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Syndicate 4444 Annual Report & Accounts
As at 31 December 2025
Contents
CMA
Syndicate 4444 Annual Report & Accounts 31 December 2025
Page 2 of 51
Syndicate 4444
Page
Directors and Professional Advisers
3
Report of the Directors of the Managing Agent
4
Independent Auditor’s Report
9
Income Statement
Statement of Change in Members’ Balances
13
14
Statement of Financial Position
15
Statement of Cash Flows
17
Notes to the Financial Statements
18
Directors and Professional Advisers
CMA
Syndicate 4444 Annual Report & Accounts 31 December 2025
Page 3 of 51
MANAGING AGENT:
Directors
P Ceurvorst *
M V Greenwood OBE DL*
P F Hazell *
M Newman
H Patel *
Appointed 1 May 2025
J Pearson
A Rouffiac
Former directors who served during the year and prior to date of signing
P Meader *
Resigned 31 March 2025
* Non-Executive Director
Company Secretary
P Makwana
Registered office
Floor 29
22 Bishopsgate
London
EC2N 4BQ
Managing Agent’s registration No.
01514453
FCA firm registration No.
204847
SYNDICATE:
Active Underwriter
A Rouffiac
Investment Managers
BlackRock - 12 Throgmorton Avenue, London, EC2N 2DL
LGIM - One Coleman Street, London, EC2R 5AA
Lloyd’s - One Lime Street, London, EC3M 7HA
Loomis Sayles - One Financial Center, Boston, MA 02111
NEAM - 4th Floor, DBP House, 63 Mark Lane, London, EC3R 7NQ
SYZ - Southwest House, 11a Regent Street, London, SW1Y 4LR
Wellington - Cardinal Place, 80 Victoria Street, London, SW1E 5JL
Barings - 20 Old Bailey, London, EC4M 7BF
M&G - 10 Fenchurch Ave, London EC3M 5AG
RAW Capital Partners - 12 The Grange, St Peter Port, Guernsey GY1 2QJ
Maxim Capital Group - 600 Madison Ave 17th Floor, New York, NY 10022, United States
Invesco Advisers, Inc – 1555 Peachtree Street, N.E., Suite 1800, Atlanta, Georgia 30309, USA
Amundi Asset Management (sub-IM - Chenavari Credit Partners LLP) - 77 Coleman Street,
London, EC2R 5BJ
Independent Auditors
Ernst & Young LLP (“EY”)
25 Churchill Place, Canary Wharf, London, E14 5EY
Report of the Directors of the Managing Agent
CMA
Syndicate 4444 Annual Report & Accounts 31 December 2025
Page 4 of 51
The directors of Canopius Managing Agents Limited (“CMA”), the managing agent for Syndicate
4444 (the “Syndicate”), present the annual report and audited financial statements for the
Syndicate for the year ended 31 December 2025.
These financial statements have been prepared in compliance with United Kingdom Accounting
Standards, including Financial Reporting Standard 102, “The Financial Reporting Standard
applicable in the United Kingdom and Republic of Ireland” (“FRS102”), Financial Reporting
Standard 103, “Insurance Contracts” (“FRS103”) and the Companies Act 2006.
Furthermore,
these financial statements comply with the Insurance Accounts Directive (Lloyd's Syndicate and
Aggregate Accounts) Regulations 2008 ("the 2008 Regulations") and the Lloyd’s Syndicate
Accounts Instructions Version 3.1 as modified by the Frequently Asked Questions Version 1.1
issued by Lloyd’s (‘the Syndicate Accounts Instructions’).
Review of the business
Syndicate 4444 is a syndicate at Lloyd’s managed by CMA. Its principal activity is the
underwriting of insurance and reinsurance business at Lloyd’s, transacted through direct
channels and via delegated underwriting. The Syndicate capacity for the 2025 year of account
was £2,550m (2024: £2,000m).
Results and performance – Key performance indicators (“KPIs”)
The following KPIs were used during the year:
2025
2024
$m
$m
Gross premiums written
3,870.0
3,159.4
Earned premiums, net of reinsurance
2,390.8
1,948.0
Investment return
144.8
119.7
Profit for the year
479.5
387.0
Total comprehensive income
479.5
387.0
Gross claims ratio
52.7%
51.5%
Net claims ratio
51.6%
51.3%
Expenses ratio:
- Acquisition ratio
29.9%
29.5%
- Administrative Expense ratio
4.6%
5.5%
Combined operating ratio
86.1%
86.3%
Investment return, on average invested balances
5.0%
5.1%
1
The gross claims ratio is the ratio of gross claims incurred to gross premiums earned gross of reinsurance and acquisition costs.
2
The net claims ratio is the ratio of net claims incurred to premiums earned net of reinsurance and gross of acquisition costs.
3
The expense ratios are the ratios of the acquisition cost and operating expenses to earned premiums net of reinsurance and
gross of brokerage and commissions.
4
The combined ratio is the ratio of net claims incurred, acquisition costs and net operating expenses to net premiums earned.
5
Investment return, on average invested balances, is calculated as the combined investment income for the period, excluding
investment management expenses, divided by the average of the opening and closing investments and cash.
Report of the Directors of the Managing Agent
CMA
Syndicate 4444 Annual Report & Accounts 31 December 2025
Page 5 of 51
Syndicate 4444 has delivered another record profit of $479.5m for the year ended 31 December
2025 (2024: $387.0m profit) with a combined ratio of 86.1% (2024: 86.3%). The full results of
the Syndicate are set out on pages 13 and 14.
Gross written premium of $3,870m (2024: $3,159m) represents an increase of 22.5% on the
prior year and follows two consecutive years of sustained profitable growth of over 20%,
establishing Syndicate 4444 as the largest syndicate in the Lloyd’s market. The increase in
premium over recent years has been timed in a rising (re)insurance market, aligned with our
business strategy of organic and new business generation across all existing product lines. This
has also been supported by the development of our Portfolio Solutions business, a key strategic
initiative to build our follow play, with Syndicate 4444 establishing itself as the lead underwriter
on a significant market facility in the second half of 2025. In terms of rating environment, we
continue to see technical pricing adequacy across most lines of business, justifying our appetite
to grow our market share in a number of areas, however, at a different pace compared to prior
years given the market cycle.
Ceded premium of $1,362.5m (2024: $894.9m) has increased on the prior year, equating to 35%
of gross written premium (2024: 28%), largely due to the placement of a new strategic whole
account quota share (“WAQS”) covering all our insurance lines of business and supported by
prime reinsurers. This reinsurance placement is a core element to our underwriting strategy to
build partnerships with reinsurers to benefit from their market intelligence, tools and expertise to
optimise our portfolio but also help to mitigate risk and manage volatility of events faced by the
Syndicate.
The combined net loss ratio of 51.6% shows a slight deterioration on the prior year (2024: 51.3%)
driven by non-natural catastrophe (‘cat’) experience, where we have seen a higher frequency of
large losses within Natural Resources and US Professional Lines, marginally offset by
favourable attritional prior year development.
A largely benign US windstorm season along with
favourable prior year cat development enabled the Syndicate to absorb losses from the LA
Wildfires ($48m net), Hurricane Melissa ($23m net) and Myanmar Earthquake ($14m net),
resulting in an overall cat loss ratio of 5.7% (2024: 9.3%).
The Syndicate’s total expense ratio was 34.5% for the year (2024: 35.0%). The slight uptick in
the acquisition ratio was driven by the increase in ceded premiums from our new WAQS.
However, the increase was more than offset by a reduction in the Syndicate’s operating expense
ratio as our growth in net earned premium far exceeded proportional increases in our operating
expenses. Furthermore, a decision to hedge our non-USD expenses at the beginning of the year
reduced the impact of currency fluctuations on the expense ratio.
A strong investment result of $144.8m (2024: $119.7m) for the year representing a net
investment return of 5.0% (2024: 5.1%) significantly contributed to the Syndicate profit of
$479.5m. The investment result benefitted from some positive mark-to-market gains as yields
fell across a number of currencies and assets under management increased over the period.
The 2023 year of account of Syndicate 4444 closed with a profit of $425.0m representing a profit
of 17.5% on managed capacity. The 2025 year of account is forecast to be profitable, with a
forecast range of 10% to 20% of managed capacity.
Business environment
The operating environment for our underwriters remains dynamic and premium rates are
softening as competition builds following strong results across the industry in recent years.
Nonetheless, pricing remained adequate across all our key classes of business. Following a
quieter than normal North-Atlantic hurricane season, the renewal season at 1st January was
competitive, however, within our expectations.
Report of the Directors of the Managing Agent
CMA
Syndicate 4444 Annual Report & Accounts 31 December 2025
Page 6 of 51
Strategy
Our strategy remains to steadfast in taking an ambitious yet disciplined approach to growing an
International Specialty and P&C (re)insurer, focusing on areas where we possess or can achieve
a distinct competitive advantage. We strive to be an organisation driven by empowered and
accountable people, underpinned by digital innovation and analytical expertise. Our aim is to
support people, community, business and environmental resilience.
In 2024, we introduced our Strategy Framework (“the Framework”), which serves as our internal
guide for products and as a result portfolio building. This framework ensures that our strategy is
both deliberate and sustainable, taking into account the rating environment and market cycles
for delivering strong underwriting profit across our portfolio. Our Framework acts as our ‘north
star’ as we navigate through the development of our business.
Throughout 2025, we have made significant strides in aligning our operations with strategic
goals:
-
We have adopted an agile approach to AI, which supports our overarching strategy,
mission, and purpose.
-
We have established data-driven analytics and portfolio management practices to
enhance decision-making and execution.
-
We have opened our Centre of Operational Excellence, our new permanent office in
Manchester, UK, where we are redesigning how our operations, technology and data
teams work together.
-
We have built out our Talent Manifesto to ensure people and culture remain at the heart of
our business.
Canopius remains committed to fostering a first-class culture that attracts, retains and develops
exceptional talent. We take pride in the positive and winning, employee-led culture we have
cultivated, which empowers our people and allows them to strive as individuals. We firmly believe
this culture is key to building a business which delivers profitable, sustainable results.
Principal risks and uncertainties
The process of risk acceptance and risk management is addressed through a framework of
policies, procedures and internal controls. Policies are subject to CMA’s Board (“Board”)
approval and ongoing review by management, risk management and internal audit. The Audit
Committee is responsible for satisfying itself that a proper internal control framework exists to
manage financial risks and that controls operate effectively.
CMA’s governance structure ensures a clear definition of responsibility for the management and
oversight of the risks faced by the business. CMA has established an Enterprise Risk
Management (“ERM”) framework that is designed to identify, assess, measure, mitigate, monitor
and report all material financial and non-financial risks.
The managing agent has identified the following principal risks and uncertainties facing the
Syndicate as detailed in Note 5 to the financial statements (management of risk):
•
Insurance risk
•
Financial risk
i.
Market risk
ii.
Credit risk
iii.
Currency risk
iv.
Liquidity risk
•
Group risk
•
Operational and regulatory risk
•
Climate change risk
Future developments
Syndicate 4444’s allocated capacity for the 2026 year of account has increased to £2,650m
(2025: £2,550m).
Report of the Directors of the Managing Agent
CMA
Syndicate 4444 Annual Report & Accounts 31 December 2025
Page 7 of 51
Going concern
Syndicate 4444 has commenced underwriting of the 2026 year of account underpinned by
capital provided by existing members of Syndicate 4444 and a Syndicate Business Forecast
(‘SBF’) approved by the Board and Lloyd’s. On this basis the directors have determined the
Syndicate continues to be a going concern and have adopted this basis of preparation.
Directors
The directors of the managing agent who served from 1 January 2025 to the date of this report
are shown on page 3. None of the directors had an allocated premium limit on the Syndicate, on
either an unlimited or limited liability basis, for any of the 2023 to 2025 years of account.
Statement of disclosure of information to auditors
In the case of each of the persons who are directors of the managing agent at the time the report
is approved:
•
So far as the director is aware, there is no relevant audit information, being information
needed by the Syndicate’s auditor in connection with the auditor’s report, of which the
auditor is unaware; and
•
Having made enquiries of fellow directors of the agency and the Syndicate’s auditor,
each director has taken all the steps that he or she ought to have taken as a director to
become aware of any relevant audit information and to establish that the Syndicate’s
auditor is aware of that information.
Statement of Managing Agent’s Responsibilities
The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations
2008 require the directors of the managing agent to prepare syndicate annual accounts each
year which give a true and fair view, in accordance with applicable law and United Kingdom
Generally Accepted Accounting Practice, of the state of affairs of the syndicate and of the profit
or loss of the syndicate for that period. In preparing those financial statements, the managing
agent is 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 syndicate accounts; and
•
Prepare the syndicate accounts on the basis that the syndicate will continue to write
future business unless it is inappropriate to do so.
The managing agent confirms that it has complied with the above requirements in preparing the
syndicate accounts. The directors of the managing agent are responsible for keeping proper
accounting records that disclose with reasonable accuracy at any time the financial position of
the syndicate and enable it to ensure that the syndicate accounts comply with the 2008
Regulations. The managing agent is also responsible for safeguarding the assets of the
syndicate and hence for taking reasonable steps for the prevention and detection of fraud and
other irregularities.
The managing agent is responsible for the preparation and review of 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 managing agent is responsible for the maintenance and
integrity of the corporate and financial information included on the business’ website. Legislation
in the United Kingdom governing the preparation and dissemination of annual accounts may
differ from legislation in other jurisdictions.
We confirm that to the best of our knowledge the syndicate accounts, including the iXBRL
tagging applied to these accounts, comply with the requirements of the Lloyd’s Syndicate
Accounts Instructions version 3.1 as modified by the Frequently Asked Questions Version 1.1
issued by Lloyd’s (‘the Syndicate Accounts Instructions’).
Report of the Directors of the Managing Agent
CMA
Syndicate 4444 Annual Report & Accounts 31 December 2025
Page 8 of 51
Independent Auditors
In accordance with section 14(2) of Schedule 1 of the Lloyd’s Regulations 2008, the auditors,
Ernst & Young LLP, will be deemed to be reappointed and therefore continue in office.
Syndicate annual general meeting
In accordance with the Syndicate Meetings (Amendment No. 1) Byelaw (No. 18 of 2000) the
managing agent does not propose to hold a syndicate annual meeting this year. Members may
object to this proposal, or the intention to reappoint the auditors for a further 12 months, within
21 days of this notice. Any objections must be made in writing to the managing agent.
By order of the Board of the managing agent.
James Pearson
Chief Financial Officer
London
19 February 2026
Independent Auditor’s Report to the Members of
Syndicate 4444
for the year ended 31 December 2025
CMA
Syndicate 4444 Annual Report & Accounts 31 December 2025
Page 9 of 51
Opinion
We have audited the syndicate annual accounts of syndicate 4444 (‘the syndicate’) for the year
ended 31 December 2025 which comprise the Income Statement, the Statement of Changes
in Members’ Balances, the Statement of Financial Position, the Statement of Cash Flows and
the related notes 1 to 32, including a summary of significant accounting policies. The financial
reporting framework that has been applied in their preparation is applicable law including The
Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008,
United Kingdom Accounting Standards including FRS 102 ‘The Financial Reporting Standard
applicable in the UK and Republic of Ireland’ and FRS 103 ‘Insurance Contracts’ (‘United
Kingdom Generally Accepted Accounting Practice’), and Section 1 of the Lloyd’s Syndicate
Accounts Instructions V3.1 as modified by the Frequently Asked Questions Version 1.1 issued
by Lloyd’s (‘the Syndicate Accounts Instructions’).
In our opinion, the syndicate annual accounts:
give a true and fair view of the syndicate’s affairs as at 31 December
2025 and of its profit
for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted
Accounting Practice; and
have been prepared in accordance with the requirements of The Insurance Accounts
Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 and the Syndicate
Accounts Instructions.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs
(UK)), The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts)
Regulations 2008, the Syndicate Accounts Instructions, and other applicable law. Our
responsibilities under those standards are further described in the Auditor’s responsibilities for
the audit of the syndicate annual accounts section of our report. We are independent of the
syndicate in accordance with the ethical requirements that are relevant to our audit of the
syndicate annual accounts in the UK, including the FRC’s Ethical Standard as applied to other
entities of public interest, and we have fulfilled our other ethical responsibilities in accordance
with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.
Conclusions relating to going concern
In auditing the syndicate annual accounts, we have concluded that the managing agent’s use
of the going concern basis of accounting in the preparation of the syndicate annual accounts is
appropriate.
Based on the work we have performed, we have not identified any material uncertainties
relating to events or conditions that, individually or collectively, may cast significant doubt on
the syndicate’s ability to continue as a going concern for a period of 12 months from when the
syndicate annual accounts are authorised for issue.
Our responsibilities and the responsibilities of the directors of the managing agent with respect
to going concern are described in the relevant sections of this report. However, because not all
future events or conditions can be predicted, this statement is not a guarantee as to the
syndicate’s ability to continue as a going concern.
Independent Auditor’s Report to the Members of
Syndicate 4444
for the year ended 31 December 2025
CMA
Syndicate 4444 Annual Report & Accounts 31 December 2025
Page 10 of 51
Other information
The other information comprises the information included in the Annual Report and Accounts,
other than the syndicate annual accounts and our auditor’s report thereon. The directors of the
managing agent are responsible for the other information contained within the Annual Report
and Accounts.
Our opinion on the syndicate annual accounts does not cover the other information and, except
to the extent otherwise explicitly stated in this report, we do not express any form of assurance
conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other
information is materially inconsistent with the syndicate annual accounts or our knowledge
obtained in the course of the audit or otherwise appears to be materially misstated. If we identify
such material inconsistencies or apparent material misstatements, we are required to determine
whether this gives rise to a material misstatement in the syndicate annual accounts themselves.
If, based on the work we have performed, we conclude that there is a material misstatement of
the other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by The Insurance Accounts Directive (Lloyd’s
Syndicate and Aggregate Accounts) Regulations 2008
In our opinion, based on the work undertaken in the course of the audit:
the information given in the managing agent’s report for the financial year in which the
syndicate annual accounts are prepared is consistent with the syndicate annual
accounts; and
the managing agent’s report has been prepared in accordance with applicable legal
requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the syndicate and its environment obtained
in the course of the audit, we have not identified material misstatements in the managing
agent’s report.
We have nothing to report in respect of the following matters where The Insurance Accounts
Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 requires us to report
to you, if in our opinion:
the managing agent in respect of the syndicate has not kept adequate accounting
records; or
the syndicate annual accounts are not in agreement with the accounting records; or
certain disclosures of the 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.
Responsibilities of the directors of the managing agent
As explained more fully in the Statement of Managing Agent’s Responsibilities set out on page
7, the directors of the managing agent are responsible for the preparation of the syndicate
annual accounts and for being satisfied that they give a true and fair view, and for such internal
control as they determine is necessary to enable the preparation of the syndicate annual
accounts that are free from material misstatement, whether due to fraud or error.
Independent Auditor’s Report to the Members of
Syndicate 4444
for the year ended 31 December 2025
CMA
Syndicate 4444 Annual Report & Accounts 31 December 2025
Page 11 of 51
Responsibilities of the directors of the managing agent (continued)
In preparing the syndicate annual accounts, the directors of the managing agent are
responsible for assessing the syndicate’s ability to continue in operation, disclosing, as
applicable, matters related to its ability to continue in operation and using the going concern
basis of accounting unless the directors of the managing agent either intends to cease to
operate the syndicate, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the syndicate annual accounts
Our objectives are to obtain reasonable assurance about whether the syndicate annual
accounts as a whole are free from material misstatement, whether due to fraud or error, and to
issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will
always detect a material misstatement when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these syndicate
annual accounts.
Explanation as to what extent the audit was considered capable of detecting
irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We
design procedures in line with our responsibilities, outlined above, to detect irregularities,
including fraud. The risk of not detecting a material misstatement due to fraud is higher than
the risk of not detecting one resulting from error, as fraud may involve deliberate concealment
by, for example, forgery or intentional misrepresentations, or through collusion.
The extent to which our procedures are capable of detecting irregularities, including fraud, is
detailed below. However, the primary responsibility for the prevention and detection of fraud
rests with both those charged with governance of the managing agent and management.
Our approach was as follows:
•
We obtained a general understanding of the legal and regulatory frameworks that are
applicable to the syndicate and determined that the most significant are direct laws and
regulations related to elements of Lloyd’s Byelaws and Regulations, and the financial
reporting framework (UK United Kingdom Generally Accepted Accounting Practice), and
requirements referred to by Lloyd’s in the Syndicate Accounts instructions. Our
considerations of other laws and regulations that may have a material effect on the
syndicate annual accounts included permissions and supervisory requirements of Lloyd’s
of London, the Prudential Regulation Authority (‘PRA’) and the Financial Conduct Authority
(‘FCA’).
•
We obtained a general understanding of how the syndicate is complying with those
frameworks by making enquiries of management, internal audit, and those responsible for
legal and compliance matters of the syndicate. In assessing the effectiveness of the control
environment, we also reviewed significant correspondence between the syndicate, Lloyd’s
of London and other UK regulatory bodies; reviewed minutes of the Board and the Audit
Committee of the managing agent; and gained an understanding of the managing agent’s
approach to governance.
•
For direct laws and regulations, we considered the extent of compliance with those laws
and regulations as part of our procedures on the related syndicate annual accounts’ items.
•
For both direct and other laws and regulations, our procedures involved: making enquiries
of the directors of the managing agent and senior management for their awareness of any
non-compliance of laws or regulations, enquiring about the policies that have been
established to prevent non-compliance with laws and regulations by officers and
employees, enquiring about the managing agent’s methods of enforcing and monitoring
compliance with such policies, and inspecting significant correspondence with Lloyd’s, the
PRA and the FCA.
Independent Auditor’s Report to the Members of
Syndicate 4444
for the year ended 31 December 2025
CMA
Syndicate 4444 Annual Report & Accounts 31 December 2025
Page 12 of 51
Explanation as to what extent the audit was considered capable of detecting
irregularities, including fraud (continued)
•
The syndicate operates in the insurance industry which is a highly regulated environment.
As such the Senior Statutory Auditor considered the experience and expertise of the
engagement team to ensure that the team had the appropriate competence and
capabilities, which included the use of specialists where appropriate.
•
We assessed the susceptibility of the syndicate’s annual accounts to material
misstatement, including how fraud might occur by considering the controls that the
directors of the managing agent have established to address risks identified by them, or
that otherwise seek to prevent, deter or detect fraud. We also considered areas of
significant judgement, complex transactions, performance targets, economic or external
pressures and the impact these have on the control environment. The fraud risk was
considered to be higher within the valuation of gross and net incurred but not reported
reserves and valuation of estimated premium income.
Our audit procedures included:
•
Reviewing accounting estimates for evidence of management bias. Supported by
our Actuaries we assessed if there were any indicators of management bias in the
valuation of gross and net incurred but not reported reserves and the valuation of
estimated premium income.
•
Evaluating the business rationale for significant and/or unusual transactions.
•
Testing the appropriateness of journal entries recorded in the general ledger,
particularly in respect of judgemental areas including gross and net incurred but
not reported reserves and estimated premium income.
A further description of our responsibilities for the audit of the annual accounts is located on
the Financial Reporting Council’s website at https://www.frc.org.uk/auditorsresponsibilities.
This description forms part of our auditor’s report.
Other matter
Our opinion on the syndicate annual accounts does not cover the iXBRL tagging included within
these syndicate annual accounts, and we do not express any form of assurance conclusion
thereon.
Use of our report
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.
Our audit work has been undertaken so that we might state to the syndicate’s members those
matters we are required to state to them in an auditor’s report and for no other purpose. To
the fullest extent permitted by law, we do not accept or assume responsibility to anyone other
than the syndicate and the syndicate’s members as a body, for our audit work, for this report,
or for the opinions we have formed.
Andrew Blackmore (Senior statutory auditor)
for and on behalf of Ernst & Young LLP, Statutory Auditor
London
19 February 2026
Income Statement: Technical Account – General
Business
for the year ended 31 December 2025
CMA
Syndicate 4444 Annual Report & Accounts 31 December 2025
Page 13 of 51
2025
2024
Notes
$000
$000
$000
$000
Earned premiums, net of reinsurance
Gross premiums written
7
Outward reinsurance premiums
(1,362,547 )
(894,863 )
Premiums written, net of reinsurance
Change in unearned premiums:
Change in the gross provision for unearned
premiums
26
(299,580 )
(341,104 )
Change in the provision for unearned premiums
reinsurers’ share
26
Net change in the provision for unearned premiums
(116,638 )
(316,590 )
Earned premiums, net of reinsurance
Allocated investment return transferred from the non-
technical account
13
Claims incurred, net of reinsurance
Claims paid
Gross amount
(1,320,214 )
(1,149,485 )
Reinsurers’ share
Net claims paid
(887,165 )
(661,098 )
Change in the provision for claims
Gross amount
26
(562,309 )
(300,947 )
Reinsurers’ share
26
(37,651 )
Net change in provision for claims
(347,445 )
(338,598 )
Claims incurred, net of reinsurance
(1,234,610 )
(999,696 )
Net operating expenses
10
(824,994 )
(680,683 )
Balance on the technical account - general
business
All of the above amounts are derived from continuing operations.
Income Statement: Non-technical Account
for the year ended 31 December 2025
CMA
Syndicate 4444 Annual Report & Accounts 31 December 2025
Page 14 of 51
2025
2024
Notes
$000
$000
Balance on the technical account - general business
Investment income
13
Realised gains on investments
13
Unrealised gains on investments
13
Investment expenses and charges
13
(3,625 )
(2,673 )
Total investment return
Allocated investment return transferred to the general
business technical account
(144,767 )
(119,747 )
Gain/(loss) on foreign exchange
(383 )
Non-technical other income
Profit for the financial year
Total comprehensive income
All of the above amounts are derived from continuing operations.
The accompanying notes from page 18 to 51 form an integral part of these financial statements.
Statement of Change in Members’ Balances
for the year ended 31 December 2025
2025
2024
Note
$000
$000
Members’ balances brought forward at 1 January
Total comprehensive income for the year
Payments of profit to members’ personal reserve funds
14
(324,977 )
(86,411 )
Members' agent fees
(113 )
(91 )
Members’ balances carried forward at 31 December
Statement of Financial Position – Assets
at 31 December 2025
CMA
Syndicate 4444 Annual Report & Accounts 31 December 2025
Page 15 of 51
2025
2024
Notes
$000
$000
$000
$000
Investments
Financial investments
15
Deposits with ceding undertakings
Reinsurers’ share of technical
provisions
Provision for unearned premiums
26
Claims outstanding
26
Debtors
Debtors arising out of direct insurance
operations
16
Debtors arising out of reinsurance
operations
17
Other debtors
18
Other assets
Cash at bank and in hand
19
Other assets - other
20
Prepayments and accrued income
Deferred acquisition costs
25
Other prepayments and accrued
income
Total assets
Statement of Financial Position – Liabilities
at 31 December 2025
CMA
Syndicate 4444 Annual Report & Accounts 31 December 2025
Page 16 of 51
2025
2024
Notes
$000
$000
$000
$000
Capital and reserves
Members’ balances
2
Total Capital and Reserves
Technical provisions
Provision for unearned premiums
26
Claims outstanding
26
Creditors
Creditors arising out of direct
insurance operations
21
Creditors arising out of
reinsurance operations
22
Other creditors including taxation
and social security
23
Accruals and deferred income
24
Total liabilities
Total liabilities, Capital and reserves
The financial statements on pages 13 to 51 were approved by the Board of CMA on 18 February
2026 and were signed on its behalf by:
James Pearson
Chief Financial Officer
19 February 2026
Statement of Cash Flows
for the year ended 31 December 2025
CMA
Syndicate 4444 Annual Report & Accounts 31 December 2025
Page 17 of 51
2025
2024
$000
$000
$000
$000
Cash flows from operating activities
Profit for the financial year
Increase in gross technical
provisions
(Increase)/decrease in reinsurers'
share of
gross technical provisions
(455,936 )
Increase in debtors
(177,888 )
(288,339 )
Increase/(decrease) in
creditors
(187,608 )
Movement in other
assets/liabilities
(133,103 )
(47,918 )
Investment return
(144,767 )
(119,747 )
Foreign exchange
(2,305 )
Net cash flows from operating
activities
Cash flows from investing activities
Purchase of equity and debt
instruments
(1,648,914 )
(1,175,897 )
Sale of equity and debt instruments
Investment income received
Net cash outflows used in
investing activities
(520,033 )
(266,017 )
Cash flows from financing activities
Distribution of profit to members
(224,977 )
(86,411 )
Open year profit release
(100,000 )
Net cash outflows used in financing
activities
(324,977 )
(86,411 )
Net increase/(decrease) in cash and
cash equivalents
(10,177 )
Cash and cash equivalents at beginning of year
Foreign exchange on cash and cash
equivalents
(624 )
Cash and cash equivalents at end of year
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 4444 Annual Report & Accounts 31 December 2025
Page 18 of 51
1. Statement of compliance & basis of preparation
Syndicate 4444 is a syndicate at Lloyd’s managed by CMA that underwrites insurance and
reinsurance business in the London Market. The address of the Syndicate’s managing agent,
CMA, is Floor 29, 22 Bishopsgate, London EC2N 4BQ.
These financial statements have been prepared in compliance with United Kingdom Accounting
Standards, including Financial Reporting Standard 102, “The Financial Reporting Standard
applicable in the United Kingdom and Republic of Ireland” (“FRS102”), Financial Reporting
Standard 103, “Insurance Contracts” (FRS 103) and in accordance with the provisions of
Schedule 3 of the Large and Medium-sized Companies and Groups (Accounts and Reports)
Regulations relating to insurance companies. Furthermore, these financial statements comply
with the Insurance Accounts Directive (Lloyd's Syndicate and Aggregate Accounts) Regulations
2008 ("the 2008 Regulations") and the Lloyd’s Syndicate Accounts Instructions Version 3.1 as
modified by the Frequently Asked Questions Version 1.1 issued by Lloyd’s (‘the Syndicate
Accounts Instructions’). The directors of the managing agent have prepared the financial
statements on the basis that the Syndicate will continue to write future business.
The financial statements are prepared under the historical cost convention except for certain
financial instruments which are measured at fair value.
The financial statements are presented in US dollars, the functional and presentational currency,
and rounded to the nearest $’000.
Going concern
The Syndicate has financial resources to meet its financial needs and manages its portfolio of
insurance risk. The directors have continued to review the business plans, liquidity and
operational resilience of the Syndicate and are satisfied that the Syndicate is well positioned to
manage its business risks in the current economic environment. The Syndicate has commenced
underwriting on the 2026 year of account underpinned by capital provided by existing members
of the Syndicate and a Syndicate Business Forecast (‘SBF’) approved by the Board and Lloyd’s.
On this basis the directors have determined the syndicate continues to be a going concern, with
no intention to cease underwriting or cease operations of the Syndicate and continue to adopt
the going concern basis in preparing the annual report and financial statements.
2. Members’ balances and Funds at Lloyd’s (“FAL”)
The members’ balances on the balance sheet shows a surplus of $727.8m (2024: $573.5m).
The ability of the syndicate to meet its obligations as they fall due is underpinned by the
members’ Funds at Lloyd’s and the support provided by the Lloyd’s chain of security for any
members who are unable to meet their underwriting liabilities. FAL is further explained in Note
32.
3. Summary of significant accounting policies
a. Insurance contracts
Insurance contracts (including inwards reinsurance contracts) are defined as those that transfer
significant insurance risk. Insurance risk is considered significant if, and only if, an insured event
could cause an insurer to pay significant additional benefits above the premiums received and
interest earned thereon, excluding scenarios that lack commercial substance. Such contracts
remain insurance contracts until all rights and obligations are extinguished or expire.
Contracts that do not transfer significant insurance risk are accounted for as financial
transactions. The Syndicate adopts an annual basis of accounting for insurance contracts
whereby the incurred cost of claims, commission and related expenses are charged against the
earned proportion of premiums, net of reinsurance.
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 4444 Annual Report & Accounts 31 December 2025
Page 19 of 51
3. Summary of significant accounting policies (continued)
a. Insurance contracts (continued)
Gross premiums written, stated gross of acquisition costs and exclusive of premium taxes,
relates to business incepted during the year and adjustments to premiums booked in prior years
and includes estimates, based on underwriting estimates or past experience, of premiums due
but not yet receivable or notified to the Syndicate by intermediaries. Additional or return
premiums are treated as a re-measurement of the initial premium.
Unearned premiums represent the proportion of premiums written in the year that relate to
unexpired terms of policies in force at the balance sheet date, calculated by reference to the
expected incidence of risk over the period of cover.
‘Risks attaching’ outwards reinsurance premiums are accounted for with regard to the incidence
of risk of the premiums for the direct or inwards reinsurance business to which they relate.
Reinsurance contracts that operate on a ‘losses occurring’ basis are accounted for in full over
the period of coverage. The provision for reinsurers’ share of unearned premiums represents
that part of reinsurance premiums written which is estimated to be earned in the following
financial years.
There are a number of different types of business written by the Syndicate, including property,
liability and marine business, broadly categorised as either “short tail” or “long tail” business.
The Syndicate also writes reinsurance business. The characteristics of this business mirror those
of the underlying business ceded to the syndicate.
The accounting policies for insurance claims and claims settlement expenses are considered in
Note 4 (Critical accounting judgements and estimation uncertainty).
Short Tail Business
Property and accident and health business is generally “short tail”, whereby there is not a
significant delay between the occurrence of the claim and the claim being reported. The costs of
claims notified at the balance sheet date are estimated on a case-by-case basis to reflect the
individual circumstances of each claim. The ultimate expected cost of claims, including
provisions for claims incurred but not reported (“IBNR”), is projected from this data by reference
to statistics, which show how estimates of claims incurred in previous periods have developed
over time.
Longer tail business
Liability and marine claims are generally longer tail than for those of the other classes of business
described above and so a larger element of the claims provision relates to IBNR claims. Claims
estimates for business in this category are derived from a combination of loss ratio based
estimates and estimates based upon actual claims experience, using a predetermined formula
whereby greater weight is given to actual claims experience as time passes.
The initial estimates of the claims provisions are based on the experience of previous years and
benchmarks adjusted for factors such as premium rate changes and claims inflation. For liability
claims, the assessment of claims is particularly sensitive to the level of court awards and to the
development of legal precedent on matters of contract and tort. The liability classes of business
are also subject to the emergence of new types of latent claims.
b. Unexpired risk reserves
At each balance sheet date tests are performed to ensure the adequacy of the unearned
premium reserve, net of associated deferred acquisition costs, to cover future claims liabilities.
In performing these tests, estimates of future premiums and claims cash flows, claims handling
expenses and investment income from the assets backing such liabilities are considered and
compared to the balances in the unearned premium reserve and deferred acquisition costs.
Provision is made for any deficiencies by establishing an unexpired risk reserve.
Unexpired risk surpluses and deficits are offset where business classes are managed together
and a provision is made if an aggregate deficit arises. Unexpired risk reserves, where relevant,
are included within “claims outstanding” in the balance sheet.
At 31 December 2025 and 31 December 2024 the Syndicate did not have an unexpired risk
provision.
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 4444 Annual Report & Accounts 31 December 2025
Page 20 of 51
3. Summary of significant accounting policies (continued)
c. Deferred acquisition costs
Acquisition costs comprise costs arising from the inception of insurance contracts. They include
both direct costs, such as intermediary commissions and indirect costs, such as the
administrative expenses associated with the issuing of policies.
Deferred acquisition costs represents a proportion of commission and other acquisition costs
that relate to policies in force at the period-end, that cover subsequent reporting periods.
These are amortised over the period in which the related premiums are earned.
d. Reinsurance to close (“RITC”)
Each syndicate’s underwriting year of account is normally closed after the end of the third year
by means of reinsurance into the following underwriting year of account, which reinsures all
liabilities for the closed year in return for a premium determined by the Syndicate’s managing
agent.
The acceptance of third party RITC is not reported as income but recognised as a transfer of
assets and liabilities.
e. Outwards reinsurance contracts
Outwards reinsurance contracts are contracts entered into by the Syndicate with reinsurers
whereby the Syndicate may recover a proportion of losses on contracts written by the Syndicate.
Contracts that do not transfer significant insurance risk are accounted for as financial
transactions.
The benefits to which the Syndicate is entitled under its outwards reinsurance contracts are
recognised as reinsurance assets. 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 insurance contracts. These balances are based on calculated
amounts of outstanding claims and projections for IBNR, having regard to the reinsurance
programme in place for the class of business and the claims experience for the period, net of
estimated irrecoverable amounts after assessing the current security rating of the reinsurer
involved. Reinsurance liabilities are primarily premiums payable for reinsurance contracts.
Reinsurance contracts that contain a retroactive element but continue to transfer significant
insurance risk are recognised as reinsurance contracts in full and are not bifurcated.
The Syndicate assesses its reinsurance assets for impairment. If there is evidence of
impairment, then the carrying amount is reduced to its recoverable amount and the impairment
loss is recognised in the income statement.
f. Receivables and payables related to insurance contracts
Receivables and payables include amounts due to and from agents, brokers and insurance
contract holders. If there is evidence that the insurance receivable is impaired, the Syndicate
reduces the carrying amount of the insurance receivable accordingly and recognises that
impairment loss in the profit and loss account.
g. Financial assets
The Syndicate states financial assets at fair value.
The Syndicate classifies its financial assets into the following categories: financial assets at fair
value through profit and loss, loans and receivables and derivative financial instruments. There
are no assets classified as available for sale.
The classification depends on the purpose for which the investments were acquired.
Management determines the classification of its investments at initial recognition.
Financial assets and liabilities are offset and the net amount reported in the balance sheet only
when there is a legally enforceable right to offset the recognised amounts and there is an
intention to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 4444 Annual Report & Accounts 31 December 2025
Page 21 of 51
3. Summary of significant accounting policies (continued)
g. Financial assets (continued)
(i) Financial assets at fair value through profit and loss
The Syndicate classifies its investments at fair value through profit and loss.
Purchases and sales of investments are accounted for at their fair values (normally their cost of
acquisition or proceeds of disposal) on the trade date, which is the date the Syndicate commits
to purchase or sell the assets.
The fair value of quoted investments is based on quoted bid prices. Realised and unrealised
gains and losses arising from the changes in fair values are included in investment return in the
income statement in the period in which they arise. Unquoted investments are initially carried at
cost as the best estimate of fair value, which is adjusted using appropriate valuation techniques
and having regard to subsequent events or changes in circumstances.
Realised gains and losses on investments carried at market value are calculated as the
difference between sale proceeds and purchase price. Unrealised gains and losses on
investments represent the difference between the valuation at the balance sheet date and their
valuation at the previous balance sheet date, or purchase price, if acquired during the year,
together with the reversal of unrealised gains and losses recognised in earlier accounting periods
in respect of investment disposals in the current period.
Investment return is initially recorded in the non-technical account. A transfer is made from the
non-technical account to the general business technical account.
Investment return has been wholly allocated to the technical account as all investments relate to
the technical account.
(ii) Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments
that are not quoted in an active market, are not intended to be sold in the short term and do not
fall into the other categories of financial assets as described above. Loans and receivables are
measured at fair value. Appropriate allowances for estimated irrecoverable amounts are
recognised in the income statement when there is objective evidence that the Syndicate will not
be able to collect all amounts due according to their original terms. These are reversed if the
payment is received. Receivables arising from insurance contracts are classified in this category
and are reviewed for impairment as part of the impairment review of loans and receivables.
(iii) Deposits with ceding undertakings
The Syndicate advances funds to ceding undertakings for the settlement of claims. These are
measured at cost less allowance for impairment. Deposits include funds held by Lloyd’s Europe
on behalf of the Syndicate to settle Part VII claims.
(iv) Derivative financial instruments
The Syndicate enters into exchange traded derivatives and foreign currency forward contracts
from time to time to manage its exposures to interest rate risk and foreign exchange rate volatility.
These contracts are initially recorded at cost and revalued to their fair value at each period end
by reference to the rates of exchange ruling at the balance sheet date. Any gains or losses on
the contracts are included in the non-technical account.
(v) Cash and cash equivalents
Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-
term highly liquid investments with original maturities of three months or less and bank
overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
h. Foreign currencies
In accordance with FRS102, the functional currency is the currency of the primary economic
environment in which the Syndicate operates. The functional currency and presentational
currency for Syndicate 4444 is the US Dollar. FRS 102 requires all foreign currency transactions
to be translated into the functional currency at the transactional rate of exchange.
Transactions in Sterling, Canadian dollars, Euros and Australian dollars are translated to US
Dollars at the average rates of exchange for the period as these approximate the actual rate.
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 4444 Annual Report & Accounts 31 December 2025
Page 22 of 51
3. Summary of significant accounting policies (continued)
h. Foreign currencies (continued)
Underwriting transactions denominated in other foreign currencies are included at the rate of
exchange ruling at the date the transaction is processed.
At the period end, the monetary foreign currency items are translated to US Dollars at the closing
rate with any difference being recorded in the non-technical account. For the purposes of
applying the requirements of Section 30 Foreign Currency Translation of FRS 102, all assets
and liabilities arising from insurance contracts are treated as monetary items.
i. Taxation
Under Schedule 19 of the Finance Act 1993 managing agents are not required to deduct basic
rate income tax from trading income. In addition, all UK basic rate income tax deducted from
syndicate investment income is recoverable by managing agents and consequently the
distribution made to members is gross of tax. Capital appreciation falls within trading income and
is also distributed gross of tax.
No provision has been made for any United States federal income tax payable on underwriting
results or investment earnings. Any payments on account made by the Syndicate during the year
have been included in the balance sheet under the heading “other debtors”.
No provision has been made for any other overseas tax payable by members on underwriting
results.
j. Cash flow hedge reserve
Derivatives are initially recorded at fair value on the date that a derivative contract is entered
into, and they are subsequently remeasured to their fair value at the end of each reporting period.
The accounting for subsequent changes in fair value depends on whether the derivative is
designated as a hedging instrument and, if so, the nature of the item being hedged.
The Syndicate designates certain derivatives as hedges of a particular risk associated with the
cash flows of highly probable forecast transactions.
Specifically, the Syndicate designates foreign currency forward contracts as hedges of the
currency risk associated with its Sterling operating expenses. This does not include insurance
contract related expense cash flows such as claims, commissions or outwards reinsurance
premiums.
At inception of the hedge relationship, the Syndicate documents the economic relationship
between hedging instruments (foreign currency forwards) and hedged items (Sterling expense
cash flows), including whether changes in the cash flows of the hedging instruments are
expected to offset changes in the cash flows of the hedged items. The Syndicate documents its
risk management objective and strategy for undertaking its hedge transactions.
The effective portion of changes in the fair value of derivatives that are designated and qualify
as cash flow hedges is recognised as ‘cash flow hedge reserve’ within other comprehensive
income within members’ balances. The gain or loss relating to the ineffective portion is
recognised immediately in profit or loss, within unrealised gains or losses on investments in the
non-technical account.
Amounts accumulated in members’ balances are reclassified to net operating expenses in profit
or loss in the periods when the hedged item affects profit or loss.
When a hedging instrument expires, or is sold or terminated, or when a hedge no longer meets
the criteria for hedge accounting, any cumulative deferred gain or loss in members’ balances at
that time remains in equity until the forecast transaction occurs. When the forecast transaction
is no longer expected to occur, the cumulative gain or loss that was reported in members’
balances is immediately reclassified to profit or loss.
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 4444 Annual Report & Accounts 31 December 2025
Page 23 of 51
4. Critical accounting judgements and estimation uncertainty
Insurance claims and claims settlement expenses
Insurance claims and claims settlement expenses comprise claims and related expenses paid
in the year and changes in the provisions for outstanding claims, including provisions for IBNR
and related expenses, together with any other adjustments to claims from prior years. See Note
26.
Provision is made at the period-end for the estimated cost of claims incurred but not settled at
the balance sheet date, including the cost of claims incurred but not yet reported to the
Syndicate. The estimated cost of claims includes expenses to be incurred in settling claims and
a deduction for the expected value of salvage and other recoveries. There is inherent uncertainty
in establishing claims provisions and it is likely that the final outcome will prove to be different
from the original estimate of the liability. Adjustments to the amounts of claims provisions
established in prior years are included in the financial statements in the period in which the
adjustments are made. The claims provisions are reviewed regularly.
Estimating claims IBNR is inherently more uncertain than the cost of claims notified, for which
more information about the claim event is generally available.
Classes of business where the IBNR proportion of the total claims provisions is high will typically
display greater variations between initial estimates and final outcomes because of the greater
degree of difficulty of estimating these reserves.
Classes of business where claims are typically reported relatively quickly after the claim event
tend to display lower levels of volatility in the claims provisions.
Where possible the Syndicate adopts multiple techniques to estimate the required level of claims
provisions. This assists in giving greater understanding of the trends inherent in the data being
projected. The projections given by the various methodologies also assist in setting the range of
possible outcomes. The most appropriate estimation technique is selected taking into account
the characteristics of the business class and the extent of the development of each underwriting
year of account.
Allowance is made for changes or uncertainties which may create distortions in the underlying
statistics or which might cause the cost of unsettled claims to increase or reduce when compared
with the cost of previously settled claims including:
•
changes in the business environment or processes which might accelerate or slow down
the development and/or recording of paid or incurred claims compared with the statistics
from prior periods;
•
changes in the legal environment;
•
the effects of inflation;
•
changes in the mix of business;
•
the impact of large losses; and
•
movements in industry benchmarks.
In estimating the cost of notified but not paid claims the Syndicate has regard to the claim
circumstance as reported, any information available from loss adjusters and information on the
cost of settling claims with similar characteristics in previous periods.
Large claims and catastrophe events impacting each relevant business class are generally
assessed separately, being measured on a case-by-case basis or projected separately in order
to allow for the possible distortive effect of the development and incidence of these large claims.
Claims provisions are calculated gross of any reinsurance recoveries. A separate estimate is
made of the amounts that will be recoverable from reinsurers. An assessment is also made of
the recoverability of reinsurance recoveries having regard to available data on the financial
strength of each of the reinsurance companies.
Claims reserved as non-life annuities are discounted for investment earnings that may be
expected to arise in the future on funds retained to meet the future liabilities. All other claims
provisions are undiscounted.
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 4444 Annual Report & Accounts 31 December 2025
Page 24 of 51
4. Critical accounting judgements and estimation uncertainty (continued)
Premium estimates
Gross written premiums include an estimate of the total premiums expected to be received under
each insurance and reinsurance contract. Revenue recognised on policies written through
contracts with third parties, such as binding authorities and line slips, is estimated in full at the
inception of such contracts and, therefore, this estimate is judgemental. Further adjustments to
estimates from previous years are also included in the reported premiums for the relevant
underwriting years.
Reinstatement premiums are estimated in accordance with the contract terms and recorded
based upon paid losses and case reserves.
Premium estimation uses expert judgement, the quality of the estimate being influenced by the
nature and maturity of the portfolio, availability of timely data, relevant underwriting input to the
estimating process and management review. Gross written premium estimates are reviewed
regularly using underwriter estimates and actuarial projections. The amount of estimated future
premium that remains in insurance receivables is disclosed in Note 16 and 17.
The level of premium earned is made by reference to the exposure length of the type of business
written and the pattern of insurance services provided by the contract.
A large proportion of the business written by the Syndicate has a duration of one year, with
business attaching to a specific year of account covering. Where classes have a much longer
exposure period, the earnings pattern reflects the exposure, in some cases up to 10
years. Judgement is required in determining whether the pattern of insurance service provided
by a contract requires amortisation of unearned premium on a basis other than time
apportionment.
Financial investments
The Syndicate uses prices provided by third party suppliers, investment managers and
counterparty banks in determining the fair value of financial assets. Depending on the methods
and assumptions used, for example, in the fair valuation of Level 2 and Level 3 financial assets,
the fair valuation can be subject to estimation uncertainty. These methods and assumptions are
described in Note 5 below.
5. Management of risk
The Syndicate has identified the principal risks and uncertainties arising from its activities and
has established policies and procedures to manage these items in accordance with its risk
appetite. The sections below explain how the Syndicate defines and manages each category of
risk.
a.
Insurance risk
Insurance risk is defined as the risk of fluctuations in the timing, frequency and severity of insured
events and claims settlements, relative to expectations. Syndicate 4444’s exposure to insurance
risk arises from underwriting/pricing, insurance concentrations, reserving and reinsurance. The
Board of CMA seeks to mitigate insurance risk by analysing historical pricing and claims
experience, setting a tolerance to concentration risk, monitoring performance, and conducting
in-house actuarial reviews of claims provisions, independent of the underwriting teams.
The Syndicate has formal controls in place to ensure that business is underwritten in a controlled
environment by reference to both the annual business plan and in line with underwriting policy.
Preventative controls include underwriting authority limits which are agreed and signed off by
the Active Underwriter, divisional and Group underwriting guidelines and benchmark ratings for
all underwriting divisions. Detection controls include exception reports where authority limits are
exceeded, expert review procedures, peer reviews and internal audit reviews.
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 4444 Annual Report & Accounts 31 December 2025
Page 25 of 51
5. Management of risk (continued)
a.
Insurance risk (continued)
Syndicate 4444 is exposed to potentially significant losses arising from natural catastrophe
events such as windstorm, earthquake, flood or pandemic in addition to man-made perils. CMA
quantifies catastrophe risk exposures using proprietary modelling software in conjunction with
the principal underwriting systems to assess and model catastrophe exposures. The modelling
tools are used in conjunction with CMA’s knowledge of the business, historical loss information
and geographic accumulations to monitor aggregation and to simulate catastrophe losses. The
range of scenarios considered includes natural catastrophe, property, marine, liability and
terrorism events.
CMA’s capital setting methodology enables modelling to be performed in a sophisticated, but
practical, manner particularly in determining the correlations between catastrophe exposed
classes of business. Models use event tables which capture directly the different geographic
distributions of risk in the various lines of business.
Effective risk management in non-core areas and from non-modelled perils is ensured using a
suite of exposure accumulation and aggregation monitoring techniques and proprietary
deterministic models.
As a guide to the level of concentration of exposure the Syndicate writes, the following table
shows the Syndicate’s 1:100 Aggregate Exceedance Probability (“AEP”) modelled exposure to
its three largest natural catastrophe perils during 2025:
Peril
Gross
Loss
$m
Final Net
Loss
$m
All Peril
1,786.4
364.6
North Atlantic Hurricane
1,445.9
227.3
US Earthquake
744.6
151.6
European Windstorm
234.0
84.9
The managing agent manages insurance risks on behalf of the Syndicate, including the
following:
•
inappropriate underwriting activities and cycle management;
•
inadequate catastrophe exposure management; and
•
inadequate or insufficient reinsurance protection.
The underwriters, supported by the actuarial pricing team, use their expertise and experience to
determine the likely claims cost and, therefore, the premium that should be sufficient (across a
portfolio of risks) to cover claims costs, expenses and to produce an acceptable profit in line with
the agreed business plan.
Due to the nature of insurance risk, however, the premium charged may not be sufficient to cover
the cost of claims. The shortfall may result from insufficient premium being calculated and
charged or from an unexpected or unprecedented high level of claims.
A number of controls are employed to limit insurance exposures. Each year a business plan is
prepared and agreed by the Board which sets the premium income targets and exposures to be
written in total and for each class of business. Progress against this plan is monitored by
management and the Board during the year.
Insurance liabilities are assumed through individual risk acceptances, reinsurance treaties or
binding authorities. Binding authorities delegate underwriting authority to other underwriters, or
agents acting as coverholders, who use their judgement to write risks on Syndicate 4444’s
behalf under clear authority levels. In such situations, the coverholders’ activities are closely
monitored and reviewed, and periodic on-site audits are carried out to ensure that the terms of
the delegated authorities are being adhered to.
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 4444 Annual Report & Accounts 31 December 2025
Page 26 of 51
5. Management of risk (continued)
a.
Insurance risk (continued)
The Syndicate is also exposed to the risk of:
•
inappropriate claims reserves;
•
inappropriate payment of claims.
All claims arising are reserved upon notification. The entire portfolio of business is subject to a
quarterly reserving process whereby levels of paid and outstanding claims are reviewed.
Potential future claims are assessed with a provision for IBNR claims being made. The quarterly
review process is overseen by the Reserving Forum and Board Audit Committee. Whilst a
detailed and
disciplined reserving exercise is carried out, known claims can develop beyond the
level of reserves held.
Furthermore, there is increased uncertainty around the provision for IBNR claims. Consequently,
there is a possibility that claims may arise which in aggregate exceed the reserve provision
established. In the event that claims do not develop in line with expectations, the Board will seek
to release any redundant reserves.
The Syndicate purchases specific reinsurances to protect
against single risk losses. The Syndicate also purchases general excess of loss reinsurance to
protect from severe losses.
The structure of the programme and type of protection bought will vary from year to year
depending on risk appetite and the availability and price of cover.
(i)
Development of claims
The claims provisions established can be more or less than adequate to meet eventual claims.
The level of uncertainty varies from class to class but can arise from inadequate case reserves
for known large losses and catastrophes or from inadequate provision for IBNR. The following
table presents the impact to both the profit and loss for the year and members balance of an
increase or decrease in insurance liabilities.
(ii) Development of claims
Sensitivities as at 31 December 2025 and 31 December 2024
2025
2024
+5.0%
-5.0%
+5.0%
-5.0%
$000
$000
$000
$000
Claims outstanding – gross of reinsurance
(204,468 )
(171,495 )
Claims outstanding – net of reinsurance
(126,428 )
(106,421 )
The development of insurance liabilities provides a measure of the Syndicate’s ability to estimate
the ultimate value of claims. Historic development includes a mix of prior year releases and
deteriorations.
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 4444 Annual Report & Accounts 31 December 2025
Page 27 of 51
5. Management of risk (continued)
a.
Insurance risk (continued)
The tables below are presented at the exchange rates prevailing at 31 December 2025.
At December 2025
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Total
Gross of reinsurance
$'000
$'000
$'000
$'000
$'000
$'000
$'000
$'000
$'000
$'000
$'000
Estimate of cumulative claims
At end of
underwriting year
One year later
Two years later
Three years later
Four years later
Five years later
Six years later
Seven years later
Eight years later
Nine years later
Estimate of gross
claims reserve
Provision in respect
of prior years
Less cumulative
payments
(1,018,425 )
(1,302,183 )
(1,083,345 )
(1,349,239 )
(935,582 )
(835,149 )
(841,719 )
(504,266 )
(539,810 )
(85,655 )
(8,495,373 )
Gross claims
reserve
At December 2025
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Total
Net of reinsurance
$'000
$'000
$'000
$'000
$'000
$'000
$'000
$'000
$'000
$'000
$'000
Estimate of cumulative claims
At end of
underwriting year
One year later
Two years later
Three years later
Four years later
Five years later
Six years later
Seven years later
Eight years later
Nine years later
Estimate of net
claims reserve
Provision in respect
of prior years
Less cumulative
payments
(797,714 )
(957,580 )
(794,086 )
(1,038,716 )
(719,825 )
(662,718 )
(602,196 )
(409,617 )
(409,452 )
(66,828 )
(6,458,732 )
Net claims reserve
b.
Financial risk
The Syndicate is exposed to a wide range of financial risks, the key financial risk being that the
proceeds from its assets are not sufficient to fund the obligations arising from its insurance
contracts. An analysis of the Syndicate's exposure to the significant components of financial risk
is given below split between:
(i)
Market risk (including interest rate risk and equity price risk);
(ii) Credit risk (including Fair Value Hierarchy);
(iii) Currency risk; and
(iv) Liquidity risk.
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 4444 Annual Report & Accounts 31 December 2025
Page 28 of 51
5. Management of risk (continued)
b.
Financial risk
(i) Market risk
Market risk arises from fluctuations in values of, or income from, assets or in interest or exchange
rates and is derived primarily from the Syndicate’s investment asset portfolio and from currency
exposures. The Board has agreed an investment strategy commensurate with the Syndicate’s
risk appetite.
Interest rate risk
CMA manages sensitivity to market conditions by reference to interest rate risk and equity price
risk. Since the majority of the Syndicate's investments comprise cash, overseas deposits and
fixed income securities, the fair value of the portfolio is inversely correlated to movements in
interest rates. If interest rates fall, the fair value of the Syndicate’s fixed income securities tends
to rise and vice versa. The fair value of fixed income investments in the Syndicate’s balance
sheet at 31 December 2025 was $1,986.3m (2024: $1,533.6m) with an average duration of
around 1.7 years (2024: 2.0 years).The sensitivity of the Syndicate’s investments from a rise or
fall in interest rates is listed below:
Impact on profit before tax
Impact on members’ balance
2025
2024
2025
2024
$000
$000
$000
$000
50 basis points increase
(23,719 )
(18,308 )
(23,719 )
(18,308 )
50 basis points decrease
The Syndicate manages interest rate risk by investing in financial investments, cash and
overseas deposits with an average duration of less than two years. The Investment Committee
monitors the duration of these assets on a regular basis. The Syndicate also uses interest rate
futures for the purposes of efficient portfolio management and market risk management.
Outstanding claims provisions are not sensitive to the level of interest rates as they are mostly
undiscounted and contractually non-interest bearing.
Equity price risk
Equity price risk is managed through a well-diversified portfolio which is complemented by non-
correlated assets.
At the balance sheet date the Syndicate was not exposed to any direct equity price risk.
(ii)
Credit risk
Credit risk is the risk that the Syndicate becomes exposed to loss if a counterparty fails to perform
its contractual obligations. Credit risk could, therefore, impact upon the Syndicate’s ability to
meet its claims as they fall due. The Syndicate has in place policies and procedures designed
to manage its credit risk exposures.
The primary sources of credit risk for the Syndicate are:
•
amounts due from reinsurers,
•
amounts due from insurance intermediaries, and
•
counterparty risk with respect to investments including cash and cash equivalents.
The credit risk in respect of reinsurance debtors is primarily managed by review and approval of
reinsurance security by the Reinsurance Security Forum, prior to the purchase of reinsurance
contracts. Guidelines are set and monitored, that limit the purchase of reinsurance based on
Standard & Poor’s or appropriate alternative ratings for each reinsurer. The credit risk in respect
of reinsurers is primarily managed by CMA’s Reinsurance team. Provisions are made against
the amounts due from certain reinsurers, depending on the current rating assigned to the
reinsurer. Some reinsurers provide collateral, usually in the form of letters of credit, to protect
the Syndicate in the event of non-payment of debt. As this collateral effectively guarantees the
debt, these reinsurers are zero-rated for bad debt provisions. The recovery of debt from
reinsurers is administered by the Credit Management team.
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 4444 Annual Report & Accounts 31 December 2025
Page 29 of 51
5. Management of risk (continued)
b.
Financial risk
(ii) Credit risk (continued)
The credit risk in respect of insurance intermediaries is managed by the credit management
function with the aid of the underwriting support team and a dedicated binder management team.
To transact business with the Syndicate the insurance intermediary must first comply with
internal guidelines that include approval (where relevant) by both the PRA and Lloyd’s, to have
a satisfactory credit rating and to have in place a terms of business agreement or a binding
authority agreement with the Syndicate. The position is then monitored through ongoing review
of the amount of debt outstanding to terms, and by regular cover-holder audits.
Debts from insurance intermediaries fall due according to the terms of trade; debts from
reinsurers crystallise in line with the reinsurance contract terms.
An analysis of the carrying amounts of neither past due nor impaired and past due but not
impaired debtors is presented in the table below;
At 31 December 2025
Neither past
due nor
impaired
Past
due but not
Impaired
Total
$000
$000
$000
Shares and other variable yield securities
Debt securities and other fixed income securities
Deposits with credit institutions
Derivative assets
Loans secured by mortgages
Deposits with ceding undertakings
Investments
3,071,033
-
3,071,033
Reinsurers' share of claims outstanding
Debtors arising out of direct insurance operations
Debtors arising out of reinsurance operations
Other debtors
Cash at bank and in hand
Other assets - other
215,183
215,183
Total
Reinsurance recoverables on paid claims is net of bad debt provision of $3,720k (2024: $3,418k).
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 4444 Annual Report & Accounts 31 December 2025
Page 30 of 51
5. Management of risk (continued)
b.
Financial risk
(ii) Credit risk (continued)
At 31 December 2024
Neither past
due nor
impaired
Past
due but not
Impaired
Total
$000
$000
$000
Shares and other variable yield securities
Debt securities and other fixed income securities
Deposits with credit institutions
Derivative assets
Syndicate loan to central fund
Loans secured by mortgages
Deposits with ceding undertakings
Investments
2,417,907
-
2,417,907
Reinsurers' share of claims outstanding
Debtors arising out of direct insurance operations
Debtors arising out of reinsurance operations
Other debtors
Cash at bank and in hand
Other assets - other
154,128
154,128
Total
An analysis of amounts past due from insurance intermediaries and reinsurers by age is
presented below.
Past Due but not impaired
At 31 December 2025
Up to 3
months
3 – 6
months
6 – 12
months
More
than 12
months
Total
$000
$000
$000
$000
Debtors arising out of direct insurance
operations
Debtors arising out of reinsurance
operations
Total
Past Due but not impaired
At 31 December 2024
Up to 3
months
3 – 6
months
6 – 12
months
More
than 12
months
Total
$000
$000
$000
$000
Debtors arising out of direct insurance
operations
Debtors arising out of reinsurance
operations
Total
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 4444 Annual Report & Accounts 31 December 2025
Page 31 of 51
5. Management of risk (continued)
b.
Financial risk
(ii) Credit risk (continued)
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 setting
minimum credit worthiness of investments and ensuring diversification of the holdings. Fixed
income investments are invested in government and corporate bonds.
An analysis of the Syndicate's major exposure to counterparty credit risk and credit risk with
the investment funds and cash, based on Standard & Poor's or equivalent rating, is presented
below. These assets are neither overdue nor impaired.
At 31 December 2025
AAA
AA
A
BBB
Other
Not rated
Total
$000
$000
$000
$000
$000
$000
$000
Shares and other variable yield securities
Debt and other fixed income securities
Deposits with credit institutions
Derivative assets
Loans secured by mortgages
Deposits with ceding undertakings
Investments
631,247
1,190,334
802,786
78,329
-
368,337
3,071,033
Reinsurers’ share of claims outstanding
Debtors arising out of direct insurance
operations
Debtors arising out of reinsurance
operations
Other debtors
Cash at bank and in hand
Other assets - other
95,499
29,491
24,175
11,942
11,427
42,649
215,183
Total
At 31 December 2024
AAA
AA
A
BBB
Other
Not rated
Total
$000
$000
$000
$000
$000
$000
$000
Shares and other variable yield securities
Debt and other fixed income securities
Deposits with credit institutions
Derivative assets
Syndicate loan to central fund
Loans secured by mortgages
Deposits with ceding undertakings
Investments
815,928
645,914
576,790
63,307
-
315,968
2,417,907
Reinsurers’ share of claims outstanding
Debtors arising out of direct insurance
operations
Debtors arising out of reinsurance operations
Other debtors
Cash at bank and in hand
Other assets - other
68,141
16,448
14,904
10,214
13,359
31,062
154,128
Total
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 4444 Annual Report & Accounts 31 December 2025
Page 32 of 51
5. Management of risk (continued)
(ii) Credit risk (continued)
The carrying values represent the maximum exposure to credit risk at the balance sheet date in
respect of the above assets.
The underlying investments in ‘not rated’ are shown below. These investments comprise of
unlisted equities and managed funds which form part of the Syndicate’s investment strategy and
risk appetite.
Underlying investments in 'not rated'
2025
2024
$000
$000
Shares and other variable yield securities
:
Hedge funds
15
19
Open-end funds
176,285
115,586
Private credit funds
130,248
124,897
Total
306,548
240,502
The Syndicate has classified its financial instruments in accordance with the requirements of
FRS102 and has adopted an approach consistent with IFRS13, Fair Value Measurement. The
fair value hierarchy classifies financial instruments into Level 1 to 3 based on the significance of
the inputs used in measuring their fair value.
The levels within the fair value hierarchy are defined as follows:
Level 1
-
Based on unadjusted quoted price in an active market for identical assets or
liabilities that the entity can access at the measurement.
Level 2
-
Based on inputs other than quoted prices included within Level 1 that are
observable (i.e. developed using market data) for the asset or liability, either
directly or indirectly.
Level 3
-
Where inputs are unobservable (i.e. for which market data is unavailable) for the
asset or liability.
Fair Value Hierarchy
At 31 December 2025
Level 1
Level 2
Level 3
Total
$000
$000
$000
$000
Shares and other variable yield securities
Debt and other fixed income securities
Deposits with credit institutions
Derivative assets
Loans secured by mortgages
Financial investments
Derivative liabilities
(3,804 )
(3,804 )
Total
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 4444 Annual Report & Accounts 31 December 2025
Page 33 of 51
5. Management of risk (continued)
(ii) Credit risk (continued)
Fair Value Hierarchy (continued)
At 31 December 2024
Level 1
Level 2
Level 3
Total
$000
$000
$000
$000
Shares and other variable yield securities
Debt and other fixed income securities
Deposits with credit institutions
Derivative assets
Syndicate loan to central fund
Loans secured by mortgages
Financial Investments
Derivative liabilities
(153 )
(153 )
Total
The level within the hierarchy that a financial instrument is placed is based on the lowest level
of any input that is significant to its fair value measurement. Quoted prices for corporate bonds
are based on a limited number of transactions for those securities and as such are considered
to meet the definition of level 2 assets. Level 3 assets include non-traded private credit funds,
loans to credit institutions and the Syndicate’s loans to the Lloyd’s central fund.
The fair value of private credit funds is determined with reference to the net asset value. Loans
to credit institutions which have no market price have been valued at cost as a proxy for fair
value. The loans to the Lloyd’s central fund were not tradeable and were fair valued based on a
discounted cash flow model to which a fair value adjustment was applied to appropriately reflect
the credit and illiquidity risk of the instrument. These loans were deemed to be equity on the
basis that the repayment of the loan and payment of interest thereon was at the discretion of the
Corporation of Lloyd’s. The Syndicate loans were classified as level 3 because the valuation
approach included significant unobservable inputs and an element of subjectivity in determining
appropriate credit and illiquidity spreads within the discount rates used in the discounted cash
flow model. The Syndicate loan to the Lloyd’s central fund was repaid in full to the Syndicate by
Lloyd’s in 2025. The fair value of the loan at year end was $nil (2024: $24.2m).
CMA determines whether transfers have occurred between levels in the fair value hierarchy by
assessing categorisation at the end of the reporting period. There were no transfers to and from
level 3 assets for the period ended 31 December 2025 when compared with the comparative
prior period end.
The table below shows a reconciliation of opening and closing balances for financial instruments
classified as level 3 of the fair value hierarchy.
2025
2024
$000
$000
At 1 January
200,290
161,699
Net gains through profit or loss
15,217
6,267
Purchases
170,764
142,662
Disposals
(169,199)
(102,931)
Syndicate loan to central fund repayment
(24,170)
(6,920)
Foreign exchange
(865)
(487)
At 31 December
192,037
200,290
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 4444 Annual Report & Accounts 31 December 2025
Page 34 of 51
5. Management of risk (continued)
(iii) Currency risk
Policyholders’ assets are held in the five principal Lloyd’s settlement currencies (Sterling, Euros,
US dollars, Canadian dollars and Australian dollars) which represent the vast majority of the
Syndicate’s liabilities by currency. A significant proportion of the Syndicate’s business is
transacted in US dollars, its functional and presentational currency is US dollars and, therefore,
foreign exchange risk arises when non-US dollar profits are converted into US dollars.
CMA has a policy to mitigate foreign exchange risk and this policy is managed by the Finance
team and overseen by the Finance Forum.
The Syndicate is exposed to foreign exchange risk primarily with respect to the Sterling, Euro,
Canadian dollars and Australian dollars. The Syndicate mitigates this risk by endeavouring to
match assets and liabilities in foreign currency. Moreover, Syndicate 4444 enters into
conventional foreign currency forward contracts, designated as cash flow hedges, to manage its
exposures to foreign exchange rate volatility.
In certain circumstances, the Syndicate is exposed to a foreign exchange risk where regulators
demand that the Syndicate holds Canadian dollar currency assets to match liabilities measured
on a regulatory basis, rather than best estimate.
The Syndicate does not take speculative currency positions to make gains; the purpose of its
foreign exchange risk policy is to protect against the downside risk.
The table below shows the impact on both the result for the year and members balances of a
10% increase (or decrease) of non-USD currencies.
Impact on
profit before
tax
Impact on members’
balance
2025
2024
2025
2024
$000
$000
$000
$000
10 percent increase in non-USD against USD
(44,748)
(21,356)
(44,748)
(21,356)
10 percent decrease in non-USD against USD
44,748
21,356
44,748
21,356
Cash flow hedges
The Syndicate uses cash flow hedges to mitigate its exposure to currency risk, with the objective
of reducing the impact of currency fluctuations on the non-USD expenses. As the Syndicate’s
functional currency is the US dollar, it is exposed to currency risk on its sterling denominated
operating expenses.
During the year, the Syndicate has applied hedge accounting, using a cash flow hedge, to reduce
its exposure to operational costs being denominated in sterling. The sterling denominated
hedges were purchased at the beginning of the year and had matured before the end of the
reporting period. At the reporting date, therefore, the hedging relationship had expired, and any
gain or loss related to the hedging instrument recognised in other comprehensive income and
accumulated in the cash flow hedge reserve during the year has been reclassified from other
comprehensive income to the Income Statement, presented within net operating expenses.
At 31 December 2025, the Syndicate did not hold any foreign exchange forward contracts that
were hedging its exposure to sterling operating expense cash flows, as such there is no balance
recognised within members’ balances within the cash flow hedge reserve at the end of the
year. The total hedging gains recognisd during the year that has been reclassified from other
comprehensive income to the Income Statement is $5.7m.
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 4444 Annual Report & Accounts 31 December 2025
Page 35 of 51
5. Management of risk (continued)
(iii) Currency risk (continued)
The profile of the Syndicate's assets and liabilities, categorised by currency, was as follows:
At 31 December 2025
Sterling &
Other
US dollar
Euro
Canadian
dollar
Australian
dollar
Total
$000
$000
$000
$000
$000
$000
Investments
Reinsurers’ share of technical provisions
Debtors
Other assets
Prepayments and accrued income
Total assets
Technical provisions
(812,270 )
(4,442,344 )
(592,440 )
(102,949 )
(316,087 )
(6,266,090 )
Creditors
(165,393 )
(614,445 )
(104,427 )
(27,288 )
(72,331 )
(983,884 )
Accruals and deferred income
(9,408 )
(75,946 )
(20,299 )
(1,154 )
(5,616 )
(112,423 )
Total liabilities
(987,071 )
(5,132,735 )
(717,166 )
(131,391 )
(394,034 )
(7,362,397 )
Total capital and reserves
(121,931 )
(280,352 )
(161,364 )
(87,429 )
(76,760 )
(727,836 )
At 31 December 2024
Sterling &
Other
US dollar
Euro
Canadian
dollar
Australian
dollar
Total
$000
$000
$000
$000
$000
$000
Investments
Reinsurers’ share of technical provisions
Debtors
Other assets
Prepayments and accrued income
Total assets
Technical provisions
(747,622 )
(3,728,538 )
(482,789 )
(88,617 )
(200,113 )
(5,247,679 )
Creditors
(135,959 )
(483,782 )
(61,480 )
(14,427 )
(22,185 )
(717,833 )
Accruals and deferred income
(5,552 )
(62,812 )
(14,046 )
(565 )
(1,941 )
(84,916 )
Total liabilities
(889,133 )
(4,275,132 )
(558,315 )
(103,609 )
(224,239 )
(6,050,428 )
Total capital and reserves
(40,434 )
(359,902 )
(52,564 )
(79,947 )
(40,615 )
(573,462 )
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 4444 Annual Report & Accounts 31 December 2025
Page 36 of 51
5. Management of risk (continued)
(iv) Liquidity risk
Liquidity risk arises where insufficient financial resources are maintained to meet liabilities as
they fall due.
All valid claims must be paid as they fall due and, therefore, it is essential that the Syndicate
maintains an appropriate level of liquidity at all times. As a consequence, cash is managed
closely by the Treasury team. The Syndicate is exposed to daily calls on its available cash
resources, principally from claims arising from its insurance activities.
The Syndicate’s policy is to manage its liquidity position so that it can reasonably meet a
significant individual or market loss event. This means that the Syndicate maintains sufficient
liquid assets, or assets that can be quickly converted into liquid assets, without any significant
capital loss, to meet estimated cash flow requirements.
The availability of liquidity in the event of a major loss event is regularly tested using internal
cash flow forecasts and realistic disaster scenarios.
The majority of the Syndicate’s investments are in highly liquid assets which could be converted
into cash promptly and at minimal expense. The Syndicate has a relatively low balance of illiquid
property backed loans and investments in private debt through limited partnership structures
which have limited market liquidity. Cash and overseas deposits are generally bank deposits
and money market funds.
In addition, the duration of assets is maintained at a level to manage liability durations and in
recognition of the Syndicate’s catastrophe exposures. Greater levels of cash and/or liquid assets
may be held when determined by market conditions and is considered appropriate by the Chief
Investment Officer and the Board.
The tables below show the maturity profile of the Syndicate’s financial liabilities.
At 31 December 2025
0-1 year
1-3 years
3-5 years
Over 5 years
Total
$000
$000
$000
$000
$000
Derivative liabilities
Creditors
Claims outstanding
Total
Claims outstanding is reported net of discounting credit on non-life annuities liability business of $51.6m (2024:
$48.8m)
At 31 December 2024
0-1 year
1-3 years
3-5 years
Over 5 years
Total
$000
$000
$000
$000
$000
Derivative liabilities
Creditors
Claims outstanding
Total
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 4444 Annual Report & Accounts 31 December 2025
Page 37 of 51
5. Management of risk (continued)
c.
Group risk
Group risk arises from the potential impact of risk events, of any nature, arising in or from
membership of a corporate group. CMA is part of the Canopius Group Limited (“CGL”), a global
underwriter of insurance and reinsurance business transacted both through direct channels and
via delegated underwriting. CGL has established a risk management framework to protect the
Group’s stakeholders, including Syndicate members from events that hinder the sustainable
achievement of financial performance objectives, including failing to exploit opportunities.
Management recognises the critical importance of having effective risk management systems in
place.
A clear organisational structure is in place with delegated authorities and clear responsibilities.
A Group policy framework is in place which sets out the risk management, internal control and
business conduct standards for the Group’s operations. Group risk management policies set out
the identification of risk and its interpretation, limit its structure to ensure the appropriate quality
and diversification of assets, align underwriting and reinsurance strategy to the corporate goals,
and specify reporting requirements. Each policy has a member of senior management charged
with overseeing compliance throughout the Group and the CGL Board meet regularly to approve
any commercial, regulatory and organisational requirements of such policies.
d.
Operational and Regulatory risk
Operational risk is the risk of inadequate or failed internal processes, people and systems, or
external events that have an adverse impact on the business. The Syndicate manages these
risks through a framework of robust systems and controls. CMA’s objective for operational risk
management is to identify, assess, manage, monitor and report risks and to prevent or reduce
any failures or inadequacies in systems and controls. To this end, CMA has established key
policies and controls that include:
•
regular meetings of the Board of directors at which key aspects of the managing agent’s
and Syndicate’s businesses are reviewed, including review of reports from various sub-
committees of the Board
•
underwriting procedures guidelines
•
claims management policies and guidelines
•
risk registers which are reviewed by risk and control owners on a regular basis
•
a suite of risk policies for major risk categories relating to the activities of the Syndicate
•
an internal audit function whose audit plan is aligned with CMA’s risk framework
•
human resources policies and guidelines designed to ensure that the operations are
adequately resourced by sufficiently skilled and trained people, who are appropriately
remunerated
•
financial policies and controls that cover:
•
maintaining segregated funds for the Syndicate’s assets
•
investment of funds
•
expense management
•
establishing adequate provisions for unpaid claims
•
credit risk, including debt collection and managing counter-party exposures
•
cash flow and other financial projections
•
regular review and reconciliation of the entity's financial records.
In addition, the managing agent has an established and integrated capital and planning cycle.
This provides an assessment of the significant financial and non-financial risks, as identified by
the managing agent’s risk management framework. The capital requirement is assessed in
accordance with applicable requirements through the use of deterministic and stochastic
modelling and further challenged using a comprehensive validation process which includes the
use of stress and scenario tests. This process assesses the capital required to meet a 1 in 200
year extreme outcome from the aggregation of all recognised sources of risk.
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 4444 Annual Report & Accounts 31 December 2025
Page 38 of 51
5. Management of risk (continued)
d.
Operational and Regulatory risk (continued)
Regulatory risk is the risk that the Syndicate fails to meet the regulatory requirements of the
Prudential Regulatory Authority (“PRA”), the Financial Conduct Authority (“FCA”), Lloyd’s and
those of overseas regulators in jurisdictions where Lloyd’s syndicates are licensed to trade.
Regulatory risk is a key area of focus for the Risk and Compliance teams to ensure legislative
and regulatory changes are understood and observed.
e.
Climate change risk
CMA has recognised climate change as an emerging risk for a number of years and has
developed its climate risk framework in line with Canopius Group developments and evolving
regulatory expectations. Climate change and society’s response to it, present physical, transition
and liability risks to the business but CMA believes it is well positioned to identify, assess,
manage and mitigate risk and seek opportunities for innovation, diversification and growth within
the industry.
CMA’s climate risk framework covers governance, risk management, scenario analysis and
disclosures. It aligns with the requirements of regulatory requirements in the UK.
CMA’s climate risk framework is part of its wider ESG framework which covers a broad range of
sustainability issues. As part of this, CMA is developing and embedding a suite of responsible
business policies covering underwriting, investments and operations.
6. Capital setting, capital management policies and objectives
The Syndicate's objectives in managing its capital are to:
•
satisfy the requirements of its policyholders and regulators; and
•
allocate capital efficiently to support strategic objectives.
The Society of Lloyd’s applies capital requirements at member level and in aggregate to ensure
that Lloyd’s complies with all regulatory requirements such as Solvency II, whilst meeting its own
financial strength, licence and ratings objectives.
Although 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 4444 is not disclosed in these financial statements.
The PRA and Lloyd’s oversee the capital setting regime that requires syndicates to calculate
their own capital requirements through a Solvency Capital Requirement (“SCR”). The SCR must
be sufficient to cover a 1 in 200 year loss, reflecting uncertainty in the ultimate run-off of
underwriting liabilities (SCR ‘to ultimate’). The Syndicate must also calculate its SCR at the same
confidence level but reflecting uncertainty over a one year time horizon (one year SCR) for
Lloyd’s to use in meeting Solvency II requirements. The SCRs of each syndicate are subject to
review by Lloyd’s and approval by the Lloyd’s Capital and Planning Group.
A syndicate may be comprised of one or more underwriting members of Lloyd’s. Each member
is liable for its share of underwriting liabilities on the syndicate(s) on which it participates but not
other members’ shares. Accordingly, the capital requirement that Lloyd’s sets for each member,
operates on a similar basis. Each member’s SCR shall thus be determined by the sum of the
member’s share of the syndicate SCR ‘to ultimate’. Where a member participates on more than
one syndicate, a credit for diversification is provided to reflect the spread of risk, but consistent
with determining a SCR which reflects the capital requirement to cover a 1 in 200 year loss ‘to
ultimate’ for that member.
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 4444 Annual Report & Accounts 31 December 2025
Page 39 of 51
6. Capital setting, capital management policies and objectives (continued)
The SCR represents the equivalent of minimum regulatory capital, as is required by the PRA
and Lloyd’s, and does not represent the amount of economic capital required to support and
maintain Lloyd’s financial strength, licence and ratings objectives. The SCR process produces a
result that is then uplifted by Lloyd’s by 35% of the member’s SCR ‘to ultimate’.
Each member may provide capital to meet its Economic Capital Assessment (“ECA”) either by
assets held in trust by Lloyd’s specifically for that member (Funds at Lloyd’s), held within and
managed within a syndicate (Funds in Syndicate) or as the member’s share of the members’
balances on each syndicate on which it participates.
Accordingly all of the assets less liabilities of the Syndicate, as represented in the members’
balances reported on the statement of financial position on page 16, are included in resources
available to meet members’ and Lloyd’s capital requirements.
The Syndicate maintains models in accordance with this regime, and also operates an Own Risk
& Solvency Assessment (“ORSA”) process which it reports on at least annually.
Key elements of CMA’s capital methodology include:
•
risk identification;
•
the articulation of risk bearing capacity and establishment of risk appetite;
identification of capital requirement for all significant risks;
•
sensitivity analysis and ‘reasonableness checks’;
•
aggregation and correlation of risks;
•
comparison with other benchmarks e.g. prior years' internal SCRs; standard formula
SCR results, the PRA published calculations based on industry SCR submissions and
market surveys/studies; and
•
Board review and challenge.
To improve the risk management capability, and the assessment of capital requirements, CMA
has developed a stochastic model to analyse the potential performance of its main underwriting
operations. Stress and scenario analysis is also performed for those risks that cannot be easily
modelled quantitatively and where more subjective judgement is required (for example,
operational risk) as well as to challenge the output of the stochastic model.
Using its detailed measurement of risk exposures, the Syndicate allocates capital to support the
business according to the risk appetite and expected returns. The Syndicate has complied with
all capital requirements during the year.
CMA regularly reviews and enhances its risk management processes and their enabling
governance structures to ensure that CMA can demonstrate continuous compliance with
regulatory and Lloyd’s requirements.
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 4444 Annual Report & Accounts 31 December 2025
Page 40 of 51
7. Analysis of underwriting result
An analysis of the underwriting result before investment return is set out below:
Gross
premiums
written
Gross
premiums
earned
Gross
claims
incurred
Gross
operating
expenses
Reinsurance
Balance
Underwriting
Result
2025
$000
$000
$000
$000
$000
$000
Accident and health
(144,850 )
(115,523 )
(11,945 )
(5,572 )
Motor (third party liability)
(6,672 )
(5,851 )
(242 )
Motor (other classes)
(14,462 )
(16,719 )
(895 )
Marine, aviation and
transport
(381,491 )
(154,144 )
(55,803 )
(6,394 )
Fire & other damage to
property
(355,164 )
(309,774 )
(218,655 )
Third party liability
(391,181 )
(210,509 )
(2,552 )
Total direct insurance
(1,293,820 )
(812,520 )
(290,092 )
Reinsurance acceptances
(588,703 )
(213,610 )
(40,464 )
Total
(1,882,523 )
(1,026,130 )
(330,556 )
Gross
premiums
written
Gross
premiums
earned
Gross
claims
incurred
Gross
operating
expenses
Reinsurance
Balance
Underwriting
Result
2025 – Additional Analysis
$000
$000
$000
$000
$000
$000
Fire and damage to property of
which is:
Specialities
(1,635 )
(12,285 )
(9,142 )
Energy
(5 )
(3 )
Gross
premiums
written
Gross
premiums
earned
Gross
claims
incurred
Gross
operating
expenses
Reinsurance
Balance
Underwriting
Result
2024
$000
$000
$000
$000
$000
$000
Accident and health
(108,706 )
(100,966 )
(4,842 )
Motor (third party liability)
(269 )
(4,638 )
(34 )
Motor (other classes)
(9,557 )
(7,920 )
(716 )
(1,422 )
Marine, aviation and
transport
(277,228 )
(116,577 )
(4,645 )
Fire & other damage to
property
(293,550 )
(146,787 )
(268,269 )
Third party liability
(265,661 )
(136,057 )
(34,555 )
Total direct insurance
(954,971 )
(512,945 )
(313,061 )
Reinsurance acceptances
(495,461 )
(324,744 )
Total
(1,450,432 )
(837,689 )
(262,607 )
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 4444 Annual Report & Accounts 31 December 2025
Page 41 of 51
7. Analysis of underwriting result (continued)
Gross
premiums
written
Gross
premiums
earned
Gross
claims
incurred
Gross
operating
expenses
Reinsurance
Balance
Underwriting
Result
2024 – Additional Analysis
$000
$000
$000
$000
$000
$000
Fire and damage to property of
which is:
Specialities
(11,047 )
(18,378 )
The reinsurance balance represents the (charge)/credit to the technical account from the
aggregate of all items relating to reinsurance outwards. No gains or losses were recognised in
profit or loss during the period on inception on buying reinsurance (2024: $nil).
The gross premiums written for direct insurance by underwriting location of where the contracts
were concluded is presented in the table below:
2025
2024
$000
$000
United Kingdom
Total direct insurance gross premiums written
The geographical analysis of gross premiums written by situs of risk is as follows:
2025
2024
$000
$000
United Kingdom
1,125,828
750,044
European Union Member States
69,823
57,902
US
1,616,677
1,431,503
Rest of the world
1,057,630
919,980
Total gross premiums written
3,869,958
3,159,429
8. Currency rates of exchange
2025
2024
Start of
period
End of
period
Average Rate
Start of
period
End of period
Average rate
Sterling
US dollar
Euro
Canadian dollar
Australian dollar
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 4444 Annual Report & Accounts 31 December 2025
Page 42 of 51
9. Net claims outstanding
A (favourable)/adverse run-off deviation was experienced during the year in respect of the
following classes of business.
2025
2024
$000
$000
Accident & health
998
(6,199)
Motor (third party liability)
(609)
(2,972)
Motor (other classes)
232
2,998
Marine, aviation and transport
(13,225)
(38,610)
Fire & other damage to property
(36,007)
(21,060)
Third party liability
2,841
(23,848)
Direct insurance
(45,770)
(89,691)
Reinsurance acceptance
(31,693)
28,305
Total
(77,463)
(61,386)
10. Net operating expenses
2025
2024
$000
$000
Acquisition costs
Change in deferred acquisition costs
(79,968 )
(69,773 )
Administrative expenses
Members’ standard personal expenses
Gross operating expenses – technical account
1,026,130
837,689
Reinsurers commissions income
(201,136 )
(157,006 )
Net operating expenses – technical account
Total commissions for direct insurance business for the year amounted to:
2025
2024
$000
$000
Commissions for direct business
Administrative expenses include:
2025
$000
2024
$000
Auditors’ remuneration:
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
Total audit fees
1,670
1,645
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 4444 Annual Report & Accounts 31 December 2025
Page 43 of 51
11. Staff numbers and costs
All staff are employed by a service company, Canopius Services Limited (“CSL”). The following
amounts were recharged to the Syndicate in respect of salary costs:
2025
2024
$000
$000
Wages and salaries
Social security costs
Pension contributions to money purchase schemes
Total
The average number of employees employed by CSL working on the Syndicate’s affairs during
the year was as follows:
2025
2024
Admin and Finance
Underwriting
Claims
Investments
Total
12. Emoluments of the directors of Canopius Managing Agents
The directors of CMA received the following aggregate remuneration for their qualifying services
rendered to the Syndicate during the year ended 31 December 2025, borne by the Syndicate
and a fellow group company:
2025
$000
2024
$000
Emoluments
4,831
7,284
Pension contributions to money purchase schemes
137
166
Director’s emoluments
Retirement benefits accrued to 3 directors (2024: 5) under money purchase schemes.
The Active Underwriter received the following remuneration charged as a syndicate expense:
2025
$000
2024
$000
Emoluments
Pension contributions amounting to $47k were charged to Syndicate 4444 on behalf of the active
underwriter in 2025 (2024: $45k).
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 4444 Annual Report & Accounts 31 December 2025
Page 44 of 51
13. Net investment income recognised in profit or loss
2025
2024
$000
$000
Interest and similar income
Interest and similar income from financial instruments
designated at fair value through profit or loss
Interest on cash at bank
Total interest and similar income
Other income/(charges) from investments designated at
fair value through profit or loss
Gains on the realisation of investments
Losses on the realisation of investments
(5,593 )
(9,193 )
Unrealised gains on investments
Unrealised losses on investments
(19,647 )
(12,669 )
Total gains
Investment expenses and charges
(3,625 )
(2,673 )
Total investment return
Transferred to the technical account
2025
2024
$000
$000
Average amount of Syndicate funds available for
investment during the year
2,976,300
2,424,111
Investment return, excluding investment management
expenses
148,392
122,421
Investment return, on average invested balances
5.0%
5.1%
Investment return, on average invested balances, is calculated as the combined investment income for the period, excluding
investment management expenses, divided by the average of the opening and closing investments, cash and overseas deposit
balances.
The Syndicate classifies its investments at fair value through profit and loss. Financial assets
classified into this category form a portfolio of financial assets which may be sold to meet the
cash flow requirements of the Syndicate or as investment conditions change.
14. Distribution
An open year profit distribution of $100.0m was made in September 2025 on the 2023 year of
account. A final distribution to members of $324.9m will be proposed in relation to the closing
2023 year of account. (2024: $225.0m distribution in relation to the closing 2022 year of account).
Subject to approval from Lloyd’s, an open year profit distribution to members of $120.0m will be
proposed on the 2024 year of account.
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 4444 Annual Report & Accounts 31 December 2025
Page 45 of 51
15. Financial investments
Carry value
Cost
2025
2024
2025
2024
$000
$000
$000
$000
Shares and other variable
yield securities
Debt and other fixed income
securities
Deposits with credit
institutions
Derivative assets
Syndicate loan to central
fund
Loans secured by mortgages
Total financial
investments
2025
2024
$000
$000
Listed investments
2025
2024
$000
$000
Financial assets measured at fair value through profit or
loss
Total financial investments
The Syndicate uses exchange traded derivatives and forward foreign exchange derivatives in
order to hedge its exposure to interest rate and foreign currency risk.
The following derivative assets and liabilities were held at 31 December 2025.
Notional amount
Fair value
2025
2024
2025
2024
$000
$000
$000
$000
Foreign exchange forward contracts
(2,473 )
Interest rate future contracts
(153 )
Total
(2,348 )
The derivative fair value is net of liabilities of $3,804k (2024: $153k).
16. Debtors arising out of direct insurance operations
2025
2024
$000
$000
Intermediaries
1,271,153
1,113,828
Total due within one year
Total
Debtors arising out of direct insurance operations include $1,061.8m (2024: $891.9m) of pipeline
premium which is estimated using expert judgement, relevant underwriting input and
management review.
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 4444 Annual Report & Accounts 31 December 2025
Page 46 of 51
17. Debtors arising out of reinsurance operations
2025
2024
$000
$000
Ceding insurers and intermediaries under reinsurance
business
588,873
498,149
Reinsurance recoverable on paid claims net of bad debt
provision
137,465
172,774
Total due within one year
Ceding insurers and intermediaries under reinsurance
business
148
2,850
Total due after one year
Total
Debtors arising out of reinsurance operations include $551.1m (2024: $438.2m) of pipeline
premium which is estimated using expert judgement, relevant underwriting input and
management review.
18. Other debtors
2025
2024
$000
$000
Due within one year
Amounts due from group undertakings
Other debtors
Total due within one year
Other debtors include tax receivable of $5,160k (2024: $5,440k) and unsettled investment
trades of $5,197k (2024: $4,066k).
19. Cash and cash equivalents
2025
2024
$000
$000
Due within one year
Cash at bank and in hand
Short term deposits with credit institutions
Total cash and cash equivalents
Only deposits with credit institutions with maturities of three months or less that are used by the
Syndicate in the management of its short-term commitments are included in cash and cash
equivalents.
Of the total cash and cash equivalents are the following amounts which are not available for use
by the Syndicate because they are held in regulated bank accounts in overseas jurisdictions
(cash at bank and in hand) or are Letter of Credit (LoC) collateral (short term deposits with credit
institutions).
2025
2024
$000
$000
Cash at bank and in hand
Short term deposits with credit institutions
Total cash and cash equivalents held in regulated accounts in
overseas jurisdictions
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 4444 Annual Report & Accounts 31 December 2025
Page 47 of 51
20. Other assets - other
Other assets - other include overseas deposits which are lodged as a condition of conducting
underwriting business in certain countries.
21. Creditors arising out of direct insurance operations
2025
2024
$000
$000
Intermediaries
94,566
92,282
Total due within one year
Total
22. Creditors arising out of reinsurance operations
2025
2024
$000
$000
Reinsurance accepted
16,431
21,958
Reinsurance ceded
816,341
526,043
Total due within one year
Total
23. Other creditors including taxation and social security
2025
2024
$000
$000
Amounts due to group undertakings
Derivative liabilities
Other liabilities
Total other creditors due within one year
Other liabilities include unsettled investment trades of $3,271k (2024: $5,160k) and taxation of
$3,722k (2024: $3,473k).
24. Accruals and deferred income
2025
2024
Note
$000
$000
Deferred reinsurance commission
25
110,172
82,184
Accrued expenses
2,251
2,732
Total due within one year
112,423
84,916
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 4444 Annual Report & Accounts 31 December 2025
Page 48 of 51
25. Deferred acquisition costs
The reconciliation of opening and closing deferred acquisition costs is as follows:
Gross
RI
Net
Gross
RI
Net
2025
2025
2025
2024
2024
2024
$000
$000
$000
$000
$000
$000
At 1 January
(82,184 )
(74,514 )
Incurred acquisition costs
(226,341 )
(165,860 )
Amoritsed acquisition costs
(916,204 )
(715,068 )
(729,794 )
(572,788 )
Foreign exchange
(2,783 )
(8,606 )
(7,422 )
At 31 December
(110,172 )
(82,184 )
26. Technical Provisions
The reconciliation of opening and closing unearned premium provision is as follows:
2025
2024
Gross
RI
Net
Gross
RI
Net
$000
$000
$000
$000
$000
$000
At 1 January
(401,125 )
(382,567 )
Premiums written during
the year
(1,362,547 )
(894,863 )
Premiums earned during
the year
(3,570,378 )
(2,390,773 )
(2,818,325 )
(1,947,976 )
Foreign exchange
(13,656 )
(29,454 )
(23,498 )
At 31 December
(597,723 )
(401,125 )
The reconciliation of opening and closing provision for claims is as follows:
2025
2024
Gross
RI
Net
Gross
RI
Net
$000
$000
$000
$000
$000
$000
At 1 January
(1,301,473 )
(1,350,678 )
Claims paid during the year
(1,320,214 )
(887,165 )
(1,149,485 )
(661,098 )
Expected cost of current
year claims
(688,565 )
(478,413 )
Change in estimates of prior
year provisions
(118,115 )
(77,463 )
(89,063 )
(61,386 )
Foreign exchange
(44,474 )
(44,966 )
(33,412 )
At 31 December
(1,560,811 )
(1,301,473 )
27. Discounted claims
Discounting may be applied to claims provisions where there are individual claims with structured
settlements that have annuity-like characteristics.
The claims have been discounted as follow:
Average discounted
rates
Average mean term of
liabilities
2025
2024
2025
2024
%
%
Years
Years
Motor (third party liability)
Third party liability
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 4444 Annual Report & Accounts 31 December 2025
Page 49 of 51
27. Discounted claims (continued)
The period that will elapse before claims are settled is determined using impaired life mortality
tables. The claims provision before and after discounting are as follows:
Undiscounted
claims
Effect of discounting
After discounting
2025
2024
2025
2024
2025
2024
$’000
$’000
$’000
$’000
$’000
$’000
Gross claims provisions
(51,612 )
(48,793 )
Reinsurers share of
total claims
(1,609,722 )
(1,347,883 )
(1,560,811 )
(1,301,473 )
Net claims provisions
(2,701 )
(2,383 )
28. Post balance sheet events
On 18 February 2026 the Board of the Managing Agent authorised the closure of the 2023 year
of account by way of reinsurance to close into the 2024 year of account. On the closure of the
2023 year of account a final amount of $324.9m (that is after the adjustment of $100m for the
open year distribution), including members’ agents’ fees, will be distributed to members, see
Distribution note 14. There are no other material post balance sheet events that require
disclosure in the annual report and accounts.
On 18 February 2026 the Board of the Managing Agent approved, subject to approval from
Lloyd’s, an open year profit distribution of $120m on the 2024 year of account. There are no
other material post balance sheet events that require disclosure in the interim report and
accounts.
29. Pensions
CSL operates defined contribution pension schemes for the employees of CSL, including those
working on the Syndicate’s affairs during the year. The assets of the schemes are held
separately from those of CSL in independently administered funds. The amounts recharged to
the Syndicate from CSL in respect of pensions are disclosed in Note 11.
30. Related Parties
Transactions between the Managing Agent/Service Company and the Syndicate
CMA is the managing agent of Syndicate 4444. Managing agency fees of $126k were charged
to the Syndicate by CMA during 2025 (2024: $153k). At 31 December 2025, an amount of $nil
was due between CMA and the Syndicate (2024: $nil).
Profit commission of $1,084k (2024: $1,177k), payable by the Syndicate to CMA, is reported
within accruals and deferred income.
Employment of staff, provision of accommodation and related services are provided at cost by
CSL, which is owned by Canopius Holdings UK Ltd (“CHUKL”). Expenses during 2025 totalling
$217,260k (2024: $208,502k) were recharged to the Syndicate by CSL. At 31 December 2025
an amount of $15,002k was due from the Syndicate to CSL (2024: $40,984k).
Canopius Group Limited (“CGL”)
At 31 December 2025, Syndicate 4444 was owed $nil from CGL (2024: $17,056k) in respect of
margin funding for hedging and overlay positions shared by CGL and its affiliated entities.
Syndicate 4444 shares in the profits and losses associated with these arrangements.
Canopius Underwriting Bermuda Limited (“CUBL”)
Canopius Underwriting Bermuda Limited (“CUBL”) is an insurance service company that
underwrites property insurance and reinsurance business on behalf of the Syndicate. Premiums
written during 2025 totalled $511k. (2024: $nil).
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 4444 Annual Report & Accounts 31 December 2025
Page 50 of 51
30. Related Parties (continued)
Canopius Asia Pte. Ltd (“CAPL”)
Canopius Asia Pte. Ltd ("CAPL") trades as part of the Lloyd's Asia platform, and also through an
Australian branch. CAPL underwrites Insurance and reinsurance lines, including and most
notably, property, marine, energy and engineering, accident & health and treaty reinsurance
business, on behalf of the Syndicate. Premiums written during 2025 totalled $475,743k (2024:
$393,469k). At 31 December 2025, an amount of $14,076k was due from the Syndicate to CAPL
(2024: $8,845k).
Canopius Underwriting Agency Inc. ("CUAI")
Canopius Underwriting Agency Inc. ("CUAI") is a New York based insurance service company
that underwrites direct and facultative property, marine, financial and professional insurance. It
also underwrites property treaty reinsurance business on behalf of the Syndicate. Premiums
written during 2025 totalled $177,692k (2024: $170,118k). At 31 December 2025, an amount of
$2,234k was due from Syndicate to CUAI (2024: $2,074k).
VAVE Digital Services ("VAVE”)
VAVE Digital Services Limited (“VAVE”) is an appointed representative that underwrites US
flood, homeowners and US commercial property risks on behalf of the Syndicate. Premiums
written on behalf of the Syndicate during 2025 totalled $202,430k (2024: $190,789k). At 31
December 2025, an amount of $nil was due between Vave and the Syndicate (2024: $nil).
Canopius Ireland Limited (“CIL”)
Canopius Ireland Limited (“CIL”) is an insurance service company that underwrites structured
reinsurance business on behalf of the Syndicate. Premiums written on behalf of the Syndicate
during 2025 were $nil (2024: $nil). At 31 December 2025, an amount of $391k was due from the
Syndicate to CIL (2024: $360k).
Canopius Europe Limited (“CEL”)
Canopius Europe Limited (“CEL”) is an insurance service company that predominantly
underwrites renewable energy and treaty reinsurance business on behalf of the Syndicate.
Premiums written on behalf of the Syndicate during 2025 totalled $nil (2024: $nil). At 31
December 2025, an amount of $1,093k was due from the Syndicate to CEL (2024: $202k due
from the Syndicate to CEL).
Excelsa Re Ltd (“Excelsa”)
Excelsa Re Ltd (“Excelsa”), a Bermudan based special purpose insurer writing property treaty
and direct and facultative business, is no longer considered a related party of Syndicate 4444.
During the previous year the Syndicate ceded premium to Excelsa Re of $115,205k. At 31
December 2025, an amount of $32,803k was due from the Syndicate to Excelsa relating to the
premiums ceded during the prior year (2024: $26,619k due from the Syndicate to Excelsa).
Other group companies
The Syndicate held creditor balances with the following group companies as at 31 December
2025: Canopius UK Holdings Limited $60k (2024: $56k). Trenwick Underwriting Ltd $26k (2024:
$24k). Canopius US Insurance Inc $2k (2024: $2k).
In addition, the Syndicate held debtor balances with the following group company as at 31
December 2025; Canopius Reinsurance Limited (“CRL”) of $nil (2024: $969k).
Samsung Fire and Marine Insurance (“SFMI”)
Samsung Fire and Marine Insurance (“SFMI”), a non-life insurance company, has a minority
shareholding in a parent of CGL. The Syndicate has an inwards quota share arrangement with
SFMI to underwrite US admitted business, premium written during 2025 totalled $74,197k (2024:
$53,806k). The Syndicate also ceded business to SFMI under a quota-share arrangement.
Under this arrangement, reinsurance premium ceded to SFMI during 2025 was $101,142k
(2024: $51,238k).
Notes to the Financial Statements
for the year ended 31 December 2025
CMA
Syndicate 4444 Annual Report & Accounts 31 December 2025
Page 51 of 51
30. Related Parties (continued)
Capital
Canopius Corporate Capital Limited (“CCCL”), Canopius Capital Seven Limited (“CC7L”),
Canopius Capital Twelve Limited (“CC12L”) and Flectat 2 Limited (“Flectat 2”) are subsidiaries
of CHUKL that provided, or will be providing, capacity to the 2022 to 2025 underwriting years as
follows:
2023
2024
2025
2026
£m
%
£m
%
£m
%
£m
%
CCCL
1,738.3
96.57%
1,950.1
97.5%
2,231.7
87.52%
2,368.3
89.37%
CC7L
33.3
1.85%
37.0
1.85%
47.2
1.85%
-
-
CC12L
16.0
0.89%
-
-
-
-
-
-
Flectat 2
-
-
-
-
255.0
10.0%
265.0
10.0%
31. Immediate and ultimate parent undertaking and controlling party
As at 31 December 2025, Syndicate 4444 was managed by CMA and CMA’s immediate UK
parent is CHUKL, which is registered in England and Wales. CHUKL is part of CGL which is
registered in Jersey.
The ultimate controlling parties of CGL are CCP Holdings GP (Cayman) Limited, CCP III Cayman
GP Limited and CCP III SBS Cayman GP Limited.
32. Funds at Lloyd’s
Every member is required to hold capital at Lloyd’s which is held in trust and known as FAL.
These funds are intended primarily to cover circumstances where syndicate assets prove
insufficient to meet participating members’ underwriting liabilities.
The level of FAL that a member is required to maintain is determined by CMA and Lloyd’s based
on compliance with PRA requirements. The determination of the FAL requirement has regard to
a number of factors including the nature and amount of insurance contracts to be underwritten
by the member and the assessment of the reserving risk in respect of business that has been
underwritten. Since the assets in FAL are not owned by the Syndicate, no amount has been
shown in these financial statements by way of such capital resources. However, the managing
agent is able to make a call on the members' FAL to meet liquidity requirements or to settle
losses.