Important information about Syndicate Reports and Financial statements
Access to this document is restricted to persons who have given the certification set forth
below. If this document has been forwarded to you and you have not been asked to give the
certification, please be aware that you are only permitted to access it if you are able to give
the certification.
The Syndicate reports and financial statements set forth in this section of the Lloyd’s
website, which have been filed with Lloyd’s in accordance with the Syndicate Accounting
Byelaw (No. 8 of 2005), are being provided for informational purposes only. The Syndicate
reports and financial statements have not been prepared by Lloyd’s, and Lloyd’s has no
responsibility for their accuracy or content. Access to the Syndicate reports and financial
statements is not being provided for the purposes of soliciting membership in Lloyd’s or
membership on any Syndicate of Lloyd’s, and no offer to join Lloyd’s or any Syndicate is
being made hereby. Members of Lloyd’s are reminded that past performance of a Syndicate
in any Syndicate year is not predictive of the related Syndicate’s performance in any
subsequent Syndicate year.
You acknowledge and agree to the foregoing as a condition of your accessing the Syndicate
reports and financial statements. You also agree that you will not provide any person with a
copy of any Syndicate report and financial statements without also providing them with a
copy of this acknowledgement and agreement, by which they will also be bound.
MS Amlin
Underwriting Limited
Syndicate 2001
Annual Report & Financial Statements
31 December 2025
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20222
We paired our underwriters with Hollywood stunt doubles to highlight the dynamic skills behind
the London Market.
Photo: Political Risk & Credit Underwriter, Louise Scott (right), and her stunt double, Helen Bailey.
Cover image: Reinsurance underwriter, Mike Speed (left), and his double Adrian McGaw.
01
Directors and administration 03
Message from outgoing Chief Executive Officer 04
Chief Executive Officer Foreword 08
Report of the directors of the managing agent 10
Statement of responsibilities of the directors of the managing agent 14
Independent auditor’s report to the member of Syndicate 2001 16
Financial statements
•
Statement of profit or loss and other comprehensive income 20
•
Statement of financial position 21
•
Statement of cash flows 22
•
Statement of changes in members’ balance 23
•
Notes to the financial statements 24
Contents
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 202202
Simon Morgan, Head of Property (left), and his stunt double Jake Shallcross.
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2025 0303
03
Directors and administration CEO Foreword Directors’ report Directors’ responsibilities Independent auditor’s report Financial statements
Managing agent’s registered office
The Leadenhall Building
122 Leadenhall Street
London EC3V 4AG
Managing agent’s registered number
02323018
Statutory auditor
KPMG LLP
15 Canada Square
London
E14 5GL
Report details
Item Description
Syndicate number 2001
Managing agent name MS Amlin Underwriting Limited
End of period covered by report 31/12/2025
End date of prior period 31/12/2024
Presentational currency GBP
Functional currency USD
Managing agent
MS Amlin Underwriting Limited
Directors of the managing agent
M T Burke
J Burrows
C Dart
V Desai
A J Downes
K Ema
Y Hataya
J Hine
S J L Jeffreys
S Shimada
H S Trilovszky
Active underwriter
M T Burke
Managing agent’s secretary
J Simek
Directors and administration
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20250404
Message from Andrew Carrier
Outgoing Chief Executive Officer
The Change
Twelve months ago, I wrote about the principle of
change and how quickly change can feel not just
evolutionary, but revolutionary. 2025 has demonstrated
how that notion is still very much part of our world.
2025 has seen radical intervention at a macro as well
as a micro level, with economic levers being pulled that
impact our daily lives, as well as challenging what were
established pillars of trade and the conventional ways
of working.
Yet despite the increased uncertainty and unpredictably
of current times, I really want to focus on the idea of
continuity. Somewhat paradoxically perhaps, this will
be my last time committing my opinion on the year to
these reports, now that I have stepped down as CEO as
of 31 December 2025; but more of that later.
Much of our portfolio is orientated around our US
customers, and it was the US that set the tone for the
year, particularly with the terrible events of the wildfires
in Los Angeles that occurred in January. While the event
itself was not surprising, given the tinder-dry conditions
that we have known about for some time, the extent to
which losses were polarised towards a relatively small
cohort of customers was unusual.
The fires were a perfect metaphor for the tension
between cause and effect, event and claim, change and
continuity. Paying claims is why companies like ours are
here, to support customers when needed.
Which leads me neatly into the first and most important
of our four stakeholder groups, customers.
Our Customers
Our approach to customers, by aligning our
Underwriting and Claims teams continues to pay off.
We support them whether they are reinsurance cedants
with highly complex needs or small businesses
operating in exposed parts of the world. The principle
we adopt and the support we provide is the same
regardless. The way we support customers saw us
nominated and, in some cases, win a number of awards
this year. This included being finalists at the British
Insurance Awards for the Major Loss Award, and
winners of the Lloyd’s Market Association ‘Claims
Service in Action’ award and Insurance ERM Carrier of
the Year, to name just a few.
The idea of readiness and supporting our customers
was key to our thinking when we launched our new
Portfolio Solutions division early in the year. We wanted
to bring together parts of our business where the
specialist nature of our products was as much the form
of distribution as it was the products themselves.
Portfolio Solutions cover a variety of established and
emerging aspects to our business, that really embodies
the way we want to do business in the future.
The new Portfolio Solutions team acts as a focal point
for the execution of opportunities with other parts of the
broader MS&AD Group network, through which a series
of risk sharing initiatives are being explored. It also
manages and advances existing opportunities including
MS Amlin’s share of a number of high-profile London
market facilities and a series of algorithmic ‘fast follow’
relationships. We also expanded our footprint both in
Australia and New Zealand with a new branch office,
and in Dubai expanding our Crisis Management
capability.
The principle of partnership reflects our recognition of
the ever-changing needs our customers have of us. The
ongoing evolution of the alignment between supply and
demand, and where and how we meet the needs of
each customer in our increasingly volatile world is
paramount.
The tension between change and continuity
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2025
0505
Directors and administration CEO Foreword Directors’ report Directors’ responsibilities Independent auditor’s report Financial statements
Our Shareholder
We are fortunate to have a shareholder that has
proven it takes a long term view.
At a Financial Times event last year I spoke of a
growing tension between customer expectation
particularly for catastrophe exposed customers seeking
lower rates to control their cost base, set against a
longer-term trend of an increase in major event severity
and frequency. This short-term dip relative to
expectation of major storms eases profitability
concerns in the short term but is counter to our
understanding of the bigger picture and the elevated
threat over the longer time horizon.
I mention this because this is important context to the
pressure on rates right now, a pressure I do not predict
will abate for some time. I believe our market will
continue its journey into the lower reaches of the cycle
for some time to come, until capacity exits and/or an
event significant enough to break the pattern occurs.
However, despite my forecasting, I do not believe any
of this is cause for doom mongering or hand wringing.
In fact, far from it. Our results once again demonstrate
what a strong and stable syndicate we are, with a
commendable set of numbers to highlight our
considered approach to financial planning, business
planning and portfolio management, with £2.1 billion
of Gross written premium and a profit for the year
figure of £355 million.
Our net claims ratio of 50.0% (2024: 54.9%) visibly
illustrates the fact we can comfortably absorb major
events as significant as the LA wildfires, so early in the
year and we still produce such strong results due to our
discipline and the resilience of our balance sheet;
simultaneously supporting our customers. Finally, our
current year Attritional Loss Ratio of 42.5% (2024:
43.3%) highlights the health and quality of our core
business, which gives us added confidence for the
years ahead.
Our People
Our commitment to our people and their future is
something I feel very strongly about. As our market
continues to evolve and soften, building strength,
commitment and resilience is what will continue to
secure our prosperity.
We continued to invest in our people and culture with
internal initiatives driven by our most talented, as well
as giving everyone with line management
responsibilities further opportunities to develop their
interpersonal skills and behaviours.
We announced our involvement as founding partners
of the Inclusive Futures Coalition in 2024 to support the
efforts of Lloyd’s and the wider market in attracting
and retaining more ethnically diverse talent. The
coalition taps into a societal issue that is close to my
heart – representation – and the wider role diversity
can play in a modern organisation that appreciates its
value. We also achieved a fantastic milestone in 2025
with the appointment of twenty new graduates and
apprentices - each with markedly differing stories of
their journey to our organisation.
In the most positive ways, MS Amlin is not the
syndicate I joined in 2020 and I want us to be a
business that reflects and represents the world we live
in and the communities we are here to support.
The challenge of making our business and our wider
sector an attractive one to new talent of all ages was a
driver behind a brand new marketing campaign we
launched this year. Using a seemingly unrelated
industry - film and TV stunt performers - to highlight
the importance of understanding risk. We produced an
exciting range of films with a variety of jaw dropping
stunts with the performers doubling as genuine MS
Amlin underwriters.
Message from Andrew Carrier (continued)
£2.1bn
Gross written premium
£355m
Profit
42.5%
Attritional Loss Ratio
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20250606
Our Communities
The combination of geopolitical tensions, economic
shocks, and environmental pressures continues to
shape our operating landscape, perhaps more quickly
than it has ever done. Climate change is driving more
frequent and severe weather events, while biodiversity
loss, energy security pressures, an increasing strain on
global health systems and geopolitical instability are
fuelling inequality, amplifying resource competition and
increasing social fragility. These interconnected forces
impact our customers and wider communities in which
we are invested, making them increasingly relevant to
our business.
Our partnerships with NGOs, multilateral lenders,
development banks, public agencies, humanitarian
actors and academia are vital to developing innovative,
inclusive insurance models that strengthen resilience
and accessibility. Inside our business we mobilised
what we’ve called ‘ESG Re’, a scalable and multi-
disciplinary team that enables us to focus our efforts on
providing commercially viable solutions for climate
adaptation and disaster risk reduction. This work is
focused primarily on emerging markets and developing
economies, where the insurance protection gap is
fundamentally shaped by large uninsured populations,
limited financial inclusion and high vulnerability to
climate, health and income shocks. Closing this gap
therefore has a material societal impact, protecting
livelihoods, supporting financial inclusion, strengthening
community resilience, stabilising incomes, supporting
faster disaster recovery and reducing poverty traps.
Our work in this space represents a significant
opportunity for MS Amlin – one that aligns long-term
growth with social value. We’re alive to the fact we
cannot find meaningful solutions on our own. As part of
the MS&AD group, we are working together to find
viable ways to balance the various needs of our
stakeholders. That’s why our approach is consciously
and deliberately aligned with our head office on this
vital subject. Together we have laid strong foundations
for the future.
Message from Andrew Carrier (continued)
Our Graduates and Apprentices Class of 2025
Mastery of Modern Risk
campaign photos
06
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2025
0707
Directors and administration CEO Foreword Directors’ report Directors’ responsibilities Independent auditor’s report Financial statements
Message from Andrew Carrier (continued)
The continuity
As noted earlier, this is the last time I will comment on a
set of accounts for MS Amlin, as I have stepped down
as CEO and passed the baton to Christiern Dart, who
joined as CEO from 1 January 2026. Christiern takes up
the position in a syndicate that is in a well-established
pattern and rhythm of delivery. Our people are
professional, capable, and focussed upon adding value
and protecting our customers. The fact is the syndicate
and the CEO are very different things and a change in
executive leader does not change our focus and activity.
What you have come to expect from MS Amlin is
something you should expect to see from us in future as
we continue to deliver.
I wish to extend my gratitude to many for their support
and commitment over the past three years. First to our
shareholder Mitsui Sumitomo (MSI), and our ultimate
parent company the MS&AD Group. MSI has been
phenomenally supportive of both me and my Executive
team but also of our business. They have given MS
Amlin the space to grow and to realise the ambitions
they held when they announced the deal to purchase
Amlin in 2015. I want to thank our brokers and partners
for their enduring cooperation, and for the way they
continue to engage with us in a tactical and strategic
way to make us a better, bigger and a more capable
syndicate to better support our mutual customers. I will
leave the organisation as one with a restored reputation
of being able to deliver consistent positive results, and
this is in no small part down to the team ethic we have
worked hard to build over the last five years.
Finally, I want to thank my colleagues. It is an ever-
enduring cliché to describe the people you work with as
an organisation’s most valuable asset, yet like many
common phrases they contain a fundamental truth at
their core and this one is no different. To newly joined
colleagues - welcome. You have joined a syndicate that
is finding its energy, momentum and drive in a way it
has not for many years. To those who have been with
us for some time and have seen us through more
challenging times - thank you. I admire your
commitment and belief in what and who we can be.
Together you will be Christiern’s greatest source of
optimism and strength.
From January 2026 I take up a new role within MSI, and
I look forward to watching the syndicate assume its
position as a leading operation with self-belief and
confidence for the future. Despite the challenges ahead,
the future is full of possibilities, and I am excited by them
and by what MS Amlin will achieve for the benefit of all
its stakeholders.
Andrew Carrier
Outgoing Chief Executive Officer MS Amlin:
2022-2025
07
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20250808
Accepting the offer to become Chief Executive Officer at
MS Amlin was not a difficult one. MS Amlin has a
long-established brand and heritage in the London
Market making my role as CEO one of the most
prestigious jobs in the market.
MS Amlin is a business with a remarkable history and
pedigree and it is definitely a business with huge,
untapped value and potential, particularly when I look
across the wider MSI network. Unlocking that value and
potential is why I decided to join the business, and when
I look around at the Syndicate I now lead, I am greatly
motivated by the challenge of taking a high performing
organisation and making it truly great.
As Andrew rightly notes, unpredictability and volatility is
increasing, seemingly exponentially and coupled with
the downturn in our rating environment makes
unlocking increased value and potential a greater
challenge. The raw materials, talent and tools I have at
my disposal are in great shape, and I would like to
congratulate Andrew, the Executive team and wider
business on everything that has been achieved over the
last few years. I have assumed the reins of a business
where the fundamentals are not in question and the
balance sheet and capital position is strong. Yet
delivering consistent profits, finding incremental
profitable growth and being agile enough to exploit
opportunities as they appear, however fleetingly, is my
focus and it is what will shape my first year.
I am a pragmatist, and I believe there is almost always
opportunity to be secured in the face of change, and
change is in plentiful supply. Yet be under no doubt,
stability remains paramount and we will pursue our
strategy calmly and in a sensible and disciplined
manner.
Taking advantage of opportunity requires confidence,
commitment and resilience. These are the qualities I
know we have at MS Amlin, and I plan to build a greater
intensity into them over the coming years, so that we
step forward with energy and excitement.
I look forward to writing more comprehensively on the
year we’ve had, in twelve months’ time, and to setting
out a more detailed picture of the years that lie ahead
for MS Amlin.
Christiern Dart
Chief Executive Officer MS Amlin
Christiern Dart, CEO
Message from Christiern Dart
Chief Executive Officer
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2025
0909
09
Directors and administration CEO Foreword Directors’ report Directors’ responsibilities Independent auditor’s report Financial statements
The MS Amlin Peace of Mind Garden
at the RHS Chelsea Flower Show
Message from Christiern Dart
Chief Executive Officer
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20251010
Report of the directors of the managing agent
The directors of MS Amlin Underwriting Limited (the
‘managing agent’ or ‘MS Amlin’ or ‘the Board’) present
their managing agent’s report for Syndicate 2001 (the
‘Syndicate’) for the year ended 31 December 2025.
The annual report is prepared using the annual basis of
accounting as required by Statutory Instrument No.
1950 of 2008, the Insurance Accounts Directive (Lloyd’s
Syndicate and Aggregate Accounts) Regulations 2008
(‘the 2008 Regulations’) and in accordance with United
Kingdom Generally Accepted Accounting Practice
including Financial Reporting Standard 102: the
Financial Reporting standard applicable in the United
Kingdom and Republic of Ireland (‘FRS 102’) and
Financial Reporting Standard 103: Insurance Contracts
(‘FRS 103’).
Business review and principal activities
The Syndicate is, through MS Amlin Corporate Member
Limited (the ‘Corporate Member’), a wholly aligned
Syndicate of Mitsui Sumitomo Insurance Company,
Limited (‘MSI’). The ultimate parent company is MS&AD
Insurance Group Holdings, Inc. (‘MS&AD’). The principal
activity of Syndicate 2001 is the transaction of specialty
insurance and reinsurance business in the United
Kingdom and through the Lloyd’s Brussels platform,
through the Society of Lloyd’s and its component parts.
For its customers, the Syndicate offers a broad spectrum
of insurance and reinsurance products, blending market
knowledge, experience and expertise, with a practical
desire to deliver solutions to support them.
We provide traditional reinsurance services alongside
access to capital markets: Aviation Reinsurance, Casualty
Reinsurance, International Property Reinsurance, Marine
& Energy Reinsurance, Speciality Reinsurance and US
Property Reinsurance.
We offer a broad range of insurance products that can
support customers across a wide variety of trades and
industries: Casualty, Crisis Management, Marine, Natural
Resources and Property.
The Syndicate will continue to transact predominantly the
current classes of specialty insurance and reinsurance
business as listed above.
The total premium income capacity, net of brokerage, of
the Syndicate for each of the years of account open
during 2025 was as follows:
£m
2023 year of account 1,600
2024 year of account 2,000
2025 year of account 2,000
The total premium income capacity of the Syndicate in
2026 is £2,000 million
Significant developments
The profit for the financial year increased by 67.6% to
£355 million (2024: £212 million). Total comprehensive
income was £304 million (2024: £221 million) after
accounting for a £51 million currency translation loss
through other comprehensive income, as a result of
translation from functional (USD) to reporting (GBP)
currency (2024: £9 million profit).
Profit on the technical account was £317 million (2024:
£211 million), which includes an underwriting profit
excluding investment return transferred from the
non-technical account of £259 million (2024: £172
million). The combined operating ratio was 85.4%
(2024: 88.9%). This improvement in profitability reflects
the combination of profitable growth; an improved
attritional loss ratio (across all accident years) through
better risk selection and portfolio management; cost
control actions; and improved net investment returns.
The profit for the year is after absorbing the California
Wildfire loss, which occurred in January 2025, and also
the impact of 2025 court settlements and market
judgements in respect of aviation losses, sustained as a
result of the Ukraine war in 2022.
Gross written premiums increased to £2,128 million
(2024: £1,769 million). 2024 includes the one-off
negative impact of a change in binder estimates (£173
million). Before this impact, underlying year on year
growth in gross written premiums was 9.6%, driven by
new business growth, partly offset by rate reductions.
Net earned premiums increased to £1,768 million
(2024: £1,551 million). Excluding the one-off positive
impact of the change in binder estimates in 2024 (£58
million), underlying year on year growth in net earned
premiums was 18.5%, which follows the increase in
gross premiums, but also reflects our strategy to retain
more net risk, and more favourable pricing on the
purchase of our 2025 reinsurance programme.
The net claims ratio was 50.0% (2024: 54.9%). The
Syndicate was exposed to 4 major catastrophe events
in 2025, including the California Wildfire loss and the
earthquake in Myanmar. In 2024, the Syndicate was
exposed to 4 major catastrophe events, including two
Atlantic hurricanes and the Baltimore Bridge loss.
Overall, catastrophes generated losses to the Syndicate
of £98 million net of reinstatement premiums (2024:
£91 million net of reinstatement premiums), or 5.9
points on the net loss ratio (2024: 6.2 points).
During 2025, prior period reserves, excluding increases
to Ukraine war losses, reduced by £83 million (2024:
reduced by £17 million, excluding Ukraine war losses),
representing a reduction of 4.7% to the net claims ratio
(2024: reduction of 1.1% to the net claims ratio).
The net expense ratio of 35.3% (2024: 34.0%)
increased due to a higher acquisition cost ratio partly
offset by a lower administration cost ratio, with the
latter supported by disciplined cost management
relative to net earned premium growth.
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2025 1111
11
Directors and administration CEO Foreword Directors’ report Directors’ responsibilities Independent auditor’s report Financial statements
Report of the directors of the managing agent
(continued)
2024 figures have been re-presented to allocate £5
million of net written premium, £5 million of net earned
premium, and £22 million of net claims from
discontinued business into Insurance and Reinsurance
divisions. The impact on the 2024 ratios re-presented
above is to increase the Insurance division net claims
ratio by 2.1 percentage points to 54.9% and combined
ratio by 2.3 percentage points to 91.8%, and the
Reinsurance division net claims ratio and combined ratio
by 0.4 percentage points to 55.1% and 82.3%
respectively.
Divisional analysis
During 2025, the Syndicate operations were managed
across two divisions, Insurance and Reinsurance,
managed by a single underwriting management team
led by the active underwriter. This section analyses the
underwriting performance of these two divisions. This
presentation and the comparatives for 2024 are shown
on a consistent basis and are based on the managing
agent’s view of how the Syndicate is managed. This
differs from the analysis by Lloyd’s class disclosed in
note 4.
Insurance
Insurance generated £1,366 million of gross written
premium (2024: £1,101 million). 2024 includes the
one-off negative impact of the change in binder
estimates (£172 million). Taking this into account,
underlying year on year growth in gross written
premiums was 7.3%, driven by new business growth,
partly offset by rate reductions. Net earned premiums
increased to £1,230 million (2024: £1,088 million).
Excluding the one-off positive impact of the change in
binder estimates in 2024 (£58 million), underlying year
on year growth in net earned premiums was 19.4%,
which follows the increase in gross premiums, but is
also driven by the decision to retain more net risk, and
favourable pricing on renewal of our reinsurance
programme.
The net claims ratio has decreased by 4.4 percentage
points in comparison with the prior year, to 50.5%. This
result includes the impact of lower overall catastrophe
losses compared to 2024, coupled with positive
improvements in the attritional loss ratio performance,
and an increase in prior period best estimate reserve
releases. In addition to this, the net claims ratio also
includes the impact of court settlements in respect of
market aviation losses sustained as a result of the war
in Ukraine.
The net expense ratio has increased by 1.1 percentage
points to 38.0%, driven by higher acquisition costs,
partly offset by improvement in the administration cost
ratio.
Reinsurance
Reinsurance generated £762 million of gross written
premium (2024: £668 million), an increase of £94 million
on the prior year (14.0%). This increase reflects growth
through new business opportunities, partly offset by
rate reductions. Net earned premiums increased by
16.2% year on year, following the increased gross
written premiums, plus increased net retention and
favourable outwards reinsurance pricing.
The net claims ratio of 49.0% decreased by 6.1
percentage points compared with 2024. This
improvement is driven by improved attritional loss
performance and an increase in prior period best
estimate reserve releases. The net claims ratio also
includes the impact of court settlements in respect of
market aviation losses sustained as a result of the war
in Ukraine.
The net expense ratio has increased by 1.9 percentage
points versus prior year driven by higher acquisition
costs partly offset by improvement in the administration
cost ratio.
Investment performance
The Syndicate investment result was a gain of £74
million in the year (2024: gain of £41 million), equating
to a yield (net of all associated costs) on average total
invested assets of 3.7% (2024: 2.3%).
The managing agent’s investment objective is to
increase shareholder value in a way that balances risk.
At the same time, it seeks to align with wider Group
strategies including those relating to sustainability.
Investments are managed on a multi-asset, multi-
Underwriting performance by division
Insurance Reinsurance Total
2025 2024 2025 2024 2025 2024
£m £m £m £m £m £m
Gross written premiums
1,366 1,101 762 668 2,128 1,769
Net written premiums
1,277 981 607 504 1,884 1,485
Net earned premiums
1,230 1,088 538 463 1,768 1,551
Net claims ratio
50.5% 54.9% 49.0% 55.1% 50.0% 54.9%
Net expense ratio
38.0% 36.9% 29.2% 27.2% 35.3% 34.0%
Net combined ratio
88.5% 91.8% 78.1% 82.3% 85.4% 88.9%
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20251212
manager basis. For the Syndicate, investments are
predominantly invested in bond and money market funds,
with a modest allocation to alternative assets (property
and private equity funds, and a global credit hedge fund)
through the Funds in Syndicate (‘FIS’) portfolio. During the
prior year there was investment in global equity funds
through the FIS portfolio, but as part of the release of
surplus capital during 2024, this allocation was reduced
to nil.
Asset liability management is a core element of
investment management, as the managing agent seeks
to align assets with insurance liabilities by currency and
by duration. Where mismatches occur, either assets are
restructured or appropriate derivatives are used to
address the mismatch. Tactical and operational
management of investments is outsourced to a sister
company, MS Amlin Investment Management Limited,
governed through an investment management agreement
incorporating an investment mandate. Further details on
investments can be found in note 10.
Liquidity
For 2025, the Syndicate is reporting strong positive flows
reflecting the continued improvement in underwriting
result. The Syndicate has at the date of this report, access
to a Cash-based revolving credit facility of £160 million
(2024: £160 million) to supplement any urgent liquidity
needs. Further details on the Syndicate’s liquidity facilities
can be found in note 9.
Principal risks
The principal financial risks to the Syndicate are insurance
risk, market risk (including financial investment risk and
foreign exchange risk), interest rate risk and credit risk.
Detailed explanations of these risks are provided in notes
10, 11 & 14 to these financial statements.
The Syndicate is also exposed to strategic risk (including
Environmental, Social and Governance risk) and
operational risk through the execution of its strategic aims
and its participation in the Lloyd’s market, as well as other
more general operational risks associated with the
management of a Syndicate. Lloyd’s is a mutual society,
and the Syndicate is dependent on Lloyd’s licence and
ratings to operate.
The managing agent does not believe there are any other
principal risks or uncertainties not included in the notes
mentioned above connected with the Syndicate.
Credit rating
Syndicate 2001 trades through the Lloyd’s worldwide
licences and ratings. It also benefits from the Lloyd’s
brand. Lloyd’s Syndicate 2001 has an AA- (Very Strong)
(2024: AA- (Very Strong)) rating from Standard & Poor’s,
and an A+ (Superior) (2024: A+ (Superior)) rating from AM
Best.
Report of the directors of the managing agent
(continued)
Sustainability
Our Sustainability strategy sets out our commitment to
generating long-term enterprise value by embedding
sustainability into core underwriting, investment and
operational decisions. Central to this approach is the
deployment of commercially-grounded underwriting
and financing capacity to build climate and socio-
economic resilience, particularly in emerging markets
and vulnerable communities, while creating profitable,
scalable solutions that close protection gaps and
strengthen global stability. Underwriting is our most
powerful lever for impact, enabling us to mobilise
adaptation finance, integrate ESG factors across
decision-making, and develop products that reduce risk
and enhance continuity for businesses and
communities.
We operate in a world shaped by interconnected
systemic risks including climate change, biodiversity
loss, global health pressures, geopolitical instability and
socio-economic inequality. These dynamics are
reshaping insurance markets and creating both material
risks and new commercial opportunities for innovation
in resilience finance. Our philosophy is to create shared
value for customers, communities, employees and
shareholders by ensuring that financial performance
and societal benefit reinforce one another. Sustainability
is embedded within our enterprise risk management,
governance and reporting processes, ensuring
transparency, accountability and continuous
improvement as global standards and risks evolve.
Senior appointments
Throughout 2025, MS Amlin continued to benefit from
the strength of its Executive and Non-Executive
leadership teams, which saw a small number of orderly
and well-planned changes.
In March 2025, following nine years of service, Phil
Calnan retired from his roles as Senior Independent
Non-Executive Director and chair of the Audit and
Remuneration Committees. The Board thanks Phil for
his significant contribution and dedicated service and
wishes him well for the future. Following a thorough
handover, Andrew Downes assumed the roles of both
chair of the Audit Committee and the Remuneration
Committee in April 2025.
Following the planned retirements of Masayuki Kawase
and Masato Tomihari from the Board in March 2025,
Shintaro Shimada and Keisuke Ema were appointed to
the Board in May and June 2025 respectively, following
receipt of all required regulatory approvals.
In July 2025, Andrew Carrier announced his intention to
retire from his role as Chief Executive Officer and
Director of MS Amlin at the end of the year. Following a
detailed and rigorous search process, Christiern Dart
was appointed as his successor and joined MS Amlin in
December 2025, formally assuming the roles of Chief
Executive Officer and Director on 1 January 2026.
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2025 1313
13
Directors and administration CEO Foreword Directors’ report Directors’ responsibilities Independent auditor’s report Financial statements
Report of the directors of the managing agent
(continued)
Directors of the managing agent
The current directors of the managing agent are shown
on page 3. During the year and up to the date of
signing, the following changes to the Board of Directors
of the managing agent have occurred:
Name Date of appointment Date of resignation
P J Calnan 31 March 2025
A J Carrier 31 December 2025
C R J Dart 1 January 2026
K Ema 27 June 2025
M Kawase 31 March 2025
S Shimada 29 May 2025
M Tomihari 31 March 2025
Going concern
The Syndicate has financial resources to meet its
financial needs and manages a mature portfolio of
insurance risk through an experienced team. The
directors of the managing agent believe that the
Syndicate is well positioned to manage its business
risks successfully in the current economic environment.
The directors of the managing agent have continued to
review the business plans, liquidity and operational
resilience of the Syndicate.
The 2026 year of account of Syndicate 2001 has
opened and the directors of the managing agent 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 also surplus capital available in the Corporate
Member. There is therefore 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.
Independent auditor
Pursuant to Section 14 (2) of Schedule 1 of the Insurance
Accounts Directive (Lloyd’s Syndicate and Aggregate
Accounts) Regulations 2008, the auditor will be deemed
to be reappointed and KPMG LLP will therefore continue
in office.
Disclosure of information to the auditor
Each director of the managing agent who held office at
the date of the approval of this report confirms that:
• so far as the directors of the managing agent are
aware, there is no relevant audit information of which
the Syndicate’s auditor is unaware; and
• the directors of the managing agent have taken all
the steps that they ought to have taken as a director
of the managing agent in order to make themselves
aware of any relevant audit information and to
establish that the Syndicate’s auditor is aware of that
information.
On behalf of the Board
C R J Dart
Chief Executive Officer
18 February 2026
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20251414
Statement of responsibilities of the directors of the
managing agent
The directors of the managing agent are responsible for
preparing the Syndicate financial statements in
accordance with the Insurance Accounts Directive
(Lloyd’s Syndicate and Aggregate Accounts) Regulations
2008 and applicable Accounting Standards in the United
Kingdom and the Republic of Ireland, including Financial
Reporting Standard 102 (‘FRS 102’). FRS 102 requires
the application of Financial Reporting Standard 103
(‘FRS 103’) in relation to insurance contracts and the
Lloyd’s Syndicate Accounts Instructions Version 3.1, as
modified by the Syndicate Accounts Frequently Asked
Questions Version 1.1 dated 13 February 2026, as
issued by the Council of Lloyd’s.
The Insurance Accounts Directive (Lloyd’s Syndicate and
Aggregate Accounts) Regulations 2008 requires the
directors of the managing agent to prepare their
Syndicate’s financial statements for each financial year.
Under that law they have elected to prepare the
financial statements in accordance with UK Accounting
Standards and applicable law (UK Generally Accepted
Accounting Practice), including FRS 102 The Financial
Reporting Standard applicable in the UK and Republic of
Ireland.
Under the Insurance Accounts Directive (Lloyd’s
Syndicate and Aggregate Accounts) Regulations 2008
the directors of the managing agent must not approve
the financial statements unless they are satisfied that
they give a true and fair view of the state of affairs of the
Syndicate and of the profit or loss of the Syndicate for
that period. In preparing these financial statements, the
directors of the managing agent are required to:
• Select suitable accounting policies and then apply
them consistently;
• Make judgements and estimates that are reasonable
and prudent;
• State whether applicable UK Accounting Standards
have been followed, subject to any material
departures disclosed and explained in the financial
statements;
• Assess the Syndicate’s ability to continue as a going
concern, disclosing, as applicable, matters related to
going concern;
• Use the going concern basis of accounting unless
they either intend to cease trading or have no realistic
alternative but to do so; and
• 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 are 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 them to
ensure that the financial statements comply with the
Insurance Accounts Directive (Lloyd’s Syndicate and
Aggregate Accounts) Regulations 2008. They are
responsible for such internal control as they determine is
necessary to enable the preparation of financial
statements that are free from material misstatement,
whether due to fraud or error, and have general
responsibility for taking such steps as are reasonably
open to them to safeguard the assets of the Syndicate
and to prevent and detect fraud and other irregularities.
The directors of the managing agent are responsible for
the maintenance and integrity of the Syndicate and
financial information included on the Syndicate’s
website. Legislation in the UK governing the preparation
and dissemination of financial statements may differ
from legislation in other jurisdictions.
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2025
1515
15
Directors and administration CEO Foreword Directors’ report Directors’ responsibilities Independent auditor’s report Financial statements
Head of US Casualty Reinsurance Rhian Pinder (right) and her stunt double, Belinda McGinley
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20251616
Independent auditor’s report
to the members of Syndicate 2001
Opinion
We have audited the Syndicate annual accounts of
Syndicate 2001 (“the Syndicate”) for the year ended 31
December 2025 which comprise the statement of profit
or loss and other comprehensive income, statement of
financial position, statement of cash flows, statement of
changes in members’ balance and related notes,
including the accounting policies in note 3.
In our opinion the Syndicate annual accounts:
• give a true and fair view of the state of the
Syndicate’s affairs as at 31 December 2025 and of
its profit for the year then ended;
• have been properly prepared in accordance with UK
accounting standards, including FRS 102 The
Financial Reporting Standard applicable in the UK
and Republic of Ireland; and
• have been prepared in accordance with the
requirements of the Insurance Accounts Directive
(Lloyd’s Syndicate and Aggregate Accounts)
Regulations 2008, and Sections 1 and 5 of the
Syndicate Accounts Instructions Version 3.1, as
modified by the Syndicate Accounts Frequently
Asked Questions Version 1.1 dated 13 February
2026, issued by the Council of Lloyd’s (“the
Syndicate Accounts Instructions”).
Basis for opinion
We conducted our audit in accordance with
International Standards on Auditing (UK) (“ISAs (UK)”),
applicable law, and, under the terms of our engagement
letter dated 31 July 2025, the Syndicate Account
Instructions. Our responsibilities are described below.
We have fulfilled our ethical responsibilities under, and
are independent of the Syndicate in accordance with,
UK ethical requirements including the FRC Ethical
Standard as applied to other entities of public interest.
We believe that the audit evidence we have obtained is
a sufficient and appropriate basis for our opinion.
Going concern
The directors of the Managing Agent (“the Directors”)
have prepared the Syndicate annual accounts on the
going concern basis as they do not intend to cease
underwriting or to cease its operations, and as they
have concluded that the Syndicate’s financial position
means that this is realistic. They have also concluded
that there are no material uncertainties that could have
cast significant doubt over its ability to continue as a
going concern for at least a year from the date of
approval of the Syndicate annual accounts (“the going
concern period”).
In our evaluation of the Directors’ conclusions, we
considered the inherent risks to the Syndicate’s business
model and analysed how those risks might affect the
Syndicate’s financial resources or ability to continue
operations over the going concern period, including
inspecting correspondence with the Council of Lloyd’s to
assess whether there were any known impediments to
establishing a further year of account.
Our conclusions based on this work:
• we consider that the Directors’ use of the going
concern basis of accounting in the preparation of the
Syndicate annual accounts is appropriate; and
• we have not identified, and concur with the Directors’
assessment that there is not, a material uncertainty
related to events or conditions that, individually or
collectively, may cast significant doubt on the
Syndicate’s ability to continue as a going concern for
the going concern period.
However, as we cannot predict all future events or
conditions and as subsequent events may result in
outcomes that are inconsistent with judgements that
were reasonable at the time they were made, the above
conclusions are not a guarantee that the Syndicate will
continue in operation.
Fraud and breaches of laws and
regulations – ability to detect
Identifying and responding to risks of material
misstatement due to fraud
To identify risks of material misstatement due to fraud
(‘fraud risks’) we assessed events or conditions that
could indicate an incentive or pressure to commit fraud
or provide an opportunity to commit fraud. Our risk
assessment procedures at the Syndicate and Managing
Agent included:
Enquiring of directors, the Audit Committee, internal
audit, legal, compliance and risk and inspection of policy
documentation as to the Syndicate and Managing
Agent’s high-level policies and procedures to prevent
and detect fraud, including the internal audit function,
and the Syndicate and Managing Agent’s channel for
“whistleblowing”, as well as whether they have
knowledge of any actual, suspected or alleged fraud;
• Reading board and audit committee minutes;
• Considering remuneration incentive schemes and
performance targets for management and directors;
and
• Using analytical procedures to identify any unusual or
unexpected relationships.
We communicated identified fraud risks throughout the
audit team and remained alert to any indications of
fraud throughout the audit.
As required by auditing standards, and taking into
account possible pressures to meet profit targets and
our overall knowledge of the control environment, we
perform procedures to address the risk of management
override of controls and the risk of fraudulent revenue
recognition, in particular:
• the risk that management may be in a position to
make inappropriate accounting entries; and
• the risk of bias in accounting estimates and
judgements such as the valuation of technical
provisions.
We did not identify any additional fraud risks.
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2025 1717
17
Directors and administration CEO Foreword Directors’ report Directors’ responsibilities Independent auditor’s report Financial statements
We performed procedures including:
• Identifying journal entries and other adjustments to
test based on risk criteria and comparing the
identified entries to supporting documentation. These
included those posted by senior management and
those who do not typically post journals, unusual
combinations posted to the gross written premium
account and late adjustments posted to technical
provisions; and
• Assessing whether the judgements made in making
accounting estimates are indicative of a potential
bias.
Identifying and responding to risks of material
misstatement related to compliance with laws and
regulations
We identified areas of laws and regulations that could
reasonably be expected to have a material effect on the
Syndicate Annual Report and Accounts from our
general commercial and sector experience and through
discussion with the directors and other management
(as required by auditing standards), and from inspection
of the Syndicate and Managing Agent regulatory and
legal correspondence and discussed with the directors
and other management the policies and procedures
regarding compliance with laws and regulations.
As the Syndicate is regulated, our assessment of risks
involved gaining an understanding of the control
environment including the entity’s procedures for
complying with regulatory requirements.
We communicated identified laws and regulations
throughout our team and remained alert to any
indications of non-compliance throughout the audit.
The potential effect of these laws and regulations on
the Syndicate Annual Report and Accounts varies
considerably.
Firstly, the Syndicate is subject to laws and regulations
that directly affect the Syndicate Annual Report and
Accounts including financial reporting legislation
(including related Lloyd’s legislation), and we assessed
the extent of compliance with these laws and
regulations as part of our procedures on the related
Syndicate Annual Report and Accounts items.
Secondly, the Syndicate is subject to many other laws
and regulations where the consequences of non-
compliance could have a material effect on amounts or
disclosures in the Annual Return, for instance through
the imposition of fines or litigation or the loss of the
Syndicate’s license to operate. We identified the
following areas as those most likely to have such an
effect: regulatory capital and liquidity, conduct and
financial crime, health and safety, data protection laws,
anti-bribery, employment law, money laundering,
foreign corrupt practices, contract legislation,
competition legislation, and misrepresentation
recognising the financial and regulated nature of the
Syndicate’s activities. Auditing standards limit the
required audit procedures to identify non-compliance
with these laws and regulations to enquiry of the
directors and other management and inspection of
regulatory and legal correspondence, if any. Therefore if
a breach of operational regulations is not disclosed to
us or evident from relevant correspondence, an audit
will not detect that breach.
Context of the ability of the audit to detect fraud or
breaches of law or regulation
Owing to the inherent limitations of an audit, there is an
unavoidable risk that we may not have detected some
material misstatements in the Syndicate Annual Report
and Accounts, even though we have properly planned
and performed our audit in accordance with auditing
standards. For example, the further removed non-
compliance with laws and regulations is from the
events and transactions reflected in the Syndicate
Annual Report and Accounts, the less likely the
inherently limited procedures required by auditing
standards would identify it.
In addition, as with any audit, there remained a higher
risk of non-detection of fraud, as these may involve
collusion, forgery, intentional omissions,
misrepresentations, or the override of internal controls.
Our audit procedures are designed to detect material
misstatement. We are not responsible for preventing
non-compliance or fraud and cannot be expected to
detect non-compliance with all laws and regulations.
Other information - Report of the
Directors of the managing agent
The Directors are responsible for the Report of the
Directors of the Managing Agent. Our opinion on the
Syndicate Annual Report and Accounts does not cover
that report and we do not express an audit opinion or,
except as explicitly stated below, any form of assurance
conclusion thereon.
Our responsibility is to read the Report of the Directors
of the Managing Agent and, in doing so, consider
whether, based on our Syndicate Annual Report and
Accounts audit work, the information therein is
materially misstated or inconsistent with the Syndicate
Annual Report and Accounts or our audit knowledge.
Based solely on that work:
• we have not identified material misstatements in the
Report of the Directors of the Managing Agent;
• in our opinion the information given in the Report of
the Directors of the Managing Agent is consistent
with the Syndicate Annual Report and Accounts; and
• in our opinion the Report of the Directors of the
Managing Agent has been prepared in accordance
with the requirements of the Insurance Accounts
Directive (Lloyd’s Syndicate and Aggregate
Accounts) Regulations 2008.
Independent auditor’s report
to the members of Syndicate 2001 (continued)
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20251818
Matters on which we are required to
report by exception
Under the Insurance Accounts Directive (Lloyd’s
Syndicate and Aggregate Accounts) Regulations
2008, we are required to report to you if, in our
opinion:
• adequate accounting records have not been kept
on behalf of the Syndicate; or
• the Syndicate Annual Report and Accounts are
not in agreement with the accounting records; or
• certain disclosures of Managing Agent’s
emoluments specified by law are not made; or
• we have not received all the information and
explanations we require for our audit.
We have nothing to report in these respects.
Responsibilities of the Directors of
the Managing Agent
As explained more fully in their statement set out on
page 14, the Directors of the Managing Agent are
responsible for: the preparation of the Syndicate
Annual Report and Accounts in accordance with the
requirements of the Insurance Accounts Directive
(Lloyd’s Syndicate and Aggregate Accounts)
Regulations 2008 and the Syndicate Accounts
Instructions, and for being satisfied that they give a
true and fair view; such internal control as they
determine is necessary to enable the preparation of
Syndicate Annual Report and Accounts that are free
from material misstatement, whether due to fraud or
error; 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 they either intend
to cease operations, or have no realistic alternative
but to do so.
Auditor’s responsibilities
Our objectives are to obtain reasonable assurance
about whether the Syndicate Annual Report and
Accounts as a whole are free from material
misstatement, whether due to fraud or error, and to
issue our opinion in an auditor’s report. Reasonable
assurance is a high level of assurance, but does not
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 aggregate, they could reasonably
be expected to influence the economic decisions of
users taken on the basis of the Syndicate Annual
Report and Accounts.
A fuller description of our responsibilities is provided
on the FRC’s website at www.frc.org.uk/
auditorsresponsibilities.
The Directors of the Managing Agent are required,
under the Syndicate Accounts Instructions, to include
these financial statements within a document to
which XBRL tagging has been applied. This auditor’s
report provides no assurance over whether the
XBRL tagged document has been prepared in
accordance with those requirements.
The purpose of our audit work and
to whom we owe our responsibilities
This report is made solely to the Syndicate’s
members, as a body, in accordance with the
Insurance Accounts Directive (Lloyd’s Syndicate and
Aggregate Accounts) Regulations 2008 and the
terms of our engagement letter by the Managing
Agent. Our audit work has been undertaken so that
we might state to the Syndicate’s members those
matters we are required to state to them in an
auditor’s report and the further matters we are
required to state to them in accordance with the
terms agreed with the Managing Agent and for no
other purpose. To the fullest extent permitted by law,
we do not accept or assume responsibility to anyone
other than the Syndicate and the Syndicate’s
members, as a body, for our audit work, for this
report, or for the opinions we have formed.
William Greenfield (Senior Statutory Auditor) for
and on behalf of KPMG LLP, Statutory Auditor
Chartered Accountants
15 Canada Square,
London, E14 5GL
18 February 2026
Independent auditor’s report
to the members of Syndicate 2001 (continued)
19
The MS Amlin Peace of Mind Garden
at the RHS Chelsea Flower Show
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20252020
Statement of profit or loss and other comprehensive
income for the year ended 31 December 2025
| 2025 | 2024 | ||
| Technical account – general business | Note | £’000 | £’000 |
| Gross written premiums | 4 | | |
| Outward reinsurance premiums | ( | ( | |
| Net written premiums | | ||
| Change in the provision for unearned premiums | 11(c) | ||
| Gross amount | ( | | |
| Reinsurers’ share | | | |
| Change in the net provision for unearned premiums | ( | | |
| Earned premiums, net of reinsurance | | ||
| Allocated investment return transferred from the non-technical account | 8 | | |
| Claims paid | 11(a) | ||
| Gross amount | ( | ( | |
| Reinsurers’ share | | ||
| Net claims paid | ( | ( | |
| Change in the provision for claims | 11(a) | ||
| Gross amount | ( | ( | |
| Reinsurers’ share | ( | ( | |
| Change in the net provision for claims | ( | ( | |
| Claims incurred, net of reinsurance | ( | ( | |
| Net operating expenses | 5 | ( | ( |
| Balance on the technical account for general business – transferred to non-technical account | |
| 2025 | 2024 | ||
| Non-technical account – general business | Note | £’000 | £’000 |
| Balance on the general business technical account | |||
8 | |||
| Investment income | 8 | | |
| Realised gains on investments | 8 | | |
| Unrealised gains / (losses) on investments | 8 | | ( |
| Investment expenses and charges | ( | ( | |
| Investment return | | ||
| Allocated investment return transferred to technical account | ( | ( | |
| Foreign exchange gains/ (losses) | ( | ||
| Profit for the financial year |
| 2025 | 2024 | ||
| Other comprehensive income | Note | £’000 | £’000 |
Items that may be reclassified subsequently to profit or loss | |||
| Currency translation gains/(losses) | ( | | |
| Total comprehensive income |
All operations of the Syndicate relate to continuing operations.
The accompanying notes and information on pages 24 to 55 form part of these financial statements.
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2025 2121
21
Directors and administration CEO Foreword Directors’ report Directors’ responsibilities Independent auditor’s report Financial statements
Statement of financial position
at 31 December 2025
| 2025 | 2024 | ||
| Note | £’000 | £’000 | |
| Financial investments | 10(b) | ||
| Deposits with ceding undertakings | | ||
| Investments | |||
| Provision for unearned premiums | 11(c) | | |
| Claims outstanding | 11(a) | | |
| Reinsurers’ share of technical provisions | | ||
| Debtors arising out of direct insurance operations | 11(e) | | |
| Debtors arising out of reinsurance operations | 11(e) | | |
| Other debtors | 10(c) | | |
| Debtors | | | |
| Cash at bank and in hand | 10(a) | | |
| Other | | ||
| Other assets | | ||
- | |||
| Deferred acquisition costs | 11(d) | | |
| Other prepayments and accrued income | | | |
| Prepayments and accrued income | | | |
| Total assets | | | |
| Members’ balance | | ||
| Total capital and reserves | | ||
| Provision for unearned premiums | 11(c) | | |
| Claims outstanding | 11(a) | | |
| Technical provisions | | | |
| Creditors arising out of direct insurance operations | 11(e) | | |
| Creditors arising out of reinsurance operations | 11(e) | | |
| Other creditors | 10(d) | | |
| Creditors | | ||
| Accruals and deferred income | | ||
| Total liabilities | | ||
| Total liabilities, capital and reserves | |
The accompanying notes and information on pages 24 to 55 form part of these financial statements.
The financial statements on pages 20 to 23 were approved by the Board of Directors of MS Amlin Underwriting Limited and
were signed on its behalf by
J Burrows
Chief Financial Officer
18 February 2026
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20252222
Statement of cash flows
for the year ended 31 December 2025
2025 | Restated 2024 | ||
| Note | £’000 | £’000 | |
Cash flows from operating activities | |||
| Profit for the financial year | | ||
| Increase in gross technical provisions | | | |
| Decrease in reinsurers’ share technical provisions | | | |
| (Increase) in debtors | ( | ( | |
| Increase in creditors | | | |
| (Decrease)/increase in other assets/liabilities | ( | | |
| Investment return | ( | ( | |
| Foreign exchange (gains)/ losses | ( | | |
| Net cash inflow from operating activities | | | |
Cash flows from investing activities | |||
| Purchase of equity and debt instruments | ( | ( | |
| Sale of equity and debt instruments | | | |
| Purchase of derivatives | ( | ( | |
| Sale of derivatives | | | |
| Investment income received | | | |
| Other | ( | ( | |
| Net cash outflow from investing activities | ( | ( | |
Cash flows from financing activities | |||
| Distribution of profit | ( | ( | |
| Funds in Syndicate retained/ (released) | ( | ||
| Net cash inflow / (outflow) from financing activities | ( | ||
| Net increase (decrease) in cash and cash equivalents | | ( | |
| Cash and cash equivalents at the beginning of the year | | | |
| Effect of exchange rate on cash and cash equivalents | ( | ( | |
| Cash and cash equivalents at the end of the year | 10(a) | | |
The accompanying notes and information on pages 24 to 55 form part of these financial statements.
The classification of cash flows relating to investing activities has been restated for 2024 to reallocate between investment
income, purchases and sales of equity and debt instruments. More details are shown in Note 18.
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2025 2323
23
Directors and administration CEO Foreword Directors’ report Directors’ responsibilities Independent auditor’s report Financial statements
Statement of changes in member’s balance
for the year ended 31 December 2025
| 2025 | 2024 | |
| £’000 | £’000 | |
| Member’s balance brought forward at 1 January | ||
| Total comprehensive income for the year | ||
| Payments of profit to member’s personal reserve funds | ( | ( |
| Net movement on Funds in Syndicate | ( | |
| Member’s balance carried forward at 31 December |
Members participate in Syndicates by reference to years of account. Assets and liabilities are assessed with reference to policies
incepting in that year of account in respect of their membership of a particular year.
The accompanying notes and information on pages 24 to 55 form part of these financial statements.
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20252424
Notes to the financial statements
for the year ended 31 December 2025
1. Basis of preparation
Syndicate 2001 (the ‘Syndicate’) comprises of one member of the Society of Lloyd’s that underwrites insurance business in
the London Market. The address of the Syndicate’s managing agent is the Leadenhall Building, 122 Leadenhall Street,
London EC3V 4AG.
The financial statements have been prepared using the annual basis of accounting in accordance with the Insurance
Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 and applicable Accounting Standards in
the United Kingdom and the Republic of Ireland, including Financial Reporting Standard 102 (‘FRS 102’). FRS 102 requires
the application of Financial Reporting Standard 103 (‘FRS 103’) in relation to insurance contracts and the Lloyd’s Syndicate
Accounts Instructions Version 3.1, as modified by the Syndicate Accounts Frequently Asked Questions Version 1.1 dated 13
February 2026, as issued by the Council of Lloyd’s. These requirements have been consistently applied to all years presented.
The financial statements have been prepared on the historical cost basis, except for financial assets at fair value through
profit or loss that are measured at fair value.
Except otherwise stated, all figures in these financial statements are presented in thousands of British pounds sterling
(sterling) shown as £k rounded to the nearest £1,000. Narratives remain presented in millions.
Going concern
The Syndicate has financial resources to meet its financial needs and manages a mature portfolio of insurance risk through
an experienced team. The directors of the managing agent believe that the Syndicate is well positioned to manage its
business risks successfully in the current economic environment. The directors of the managing agent have continued to
review the business plans, liquidity and operational resilience of the Syndicate.
The 2026 year of account of Syndicate 2001 has opened and the directors of the managing agent 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 also surplus capital available in the
Corporate Member. There is, therefore 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.
Adoption of new and revised standards
(a) Amendments to published standards that came into effect from 1 January 2025 but do not have a material effect on the
Syndicate’s financial statements are:
• FRS 102 – Section 7 Statement of cash flows - Supplier finance arrangements.
There were no new standards effective from 1 January 2025.
2. Critical accounting judgements and key sources of estimation uncertainty
The preparation of financial statements in conformity with FRS 102 and FRS 103 requires the use of certain critical
accounting estimates. It also requires the directors of the managing agent to exercise its judgement in the process of
applying the Syndicate’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where
assumptions and estimates are significant to the financial statements are disclosed below. The preparation of financial
statements requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, and the
disclosure of contingent assets and liabilities. Although these estimates are based on managing agent’s best knowledge of
current events and actions, actual results may ultimately differ from those estimates.
2.1 Estimation of technical provisions for claims outstanding
The most significant estimate made in the financial statements relates to unpaid claims reserves. The methods, assumptions
and estimates used by the Syndicate to estimate are described in note 11(i).
Unpaid claims reserves are estimated on an undiscounted basis. Provisions are subject to a detailed quarterly review where
forecast unpaid claims reserves and existing amounts provided are reviewed and reassessed. Any changes to the amounts
held are adjusted through the Statement of profit or loss.
Unpaid claims reserves are also subjected to insurance risk and analysis on the sensitivities and further details are in note 11
(f).
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2025 2525
25
Directors and administration CEO Foreword Directors’ report Directors’ responsibilities Independent auditor’s report Financial statements
Notes to the financial statements
for the year ended 31 December 2025
3. Significant accounting policies
The principal accounting policies are summarised below. They have been applied consistently throughout the current and
prior years in relation to items that are considered material in relation to the Syndicate’s financial statements.
Product classification
Insurance contracts are defined as those containing significant insurance risk if, and only if, an insured event could cause an
insurer to make significant additional payments in any scenario, excluding scenarios that lack commercial substance, at the
inception of the contract.
Contracts entered into by the Syndicate with reinsurers under which the Syndicate is compensated for losses on contracts
issued by the Syndicate and that meet the classification requirements for insurance contracts are classified as reinsurance
contracts held. Insurance contracts underwritten by the Syndicate under which the contract holder is another insurer
(inwards reinsurance) are included within insurance contracts. Based on the current assessment, all of the products
underwritten by the Syndicate are insurance contracts within the scope of FRS 103.
Gross written premiums
Gross written premiums comprise premium on insurance contracts incepting during the financial year together with
adjustments to premium written in prior periods.
Gross written premiums reflect direct and inwards reinsurance business written during the period, gross of commission
payable to intermediaries, and exclude any taxes or duties based on premiums. The proportion of gross written premium,
gross of commission payable, attributable to periods after the reporting date is deferred as a provision for unearned
premium. The change in this provision is taken to the statement of profit or loss in order that earned premium is recognised
over the period of the risk.
Premium is recognised as earned over the policy contract period. The earned element is calculated separately for each
contract on a basis where the premium is apportioned over the period of risk.
Acquisition costs
Acquisition costs comprise brokerage incurred on insurance contracts written during the financial year. They are deferred on
inception to be expensed on the same basis as the earned proportions of the premiums they relate to. Acquisition costs also
include profit commissions.
Outward reinsurance premiums
Outward reinsurance premiums comprise premiums on reinsurance arrangements bought which incept during the financial
year, together with adjustments to premium ceded in prior periods. Premiums on reinsurance assumed are recognised in the
technical account along the same basis as direct business, taking into account the product classification. The proportion of
outward reinsurance premiums attributable to periods after the reporting date is deferred as reinsurers’ share of unearned
premium. Outward reinsurance premiums is earned over the policy contract period in accordance with the terms of the
reinsurance contract.
Claims outstanding
Claims paid are defined as those claims transactions settled up to the balance sheet date including the internal and
external claims settlement expenses allocated to those transactions.
Claims reserves are estimated on an undiscounted basis. Unpaid insurance claims reserves are subject to a detailed
quarterly review where forecast unpaid claims reserves and existing amounts provided are reviewed and reassessed.
Unpaid insurance claims reserves are determined by the directors of the managing agent based on experience of claims
settled and on statistical models which require certain assumptions to be made regarding incidence, timing and number of
claims, and any specific factors such as adverse weather conditions. Also included in the estimation of unpaid claims
reserves are factors such as the potential for judicial or legislative inflation. Any changes to the amounts held are adjusted
through the statement of profit or loss. Unpaid claims reserves are established above an actuarial best estimate as an
additional degree of caution. Internal costs incurred to manage and settle claims (unallocated loss adjustment expenses)
are apportioned to incurred claims.
The unpaid claims reserves also include, if necessary, a reserve for unexpired risks where, at the reporting date, the
estimated costs of future claims and related deferred acquisition costs are expected to exceed the unearned premiums
provision across all years of account (“YOA”).
Some insurance contracts permit the Syndicate to sell (usually damaged) property acquired in settling a claim (for example,
salvage). The Syndicate may also have the right to pursue third parties for payment of some or all costs (for example,
subrogation). Estimates of salvage recoveries and subrogation reimbursements are included as allowances in the
measurement of the technical provisions for unpaid claims, and recognised in insurance and reinsurance receivables when
the liability is settled.
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20252626
Notes to the financial statements
for the year ended 31 December 2025
3. Significant accounting policies
(continued)
Reinsurance recoveries
The Syndicate has reinsurance treaties and other reinsurance contracts that transfer significant insurance risk. The benefits
to which the Syndicate is entitled under its reinsurance contracts held are recognised as reinsurers’ share of claims
outstanding.
These assets consist of short-term balances due from reinsurers, as well as longer-term receivables that are dependent on
the expected claims and benefits arising under the related reinsured insurance contracts. Amounts recoverable from or due
to reinsurers are measured consistently with the amounts associated with the reinsured technical provisions for claims
outstanding and in accordance with the terms of each reinsurance contract.
Where there is objective evidence that a reinsurance asset is impaired, the Syndicate reduces the carrying amount of the
reinsurance asset to its recoverable amount and recognises that impairment loss in the statement of profit or loss.
Financial assets and liabilities
The accounting classification of financial assets and liabilities determines the way in which they are measured and changes
in those values are presented in the statement of profit or loss and other comprehensive income. Financial assets and
liabilities are classified on their initial recognition. The initial classification of a financial instrument shall take into account
contractual terms including those relating to future variations.
Once the classification of a financial instrument is determined at initial recognition, re-assessment is only required
subsequently when there has been a modification of contractual terms that is relevant to an assessment of the classification.
The Syndicate’s financial assets are classified at fair value through profit and loss (‘FVPL’). This classification requires all fair
value changes to be recognised immediately within the investment return line in the Statement of profit or loss. The
Syndicate has availed itself of the option in FRS 102 to apply the recognition and measurement provisions of IAS 39
Financial Instruments: Recognition and Measurement to its financial assets and financial liabilities.
Assets at FVPL comprise financial assets and financial liabilities held for trading and those designated as such on initial
recognition. Within the FVPL category, holdings in collective investment schemes, fixed income securities, equity securities,
property funds and certain derivatives are classified as ‘trading’ as the Syndicate buys with the intention to resell. All other
assets at FVPL are designated as such on initial recognition as they are managed, and their performance is evaluated, on a
FVPL basis.
Financial instruments are recognised when the Syndicate becomes a party to the contractual provisions of the instrument.
Financial assets are derecognised if the Syndicate’s contractual rights to the cash flows from the financial assets expire or if
the Syndicate transfers the financial asset to another party without retaining control of substantially all risks and rewards of
the asset. A financial liability is derecognised when its contractual obligations are discharged, cancelled or expired.
Purchases and sales of investments are recognised on the trade date, which is the date the Syndicate commits to purchase
or sell the assets. These are initially recognised at fair value and are subsequently re-measured at fair value based on
quoted bid prices. Transaction costs are recognised directly in the Statement of profit or loss when incurred. Changes in the
fair value of investments are included in the Statement of profit or loss in the year in which they arise. The uncertainty
around valuation is discussed further in note 10(e).
Financial assets and financial liabilities are offset, and the net amount presented in the balance sheet when, and only when,
the Syndicate currently has a legal right to set off the amounts and intends either to settle on a net basis or to realise the
asset and settle the liability simultaneously.
Derivative financial instruments
Derivative financial instruments primarily include currency swaps, currency and interest rate futures, currency options and
other financial instruments that derive their value mainly from underlying interest rates or foreign exchange rates.
Derivatives are initially recognised at fair value on the date on which a derivative contract is entered into and subsequently
remeasured to their fair value at the end of each reporting period. Derivative fair values are determined from quoted prices in
active markets where available or, where these are not available, by using valuation techniques such as discounted cash
flow models or option pricing models. Gains and losses arising from changes in the fair value of derivative instruments are
recognised as they arise in the statement of profit or loss.
Investment return
The investment return comprises investment income, investment gains and losses, investment expenses and charges.
Realised gains or losses are calculated as the difference between the net sales proceeds and their purchase price in the
financial year or their valuation at the commencement of the year. Unrealised gains and losses are calculated as the
difference between the valuation of investments at the balance sheet date and their purchase price in the financial year and
their valuation at the commencement of the year.
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2025 2727
27
Directors and administration CEO Foreword Directors’ report Directors’ responsibilities Independent auditor’s report Financial statements
Notes to the financial statements
for the year ended 31 December 2025
Investment return
(continued)
All of the investment return arising in the year is reported initially in the non-technical account. A transfer is then made from
the non-technical account to the technical account to reallocate investment return relating to underwriting business.
Tax
No provision has been made in respect of UK income tax on trading income. It is the responsibility of the Corporate Member to
settle tax liabilities arising from Syndicate operations. Overseas taxation comprises US Federal Income tax, Canadian Federal
Income tax, Singaporean Corporate Income tax and UAE Federal tax. The amounts charged to the member in the USA,
Canada and Singapore are collected centrally through Lloyd’s Members’ Services Unit as part of the member’s distribution
process, whereas amounts due to the UAE Federal tax authority are processed internally. The ultimate tax liability is the
responsibility of the Corporate Member.
Foreign currencies
The financial statements are presented in pounds sterling (GBP), however from 1 January 2024, the Syndicate’s functional
currency changed to US dollars (USD).
Transactions in foreign currencies are translated into US dollars at the foreign exchange rates prevailing at the dates of the
transactions. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at
the rates of exchange as at the balance sheet date (underwriting-related balances, such as Reinsurers’ share of technical
provisions and Technical provisions, are considered to be monetary balances). Exchange differences are recognised within
the ‘non-technical account’.
The presentational currency of the Syndicate is pounds sterling therefore the results and financial position are translated from
US dollars into pounds sterling in the Syndicate’s financial statements, in line with Group policy, as follows:
• assets and liabilities for the balance sheet presented are translated at the closing exchange rate at the date of the balance
sheet;
• income and expenses for the profit and loss account are translated at the exchange rates prevailing at the date of each
transaction, or a practical approximation to these rates;
• translation differences resulted from the above are taken to the Member’s balance and included in other comprehensive
income.
Other creditors
Other creditors are initially recognised at fair value and subsequently measured at amortised cost. They represent liabilities to
pay for goods or services that have been received or supplied in the normal course of business, invoiced by the supplier before
the year end, but for which payment has not yet been made.
Insurance debtors and creditors
Insurance debtors and creditors are primarily non-derivative financial assets and liabilities with fixed or determinable
payments and not quoted on an active market. These include amounts due to and from agents, brokers and insurance
contract holders.
Debtors are initially recognised when due at transaction price, and where applicable are subsequently measured at
amortised cost. The recoverability of these assets is assessed at each balance date and appropriate provision made to
ensure that the balances properly reflect the amounts that will ultimately be received, taking into account counterparty credit
risk and the contractual terms of the contract.
Where a receivable is impaired, the Syndicate reduces the carrying amount of the insurance receivable accordingly and
recognises the impairment loss in the statement of profit or loss. Creditors are initially recognised at transaction price, and
where applicable are subsequently measured at amortised cost.
Cash at bank and in hand
Cash at bank and in hand include cash in hand, unrestricted balances held with banks, and other highly liquid financial assets
with original maturities of less than three months, which are subject to insignificant credit risk, and are used by the Syndicate
for the management of its short-term commitments.
Cash at bank and in hand are measured at face value in the statement of financial position.
Amounts owed to credit institutions, are measured at amortised cost and repayable on demand.
3. Significant accounting policies
(continued)
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20252828
Notes to the financial statements
for the year ended 31 December 2025
4. Analysis of underwriting result
An analysis of the underwriting result before investment return is presented in the table below:
2025 | Gross written premiums £’000 | Gross earned premiums £’000 | Gross claims incurred £’000 | Net operating expenses £’000 | Reinsurance balance £’000 | Underwriting result £’000 |
Direct insurance | ||||||
| Accident and health | | | ( | ( | ( | |
| Motor (third party liability) | | | | ( | ( | ( |
| Motor (other classes) | | | ( | ( | ( | ( |
| Marine, aviation and transport | | | ( | ( | | ( |
| Fire and other damage to property | | | ( | ( | ( | |
| Third party liability | | | ( | ( | | |
| Miscellaneous | | | ( | ( | ( | ( |
| Total direct insurance | ( | ( | ( | | ||
| Reinsurance acceptances | | ( | ( | ( | | |
| Total | ( | ( | ( | |
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 written premiums £’000 | Gross earned premiums £’000 | Gross claims incurred £’000 | Net operating expenses £’000 | Reinsurance balance £’000 | Underwriting result £’000 |
Additional analysis | ||||||
Fire and damage to property includes: | ||||||
| - Specialities | | ( | ( | ( | | |
| - Energy | | ( | ( | ( | | |
Third party liability includes: | ||||||
| - Energy | | ( | ( | ( | |
2024 | Gross written premiums £’000 | Gross earned premiums £’000 | Gross claims incurred £’000 | Net operating expenses £’000 | Reinsurance balance £’000 | Underwriting result £’000 |
Direct insurance | ||||||
| Accident and health | | ( | ( | | | |
| Motor (third party liability) | | ( | ( | | | |
| Motor (other classes) | | ( | ( | | | |
| Marine, aviation and transport | | ( | ( | | | |
| Fire and other damage to property | | | ( | ( | | |
| Third party liability | | ( | ( | | | |
| Miscellaneous | | ( | ( | | | |
| Total direct insurance | | ( | ( | | | |
| Reinsurance acceptances | | ( | ( | ( | | |
| Total | ( | ( | ( | |
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2025 2929
29
Directors and administration CEO Foreword Directors’ report Directors’ responsibilities Independent auditor’s report Financial statements
Notes to the financial statements
for the year ended 31 December 2025
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:
2024 | Gross written premiums £’000 | Gross earned premiums £’000 | Gross claims incurred £’000 | Net operating expenses £’000 | Reinsurance balance £’000 | Underwriting result £’000 |
Additional analysis | ||||||
Fire and damage to property includes: | ||||||
| - Specialities | | | ( | ( | ( | |
| - Energy | | | ( | ( | | |
Third party liability includes: | ||||||
| - Energy | | | ( | ( | ( | |
All premiums are concluded in the UK. The reinsurance balance is gross of commission and profit participation earned by the
Syndicate as detailed in note 5. The analysis included in the tables within note 4 above is as per Lloyd’s requirements and is
different to how the Syndicate is managed by the managing agent.
A net charge of £103.9 million was recognised in profit or loss during the year on buying reinsurance (2024: charge of
£68.5 million).
The gross premiums written for direct insurance by location (where the contracts were concluded) is presented in the table
below:
| 2025 £’000 | 2024 £’000 | |
| United Kingdom | | |
| European Union Member States | | |
| US | | |
| Rest of the world | | |
| Total | |
4. Analysis of underwriting result
(continued)
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20253030
Notes to the financial statements
for the year ended 31 December 2025
5. Net operating expenses
Note | 2025 £’000 | 2024 £’000 | |
| Acquisition costs | |||
| Change in deferred acquisition costs | 11(d) | ( | |
| Administrative expenses | |||
| Members’ standard personal expenses | | ||
| Reinsurance commission and profit participation | ( | ( | |
| Net operating expenses |
Total commissions for direct insurance business for the year are shown in the table below:
| 2025 £’000 | 2024 £’000 | |
| Total commission for direct insurance business | |
Administrative expenses include:
Auditors’ remuneration | 2025 £’000 | 2024 £’000 |
| – fees payable to the Syndicate’s auditor for the audit of these financial statements | ||
| – fees payable to the Syndicate’s auditor and its associates in respect of other services pursuant to legislation | | |
For the audit of MS Amlin Underwriting Limited’s financial statements, the auditor’s remuneration was £55k (2024: £53k).
6. Staff numbers and costs
All staff are employed by MS Amlin Corporate Services Limited (‘MS ACS’). The following amounts were recharged to the
Syndicate in respect of salary costs:
| 2025 £’000 | 2024 £’000 | |
| Wages and salaries | | |
| Social security costs | | |
| Other pension costs | | |
| Total | | |
Pension costs reflect contributions paid to the MS Amlin defined contribution scheme.
The average number of persons employed by MS ACS but working for the Syndicate during the year, analysed by category,
was as follows:
| 2025 | 2024 | |
| Administration and finance | | |
| Underwriting | | |
| Claims | | |
| Investments | | |
| Total | | |
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2025 3131
31
Directors and administration CEO Foreword Directors’ report Directors’ responsibilities Independent auditor’s report Financial statements
Notes to the financial statements
for the year ended 31 December 2025
7. Directors’ emoluments
Certain directors of the managing agent are also directors or employees of other companies within the MSI Group. As such a
proportion of the total emoluments have been allocated to the Syndicate. However, this is not necessarily a reflection of the
amount, if any, charged to the Syndicate by the company employing the director. Only amounts in respect of qualifying
services are disclosed in the table below:
2025 | Restated 2024 | |
| £’000 | £’000 | |
| Directors’ emoluments | | |
Payments were made to two directors of the managing agent (2024: three) in respect of defined contribution pension
schemes. No payments were made in respect of defined benefit pension schemes in the current or prior year. During the
year, four directors of the managing agent were members of long-term incentive schemes (2024: six).
The total above includes payment of deferred awards due to former directors of the managing agent.
The 2024 comparative of £5.4 million has been restated from £4.3 million to include two directors not previously included.
The active underwriter (2024: one) during the year received the following proportionate remuneration charged as a
Syndicate expense for the period they were appointed:
| 2025 | 2024 | |
| £’000 | £’000 | |
| Emoluments | | |
8. Investment return
| 2025 £’000 | 2024 £’000 | |
Interest and similar income From financial assets designated at fair value through profit or loss | ||
| Interest income | | |
| Dividend income | | |
| Interest on cash at bank | | |
Other income from investments | ||
From financial assets designated at fair value through profit or loss | ||
| Gains on the realisation of investments | | |
| Losses on the realisation of investments | ( | ( |
| Unrealised gains on investments | | |
| Unrealised losses on investments | ( | ( |
| Investment management expenses | ( | ( |
| Total investment return | | |
| Transferred to the technical account from the non-technical account | | |
| Investment return on Funds in Syndicate | | |
The above figures include investment profit of £15.5 million (2024: profit of £2.3 million) on cash, bonds and property
investments deposited by the Corporate Member into the Funds in Syndicate balance.
An investment return of £58.0 million (2024: £38.5 million) was allocated to the technical account from the non-technical
accounts. This is made up of the Syndicate’s underwriting assets. Investment return on the Syndicate’s capital assets
remains in the non-technical account.
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20253232
Notes to the financial statements
for the year ended 31 December 2025
9. Foreign exchange risk
a) Revaluation
The Syndicate’s functional currency is US dollars. The Syndicate holds asset and liability balances in major base currencies of
pounds sterling, euro, US dollar and Canadian dollar and additional currencies of Japanese yen and Australian dollar. The
Syndicate aims as far as possible to match the value of the assets held in these currencies with the equivalent liabilities to
minimise foreign exchange exposure.
Foreign exchange exposure arises when business is written in non-functional currencies. These transactions are translated
into the functional currency US dollars, at the prevailing spot rate once the premiums are received. Consequently, there is
exposure to currency movements between the exposure being written and the premiums being received. Payments in
non-base currencies are converted back into the underlying currency at the time a claim is to be settled or an expense is to be
paid; therefore, the Syndicate is exposed to exchange rate risk between the claim or expense being made and its subsequent
settlement.
The average and closing rates of exchange used by the Syndicate to revalue in pounds sterling and its functional currency US
dollars are shown below:
| GBP | 2025 | 2024 | ||||
Currency | Start of period rate | End of period rate | Average rate | Start of period rate | End of period rate | Average rate |
| AUD | | | | | | |
| CAD | | | | | | |
| EUR | | | | | | |
| GBP | | | | | | |
| JPY | | | | |||
| USD | | | | | | |
USD 2025 2024
Currency
Start of
period rate
End of period
rate
Average
rate
Start of
period rate
End of period
rate
Average
rate
AUD 1.61 1.49 1.55 1.47 1.61 1.58
CAD 1.43 1.37 1.40 1.32 1.43 1.42
EUR 0.96 0.85 0.89 0.91 0.96 0.95
GBP 0.80 0.74 0.76 0.79 0.80 0.79
JPY 156.42 156.46 149.55 141.04 156.42 153.73
USD 1.00 1.00 1.00 1.00 1.00 1.00
The Syndicate will also occasionally transact currencies on a forward basis particularly in relation to asset liability
management actions. All forward contracts are carried out with investment grade banks, to limit the counterparty credit risk.
The investment managers also hold forward foreign exchange contracts in their portfolios at the year-end in order to hedge
non-base currency investments. All forward contracts are marked to market in their valuations.
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2025 3333
33
Directors and administration CEO Foreword Directors’ report Directors’ responsibilities Independent auditor’s report Financial statements
Notes to the financial statements
for the year ended 31 December 2025
9. Foreign exchange risk
(continued)
b) Currency balance sheet
The table below presents the Syndicate’s assets and liabilities by major base currency. The amounts are converted to pounds
sterling from the functional currency using the exchange rates as disclosed in the table above. The financial investments are
presented on a look through basis to the underlying currency and include overseas deposits.
| GBP | USD | EUR | CAD | AUD | JPY | Other | Total | |
| 2025 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 |
| Investments | | | | | | | | |
Reinsurers’ share of technical provisions | | | | | | | | |
| Debtors | | | | | | ( | | |
| Other assets | | | | | | | | |
| Prepayments and accrued income | | | | | | | | |
| Total assets | | | | | | | | |
| Technical provisions | ( | ( | ( | ( | ( | ( | ( | ( |
| Creditors | ( | ( | ( | ( | ( | | ( | ( |
| Accruals and deferred income | ( | | | | ( | | | ( |
| Total liabilities | ( | ( | ( | ( | ( | ( | ( | ( |
| Total capital and reserves | ( | ( | ( | ( | | | | ( |
| GBP | USD | EUR | CAD | AUD | JPY | Other | Total | |
| 2024 (Restated) | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 |
| Investments | | | | | | | | |
Reinsurers’ share of technical provisions | | | | | | | | |
| Debtors | | | | | ( | | | |
| Other assets | | | | | | | | |
| Prepayments and accrued income | | | | | | | | |
| Total assets | | | | | | | | |
| Technical provisions | ( | ( | ( | ( | ( | ( | ( | ( |
| Creditors | ( | ( | ( | ( | ( | | ( | ( |
| Accruals and deferred income | ( | ( | | | ( | | | ( |
| Total liabilities | ( | ( | ( | ( | ( | ( | ( | ( |
| Total capital and reserves | ( | ( | ( | | | | ( |
Deferred acquisition costs of £190 million were previously included in the other assets line in the table above, which has been
amended to include deferred acquisition costs in the prepayments and accrued income line. There has been no change to the
split by currency of the deferred acquisition costs.
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20253434
Notes to the financial statements
for the year ended 31 December 2025
10. Financial assets and liabilities
a) Cash and cash equivalents
| 2025 | 2024 | |
| £’000 | £’000 | |
| Cash at bank and in hand | ||
| Total cash and cash equivalents | |
Analysis of movement
At 1 January 2025 £’000 | Cash flows £’000 | Fair value and exchange movements £’000 | At 31 December 2025 £’000 | |
Cash and cash equivalents | | | ( | |
Derivative financial liabilities | ( | | | ( |
Total | | | | |
b) Financial investments
| Carrying value | At Cost | |||
| 2025 | 2024 | 2025 | 2024 | |
| £’000 | £’000 | £’000 | £’000 | |
| Shares, other variable yield securities and units in unit trusts | | | | |
| Debt securities and other fixed income securities | | | | |
| Participation in investment pools | | | | |
| Loans and deposits with credit institutions | | | | |
| Derivative assets | | | | |
| Other investments | | | | |
| Total financial investments | |
Shares, other variable yield securities and units in unit trusts includes minority shareholdings held by the Syndicate, unlisted
companies, loans made to the Lloyd’s Central Fund (fully repaid during the year) and investment in alternative asset classes.
The classification of the loans is as per Lloyd’s guidance.
Included in the carrying values above, the amount ascribable to listed investments is as follow:
2025 £’000 | 2024 £’000 | |
| Listed investments | |
The table below presents an analysis of financial investments by their measurement classification.
| 2025 | 2024 | |
| £’000 | £’000 | |
| Financial assets measured at fair value through profit or loss | | |
| Total financial investments |
Underwriting liabilities are matched by bonds, investment pools and cash. Derivatives are used to mitigate risks from currency
and duration fluctuations. Other more volatile assets, including equities, represent capital.
As the Syndicate is fully aligned, the Syndicate partially holds the capital supporting underwriting in Syndicate premium trust
funds. These funds are known as Funds in Syndicate (‘FIS’). At 31 December 2025, the following amount was held as Funds
in Syndicate:
| 2025 | 2024 | |
| £’000 | £’000 | |
| Funds in Syndicate (FIS) | |
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2025 3535
35
Directors and administration CEO Foreword Directors’ report Directors’ responsibilities Independent auditor’s report Financial statements
Notes to the financial statements
for the year ended 31 December 2025
10. Financial assets and liabilities
(continued)
b) Financial investments
(continued)
| The table below analyses the derivative assets and liabilities by type: | 2025 | Restated 2024 | ||
Notional amount £’000 | Fair value £’000 | Notional amount £’000 | Fair value £’000 | |
| Foreign exchange forward contracts | | ( | | |
| Interest rate future contracts | | ( | | ( |
| Total | | ( | | |
The reporting of notional amounts for foreign exchange forward contracts in the table above has been adjusted to reflect one
leg of the underlying contract, whereas previously reported figures reflected the net of both legs. As a result, the notional
amount for the 2024 comparative for foreign exchange forward contracts has been restated to £226.9 million from £16.6
million.
c) Other debtors
| 2025 | 2024 | |
| £’000 | £’000 | |
Other related party balances (non-Syndicate) | ||
Other | ||
Total |
Included in other related party balances (non-Syndicate) in the current and prior year is a loan to MS ACS. This loan of £42.3
million (2024: £56.3 million) is to fund change projects MS ACS is managing on behalf of the Syndicate. The loan is on a
recurring 1-year term, repayable after a 12-month notice period and does not charge interest. £15.7 million (2024: £22.3
million) of the loan is expected to be repaid within 12 months, with the remainder beyond 12 months.
All other debtor amounts owed are unsecured, have no fixed date of repayment, are payable on demand, are non-interest
bearing and are recoverable within 12 months.
d) Other creditors
| 2025 | 2024 | |
| £’000 | £’000 | |
| Other related party balances (non-Syndicate) | | |
| Derivative liabilities | | |
| Other liabilities | ||
Total |
Other related party balances (non-Syndicate) are unsecured, have no fixed date of repayment, are payable on demand and
are non-interest bearing. Other creditors are all current, both in the current and prior years.
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20253636
Notes to the financial statements
for the year ended 31 December 2025
10. Financial assets and liabilities
(continued)
e) Fair value hierarchy
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.
Shares and other variable yield securities and units in unit trusts
Minority shareholdings held by the Syndicate in unlisted companies are classified as Level 3.
Variable yield securities are represented by loans to the Lloyd’s Central Fund (repaid during the year) and were classified as
Level 3.
Units in unit trusts represent investments in open-ended investment unit trusts. The fair value of the investment in unlisted
open-ended investments is determined using an unadjusted net asset value, which results in a Level 2 valuation. The
unadjusted net asset value is used as the units are redeemable at the reportable net asset value at the measurement date.
Debt and other fixed income securities
The fair value is based upon quotes from pricing services where available. These pricing services derive prices based on an
average of quotes provided by brokers. Where multiple quotes are not available, the fair value is based upon evaluated
pricing services, which typically use proprietary cash flow models and incorporate observable market inputs, such as credit
spreads, benchmark quotes and other trade data. If such services do not provide coverage of the asset, then fair value is
determined manually using indicative broker quotes, which are corroborated by recent market transactions in similar or
identical assets.
Where there is an active market for these assets and their fair value is the unadjusted quoted market price, these are
classified as Level 1. This is typically the case for government bonds. Level 1 also includes bond funds, where fair value is
based upon quoted prices. Where the market is inactive or the price is adjusted, but significant market observable inputs
have been used by the pricing sources, then these are considered to be Level 2. This is typically the case for government
agency debt, corporate debt, mortgage and asset-backed securities and catastrophe bonds.
Participation in investment pools
These are units held in money market funds and the value is based upon unadjusted, quoted and executable prices provided
by the fund manager and classified as Level 1.
Investments are also held in alternative asset classes (property and private equity funds as well as a global credit hedge
fund). Level 3 investments in alternative asset classes are valued using net asset statements provided by independent third
parties.
Derivatives
Listed derivative contracts, such as futures, that are actively traded are valued using quoted prices from the relevant
exchange and are classified as Level 1. Over the counter currency forwards are valued by the counterparty using
quantitative models with multiple market inputs such as foreign exchange rate volatility. The market inputs are observable,
and the valuation can be validated through external sources. These are classified as Level 2.
Other investments
Other investments represent overseas deposits held through Lloyd’s. Overseas deposits are lodged as a condition of
conducting underwriting business in certain countries and for local regulatory requirements. They are classified as Level 1
and Level 2.
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2025 3737
37
Directors and administration CEO Foreword Directors’ report Directors’ responsibilities Independent auditor’s report Financial statements
Notes to the financial statements
for the year ended 31 December 2025
10. Financial assets and liabilities
(continued)
e) Fair value hierarchy
(continued)
Net financial investments by fair value grouping:
| 2025 | 2024 | |||||||
| Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |
| £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | |
Assets | ||||||||
Shares, other variable yield securities and units in unit trusts | | | | | | | ||
Debt and other fixed income securities | | | | | | | | |
| Participation in investment pools | | | | | | | | |
Loans and deposits with credit institutions | | | | | | | | |
| Derivative assets | | | | | | | | |
| Other investments | | | | | | | | |
| Total financial investments | | | | | | |||
Liabilities | ||||||||
| Derivative liabilities | ( | ( | | ( | ( | ( | | ( |
| Total | | | | |
The table above excludes the Syndicate’s holdings of cash and cash equivalents of £95.4 million (2024: £92.2 million). These
are measured at amortised cost and are categorised as Level 1. The table above discloses overseas deposits within other
investments.
The majority of the Syndicate’s investments are valued based on quoted market information or other observable market data.
The Syndicate holds 7.6% (2024: 13.4%) of its net financial investments at a fair value based on estimates and recorded as
Level 3 investments. Where estimates are used, these are based on a combination of independent third-party evidence.
Transfers between levels of the fair value hierarchy
The managing agent’s policy is to recognise transfers into and transfers out of fair value hierarchy levels at the start of the
relevant reporting period during which the transfers are deemed to have occurred.
There were no transfers between the levels in the current or prior years.
The following table provides an analysis of investments valued with reference to level 3 inputs.
2025
Restated
2024
£’000 £’000
At 1 January
239,209 257,574
Purchases
12,879 49,963
Disposals
(88,532) (62,335)
Fair value losses recognised in profit or loss
16,625 (6,837)
FX through OCI
(14,672) 844
At 31 December
165,509 239,209
The 2024 figures have been restated as a result of errors that arose due to the functional currency change in the prior year to
USD that impacted disposals (previously disposals reported as £196.3 million; now restated to £62.3 million) and purchases
(previously purchases reported as £185.8 million and now restated to £50.0. million).
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20253838
Notes to the financial statements
for the year ended 31 December 2025
The following section describes the Syndicate’s investment risk management from a quantitative and qualitative
perspective.
The Syndicate has two main categories of assets:
• Underwriting assets – premium received and held to meet future insurance claims.
• Capital assets – capital required by Lloyd’s to support the underwriting business. These represent funds deposited by the
Corporate Member as FIS.
Surplus funds/undistributed profits may be held in either category.
Investment governance
The managing agent manages the Syndicate’s investments in accordance with the investment governance framework that
is set by the Board. The framework is reviewed on a regular basis to ensure that the Board’s fiduciary and regulatory
responsibilities are being met. Oversight of investments is delegated to the Investment Committee (‘IC’) and day-to-day
management of the investments is delegated to MS Amlin Investment Management Limited (‘MS AIML’).
The IC comprises the Chief Financial Officer as Chairman, with the Chief Executive Officer and Chief Risk Officer as the
other members. The oversight of investments by MS Amlin was enhanced in 2025 with the creation and recruitment of a
Head of Investments role, with responsibilities including proposing changes to the investment strategy and the oversight of
investment management arrangements. The IC meets at least quarterly and supports the Board in carrying out investment
related responsibilities. During the period, MS AIML was responsible for asset allocation and the appointment of external
investment managers and custodians, within a mandate recommended by the IC and approved by the Board. The IC is kept
updated on relevant issues relating to day-to-day management.
Investment management
Investments are managed on a multi-asset, multi-manager basis. Exposure to the asset classes is achieved using physical
holdings of the asset class or derivative instruments and may be managed by MS AIML or by outsourced managers, on a
segregated, pooled or commingled basis. Manager selection is based on a range of criteria that leads to the expectation
that they will add value to the Syndicate’s assets over the medium to long-term. The external managers have discretion to
manage the investments on a day-to-day basis within investment mandates and/or prospectuses applicable to their
portfolios that ensure that they comply with the investment frameworks. The external managers’ performance, compliance
and risk are monitored on an on-going basis.
Risk tolerance
Investment risk tolerances are set by the Board following recommendation from the Risk & Solvency Committee (‘R&SC’)
and the IC. The primary tolerance is the Value at Risk (‘VaR’) metric which is set to be consistent with the risk appetite that
maintains the solvency levels in a 1-in-200 year event and considers factors such as the capital capacity and the capital
management policy. Tolerances may be lower when capital capacity is constrained and vice versa. Investment risk is
monitored by MS AIML using a market-recognised third-party risk model and reported to the IC (with escalations to the
R&SC) on a quarterly basis.
Asset allocation
The IC is responsible for recommending the investment mandate for approval by the Board. The mandate includes
performance measures, risk tolerances as well as strategic and tactical asset allocation limits. MS AIML have discretion to
manage the asset allocation that they judge will provide the appropriate risk/reward balance, whilst respecting the VaR,
tolerance and asset class, liquidity and counterparty limits set out in the investment mandate. The expected duration for
future cash flows in each currency is calculated by the Actuarial team for policyholder portfolios, the average of these forms
the basis of asset liability duration management. The IC reviews/challenges the MS AIML asset allocation and investment
risk stance on an at least quarterly basis.
10. Financial assets and liabilities
(continued)
f) Investment risk
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2025 3939
39
Directors and administration CEO Foreword Directors’ report Directors’ responsibilities Independent auditor’s report Financial statements
Notes to the financial statements
for the year ended 31 December 2025
This section describes the aspects of market risk that concerns the risks associated with valuation and interest rates.
Valuation risk
The Syndicate’s earnings are directly affected by changes in the valuation of the investments held in the portfolios. These
valuations vary according to the movements in the underlying markets. The Syndicate’s assets are marked to market at bid
price. Prices are supplied by the custodians, whose pricing processes are covered by their published annual audits. In
accordance with their pricing policies, prices are sourced from market recognised pricing vendor sources. These pricing
sources use closing trades, or where more appropriate in illiquid markets, pricing models.
The managing agent operates an established control framework with respect to fair value measurement which ensures the
valuation of financial assets and financial liabilities meets the requirements of FRS 102. As part of this process, the
managing agent reviews the valuation policies of its custodians along with the evidence provided by the custodians to
support fair value measurement. The prices are also reconciled to the fund managers’ records to check for reasonableness.
Further details of the fair value measurement of financial assets and financial liabilities are included in note 10(e).
Equity risk
The Syndicate is sensitive to equity risk through its investment in a private equity portfolio. Although these investments are
not publicly traded, their valuations are influenced by market conditions and comparable equity multiples. The Syndicate’s
investment in equities is small and the impact of a change in market conditions on this portfolio would have an immaterial
impact on the Syndicate’s result.
Interest rate risk
Investors’ expectations for interest rates will impact bond yields. The value of the Syndicate’s bond holdings is therefore
subject to fluctuation as bond yields rise and fall. If the yield falls the capital value will rise, and vice versa. Bond price
sensitivity to interest rates is most significantly affected by the bond’s duration. The greater the duration of a security the
greater its price volatility.
The underwriting liabilities are not currently discounted and therefore their value is not impacted by interest rate
movements. Cash is raised, or the duration of the portfolio reduced, if it is believed that yields may rise and therefore capital
values will fall.
The impact of a 50 basis point movement in interest rates on the Syndicate’s result and net assets is show below.
| 2025 | 2024 | |||
Impact on results before tax | Impact on members’ balance | Impact on results before tax | Impact on members’ balance | |
| £’000 | £’000 | £’000 | £’000 | |
| 50 basis point increase in interest rates | ( | ( | ( | ( |
| 50 basis point decrease in interest rates | | | | |
10. Financial assets and liabilities
(continued)
g) Market risk
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20254040
Notes to the financial statements
for the year ended 31 December 2025
Liquidity risk is the risk that the Syndicate will encounter difficulty in meeting obligations arising from its insurance contracts
and financial liabilities. The Syndicate is exposed to daily calls on its available cash resources mainly from claims arising from
insurance contracts. Levels of cash are therefore managed on a daily basis and buffers of liquid assets are also held in excess
of the immediate requirements. This approach aims to mitigate the risk of forced asset sales by the Syndicate, which could
result in realisations below fair value, particularly during periods of subdued investment market activity. The policy of limiting
the extent of duration divergence between the policyholders’ assets and the liabilities helps to reduce the risk of a cash flow
mismatch.
The following table indicates the contractual timing of cash flows arising from insurance finance liabilities as at 31 December
2025:
Undiscounted net cash flows | |||||
| 0-1 yr | 1-3 yrs | 3-5 yrs | >5 yrs | Total | |
| Insurance and financial liabilities | £’000 | £’000 | £’000 | £’000 | £’000 |
| Outstanding claims | |||||
| Derivative liabilities | | | | | |
| Creditors | | | | | |
| Total | |||||
at 31 December 2024:
Undiscounted net cash flows | |||||
| 0-1 yr | 1-3 yrs | 3-5 yrs | >5 yrs | Total | |
| Insurance and financial liabilities | £’000 | £’000 | £’000 | £’000 | £’000 |
Outstanding claims | | ||||
| Derivative liabilities | | | | | |
| Creditors | | | | | |
| Total | | ||||
Liquidity in the event of a major disaster is tested regularly using internal cash flow forecasts and realistic disaster scenarios.
In addition, the policyholders’ funds investment mandate requires at least 25% of the funds to be held in bonds and/or cash
equivalents, which are highly liquid. If a major insurance event occurs the investment strategy is reviewed to ensure that
sufficient liquidity is also available in the corporate funds.
i) Credit risk
Credit risk is the risk that the Syndicate becomes exposed to loss if a specific counterparty fails to perform its contractual
obligations in a timely manner impacting the Syndicate’s ability to meet its claims as they fall due. Credit risk can also arise
from underlying causes that have an impact upon the creditworthiness of all counterparties of a particular description or
geographical location. The Syndicate is exposed to credit risk in its investment portfolio, its insurance and reinsurance debtors
including reinsurers’ share of claims outstanding, its cash at bank and its overseas deposits.
The Syndicate’s credit risk is mitigated by the collateral received from counterparties, details of which are given in note 10(j).
The Syndicate holds off balance sheet collateral of £487.4 million (2024: £505.6 million) in relation a £112.9 million (2024:
£99.4 million) of reinsurers’ share of outstanding claims.
The following table analyses the credit rating by investment grade of financial investments, debt securities and derivative
financial instruments, reinsurers’ share of claims outstanding, amounts due from intermediaries, amounts due from reinsurers
in respect of settled claims, cash and cash equivalents, and other debtors and accrued interest.
10. Financial assets and liabilities
(continued)
h) Liquidity risk
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2025 4141
41
Directors and administration CEO Foreword Directors’ report Directors’ responsibilities Independent auditor’s report Financial statements
Notes to the financial statements
for the year ended 31 December 2025
10. Financial assets and liabilities
(continued)
i) Credit risk
(continued)
| 31 December 2025 | AAA | AA | A | BBB | Other | Not rated | Total |
| £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | |
Shares, other variable yield securities and units in unit trusts | | | | | | | |
Debt securities and other fixed income securities | | | | | | | |
| Participation in investment pools | | | | | | | |
Loans and deposits with credit institutions | | | | | | | |
| Derivative assets | | | | | | | |
| Other investments | | | | | | | |
| Deposits with ceding undertakings | | | | | | | |
| 112,585 | 167,852 | 81,284 | 6,709 | 6,632 | 1,813,880 | 2,188,942 | |
| Reinsurers’ share of claims outstanding | | | | | | | |
Debtors arising out of direct insurance operations | | | | | | | |
Debtors arising out of reinsurance operations | | | | | | | |
| Cash at bank and in hand | | | | | | | |
| Other debtors and accrued interest | | | | | | | |
| Total |
| 31 December 2024 (Restated) | AAA | AA | A | BBB | Other | Not rated | Total |
| £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | |
Shares and other variable yield securities and units in unit trusts | | | | | | ||
Debt securities and other fixed income securities | | | | | | | |
| Participation in investment pools | | | | | | | |
Loans and deposits with credit institutions | | | | | | | |
| Derivative assets | | | | | | | |
| Other investments | | | | | | ||
| Deposits with ceding undertakings | | | | | | | |
| 93,788 | 134,995 | 59,179 | 13,437 | 6,887 | 1,491,782 | 1,800,068 | |
| Reinsurers’ share of claims outstanding | | | | | | | |
Debtors arising out of direct insurance operations | | | | | | | |
Debtors arising out of reinsurance operations | | | | | | | |
| Cash at bank and in hand | | | | | | | |
| Other debtors and accrued interest | | | | | | | |
| Total | |
In the prior year table, past due amounts were included when they were not required. The debtors arising out of direct
insurance operations line has been amended to reduce the ‘not rated’ column by £71 million. In addition the debtors arising
out of reinsurance operations line has been amended to reduce the ‘AA’ column by £69 million, the ‘A’ column by £60 million
and the ‘not rated’ column by £27 million. The totals for the table have also been updated.
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20254242
Notes to the financial statements
for the year ended 31 December 2025
A significant portion of the Syndicates investments are reported in ‘Not rated’ due to the nature of the assets being held in
UCITS (Undertakings for Collective Investment in Transferable Securities) funds. These investments are highly liquid and can
be sold at short notice. Management do not deem the ‘Not rated’ disclosure of these investments to impact credit risk.
The Syndicate holds substantial collateral, primarily against the ‘Not Rated’ reinsurance debtor balances (off balance sheet)
to recover upon in the event of a default. Some of these balances will have underlying credit ratings.
Financial assets that are past due or impaired
The Syndicate has debtors arising from direct insurance and reinsurance operations that are past due but not impaired at
the reporting date. The assets of the Syndicate have been analysed below between those that are neither past due nor
impaired and those that are past due but not impaired.
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, other variable yield securities and units in unit trusts | | | | | |
Debt securities and other fixed income securities | | | | | |
Participation in investment pools | | | | | |
Loans and deposits with credit institutions | | | | | |
Derivative assets | | | | | |
Other investments | | | | | |
Deposits with ceding undertakings | | | | | |
Reinsurers’ share of outstanding claims | | | | | |
Debtors arising out of direct insurance operations | | | | | |
Debtors arising out of reinsurance operations | | | ( | | |
Other debtors and accrued interest | | | | | |
Cash at bank and in hand | | | | | |
Total | | | | ( | |
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, other variable yield securities and units in unit trusts | | | | ||
Debt securities and other fixed income securities | | | | | |
Participation in investment pools | | | | | |
Loans and deposits with credit institutions | | | | | |
Derivative assets | | | | | |
Other investments | | | | | |
Deposits with ceding undertakings | | | | | |
Reinsurers’ share of outstanding claims | | | | | |
Debtors arising out of direct insurance operations | | | | | |
Debtors arising out of reinsurance operations | | | ( | | |
Other debtors and accrued interest | | | | | |
Cash at bank and in hand | | | | | |
Total | | | ( |
10. Financial assets and liabilities
(continued)
i) Credit risk
(continued)
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2025 4343
43
Directors and administration CEO Foreword Directors’ report Directors’ responsibilities Independent auditor’s report Financial statements
Notes to the financial statements
for the year ended 31 December 2025
10. Financial assets and liabilities
(continued)
i) Credit risk
(continued)
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:
2025 | 1 Jan £’000 | New impairment charges added in year £’000 | Changes in impairment charges £’000 | Foreign exchange £’000 | 31 Dec £’000 |
Debtors arising out of reinsurance operations | | ( | |||
Total | | ( | | |
2024 | 1 Jan £’000 | New impairment charges added in year £’000 | Changes in impairment charges £’000 | Foreign exchange £’000 | 31 Dec £’000 |
Debtors arising out of reinsurance operations | | | | | |
Total | | | | |
The table below sets out the age analysis of financial assets that are past due but not impaired at the balance sheet date:
31 December 2025 | 0-3 months past due £’000 | 3-6 months past due £’000 | 6-12 months past due £’000 | Greater than 1 year past due £’000 | Total £’000 |
Debtors arising out of direct insurance operations | | | | | |
Debtors arising out of reinsurance operations | | | | | |
Total | | | | | |
31 December 2024 | 0-3 months past due £’000 | 3-6 months past due £’000 | 6-12 months past due £’000 | Greater than 1 year past due £’000 | Total £’000 |
Debtors arising out of direct insurance operations | | | | | |
Debtors arising out of reinsurance operations | | | | ||
Total | | | |
Insurance and reinsurance
The table above includes premium receivables, representing amounts due from intermediaries. The quality of these
receivables is not graded but based on historical experience there is limited default risk relating to these amounts. Credit risk
in respect of premium debt is overseen by the Syndicate’s Broker Committee and managed through a number of controls
that include broker approval, annual financial review and internal rating of brokers and regular monitoring of premium
settlement performance.
Also included are reinsurance receivables, which represent the amounts due at 31 December 2025, as well as amounts
expected to be recovered on unpaid outstanding claims (including IBNR) in respect of earned risks. These are stated net of
provisions for impairment. The credit risk in respect of reinsurance receivables, including reinsurers’ share of outstanding
claims, is primarily managed by review and approval of reinsurance security by the Reinsurance Security Committee prior to
the purchase of the reinsurance contract. Due diligence processes are completed and guidelines are applied to restrict
purchase of reinsurance from high-risk counterparties - based on the Security Committee’s view for each reinsurer and
public ratings (from Standard & Poor’s and A.M. Best). Individual reinsurer and broker account experience is considered as
part of this process. Agreements for ceded reinsurances also contain non-avoidance, special termination or similar
downgrade clauses to secure the Syndicate’s rights in the event of disputes and solvency events.
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20254444
Notes to the financial statements
for the year ended 31 December 2025
i) Credit risk
(continued)
Insurance and reinsurance
(continued)
The Syndicate holds collateral off balance sheet from certain reinsurers including those that are non-rated as security
against potential default. The details of reinsurance collateral held off balance sheet and placed with third party trust funds
are provided in note 10(i). Provisions are made against the amounts due from certain reinsurers, depending on the age of the
debt and the current rating assigned to the reinsurer. The impact on profit for the financial year of a 1% variation in the
reinsurance assets would be £3.3 million (2024: £5.7 million). The details of overdue reinsurance assets and insurance
receivables are provided in note 11(e).
Investments
As well as actual failure of a counterparty to perform its contractual obligations, the price of corporate bond holdings will be
affected by investors’ perception of a borrower’s credit worthiness. Credit risk within the investment funds is managed
through the credit research carried out by the investment managers. The investment guidelines are designed to mitigate
credit risk by ensuring diversification of the holdings. For each portfolio there are limits to the exposure to single issuers and
to the total amount that can be held in each credit quality rating category, as determined by reference to credit rating
agencies. At 31 December 2025, directly held bonds accounted for 16.8% of the portfolio (2024: 13.6%), the residual of the
portfolio was held mostly in collective investment schemes. The credit ratings on debt securities are composite ratings based
on Standard & Poor’s, Moody’s and Fitch.
The Syndicate’s derivative transactions with respect to over-the-counter options and currency forwards are subject to
International Swaps and Derivatives Association master netting agreements. Transactions under such agreements meet the
criteria for offsetting in the Syndicate’s statement of financial position. The Syndicate also receives and pledges collateral in
the form of cash in respect of the derivative transactions. The fair value of the Syndicate’s options and currency forwards are
not offset by such collateral as they create a right of set-off that is enforceable only following an event of default, insolvency
or bankruptcy of the Syndicate or the counterparties.
The Syndicate listed futures are transacted under Global Principal Clearing agreements and are not subject to offsetting in
the statement of financial position.
j) Restricted funds held by the Syndicate
At 31 December 2025, the Syndicate holds restricted funds in the form of trust fund investments, letter of credit (‘LOC’)
collateral, initial margin calls on derivative financial instruments and collateral received from reinsurance counterparties.
Trust funds
The Syndicate holds gross assets of £4,213.0 million (2024: £3,927.2 million), offset by gross liabilities of £3,298.1 million
(2024: £3,317.0 million), which are held within individual trust funds. The assets cannot be obtained or used until such time
as each Syndicate underwriting year is closed and profits are distributed, or an advance profit release is made. The Funds in
Syndicate, as set out on page 23 in the Statement of changes in members’ balance are funds deposited by the Corporate
Member and represent restricted capital for regulatory purposes.
Lloyd’s Asia Trust Funds
Included within the assets mentioned above, are assets related to underwriting activities regulated by the Monetary
Authority of Singapore. These assets are recognised as financial investments £127.8 million (2024: £87.5 million) and cash
at bank £86.1 million (2024: £89.2 million).
Derivative margins and collateral
Derivative instruments traded give rise to collateral being placed with, or received from, external counterparties. At 31
December 2025, included in other receivables and other payables are £6.7 million (2024: £9.1 million) margins and collateral
pledged.
Reinsurance collateral received
The Syndicate holds collateral of £487.4 million (2024: £505.6 million) in relation to £112.9 million (2024: £99.4 million) of
reinsurers’ share of outstanding claims.
Insurance collateral placed
The Syndicate holds £253.5 million (2024: £341.9 million) of collateral in US trust funds to meet US regulatory requirements,
of which £253.5 million (2024: £159.5 million) is recognised as an asset to the Syndicate. In the prior year the balance was
fulfilled by letters of credit pledged on behalf of the Syndicate – the facility supplying these is described below.
10. Financial assets and liabilities
(continued)
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2025 4545
45
Directors and administration CEO Foreword Directors’ report Directors’ responsibilities Independent auditor’s report Financial statements
Notes to the financial statements
for the year ended 31 December 2025
10. Financial assets and liabilities
(continued)
k) Borrowings
Revolving Credit Facility
On 8 September 2022 the Syndicate, through the Managing Agent, entered into an unsecured £160.0 million multi-currency
revolving credit facility with a syndicate of banks. An accordion clause was included, where the facility could be increased to
£250.0 million, if required. The interest rate basis is determined by the appropriate rate for each drawdown currency and loan
type. This facility had an initial two-year term, with two one-year extension options at the end of the original term.
As at 31 December 2025, no amounts have been drawn on this facility (2024: £nil). During the year, the second one-year
extension option was exercised by agreement between the Managing Agent and the banks. No other changes were made to
the facility during the year.
Letter of Credit Facility
The Syndicate, through the managing agent, has access to two Letter of Credit (‘LOC’) facilities detailed below.
1. Lloyd’s Australia Trust Fund
On 14 April 2022, the Syndicate, through the Managing Agent, entered into a bilateral facility with a bank, to provide
letters of credit that can be issued as collateral for the benefit of the Lloyd’s Australia Trust Fund (‘LATF’). This is a
two-year facility, with two one-year extension options at the end of the original term. An accordion clause is included,
where the facility could be increased to AU$200.0 million, if required.
As at 31 December 2025, AU$96.6 million (£48.0 million) (2024: AU$98.0 million, £48.6 million) of LOCs have been
lodged with the trustees of the LATF. During the year, the second one-year extension option was exercised by agreement
between the Managing Agent and the bank. No other changes were made to the facility during the year.
2. Situs funds
In the prior year, the Syndicate, through the Managing Agent, had access to a $320.0 million facility with a Syndicate of
banks, to provide letters of credit that can be issued as collateral for the benefit of the US Credit for Reinsurance Trust Fund
(‘CRTF’) and to the US Excess or Surplus Lines Trust Fund (‘SLTF’). The CRTF and SLTF are collectively referred to as the
Situs funds.
11. Insurance liabilities and assets
a) Net outstanding claims
| 2025 | 2024 | |||||
Gross provisions | Reinsurance assets | Net | Gross provisions | Reinsurance assets | Net | |
| Claims outstanding | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 |
| Balance at 1 January | | ( | | | ( | |
| Claims paid during the year | ( | | ( | ( | | ( |
| Expected cost of current year claims | | ( | | | ( | |
| Changes in estimates of prior year provisions | | ( | | ( | | ( |
| Foreign exchange movements | ( | | ( | | ( | ( |
| Balance as at 31 December | | ( | | | ( |
Further information on the calculation of outstanding claims and the risks associated with them is provided in note 11(i).
The managing agent assesses the Syndicate’s reinsurers’ share of outstanding claims for impairment on a quarterly basis by
reviewing counterparty payment history and credit grades provided by rating agencies. The credit ratings of the Syndicate’s
reinsurers’ share of outstanding claims are shown in note 10(i).
At 31 December 2025 and 2024 the reinsurers’ share of outstanding claims was not overdue. The Syndicate holds collateral
of £487.4 million (2024: £505.6 million) in relation to £112.9 million (2024: £99.4 million) of reinsurers’ share of outstanding
claims.
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20254646
Notes to the financial statements
for the year ended 31 December 2025
b) Claims development
The tables below illustrate the development of the estimates of cumulative claims for the Syndicate on an underwriting year
basis, illustrating how amounts booked have developed from one reporting period to the next. Due to RITC where the 2018
prior claims were ceded out to RiverStone, the claims table below only showing claims after underwriting year 2018. All
tables are prepared on an undiscounted basis. To aid comparability, currency amounts have been converted using 2025
year end exchange rates.
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total | |
| Estimate of cumulative gross claims | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 |
| At end of first year | | | | | | | | |
| One year later | | | | | | | | |
| Two years later | | | | | | | | |
| Three years later | | | | | | | | |
| Four years later | | | | | | | | |
| Five years later | | | | | | | | |
| Six years later | | | | | | | | |
Estimate of cumulative gross claims reserve | | | | |||||
| Less gross claims paid | ( | ( | ( | ( | ( | ( | ( | ( |
| Gross claims reserve | | | | | | |||
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total | |
| Estimate of cumulative net claims | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 |
| At end of first year | | | | | | | | |
| One year later | | | | | | | | |
| Two years later | | | | | | | | |
| Three years later | | | | | | | | |
| Four years later | | | | | | | | |
| Five years later | | | | | | | | |
| Six years later | | | | | | | | |
Estimate of cumulative net claims reserve | | | | | | | | |
| Less net claims paid | ( | ( | ( | ( | ( | ( | ( | ( |
| Net claims reserve | | | | | | | | |
2025
2024
Total for all underwriting years £’000 £’000
Net reserves recognised
1,723,152 1,538,947
Amounts recovered from reinsurers
334,849 570,888
Gross reserves included in balance sheet
2,058,001 2,109,835
11. Insurance liabilities and assets (continued)
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2025 4747
47
Directors and administration CEO Foreword Directors’ report Directors’ responsibilities Independent auditor’s report Financial statements
Notes to the financial statements
for the year ended 31 December 2025
c) Net unearned premium
| 2025 | 2024 | |||||
Gross provisions | Reinsurance assets | Net | Gross provisions | Reinsurance assets | Net | |
| Unearned premium | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 |
| Balance at 1 January | | ( | | | ( | |
| Premiums written during the year | | ( | | ( | | |
| Premiums earned during the year | ( | | ( | ( | | ( |
| Foreign exchange movements | ( | | ( | ( | | ( |
| Balance as at 31 December | | ( | | | ( | |
d) Deferred acquisition costs
The reconciliation of opening and closing deferred acquisition costs is as follows:
| 2025 | 2024 | |||||
| Gross | Reinsurance | Net | Gross | Reinsurance | Net | |
| £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | |
| Balance at 1 January | | ( | | ( | | |
| Incurred deferred acquisition costs | | ( | | ( | | |
| Amortised deferred acquisition costs | ( | | ( | ( | | ( |
| Foreign exchange movements | ( | | ( | ( | | ( |
| Balance as at 31 December | | ( | | ( | |
e) Insurance and reinsurance receivables and payable
Insurance and reinsurance receivables
2025 2024
£’000 £’000
Due from intermediaries 1,113,478 1,009,098
Less provision for impairment of receivables (3,507) (5,193)
Insurance and reinsurance receivables 1,109,971 1,003,905
Receivables arising from reinsurance contracts are comprised principally of amounts recoverable from reinsurers in respect of
paid claims and premium receivables on inward reinsurance business, including reinstatement premium.
The managing agent assesses the Syndicate’s insurance and reinsurance receivables for impairment on a quarterly basis by
reviewing counterparty payment history and for circumstances which may give rise to a dispute or default. At 31 December
2025, insurance and reinsurance receivables at a nominal value of £143.3 million (2024: £15.5 million) were greater than three
months overdue and provided for on the basis of credit rating to the value of £3.5 million (2024: £5.2 million).
The carrying amounts disclosed above are reasonably approximate to the fair value at the reporting date.
11. Insurance liabilities and assets (continued)
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20254848
Notes to the financial statements
for the year ended 31 December 2025
11. Insurance liabilities and reinsurance assets
(continued)
e) Insurance and reinsurance receivables and payable (continued)
Insurance and reinsurance receivables (continued)
| 2025 | 2024 | |
| Debtors arising out of direct insurance operations | £’000 | £’000 |
| Due within one year | | |
| Total | | |
| 2025 | 2024 | |
| Debtors arising out of reinsurance operations | £’000 | £’000 |
| Due within one year | | |
| Total | | |
| 2025 | 2024 | |
| Creditors arising out of direct insurance operations | £’000 | £’000 |
| Due within one year | ||
| Total | ||
| 2025 | 2024 | |
| Creditors arising out of reinsurance operations | £’000 | £’000 |
| Due within one year | | |
| Total | |
Insurance and reinsurance payables are all current, both in the current and prior years, However, the nature of claims
negotiations and broker relationships may mean some of these payables result in non-current settlement. The carrying
amounts disclosed above are reasonably approximate to the fair value at the reporting date. Insurance payables are
comprised principally of premium payable for reinsurance, including reinstatement premium.
f) Insurance risk
The Syndicate underwrites a broad range of insurance and reinsurance risks, across both short- and long-tail exposures,
through its Insurance and Reinsurance divisions. Underwriters apply their expertise, supported by exposure data and past
claims experience, to estimate likely claims costs and set premiums designed to cover losses, expenses, and deliver profit.
However, insurance risk is inherently uncertain, and premiums may prove inadequate due to mispricing or unexpectedly high
claims.
To manage this, the Syndicate operates within strict controls aligned to the Board’s risk appetite. An annual business plan
sets targets for premium income and exposure by class, with performance monitored throughout the year. Exceeding these
limits requires senior management approval. Individual policies are capped by per-loss limits, while line guides define
maximum liabilities per policy. Catastrophe exposures are mitigated through reinsurance, protecting against loss
aggregation from major events.
Business is written through individual risks, reinsurance treaties, or delegated authority facilities, where approved
underwriters or coverholders bind risks on the Syndicate’s behalf within defined limits. Liabilities are reviewed both
individually and at portfolio level. Claims are reserved upon notification, with the Actuarial Function conducting quarterly
reviews and incorporating input from underwriting, exposure management, and claims teams. Provisions are also made for
incurred but not reported (IBNR) claims, though these carry greater uncertainty. To mitigate this, reserves are held above the
actuarial best estimate, as detailed in section i).
Emerging claims trends may lead to pricing adjustments, but competitive pressures can restrict this response. Underwriters
may be forced to accept lower margins or decline renewals, while existing policies remain exposed until expiry.
The Syndicate is exposed to major catastrophe events such as windstorms, earthquakes, and terrorist incidents. These
exposures are monitored through loss modelling, though actual losses may exceed modelled expectations. Errors in
assumptions, data quality, or model design can lead to claims that are materially higher or lower than predicted.
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2025 4949
49
Directors and administration CEO Foreword Directors’ report Directors’ responsibilities Independent auditor’s report Financial statements
Notes to the financial statements
for the year ended 31 December 2025
Sensitivity to Insurance Risk
The ultimate cost of claims may differ significantly from established liabilities. This uncertainty varies by class of business and
arises from developments in large-loss or catastrophe reserving, as well as changes in incurred but not reported (IBNR)
estimates.
Beyond catastrophe risk, the Syndicate also faces systemic risks. These include the potential impact of excess inflation across
multiple classes of business, or legislative changes that could trigger claims from previously unforeseen sources.
The following table presents the profit and loss impact of the sensitivity of the value of unpaid claims reserves 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% | -5.0% |
| £’000 | £’000 | |
| Claims outstanding – gross of reinsurance | ( | |
| Claims outstanding – net of reinsurance | ( | |
| General insurance business sensitivities as at 31 December 2024 | Sensitivity +5.0% | -5.0% |
| £’000 | £’000 | |
| Claims outstanding – gross of reinsurance | ( | |
| Claims outstanding – net of reinsurance | ( | |
g) Reinsurance and other risk mitigation arrangements
The Syndicate purchases an excess number of loss reinsurances to protect itself from severe frequency or size of losses. The
structure of the programme and type of protection bought will vary from year to year depending on the availability and price of
cover.
The Syndicate previously purchased proportional reinsurance with MS Reinsurance to supplement line size and to reduce
exposure on individual risks. A part of the premiums ceded under such facilities were placed with MS Amlin AG (Bermuda
Branch) under whole account quota share renew agreements, covering the net book of the Syndicate (excluding the P&C UK
Business). These arrangements were commuted in Q1 2025.
h) Realistic Disaster Scenario (RDS) analysis
The Syndicate has a defined event risk tolerance, which determines the maximum net loss that the Syndicate intends to limit its
exposure to major catastrophe event scenarios. The Syndicate also adopts risk tolerance maximum net limits for a number of
other non-elemental scenarios including aviation collision, North Sea rig loss, terrorism, cyber and casualty events.
The risk tolerance policy recognises that there may be circumstances in which the net event limit could be exceeded. Such
circumstances include changes in rates of exchange, reduced order amount or delay in renewal of reinsurance protection,
reinsurance security failure, or regulatory and legal requirements.
Detailed deterministic and probabilistic analyses of catastrophe exposures are carried out every quarter and measured against
the event risk tolerances, the business plan, and regulatory guidelines e.g. Lloyd’s Franchise Guidelines. The following
assumptions and procedures are used in the process:
• The data used reflects the information supplied to the Syndicate by insureds and ceding companies. The data is checked for
any limitations e.g. data completeness, data quality, and exposures that could develop during the period e.g. binders.
Adjustments are made in accordance with the underwriters that are subsequently reviewed and ratified by the Chief
Underwriting Officer.
• Exposures are modelled using a mixture of stochastic models and underwriter input to arrive at damage factors – these
11. Insurance liabilities and assets (continued)
f) Insurance risk (continued)
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20255050
Notes to the financial statements
for the year ended 31 December 2025
factors are then applied to the assumed aggregate exposure to produce gross loss estimates. The damage factors are
reviewed on a continual basis to ensure assumptions remain appropriate.
• Once Gross numbers are established, the in force reinsurance programme is then applied.
• Reinstatement premiums both payable and receivable are included in our loss estimates.
Due to the severe nature of these events, there is no guarantee that the assumptions and techniques deployed in calculating
the impact of these events are 100% accurate. We review our assumptions when new information comes to light, e.g. post
event analysis, scientific or academic research.
Notwithstanding, there could be a situation where the Syndicate experiences a loss from a severe event that exceeds the
loss estimate or tolerance. The likelihood of a very severe catastrophe is considered to be remote e.g. beyond the 1 in 100
probability, however these scenarios are modelled simulated events that have considerable uncertainty associated with
them but are captured within the probabilistic modelling numbers.
i) Claims reserving and incurred but not reported (‘IBNR’)
The Syndicate adopts a rigorous process on a quarterly basis in the calculation of an adequate provision for claims reserves.
The overall reserves are set at a level above the mean actuarial ‘best estimate’ position in accordance with the margin policy.
Despite a robust process, there is a risk that, due to unforeseen circumstances, the reserves carried are not sufficient to meet
insurance claim liabilities reported in future years on policy periods which have expired.
Process and methodology
The reserving process commences with the proper recording and reporting of claims information which consists of paid and
notified or outstanding claims. For the Lloyd’s market most claims notifications are received through the Lloyd’s market
bureau (operated by DxC Technology Company on behalf of Lloyd’s), with others received directly. Claims records are
maintained for each policy and class. For notified or outstanding claims, a case reserve is established based on the views of
underwriting management and claims managers, using external legal or expert advice where appropriate. This reserve is
expected to be sufficient to meet the claim payment when it is finally settled. For some classes of business, particularly
liability business, settlement may be several years after the initial notification of the claim, as it may be subject to
complexities or court action. For claims received from the Lloyd’s market bureau, the market reserve is generally set by the
lead underwriter, but there are circumstances with larger claims where the Syndicate will post higher reserves than those
notified.
IBNR
In addition to the paid and outstanding claims, the actuarial reserving team also sets reserves for IBNR claims relating to
unknown events which have already occurred. In the process of determining the total provision for claims reserves including
IBNR triangulation statistics for each class are produced which show the historical development of premium, as well as paid
and incurred losses, for each underwriting year. In all cases, the different potential development of each class of business is
fully recognised. The development period varies by class and is also influenced by the level of deductible on each policy
written. For casualty business, the policy form will determine whether claims can be made on a claims-made (determined by
date of advice) or on a loss-occurring (determined by date of loss) basis. This has a significant impact on the reporting period
in which claims can be notified.
To establish a provision for the IBNR component of claims reserves, the actuarial team applies a statistical analysis of the
data triangulations, along with their experience and knowledge of the business, to estimate the potential future development
of the incurred claims for each class for each underwriting year. This is known as the ‘best estimate’. In setting the IBNR
provision, estimates are also made for the ultimate premium and ultimate gross claims value for each underwriting year.
Allowance is then made for anticipated reinsurance recoveries to reach a net claim position. Reinsurance recoveries are
calculated for outstanding and IBNR claims, sometimes through the use of historical recovery rates or statistical projections,
and provisions are made as appropriate for bad debt or possible disputes.
The component of ultimate IBNR provisions and reinsurance recoveries that relates to future events is removed in order to
reflect generally accepted accounting practice. Early in the process, discussions take place relating to each business unit in
which underwriters, claims professionals and actuaries discuss the observed experience in the quarter. The actuarial
reserving team then produces initial proposed estimates and shares them with class underwriters for further discussion. At
the next round of meetings, management discuss reserving issues with the actuaries and challenge the proposed estimates.
At this meeting, management propose the ‘margin’ for risk to be added to the best estimate. The margin for risk can be used
to offset unexpected deterioration in best estimate reserves and is established by reference to diagnostics produced from the
internal model and management judgement. The reserves, including the proposed margin, are finally challenged at the audit
committee meeting which will recommend approval by the Board.
11. Insurance liabilities and reinsurance assets (continued)
f) Insurance risk (continued)
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2025 5151
51
Directors and administration CEO Foreword Directors’ report Directors’ responsibilities Independent auditor’s report Financial statements
Notes to the financial statements
for the year ended 31 December 2025
Areas of uncertainty
The reserves established can be more or less than adequate to meet eventual claims arising. The level of uncertainty varies
significantly from class to class but can arise from inadequate case reserves for known large losses and catastrophes or
from inadequate provision for IBNR claims.
Property catastrophe claims, such as earthquake or hurricane losses, can take several years to settle as adjusters visit
damaged property and agree claim valuations. Initial estimates of the ultimate cost of these events involve analysis of the
area damaged and the contracts exposed, as well as the use of models to simulate the event against the portfolio of
exposure in order to arrive at an estimate of ultimate loss to the Syndicate. The uncertainty over the adequacy of modelling
of major losses can last from several months to several years after a catastrophe loss. Account should also be taken of
additional factors which may influence the cost of claims such as increased repair cost inflation or a change in law.
Long tail liability classes represent the most difficult classes to project because often claims are notified and settled several
years after the expiry of the policy concerned. This is particularly the case for liability business written on a loss occurring
basis. The use of historical development data is fundamental to reserving these classes, bolstered with advice of lawyers
and third-party claims adjusters on material single claims. Known changes to wordings or the claims environment are also
considered, along with any trends that are not captured within the historical loss development.
The allocation of IBNR to the outwards reinsurance programme is an uncertain exercise as there is no direct knowledge of
the size or number of future claims notifications, so any projected recoveries may be higher or lower than actual recoveries
once the underlying claims become known.
The estimated premium income is set by underwriters on inception of the contract, but actual premium may exceed or fall
short of initial estimates. The magnitude of claims arising may therefore differ from initial estimates because of differences
between estimated and actual premium.
Russia – Ukraine War
The Syndicate has significant exposures to the Russia-Ukraine conflict across a number of lines of business. Estimates of the
loss levels have been based on a combination of exposure analysis, scenario consideration and claims notifications. Whilst
overall the range of volatility around these estimates has decreased over the year, key areas of market uncertainty impacting
the estimate still include:
• Ongoing litigation of aviation losses, including potential pursuit of operator policies,
• How cedants will present their losses,
• How Reinsurers respond to insured losses,
12. Capital
Capital framework at Lloyd’s
The Society of Lloyd’s (‘Lloyd’s’) is a regulated undertaking and subject to the supervision of the Prudential Regulation
Authority (‘PRA’) under the Financial Services and Markets Act 2000.
Within this supervisory framework, Lloyd’s applies capital requirements at member level and centrally to ensure that Lloyd’s
complies with Solvency II, and beyond that to meet its own financial strength, licence and ratings objectives.
Although, as described below, Lloyd’s capital setting processes use a capital requirement set at syndicate level as a starting
point, the requirement to meet Solvency II and Lloyd’s capital requirements apply at overall and member level only
respectively, not at syndicate level. Accordingly, the capital requirement in respect of Syndicate 2001 is not disclosed in these
financial statements.
Lloyd’s capital setting process
In order to meet Lloyd’s requirements, each syndicate is required to calculate its Solvency Capital Requirement (‘SCR’) for the
prospective underwriting year. This amount must be sufficient to cover a 1 in 200 year net loss, reflecting uncertainty in the
ultimate run-off of underwriting liabilities (‘to ultimate SCR’). Two adjustments are made to the ultimate Syndicate SCR to
allow for changes under the Solvency UK and Lloyd’s regulatory framework; one is a Risk Margin adjustment to reflect the
lower cost of capital rate introduced in 2024 and one is a Contract Boundary adjustment to reflect differences in accounting
treatment of reinsurance contracts for written but not incepted business. Each syndicate must also calculate its SCR at the
same confidence level but reflecting uncertainty over a one year time horizon (‘one year SCR’) for Lloyd’s to use in meeting
Solvency II requirements. The SCRs of each syndicate are subject to review by Lloyd’s and approval by the Lloyd’s Capital
and Planning Group.
11. Insurance liabilities and reinsurance assets (continued)
i) Claims reserving and incurred but not reported (‘IBNR’) (continued)
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20255252
Notes to the financial statements
for the year ended 31 December 2025
A syndicate may be comprised of one or more underwriting members of Lloyd’s. Each member is liable for its own share
of underwriting liabilities on the syndicate(s) on which it participates but no other members’ shares. Accordingly, the
capital requirement that Lloyd’s sets for each member operate on a similar basis. Each member’s SCR shall thus be
determined by the sum of the member’s share of the syndicate to ultimate SCR. Where a member participates on more
than one syndicate, a credit for diversification is provided to reflect the spread of risk, but consistent with determining a
SCR which reflects the capital requirement to cover a to ultimate 1 in 200 year net loss for that member. Over and above
this, Lloyd’s applies capital uplift to the member’s capital requirement, known as the Economic Capital Assessment
(‘ECA’).
The purpose of this uplift, which is a Lloyd’s not a Solvency II requirement, is to meet Lloyd’s financial strength, licence and
ratings objectives. The capital uplift applied was 35% (2024: 35%) of the member’s to ultimate SCR.
Provision of capital by members
Each member may provide capital to meet its ECA either by assets held in trust by Lloyd’s specifically for that member
(Funds at Lloyd’s, ‘FAL’), held within and managed within a syndicate (Funds in Syndicate, ‘FIS’) or as the member’s share
of the members’ balances on each syndicate on which it participates. These funds are intended to cover circumstances
where Syndicate assets prove insufficient to meet participating members’ underwriting liabilities.
The level of FAL required to be maintained is determined by Lloyd’s based on Prudential Regulatory Authority
requirements and resource criteria
Accordingly, all of the assets less liabilities of the Syndicate, as represented in the members’ balance reported on the
statement of financial position on page 21, represent resources available to meet the members’ and Lloyd’s capital
requirements.
The Syndicate has only one member, MS Amlin Corporate Member Limited, and all of its capital for the 2025 and prior
years of account is provided as both FIS and FAL.
13. Distribution
A distribution of £274.3 million to members will be made in relation to the closing year of account (2023) (2024: £34.1
million in relation to the closing year of account (2022)). No year of account remains open after the three-year period.
14. Other risk disclosures
a) Operational risk
Operational risk refers to the potential for loss resulting from inadequate or failed internal processes, personnel, systems,
or external events. This encompasses a range of risks, including technology or system failures, cyber threats, human error,
process breakdowns, and insufficient oversight of third-party providers.
Effective operational risk management requires the implementation of strong governance frameworks, robust internal
controls, diligent oversight of outsourced functions, and comprehensive business continuity and incident response plans.
Internal controls play a critical role in mitigating operational risk and are documented and attested within the MS Amlin
Governance, Risk, and Compliance Tool.
Oversight of Operational Risk, and all other risk categories, is led by designated Risk Owners. They are supported by
second-line review from Risk Management and third-line assurance from Internal Audit. Together with Compliance, these
functions maintain an integrated assurance plan to ensure effective and coordinated oversight.
b) Regulatory risk
Regulatory Risk refers to the potential for loss or disruption arising from changes in laws, regulations, or regulatory
expectations, or from non-compliance with them. This encompasses both domestic and international regulatory
frameworks that govern the operations of MS Amlin and the wider Lloyd’s market. MS Amlin’s Compliance Team plays a
critical role in helping the business meet current and emerging regulatory requirements by actively monitoring regulatory
developments and assessing their potential impact on the organisation.
12. Capital
Lloyd’s capital setting process (continued)
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2025 5353
53
Directors and administration CEO Foreword Directors’ report Directors’ responsibilities Independent auditor’s report Financial statements
Notes to the financial statements
for the year ended 31 December 2025
c) Reinsurance to Close (RITC)
The Syndicate entered a “Split” Reinsurance to close (‘RITC’) contract on all classes within its 2018 and prior years of
account reserves. The Syndicate paid a RITC premium to another Lloyd’s syndicate to assume its ongoing liabilities in both
contracts. The nature of this arrangement is that of a reinsurance contract and as such the Syndicate retains liability in the
event of any failure of this Lloyd’s syndicate and the Lloyd’s chain of security. There is no mechanism for the Syndicate to
quantify its exposure in this regard and the directors of the managing agent consider that the possibility of having to assume
these liabilities is remote.
d) Strategic Risk
Strategic risk refers to the potential for loss or uncertainty arising from the Syndicate’s pursuit of its defined strategy. This
encompasses risks linked to business model decisions, market positioning, long-term planning, and the ability to adapt to
changing regulatory, economic, or competitive landscapes. MS Amlin mitigates strategic risk through a clearly documented
strategy and a well-defined risk appetite, both of which are formally approved by the Board.
e) Environmental Social & Governance (ESG) Risk
ESG risk refers to the potential for financial loss, reputational damage, or regulatory repercussions resulting from inadequate
management of environmental, social, or governance issues across underwriting, investment practices, or corporate
behaviour. Within the context of MS Amlin and its external stakeholder expectations, this risk is dynamic and continuously
evolving. It is actively managed through a documented Sustainability Strategy, which undergoes review and oversight by the
MS Amlin Sustainability Committee. For further details on our ESG and Sustainability approach. including climate-related
risks, please refer to the Managing Agents Report.
15. Commitments
In June 2023 the managing agent, with the agreement of the Corporate Member, entered into a subscription agreement for
investment in two private equity funds.
This subscription entails funds of $55.0 million invested over a period of up to five years. Payments made will be from the
Funds in Syndicate balance and be recognised as financial investments on the Statement of financial position.
At 31 December 2025, $33.8 million (£25.1 million) (2024: $21.6 million, £17.2 million) was invested.
16. Related parties
Ultimate parent company
The smallest group of undertakings of which the managing agent and corporate member are members, and for which group
financial statements are prepared is Mitsui Sumitomo Insurance Company, Limited (‘MSI’), a company incorporated in Japan.
The ultimate parent company and controlling party is MS & AD Insurance Group Holdings, Inc., a company incorporated in
Japan and is the largest group of undertakings in which the managing agent is a member, and for which group financial
statements are prepared.
Consolidated financial statements for the smallest and largest group undertakings are available to the public and may be
obtained from the Company Secretary at The Leadenhall Building, 122 Leadenhall Street, London, EC3V 4AG.
The ultimate parent company address is Tokyo Sumitomo Twin Building (West Tower), 27-2, Shinkawa 2 Chome, Chuo-ku,
Tokyo, Japan. The address of MSI is 9, Kanda-Surugadai 3 Chome, Chiyoda-ku, Tokyo, Japan.
Mitsui Sumitomo Insurance Company, Limited
MSI provides capital in support of the Syndicate through FAL. The amount provided as at 31 December 2025 was £308.1
million (2024: £405.4 million), made up of Japanese government, corporate & municipal bonds. The net decrease is due to
movements occurring through Lloyd’s capital requirement processes, alongside market value movements.
14. Other risk disclosures (continued)
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20255454
Notes to the financial statements
for the year ended 31 December 2025
MS Amlin Corporate Member Limited
MS Amlin Corporate Member Limited (the ‘Corporate Member’) is the sole corporate member to the Syndicate. As per note
12, it provides capital to the Syndicate as FAL and FIS.
The amount provided as FIS as at 31 December 2025 was £315.5 million (2024: £284.3 million), including accrued income.
The net increase is due to movements occurring through Lloyd’s capital requirement processes, alongside market value
movements. The amount provided as FAL as at 31 December 2025 was provided through letters of credit to the value of
$146.3 million (£108.7 million) (2024: $146.3 million, £116.8 million), sourced from a syndicated £126.5 million letter of
credit facility (2024: £126.5 million).
MS Amlin Underwriting Limited
Managing agent’s fees of £13.3 million (2024: £16.0 million) were charged to the Syndicate during the year, of which £nil
(2024: £nil) was outstanding as at 31 December 2025.
There have been no transactions entered into or carried out during the year by the managing agent on behalf of the
Syndicate in which it or any of its executives had directly or indirectly a material interest.
On 1 January 2026, a director of the Syndicate, was appointed a director of Nuclear Risk Insurers Limited to whom the
Syndicate provides material capacity.
MS Amlin Corporate Services Limited
MS Amlin Corporate Services Limited (‘MS ACS’) was paid £164.6 million during the year (2024: £146.5 million) for
expenses incurred directly and indirectly on behalf of the Syndicate. This included a management charge of £45.8 million
(2024: £43.3 million) for central costs of the MSI Group that are attributable to the Syndicate. These expenses are shown in
administrative expenses net of the allocation to claims handling costs. There is no profit element in the amounts paid to MS
ACS. At 31 December 2025 the amount receivable from MS ACS is £0.8 million (2024: £5.3 million, payable). These
amounts do not include the loan receivable from MS ACS as disclosed in note 10(c).
Leadenhall Capital Partners LLP
The Syndicate wrote £2.1 million (2024: £5.8 million) of gross premium and received £nil (2024: £0.3 million) of
commissions through an arrangement with Leadenhall Capital Partners LLP (including its insurance vehicle Horseshoe Re)
during 2025. As at 31 December 2025, the Syndicate had £25.4 million (2024: £20.8 million) receivable, all of which is
collateralised, and £38.5 million payable to Leadenhall Capital Partners (2024: £40.7 million).
MS Amlin Investment Management Limited
MS Amlin Investment Management Limited manages the majority of investments on behalf of the Syndicate and during
2025 the investment management fee charged by MS AIML was £4.1 million. (2024: £1.8 million).
Service companies and brokers
During the year, the Syndicate had £15.1 million (2024: £19.0 million) net balance receivable from service companies.
No fees are paid by these companies to any of the directors of the managing agent.
Toro Prism Trust
The Syndicate is invested in the Toro Prism Trust (the ‘Trust’) which is an open-ended investment unit trust authorised by
the Central Bank of Ireland as a UCITS regulated by the European Union. The Trust is controlled by the MSI Group. The
market value of the investments in the Trust at December 2025 is £1,442.0 million (2024: £1,113.1 million).
17. Events after the reporting period
There have been no significant events between the reporting date and the date these financial statements were
authorised.
16. Related parties (continued)
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2025 5555
55
Directors and administration CEO Foreword Directors’ report Directors’ responsibilities Independent auditor’s report Financial statements
18. Restatement of cash flows
The classification of cash flows relating to investing activities has been restated for 2024 to reallocate between investment
income, purchases and sales of equity and debt instruments. The impact of this restatement is set out in the table below:
Reported
2024
£’000
Prior Year
adjustments
£’000
Restated
2024
£’000
Cash flows from operating activities
Profit for the financial year 212,143
-
212,143
Increase in gross technical provisions 329,971
-
329,971
Decrease in reinsurers’ share technical provisions 76,430 - 76,430
(Increase) in debtors (85,878) - (85,878)
Increase in creditors 80,546 - 80,546
(Decrease )/increase in other assets/liabilities 69,275 - 69,275
Investment return (40,784) - (40,784)
Foreign exchange (gains)/ losses 17,432 - 17,432
Net cash inflow from operating activities 659,135
-
659,135
Cash flows from investing activities
Purchase of equity and debt instruments (2,423,028) 344,343 (2,078,685)
Sale of equity and debt instruments 1,833,030 (258,898) 1,574,132
Purchase of derivatives (63,286) - (63,286)
Sale of derivatives 68,130 - 68,130
Investment income received 101,105 (85,445) 15,660
Other (8,793) - (8,793)
Net cash outflow from investing activities (492,841) - (492,842)
Cash flows from financing activities
Distribution of profit (13,395) - (13,395)
Funds in Syndicate releases (210,301) - (210,301)
Net cash inflow / (outflow) from financing activities (223,696) - (223,696)
Net decrease in cash and cash equivalents (57,403) - (57,403)
Cash and cash equivalents at the beginning of the year 150,261 - 150,261
Effect of exchange rate on cash and cash equivalents (619) - (619)
Cash and cash equivalents at the end of the year 92,239 - 92,239
Notes to the financial statements
for the year ended 31 December 2025
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20235656
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2023
5757
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20255858
Notes to the financial statements
for the year ended 31 December 2025
The Leadenhall Building
122 Leadenhall Street
London, EC3V 4AG
+44 (0)20 7746 1000
global.msamlin.com
