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Beazley Furlonge Limited | Syndicate 623 at Lloyd’s
Annual report and accounts 2025
Welcome to our 2025 Annual report
As a leading global
specialist insurer, we are
passionate about bringing
an innovative and
progressive approach
to helping our clients
mitigate the risks
of the world.
Contents
1 Highlights
2 Strategic report of the managing agent
6 Divisional performance commentary
10 Managing agent’s report
17 Statement of managing agent’s
responsibilities
18 Independent auditor's report to
the members of Syndicate 623
21 Statement of comprehensive income
22 Balance sheet
23 Statement of changes in
members’ balances
24 Statement of cash flows
25 Notes to the syndicate annual accounts
51 2023 underwriting year accounts
for Syndicate 623
52 Managing agent’s report
53 Statement of managing agent’s
responsibilities
54 Independent auditor’s report to the
members of Syndicate 623 –
2023 closed year of account
57 Profit or loss account
58 Statement of changes in
members’ balances
59 Balance sheet
60 Statement of cash flows
61 Notes to the syndicate 2023
underwriting year accounts
67 Seven-year summary of closed year
results at 31 December 2025
68 Managing agent's corporate information
Highlights
Syndicate capacity Profit for the financial year Combined ratio
£861.0m $156.4m 90.7%
(2024: £887.2m) (2024: $122.4m) (2024: 93.9%)
Gross premiums written Rate (decrease)/increase on renewals Cash and investments
$1,033.9m (2.9)% $1,456.4m
(2024: $1,048.7m) (2024: 0.2%) (2024: $1,405.8m)
Net premiums written Claims ratio Investment return
$880.0m 47.6% 5.4%
(2024: $873.6m) (2024: 48.8%) (2024: 5.3%)
Earned premiums, net of reinsurance Expense ratio
$875.2m 43.1%
(2024: $844.9m) (2024: 45.1%)
www.beazley.com Beazley | Syndicate 623 Annual report 2025
01
Strategic report of the managing agent
Overview
The balanced portfolio of Syndicate 623 (the ‘syndicate’) continues to underpin its underwriting performance in recent years.
The syndicate writes business in parallel with Syndicate 2623. For the 2024 underwriting year and beyond, business written
domestically by Beazley’s US-based underwriters in prior years is no longer written through Syndicate 623. At the same time,
the syndicate’s portfolio was rebalanced to cover a larger share of Beazley's existing wholesale business written in London,
Europe, and Singapore, with Syndicate 623 taking a larger share of risks that are written in parallel with Syndicate 2623.
The capacities of the syndicates managed by Beazley Furlonge Limited ('BFL') are as follows:
2025 Year of Account
£ m
2024 Year of Account
£ m
623 861.0 887.2
2623 2,357.1 2,299.6
3622 35.5 37.0
3623 432.0 1,325.6
4321 — —
5623 419.3 396.6
6107 43.9 57.8
Total 4,148.8 5,003.8
The result for Syndicate 623 for the year ended 31 December 2025 is a profit of $156.4m (2024: $122.4m). Included from
page 6 is an overview of the performance of the syndicate's four main underwriting divisions: Cyber Risks, Marine, Accident and
Political (MAP) Risks, Property Risks and Specialty Risks. The remaining $5.4m (2024: $6.1m) of Gross Written Premium,
and $6.4m of loss (2024: $2.5m of profit) relates to Beazley Digital.
Year of account results
The 2023 year of account ('YoA') has closed with a return on capacity of 14.4%. This strong return on capacity is a result of
careful risk selection and a relatively favourable natural catastrophe experience for the year of account. The 2024 YoA is
currently forecasting a 7.5% return on capacity. The 2025 YoA is currently projected to close with a positive return on capacity.
This YoA is still developing. Catastrophe events throughout 2026 and the development of 2025 calendar year losses may still
impact the 2025 YoA.
Rating environment
Rate movements for the syndicate softened in 2025, with an overall decrease of 2.9% in 2025 across the portfolio
(2024: 0.2% increase). Cyber Risks recorded the largest reduction at 5.8% (2024: 4.4% decrease). Property Risks also
saw rate reductions of 4.6% (2024: 1.8% increase), while MAP Risks experienced rate decreases of 1.1% (2024: MAP 1.1%
increase). Specialty Risks remained comparatively stable, with a modest rate decrease of 0.5% (2024: 0.3% increase).
The syndicate's gross written premiums for 2025 are $1,033.9m (2024: $1,048.7m). This reflects a 1.4% decrease, driven
primarily by the 2.9% rate reduction mentioned above. This is partially offset by stamp capacity increases between the 2023
and 2024 YoA. Net earned premiums for 2025 are $875.2m (2024: $844.9m).
Combined ratio
The combined ratio ('COR') is a measure of operating performance and represents the ratio of the syndicate's total costs
(excluding foreign exchange movements) to total net earned premium. The syndicate’s COR has decreased in 2025 to 90.7%
(2024: 93.9%) driven by improvements in both the claims and expense ratio.
Claims
The claims ratio is a measure of the syndicate's claims experience and represents the ratio of net insurance claims to net
earned premium. The claims ratio decreased to 47.6% in 2025 (2024: 48.8%). The claims ratio improvement was primarily
driven by lower catastrophe losses during the year, including California wildfires in early 2025 and Hurricane Melissa in late
2025. In addition, current accident year attritional claims experience was more favourable in 2025. These benefits were
partially offset by more modest prior year reserve releases compared with 2024. In 2025, the positive releases were present in
the Property segment, which continues to grow as a proportion of total syndicate business, with strengthening present on the
Specialty segment.
02
Beazley | Syndicate 623 Annual report 2025 www.beazley.com
Prior year reserve development
During 2025 the syndicate released prior year reserves of $5.4m (2024: $26.4m). The syndicate's release was driven by its
Cyber and Property Risk divisions, reflective of favourable catastrophe experience, largely being offset by strengthening on the
Specialty Risks book. Net (releases)/strengthening are shown by division in the table below:
2025 2024
$m $m
Cyber Risks (5.9) (8.8)
Digital 0.3 (5.7)
MAP Risks 1.2 13.6
Property Risks (21.9) (26.8)
Specialty Risks 20.9 1.3
Total
(5.4) (26.4)
Net operating expenses
Net operating expenses, including business acquisition costs and administrative expenses, remains broadly flat decreasing
slightly from $380.9m in 2024 to $377.6m in 2025. The breakdown of these costs is shown below:
2025 2024
$m $m
Brokerage costs 218.1 223.7
Other acquisition costs 33.1 27.1
Total acquisition costs
251.2
250.8
Administrative and other expenses 101.2 102.4
Profit commissions payable to managing agent 25.2
27.7
Net operating expenses
1
377.6 380.9
1 A further breakdown of net operating expenses can be seen in note 4.
Brokerage costs as a percentage of net earned premium are approximately 24.9% (2024: 26.5%). Brokerage costs are deferred
and expensed over the life of the associated premiums in accordance with accounting guidelines. Other acquisition costs
comprise costs that have been identified as being directly related to underwriting activity (e.g. underwriters’ salaries and
Lloyd’s box rental). These costs are also deferred in line with premium earning patterns. Administrative expenses comprise
primarily of IT costs, staff costs, facilities costs, Lloyd’s central costs and other support costs.
The expense ratio is a measure of net operating expenses to net earned premium. The expense ratio for 2025 is 43.1% (2024:
45.1%). The lower expense ratio reflects a change of business mix to lower brokerage business and higher net earned premium
compared to prior year. The managing agent continues to focus on total expense base, allowing for additional expenses where
aligned to underlying business growth or to enhance the syndicate's business model.
www.beazley.com Beazley | Syndicate 623 Annual report 2025
03
Strategic report of the managing agent continued
Investment performance
The syndicate’s investments generated a return of $76.8m, or 5.4% in 2025 (2024: a return of $71.5m, or 5.3%). Financial
assets were $1,456.4m as at 31 December 2025 (2024: $1,405.8m). Returns were driven by strong performance from credit
and equity holdings, and from the decline in treasury yields on fixed income assets.
The macroeconomic backdrop proved resilient. Despite an uptick in market volatility earlier in the year and a backdrop of
elevated geopolitical risk, the US economy performed well supported by investment and consumption growth. The Federal
Reserve cut rates by 0.75% over the year which created a favourable backdrop for short dated fixed income, while long dated
bond yields saw smaller declines which resulted a steepening of the overall yield curve. Despite ongoing macro uncertainty,
resilient corporate fundamentals supported investment performance in 2025, with exposure to investment grade corporate
bonds benefiting from tightening credit spreads. Holdings in collateralised loan obligations also performed well, offering
incremental credit spread in well diversified and high quality structures.
The portfolio benefited from its exposures to equity markets. Following a weak start in Q1, equities recovered well led by
corporate earnings growth and supportive monetary policy. We added regional diversification to our equity holdings early in the
year, which are now more closely aligned to global indices. Exposure to high yield added value as spreads held modest gains
through the year. Hedge funds, which offer an additional diversified source of return, also generated positive excess returns.
The yield of the fixed income portfolio at 31 December 2025 was 3.8% for 623 with a duration of 1.7 years. This level of yield is
a positive starting point for fixed income investment returns. The syndicate’s investment portfolio remains diversified and well
positioned for a range of market outcomes.
The table below details the breakdown of our portfolio by asset class:
31 Dec 2025 31 Dec 2024
$'000 % $'000 %
Shares and other variable yield securities and units in unit trusts 278,013 19.1 242,717 17.3
Debt securities and other fixed income securities
1,034,083 71.0 1,033,543 73.5
Participation in investment pools 13,234 0.9 13,349 0.9
Loans and deposits with credit institutions
6,556 0.5 — —
Derivative assets 45 — 1,955 0.1
Syndicate loans to central fund — — 5,864 0.4
Other investments 70,652 4.9 67,440 4.8
Financial assets at fair value 1,402,583 96.4 1,364,868 97.0
Cash at bank and in hand 53,844 3.6 40,887 3.0
Total 1,456,427 100
1,405,755 100
Reinsurance
In 2025, the amount spent on outward reinsurance was $153.9m (2024: $175.2m). As a percentage of gross premiums
written, it decreased in 2025 to 14.9% from 16.7% in 2024. The reduction is driven by the Cyber book, with 2024 seeing the
purchase of multi-year Cyber catastrophe bonds, covering future years of account. Note, as a percentage of earned premiums,
the reduction is more consistent with a ratio of 16.0% (2024: 16.8%).
04
Beazley | Syndicate 623 Annual report 2025 www.beazley.com
Strategic report of the managing agent continued
Outlook
The 2024 underwriting year was impacted by losses from the Atlantic hurricanes (Milton & Helene), as well as the California
wildfires in early 2025. This YoA achieved a mix of rate changes across its diverse book. MAP Risks and Property Risks
demonstrated rate increases which were partially offset by a softening of the rates on the Cyber Risks book in 2024.
The syndicate is expected to produce a 7.5% return on capacity.
In 2025, the syndicate's written business has decreased, in comparison to the 2024 YoA, as a result changes in stamp
capacity splits. Underlying growth across 623 and 2623 has been offset by further rate reductions to those noted above.
The 2025 YoA has experienced some claims events - most notably the California wildfires. Despite this, and recognising
that the year remains at an early stage of development, the 2025 YoA is expected to generate a positive return on capacity.
The managing agent will continue to closely monitor it's development.
Looking ahead to 2026, the managing agent expects market conditions to become more competitive against a backdrop of
heightened and evolving risks. This will place a greater emphasis on disciplined risk selection, cycle management
and stakeholder relationships to deliver positive returns. The managing agent continues to search for growth opportunities while
taking heed of the increasingly complex macroeconomic environment. In parallel, the managing agent's expertise and focus on
innovation will allow it to navigate the rate cycle and execute its underwriting strategy.
In 2026 the managing agent will facilitate a mandatory offer by Beazley Underwriting Limited for all capacity on the Syndicate
not owned by Beazley Underwriting Limited or other Beazley Group companies.
C C J Wong
Director
19 February 2026
www.beazley.com Beazley | Syndicate 623 Annual report 2025
05
Divisional performance commentary
Cyber Risks
2025 2024
$m $m
Gross premiums written 135.1 141.5
Net premiums written 107.9 89.1
Earned premiums, net of reinsurance 101.3 123.2
Claims incurred, net of reinsurance (46.1) (61.7)
Net operating expenses (44.5) (50.3)
Technical result 10.7 11.2
Claims ratio 46 % 50 %
Expense ratio 44 % 41 %
Combined ratio 90 % 91 %
Renewal rate change (6) % (4) %
Cyber Risks gross premium decreased in 2025 to $135.1m (2024: $141.5m). Softening rating conditions are not an indication
that cyber threats are relenting. The many high-profile incidents across the retail and manufacturing sectors during the year
attest to this. In this challenging risk and rating environment we maintain a disciplined, vigilant approach to our underwriting.
Beazley utilises active risk selection and an absolute determination to achieve rate adequacy in every individual risk we take on.
At the same time we’re carefully managing accumulation risk and, as the managing agent, participate in the Beazley group’s
$1bn reinsurance programme that includes insurance linked securities and traditional reinsurance.
The impact of such underwriting, has seen an improvement in 2025’s combined ratio of 90% (2024: 91%).
Looking ahead, we see no let-up in demand for comprehensive cyber protection as weak cyber insurance penetration,
underinsurance and lack of resilience all remain a challenge our market needs to address.
06
Beazley | Syndicate 623 Annual report 2025 www.beazley.com
Divisional performance commentary continued
MAP Risks
2025 2024
$m $m
Gross premiums written 234.3 240.0
Net premiums written 213.2 219.9
Earned premiums, net of reinsurance 207.1 182.2
Claims incurred, net of reinsurance (91.2) (95.5)
Net operating expenses (89.7) (85.9)
Technical result 26.2 0.8
Claims ratio 44% 52%
Expense ratio 43% 47%
Combined ratio 87% 99%
Renewal rate change (1%) 1%
2025 saw MAP Risks volumes remain broadly flat with gross premiums written of $234.3m (2024: $240.0m). Whilst 2025 was
a year marked by geopolitical turbulence and shifting trade dynamics, MAP has stood firm – leveraging deep expertise,
disciplined underwriting and strategic agility, and achieving a combined ratio of 87% (2024: 99%). Within the improved
combined ratio, are strong prior year reserve releases on the War, Cargo and Political classes.
The marine market is facing the double pressure of excess capacity and altered trading patterns, and this is particularly true of
the marine war market. As a market leader we are focused on supporting our clients with cover to manage the trade challenge,
whilst we continue our laser-like focus on rate adequacy.
Transition underwriting is a key topic across Beazley and in marine underwriting. We are working to ensure our underwriting and
risk management advice for the shipping industry offers the right support to manage the additional risks that come with moving
to alternative fuels.
Renewables are a strategic priority, and we have expanded our underwriting footprint with new hires in London and Singapore.
During 2025 we supported the Sustainable Markets Initiative in its efforts to look at how insurance can support the commercial
implementation of fusion energy projects, and we are hopeful that 2026 will see the first successful test of a commercial
nuclear fusion facility.
Looking ahead we see ongoing geopolitical change bringing continued demand for our specialist product suite. And in transition
underwriting, a significant opportunity to drive growth by working across the division and the company as a whole.
www.beazley.com Beazley | Syndicate 623 Annual report 2025
07
Property Risks
2025 2024
$m $m
Gross premiums written 361.8 336.8
Net premiums written 279.7 265.5
Earned premiums, net of reinsurance 272.1 254.5
Claims incurred, net of reinsurance (89.2) (97.0)
Net operating expenses (118.4) (103.1)
Technical result 64.5 54.4
Claims ratio 33 % 38 %
Expense ratio 44 % 41 %
Combined ratio 77 % 79 %
Renewal rate change (5) % 2 %
Property Risks had a successful year achieving gross premium written of $361.8m rising from $336.8m the previous year.
Whilst the rate increases of the past three years eased in 2025, signalling a more moderate pricing environment, our strong
foundations of robust technical pricing and rate adequacy continue to provide an effective baseline from which we were able to
continue to grow premiums. This more normalised pricing environment is reflected in our combined ratio of 77% (2024 79%).
with 2025 continuing to benefit from favourable CAT experience, and prior year releases on its attritional reserves.
We continue to see ongoing long-term growth opportunities as property is evolving into an increasingly specialist class of insurance.
This is where we excel, bringing our expertise as a specialist insurer.
January’s terrible Californian wildfires and July’s floods in Texas highlighted that climate-related risk is not going away, and the
impact of sudden natural disasters remains as destructive as ever. Added to this, inflation is driving up the costs and
complexities of rebuilding, with property values, materials and labour all climbing in price.
Looking ahead to 2026, the property rating environment is competitive but adequate. Climate risk and rising property values,
however, mean maintaining rate adequacy is essential, and property must remain a specialist class underwritten with precision.
08
Beazley | Syndicate 623 Annual report 2025 www.beazley.com
Divisional performance commentary continued
Specialty Risks
2025 2024
$m $m
Gross premiums written 297.3 324.3
Net premiums written 273.8 294.3
Earned premiums, net of reinsurance 289.0 269.2
Claims incurred, net of reinsurance (186.8) (156.2)
Net operating expenses (118.1) (130.5)
Technical result (15.9) (17.5)
Claims ratio 65 % 58 %
Expense ratio 41 % 48 %
Combined ratio 106 % 106 %
Renewal rate change (0.5) % 0.3 %
Overall the division experienced a decrease of gross premiums written to $297.3m (2024 $324.3m). The combined ratio, whilst
benefitting from an improved expense ratio, has seen prior year strengthening across its D&0, Healthcare and Hospital classes,
resulting in a combined ratio of 106% (2024: 106%).
Capital markets activity remained in flux during 2025. This led to our highly specialist M&A team experiencing a later
than expected surge in business through the second and third quarters, as investors began to move forward with
long-postponed transactions.
We continue to respond to market uncertainty with agility, offering higher limits and more capacity through consortia
arrangements. As well as delivering cross-class solutions through our flex product, combining our cyber and financial lines to
meet the specialist needs of our clients. We see the potential for long-term growth in both areas.
General Liability has long been a class we’ve considered too commoditised to be a core part of our underwriting strategy.
Yet it is seeing some areas of businesses shifting into the specialist realm, opening up growth opportunities where we can
successfully deploy our specialist underwriting approach.
Our focus remains on staying ahead of the evolving risk environment – including an increasingly litigious environment for
boardrooms and innovating where new risk areas are emerging.
www.beazley.com Beazley | Syndicate 623 Annual report 2025
9
Managing agent’s report
The managing agent presents its report 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 and applicable United Kingdom
Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the United Kingdom
and Republic of Ireland and Financial Reporting Standard 103: Insurance Contracts.
Principal activity
The principal activity of the syndicate is the transaction of a range of specialised insurance business at Lloyd’s, including the
underwriting of professional indemnity, cyber liability, property, marine, reinsurance, accident and health, political risks and
contingency business.
Business review
A review of the syndicate’s activities and future outlook is included in the strategic report.
Risk governance and reporting
BFL’s Board of Directors (the 'Board') has the responsibility for defining and monitoring the risk appetite within which BFL and
the syndicates operate (collectively, ‘Beazley’), with key individuals and committees accountable for day-to-day management of
risks and controls. Regular reporting from the Risk Function to Board and Risk Committee meetings and senior management
committees ensures that risks are monitored and managed as they arise. Beazley Group is structured across three platforms,
one of which is the London Wholesale platform governed by BFL on behalf of the syndicates. This platform-focused structure
strengthens leadership accountability, enhances platform-level and legal entity governance, and further reinforces the
effectiveness of the overall risk management framework.
Climate-related risks and opportunities
Climate-related risks, opportunities, and other sustainability related matters were regular agenda items throughout 2025
led by Beazley plc’s Board and supported by the boards of BFL and the Group’s other regulated subsidiaries. The Group’s
sustainability strategy sets out the goals and targets across a wider range of sustainability issues, including climate change.
Beazley plc’s consolidated annual report and accounts includes the Group’s disclosures for the Task Force on Climate-Related
Financial Disclosures Recommendations. The 2025 Beazley plc annual report and accounts is expected to be published on the
Group's website in March 2026.
Although not specifically listed in the risk categories detailed further in this report, the Board of BFL deems climate risk to be
inherently embedded within all risks managed across the syndicate.
Risk management
The Board maintains a sound understanding of all drivers of risk and, supported by the Risk Function, provides effective
challenge to management in overseeing risks across Beazley. The Board and the Risk Committee continue to ensure that the
risk management framework remains aligned to Beazley’s evolving risk profile, supports robust oversight and challenge,
and embeds a strong risk culture across the business.
The Board remains attentive to emerging risks and developments in the regulatory and legal landscape. The Risk Function
continues to engage in key strategic projects, providing proportionate and effective second-line challenge to support the ongoing
evolution of the risk management framework.
The effectiveness of risk management across the business is underpinned by continued collaboration between Beazley's
assurance functions, in particular Compliance, Risk Function and, Control and Compliance Assurance Team (CCAT), to deliver a
coherent second line oversight function.
Throughout the year, Beazley strengthened its risk leadership team and further matured its risk culture across the Group.
Investment in both the first and second lines of defence has progressed through the phased delivery of modernisation and
transformation programmes, to enhance oversight, agility and overall risk management capability.
10
Beazley | Syndicate 623 Annual report 2025 www.beazley.com
Managing agent’s report continued
Risk management oversight and framework
The Board has ultimate responsibility for risk management and delegates direct oversight of the risk management framework to
its Risk Committee. The Board delegates executive oversight of the Risk Function and framework to the BFL Management
Committee, which fulfils this responsibility in conjunction with the Group Risk and Regulatory Committee.
The risk management framework sets out the approach to identifying, assessing, managing, monitoring, and reporting principal
risks. This framework underpins the delivery of the Group’s strategic priorities and supports informed decision making at all levels.
Beazley operates a governance structure founded on the ‘three lines of defence’ model, with the Risk Function forming part of
the second line of defence. Ongoing communication and collaboration across the three lines of defence ensures that Beazley
identifies and manages risks effectively.
The Board approves Beazley's risk appetite statements annually and receives regular updates throughout the year on
performance against these appetites, including impact on the risk profile of the business.
A comprehensive suite of reports from the Risk Function supports senior management and the Board in fulfilling their oversight
responsibilities. These reports include updates on risk culture, risk appetite, risk profiles, stress and scenario testing (including
reverse stress testing) and analysis, emerging and heightened risks, and the Own Risk and Solvency Assessment (ORSA).
In addition, the Risk Function provides reporting to the Remuneration Committee to ensure alignment between risk considerations
and remuneration practices.
An annual risk management plan is developed, with reference to Beazley's business strategy, external market and
regulatory developments, as well as Beazley's risk profile. In addition, the Risk Function integrates insights from internal audit
findings and other assurance activities into its risk assessment and planning processes to ensure a comprehensive and
forward-looking approach.
The approach to identifying, managing and mitigating emerging risks includes inputs from across the business, analysis of
lessons learned following incidents and industry thought leadership. The approach considers the potential materiality and
likelihood of impacts, which helps prioritise emerging risks that Beazley monitors or undertakes focused work on. Key emerging
risks in 2025 included: Artificial Intelligence (AI); Geopolitical and conflict escalation; Supply chain complexity; and Political
and social unrest/instability.
Principal risks
Beazley operates in a dynamic environment where risk exposures evolve in response to changes in market conditions,
regulatory developments, and strategic priorities. Identifying and managing these risks is fundamental to safeguarding Beazley’s
financial strength and delivering sustainable value to stakeholders.
Principal risks are subject to regular review through Beazley's risk and control assessment process. The overall risk profile
is continuously monitored with emphasis on operational and regulatory risks, to ensure that our control environment and
risk management capabilities evolve in line with business change and developments in the external environment.
The table below summarises the principal risks faced by Beazley, together with the governance, oversight and control measures
in place to mitigate these exposures, and the associated outlook.
Legend for principal risks table below
Risk outlook
Increasing Stable Decreasing
www.beazley.com Beazley | Syndicate 623 Annual report 2025
11
Managing agent’s report continued
Insurance
Risk of loss arising from uncertainties and
deviations in the occurrence, frequency, amount
and timing of insurance premium and claim
liabilities relative to the assumptions at the time
of underwriting. This includes key underwriting
risk drivers such as market cycle, catastrophe,
reinsurance reserves and climate.
• Market cycle: potential systematic mispricing
of medium- or long-tailed business that does
not support revenue to invest and cover
future claims;
• Catastrophe: one or more large events
caused by nature (e.g. hurricane, windstorm,
earthquake and/or wildfire) or mankind
(e.g. systemic cyber-event, global pandemic,
losses linked to an economic crisis, an act
of terrorism or an act of war and/or a political
event) impacting a number of policies,
and therefore giving rise to multiple losses;
• Reinsurance arrangements: reinsurance may
not be available or purchases do not support
the business underwritten (e.g. mismatch);
• Reserving: reserves may not be sufficiently
established to reflect the ultimate paid
losses; and
• Climate risk: impact of climate change
on underwriting and reserving assumptions,
including the risk arising from the physical
effects of climate change, the transition
to a low-carbon economy and associated
litigation risks.
Insurance risk, arising in the syndicates, is principally managed by Beazley
through pricing tools, analysis of macro trends and claim frequency/severity,
which ensures exposure is well diversified and not overly concentrated in any one
area, or line of business.
Our strategic approach to exposure management and a comprehensive internal
and external reinsurance programme help to reduce volatility of profits in addition
to managing net exposure through the transfer of risk.
Our prudent and comprehensive approach to reserving ensures adequate provisions
are made for the payment of all valid claims. High calibre claims and underwriting
professionals deliver expert service and claims handling to insureds, ensuring good
customer outcomes.
Beazley carries out periodic analysis to identify significant areas of concentration risk
across its business and monitors solvency regularly to ensure adequate capitalisation.
Beazley continuously monitors key trends and incidents, particularly for evolving
perils such as cyber, to ensure our view of risk is up-to-date.
Beazley makes extensive use of modelling, including catastrophe modelling,
the use of our Solvency II model and stress and scenario testing to ensure
insurance risk is within approved risk appetite.
Beazley integrates management of climate risk into its business processes for
physical and litigation risk, through climate-adjusted pricing, capital modelling
and climate conditioned views of risk for its most sensitive perils and supporting
underwriting using targeted tools and dashboards and scenario analysis.
The approaches continue to develop, given the evolving nature of climate risk.
Investment in underwriting, reinsurance, and exposure management systems and
processes continue to strengthen our risk management capabilities in an increasingly
complex landscape shaped by advances in artificial intelligence, rising geopolitical
tensions, and climate-related natural hazards.
Outlook:
While we continue to assess Beazley's insurance risk outlook as stable, supported
by active management of market cycles across all lines of business, we recognise
that the cycle of rate increases have likely peaked and in the absence of a market
turning event, we anticipate further soft market pressures in the near term,
making effective risk management increasingly critical.
Credit
Exposure to credit risk largely emanates from
the use of reinsurers, brokers, and coverholders.
Credit risk is the risk of loss resulting from
default in obligations due or changes in the
credit standing of either issuers of securities,
counterparties or any debtors which Beazley
is exposed to.
Beazley maintains long-term partnerships with strategic reinsurance partners to
support it throughout the insurance cycle and during potential catastrophic claim
events. Beazley uses a range of traditional and alternative reinsurance mechanisms
to diversify reinsurance credit risk. All reinsurers must meet stringent internal
approval criteria, overseen by the Reinsurance Security Committee.
Beazley operates established broker relationships and mitigates credit risk via the
monitoring of broker concentrations, payment performance oversight and broker
onboarding review criteria.
Coverholder monitoring and onboarding utilises a risk-based approach, using financial
stability information, overseen by the Delegated Authority Oversight Committee.
Investment credit risks are managed with a well-diversified portfolio, with
investment parameters by type, duration and credit quality, monitored by the
Investment Committee.
Outlook:
The credit risk outlook remains stable, as Beazley manages reinsurance, broker,
coverholder and investment credit risks, maintaining low levels of aged and/or
bad debt.
Principal risks and summary descriptions Mitigation and monitoring
12
Beazley | Syndicate 623 Annual report 2025 www.beazley.com
Principal risks and summary descriptions Mitigation and monitoring
Market
The risk of loss resulting from fluctuations in
the level and in the volatility of market prices
of assets, liabilities and financial instruments.
Investment assets may be impacted by adverse
movements in financial markets, interest rates,
exchange rates, or external market forces.
Beazley operates a conservative investment strategy to ensure adequate funds
available to pay claims. We employ robust policies and tools to manage market risk,
ensuring alignment with regulatory requirements and industry best practices.
Interest rate and foreign exchange risks are managed using natural hedges and
financial instruments, minimizing potential volatility. The Investment Committee
regularly reviews market risk exposures to ensure that our risk management
capabilities remain agile and effective in responding to evolving market dynamics.
Beazley continues to develop its understanding of how climate change impacts
our investment portfolio to help inform alignment with our sustainability goals
and create long-term value.
Outlook:
We maintain a stable market risk outlook for 2026, underpinned by active
investment portfolio management and a robust internal control framework.
Group
The contagion risk that an action or inaction
of one part of the Beazley Group adversely
affect another part or parts of the syndicate.
This also includes a changes in culture which
leads to inappropriate behaviour, actions and/or
decisions including dilution of culture or negative
impact on the brand.
In 2025, Beazley further developed its Risk Culture Framework, to align with
industry best practice. The framework is underpinned by six guiding principles:
Leadership and Tone from the Top; Risk Governance and Accountability;
Risk Awareness; Communication and Transparency; Risk and Reward;
and Innovation and Adaptiveness.
A strong risk culture is the cornerstone of a mature risk function. It enables
informed and responsible decision-making, fosters transparency, and promotes
vigilance across both existing and emerging risks, ensuring Beazley remains
resilient and forward-looking in an evolving risk and regulatory landscape. In 2025,
advancing our risk culture maturity was a key management priority. A series of
organisation-wide initiatives were launched to strengthen communication and
engagement, with the aim of cultivating a consistent and robust risk culture.
These efforts focused on building a shared understanding of risk, encouraging
proactive management, and reinforcing a supportive ‘speak up’ environment.
Beazley operates shared services, systems, processes and controls across different
legal entities and jurisdictions. As such, the impact of an issue or incident in one
area of the business can have implications across the Group (i.e. contagion risk).
To mitigate this risk we continue focus on group-wide strategic initiatives, which
include continued enhancement of our internal control environment and optimization
of key business and IT processes through deployment of technology solutions.
The BFL Management Committee and the Board oversee Group risk, with regular
monitoring conducted by the Risk Function and overseen by the Risk Committee.
Outlook:
Our Group risk outlook remains stable, with the BFL Management Committee
continuously evolving our risk culture through ongoing monitoring and annual
assessments, designed to drive enhancements.
www.beazley.com Beazley | Syndicate 623 Annual report 2025
13
Managing agent’s report continued
Liquidity
Investments and/or other assets are not
available or adequate in order to settle
financial obligations when they fall due.
By actively managing its liquidity needs, Beazley maximizes flexibility in handling
its financial assets and investment strategy. This proactive approach ensures
that clients and creditors are financially protected. Beazley regularly evaluates
the liquidity position of the syndicates, under the oversight of the Risk Committee.
Liquidity stress testing is performed to assess the largest cash flow demands
from the ten most severe Realistic Disaster Scenarios (RDSs) across a 1-day
and 12-month time horizon.
Liquidity is monitored quarterly to ensure an adequate liquidity surplus is
maintained, such that liquidity exceeds internal requirements, even under
stressed scenarios.
Outlook:
The liquidity risk outlook remains stable, with sufficient available liquidity to
meet expected cashflow requirements, including under stressed scenarios,
while maintaining adequate levels of liquidity and capital buffers.
Regulatory and legal
The risk of non-compliance with regulatory and
legal requirements and supervisory expectations
or failing to operate in line with the relevant
regulatory framework in the territories where
Beazley operates. This may lead to financial
loss (fines, penalties), sanctions, reputational
damage, loss of confidence from regulators,
regulatory intervention, inability to underwrite
or pay claims.
Beazley’s compliance framework supports adherence to rules, laws and regulatory
expectations including through horizon scanning, advice and training. The work
of the compliance function is overseen by the Risk and Regulatory Committee.
In 2025, we implemented a global horizon scanning tool to support the
increasing size and complexity of our multi- jurisdictional business. This tool aids
in identifying, assessing and implementing new and emerging legal and regulatory
policy in a way that is both accessible and immediate across all areas of our
business and locations that we underwrite. Additionally, it helps to increase
awareness of the regulatory environment for a wider audience, strengthens our
adherence to requirements and provides additional clarity over the expectations
of our regulators.
We enhanced our regulatory engagement protocols by developing a new framework,
establishing oversight and strengthening our reporting mechanisms for sharing key
information with our regulators. To ensure effective embedding of the new protocols
and further strengthen our culture of transparency and openness, we provided
firm-wide training to ensure that expectations are understood.
Delivering good customer outcomes remains central to our business. The second
line functions contribute to the work of the Conduct Review Group, which provides
oversight of conduct risk throughout the product lifecycle, ensuring we are able
to consistently meet regulatory expectations for the treatment of our policyholders
and retail customers.
Beazley maintains a very low appetite for regulatory and legal risk. As we
consolidate the regulatory engagement achieved in 2025 and navigate
an increasingly complex environment, maintaining strong and open relationships
with our regulators remains paramount.
Outlook:
The outlook for this risk has moved from increased to stable as a result of the
positive action taken above. We also continue to enhance our key systems and
internal control frameworks as well as adapting our compliance framework to
adhere to our regulatory and compliance landscape. We expect the risk outlook to
improve as changes become well embedded.
Principal risks and summary descriptions Mitigation and monitoring
14
Beazley | Syndicate 623 Annual report 2025 www.beazley.com
Principal risks and summary descriptions Mitigation and monitoring
Operational
The risk of failure of people, processes and
systems or the impact of an external event
on Beazley's operations
Primary risk drivers include technology,
information management, project and change
transformation, third-party management and
the process and people related infrastructure
supporting core business activities;
Underwriting and Claims management.
Our risks and controls are formally monitored and reported through a risk and
control self-assessment process and the use of quantifiable KRIs. Our ongoing
control enhancement and underwriting transformation programmes are designed
to ensure that Beazley is fully equipped to meet current and future operational
challenges, strengthening our resilience and supporting sustainable growth.
In 2025, we further advanced our investment in technology and process re-engineering
to strengthen our operational capabilities and add resilience to internal processes
and associated controls. Our business continuity, disaster recovery and incident
response plans ensure the stability of our processes and systems, enabling our
team to consistently deliver optimal outcomes for our clients.
As the external environment grows more complex, technology and cyber resilience
remain top priorities. We have advanced our cyber maturity journey, collaborating
with external agencies, and maintaining robust controls over information security,
data and operational resilience. Regular reviews of our incident response plans
and ongoing investment in cyber security training for all employees ensure we
remain vigilant and prepared.
While maintaining a low appetite for operational risk, we observed an increase in
reported risk incidents during 2025, albeit of lower materiality, reflecting both the
growing complexity of our operational environment and our enhanced risk awareness
and reporting culture. Our Risk Function works closely with first line teams to ensure
that controls and processes evolve in line with emerging risks and business change.
Outlook:
This risk has moved from an increased to stable outlook in 2026, reflecting a
reduction in the severity of operational risk incidents. This is supported by the
continued benefits of our investment in modernising controls, systems and
processes. As our transformation programmes and modernisation initiatives
progress, we expect these efforts to further enhance our operational resilience in
the years ahead.
Strategic
The risk of loss resulting from ineffective
strategic direction and implementation that
leads to inadequate profitability, financial loss
and/or reputational damage.
Pervasive risks impacting multiple areas of
Beazley (e.g., reputation, and sustainability)
occurring through real or perceived action, or
inaction, by a regulatory body, market and/or
third-party provider.
A negative change to Beazley’s reputation
would have a detrimental impact to BFL and the
syndicates performance and public perception.
Beazley consistently addresses key strategic opportunities and challenges, striving
to be the highest performing and most sustainable specialist insurer. We ensure
that we recognise, understand, discuss, and develop action plans for significant
strategic priorities in a timely manner, while maintaining operational effectiveness
and brand reputation.
More widely over the past 18 months, Beazley has made enhancements to its
corporate governance arrangements to align to a three-platform model. It aims
to ensure that the legal entities benefit from increased transparency, and clarity
around decision-making powers & autonomy, which aims to de-risk the organisation.
The three platform model has been implemented and will continue to be embedded
throughout 2026.
Beazley creates an environment that attracts, retains and develops high performing
talent with diverse perspectives, encouraging exploration, creation, and innovation.
By investing in understanding the complexities of the risks our clients face and
deploying our expertise where it adds value, we thrive. The BFL Management
Committee and the Board oversee these risks, in collaboration with the Group
Executive Committee.
We maintain capital in excess of regulatory requirements to support our business
plan and strategic objectives across the short, medium, and long term.
Our commitment is to create a sustainable business for our people, partners,
and planet through responsible business goals. This focuses on understanding
and reducing our carbon footprint, contributing positively to our social environment,
and upholding strong governance practices. Sustainability principles are embedded
into business planning with a documented transition plan and reputational risk is
mitigated through transparent climate-related decision-making across underwriting,
investments and operations. While market developments are considered, each is
evaluated individually to balance potential opportunities and risks.
Outlook:
As we build on our past achievements, our outlook for strategic risk in 2026
remains stable, underpinned by our commitment to disciplined growth, innovation
and sustainability.
www.beazley.com Beazley | Syndicate 623 Annual report 2025
15
Managing agent’s report continued
Directors
The Directors of BFL during the period covered by this annual report who participated in Syndicate 623 indirectly through Beazley
Staff Underwriting Limited are as follows:
2024 year of account
underwriting capacity
2025 year of account
underwriting capacity
2026 year of account
underwriting capacity
£ £ £
A P Cox 400,000 500,000 n/a
R Anarfi 175,000 275,000 n/a
P Bantick 350,000 500,000 n/a
G Hayes 353,500 400,000 400,000
C C J Wong — — 40,000
M Diacon — — 40,000
B Greenwood 250,000 500,000 500,000
A full list of the Directors of the managing agent who held office during the year can be found on page 68 of these syndicate's
annual accounts.
Syndicate annual general meeting
In accordance with the Syndicate Meetings (Amendment No. 1) Byelaw (No. 18 of 2000) the managing agent does not propose
to hold a syndicate annual meeting this year. Members may object to this proposal within 21 days of this notice. Any objections
must be made in writing to the managing agent.
Disclosure of information to the auditor
The Directors of the managing agent who held office at the date of approval of this managing agent’s report confirm that, so far
as they are each aware, there is no relevant audit information of which the syndicate’s auditor is unaware; and each Director
has taken all the steps that they ought to have taken as a director to make themselves aware of any relevant audit information
and to establish that the syndicate’s auditor is aware of that information.
Auditor
Pursuant to Section 14(2) of Schedule 1 of the Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts)
Regulations 2008, the auditor will be deemed to be reappointed and Ernst & Young LLP will therefore continue in office.
On behalf of the Board
C C J Wong
Director
19 February 2026
16
Beazley | Syndicate 623 Annual report 2025 www.beazley.com
Statement of managing agent’s responsibilities
The Directors of the managing agent are responsible for preparing the syndicate financial statements 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 annual accounts for each financial year. Under that law they have elected to prepare
the annual accounts in accordance with UK Accounting Standards and applicable law (UK Generally Accepted Accounting
Practice), including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland.
Under 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 financial statements,
the Directors of the managing agent are required to:
• select suitable accounting policies and then apply them consistently;
• make judgements and estimates that are reasonable and prudent;
• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and
explained in the annual accounts;
• 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 financial statements comply with the Insurance Accounts Directive (Lloyd’s Syndicate and
Aggregate Accounts) Regulations 2008. They are responsible for such internal control as they determine is necessary to enable
the preparation of financial statements that are free from material misstatement, whether due to fraud or error and have
general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the company and to
prevent and detect fraud and other irregularities.
The Directors of the managing agent are responsible for the maintenance and integrity of the syndicate and financial
information included on the syndicate’s website. Legislation in the UK governing the preparation and dissemination of financial
statements may differ from legislation in other jurisdictions.
The Directors of the managing agent are required to comply with the requirements of Section 1 of the Lloyd’s Syndicate Accounts
Instructions version 3.1 as modified by the Frequently Asked Questions Version 1.1 issued by Lloyd’s (the 'Syndicate Accounts
Instructions').
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.
We confirm that to the best of our knowledge the syndicate accounts, including the iXBRL tagging applied to these accounts,
comply with the requirements of the Lloyd’s Syndicate Accounts Instructions version 3.1 as modified by the Frequently Asked
Questions version 1.1 issued by Lloyd’s.
On behalf of the Board
C C J Wong
Director
19 February 2026
www.beazley.com Beazley | Syndicate 623 Annual report 2025
17
Independent auditor's report to the members of
Syndicate 623
Opinion
We have audited the syndicate annual accounts of syndicate 623 (‘the syndicate’) for the year ended 31 December 2025 which
comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes In Members’ Balances, the
Statement of Cash Flows and the related notes 1 to 24, including a summary of significant accounting policies. The financial
reporting framework that has been applied in their preparation is applicable law including The Insurance Accounts Directive
(Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008, United Kingdom Accounting Standards including FRS 102 ‘The
Financial Reporting Standard applicable in the UK and Republic of Ireland’ and FRS 103 ‘Insurance Contracts’ (‘United Kingdom
Generally Accepted Accounting Practice’), and Section 1 of the Lloyd’s Syndicate Accounts Instructions V3.1 as modified by the
Frequently Asked Questions Version 1.1 issued by Lloyd’s (‘the Syndicate Accounts Instructions’).
In our opinion, the syndicate annual accounts:
• give a true and fair view of the syndicate’s affairs as at 31 December 2025 and of its Profit for the year then ended;
• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
• have been prepared in accordance with the requirements of The Insurance Accounts Directive (Lloyd’s Syndicate and
Aggregate Accounts) Regulations 2008 and the Syndicate Accounts Instructions.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)), The Insurance Accounts
Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008, the Syndicate Accounts Instructions, and other
applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of
the syndicate annual accounts section of our report. We are independent of the syndicate in accordance with the ethical
requirements that are relevant to our audit of the syndicate annual accounts in the UK, including the FRC’s Ethical Standard as
applied to other entities of public interest, and we have fulfilled our other ethical responsibilities in accordance with these
requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the syndicate annual accounts, we have concluded that the managing agent’s use of the going concern basis of
accounting in the preparation of the syndicate annual accounts is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that,
individually or collectively, may cast significant doubt on the syndicate’s ability to continue as a going concern for a period of 12
months from when the syndicate annual accounts are authorised for issue. 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 report and accounts other than the syndicate annual
accounts and our auditor’s report thereon. The directors of the managing agent are responsible for the other information
contained within the annual report and accounts.
Our opinion on the syndicate annual accounts does not cover the other information and, except to the extent otherwise explicitly
stated in this report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially
inconsistent with the syndicate annual accounts or our knowledge obtained in the course of the audit or otherwise appears to
be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to
determine whether this gives rise to a material misstatement in the syndicate annual accounts themselves. If, based on the
work we have performed, we conclude that there is a material misstatement of the other information, we are required to report
that fact.
We have nothing to report in this regard.
18
Beazley | Syndicate 623 Annual report 2025 www.beazley.com
Opinions on other matters prescribed by The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts)
Regulations 2008
In our opinion, based on the work undertaken in the course of the audit:
• the information given in the managing agent’s report for the financial year in which the syndicate annual accounts are prepared
is consistent with the syndicate annual accounts; and
• the managing agent’s report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the syndicate and its environment obtained in the course of the audit, we
have not identified material misstatements in the managing agent’s report.
We have nothing to report in respect of the following matters where The Insurance Accounts Directive (Lloyd’s Syndicate and
Aggregate Accounts) Regulations 2008 requires us to report to you, if in our opinion:
• the managing agent in respect of the syndicate has not kept adequate accounting records; or
• the syndicate annual accounts are not in agreement with the accounting records; or
• certain disclosures of the managing agent’s emoluments specified by law are not made; or
• we have not received all the information and explanations we require for our audit.
Responsibilities of the managing agent
As explained more fully in the Statement of Managing Agent’s Responsibilities set out on page 17, 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.
www.beazley.com Beazley | Syndicate 623 Annual report 2025
19
Independent auditor's report to the members of Syndicate 623
continued
Our approach was as follows:
• We obtained a general understanding of the legal and regulatory frameworks that are applicable to the syndicate and
determined that the most significant are direct laws and regulations related to elements of Lloyd’s Byelaws and Regulations,
and the financial reporting framework (UK United Kingdom Generally Accepted Accounting Practice), and requirements
referred to by Lloyd’s in the Syndicate Accounts instructions. Our considerations of other laws and regulations that may have
a material effect on the syndicate annual accounts included permissions and supervisory requirements of Lloyd’s of London,
the Prudential Regulation Authority (‘PRA’) and the Financial Conduct Authority (‘FCA’).
• We obtained a general understanding of how the syndicate is complying with those frameworks by making enquiries of
management, internal audit, and those responsible for legal and compliance matters of the syndicate. In assessing the
effectiveness of the control environment, we also reviewed significant correspondence between the syndicate, Lloyd’s of
London and other UK regulatory bodies; reviewed minutes of the Board and Risk Committee of the managing agent; and
gained an understanding of the managing agent’s approach to governance.
• For direct laws and regulations, we considered the extent of compliance with those laws and regulations as part of our
procedures on the related syndicate annual accounts’ items.
• For both direct and other laws and regulations, our procedures involved: making enquiries of the directors of the managing
agent and senior management for their awareness of any non-compliance of laws or regulations, enquiring about the policies
that have been established to prevent non-compliance with laws and regulations by officers and employees, enquiring about
the managing agent’s methods of enforcing and monitoring compliance with such policies, and inspecting significant
correspondence with Lloyd’s, the PRA and the FCA and involvement of relevant specialists, including forensics specialists and
inquiring about the appointment of external advisors, including legal counsel, as applicable.
• The syndicate operates in the insurance industry which is a highly regulated environment. As such the Senior Statutory
Auditor considered the experience and expertise of the engagement team to ensure that the team had the appropriate
competence and capabilities, which included the use of specialists where appropriate.
• We assessed the susceptibility of the syndicate’s annual accounts to material misstatement, including how fraud might occur
by considering the controls that the directors of the managing agent have established to address risks identified by them, or
that otherwise seek to prevent, deter or detect fraud. We also considered areas of significant judgement, complex
transactions, performance targets, economic or external pressures and the impact these have on the control environment.
Where this risk was considered to be higher, we performed audit procedures to address each identified fraud risk, including;
– Reviewing accounting estimates for evidence of management bias. Supported by our Actuaries, we assessed if there
were any indicators of management bias in the valuation of insurance liabilities and the recognition of estimated premium
income.
– Evaluating the business rationale for significant and/or unusual transactions.
– Testing the appropriateness of journal entries recorded in the general ledger, particularly in respect of judgemental areas
including valuation of insurance liabilities and estimated premium income.
A further description of our responsibilities for the audit of the annual accounts is located on the Financial Reporting Council’s
website at https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Other matter
Our opinion on the syndicate annual accounts does not cover the iXBRL tagging included within these syndicate annual
accounts, and we do not express any form of assurance conclusion thereon.
Use of our report
This report is made solely to the syndicate’s members, as a body, in accordance with The Insurance Accounts Directive (Lloyd’s
Syndicate and Aggregate Accounts) Regulations 2008. Our audit work has been undertaken so that we might state to the
syndicate’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the
fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the syndicate and the
syndicate’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Niamh Byrne (Senior statutory auditor)
for and on behalf of Ernst & Young LLP, Statutory Auditor
London
20
Beazley | Syndicate 623 Annual report 2025 www.beazley.com
20 February 2026
Statement of comprehensive income
for the year ended 31 December 2025
| 2025 | 2024 | ||
Notes | $'000 | $'000 | |
| Gross premiums written | 3 | | |
| Outward reinsurance premiums | ( | ( | |
| Premiums written, net of reinsurance | | | |
Changes in unearned premium | |||
Change in the gross provision for unearned premiums | 15 | | ( |
Change in the provision for unearned premiums, reinsurers’ share | 15 | ( | |
| Net change in the provisions for unearned premiums | ( | ( | |
| Earned premiums, net of reinsurance | | | |
Allocated investment return transferred from the non-technical account | 7 | | |
Claims paid | |||
Gross amount | 15 | ( | ( |
Reinsurers’ share | 15 | | |
| Net claims paid | ( | ( | |
Change in the provision for claims | |||
| Gross amount | 15 | ( | ( |
| Reinsurers' share | 15 | | |
| Net change in provisions for claims | ( | ( | |
| Claims incurred, net of reinsurance | ( | ( | |
| Net operating expenses | 4 | ( | ( |
| Balance on technical account - general business | | | |
| Investment income | 7 | | |
| Realised gains on investments | 7 | | |
| Unrealised gains on investments | 7 | | |
| Investment expenses and charges | 7 | ( | ( |
| Total investment return | | | |
| Allocated investment return transferred to technical account | ( | ( | |
| Loss on foreign exchange | ( | ( | |
| Other income | | | |
| Profit for the financial year | | | |
| Total comprehensive income for the financial year | | |
There were no other comprehensive gains or losses in the year.
The notes on pages 25 to 50 form part of these financial statements.
www.beazley.com Beazley | Syndicate 623 Annual report 2025
21
Balance sheet
as at 31 December 2025
2025 2024
Notes
$'000 $'000
Assets
Investments
Financial investments
9 1,402,583 1,364,868
Deposits with ceding undertakings 912 850
Reinsurers' share of technical provisions
Provision for unearned premiums 15 74,966 87,496
Claims outstanding 15 386,305 374,477
Debtors
Debtors arising out of direct insurance operations
11
Debtors arising out of reinsurance operations
12
Other debtors 13 30,487 37,181
Other assets
Cash at bank and in hand 19
Prepayments and accrued income
Deferred acquisition costs 14 130,028 121,990
Other prepayments and accrued income 17,696 15,637
Total assets
Capital and reserves
Members' balances 245,946 201,643
Liabilities
Technical provisions
Provision for unearned premiums 15 541,971 542,731
Claims outstanding 15 1,506,890 1,423,896
Creditors
Creditors arising out of direct insurance operations 16 3,750 2,876
Creditors arising out of reinsurance operations 17 106,745 117,492
Other creditors 18 160,481 191,266
Accruals and deferred income 20,406 17,743
Total liabilities
Total liabilities, capital and reserves
The notes on pages 25 to 50 form part of these financial statements.
The syndicate annual accounts on pages 21 to 50 were approved and authorised for issue by the Board of Beazley Furlonge
Limited on 19 February 2026 and were signed on its behalf by:
C C J Wong
Director
22
Beazley | Syndicate 623 Annual report 2025 www.beazley.com
Statement of changes in members’ balances
for the year ended 31 December 2025
| 2025 | 2024 | |
| $'000 | $'000 | |
| Members’ balances brought forward at 1 January | | |
| Total comprehensive income for the financial year | | |
| Payments of profit to members' personal reserve funds | ( | ( |
| Losses collected in relation to distribution on closure of underwriting year | | |
| Members' agent fees | ( | ( |
| Other | ( | ( |
| Members’ balances carried forward at 31 December | | |
Members participate in syndicates by reference to year of account ('YoA') and their ultimate result, assets and liabilities are
assessed with reference to policies incepting in that YoA in respect of their membership of a particular year.
The notes on pages 25 to 50 form part of these financial statements.
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Statement of cash flows
for the year ended 31 December 2025
| 2025 | 2024 | ||
Notes | $'000 | $'000 | |
Cash flows from operating activities | |||
| Profit for the financial year | | | |
Adjustments for: | |||
Increase in gross technical provisions | 15 | | |
Decrease/(increase) in reinsurers' share of gross technical provisions | 15 | | ( |
| Increase in debtors | ( | ( | |
| (Decrease)/increase in creditors | ( | | |
| Movement in other assets/liabilities | ( | ( | |
Investment return | 7 | ( | ( |
| Foreign exchange | ( | | |
Net cash flows from operating activities | | | |
Cash flows from investing activities | |||
| Purchase of equity and debt securities | ( | ( | |
| Sale of equity and debt securities | | | |
| Investment income received | | | |
Net cash flows from investing activities | | ( | |
Cash flows from financing activities | |||
| Distribution of profit | ( | ( | |
| Other | ( | ( | |
Net cash flows from financing activities | ( | ( | |
Net increase 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 | 19 | | |
The notes on pages 25 to 50 form part of these financial statements.
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Beazley | Syndicate 623 Annual report 2025 www.beazley.com
1 Accounting policies
Basis of preparation
Syndicate 623 (the ‘syndicate’) comprises a group of members of the Society of Lloyd’s that underwrites insurance business
in the London Market. The managing agent of the syndicate is Beazley Furlonge Limited ('BFL'), whose registered address
and principal place of business is 22 Bishopsgate, London, EC2N 4BQ. The ultimate controlling party of BFL is Beazley plc,
a company incorporated in England and Wales.
The syndicate annual accounts have been prepared in accordance with the Insurance Accounts Directive (Lloyd’s Syndicate and
Aggregate Accounts) Regulations 2008, applicable Accounting Standards in the United Kingdom and the Republic of Ireland,
including Financial Reporting Standard 102 ('FRS 102'), Financial Reporting Standard 103 ('FRS 103') in relation to insurance
contracts, and the Lloyd’s Syndicate Accounts Instructions Version 3.1 as modified by the Frequently Asked Questions Version
1.1 issued by Lloyd’s.
The financial statements have been prepared on the historic cost basis, except for financial assets at fair value through profit or
loss ('FVTPL') which are measured at fair value. All amounts presented are stated in US dollars, being the syndicate’s functional
currency, and in thousands, unless noted otherwise.
Going concern
The financial statements of the syndicate have been prepared on a going concern basis. The syndicate’s business activities,
together with the factors likely to affect its future development, performance and position, are set out in the Strategic report of
the managing agent (refer to pages 2 - 9). In addition, note 2 includes the syndicate’s risk management objectives and the
managing agent’s objectives, policies and processes for managing its capital. The syndicate has sufficient capital for each year
of account in its Funds at Lloyd’s. There is no intention to cease underwriting or cease the operations of the syndicate.
In assessing the syndicate’s going concern position as at 31 December 2025, the managing agent has considered a number of
factors, including the current statement of financial position and the syndicate’s strategic and financial plan. The assessment
concluded that, for the foreseeable future, the syndicate has sufficient capital and liquidity for the 12 months from the date the
financial statements are authorised for issue.
Use of estimates and judgements
The preparation of financial statements requires the use of estimates and judgements that affect the reported amounts of
assets, liabilities, income and expenses. Actual results may differ from those on which management’s estimates are based.
Estimates and assumptions are continually evaluated and are based on historical experience and other factors. For example,
estimates which are sensitive to economic, regulatory and geopolitical conditions could be impacted by significant changes
in the external environment such as the volatile macroeconomic environment, climate change, international conflicts,
and significant changes in legislation. Any revisions to accounting estimates are recognised in the period in which the estimate
is revised and in any future periods affected.
Specific 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.
(a) Valuation of insurance contract liabilities
The most critical estimate included within the syndicate’s balance sheet is the estimate for insurance losses incurred but not
reported (‘IBNR’), which is included within total technical provisions and reinsurers’ share of technical provisions in the balance
sheet and note 15. This estimate is critical as it outlines the current liability for future expenses expected to be incurred in
relation to claims. If this estimation was to prove inadequate then an exposure would arise in future years where a liability has
not been provided for. The best estimate of the most likely ultimate outcome is used when calculating notified claims. This
estimate is based upon the facts available at the time, in conjunction with the claims manager’s view of likely future
developments. The total estimate of gross IBNR as at 31 December 2025 included within claims outstanding on the balance
sheet is $1,095,051k (2024: $1,065,289k).
Notes to the syndicate annual accounts
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1 Accounting policies continued
(b) Valuation of unquoted and illiquid financial assets
Determination of fair value of unquoted and illiquid assets involves judgement in model valuations, through the incorporation of
both observable and unobservable market inputs. These inputs include assumptions that lead to the existence of a range of
plausible valuations. Further detail on the methodologies and inputs used is described in note 9.
(c) Premium estimates
Premium written is initially based on the estimated premium income (‘EPI’) of each contract. Where premium is sourced through
binders, the binder EPI is pro-rated across the binder period. Judgement is involved in determining the ultimate estimates in
order to establish the appropriate premium value and, ultimately, the cash to be received. EPI estimates are updated to reflect
changes in an underwriters expectation through consultation with brokers and third-party coverholders, changes in market
conditions, historic experience and to reflect actual cash received for a contract.
Due to the nature of Lloyd’s business and the settlement patterns of the underlying business it is also not uncommon for some
contracts to take a number of years to finalise and settle, and a receivable on the balance sheet remains. The amount
of estimated future premium that remains in debtors relating to years of account that are more than three years developed at
31 December 2025 is $5,396k (2024: $5,358k).
Significant accounting policies
The financial statements have been prepared on an annual basis of accounting, whereby the incurred cost of claims,
commissions and related expenses are charged against the earned proportion of premiums, net of reinsurance as follows:
(a) Premiums written
Gross premiums written comprise premiums on contracts incepted during the financial year together with adjustments to premiums
written in previous accounting periods and estimates for premiums from contracts entered into during the course of the year.
Gross written premiums are stated before the deduction of brokerage, taxes, duties levied on premiums and other deductions.
(b) Unearned premiums
A provision for unearned premiums (gross of reinsurance) represents the part of the gross premiums written that is estimated
to be earned in the following financial periods. It is calculated using the daily pro-rata method, under which the premium
is apportioned over the period of risk.
(c) Claims provisions and related reinsurance recoveries
Claims represent the cost of claims and claims handling expenses paid during the financial year, together with the movement in
provisions for outstanding claims, claims IBNR and future claims handling provisions. The provision for outstanding claims
comprises amounts set aside for claims advised and IBNR.
The IBNR amount is based on estimates calculated using widely accepted actuarial techniques which are reviewed quarterly
by the group actuary and annually by the independent syndicate reporting actuary. The techniques generally use projections,
based on past experience of the development of claims over time, to form a view on the likely ultimate claims to be
experienced. For more recent underwriting, regard is given to the variations in the business portfolio accepted and the
underlying terms and conditions. Thus, the critical assumptions used when estimating claims provisions are that the past
experience is a reasonable predictor of likely future claims development and that the rating and other models used to analyse
current business are a fair reflection of the likely level of ultimate claims to be incurred.
A provision is made at the year end for the estimated cost of claims incurred but not settled at the balance sheet date,
including the cost of claims incurred but not yet reported to the managing agent. The managing agent takes all reasonable
steps to ensure that it has appropriate information regarding its claims exposures. 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.
Notes to the Syndicate annual accounts continued
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1 Accounting policies continued
(d) Liability adequacy testing
At each reporting date, liability adequacy tests are performed to ensure the adequacy of the claims liabilities net of deferred
acquisition costs and unearned premium reserves. In performing these tests, current best estimates of future contractual cash
flows, claims handling and administration expenses as well as investment income from the assets backing such liabilities are used.
Any deficiency is subsequently charged to the statement of comprehensive income by establishing an unexpired risk reserve
provision for losses arising from liability adequacy tests.
(e) Acquisition costs
Acquisition costs comprise brokerage, premium levies, and staff related costs of the underwriters acquiring the business. The
proportion of acquisition costs in respect of unearned premiums is deferred at the balance sheet date and recognised in later
periods when the related premiums are earned.
(f) Foreign currencies
Foreign currency transactions are translated into the functional currency using average exchange rates applicable to the period
in which the transactions take place and where the syndicate considers these to be a reasonable approximation of the
transaction rate. Foreign exchange gains and losses resulting from the settlement of such transactions and from translation at
the period end of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of
comprehensive income.
(g) Investment return
Investment return comprises all investment income, realised investment gains and losses and movements in unrealised gains
and losses, net of investment expenses, charges and interest.
Realised gains and losses on investments carried at market value are calculated as the difference between sale proceeds and
the original cost of the investment. Movements in unrealised gains and losses on investments represent the difference between
the valuation at the balance sheet date, and the valuation at the previous period end or purchase value during the period.
Investment return is initially recorded in the non-technical account. A transfer is made from the non-technical account to the
general business technical account to reflect the investment return on funds supporting underwriting business.
(h) Ceded reinsurance
These are contracts entered into by the syndicate with reinsurers under which the syndicate is compensated for losses
on contracts issued by the syndicate and that meet the definition of an insurance contract. Insurance contracts entered into
by the syndicate under which the contract holder is another insurer (inwards reinsurance) are included with insurance contracts.
Any benefits to which the syndicate is entitled under its reinsurance contracts held are recognised as reinsurance assets. These
consist of balances due from reinsurers relating to claims and also includes the provision for unearned premiums, reinsurers’
share. Balances due relating to the reinsurers share of claims are based on calculated amounts of outstanding claims
recoveries and projections for IBNR, net of estimated irrecoverable amounts having regard to the reinsurance programme in
place for the class of business, the claims experience for the period and the current security rating of the reinsurer involved.
Reinsurance liabilities are primarily premiums payable for reinsurance contracts and are recognised as an expense when due.
Reinsurance assets are assessed for impairment at each reporting date. If there is objective evidence of impairment,
then the carrying amount is reduced to its recoverable amount and the impairment loss is recognised in the statement
of comprehensive income.
(i) Financial instruments
Recognition and derecognition
Financial instruments are recognised on the balance sheet at such time that the syndicate becomes a party to the contractual
provisions of the financial instrument. A financial asset is derecognised when:
• the contractual rights to receive cash flows from the financial assets expire;
• the financial assets have been transferred, together with substantially all the risks and rewards of ownership; or
• despite having retained some, but not substantially all, risks and rewards of ownership, control of the asset is transferred
to another party and the other party has the practical ability to sell the asset in its entirety to an unrelated third party.
Financial liabilities are derecognised if the syndicate’s obligations specified in the contract expire, are discharged or cancelled.
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1 Accounting policies continued
Financial assets and liabilities measurement
On acquisition of a financial asset or liability, the asset or liability is measured at the transaction price, except for those
financial assets and liabilities at FVTPL, which are initially measured at fair value. The exception to this is when the arrangement
constitutes a financing transaction however, the syndicate does not make use of any such arrangements.
Except for derivative financial investments, all financial investments are designated as FVTPL upon initial recognition because
they are managed and their performance is evaluated on a fair value basis. Information about these financial instruments is
provided internally on a fair value basis to key management. The investment strategy is to invest and evaluate their performance
with reference to their fair values.
Fair value measurement
Fair value is the price at which an orderly transaction to sell an asset or to transfer a liability would take place between market
participants at the measurement date. Fair value is a market-based measure and in the absence of observable market prices
in an active market, it is measured using the assumptions that market participants would use when pricing the asset or liability.
The best evidence of the fair value of a financial instrument at initial recognition is the transaction price, i.e., the fair value of the
consideration given or received, unless the fair value of that instrument is evidenced by comparison with other observable
current market transactions in the same instrument (i.e., without modification or repackaging) or based on a valuation technique
whose variables include only data from observable markets.
When the transaction price provides the best evidence of fair value at initial recognition, the financial instrument is initially
measured at the transaction price and any difference between this price and the value initially obtained from a valuation model is
subsequently recognised in the statement of comprehensive income depending on the individual facts and circumstances of the
transaction but not later than when the valuation is supported wholly by observable market data or the transaction is closed out.
Upon initial recognition, attributable transaction costs relating to financial instruments at FVTPL are recognised in the statement
of comprehensive income when incurred. Financial assets at FVTPL are continuously measured at fair value, and changes
therein are recognised in the statement of comprehensive income. Net changes in the fair value of financial assets at FVTPL
exclude interest and dividend income, as these items are accounted for separately.
Hedge funds, equity funds, collateralised loan obligations, and illiquid credit assets
The syndicate participates in a number of hedge funds and related financial instruments for which there are no readily available
quoted market prices. The valuation of these hedge funds is based on fair value techniques (as described above). The fair value
of our hedge fund portfolio is calculated by reference to the underlying net asset values of each of the individual funds.
Consideration is also given in valuing these funds to any restriction applied to distributions, the existence of side pocket
provisions, and the timing of the latest available valuations. At certain times, the syndicate will have uncalled unfunded
commitments in relation to its illiquid credit assets. The additional investment into its illiquid credit asset portfolio is recognised
on the date that this funding is provided. These instruments are included within shares and other variable yield securities and
units in unit trusts. The syndicate also invests in a number of collateralised loan obligations ('CLOs'). The valuation of of these
CLOs is based on fair value techniques (as described above). The CLOs are included within debt securities and other fixed
income securities.
(j) Insurance debtors and creditors
Insurance debtors and creditors include amounts due to and from agents, brokers and insurance contract holders. These are
classified as debt instruments as they are non-derivative financial assets with fixed or determinable payments that are not
quoted on an active market. Insurance debtors are measured at amortised cost less any provision for impairments. Insurance
creditors are stated at amortised cost. The syndicate does not have any debtors directly with policyholders, all transactions
occur via an intermediary. For information on reinsurance debtors and creditors, refer to section (h) above.
(k) Other debtors
Other debtors principally consist of intercompany debtor balances and sundry debtors and are carried at amortised cost less
any impairment losses.
(l) Other creditors
Other creditors principally consist of amounts due to Syndicate 2623, 6107, 3623, and other related entities, and profit commissions
payable. These are stated at amortised cost determined using the effective interest rate method.
Notes to the Syndicate annual accounts continued
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1 Accounting policies continued
(m) Derivative financial instruments
Derivatives are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently
remeasured at their fair value. The best evidence of fair value of a derivative at initial recognition is the transaction price. Fair
values are obtained from quoted market prices in active markets, recent market transactions, and valuation techniques which
include discounted cash flow models. All derivatives are carried as assets when fair value is positive and as liabilities when fair
value is negative.
Derivative assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable
right to set off the recognised amounts and the parties intend to settle on a net basis, or realise the assets and settle the
liability simultaneously. Derivative assets are included within Financial investments in the Balance Sheet. Derivative liabilities
are included within other creditors.
(n) Impairment of financial assets
Assessment is made at each reporting date whether there is objective evidence that a financial asset or group of financial
assets measured at amortised cost 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 assets and that event has an impact on the estimated cash flows of the financial asset or group of
financial assets that can be reliably estimated.
If there is objective evidence that impairment exists, the amount of the loss is measured as the difference between the assets
carrying amount and the value of the estimated future cash flows discounted at the financial asset’s original effective interest
rate. Where a loss is incurred this is recognised in the statement of comprehensive income.
(o) Cash and cash equivalents
Cash and cash equivalents are comprised of cash at bank and in hand, in addition to deposits held at call with banks and other
short-term highly liquid investments with maturities of three months or less from the acquisition date. Only cash at bank and in
hand is presented separately on the face of the balance sheet, while cash equivalents are included within the 'financial
investments' line. Cash and cash equivalents are shown in aggregate on the cash flow statement and at note 19. These are
carried at amortised cost less impairment losses.
(p) Taxation
Under Schedule 19 of the Finance Act 1993 managing agents are not required to deduct basic rate income tax from trading
income. In addition, all UK basic rate income tax (20%) 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 US federal income tax payable on underwriting results or investment earnings.
Any payments on account made by the syndicate during the year have been included in the balance sheet under the heading
‘other debtors’. No provision has been made for any other overseas tax payable by members on underwriting results.
(q) Pension costs
Pension contributions relating to staff who act on behalf of the syndicate are charged to the syndicate and included within net
operating expenses.
(r) Profit commission
Profit commission is charged by the managing agent at a rate of 17.5% of the profit on a YoA basis subject to the operating of a
two-year deficit clause. This is charged to the syndicate as incurred but does not become payable until after the appropriate YoA
closes, normally at 36 months of YoA development.
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2 Risk management
The managing agent has identified the risks arising from its activities and has established policies and procedures to manage
these items in accordance with its risk appetite. The sections below outline the syndicate’s risk appetite and explain how the
managing agent defines and manages each category of risk. The risk management framework is discussed in the managing
agent's report.
2.1 Insurance risk
The syndicate’s insurance business assumes the risk of loss from persons or organisations that are directly exposed to an
underlying loss. Insurance risk arises from this risk transfer due to inherent uncertainties about the occurrence, amount and
timing of insurance liabilities. The four key components of insurance risk are underwriting, reinsurance, claims management and
reserving. Each element is considered below.
(a) Underwriting risk
Underwriting risk comprises four elements that apply to all insurance products offered by the syndicate:
• cycle risk – the risk that business is written without full knowledge as to the (in)adequacy of rates, terms and conditions;
• event risk – the risk that individual risk losses or catastrophes lead to claims that are higher than anticipated in plans and pricing;
• pricing risk – the risk that the level of expected loss is understated in the pricing process; and
• expense risk – the risk that the allowance for expenses and inflation in pricing is inadequate.
The syndicate’s underwriting strategy is to seek a diverse and balanced portfolio of risks in order to limit the variability of
outcomes. This is achieved by accepting a spread of business over time, segmented between different products, geography and
size. The annual business plans for each underwriting team reflect the syndicate’s underwriting strategy, and set out the classes
of business, the territories and the industry sectors in which business is to be written. These plans are approved by the Board
of BFL and monitored by the Underwriting Committee. BFL’s underwriters calculate premiums for risks written based on a range
of criteria tailored specifically to each individual risk. These factors include but are not limited to the financial exposure,
loss history, risk characteristics, limits, deductibles, terms and conditions and acquisition expenses.
The managing agent also recognises that insurance events are, by their nature, random, and the actual number and size of
events during any one year may vary from those estimated using established statistical techniques. To address this, the
managing agent sets out the exposure that it is prepared to accept in certain territories to a range of events such as natural
catastrophes and specific scenarios which may result in large industry losses. This is monitored through regular calculation of
Realistic Disaster Scenarios. The aggregate position is monitored at the time of underwriting a risk, and reports are regularly
produced to highlight the key aggregations to which the syndicate is exposed.
The managing agent uses a number of modelling tools to monitor its exposures against the agreed risk appetite set and to
simulate catastrophe losses in order to measure the effectiveness of its reinsurance programmes. Stress and scenario tests are
also run using these models. The range of scenarios considered include natural catastrophes, cyber, marine, liability, political,
terrorism and war events.
One of the largest types of event exposure relates to natural catastrophe events such as windstorms or earthquake. With the
increasing risk from climate change impacting the frequency and severity of natural catastrophes, the managing agent continues
to monitor its exposure. Where possible the managing agent measures geographic accumulations and uses its knowledge of
the business, historical loss behaviour and commercial catastrophe modelling software to assess the expected range of losses
at different return periods. Upon application of the reinsurance coverage purchased, the key gross and net exposures are
calculated on the basis of extreme events at a range of return periods.
To manage underwriting exposures, the managing agent has developed limits of authority and business plans which are binding
upon all staff authorised to underwrite and are specific to underwriters, classes of business and industry. These authority limits
are enforced through a comprehensive sign-off process for underwriting transactions including dual sign-off for all line
underwriters and peer review for all risks exceeding individual underwriters authority limits. Exception reports are also run
regularly to monitor compliance. All underwriters also have a right to refuse renewal or change the terms and conditions of
insurance contracts upon renewal. Rate monitoring details, including limits, deductibles, exposures, terms and conditions and
risk characteristics are also captured and the results are combined to monitor the rating environment for each class of business.
Notes to the Syndicate annual accounts continued
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2 Risk management continued
Binding authority contracts
A proportion of the syndicate’s insurance risks are transacted by third parties under delegated underwriting authorities. Each
third party is thoroughly vetted by the managing agent's coverholder approval group before it can bind risks, and is subject to
rigorous monitoring to maintain underwriting quality and confirm ongoing compliance with contractual guidelines.
(b) Reinsurance risk
Reinsurance risk to the syndicate arises where reinsurance contracts, put in place to reduce gross insurance risk, do not
perform as anticipated, result in coverage disputes or prove inadequate in terms of the vertical or horizontal limits purchased.
Failure of a reinsurer to pay a valid claim is considered a credit risk which is detailed separately below.
The syndicate’s reinsurance programmes complement the underwriting team's business plans and seek to protect syndicate
capital from an adverse volume or volatility of claims on both a per risk and per event basis. In some cases the syndicate
deems it more economic to hold capital than to purchase reinsurance. These decisions are regularly reviewed as an integral
part of the business planning and performance monitoring process.
The Reinsurance Security Committee examines and approves all reinsurers to ensure that they possess suitable security. The
syndicate’s ceded reinsurance team ensures that these guidelines are followed, undertakes the administration of reinsurance
contracts, monitors and instigates responses to any erosion of the reinsurance programmes.
(c) Claims management risk
Claims management risk may arise within the syndicate in the event of inaccurate or incomplete case reserves and claims
settlements, poor service quality or excessive claims handling costs. These risks may damage the Beazley brand and undermine
its ability to win and retain business or incur punitive damages. These risks can occur at any stage of the claims life-cycle. The
managing agent’s claims teams are focused on delivering quality, reliability and speed of service to both internal and external
clients. Their aim is to adjust and process claims in a fair, efficient and timely manner, in accordance with the policy’s terms
and conditions, the regulatory environment, and the business’s broader interests. Prompt and accurate case reserves are set
for all known claims liabilities, including provisions for expenses.
(d) Reserving and ultimate reserves risk
Reserving and ultimate reserves risk occurs within the syndicate where established insurance liabilities are insufficient through
inaccurate forecasting, or where there is inadequate allowance for expenses and reinsurance bad debt provisions.
To manage reserving and ultimate reserves risk, the managing agent's actuarial team uses a range of recognised techniques
to project gross premiums written, monitor claims development patterns and stress test ultimate insurance liability balances.
An external independent actuary also performs an annual review to produce a statement of actuarial opinion for the syndicate.
The objective of the syndicate’s reserving policy is to produce accurate and reliable estimates that are consistent over time and
across classes of business. The estimates of gross premiums written and claims prepared by the actuarial department are
used through a formal quarterly peer review process to independently test the integrity of the estimates produced by the
underwriting teams for each class of business. These meetings are attended by senior management, senior underwriters, actuarial,
claims, and finance representatives.
The syndicate monitors its exposure to insurance risk and insured perils by location.
A set increase or decrease in total claims liabilities would have the following impact on profit and members' balances:
Sensitivity to insurance risk (claims reserves)
Impact on profit and members' balances
2025 2024
$'000 $'000
Claims outstanding - gross of reinsurance 1,506,890 1,423,896
Claims outstanding - net of reinsurance
1,120,585
1,049,419
5% increase in gross claims reserve
(75,345 )
(71,195 )
5% decrease in gross claims reserve
5% increase in net claims reserve
(56,029 )
(52,471 )
5% decrease in net claims reserve
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2 Risk management continued
2.2 Market risk
Market risk arises where the value of assets and liabilities changes as a result of movements in foreign exchange rates, interest rates
and market prices.
Foreign exchange risk
The functional and presentational currency of the syndicate is the US dollar. The effect of this on foreign exchange risk is that
the syndicate is exposed to fluctuations in exchange rates for non-dollar denominated transactions and net assets. Foreign
exchange risk is actively managed as described below.
The syndicate has four main settlement currencies: US dollars, sterling, Canadian dollars and euro. Transactions in all currencies
are converted to US dollars on initial recognition and revalued at the reporting date.
The syndicate’s assets are broadly matched by currency to the principal underlying settlement currencies of its insurance
liabilities. This helps mitigate the risk that future movements in exchange rates would materially impact the syndicate’s assets
required to cover its insurance liabilities.
The following table summarises the carrying value of total assets and total liabilities categorised by currency:
| UK £ | US $ | EUR € | CAD $ | AUD $ | Other | Total | |
| 31 December 2025 | $'000 | $'000 | $'000 | $'000 | $'000 | $'000 | $'000 |
| Investments | | | | | | | |
Reinsurers' share of technical provisions | | | | | | | |
| Debtors | | | | ( | | | |
| Other assets | | | | | | | |
| Prepayments and accrued income | | | | | | | |
| Total assets | | | | | | | |
| Technical provisions | ( | ( | ( | ( | | | ( |
| Creditors | ( | ( | ( | ( | | | ( |
| Accruals and deferred income | ( | ( | ( | ( | | | ( |
| Total liabilities | ( | ( | ( | ( | | | ( |
| Total Capital and Reserves | | ( | ( | ( | ( | ( | ( |
UK £ | US $ | EUR € | CAD $ | AUD $ | Other | Total | |
| 31 December 2024 | $'000 | $'000 | $'000 | $'000 | $'000 | $'000 | $'000 |
| Investments | | | | | | | |
Reinsurers' share of technical provisions | | | | | | | |
| Debtors | | | | | | | |
| Other assets | | | | | | | |
| Prepayments and accrued income | | | | | | | |
| Total assets | | | | | | | |
| Technical provisions | ( | ( | ( | ( | | | ( |
| Creditors | ( | ( | ( | ( | | | ( |
| Accruals and deferred income | ( | ( | ( | ( | | | ( |
| Total liabilities | ( | ( | ( | ( | | | ( |
| Total Capital and Reserves | | ( | ( | ( | ( | ( |
Notes to the Syndicate annual accounts continued
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2 Risk management continued
Sensitivity analysis - foreign exchange risk
In 2025, the managing agent managed the syndicate's foreign exchange risk by periodically assessing its non-dollar exposures
and hedging these to a tolerable level while targeting net assets to be entirely US dollar denominated. As part of this hedging
strategy, exchange rate derivatives were used to rebalance currency exposure. Details of foreign currency derivative contracts
entered into with external parties are disclosed in note 10. On a forward looking basis an assessment is made of expected
future exposure development and appropriate currency trades put in place to reduce risk.
Fluctuations in the syndicate’s trading currencies against the US dollar would result in a change to profit and members'
balances. The table below gives an indication of the impact on profit and members balances of a percentage change in relative
strength of US dollar against the value of sterling, Canadian dollar, Australian dollar and euro, simultaneously.
Impact on profit and members' balances
2025 2024
Change in exchange rate of sterling, Canadian dollar, Australian dollar and euro relative to US dollar
$'000 $'000
Dollar weakens 10% against other currencies 2,543 (3,575)
Dollar strengthens 10% against other currencies (2,543) 3,575
Interest rate risk
Some of the syndicate’s financial instruments, including financial investments and cash and borrowings, are exposed to movements
in market interest rates.
The managing agent manages interest rate risk by primarily investing in short duration financial investments and cash.
The Investment Committee monitors the duration of these assets on a regular basis.
The following table shows the average duration at the reporting date of the financial instruments that are exposed to movements
in market interest rates. Duration is a commonly used measure of volatility which gives a better indication than maturity of the
likely sensitivity of our portfolio to changes in interest rates.
Duration <1 yr 1-2 yrs 2-3 yrs 3-4 yrs 4-5 yrs 5-10 yrs >10 yrs Total
31 December 2025 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Debt securities and other fixed income
securities
417,076 338,421 144,663 56,925 22,394 54,604 —
1,034,083
Participation in investment pools 13,234 — — — — — — 13,234
Shares and other variable yield securities
and unit trusts*
— — — 98,119 — — — 98,119
Loans and deposits with credit
institutions
6,556 — — — — — — 6,556
Overseas deposits 70,652 — — — — — — 70,652
Cash at bank in hand 53,844 — — — — — — 53,844
Derivative financial instruments 45 — — — — — — 45
Syndicate loans to central fund — — — — — — — —
Total
561,407 338,421 144,663 155,044 22,394 54,604 —
1,276,533
*Excluding equity securities.
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33
2 Risk management continued
Duration <1 yr 1-2 yrs 2-3 yrs 3-4 yrs 4-5 yrs 5-10 yrs >10 yrs Total
Debt securities and other fixed income
securities
338,248 381,433 185,000 77,193 19,760 31,909 —
1,033,543
Participation in investment pools 13,349 — — — — — — 13,349
Shares and other variable yield securities
and unit trusts*
— — — 83,830 — — — 83,830
Loans and deposits with credit
institutions
— — — — — — — —
Overseas deposits 67,440 — — — — — — 67,440
Cash at bank in hand 40,887 — — — — — — 40,887
Derivative financial instruments 1,955 — — — — — — 1,955
Syndicate loans to central fund 5,864 — — — — — — 5,864
Total
467,743 381,433 185,000 161,023 19,760 31,909 —
1,246,868
*Excluding equity securities.
Sensitivity analysis - interest rate risk
The syndicate holds financial assets and liabilities that are exposed to interest rate risk. Changes in interest yields, with all other
variables constant, would result in changes in the capital value of debt and derivative financial instruments. This will affect
reported profits and members' balances as indicated in the table below.
Impact on profit for the year
ended
Impact on members'
balances
2025 2024 2025 2024
Shift in yield (basis points) $'000 $'000 $'000 $'000
50 basis point increase (10,637 ) (9,538 ) (10,637 ) (9,538 )
50 basis point decrease 10,637 9,538 10,637 9,538
Price risk
Financial assets and derivatives that are recognised on the balance sheet at their fair value are susceptible to losses due to adverse
changes in prices. This is referred to as price risk.
Financial assets include fixed and floating rate debt securities, hedge funds, equity funds and derivative financial assets. The
fixed income securities are well diversified across high quality, liquid securities. The price risk associated with these securities
is predominantly interest, foreign exchange and credit risk related. The sensitivity to price risk that relates to the syndicate’s
hedge fund investments and equity linked funds is presented below. The Investment Committee has established comprehensive
guidelines with investment managers setting out maximum investment limits, diversification across industries and concentrations
in any one industry or company.
Listed investments are recognised on the balance sheet at quoted bid price. If the market for the investment is not considered
to be active, then the syndicate establishes fair value using valuation techniques (refer to note 9). This includes using recent
arm’s length market transactions, reference to current fair value of other investments that are substantially the same,
discounted cash flow models and other valuation techniques that are commonly used by market participants.
Impact on profit for the year
ended
Impact on members
balances
2025 2024 2025 2024
Change in fair value of hedge funds, equity linked funds & illiquid credit assets $'000 $'000 $'000 $'000
5% increase in fair value 8,995 7,944 8,995 7,944
5% decrease in fair value (8,995 ) (7,944 ) (8,995 ) (7,944 )
2.3 Credit risk
Credit risk arises from the failure of another party to perform its financial or contractual obligations to the syndicate in a timely
manner. The primary sources of credit risk for the syndicate are:
• reinsurers – whereby reinsurers may fail to pay valid claims against a reinsurance contract held by the syndicate;
• brokers and coverholders – whereby counterparties fail to pass on premiums or claims collected or paid on behalf of the syndicate;
• investments – whereby issuer default results in the syndicate losing all or part of the value of a financial instrument and
derivative financial instrument; and
• cash at bank and in hand.
Notes to the Syndicate annual accounts continued
34
Beazley | Syndicate 623 Annual report 2025 www.beazley.com
2 Risk management continued
The syndicate’s core business is to accept significant insurance risk and the appetite for other risks is low. This protects the
syndicate’s capital from erosion so that it can meet its insurance liabilities.
The managing agent limits exposure to a single counterparty or a group of counterparties and analyses the geographical locations
of exposures when assessing credit risk.
An approval system also exists for all new brokers, and broker performance is carefully monitored. Regular exception reports
highlight trading with non-approved brokers, and the managing agent’s credit control function frequently assesses the ageing and
collectability of debtor balances. Any large, aged items are prioritised and where collection is outsourced, incentives are in place
to support these priorities.
The Investment Committee has established comprehensive guidelines for the syndicate’s investment managers regarding the
type, duration and quality of investments acceptable to the syndicate. The performance of investment managers is regularly
reviewed to confirm adherence to these guidelines.
The managing agent has developed processes to formally examine all reinsurers before entering into new business
arrangements. New reinsurers are approved by the Reinsurance Security Committee, which also reviews arrangements with all
existing reinsurers at least annually. Vulnerable or slow-paying reinsurers are examined more frequently.
The following tables summarise the syndicate’s concentrations of credit risk for assets with credit risk. It shows amounts that
neither past due nor impaired.
| AAA | AA | A | BBB | Other | Not rated | Total | |
31 December 2025 | $'000 | $'000 | $'000 | $'000 | $'000 | $'000 | $'000 |
Investments | |||||||
Shares and other variable yield securities and units in unit trusts | | | | | | | |
Debt securities and other fixed income securities | | | | | | ||
| Participation in investment pools | | | | | | | |
| Loans and deposits with credit institutions | | | | | | | |
| Derivative assets | | | | | | | |
| Syndicate loans to central fund | | | | | | | |
| Other investments | | | | | | | |
| Deposits with ceding undertakings | | | | | | | |
Total investments | 405,264 | 177,879 | 450,043 | 89,930 | 98,119 | 182,260 | 1,403,495 |
| Reinsurers’ share of claims outstanding | | | | | | | |
Debtors arising out of direct insurance operations | | | | | | | |
Debtors arising out of reinsurance operations | | | | | | | |
| Cash at bank and in hand | | | | | | | |
| Other debtors and accrued interest | | | | | | | |
Total | | | | | |
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2 Risk management continued
| AAA | AA | A | BBB | Other | Not rated | Total | |
31 December 2024 | $'000 | $'000 | $'000 | $'000 | $'000 | $'000 | $'000 |
Investments | |||||||
Shares and other variable yield securities and units in unit trusts | | | | | | | |
Debt securities and other fixed income securities | | | | | | ||
| Participation in investment pools | | | | | | | |
| Loans and deposits with credit institutions | | | | | | | |
| Derivative assets | | | | | | | |
| Syndicate loans to central fund | | | | | | | |
| Other investments | | | | | | | |
| Deposits with ceding undertakings | | | | | | | |
| Total investments | 133,524 | 391,993 | 425,830 | 145,287 | 83,830 | 185,254 | 1,365,718 |
| Reinsurers’ share of claims outstanding | | | | | | | |
Debtors arising out of direct insurance operations | | | | | | | |
Debtors arising out of reinsurance operations | | | | | | | |
| Cash at bank and in hand | | | | | | | |
| Other debtors and accrued interest | | | | | | | |
| Total | | | | | |
Some amounts above were stated differently at year end 2024. The above table now only shows amounts that were nether past
due nor impaired.
Financial investments falling within the unrated category comprise hedge funds for which there is no readily available market
data to allow classification within the respective tiers. Additionally, some debtors are classified as unrated in accordance with
Lloyd’s guidelines.
The syndicate has insurance debtors and reinsurance assets that are past due but not impaired at the reporting date. An aged
analysis of these is presented below:
Neither past due
nor impaired
Past due but not
impaired
Gross value of
impaired assets
Impairment
allowance Total
31 December 2025 $'000 $'000 $'000 $'000 $'000
Investments
Shares and other variable yield securities
and units in unit trusts
Debt securities and other fixed income
securities
Participation in investment pools 13,234 — — — 13,234
Loans and deposits with credit institutions 6,556 — — — 6,556
Derivative assets 45 — — — 45
Syndicate loans to central fund — — — — —
Other investments 70,652 — — — 70,652
Deposits with ceding undertakings 912 — — — 912
Total Investments 1,403,495 — — — 1,403,495
Reinsurers’ share of claims outstanding 386,305 — 878 (878 ) 386,305
Debtors arising out of direct insurance
operations
Debtors arising out of reinsurance operations 113,752 7,115 3,401 (3,401 ) 120,867
Cash at bank and in hand 53,844 — — — 53,844
Other debtors and accrued interest 48,183 — — — 48,183
Total
Notes to the Syndicate annual accounts continued
36
Beazley | Syndicate 623 Annual report 2025 www.beazley.com
2 Risk management continued
Neither past due
nor impaired
Past due but not
impaired
Gross value of
impaired assets
Impairment
allowance Total
31 December 2024
$'000 $'000 $'000 $'000 $'000
Investments
Shares and other variable yield securities
and units in unit trusts
Debt securities and other fixed income
securities
Participation in investment pools 13,349 — — — 13,349
Loans and deposits with credit institutions — — — — —
Derivative assets 1,955 — — — 1,955
Syndicate loans to central fund 5,864 — — — 5,864
Other investments 67,440 — — — 67,440
Deposits with ceding undertakings 850 — — — 850
Total investments 1,365,718 — — — 1,365,718
Reinsurers’ share of claims outstanding 374,477 — 871 (871 ) 374,477
Debtors arising out of direct insurance
operations
Debtors arising out of reinsurance operations 112,014 12,164 3,396 (3,396 ) 124,178
Cash at bank and in hand 40,887 — — — 40,887
Other debtors and accrued interest* 52,818 — — — 52,818
Total
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:
1 Jan
New
impairment
charges
added in
year
Changes in
impairment
charges
Released to
profit and
loss account
Foreign
exchange Others 31 Dec
31 December 2025 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Debtors arising out of reinsurance operations 3,396 9 — — (4 ) — 3,401
Reinsurers’ share of outstanding claims 871 8 — — (1 ) — 878
Total
1 Jan
New
impairment
charges
added in
year
Changes in
impairment
charges
Released to
profit and
loss account
Foreign
exchange Others 31 Dec
31 December 2024 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Debtors arising out of reinsurance operations 3,286 79 — — 31 — 3,396
Reinsurers’ share of outstanding claims 905 — — — (34 ) — 871
Total
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37
2 Risk management continued
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 assets
0 - 3 months past
due
3 - 6 months past
due
6 - 12 months
past due
Greater than 1
year past due Total
31 December 2025 $'000 $'000 $'000 $'000 $'000
Debtors arising out of direct insurance
operations
Debtors arising out of reinsurance operations — 645 910 5,560 7,115
Total
Past due but not impaired assets | 0 - 3 months past due | 3 - 6 months past due | 6 - 12 months past due | Greater than 1 year past due | Total |
| 31 December 2024 | $'000 | $'000 | $'000 | $'000 | $'000 |
Debtors arising out of direct insurance operations | | | | | |
| Debtors arising out of reinsurance operations | | | | | |
Total | | | | | |
2.4 Liquidity risk
Liquidity risk arises where cash may not be available to pay obligations when due at a reasonable cost. The syndicate is exposed to
daily calls on its available cash resources, principally from claims arising from its insurance business. In the majority of the cases,
these claims are settled from the premiums received.
The managing agent’s approach is to manage its liquidity position so that it can reasonably survive a significant individual or
market loss event. This means that the syndicate maintains sufficient liquid assets, or assets that can be translated into liquid
assets at short notice and without any significant capital loss, to meet expected cash flow requirements. These liquid funds are
regularly monitored using cash flow forecasting to ensure that surplus funds are invested to achieve a higher rate of return.
The maturity analysis presented in the table below shows the remaining contractual maturities for the syndicate’s insurance
contracts and financial instrument liabilities. 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.
Undiscounted net cash flows
No maturity
stated 0-1 yrs 1-3 yrs 3-5 yrs >5yrs Total
31 December 2025
$'000 $'000 $'000 $'000 $'000 $'000
Claims outstanding — 430,499 520,523 291,754 264,114 1,506,890
Derivative liabilities — 508 — — — 508
Creditors 49,178 221,290 — — — 270,468
Other liabilities — 20,406 — — — 20,406
Total
Undiscounted net cash flows
No maturity
stated 0-1 yrs 1-3 yrs 3-5 yrs >5yrs Total
31 December 2024 $'000 $'000 $'000 $'000 $'000 $'000
Claims outstanding — 418,936 505,853 269,393 229,714 1,423,896
Derivative liabilities — 3,314 — — — 3,314
Creditors 19,224 289,096 — — — 308,320
Other liabilities — 17,743 — — — 17,743
Total
Notes to the Syndicate annual accounts continued
38
Beazley | Syndicate 623 Annual report 2025 www.beazley.com
2 Risk management continued
2.5 Capital management
Capital framework at Lloyd’s
The Society of Lloyd’s is a regulated undertaking and subject to the supervision of the Prudential Regulation Authority under the
Financial Services and Markets Act 2000.
Within this supervisory framework, Lloyd’s applies capital requirements at member level and centrally to ensure that Lloyd’s
complies with Solvency II, and beyond that to meet its own financial strength, license and ratings objectives. Although, as described
below, the Lloyd’s capital setting processes use a capital requirement set at syndicate level as a starting point, the requirement
to meet Solvency II and Lloyd’s capital requirements apply at an overall and member level respectively, not at a syndicate level.
Accordingly the capital requirement in respect of Syndicate 623 is not disclosed in these financial statements.
Lloyd’s capital setting process
In order to meet Lloyd’s requirements, each syndicate is required to calculate its Solvency Capital Requirement (SCR) for the
prospective underwriting year. This amount must be sufficient to cover a 1 in 200 year loss, reflecting uncertainty in the
ultimate run-off of underwriting liabilities (SCR to ultimate). The syndicate must also calculate its SCR at the same confidence
level but reflecting uncertainty over a one year time horizon (one year SCR) for Lloyd’s to use in meeting Solvency II requirements.
The SCRs of each syndicate are subject to review by Lloyd’s and approval by the Lloyd’s Capital and Planning Group.
A syndicate comprises one or more underwriting members of Lloyd’s. Each member is liable for its own share of underwriting
liabilities on the syndicate(s) on which it participates but not other members’ shares. Accordingly, the capital requirement that
Lloyd’s sets for each member operates on a similar basis. Each member’s SCR shall thus be determined by the sum of the
member’s share of the syndicate SCR ‘to ultimate’. Where a member participates on more than one syndicate, a credit for
diversification is provided to reflect the spread of risk, but consistent with determining an SCR which reflects the capital
requirement to cover a 1 in 200 year loss ‘to ultimate’ for that member. Over and above this, Lloyd’s applies a capital uplift to
the member’s capital requirement, known as the Economic Capital Assessment (‘ECA’). The purpose of this uplift, which is a
Lloyd’s not a solvency II requirement, is to meet Lloyd’s financial strength, license and ratings objectives. The capital uplift
applied for 2025 was 35% (2024: 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), held within and managed within a syndicate (funds in syndicate) and/or as the member’s share of the Solvency II
members’ balances on each syndicate on which it participates.
www.beazley.com Beazley | Syndicate 623 Annual report 2025
39
3 Analysis of underwriting result
Underwriting result is the balance on the technical result - general business, less the allocated investment return transferred
from the non-technical account.
Gross premiums written | Gross premiums earned | Gross claims incurred | Gross operating expenses | Reinsurance balance | Underwriting result | |
| 2025 | $'000 | $'000 | $'000 | $'000 | $'000 | $'000 |
Direct Insurance | ||||||
Marine, aviation and transport | | | ( | ( | | |
Fire and other damage to property | | | ( | ( | ( | |
Third party liability | | | ( | ( | ( | |
Credit and suretyship | | | ( | ( | ( | |
Total direct insurance | | | ( | ( | ( | |
Reinsurance acceptances | | | ( | ( | ( | |
Total | | | ( | ( | ( | |
The below is an additional disclosure for Lloyd’s reporting purposes and is included to facilitate the classification of the above
segments into the Lloyd’s aggregate classes of business:
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:
Specialities
Energy
Third party liability of which is:
Energy
17,496 17,867 (1,155) (7,467) (1,874) 7,371
Gross premiums
written
Gross premiums
earned
Gross claims
incurred
Gross operating
expenses*
Reinsurance
balance
Underwriting
result
2024 $'000 $'000 $'000 $'000 $'000 $'000
Direct Insurance
Marine aviation and transport 128,004 105,154 (68,994 ) (49,080 ) 10,698 (2,222 )
Fire and other damage to property 237,783 233,667 (78,226 ) (83,409 ) (32,962 ) 39,070
Third party liability 398,747 428,932 (196,474 ) (176,735 ) (27,289 ) 28,434
Credit and suretyship 41,388 34,272 (8,423 ) (15,873 ) (3,310 ) 6,666
Total direct insurance
Reinsurance acceptances
Total
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 17,584 14,366 1,305 (6,630 ) (5,806 ) 3,235
Energy — — — — — —
Third party liability of which is:
Energy — — — — — —
17,584 14,366 1,305 (6,630) (5,806) 3,235
*Certain balances which were previously classified within gross operating expenses have now been classified within reinsurance
balance. The prior period comparative has been restated accordingly.
Notes to the Syndicate annual accounts continued
40
Beazley | Syndicate 623 Annual report 2025 www.beazley.com
3 Analysis of underwriting result continued
The gross premiums written for direct insurance by location (where the contracts were concluded) is presented in the table below:
| 2025 | 2024 | |
| $'000 | $'000 | |
| United Kingdom | | |
Total gross premiums written | | |
4 Net operating expenses
| 2025 | 2024* | |
| $'000 | $'000 | |
Acquisition costs | | |
| Change in deferred acquisition costs | ( | ( |
| Administrative expenses | | |
| Members’ standard personal expenses | | |
| Reinsurance commission and profit participation | ( | ( |
Net operating expenses | |
*Certain balances which were previously classified within Administrative expenses have now been classified within Member's
standard personal expenses. The prior period comparative has been restated accordingly.
Included within administrative expenses are profit commissions payable to the managing agent of $25,230k (2024: $27,703k).
Total commissions for direct insurance business for the year amounted to:
| 2025 | 2024 | |
| $'000 | $'000 | |
Total commission for direct insurance business | | |
Administrative expenses include:
| 2025 | 2024 | |
| $'000 | $'000 | |
| Fees payable to the syndicate’s auditor for the audit of these syndicate annual accounts | | |
Fees payable to the syndicate's auditor and its associates in respect of other services pursuant to legislation' to align with Lloyds | | |
Total | 815 | 1,171 |
Fees payable to the syndicate's auditor in relation to other services pursuant to legislation primarily relate to the review and
audit of syndicate regulatory returns along with the statement of actuarial opinion.
5 Key management personnel compensation
The Directors of BFL received the following aggregate remuneration charged to Syndicate 623 and included within net operating
expenses:
| 2025 | 2024 | |
| $'000 | $'000 | |
Directors' emoluments | | |
The active underwriter received the following aggregate remuneration charged to Syndicate 623:
| 2025 | 2024 | |
| $'000 | $'000 | |
| Emoluments | | |
www.beazley.com Beazley | Syndicate 623 Annual report 2025
41
6 Staff numbers and costs
The syndicate has no employees. All staff are employed by Beazley Management Limited ('BML'), a related company to the
managing agent, both of which operate within the Beazley Group. The average number of persons employed by BML analysed by
category was as follows:
Number of employees | ||
| 2025 | 2024 | |
| Administration and finance | | |
| Underwriting | | |
| Claims | | |
| Investments | | |
Total | | |
The following amounts were recharged by BML to the syndicate in respect of payroll costs:
| 2025 | 2024 | |
| $'000 | $'000 | |
| Wages and salaries | | |
| Social security | | |
| Other pension costs | | |
| Other | | |
Total | | |
7 Investment return
| 2025 | 2024 | |
| $'000 | $'000 | |
Interest and similar income | ||
From financial assets designated at fair value through profit or loss | ||
| Interest and similar income | | |
From financial assets classified at amortised cost | ||
| Interest on cash at bank | | |
Other income from investments | ||
From financial assets designated at fair value through profit or loss | ||
| Gains on the realisation of investments | | |
| Losses on the realisation of investments | ( | ( |
| Unrealised gains on investments | | |
| Unrealised losses on the investments | ( | ( |
| Investment management expenses | ( | ( |
Total investment return | | |
| Transferred to the technical account from the non-technical account | | |
8 Distribution and open years of account
A distribution of $158,032 K to members will be proposed in relation to the closing year of account 2023 (2024: distribution of
$106,544 K for year of account 2022).
Notes to the Syndicate annual accounts continued
42
Beazley | Syndicate 623 Annual report 2025 www.beazley.com
9 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 | | | | |
Participation in investment pools | | | | |
Loans and deposits with credit institutions | ||||
Derivative assets | | | | |
Syndicate loans to central fund | | | | |
Other investments | | | | |
| Total financial investments | | | | |
Included in the carrying values above are listed investments as follows:
| 2025 | 2024 | |
| $'000 | $'000 | |
| Listed investments | | |
The table below presents an analysis of financial investments by their measurement classification:
| 2025 | 2024 | |
| $'000 | $'000 | |
| Financial assets measured at fair value through profit or loss | | |
| Total financial investments | | |
A breakdown of derivative financial instruments is disclosed in Note 10 on page 45.
Valuation hierarchy
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair
value hierarchy described as follows, based on the lowest level input that is significant to the fair value measurement as a
whole. If the inputs used to measure the fair value of an asset or a liability could be categorised in different levels of the fair
value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the
lowest level input that is significant to the entire measurement.
Level 1 – Valuations based on quoted prices in active markets for identical instruments. An active market is a market in which
transactions for the instrument occur with sufficient frequency and volume on an ongoing basis such that quoted prices reflect
prices at which an orderly transaction would take place between market participants at the measurement date.
Level 2 – Valuations based on quoted prices in markets that are not active, or based on pricing models for which significant inputs
can be corroborated by observable market data, directly or indirectly (e.g. interest rates, exchange rates). Level 2 inputs include:
• Quoted prices similar assets and liabilities in active markets;
• Quoted prices for identical or similar assets and liabilities in markets that are not active, the prices are not current, or price
quotations vary substantially either over time or among market makers, or in which little information is released publicly;
• Inputs other than quoted prices that are observable for the asset or liability (for example, interest rates and yield curves
observable at commonly quoted intervals, implied volatilities and credit spreads); and
• Market corroborated inputs. Included within level 2 are government bonds and treasury bills, equity funds and corporate
bonds which are not actively traded, hedge funds and senior secured loans.
Level 3 – Valuations based on inputs that are unobservable or for which there is limited market activity against which to measure
fair value. The availability of financial data can vary for different financial assets and is affected by a wide variety of factors,
including the type of financial instrument, whether it is new and not yet established in the marketplace, and other characteristics
specific to each transaction. To the extent that valuation is based on models or inputs that are unobservable in the market, the
determination of fair value requires more judgement. Accordingly the degree of judgement exercised by management in determining
fair value is greatest for instruments classified in level 3. The managing agent uses prices and inputs that are current as of the
measurement date for valuation of these instruments.
www.beazley.com Beazley | Syndicate 623 Annual report 2025
43
9 Financial investments continued
Valuation approach
The valuation approach for fair value assets and liabilities classified as level 2 is as follows:
(a) For the Syndicate’s level 2 government-issued bonds and corporate bonds included within 'Debt securities and other fixed
income investments', prices are derived from Bloomberg. On a monthly basis, these are validated against both internal sources
and prices provided by our administrator.
(b) For the Syndicate’s level 2 collateralised loan obligations included within 'Debt securities and other fixed income
investments', our fund administrator provides daily pricing derived from a market-accepted theoretical model using data sourced
from Bloomberg/Reuters as inputs. On a monthly basis, prices from our administrator are validated against those provided by
our custodians. These are also checked internally for consistency.
(c) For our hedge funds which are included within 'Shares and other variable yield securities and units in unit trusts', the pricing
and valuation of each fund is undertaken by administrators in accordance with each underlying fund’s valuation policy. Individual
fund prices are communicated by the administrators to all investors via the monthly investor statements. The fair value of the
hedge fund portfolios are calculated by reference to the underlying net asset values of each of the individual funds.
The table below shows the fair values of financial instruments at 31 December 2025 and 31 December 2024, including their levels
in the fair value hierarchy:
Level 1 Level 2 Level 3
Assets held at
amortised
cost Total
2025 $'000 $'000 $'000 $'000
$'000
Shares and other variable yield securities and units in unit
trusts
Debt securities and other fixed income securities 497,227 536,856 — — 1,034,083
Participation in investment pools 13,234 — — — 13,234
Loans and deposits with credit institutions 6,556 — — — 6,556
Derivative assets 45 — — — 45
Syndicate loans to central fund — — — — —
Other investments 70,652 — — — 70,652
Total financial investments
Derivative financial liabilities (508 ) — — — (508 )
Total
Notes to the Syndicate annual accounts continued
44
Beazley | Syndicate 623 Annual report 2025 www.beazley.com
9 Financial investments continued
Level 1 Level 2 Level 3
Assets held at
amortised
cost
Total
2024 $'000 $'000 $'000
$'000 $'000
Shares and other variable yield securities and units in unit
trusts
Debt securities and other fixed income securities 533,713 489,580 10,250 — 1,033,543
Participation in investment pools 13,349 — — — 13,349
Derivative assets 1,955 — — — 1,955
Syndicate loans to central fund — — 5,864 — 5,864
Other investments 67,440 — — — 67,440
Total financial investments 744,597 604,073 16,198 — 1,364,868
Derivative financial liabilities (3,314 ) — — — (3,314 )
Total 741,283 604,073 16,198 — 1,361,554
Additional information is obtained from fund managers relating to the underlying assets within individual hedge funds.
The syndicate identified that 79% (2024: 80%) of these underlying assets were level 1, with the remainder classified as level 2.
If the inputs used to measure the fair value of an asset or a liability could be categorised in different levels of fair value
hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the
lowest level input that is significant to the entire measurement. This enabled us to categorise hedge funds as level 2.
10 Derivative financial instruments
In 2025 and 2024, the syndicate entered into over-the-counter and exchange traded derivative contracts in order to
economically hedge the foreign currency exposure resulting from transactions and balances held in currencies that are different
to the functional currency of the syndicate. The syndicate had the right and intention to settle each contract on a net basis.
| 2025 | 2024 | |||
| Notional | Notional | |||
| contract | contract | |||
| amount | Fair value | amount | Fair value | |
Derivative financial instruments | $'000 | $'000 | $'000 | $'000 |
| Foreign exchange forward contract - assets | | | | |
| Foreign exchange forward contract - liabilities | | | | |
11 Debtors arising out of direct insurance operations
| 2025 | 2024 | |
| $'000 | $'000 | |
| Due within one year | | |
| Due after one year | | |
Total | | |
12 Debtors arising out of reinsurance operations
| 2025 | 2024 | |
| $'000 | $'000 | |
Due within one year | | |
Due after one year | | |
Total | | |
www.beazley.com Beazley | Syndicate 623 Annual report 2025
45
13 Other debtors
| 2025 | 2024 | |
| $'000 | $'000 | |
Inter-syndicate balances | ||
| Amounts due from Syndicate 4321 | 395 | 263 |
| Amounts due from Syndicate 5623 | 6,536 | 4,270 |
| Total inter-syndicate balances | | |
| Other | | |
| Total | | |
The balances listed above are due within one year.
14 Deferred acquisition costs
| 2025 | 2024 | |||||
| Gross | Reinsurance | Net | Gross | Reinsurance | Net | |
| $'000 | $'000 | $'000 | $'000 | $'000 | $'000 | |
Balance at 1 January | ( | | | ( | | |
Incurred deferred acquisition costs | ( | | | ( | | |
Amortised deferred acquisition costs | ( | ( | ( | | ( | |
Foreign exchange movements | | ( | | ( | ||
Balance at 31 December | ( | | | ( | |
15 Technical Provisions
The table below shows the 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
Claims outstanding
$'000
$'000
$'000
$'000
$'000
$'000
Balance at 1 January 1,423,896 (374,477 ) 1,049,419 1,303,922 (365,017 ) 938,905
Claims paid during the year (461,355 ) 98,688 (362,667 ) (368,591 ) 68,418 (300,173 )
Expected cost of current year claims 519,929 (97,653 ) 422,276 539,779 (100,771 ) 439,008
Change in estimates of prior year
provisions
Foreign exchange movements 20,558 (3,599 ) 16,959 (2,361 ) 445 (1,916 )
Balance at 31 December
2025 2024
Gross
Provisions
Reinsurance
assets Net
Gross
Provisions
Reinsurance
assets Net
Unearned premiums
$'000 $'000 $'000 $'000 $'000 $'000
Balance at 1 January 542,731 (87,496 ) 455,235 510,038 (82,892 ) 427,146
Premium written during the year 1,033,928 (153,931 ) 879,997 1,048,713 (175,161 ) 873,552
Premiums earned during the year (1,042,358 ) 167,147 (875,211 ) (1,015,413 ) 170,563 (844,850 )
Foreign exchange movements 7,670 (686 ) 6,984 (607 ) (6 ) (613 )
Balance at 31 December
Notes to the Syndicate annual accounts continued
46
Beazley | Syndicate 623 Annual report 2025 www.beazley.com
15 Technical Provisions continued
The following tables illustrate the development of the estimates of earned ultimate cumulative claims incurred, including claims
notified and IBNR, for each successive underwriting year, illustrating how amounts estimated have changed from the first
estimates made. The below tables were previously shown on a fully earned basis. This is the first year presenting these tables
on a earned basis. As these tables are on an underwriting year basis, there is an apparent large increase from amounts
reported for the end of the underwriting year to one year later as a large proportion of premiums are earned in the year of
account’s second year of development.
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 | | | | | | | | | | | |
Provision in respect of prior years | | ||||||||||
Less gross claims paid | ( | ( | ( | ( | ( | ( | ( | ( | ( | ( | ( |
Gross claims reserves | | | | | | | | | | | |
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 | | | | | | | | | | | |
Provision in respect of prior years | | ||||||||||
Less net claims paid | ( | ( | ( | ( | ( | ( | ( | ( | ( | ( | ( |
Net claims reserves | | | | | | | | | | | |
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16 Creditors arising out of direct insurance operations
| 2025 | 2024 | |
| $'000 | $'000 | |
Due within one year | | |
Due after one year | | |
| Total | | |
17 Creditors arising out of reinsurance operations
| 2025 | 2024 | |
| $'000 | $'000 | |
Due within one year | | |
Due after one year | | |
| Total | | |
18 Other creditors
| 2025 | 2024 | |
| $'000 | $'000 | |
Inter-syndicate balances | ||
| Amounts due to Syndicate 2623 | 36,985 | 1,973 |
| Amounts due to Syndicate 3623 | 4,933 | 4,314 |
| Amounts due to Syndicate 6107 | 7,259 | 12,937 |
| Total inter-syndicate balances | | |
| Profit commissions payable | | |
| Other related party balances (non-syndicate) | | |
| Derivative liabilities | | |
| Other liabilities | | |
| Total | | |
The above other creditors balances are payable within one year with the exception of profit commissions which are payable
once the related YoA closes. Profit commissions of $29,613k (2024: $45,203K) are payable within one year, with the
remaining balance payable after one year.
19 Cash and cash equivalents
| 2025 | 2024 | |
| $'000 | $'000 | |
| Cash at bank and in hand* | | |
| Short term debt instruments presented within financial investments | | |
Total cash and cash equivalents | | |
*Included within Cash at bank and in hand are money market funds of $35,215k ( 2024: nil).
Cash at bank and in hand includes $5,485k (2024:$18,803k) held in Lloyd's Singapore trust accounts which is only available
for use by the syndicate to meet local claim and expense obligations.
Short term deposits disclosed in this table are included within financial investments. Included within cash and cash equivalents
are the following amounts which are not available for use by the syndicate as they are held for regulatory purposes.
| 2025 | 2024 | |
| $'000 | $'000 | |
Short term debt instruments presented within other financial investments | | |
Total cash and cash equivalents not available for use by the syndicate | | |
Notes to the Syndicate annual accounts continued
48
Beazley | Syndicate 623 Annual report 2025 www.beazley.com
20 Analysis of net debt
All amounts in $'000
At 1 January
2025 Cash flows Acquired
Fair value and
exchange
movements
Non-cash
changes
At 31
December
2025
Cash and cash equivalents 54,236 18,618 — 780 — 73,634
Derivative financial liabilities (3,314 ) 3,314 — (508 ) — (508 )
Total 50,922 21,932 — 272 — 73,126
All amounts in $'000
At 1 January
2024 Cash flows Acquired
Fair value and
exchange
movements
Non-cash
changes
At 31
December
2024
Cash and cash equivalents 14,900 39,613 — (277 ) — 54,236
Derivative financial liabilities (1,078 ) 1,078 — (3,314 ) — (3,314 )
Total 13,822 40,691 — (3,591 ) — 50,922
21 Related parties transactions
Beazley Furlonge Limited ('BFL'), the managing agent of Syndicate 623, is a wholly-owned subsidiary of Beazley plc. The
Directors of BFL who have participated in Syndicate 623 indirectly through Beazley Staff Underwriting Limited are disclosed in
the managing agent’s report on page 16.
Certain Directors of BFL have shareholdings in Beazley plc which provides capacity for Syndicates 2623, 3622, 3623, 4321
and 5623. Syndicate 623 writes in parallel with Syndicate 2623.
Beazley plc has the following service companies ('managing general agents'), which underwrite on behalf of Syndicates 623 and
2623 (the ‘syndicates’) and write business either directly for the syndicates or via Lloyd’s Brussels:
• Beazley Solutions International Limited – (Europe);
• Beazley Pte Limited – (Singapore); and
• Beazley Labuan Limited – (Malaysia).
The syndicates are charged commissions for the type of business underwritten by these companies. The commission is based
on the costs incurred by these service companies in generating and servicing the business on behalf of the syndicates. As
Beazley plc owns 100% of the share capital, it could receive profits from these entities in the future from the business
underwritten by the names on Syndicate 623.
The syndicate is charged fees from BFL in respect of management services provided. Both Beazley Management Limited and
BFL, the managing agent of the syndicate, are ultimately controlled by Beazley plc.
From 2010 to 2023, Syndicate 623, alongside Syndicate 2623, ceded part of its property treaty book to Syndicate 6107 at
Lloyd's, and since 2017 till present has also ceded part of its cyber business to Syndicate 6107. Syndicate 6107 is managed
by BFL and commissions are received by the syndicate in respect of these transactions.
The intercompany positions with other syndicates managed by BFL at 31 December 2025 are disclosed above in note 13 and
note 18.
The syndicate, alongside Syndicate 2623, has written intra-group quota-share reinsurance contract with BIdac which incepted 1
January 2024. The contract reinsures business from Syndicate 623 and 2623 to BIdac.
The total amount due to BIdac at 2025 year end was $2,809k (2024: $3,420k). Outward reinsurance premiums of $28,625k
(2024: $26,066k) and reinsurers share of claims paid of $10,313k (2024: $1,628k) were recognised in the year.
Beazley has a 25% equity interest in Falcon Money Management Holdings Limited ('Falcon'), an investment management
company. Syndicate 623 invests in certain funds managed by Falcon, as part of which management fees are deducted.
Profit related remuneration for Syndicate 623’s underwriting staff is charged to the syndicate. At the balance sheet date, the
syndicate has amounts due to the managing agent of $36,562k (2024: $21,709k). In addition to this amount, the syndicate
has a profit commission payable to the managing agent of $48,368k (2024: $68,341k). The managing agent recharged
expenses and fees of $144,717k (2024: $159,252k) to the syndicate in the current year.
www.beazley.com Beazley | Syndicate 623 Annual report 2025
49
21 Related parties transactions continued
BFL as the managing agent of the syndicate is responsible for settling intercompany balances with other managed syndicates
and net amounts due to/from other related entities.
22 Subsequent events
The 2023 YoA has closed with a profit of $158,032k. It is the intention that these funds will be distributed to the members
reserve funds in May 2026.
23 Foreign exchange rates
The syndicate used the following exchange rates to translate foreign currency assets, liabilities, income and expenses into US
dollars, being the syndicate’s presentational currency:
| 2025 | 2024 | |||||
| Start of period | End of period | Average rate | Start of period | End of period | Average rate | |
| Sterling | | | | | | |
| Euro | | | | | | |
| US dollar | | | | | | |
| Canadian dollar | | | | | | |
| Australian dollar | | | | | | |
24 Funds at Lloyd's
Every member is required to hold capital at Lloyd’s which is held in trust and known as Funds at Lloyd’s (‘FAL’). These funds are
intended primarily to cover circumstances where syndicate assets prove insufficient to meet participating members’
underwriting liabilities. The level of FAL that Lloyd’s requires a member to maintain is determined by Lloyd’s based on Prudential
Regulatory Authority requirements and resource criteria. The determination of FAL has regard to a number of factors including
the nature and amount of risk to be underwritten by the member and the assessment of the reserving risk in respect of
business that has been underwritten. Since FAL is not under the management of the managing agent, no amount has been
shown in these Financial Statements by way of such capital resources. However, the managing agent is able to make a call on
the Member’s FAL to meet liquidity requirements or to settle losses.
Notes to the Syndicate annual accounts continued
50
Beazley | Syndicate 623 Annual report 2025 www.beazley.com
2023 underwriting
year accounts for
Syndicate 623
52
Managing agent’s report
53
Statement of managing agent’s responsibilities
54
Independent auditor's report to the members of
Syndicate 623 – 2023 closed year of account
57
Profit or loss account
58
Statement of changes in members balances
59
Balance sheet
60
Cash flow statement
61
Notes to the syndicate underwriting year
accounts
67
Seven year summary of closed year results at
31 December 2025
68
Managing agent's corporate information
www.beazley.com Beazley | Syndicate 623 Annual report 2025
51
Managing agent’s report
The syndicate underwriting year accounts have been prepared under the Insurance Accounts Directive (Lloyd’s Syndicate and
Aggregate Accounts) Regulations 2008 (the ‘Lloyd’s Regulations’) and in accordance with the Syndicate Accounting Byelaw
(No.9 of 2005), including Financial Reporting Standard 102 (FRS 102) and 103 Insurance Contracts (FRS 103) in accordance
with the provisions of Schedule 3 of the Large and Medium-size Companies and Groups (Accounts and Reports) Regulations
relating to insurance companies.
Members participate on a syndicate by reference to a year of account ('YoA') and each syndicate YoA is a separate annual
venture. These accounts relate to the 2023 YoA which has been closed by reinsurance to close at 31 December 2025;
consequently the balance sheet represents the assets and liabilities of the 2023 YoA and the profit or loss account reflects the
transactions for that YoA during the 36 months period until closure. The 2023 YoA closed with a profit of $158.0m which includes a
reinsurance to close deficit from the 2022 YoA of $14.1m (note 6). The profit on the 2023 YoA represents a return on capacity of
14.4% and includes the impact of personal members expenses of $4.9m. Return on capacity excluding these expenses would
be 14.8%.
Principal activity
The principal activity of Syndicate 623 is the transaction of a range of specialised insurance business at Lloyd’s, including the
underwriting of professional indemnity, cyber liability, property, marine, reinsurance, accident and life, and political risks and
contingency business.
Directors
A list of Directors of the managing agent who held office during the current year can be found on page 68 of the syndicate
annual accounts.
Disclosure of information to the auditor
The Directors of the managing agent who held office at the date of approval of this managing agent’s report confirm that, so far
as they are each aware, there is no relevant audit information of which the syndicate’s auditors are unaware; and each Director
has taken all the steps that they ought to have taken as a Director to make themselves aware of any relevant audit information
and to establish that the syndicate’s auditors are aware of that information.
On behalf of the Board
C C J Wong
Director
19 February 2026
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Beazley | Syndicate 623 Annual report 2025 www.beazley.com
Statement of managing agent’s responsibilities
The Directors of the managing agent are responsible for preparing the syndicate underwriting year accounts in accordance with
the Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 and the Lloyd’s Syndicate
Accounting Byelaw. They have elected to prepare the accounts in accordance with FRS 102 The Financial Reporting Standard
applicable in the UK and Republic of Ireland.
Under Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008, the Directors of the
managing agent must not approve the underwriting year accounts unless they are satisfied that they give a true and fair view of
the result of the underwriting year at closure. In preparing these accounts, the Directors of the managing agent are required to:
• select suitable accounting policies and then apply them consistently and where there are items which affect more than one
YoA, ensure a treatment which is equitable between the members of the syndicate affected is used;
• make judgements and estimates that are reasonable and prudent;
• state whether applicable Accounting Standards have been followed, subject to any material departures disclosed and
explained in the accounts;
• 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. As explained in note 1 the Directors of the managing agent have not prepared the underwriting year accounts on a going
concern basis.
The Directors of the managing agent are responsible for keeping adequate and proper 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 underwriting year 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 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 company
and to prevent and detect fraud and other irregularities.
On behalf of the Board
C C J Wong
Director
19 February 2026
www.beazley.com Beazley | Syndicate 623 Annual report 2025
53
Independent auditor's report to the members of
Syndicate 623
2023 closed year of account
Opinion
We have audited the syndicate underwriting year accounts for the 2023 year of account of syndicate 623 (‘the syndicate’) for
the three years ended 31 December 2025 which comprise the Profit or loss account, the Balance sheet, the Statement of
Changes In Members’ Balances, the Statement of Cash Flows and the related notes 1 to 16, including a summary of significant
accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United
Kingdom Accounting Standards including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of
Ireland” and FRS 103 “Insurance Contracts” (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the syndicate underwriting year accounts:
• give a true and fair view of the profit for the 2023 closed year of account;
• 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 have been properly prepared in accordance with the Lloyd’s Syndicate Accounting
Byelaw (no. 8 of 2005).
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our
responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the syndicate
underwriting year 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 underwriting year 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.
Emphasis of matter – closure of the 2023 year of account
We draw attention to the Note 1 which explains that the 2023 year of account of syndicate 623 has closed and all assets and
liabilities transferred to the 2024 year of account by reinsurance to close at 31 December 2025.
As a result, the syndicate underwriting year accounts for the 2023 year of account of syndicate 623 have been prepared under
basis other than going concern.
Our opinion is not modified in respect of this matter.
Other information
The other information comprises the information included in the Underwriting Year report and accounts, other than the
syndicate underwriting year accounts and our auditor’s report thereon. The managing agent is responsible for the other
information contained within the Underwriting Year report and accounts.
Our opinion on the syndicate underwriting year 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 underwriting year 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 underwriting year accounts
themselves. If, based on the work we have performed, we conclude that there is a material misstatement of the other
information, we are required to report that fact.
We have nothing to report in this regard.
54
Beazley | Syndicate 623 Annual report 2025 www.beazley.com
Independent auditor's report to the members of Syndicate 623
2023 closed year of account continued
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where The Lloyd’s Syndicate Accounting Byelaw (no. 8 of 2005)
requires us to report to you, if in our opinion:
• the managing agent in respect of the syndicate has not kept adequate accounting records; or
• the syndicate underwriting year accounts are not in agreement with the accounting records.
Responsibilities of the managing agent
As explained more fully in the Statement of Managing Agent’s Responsibilities set out on page 53, the managing agent is
responsible for the preparation of the syndicate underwriting year accounts in accordance with The Insurance Accounts Directive
(Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 and The Lloyd’s Syndicate Accounting Byelaw (no. 8 of 2005)
and for being satisfied that they give a true and fair view, and for such internal control as the managing agent determines is
necessary to enable the preparation of the syndicate underwriting year accounts that are free from material misstatement,
whether due to fraud or error.
In preparing the syndicate underwriting year accounts, the managing agent is responsible for assessing the syndicate’s ability
to realise its assets and discharge its liabilities in the normal course of business, disclosing, as applicable, any matters that
impact its ability to do so.
Auditor’s responsibilities for the audit of the syndicate underwriting year accounts
Our objectives are to obtain reasonable assurance about whether the syndicate underwriting year 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 underwriting year accounts.
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect irregularities, including fraud. The risk of not detecting a material misstatement due
to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for
example, forgery or intentional misrepresentations, or through collusion.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. However, the
primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the managing
agent and management.
Our approach was as follows:
• We obtained a general understanding of the legal and regulatory frameworks that are applicable to the syndicate and
determined that the most significant are direct laws and regulations related to elements of Lloyd’s Byelaws and Regulations,
and the financial reporting framework (UKGAAP) and requirements referred to by Lloyd’s in the Instructions. Our
considerations of other laws and regulations that may have a material effect on the syndicate underwriting year accounts
included permissions and supervisory requirements of Lloyd’s of London, the Prudential Regulation Authority (‘PRA’) and the
Financial Conduct Authority (‘FCA’).
• We obtained a general understanding of how the syndicate is complying with those frameworks by making enquiries of
management, internal audit, and those responsible for legal and compliance matters of the syndicate. In assessing the
effectiveness of the control environment, we also reviewed significant correspondence between the syndicate, Lloyd’s of
London and other UK regulatory bodies; reviewed minutes of the Board and Risk Committee of the managing agent; and
gained an understanding of the managing agent’s approach to governance.
• For direct laws and regulations, we considered the extent of compliance with those laws and regulations as part of our
procedures on the related syndicate underwriting year accounts’ items.
• For both direct and other laws and regulations, our procedures involved: making enquiries of the directors of the managing
agent and senior management for their awareness of any non-compliance of laws or regulations, enquiring about the policies
that have been established to prevent non-compliance with laws and regulations by officers and employees, enquiring about
the managing agent’s methods of enforcing and monitoring compliance with such policies, and inspecting significant
correspondence with Lloyd’s, the FCA and the PRA.
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55
Independent auditor's report to the members of Syndicate 623
2023 closed year of account continued
• The syndicate operates in the insurance industry which is a highly regulated environment. As such the Senior Statutory
Auditor considered the experience and expertise of the engagement team to ensure that the team had the appropriate
competence and capabilities, which included the use of specialists where appropriate.
• We assessed the susceptibility of the syndicate’s underwriting year accounts to material misstatement, including how fraud
might occur by considering the controls that the managing agent has established to address risks identified by the managing
agent, 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, we performed audit procedures to address each identified fraud risk including,
– Reviewing accounting estimates for evidence of management bias. Supported by our Actuaries we assessed if there were
any indicators of management bias in the valuation of insurance liabilities and the recognition of estimated premium
income.
– Evaluating the business rationale for significant and/or unusual transactions.
• These procedures included testing manual journals and were designed to provide reasonable assurance that the syndicate
underwriting year accounts were free from fraud or error.
A further description of our responsibilities for the audit of the financial statements 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.
Use of our report
This report is made solely to the syndicate’s members, as a body, in accordance with The Lloyd’s Syndicate Accounting Byelaw
(no. 8 of 2005) and 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.
Niamh Byrne (Senior statutory auditor)
for and on behalf of Ernst & Young LLP, Statutory Auditor
London
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Beazley | Syndicate 623 Annual report 2025 www.beazley.com
20 February 2026
Profit or loss account
2023 year of account for the 36 months ended 31 December 2025
Notes
2023 year
of account
$m
Gross premiums written 3 985.1
Outward reinsurance premiums (159.8)
Earned premiums, net of reinsurance 825.3
Allocated investment return transferred from the non-technical account 79.0
Reinsurance to close premiums received, net of reinsurance 4 568.4
Investment return and reinsurance adjusted premium 647.4
Reinsurance to close premiums payable, net of reinsurance 5 (640.5)
Gross claims paid (424.5)
Reinsurers’ share 87.3
Claims incurred, net of reinsurance (977.7)
Net operating expenses 7 (341.0)
Balance on the technical account 154.0
Investment income 43.5
Investment expenses and charges 11 (1.8)
Realised gain on investments 13.3
Unrealised gain on investments 24.0
Net investment return
79.0
Allocated investment return transferred to the technical account (79.0)
Other income 0.6
Loss on foreign exchange 3.4
Profit for the 2023 closed YoA
6
158.0
Syndicate allocated capacity (£ m) 818.6
Profit for the 2023 closed YoA (£ m) 117.5
Return on capacity 14.4 %
There were no other comprehensive gains or losses in the accounting period.
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57
Statement of changes in members’ balances
for the 36 months ended 31 December 2025
2023 year
of account
$'m
Profit for the 2023 closed YoA 158.0
Amounts due to members at 31 December 2025 158.0
Members participate in syndicates by reference to YoA and their ultimate result, assets and liabilities are assessed with reference
to policies incepting in that YoA in respect of their membership of a particular year.
58
Beazley | Syndicate 623 Annual report 2025 www.beazley.com
Balance sheet
closed at 31 December 2025
Notes
2023 year
of account
$'m
Assets
Financial investments 12 793.9
Deposits with ceding undertakings 0.9
Debtors 13 77.6
Reinsurance recoveries anticipated on gross reinsurance
to close premiums payable to close the account
5 285.7
Cash at bank and in hand 37.5
Prepayments and accrued income 12.1
Deferred acquisition costs 8.0
Total assets
1,215.7
Members' balances and liabilities
Members' balances
Amounts due to members 14 158.0
Liabilities
Reinsurance to close premium payable to close the account – gross amount 5 917.5
Creditors 15 140.2
Total liabilities
1,215.7
The underwriting year accounts on pages 57 to 66 were approved by the Board of Directors on 19 February 2026 and were signed
on its behalf by:
C C J Wong
Director
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59
Statement of cash flows
2023 year of account for the 36 months ended 31 December 2025
2023 year
of account
$'m
Cash flows from operating activities
Profit for the 2023 closed YoA 158.0
Increase in gross technical provisions 917.5
Increase in reinsurers' share of gross technical provisions (285.7)
Increase in debtors (77.6)
Movement in other assets/liabilities (21.0)
Increase in creditors 140.2
Investment return (79.0)
Net cash flows from operating activities 752.4
Cash flows from investing activities
Purchase of equity and debt securities (793.9)
Investment income received 79.0
Net cash flows from investing activities (714.9)
Cash flows from financing activities
Net cash flows from financing activities
—
Net increase in cash and cash equivalents
37.5
Cash and cash equivalents at the opening of the 2023 YoA —
Foreign exchange on cash and cash equivalents —
Cash and cash equivalents at the closing of the 2023 YoA
37.5
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Beazley | Syndicate 623 Annual report 2025 www.beazley.com
1 Accounting policies
Basis of preparation
These underwriting accounts have been prepared in accordance with the Insurance Accounts Directive (Lloyd’s Syndicate and
Aggregate Accounts) Regulations 2008 (‘the Regulations’) and applicable Accounting Standards in the United Kingdom,
including Financial Reporting Standard 102 ('FRS 102') and Insurance Contracts ('FRS 103'). They have also been prepared in
accordance with Lloyd’s Syndicate Accounting Byelaw (N.8 of 2005) and in accordance with the provisions of Schedule 3 of the
Large and Medium-size Companies and Groups (Accounts and Reports) Regulations relating to insurance companies.
Whilst the Directors of the managing agent have a reasonable expectation that the syndicate has adequate resources to
continue in operational existence for the foreseeable future, these financial statements represent the participation of members
in the 2023 YoA which closed on 31 December 2025. The accumulated profits of the 2023 YoA will be distributed shortly after
publication of these accounts. Therefore the 2023 YoA is not continuing to trade and, accordingly, the Directors have not
adopted the going concern basis in the preparation of these accounts. The amounts reported would be identical if the accounts
had been prepared on a going concern basis as the 2023 YoA will be closed by payment of a reinsurance to close premium,
as outlined in note (a) below, which is consistent with the normal course of business for a Lloyd’s syndicate and with the
approach applied to earlier underwriting years.
The principal accounting policies applied in the preparation of these underwriting accounts are set out below. The policies have
been consistently applied to all periods presented, unless otherwise stated. All amounts presented are stated in US dollars,
being the syndicate’s functional currency, and in millions, unless noted otherwise.
Underwriting transactions
(a) The underwriting accounts for each YoA are normally kept open for three years before the result of that year is determined.
At the end of the three-year period, outstanding liabilities can normally be determined with sufficient accuracy to permit the
YoA to be closed by payment of a reinsurance to close premium to the successor YoA.
(b) Gross premiums are allocated to YoA on the basis of the inception date of the policy. Commission and brokerage are charged
to the YoA to which the relevant policy is allocated. Policies written under binding authorities, lineslips or consortium
arrangements are allocated to the YoA into which the arrangement incepts. Additional and return premiums follow the YoA
of the original premium. Premiums in respect of reinsurance ceded are attributed to the same year as the original risk being
protected. Gross premiums are stated before the deduction of brokerage, taxes and duties levied on them. Estimates are
made for pipeline premiums, representing amounts due to the syndicate not yet notified.
(c) Gross claims paid are allocated to the same YoA that to which the corresponding premiums are allocated and include internal
and external claims settlement expenses. Reinsurance recoveries are allocated to the YoA to which the claim was charged.
(d) The reinsurance to close premium is determined by reference to outstanding liabilities, including claims incurred but not
yet reported, relating to the closed year and to all previous closed years reinsured therein. Although the estimate of net
outstanding liabilities is considered to be fair and reasonable, it is implicit in the estimation procedure that the ultimate
liabilities will be at variance from the premium so determined. The reinsurance to close premium includes a provision for
unearned premiums and unexpired risks at the balance sheet date, net of deferred acquisition costs.
(e) Please refer to note 1 Accounting policies in Syndicate 623 annual accounts for details around measurement of
insurance contracts.
Comparatives
(f) Comparatives are not provided in these syndicate underwriting year accounts as each syndicate YoA is a separate annual venture.
Investment return
(g) Investment return comprises investment income, realised investment gains and losses and movements in unrealised gains
and losses, net of investment expenses, charges and interest. Investment return arising in each calendar year is allocated
to years of account in proportion to the average funds available for investment attributable to those years. Investment returns
in respect of overseas deposits are allocated to the YoA which funded these deposits.
Notes to the syndicate underwriting year accounts
closed at 31 December 2025
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61
1 Accounting policies continued
(h) The investment return is wholly allocated to the technical account.
(i) Investments are valued at market value at the balance sheet date. Movements in unrealised gains and losses on investments
represent the difference between the valuation at the balance sheet date, and the valuation at the previous period end or
purchase value during the period.
Syndicate operating expenses
(j) Acquisition costs comprise brokerage, premium levies, and staff related costs of the underwriters acquiring the business.
Costs incurred by the managing agent in respect of the syndicate are charged to the syndicate. Where expenses do not
relate to any specific YoA they are apportioned between YoA on a basis which reflects the benefit obtained by each YoA
from each type of expense.
(l) Where expenses are incurred jointly by the managing agent and the syndicate, they are apportioned as follows:
• salaries and related costs – according to the staff time spent on dealing with syndicate matters;
• accommodation costs – proportioned based on the overall staff costs allocation above; and
• other costs – as appropriate in each case.
Taxation
(m) 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 income tax 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. It is the responsibility of members to agree and settle their individual
tax liabilities with the Inland Revenue.
(n) No provision has been made for any US federal income tax payable on the underwriting results or investment earnings.
Any payments on account made by the syndicate during the year have been included in the balance sheet under the heading
‘other debtors’.
No provision has been made for any other overseas tax payable by members on underwriting results. Members resident
overseas for tax purposes are responsible for agreeing and settling any tax liabilities with the taxation authorities of their
country of residence.
Basis of currency translation
(o) The functional and presentational currency of the syndicate is US dollars. Non-USD denominated items going through
the profit or loss account are translated to US dollars at the three years’ average rates of exchange. Assets and liabilities
denominated in foreign currencies at the balance sheet date are retranslated to the functional currency at the foreign
exchange rate at that date.
2 Risk management
The 2023 YoA has closed and all assets and liabilities have been transferred to a reinsuring YoA. The risks that it is exposed to in
respect of the reported financial position and financial performance are significantly less than those relating to the open YoA's as
disclosed in the syndicate annual accounts. Accordingly, these underwriting year accounts do not have associated risk disclosures
as required by section 34 of FRS 102. Full disclosures relating to these risks are provided in the syndicate annual accounts.
Notes to the syndicate underwriting year accounts
closed at 31 December 2025 continued
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Beazley | Syndicate 623 Annual report 2025 www.beazley.com
3 Analysis of underwriting result
An analysis of the underwriting result before investment return is set out below:
Gross
premiums
written
Gross
premiums
earned
Gross claims
incurred
Net operating
expenses
Reinsurance
balance
Underwriting
result
$m $m $m $m $m $m
Direct Insurance
Marine aviation and transport 72.8 71.4 (33.4) (29.7) (3.2) 5.1
Fire and other damage to property 248.1 241.3 (83.7) (82.1) (30.1) 45.4
Third party liability 471.3 434.9 (269.3) (148.1) (34.6) (17.1)
Miscellaneous 30.8 26.0 (14.4) (12.9) (2.0) (3.3)
Total Direct Insurance 823.0 773.6 (400.8) (272.8) (69.9) 30.1
Reinsurance accepted 162.1 163.1 (66.1) (68.2) 16.1
44.9
Total Direct and Reinsurance accepted 985.1 936.7 (466.9) (341.0) (53.8) 75.0
Development on the 2022 year of account and prior have been included as reinsurance accepted. This can lead to unexpected
movements on the gross premium earned, gross claims incurred, and reinsurance balance columns.
All business was concluded in the UK.
4 Reinsurance to close premiums received
2023 year
of account
$m
Gross reinsurance to close premiums received 791.2
Reinsurance recoveries anticipated (222.8)
Reinsurance to close premiums received, from 2022 and earlier, net of reinsurance
568.4
5 Reinsurance to close premiums payable
2023 year
of account
$m
Gross reinsurance to close premiums through profit and loss 882.0
Reinsurance recoveries anticipated through profit and loss (241.5)
Foreign exchange (8.7)
Reinsurance to close premiums payable to 2024 net of reinsurance
631.8
Reported
Unearned
premium reserve IBNR Total
$m $m $m $m
Gross reinsurance to close premium payable
267.8 48.4 601.3 917.5
Reinsurance recoveries anticipated
(70.2) (11.5) (204.0) (285.7)
Reinsurance to close premiums payable, net of reinsurance
197.6 36.9 397.3 631.8
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63
6 Analysis of the 2023 YoA result
2023 year
of account
$m
Amount attributable to business allocated to the 2023 YoA 172.1
Deficit on the reinsurance to close for the 2022 YoA (14.1)
158.0
7 Net operating expenses
2023 year
of account
$m
Acquisition costs 242.5
Reinsurance commissions and profit participation (16.2)
Administrative expenses 114.7
341.0
Administrative expenses include:
$m
Audit services 0.8
8 Emoluments of the Directors of BFL
An allocation of remuneration to the 2023 underwriting YoA for the Directors of BFL is based on the amounts paid between
2023 and 2025 as follows:
2023 year
of account
$m
Emoluments and fees 2.2
2.2
9 Staff costs
All staff are employed by Beazley Management Limited, with the majority of these costs incurred in sterling. The following amounts
were recharged to the 2023 underwriting YoA in respect of staff costs:
2023 year
of account
$m
Wages and salaries 23.1
Social security 7.1
Pension costs 5.8
Other 22.5
58.5
10 Active underwriter's emoluments
An allocation of the active underwriter’s remuneration to the 2023 underwriting YoA is based on the amounts paid between
2023 and 2025 as follows:
2023 year
of account
$m
Emoluments and fees 0.7
0.7
Notes to the syndicate underwriting year accounts
closed at 31 December 2025 continued
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Beazley | Syndicate 623 Annual report 2025 www.beazley.com
11 Investment expenses and charges
2023 year
of account
$m
Investment management expenses 1.8
1.8
12 Financial Assets
Level 1 Level 2 Level 3 Total
2023 $m $m $m $m
Financial investments
Shares and other variable yield securities and units in unit
trusts 85.9 72.3 — 158.2
Debt securities and other fixed income securities 283.0 304.8 — 587.8
Participation in investment pools 7.5 — — 7.5
Loans and deposits with credit institutions 3.7 — — 3.7
Other investments 36.7 — — 36.7
Total financial assets at fair value
416.8 377.1 — 793.9
Derivative financial instruments — — — —
Total
416.8 377.1 — 793.9
13 Debtors
2023 year
of account
$m
Debtors arising out of direct insurance operations – intermediaries 28.0
Debtors arising out of reinsurance operations 40.1
Amounts due from Syndicate 5623 0.1
Amounts due from Syndicate 4321 0.4
Other debtors 9.0
77.6
Other debtors mostly relate to miscellaneous receivable amounts related to taxation and other receivables.
These balances are due within one year.
14 Amounts due to members
2023 year
of account
$m
Profit for the 2023 closed YoA before standard personal expenses 162.9
Members' standard personal expenses (4.9)
Amounts due to members at 31 December 2025
158.0
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65
15 Creditors
2023 year
of account
$m
Creditors arising out of direct insurance operations 2.9
Creditors arising out of reinsurance operations 7.6
Amounts due to Syndicate 2623 29.9
Amounts due to Syndicate 3623 0.8
Amounts due to Syndicate 6107 3.5
Other creditors including taxation 95.5
140.2
Other creditors mostly relates to amounts owed to other years of account of Syndicate 623.
The above balances are payable within one year.
16 Related parties transactions
BFL, the managing agent of Syndicate 623, is a wholly-owned subsidiary of Beazley plc. The Directors of BFL who have participated
in Syndicate 623 indirectly through Beazley Staff Underwriting Limited are disclosed in the managing agent’s report of the annual
report and accounts on page 16.
The intercompany positions with other syndicates managed by BFL at 31 December 2025 are included in note 15 of the syndicate
underwriting year accounts.
BFL as the managing agent of the syndicate is responsible for settling intercompany balances with other managed syndicates
and net amounts due to/from other related entities.
Notes to the syndicate underwriting year accounts
closed at 31 December 2025 continued
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Beazley | Syndicate 623 Annual report 2025 www.beazley.com
Seven-year summary of closed year results
(unaudited)
at 31 December 2025
2023 2022 2021 2020 2019 2018 2017
Syndicate allocated capacity – £’m 818.6 587.3 514.8 422.6 366.2 350.9 304.5
Syndicate allocated capacity – $’m 990.5 810.4 638.3 536.6 483.3 456.2 408.0
Capacity utilised 82 % 64 % 79 % 93 % 89% 86% 88%
Aggregate net premiums – $’m 809.6 514.5 501.7 388.6 330.4 312.1 278.7
Underwriting profit as a percentage
of gross premiums
21.4 % 18.1 % 21.1 % 4.5 % 5.9% 0.9% 0.2%
Return on capacity 14.4 % 14.2 % 16.1 % (2.5) % 3.1% (2.7%) (2.4%)
Results for an illustrative £10,000 share
Gross premiums – $’000s 9.9 12.1 12.6 11.8 11.7 11.2 11.8
Net premiums 7.9 8.8 9.7 9.2 9.0 8.9 9.2
Reinsurance to close from an earlier
account
6.9 8.5 8.9 9.9 10.2 9.3 9.8
Net claims (4.1) (4.8) (5.2) (6.8) (6.0) (6.5) (7.1)
Reinsurance to close the YoA (7.8) (9.4) (10.0) (10.9) (11.6) (10.5) (10.7)
Underwriting profit 2.9 3.1 3.4 1.4 1.7 1.1 1.2
Profit/(loss) on foreign exchange (0.1) — (0.1) (0.1) 0.1 (0.2) –
Syndicate operating expenses (1.6) (1.4) (1.3) (1.4) (1.5) (1.5) (1.9)
Balance on technical account 1.2 1.7 2.0 (0.1) 0.3 (0.6) (0.7)
Gross investment return 1.0 0.7 0.5 – 0.5 0.4 0.6
Profit/(Loss) before personal expenses 2.2 2.4 2.5 (0.1) 0.8 (0.2) (0.1)
Illustrative personal expenses
Illustrative personal expenses (0.1) (0.2) (0.1) (0.2) (0.2) (0.2) (0.2)
Managing agent’s profit commission (0.4) (0.4) (0.4) – (0.1) – –
Profit/(loss) after illustrative profit
commission and personal expenses ($)
1.7 1.8 2.0 (0.3) 0.4 (0.4) (0.3)
Profit/(loss) after illustrative profit
commission and personal expenses (£)
1.4 1.4 1.6 (0.2) 0.3 (0.3) (0.2)
Notes:
1 The illustrative profit commission and personal expenses are estimates of amounts which might be charged on an illustrative share of £10,000. The agency agreements
for 1991 and subsequent years of account only provide for the deduction of fees and profit commission on behalf of the managing agent.
2 The effect of any minimum charges on personal expenses or deficit clauses on profit commission have been ignored.
3 Internal claims settlement expenses have been included in ‘net claims’.
4 The above figures are stated before members’ agents’ fees.
5 Profit after illustrative profit commission and personal expenses is shown in dollars and converted to sterling at the closing rate.
6 Gross and net premium amounts shown above are net of brokerage expenses.
7 The summary of closed years results are on a 'pure year' basis.
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67
Managing agent's corporate information
Beazley Furlonge Limited has been the managing agent of Syndicate 623 throughout the period covered by this report and the
registered office is 22 Bishopsgate, London, EC2N 4BQ, United Kingdom.
Directors
R A Stuchbery* - Chair
R S Anarfi - (resigned 28/02/2025)
P J Bantick - (resigned 17/03/2025)
W W E Barkholt* - (appointed 01/01/2025)
R J Clark*
A P Cox - (resigned 18/03/2025)
M E Diacon - (appointed 10/03/2025)
B J Greenwood - (appointed 18/03/2025)
G A Hayes - (appointed 13/03/2025)
A J Reizenstein* - (resigned 30/04/2025)
L Santori*
K J Somasundaram* - (appointed 03/11/2025)
N Wall*
C C J Wong
* Non-Executive Director.
Active underwriter
G A Hayes
Company secretary
R Yeoman
Managing agent’s registered office
22 Bishopsgate
London
EC2N 4BQ
United Kingdom
Registered number
01893407
Syndicate number
Auditor
Ernst & Young LLP
25 Churchill Place
London
E14 5EY
Banker
Deutsche Bank AG
Winchester House
London
1 Great Winchester Street
EC2N 2DB
68
Beazley | Syndicate 623 Annual report 2025 www.beazley.com
www.beazley.com Beazley | Syndicate 623 Annual report 2025
69
Beazley Furlonge Limited
Syndicate 623 at Lloyd’s
22 Bishopsgate
London
EC2N 4BQ
T +44 (0)20 7667 0623
info@beazley.com
www.beazley.com
Syndicate 623
annual report 2025
investor.relations.beazley.com
