Important information about Syndicate Reports and Accounts
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ASPEN MANAGING AGENCY LIMITED
SYNDICATE 4711
ANNUAL REPORT AND ACCOUNTS
FOR THE YEAR ENDED
Contents
Page
Directors and Administration
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3
Strategic report of the Managing Agent
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
Managing Agent's report
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11
Statement of Managing Agent's responsibilities
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13
Independent auditor's report to the members of Syndicate 4711
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14
Statement of profit or loss and other comprehensive income
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17
Balance sheet - Assets
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
19
Balance sheet - Liabilities
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
20
Statement of changes in members' balances
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
21
Statement of cash flows
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22
Notes to the financial statements
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23
Syndicate 4711
Report and accounts
31 December 2025
-2-
Directors and Administration
Managing Agent
Directors
T Froehlich (Chair)
P Bradbrook
M Duffy
S Liddell
P Shaw
S Stanford
N Waller
Company secretary
K Lawrence
Managing Agent’s registered office
30 Fenchurch Street
London, EC3M 3BD
United Kingdom
Managing Agent’s registered number
06459521
Syndicate
4711
Active underwriter
D Osman
Registered Auditor
Ernst & Young LLP
25 Churchill Place
Canary Wharf
London
E14 5EY
Syndicate 4711
Report and accounts
31 December 2025
-3-
Strategic report of the Managing Agent
The Directors of the Managing Agent present their strategic report in respect of Syndicate 4711 ("the
Syndicate") for the year ended 31 December 2025.
This annual report is prepared using the annual basis of accounting as required by Statutory Instrument No
1950 of 2008, the Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008,
applicable United Kingdom Accounting Standards, including Financial Reporting Standard 102: The Financial
Reporting Standard applicable in the United Kingdom and Republic of Ireland ('FRS 102') and Financial
Reporting Standard 103: Insurance Contracts ('FRS 103'), and the Lloyd's Syndicate Accounts Instructions
Version V3.1 as modified by the Frequently Asked Questions Version 1.1 issued by Lloyd's.
Strategic Report
The result for the year ended 31 December 2025 is a profit of £29.9m (2024: profit of £83.7m) with a total
recognised gain of £30.2m (2024: gain of £84.3m) and is set out in the Statement of profit or loss and other
comprehensive income on page 18. An overview of the 2025 performance is shown below.
The Managing Agent is a subsidiary
of Aspen Insurance Holdings Limited ("AIHL"), a company registered in
Bermuda. The ultimate parent company as at 31 December 2025 is AIHL. The smallest group in which the
results of
the Managing Agent are consolidated is that headed by AIHL.
The consolidated accounts of AIHL
are available to the public and may be obtained from the Company Secretary, Aspen Insurance Holdings
Limited, c/o 30 Fenchurch Street, London, EC3M 3BD.
Overview of the Business
The principal activity of the Syndicate is the transaction of general insurance and reinsurance business at
Lloyd’s. The Syndicate is Aspen Group’s primary platform for insurance and reinsurance business in the UK.
The main lines of business in the insurance segment are Crisis Management, Credit & Political Risks, Natural
Resources & Construction, Specie, Management Liability, Financial Institutions, Professional Indemnity,
Cyber, Cross Class Binders, Primary Casualty, Excess Casualty and Environmental. The main lines of business
in the reinsurance segment are Casualty Re, Property Re, Property Facultative and Specialty Re.
2025 Performance
Overall gross written premium ("GWP") for the year has decreased to
£
1,003.6
m (
2024
: £
1,012.9
m
), with a
profit for the financial year of £
29.9
m (
2024
: £83.7m profit). Although GWP in underlying currencies
increased, reported GWP in GBP decreased due to strengthening of GBP vs USD during the year and because a
significant proportion of premium is written in USD.
The next section reviews performance by the classes of business the Syndicate uses to manage performance
internally, which are different to the classes of business required to be reported in note 5.
Insurance
The insurance segment reported gros
s written premium of £748.4m (
2024
: £717.3m) with an underwriting
loss of £9.7m
(
2024
: profit of £59.5m), resulting in a combined ratio of
10
3.5%
(
2024
: 76.5%).
Specialty Insurance
Gross written premium decreased to £206.2m (
2024
: £207.2m). Growth in Offshore Energy and Crisis
Management was offset by International Energy and Construction.
Cross Class Binders and Ki
Gross written premium increased to £303.5m (
2024
: £253.7m) driven by premium growth in a number of key
accounts.
Financial and Professional Lines
Gross written premium
decreased to £97.2m (
2024
: £99.9m). Lower premiums in Financial Institutions and
Professional Indemnity were partly offset by higher GWP in Management Liability.
Syndicate 4711
Report and accounts
31 December 2025
-4-
Casualty
Gross written premium decreased to £141.5m (
2024
: £155.9m), driven by Global Casualty.
Reinsurance
Gross written premium decreased to £255.2m (
2024
: £295.6m).
Despite the
premium reduction driven by
Specialty lines, the reinsurance segment was profitable across its lines, achieving an underwriting profit of
£16.8m (
2024
: profit of £9.7m), resulting in a combined ratio of 84.3% (
2024
: 93.3%).
Key Performance Indicators
The key financial performance indicators during the year were:
£m
£m
2025
2024
Capacity
1,300.0
1,300.0
Gross written premium
1,003.6
1,012.9
Gross earned premium
954.3
893.8
Net earned premium
383.7
393.6
Investment return
26.1
10.0
Profit for the financial year
29.9
83.7
Claims ratio
A
58.9 %
49.7 %
Expense ratio
B
39.2 %
32.7 %
Combined ratio
C
98.1 %
82.4 %
A
Net claims incurred/Net earned premium
B
Net operating expenses/Net earned premium
C
(Net operating expenses+Net incurred claims)/Net earned premium
Investment Performance
The investment policy and investment strategy plan of the Syndicate are developed and managed by the Aspen
Group Investment function and approved by the Board of AMAL. Furthermore, investments are also required
to be made in line with the guidelines put in place by Lloyd’s.
As at 31 December 2025, the Syndicate held £326.9m (2024: £317.1m) in public fixed income securities.
The fixed income portfolio excluding cash has a duration of 4.22 years at 31st December 2025 versus 3.37 at
31st December 2024. The
portfolio's book yield increased
8
basis points in the year to 4.29%. The portfolio
continues to be invested in high quality public fixed income securities with a weighted average credit rating of
AA-.
The Syndicate's investment portfolios invest assets in US dollars and Canadian dollars as well as holding assets
in other currencies within Lloyd's overseas deposits, as required by the Syndicate's underwriting activities, and
holding cash in other currencies.
As at 31 D
ecember 2025 the total value of cash and investments was £
471.6
m (
2024
: £437.6m). Of the total
value, 22.2% was invested in cash, money market or liquidity funds, 12.3% was assets held within Lloyd’s
overseas deposits, the remaining portion was invested in the diversified public fixed income securities. Overall
the investment return for the year w
as £
26.1
m (
2024
: £10.0m) on an annualised basis.
Further analysis of the Syndicate's investments can be found in the notes 9 and 12 to these accounts.
Financial Position
The Balance Sheet of the Syndicate shows total assets of £2,756.8m (2024: £2,722.3m) and a Member's
balances surplus of £71.3m (2024: £99.3m surplus).
Syndicate 4711
Report and accounts
31 December 2025
-5-
The Syndicate maintains all its investments in fixed income securities and money market funds.
Insurance reserves include a net provision for claims outstanding of £649.8m (2024: £576.4m) and a provision
for unearned premium of £255.3m (2024: £248.5m) net of reinsurance.
Outwards Reinsurance Arrangements
The Syndicate purchases reinsurance and retrocession covers to mitigate and diversify risk exposure to a level
consistent with the board approved risk appetite and to increase insurance and reinsurance underwriting
capacity. These agreements provide for recovery of a portion of losses and loss adjustment expenses from
reinsurers. The amount and type of reinsurance that the Syndicate purchases varies from year to year and is
dependent on a variety of factors including, but not limited to, the cost of a particular reinsurance contract and
the nature of gross exposures assumed, with the aim of securing cost-effective protection.
The Syndicate has reinsurance covers in place for the majority of classes of business with unrelated reinsurers,
and also supports Aspen Capital Markets through quota share cessions.
The Syndicate also has a 35% whole account quota share for the 2021 and post years of account to protect the
net retained account. This reinsurance is placed with Aspen Bermuda Limited ("ABL"), a subsidiary within the
Aspen Group.
The terms of this quota share arrangement were renegotiated for the 2023 year of account to more closely align
the economics of this reinsurance arrangement with the economics of the underlying portfolio. The quota share
arrangement provides a ceding commission to contribute to the expenses of the Syndicate. In 2023 the ceding
commission was recognised in line with the underlying expenses rather than being deferred commensurate
with premiums. This continued into the 2024 and 2025 years of account.
For the 2015 to 2021 underwriting years of account, all Marine, Energy and Construction ("MEC") business
written by the Aspen Group was agreed to be written by the Syndicate and an additional 50% quota share was
purchased to reduce volatility. This quota share was purchased with Aspen Insurance UK Limited ("AIUK"),
another subsidiary within the Aspen Group.
In Q2 2022 the Aspen Group closed on a ground-up loss portfolio transfer ("LPT") with a wholly-owned
subsidiary of Enstar. The LPT covers all business on the 2019 and prior accident years, which means some
development on the 2019 underwriting year is not reinsured through the LPT. The LPT provides the Aspen
Group with $450m adverse development cover on Group reserves of $3.12bn at the effective date. As at 31
December 2025 the Group is within the LPT limit of $450m. In addition, the responsibility and expense of
handling the 2019 and prior gross claims was transferred to a wholly-owned subsidiary of Enstar.
Enterprise Risk Management and Control Framework
The Board ensures that the Syndicate operates an effective risk management and control framework, which
includes risk management, compliance, and internal control systems. The Syndicate maintains appropriate
policies, procedures, and internal controls to support the risk and control framework.
Principal Risks and Uncertainties
Risk management has been embedded in the management and culture of the Aspen Group since its formation
in 2002. The Syndicate, as an operating entity within the Aspen Group, operates within the Group’s established
risk management practices.
The key risks for the Syndicate are currently:
•
Underwriting: the Syndicate's specific focus on a number of specialist lines of business has allowed it
to assess the impacts of the market changes, driven by the economic and geopolitical environment over
the past few years and adapt accordingly. However, the potential for further volatility in these areas
will continue to present challenging conditions over the coming period.
•
Reserving: The economic environment has provided challenges in recent years notably in relation to
the pandemic, international conflict and financial market volatility. Exposures relating to the Russia
and Ukraine conflict have been reviewed and Aspen has identified impacted policy holders and
Syndicate 4711
Report and accounts
31 December 2025
-6-
potential claims, and examined received claims. Although further development of reserves held
relating to the conflict are possible as court decisions materialise, reasonable provision for all claims
identified to date have been made. Exposures from conflict in the Middle East are not expected to be
material for the Syndicate, although further volatility and potential for broader region disruption could
have an impact. As with the rest of the industry, the Syndicate has assessed the impacts of both
economic and social inflation on the reserve adequacy of its liabilities. This has been conducted at a
product and coverage level to ascertain where any reserve strengthening was required. The Syndicate's
exposure to the California Wildfires is limited and falls within expectations. The California Wildfires
are not expected to be material for the Syndicate.
•
The execution of a LPT with Enstar during 2022 has provided additional protection in terms of the
reserves for all 2019 and prior years of claims. This agreement provides protection against significant
deterioration of prior accident year reserves up to $450m above the group reserves held at the time of
the transaction. The Syndicate can recover its share of losses so long as the Group reserve deterioration
does not exceed $450m. Should surpluses develop on 2019 and prior accident years then these
surpluses are also ceded under the LPT.
•
Market Risk: A degree of volatility has remained in the economic environment over the past year.
Market Risk will be very closely monitored over the coming 12 months, it is not expected to create a
major risk to the achievement of the Syndicate's plan.
•
Spread Risk: The price of a bond adjusts over time to reflect the spread required on similar new issues.
This movement up or down in spread therefore contributes to overall market risk and the Syndicate
calls this ‘spread risk’. The Syndicate includes within spread risk the risk that a security falls in value as
a result of being downgraded by a rating agency as this will cause the spread to increase. The risk of
actual default on interest or redemption as a special case of spread risk is included. Spread risk is
managed by maintaining the overall credit quality of the investment portfolio and by limiting exposure
to any single counterparty, sector, industry or geography.
•
Liquidity Risk: The Syndicate ensures that it retains sufficient liquidity to meet its liabilities as they fall
due. This is primarily achieved through cash holdings and asset selection. The Syndicate considers and
regularly reports against liquidity stress events and its risk appetite is to meet the liquidity
requirements of these events.
•
Operational Risk: The Aspen group has been through a transformative program of change in recent
years, including the outsourcing of a number of processes and continues to work through a number of
improvement projects. Changes have brought numerous improvements across the operations of the
organization as a whole and will continue to do so as the change programme is completed. The
significant level of change and transformation activity across the Aspen Group is driving an elevated
level of Operational Risk related to process execution and administration. Financial reporting has
shown continuous improvement in the design and implementation of enhanced financial controls. This
progress enables functions such as outwa
rds reinsurance to better manage, mitigate, and control
operational risks. The Sompo Acquisition, which is discussed further in the Managing Agent's report, is
expected to elevate several Operational Risks in the near term. These risks are being actively
monitored and mitigated across the business, with minimal impacts observed so far.
•
A further area of operational risk which has been a challenge across the industry in recent years has
been the retention of staff and timely recruitment. The competitive employment market remains
challenging, leading to increased voluntary turnover, extended recruiting times, and higher salaries to
source and retain the right people, particularly for specialized positions. Achievement of the plan is
dependent on retaining key employees across underwriting and support functions. Loss of high-profile
individuals or underwriting teams has the potential to impact the Syndicate’s market standing and
reputation.
Risk Management Approach
The Syndicate maintains a Risk Universe which defines the different types of risk that it faces and how they are
monitored and measured. This framework has been applied and refined continuously and is approved each
year by the Board. The Syndicate operates an integrated enterprise-wide risk management strategy designed to
deliver shareholder value in a sustainable and efficient manner while providing a high level of policyholder
protection. The Syndicate's Risk and Capital Oversight Committee provides enhanced oversight of it's risk
management process. The execution of the integrated risk management strategy is based on:
Syndicate 4711
Report and accounts
31 December 2025
-7-
•
The establishment and maintenance of an internal control and risk management system based on a
three lines of defence approach to the allocation of responsibilities between risk accepting units (first
line), risk management activity and oversight from other central control functions (second line), and
independent assurance (third line);
•
Identifying material risks to the achievement of the Syndicate’s objectives including emerging risks;
•
The articulation at Group and Syndicate level of the risk appetite and a consistent set of key risk limits
for each material component of risk;
•
Measuring, monitoring, managing and reporting risks and trends;
•
The use, subject to an understanding of its limitations, of the Internal Model to test strategic and
tactical business decisions and to assess compliance with the Risk Appetite Statements; and
•
Stress and scenario testing, including reverse stress testing, designed to help the Syndicate better
understand and develop contingency plans for the likely effects of extreme events or combinations of
events on capital adequacy and liquidity.
The Syndicate maintains an Internal Model which it uses to calculate its Solvency Capital Requirement
("SCR"). The Internal Model is integrated into the Syndicate's risk management system and is continually
refined through a process of development, monitoring and use to ensure it appropriately captures the material
quantifiable risks to which the Syndicate is exposed. The Syndicate's SCR is agreed by Lloyd's annually as part
of the business planning process with any Major Model Changes subject to further approval, the last such being
in 2023.
Risk appetite
In order to meet the expectations of its equity stakeholder, the Syndicate aims to maintain a level of
profitability consistent with the Group return targets set out in the Group Risk Appetite statement, taking into
account the contributions of other subsidiaries. The Syndicate also aims to generate sufficient distributable
income to allow it to contribute its share of funding for the debt and dividend obligations of the Aspen Group.
The Syndicate risk appetite and risk management process is aimed at ensuring that these objectives are met.
The Risk Appetite statement approved by the Board articulates the Risk Appetite to which the Syndicate
adheres.
In addition to the high-level Risk Appetite statement, the Syndicate has established a set of Key Risk Limits
covering exposures to natural and man-made catastrophe events, market risks, credit risks and operational
risks. These are monitored and reported to the Risk and Capital Oversight Committee on a quarterly basis.
The main risks faced by the Syndicate can be split between core risks and non-core risks. The Risk Appetite
distinguishes between core risks and non-core risks.
•
Core risks: the Syndicate actively has appetite for insurance risk and financial market risk. These are
considered core risks, which are assumed as part of the value creation strategy. These core risks are
actively sought in cases where:
•
there is a thorough understanding of how risks can be measured and managed;
•
the potential risk accumulation arising from both additional exposures and the dependencies
between risk categories are understood and can be controlled;
•
the Syndicate is adequately remunerated for the risk it takes; and
•
there is appropriate alignment of interests between the Syndicate and its stakeholders.
The Syndicate has an appetite for insurance risk across the diversified non-life insurance lines of business in all
major geographical markets as determined within the remit provided to it by the wider Aspen Group. Similarly,
the Syndicate has an appetite for financial market risk across a diversified range of investment types and
strategies. The Syndicate’s appetite for core risks is further detailed in the business plans (including investment
plans) approved annually by the Board.
Syndicate 4711
Report and accounts
31 December 2025
-8-
•
Non-core risks: All other risks to the business are non-core risks. Non-core risks will be minimized
through a range of options, where cost effective and reasonable to do so (e.g. mitigation does not result
in an unacceptable level of risk in other areas).
As stated above Non-Core Risks which are not actively taken are managed through a variety of mechanisms
which are available to the firm. These are outlined below:
•
Avoid – the Syndicate will avoid the risk where possible, and where possible this will be managed
through eliminating the cause of the risk;
•
Mitigate – processes will be put in place to minimise the probability of the risk occurring or
minimising the impact of the risk event once it occurs;
•
Transfer – the Syndicate will transfer the risk where it is not appropriate for the Syndicate to retain
and is unable to mitigate it to an appropriate level; and
•
Accept – accept the risks that are not transferable, or economically viable to mitigate.
Where risks are part of the ongoing activities of the business and have the potential to harm the capital
position or ongoing viability of the Syndicate, these will be reviewed as part of the risk appetite process.
Climate change
The Syndicate covers climate change risk in the risk framework and is developing its approach consistent with
market practice and regulatory expectations.
Climate change may have a material adverse effect on the Syndicate’s operating results and financial condition
if the Syndicate were not to adequately assess and price for any increased frequency and severity of weather
events resulting from these environmental factors.
Climate change may also give rise to new environmental liability claims in sectors where insurance customers
are active.
Given the scientific uncertainty of predicting the effect of climate cycles and climate change on the frequency
and severity of catastrophes and the lack of adequate predictive tools, the Syndicate may not be able to
adequately model the associated exposures and potential losses in connection with such catastrophes which
could have a material adverse effect on the Syndicate’s business, financial condition, or operating results.
The Syndicate is most directly exposed to Climate Change physical risks through Property and Specialty
underwriting. The view is that physical risk over the shorter-term is mitigated to an acceptable level by the
short-term nature of relevant policies, allowing for continuous reviews and monitoring of exposure levels and
also through the reinsurance purchased to protect the balance sheet from the impacts of extreme events.
Primary natural-catastrophe perils are modelled and monitored on a quarterly basis through the Board Risk
and Capital Oversight Committee and relevant sub-committees. Limits are in place for these exposures and an
established governance and reporting system in place.
The investment portfolio is constructed and managed based on the Entity Investment Policy along with the
Group Responsible Investment Policy, and assessed as part of an annual Climate Scenario analysis covering
both Physical and Transition risks. This analysis enhances the understanding of the impact of climate specific
risks on the investment portfolio and assesses the resilience of the investment portfolio and Syndicate to a
range of outcomes.
The Syndicate provides credit and political risk insurance to banks and other institutions providing lending to
government and private organisations. In some cases, the lending relates to private organisations involved in
the energy sector or governments or government agencies which are dependent on fossil fuels for their
revenue. A material change in the asset value of fossil fuels may therefore materially adversely affect the
Syndicate’s exposures to credit and political risk.
Syndicate 4711
Report and accounts
31 December 2025
-9-
By order of the Board
Sarah Stanford
Director
19 February 2026
Syndicate 4711
Report and accounts
31 December 2025
-10-
Managing Agent's report
The Directors of the Managing Agent present the audited financial statements in respect of Syndicate 4711
("the Syndicate") for the year ended 31 December 2025.
Future Developments
The Syndicate’s capacity for 2026 is unchanged at £1,300m (2025: £1,300m).
On 27 August 2025, Aspen Insurance Holdings Limited (“Aspen”), the ultimate holding entity of AMAL, and
Sompo Holdings, Inc. (“Sompo”) announced entry into an Agreement and Plan of Merger by and among
Aspen, Endurance Specialty Insurance Ltd., a wholly owned indirect subsidiary of Sompo, and Ajax Ltd., a
wholly owned indirect subsidiary of Sompo, whereby Ajax Ltd. will merge with and into Aspen, with Aspen
surviving the merger as the surviving company.
Following the merger, Aspen would be a direct, wholly-owned
subsidiary of Endurance Specialty Insurance Ltd.
The transaction is expected to close in the first half of 2026
and is subject to customary closing conditions, including, amongst others, insurance regulatory and antitrust
approvals and the expiration of applicable waiting periods.
The Syndicate continues to transact in the classes of general insurance and reinsurance business that it has
transacted in historically.
Aspen’s outwards reinsurance protections are spread throughout the year with a significant number of
placements incepting outside of the 1st January renewal season.
However, those renewals at 1st January were
materially in line with expectations. The Syndicate also continues to maintain a 35% quota share through ABL.
A large proportion of outwards reinsurance spend relates to quota shares which will continue to be beneficial
due to the structure of the contracts.
The Syndicate continues to review the operating model and cost structure in light of the overall strategy of the
Aspen Group and to ensure it is well positioned for any further favourable developments in market conditions.
Directors
The Directors of AMAL at the date of this report are set out on page 3. There wer
e no changes in Directors
during 2025 up to the date of this report.
Directors’ and Officers’ Liability Insurance
The Aspen Group has continued to maintain a Directors' and Officers' insurance policy, which was in place
throughout the year ended 31 December 2025, and provides cover for the Directors and Officers of AMAL.
During the year and up to and including the date of approval of this report, the AMAL’s Articles provided a
qualifying third party indemnity to the Company’s Directors and Officers.
Research and Development
The Syndicate has not undertaken any research and development activities during the year.
Disclosure of Information to the Auditors
The Directors each confirm that:
•
So far as they are aware, there is no relevant audit information of which the Syndicate's auditors are
unaware, and;
•
They have taken all the steps that they ought to have taken as a Director in order to make themselves
aware of any relevant audit information and to establish that the Syndicate's auditors are aware of that
information.
Events after the Reporting Period
There are no events subsequent to the reporting period.
Syndicate 4711
Report and accounts
31 December 2025
-11-
Charitable and Political Contributions
The Syndicate made no political or charitable contributions during 2025 (2024: £nil).
Going Concern
The corporate member, Aspen Underwriting Ltd ("AUL") has already formed and provided capital for
the
2026
underwriting year. The Syndicate is expected to remain a key platform for the Aspen Group. Assessments of
capital, liquidity and stress testing have been undertaken. On the basis of this and continued strong
performance, Aspen Group also expect to have the ability and intention to form a
202
7
underwriting year.
Therefore, AMAL management continue to adopt the going concern basis of accounting for Syndicate 4711.
Auditors
Pursuant to Section 14(2) of Schedule 1 of the Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate
Accounts) Regulations 2008, the auditor will be deemed to be reappointed and Ernst & Young LLP will
therefore continue in office.
By order of the Board
Sarah Stanford
Director
19 February 2026
Syndicate 4711
Report and accounts
31 December 2025
-12-
Statement of Managing Agent’s responsibilities
The Directors of the Managing Agent are responsible for preparing the Syndicate annual accounts in
accordance with applicable law and regulations.
The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 requires the
Directors of the Managing Agent to prepare their Syndicate’s annual accounts for each financial year. Under
that law they have elected to prepare the annual accounts in accordance with United Kingdom Accounting
Standards, including Financial Reporting Standard 102, “The Financial Reporting Standard applicable in the
United Kingdom and Republic of Ireland” (“FRS 102”), and “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, and the Lloyd's Syndicate Accounts
Instructions Version V3.1
as modified by the Frequently Asked Questions Version 1.1 issued by Lloyd’s.
Under the Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 the
Directors of the Managing Agent must not approve the annual accounts unless they are satisfied that they give
a true and fair view of the state of affairs of the Syndicate and of the profit or loss of the Syndicate for that
period. In preparing these annual accounts, the Directors of the Managing Agent are required to:
•
Select suitable accounting policies and then apply them consistently;
•
Make judgements and estimates that are reasonable and prudent;
•
State whether applicable UK Accounting Standards have been followed, subject to any material
departures disclosed and explained in the annual accounts; and
•
Assess the Syndicate’s ability to continue as a going concern, disclosing, as applicable, matters related
to going concern; and
•
Use the going concern basis of accounting unless they either intend to cease trading, or have no
realistic alternative but to do so.
The Directors of the Managing Agent are responsible for keeping adequate accounting records that are
sufficient to show and explain the Syndicate’s transactions and disclose with reasonable accuracy at any time
the financial position of the Syndicate and enable them to ensure that the Syndicate annual accounts comply
with the Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008. They are
responsible for such internal control as they determine is necessary to enable the preparation of Syndicate
annual accounts that are free from material misstatement, whether due to fraud or error, and have general
responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Syndicate and
to prevent and detect fraud and other irregularities.
The Directors of the Managing Agent are responsible for the maintenance and integrity of the Syndicate and
financial information included on the Syndicate’s website. Legislation in the UK governing the preparation and
dissemination of Syndicate annual accounts may differ from legislation in other jurisdictions.
The Directors of the Managing Agent are 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.
Sarah Stanford
Director
19 February 2026
Syndicate 4711
Report and accounts
31 December 2025
-13-
Independent auditor's report to the members of Syndicate 4711
Opinion
We have audited the Syndicate annual accounts of Syndicate 4711
(‘the Syndicate’) for the year ended 31
December 2025
which comprise the Profit and Loss Account: Technical and Non-Technical Account, the
Statement of Other Comprehensive Income, the Balance Sheet, the Statement of Members’ Balances, the Cash
Flow Statement and the related notes 1 to 30 , 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’, 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 of 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.
Other information
The other information comprises the information included in the annual 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 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.
Syndicate 4711
Report and accounts
31 December 2025
-14-
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:
â–ª
the managing agent in respect of the Syndicate has not kept adequate accounting records; or
â–ª
the Syndicate annual accounts are not in agreement with the accounting records; or
â–ª
certain disclosures of the managing agent’s emoluments specified by law are not made; or
â–ª
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 13, 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.
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:
â–ª
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’).
Syndicate 4711
Report and accounts
31 December 2025
-15-
â–ª
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: reviewed
significant correspondence between the Syndicate, Lloyd’s of London and other UK regulatory bodies;
reviewed minutes of the Board and Risk Committee of the managing agent; and gained an
understanding of the managing agent’s approach to governance.
â–ª
For direct laws and regulations, we considered the extent of compliance with those laws and
regulations as part of our procedures on the Syndicate annual accounts.
â–ª
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.
â–ª
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.
â–ª
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. Where this risk
was considered to be higher – such as in respect of valuation of gross and net IBNR and revenue
recognition - we performed audit procedures to address each identified fraud risk:
•
Reviewing accounting estimates for evidence of management bias;
•
Evaluating the business rationale for significant and/or unusual transactions; and
•
Testing the appropriateness of journal entries recorded in the general ledger.
These procedures included testing manual journals and were designed to provide reasonable assurance
that the Syndicate annual accounts were free from fraud or error.
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.
Benjamin Gregory (Senior Statutory Auditor)
For and on behalf of Ernst & Young LLP, Statutory Auditor
London
19 February 2026
Syndicate 4711
Report and accounts
31 December 2025
-16-
Statement of profit or loss and other comprehensive income:
Technical account - General business
For the year ended 31 December 2025
2025
2024
Note
£000
£000
Gross premiums written
5
Outward reinsurance premiums
(612,030 )
(575,894 )
Premiums written, net of reinsurance
Changes in unearned premium
18
Change in the gross provision for unearned premiums
(49,360 )
(119,076 )
Change in the provision for unearned premiums reinsurers’ share
Net change in provisions for unearned premiums
(7,919 )
(43,382 )
Earned premiums, net of reinsurance
Allocated investment return transferred from the non-technical
account
9
Claims paid
18
Gross amount
(304,097 )
(299,571 )
Reinsurers’ share
Net claims paid
(126,609 )
(117,614 )
Change in the provision for claims
18
Gross amount
(225,559 )
(142,643 )
Reinsurers’ share
Net change in the provision for claims
(99,327 )
(78,077 )
Claims incurred, net of reinsurance
(225,936 )
(195,691 )
Net operating expenses
6
(150,623 )
(128,711 )
Balance on the technical account – general business
The results for the years ended 31 December 2025 and 2024 are derived from continuing operations.
Syndicate 4711
Report and accounts
31 December 2025
The notes on pages
23 to 61 form an integral part of these annual accounts.
-17-
Statement of profit or loss and other comprehensive income: (cont'd)
Non-technical account - General business
For the year ended 31 December 2025
2025
2024
Note
£000
£000
Balance on the technical account - general business
Interest and similar income
9
Net realised gains/(losses) on investments
9
(7,948 )
Net unrealised gains on investments
9
Investment expenses and charges
9
Total investment return
Allocated investment return transferred to the general business
technical account
(26,068 )
(10,002 )
Gain on foreign exchange
Other expenses
10
(8,645 )
(768 )
Profit for the financial year
Other comprehensive income:
Currency translation gains
Total comprehensive income for the year
The results for the years ended 31 December 2025 and 2024 are derived from continuing operations.
Syndicate 4711
Report and accounts
31 December 2025
The notes on pages
23 to 61 form an integral part of these annual accounts.
-18-
Balance sheet - assets
As at 31 December 2025
2025
2024
Note
£000
£000
Financial investments
12
Deposits with ceding undertakings
Investments
Provision for unearned premiums
18
Claims outstanding
18
Reinsurers’ share of technical provisions
Debtors arising out of direct insurance operations
13
Debtors arising out of reinsurance operations
14
Other debtors
15
Debtors
Cash at bank and in hand
21
Overseas deposits
Other assets
Deferred acquisition costs
16
Other prepayments and accrued income
Prepayments and accrued income
Total assets
Syndicate 4711
Report and accounts
31 December 2025
The notes on pages
23 to 61 form an integral part of these annual accounts.
-19-
Balance sheet (cont'd) - liabilities
As at 31 December 2025
2025
2024
Note
£000
£000
Member's balances
Total capital and reserves
Provision for unearned premiums
18
Claims outstanding
18
Technical provisions
Creditors arising out of direct insurance operations
19
Creditors arising out of reinsurance operations
20
Other creditors including taxation and social security
22
Creditors
Accruals and deferred income
23
Total liabilities
Total liabilities, capital and reserves
The Syndicate financial statements on pages 1
7
to
61
were approved by the board of Aspen Managing Agency
Limited on
17 February 2026
and were signed on its behalf by:
Paul Bradbrook
Director
19 February 2026
Syndicate 4711
Report and accounts
31 December 2025
The notes on pages
23 to 61 form an integral part of these annual accounts.
-20-
Statement of changes in members' balances
For the year ended 31 December 2025
Note
2025
2024
£000
£000
Members' balances at 1 January
Total comprehensive income for the year
Distribution (to)/from members
11
(58,148 )
Repayment of cash calls
11
(27,586 )
Member's FIT
Members' balance carried forward at 31 December
Members participate in Syndicates by reference to years of account and their ultimate result, assets and
liabilities are assessed with reference to policies incepting in that year in respect of their membership of a
particular year.
Member's FIT is in relation to United States Federal Income Tax, for which payments are made by the
Syndicate on behalf of its Member.
In 2025 this balance was reclassified to other debtors and is presented in
note 15.
Syndicate 4711
Report and accounts
31 December 2025
The notes on pages
23 to 61 form an integral part of these annual accounts.
-21-
Statement of cash flows
For the year ended 31 December 2025
2025
2024
Note
£000
£000
Cash flows from operating activities
Profit for the financial year
Adjustments:
Increase in gross technical provisions
Increase in reinsurers' share of gross technical provisions
(97,108 )
(140,578 )
Decrease/(increase) in debtors
(144,382 )
(Decrease)/increase in creditors
(114,705 )
Movement in other assets/liabilities
Investment return
(26,068 )
(10,002 )
Other
Net cash flows from operating activities
Cash flows from investing activities
Purchase of debt instruments
(210,702 )
(276,738 )
Sale of debt instruments
Purchase of derivatives
(6,664 )
(17,601 )
Sale of derivatives
Investment income received
Other
Net cash flows from investing activities
(71,329 )
Cash flows from financing activities
Distribution to members
11
(58,148 )
(11,967 )
Net cash flows from financing activities
(58,148 )
(11,967 )
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the year
Foreign exchange on cash and cash equivalents
Cash and cash equivalents at the end of the year
Cash at bank and in hand
21
73,895
43,154
Short term deposits with credit institutions
21
20,095
20,631
Cash and cash equivalents at 31 December
93,990
63,785
Syndicate 4711
Report and accounts
31 December 2025
The notes on pages
23 to 61 form an integral part of these annual accounts.
-22-
1.
Basis of Preparation
Syndicate 4711 (‘The Syndicate’) comprises of a corporate member of the Society of Lloyd's that underwrites
insurance and reinsurance business in the London Market. The address of the Syndicate’s Managing Agent is
30 Fenchurch Street, London, EC3M 3BD.
The financial statements have been prepared in compliance with The Insurance Accounts Directive (Lloyd’s
Syndicate and Aggregate Accounts) Regulations 2008, the United Kingdom Accounting Standards, including
Financial Reporting Standard 102, “The Financial Reporting Standard applicable in the United Kingdom and
Republic of Ireland” (“FRS 102”), and “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 and the Lloyd's Syndicate Accounts Instructions Version V3.1 as
modified by the Frequently Asked Questions Version 1.1 issued by Lloyd's. 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 have been prepared on the historical cost basis, except for financial assets at fair value
through profit or loss that are measured at fair value.
The functional currency of the Syndicate is USD. This reflects the fact that the majority of transactions
undertaken by the Syndicate are denominated in USD. The presentation currency of the Syndicate is Pound
Sterling ("GBP"), in order to align the financial statements with the currency used for reporting to the Lloyd's
insurance market. All amounts have been rounded to the nearest thousand, unless otherwise indicated.
Further information regarding the treatment of foreign exchange is included in the accounting policies.
In relation to climate change, since responses to it are still developing, it is not possible to consider all possible
future outcomes when determining asset and liability valuations, and timing of future cash flows, as these are
not yet known. Nevertheless, the current management view is that reasonably possible changes arising from
climate risks would not have a material impact on asset and liability valuations at the year-end date.
Going concern
The corporate member has already formed and provided capital for the
2026
underwriting year. The Syndicate
is expected to remain a key platform for the Aspen Group. Assessments of capital, liquidity and stress testing
have been undertaken.
On
the expectation of ongoing profit realisation from the Syndicate, Aspen also expect
to have the ability and intention to form a 2027 underwriting year.
The Syndicate has sufficient capital for each year of account in its Funds at Lloyd’s ("FAL"), and there is
additional capital available in the corporate member. There is no intention to cease underwriting or cease the
operations of the Syndicate. Therefore, the Directors of the Managing Agent continue to adopt the going
concern basis of accounting in preparing the annual report and financial statements.
2.
Use of Judgements and Estimates
The preparation of the financial statements requires the Directors of the Managing Agent to make judgements,
estimates, and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet
date and the amounts reported for revenues and expenses during the year. However, the nature of estimation
means that actual outcomes could differ from those estimates. The following are the Syndicate’s key sources of
estimation uncertainty and judgment:
Insurance and reinsurance contract technical provisions
For insurance and reinsurance contracts estimates have to be made both for the expected ultimate cost of
claims reported at the reporting date and for the expected ultimate cost of claims incurred but not yet reported
("IBNR") at the reporting date, for claims both gross and net of reinsurance recoveries. It can take a significant
period of time before the ultimate claims can be established with certainty and for some types of policies IBNR
Syndicate 4711
Reports and accounts
31 December 2025
Notes to the Accounts
At 31 December 2025
-23
-
claims form the majority of the liability in the balance sheet. The estimation of IBNR is discussed further under
section 3 - Significant accounting policies. Refer to note 18 for further details of the IBNR.
Further information about the risk that the provision for claims outstanding could be materially different from
the ultimate cost of claims settlement is included in note 4.
Provision for unearned premiums and deferred acquisition costs
For (re)insurance contracts management use their judgement in selecting appropriate earnings patterns for the
business underwritten and associated acquisition costs, in particular for contracts where the pattern of loss
emergence is likely to be markedly uneven. Patterns are calculated (determined) with reference to the
inception and expiry dates of the policies concerned and the likely pattern of loss emergence using the same
underlying considerations that apply to the technical provisions, taking into consideration information
provided by cedants on loss emergence where appropriate. Refer to note 18 for further details of the UPR.
Estimates of future premiums
For certain (re)insurance contracts premium is initially written based on estimates of ultimate premiums
receivable. Estimates are derived from underwriter experience, historical data and use of broker notifications.
These estimates are judgemental and could result in adjustments in subsequent periods to revenue recorded in
the financial statements. The assumptions used to project future premium development include past premium
development, policy mix and pricing trends.
3.
Significant Accounting Policies
The following principal accounting policies have been applied consistently in dealing with items which are
considered material in relation to the Syndicate’s financial statements:
Gross premiums written
Gross written premiums comprise total premiums receivable for the whole period of cover for contracts
entered into in the reporting period plus any adjustments to such premiums receivable in respect of business
written in prior reporting periods, less allowance for expected cancellations. All premiums are shown gross of
commissions payable to intermediaries and exclusive of taxes and levies. Estimates are made for pipeline
premiums, representing amounts due to the Syndicate not yet notified. Revisions to estimates are recognised
as they arise. Estimated premium income in respect of facility contracts, for example binding authorities and
line slips, are deemed to be written in a manner that reflects the expected profile of the underlying business
which has been written.
Reinstatement premiums are estimated in accordance with the contract terms and recorded based upon paid
losses, case reserves as well as IBNR and included within debtors arising out of reinsurance operations in the
balance sheet.
Outward reinsurance premiums
(Re)insurance premiums relating to (re)insurance placed by the Syndicate are accounted for using the same
accounting methodology as used for inwards premiums.
Acquisition costs
Acquisition costs comprise commission and other internal and external costs related to the acquisition of new
and renewal (re)insurance contracts. Ceding commissions receivable on outwards reinsurance contracts are
derived either from outwards reinsurance premiums or as a contribution towards the Syndicate's operating
expenses (including net acquisition costs) depending on the terms and conditions of the contract. Acquisition
costs and ceding commissions are recognised within net operating expenses.
Syndicate 4711
Reports and accounts
31 December 2025
Notes to the Accounts
At 31 December 2025
-24
-
Deposits with ceding undertakings
Deposits with ceding undertakings are cash deposits withheld by ceding entities and are stated at cost. All
deposits on the Syndicate balance sheet relate to funds withheld by Lloyd's Insurance Company.
Retroactive reinsurance
Retroactive reinsurance agreements are reinsurance agreements under which a reinsurer agrees to reimburse
the Syndicate as a result of past insurable events. On initial recognition the reinsurance premiums payable for
coverage are offset by an adjustment to reinsurance recoveries – with any profit or losses arising as a result of a
shortfall or excess respectively in the premium payable compared to the reinsured reserves being recognised in
the statement of profit or loss and other comprehensive income. At each reporting date thereafter, any
movement in the reinsured reserves will be offset by an equal and opposite adjustment to reinsurance
recoveries up to the policy limit (if applicable). Remeasurement gains and losses are recognised within net
incurred claims.
If required by the contract a funds withheld liability is established on inception which is equal to the ceded
premium based on the fair value of the assets retained on the balance sheet. At each reporting date thereafter,
the funds withheld liability is included within creditors arising out of reinsurance operations on the balance
sheet and accounted for on an amortised cost basis and re-measured based on the quantum of the reinsured
paid claims (with periodic settlement of the liability by the Syndicate).
Claims
Claims include all claims occurring during the year, whether reported or not, related internal and external
claims handling costs that are directly related to the processing and settlement of claims, a reduction for the
value of salvage and other recoveries, and any adjustments to claims outstanding from previous years.
(Re)insurance claims are recognised when the related gross (re)insurance claim is recognised according to the
terms of the relevant contract.
Technical provisions
Technical provisions comprise claims outstanding, provisions for unearned premiums and provisions for
unexpired risk.
Claims outstanding
The outstanding claims provision is based on the estimated ultimate cost of all claims incurred but not settled
at the reporting date, whether reported or not, together with related claims handling costs and a reduction for
the expected value of salvage and other recoveries. Delays can be experienced in the notification and settlement
of certain types of claims, therefore, the ultimate cost of these cannot be known with certainty at the reporting
date. The Syndicate takes all reasonable steps to ensure that it has appropriate information regarding its claims
exposure. However, given the uncertainty in establishing claims provisions, it is likely that the final outcome
will prove to be different from the original liability established. The liability is not discounted for the time value
of money.
For (re)insurance contracts, estimates have to be made both for the expected ultimate cost of claims reported
at the reporting date and for the expected ultimate cost of claims incurred, but not yet reported to the
Syndicate, at the reporting date. The estimation of IBNR is generally subject to a greater degree of uncertainty
than the estimation of the cost of settling claims already notified to the Syndicate, where more information
about the claim event is generally available. Claims IBNR may often not be apparent to the insured until many
years after the event giving rise to the claims has happened. Classes of business where the IBNR proportion of
the total reserve 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 calculating
Syndicate 4711
Reports and accounts
31 December 2025
Notes to the Accounts
At 31 December 2025
-25
-
the estimated cost of unpaid claims the Syndicate uses a variety of estimation techniques, generally based upon
statistical analyses of historical experience, which assumes that the development pattern of the current claims
will be consistent with past experience. Allowance is made, however, 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.
A component of these estimation techniques is usually the estimation of the cost of notified but not paid
claims. In estimating the cost of these 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 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.
Where possible the Syndicate adopts multiple techniques to estimate the required level of 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 accident year. The main projection methodologies that are used are:
•
Initial expected loss ratio (“IELR”) method: this method calculates an estimate of ultimate losses by
applying an estimated loss ratio to an estimate of ultimate earned premium for each accident year.
•
Bornhuetter-Ferguson (“BF”) method: the BF method uses as a starting point an assumed IELR and
blends in the loss ratio implied by the claims experience to date by using benchmark loss development
patterns on paid claims data (“Paid BF”) or reported claims data (“Reported BF”).
•
Loss development (“Chain Ladder”): this method uses actual loss data and the historical development
profiles on older accident years to project more recent, less developed years to their ultimate position.
•
Exposure-based method: this method is used for specific large typically catastrophic events such as a
major hurricane. All exposure is identified, and known market information and information from
cedants are used to determine a percentage of the exposure to be taken as the ultimate loss.
The Syndicate establishes a provision for unallocated loss adjustment expenses ("ULAE") when the related
reserve for claims and claim expenses is established. ULAE are expenses that cannot be associated with a
specific claim but are related to claims paid or in the process of settlement, such as internal costs of the claims
function. The determination of the ULAE is subject to judgement.
In addition to these methodologies, actuaries may use other approaches depending upon the characteristics of
the line of business and available data.
Refer to note 18 for further disclosures on claims provisions.
Provision for unearned premiums
Unearned premiums are those proportions of premiums written in a year that relate to periods of risk after the
reporting date computed separately for each (re)insurance contract. Written premiums are recognised as
earned over the period of the policy on a time apportionment basis having regard where appropriate, to the
incidence of risk. The proportion attributable to subsequent periods is deferred as a provision for unearned
premiums.
Unearned reinsurance premiums are those proportions of premiums written in a year that relate to periods of
risk after the reporting date. Unearned reinsurance premiums are deferred over the term of the underlying
direct insurance policies for risks-attaching contracts and over the term of the reinsurance contract for losses-
occurring contracts.
Unearned premiums are deemed monetary items and are revalued using the closing rate.
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Unexpired risks provision
A liability adequacy provision (the unexpired risks provision) is made where the cost of claims and expenses
arising after the end of the financial year from contracts concluded before that date, is expected to exceed the
provision for unearned premiums, net of deferred acquisition costs, and premiums receivable.
The assessment of whether a provision is necessary is made by considering separately each category of
business on the basis of information available at the reporting date, after offsetting surpluses and deficits
arising on products which are managed together. There were no unexpired risk provisions in 2025 (2024:
£nil).
Deferred acquisition costs
Acquisition costs are deferred as at the balance sheet date to the extent that they are attributable to premiums
unearned and are expected to be recovered out of future margins in revenue. All other acquisition costs are
expensed as incurred. Deferred acquisition costs are amortised over the period in which the related premiums
are earned. Ceding commissions are deferred as at the balance sheet date to the extent that they are derived
from outwards reinsurance premiums. Ceding commissions deferred as at the balance sheet date are included
within accruals and deferred income.
Deferred acquisition costs and deferred ceding commissions are deemed to be monetary items and are
revalued using the closing rate.
(Re)insurance assets
The Syndicate cedes (re)insurance risk in the normal course of business for all of its businesses. Reinsurance
assets represent balances due from reinsurance companies. Amounts recoverable from reinsurers are
estimated in a manner consistent with the outstanding claims provision or settled claims associated with the
reinsurer’s policies and are in accordance with the related reinsurance contract.
Reinsurance assets are reviewed for impairment at each reporting date, or more frequently, when an indication
of impairment arises during the reporting year. Impairment occurs when there is objective evidence as a result
of an event that occurred after initial recognition of the reinsurance asset that the Syndicate may not receive all
outstanding amounts due under the terms of the contract and the event has a reliably measurable impact on
the amounts that the Syndicate will receive from the reinsurer. The impairment loss is recorded in the
statement of profit or loss and other comprehensive income.
Profit commission
Profit commission is generally accrued in the statement of profit or loss and other comprehensive income
within net operating expenses in accordance with the earned profit.
(Re)insurance receivables
(Re)insurance receivables are recognised when due and measured on initial recognition at the fair value of the
consideration received or receivable. The carrying value of (re)insurance receivables is reviewed for
impairment whenever events or circumstances indicate that the carrying amount may not be recoverable, with
the impairment loss recorded in the statement of profit or loss and other comprehensive income.
(Re)insurance payables
(Re)insurance payables are recognised when due and measured on initial recognition at the fair value of the
consideration received less directly attributable transaction costs. (Re)insurance payables are derecognised
when the obligation under the liability is settled, cancelled or expired. Where applicable, (re)insurance
payables include the funds withheld liability which is established on inception of a reinsurance contract
(including retroactive reinsurance).
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Financial instruments
As permitted by FRS 102, the Syndicate has elected to apply the recognition and measurement provisions of
IAS 39 Financial Instruments to account for all of its financial instruments.
The Syndicate classifies its financial assets into the following categories: shares and other variable-yield
securities and units in unit trusts, debt securities and other fixed income securities, loans with credit
institutions and derivative assets - at fair value through profit or loss; and deposits with credit institutions
loans and receivables. Management determines the classification of its investments at initial recognition and
re-evaluates this at every reporting date.
Financial assets at fair value through profit or loss
A financial asset is classified into this category at inception if:
•
they are acquired principally for the purpose of selling in the short term; or
•
if they form part of a portfolio of financial assets in which there is evidence of short term profit-taking; or
•
if so designated by Management to minimise any measurement or recognition inconsistency with the
associated liabilities.
Financial assets designated at fair value through profit and loss at inception are those that are managed and
whose performance is evaluated on a fair value basis. Information about these financial assets is provided
internally on a fair value basis to the Syndicate’s key management personnel. The Syndicate’s investment
strategy is to invest in listed and unlisted fixed interest rate debt securities, and derivatives designated upon
initial recognition at fair value through profit or loss.
The fair values of financial instruments traded in active markets are based on quoted bid prices on the balance
sheet date. A market is regarded as active if quoted prices are readily and regularly available from an exchange,
dealer, broker, industry group, pricing service, or regulatory agency, and those prices represent actual and
regularly occurring market transactions on an arm’s length basis.
The fair values of financial instruments that are not traded in an active market (for example over-the-counter
derivatives), are established by the Directors using valuation techniques which seek to arrive at the price at
which an orderly transaction would take place between market participants.
Net gains or losses arising from changes in the fair value of financial assets at fair value through profit or loss
are presented in the statement of profit and loss and other comprehensive income within ‘Unrealised gains on
investments’ or ‘Unrealised losses on investments’ in the period in which they arise.
Derivatives are held for trading and are initially recognised at fair value on the date on which a derivative
contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value are
recognised immediately in the statement of profit and loss and other comprehensive income. Fair values are
obtained from quoted market prices in active markets, including recent market transactions. All derivatives are
carried as assets when the fair value is positive and as liabilities when the fair value is negative.
Financial liabilities
Other financial liabilities relate to derivatives which are designated at fair value through profit and loss, and
classified in other creditors. Creditors are also financial liabilities and are recognised initially at fair value, net
of directly attributable transaction costs. Creditors are subsequently stated at amortised cost, using the
effective interest rate method. For short term creditors (due within one year), no discounting is applied.
Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled,
or expires.
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Impairment of financial assets
For financial assets not carried at fair value through profit or loss, the Syndicate assesses at each balance sheet
date whether there is objective evidence that a financial asset or group of financial assets is impaired. A
financial asset or group of financial assets is impaired and impairment losses are incurred only if there is
objective evidence of impairment as a result of one or more events that have occurred after the initial
recognition of the asset (a ‘loss event’), and that loss event (or events) has an impact on the estimated future
cash flows of the financial asset or group of financial assets that can be reliably estimated. Objective evidence
that a financial asset or group of assets is impaired includes observable data that comes to the attention of the
Syndicate about the following events:
•
significant financial difficulty of the issuer or debtor;
•
a breach of contract, such as a default or delinquency in payments;
•
the lender, for economic or legal reasons relating to the borrower’s financial difficulty, granting to the
borrower a concession that the lender would not otherwise consider;
•
it becoming probable that the issuer or debtor will enter bankruptcy or other financial reorganisation;
•
the disappearance of an active market for that financial asset because of financial difficulties; or
•
observable data indicating that there is a measurable decrease in the estimated future cash flow from a
group of financial assets since the initial recognition of those assets, although the decrease cannot yet
be identified with the individual financial assets in the group. The observable data could be adverse
changes in the payment status of issuers or debtors in the group, or national or local economic
conditions that correlate with defaults on the assets in the group.
If there is objective evidence that an impairment loss has been incurred on loans and receivables, the amount
of the loss is measured as the difference between the asset’s carrying amount and the present value of
estimated future cash flows (excluding future credit losses that have been incurred) discounted at the financial
asset’s original effective interest rate. The carrying amount of the asset is reduced and the amount of the loss is
recognised in the statement of profit and loss and other comprehensive income for the period. If a loan has a
variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate
determined under contract. As a practical expedient, the Syndicate may measure impairment on the basis of an
instrument’s fair value using an observable market price.
Investment return
Investment return comprises all investment income (which includes the interest income for financial assets
carried at amortised cost, using the effective interest method), realised investment gains and losses and
movements in unrealised gains and losses, net of investment expenses, charges and interest payable on
financial liabilities carried at amortised cost, using the effective interest method.
Realised gains and losses on investments carried at fair value through profit and loss are calculated as the
difference between net sales proceeds and purchase price. In the case of investments included at amortised
cost, realised gains and losses are calculated as the difference between sale proceeds and their latest carrying
value. Movements in unrealised gains and losses on investments represent the difference between the fair
value at the balance sheet date and their purchase price or their fair value at the last balance sheet date,
together with the reversal of unrealised gains and losses recognised in earlier accounting periods in respect of
investment disposals in the current period.
An allocation of actual investment return on investments supporting the general insurance technical provisions
and associated equity is made from the non-technical account to the technical account.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if, and
only if:
•
there is a currently enforceable legal right to offset the recognised amounts; and
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•
there is an intention to settle on a net basis, to realise the assets and settle the liabilities
simultaneously.
Foreign
currencies
Transactions in foreign currencies are translated to the functional currency using the exchange rates at the date
of the transactions. The Syndicate’s monetary assets and liabilities denominated in foreign currencies are
translated into the functional currency at the rates of exchange at the balance sheet date. Non
-
monetary assets
and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the
functional currency at the exchange rate at the date that the fair value was determined. Non
-
monetary items
denominated in foreign currencies that are measured at historical cost are translated to the functional currency
using the exchange rate at the date of the transaction. For the purposes of foreign currency translation,
unearned premiums and deferred acquisition costs are treated as if they are monetary items.
Differences arising on translation of foreign currency amounts relating to the insurance operations of the
Syndicate are included in the non
-
technical account. Differences arising on translation from the functional
currency to the presentational currency are recognised in other comprehensive income.
Cash and cash equivalents
Cash and cash equivalents comprise cash balances and call deposits with maturities of three months or less
from the acquisition date that are subject to an insignificant risk of changes in fair value and are used by the
Syndicate in the management of its short
-
term commitments. Cash and cash equivalents are carried at
amortised cost in the balance sheet.
Bank overdrafts that are repayable on demand and form an integral part of the Syndicate’s cash management
are included as a component of cash and cash equivalents for the purpose of the statement of cash flows.
Overseas deposits
Overseas deposits, included in Other Assets, comprise funds invested by Lloyd’s Treasury and are held to
satisfy conditions associated with conducting underwriting business in certain countries. Overseas deposits are
stated at fair value at the balance sheet date.
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 incom
e tax (
currently at 25%
) deducted from Syndicate
investment income is recoverable by managing agents and consequently the distribution made to members or
their members’ agents is gross of tax. Capital appreciation falls within trading income and is also distributed
gross of tax.
No provision has been made for any United States Federal Income Tax payable on underwriting results or
investment earnings. Any payments on account made by the Syndicate during the year have been included in
the balance sheet under the heading ‘Other assets’.
No provision has been made for any other overseas tax payable by members on underwriting results.
Member's expenses
Member's expenses represent fees directly attributable to the activities undertaken by the Managing Agent,
being Aspen Managing Agency Limited, in line with their participation in the Syndicate. The Syndicate is
charged on behalf of the Managing Agent agency fees, claims handling expenses, underwriting expenses, as
well as a variety of other administrative and operational costs. Additionally, auditors remuneration payable to
the Syndicate's auditors for the audit of the Syndicate annual returns is charged directly to the Syndicate.
Provisions
A provision is recognised in the balance sheet when the Syndicate has a present legal or constructive obligation
as a result of a past event, that can be reliably measured and it is probable that an outflow of economic benefits
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will be required to settle the obligation. Provisions are recognised at the best estimate of the amount required
to settle the obligation at the reporting date.
Other debtors and creditors
Other debtors and creditors comprise amounts due in the normal course of business. Other debtors / creditors
are initially included at transaction price and, if applicable, are subsequently measured at amortised cost using
the effective method rate.
Operating expenses
Where expenses are incurred by the Managing Agent for the administration of the Syndicate, these expenses
are apportioned appropriately based on type of expense. Expenses that are incurred jointly are apportioned
between the Managing Agent and the Syndicate on bases depending on the amount of work performed,
resources used, and the volume of business transacted.
Other income / expenses
Income and expenses which are one-off in nature and not directly related to underwriting performance are
reported within other income / expenses.
4.
Risk and Capital Management
Introduction and overview
The Syndicate is exposed to a range of financial risks through its financial assets, financial liabilities,
reinsurance assets and policyholder liabilities. In particular, the key financial risk is that the proceeds from
financial assets are not sufficient to fund the obligations arising from insurance policies as they fall due. The
most important components of this financial risk are insurance risk, market risk (including interest rate risk
and currency risk), credit risk, and liquidity risk.
The key risks for the Syndicate are as set out in the Principal Risks and Uncertainties section within the
Strategic Report of the Managing Agent.
Risk management framework
The Board of Directors of AMAL (“the Board”) considers effective identification, measurement, monitoring,
management and reporting of the risks facing the Syndicate to be key elements of its responsibilities. The
Board ensures that the Syndicate operates an effective risk management and control framework which includes
risk management, compliance and internal control systems. The Syndicate, as an operating entity within the
Aspen Group, benefits from the Group's established risk management practices. The Group's risk management
policies are established to identify and analyse the risks faced by the Group and the Managing Agent, to set
appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies
and systems are reviewed regularly to reflect changes in market conditions and the Syndicate and Managing
Agent's activities.
The Board of Directors of the Managing Agent has overall responsibility for the establishment and oversight of
the Syndicate’s risk management framework. The Board has established a Risk and Capital Oversight
Committee to oversee the operation of the Syndicate’s risk management framework and to review and monitor
the management of the risks to which the Syndicate is exposed. The Risk Committee has delegated oversight of
the management of aspects of insurance risks to the Underwriting and Reserving Committee, which is
responsible for developing and monitoring insurance risk management policies, and the management of
aspects of financial risks to the Asset Liability Management Investment Committee, which is responsible for
developing and monitoring financial risk management policies.
The risk management policies are established to identify and analyse the risks faced by the Syndicate, to set
appropriate risk limits and controls, and to monitor risks and adherence to limits.
Syndicate 4711
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Notes to the Accounts
At 31 December 2025
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A. Insurance Risk
Insurance risk is defined as the risk that underwriting results vary from their expected amounts, including the
risk that reserves established in respect of prior periods are understated. Insurance risk includes the following:
•
Underwriting risk: The variation of accident year technical result from its expected value.
Underwriting risk can be further split into sub-categories including:
•
Catastrophe accumulation risk: the risk that losses from natural catastrophes exceed expected
levels;
•
Pricing calibration risk: the risk that actual technical results differ from expected values as a
result of invalid assumptions, methodology, or parameters used in the pricing process;
•
Large claims risk: the risk that losses from a single man-made event, or group of related
events, exceed the expected levels;
•
Attritional risk: the risk that the total of all losses other than catastrophe and large losses
exceeds the expected level; and
•
Reinsurance mitigation risk: the risk that gross losses are not reduced by reinsurance
recoveries to the extent expected.
•
Reserving risk: the risk that the reserves established in respect of insurance claims incurred are
insufficient to settle the claims and associated expenses in full.
Processes for addressing and monitoring risk
Exposure to underwriting and reserving risks are modelled using the Internal Model to measure the associated
capital requirements on both the one year SCR measure stipulated by Solvency UK and the ultimate SCR basis
used by Lloyd’s to set capital requirements. The Internal Model has been assessed by Lloyd’s as meeting the
tests and standards for Solvency UK approval. Modelling of insurance risk exposures is the key process for
monitoring and managing insurance risk.
The UK Reserving Risk Policy and Aspen Group Underwriting Risk Policy evidence how Aspen manages the
risk of loss or of adverse change in the values of insurance and reinsurance liabilities, resulting from
inadequate pricing and provisioning assumptions. The Group Underwriting Risk Policy requires and defines
the use of Aspen Underwriting Principles (“AUPS”) or Underwriting Guidelines for each underwriting team.
The Group Pricing Standard which establishes the Underwriting Guidelines sets out a series of key principles
translated into specific guidelines, requirements, processes and management controls, the compliance with
which is mandatory for all underwriters. The Pricing Policy Document ("PPD") set out a series of standards
and principles to apply to all business underwritten.
Underwriting risk is also managed through the purchase of outwards reinsurance. The Syndicate benefits from
scale in outwards reinsurance purchasing by participating on group reinsurance programmes. The Syndicate
also benefits through a significant quota share protection from its fellow subsidiary ABL.
The Insurance Risk policy defines Aspen’s approach to management of material risk concentrations by
categorising those risks, setting tolerances and limit, measuring, monitoring, reporting and escalating natural
catastrophe and non-natural catastrophe accumulations. This includes the approach to managing the risk that
gross losses are not reduced by reinsurance recoveries to the extent expected.
Significant to the management of insurance risk is the LPT with Enstar which covers all
business on the 2019
and prior accident years. This contract ensures that the Syndicate is substantially covered against deterioration
on the 2019 and prior accident years effective from 1 October 2021 for losses up to a Group deterioration of
$450m. Subject to this Group limit, any deterioration on 2019 and prior accident year claim reserves in the
Company due to inflation or other reasons are fully recoverable.
The Key Risk limits are monitored and reported in the UK Chief Risk Officer's report to the AMAL Risk and
Capital Oversight Committee.
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Material risk concentrations
The Syndicate has limited its exposure to material risk concentrations by imposing maximum claim amounts
on certain contracts as well as the use of reinsurance arrangements in order to limit exposures, so they are
managed within key risk limits. The material risk concentrations managed via key risk limits include natural
catastrophe risks (such as hurricanes, earthquakes, and flood damage) and man-made catastrophic events
(such as acts of war, acts of terrorism, and losses resulting from political instability). The effectiveness of these
risk mitigation techniques is assessed through continual monitoring of the underlying risk profile and
escalation of deviations from plan.
Concentration of insurance risk
The Syndicate's exposure to insurance risk is well diversified. The following table provides an analysis of the
geographical breakdown of its gross written premiums by class of business:
Year 2025
Marine
aviation and
transport
Fire and other
damage to
property
Third party
liability
Credit and
suretyship
Reinsurance
Total
£000
£000
£000
£000
£000
£000
UK
12,406
16,866
135,580
8,594
27,302
200,748
Asia
3,753
5,102
41,012
2,600
12,901
65,368
Europe
7,561
10,279
82,628
5,237
9,737
115,442
US
25,737
34,991
281,286
17,829
179,789
539,632
Other
4,074
5,539
44,525
2,822
25,499
82,459
Total
53,531
72,777
585,031
37,082
255,228
1,003,649
Year 2024
Accident
and Health
Marine,
aviation and
transport
Fire and other
damage to
property
Third party
liability
Miscellaneous Reinsurance
Total
£000
£000
£000
£000
£000
£000
£000
UK
381
7,750
31,170
113,973
18,422
39,151
210,847
Asia
104
2,112
8,492
31,051
5,019
13,617
60,395
Europe
230
4,687
18,850
68,926
11,141
6,872
110,706
US
743
15,114
60,787
222,264
35,925
212,686
547,519
Other
132
2,716
10,922
39,933
6,455
23,237
83,395
Total
1,590
32,379
130,221
476,147
76,962
295,563 1,012,862
Sensitivity to insurance risk
The liabilities established could be significantly lower or higher than the ultimate cost of settling the claims
arising. This level of uncertainty varies between the classes of business and the nature of the risk being written
and can arise from developments in case reserving for large losses and catastrophes, or from changes in
estimates of IBNR. There have been no changes from the previous period in the methods and assumptions
used to determine the sensitivity of insurance risk.
The following table presents the profit and loss impact of the sensitivity of the value of insurance liabilities
disclosed in the accounts to potential movements in the assumptions applied within the technical provisions.
Given the nature of the business underwritten by the Syndicate, the approach to calculating the technical
provisions for each class can vary and as a result the sensitivity performed is to apply a beneficial and adverse
risk margin to the total insurance liability. The amount disclosed in the table represents the profit or loss
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impact of an increase or decrease in the insurance liability as a result of applying the sensitivity.
The amount
disclosed for the impact on claims outstanding – net of reinsurance represents the impact on both the profit
and loss for the year and member balance.
General insurance business sensitivities as at 31 December 2025
Sensitivity
+5.0%
-5.0%
£000
£000
Claims outstanding - gross of reinsurance
(86,024 )
Claims outstanding - net of reinsurance
(32,488 )
General insurance business sensitivities as at 31 December 2024
Sensitivity
+5.0%
-5.0%
£000
£000
Claims outstanding - gross of reinsurance
(78,401 )
Claims outstanding - net of reinsurance
(28,819 )
B. Financial Risk
The focus of financial risk management for the Syndicate is ensuring that the proceeds from its financial assets
are sufficient to fund the obligations arising from its insurance contracts. The goal of the investment
management process is to optimise the risk
-
adjusted investment income and risk
-
adjusted total return by
investing in a diversified portfolio of securities, whilst ensuring that the assets and liabilities are managed on a
cash flow and duration matching basis.
Credit Risk
Credit risk is the risk of loss to the Syndicate if a counterparty to a financial instrument or reinsurance
agreement fails to meet its contractual obligations. The Syndicate is exposed to credit risk through its
investment holdings (cash, debt securities and other fixed income securities), its reinsurers’ shares of
insurance liabilities and debtors arising out of direct insurance and reinsurance operations. As already stated
within the Internal Model and the management process, the Syndicate treats credit risk relating to fixed
income security investments as part of Market risk.
The nature of the Syndicate's exposures to credit risk and its objectives, policies and processes for managing
credit risk have not changed significantly from the prior year.
Processes for addressing risk
As with Insurance risk, exposure to credit risks are modelled using using the Internal Model to measure the
associated capital requirements on both the one year SCR measure stipulated by Solvency UK and the ultimate
SCR basis used by Lloyd’s to set capital requirements.
In certain situations, the Syndicate requires reinsurers to place collateral to act as security against the credit
risk arising out of reinsurance arrangements.
The processes for addressing credit risk in relation to financial instruments has already been dealt with as part
of the explanation of the processes to address market risk. The Group Credit Risk and UK Financial Risk
policies define the processes for assessing, monitoring, and managing credit exposure to intermediaries,
policyholders, and reinsurance counterparties.
Material risk concentrations
The Syndicate is potentially exposed to concentrations of credit risk in respect of amounts recoverable from
reinsurers, and insurance and reinsurance balances owed by the brokers with whom it transacts business. The
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Syndicate manages the levels of credit risk by placing limits on its exposure to a single counterparty, or groups
of counterparty. Such risks are subject to regular review. The creditworthiness of reinsurers is considered on
an annual basis by reviewing their financial strength prior to finalisation of any contract. In addition,
management assesses the creditworthiness of all reinsurers and intermediaries by reviewing credit grades
provided by rating agencies and other publicly available financial information. The recent payment history of
reinsurers is also used to update the reinsurance purchasing strategy. The Syndicate has risk limits for the
amount of exposure to both third party and intragroup related reinsurers and any breaches of those limits are
reported to the AMAL Risk and Capital Oversight Committee and Board and the Syndicate makes use of
collateral arrangements to further reduce credit risk. The effectiveness of these risk mitigation techniques is
assessed through continual monitoring of the underlying risk profile.
The tables below show the maximum exposure to credit risk (including an analysis of financial assets exposed
to credit risk) for the components of the balance sheet, with analysis by credit ratings of the counterparties
issued by Standard and Poor's. AAA is the highest possible rating.
2025
AAA
AA
A
BBB
<BBB
Not
rated
Total
£000
£000
£000
£000
£000
£000
£000
Shares and other
variable yield securities
and unit trusts
Debt securities
Overseas deposits
13,573
3,577
4,618
7,027
18 21,424
50,237
Derivative assets
Deposits with ceding
undertakings
Reinsurer' share of
claims outstanding
Debtors arising out of
reinsurance operations
Debtors arising out of
direct insurance
operations
Cash at bank and in hand
Other debtors
Total credit risk
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2024
AAA
AA
A
BBB
<BBB
Not
rated
Total
£000
£000
£000
£000
£000
£000
£000
Shares and other variable
yield securities and unit
trusts
Debt securities
Overseas deposits
17,224
2,719
3,900
2,535
10,005
14,160
50,543
Derivative assets
Deposits with ceding
undertakings
Reinsurer' share of claims
outstanding
Debtors arising out of
reinsurance operations
Debtors arising out of direct
insurance operations
Cash at bank and in hand
Other debtors
Total credit risk
The non rated debt securities and overseas deposits as other assets are based on Standard & Poors rating, as
used by the Syndicate. However, these investments may hold a rating with other rating agencies.
Financial assets that are past due or impaired
The Syndicate has debtors arising from direct insurance and reinsurance operations that are past due but not
impaired at the reporting date. The Syndicate do not consider these debtors to be impaired on the basis of
stage of collection of amount owed to the Syndicate.
The Syndicate also holds a provision for debtors arising from direct insurance operation at the reporting date.
These debtors have been individually assessed for impairment by considering information such as the
occurrence of significant changes in the counterparty’s financial position, patterns of historical payment
information and disputes with counterparties.
An analysis of the carrying amounts of past due but not impaired debtors is presented in the table below:
Syndicate 4711
Reports and accounts
31 December 2025
Notes to the Accounts
At 31 December 2025
-36
-
2025
Neither past
due nor
impaired assets
Past due but not
impaired assets
Impairment
allowance
Total
£000
£000
£000
£000
Shares and other variable yield
securities and unit trusts
Debt and other fixed income
securities
Overseas deposits as other assets
50,237
—
—
50,237
Derivative assets
Deposits with ceding undertakings
Reinsurers' share of claims
outstanding
Debtors arising out of direct
insurance operations
(6,444 )
Debtors arising out of reinsurance
operations
(464 )
Cash at bank and in hand
Other debtors
Total
(6,908 )
2024
Neither past
due nor
impaired assets
Past due but not
impaired assets
Impairment
allowance
Total
£000
£000
£000
£000
Shares and other variable yield securities
and unit trusts
Debt and other fixed income securities
Overseas deposits as other assets
50,543
—
—
50,543
Derivative assets
Deposits with ceding undertakings
Reinsurers' share of claims outstanding
Debtors arising out of direct insurance
operations
(6,910 )
Debtors arising out of reinsurance
operations
(1,205 )
Cash at bank and in hand
Other debtors
Total
(8,115 )
The table below sets out a reconciliation of changes in impairment allowance during the period for each class of
financial asset at the balance sheet date:
2025
1 Jan
Movement in
impairment
allowance
31 Dec
£000
£000
£000
Debtors arising out of direct
insurance operations
(466 )
Debtors arising out of
reinsurance operations
(741 )
Total
(1,207 )
Syndicate 4711
Reports and accounts
31 December 2025
Notes to the Accounts
At 31 December 2025
-37
-
2024
1 Jan
Movement in
impairment
allowance
31 Dec
£000
£000
£000
Debtors arising out of direct
insurance operations
Debtors arising out of reinsurance
operations
(1,221 )
Total
The table below sets out the age analysis of financial assets that are past due but not impaired at the balance
sheet date:
Past due but not impaired
2025
0-3 months
past due
3-6 months
past due
6-12 months
past due
Greater
than 1 year
past due
Total
£000
£000
£000
£000
£000
Debtors arising out of direct
insurance operations
Debtors arising out of reinsurance
operations
Total
Past due but not impaired
2024
0-3 months
past due
3-6 months
past due
6-12 months
past due
Greater
than 1 year
past due
Total
£000
£000
£000
£000
£000
Debtors arising out of direct insurance
operations
Debtors arising out of reinsurance
operations
Total
Liquidity Risk
Liquidity risk is the risk that the Syndicate will encounter difficulty in meeting obligations arising from its
insurance contracts and financial liabilities. The Syndicate is exposed to daily calls on its available cash
resources mainly from claims arising from insurance contracts.
The nature of the Syndicate’s exposures to liquidity risk and its objectives, policies and processes for managing
liquidity risk have not changed significantly from the prior year.
Liquidity risk includes the following:
•
Payment default risk: the risk that there is insufficient cash to make payments when due and that no
additional cash can be made available by borrowing, sale of assets, or capital raising;
•
Risk of unplanned asset realisation losses: the risk that securities are required to be sold at a loss to
meet liquidity requirements;
•
Risk of failure of credit facility: the risk that advances from the credit facility are unavailable;
•
Group liquidity risk: the risk that liquidity cannot be secured for a Group company from elsewhere in
the Group; and
Syndicate 4711
Reports and accounts
31 December 2025
Notes to the Accounts
At 31 December 2025
-38
-
•
Collateral risk: the risk that the Syndicate is unable to provide collateral to a third party when
contractually required to do so.
Processes for addressing risk
Unlike insurance, market, and credit risk, the Syndicate does not model and manage liquidity risk using its
Internal Model as it is not a risk that is mitigated by holding capital against it. The Syndicate's annual Stress &
Scenario Testing (“SST”) process is used to determine the basis of the key liquidity risk limit. The Group
Liquidity Risk and UK Financial Risk policies provide further details of how liquidity risks are identified,
monitored, managed, and modelled. This includes details of an escalation process for a breach of the minimum
free funds limit.
Material risk concentrations
The Syndicate limits its exposure to material risk concentrations through the operation of the Group Liquidity
Risk and UK Financial Risk Policies. These highlight the measures that Aspen have put in place in order to
maintain an agreed amount of unencumbered assets in cash and cash equivalents. These measures include
concentration limits to ensure the liquidity of assets, appropriateness of the marketability or realisability of
assets. A liquidity contingency funding plan is detailed in the Group Treasury Liquidity Playbook.
Liquidity stress testing is carried out against the Syndicate's and the Group's risk profiles at least annually by
the Risk Management department as part of the Stress and Scenario Testing programme. This allows
management to identify the potential strains on liquidity as a result of the scenarios assessed as well as gaining
understanding of the Group's ability to support the liquidity needs of entities such as the need arises. Cash flow
forecasting is also used to reduce liquidity risk. The effectiveness of these risk mitigation techniques is assessed
through continual monitoring of the underlying risk profile. The tables below analyse the Syndicate's assets
and liabilities into their relevant maturity groups. For financial instruments this is based on the period
remaining at the year end to their contractual maturities, and for insurance contract assets and liabilities it is
based on their expected settlement dates.
Management of liquidity risk
The Syndicate’s approach to managing liquidity risk is to ensure, as far as possible, that it will always have
sufficient liquidity to meet its liabilities when they fall due, under both normal and stressed conditions.
The Syndicate’s approach to managing its liquidity risk is as follows:
•
Forecasts are prepared and revised on a regular basis to predict cash outflows from insurance
contracts over the short, medium and long term;
•
The Syndicate purchases assets with durations not greater than its estimated insurance contract
outflows;
•
Assets purchased by the Syndicate are required to satisfy specified marketability requirements;
•
The Syndicate maintains cash and liquid assets to meet daily calls on its insurance contracts;
•
The Syndicate holds significant committed borrowing facilities from a range of highly rated banks to
enable cash to be raised in a relatively short time
-
span; and
•
The Syndicate regularly updates its contingency funding plans to ensure that adequate liquid financial
resources are in place to meet obligations as they fall due in the event of reasonably foreseeable
abnormal circumstances.
Maturity analysis of syndicate liabilities
The maturity analysis presented in the table below shows the remaining contractual maturities for the
Syndicate’s insurance contracts and financial instruments. For insurance and reinsurance contracts, the
contractual maturity is the estimated date when the gross undiscounted contractually required cash flows will
occur. For financial liabilities, it is the earliest date on which the gross undiscounted cash flows (including
contractual interest payments) could be paid assuming conditions are consistent with those at the reporting
date.
Syndicate 4711
Reports and accounts
31 December 2025
Notes to the Accounts
At 31 December 2025
-39
-
Undiscounted net cash flows
2025
No
maturity
stated
0-1 years
1-3 years
3-5 years
>5 years
Total
£000
£000
£000
£000
£000
£000
Claims outstanding
Derivatives
Creditors
Total
Undiscounted net cash flows
2024
No
maturity
stated
0-1 years
1-3 years
3-5 years
>5 years
Total
£000
£000
£000
£000
£000
£000
Claims outstanding
Derivatives
Creditors
Total
Market Risk
Market risk is the risk that the fair value or future cash flows of a financial instrument or insurance contract
will fluctuate because of changes in market prices.
The objective of market risk management is to manage and control market risk exposures within acceptable
parameters, while optimising the return on risk. The nature of the Syndicate exposures to market risk and its
objectives, policies and processes for managing market risk have not changed significantly from the prior year.
Within Aspen’s Risk Universe six categories of market risk are defined:
•
Currency risk: the risk of adverse variation in the US dollar value of net assets in foreign currencies as
a result of currency rate movements;
•
Interest rate risk: the risk of variation in the market value of fixed income securities as a result of
changes in prevailing interest rates. AMAL management classify reinvestment risk as the risk of lower
yields on the reinvestment of the proceeds from coupons payments, maturities and prepayments,
which is a sub-category of interest rate risk;
•
Investment credit risk comprising default and downgrade risk and spread risk: Two components of
this: (i) the risk of loss as a result of a default by, or decline in the market value of, an issuer or
counterparty (entity and aggregate) or issuer downgrade; and (ii) the risk of variation in the fair value
of fixed income securities as a result of changes in the yield differential (’spread’) relative to risk-free
securities (typically government debt), due to changes in credit risk or other risk factors (e.g. the
liquidity of an asset);
•
Equity risk: AMAL management define equity risk as the risk of adverse movements in the market
price of investments (or their derivatives) other than fixed income securities. Unlike fixed income
securities the value of equities is not directly linked to interest rates and spreads, there are many
factors that affect the value of investments. The Syndicate does not invest in equities so this risk is not
currently relevant to the Syndicate;
Syndicate 4711
Reports and accounts
31 December 2025
Notes to the Accounts
At 31 December 2025
-40
-
•
Asset concentration risk: the aggregate value of the Syndicate's investment portfolio may be at greater
risk if it is overexposed to the same asset or a group of similar assets with similar risk dynamics.
Concentrations which AMAL management seek to manage include types of asset, economic sector of
issuer, and securities of the same issuer; and
•
Country Risk: The risk of variations in the valuation of assets as a result of investing in a specific
geography e.g. macroeconomic factors, exposure to natural disasters and/or political instability.
Processes for addressing and monitoring risk
As with insurance risk, Aspen model exposure to market risk using the Internal Model to measure the
associated capital requirements on both an internal basis and the Solvency UK SCR regulatory basis. Modelling
market risk exposures is a key process for monitoring and managing market risk.
The Group Investment Policy and UK Financial Risk Policy describe the investment strategy in the context of
the annual business plan, asset allocation, and concentration limits at group and entity levels.
The UK Financial Risk Policy describes the measurement of market risks, and specifically describes what is
permissible with regards to the use of derivatives in order to manage currency positions, portfolio duration,
and interest rate risk in the investment portfolio.
Use of derivatives is limited to interest rate swaps, forward rate transactions, bond options, interest rate
futures, foreign exchange spot and forward transactions, and currency options. During 2025, the Syndicate
only entered into foreign exchange forward transactions.
The Asset and Liability Management Policy underpinned by Group Currency Risk Policy & Group Interest Rate
Risk Policy defines Aspen’s approach to duration and currency matching. Management monitors the value,
currency, and duration of cash and investments held by the Syndicate to ensure that it is able to meet the
insurance and other liabilities as they become due. The following components of both cash matching and
duration matching are employed to manage the investment portfolio:
•
the average duration of liabilities;
•
the outlook for interest rates and the yield curve;
•
the need for cash to pay claims; and
•
total return.
Material risk concentrations
As with insurance risks as well as modelling exposures and the capital required to address potential market
risks using the Internal Model, the Syndicate's exposure to material risk concentrations has been limited.
Key Risk Limits regarding asset allocation, overall credit rating, and the volatility of investment portfolio have
been defined by management and approved by the Board. In order that the AMAL Board can manage the
Syndicate's currency risks within the regulatory parameters required, a Key Risk Indicator approved by the
Board limits the mismatch between assets and liabilities where there are material positions in currencies other
than the functional currency of the Syndicate. The effectiveness of risk mitigation techniques is assessed
through continual monitoring of the underlying risk profile and escalation of any deviations from plan.
Foreign Currency Risk
The table below summarises the carrying value of the Syndicate's assets and liabilities, at the reporting date:
Syndicate 4711
Reports and accounts
31 December 2025
Notes to the Accounts
At 31 December 2025
-41
-
2025
Sterling
US dollar
Euro
Canadian
dollar
Australian
dollar
Japanese
Yen
Other
Total
£000
£000
£000
£000
£000
£000
£000
£000
Investments
Reinsurers'
share of
technical
provisions
Debtors
Other assets
Prepayments
and accrued
income
Total assets
Technical
provisions
(318,909 ) (1,610,402 ) (202,882 )
(82,533 )
(126,490 )
(11,169 )
(2,352,385 )
Creditors
(25,466 )
(152,337 )
(891 )
(9,431 )
(19,084 )
(202,713 )
Accruals and
deferred
income
(5 )
(130,390 )
(86 )
(130,481 )
Total
liabilities
(344,380 )
(1,893,129 )
(198,386 )
(83,424 )
(136,007 )
(30,253 )
(2,685,579 )
Total capital
and reserves
(20,537 )
(28,642 ) (23,783 ) (1,459 )
(71,260 )
2024
Sterling
US dollar
Euro
Canadian
dollar
Australian
dollar
Japanese
Yen
Other
Total
£000
£000
£000
£000
£000
£000
£000
£000
Investments
Reinsurers'
share of
technical
provisions
Debtors
Other assets
Prepayments
and accrued
income
Total assets
Technical
provisions
(281,856 )
(1,526,874 )
(157,722 )
(81,154 )
(118,090 )
(9,413 )
(2,175,109 )
Creditors
(33,296 )
(230,829 )
(779 )
(38,221 )
(19,344 )
(1,413 )
(8,005 )
(331,887 )
Accruals and
deferred
income
(76,959 )
(15,088 )
(347 )
(10,136 )
(18,521 )
(116,012 )
Total
liabilities
(392,111 )
(1,772,791 )
(153,462 )
(119,722 )
(147,570 )
(29,347 )
(8,005 )
(2,623,008 )
Total capital
and reserves
(387,883 )
(54,402 )
(16,808 )
(99,256 )
The Syndicate manages its foreign exchange risk against its functional currency. Foreign exchange arises when
future commercial transactions or recognised assets and liabilities are denominated in a currency that is not
the entity's functional currency.
Syndicate 4711
Reports and accounts
31 December 2025
Notes to the Accounts
At 31 December 2025
-42
-
In order for the Syndicate to manage the currency mismatch risks within the regulatory parameters, a limit of
unhedged currency mismatches, approved by the AMAL Board, is in force. This limit ensures that the value of
assets (excluding DAC) in each currency is above 85% of the value of insurance liabilities (excluding UPR) in
that currency and less than 115% of the value of insurance liabilities in that currency, net of FX hedging, subject
to these assets exceeding 5% of the value of assets in all currencies. This ensures the Syndicate's compliance
with Lloyd's regulatory requirements. The Syndicate uses derivatives to hedge unmatched currency balance
sheet positions.
The Syndicate is primarily exposed to currency risk in respect of liabilities under policies of insurance
denominated in currencies other than the U.S. Dollar, the Syndicate's functional currency. The Syndicate seeks
to mitigate the risk by matching the estimated foreign currency denominated liabilities with assets
denominated in the same currency.
The Syndicate's sensitivity to exchange rate risk on the total recognised gains and losses as well as member's
balances in relation to GBP is shown below:
2025 Profit or loss
for the year
2024 Profit or loss
for the year
£000
£000
Currency risk
10 percent increase in GBP/USD exchange rate
(2,720)
(7,611)
10 percent decrease in GBP/USD exchange rate
3,324
9,302
Interest rate risk
Interest rate risk is the risk that the fair value and/or future cash flows of a financial instrument will fluctuate
because of changes in interest rates.
The Syndicate is exposed to interest rate risk through its investment portfolio, borrowings and cash and cash
equivalents.
The risk of changes in the fair value of these assets is managed by primarily investing in
short
-
duration financial investments and cash and cash equivalents. The Asset Liability Management
Investment Committee (ALMIC) monitors the duration of these assets on a regular basis, targeting an
investment portfolio duration that, in the event of changes in interest rates, always maintains the internal
capital requirements.
Sensitivity analysis to interest rate risk
The analysis below is performed for reasonably possible movements in market indices on financial instruments
with all other variables held constant, showing the impact on the result before tax due to changes in fair value
of financial assets and liabilities (whose fair values are recorded in the profit and loss account) and members’
balances.
2025 Impact on
results before
tax
2025 Impact on
members'
balances
2024 Impact
on results
before tax
2024 Impact
on members'
balances
£000
£000
£000
£000
Interest rate risk
+ 50 basis points shift in yield curves
(7,141 )
(7,141 )
(5,511 )
(5,511 )
- 50 basis points shift in yield curves
Fixed Income Securities - Spread Risk
The yield of a non-government fixed income security can be divided into two parts:
Syndicate 4711
Reports and accounts
31 December 2025
Notes to the Accounts
At 31 December 2025
-43
-
•
The ‘risk free’ rate, being the yield of the treasury security issued by the country in which the issuer
operates which is closest to it in maturity
•
The ‘spread’ of the yield over the risk free rate (= total yield - risk free rate)
The spread is normally positive because it represents the extra consideration required by the market to
compensate for the greater risk (compared to the Government issuer) of default on interest or redemption. The
spread may also be influenced by the actual or perceived liquidity or marketability of the security.
The spread of a bond also adjusts over time to reflect the spread required on similar new issues. This
movement up or down in spread therefore also contributes to overall market risk and is referred to as ‘spread
risk’. Within spread risk is included the risk that a security falls in value as a result of being downgraded by a
rating agency as this will also cause the spread to increase. The risk of actual default on interest or redemption
is included as a special case of spread risk. This default risk is actually a type of credit risk but it is convenient
to consider it under market risk because of the way it is modelled in the Internal Model as an extreme case of
downgrade risk.
Spread risk is managed by limiting the overall credit quality of the
investment portfolio and the concentrations
of investments with specific issuers of investments. This risk is mitigated by limiting exposure to any single
counterparty.
Market risk mitigation risk
Market risk is defined as mitigation risk as the risk of variation in the value or effectiveness of hedging
positions. The Syndicate uses derivatives to hedge against market risk.
Asset concentration risk
The aggregate value of the investment portfolio may be at greater risk if it is over exposed to the same asset or a
group of similar assets with similar risk dynamics.
Concentrations which are managed for this reason include types of asset (e.g. mortgage backed securities),
economic sector of issuer and securities of the same issuer.
C. Capital management
Capital framework at Lloyd’s
The Society of Lloyd’s ("Lloyd’s") is a regulated undertaking and subject to supervision by the Prudential
Regulatory Authority ("PRA") under the Financial Services and Markets Act 2000, and in accordance with the
Solvency UK Framework.
Within this supervisory framework, Lloyd’s applies capital requirements at member level and centrally to
ensure that Lloyd’s would comply with the Solvency UK requirements, and beyond that to meet its own
financial strength, licence and ratings objectives.
Although, as described below, Lloyd’s capital setting processes use a capital requirement set at syndicate level
as a starting point, the requirement to meet Solvency UK and Lloyd’s capital requirements apply at overall and
member level respectively, not at syndicate level. Accordingly, the capital requirement in respect of Syndicate
4711 is not disclosed in these financial statements.
Syndicate 4711
Reports and accounts
31 December 2025
Notes to the Accounts
At 31 December 2025
-44
-
Lloyd’s capital setting process
In order to meet Lloyd’s requirements, each syndicate is required to calculate its Solvency Capital Requirement
("SCR") for the prospective underwriting year. This amount must be sufficient to cover a 1 in 200 year loss,
reflecting uncertainty in the ultimate run-off of underwriting liabilities. The Syndicate must also calculate its
SCR at the same confidence level but reflecting uncertainty over a one year time horizon (one year SCR) for
Lloyd’s to use in meeting Solvency UK requirements. The SCRs of each Syndicate are subject to review by
Lloyd’s and approval by the Lloyd’s Capital and Planning Group.
A syndicate may be comprised of one or more underwriting members of Lloyd’s. Each member is liable for its
own share of underwriting liabilities on the syndicates on which it is participating but not other members’
shares. Accordingly, the capital requirements that Lloyd’s sets for each member operates on a similar basis.
Each member’s SCR shall thus be determined by the sum of the member’s share of the syndicate SCR ‘to
ultimate’. Where a member participates on more than one syndicate, a credit for diversification is provided to
reflect the spread of risk, but consistent with determining an SCR which reflects the capital requirement to
cover a 1 in 200 loss ‘to ultimate’ for that member. Over and above this, Lloyd’s applies a capital uplift to the
member’s capital requirement, known as the Economic Capital Assessment ("ECA"). The purpose of this uplift,
which is a Lloyd’s not a Solvency UK requirement, is to meet Lloyd’s financial strength, licence and ratings
objectives.
The capital uplift applied for 202
5 was 35% of the member’s SCR ‘to ultimate’.
Provision of capital by members
Each member may provide capital to meet its ECA either by assets held in trust by Lloyd’s specifically for that
member ("funds at Lloyd’s"), in the form of Letters of Credit ("LOC's"), assets held and managed within a
syndicate ("funds in Syndicate"), or as the member’s share of the members’ balances on each syndicate on
which it participates. Accordingly, all of the assets less liabilities of the Syndicate, as represented in the
members’ balances reported on the balance sheet on page 20, represent resources available to meet members’
and Lloyd’s capital requirements. As the Syndicate has a members' balances surplus this decreases the amount
of assets required to be held in trust as funds at Lloyd's.
5.
Analysis of Underwriting Result
An analysis of the underwriting result before investment return is presented in the table below:
2025
Gross
premiums
written
Gross
premiums
earned
Gross
claims
incurred
Gross
operating
expenses
Reinsurance
balance
Underwriting
result
£000
£000
£000
£000
£000
£000
Direct insurance:
Marine aviation
and transport
(15,942 )
(19,083 )
(9,604 )
Fire and other
damage to property
(34,699 )
(25,511 )
(11,946 )
Third party liability
(3,941 )
(23,684 )
Credit and
suretyship
(17,267 )
(13,008 )
(5,820 )
Total direct
(31,311 )
(9,708 )
Reinsurance
(75,161 )
(22,877 )
Total
(54,188 )
Syndicate 4711
Reports and accounts
31 December 2025
Notes to the Accounts
At 31 December 2025
-45
-
2024
Gross
premiums
written
Gross
premiums
earned
Gross
claims
incurred
Gross
operating
expenses
Reinsurance
balance
Underwriting
result
£000
£000
£000
£000
£000
£000
Direct insurance:
Marine aviation and
transport
(6,804 )
(9,507 )
(3,670 )
Energy
(24,816 )
(9,160 )
(1,921 )
Fire and other damage
to property
(30,827 )
(38,235 )
(22,085 )
Third party liability
(171,484 )
(139,802 )
(53,705 )
Pecuniary loss
(27,904 )
(13,437 )
Accident & health
(1,716 )
(467 )
(181 )
Total direct
(263,551 )
(210,608 )
(73,025 )
Reinsurance
(178,663 )
(86,781 )
(11,974 )
Total
(442,214 )
(297,389 )
(84,999 )
All new premiums were underwritten in the UK. There has been a small amount of premium adjustment
flowing through
Aspen Australia Service Company Pty Limited ("AASPCL") which is not writing new business.
The below is an additional disclosure for Lloyd’s reporting purposes and is included to facilitate the
classification of the above segments into the Lloyd’s aggregate classes of business:
Gross
premiums
written
Gross
premiums
earned
Gross
claims
incurred
Gross
operating
expenses
Reinsurance
balance
Underwriting
result
2025
£000
£000
£000
£000
£000
£000
Additional analysis
Fire and damage to
property of which is:
Energy
(12,279 )
(5,983 )
Third party liability
of which is:
Energy
(234 )
(23 )
(308 )
Gross
premiums
written
Gross
premiums
earned
Gross
claims
incurred
Gross
operating
expenses
Reinsurance
balance
Underwriting
result
2024
£000
£000
£000
£000
£000
£000
Additional analysis
Fire and damage to
property of which is:
Specialities
(5 )
(5 )
(67 )
(30 )
Energy
(23,915 )
(14,193 )
(8,608 )
Third party liability of
which is:
Energy
(12 )
(5 )
Syndicate 4711
Reports and accounts
31 December 2025
Notes to the Accounts
At 31 December 2025
-46
-
No gains or losses were recognised in profit or loss during the year on buying reinsurance (2024: £nil).
The gross premiums written for direct insurance by destination of risk is presented in the table below:
2025
2024
£000
£000
United Kingdom
Europe
US
Rest of the world
Total gross premiums written
6.
Net Operating Expenses
2025
2024
£000
£000
Acquisition costs
Change in deferred acquisition costs
(5,032 )
(16,725 )
Administrative expenses
Reinsurance commissions and profit participation
(224,684 )
(186,975 )
Net operating expenses
In the 2024 comparatives direct expenses were included within acquisition costs, whereas in 2025 they have
been included within administrative expenses.
2025
2024
£000
£000
Administrative expenses include:
Auditors' remuneration:
Fees payable to the Syndicate’s auditors for the audit of these
financial statements
Fees payable to the Syndicate’s auditors and its associates in
respect of other services pursuant to legislation
Managing Agent’s fees
5,200
5,200
2025
2024
£000
£000
Total commission for direct insurance business
Members' standard personal expenses amounting to £14.1
m (
2024
: £15.5m) are included in other acquisition
costs and administrative expenses. Members' standard personal expenses include Lloyd's Members
subscriptions, Central Fund contributions, and Managing Agent's fees.
Syndicate 4711
Reports and accounts
31 December 2025
Notes to the Accounts
At 31 December 2025
-47
-
7.
Key Management Personnel Compensation
The directors of AMAL received the following aggregate remuneration charged to the Syndicate:
2025
2024
£000
£000
Directors' emoluments
Fees
The active underwriter received the following aggregate remuneration charged to the Syndicate:
2025
2024
£000
£000
Emoluments
8.
Staff Numbers and Costs
The Syndicate has no employees of its own. All of the personnel employed in the Syndicate’s business are
employed by Aspen Insurance UK Services Limited (“AIUKS”). AIUKS is a fellow subsidiary of AIHL.
AIUKS encourages its employees to develop their full potential by providing opportunities for training and
professional development. Such opportunities, as well as career development and promotion, are equally
available to disabled employees, whether newly recruited or existing employees who become disabled whilst in
AIUKS’s employment.
AIUKS’s equal opportunities policy aims to ensure that no potential or existing employee receives less
favourable treatment because of his / her sex, actual or perceived sexual orientation, gender (including gender
reassignment), marital or family state, age, ethnic origin, disability, race, colour, nationality, national origin,
creed, political affirmation, part-time status, or any other condition.
Number of employees
2025
2024
Underwriting
Claims
Admin & finance
Investments
Total
The following amounts were recharged by AIUKS to the Syndicate in respect of payroll costs:
2025
2024
£000
£000
Wages and salaries
Social security costs
Other pension costs
Other employee benefits
Total
Syndicate 4711
Reports and accounts
31 December 2025
Notes to the Accounts
At 31 December 2025
-48
-
9.
Investment Return
The investment return (comprising total income, expenses, net gains or losses, including changes in fair value,
recognised on all financial assets and liabilities) transferred from the non-technical account to the technical
account at fair value through profit and loss is as follows:
2025
2024
£000
£000
Interest and similar income
Gains on the realisation of investments
Losses on the realisation of investments
(1,829 )
(8,498 )
Unrealised gains on investments
Unrealised losses on investments
(2,689 )
(3,411 )
Investment management expenses
Total investment return
10.
Other Expenses
2025
2024
£000
£000
Other expenses
8,645
768
The increase is due to one-off compensation costs incurred primarily for Syndicate 4711 dedicated staff in
relation to Aspen's IPO in May 2025.
11.
Distribution
A distribution to members of £35.3m will be proposed in relation to the closing year of account 2023 (2024:
£58.1m in relation to the closing year of account 2022).
Distributions and Cash Calls
The distributions to members during 2025 were £58.1m (2024 distribution from members: £15.6m). There
were no cash calls in 2025 (2024: £27.6m) and no collections of losses to the member's personal reserve funds
(2024: £nil) were made during the year.
Syndicate 4711
Reports and accounts
31 December 2025
Notes to the Accounts
At 31 December 2025
-49
-
12.
Financial Investments
Carrying value
Cost
2025
2024
2025
2024
£000
£000
£000
£000
Shares and other variable yield securities
and units in unit trusts
Debt securities and other fixed income
securities
Derivative assets
Total
Derivative liabilities
(2,718)
(4,784)
—
—
There was no material change in fair value for financial instruments held at fair value attributable to own credit
risk in the current or comparative period.
Listed Investments
Included in the carrying values above are amounts in respect of listed investments as follows:
2025
2024
Cost
Market Value
Cost
Market Value
£000
£000
£000
£000
Financial assets at fair value
Debt securities and other fixed income securities
319,405
326,866
291,738
317,121
Total financial assets
319,405
326,866
291,738
317,121
The table below presents an analysis of financial investments by their measurement classification:
2025
2024
£000
£000
Financial assets measured at fair value through profit or loss
Total financial investments
There have been no day 1 profits recognised in respect of financial instruments designated at fair value through
profit or loss.
The table below analyses the derivative assets and liabilities by type:
2025
2025
2024
2024
Notional
amount
Net fair
value
Notional
amount
Net fair
value
£000
£000
£000
£000
Foreign exchange forward contracts
(2,213 )
(3,613 )
Total
(2,213 )
(3,613 )
Syndicate 4711
Reports and accounts
31 December 2025
Notes to the Accounts
At 31 December 2025
-50
-
The Syndicate classifies its financial instruments held at fair value in its balance sheet using a fair value
hierarchy based on the inputs used in the valuation techniques as follows:
•
Level 1
– financial assets that are measured by reference to published quotes in an active market. A
financial instrument is regarded as quoted in an active market if quoted prices are readily and
regularly available from an exchange, dealer, broker, industry group, pricing service or regulatory
agency and those prices represent actual and regularly occurring market transactions on an arm’s
length basis.
•
Level 2
– financial assets measured using a valuation technique based on assumptions that are
supported by prices from observable current market transactions. For example, assets for which
pricing is obtained via pricing services but where prices have not been determined in an active market,
financial assets with fair values based on broker quotes, investments in private equity funds with fair
values obtained via fund managers and assets that are valued using the Syndicate’s own models
whereby the significant inputs into the assumptions are market observable.
•
Level 3
– financial assets measured using a valuation technique (model) based on assumptions that
are neither supported by prices from observable current market transactions in the same instrument
nor are they based on available market data. Therefore, unobservable inputs reflect the Syndicate's
own assumptions about the assumptions that market participants would use in pricing the asset or
liability (including assumptions about risk). These inputs are developed based on the best information
available, which might include the Syndicate’s own data.
The table below analyses financial instruments held at fair value in the Syndicate’s balance sheet at the
reporting date by its level in the fair value hierarchy:
Level 1
Level 2
Level 3
Total
2025
£000
£000
£000
£000
Shares and other variable yield securities
and units in unit trusts
Debt securities and other fixed income
securities
Derivative assets
Total assets
Derivative liabilities
(2,718 )
(2,718 )
Level 1
Level 2
Level 3
Total
2024
£000
£000
£000
£000
Shares and other variable yield securities and units
in unit trusts
Debt securities and other fixed income securities
Derivative assets
Total assets
Derivative liabilities
(4,784 )
(4,784 )
The derivative assets and liabilities held at the reporting date comprise of over
-
the
-
counter US Dollar forward
foreign exchange contracts with a notional amount of £203.4m (2024: £184.3m). These derivatives are valued
using Bloomberg month end rates which is an independent 3rd party provider widely used in the market.
Syndicate 4711
Reports and accounts
31 December 2025
Notes to the Accounts
At 31 December 2025
-51
-
Management performs an analysis of the prices obtained from pricing vendors to ensure that they are
reasonable and produce a reasonable estimate of fair value. Management considers both qualitative and
quantitative factors as part of this analysis. Examples of analytical procedures performed include reference to
recent transactional activity for similar securities, review of pricing statistics and trends and consideration of
recent relevant market events.
At the reporting date Level 1 and Level 2 financial assets and liabilities were valued using valuation techniques
based on observable market data. All of the investments categorised as Level 3 are fair valued based on the
inputs to the valuation technique used. The amount reported as Level 3 assets in the prior period relates to the
Syndicate Loan which was repaid in full during the year.
13.
Debtors Arising out of Direct Insurance Operations
2025
2024
£000
£000
Due within one year
Due after one year
Total
14.
Debtors Arising out of Reinsurance Operations
2025
2024
£000
£000
Due within one year
Due after one year
Total
15.
Other Debtors
2025
2024
£000
£000
Other related party balances (non-syndicate)
Other
Total
Syndicate 4711
Reports and accounts
31 December 2025
Notes to the Accounts
At 31 December 2025
-52
-
16.
Deferred Acquisition Costs
The table below shows changes in deferred acquisition costs assets from the beginning of the period to the end
of the period.
2025
2024
Gross Reinsurance
Net
Gross Reinsurance
Net
£000
£000
£000
£000
£000
£000
Balance at 1 January
(95,021 )
(72,278 )
Incurred deferred
acquisition costs
(224,684 )
(186,975 )
Amortised deferred
acquisition costs
(232,436 )
(19,755 )
(232,097 )
(63,419 )
Foreign exchange
movements
(7,338 )
(3,527 )
(4,446 )
(4,350 )
Balance at 31 December
(103,213 )
(95,021 )
17.
Claims Development
Reserves are required owing to the time between the occurrences, reporting and eventual settlement of a loss,
which, for some lines of business, can be several years. Since reserves are an estimate of the likely outcome of
these future events, they are subject to a degree of volatility. That is, the actual emergence of ultimate losses
can be expected to differ, perhaps materially, from any estimate of such losses.
The users should be aware that loss payment and loss reporting patterns are not the only considerations in
establishing loss reserves.
In setting claims provisions the Syndicate gives consideration to the probability and magnitude of future
experience being more adverse than assumed and exercises a degree of caution in setting reserves where there
is considerable uncertainty. In general, the uncertainty associated with the ultimate claims experience in an
accident year is greatest when the accident year is at an early stage of development and the margin necessary to
provide the necessary confidence in the provisions adequacy is relatively at its highest. Due to the nature of the
type of business written certain classes have a higher level of uncertainty than others and therefore an
increased potential for volatility.
Aspen has cedants/insureds that have assets in Russia and Ukraine, and the Syndicate has run several
scenarios to assess its potential exposure and it will continue to monitor these exposures closely. The
exposures arise from aviation reinsurance exposures and credit and political risks and international crisis
management insurance exposures. Significant uncertainty exists on the final outcome given legal and
jurisdiction related complexities with few notifications received to date. The loss estimate recognised has been
based by applying probabilities to the exposed limits for each exposure.
As with the rest of the industry, the Syndicate has assessed the impacts of both economic and social inflation
on the reserve adequacy of its liabilities. This has been conducted at a product and coverage level to ascertain
where any reserve strengthening was required.
Claims development is shown in the tables below, both gross and net of reinsurance ceded, on an underwriting
year basis. Balances have been translated at exchange rates prevailing at 31 December 2025.
Syndicate 4711
Reports and accounts
31 December 2025
Notes to the Accounts
At 31 December 2025
-53
-
Gross
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Total
Pure
underwriting
year
£000
£000
£000
£000
£000
£000
£000
£000
£000
£000
£000
Estimate of
gross claims at
end of
underwriting
year
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
Less gross
claims paid
(275,211 )
(322,643 )
(281,085 )
(303,228 )
(137,798 )
(133,840 )
(185,870 )
(94,872 )
(75,968 )
(14,361 )
Gross ultimate
reserve
1,676,024
2015 and prior
years
Gross claims
reserves
Syndicate 4711
Reports and accounts
31 December 2025
Notes to the Accounts
At 31 December 2025
-54
-
Net
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Total
Pure
underwriting
year
£000
£000
£000
£000
£000
£000
£000
£000 £000
£000
£000
Estimate of net
claims at end
of
underwriting
year
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
Less net claims
paid
(143,433 )
(136,852 ) (105,908 ) (113,022 ) (80,376 ) (62,878 ) (93,842 ) (44,091 )
(35,041 )
(10,866 )
Net reserve
645,462
2015 and prior
years
Net claims
reserves
18.
Technical Provisions
The table below shows changes in the insurance contract liabilities and assets from the beginning of the period
to the end of the period.
2025
2024
Gross
provisions
Reinsurance
assets
Net
Gross
provisions
Reinsurance
assets
Net
£000
£000
£000
£000
£000
£000
Claims outstanding
Balance at 1 January
(991,641 )
(933,103 ) 496,133
Claims paid during the year
(304,097 )
(299,571 )
Expected cost of current year
claims
(293,214 )
(309,256 ) 211,633
Change in estimates of prior year
provisions
(10,507 )
(78,675 )
(15,942 )
Foreign exchange movements
(73,093 )
(25,944 )
(3,864 )
Balance at 31 December
(1,070,725 )
(991,641 ) 576,374
Syndicate 4711
Reports and accounts
31 December 2025
Notes to the Accounts
At 31 December 2025
-55
-
The change in claims outstanding includes the impact of release of net reserves for claims incurred on the prior
years of
£9.8m (2024: release of £
15.9m). These net reserve movements are stated net of the protection
provided by the LPT.
2025
2024
Gross
provisions
Reinsurance
assets
Net
Gross
provisions
Reinsurance
assets
Net
£000
£000
£000
£000
£000
£000
Unearned premiums
Balance at 1 January
(358,610 )
(276,570 ) 211,803
Premiums written
during the year
(612,030 )
(575,894 ) 436,968
Premiums earned
during the year
(954,289 )
(893,786 )
Effect of movements in
exchange rate
(24,550 )
(1,133 )
(355 )
(6,346 )
(6,701 )
Balance at 31 December
(376,634 )
(358,610 ) 248,484
19.
Creditors Arising Out of Direct Insurance Operations
2025
2024
£000
£000
Due within one year
Due after one year
Total
20.
Creditors Arising out of Reinsurance Operations
2025
2024
£000
£000
Due within one year
Due after one year
Total
21.
Cash and Cash Equivalents
2025
2024
£000
£000
Cash at bank and in hand
Deposits with credit institutions
Total cash and cash equivalents
Syndicate 4711
Reports and accounts
31 December 2025
Notes to the Accounts
At 31 December 2025
-56
-
Only shares and other variable yield securities (Money Market Funds) 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.
22.
Other Creditors
2025
2024
£000
£000
Derivative liabilities
Other related party balances (non-syndicates)
Total
23.
Accruals and Deferred Income
2025
2024
£000
£000
Profit commission accrual
25,766
20,990
Other accruals
1,502
1
Reinsurers' share of deferred acquisition costs
103,213
95,021
Total
130,481
116,012
24.
Analysis of Net Debt
The below is a required disclosure for Lloyd’s reporting purposes and is included to aggregate the movement of
net debt in the period:
At 1 January
2025
Cash flows
Acquired
Fair value
and
exchange
movements
Non-cash
changes
At 31
December
2025
£000
£000
£000
£000
£000
£000
Cash and cash
equivalents
Derivative
financial
liabilities
(4,784 )
Total
25.
Related Parties
AMAL is the managing agency of the Syndicate. The Syndicate has been charged the following amounts by
AMAL in the year:
2025
2024
£000
£000
Managing agency fees
5,200
5,200
Year end balance due to/(from) Aspen Managing Agency Limited
(121)
1,579
The Syndicate is supported by Aspen Underwriting Limited ("AUL"), which provides 100% of its underwriting
capacity. At year end the Syndicate had a balance due from AUL
of £40k (2024:
£2.9m due to AUL).
Syndicate 4711
Reports and accounts
31 December 2025
Notes to the Accounts
At 31 December 2025
-57
-
The ultimate holding company and controlling party of AMAL and AUL as at 31 December 2025 is AIHL, a
corporate entity incorporated in Bermuda.
Internal brokers and coverholders
Aspen UK Syndicate Services Limited ("AUKSSL") serves as a Lloyd's broker. Aspen Australia Service
Company Pty Limited ("AASCPL") serves as a Lloyd's coverholder, and stopped placing business through the
Syndicate after the 2022 underwriting year. Both these intermediaries are 100% owned by Aspen.
The Syndicate has written the following premium amounts in the year and the balances due to the Syndicate at
the end of the year are:
2025
AUKSSL
AASCPL
£000
£000
Written premium in year
—
393
Year end debtor balance
—
121
2024
AUKSSL
AASCPL
£000
£000
Written premium in year
—
115
Year end debtor balance
69
3,893
Service providers to the Syndicate
AIUKS, Aspen Insurance U.S. Services Inc. ("AIUSS"),
Aspen Singapore Pte Limited ("ASPL"), AASPCL,
AUKSSL, Aspen Holding Limited ("AHL"), AMAL, and AUL provide services to the Syndicate and therefore
recharge a portion of their expenses to the Syndicate. AIUK performs reinsurance collection services for
Syndicate and the year end balance largely relates to collections made in late 2025. The amounts charged to the
Syndicate within the period and the balances due from the Syndicate at the end of the period are:
2025
ABL
AIUKS
AIUSS
AIUK
Syndicate
Service
Companies*
AHL
AMAL &
AUL
Total
£000
£000
£000
£000
£000
£000
£000
£000
Expenses
recharged
6,590
78,362
15,248
—
87
9,388
5,200
114,875
Year end
amount due to/
(from) group
undertakings
6,505
11,469
2,434
(74,299)
(2,060)
991
(162)
(55,122)
2024
ABL
AIUKS
AIUSS
AIUK
Syndicate
Service
Companies*
AHL
AMAL &
AUL
Total
£000
£000
£000
£000
£000
£000
£000
£000
Expenses
recharged
2,746
66,317
8,481
—
613
4,980
5,200
88,337
Year end amount
due to/(from)
group
undertakings
26,512
17,964
2,387
3,974
(9,841) 5,538
(1,597)
44,937
*Syndicate Service Entities includes amounts due/fro
m ASPL, AASCPL and AUKSSL
Syndicate 4711
Reports and accounts
31 December 2025
Notes to the Accounts
At 31 December 2025
-58
-
The total year end amount due to/(from) Aspen Group undertakings is £
55.1
m (2024:
£
44.9m). This
corresponds to the Other Cred
itor balance of £
21.4
m
(2024:
£
58.4
m) in note 22 less the Other Debtor amount
of
£
2.3
m
(
2024
: £
13.5
m) in note 15, less the amount due from AIUK in respect of reinsurance collections of
£
74.3m which is included in note 14.
Internal reinsurers
The Syndicate has the following internal reinsurance arrangements:
•
20% QS Treaty for underwriting years 2009 to 2020 and 35% on 2021 to 2025 to ABL;
•
Ceding premium to ABL in relation to the group excess of loss cover;
•
50% QS Treaty with Aspen Insurance (UK) Limited (
"AIUK
") on Marine, Energy and Construction
("MEC") business from the 2015 to 2021 underwriting years; and
•
Reciprocal ($10m excess $10m) excess of loss reinsurance with AIUK.
The Syndicate has incurred the following amounts in the year and the balances due to/from entities in the
Aspen Group at the end of the year relating to these reinsurance arrangements are:
2025
ABL
ABL
AIUK
AIUK
QS
XOL
MEC QS
XOL
£000
£000
£000
£000
Premiums balances ceded to/(from)
205,617
—
(16)
—
Claims balances ceded (to)/from
(102,932)
—
(560)
2,265
Reinsurance commission to/(from)
(86,929)
—
4
—
Year end debtor/(creditor) balance
(13,007)
—
78,639
—
2024
ABL
ABL
AIUK
AIUK
QS
XOL
MEC QS
XOL
£000
£000
£000
£000
Premiums balances ceded to/(from)
207,588
(131)
942
—
Claims balances ceded (to)/from
(111,674)
—
(11,825)
(2,196)
Reinsurance commission to/(from)
(72,321)
(30)
(236)
—
Year end debtor/(creditor) balance
(35,478)
414
55,988
2,900
The
year end debtor/(creditor) balances are included in Debtors Arising out of Reinsurance Operations
reported in note 14 and Creditors Arising out of Reinsurance Operations reported in note 20.
The LPT arrangement is a reinsurance contract between Aspen’s entities, including the Syndicate, and a wholly
owned subsidiary of Enstar. Losses ceded by the Syndicate to the LPT are managed through AIUK, which
carries out settlements with reinsurers. Following the settlement of the LPT funds withheld balance in
September 2025, the Syndicate settles LPT claim recoveries with Enstar through AIUK. The LPT claim
recovery balance due to AIUK as at 31 December 2025 is £2.9m.
These disclosure requirements are in addition to the requirement to disclose key management personnel
compensation. This disclosure is given in note 7.
Syndicate 4711
Reports and accounts
31 December 2025
Notes to the Accounts
At 31 December 2025
-59
-
26.
Off-balance sheet items
Collateral
The Aspen Group receives collateral in the form of cash or non-cash assets in respect of reinsurance
arrangements in order to reduce the credit risk of these transactions. Although this collateral is provided at
Aspen Group level the Syndicate has full access to this collateral. The amount and type of collateral required
where the Aspen Group receives collateral depends on an assessment of the credit risk of the counterparty.
All collateral received and held in trust by third parties is not recognised in the balance sheet, unless the
counterparty defaults on its obligations under the relevant agreement.
The Syndicate does not pledge any off-balance sheet collateral for the year ended 31 December 2025 (2024:
£nil).
27.
Contingencies and commitments
In 2025 Cavello Bay Reinsurance Limited has commenced legal proceedings against AIHL, alleging breaches of
a Loss Portfolio Transfer Reinsurance Agreement entered into in January 2022. The claims relate to premium
allocation, straddle account obligations, and construction defect losses. The claimant seeks amounts exceeding
$300 million plus interest. AIHL is fully defending the claims and has filed counterclaims. Based on legal
advice, no provision has been recognised by the Syndicate as the outcome and the impact on the Syndicate
cannot be reliably estimated at this stage.
28.
Foreign Exchange Rates
The following currency exchange rates have been used for principal foreign currency translations:
2025
2024
Start of
period rate
Year-end
rate
Average
rate
Start of
period rate
Year-end
rate
Average
rate
Sterling
Euro
US dollar
Canadian dollar
Australian dollar
Japanese Yen
29.
Funds at Lloyd’s
Every member is required to hold capital at Lloyd’s which is held in trust and known as Funds at Lloyd’s
("FAL"). These funds are intended primarily to cover circumstances where syndicate assets prove insufficient
to meet participating member’s underwriting liabilities.
The level of FAL that Lloyd’s requires a member to maintain is determined by Lloyd’s based on Prudential
Regulatory Authority requirements and resource criteria.
Syndicate 4711
Reports and accounts
31 December 2025
Notes to the Accounts
At 31 December 2025
-60
-
FAL is set with regards to a number of factors including the nature and amount of risk to be underwritten by
the member and the assessment of the reserving risk in respect of business that has been underwritten. Since
FAL is not under the management of the Managing Agent, no amount has been shown in these accounts by
way of such capital resources. However, the Managing Agent is able to make a call on the member’s FAL to
meet liquidity requirements or to settle losses on behalf of the Syndicate.
FAL is provided in the form of investments from Aspen Underwriting Limited ("AUL"), unsecured Letters of
Credit and unsecured third-party financing facilities.
30.
Subsequent Events
There are no events subsequent to the reporting period.
Syndicate 4711
Reports and accounts
31 December 2025
Notes to the Accounts
At 31 December 2025
-61
-