Important information about syndicate Reports and Accounts
Important information about Syndicate Reports and Accounts Access to this document is restricted to persons
who have given the certification set forth below. If this document has been forwarded to you and you have not
been asked to give the certification, please be aware that you are only permitted to access it if you are able
to give the certification.
The syndicate reports and accounts set forth in this section of the Lloyd’s website, which have been filed with
Lloyd’s in accordance with the Syndicate Accounting Byelaw (No. 8 of 2005), are being provided for
informational purposes only. The syndicate reports and accounts have not been prepared by Lloyd’s, and
Lloyd’s has no responsibility for their accuracy or content. Access to the syndicate reports and accounts is not
being provided for the purposes of soliciting membership in Lloyd’s or membership on any syndicate of Lloyd’s,
and no offer to join Lloyd’s or any syndicate is being made hereby. Members of Lloyd’s are reminded that past
performance of a syndicate in any syndicate year is not predictive of the related syndicate’s performance in
any subsequent syndicate year.
You acknowledge and agree to the foregoing as a condition of your accessing the syndicate reports and
accounts. You also agree that you will not provide any person with a copy of any syndicate report and accounts
without also providing them with a copy of this acknowledgment and agreement, by which they will also be
bound.
Syndicate 1225 For the year ended 31 December 2025
Syndicate 1225
Annual Report and Financial Statements
For the Year Ended 31 December 2025
Contents
Page
Financial highlights
1
Report of the directors of the Managing Agent
2
Strategic report of the directors of the Managing Agent
4
Independent auditor’s report
6
Statement of total comprehensive income
9
Balance sheet
11
Statement of changes in members’ balances
13
Statement of cash flows
14
Notes to the financial statements
15
Administration
37
Syndicate 1225 For the year ended 31 December 2025
1
Financial highlights
$306.8m
: $306.8m)
$1,125.2m generated in the last five years. The
syndicate continues to be a top quartile Lloyd’s
performer.
ross written premium $1,290.7m
: $1,290.7m)
s increased gross written premium by $221.7m in the
last five years.
Total comprehensive income $390.9m
(2024 restated: $306.8m)
A cumulative profit of $1,209.3m generated in the last
five years. The syndicate continues to be a top quartile
Lloyd’s performer.
Gross written premium $1,291.4m
(2024 restated: $1,290.7m)
Focus on a quality and diversified underwriting portfolio
has increased gross written premium by $222.4m in the
last five years.
Combined ratio 72.9%
(2024 restated 75.8%)
Positive result reflecting harder rating conditions, and
low attritional and large loss experience. The average
combined ratio for the last five years is 79.2%.
Investment return $96.8m
(2024 restated: $72.3m)
A favourable investment market has generated
profitable investment returns. Total return in the year of
5.70% (2024 restated: 4.47%).
Five year financial performance
$ million
2025
2024
restated
2023
restated
2022
restated
2021
restated
Gross written premium
1,291.4
1,290.7
1,294.4
1,174.2
1,069.0
Underwriting profit
1
297.9
244.4
202.7
144.0
125.8
Investment return
96.8
72.3
78.0
(36.8)
(3.3)
Foreign exchange gains/(losses)
(3.8)
(9.8)
(15.1)
18.2
(1.9)
Total comprehensive income
390.9
306.8
265.6
125.4
120.6
Combined ratio
2
72.9%
75.8%
79.4%
83.8%
83.9%
Lloyd’s Ratings
A+ (Superior) from A.M. Best
3
AA- (Very Strong) from Fitch
3
AA- (Very Strong) from Standard & Poor’s
3
1
Underwriting profit is the balance on the technical account less investment return
2
The combined ratio is derived as follows:
(Claims incurred, net of reinsurance + net operating expenses)
Earned premiums, net of reinsurance
3
Current insurer financial strength ratings of Lloyd’s of London
Syndicate 1225 For the year ended 31 December 2025
2
Report of the directors of the Managing Agent
The directors of the Managing Agent, AEGIS Managing Agency Limited (the “Managing Agent”), present their annual report
and audited financial statements for Syndicate 1225 (the “syndicate”) for the year ended 31 December 2025.
The syndicate is, through intermediate holding companies, a wholly aligned syndicate of Associated Electric & Gas Insurance
Services Limited (“AEGIS”) incorporated in Bermuda.
1. Directors’ Report
Executive Directors
Non-Executive Directors
A J P Powell
Chief Executive Officer
M L Bride
K A Wade
Chief Financial Officer
R M Blue****
M C Yeldham
Chief Underwriting Officer
T G S Busher
(Non-Executive Chairman)
W P Cullen*
C D Forbes***
A M Gibbs
J G Gray
C Lau
M L Onslow**
W W von Schack
The directors of the Managing Agent who have served in the period and up to the date of signing, except as noted below,
are shown above.
* William Cullen was appointed as Non-Executive Director on 12 February 2025.
**Michael Onslow resigned as Non-Executive Director on 31 March 2025.
***Christopher Forbes resigned as Non-Executive Director on 31 December 2025.
****Robert Blue was appointed as Non-Executive Director on 12 February 2026.
Going concern
After making enquiries, the directors have a reasonable expectation that the syndicate has adequate resources to continue in
operational existence for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis for
preparing the annual report and financial statements.
Future developments
Our strategy is the pursuit of underwriting excellence with the themes of preserve, position and prosper whilst achieving a
sustainable profit. We aim to deliver strong returns on capital, providing diversification and low volatility for our capital provider.
We will continue to trade independently in the Lloyd’s market as part of AEGIS, maintaining our market leading claims service
and enhancing our relevance to customers through increased digital product development and distribution.
Use of financial instruments
In relation to the use of financial instruments, the financial risk management objectives, and policies of the syndicate, as well
as the exposure of the syndicate to risk, are discussed in note 2 to these financial statements.
Disclosure of information to auditor
Each director at the date of approval of this report confirms that:
• so far as the director is aware, there is no relevant audit information of which the syndicate’s auditor is unaware;
and
• the director has taken all the steps that he or she ought to have taken as a director in order to make himself or
herself aware of any relevant audit information and to establish that the syndicate’s auditor is aware of that
information.
This confirmation is given and should be interpreted in accordance with the provision of s418 of the Companies Act 2006.
Syndicate 1225 For the year ended 31 December 2025
3
Report of the directors of the Managing Agent continued
Independent auditor
The auditor for the year ended 31 December 2025 was Deloitte LLP and they have been re-appointed for another term.
2. Managing Agent’s responsibilities statement
The directors of the Managing Agent are responsible for preparing the syndicate annual report and financial statements in
accordance with applicable law and regulations.
The Insurance Accounts Directive (Lloyd’s syndicate and Aggregate Accounts) Regulations 2008 (“the Regulations”) require
the Managing Agent to prepare syndicate annual report and financial statements as at 31 December each year in accordance
with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards FRS 102 - The
Financial Reporting Standard applicable in the UK and Republic of Ireland (“FRS 102”), FRS 103 - Insurance Contracts
(“FRS 103”) and applicable law). The annual report and financial statements 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 and loss for that year.
In preparing the syndicate annual report and financial statements, the Managing Agent is required to:
• select suitable accounting policies which are applied consistently, subject to changes arising on the adoption of
new accounting standards in the year;
• make judgements and estimates that are reasonable and prudent;
• state whether applicable United Kingdom Accounting Standards have been followed; and
• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the syndicate
will continue in business.
The directors of the Managing Agent are responsible for keeping adequate accounting records that disclose with reasonable
accuracy at any time the financial position of the syndicate and to ensure that the syndicate annual report and financial
statements comply with the 2008 Regulations. Directors of the Managing Agent are also responsible for safeguarding the
assets of the syndicate and hence for taking reasonable steps for the prevention and detection of fraud and other
irregularities.
We confirm that to the best of our knowledge that 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 issued by Lloyd’s, as
modified by the Frequently Asked Questions version 1.1.
Approved by the Board of directors of AEGIS Managing Agency Limited on 12 February 2026 and signed on its behalf by:
A J P Powell
Chief Executive Officer
19 February 2026
Syndicate 1225 For the year ended 31 December 2025
4
Strategic report of the directors of the Managing Agent
Principal activity and review of the business
The principal activity of the syndicate remains the transaction of specialist insurance and reinsurance business across more
than 20 classes underwritten within the Lloyd’s of London insurance market. The total premium written for the year ended
31 December 2025 was $1,291,373k which saw an increase of $681k from 2024. A significant proportion of the syndicate’s
underwriting is sourced from North America.
Total comprehensive income
The syndicate recorded its twentieth successive year of underwriting profit. Total comprehensive income of $390,852k (2024
restated: $306,844k) is driven by underwriting profit of $297,854k (2024 restated: $244,367k). It continues to maintain
underwriting discipline, prudent management of risk and careful control over expenses. The historic performance of the
syndicate reflects the fact that the Managing Agent has managed its risk selection wisely, has refused to write business in
areas that are under-priced relative to their volatility and has maintained strong relationships with both its clients and brokers.
Investment income
A favourable investment market contributed to a positive investment result due to good performance in fixed income
investments, short term fund investments and equity holdings. The investment income gross of investment management
fees and before foreign exchange effects, as a percentage of the average investable assets, is 5.70% for 2025 (2024:
4.47%).
The total cash, overseas deposits and financial investments of the syndicate at 31 December 2025 were $1,814,422k (2024
restated: $1,745,561k), comprised of:
2025
2024 restated
2025
2024
$000
$000
% of Total
% of Total
Financial Investments
1,696,476
1,628,332
94%
93%
Overseas deposits
75,484
70,439
4%
4%
Cash
42,462
46,789
2%
3%
TOTAL
1,814,422
1,745,560
Principal risks and uncertainties
The syndicate has sufficient financial resources to meet its financial needs and manages a mature portfolio of insurance risk
through an experienced and stable team. The directors of the Managing Agent believe that the syndicate is well positioned
to manage its business risks; refer to note 2 of these financial statements.
Climate change
The directors are aware of climate change and its potential to impact the principal risks affecting the business. As part of its
risk management framework, and through the existing enterprise risk management infrastructure, the directors of the
Managing Agent monitor the potential impact of climate change through the analysis of various scenarios, predominantly
through the Own Risk and Solvency Assessment processes; refer to note 2 of these financial statements.
Key performance indicators
The Managing Agent’s strategy is the pursuit of underwriting excellence whilst achieving a sustainable profit. Profitability is
noted as a key performance indicator, as shown on page 1 of these financial statements.
Syndicate 1225 For the year ended 31 December 2025
5
Strategic report of the directors of the Managing Agent continued
Use of financial instruments
In relation to the use of financial instruments, see note 2 of these financial statements.
Approved by the Board of directors of AEGIS Managing Agency Limited on 12 February 2026 and signed on its behalf by:
A J P Powell
Chief Executive Officer
19 February 2026
Syndicate 1225 For the year ended 31 December 2025
6
Independent auditor’s report to the members of syndicate 1225
Report on the audit of the syndicate annual financial statements
Opinion
In our opinion the syndicate annual financial statements of Syndicate 1225 (the ‘syndicate’):
• give a true and fair view of the state of the syndicate’s affairs as at 31 December 2025 and of its profit for the year
then ended;
• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice,
including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic
of Ireland”; and
• have been prepared in accordance with the requirements of The Insurance Accounts Directive (Lloyd’s Syndicate
and Aggregate Accounts) Regulations 2008 and sections 1 and 5 of the Syndicate Accounts Instructions Version
3.1 as modified by the Frequently Asked Questions Version [1.1] issued by Lloyd’s (the “Lloyd’s Syndicate Accounts
Instructions”).
We have audited the syndicate annual financial statements which comprise:
• the statement of comprehensive income;
• the balance sheet;
• the statement of changes in members’ balances;
• the cash flow statement; and
• the related notes 1 to 20.
The financial reporting framework that has been applied in their preparation is applicable law, United Kingdom Accounting
Standards, including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic
of Ireland” (United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)), applicable law and the
Syndicate Accounts Instructions. Our responsibilities under those standards are further described in the auditor's
responsibilities for the audit of the syndicate annual financial statements section of our report.
We are independent of the syndicate in accordance with the ethical requirements that are relevant to our audit of the
syndicate annual financial statements in the UK, including the Financial Reporting Council’s (the ‘FRC’s’) Ethical Standard,
and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the Managing Agent’s use of the going concern basis of
accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that,
individually or collectively, may cast significant doubt on the syndicate’s ability to continue in operations for a period of at
least twelve months from when the syndicate financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Managing Agent with respect to going concern are described in the relevant
sections of this report.
Other information
The other information comprises the information included in the annual report, other than the syndicate annual financial
statements and our auditor’s report thereon. The Managing Agent is responsible for the other information contained within
the annual report. Our opinion on the syndicate annual financial statements does not cover the other information and, except
to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially
inconsistent with the syndicate annual financial statements or our knowledge obtained in the course of the audit, or otherwise
appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are
required to determine whether this gives rise to a material misstatement themselves. If, based on the work we have
performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Syndicate 1225 For the year ended 31 December 2025
7
Independent auditor’s report to the members of syndicate 1225
continued
Responsibilities of Managing Agent
As explained more fully in the managing agent’s responsibilities statement, the Managing Agent is responsible for the
preparation of the syndicate annual financial statements and for being satisfied that they give a true and fair view, and for
such internal control as the Managing Agent determines is necessary to enable the preparation of syndicate annual financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the syndicate annual financial statements, the Managing Agent is responsible for assessing the syndicate’s
ability to continue in operation, disclosing, as applicable, matters related to the syndicate’s ability to continue in operation
and to use the going concern basis of accounting unless the Managing Agent intends to cease the syndicate’s operations,
or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the syndicate annual financial statements
Our objectives are to obtain reasonable assurance about whether the syndicate annual financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs
(UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these syndicate annual financial statements.
A further description of our responsibilities for the audit of the syndicate annual financial statements is located on the FRC’s
website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with
our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent
to which our procedures are capable of detecting irregularities, including fraud is detailed below.
We considered the nature of the syndicate and its control environment, and reviewed the syndicate’s documentation of their
policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management,
general counsel and internal audit about their own identification and assessment of the risks of irregularities.
We obtained an understanding of the legal and regulatory frameworks that the syndicate operates in, and identified the key
laws and regulations that:
• had a direct effect on the determination of material amounts and disclosures in the financial statements. These
included the Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 and the
Lloyd’s Syndicate Accounting Byelaw (no. 8 of 2005), the Lloyd’s Syndicate Accounts Instructions; and
• do not have a direct effect on the financial statements but compliance with which may be fundamental to the
syndicate’s ability to operate or to avoid a material penalty. These included the requirements of Solvency UK.
We discussed among the audit engagement team including relevant internal specialists such as actuarial and IT specialists
regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might
occur in the financial statements.
As a result of performing the above, we identified the greatest potential for fraud in the following areas, and our procedures
performed to address them are described below:
• Estimation of pipeline premiums requires significant management judgement and therefore there is potential for
management bias through manipulation of core assumptions. In response our testing included, on a sample basis,
comparing management’s estimates on prior year policies against actual premiums received as well as to historical
experience on similar policies.
• Valuation of technical provisions includes assumptions and methodology requiring significant management
judgement and involves complex calculations, and therefore there is potential for management bias. There is also
a risk of overriding controls by making late adjustments to the technical provisions. In response to these risks we
involved our actuarial specialists to develop independent estimates of the technical provisions and we tested the
late journal entries to technical provisions.
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of
management override. In addressing the risk of fraud through management override of controls, we tested the
appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting
estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are
unusual or outside the normal course of business.
Syndicate 1225 For the year ended 31 December 2025
8
Independent auditor’s report to the members of syndicate 1225
continued
Extent to which the audit was considered capable of detecting irregularities, including fraud continued
In addition to the above, our procedures to respond to the risks identified included the following:
• reviewing financial statement disclosures by testing to supporting documentation to assess compliance with
provisions of relevant laws and regulations described as having a direct effect on the financial statements;
• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of
material misstatement due to fraud;
• enquiring of management, internal audit and general legal counsel concerning actual and potential litigation and
claims, and instances of non-compliance with laws and regulations; and
• reading minutes of meetings of those charged with governance, reviewing internal audit reports and reviewing
correspondence with Lloyd’s, Prudential Regulation Authority and Financial Conduct Authority.
Report on other legal and regulatory requirements
Opinions on other matters prescribed by The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate
Accounts) Regulations 2008 and the Lloyd’s Syndicate Accounts Instructions
In our opinion, based on the work undertaken in the course of the audit:
• the information given in the strategic report and the managing agent’s report for the financial year for which the
financial statements are prepared is consistent with the financial statements; and
• the strategic report and the managing agent’s report have been prepared in accordance with applicable legal
requirements.
In the light of the knowledge and understanding of the syndicate and its environment obtained in the course of the audit, we
have not identified any material misstatements in the strategic report or the managing agent’s report.
Matters on which we are required to report by exception
Under The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 we are required to
report in respect of the following matters if, in our opinion:
• the Managing Agent in respect of the syndicate has not kept adequate accounting records; or
• the syndicate annual financial statements are not in agreement with the accounting records; or
• we have not received all the information and explanations we require for our audit.
We have nothing to report in respect of these matters.
Use of our report
This report is made solely to the syndicate’s members, as a body, in accordance with regulation 10 of The Insurance
Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008. Our audit work has been undertaken so
that we might state to the syndicate’s members those matters we are required to state to them in an auditor’s report and for
no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the
syndicate’s members as a body, for our audit work, for this report, or for the opinions we have formed.
As required by the Syndicate Accounts Instructions, these financial statements will form part of the Electronic Format Annual
Syndicate Accounts filed with the Council of Lloyd’s and published on the Lloyd’s website. This auditors’ report provides no
assurance over whether the Electronic Format Annual Syndicate Accounts have been prepared in compliance with Section
2 of the Lloyd’s Syndicate Accounts Instructions. We have been engaged to provide assurance on whether the Electronic
Format Annual Syndicate Accounts has been prepared in compliance with Section 2 of the Lloyd’s Syndicate Accounts
Instructions and will report privately to the directors of the managing agent and the Council of Lloyd’s on this.
Malav Bhagdev, FCA (Senior statutory auditor)
For and on behalf of Deloitte LLP
Statutory Auditor
London, United Kingdom
19 February 2026
Syndicate 1225 For the year ended 31 December 2025
9
Statement of total comprehensive income
(For the year ended 31 December 2025)
Notes
2025
2024 restated
$000
$000
Technical account – general business
Earned premiums, net of reinsurance
Gross premiums written
3, 4
Outward reinsurance premium
(262,026 )
(257,573 )
Net premiums written
Change in the gross provision for unearned premiums
10
(25,124 )
Change in the provision for unearned premiums reinsurers’
share
10
(2,561 )
(1,000 )
Change in the net provision for unearned premiums
(26,124 )
Earned premiums, net of reinsurance
Allocated investment return transferred from the non-technical
account
Other technical income, net of reinsurance
5
Total technical income
1,150,940
1,093,189
Claims incurred, net of reinsurance
Gross claims paid
(503,063 )
(473,637 )
Reinsurers share
Net claims paid
(363,361 )
(346,775 )
Change in the provision for claims:
10
Gross amount
(61,319 )
Reinsurers share
Change in the net provision for claims
(42,839 )
Claims incurred, net of reinsurance
(346,530 )
(389,614 )
Net operating expenses
5
(409,721 )
(386,927 )
Total technical charges
(756,251)
(776,541)
Balance on technical account – general business
The notes on pages 15 to 36 form an integral part of these financial statements.
Syndicate 1225 For the year ended 31 December 2025
10
Statement of total comprehensive income continued
(For the year ended 31 December 2025)
Notes
2025
2024 restated
$000
$000
Non-technical account
Balance on the general business technical account
Interest income from investments
Realised gains/(losses) on investments
(4,769 )
Unrealised gains/(losses) on investments
Investment expenses and investment management charges
(774 )
(2,836 )
Foreign exchange (loss)/gain
(3,837 )
(9,804 )
92,999
62,477
Total investment return
Allocated investment return transferred to the general business
technical account
(96,836 )
(72,281 )
Profit for the financial year
Total comprehensive income
15
All operations of the syndicate are continuing.
The notes on pages 15 to 36 form an integral part of these financial statements.
Syndicate 1225 For the year ended 31 December 2025
11
Balance sheet
(As at 31 December 2025)
Notes
2025
2024 restated
$000
$000
ASSETS
Investments
9
Financial investments
Deposits with ceding undertakings
Reinsurers share of technical provisions
10
Provision for unearned premiums
Claims outstanding
Debtors
Debtors arising out of direct insurance operations
9,12
Debtors arising out of reinsurance operations
9,12
Other debtors
9,13
Other assets
Cash at bank and in hand
Other - Overseas deposits
Prepayments and accrued income
Deferred acquisition costs
10
Other prepayments and accrued income
TOTAL ASSETS
The notes on pages 15 to 36 form an integral part of these financial statements
Syndicate 1225 For the year ended 31 December 2025
12
Balance sheet continued
(As at 31 December 2025)
Notes
2025
2024 restated
$000
$000
LIABILITIES
Capital and reserves
Members’ balances
Total Capital and reserves
Technical provisions
10
Provision for unearned premium
Claims outstanding
Creditors
Creditors arising out of direct insurance operations
9,12
Creditors arising out of reinsurance operations
9,12
Other creditors
9,14
Accruals and deferred income
TOTAL LIABILITIES
TOTAL LIABILITIES, CAPITAL AND RESERVES
The syndicate financial statements were approved by the Board of directors of AEGIS Managing Agency Limited on 12
February 2026 (registered number: 03413859) and signed on its behalf by:
A J P Powell
Chief Executive Officer
19 February 2026
The notes on pages 15 to 36 form an integral part of these financial statements.
Syndicate 1225 For the year ended 31 December 2025
13
Statement of changes in members’ balances
(As at 31 December 2025)
2025
2024 restated
$000
$000
Members’ balances brought forward at 1 January
Profit for the financial year
390,852
306,844
Total comprehensive income
Payment of profit to members’ personal reserve funds
(288,263 )
(172,950 )
Total capital and reserves
566,677
464,088
Members’ balances carried forward at 31 December
Members participate on the syndicate by reference to years of account (“YOA”) and their ultimate result. Assets and liabilities
are assessed with reference to policies incepting in that YOA in respect of their membership of a particular year.
The notes on pages 15 to 36 form an integral part of these financial statements.
Syndicate 1225 For the year ended 31 December 2025
14
Statement of cash flows
(For the year ended 31 December 2025)
Notes
2025
2024 restated
$000
$000
Cash flows from operating activities
Profit for the year
Adjusted for:
Increase in gross technical provisions
(Increase) in reinsurers’ share of gross technical provisions
(10,702 )
(17,763 )
(Increase)/decrease in debtors
(43,322 )
(Decrease) in creditors
(2,825 )
(50,304 )
Movement in other assets/liabilities
(5,045 )
Investment return
(96,836 )
(72,281 )
Foreign exchange
(21,062 )
Net cash inflow from operating activities
Cash flows from investing activities
Purchase of equity and debt instruments
(882,764 )
(882,324 )
Sale of equity and debt instruments
Interest income from investments
Other
Net cash flows from investing activities
(105,894 )
Cash flows from financing activities
Distributions of profits
(288,263 )
(172,950 )
Net cash flows used in financing activities
(288,263 )
(172,950 )
Net increase/(decrease) in cash and cash equivalents
(4,327 )
Cash and cash equivalents at the beginning of the year
Effect of foreign exchange rate changes
(236 )
Cash and cash equivalents at the end of the year
Reconciliation to cash at bank in hand:
Cash at bank and in hand at end of financial year
42,462
46,789
Cash equivalents
-
29,452
Cash and cash equivalents at the end of financial year
9
42,462
76,241
The notes on pages 15 to 36 form an integral part of these financial statements.
Syndicate 1225 For the year ended 31 December 2025
15
Notes to the financial statements
(Forming part of the financial statements)
1. Basis of preparation
The financial statements have been prepared in accordance with the Insurance Accounts Directive (Lloyd’s syndicate and
Aggregate Accounts) Regulations 2008, applicable Accounting Standards in the United Kingdom and the Republic of Ireland,
including Financial Reporting Standard 102 (FRS 102), Financial Reporting Standard 103 (FRS 103) in relation to insurance
contracts, and the Lloyd’s Syndicate Accounts Instructions Version 3.1 issued by Lloyd’s, as modified by the Frequently
Asked Questions version 1.1. In accordance with FRS 102 the financial statements are prepared under the historical cost
convention as modified by financial instruments recognised at fair value. Because the corporate members of the syndicate
are all owned by the same corporate Group, the syndicate’s financial statements are fully consolidated within the financial
statements of the ultimate parent and controlling company, Associated Electric & Gas Insurance Services Limited (“AEGIS”),
which are publicly available and may be obtained at 30 Hudson Street, Jersey City, NJ 07302.
Critical accounting judgements and key sources of estimation uncertainties
The preparation of the financial statements requires management to make judgements, estimates and assumptions that
affect the application of the syndicate’s accounting policies and the reported amounts of assets, liabilities, income and
expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing
basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future
periods affected.
Key sources of estimation uncertainty
The most critical element within the syndicate’s financial position is the provision for claims outstanding at the period end,
which include the provision for claims that have been incurred but have not yet been reported (“IBNR”) and the related
reinsurers’ share of those claims. This estimate outlines the current liability for future expenses expected to be incurred in
relation to claims. In addition, there is significant uncertainty within the Estimated Premium Income (“EPI”).
Outstanding Claims and IBNR
The ultimate cost of outstanding claims is estimated using standard claims projection techniques completed by our in-house
actuaries. The main assumption for these techniques is that past claims development experience can be used to project
future claims development. The provision for claims also includes amounts in respect of internal and external claims handling
costs. Claims handling costs are based on a set percentage of IBNR and outstanding claims and this calculation is reviewed
on an annual basis. Note 2 underwriting risk, general insurance business sensitivities table details the impact on profits of a
5% variation in total gross and net claims reserve estimates. The directors consider that the provisions for gross claims
(carrying amount $1,679,400k) and associated reinsurance recoveries (carrying amount $576,549k) are fairly stated based
on the information currently available; see note 10 of these financial statements.
Premiums
For certain insurance contracts, premium written is initially recognised based on the estimate of ultimate premiums. The
main assumption underlying these estimates is that past premium development has been used to project future premium
development. The estimation of unearned premiums includes estimates made on the allocation of premiums between
accounting periods based on judgements on the profile of the underlying risks associated with the premium written and
accordingly how the premium is recognised as earned. A sensitivity analysis has been run on the future premium receivable
balance, noting a 5% variation in this estimate would result in a $19,140k (2024 restated: $18,426k) increase or decrease
on gross written premium. The directors consider that the gross provision for unearned premiums (carrying amount:
$739,865k) and associated reinsurance recoverables (carrying amount: $136,296k) are fairly stated based on the information
currently available; see note 10 of these financial statements.
Critical accounting judgements
In the course of preparing the financial statements, no critical accounting judgements have been made in the process of
applying the syndicate’s accounting policies, other than those involving estimations, that have had a significant effect on the
amounts recognised in the financial statements.
Principal accounting policies
The following principal accounting policies have been applied consistently in dealing with items which are considered material
in relation to the syndicate’s financial statements.
Syndicate 1225 For the year ended 31 December 2025
16
Notes to the financial statements continued
(Forming part of the financial statements)
1. Basis of preparation continued
Insurance contracts premium
Gross premium written comprises premium on insurance contracts incepting during the financial year. Premium is disclosed
before the deduction of brokerage and taxes or duties levied. Estimates are included for premium receivable after the period
end but not yet notified, as well as adjustments made in the year to premium written in prior accounting periods.
Premium is earned over the policy contract period. Where the incidence of risk is the same throughout a 12 month contract,
the earned element is calculated separately for each contract on a 365ths basis. For premium written under facilities, such
as binding authorities, the earned element is calculated based on the estimated risk profile of the individual contracts
involved.
The proportion of premium written, gross of commission payable, attributable to periods after the balance sheet date is
deferred as a provision for unearned premium. The change in this provision is taken to the Statement of Comprehensive
Income in order that revenue is recognised over the period of the risk.
Acquisition costs comprise brokerage incurred on insurance contracts written during the financial year. They are incurred on
the same basis as the earned proportions of the premium they relate to. Deferred acquisition costs are amortised over the
period in which the related revenues are earned. Deferred acquisition costs are reviewed at the end of each reporting period
and are written off where they are no longer considered to be recoverable. Estimates are made for pipeline premiums,
representing amounts due to the syndicate not yet notified.
Reinsurance premium ceded
Reinsurance premium ceded comprises the cost of reinsurance arrangements placed and are accounted for in the same
accounting period as the related insurance contracts. The provision for reinsurers’ share of unearned premium represents
that part of reinsurance premium written which is estimated to be earned in following financial years.
Insurance contracts liabilities: claims
Claims paid are defined as those claims transactions settled up to the balance sheet date including the internal and external
claims settlement expenses allocated to those transactions. The reinsurers’ share represents recoveries received from
reinsurance protections in the period plus recoveries receivable against claims paid that have not been received at the
balance sheet date, net of any provision for bad debt. Where applicable, deductions are made for salvage and other
recoveries.
Claims reserves are estimated on an undiscounted basis. Provisions are subject to a detailed quarterly review where forecast
future cash flows and existing amounts provided are reviewed and reassessed. Any changes to the amounts held are
adjusted through the Statement of Comprehensive Income.
Claims reserves are made for known or anticipated liabilities under insurance contracts which have not been settled up to
the balance sheet date. Included within the provision is an allowance for the future costs of settling those claims. This is
estimated based on past experience and current expectations of future cost levels.
The claims provision also includes, where necessary, a reserve for unexpired risks where, at the balance sheet date, the
estimated costs of future claims and related deferred acquisition costs are expected to exceed the unearned premium
provision. In determining the need for an unexpired risk provision, the underwriting divisions within the syndicate have been
regarded as groups of business that are managed together.
Claims incurred represent the cost of claims and claims handling expenses paid during the financial year, together with the
movement in provisions for outstanding claims, IBNR and future claims handling provisions. Reinsurance recoveries are
accounted for in the same way as gross incurred claims.
The provision for claims encompasses amounts set aside for claims outstanding and IBNR. The IBNR amount is an estimate
of allowances for claims incurred but not reported, using past experience and trends adjusted for foreseeable events and
calculated using widely accepted actuarial statistical techniques, such as the Chain Ladder and Bornhuetter-Ferguson
methods. The provision for IBNR is reviewed biannually by both internal and external actuaries. Critical assumptions are
used alongside historical data to form a basis for future claims development.
Syndicate 1225 For the year ended 31 December 2025
17
Notes to the financial statements continued
(Forming part of the financial statements)
1. Basis of preparation continued
The reinsurers' share of provisions for claims is based on calculated amounts for outstanding claims notified and projections
for IBNR, net of estimated irrecoverable debt and bad debt, and also taking into consideration the reinsurance programme
in place for each class of business and the claims experience for the year.
The Managing Agent takes all reasonable steps to ensure that the syndicate has taken into account all appropriate
information regarding its gross and net claims exposures, however given the uncertainty in establishing such claims
provisions it is likely that the final outcome will prove to be dissimilar from the original estimated liability. Should the provisions
prove to be different from the original estimate, adjustments are made to the claims provisions in respect of prior years and
are included in the technical account within the financial statements of the period when such adjustments are made.
Although the claims provision is considered to be reasonable, having regard to previous claims experience (including the
use of certain statistically based projections) and case by case reviews of notified losses, on the basis of information available
at the date of determining the provision, the ultimate liabilities will vary as a result of subsequent information and events.
These adjustments are reflected in the financial statements for the period in which the related adjustments are made. There
have been no changes in assumptions used to measure insurance assets and insurance liabilities during the year.
Investments
Equity investments in non-convertible preference shares and non-puttable ordinary or preference shares are measured at
fair value through profit or loss. All debt instruments are designated as fair value through profit or loss and are therefore also
measured as such. The best evidence of fair value is a quoted price for an identical asset in an active market. When quoted
prices are unavailable, the price of a recent transaction for an identical asset provides evidence of fair value as long as there
has not been a significant lapse of time since the transaction took place. If the market is not active and recent transactions
of an identical asset on their own are not a good estimate of fair value, the fair value is estimated by using a valuation
technique. Investments in private credit funds are shown at fair value through profit or loss. The fair value of an interest in a
private credit fund is determined by using the proportionate share of the last reported Fund Net Asset Value (NAV), provided
that the NAV reflects the fair value of the underlying investments and incorporates significant changes up to the valuation
date. The cost of the syndicate’s investments held at the balance sheet date is deemed to be the aggregate of the value of
investments held at the balance sheet date, and the cost of any new investments acquired during the year.
Overseas deposits
Overseas deposits are stated at fair value at the balance sheet date. Overseas deposits are invested by Lloyd’s Treasury
and are held to satisfy conditions associated with conducting underwriting business in certain countries.
Investment return
The investment return comprises investment income, investment gains less losses, and is net of investment expenses and
charges. Realised gains or losses are calculated as the difference between the net sales proceeds and their purchase price
in the financial year or their valuation at the commencement of the year. Unrealised gains and losses are calculated as the
difference between the valuation of investments at the balance sheet date and their purchase price in the financial year or
their valuation at the commencement of the year.
All of the investment return arising in the year is reported initially in the non-technical account. A transfer is then made from
the non-technical account to the technical account.
Taxation
No provision has been made in respect of UK income tax on trading income. It is the responsibility of members to settle their
tax liabilities.
Overseas taxation comprises US Federal Income tax and Canadian Federal Income tax. The amounts charged to members
are collected centrally through Lloyd’s Members’ Services Unit as part of the members’ distribution process. The ultimate
tax liability is the responsibility of each individual underwriting member.
Foreign currencies
In accordance with FRS 102, the functional currency of the syndicate is US dollars as this is the currency of the primary
economic environment in which the entity operates and is the one in which it primarily generates and expends cash.
Syndicate 1225 For the year ended 31 December 2025
18
Notes to the financial statements continued
(Forming part of the financial statements)
1. Basis of preparation continued
Change in presentation currency
From 1 January 2025 the Syndicate has changed its presentation currency from GBP sterling to US dollars as US dollars is
more representative of the syndicate’s primary economic environment in which the entity operates and is the one in which it
primarily generates and expends cash. In accordance with FRS 102 the change in presentation currency has been applied
retrospectively and all comparative information for year ended 31 December 2024 has been restated in US dollars, which
means there are no longer foreign exchange gains and losses in other comprehensive income.
Basis of currency translation
Transactions in foreign currencies are translated to the functional currency using the exchange rates at the date of the
transactions, see Note 16 foreign exchange rates used. The syndicate’s monetary assets and liabilities denominated in
foreign currencies are translated into the functional currency at the rates of exchange at the balance sheet date, see Note
16 foreign exchange rates used. Non-monetary assets and liabilities denominated in foreign currencies that are measured
at fair value are retranslated to the functional currency at the exchange rate at the date that the fair value was determined.
Non-monetary items denominated in foreign currencies that are measured at historic cost are translated to the functional
currency using the exchange rate at the date of the transaction. For the purposes of foreign currency translation, unearned
premiums and deferred acquisition costs are treated as if they are monetary items.
Differences arising on translation of foreign currency amounts relating to the insurance operations of the syndicate are
included in the non-technical account.
Insurance debtors and creditors
In the normal course of business, settlement is required to be made with Lloyd’s Central Accounting, the market settlement
bureau, on the basis of the net balance due to or from insurance brokers in total rather than the amounts due to or from the
individual parties which they represent. The legal status of this practice of net settlement is uncertain and in the event of
insolvency it is generally abandoned. Accordingly, insurance debtors and creditors, as presented, comprise respectively the
totals of all the syndicate’s individual outstanding debit and credit transactions before any offset. The resultant totals give no
indication of future net cash flows.
Syndicate operating expenses
Costs incurred by the Managing Agent exclusively for the syndicate are charged to the syndicate on an accruals basis.
Expenses incurred jointly by the Managing Agent and the syndicate are charged through the Manging Agent fee. The charge
reflects the expected costs of services to be provided to the syndicate and does not include any profit element.
Retirement benefit costs
The Managing Agent operates a defined contribution scheme, pension contributions incurred by the Managing Agent
exclusively for the syndicate are charged to the syndicate and included within net operating expenses.
Going concern
The syndicate’s business activities, together with the factors likely to affect its future development, performance and position
are set out in the Report of the directors of the Managing Agent (page 2). Its forecasts and projections show that the directors
have a reasonable expectation that the syndicate has adequate resources to continue in operational existence for the
foreseeable future. In addition, the directors have a reasonable expectation that capital will be available to support future
underwriting activities. Accordingly, they continue to adopt the going concern basis in preparing the annual report and
financial statements.
2. Principal risks and uncertainties
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.
Syndicate 1225 For the year ended 31 December 2025
19
Notes to the financial statements continued
(Forming part of the financial statements)
2. Principal risks and uncertainties continued
Underwriting risk
The syndicate accepts underwriting risk in a range of classes of business. The bias of the portfolio is towards short-tail
property and accident risk but liability coverage is also underwritten. In underwriting insurance or reinsurance policies the
syndicate’s underwriters use their skill, knowledge and data on past claims experience to evaluate the likely claims cost and
therefore the premium that should be sufficient (across a portfolio of risks) to cover claims costs, expenses and to produce
an acceptable profit. However, due to the nature of insurance risk there is no guarantee that the premium charged will be
sufficient to cover claims costs. This shortfall may originate either from insufficient premium being calculated and charged or
result from an unexpected, or unprecedented, high level of claims.
A number of controls are deployed by the Managing Agent to limit the amount of insurance exposure underwritten. Each
year a business plan is prepared and agreed which is used to monitor the amount of premium income, and exposure, to be
written in total and for each class of business. The business plan is subject to Lloyd’s scrutiny and monitoring. Progress
against this plan is monitored during the year. The syndicate also operates under an underwriting control framework that
determines the maximum liability per policy which can be written for each class and for each underwriter. The framework is
subject to an internal escalation process that ensures all material exceptions must be approved by senior management. The
syndicate is also exposed to catastrophe losses which may impact many risks in a single event and again reinsurance is
purchased to limit the impact of loss aggregation from such events. These reinsurance arrangements are described in the
reinsurance arrangements section below.
Insurance liabilities are written through individual risk acceptances, reinsurance treaties or through facilities whereby the
syndicate is bound by other underwriting entities. Facility arrangements delegate underwriting authority to other underwriters,
or to agents acting as coverholders, who use their judgement to write risks on behalf of the syndicate under clear authority
levels. The Managing Agent has a regular process of coverholder audits performed during the year.
The insurance liabilities underwritten by the syndicate are reviewed on an individual risk, or contract, basis and through
review of portfolio performance. All claims arising are reserved upon notification. Each quarter the entire portfolio is subject
to a reserving process whereby levels of paid and outstanding (advised but not paid) claims are reviewed. Potential future
claims are assessed with a provision for IBNR claims being made. Whilst a disciplined exercise is carried out to provide for
claims notified, it is possible that known claims could develop and exceed the reserves carried. Furthermore, there is
increased uncertainty in establishing an accurate provision for IBNR claims and there is a possibility that claims may arise
that in aggregate exceed the reserve provision established.
The review of claims arising may result in underwriters adjusting pricing levels to cater for an unexpectedly higher trend of
claims advices or payments. However, this may not be possible in a competitive market and underwriters may respond either
by accepting business with lower expected profit margins or declining to renew policies and thus reducing income. Also,
there is a portfolio of risk already underwritten which cannot be re-priced until renewal at the end of the policy period.
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 balance.
2025
2024 restated
General insurance business sensitivities as at 31 December 2025
Sensitivity
+5.0%
$000
-5.0%
$000
Claims outstanding – gross of reinsurance
(83,970 )
Claims outstanding – net of reinsurance
(55,143 )
General insurance business sensitivities as at 31 December 2024
Sensitivity
+5.0%
$000
-5.0%
$000
Claims outstanding – gross of reinsurance
(83,011 )
Claims outstanding – net of reinsurance
(54,755 )
Syndicate 1225 For the year ended 31 December 2025
20
Notes to the financial statements continued
(Forming part of the financial statements)
2. Principal risks and uncertainties continued
Reinsurance arrangements
The syndicate purchases proportional reinsurance to supplement line size and to reduce exposure on individual risks. The
syndicate also purchases a number of excess of loss reinsurances to protect itself from severe frequency or size of losses.
The structure of the programme and type of protection bought will vary from year to year depending on the availability and
price of cover. For information on credit risk in respect of reinsurance debtors see the Credit risk section in this note.
Risk appetite
The Managing Agent defines the syndicate’s risk appetite which seeks to limit its maximum net loss at a number of
confidence levels.
These maximum losses are expected only to be incurred in extreme events. The Managing Agent on behalf of the syndicate
also adopts risk tolerances for a number of other pre-defined scenarios including, for example, a marine collision and an
offshore rig loss.
The enterprise risk management framework recognises that there may be circumstances in which the net event limit could
be exceeded. Such circumstances include non-renewal or delay in renewal of reinsurance protection, reinsurance security
failure, or regulatory and legal requirements.
A detailed analysis of catastrophe exposures is carried out every quarter by the Managing Agent and measured against
defined tolerances. The following assumptions and procedures are used in the process:
• the data used reflects the information supplied to the syndicate by insured and ceding companies. This may prove
to be inaccurate or could develop during the policy period;
• the exposures are modelled using a mixture of stochastic models and underwriter input to arrive at ‘damage factors’
- these factors are then applied to the assumed aggregate exposure to produce gross loss estimates. The damage
factors may prove to be inadequate;
• the reinsurance programme as purchased is applied - a provision for reinsurer counterparty failure is included but
may prove to be inadequate; and
• reinstatement premiums both payable and receivable are included.
There is no guarantee that the assumptions and techniques deployed in calculating these event loss estimate figures are
accurate. Furthermore, there could also be an un-modelled loss which exceeds these figures. The likelihood of such a
catastrophe is considered to be remote but the most severe scenarios modelled are simulated events and these simulations
could prove to be unreliable.
Claims reserves
Claims reserves established by the Managing Agent can be more or less than adequate to meet eventual claims arising.
The level of uncertainty varies significantly from class to class but can arise from inadequate case reserves for known large
losses and catastrophes or from inadequate provision for IBNR.
Large loss case reserves are determined through careful analysis of the individual claim, often with the advice of legal
advisers.
Property catastrophe claims such as earthquake or hurricane losses can take several months, or years, to develop as
adjusters visit damaged property and agree claim valuations. Until all the claims are settled it requires an analysis of the
area damaged, contracts exposed and the use of models to simulate the loss against the portfolio of exposure in order to
arrive at an estimate of ultimate loss to the syndicate. There is uncertainty over the adequacy of information and modelling
of major losses for a period of several months after a catastrophe loss. Consideration should also be taken of factors which
may influence the size of claims such as increased inflation or a change in law.
The long tail liability classes, for which a large IBNR has to be established, represent the most difficult classes to reserve
because claims are notified and settled several years after the expiry of the policy concerned. This is particularly the case
for US liability written on a losses occurring basis.
The use of historical development data, adjusted for known changes to wordings or the claims environment, is fundamental
to reserving these classes. It is used in conjunction with the advice of lawyers and third party claims adjusters on material
single claims.
Syndicate 1225 For the year ended 31 December 2025
21
Notes to the financial statements continued
(Forming part of the financial statements)
2. Principal risks and uncertainties continued
Claims reserves continued
The allocation of IBNR to the reinsurance programme is an uncertain exercise as there is limited knowledge of the size or
number of future claims advices. The assumption over future reinsurance recoveries may be incorrect and unforeseen
disputes could arise which would reduce recoveries made.
Credit risk
Credit risk is the risk that the syndicate becomes exposed to loss if a counterparty fails to perform its contractual obligations,
including failure to perform them in a timely manner. A credit risk could therefore have an impact upon the syndicate’s ability
to meet its claims as they fall due. Credit risk can also arise from underlying causes that have an impact upon the
creditworthiness of all counterparties of a particular description or geographical location. The syndicate is exposed to credit
risk in its investment portfolio and with its premium and reinsurance debtors.
As well as an actual failure of a counterparty to perform its contractual obligations, the price of corporate bond holdings will
be affected by investors’ perception of a borrower’s ability to perform these duties in a timely manner. Credit risk within the
investment funds is managed through the credit research carried out by the investment managers. The syndicate’s
investment guidelines are designed to mitigate credit risk by ensuring diversification of the holdings. For each portfolio there
are limits to the exposure to single issuers and to the total amount that can be held in each credit quality rating category, as
determined by reference to credit rating agencies.
The credit risk in respect of reinsurance debtors is primarily managed by review and approval of reinsurance security and
exposure limits prior to the purchase of the reinsurance contract. Guidelines are set, and monitored, that restrict the purchase
of reinsurance security based on rating agency review and the syndicate’s own ratings for each reinsurer. Provisions are
made against the amounts due from certain reinsurers, depending on the age of the debt and the current rating assigned to
the reinsurer.
Credit risk in respect of premium debt is overseen by the Managing Agent’s Counterparty Security Group reporting to the
Executive Management Committee. The key controls include broker approval, annual financial review and internal rating of
brokers and regular monitoring of premium settlement performance.
The following table analyses the credit rating by investment grade of financial investments, overseas deposits, deposits with
ceding undertakings, reinsurers share of claims outstanding, debtors arising out of reinsurance operations and cash at bank
and in hand that are neither past due, nor impaired.
2025
AAA
AA
A
BBB
Other
Not
rated
Total
$000
$000
$000
$000
$000
$000
$000
Shares and other variable yield
securities and unit trusts
Debt securities
Overseas deposits as other assets
38,537
12,211
12,524
4,743
1,868
5,601
75,484
Deposits with ceding undertakings
Reinsurers share of claims
outstanding
Debtors arising out of reinsurance
operations
Cash at bank and in hand
Debtors arising out of direct
insurance operations
Other assets
-
-
-
-
304,661
-
304,661
Other debtors and accrued interest
Total credit risk
Syndicate 1225 For the year ended 31 December 2025
22
Notes to the financial statements continued
(Forming part of the financial statements)
2. Principal risks and uncertainties continued
Credit risk continued
2024 restated
AAA
AA
A
BBB
Other
Not
rated
Total
$000
$000
$000
$000
$000
$000
$000
Shares and other variable yield
securities and unit trusts
Debt securities
Overseas deposits as other assets
39,117
8,136
9,248
7,126
1,417
5,395
70,439
Deposits with ceding undertakings
Reinsurers share of claims
outstanding
Debtors arising out of reinsurance
operations
Cash at bank and in hand
Debtors arising out of direct
insurance operations
Other assets
-
-
-
-
303,479
-
303,479
Other debtors and accrued interest
Total credit risk
At 31 December 2025, total cash, overseas deposits and financial investments amounted to $1,814,422k, of which 93%
relates to debt and other fixed income securities and loans with credit institutions. The residual element of the portfolio relates
to cash and overseas deposits. The portfolio remains of high quality, as illustrated by the asset allocation table shown above.
The credit ratings on debt securities are composite ratings based on Standard & Poor’s, Moody’s and Fitch. Collateral in the
form of short term investments and cash in trust of $271,344k (2024 restated: $260,586k) is held as security in support of
reinsurers’ share of claims outstanding. The collateral mitigates the entity’s credit risk in the event that a reinsurer defaults.
An analysis of the carrying amounts of past due or impaired debtors is presented in the table below. The syndicate does not
have any impairments.
2025
Neither due nor
impaired
Past due but not
impaired assets
Total
$000
$000
$000
Shares and other variable yield securities and unit trusts
Debt securities
Deposits with ceding undertakings
Reinsurers share of claims outstanding
Debtors arising out of direct insurance operations
Debtors arising out of reinsurance operations
Other assets
304,661
-
304,661
Other debtors and accrued interest
Cash at bank in hand
Overseas deposits
75,484
-
75,484
Total
Syndicate 1225 For the year ended 31 December 2025
23
Notes to the financial statements continued
(Forming part of the financial statements)
2. Principal risks and uncertainties continued
Credit risk continued
2024 restated
Neither due nor
impaired
Past due but not
impaired assets
Total
$000
$000
$000
Shares and other variable yield securities and unit trusts
Debt securities
Deposits with ceding undertakings
Reinsurers share of claims outstanding
Debtors arising out of direct insurance operations
Debtors arising out of reinsurance operations
Other assets
303,479
-
303,479
Other debtors and accrued interest
Cash at bank in hand
Overseas deposits
70,439
-
70,439
Total
The following table analyses the age of debtors arising out of direct insurance operations, that are past due but not impaired:
2025
Up to
three
months
past due
Three to
six
months
past due
Six
months to
one year
past due
Greater than
one year past
due
Total
$000
$000
$000
$000
$000
Shares and other variable yield securities and
unit trusts
Debt securities
Deposits with ceding undertakings
Reinsurers share of claims outstanding
Debtors arising out of direct insurance
operations
Debtors arising out of reinsurance operations
Other assets
-
-
-
-
-
Other debtors and accrued interest
Cash at bank in hand
Overseas deposits
-
-
-
-
-
Total
Syndicate 1225 For the year ended 31 December 2025
24
Notes to the financial statements continued
(Forming part of the financial statements)
2. Principal risks and uncertainties continued
Credit risk continued
2024 restated
resa
Up to
three
months
past due
Three to
six
months
past due
Six
months to
one year
past due
Greater than
one year past
due
Total
$000
$000
$000
$000
$000
Shares and other variable yield securities and
unit trusts
Debt securities
Deposits with ceding undertakings
Reinsurers share of claims outstanding
Debtors arising out of direct insurance
operations
Debtors arising out of reinsurance operations
Other assets
-
-
-
-
-
Other debtors and accrued interest
Cash at bank in hand
Overseas deposits
-
-
-
-
-
Total
There have been no material changes to the syndicate’s policies and processes for managing credit risk, or its exposure to
credit risk, from the prior financial period.
Valuation risk
The syndicate’s earnings are directly affected by changes in the valuations of the investments held in the portfolios. These
valuations vary according to the movements in the underlying markets. The syndicate’s assets are marked to market at bid
price. Prices are supplied by the custodians, whose pricing processes are covered by their published annual audits, and
SSAE 16 reports are obtained. The investment managers operate within guidelines which are set and regularly reviewed by
the management of the Managing Agent for investment duration, credit quality and appropriate benchmarks. There have
been no material changes to syndicate’s policies or processes for managing exposure to valuation risk from the prior financial
period.
Interest rate risk
Investors’ expectations for interest rates will impact bond yields. The value of the syndicate’s bond holdings is therefore
subject to fluctuation as bond yields rise and fall. If the yield falls the capital value will rise, and vice versa. The sensitivity of
the price of a bond is indicated by its duration. The greater the duration of a security; the greater its price volatility. This risk
is mitigated by continual review of our investment strategies. Overall, the syndicate seeks to balance the potential for adverse
results arising from interest rate movements against investment return. There have been no material changes to the
syndicate’s policies or processes for managing interest rate risk, or exposure to interest rate risk, from the prior financial
period. An analysis of the syndicate’s sensitivity to interest rate and equity price risk is presented in the table below:
| 2025 Impact on results before tax | 2025 Impact on members’ balances | 2024 restated Impact on results before tax | 2024 restated Impact on members’ balances | |
| $000 | $000 | $000 | $000 | |
Interest rate risk | ||||
Impact of 50 basis point increase in yield curves | ( | ( | ( | ( |
Impact of 50 basis point decrease in yield curves | ||||
Equity price risk | ||||
Impact of 5 percent increase in equity prices | ||||
Impact of 5 percent decrease in equity prices | ( | ( | ( | ( |
Syndicate 1225 For the year ended 31 December 2025
25
Notes to the financial statements continued
(Forming part of the financial statements)
2. Principal risks and uncertainties continued
Interest rate risk continued
The methods and assumptions used in preparing the sensitivity analysis are a reasonable approximation of possible changes
in interest rates. This analysis shows the impact, in converted Sterling, on the syndicate’s result and net assets, if interest
rates had been 50 basis points higher or lower in the year and if equity prices had been 5 percent higher or lower in the year
The impact is in relation to investments only.
Currency risk
The Syndicate writes business primarily in Sterling, US dollar, Euro, Canadian dollar, Australian dollar and Japanese Yen
and is therefore exposed to currency risk arising from fluctuations in these exchange rates. The table below summarises the
carrying value of the Syndicate’s assets and liabilities, at the reporting date:
| 2025 | ||||||||
CNV USD ($000) | Sterling | US Dollar | Euro | Canadian Dollar | Australian Dollar | Japanese Yen | Other | Total |
Investments | ||||||||
Reinsurers share of technical provisions | ||||||||
Debtors | ||||||||
Prepayments and accrued income | ||||||||
Other Assets | ||||||||
Total Assets | ||||||||
Technical provisions | ( | ( | ( | ( | ( | ( | ( | ( |
Creditors | ( | ( | ( | ( | ( | ( | ( | ( |
Accruals and deferred income | ( | ( | ( | ( | ||||
Total liabilities | ( | ( | ( | ( | ( | ( | ( | ( |
Total capital and reserves | ( | ( | ( | ( |
| 2024 | ||||||||
| CNV USD ($000) | Sterling | US Dollar | Euro | Canadian Dollar | Australian Dollar | Japanese Yen | Other | Total |
Investments | ||||||||
Reinsurers share of technical provisions | ||||||||
Debtors | ||||||||
Prepayments and accrued income | ||||||||
Other Assets | ||||||||
Total Assets | ||||||||
Technical provisions | ( | ( | ( | ( | ( | ( | ( | ( |
Creditors | ( | ( | ( | ( | ( | ( | ( | ( |
Accruals and deferred income | ( | ( | ( | ( | ||||
Total liabilities | ( | ( | ( | ( | ( | ( | ( | ( |
Total capital and reserves | ( | ( | ( | ( |
Syndicate 1225 For the year ended 31 December 2025
26
Notes to the financial statements continued
(Forming part of the financial statements)
2. Principal risks and uncertainties continued
Foreign exchange risk
Policyholders’ assets are held in the base currencies of Sterling, US dollars, Canadian dollars, Euros, Australian Dollar, and
Japanese Yen, which represent the majority of the syndicate’s liabilities by currency. This limits underlying foreign exchange
risk.
Foreign exchange exposure also arises when business is written in non-base currencies. These transactions are converted
into US dollars at the prevailing spot rate once the premium is received. Consequently, there is exposure to currency
movements between the exposure being written and the premium being converted. Payments in non-base currencies are
converted back into the underlying currency at the time a claim is to be settled; therefore, the syndicate is exposed to
exchange rate risk between the claim being made and the settlement being paid.
Foreign exchange risk is mitigated by internal monitoring by the Managing Agent which includes asset and liability matching.
It is not management’s intention to take speculative currency positions in order to make currency gains. Overall, the foreign
exchange risk appetite seeks to minimise the potential for adverse results arising from foreign exchange rate movements.
There have been no material changes to the syndicate’s policies or processes for managing foreign exchange risk, or
exposure to foreign exchange risk, from the prior financial period.
A 10% strengthening of US Dollars against the following currencies at 31 December 2025 would have decreased the
syndicate's pre-tax profits by the amounts shown below. This analysis assumes no hedging currency and that all other
variables remain constant and provide a reasonable approximation of possible changes to the exchange rates.
2025
2024 restated
$000
$000
Sterling
3,812
4,333
Canadian Dollars
10,125
5,609
A 10% weakening of US Dollars against the above currencies at 31 December 2025 would have made an equal but opposite
effect to the amounts shown above, on the basis that all other variables remain constant.
Liquidity risk
It is important to ensure that claims are paid as they fall due. Levels of cash are therefore managed on a daily basis. Liquid
assets are also held in excess of the immediate requirements to avoid the syndicate having to be a forced seller of any of its
assets, which may result in prices below market value being realised, especially in periods of below normal investment
market activity. This practice of limiting the extent of duration divergence between the policyholders’ assets and the liabilities
helps to reduce the risk of a cash flow mismatch. Liquidity in the event of a major disaster is tested regularly using internal
cash flow forecasts and realistic disaster scenarios.
The table below shows the maturity profiles of the syndicate’s claims outstanding and creditor balances.
2025
0-1 year | 1-3 years | 3-5 years | >5 years | Total | |
| $000 | $000 | $000 | $000 | $000 | |
Claims outstanding | |||||
Creditors | |||||
Total claims outstanding and creditors |
| 2024 restated | |||||
0-1 year | 1-3 years | 3-5 years | >5 years | Total | |
| $000 | $000 | $000 | $000 | $000 | |
Claims outstanding | |||||
Creditors | |||||
Total claims outstanding and creditors |
Syndicate 1225 For the year ended 31 December 2025
27
Notes to the financial statements continued
(Forming part of the financial statements)
2. Principal risks and uncertainties continued
Regulatory risk
Regulatory risk is the risk that the syndicate fails to meet the regulatory requirements of the Prudential Regulation Authority,
Financial Conduct Authority, or Lloyd’s. Lloyd’s requirements include those imposed on the Lloyd’s market by overseas
regulators, particularly in respect of US situs business. The Managing Agent has a Compliance Function, responsible for
monitoring regulatory developments and assessing the impact on our business.
Operational risk
Operational risk is the risk that failure of people, systems or processes leads to losses to the syndicate. The Managing Agent
manages these risks through internal compliance monitoring and the use of detailed procedure manuals. In addition, the
Managing Agent has an Internal Audit department which assists the business to meet the strategic and operational objectives
of the syndicate through the provision of independent appraisal of the adequacy and effectiveness of internal controls in
operation and to provide reasonable assurance as to the adequacy of systems and procedures to enable compliance with
all relevant regulatory and legal requirements.
Climate change and transition risk
This is the risk of climate change and the transition to a low carbon economy on the syndicate’s underwriting and investment
portfolios. As a global insurer the potential impact of climate change on the business could be material. The syndicate has
developed a range of tools and techniques to monitor risks arising from climate change including, inter alia, catastrophe
management processes and controls, investment management limits, and a suite of risk appetites and tolerances to manage
physical climate risk exposures.
3. Analysis of underwriting result
The directors regard the transaction of general insurance business in the United Kingdom as the only business segment. An
analysis of the underwriting result before investment return is presented in the table below:
2025
Gross
premium
written
Gross
premium
earned
Gross
claims
incurred
Gross
operating
expenses
Reinsurance
balance
Underwriting
Result
$000
$000
$000
$000
$000
$000
Marine, aviation and transport
(40,846 )
(36,276 )
(23,654 )
Fire and other damage to property
(153,225 )
(231,850 )
(77,766 )
Third party liability
(178,048 )
(61,306 )
Miscellaneous
(40,122 )
(18,294 )
(5,496 )
Total direct insurance
(412,241 )
(347,726 )
(89,601 )
Reinsurance acceptances
(83,328 )
(45,007 )
(25,947 )
Total
(495,569 )
(392,733 )
(115,548 )
The below is an additional disclosure to facilitate the classification of the above segments into the Lloyd’s aggregate classes
of business:
Gross
premium
written
Gross
premium
earned
Gross
claims
incurred
Gross
operating
expenses
Reinsurance
balance
Underwriting
Result
$000
$000
$000
$000
$000
$000
Fire and other damage to property
of which is:
Specialities
Energy
Third party liability of which is:
Energy
(1,236 )
(124 )
(2,207 )
(7,290 )
(1,080 )
(4,543 )
(2,143 )
(124 )
Syndicate 1225 For the year ended 31 December 2025
28
Notes to the financial statements continued
(Forming part of the financial statements)
3. Analysis of underwriting result continued
2024 restated
Gross
premium
written
Gross
premium
earned
Gross
claims
incurred
Gross
operating
expenses
Reinsurance
balance
Underwriting
Result
$000
$000
$000
$000
$000
$000
Marine, aviation and transport
(69,016 )
(38,977 )
(10,230 )
Fire and other damage to property
(205,717 )
(210,293 )
(82,261 )
Third party liability
(150,554 )
(70,526 )
(1,969 )
Miscellaneous
(31,180 )
(11,645 )
(2,548 )
(8,443 )
Total direct insurance
(456,467 )
(331,441 )
(97,008 )
Reinsurance acceptances
(78,489 )
(41,573 )
(16,223 )
Total
(534,956 )
(373,014 )
(113,231 )
The below is an additional disclosure to facilitate the classification of the above segments into the Lloyd’s aggregate classes
of business:
Gross
premium
written
Gross
premium
earned
Gross
claims
incurred
Gross
operating
expenses
Reinsurance
balance
Underwriting
Result
$000
$000
$000
$000
$000
$000
Fire and other damage to property
of which is:
Specialities
Energy
Third party liability of which is:
Energy
(4 )
(2,946 )
(8,480 )
(909 )
(4,828 )
(1,296 )
The net assets of syndicate 1225 are managed as a whole and are not allocated to a separate business segment.
The origin of all premiums written is within the United Kingdom. The gross premiums written for direct insurance by location
(where the contracts were concluded) is presented in the table below:
2025
$000
2024
$000
United Kingdom
USA
Rest of the world
Total gross written premiums
4. Brokerage
Gross premiums written are stated before the deduction of brokerage. Gross brokerage for the year was $304,827k (2024
restated: $293,394k).
Syndicate 1225 For the year ended 31 December 2025
29
Notes to the financial statements continued
(Forming part of the financial statements)
5. Profit for the year
Net operating expenses include:
| 2025 | 2024 restated | |
| $000 | $000 | |
Acquisition expenses | ||
Change in net deferred acquisition costs | ( | |
Reinsurance commissions and profit participations | ( | ( |
Administrative expenses | ||
Total net operating expenses |
Administrative expenses include:
| 2025 | 2024 restated | |
| $000 | $000 | |
| Auditor’s remuneration: | ||
- Audit of syndicate annual report and financial statements | ||
- Audit-related assurance services: | ||
| 711 | 554 |
Fees payable to Deloitte LLP for the audit of the annual accounts of AEGIS Managing Agency Limited are $54,049 (2024
restated: $64,777. Fees payable for audit-related assurance services provided to the Managing Agent are $19,774 (2024
restated: $17,916). There were no other fees payable for the provision of other non-audit services.
Member’s standard personal expenses of $25,101k (2024 restated:$20,141k) are included within administrative expenses
of $125,084k (2024 restated:$122,021k). Other technical income, net of reinsurance, includes consortium fees and profit
commission for 2025 of $16,988k (2024 restated: $13,913k). The syndicate does not have any impairment losses.
Total commissions for direct insurance business for the year amounted to $261,161k (2024 restated: $248,290k).
6. Prior years’ claims estimate
The estimate for claims at the beginning of the year as compared with net payments and provisions at the end of the year in
respect of prior years’ claims are as follows:
| 2025 | 2024 restated | |
| $000 | $000 | |
Marine, aviation and transport | 28,952 | 21,656 |
Fire and other damage to property | 73,121 | 68,164 |
Third party liability | (10,186) | 15,984 |
Miscellaneous | (6,885) | 1,725 |
Favourable movement in technical provisions |
The movement in estimate of the prior year is driven mainly by favourable loss experience and incurred claims forms a 8%
(2024:11%) component of the 2025 loss ratio of 33% (2024:39%). The earned loss ratio represents net incurred losses
divided by net earned premium.
Syndicate 1225 For the year ended 31 December 2025
30
Notes to the financial statements continued
(Forming part of the financial statements)
7. Staff numbers and costs
Employees
The monthly average number of employees, including executive directors, employed by AEGIS Managing Agency Limited
during the year was as follows:
| 2025 | 2024 restated | |
Administration and finance | | |
Underwriting and reinsurance | ||
Claims | ||
Salary costs
The following amounts were recharged by the Managing Agency to the syndicate in respect of salary costs:
| 2025 | 2024 restated | |
| $000 | $000 | |
Wages and salaries | ||
Social security costs | ||
Other pension costs | ||
8. Directors’ remuneration
AEGIS Managing Agency Limited charged the syndicate the following amounts in respect of remuneration paid to its directors
and the active underwriter of the syndicate:
| 2025 | 2024 restated | |
| $000 | $000 | |
Emoluments | ||
Pension contributions | ||
| 2,707 | 2,580 |
The following aggregate remuneration was charged to the syndicate in respect of the highest paid director:
2025
2024 restated
$000
$000
Emoluments
529
527
The following aggregate remuneration was charged to the syndicate in respect of the person holding the position of Active
Underwriter:
| 2025 | 2024 restated | |
| $000 | $000 | |
Emoluments |
During the year two directors accrued retirement benefits under a defined contribution pension scheme for the annual value
of $25,561 (2024 restated: Three for the annual value of $25,916).
Syndicate 1225 For the year ended 31 December 2025
31
Notes to the financial statements continued
(Forming part of the financial statements)
9. Financial assets and liabilities
Financial assets measured at fair value through profit or loss
Carrying value | At cost | |||
| 2025 | 2024 restated | 2025 | 2024 restated | |
| $000 | $000 | $000 | $000 | |
Shares and other variable yield securities | ||||
Debt securities and other fixed income securities | ||||
Syndicate loan to central fund | ||||
Total financial investments | ||||
All overseas deposits $75,484k (2024 restated: $70,439k) are held at fair value through profit or loss.
Other investments that are deposits with ceding undertakings totaling $736k (2024 restated: $1,635k) are held at fair value
and represent cash transferred to Lloyd’s Insurance Company, SA (“LIC”) following the transfer to LIC of all EEA risks from
the syndicate on 30 December 2020. This amount is held by LIC in order to meet claims liabilities as they fall due.
Debt securities and other fixed income securities listed on recognised stock exchanges have a carrying value of $790,511k
(2024 restated: $803,450k). All investments are held at fair value through profit or loss. All income, expenses and unrealised
gains and losses as a change in the fair value on these investments are presented on the face of the Statement of Total
Comprehensive Income $92,999k (2024 restated: $62,477k.)
Financial assets and liabilities measured at amortised cost
The table below shows financial assets and liabilities measured at amortised cost:
| 2025 | 2024 | |
restated | ||
| $000 | $000 | |
| Debtors arising out of direct insurance and reinsurance operations | 456,644 | 419,236 |
Other debtors | 14,635 | 11,982 |
Total financial assets measured at amortised cost | ||
| Creditors arising out of direct insurance and reinsurance operations | 159,602 | 147,149 |
| Other creditors | 17,940 | 35,287 |
Total financial liabilities measured at amortised cost |
Cash and cash equivalents
The table below shows an analysis of cash and cash equivalents:
| 2025 | 2024 | |
restated | ||
| $000 | $000 | |
| Cash at bank in hand | ||
Short term debt instruments presented within other financial investments | ||
Total cash and cash equivalents |
The syndicate classifies its financial instruments held at fair value in its balance sheet using a fair value hierarchy, as follows:
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2 - Prices based on recent transactions in identical assets (either unadjusted or adjusted)
Level 3 - Prices determined using a valuation technique
Level 3 comprises syndicate Loans provided by the syndicate to the Central Fund at Lloyd’s in respect of the 2020 year of
account and Private Credit funds. These instruments are not tradeable and are valued using discounted cash flow models,
designed to appropriately reflect the credit and illiquidity risk of the instruments.
The table below analyses financial instruments held at fair value in the syndicate’s balance sheet at the reporting date by its
level in the fair value hierarchy.
Syndicate 1225 For the year ended 31 December 2025
32
Notes to the financial statements continued
(Forming part of the financial statements)
9. Financial assets and liabilities continued
| 2025 | ||||
Level 1 | Level 2 | Level 3 | Balance | |
sheet | ||||
position | ||||
| $000 | $000 | $000 | $000 | |
Shares and other variable yield securities and units in unit trusts | ||||
Debt securities and other fixed income securities | ||||
Total | |
| 2024 restated | ||||
Level 1 | Level 2 | Level 3 | Balance | |
sheet | ||||
position | ||||
| $000 | $000 | $000 | $000 | |
Shares and other variable yield securities and units in unit trusts | ||||
Debt securities and other fixed income securities | ||||
Syndicate loans to central fund | ||||
Total |
Deposits with ceding undertakings 2025: $736k (2024 restated: $1,635k) are classified as level 2. The Syndicate loan to
central fund was fully repaid in 2025. The fair value level 3 balance of $7.5m for 2025 is made up of Private Credit funds.
10. Technical provisions
The exchange rate movement reflects the opening provision at opening vs closing rates of exchange together with the
difference between the technical account movement at average vs closing rates of exchange.
Provision for unearned premium
2025
2024 restated
Gross
Provisions
Reinsurance
Net
Gross
Provisions
Reinsurance
Net
$000
$000
$000
$000
$000
$000
At 1 January
(137,009 )
(138,140 )
Premiums written during the
year
(262,026 )
(257,573 )
Premiums earned during the
year
(1,301,703 )
(1,037,116 )
(1,265,568 )
(1,006,995 )
Foreign exchange movements
(1,848 )
(6,000 )
(5,869 )
At 31 December
(136,296 )
(137,009 )
Provision for claims outstanding
2025
2024 restated
Gross
Provisions
Reinsurance
Net
Gross
Provisions
Reinsurance
Net
$000
$000
$000
$000
$000
$000
At 1 January
(565,134 )
(547,496 )
Claims paid during the year
(503,063 )
(363,361 )
(473,637 )
(346,775 )
Expected cost of current year
claims
(149,039 )
(145,342 )
Foreign exchange movements
(2,078 )
(13,938 )
(13,096 )
At 31 December
(576,549 )
(565,134 )
Syndicate 1225 For the year ended 31 December 2025
33
Notes to the financial statements continued
(Forming part of the financial statements)
10. Technical provisions continued
Deferred acquisition costs
2025
2024 restated
Gross
Provisions
Reinsurance
Net
Gross
Provisions
Reinsurance
Net
$000
$000
$000
$000
$000
$000
At 1 January
Incurred deferred acquisition
costs
(689 )
(689 )
Amortised deferred acquisition
costs
Foreign exchange movements
(1,752 )
(1,752 )
At 31 December
11. Claims development
Claims development is shown in the tables below, both gross and net of reinsurance ceded, on an underwriting year basis.
Balances have been translated at exchange rates prevailing at 31 December 2025 in all cases.
The below tables show the pure year earned claims reserves and cumulative payments, gross and net of reinsurance.
Gross reserves
and
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Total
payments
$000
$000
$000
$000
$000
$000
$000
$000
$000
$000
$000
At end of
underwriting year
One year later
Two years later
Three years later
Four years later
Five years later
Six years later
Seven years later
Eight years later
Nine years later
Cumulative
payments
(366,984 )
(427,187 )
(379,181 )
(420,945 )
(337,323 )
(358,778 )
(346,853 )
(219,271 )
(195,533 )
(29,056 )
Estimated
balance to pay
1,591,399
2015 & Prior
Gross reserves
Net reserves and
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Total
payments
$000
$000
$000
$000
$000
$000
$000
$000
$000
$000
$000
At end of
underwriting year
One year later
Two years later
Three years later
Four years later
Five years later
Six years later
Seven years later
Eight years later
Nine years later
Cumulative
payments
(253,523 )
(292,742 )
(272,178 )
(264,108 )
(240,494 )
(252,636 )
(272,807 )
(183,394 )
(166,716 )
(26,133 )
Estimated
balance to pay
1,050,226
2015 & Prior
Net reserves
Syndicate 1225 For the year ended 31 December 2025
34
Notes to the financial statements continued
(Forming part of the financial statements)
12. Debtors and creditors arising out of direct insurance and reinsurance operations
2025
Due within one
year
Due after one year
Total
$000
$000
$000
Debtors arising out of direct insurance operations
Debtors arising out of reinsurance operations
Creditors arising out of direct insurance operations
Creditors arising out of reinsurance operations
2024 restated | |||
Due within one year | Due after one year | Total | |
| $000 | $000 | $000 | |
Debtors arising out of direct insurance operations | |||
| Debtors arising out of reinsurance operations | |||
Creditors arising out of direct insurance operations | |||
Creditors arising out of reinsurance operations |
13. Other Debtors
The table below shows an analysis of other debtors:
| 2025 | 2024 | |
restated | ||
| $000 | $000 | |
| Other debtors | ||
Total |
14. Other Creditors
The table below shows an analysis of other creditors:
| 2025 | 2024 | |
restated | ||
| $000 | $000 | |
Other related party balances non-syndicates | ||
| Other liabilities | ||
Total |
15. Distribution and open years of account
A distribution of $355,051k to the member will be proposed in relation to the closing year of account 2023. A distribution of
$288,263k was made to the member in relation to the closing year of account 2022. Following the closing of the 2023 year
of account a reinsurance to close of $680,746k will transfer from the member of the closing 2023 and prior year of account
to the member of the 2024 year of account as at 31 December 2025.
The table below shows the current reporting year total comprehensive income of the years of account remaining open after
the three-year period.
| 2025 | 2024 restated | |
Year of account | $000 | $000 |
| 2022 | ||
| 2023 | ||
| 2024 | ( | |
| 2025 | ( | |
Total comprehensive income | 390,852 | 306,844 |
Syndicate 1225 For the year ended 31 December 2025
35
Notes to the financial statements continued
(Forming part of the financial statements)
16. Foreign exchange rates
The following currency exchange rates have been used for principal foreign currency transactions:
2025
2024 restated
Start of
period 1
January 2025
rate
End of
period 31
December
2025 rate
Average rate
period
ending 31
December
2025 rate
Start of
period 1
January
2024 rate
End of
period 31
December
2024 rate
Average
rate period
ending 31
December
2024 rate
US dollar
Canadian dollar
GBP
17. Related parties
The ultimate parent company of AEGIS Managing Agency Limited is Associated Electric & Gas Insurance Services Limited
incorporated in Bermuda.
The Managing Agent recharges the syndicate expenses incurred by the Managing Agent in connection with the syndicate’s
underwriting business. These recharges include a proportion of the remuneration payable in respect of the executives of the
Managing Agent. The total recharge for the year was $84,808k (2024 restated: $81,613k). The balance owed to the
Managing Agent at 31 December 2025 was $12,041k (2024 restated: $28,857k).
In turn, AEGIS Insurance Services Inc. (“AEGIS Services”), a related company of the Managing Agent, recharges the
syndicate the cost of certain expenses paid by AEGIS Services on behalf of the syndicate. During the year, the net amount
of these recharges was $2,524k (2024 restated: $3,799k) expense to the syndicate.
The above related party transactions are settled on a regular basis and not bound by any other terms and conditions.
Service Company
AEGIS London Holdings Limited, the company that owns the capital providers of the syndicate, has a 100% subsidiary,
AEGIS London Services Limited, which introduces business to the syndicate (the “Service Company”). The Service
Company premium income received by the syndicate is $9,585k (2024 restated: $11,306k) largely relating to the Hull, Retail
and Canadian Non-Marine Property classes of business.
The underwriting transactions of the Service Company are included in those of the syndicate. The Service Company receives
agency fees to the value of 5% of gross written premiums placed with the syndicate. No fees are paid by the Service
Company to any of the directors of the Managing Agent.
Transactions with Directors
Certain directors of the Managing Agent are also directors of other companies, which may, and in some instances do, conduct
business with the syndicate. In all cases transactions between the syndicate are carried out on normal arm’s length
commercial terms without any involvement by the director concerned on either side of the transaction.
18. Funds at Lloyd’s
Capital framework at Lloyd’s
The Society of Lloyd’s (Lloyd’s) is a regulated undertaking and subject to the supervision of the Prudential Regulatory
Authority (PRA) under the Financial Services and Markets Act 2000 and in accordance with the (on-shored) Solvency II
framework.
Within this supervisory framework, Lloyd’s applies capital requirements at member level and centrally to ensure that Lloyd’s
complies with the Solvency II 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 the syndicate level as a
starting point, the requirement to meet Solvency II and Lloyd’s capital requirements apply at overall and member and
syndicate level respectively. The capital requirement in respect of the syndicate is not disclosed in these financial statements.
Syndicate 1225 For the year ended 31 December 2025
36
Notes to the financial statements continued
(Forming part of the financial statements)
18. Funds at Lloyd’s continued
Lloyd’s capital setting process
In order to meet Lloyd’s requirements, each syndicate is required to calculate its Solvency Capital Requirement (SCR) for
the prospective underwriting year. This amount must be sufficient to cover a 1 in 200 year loss, reflecting uncertainty in the
ultimate run-off of underwriting liabilities (SCR ‘to ultimate’). The syndicate must also calculate its SCR at the same
confidence level but reflecting uncertainty over a one-year time horizon (one year SCR) for Lloyd’s to use in meeting Solvency
II requirements. The SCRs of the syndicate are subject to review and approval by Lloyd’s.
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 is participating but not other members’ shares. Accordingly, the capital
requirement that Lloyd’s sets for each member operates on a similar basis. Each member’s SCR shall thus be determined
by the sum of the member’s share of the syndicate SCR ‘to ultimate’. Where a member participates on more than one
syndicate, a credit for diversification is provided to reflect the spread of risk, but consistent with determining an SCR which
reflects the capital requirement to cover a 1 in 200 year loss ‘to ultimate’ for that member. Over and above this, Lloyd’s
applies a capital uplift to the member’s capital requirement, known as the Economic Capital Assessment (ECA).
The purpose of this uplift, which is a Lloyd’s not a Solvency II requirement, is to meet Lloyd’s financial strength, licence and
ratings objectives. The capital uplift applied for 2025 was 35% (2024 restated: 35%) of the member’s SCR ‘to ultimate’, which
is consistent with previous years.
From 1 January 2026 a new corporate member, AEGIS Electric & Gas International Services 6 Ltd (“AISL6”) is participating
100% from year of account 2026 onwards and provides capital in support of the syndicate, currently through inter-availability
of funds between AISL and AISL 6.
Provision of capital by members
The members may provide capital to meet its ECA either by assets held in trust by Lloyd’s specifically for those members
(Funds at Lloyd’s), held within and managed within a syndicate (Funds in syndicate) or as the member’s share of the
members’ balances on each syndicate on which it participates.
Accordingly, all the assets less liabilities of the syndicate, as represented in the members’ balances reported on the balance
sheet on pages 11 and 12, represent resources available to meet members’ and Lloyd’s capital requirements.
19. Commitments
As at 31 December 2025 the Syndicate had committed uninvested funds of $44.6m to a Private Credit fund.
20. Ultimate parent
The Managing Agent of the syndicate is AEGIS Managing Agency Limited whose immediate parent and the smallest group
into which the accounts are consolidated is AEGIS London Holdings Limited, registered office, 25 Fenchurch Avenue,
London, England, EC3M 5AD. The ultimate parent and controlling party, and the largest group into which the accounts are
consolidated, is Associated Electric & Gas Insurance Services Limited, incorporated in Bermuda with its registered address
at 6
th
Floor, 141 Front Street, Hamilton, HM19, Bermuda. A copy of AEGIS group accounts may be obtained from 30 Hudson
Street, Jersey City, NJ 07302.
Syndicate 1225 For the year ended 31 December 2025
37
Administration
Managing Agent: AEGIS Managing Agency Limited
Registered Office: 25 Fenchurch Avenue, London, EC3M 5AD, England and Wales
Registered Number: 03413859
Telephone: +44 (0)20 7856 7856
Website: www.AEGISLondon.co.uk
E-mail: enquiries@AEGISLondon.co.uk
AEGIS Syndicate 1225 at Lloyd’s of London (“Syndicate 1225”) commenced operations in 1999. Syndicate 1225 operations
are supported by AEGIS Managing Agency Limited (“AMAL”), which provides professional employees and services for
Syndicate 1225. AEGIS Electric & Gas International Services Limited (“AISL”) is a corporate member of Lloyd’s and the
capital provider of Syndicate 1225. AISL, AMAL, AEGIS London Services Limited, AEGIS Electric & Gas International
Services 2 Limited, AEGIS Electric & Gas International Services 3 Limited, AEGIS Electric & Gas International Services 4
Limited, AEGIS Electric & Gas International Services 5 Limited and AEGIS Electric & Gas International Services 6 Limited
are subsidiaries of AEGIS London Holdings Limited, and ultimately owned by Associated Electric & Gas Insurance Services
Limited (“AEGIS”).
