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2025-12-31 2488 lloyds:JapaneseYen 2025-12-31 2488 lloyds:SouthAfricanRand 2025-12-31 2488 lloyds:SwissFranc 2025-12-31 2488 lloyds:NorwegianKrone 2025-12-31 2488 lloyds:SwedishKrona 2025-12-31 2488 lloyds:DanishKrone 2025-12-31 2488 lloyds:HongKongDollar 2025-12-31 2488 lloyds:NewZealandDollar 2025-12-31 2488 lloyds:SingaporeDollar 2025-12-31 2488 lloyds:OtherCurrencies 2025-12-31 2488 lloyds:Investments lloyds:PoundSterling 2024-12-31 2488 lloyds:Investments lloyds:USDollar 2024-12-31 2488 lloyds:Investments lloyds:Euro 2024-12-31 2488 lloyds:Investments lloyds:CanadianDollar 2024-12-31 2488 lloyds:Investments lloyds:AustralianDollar 2024-12-31 2488 lloyds:Investments lloyds:JapaneseYen 2024-12-31 2488 lloyds:Investments lloyds:OtherCurrencies 2024-12-31 2488 lloyds:Investments 2024-12-31 2488 lloyds:ReinsurersShareTechnicalProvisions lloyds:PoundSterling 2024-12-31 2488 lloyds:ReinsurersShareTechnicalProvisions lloyds:USDollar 2024-12-31 2488 lloyds:ReinsurersShareTechnicalProvisions lloyds:Euro 2024-12-31 2488 lloyds:ReinsurersShareTechnicalProvisions lloyds:CanadianDollar 2024-12-31 2488 lloyds:ReinsurersShareTechnicalProvisions lloyds:AustralianDollar 2024-12-31 2488 lloyds:ReinsurersShareTechnicalProvisions lloyds:JapaneseYen 2024-12-31 2488 lloyds:ReinsurersShareTechnicalProvisions lloyds:OtherCurrencies 2024-12-31 2488 lloyds:ReinsurersShareTechnicalProvisions 2024-12-31 2488 lloyds:Debtors lloyds:PoundSterling 2024-12-31 2488 lloyds:Debtors lloyds:USDollar 2024-12-31 2488 lloyds:Debtors lloyds:Euro 2024-12-31 2488 lloyds:Debtors lloyds:CanadianDollar 2024-12-31 2488 lloyds:Debtors lloyds:AustralianDollar 2024-12-31 2488 lloyds:Debtors lloyds:JapaneseYen 2024-12-31 2488 lloyds:Debtors lloyds:OtherCurrencies 2024-12-31 2488 lloyds:Debtors 2024-12-31 2488 lloyds:OtherAssets lloyds:PoundSterling 2024-12-31 2488 lloyds:OtherAssets lloyds:USDollar 2024-12-31 2488 lloyds:OtherAssets lloyds:Euro 2024-12-31 2488 lloyds:OtherAssets lloyds:CanadianDollar 2024-12-31 2488 lloyds:OtherAssets lloyds:AustralianDollar 2024-12-31 2488 lloyds:OtherAssets lloyds:JapaneseYen 2024-12-31 2488 lloyds:OtherAssets lloyds:OtherCurrencies 2024-12-31 2488 lloyds:OtherAssets 2024-12-31 2488 lloyds:PrepaymentsAccruedIncome lloyds:PoundSterling 2024-12-31 2488 lloyds:PrepaymentsAccruedIncome lloyds:USDollar 2024-12-31 2488 lloyds:PrepaymentsAccruedIncome lloyds:Euro 2024-12-31 2488 lloyds:PrepaymentsAccruedIncome lloyds:CanadianDollar 2024-12-31 2488 lloyds:PrepaymentsAccruedIncome lloyds:AustralianDollar 2024-12-31 2488 lloyds:PrepaymentsAccruedIncome lloyds:JapaneseYen 2024-12-31 2488 lloyds:PrepaymentsAccruedIncome lloyds:OtherCurrencies 2024-12-31 2488 lloyds:PrepaymentsAccruedIncome 2024-12-31 2488 lloyds:TotalAssets lloyds:PoundSterling 2024-12-31 2488 lloyds:TotalAssets lloyds:USDollar 2024-12-31 2488 lloyds:TotalAssets lloyds:Euro 2024-12-31 2488 lloyds:TotalAssets lloyds:CanadianDollar 2024-12-31 2488 lloyds:TotalAssets lloyds:AustralianDollar 2024-12-31 2488 lloyds:TotalAssets lloyds:JapaneseYen 2024-12-31 2488 lloyds:TotalAssets lloyds:SouthAfricanRand 2024-12-31 2488 lloyds:TotalAssets lloyds:SwissFranc 2024-12-31 2488 lloyds:TotalAssets lloyds:NorwegianKrone 2024-12-31 2488 lloyds:TotalAssets lloyds:SwedishKrona 2024-12-31 2488 lloyds:TotalAssets lloyds:DanishKrone 2024-12-31 2488 lloyds:TotalAssets lloyds:HongKongDollar 2024-12-31 2488 lloyds:TotalAssets lloyds:NewZealandDollar 2024-12-31 2488 lloyds:TotalAssets lloyds:SingaporeDollar 2024-12-31 2488 lloyds:TotalAssets lloyds:OtherCurrencies 2024-12-31 2488 lloyds:TotalAssets 2024-12-31 2488 lloyds:TechnicalProvisions lloyds:PoundSterling 2024-12-31 2488 lloyds:TechnicalProvisions lloyds:USDollar 2024-12-31 2488 lloyds:TechnicalProvisions lloyds:Euro 2024-12-31 2488 lloyds:TechnicalProvisions lloyds:CanadianDollar 2024-12-31 2488 lloyds:TechnicalProvisions lloyds:AustralianDollar 2024-12-31 2488 lloyds:TechnicalProvisions lloyds:JapaneseYen 2024-12-31 2488 lloyds:TechnicalProvisions lloyds:OtherCurrencies 2024-12-31 2488 lloyds:TechnicalProvisions 2024-12-31 2488 lloyds:ProvisionsForOtherRisks lloyds:PoundSterling 2024-12-31 2488 lloyds:ProvisionsForOtherRisks lloyds:USDollar 2024-12-31 2488 lloyds:ProvisionsForOtherRisks lloyds:Euro 2024-12-31 2488 lloyds:ProvisionsForOtherRisks lloyds:CanadianDollar 2024-12-31 2488 lloyds:ProvisionsForOtherRisks lloyds:AustralianDollar 2024-12-31 2488 lloyds:ProvisionsForOtherRisks lloyds:JapaneseYen 2024-12-31 2488 lloyds:ProvisionsForOtherRisks lloyds:OtherCurrencies 2024-12-31 2488 lloyds:ProvisionsForOtherRisks 2024-12-31 2488 lloyds:DepositsReceivedFromReinsurers lloyds:PoundSterling 2024-12-31 2488 lloyds:DepositsReceivedFromReinsurers lloyds:USDollar 2024-12-31 2488 lloyds:DepositsReceivedFromReinsurers lloyds:Euro 2024-12-31 2488 lloyds:DepositsReceivedFromReinsurers lloyds:CanadianDollar 2024-12-31 2488 lloyds:DepositsReceivedFromReinsurers lloyds:AustralianDollar 2024-12-31 2488 lloyds:DepositsReceivedFromReinsurers lloyds:JapaneseYen 2024-12-31 2488 lloyds:DepositsReceivedFromReinsurers lloyds:OtherCurrencies 2024-12-31 2488 lloyds:DepositsReceivedFromReinsurers 2024-12-31 2488 lloyds:Creditors lloyds:PoundSterling 2024-12-31 2488 lloyds:Creditors lloyds:USDollar 2024-12-31 2488 lloyds:Creditors lloyds:Euro 2024-12-31 2488 lloyds:Creditors lloyds:CanadianDollar 2024-12-31 2488 lloyds:Creditors lloyds:AustralianDollar 2024-12-31 2488 lloyds:Creditors lloyds:JapaneseYen 2024-12-31 2488 lloyds:Creditors lloyds:OtherCurrencies 2024-12-31 2488 lloyds:Creditors 2024-12-31 2488 lloyds:AccrualsDeferredIncome lloyds:PoundSterling 2024-12-31 2488 lloyds:AccrualsDeferredIncome lloyds:USDollar 2024-12-31 2488 lloyds:AccrualsDeferredIncome lloyds:Euro 2024-12-31 2488 lloyds:AccrualsDeferredIncome lloyds:CanadianDollar 2024-12-31 2488 lloyds:AccrualsDeferredIncome lloyds:AustralianDollar 2024-12-31 2488 lloyds:AccrualsDeferredIncome lloyds:JapaneseYen 2024-12-31 2488 lloyds:AccrualsDeferredIncome lloyds:OtherCurrencies 2024-12-31 2488 lloyds:AccrualsDeferredIncome 2024-12-31 2488 lloyds:TotalLiabilities lloyds:PoundSterling 2024-12-31 2488 lloyds:TotalLiabilities lloyds:USDollar 2024-12-31 2488 lloyds:TotalLiabilities lloyds:Euro 2024-12-31 2488 lloyds:TotalLiabilities lloyds:CanadianDollar 2024-12-31 2488 lloyds:TotalLiabilities lloyds:AustralianDollar 2024-12-31 2488 lloyds:TotalLiabilities lloyds:JapaneseYen 2024-12-31 2488 lloyds:TotalLiabilities lloyds:SouthAfricanRand 2024-12-31 2488 lloyds:TotalLiabilities lloyds:SwissFranc 2024-12-31 2488 lloyds:TotalLiabilities lloyds:NorwegianKrone 2024-12-31 2488 lloyds:TotalLiabilities lloyds:SwedishKrona 2024-12-31 2488 lloyds:TotalLiabilities lloyds:DanishKrone 2024-12-31 2488 lloyds:TotalLiabilities lloyds:HongKongDollar 2024-12-31 2488 lloyds:TotalLiabilities lloyds:NewZealandDollar 2024-12-31 2488 lloyds:TotalLiabilities lloyds:SingaporeDollar 2024-12-31 2488 lloyds:TotalLiabilities lloyds:OtherCurrencies 2024-12-31 2488 lloyds:TotalLiabilities 2024-12-31 2488 lloyds:PoundSterling 2024-12-31 2488 lloyds:USDollar 2024-12-31 2488 lloyds:Euro 2024-12-31 2488 lloyds:CanadianDollar 2024-12-31 2488 lloyds:AustralianDollar 2024-12-31 2488 lloyds:JapaneseYen 2024-12-31 2488 lloyds:SouthAfricanRand 2024-12-31 2488 lloyds:SwissFranc 2024-12-31 2488 lloyds:NorwegianKrone 2024-12-31 2488 lloyds:SwedishKrona 2024-12-31 2488 lloyds:DanishKrone 2024-12-31 2488 lloyds:HongKongDollar 2024-12-31 2488 lloyds:NewZealandDollar 2024-12-31 2488 lloyds:SingaporeDollar 2024-12-31 2488 lloyds:OtherCurrencies 2024-12-31 2488 lloyds:Plus50BasisPointsShiftInYieldCurves lloyds:ImpactOnResultBeforeTax 2025-01-01 2025-12-31 2488 lloyds:Plus50BasisPointsShiftInYieldCurves lloyds:ImpactOnMembersBalance 2025-01-01 2025-12-31 2488 lloyds:Plus50BasisPointsShiftInYieldCurves lloyds:ImpactOnResultBeforeTax 2024-01-01 2024-12-31 2488 lloyds:Plus50BasisPointsShiftInYieldCurves lloyds:ImpactOnMembersBalance 2024-01-01 2024-12-31 2488 lloyds:Minus50BasisPointsShiftInYieldCurves lloyds:ImpactOnResultBeforeTax 2025-01-01 2025-12-31 2488 lloyds:Minus50BasisPointsShiftInYieldCurves lloyds:ImpactOnMembersBalance 2025-01-01 2025-12-31 2488 lloyds:Minus50BasisPointsShiftInYieldCurves lloyds:ImpactOnResultBeforeTax 2024-01-01 2024-12-31 2488 lloyds:Minus50BasisPointsShiftInYieldCurves lloyds:ImpactOnMembersBalance 2024-01-01 2024-12-31 2488 lloyds:FivePercentIncreaseInEquityPrices lloyds:ImpactOnResultBeforeTax 2025-01-01 2025-12-31 2488 lloyds:FivePercentIncreaseInEquityPrices lloyds:ImpactOnMembersBalance 2025-01-01 2025-12-31 2488 lloyds:FivePercentIncreaseInEquityPrices lloyds:ImpactOnResultBeforeTax 2024-01-01 2024-12-31 2488 lloyds:FivePercentIncreaseInEquityPrices lloyds:ImpactOnMembersBalance 2024-01-01 2024-12-31 2488 lloyds:FivePercentDecreaseInEquityPrices lloyds:ImpactOnResultBeforeTax 2025-01-01 2025-12-31 2488 lloyds:FivePercentDecreaseInEquityPrices lloyds:ImpactOnMembersBalance 2025-01-01 2025-12-31 2488 lloyds:FivePercentDecreaseInEquityPrices lloyds:ImpactOnResultBeforeTax 2024-01-01 2024-12-31 2488 lloyds:FivePercentDecreaseInEquityPrices lloyds:ImpactOnMembersBalance 2024-01-01 2024-12-31 2488 lloyds:AccidentHealth lloyds:GrossPremiumsWrittenLoB 2025-01-01 2025-12-31 2488 lloyds:AccidentHealth lloyds:GrossPremiumsEarnedLoB 2025-01-01 2025-12-31 2488 lloyds:AccidentHealth lloyds:GrossClaimsIncurredLoB 2025-01-01 2025-12-31 2488 lloyds:AccidentHealth lloyds:GrossOperatingExpensesLoB 2025-01-01 2025-12-31 2488 lloyds:AccidentHealth lloyds:ReinsuranceBalanceLoB 2025-01-01 2025-12-31 2488 lloyds:AccidentHealth lloyds:UnderwritingResult 2025-01-01 2025-12-31 2488 lloyds:MotorThirdPartyLiability lloyds:GrossPremiumsWrittenLoB 2025-01-01 2025-12-31 2488 lloyds:MotorThirdPartyLiability lloyds:GrossPremiumsEarnedLoB 2025-01-01 2025-12-31 2488 lloyds:MotorThirdPartyLiability lloyds:GrossClaimsIncurredLoB 2025-01-01 2025-12-31 2488 lloyds:MotorThirdPartyLiability lloyds:GrossOperatingExpensesLoB 2025-01-01 2025-12-31 2488 lloyds:MotorThirdPartyLiability lloyds:ReinsuranceBalanceLoB 2025-01-01 2025-12-31 2488 lloyds:MotorThirdPartyLiability lloyds:UnderwritingResult 2025-01-01 2025-12-31 2488 lloyds:MotorOtherClasses lloyds:GrossPremiumsWrittenLoB 2025-01-01 2025-12-31 2488 lloyds:MotorOtherClasses lloyds:GrossPremiumsEarnedLoB 2025-01-01 2025-12-31 2488 lloyds:MotorOtherClasses lloyds:GrossClaimsIncurredLoB 2025-01-01 2025-12-31 2488 lloyds:MotorOtherClasses lloyds:GrossOperatingExpensesLoB 2025-01-01 2025-12-31 2488 lloyds:MotorOtherClasses lloyds:ReinsuranceBalanceLoB 2025-01-01 2025-12-31 2488 lloyds:MotorOtherClasses lloyds:UnderwritingResult 2025-01-01 2025-12-31 2488 lloyds:MarineAviationTransport lloyds:GrossPremiumsWrittenLoB 2025-01-01 2025-12-31 2488 lloyds:MarineAviationTransport lloyds:GrossPremiumsEarnedLoB 2025-01-01 2025-12-31 2488 lloyds:MarineAviationTransport lloyds:GrossClaimsIncurredLoB 2025-01-01 2025-12-31 2488 lloyds:MarineAviationTransport lloyds:GrossOperatingExpensesLoB 2025-01-01 2025-12-31 2488 lloyds:MarineAviationTransport lloyds:ReinsuranceBalanceLoB 2025-01-01 2025-12-31 2488 lloyds:MarineAviationTransport lloyds:UnderwritingResult 2025-01-01 2025-12-31 2488 lloyds:FireOtherDamageToProperty lloyds:GrossPremiumsWrittenLoB 2025-01-01 2025-12-31 2488 lloyds:FireOtherDamageToProperty lloyds:GrossPremiumsEarnedLoB 2025-01-01 2025-12-31 2488 lloyds:FireOtherDamageToProperty lloyds:GrossClaimsIncurredLoB 2025-01-01 2025-12-31 2488 lloyds:FireOtherDamageToProperty lloyds:GrossOperatingExpensesLoB 2025-01-01 2025-12-31 2488 lloyds:FireOtherDamageToProperty lloyds:ReinsuranceBalanceLoB 2025-01-01 2025-12-31 2488 lloyds:FireOtherDamageToProperty lloyds:UnderwritingResult 2025-01-01 2025-12-31 2488 lloyds:ThirdPartyLiability lloyds:GrossPremiumsWrittenLoB 2025-01-01 2025-12-31 2488 lloyds:ThirdPartyLiability lloyds:GrossPremiumsEarnedLoB 2025-01-01 2025-12-31 2488 lloyds:ThirdPartyLiability lloyds:GrossClaimsIncurredLoB 2025-01-01 2025-12-31 2488 lloyds:ThirdPartyLiability lloyds:GrossOperatingExpensesLoB 2025-01-01 2025-12-31 2488 lloyds:ThirdPartyLiability lloyds:ReinsuranceBalanceLoB 2025-01-01 2025-12-31 2488 lloyds:ThirdPartyLiability lloyds:UnderwritingResult 2025-01-01 2025-12-31 2488 lloyds:CreditSuretyship lloyds:GrossPremiumsWrittenLoB 2025-01-01 2025-12-31 2488 lloyds:CreditSuretyship lloyds:GrossPremiumsEarnedLoB 2025-01-01 2025-12-31 2488 lloyds:CreditSuretyship lloyds:GrossClaimsIncurredLoB 2025-01-01 2025-12-31 2488 lloyds:CreditSuretyship lloyds:GrossOperatingExpensesLoB 2025-01-01 2025-12-31 2488 lloyds:CreditSuretyship lloyds:ReinsuranceBalanceLoB 2025-01-01 2025-12-31 2488 lloyds:CreditSuretyship lloyds:UnderwritingResult 2025-01-01 2025-12-31 2488 lloyds:LegalExpenses lloyds:GrossPremiumsWrittenLoB 2025-01-01 2025-12-31 2488 lloyds:LegalExpenses lloyds:GrossPremiumsEarnedLoB 2025-01-01 2025-12-31 2488 lloyds:LegalExpenses lloyds:GrossClaimsIncurredLoB 2025-01-01 2025-12-31 2488 lloyds:LegalExpenses lloyds:GrossOperatingExpensesLoB 2025-01-01 2025-12-31 2488 lloyds:LegalExpenses lloyds:ReinsuranceBalanceLoB 2025-01-01 2025-12-31 2488 lloyds:LegalExpenses lloyds:UnderwritingResult 2025-01-01 2025-12-31 2488 lloyds:Assistance lloyds:GrossPremiumsWrittenLoB 2025-01-01 2025-12-31 2488 lloyds:Assistance lloyds:GrossPremiumsEarnedLoB 2025-01-01 2025-12-31 2488 lloyds:Assistance lloyds:GrossClaimsIncurredLoB 2025-01-01 2025-12-31 2488 lloyds:Assistance lloyds:GrossOperatingExpensesLoB 2025-01-01 2025-12-31 2488 lloyds:Assistance lloyds:ReinsuranceBalanceLoB 2025-01-01 2025-12-31 2488 lloyds:Assistance lloyds:UnderwritingResult 2025-01-01 2025-12-31 2488 lloyds:Miscellaneous lloyds:GrossPremiumsWrittenLoB 2025-01-01 2025-12-31 2488 lloyds:Miscellaneous lloyds:GrossPremiumsEarnedLoB 2025-01-01 2025-12-31 2488 lloyds:Miscellaneous lloyds:GrossClaimsIncurredLoB 2025-01-01 2025-12-31 2488 lloyds:Miscellaneous lloyds:GrossOperatingExpensesLoB 2025-01-01 2025-12-31 2488 lloyds:Miscellaneous lloyds:ReinsuranceBalanceLoB 2025-01-01 2025-12-31 2488 lloyds:Miscellaneous lloyds:UnderwritingResult 2025-01-01 2025-12-31 2488 lloyds:Life lloyds:GrossPremiumsWrittenLoB 2025-01-01 2025-12-31 2488 lloyds:Life lloyds:GrossPremiumsEarnedLoB 2025-01-01 2025-12-31 2488 lloyds:Life lloyds:GrossClaimsIncurredLoB 2025-01-01 2025-12-31 2488 lloyds:Life lloyds:GrossOperatingExpensesLoB 2025-01-01 2025-12-31 2488 lloyds:Life lloyds:ReinsuranceBalanceLoB 2025-01-01 2025-12-31 2488 lloyds:Life lloyds:UnderwritingResult 2025-01-01 2025-12-31 2488 lloyds:DirectInsuranceSubtotal lloyds:GrossPremiumsWrittenLoB 2025-01-01 2025-12-31 2488 lloyds:DirectInsuranceSubtotal lloyds:GrossPremiumsEarnedLoB 2025-01-01 2025-12-31 2488 lloyds:DirectInsuranceSubtotal lloyds:GrossClaimsIncurredLoB 2025-01-01 2025-12-31 2488 lloyds:DirectInsuranceSubtotal lloyds:GrossOperatingExpensesLoB 2025-01-01 2025-12-31 2488 lloyds:DirectInsuranceSubtotal lloyds:ReinsuranceBalanceLoB 2025-01-01 2025-12-31 2488 lloyds:DirectInsuranceSubtotal lloyds:UnderwritingResult 2025-01-01 2025-12-31 2488 lloyds:ReinsuranceAcceptances lloyds:GrossPremiumsWrittenLoB 2025-01-01 2025-12-31 2488 lloyds:ReinsuranceAcceptances lloyds:GrossPremiumsEarnedLoB 2025-01-01 2025-12-31 2488 lloyds:ReinsuranceAcceptances lloyds:GrossClaimsIncurredLoB 2025-01-01 2025-12-31 2488 lloyds:ReinsuranceAcceptances lloyds:GrossOperatingExpensesLoB 2025-01-01 2025-12-31 2488 lloyds:ReinsuranceAcceptances lloyds:ReinsuranceBalanceLoB 2025-01-01 2025-12-31 2488 lloyds:ReinsuranceAcceptances lloyds:UnderwritingResult 2025-01-01 2025-12-31 2488 lloyds:GrossPremiumsWrittenLoB 2025-01-01 2025-12-31 2488 lloyds:GrossPremiumsEarnedLoB 2025-01-01 2025-12-31 2488 lloyds:GrossClaimsIncurredLoB 2025-01-01 2025-12-31 2488 lloyds:GrossOperatingExpensesLoB 2025-01-01 2025-12-31 2488 lloyds:ReinsuranceBalanceLoB 2025-01-01 2025-12-31 2488 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Classification: Unclassified
Annual Report and Financial Statements
Syndicate 2488
for the year ended
31 December 2025
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Contents
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Active Underwriter’s Report
2025 Reflections
I am pleased to report that 2025 was another successful year for Syndicate 2488 (“the syndicate”). Gross written premiums were £766.7 million, more than 5% above prior year despite a softening market, as we successfully executed our underwriting strategies and distribution initiatives to retain and win more business. We reported a healthy underwriting profit of £139.1 million with an associated combined ratio of 78.8%, which together with robust investment returns, generated a profit for the year of £247.7 million.
2025 saw further softening within the London market, with rates deteriorating faster than anticipated due to the growth appetites of new delegated underwriting authority enterprises and expanded broker facilities, in addition to increased levels of competition within the more established markets. Overall pricing on the syndicate’s renewal portfolio was down circa 4%, with single-digit reductions in Marine, Property, Cyber and Financial Lines. Rate adequacy generally remained strong, and terms and conditions were largely maintained, although there were some more challenging classes where we cut back our new business targets to protect profitability margins. Growth was driven by leveraging trading relationships with our distribution partners and focusing on specific initiatives designed to increase in-appetite submission flows and generate a good pipeline of high-quality risks.
Our continued focus on maintaining underwriting discipline, performance record and effective business planning, together with our strong governance framework and controls, again contributed to Syndicate 2488 being rated "Outperforming" by Lloyd's, the highest status awarded to any syndicate.
2025 Financial Performance
Syndicate 2488 underwrote £766.7 million of gross written premium in the year, an increase of 5.4% on the £727.5 million reported at year end 2024 (or 8.5% at constant rates of exchange). Net written premiums for the year increased by 5.4%, rising to £672.6 million from £638.3 million the previous year.
The syndicate reported underwriting profits of £139.1 million, £5.0 million more than in 2024. The results benefited from prior period reserve releases of £10.7 million. Net catastrophe related losses, primarily relating to Hurricane Melissa, Los Angeles wildfires and other US weather events, amounted to £34.0 million, lower than the £55.2 million reported in 2024, and well within with the syndicate’s risk tolerances.
At £98.8 million, total investment returns were £10.1 million higher than last year, with the fixed income portfolio benefiting from favourable sovereign and corporate yield movements.
Looking Ahead
After a period of predominantly hard market-related growth, falling rates and a more volatile macroeconomic and geopolitical environment, together with the increased risk of more frequent and severe weather events, could signal challenges ahead. In the absence of a market-changing event, the softening of the Lloyd’s and London wholesale markets is anticipated to continue throughout 2026, and risk selection will remain key to maintaining profitability.
Underwriting discipline is at the heart of Chubb’s operating philosophy. We balance growth ambitions with the need for rate adequacy and always prioritise the quality of the risks we accept over volume of business or market share. We manage risk through careful pricing and robust risk selection, an approach that has allowed us to maintain profitability throughout market cycles. Our focus continues to be on retaining our existing accounts and working with our broker partners to maximise new growth opportunities.
And finally…
Brokers and clients continue to recognise Syndicate 2488 as a trusted insurance partner with a strong balance sheet, brand and reputation and a broad product portfolio. We have the expertise to offer best-
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in-class lead capacity and have a proven track record of delivering market-leading service. We aim to provide the best insurance solutions for our clients and are well-positioned to take advantage of opportunities as and when they arise.
Chubb has a very strong culture and is committed to superior underwriting, service and execution. We aim to attract and retain the best talent, and train and develop our people to help them reach their fullest potential. We simply could not have achieved the excellent results we have reported this year without the hard work and dedication of the whole syndicate team, and I would like to take the opportunity to thank all my colleagues across the organisation for their continued contributions.
I would also like to thank all our broker partners for their support. Our strong relationships have enabled us to align our risk appetite and underwriting strategies to build additional revenue and I look forward to increasing our engagement with the London Market broker community even further in the year ahead.
R Q Wilson
Chief Underwriting Officer and Active Underwriter, Chubb Underwriting Agencies Limited
20 February 2026
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Managing Agent’s report
The Board of Directors (“the Board”) of the syndicate’s managing agent, Chubb Underwriting Agencies Limited (“CUAL”) are pleased to submit their report and the audited syndicate annual accounts for the year ended 31 December 2025.
This report and accounts are prepared using the annual basis of accounting as required by the Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 (“the 2008 Lloyd’s Regulations”) as amended by The Statutory Auditors and Third Country Auditors Regulations 2017 (the “Regulations”). In addition to this statutory requirement, the report also addresses other aspects of the syndicate’s business which the Board believes will be of benefit to interested parties.
Ownership
Chubb Limited, the ultimate parent of CUAL, is the Swiss-incorporated holding company of the Chubb Group of Companies. Chubb Limited and its direct and indirect subsidiaries, collectively the Chubb Group of Companies (“Chubb”), are a global insurance and reinsurance organisation. At 31 December 2025, Chubb Limited held total assets of $272.3 billion and shareholders’ equity of $79.8 billion. It is listed on the New York Stock Exchange (NYSE: CB) and is a component of the S&P 500 index. Chubb employs approximately 43,000 people worldwide.
Business Overview
Chubb is a world leader in insurance. With operations in 54 countries and territories, Chubb provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients. It is defined by its extensive product and service offerings, broad distribution capabilities, exceptional financial strength and local operations globally.
The company manages risk on both sides of its balance sheet by maintaining underwriting discipline, managing exposure accumulations and investing assets conservatively. Chubb’s core operating insurance companies maintain financial strength ratings of “AA” from Standard & Poor’s and “A++” from A.M. Best.
Syndicate 2488 is a strategically important business within Chubb, allowing the group to access specialist Lloyd’s and London market risks. The syndicate offers its clients a broad range of insurance and risk solutions, with policies primarily written under the name “Chubb Global Markets” (“CGM”) which capitalises on the distinctiveness and strength of the Chubb brand and acknowledges the group’s strong insurance platforms, reputation, skill sets and consistent management philosophy.
The structure of the syndicate’s operations allows the underwriters formal and informal interaction with their Chubb underwriting peers across the world. With longstanding client relationships and multi-line global platforms, Syndicate 2488 enjoys a position as a lead insurer in the key lines in which it chooses to compete, with a significant presence in the Lloyd’s market.
CGM’s underwriting products are offered principally through Syndicate 2488 and Chubb European Group SE (“CEG”), a French domiciled company which offers a wide range of property, casualty and accident and health insurance and reinsurance products to both retail and wholesale markets. Business may also be written through a number of overseas Chubb companies. Factors influencing the decision to place business with the syndicate, CEG or an overseas company include licensing eligibilities and capital requirements, but predominantly reflect client and broker preference.
Syndicate 2488 underwrites a diverse portfolio of business organised into product lines including property, marine, financial lines and cyber.
The 2025 split of gross written premiums by major product line is illustrated below. The split is similar to 2024.
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* Other includes political risk & credit, aviation and energy
Syndicate 2488 benefits from comprehensive and fully integrated support functions encompassing claims, finance and actuarial, risk management, legal and compliance, human resources, operations and IT. Some of the support functions are outsourced to specialist third party service providers and some of their services are performed outside of the UK.
Business Objectives & Strategy
Syndicate 2488 has market-leading risk expertise, a disciplined approach to underwriting and is fully committed to meeting the insurance needs of its clients. It is distinguished by its ability to manage the challenging and constantly changing external environment, the clarity of its strategy and the thoroughness of its execution.
The syndicate’s strategy focuses on an established underwriting ethos that permeates the business. Whilst they strive for top line year-on-year growth, underwriters are fully prepared to shed volume as necessary in order to maintain an underwriting profit. Using CUAL’s underwriting skills and targeted marketing strategies, the syndicate aims to generate growth in areas where risk-adjusted underwriting margins are favourable and achieve better terms or shrink business where they are not.
The syndicate’s product line segmental structure enables underwriters to manage each business class at a detailed level, essential for the identification and analysis of the characteristics, challenges and opportunities of each class. Rating adequacy, competition, volatility and margins are analysed at a micro level by the underwriting teams with significant input from CUAL’s actuaries and management team.
The syndicate strives to offer superior service levels in all aspects of its operations, particularly claims, and it continues to invest in technology to improve its operational efficiency, underwriter support and broker interfaces.
The syndicate and CUAL are committed to protecting and preserving its assets. It operates a conservative investment strategy and has maintained its focus on cash flow management and liquidity to secure its long-term position in the Lloyd’s insurance market.
Investment Strategy
Syndicate 2488 operates a conservative investment strategy by establishing highly liquid, diversified, high quality portfolios managed by expert external managers. Detailed investment guidelines are established for each managed portfolio including Chubb customised benchmarks against which manager performance is measured.
Syndicate 2488 maintains six active investment grade fixed income portfolios, held in US dollars, sterling, Canadian dollars and euro. The syndicate also maintains a US dollar investment grade portfolio and an
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investment grade collateralised loan obligations portfolio which are designated Funds in Syndicate.
The approximate currency split of the syndicate investment portfolios, including Funds in Syndicate and deposits managed centrally by Lloyd’s, is US dollars 71%, Canadian dollars 13%, Sterling 5%, Euros 7%, and Other currencies 4%. During the year the syndicate continued to maintain diversified actively managed portfolios with exposure to a broad range of sectors. However, following the completion of a restructuring of the capital supporting the syndicate during the year, the portfolios are now 100% allocated to investment grade fixed income bonds, although the asset allocation policy continues to allow exposure to alternative asset classes.
Presentation of Financial Statements
The basis of preparation of Syndicate 2488’s annual financial statements is in accordance with the 2008 Lloyd’s Regulations, as amended by The Statutory Auditors and Third Country Auditors Regulations 2017, and applicable accounting standards in the United Kingdom. These financial statements recognise a calendar year profit or loss, driven by net earned premium and net incurred losses arising on that net earned premium.
Managing agents are required to prepare syndicate underwriting accounts, similar to those previously prepared on a three-year underwriting basis in respect of any year of account which is being closed by reinsurance to close, unless all the members on the closing year agree otherwise. Syndicate 2488 is a fully aligned syndicate, with 100% of the underwriting capital provided by one corporate capital vehicle, Chubb Capital I Limited. Chubb Capital I Limited has agreed to waive its right to receive syndicate underwriting accounts in respect of Syndicate 2488’s closed 2023 year of account and, as such, no information on this basis has been provided within this report and annual accounts.
Key Performance Indicators
The following financial key performance indicators (“KPIs”) have been deemed relevant to the syndicate business. These KPIs are reviewed regularly by the CUAL Board.
£ million
2025
2024
Gross premiums written
766.7
727.5
Net premiums written
672.6
638.3
Combined ratio % *
78.8%
78.0%
Profit for financial year
247.7
219.7
* Ratio of net claims incurred, commission and expenses to net premiums earned, excluding profit / (loss) on exchange
Management also uses a variety of other performance indicators, including production volumes, retention ratios, price monitoring, loss and expense analyses, and operating metrics in assessing the performance of each of the product lines. All financial results are monitored against plan, forecast and prior year on a regular basis.
CUAL seeks to manage syndicate capacity levels in order to make the most effective use of available capital. The 2026 capacity of Syndicate 2488 has been set at £630.0 million (2025: £630.0 million) representing the maximum amount of gross premium net of acquisition costs that the Syndicate is permitted to underwrite.
Results & Performance
Syndicate 2488’s business is principally conducted in US dollars however, for accounting purposes, the financial results are presented in sterling. Syndicate 2488’s functional currency is US dollars. Fluctuations in exchange rates during the year can therefore impact the comparability of the income statement and balance sheet for the current year with the prior year.
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Syndicate 2488 produced a profit for the 2025 financial year of £247.7 million and a combined ratio of 78.8%. A summary of the reported financial results is shown below.
£ million
2025
2024
Gross premiums written
766.7
727.5
Net premiums written
672.6
638.3
Net premiums earned
657.5
609.8
Incurred losses
(297.6)
(272.0)
Operating expenses
(220.8)
(203.7)
Underwriting profit
139.1
134.2
Investment return
98.8
88.7
Profit / (loss) on exchange
9.8
(3.2)
Profit for financial year
247.7
219.7
Combined ratio %
78.8%
78.0%
Rating Environment
Trading conditions in the Lloyd’s and London wholesale markets have been generally favourable in recent years. Now, following a period of sustained profitability, increased competition, abundant capital, and expanding broker facilities are putting pressure on pricing, and although the market remains robust, the softening that began in late 2024 became more pronounced in 2025.
The overall rate movement on 2488’s renewal portfolio was -3.8% with mid-single digit reductions in Property, Marine and Cyber, and marginally negative pricing in Financial Lines. Aviation was the only class to see rate increases, notably in the Airline classes.
Drivers of Underwriting Result
Syndicate 2488 recorded an underwriting profit for 2025 of £139.1 million (2024: £134.2 million) and associated combined ratio of 78.8% (2024: 78.0%). The underwriting profit benefited from a prior period reserve release of £10.7 million (2024: £50.3 million). The combined ratio excluding the prior period reserve releases was 80.4% (2024: 79.8%), 5.2 points (2024: 8.2 points) of which related to catastrophe losses. Syndicate 2488’s exposure to large losses is managed by adherence to clear risk management and underwriting guidelines, and the use of reinsurance protection and sophisticated modelling and analysis, with reported losses well within risk tolerances.
The syndicate’s loss ratio excluding prior period reserve movements and catastrophe losses was 41.7% (2024: 43.8%) demonstrating the strength of the underlying portfolio.
Gross written premiums of £766.7 million in 2025 were 5.4% higher than the prior year, or 8.5% if the impact of changes in foreign exchange rates are eliminated. Underlying growth was driven by new business and increased exposures, primarily in Property, Cyber and Marine.
The syndicate purchases reinsurance to mitigate the impact of major events and an undue frequency of smaller losses and seeks to limit its loss exposures by purchasing reinsurance up to its maximum line sizes and accumulations. The principal reinsurance programmes operated by the syndicate during the year were partly shared with other Chubb companies including CEG. There were no major changes to the syndicate’s reinsurance purchasing strategy in 2025.
Operating expenses constitute acquisition costs, Lloyd’s subscriptions, Central Fund contributions and general administrative expenses. CUAL continues to focus on the management of each of these
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components in line with the growth and needs of the business.
Investment Performance
Investment grade fixed income returns were positive in 2025 as a result of both sovereign and corporate yield movements during the year.
Overall, Syndicate 2488 generated a total return of 6.5% in 2025 (2024: 4.7%) on balances available for investment. For investment grade portfolios, total returns of 6.4%, 2.6% and 4.2% were generated for Sterling, Euro and Canadian dollar portfolios respectively (2024: 2.5%, 3.8%, 5.5%). The US dollar investment grade portfolios which comprise over 75% of the investment grade bonds generated a total return of 6.8% in the year (2024: 4%).
Cash Flow
Total syndicate cash flow derived from operating activities in the year was positive. The syndicate made a profit on the 2022 closed year of account which, together with the excess capital generated following the capital restructuring exercise, facilitated an initial release of £517 million to the corporate member that was subsequently distributed by dividend to Chubb Group in Q2 2025. In Q3 2025 a further release of £74 million to the member was executed and subsequently declared as a dividend to Chubb Group.
Capital
A syndicate’s capital requirements are determined through the submission and agreement by Lloyd’s of a Solvency Capital Requirement (“SCR”) adjusted by Lloyd’s through the application of a market wide uplift of 35%. The uplifted SCR is referred to as the Lloyd’s Economic Capital Assessment (“ECA”).
The Prudential Regulation Authority (“PRA”) conducts reviews directly with Lloyd’s on the overall SCR for the Lloyd’s Market rather than at a syndicate level. Under the governance processes surrounding the Lloyd’s internal model, the syndicate is obligated to ensure compliance with Lloyd’s requirements for the internal model tests and standards, and processes are in place to meet these obligations.
In order to determine the SCR, the syndicate assesses its risk profile and capital requirements using an internal model which has been developed to meet Solvency UK and Lloyd’s Principles for Doing Business requirements. The internal model is supported by a robust validation and governance framework which ensures its ongoing appropriateness and is refined to reflect the syndicate’s experience, changes in the risk profile and advances in modelling methodologies. For 2026, the final SCR used for the ECA shows a decrease compared with the 2025 requirement of approximately 9%. The decrease is mainly attributable to movements in the USD:GBP exchange rate.
A Quarterly Corridor Test (“QCT”) is undertaken each quarter to establish whether the syndicate’s capital remains within Lloyd’s corridor of 90% to 110% of the ECA. The syndicate maintained capital either within or above the corridor throughout 2025.
Syndicate 2488 meets its Funds at Lloyd’s (“FAL”) requirement by the provision of investments held within the Syndicate which are designated as Funds in Syndicate combined with third party FAL totalling £474.3m provided by Chubb Tempest Reinsurance and £74.3m provided through a Letter of Credit. The overall quantum of FAL for 2025 year end was £548.6 million (2024: £1,115 million) with the decrease due principally to the releases of the excess capital, following the capital restructuring exercise, as noted above.
Ratings
All active syndicates benefit from the financial strength ratings assigned to the Lloyd’s market by various rating agencies. At the time of this report, Lloyd’s holds financial strength ratings of “A+ (Superior)” from A.M. Best, “AA- (Very Strong)” from Standard & Poor’s, “AA- (Very Strong)” from Fitch and “AA- (Very Strong)” from Kroll Bond Rating Agency. In view of these robust ratings, together with Chubb’s core
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operating insurance companies’ ratings of “A++” and “AA” from A.M. Best and Standard & Poor’s respectively, it has not been considered necessary to obtain an individual rating for the syndicate.
Governance
CUAL has a documented corporate governance framework, the purpose of which is to exercise oversight and control over the management of its own and the syndicate’s business.
The Board of Directors (“the Board”) has reserved responsibility for decisions in connection with a number of matters, including those of a significant strategic, structural, capital, financial reporting, internal control, risk (including sustainability risk), contractual, policy or compliance nature.
The Board meets at least four times a year and additionally on other occasions to discharge its responsibilities in respect of these and other matters. In 2025 the Board met eight times.
Membership of the Board is kept under review to ensure that the composition and available expertise remains relevant to the current needs of the syndicate. As at the date of this report the Board comprises two independent non-executive directors, three non-executive regional Chubb representatives and three executive directors. Miriam Connole resigned as a director and Audit & Risk Committee member on 6 May 2025. Ana Robic was appointed as a non-executive regional Chubb representative of the Company and a member of the Audit & Risk Committee on 1 September 2025, on receipt of regulatory approval. David Furby became Executive Chairman of Chubb Europe, Middle East & Africa (“EMEA”); and he continues to be a non-executive regional Chubb representative. CUAL greatly values the contribution of its non-executive directors in providing contrasting insights, experience and challenge in the Board’s discussions and the insights of the regional Chubb representatives into the wider Chubb Group. Details of the directors, including appointments and resignations can be found on page 16.
In addition to the changes to the Board, key non-routine Board activity during the year included: i) approval of an internal model major change request to Lloyd’s, ii) CUAL’s adherence with the Operational Resilience and Consumer Duty requirements, iii) the provision of capital by the corporate member, Chubb Capital I Limited to Syndicate 2488 and the basis of expenses under the Managing Agency Agreement, iv) the shared reinsurance arrangements used by the syndicate, and v) changes to the Board members and senior function holders. The Board reviewed its Risk Management Framework and various Board policies. In addition, the Board conducted deep dives into Operational Resilience; Culture; use and controls around Artificial Intelligence and Cyber Security.
The Board received regular reports on the status of business results, business and function plans, resourcing, developments in the risk and regulatory environments, regulatory compliance, underwriting controls, actuarial and solvency matters. The Board reviewed and updated its responses to the Lloyd’s Principles of Doing Business under the new Lloyd’s Expected Maturity criteria. It approved the 2026 Syndicate Business Forecast and the annual whistleblowing report. The Blueprint 2 Exit Management and Service Transition Plan was considered, however Lloyd’s have delayed the implementation of this.
One meeting each year is dedicated to the syndicate’s business strategy. An external board performance review was carried out in late 2024 which was extremely positive. The Board reviewed progress to address the items for potential improvement throughout 2025. and all of these were closed. Actions taken to address the feedback include the expansion of the private sessions to include Actuarial; deep dives held to provide insights into key topics including Culture and Artificial Intelligence; presentations on market insights and the establishment of regular meetings for the Chair with key Chubb individuals. A programme of deep dives has been scheduled for 2026 to incorporate other topics identified by the Board and the results of the 2025 board performance review will be considered in February 2026.
The Board has delegated a number of matters to committees. Each of the following committees has formal terms of reference and matters reserved to it and report regularly to the Board.
The Audit & Risk Committee, which is comprised exclusively of non-executive directors, considered and made recommendations to the Board on areas including the validation of solvency calculations, reserving,
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internal controls, financial reporting, actuarial matters, resilience and the external audit. In addition, it oversaw and advised the Board on emerging risk exposures including the migration of the existing Governance, Risk and Compliance system to IBM’s OpenPages; the implications of US trade tariffs; and the potential exposures following the Israel/Iran conflict. It reviewed updates to the risk management framework, solvency and capital matters. It also ensured that business risks, fraud and controls were recorded and monitored.
This Committee received reports from the compliance, actuarial, finance, risk, internal audit, outsourcing and resilience functions on a quarterly basis. Other regular reporting included updates on the syndicate’s “Own Risk and Solvency Assessment” metrics, which helps to provide an independent overview of management’s assessment of risk, including performance against Board approved risk appetites. It also reviewed the Company’s compliance with the Lloyd’s Principles of Doing Business and the completion of various CUAL Lloyd’s returns, under the updated Lloyd’s reporting requirements, and other regulatory requirements. The Underwriting Risk Committee reports on a quarterly basis to the Audit & Risk Committee, with a focus on underwriting strategy. The Resilience Steering Committee also reports on a quarterly basis on the Company’s operational resilience, business continuity, technology resilience and security programmes.
In relation to the external audit process, the Audit & Risk Committee monitored the nature and scope of work in the audit of the financial statements and other external reporting requirements. It received regular reports from the External Auditor and the independent non-executive directors met regularly with the External Auditor without management being present.
In the case of the internal audit function, this Committee’s role involved agreeing and monitoring, in conjunction with the group audit function, the nature and scope of work to be carried out by the internal audit team and the availability of sufficient resources. It received regular reports from the Internal Auditor and the independent non-executive directors met regularly with the Head of Internal Audit without management being present. In addition, the independent non-executive directors met with the Chief Risk Officer and the Chief Actuary without management being present.
The Audit & Risk Committee’s role was aimed at providing assurance to the Board that the internal control systems, agreed by executive management, were appropriate for the prudent management of the business during the year and were operating as designed. At all times the Committee members were expected to challenge any aspect of these processes which it considered weak or generally poor practice.
During 2025 the Committee reviewed the control environment and how this was being addressed by Chubb and CUAL’s adherence with the Operational Resilience and Consumer Duty requirements. Other areas of focus were the pressures on rate due to areas of market softening and increased competition and the valuation of certain investments.
The CUAL Management Committee comprises executive directors and other members of the senior management team. The primary role of the Management Committee is to oversee the day-to-day management of business operations and performance, and to assist the Chief Executive Officer in implementing and overseeing operational strategies and decisions determined by the Board. The CUAL Management Committee oversees the support function activities, key steering groups and supporting committees which form part of the company’s governance.
The supporting committees reporting into the Management Committee include the: cyber security governance; delegated authority review; finance, capital & credit; reserve; investment; internal model steering; and IT steering committees. In addition, the outsourcing committee was previously the third party conduct committee, which was restructured, renamed and its remit expanded to cover CUAL.
CUAL has a Routine Board Committee. It meets on an ad hoc basis between formal Board meetings to consider authorisation of routine activity and its activities are reported at the subsequent quarterly Board meeting.
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Risk & Control Framework
The Chubb Group is a global underwriting franchise whose risk management obligation to stakeholders is simple: ensure sufficient financial strength over the long term in order to pay policyholder claims while simultaneously building and sustaining shareholder value.
The Chubb Enterprise Risk Management (“ERM”) strategy helps achieve the goal of building shareholder value by systematically identifying, and then monitoring and managing, the various risks to the achievement of corporate business objectives and thereby minimising potential disruptions that could otherwise diminish shareholder value or balance sheet strength.
CUAL has adopted the Chubb Group Enterprise Risk Management Framework (“RMF”), which describes the role of ERM within CUAL and how it helps the syndicate achieve its business objectives, meet its corporate obligations and maintain the reputation of the Chubb franchise. Chubb’s documented RMF is principles-based and sets out the organisational framework for risk taking, risk management, monitoring and governance.
The RMF adopts a “three lines of defence” model, comprising day-to-day risk management and controls, risk management oversight, and independent assurance.
The RMF identifies the key risks to which each business segment and the syndicate as a whole is exposed, and their resultant impact on economic and regulatory capital. This framework employs Solvency UK and Lloyd’s principles to assess risk and manage capital requirements to ensure the capital required to support CUAL’s business objectives and to meet the requirements of policyholders and regulators.
The Board is ultimately responsible for ensuring that the syndicate operates within an established framework of effective systems of internal control, including the approval of the overall risk tolerance for the organisation and compliance with policies, procedures, internal controls and regulatory requirements.
The Board’s oversight of the RMF is exercised through the various committees and functions with particular purposes and direction around the monitoring of risk tolerances and oversight of internal controls and compliance procedures. The risk management function has a strong mandate from the Board to promote the RMF and embed it across the syndicate.
The RMF was re-approved by the Board in 2025 together with a review of individual risk policies and risk appetite statements which set out defined risk-tolerance constraints for the execution of the business strategy. All key policies and procedures are subject to Board approval and ongoing review by executive management, the risk management function and internal audit function.
Disclosures regarding risks and capital management are provided in note 4 to the financial statements. CUAL employs and monitors risk guidelines to ensure acceptable risk accumulations in the syndicate.
Compliance
Compliance with regulation, legal and ethical standards is a high priority for Chubb and CUAL, and the compliance function has an important oversight role in this regard.
As a material subsidiary of Chubb Limited, a US listed company, the financial control environment in which the financial statements are derived is subject to the requirements of US Sarbanes-Oxley legislation. CUAL has formalised documentation and tested controls to enable Chubb Limited to fulfil the requirements of the legislation.
CUAL is also committed to fulfilling its other compliance-related duties, including its observance of customer-focused policies in line with regulatory principles, and it uses various metrics to assess its performance.
The managing agency utilises a skilled and specialist workforce employed by Chubb Services UK Limited and Chubb European Group SE to manage its regulatory and compliance responsibilities, and aims to operate to a high standard. CUAL recognises and values its relationships with regulators in each of its
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jurisdictions and engages in open dialogue and communication to address and resolve any issues.
Social, Environmental and Employee Matters
Chubb is a dynamic, forward-looking global enterprise with a commitment to responsible citizenship. It employs a diverse team of people, serving diverse customers, markets, and distribution channels, and is united in its commitment to high ethical standards through the prism of culture, values and beliefs.
Chubb’s understanding of local cultures and the unique demographic, economic and social characteristics in different communities, countries and regions, is a defining strength. So too is Chubb’s culture, which is built upon the shared values, experiences and priorities, and the diversity of its people. Chubb practices its craft with precision and passion, holding itself to exacting standards, respecting and valuing differences, and standing behind the promises it makes. The company strives to provide a high performing, rewarding and inclusive meritocracy that attracts and retains the best talent, and delivers the best outcomes for customers and business partners.
The Chubb Code of Conduct
The Chubb Code of Conduct (“the Code”) represents Chubb’s values and beliefs and defines the company’s expectations for ethical behaviour throughout the organisation. The Code addresses, among other things, conflicts of interest, corporate opportunities, confidentiality, fair dealing, protection and proper use of company assets, compliance with laws and regulations, and reporting illegal or unethical behaviour. All employees, officers and directors of CUAL are expected to acknowledge acceptance of the Code, confirming that they know and understand the standards expected. CUAL expects its business partners such as consultants, agents, third party representatives and service providers to also comply with our Third Party Provider Code of Conduct. Appropriate measures may be taken if anyone fails to meet those standards or contractual obligations.
Workforce
CUAL is committed to ensuring all members of its workforce are treated with dignity, fairness and respect regardless of their age, disability, race, religion or belief, gender identity and expression, sexual orientation, marital status or family circumstance. It aims to create an inclusive environment, spotlighting key colleague touch points such as recruitment & selection, promotion, and training opportunities.
CUAL’s policies, procedures and processes serve as the foundation for its actions to prevent potential negative impacts and foster positive outcomes, and aim to address and mitigate risks related to diversity, equality and inclusion. CUAL’s diversity and inclusion strategy is focused on four pillars:
1.Improving data and insight – to inform action and monitor progress.
2.Clarifying accountabilities – so that everyone is clear on the part they play.
3.Building awareness and capability – so that everyone is equipped and empowered to act.
4.Applying an inclusion lens – to policies, processes and decisions.
All Chubb employees are expected to contribute to role-model inclusive actions and behaviours and voicing any concerns in a timely manner to ensure Chubb is a welcoming place to work for everyone. Additional manager responsibilities include setting the tone by role modelling inclusive leadership and prioritising building their knowledge and understanding of key workforce components so that they can provide the best support for their team.
Talent Strategy
Chubb’s ability to deliver outstanding business results relies on the calibre of its talent and the efforts of its employees at all levels of the organisation.
Chubb has a talent strategy that actively supports the personal and professional development of all its people. It strives to attract, retain and develop employees to meet their career aspirations and have an
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inclusive meritocracy strategy to ensure that all available talent is accessed and given equal opportunity.
Guidance on Inclusive Recruitment is integrated into all of CUAL’s manager training programmes, and is supported by the inhouse talent acquisition team, to ensure the recruitment and selection process is as objective and structured as possible.
A core element of CUAL’s workforce value proposition is the opportunity to constantly evolve as a professional and reach one’s full potential. It endeavours to identify talent on a regular basis and provide high quality development programmes that build the necessary leadership qualities for now and the future.
Formal succession plans are in place at senior levels. CUAL internally sources talent to fill open positions where appropriate, retaining key knowledge and expertise within the business. The Compensation and Benefits team ensure that pay and benefits in each country are fair, equitable and market competitive.
Environmental Matters
Chubb and CUAL support the transition to a low-carbon economy while simultaneously recognising the ongoing energy needs of local and global economies. At Chubb, policies are in place to manage material impacts, risks and opportunities related to climate change mitigation and adaption.
Chubb produces climate-related disclosures, including an annual Sustainability Report. These disclosures outline the scope of the company’s environmental program, including climate-related risk assessment and mitigation strategies, and are available to view on Chubb’s website.
Chubb believes the most effective use of its resources to support society’s shift to a low-carbon economy is through its underwriting practices and service offerings. Chubb’s climate strategy and the effectuation of the policy is guided by three principal components:
1.Applying underwriting and engineering expertise to support renewable energy and emerging clean technologies through Chubb Climate+;
2.Promoting climate resilience through risk engineering and new service offerings to help clients build their climate resilience through Chubb Resilience Services; and
3.Developing technical underwriting criteria to manage our risk exposure by encouraging the adoption of controls and best practices in high-emitting industries.
Chubb’s Corporate Climate Underwriting Criteria addresses high-emitting industries. Chubb’s approach to these industries involves conducting its own review of best practices, seeking guidance from non-governmental organisation partners, and engaging with clients to develop perspectives on greenhouse gas (“GHG”) emissions mitigation measures that apply the best engineering practices and relate to risk quality. As Chubb deploys underwriting criteria, it simultaneously offers on-the-ground engineering expertise, working on-site with clients to help deploy best practices and controls to reduce GHG emissions. Chubb applies this approach globally to the development of its oil and gas, coal, steel and cement underwriting criteria. Chubb’s Corporate Climate Underwriting Criteria is available on Chubb’s website, and updated as new criteria are announced.
Neither Chubb nor CUAL have specific GHG emissions targets and do not calculate the expected outcome of climate change mitigation action as they correlate to GHG emission reductions.
Philanthropy & Volunteerism
The Chubb Charitable Foundation believes that meaningful contributions that support communities globally provide lasting benefits to society, to Chubb and to Chubb employees. Through philanthropy, global partnerships and company-sponsored volunteer activities focused on giving the gift of time and donations, the Chubb Charitable Foundation supports clearly defined projects that solve problems with measurable and sustainable outcomes, helping people build productive and healthy lives.
‘Charity at Chubb’ is Chubb’s Europe, Middle East and Africa focused charity committee with a remit that aligns to the company’s approach to corporate social responsibility. It continues to champion and
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encourage activities under the pillars of:
Social Mobility
Community Engagement
Diversity & Inclusion
Employee Engagement
Environment and Education
Chubb employees also participate in a range of local voluntary community schemes and personal fundraising efforts which the company supports through a charitable contribution scheme. CUAL employees participated in a wide range of charitable activities during the year including Chubb’s “Week of Giving”, an initiative encouraging colleagues to volunteer their time to support their local communities.
Human Rights
CUAL conducts its business in a manner that respects the human rights and dignity of all and supports international efforts to promote and protect human rights. CUAL does not tolerate abuse of human rights in a CUAL workplace or during CUAL business. CUAL aims to comply with legal and regulatory requirements wherever it conducts business.
The Chubb Code of Conduct affirms Chubb’s commitment to comply with equal employment opportunity laws and other applicable civil rights, human rights and labour laws. Chubb also supports the United Nations Global Compact, the world’s largest corporate sustainability initiative.
The Modern Slavery and Human Trafficking Transparency Statement followed by CUAL can be found on the Chubb website.
Directors
The following have been directors of the managing agent from 1 January 2025 to the date of this report unless otherwise indicated:
Executive directors:
D K KirkChief Executive Officer
C P J O’Brien
R Q WilsonChief Underwriting Officer
Non-executive directors:
K S BriggsIndependent Non-Executive Director and Chairman of the Audit & Risk Committee
M A ConnoleResigned 6 May 2025
D M A FurbyIndependent Non-Executive Director
S K Richards
A RobicAppointed 1 September 2025, Non-Executive Director
J A TurnerChairman and Independent Non-Executive Director
Qualifying third-party indemnity provisions (as defined by section 234 of the Companies Act 2006) are in place for the benefit of the directors and, at the date of this report, are in in force in relation to certain losses and liabilities which they may incur (or have incurred) in connection with their duties, powers or office.
The managing agent also has the benefit of a group insurance company management activities policy effected by Chubb Limited (CUAL’s ultimate holding company). No charge was made to CUAL during the
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year for this policy.
Directors’ Participations
None of the directors participates on the syndicate on a bespoke basis. Certain directors participate indirectly on the syndicate by virtue of their interests in the stock of Chubb Limited.
Statement of Managing Agent’s Responsibilities
The managing agent is required by the Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008, as amended by The Statutory Auditors and Third Country Auditors Regulations 2017 (the “Regulations”), to prepare syndicate annual accounts for Syndicate 2488 for each financial year which give a true and fair view of the state of affairs of the syndicate and of its profit or loss for that year.
In preparing these syndicate annual accounts the managing agent is required to:
select suitable accounting policies and then apply them consistently;
state whether applicable United Kingdom Accounting Standards, comprising FRS 102 and FRS 103 have been followed, subject to any material departures disclosed and explained in the financial statements;
make judgements and accounting estimates that are reasonable and prudent; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
prepare and review the iXBRL tagging that has been applied to the Syndicate Accounts in accordance with the instructions issued by Lloyd’s, including designing, implementing and maintaining systems, processes and internal controls to result in tagging that is free from material non-compliance with the instructions issued by Lloyd’s, whether due to fraud or error.
The directors of the managing agent confirm to the best of their knowledge the syndicate accounts, including iXBRL tagging applied to these accounts, comply with the requirements above and those of the Lloyd’s Syndicate Accounts Instructions version 3.1 as modified by the Frequently Asked Questions version 1.1 issued by Lloyd’s.
The managing agent is responsible for keeping adequate accounting records that are sufficient to show and explain the syndicate’s transactions and disclose with reasonable accuracy at any time the financial position of the syndicate and enable it to ensure that the syndicate annual accounts comply with the Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008. The managing agent is also responsible for safeguarding the assets of the syndicate and hence for taking reasonable steps to prevent and detect fraud and other irregularities.
Legislation in the UK concerning the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Statement as to Disclosure of Information to Auditors
In the case of each director in office at the date the directors’ report is approved:
so far as the director is aware, there is no relevant audit information of which the company’s auditors are unaware; and
they have taken all the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company’s auditors are aware of that information.
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Independent Auditors
The 2008 Lloyd’s Regulations, as amended by The Statutory Auditors and Third Country Auditors Regulations 2017 (the “Regulations”) require that the auditors of the syndicate annual accounts be appointed by the members of the syndicate, initially for the syndicate annual accounts for the 2009 year end after which provisions for deemed reappointment of auditors will apply.
PricewaterhouseCoopers LLP is deemed to have been reappointed as the auditors of the syndicate annual accounts for the 2025 year end.
Approved by the Board and signed on its behalf:
C P J O’Brien
Director
20 February 2026
Managing Agent Signature
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Independent auditors’ report to the member of Syndicate 2488
Report on the audit of the syndicate annual accounts
Opinion
In our opinion, 2488’s syndicate annual accounts:
give a true and fair view of the state of the syndicate’s affairs as at 31 December 2025 and of its profit and cash flows for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and applicable law); and
have been prepared in accordance with the requirements of The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 and the requirements within the Lloyd’s Syndicate Accounts Instructions version 3.1 as modified by the Frequently Asked Questions issued by Lloyd’s version 1.1 (“the Lloyd’s Syndicate Instructions”).
We have audited the syndicate annual accounts included within the Annual Report and Financial Statements (the “Annual Report”), which comprise: the Balance sheet Assets and Balance sheet - Liabilities as at 31 December 2025; the Statement of profit or loss and other comprehensive income, the Statement of cash flows, and the Statement of changes in members’ balances for the year then ended; and the notes to the syndicate annual accounts, which include a description of the significant accounting policies.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”), The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008, the Lloyd’s Syndicate Instructions and applicable law. Our responsibilities under ISAs (UK) are further described in the Auditors’ responsibilities for the audit of the syndicate annual accounts section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We remained independent of the syndicate in accordance with the ethical requirements that are relevant to our audit of the syndicate annual accounts in the UK, which includes the FRC’s Ethical Standard, as applicable to other entities of public interest, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
To the best of our knowledge and belief, we declare that non-audit services prohibited by the FRC’s Ethical Standard were not provided.
Other than those disclosed in note 6, we have provided no non-audit services to the syndicate in the period under audit.
Conclusions relating to going concern
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the syndicate’s ability to continue as a going concern for a period of at least twelve months from when the syndicate annual accounts are authorised for issue.
In auditing the syndicate annual accounts, we have concluded that the Managing Agent’s use of the going concern basis of accounting in the preparation of the syndicate annual accounts is appropriate.
However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the syndicate's ability to continue as a going concern.
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Our responsibilities and the responsibilities of the Managing Agent with respect to going concern are described in the relevant sections of this report.
Reporting on other information
The other information comprises all of the information in the Annual Report other than the syndicate annual accounts and our auditors’ report thereon. The Managing Agent is responsible for the other information. Our opinion on the syndicate annual accounts does not cover the other information and, accordingly, we do not express an audit opinion or, except to the extent otherwise explicitly stated in this report, any form of assurance thereon.
In connection with our audit of the syndicate annual accounts, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the syndicate annual accounts or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify an apparent material inconsistency or material misstatement, we are required to perform procedures to conclude whether there is a material misstatement of the syndicate annual accounts or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report based on these responsibilities.
With respect to the Managing Agent’s Report, we also considered whether the disclosures required by The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 have been included.
Based on our work undertaken in the course of the audit, The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 requires us also to report certain opinions and matters as described below.
Managing Agent’s Report
In our opinion, based on the work undertaken in the course of the audit, the information given in the Managing Agent’s Report for the year ended 31 December 2025 is consistent with the syndicate annual accounts and has been prepared in accordance with applicable legal requirements.
In light of the knowledge and understanding of the syndicate and its environment obtained in the course of the audit, we did not identify any material misstatements in the Managing Agent’s Report.
Responsibilities for the syndicate annual accounts and the audit
Responsibilities of the Managing Agent for the syndicate annual accounts
As explained more fully in the Statement of Managing Agent’s Responsibilities, the Managing Agent is responsible for the preparation of the syndicate annual accounts in accordance with the applicable framework and for being satisfied that they give a true and fair view. The Managing Agent is also responsible for such internal control as they determine is necessary to enable the preparation of syndicate annual accounts that are free from material misstatement, whether due to fraud or error.
In preparing the syndicate annual accounts, the Managing Agent is responsible for assessing the syndicate’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless it is intended for the syndicate to cease operations, or it has no realistic alternative but to do so.
Auditors’ responsibilities for the audit of the syndicate annual accounts
Our objectives are to obtain reasonable assurance about whether the syndicate annual accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these syndicate annual accounts.
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Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Based on our understanding of the syndicate and industry, we identified that the principal risks of non-compliance with laws and regulations related to breaches of regulatory principles, such as those governed by the Prudential Regulation Authority and the Financial Conduct Authority, and those regulations set by the Council of Lloyd’s, and we considered the extent to which non-compliance might have a material effect on the syndicate annual accounts. We also considered those laws and regulations that have a direct impact on the syndicate annual accounts such as The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 and the Lloyd’s Syndicate Instructions. We evaluated management’s incentives and opportunities for fraudulent manipulation of the syndicate annual accounts (including the risk of override of controls), and determined that the principal risks were related to management bias in accounting estimates and judgemental areas, including the valuation of claims incurred but not reported, estimated premium income, and the posting of inappropriate journals. Audit procedures performed by the engagement team included:
Discussions with senior management including those involved in the Legal, Compliance and Internal Audit functions, including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
Assessment of any matters reported on the managing agent's whistleblowing helpline and the results of management's investigation of such matters;
Inspection of relevant board and committee meeting minutes and correspondence with regulatory authorities, including Lloyd’s of London and the Prudential Regulatory Authority;
Identifying and testing journal entries identified as potential indicators of fraud;
Challenging assumptions made by management in their significant accounting estimates, in particular, in relation to the valuation of incurred but not reported claims and estimates within gross premiums written; and
Designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the syndicate annual accounts. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities for the audit of the syndicate annual accounts is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors’ report.
Use of this report
This report, including the opinions, has been prepared for and only for the syndicate’s member in accordance with part 2 of The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.
Other required reporting
Under The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 we are required to report to you if, in our opinion:
we have not obtained all the information and explanations we require for our audit; or
adequate accounting records have not been kept by the Managing Agent in respect of the syndicate; or
22
certain disclosures of Managing Agent remuneration specified by law are not made; or
the syndicate annual accounts are not in agreement with the accounting records.
We have no exceptions to report arising from this responsibility.
Other matter
We draw attention to the fact that this report may be included within a document to which iXBRL tagging has been applied. This auditors’ report provides no assurance over whether the iXBRL tagging has been applied in accordance with section 2 of the Lloyd’s Syndicate Instructions version 3.1.
Deepti Vohra (Senior statutory auditor)
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
London
20 February 2026
Auditor Report Signature
23
Statement of profit or loss and other comprehensive income:
Technical account – General business
For the year ended 31 December 2025
Note
2025
£000
2024
£000
Gross premiums written
766,690
727,463
Outwards reinsurance premiums
(94,140)
(89,158)
Premiums written, net of reinsurance
672,550
638,305
Changes in unearned premium
17
Change in the gross provision for unearned premiums
(14,902)
(27,003)
Change in the provision for unearned premiums reinsurers’ share
(125)
(1,500)
Net change in provisions for unearned premiums
(15,027)
(28,503)
Earned premiums, net of reinsurance
657,523
609,802
Allocated investment return transferred from the non-technical account
72,181
45,542
Claims paid
17
Gross amount
(328,266)
(314,244)
Reinsurers’ share
66,865
54,799
Net claims paid
(261,401)
(259,445)
Change in the provision for claims
17
Gross amount
(4,870)
(642)
Reinsurers’ share
(31,318)
(11,898)
Net change in provisions for claims
(36,188)
(12,540)
Claims incurred, net of reinsurance
(297,589)
(271,985)
Net operating expenses
(220,761)
(203,652)
Balance on the technical account – general business
211,354
179,707
24
Statement of profit or loss and other comprehensive income: (cont.)
Non-technical account – General business
For the year ended 31 December 2025
The accompanying notes from page 29 to 56 form an integral part of these financial statements.
Note
2025£000
2024£000
Balance on the technical account – general business
211,354
179,707
Investment income
76,034
89,700
Realised losses on investments
(9,848)
(1,374)
Unrealised gains on investments
37,130
6,626
Investment expenses and charges
(4,546)
(6,208)
Total investment return
98,770
88,744
Allocated investment return transferred to the general business technical account
(72,181)
(45,542)
Gain/(loss) on foreign exchange
9,798
(3,188)
Profit for the financial year
247,741
219,721
Other comprehensive income:
Currency translation losses
(55,445)
(10,863)
Total comprehensive income for the year
192,296
208,858
25
Balance sheet – Assets
As at 31 December 2025
Note
2025£000
2024£000
Financial investments
1,398,126
1,831,968
Deposits with ceding undertakings
2,528
2,927
Investments
1,400,654
1,834,895
Provision for unearned premiums
42,071
45,459
Claims outstanding
181,350
220,048
Reinsurers’ share of technical provisions
17
223,421
265,507
Debtors arising out of direct insurance operations
86,273
96,217
Debtors arising out of reinsurance operations
71,910
65,756
Other debtors
3,524
5,835
Debtors
161,707
167,808
Cash at bank and in hand
204,534
171,864
Other assets
204,534
171,864
Deferred acquisition costs
81,626
78,686
Other prepayments and accrued income
12,436
15,428
Prepayments and accrued income
94,062
94,114
Total assets
2,084,378
2,534,188
26
Balance sheet – Liabilities
As at 31 December 2025
Note
2025£000
2024£000
Members’ balances
306,286
872,356
Total capital and reserves
306,286
872,356
Provision for unearned premiums
340,751
342,070
Claims outstanding
1,065,857
1,090,758
Technical provisions
17
1,406,608
1,432,828
Deposits received from reinsurers
-
-
Creditors arising out of reinsurance operations
40,151
45,569
Other creditors including taxation and social security
164,700
33,682
Amounts owed to credit institutions
152,290
136,438
Creditors
357,141
215,689
Accruals and deferred income
14,343
13,315
Total liabilities
1,778,092
1,661,832
Total liabilities, capital and reserves
2,084,378
2,534,188
The Syndicate financial statements on pages 23 to 56 were approved by the board of Chubb Underwriting Agencies Limited on 20 February 2026 and were signed on its behalf by;
C P J O’BrienDirector
20 February 2026
Balance Sheet Signature
27
Statement of changes in members’ balances
For the year ended 31 December 2025
2025£000
2024£000
Members’ balances brought forward at 1 January
872,356
855,757
Total comprehensive income for the year
192,296
208,858
Payments of profit to members’ personal reserve funds
(163,268)
(95,237)
Net movement on funds in syndicate
(590,875)
(99,617)
Other
(4,223)
2,595
Members’ balances carried forward at 31 December
306,286
872,356
28
Statement of cash flows
For the year ended 31 December 2025
Note
2025£000
2024£000
Cash flows from operating activities
Profit for the financial year
247,741
219,721
Adjustments:
(Decrease) / increase in gross technical provisions
(26,220)
3,835
Increase in reinsurers’ share of gross
technical provisions
42,087
16,092
Decrease in debtors
6,153
12,079
Decrease in creditors
(36,640)
(21,863)
Investment return
(98,770)
(88,744)
Other
(10,468)
14,863
Net cash flows from operating activities
123,883
155,983
Cash flows from investing activities
Purchase of equity and debt instruments
(528,575)
(406,090)
Sale of equity and debt instruments
409,014
346,435
Investment income received
71,488
83,492
Other
5,555
(7,052)
Net cash flows from investing activities
(42,518)
16,785
Cash flows from financing activities
Distribution of profit
-
(95,237)
Funds In Syndicate released to members
(73,907)
(99,617)
Net cash flows from financing activities
(73,907)
(194,854)
Net increase / (decrease) in cash and cash equivalents
7,458
(22,086)
Cash and cash equivalents at the beginning of the year
149,911
166,193
Foreign exchange on cash and cash equivalents
(5,830)
5,804
Cash and cash equivalents at the end of the year
151,539
149,911
29
Notes to the financial statements – (forming part of the financial statements)
1.Basis of preparation
The Syndicate comprises a single member of the Society of Lloyd's that underwrites insurance business in the London Market. The address of the Syndicate’s managing agent is 40 Leadenhall Street, London EC3A 2BJ, United Kingdom.
The syndicate annual accounts have been prepared in accordance with applicable accounting standards in the United Kingdom, including:
Financial Reporting Standard FRS 102, “The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland” (“FRS 102”);
Financial Reporting Standard FRS 103, “Insurance Contracts” (“FRS 103”);
the provisions of Schedule 3 to the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 (“SI2008/410”);
the Lloyd’s Syndicate Accounts Instructions Version 3.1 as modified by the Frequently Asked Questions Version 1.1 issued by Lloyd’s; and
Regulation 5 of the Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 (“the 2008 Lloyd’s Regulations”), as amended by The Statutory Auditors and Third Country Auditors Regulations 2017 (the “Regulations”).
These annual accounts include all sources of capital supporting the operations of the syndicate. Given that Syndicate 2488 is a fully aligned syndicate, with 100% of the underwriting capacity provided by Chubb corporate capital vehicles, these accounts are able to disclose the total Funds at Lloyd’s (“FAL”) capital supporting the operations of the syndicate (see note 28).
The financial statements have been prepared on the historical cost basis, except for financial assets at fair value through profit or loss and available for sale that are measured at fair value.
Syndicate 2488’s functional currency is US dollars. The presentational currency is sterling which is common practice in the Lloyd’s market and aids comparability.
Going concern
The Syndicate has financial resources to meet its financial needs and manages its portfolio of insurance risk. The directors have continued to review the business plans, liquidity and operational resilience of the Syndicate and are satisfied that the Syndicate is well positioned to manage its business risks in the current economic environment. The Syndicate 2026 year of account has opened and the directors have concluded that the Syndicate has sufficient resources to, and a reasonable expectation that it will, open a 2027 year of account. The Syndicate has sufficient capital for each year of account in its Funds at Lloyd’s (FAL) and there is additional capital available in the corporate member. There is no intention to cease underwriting or cease the operations of the Syndicate.
Accordingly, the directors of the Managing Agent continue to adopt the going concern basis in preparing the annual report and financial statements.
Prior year restatements
Within the Statement of cash flows, the prior year comparative figures for the “cash flows from investing activities” have been restated to correct the cash flows arising from the purchases and sale of debt and equity securities within investing activities in the statement of cashflows.
This results in a decrease in sales of debt and equity instruments of £37.8m, a decrease in purchases of debt and equity instruments of £43.5m, an increase in investment income of £1.4m as well as a further increase in Other of £7m. There is no impact to the Net cash flows arising from investing activities for the prior year.
In addition a correction has been made to the comparative information disclosed in note 5 showing premium by underwriting location to reflect only direct gross premium written as opposed to all gross premium written as shown in the 2024 Financial Statements.
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The comparative table within note 4 disclosing the credit rating for each asset type has been corrected to analyse only the not yet due element of the balance as opposed to the total balance sheet positions as shown in the 2024 Financial Statements.
2.Use of judgements and estimates
In preparing these financial statements, the directors of the managing agent have made 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 estimates are recognised prospectively.
The measurement of the provision for claims outstanding involves judgements and assumptions about the future that have the most significant effect on the amounts recognised in the financial statements. The provision for claims outstanding comprises the estimated cost of settling all claims incurred but unpaid at the balance sheet date, whether reported or not. This is a judgemental and complex area due to the subjectivity inherent in estimating the impact of claims events that have occurred but for which the eventual outcome remains uncertain. In particular, judgement is applied when estimating the value of amounts that should be provided for claims that have been incurred at the reporting date but have not yet been reported (“IBNR”) to the syndicate.
The amount included in respect of IBNR is based on statistical techniques of estimation applied by the in-house actuaries and reviewed by external consulting actuaries. These techniques generally involve projecting from past experience the development of claims over time in view of the likely ultimate claims to be experienced and for more recent underwriting, having regard to variations in business accepted and the underlying terms and conditions. The provision for claims also includes amounts in respect of internal and external claims handling costs. For the most recent years, where a high degree of volatility arises from projections, estimates may be based in part on output from rating and other models of business accepted and assessments of underwriting conditions.
The gross written premium is initially based on estimated premium income (“EPI”) for each contract. EPI estimates are based on information provided by the brokers, policyholders, coverholders, past underwriting experience and the contractual terms of the policy. The EPI estimates are reviewed on a regular basis. Premiums in respect of insurance contracts underwritten under binding authorities have the highest degree of uncertainty at the time of the initial premium booking. In 2025 £361.3 million (2024 £307.1 million) of premium was written under binding authorities. Binding authority premiums are booked as the underlying contracts incept (a straight-line basis is selected for this inception pattern) and any difference between the EPI for these policies and the actual premium received is eliminated before each year of account closes.
Premiums are earned on a straight-line basis over the life of each contract. At a portfolio level this is considered to provide a reasonable estimate for the full year of the pattern of risk over the coverage period.
3.Significant accounting policies
Premiums written
Premiums written, which are stated gross of brokerage but exclusive of premium taxes, relate to business incepted during the year, together with adjustments made in the year to premiums written in prior accounting periods. Estimates are made of pipeline premiums, representing amounts due but not yet received or notified to the syndicate by intermediaries;
Unearned premiums
Unearned premiums represent the proportion of premiums written in the year that relate to unexpired terms of policies in force at the balance sheet date, calculated on the basis of established risk profiles or time apportionment as appropriate.
Acquisition costs
Acquisition costs comprise brokerage, commissions and other related costs, and are deferred over the period in which the related premiums are earned.
31
Claims incurred
Claims incurred comprise the estimated cost of all claims occurring during the year, whether reported or not, including related direct and indirect expenses and adjustments to claims outstanding from previous years. Where applicable, deductions are made for reinsurance, salvage and other recoveries.
Provision for claims outstanding and related reinsurance recoveries
The provision for claims outstanding is assessed on an individual case basis and is based on the estimated ultimate cost of all claims notified but not settled by the balance sheet date, together with the provision for related claims handling costs and deduction for expected salvage and other recoveries. The provision also includes the estimated cost of claims incurred but not reported (“IBNR”) at the balance sheet date based on statistical methods.
These methods generally involve projecting from past experience of the development of claims over time to form a view of the likely ultimate claims to be experienced for more recent underwriting, having regard to variations in the business accepted and the underlying terms and conditions. For the most recent years, where a high degree of volatility arises from projections, estimates may be based in part on output from rating and other models of the business accepted and assessments of underwriting conditions. The amount of salvage and subrogation recoveries is separately identified and where material reported as an asset.
The reinsurers’ share of the provision for claims outstanding is based on the amounts of outstanding claims and projections for IBNR, net of estimated irrecoverable amounts, having regard to the reinsurance programme in place for the class of business, the claims experience for the year and the current security rating of the reinsurance companies involved. A number of statistical methods are used to assist in making these estimates.
The two most critical assumptions as regards the provision for claims outstanding are that the past is a reasonable predictor of the likely level of claims development and that the rating and other models used for current business are fair reflections of the likely level of ultimate claims to be incurred.
The directors consider that the provision for gross claims outstanding and related reinsurance recoveries are fairly stated on the basis of the information currently available to them. However, the ultimate liability will vary as a result of subsequent information and events and this may result in significant adjustments to the amounts provided. Adjustments to the amounts of claims provisions established in prior years are reflected in the financial statements for the period in which the adjustments are made. The methods used, and the estimates made, are reviewed regularly. When calculating the provision for claims outstanding, the reported business segments are subject to specific issues, as set out below:
Fire and other damage to property; marine, aviation and transport; accident and health
These business segments are predominantly “short tail”; that is there is not a significant delay between the occurrence of the claim and the claim being reported to the syndicate. The costs of claims notified to the syndicate at the balance sheet date are estimated on a case by case basis to reflect the individual circumstances of each claim. The ultimate expected cost of claims is projected from this data by reference to statistics, which show how estimates of claims incurred in previous periods have developed over time to reflect changes in the underlying estimates of the cost of notified claims and late notifications.
Third party liability (including marine and aviation liability)
Liability claims are longer tail than the classes of business described above and so a larger element of the provision for claims outstanding relates to IBNR. Claims estimates for the syndicate’s liability business are derived from a combination of loss ratio based estimates and an estimate based upon actual claims experience using a predetermined formula whereby greater weight is given to actual claims experience as time passes. The initial estimate of the loss ratio based on the experience of previous years adjusted for factors such as premium rate changes and claims inflation, and on the anticipated market experience, is an important assumption in this estimation technique. In respect of liability claims, the assessment of claims inflation and anticipated market experience is particularly sensitive to the level of court awards and to the development of legal precedent on matters of contract and tort. The liability class of business is also subject to the emergence of new types of latent claims but no allowance is included
32
for this as at the balance sheet date.
Reinsurance acceptances
This business segment includes both short tail and longer tail business, and is subject to the issues laid out in the preceding two sections.
Unexpired risks provision
A provision for unexpired risks is made where claims and related expenses arising after the end of the financial period in respect of contracts concluded before that date, are expected to exceed the unearned premiums and premiums receivable under these contracts, after the deduction of any acquisition costs deferred. The provision for unexpired risks is calculated by reference to classes of business which are managed together, after taking into account relevant investment return. No unexpired risk provision has been made in 2025 (2024 £Nil).
Investment return
Investment return comprises all investment income, realised investment gains and losses and movements in unrealised gains and losses, net of investment expenses, charges and interest. Both realised investment gains and losses are included as part of investment return in the profit and loss account. Dividends receivable are accounted for by reference to the date on which the price of the investment is quoted ex-dividend. Interest and expenses are accounted for on an accruals basis.
Realised gains and losses on investments carried at bid value are calculated as the difference between net sale proceeds and purchase price. Movements in unrealised gains and losses on investments represent the difference between the valuation at the balance sheet date and their purchase price or, if they have previously been revalued, their valuation at the last balance sheet date, together with the reversal of unrealised gains and losses recognised in earlier accounting periods in respect of investment disposals in the current period.
Investment return is initially recorded in the non-technical account. A transfer is made from the non-technical account to the general business technical account to reflect the investment return on funds supporting underwriting business. Other than investment return on Funds at Lloyd’s retained within the syndicate, all investment return has been wholly allocated to the technical account.
Investments
Investments in marketable securities are stated at bid value on the balance sheet date. For quoted investments where there is an active market, this is their quoted bid price at the balance sheet date. For quoted and non-quoted investments where there is no active market, the bid value is determined by reference to prices for similar assets in active markets.
Overseas deposits are stated at cost or market value, as notified by Lloyd’s.
Investments – fair value through profit and loss
A financial asset is classified into this category at inception if they are acquired principally for the purpose of selling in the short term, if they form part of a portfolio of financial assets in which there is evidence of short-term profit-taking, or if so designated to minimise any measurement or recognition inconsistency with the associated liabilities.
Financial assets designated as fair value through profit and loss are initially recognised at fair value with any transaction costs being expensed through the profit and loss account. For quoted investments where there is an active market, the fair value is their quoted bid price at the balance sheet date. For quoted investments where there is no active market, the fair value is determined by reference to prices for similar assets in active markets.
33
Insurance and other receivables
Insurance and other receivables are recognised at fair value less any provision for impairment. Any impairment of a receivable will be recognised if there is evidence that the company will not be able to collect the amounts receivable according to the original terms of the receivable.
Insurance and other payables
Payables arising from insurance contracts, creditors and deposits received from reinsurers, are initially measured at cost, which is equal to fair value, net of transaction costs. Insurance payables are derecognised when the obligation under the liability is settled, cancelled or expired.
Taxation
Under Schedule 19 of the Finance Act 1993 managing agents are not required to deduct basic rate income tax from trading income. In addition, all UK basic rate income tax deducted from syndicate investment income is recoverable by managing agents and consequently the distribution made to members is gross of tax. Capital appreciation falls within trading income and is also distributed gross of tax.
A provision has been made for overseas taxes payable (United States Federal Income Tax, Canadian Federal Income Tax, Japanese Income Tax) on underwriting results or investment earnings. Any payments on account during the year, made by the syndicate on behalf of its corporate member have been set off against members’ balances in the balance sheet.
Foreign currencies
Foreign currency transactions are accounted for, in functional currency, at the exchange rates prevailing at the date of the transactions. Gains and losses resulting from the settlement of such transactions, from translating such transactions into the functional currency of the syndicate, and from the revaluation to year end exchange rates of monetary assets and liabilities, are recognised in the profit and loss account.
At each period end foreign currency monetary items are translated using the closing rate. For this purpose all assets and liabilities arising from insurance contracts (including unearned premiums, deferred acquisition costs and unexpired risks provisions) are monetary items. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. Results recorded in their functional currency, are translated into sterling at average rates of exchange for the year while assets and liabilities are translated to sterling at year end exchange rates. Differences arising on translation are recorded in the statement of comprehensive income.
Profit commission
Profit commission is chargeable by the managing agent at a rate of 15% of the year of account profit, subject to the operation of a deficit clause. This does not become payable until after the appropriate year of account closes, normally at 36 months.
The managing agent has waived its right to the receipt of profit commission for the 2022 and 2023 years of account. It is currently anticipated that the profit commission will also be waived for the 2024 and 2025 years of account.
Reinsurance to close (“RITC”) received from a third party syndicate
When the syndicate accepts a RITC premium from another syndicate it records all of the assets and liabilities transferred from the other syndicate on the balance sheet at fair value on the date the RITC agreement is effective. Any unearned gross and reinsurance premiums included with the RITC transaction are recorded in the income statement on the date of the RITC agreement is effective and immediately deferred as movements in gross and reinsurers’ share of unearned premiums and are subsequently earned over the remaining life of the relevant contracts. The RITC transaction has no impact on the syndicate’s profit or net assets at the time that it is first recorded.
34
4.Risk and capital management
Capital management
CUAL assesses the capital needs for Syndicate 2488 and maintains an efficient capital structure consistent with its risk profile and business requirements and to meet regulatory requirements. The company then seeks to maintain financial strength and capital adequacy to support business growth and meet the requirements of policyholders, rating agencies and regulators, whilst retaining financial flexibility by ensuring substantial levels of liquidity. Once the capital needs have been met, it is the policy of the company to distribute any surplus capital through dividends to its ultimate parent company.
From a prudential perspective, the Lloyd’s market is regulated by the PRA and is subject to insurance solvency regulations which specify the minimum amount and type of capital that must be held. In line with regulatory requirements CUAL managed its capital levels in 2025 in the context of Solvency II and the Funds at Lloyd’s requirement.
Syndicate 2488’s regulatory capital requirement was set according to the Solvency II Internal Model until Q4 2025 when Solvency II was replaced by Solvency UK. The company performed tests and controls to ensure continuous and full compliance with the Solvency II regulations prior to Q42025 and Solvency UK regulations from Q4 2025.
The primary objectives for managing capital can be summarised as follows:
to satisfy the requirements of policyholders, regulators and rating agencies;
to match the profile of assets and liabilities, taking account of the risks inherent in the business;
to manage exposures to key risks; and
to retain financial flexibility by maintaining strong liquidity.
Insurance risk
Insurance risk arises from underwriting activities both prospective and retrospective. Key risks include unexpected losses arising from inaccurate pricing, fluctuations in the timing, frequency and/or severity of claims compared to expectations, inadequate reinsurance protection and inadequate reserving. The syndicate mitigates the risk of inaccurate pricing by maintaining underwriting discipline throughout its operations with the use of underwriting guidelines, technical expertise and appropriate authority limits which are monitored through price monitoring procedures, an established peer review process and exception monitoring. These guidelines are updated regularly to reflect developments in the nature of the insurance risks being underwritten.
The syndicate’s exposures are continually monitored and the catastrophe management function, independent of underwriting management, has responsibility to model aggregate risk and assists with the pricing of risk, providing a key control to the underwriting process.
The syndicate also uses reinsurance to help mitigate insurance risk by providing coverage against and limiting large individual or aggregated losses. However, the use of reinsurance provides additional risk where reinsurance may transpire to be inadequate in coverage or recoveries cannot be collected due to reinsurer default.
The reserving process is owned by the Actuarial Function and includes: coordinating the calculation of technical provisions; selecting appropriate methods and assumptions for each element of the reserve calculation; ensuring the appropriateness of the methodologies and underlying models used as well as the assumptions made in the calculation of the technical provisions; assessing the sufficiency and quality of the data used in the calculation of the technical provisions; comparing best estimate against experience; reviewing sufficiency of reserves; monitoring of large losses; forecasting and planning; regular deep dives; calculation of a range of reasonable estimates; arranging appropriately independent external review and peer review of assumptions and calculations. Challenge and oversight is provided by the Reserve Committee. The Responsibilities of this committee include monitoring the risk appetite statements related to reserve risk. CUAL’s independent non-executive directors attend the Reserve Committee meetings.
35
Sensitivity to insurance risk
As highlighted in note 3, there is inherent uncertainty in the ultimate cost of claims for which the company uses a variety of different actuarial techniques to estimate the provision for claims outstanding. If the net claims ratio for the year had been higher by 1%, then the profit for the financial year would have been lower by £6.5 million (2024: £6.1 million) and members’ balances would have been lower by £6.5 million (2024: £6.1 million). If the net claims ratio had been lower by 1%, then the profit for the financial year would have been higher by £6.5 million (2024: £6.1 million) and members’ balances would have been higher by £6.5 million (2024: £6.1 million).
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.
General insurance business sensitivities as at 31 December 2025
Sensitivity
+5.0%£000
-5.0%£000
Claims outstanding – gross of reinsurance
53,293
(53,293)
Claims outstanding – net of reinsurance
44,225
(44,225)
General insurance business sensitivities as at 31 December 2024
Sensitivity
+5.0%£000
-5.0%£000
Claims outstanding – gross of reinsurance
54,538
(54,538)
Claims outstanding – net of reinsurance
43,535
(43,535)
Concentrations of insurance risk
As shown in note 5, the syndicate writes a diverse book of business across a number of underwriting classes. Approximately 83% of the gross written premiums for 2025 (2024: approximately 82%) related to property and casualty lines of insurance, with the remainder split across a number of other classes.
Geographically, 60% (2024: 57%) of gross premiums written in 2025 relate to risks within the United States of America, with the remainder being spread across the UK, Europe and the Rest of the World.
Financial risk management objectives
The syndicate is exposed to a range of financial risks through its financial assets and financial liabilities. The most important components of this financial risk are market risk (including interest rate risk and currency risk), liquidity risk and credit risk.
These financial risks principally arise from the investment activity of the business and consequent holdings in fixed income investments, all of which are exposed to general and specific market movements. The underwriting activity of the business also generates financial risk, particularly in the form of currency risk as well as liquidity and credit risk through its insurance and reinsurance receivables and payables. The notes below explain how financial risks are managed. The processes used to manage these risks are unchanged from previous periods, and cover areas such as investment activity through stochastic modelling of the portfolio, within its internal capital model and consequent capital requirements.
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Investment activity governance
The managing agent operates an Investment Committee which functions under terms of reference determined by the Board. The Committee is charged with establishing and effecting an appropriate investment policy for the syndicate having regard to the financial risk appetite of the syndicate. In addition, the Committee has the responsibility for recommending the appointment and removal of investment managers, for reviewing the managers’ performance and for reporting on all other material aspects of the investment function.
The Investment Committee comprises senior Chubb management along with representatives from Chubb Asset Management, the group’s investment specialists who provide advisory services to Chubb group companies and is chaired by David Blair.
The investment management function is outsourced to specialist external managers.
Asset allocation policy
The Investment Committee has established an asset allocation policy which defines the limits for different asset types. The broad asset allocation policy cites two major asset classes: investment grade fixed income securities and alternative assets. The policy includes limits within the alternative assets for high yield, emerging market debt, liquid loans and equities. The policy stipulates a range of between 70% and 100% for investment grade fixed income securities and a range of between 0% and 30% for alternative asset classes. At the end of 2025 the total allocation to alternative assets was Nil (2024: 18%) and is monitored by the Investment Committee.
Investment guidelines
Investment management agreements have been established with the external investment managers. The agreements include specific guidelines for each individual portfolio in order to limit risks arising from duration, currency, liquidity, credit and counterparty exposures. The managers provide quarterly affirmation of compliance with these guidelines.
Interest rate risk and Equity price risk
The syndicate is exposed to interest rate risk primarily through its investments in fixed interest securities and, to the extent that claims inflation is correlated to interest rates, its liabilities to policyholders. Interest rate risk arises in the fixed income investment portfolio primarily through instrument duration. Accordingly, the investment guidelines include restrictions relating to the maximum weighted average duration of the portfolio. The restriction is stated by reference to the permissible duration variance compared to the customised benchmark index by which the external investment managers’ performance is assessed.
Sensitivity analysis for interest rate risk illustrates how changes in the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates at the reporting date. To illustrate the downside risk within the fixed interest portfolio of £1,299.8 million at external managers as at 31 December 2025 (2024: £1,599.0 million), the impact of an increase of 50 basis points in interest yields across all portfolios simultaneously (principally sterling, euros and US dollars) has been calculated and shown in the table below.
The impact of higher rates of inflation in the countries and economic sectors in which the syndicate trades has been analysed and reflected in the loss ratios selected for the current and prior underwriting years and is allowed for in forecasts and risk pricing.
The syndicate held no equities at the end of 2025 (2024: £0.7 million) and as a result the syndicate is no longer exposed to changes in the level and volatility of equity prices. To illustrate the downside risk within the equity portfolio during the prior year, the impact of a 5% decrease in stock market prices has been calculated and shown in the table below.
The analysis below and described above is performed for reasonably possible movements in market indices on financial instruments with all other variables held constant, showing the impact on the result before tax due to changes in fair value of financial assets and liabilities (whose fair values are recorded in the profit and loss account) and members’ balances.
37
The sensitivity analysis demonstrates the effect of a change in a key variable while other assumptions remain unchanged. However, the occurrence of a change in a single market factor may lead to changes in other market factors as a result of correlations.
The sensitivity analyses do not take into consideration that the Syndicate’s financial investments are actively managed. Additionally, the sensitivity analysis is based on the Syndicate’s financial position at the reporting date and may vary at the time that any actual market movement occurs. As investment markets move past pre-determined trigger points, action would be taken which would alter the Syndicate’s position.
Currency risk
The syndicate is primarily exposed to currency risk in respect of assets and liabilities under policies of insurance denominated in currencies other than sterling. The syndicate maintains various currency balances generated through regular business activity but the majority of the funds held are denominated in Sterling, Euros, Canadian Dollars and US Dollars. The syndicate’s policy seeks to ensure that an approximate currency match of assets and liabilities is maintained, with the bulk of surplus funds held in Canadian Dollars and US Dollars.
Any component of the members' funds denominated in currencies other than Sterling gives rise to currency risk due to exchange rate volatility relative to Sterling.
The accounting policy for foreign currencies is stated in note 3 to the financial statements.
For the profit and loss account, the 2025 average US Dollar/Sterling rate of US$1.309/£1 shows Sterling is stronger by 2.5% compared with the prior period (2024: US$1.277/£1). Had the average Sterling rate weakened against the US Dollar by 10% compared to the actual 2025 average and all other variables remained constant, the profit for the year would have been £26.1 million more than the amount reported (2024: £23.3 million more).
For the monetary components of the balance sheet, the year-end rates of US$1.338/£1 used to convert US Dollar to Sterling shows Sterling is stronger by 4.8% (2024: US$1.277/£1). Assuming sterling had weakened by 10% against the US Dollar and all other variables remained constant, the effect of translating year-end net assets based on these parameters would have resulted in an increase in members’ balances of £34.0 million, which would have appeared as a gain in the statement of comprehensive income (2024: £97.0 million gain).
2025Impact on results before tax£000
2025Impact on
members’
balances£000
2024Impact on results before tax£000
2024Impact on
members’
balances£000
Interest rate risk
+ 50 basis points shift in yield curves
(24,012)
(24,012)
(27,646)
(27,646)
- 50 basis points shift in yield curves
24,012
24,012
27,646
27,646
Equity price risk
+ 5 percent increase in equity prices
-
-
33
33
- 5 percent decrease in equity prices
-
-
(33)
(33)
38
The table below summarises the carrying value of the Syndicate’s assets and liabilities in Sterling and by currency , at the reporting date:
Liquidity risk
Liquidity risk is the risk that the syndicate is unable to meet its obligations as they fall due. To counter this risk, the syndicate aims to maintain funds in the form of cash or cash equivalents to meet known cash flows. In addition, the asset allocation policy and the investment guidelines are structured in order to ensure that funds are predominantly held in investment grade fixed income securities, the proceeds of which are readily realisable.
However, a significant share of the syndicate’s investments is held to meet regulatory deposit requirements which may not be available to meet recommended liquidity needs.
Sterling
US dollar
Euro
Canadian dollar
Australian dollar
Japanese Yen
Other
Total
2025
£000
£000
£000
£000
£000
£000
£000
£000
Investments
71,563
1,071,473
93,348
164,268
2
-
-
1,400,654
Reinsurers' share of technical provisions
16,084
167,495
20,425
15,958
2,616
(7)
850
223,421
Debtors
4,488
114,315
11,803
(47)
11,374
(129)
19,903
161,707
Other assets
9,468
165,493
1,517
332
25,758
-
1,966
204,534
Prepayments and accrued income
23,950
55,638
3,326
5,059
3,936
52
2,101
94,062
Total assets
125,553
1,574,414
130,419
185,570
43,686
(84)
24,820
2,084,378
Technical provisions
(129,965)
(958,302)
(123,066)
(108,658)
(63,047)
(2,538)
(21,032)
(1,406,608)
Creditors
(10,998)
(177,493)
(3,180)
(127,053)
(876)
(213)
(37,328)
(357,141)
Accruals and deferred income
(352)
(11,151)
(2,515)
5
(85)
-
(245)
(14,343)
Total liabilities
(141,315)
(1,146,946))
(128,761)
(235,706)
(64,008)
(2,751)
(58,605)
(1,778,092)
1
,
7
7
8
,
0
9
2
)
Total capital and reserves
15,762
(427,468)
(1,658)
50,136
20,322
2,835
33,785
(306,286)
Sterling
US dollar
Euro
Canadian dollar
Australian dollar
Japanese Yen
Other
Total
2024
£000
£000
£000
£000
£000
£000
£000
£000
Investments
73,604
1,376,940
154,434
175,720
17,595
-
36,602
1,834,895
Reinsurers' share of technical provisions
11,489
214,157
18,932
14,251
5,204
3
1,471
265,507
Debtors
3,147
122,942
10,797
727
8,792
(157)
21,560
167,808
Other assets
27,747
110,255
367
13
31,482
-
2,000
171,864
Prepayments and accrued income
16,890
62,690
2,756
6,020
3,600
25
2,133
94,114
Total assets
132,877
1,886,984
187,286
196,731
66,673
(129)
63,766
2,534,188
Technical provisions
(105,855)
(1,029,493)
(108,978)
(107,865)
(54,512)
(2,358)
(23,767)
(1,432,828))
Creditors
(26,038)
(41,697)
(51,391)
(60,169)
(932)
(216)
(35,246)
(215,689)
Accruals and deferred income
(299)
(10,086)
(2,520)
(89)
(84)
-
(237)
(13,315)
Total liabilities
(132,192)
(1,081,276)
(162,889)
(168,123)
(55,528)
(2,574)
(59,250)
(1,661,832)
1
,
6
6
1
,
8
3
2
)
Total capital and reserves
(685)
(805,708)
(24,397)
(28,608)
(11,145)
2,703
(4,516)
(872,356)
39
Syndicate 2488 participates in a notional pooling programme with other Chubb group companies under a facility operated by Bank Mendes Gans, a subsidiary of ING, which specialises in global liquidity management. The facility operates by the notional pooling of designated balances of the Chubb group participants in order to provide additional liquidity. Chubb group participants may overdraw individual account balances to fund immediate short term needs against credit balances held elsewhere within the pool. On this basis, CUAL maintained an overdraft of £152.3 million at year end (2024: £136.4 million) and credit balances of £181.8 million (2024: £156.3 million) in designated accounts.
The syndicate also benefits from letter of credit facilities which can be utilised to meet certain funding needs and notional pooling facilities with other Chubb group companies which serve to provide additional liquidity.
As indicated in the balance sheet, the syndicate’s financial liabilities are all payable within one year. Non-derivative financial liabilities with contractual maturities are paid within agreed terms of trade. Non-derivative financial liabilities with contractual maturities are limited to reinsurance premiums payable and expense accruals.
The maturity analysis presented in the table below shows the remaining contractual maturities for the Syndicate’s insurance contracts and financial instruments. For insurance and reinsurance contracts, the contractual maturity is the estimated date when the gross undiscounted contractually required cash flows will occur. For financial liabilities, it is the earliest date on which the gross undiscounted cash flows (including contractual interest payments) could be paid assuming conditions are consistent with those at the reporting date.
Credit risk
Credit risk is the risk that a counterparty will be unable to pay amounts in full when due. The syndicate is exposed to credit risk through its investment activity and its insurance operations.
The syndicate is exposed to investment credit and price risk as a result of its holdings in fixed income. The risk in respect of fixed income investments is moderated by the application of detailed investment guidelines which limit the size of holdings with individual issuers, restrict duration and dictate minimum credit quality, both for individual holdings and for the aggregate weighted portfolio.
The average credit quality of investment portfolios remained high throughout the year and at year end was “AA-” (2024: “A+”).
The investment guidelines seek to limit the credit risk of each of the portfolios through specifying eligible/ineligible investments, setting maximum counterparty exposures and minimum weighted credit quality and individual issuer credit quality.
6
000
000
000
000
000
Undiscounted net cash flows
Year 2025
No maturity stated£000
0-1 yrs£000
1-3 yrs£000
3-5 yrs£000
>5 yrs£000
Total£000
Claims outstanding
-
348,752
316,564
156,328
244,213
1,065,857
Creditors
-
357,141
-
-
-
357,141
Total
-
705,893
316,564
156,328
244,213
1,422,998
000
000
000
000
000
Undiscounted net cash flows
Year 2024
No maturity stated£000
0-1 yrs£000
1-3 yrs£000
3-5 yrs£000
>5 yrs£000
Total£000
Claims outstanding
-
356,403
346,471
164,527
223,357
1,090,758
Creditors
-
215,689
-
-
-
215,689
Total
-
572,092
346,471
164,527
223,357
1,306,447
40
Credit risk – insurance operations
The syndicate is exposed to credit risk as a result of its regular insurance and reinsurance activity. The areas of key exposure are:
reinsurers’ share of provision for claims outstanding;
debtors arising from reinsurers in respect of claims already paid;
amounts due from direct insurance and reinsurance policyholders; and
amounts due from direct insurance and reinsurance intermediaries.
Ceded reinsurance is used to manage and mitigate inwards direct insurance and reinsurance risk. Ceded reinsurance does not discharge the syndicate’s liability as primary insurer. If a ceded reinsurer fails to pay a claim, the syndicate remains liable for the payment to the policyholder. A Reinsurance Security Committee is operated by the Chubb group which analyses the creditworthiness of ceded reinsurers on a quarterly basis by reviewing their financial strength. In addition, the recent payment history of ceded reinsurers is used to update the reinsurance purchasing strategy.
With regard to direct insurance and reinsurance receivables, the syndicate operates a committee to review broker security, a process for monitoring arrangements with managing general agents, and, in certain circumstances, the requirement for collateral to be posted by the policyholder to the benefit of the syndicate.
Exposure to credit risk
The carrying amount of financial assets and reinsurance assets represents the maximum credit risk exposure.
The following table analyses the credit rating by investment grade of financial investments, debt securities and derivative financial instruments, reinsurers’ share of claims outstanding, amount due from intermediaries, amounts due from reinsurers in respect of settled claims, cash and cash equivalents, and other debtors and accrued interest.
Year 2025
AAA£000
AA£000
A£000
BBB£000
Other£000
Not rated£000
Total£000
Shares and other variable yield securities and units in unit trusts
-
-
-
-
-
-
-
Debt securities and other fixed income securities
143,389
536,427
376,986
241,415
614
-
1,298,831
Loans and deposits with credit institutions
11,412
9,036
48
-
-
-
20,496
Other investments
29,649
7,496
8,874
4,097
4,148
24,535
78,799
Deposits with ceding undertakings
-
-
2,528
-
-
-
2,528
Reinsurers’ share of claims outstanding
-
142,083
36,932
(49)
34
5,921
184,921
Debtors arising out of direct insurance operations
-
-
-
-
-
77,914
77,914
Debtors arising out of reinsurance operations
-
7,458
1,911
(3)
-
25,789
35,155
Cash at bank and in hand
-
2,516
202,018
-
-
-
204,534
Other debtors and accrued interest
-
2,947
-
-
-
13,013
15,960
Total
184,450
707,963
629,297
245,460
4,796
147,172
1,919,138
41
The above table has been corrected to analyse only the not yet due balances for each asset type as opposed to the total balance sheet positions as shown in the 2024 Financial Statements.
The value of £152.0m (2024: £480.6m) that is below BBB or not rated includes Swiss overseas deposits and all debtors arising out of direct insurance operations (for which rating data is not held) (in 2024 the value was also inclusive of the Oakhill Equity portfolio which was not rated) .
The amount of change, during the period and cumulatively, in the fair value of receivables that is attributed to changes in credit risk is represented by a provision for impairment against receivables past due.
Reinsurers’ share of technical provisions includes claims outstanding, related claims handling costs and IBNR. This is described along with the valuation methods in note 3. This balance includes 2.0% past due that have been impaired (2024: 2.5%).
Financial assets that are past due or impaired
The Syndicate has debtors arising from direct insurance and reinsurance operations that are past due but not impaired at the reporting date.
Debtors have been individually assessed for impairment by considering information such as the occurrence of significant changes in the counterparty’s financial position, patterns of historical payment information and disputes with counterparties.
An analysis of the carrying amounts of past due or impaired debtors is presented in the table below:
Year 2024
AAA£000
AA£000
A£000
BBB£000
Other£000
Not rated£000
Total£000
Shares and other variable yield securities and units in unit trusts
-
-
-
-
-
6,760
6,760
Debt securities and other fixed income securities
164,522
660,779
324,364
264,321
184,969
-
1,598,955
Loans and deposits with credit institutions
21,012
10,884
-
-
397
-
32,293
Other investments
27,733
5,159
6,547
5,081
80,087
69,353
193,960
Deposits with ceding undertakings
-
-
2,927
-
-
-
2,927
Reinsurers’ share of claims outstanding
-
167,862
53,049
3
40
4,785
225,739
Debtors arising out of direct insurance operations
-
-
-
-
-
86,842
86,842
Debtors arising out of reinsurance operations
-
5,396
1,641
-
-
30,617
37,654
Cash at bank and in hand
-
7,234
164,630
-
-
-
171,864
Other debtors and accrued interest
-
4,542
-
-
-
16,721
21,263
Total
213,267
861,856
553,158
269,405
265,493
215,078
2,378,257
42
The table below sets out a reconciliation of changes in impairment allowance during the period for each class of financial asset at the balance sheet date:
Neither past due nor impaired assets
Past due but not impaired assets
Gross value of impaired assets
Impairment allowance
Total
2025
£000
£000
£000
£000
£000
Shares and other variable yield securities and units in unit trusts
-
-
-
-
-
Debt securities and other fixed income securities
1,298,831
-
-
-
1,298,831
Loans and deposits with credit institutions
20,496
-
-
-
20,496
Other investments
78,799
-
-
-
78,799
Deposits with ceding undertakings
2,528
-
-
-
2,528
Reinsurers' share of claims outstanding
184,921
-
-
(3,571)
181,350
Debtors arising out of direct insurance operations
77,914
8,359
-
-
86,273
Debtors arising out of reinsurance operations
35,155
36,755
-
-
71,910
Other debtors and accrued interest
15,960
-
-
-
15,960
Cash at bank and in hand
204,534
-
-
-
204,534
Total
1,919,138
45,114
-
(3,571)
1,960,681
Neither past due nor impaired assets
Past due but not impaired assets
Gross value of impaired assets
Impairment allowance
Total
2024
£000
£000
£000
£000
£000
Shares and other variable yield securities and units in unit trusts
6,760
-
-
-
6,760
Debt securities and other fixed income securities
1,598,955
-
-
-
1,598,955
Loans and deposits with credit institutions
32,293
-
-
-
32,293
Other investments
193,960
-
-
-
193,960
Deposits with ceding undertakings
2,927
-
-
-
2,927
Reinsurers' share of claims outstanding
225,739
-
-
(5,691)
220,048
Debtors arising out of direct insurance operations
86,842
9,375
-
-
96,217
Debtors arising out of reinsurance operations
37,654
28,102
-
-
65,756
Other debtors and accrued interest
21,263
-
-
-
21,263
Cash at bank and in hand
171,864
-
-
-
171,864
Total
2,378,257
37,477
-
(5,691)
2,410,043
1 Jan
New impairment charges added in year
Changes in impairment charges
Released to profit and loss account
Foreign exchange
Others
31 Dec
2025
£000
£000
£000
£000
£000
£000
£000
Reinsurers' share of claims outstanding
5,691
-
(2,120)
-
-
-
3,571
Total
5,691
-
(2,120)
-
-
-
3,571
43
The table below sets out the age analysis of financial assets that are past due but not impaired at the balance sheet date:
1 Jan
New impairment charges added in year
Changes in impairment charges
Released to profit and loss account
Foreign exchange
Others
31 Dec
2024
£000
£000
£000
£000
£000
£000
£000
Reinsurers' share of claims outstanding
6,017
-
(326)
-
-
-
5,691
Total
6,017
-
(326)
-
-
-
5,691
Past due but not impaired
0-3 months past due
3-6 months past due
6-12 months past due
Greater than 1 year past due
Total
2025
£000
£000
£000
£000
£000
Debtors arising out of direct insurance operations
8,359
-
-
-
8,359
Debtors arising out of reinsurance operations
23,107
4,635
3,018
5,995
36,755
Total
31,466
4,635
3,018
5,995
45,114
Past due but not impaired
0-3 months past due
3-6 months past due
6-12 months past due
Greater than 1 year past due
Total
2024
£000
£000
£000
£000
£000
Debtors arising out of direct insurance operations
9,376
-
-
(1)
9,375
Debtors arising out of reinsurance operations
14,527
3,906
3,130
6,539
28,102
Total
23,903
3,906
3,130
6,538
37,477
44
5.Analysis of underwriting result
An analysis of the underwriting result before investment return is presented in the table below:
2025
Gross premiums written£000
Gross premiums earned£000
Gross claims incurred£000
Gross operating expenses£000
Reinsurance balance£000
Underwriting result£000
Direct insurance
Accident and health
13
13
(115)
(13)
(66)
(181)
Marine, aviation, and transport
163,536
157,748
(83,742)
(52,551)
10,476
31,931
Fire and other damage to property
306,949
301,893
(100,464)
(98,352)
(13,139)
89,938
Third party liability
167,870
163,561
(104,060)
(59,229)
2,197
2,469
Credit and suretyship
11,650
7,070
(3,071)
(2,861)
1,158
2,296
Total direct insurance
650,018
630,285
(291,452)
2
9
1
,
4
5
2
)
(213,006)
626
126,453
Reinsurance acceptances
116,672
121,503
(41,684)
(22,483)
(44,616)
12,720
Total
766,690
751,788
(333,136)
3
3
3
,
1
3
6
)
(235,489)
(43,990)
139,173
The below is an additional disclosure for Lloyd’s reporting purposes and is included to facilitate the classification of the above segments into the Lloyd’s aggregate classes of business:
2025
Gross premiums written£000
Gross premiums earned£000
Gross claims incurred£000
Gross operating expenses£000
Reinsurance balance£000
Underwriting result£000
Additional analysis
Fire and damage to property of which is:
Specialities
42
38
20
-
(14)
44
Energy
152
232
(118)
(69)
(984)
(939)
2024
Gross premiums written£000
Gross premiums earned£000
Gross claims incurred£000
Gross operating expenses£000
Reinsurance balance£000
Underwriting result£000
Direct insurance
Accident and health
15
15
(130)
3
217
105
Marine, aviation, and transport
159,383
142,380
(55,914)
(44,388)
(4,645)
37,433
Fire and other damage to property
283,529
272,467
(122,149)
(91,306)
(4,724)
54,288
Third party liability
153,180
153,927
(93,496)
(52,347)
10,771
18,855
Credit and suretyship
3,201
4,550
(1,186)
(1,583)
(1,527)
254
Total direct insurance
599,308
573,339
(272,875)
2
7
2
,
8
7
5
)
(189,621))
92
110,935
Reinsurance acceptances
128,155
127,121
(42,011)
(34,620)
(27,260)
23,230
Total
727,463
700,460
(314,886)
3
1
4
,
8
8
6
)
(224,241))
(27,168)
134,165
The below is an additional disclosure for Lloyd’s reporting purposes and is included to facilitate the classification of the above segments into the Lloyd’s aggregate classes of business:
45
2024
Gross premiums written£000
Gross premiums earned£000
Gross claims incurred£000
Gross operating expenses£000
Reinsurance balance£000
Underwriting result£000
Additional analysis
Fire and damage to property of which is:
Specialities
12
12
17
2
(12)
19
Energy
367
169
(209)
(9)
1,304
1,255
No gains or losses were recognised in profit or loss during the year on buying reinsurance (2024: nil).
The gross premiums written for direct insurance by underwriting location of risk is presented in the table below:
2025£000
2024£000
United Kingdom
69,937
65,096
European Union Member States
5,911
5,939
US
428,452
387,989
Rest of the world
145,718
140,284
Total gross premiums written
650,018
599,308
The comparative data in the above table has been corrected from the 2024 Financial Statements to reflect only direct gross premium written as opposed to all gross premium written.
6.Net operating expenses
2025£000
2024£000
Acquisition costs
194,843
178,664
Change in deferred acquisition costs
(5,792)
(7,927)
Administrative expenses
39,493
38,262
Members’ standard personal expenses
8,046
4,747
Reinsurance commissions and profit participation
(15,829)
(10,094)
Net operating expenses
220,761
203,652
Total commissions for direct insurance business for the year amounted to:
2025£000
2024£000
Total commission for direct insurance business
166,625
149,201
Administrative expenses include:
2025£000
2024£000
Auditors’ remuneration:
fees payable to the Syndicate’s auditor for the audit of these financial statements
597
597
fees payable to the Syndicate’s auditor and its associates in respect of other services pursuant to legislation
142
140
46
7.Key management personnel compensation
The managing agency has no employees (2024: none). Staff that support the syndicate and managing agency are employed by Chubb Services UK Limited (“CSUK”), Chubb European Group SE (“CEGSE”) and other fellow Chubb group undertakings (together the “employing entities”).
All directors of the managing agent received emoluments from the employing entities in respect of their services to the syndicate and Chubb group companies. The cost of these emoluments is included in a fee reimbursed directly to the employing entities by the syndicate. It is not practical to allocate these amounts to the underlying entities to which the directors provide services. Consequently, the following amounts represent the total emoluments paid by the employing entities in respect of the directors of the managing agent for the period during the year in which they served as directors:
2025£000
2024£000
Directors’ emoluments
4,118
3,902
Fees
314
223
The active underwriter received the following aggregate remuneration charged to the Syndicate.
8.Staff numbers and costs
The syndicate and managing agent have no employees. All staff are employed by Chubb Services UK Limited (“CSUK”), Chubb European Group SE (“CEGSE”) and other fellow Chubb group undertakings.
The Syndicate did not directly incur staff costs in the year (2024: £Nil) the following salary and related costs amounts were recharged by CSUK to Chubb Underwriting Agencies Limited (“CUAL”) and then onto to the Syndicate in both 2024 and 2025:
2025£000
2024£000
Wages and salaries
18,896
14,407
Social security costs
4,176
1,953
Other pension costs
2,463
1,517
Other short and long term incentive costs
6,274
4,263
Total
31,809
22,140
2025£000
2024£000
Emoluments
607
610
47
9.Investment return
2025£000
2024£000
Interest and similar income
From financial assets designated at fair value through profit or loss
Interest and similar income
76,022
89,700
Dividend income
12
-
Other income from investments
From financial assets designated at fair value through profit or loss
Gains on the realisation of investments
6,633
3,987
Losses on the realisation of investments
(16,481)
(5,361)
Unrealised gains on investments
68,268
152,267
Unrealised losses on the investments
(31,138)
(145,641)
Financial liabilities at amortised cost
Interest expense
(3,374)
(4,859)
Investment management expenses
(1,172)
(1,349)
Total investment return
98,770
88,744
Transferred to the technical account from the non-technical account
72,181
45,542
Investment return on Funds in Syndicate
26,589
43,202
An investment return of £72.2m was allocated to the technical account. All investment return has been wholly allocated to the technical account other than investment return on Funds at Lloyd’s retained within the Syndicate.
10.Distribution and open years of account
A distribution to the Syndicate’s Corporate members of £118.8m will be proposed in relation to the closing year of account (
2023
) (2024: £163.3m distribution in relation to the closing year of account (
2022
)).
11.Financial investments
Carrying value
Cost
2025£000
2024£000
2025£000
2024£000
Shares and other variable yield securities and units in unit trusts
-
658
-
270
Debt securities and other fixed income securities
1,298,831
1,598,9555
1,311,330
1,651,851
Loans and deposits with credit institutions
20,496
32,293
20,496
32,293
Syndicate loans to central fund
-
6,102
-
6,102
Other investments
78,799
193,960
78,799
163,865
Total financial investments
1,398,126
1,831,9688
1,410,625
1,854,381
Included in the carrying values above are listed investments as follows:
2025£000
2024£000
Listed investments
1,319,327
1,631,906
48
The table below presents an analysis of financial investments by their measurement classification:
2025£000
2024£000
Financial assets measured at fair value through profit or loss
1,398,126
1,831,968
Total financial investments
1,398,126
1,831,968
Within the balances in the table above there are no financial instruments (2024: £Nil) which would otherwise be required to be measured at fair value, but for which a reliable measure of fair value is no longer available.
The Syndicate is fully aligned. Included within the balance shown above are the amounts shown below being the capital provided by the corporate member to support its underwriting and held in the Syndicate’s premium trust funds. These funds are known as funds in syndicate (FIS). Further information on the Funds at Lloyd’s is provided in Note 28.
2025£000
2024£000
Funds in Syndicate (FIS)
50,579
648,694
Total funds in syndicate
50,579
648,694
The Syndicate classifies its financial instruments held at fair value in its balance sheet using a fair value hierarchy based on the inputs used in the valuation techniques as follows:
Level 1 financial assets that are measured by reference to published quotes in an active market. A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service or regulatory agency and those prices represent actual and regularly occurring market transactions on an arm’s length basis.
Level 2 financial assets measured using a valuation technique based on assumptions that are supported by prices from observable current market transactions. For example, assets for which pricing is obtained via pricing services but where prices have not been determined in an active market, financial assets with fair values based on broker quotes, investments in private equity funds with fair values obtained via fund managers and assets that are valued using the Syndicate’s own models whereby the significant inputs into the assumptions are market observable.
Level 3 financial assets measured using a valuation technique (model) based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data. Therefore, unobservable inputs reflect the Syndicate's own assumptions about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk). These inputs are developed based on the best information available, which might include the Syndicate’s own data.
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:
2025
Level 1£000
Level 2£000
Level 3£000
Assets held at amortised cost
Total£000
Shares and other variable yield securities and units in unit trusts
-
Debt securities and other fixed income securities
34,977
1,263,854
1,298,831
Loans and deposits with credit institutions
11,412
9,084
20,496
Syndicate loans to central fund
-
Other investments
78,799
78,799
Total financial investments
46,389
1,351,737
-
-
1,398,126
,
3
9
8
,
1
2
6
Total
46,389
1,351,737
-
-
1,398,126
,
3
9
8
,
1
2
6
49
2024
Level 1£000
Level 2£000
Level 3£000
Assets held at amortised cost
Total£000
Shares and other variable yield securities and units in unit trusts
311
-
347
-
658
Debt securities and other fixed income securities
117,634
1,481,321
-
-
1,598,955
Loans and deposits with credit institutions
21,012
11,281
-
-
32,293
Syndicate loans to central fund
-
-
6,102
-
6,102
Other investments
25,101
57,091
111,768
-
193,960
Total financial investments
164,058
1,549,6933
118,217
-
1,831,9688
Total
164,058
1,549,6933
118,217
-
1,831,9688
Information on the methods and assumptions used to determine fair values for each major category of financial instrument measured at fair value is provided below.
‘Debt securities and other fixed interest securities’ with active markets such as Government securities are classified within Level 1, as fair values are based on quoted market prices. For debt securities and other fixed interest securities that trade in less active markets, including corporate securities, fair values are based on the output of pricing models, the significant inputs into which include, but are not limited to, yield curves, credit risks and spreads, measures of volatility, and prepayment speeds. These debt securities and other fixed interest securities are classified within Level 2. For debt securities and other fixed interest securities and debt securities and other fixed interest securities for which pricing is unobservable, these are classified within Level 3.
‘Loans and deposits with credit institutions’ include short term investments, such as liquidity funds. Where such securities are traded in active markets, they are classified within Level 1, as fair values are based on quoted market prices. Where no active market exists for such securities they are typically classified within Level 2 and where pricing is unobservable, Level 3.
For securities in level 3 where pricing is based on unobservable inputs, valuations are sourced from models and / or third parties. Any third party models are reviewed and approved by the Chubb Group’s specialist asset management function on a quarterly basis. Significant uncertainty would be considered to exist in relation to pricing based on unobservable inputs.
No derivative assets or liabilities are held at the reporting date (2024: Nil).
Management performs an analysis of the prices obtained from pricing vendors to ensure that they are reasonable and produce a reasonable estimate of fair value. Management considers both qualitative and quantitative factors as part of this analysis. Examples of analytical procedures performed include reference to recent transactional activity for similar securities, review of pricing statistics and trends and consideration of recent relevant market events.
At the reporting date Level 1 and Level 2 financial assets and liabilities were valued using valuation techniques based on observable market data. All of the investments categorised as Level 3 are fair valued based on the inputs to the valuation technique used.
12.Debtors arising out of direct insurance operations
2025£000
2024£000
Due within one year
86,273
96,217
Total
86,273
96,217
13.Debtors arising out of reinsurance operations
2025£000
2024£000
Due within one year
71,910
65,756
Total
71,910
65,756
50
14.Other debtors
2025£000
2024£000
Other related party balances (non-syndicate)
3,320
5,617
Other
204
218
Total
3,524
5,835
15.Deferred acquisition costs
The table below shows changes in deferred acquisition costs assets from the beginning of the period to the end of the period:
2025
2024
Gross£000
Reinsurance£000
Net£000
Gross£000
Reinsurance£000
Net£000
Balance at 1 January
78,686
(8,468)
70,218
71,940
(8,784)
63,156
Incurred deferred acquisition costs
194,843
(15,829)
179,014
178,664
(10,094)
168,570
Amortised deferred acquisition costs
(187,950)
14,728
(173,222)
(170,937)
10,294
(160,643)
Foreign exchange movements
(3,953)
444
(3,509)
(981)
116
(865)
Balance at 31 December
81,626
(9,125)
72,501
78,686
(8,468)
70,218
51
16. Claims development
The following tables illustrate the development of the estimates of earned ultimate cumulative claims incurred, including claims notified and IBNR, for each successive underwriting year, illustrating how amounts estimated have changed from the first estimates made.
As these tables are on an underwriting year basis, there is an apparent large increase from amounts reported for the end of the underwriting year to one year later as a large proportion of premiums are earned in the year of account’s second year of development.
Balances have been translated at exchange rates prevailing at 31 December 2025 in all cases.
Gross:
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Total
Pure underwriting year
£000
£000
£000
£000
£000
£000
£000
£000
£000
£000
£000
Estimate of gross claims
at end of underwriting year
129,7788
146,5255
100,2688
94,597
168,3255
135,1066
135,5222
140,1600
160,9755
144,6200
one year later
313,294
297,504
263,853
279,6511
306,675
310,214
281,439
316,290
323,0011
two years later
324,757
330,265
284,861
292,9822
284,309
301,762
268,949
306,437
three years later
323,970
327,184
296,920
275,2955
288,328
295,9888
267,776
four years later
329,453
331,534
311,963
270,3022
268,328
314,319
five years later
328,476
347,343
330,268
254,8011
257,903
six years later
332,754
356,476
338,065
254,7633
seven years later
340,5200
355,182
354,709
eight years later
344,227
354,608
nine years later
355,684
Estimate of gross claims reserve
355,684
354,608
354,709
254,7633
257,903
314,319
267,776
306,437
323,0011
144,6200
2,933,820
,
9
3
3
,
8
2
0
Provision in respect of prior years
179,095
Less gross claims paid
(311,987)
3
1
1
,
9
8
7
)
(327,086)
3
2
7
,
0
8
6
)
(305,900)
3
0
5
,
9
0
0
)
(219,321)
2
1
9
,
3
2
1
)
(206,973)
2
0
6
,
9
7
3
)
(221,271)
2
2
1
,
2
7
1
)
(160,580)
1
6
0
,
5
8
0
)
(147,920)
1
4
7
,
9
2
0
)
(117,612)
1
1
7
,
6
1
2
)
(28,408)
2
8
,
4
0
8
)
(2,047,058)
2
,
0
4
7
,
0
5
8
)
Gross claims reserve
43,697
27,522
48,809
35,442
50,930
93,048
107,196
158,517
205,3899
116,212
1,065,857
,
0
6
5
,
8
5
7
52
Net:
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Total
Pure underwriting year
£000
£000
£000
£000
£000
£000
£000
£000
£000
£000
£000
Estimate of net claims
at end of underwriting year
101,515
102,118
78,967
75,964
117,310
112,548
116,717
119,760
136,222
132,613
one year later
245,477
234,7222
204,413
223,9955
233,579
256,316
252,771
285,124
294,0588
two years later
264,7955
257,5866
216,871
228,6244
222,8011
254,597
234,128
280,5677
three years later
257,131
254,0833
220,693
211,341
221,765
253,6500
229,918
four years later
250,6888
255,723
221,374
208,9277
207,0088
256,872
five years later
246,7288
261,433
221,865
198,793
199,158
six years later
251,416
263,421
220,559
197,378
seven years later
257,259
260,3822
230,147
eight years later
258,0722
260,2533
nine years later
264,413
Estimate of net claims reserves
264,413
260,2533
230,147
197,378
199,158
256,872
229,918
280,5677
294,0588
132,613
2,345,377
,
3
4
5
,
3
7
7
Provision in respect of prior years
135,1111
Less net claims paid
(239,304)
2
3
9
,
3
0
4
)
(236,420)
2
3
6
,
4
2
0
)
(195,700)
1
9
5
,
7
0
0
)
(168,426)
1
6
8
,
4
2
6
)
(155,310)
1
5
5
,
3
1
0
)
(177,059)
1
7
7
,
0
5
9
)
(148,141)
1
4
8
,
1
4
1
)
(140,771)
1
4
0
,
7
7
1
)
(106,799)
1
0
6
,
7
9
9
)
(28,051))
(1,595,981)
1
,
5
9
5
,
9
8
1
)
Net claims reserve
25,109
23,833
34,447
28,952
43,848
79,813
81,777
139,796
187,259
104,562
884,507
8
4
,
5
0
7
53
17.Technical provisions
The table below shows changes in the insurance contract liabilities and assets from the beginning of the period to the end of the period.
2025
2024
Gross provisions£000
Reinsurance
Assets£000
Net£000
Gross provisions£000
Reinsurance
Assets£000
Net£000
Claims outstanding
Balance at 1 January
1,090,758
(220,048)
870,710
1,109,398
(233,001)
876,397
Claims paid during the year
(328,266)
66,865
(261,401)
(314,244)
54,799
(259,445)
Expected cost of current year claims
145,267
(12,512)
132,755
166,354
(26,379)
139,975
Change in estimates of prior year provisions
187,869
(23,035)
164,834
148,533
(16,522)
132,011
Foreign exchange movements
(29,771)
7,380
(22,391)
(19,283)
1,055
(18,228)
Balance at 31 December
1,065,857
(181,350)
884,507
1,090,758
(220,048)
870,710
No unwinding of discount has been included within the statement of profit or loss.
2025
2024
Gross provisions£000
Reinsurance
Assets£000
Net£000
Gross provisions£000
Reinsurance
Assets£000
Net£000
Unearned premiums
Balance at 1 January
342,070
(45,459)
296,611
319,594
(48,598)
270,996
Premiums written during the year
766,690
(94,140)
672,550
727,463
(89,158)
638,305
Premiums earned during the year
(751,788)
94,265
(657,523)
(700,460)
90,658
(609,802)
Foreign exchange movements
(16,221)
3,263
(12,958)
(4,527)
1,639
(2,888)
Balance at 31 December
340,751
(42,071)
298,680
342,070
(45,459)
296,611
Refer to Note 4 for the sensitivity analysis performed over the value of insurance liabilities, disclosed in the accounts, to potential movements in the assumptions applied within the technical provisions.
18.Discounted claims
Discounting may be applied to claims provisions where there are individual claims with structured settlements that have annuity-like characteristics, or for books of business with mean term payment greater than four years from the accounting date.
No claims have been discounted in the year (2024:£Nil).
19.Creditors arising out of reinsurance operations
2025£000
2024£000
Due within one year
40,151
45,569
Total
40,151
45,569
54
20.Other creditors including taxation and social security
2025£000
2024£000
Other related party balances (non-syndicates)
164,700
33,682
Other liabilities
-
-
Total
164,700
33,682
21.Cash and cash equivalents
2025£000
2024£000
Cash at bank and in hand
204,534
171,864
Short term debt instruments presented within other financial investments
20,496
82,192
Deposits with credit institutions
78,799
32,293
Bank overdrafts
(152,290)
(136,438)
Total cash and cash equivalents
151,539
149,911
Only deposits with credit institutions with maturities of three months or less that are used by the Syndicate in the management of its short-term commitments are included in cash and cash equivalents. There are no balances are presented as cash at bank and in hand in the balance sheet but relating to amounts held in accounts with more than three-month maturity from origination.
Included within cash and cash equivalents are the following amounts which are not available for use by the Syndicate: Canadian Regulated Funds £3.9m (represents funds ringfenced in the USD Canadian Trust Fund covering settlements in respect of this business only); Canadian LCTF regulated funds £5.5m (represents the funds ringfenced in the CAD Canadian Trust Fund covering settlements in respect of this business only); Letter of Credit collateral £0.7m (represents cash deposited with Citibank which is collateral supporting the Syndicates share of letters of credit issued by Lloyd’s on behalf of the market); funds held on behalf of Brokers £19.1m (represents the balance of cash received in connection with reinsurer flows to and from the Syndicate for which either the relevant signings have yet to be booked or the onwards movement to the Reinsurer has yet to be processed); (2024: Canadian Regulated Funds £2.3m, Canadian LCTF regulated funds £8.4m, Letter of Credit collateral £0.7m, funds held on behalf of Brokers £5.2m).
2025£000
2024£000
Cash at bank and in hand
4,714
5,902
Short term debt instruments presented within other financial investments
9,314
10,686
Total cash and cash equivalents not available for use by the syndicate
14,028
16,588
22.Analysis of net debt
At 1 January 2025
£000
Cash flows
£000
Acquired
£000
Fair value and exchange movements
£000
Non-cash changes
£000
At 31 December 2025
£000
Cash and cash equivalents
149,911
7,459
-
(5,831)
-
151,539
Total
149,911
7,459
-
(5,831)
-
151,539
23.Related parties
The ultimate holding company of the syndicate’s managing agent, Chubb Underwriting Agencies Limited (“CUAL”), is Chubb Limited, a company which is registered in Zurich, Switzerland and quoted on the New York Stock Exchange.
Copies of the ultimate holding company's consolidated accounts can be obtained from Investor Relations at Chubb's executive offices at 1133 Avenue of the Americas, New York, NY 10036.
55
The principal related reinsurance partner of the syndicate is Chubb Tempest Reinsurance, a leading global multi-line reinsurer that is part of the Chubb group. The syndicate may have reinsured, or have been reinsured by, insurance companies in which Chubb Limited has interests and of which it and certain of its subsidiaries are controllers.
During calendar year 2025, a number of outwards reinsurance contracts were effected with group companies. The main excess of loss reinsurance programmes in operation during 2025 were shared with other Chubb companies, including Chubb European Group SE.
The following is a summary of the reinsurance transactions and balances with related parties in 2025 and as at 31 December 2025:
2025
Reinsurance Premium Related
Chubb Tempest Reinsurance
£,000
Chubb European Group SE
£’000
Chubb America
£’000
Other
£’000
Total
£’000
Reinsurance Premiums
(5,726)
(276)
-
(282)
(6,284)
Reinsurance Commissions
473
14
-
23
510
Reinsurers’ share of Unearned Premium Reserve
2,568
151
-
87
2,806
Reinsurance Creditor
(1,397)
376
99
(34)
(956)
2025
Reinsurance Recovery Related
Chubb Tempest Reinsurance
£’000
Chubb European Group SE
£’000
Chubb America
£’000
Other
£’000
Total
£’000
Change in reinsurers’ share of Claims Incurred
13,968
3,100
404
94
17,566
Balance of reinsurers’ share of Claims Outstanding
50,508
(377)
1,350
614
52,095
Reinsurance Debtor
3,836
1,102
947
3,192
9,077
2024
Reinsurance Premium Related
Chubb Tempest Reinsurance
£’000
Chubb European Group SE
£’000
Chubb America
£’000
Other
£’000
Total
£’000
Reinsurance Premiums
(7,283)
22
-
(400)
(7,661)
Reinsurance Commissions
115
(85)
-
17
47
Reinsurers’ share of Unearned Premium Reserve
3,347
259
-
96
3,702
Reinsurance Creditor
(5,219)
506
104
(705)
(5,314)
2024
Reinsurance Recovery Related
Chubb Tempest Reinsurance
£’000
Chubb European Group SE
£’000
Chubb America
£’000
Other
£’000
Total
£’000
Change in reinsurers’ share of Claims Incurred
13,805
(1,166)
408
(128)
12,919
Balance of reinsurers’ share of Claims Outstanding
40,808
(275)
3,790
668
44,991
Reinsurance Debtor
4,369
1,739
522
4,189
10,819
The syndicate’s capacity for all years of account is provided entirely by Chubb Capital I Limited, which is a corporate member of Lloyd’s, participating only on Syndicate 2488. Chubb Capital I Limited is a wholly owned subsidiary within the Chubb group.
Managing agency fees of £Nil (2024: £Nil) were paid by the syndicate to CUAL. Staff providing services to CUAL and the syndicate are employed by Chubb Services UK Limited (“CSUK”), another Chubb Limited company. CSUK settles expenses on behalf of, and provides services to, the syndicate and CUAL. Expenses settled by CSUK are recharged to CUAL and then onto the Syndicate at a markup. During 2025 the syndicate incurred expenses of £56.0m from CUAL (of which £15.8m related to claims handling
56
expenses and £40.2m to admin expenses) (2024: £58.4 million from CSUK of which £15.3m related to claims handling expenses and £43.1m to admin expenses) and had an outstanding balance with CSUK of £0.5 million payable as at 31 December 2025 (2024: £2.4 million receivable) and an outstanding balance with CUAL of £6.5m payable as at 31 December 2025 (2024: £22.4m payable).
These disclosure requirements are in addition to the requirement to disclose key management personnel compensation. This disclosure is given in note .
24.Off-balance sheet items
The Syndicate benefits from collateral pledged in the form of Funds at Lloyd’s totalling £423.7m (2024: £393.0m), as well as a letter of credit totalling £74.3m (2024: £73.4m).
25.Post balance sheet events
The amounts that are proposed to be transferred to members are disclosed in note . There are no other non-adjusting post-balance sheet events.
26.Contingencies and commitments
The Syndicate has no contingencies and commitments to disclose (2024: Nil).
27.Foreign exchange rates
The following currency exchange rates have been used for principal foreign currency transactions:
2025
2024
Start of period rate
End of period
rate
Average
rate
Start of period rate
End of period rate
Average
rate
Sterling
1.00
1.00
1.00
1.00
1.00
1.00
Euro
1.21
1.14
1.17
1.16
1.21
1.18
US dollar
1.28
1.34
1.32
1.26
1.28
1.28
Canadian dollar
1.81
1.85
1.84
1.71
1.81
1.75
Australian dollar
2.00
2.00
2.04
1.89
2.00
1.94
Japanese Yen
194.04
208.71
197.23
180.28
194.04
193.53
The average rates listed in the table above are the official Lloyd’s average rates. The Syndicate does not apply average rates to any transactions instead monthly rates are applied to income statement transactions based on the month in which they occur.
28.Funds at Lloyd’s
Every member is required to hold capital at Lloyd’s which is held in trust and known as Funds at Lloyd’s (‘FAL’). These funds are intended primarily to cover circumstances where Syndicate assets prove insufficient to meet participating members’ underwriting liabilities. The level of FAL that Lloyd’s requires a member to maintain is determined by Lloyd’s based on Prudential Regulatory Authority requirements and resource criteria. The determination of FAL has regard to a number of factors including the nature and amount of risk to be underwritten by the member and the assessment of the reserving risk in respect of business that has been underwritten. The syndicates members have met their capital requirements through the retention of closed year of account profits in the syndicate (Funds in Syndicate) of £50.6m (2024: £648.7m) along with FAL of £423.7m (2024: £393.0m) and a letter of credit totalling £74.3m (2024: 73.4m). At 31 December 2025 these funds totalled £548.6 million (2024: £1,115.1 million).