by Brit’s 2018 emerging risks analysis.

Brit’s Risk Management Framework (RMF) sets out the methodology by which Brit identifies, measures, and manages all risks, including those associated with climate change. Consideration is also given to other ESG related risks such as biodiversity and nature related risks.

Brit considers the impact of climate change on natural catastrophe, liability and investment risks to be the most material impact of ESG-related risks on our business. Using Board tolerances and management metrics, exposure to the above risk types is managed and monitored on an ongoing basis.

The RMF is reviewed annually, and regulatory developments are monitored on an ongoing basis. Brit syndicates have been compliant with PRA Supervisory Statement SS3/19 since 2021 which sets expectations for firms regarding their consideration of climate risk.

Climate risk management

Natural catastrophe risk

Natural catastrophe risk relates to the physical risks posed by both non-climatic and climatic hazards. Physical climate risk pertains to the increased frequency and severity of weather-related natural catastrophes, which will likely manifest as additional claims to a (re)-insurer. This could result in additional claims. Climate change to date may already be affecting present-day weather events and therefore claims.

Brit’s Research and Development team within the Risk Management function are responsible for evaluating third party catastrophe models and where appropriate applying adjustments to align the modelled risk landscape with the present-day. In areas where models are not licensed, Brit's Research and Development team offer risk management solutions, primarily based off empirical data and published research studies. Vendor models such as’ Verisk’ and ‘KatRisk’ (developed by scientists and specialists) are used for the most material and established perils. The modelling is supplemented using the ‘Brit View of Risk’ which is a set of in-house adjustments used to apply Brit’s view of risk to vendor model outputs. Brit continuously monitors scientific studies, and regularly reviews both the completeness of existing models and the application of the Brit View of Risk.

Natural catastrophe modelling is leveraged in pricing, risk selection, capital setting, outwards reinsurance purchasing and in determining the risk appetite framework. Brit seeks to ensure a balanced and well diversified portfolio (including exposure to weather perils). Brit has reviewed its property underwriting strategy in recent years and has sought to reduce aggregation of exposure in peak catastrophe regions.

Brit’s exposure to both natural catastrophe risks and physical climate risks at an overall and peril-region level at key return periods are monitored on an ongoing basis by the Risk Management function. Board limits are in place to ensure Brit is not over-exposed to natural catastrophe risk, and reinsurance is purchased to manage tail risk.

Liability risk

Climate change could result in liability claims arising from litigation against Brit’s clients. For example, claims could arise from firms being held responsible for directly contributing to climate change, not taking climate change into account in business decisions or inadequate disclosures.

The Syndicate’s exposure is managed by use of limits on gross underwriting exposure, contract wording and through the purchase of reinsurance. There is uncertainty over whether courts rule against insurers and if so, over what time horizon. The number of climate change litigation related claims notifications is monitored to enable early identification of any material increase.

Market risk

Investment losses have the potential to arise from exposure to industries contributing to climate change whose market value could reduce as the economy transitions away from fossil fuels. This transition risk could occur over the short or long-term depending on government policies and financial market movements.

The Syndicate has a diversified investment portfolio, with limits on exposure to individual issuers. Additionally, Brit has developed metrics to monitor investment exposure to potentially ‘at-risk’ industries such as oil and gas or transport. An annual review of equity holdings is conducted which includes a review of the ESG strategy of the underlying companies.

Other risks

There may be reputational risk to firms if customers deem they are insufficiently responsive to concerns about climate change. Brit Group, which the syndicate is part of, has developed an ESG strategy, as discussed above, which seeks to address this.

Climate scenario analysis and understanding climate risk

Climate scenario analysis is key to understanding the potential impact of climate-related risks. Analysis performed to date has identified physical risks arising from natural catastrophes as having the highest potential for losses. This is therefore a key area of focus.

PRA stress tests

Brit Syndicate 2987 participated in the PRA Climate Change Biennial Exploratory Stress Test (CBES) in 2021. The exercise was designed to assess the impact of climate change on physical and asset risks over a 30-year time horizon in three policy action scenarios. It also required general insurance participants to consider the impact of seven PRA-designed litigation scenarios on liability classes as well as articulation of Brit’s current and future risk management actions.

Building on CBES, a more detailed climate change related litigation risk scenario analysis was also performed in 2022. This considered the potential gross and net impact of climate change related litigation under three hypothetical scenarios.

Internal scenario analysis

In addition to the above, climate change related scenario analysis is performed in the syndicate’s ORSA, which encompasses natural catastrophe, market and liability risk. These scenarios provided valuable information for ongoing risk management given the long-term nature of climate change as a peril.

The findings from the scenarios have been integrated into:

•The internally developed ‘Brit View of Risk’ which is used to supplement natural catastrophe modelling software (relates to Natural catastrophe risk);

•Brit’s Property Catastrophe underwriting strategy, identifying the regions and perils most sensitive to climate change (relates to Natural catastrophe risk);

•Industry level exposure monitoring for Brit’s asset portfolio for ‘high risk’ sectors (relates to Natural catastrophe risk);

•Clarity on potential losses to be accounted for in underwriting and business planning decisions (relates to Natural catastrophe risk); and

•The ORSA process, to ensure climate change related risks are considered across relevant areas of the business (relevant to all risks).

ii.Geopolitical uncertainty and the global economic environment

Geopolitical uncertainties driven by factors such as US trade policy and the ongoing war in Ukraine have the potential to cause insurance losses for the Syndicate and disruption to financial markets which could impact the Syndicate’s investments.

These factors give rise to recessionary and inflationary risks, which may impact the frequency and cost of claims, investment results, the likelihood of counterparty defaults and the potential for operational risk events. Brit continues to actively monitor and respond to changes in the economic environment.

Brit has considered the impact of increased levels of inflation and an economic downturn. Brit continues to ensure that its pricing models adequately address current inflationary trends. Feeding into these models is an enhanced framework assessing the key drivers of claim settlement costs for each class of business. Inflationary impacts are also considered during the reserving process. Additionally, the investment portfolio is appropriately positioned amid the uncertainty with investment grade assets in excess of insurance liabilities, strong credit quality in the bond portfolio and the duration position materially consistent with the solvency matched position (immunising the solvency position against parallel movements in interest rates).

iii.Cyber risk

The cyber risk landscape continues to develop with cloud outages, increasingly sophisticated attack techniques such as ransomware as a service, increasing interconnectivity (such as networked critical infrastructure and cloud data storage), and the advancement of generative artificial intelligence (AI).

Brit has invested significantly in developing our understanding of cyber underwriting risk, including the potential drivers of aggregate loss events. Third-party vendor tools have been licensed, providing enhanced threat intelligence and data. The ongoing development of the cyber exposure management approach remains an area of focus given the evolving threat environment.

Similarly, Brit has invested significantly in our own cybersecurity. An annual risk-based evaluation is conducted to ensure Brit retains the capability to detect security vulnerabilities and safeguard our systems.

E.Capital Management

i.Capital framework at Lloyd’s

The Society of Lloyd’s (Lloyd’s) is a regulated undertaking and subject to supervision by the Prudential Regulatory Authority (PRA) under the Financial Services and Markets Act 2000, and in accordance with the Solvency UK Framework.

Within this supervisory framework, Lloyd’s applies capital requirements at member level and centrally to ensure that Lloyd’s complies with the Solvency UK requirements, 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 respectively, not at syndicate level. Accordingly, the capital requirement in respect of Syndicate 2987 is not disclosed in these financial statements.

ii.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 be comprised of one or more underwriting members of Lloyd’s. Each member is liable for its own share of underwriting liabilities on the syndicate(s) on which it participates but not other members’ shares. Accordingly, the capital requirements that Lloyd’s sets for each member operates on a similar basis.

Each member’s SCR shall thus be determined by the sum of the member’s share of the Syndicate SCR ‘to ultimate’. Where a member participates on more than one syndicate, a credit for diversification is provided to reflect the spread of risk, but consistent with determining an SCR which reflects the capital requirement to cover a 1 in 200 year loss ‘to ultimate’ for that member. Over and above this, Lloyd’s applies a capital uplift to the member’s capital requirement, known as the Economic Capital Assessment (ECA). The purpose of this uplift, which is a Lloyd’s not a Solvency UK requirement, is to meet Lloyd’s financial strength, licence and ratings objectives. The capital uplift applied for 2025 was 35% (2024: 35%) of the member’s SCR ‘to ultimate’.

iii.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), assets held and managed within a syndicate (funds in syndicate), or as the member’s share of the members’ balances on each syndicate on which it participates.

Accordingly, all of the assets less liabilities of the Syndicate, as represented in the member’s balances reported on the Statement of Financial Position, represent resources available to meet member and Lloyd’s capital requirements.

iv.Capital calculation

The SCR to Ultimate is calculated using a stochastic risk-based capital model developed by the Brit Group which allows the Board of the Managing Agent to identify an appropriate level of capital required. This capital requirement is specific to the actual reserving history, reinsurance programme and business profile of Syndicate 2987 rather than being based on company market averages. The Board of the Managing Agent reviews and approves all capital modelling submissions to Lloyd’s.

4.Analysis of underwriting result

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

2025

Gross premiums written$000

Gross premiums earned$000

Gross claims incurred$000

Gross operating expenses$000

Reinsurance balance$000

Underwriting result$000

Direct insurance

Accident and health

29,316

32,817

(15,388)

(14,554)

(1,957)

918

Motor (other classes)

(11,718)

11,691

(27)

Marine, aviation, and transport

192,863

189,126

(93,977)

(57,695)

(17,475)

19,979

Fire and other damage to property

653,036

650,814

(180,575)

(197,156)

(98,517)

174,566

Third party liability

598,460

612,899

(534,248)

(160,858)

22,896

(59,311)

Credit and suretyship

63,981

53,454

(20,389)

(15,133)

(10,790)

7,142

Total direct insurance

1,537,656

1,539,110

(856,295)

(445,396)

(94,152)

143,267

Reinsurance acceptances

1,325,713

1,312,073

(835,081)

(448,173)

(44,927)

(16,108)

Total

2,863,369

2,851,183

(1,691,376)

(893,569)

(139,079)

127,159

2024

Gross premiums written$000

Gross premiums earned$000

Gross claims incurred$000

Gross operating expenses$000

Reinsurance balance$000

Underwriting result$000

Direct insurance

Accident and health

51,058

51,740

(23,204)

(20,993)

(4,161)

3,382

Marine, aviation, and transport

198,131

201,349

(155,034)

(57,549)

12,450

1,216

Fire and other damage to property

656,866

599,319

(312,554)

(180,115)

(49,289)

57,361

Third party liability

598,637

609,861

(494,896)

(139,482)

(6,817)

(31,334)

Credit and suretyship*

56,999

58,004

(27,221)

(17,247)

(4,164)

9,372

Total direct insurance

1,561,691

1,520,273

(1,012,909)

(415,386)

(51,981)

39,997

Reinsurance acceptances

1,301,227

1,268,365

(665,908)

(411,487)

(89,666)

101,304

Total

2,862,918

2,788,638

(1,678,817)

(826,873)

(141,647)

141,301

*Note that this row was labelled ‘Miscellaneous’ in the 2024 Annual Accounts but has been updated to ‘Credit and Suretyship’ to better reflect the nature of the business written.

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

2025

Gross premiums written$000

Gross premiums earned$000

Gross claims incurred$000

Gross operating expenses$000

Reinsurance balance$000

Underwriting result$000

Additional analysis

Fire and damage to property of which is:

Specialities

37,500

40,522

(8,195)

(10,557)

(9,113)

12,657

Energy

23,766

21,681

(17,749)

(5,367)

(299)

(1,734)

Third party liability of which is:

Energy

1,305

1,433

(622)

(395)

(166)

250

2024

Gross premiums written$000

Gross premiums earned$000

Gross claims incurred$000

Gross operating expenses$000

Reinsurance balance$000

Underwriting result$000

Additional analysis

Fire and damage to property of which is:

Specialities

37,103

36,664

1,387

(10,077)

(11,904)

16,070

Energy

20,652

17,271

(11,630)

(4,291)

(825)

525

Third party liability of which is:

Energy

1,374

1,187

(2,322)

(362)

(138)

(1,635)

The gross premiums written for direct insurance by location of where the contracts were concluded is presented in the table below:

2025$000

2024$000

United Kingdom

1,537,656

1,561,691

Total gross premiums written

1,537,656

1,561,691

*This table has been updated since the prior year to align to the Lloyd’s Illustrative Accounts. In the prior year, the disclosure was based on the location of the underlying risk. The disclosure is now based on the location of where the contracts were concluded.

The geographical concentration of total gross written premium and net written premium, based on the location of the underlying risk, can be found in Note 3.A1.iii.

5.Net operating expenses

2025$000

2024$000

Acquisition costs

618,268

614,681

Change in deferred acquisition costs

(12,391)

(21,526)

Administrative expenses

259,620

212,382

Member’s standard personal expenses

28,072

21,336

Reinsurance commissions and profit participation

(103,159)

(108,340)

Net operating expenses

790,410

718,533

Total commissions for direct insurance business for the year amounted to:

2025$000

2024$000

Total commission for direct insurance business

361,362

370,219

The auditors’ remuneration charged to the Syndicate within the annual fixed fee charged by the Managing Agent and the auditors’ remuneration borne by another group company are as follows:

2025$000

2024$000

Auditors’ remuneration:

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

626

534

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

137

140

6.Staff numbers and costs

All staff in the UK are employed by the Brit Group services company, Brit Group Services Limited, and the full staff cost disclosures are included in the notes to those accounts. Amounts are recharged to the Syndicate as part of the annual fixed fee charged by the Managing Agent but are not separately identifiable.

7.Key management personnel compensation

Directors’ Remuneration

Remuneration of the Directors of Brit Syndicates Limited have been recharged to the Syndicate as part of the annual flat fee. It is not practical to allocate these amounts to the underlying entities to which the directors provide services. The following table therefore represents the total emoluments paid to directors by the managing agent. There were no advances or credit granted by the Managing Agent to any of its Directors during the year.

2025$000

2024$000

Directors’ emoluments

6,400

6,090

Underwriter’s Remuneration

The active underwriter received the following remuneration in respect of the Syndicate. This remuneration was paid to the active underwriter by the Managing Agent from the annual fixed fee it charged to the Syndicate.

2025$000

2024$000

Emoluments

1,165

1,131

8.Investment return

2025$000

2024$000

Interest and similar income

From financial instruments designated at fair value through profit or loss

Interest and similar income

116,467

111,878

Dividend income

4,720

3,661

Interest on cash at bank

16,118

13,776

Other income from investments

From financial instruments designated at fair value through profit or loss

Gains on the realisation of investments

73,916

108,595

Losses on the realisation of investments

(46,229)

(46,672)

Unrealised gains on investments

131,866

51,995

Unrealised losses on the investments

(37,620)

(94,287)

Investment management expenses

(10,884)

(10,169)

Total investment return

248,354

138,777

Transferred to the technical account from the non-technical account

248,354

138,777

9.Distribution and open years of account

A distribution to members of $368,674k will be proposed in relation to the closing year of account (

2023

) (2024: $399,037k distribution in relation to the closing year of account (

2022

)). The $399,037k distribution on the closure of the 2022 year of account was paid during 2025, with the majority of the distribution settled via a transfer of investments and $166k paid in cash.

10.Financial investments

Carrying value

Cost

2025$000

2024$000

2025$000

2024$000

Shares and other variable yield securities and units in unit trusts

631,013

546,836

505,031

485,506

Debt securities and other fixed income securities

2,815,389

2,588,500

2,764,559

2,600,1677

Derivative assets

1,737

9,124

9,573

22,492

Syndicate loans to central fund

26,792

Total financial investments

3,448,139

3,171,252

3,279,163

3,134,9577

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

2025$000

2024$000

Listed investments

3,013,343

2,641,500

All financial investments have been designated as held at fair value through profit or loss:

2025$000

2024$000

Financial assets measured at fair value through profit or loss

3,448,139

3,171,252

Total financial investments

3,448,139

3,171,252

The Syndicate classifies its financial instruments held at fair value in its balance sheet using a fair value hierarchy based on the inputs used in the valuation techniques as follows:

•Level 1 – financial assets that are measured by reference to published quotes in an active market. A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service or regulatory agency and those prices represent actual and regularly occurring market transactions on an arm’s length basis.

•Level 2 – financial assets measured using a valuation technique based on assumptions that are supported by prices from observable current market transactions. For example, assets for which pricing is obtained via pricing services but where prices have not been determined in an active market, financial assets with fair values based on broker quotes, investments in private equity funds with fair values obtained via fund managers and assets that are valued using the Syndicate’s own models whereby the significant inputs into the assumptions are market observable.

•Level 3 – financial assets measured using a valuation technique (model) based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data. Therefore, unobservable inputs reflect the Syndicate's own assumptions about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk). These inputs are developed based on the best information available, which might include the Syndicate’s own data.

For assets and liabilities that are recognised at fair value on a recurring basis, the Syndicate determines whether transfers have occurred between levels in the hierarchy by reassessing categorisation (based on the lowest level of input that is significant to the fair value measurement as a whole) at the end of each reporting period.

Fair values for level two and level three assets include:

•Values provided at the request of the Syndicate by pricing services and which are not publicly available or values provided by external parties which are readily available but relate to assets for which the market is not always active; and

•Assets measured on the basis of valuation techniques including a varying degree of assumptions supported by market transactions and observable data.

For all assets not quoted in an active market or for which there is no active market, the availability of financial data can vary and is affected by a wide variety of factors, including the type of financial instrument, whether it is new and not yet established in the marketplace, and other characteristics specific to each transaction. To the extent that valuation is based on the models or inputs that are unobservable in the market, the determination of fair value requires more judgement. Accordingly, the degree of judgement exercised is higher for instruments classified in level three and the classification between level two and level three depends highly on the proportion of assumptions used, supported by market transactions and observable data.

The table below analyses financial instruments held at fair value between the three levels in the fair value hierarchy:

2025

Level 1$000

Level 2$000

Level 3$000

Total$000

Shares and other variable yield securities and units in unit trusts

209,699

134,453

286,861

631,013

Debt securities and other fixed income securities

2,720,890

82,754

11,745

2,815,389

Derivative assets

521

1,216

1,737

Total financial investments

2,930,589

217,728

299,822

3,448,139

Derivative liabilities

(5,166)

Total

2,930,589

212,562

299,822

3,442,973

2024

Level 1$000

Level 2$000

Level 3$000

Total$000

Shares and other variable yield securities and units in unit trusts

148,320

107,101

291,415

546,836

Debt securities and other fixed income securities

1,911,751

666,394

10,355

2,588,500

Derivative assets

7,404

1,720

9,124

Syndicate loans to central fund

26,792

Total financial investments

2,060,071

780,899

330,282

3,171,252

Derivative liabilities

(3,150)

Total

2,060,071

777,749

330,282

3,168,102

Information on the methods and assumptions used to determine fair values for each major category of financial instrument measured at fair value is provided below.

Level 1 - These represent assets traded in an active market whose quoted price is readily and regularly available and those prices represent actual and regular transactions on an arm’s length basis.

Level 2 - Inputs include directly or indirectly observable inputs (other than level one inputs) such as quoted prices for similar financial instruments exchanged in active markets, quoted prices for identical or similar financial instruments exchanged in inactive markets and other market observable inputs.

Level two securities contain certain investments in US and non-US government agency securities, US and non-US corporate debt securities and specialised investment funds. US government agency securities are priced using valuations from independent pricing vendors who use discounted cash flow models supplemented with market and credit research to gather specific information. Market observable inputs for these investments may include broker-dealer quotes, reported trades, issuer spreads and available bids. Non-US government agency securities are priced with over-the-counter (OTC) quotes or broker-dealer quotes. Other market observable inputs include benchmark yields and reported trades. Issuer spreads are also available for these types of investments.

US and non-US corporate debt securities are investment grade and the information collected during pricing of these instruments includes credit data as well as other observations from the market and the particular sector. Prices for all these securities are based on a limited number of transactions (OTC prices/broker-dealer quotes) so they are derived indirectly using inputs that can be corroborated by observable market data. These also include certain private placement corporate debt securities which are valued with the use of discounted cash flow models.

Level two specialised investment funds contain credit opportunities funds that are valued based on the underlying assets in the fund on a security-by-security basis. A number of direct and indirect inputs

such as benchmark yield curves, credit spreads, estimated default rates, anticipated market interest rate volatility, coupon rates and anticipated timing of principal repayments are considered during their valuation.

Level 3 - Level three securities contain investments in private equity/limited partnerships/debt where the fund’s underlying investments are not traded/quoted in an active market. Pricing models factor in interest rates, bond or credit swap spreads and volatility.

Level three specialised investment funds include securities that are valued using techniques appropriate to each specific investment. The valuation techniques include fair value by reference to net asset values (NAVs) adjusted and issued by fund managers based on their knowledge of underlying investments and credit spreads of counterparties. In some instances, certain investment funds are classified as level three because they may require at least three months’ notice to liquidate. This requirement results in an adjustment to the reported value for illiquidity which is unobservable.

Level three equities include investments in limited partnerships where the fund’s underlying investments are not traded/quoted in an active market. In some instances, limited partnerships are classified as level three because they may require at least three months of notice to liquidate. This requirement results in an adjustment to the reported value for illiquidity which is unobservable.

The Syndicate loans to the Central Fund which were in place from 2019 to 2025 were classified as an equity share for which the fair value could not be determined using direct or indirect observable inputs and were therefore classified as Level 3. The final tranche of these loans was repaid during 2025.

11.Derivatives

The Syndicate purchases derivative financial instruments:

i.To hedge its foreign currency exposure on future commitments; and

ii.As part of its investment management strategy.

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

2025Notional amount$000

2025Fair value$000

2024Notional amount$000

2024Fair value$000

Foreign exchange forward contracts

(4,645)

4,254

Other

1,558,242

1,216

3,297,075

1,720

Total

1,553,597

(3,429)

3,301,329

5,974

The hierarchy of fair values of derivative contracts is included within the Fair Value Hierarchy in the Financial Investments note above.

Included in other derivatives are equity warrants and inflation floor options. At 31 December 2025 the fair value of the equity warrants was $1,216k (2024: $1,720k) and the fair value of the inflation floor options was $nil (2024: $nil).

12.Provision for unearned premium

The table below shows changes in the unearned premium balances from the beginning of the period to the end of the period:

2025

2024

Gross $000

Reinsurers’ Share$000

Net$000

Gross $000

Reinsurers’ Share$000

Net$000

Unearned premiums

Balance at 1 January

1,230,653

(347,937)

882,716

1,168,695

(420,113)

748,582

Premiums written during the year

2,863,369

(882,169)

1,981,200

2,862,918

(888,282)

1,974,636

Premiums earned during the year

(2,851,183)

)

873,323

(1,977,860)

)

(2,788,638)

)

956,464

(1,832,174))

Foreign exchange movements

25,270

(7,701)

17,569

(12,322)

3,994

(8,328)

Balance at 31 December

1,268,109

(364,484)

903,625

1,230,653

(347,937)

882,716

13.Claims Outstanding

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

2025

2024

Gross$000

Reinsurers’ Share$000

Net$000

Gross$000

Reinsurers’ Share$000

Net$000

Claims outstanding

Balance at 1 January

5,945,934

(2,810,233)

3,135,701

5,636,392

(2,774,864)

2,861,528

Claims paid during the year

(1,526,617)

)

735,342

(791,275)

)

(1,317,844)

)

643,658

(674,186)

Claims incurred in relation to current underwriting year

865,589

(283,104)

582,485

886,092

(299,573)

586,519

Claims incurred in relation to prior underwriting years

825,787

(347,981)

477,806

792,725

(406,904)

385,821

Foreign exchange movements

98,115

(53,308)

44,807

(51,431)

27,450

(23,981)

Balance at 31 December

6,208,808

(2,759,284)

3,449,524

5,945,934

(2,810,233)

3,135,701

The claims outstanding balance at the end of the period can be analysed between reported claims and incurred but not reported provisions as follows:

2025

2024

Gross$000

Reinsurers’ Share$000

Net$000

Gross$000

Reinsurers’ Share$000

Net$000

Claims outstanding

Claims reported and loss adjustment expenses

1,745,514

(812,897)

932,617

1,839,088

(871,652)

967,436

Claims incurred but not reported provisions

4,463,294

(1,946,387)

2,516,907

4,106,846

(1,938,581)

2,168,265

Balance at 31 December

6,208,808

(2,759,284)

3,449,524

5,945,934

(2,810,233)

3,135,701

14.Claims Development

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

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

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

Gross:

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Total

Pure underwriting year

$000

Estimate of gross claims

at end of underwriting year

531,678

907,800

820,969

646,452

806,545

847,544

1,031,001

775,3055

894,8955

870,025

One year later

1,240,4299

1,646,8655

1,511,5611

1,407,9555

1,441,3422

1,620,3555

1,674,239

1,394,501

1,672,657

Two years later

1,367,422

1,719,166

1,670,054

1,477,559

1,509,458

1,644,110

1,675,630

1,406,914

Three years later

1,352,488

1,748,805

1,640,470

1,483,017

1,541,927

1,642,646

1,653,762

Four years later

1,367,405

1,737,016

1,662,762

1,547,630

1,556,679

1,616,612

Five years later

1,397,246

1,761,611

1,709,241

1,544,207

1,522,917

Six years later

1,427,426

1,779,926

1,790,578

1,571,748

Seven years later

1,459,382

1,812,553

1,819,175

Eight years later

1,483,706

1,838,135

Nine years later

1,495,924

Estimate of gross claims reserve

1,495,924

1,838,135

1,819,175

1,571,748

1,522,917

1,616,612

1,653,762

1,406,914

1,672,657

870,025

15,467,869

Provision in respect of prior years

421,832

Less gross claims paid

(1,326,086)

)

(1,624,921)

)

(1,548,186)

)

(1,178,548)

)

(1,142,534)

)

(1,029,798)

)

(885,043))

(510,549)

)

(386,051)

)

(49,177)

)

(9,680,893)

Gross claims reserve

169,838

213,214

270,989

393,200

380,383

586,814

768,719

896,365

1,286,606

820,848

6,208,808

Net:

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Total

Pure underwriting year

$000

Estimate of net claims

at end of underwriting year

335,407

464,621

473,740

367,789

470,455

464,829

584,336

447,678

591,997

585,398

One year later

732,624

818,591

849,751

797,048

756,636

871,960

952,103

815,098

1,062,972

Two years later

773,628

854,915

931,940

817,766

786,402

878,505

953,494

826,230

Three years later

772,269

875,817

836,128

833,144

797,764

872,300

947,852

Four years later

771,929

810,208

836,030

864,346

801,587

862,287

Five years later

737,225

809,131

847,122

858,721

780,622

Six years later

748,363

813,225

858,952

871,159

Seven years later

760,513

820,338

870,375

Eight years later

766,080

828,153

Nine years later

770,284

Estimate of net claims reserves

770,284

828,153

870,375

871,159

780,622

862,287

947,852

826,230

1,062,972

585,398

8,405,332

Provision in respect of prior years

197,9144

Less net claims paid

(710,846)

(754,437)

(753,577)

(626,144)

(589,165)

(564,766)

(537,573)

(325,118)

(255,533)

(36,563)

(5,153,722)

)

Net claims reserve

59,438

73,716

116,798

245,015

191,457

297,521

410,279

501,112

807,439

548,835

3,449,524

*The 2020 and prior years of account have been impacted by the loss portfolio reinsurance contracts entered into in the 2018 and 2021 calendar years with Riverstone Managing Agency Limited (for and on behalf of Lloyd’s Syndicate 3500).

15.Debtors arising out of direct insurance operations

2025$000

2024$000

Due within one year

842,125

932,237

Due after one year

Total

842,140

932,240

16.Debtors arising out of reinsurance operations

2025$000

2024$000

Due within one year

514,241

538,808

Due after one year

222

237

Total

514,463

539,045

17.Other debtors

2025$000

2024$000

Taxation

148

1,917

Total

148

1,917

The other debtors balances are due within one year.

18.Cash and cash equivalents

2025$000

2024$000

Cash at bank and in hand

76,947

4,251

Short term deposits

136,008

89,825

Total cash and cash equivalents

212,955

94,076

Cash and cash equivalents comprises cash at bank and in hand and short term deposits. Short term deposits include liquidity and money market funds and are presented within Financial Investments on the Statement of Financial Position.

Included within cash and cash equivalents are the following amounts which are not available for use by the Syndicate because they are held in regulated bank accounts in overseas jurisdictions:

2025$000

2024$000

Cash at bank and in hand

69,539

1,586

Short term deposits

35,905

13,032

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

105,444

14,618

19.Other assets

Other assets comprises only overseas deposits which are lodged as a condition of conducting underwriting business in certain countries.

20.Deferred acquisition costs

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

2025

2024

Gross$000

Reinsurance$000

Net$000

Gross$000

Reinsurance$000

Net$000

Balance at 1 January

290,955

(38,323)

252,632

272,502

(42,501)

230,001

Incurred deferred acquisition costs

618,268

(104,380)

513,888

614,681

(104,550)

510,131

Amortised deferred acquisition costs

(605,877)

103,159

(502,718)

)

(593,155)

108,340

(484,815)

)

Foreign exchange movements

6,994

(779)

6,215

(3,073)

388

(2,685)

Balance at 31 December

310,340

(40,323)

270,017

290,955

(38,323)

252,632

The reinsurers’ share of deferred acquisition costs is included within Accruals and deferred income in the Statement of Financial Position.

21.Creditors arising out of direct insurance operations

2025$000

2024$000

Due within one year

51,014

64,866

Total

51,014

64,866

22.Creditors arising out of reinsurance operations

2025$000

2024$000

Due within one year

546,094

584,885

Total

546,094

584,885

23.Other creditors

2025$000

2024$000

Other related party balances (non-syndicates)

2,171

1,023

Derivative liabilities

5,166

3,150

Investment Payables

863

1,638

Total

8,200

5,811

All other creditors balances are due within one year.

24.Accruals and Deferred Income

2025$000

2024$000

Reinsurers’ share of deferred acquisition costs

40,323

38,323

Accruals and deferred income

1,487

1,802

Total

41,810

40,125

25.Restatement of the Statement of Cash Flows

The Statement of Cash Flows has been restated to include certain cash purchases of investments which had previously been treated as non-cash items, and to correct the amount of the distribution which was paid in cash (with the remainder settled via investments). This restatement has no impact on the total distribution value, the net increase in cash and cash equivalents, the Income Statement or the Statement of Financial Position. The balances within the Statement of Cash Flows which are impacted by this restatement are set out below:

Original Balance

$000

Adjustment$000

Restated Balance

$000

Purchase of equity and debt instruments

(2,541,721)

(46,145)

(2,587,866)

Distribution

(105,809)

46,145

(59,664)

26.Related parties

a.Group Companies

(i)Fairfax Financial Holdings Limited (FFHL)

In June 2015, the parent company of the Managing Agent was acquired by FFHL Group Limited, a subsidiary of FFHL. The Syndicate has historically entered into various reinsurance arrangements with affiliates of FFHL.

In respect of insurance and ceded outwards reinsurance activity, the amounts included in the income statement relating to trading with affiliates of FFHL were as follows:

2025$000

2024$000

Gross premiums written

18,620

13,984

Outwards reinsurance premiums

(50,142)

(9,779)

Premiums written, net of reinsurance

(31,522)

4,205

Change in provision for gross unearned premiums

124

4,169

Change in provision for unearned premiums, reinsurers’ share

4,300

(2,706)

Net change in provision for unearned premiums

4,424

1,463

Earned premiums, net of reinsurance

(27,098)

5,668

Gross claims paid

(6,336)

(10,077)

Reinsurers’ share of claims paid

9,982

5,649

Claims paid, net of reinsurance

3,646

(4,428)

Change in the provision for claims, gross amount

(602)

(4,185)

2025$000

2024$000

Change in the provision for claims, reinsurers’ share

7,607

3,628

Net change in the provision for claims

7,005

(557)

Commission income

2,716

506

Commission expense

(5,098)

(2,051)

The amounts included in the statement of financial position outstanding with affiliates of FFHL as at the respective year ends were as follows:

2025$000

2024$000

Debtors arising out of direct insurance and reinsurance operations:

Insurance premium receivable

7,666

6,082

Recoverable from reinsurers

35,872

32,898

Creditors arising out of direct insurance and reinsurance operations:

Payable to reinsurers

(18,431)

(2,435)

Unpaid claims liabilities

(45,809)

(48,083)

Deferred acquisition costs

2,153

1,349

Gross unearned premiums

(11,141)

(12,508)

Unearned premium recoverable from reinsurers

7,254

3,036

(ii)Brit UW Limited

Brit UW Limited, a subsidiary of the Brit Group and the sole corporate member of Syndicate 2987, provided £2,099,143k capacity in Sterling in respect of the 2025 year of account (2024: £2,001,433k). Refer to note 27 for further information on how capacity is funded by the member.

(iii)Brit Syndicates Limited (BSL or the Managing Agent)

The Managing Agent is a wholly-owned subsidiary of Brit Insurance Holdings Limited, which in turn is a subsidiary of Brit Group Holdings Limited. During the year, the Syndicate paid fees to BSL amounting to $221,373k (2024: $178,040k). As at 31 December 2025, no amounts were outstanding (2024: $nil). The Syndicate also participates and leads on various Lloyd’s consortia. During the year, the Syndicate incurred consortia management fees of $13,538k (2024: $8,257k) and no technical advisor fees or profit commission to BSL in respect of the consortia arrangements (2024: $nil).

(iv)Brit Reinsurance (Bermuda) Limited (Brit Re)

During the year, the Syndicate ceded reinsurance premiums to Brit Re amounting to $349,178k (2024: $359,504k). As at 31 December 2025, the Syndicate owed $178,521k of premiums to Brit Re (2024: $200,804k). Collateral available for immediate drawdown in the event of a default includes collateral for Brit Re of up to $1,013,948k (2024: $809,725k).

(v)BGS Services (Bermuda) Limited

During the year, the Syndicate paid commissions to BGS Services (Bermuda) Limited, a service company within the Brit Group Holdings Limited Group, amounting to $5,206k (2024: $4,665k). As at 31 December 2025, there is nil commission outstanding (2024: $nil). As at 31 December 2025, BGS Services (Bermuda) Limited owed $16,031k of premiums to the Syndicate (2024: $14,373k).

b.Syndicate 2988

In December 2016, Brit Syndicates Limited received approval from Lloyd’s to set up Syndicate 2988 and underwrite from the 2017 year of account onward. Syndicate 2988 participates primarily on new and renewal business written by Syndicate 2987. During the year Syndicate 2988 paid commission to Syndicate 2987, in relation to inter-company quota share agreements. The amounts in the income statement relating to trading with Syndicate 2988 included commission owed to Syndicate 2988 for transferring insurance risk of $80k (2024: $259k). As at 31 December 2025, no amounts of commission were outstanding (2024: $nil). As at 31 December 2025, Syndicate 2987 owed $2,326k (2024: $9,257k) of premium to Syndicate 2988.

c.Camargue Underwriting Managers Proprietary Limited

On 30 August 2016, the Brit Group acquired 50% of the share capital of the South African company, Camargue Underwriting Managers Proprietary Limited (Camargue) and also entered into a call and a put option to purchase the remaining 50% in 2021. On 4 October 2021, Camargue became a 100% subsidiary of the Group and ceased to be an associated undertaking. Camargue is a leading managing general underwriter of a range of specialised insurance products and specialist liability solutions in South Africa and is an important trading partner for Brit. Trading with Camargue is undertaken on an arm’s length basis and is settled in cash.

The amounts in the income statement relating to trading with Camargue for the year ended 31 December 2025 included commission for introducing business of $2,901k (2024: $2,537k).

Amounts recorded in the statement of financial position in respect of premium net of commissions due from, and fees payable to, Camargue as at 31 December 2025 and 2024 were not material.

d.Sutton Specialty Risk Inc

On 2 January 2019, Brit Insurance Holdings Limited acquired 49% of the issued shares of Sutton Specialty Risk Inc (Sutton). Sutton is a Canadian MGU, specialising in Accident and Health business. The 49% shareholding in Sutton was sold on 8 March 2024 to Amynta. Sutton is therefore no longer a related party and no transactions or balances relating to 2025 have been disclosed.

Trading with Sutton is undertaken on an arm’s length basis and is settled in cash. The amounts in the income statement relating to trading with Sutton for the year ended 31 December 2024 included commission for introducing insurance business of $970k.

Amounts recorded in the statement of financial position in respect of premium net of commissions due from, and fees payable to, Sutton as at 31 December 2024 were not material.

e.Directors of Brit Syndicates Limited

For information relating to the remuneration of the Directors of Brit Syndicates Limited, refer to note 7.

There are no related party Directors disclosures to note for the year ended 31 December 2025, nor for the comparative year ended 31 December 2024.

27.Funds at Lloyd’s

Every member is required to provide capital at Lloyd’s which is held in trust and known as funds at Lloyd’s (FAL). These funds are intended primarily to cover circumstances where Syndicate assets prove insufficient to meet participating members’ underwriting liabilities.

The level of FAL that Lloyd’s requires a member to maintain is determined by Lloyd’s based on the UK Prudential Regulation Authority (PRA) requirements and resource criteria. The determination of FAL has regard to a number of factors including, but not limited to, the nature and amount of risk to be underwritten by the members and the assessment of the reserving risk in respect of business that has been underwritten. Since FAL is not under the control of the Managing Agent, no amount has been shown in these financial statements by way of such capital resources. However, the Managing Agent is able to make a call on the members’ FAL to meet liquidity requirements or to settle losses.

28.Ultimate holding company

The Managing Agent is a wholly owned subsidiary of Brit Insurance Holdings Limited, a company registered in England and Wales. The intermediate holding company, in which the Managing Agent’s result is consolidated, is Brit Group Holdings Limited (Brit), a company registered in England and Wales. Copies of Brit’s consolidated accounts can be obtained by writing to The Leadenhall Building, 122 Leadenhall Street, London EC3V 4AB, or from the website www.britinsurance.com.

The ultimate parent undertaking at the year-end is Fairfax Financial Holdings Limited (Fairfax), a company registered in Toronto. Copies of Fairfax consolidated accounts can be obtained by writing to 95 Wellington Street West, Suite 800, Toronto, Ontario, Canada, M5J 2N7 or from the website