Syndicate Accounts

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Lloyd’s Syndicate

W. R. Berkley Syndicate 1967

Annual Report and Accounts for the year ended31 December 2024

Contents

Highlights

Directors and Administration

Strategic report of the Managing Agent

Managing Agent’s report

Statement of Managing Agent’s responsibilities

Independent auditor’s report to the members of W R Berkley Syndicate 1967

Statement of profit or loss and other comprehensive income

Balance sheet – Assets

Balance sheet (cont’d) – Liabilities

Statement of changes in members’ balances

Statement of cash flows

Notes to the financial statements – (forming part of the financial statements)

Highlights

Net expense ratio and net combined ratio excludes profit / (loss) on foreign exchange

A graph with blue bars

AI-generated content may be incorrect.

Financial Year

2024

2023

2022

2021

2020

2019

2018

Gross written premium ($m)

603.2

554.9

513.1

495.4

417.5

335.4

254.5

Net premium written ($m)

394.4

363.1

313.4

312.8

168.5

203.0

162.5

Net premium earned ($m)

382.2

322.2

303.4

255.0

184.4

179.3

155.7

Net claims ratio (%)

55.6%

47.2%

60.7%

62.2%

129.1%

51.5%

66.5%

Acquisition expense ratio (%)

18.1%

14.2%

12.6%

15.6%

21.6%

18.7%

21.9%

Admin expense ratio (%)

12.8%

16.5%

17.3%

18.5%

20.8%

17.7%

21.9%

Net combined Ratio (%)

86.5%

77.9%

90.6%

96.3%

171.5%

87.9%

110.3%

Cash and investments ($m)

697.9

600.8

453.8

330.9

223.9

147.9

112.9

Profit / (Loss) for the financial year

76.6

92.5

27.2

10.3

(131.7)

23.4

(16.4)

Pure underwriting year

2024

F’cast

2023

F’cast

2022

Actual

2021

Actual

2020

Actual

2019

Actual

2018

Actual

Lloyd’s stamp capacity ($m)

596.9

568.7

503.7

423.5

393.3

298.1

286.6

Gross premium written ($m)

618.7

575.9

503.7

462.8

422.5

305.6

252.1

Profit / (Loss) for underwriting year ($m)

66.1

129.2

40.9

38.8

(58.5)

(49.2)

(12.3)

Return on capacity (%)

11.1

22.7

8.1

9.2

(14.9)

(16.6)

(4.3)

Directors and Administration

DIRECTORS AND ADMINISTRATION

Managing Agent

W. R. Berkley Syndicate Management Limited

DIRECTORS

William Robert Berkley – Chairman 1

Edward Creasy 2

William Robert Berkley Jr 1

Jacqueline Hedges

James Hastings

Gillian James

James Bronner

Ira Lederman (resigned 31 March 2024)

David Brosnan 2

Steven Taylor

Robert Chase 2 (resigned 31 December 2024)

Alastair Blades

1 Directors of ultimate parent company W. R. Berkley Corporation

2 Independent non-Executive Director

Company Secretary

Clyde & Co Secretaries Limited

Bankers

Citibank NA

RBC Dexia

Managing Agent’s registered office

14th floor, 52 Lime Street

London, EC3M 7AF

Investment manager

Berkley Dean & Company, Inc.

Managing Agent’s registered number

07712472

Registered auditor

KPMG LLP

Active underwriters

Alastair Blades (resigned 18 March 2024)

Andrew Howse (appointed 18 March 2024)

Reporting actuary

Ernst & Young LLP

Directors’ interests

None of the Directors of the Managing Agent have any participation in the Syndicate’s premium income capacity.

Strategic report of the Managing Agent

W. R. Berkley Syndicate 1967 (“the Syndicate”) underwrites a diversified portfolio of risks, focused on Specialty Property and Specialty Casualty lines. It also has a small number of classes of business which are currently in run off.

Specialty Property business includes North American and International Property, Property Binders and Engineering & Construction classes. Specialty Casualty business includes Professional Indemnity, Financial Institutions, Financial Lines, Technology E&O, Transactional Liability, Cyber and Product Recall plus Lloyd’s China business.

Business is mainly written directly on the Lloyd’s platform through London Market intermediaries. However, the Syndicate also makes use of its service company, W. R. Berkley UK Limited, to underwrite certain business and to facilitate underwriting on behalf of its network of affiliated Berkley businesses who act as approved coverholders. Business related to EEA risks is placed through Berkley European Underwriters AS on Lloyd's Insurance Company S.A. (“Lloyd’s Brussels”) paper, and 100% reinsured by the Syndicate, and business related to Chinese risks is written through Lloyd’s Insurance Company (China) Limited (“Lloyd’s China”) and 100% reinsured by the Syndicate.

The Lloyd’s stamp capacity for 2024 was at £470.0 million ($596.9 million) which is unchanged from the preceding year. The stamp capacity for the 2025 underwriting year is also unchanged at £470.0 million ($592.2 million).

Underwriting results

Financial year result

The 2024 financial year GAAP result is a profit of US$76.6 million (2023: $92.5 million) and a combined ratio of 86.5% (2023: 77.9%).

The performance for each individual underwriting year during the 2024 financial year is set out below.

Closed years

There was a small loss on the closed years (2009-2021). The result on the closed years for financial year 2024 was a loss of $1.0 million.

2022 Year

The 2022 underwriting year was influenced by shifts in market conditions with claims inflation and a more competitive underwriting environment putting pressure on underwriting performance. The Syndicate delivered strong premium growth in its core classes of Specialty Property and Specialty Casualty, resulting in the generation of a profit to date of $37.0 million despite significant losses from catastrophes, in particular Hurricane Ian ($41.0 million).

2023 Year

The 2023 underwriting year saw further shifts in market conditions and the development of a twin track market. There was significant hardening in the Specialty Property market somewhat influenced by increases in reinsurance costs. This is in contrast to the Specialty Casualty market which experienced rate reductions caused by an increase in market capacity. The Syndicate was successful in growing in its core Specialty Property portfolio and reduced income for Specialty Casualty class proactively managing the insurance cycle. This growth together with favourable claims experience has resulted in a profit to date of $78.9 million in the 2024 financial year. The ultimate forecast result for the year is a profit of $129.2 million.

2024 Year

The 2024 underwriting year observed strong risk adjusted rate increases and favourable conditions in Specialty Property which attracted enhanced competition as the year developed. The Syndicate increased its Specialty Casualty portfolio as it benefitted from some investment hires in newer lines of business. The Syndicate has recorded a loss to date in the financial year of $4.5 million due to recognising operating expenses in full in the first development year. The ultimate forecast result for the year is a profit of $66.1 million which is in line with the Syndicate plan.

Strategic report of the Managing Agent (Cont.)

In 2024, the Syndicate was categorised as “Outperforming”; testament to the focus on achieving the ambition of being a leading specialist insurer at Lloyd’s. Our goal is to be a consistent top quartile performer.

Outlook

As we enter 2025, we expect market conditions and pricing to moderate for both Specialty Property and Specialty Casualty with overall business remaining price adequate. The composition of the portfolio will largely remain unchanged and will continue to focus on Property and Specialty Casualty. The Syndicate strategy is to continue to focus on better comparative underwriting performance and penetration in existing classes, including subclasses which are more insulated from price volatility. The Syndicate believes that it can attract underwriting talent in the future; the investments in people, processes and technology made to date will ensure the Syndicate remains well positioned to generate satisfactory returns for its capital providers.

A. Howse

ACTIVE UNDERWRITER

6 MARCH 2025

Managing Agent’s report

The Directors of W. R. Berkley Syndicate Management Limited (“WRBSML” or “the Managing Agent”) present their report in respect of the Syndicate for the year ended 31 December 2024.

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 (“FRS102”) and Financial Reporting Standard 103 Insurance Contracts (“FRS103”).

Results

The underwriting result for the year ended 31 December 2024 is a profit of $76.6m (2023: profit of $92.5m).

Principal activities

The principal activity of the Syndicate is the transaction of general insurance and reinsurance business in the Lloyd’s market, in accordance with the risk appetite agreed by the Board of Directors of the Managing Agent (“the Board”).

The Syndicate underwrites direct business and facultative reinsurance, specialising in its chosen classes of Property, Engineering and Construction, and Specialty Casualty (which comprises of Professional Indemnity, Financial Lines and Financial Institutions). The Syndicate also provides an international underwriting platform for affiliate businesses of W. R. Berkley Corporation (“WRBC“) and writes a limited level of treaty and facultative reinsurance through Lloyd’s China. The Syndicate also manages the run off of its discontinued Marine, Aviation, Accident and Health, Asset Protection, Political Lines, Healthcare and Contingency classes.

Business review and key performance indicators

The table below sets out our key performance indicators. Gross premium written increased by 9%, largely as a result of an 8% growth in Specialty Property and a 10% increase in Specialty Casualty, Berkley and Reinsurance business.

2024

$’000

2023

$’000

2022

$’000

Gross premium written

603,223

554,875

513,090

Profit for the financial year

76,633

92,496

27,185

Investment (losses)/gains

26,216

23,070

(6,054)

Net Claims ratio

55.6%

47.2%

60.7%

Net Expense ratio

30.9%

30.7%

29.9%

Net Combined ratio

86.5%

77.9%

90.6%

Managing Agent’s report (Cont.)

The following table further details the gross premium written by class of business.

The Strategic report of the Managing Agent on page 5 also provides a review of business for the year.

Total investment return after expenses and unrealised gains/losses was a gain of $26.2m (2023: $23.1m gain). Investment return is monitored against industry 1–3 year benchmarks and the portfolio has performed in line with these benchmarks. Investments are managed by Berkley Dean & Co, a WRBC company.

Future developments

The capacity for the 2025 year of account is £470.0m (US$592.2m), in line with the capacity for the 2024 year of account of £470.0m ($596.9m).

As a business of WRBC, the Syndicate is committed to a Group-wide set of core values that highlight the importance of people, risk adjusted returns, accountability, transparency and responsible financial practices. During 2024 and as part of the Lloyd’s market-wide 2025 business planning process, the Syndicate submitted its Environmental, Social and Governance (ESG) framework to Lloyd’s. Through this framework, the Syndicate is committed to promoting good environmental, social and governance practices.

Principal risks and uncertainties

Risk management is a core tenet of the Managing Agent and, in accordance with its culture and philosophy; the Syndicate’s individual and aggregate risk exposures are managed proactively. The balance sheet is strong and includes a high-quality investment portfolio. The Board is responsible for oversight of the management of risks facing the business. The Board sets risk appetite as part of the business planning and capital planning processes. A ‘three lines of defence’ governance model is in place that promotes and enables an effective system of risk management and internal control across the Managing Agent. The Board has an established Risk & Capital Committee (“RCC”), a Risk Management function and an Audit Committee.

The principal risks and uncertainties facing the Syndicate are broadly grouped as follows:

—Strategic risk;

—Insurance risk including reserving risk;

—Financial risk including credit risk , liquidity risk and market risk;

—Operational risk including regulatory risk and Group Risk.

Note 4 to the Financial Statements – Risk and Capital Management provides a further explanation of how these risks are addressed.

Gross written Premium

2024

$’000

2023

$’000

2022

$’000

Property

298,758

287,017

220,645

Engineering and Construction

103,090

83,996

54,876

Specialty Property

401,848

371,013

275,521

Professional Indemnity

42,947

45,090

44,767

Financial Lines

32,239

35,697

39,464

Financial Institutions

7,768

3,965

Specialty Casualty

82,954

84,752

84,231

Reinsurance China

11,370

11,095

10,198

W.R. Berkley Business

104,550

83,073

110,313

Run-off

2,501

4,942

32,827

Total

603,223

554,875

513,090

Managing Agent’s report (Cont.)

Inflation

The continuing economic uncertainty and challenges, with inflation across developed economies remaining above, and more volatile than, historic level and ongoing geo-political concerns, has the potential to impact the Syndicate’s results. The Syndicate continues to evaluate the changing market conditions and the opportunities available to deploy capital where it is believed that adequate risk-adjusted returns can be achieved.

Going Concern

Based on the going concern assessment performed as at 31 December 2024, which includes severe but plausible downside stress scenarios, the Directors consider there to be no material uncertainties that may cast significant doubt over the Syndicate’s ability to continue to operate as a going concern for a period of at least 12 months from the date of signing these financial statements. The Directors have formed a judgment that the Syndicate has adequate resources to continue in operational existence for a period of at least 12 months from the date of signing these financial statements and confirm their current intent to open a 2026 year of account.

Political and charitable donations

The Syndicate made no charitable donations during the year nor in the prior year. There were no political donations made this year nor in the previous year

Managing Agent’s report (Cont.)

Directors serving in the year

The Directors of the Managing Agent, who served during the year, were as follows:

William Robert Berkley – Chairman 1

Edward Creasy 2

William Robert Berkley Jr 1

Jacqueline Hedges

James Hastings

Gillian James

David Brosnan 2

Ira Lederman (resigned 31 March 2024)

Alastair Blades

Steven Taylor

James Bronner

Robert Chase 2 (resigned 31 December 2024)

1 Directors of ultimate parent company W. R. Berkley Corporation

2 Independent non-Executive Director

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 material 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 material audit information and to establish that the Syndicate’s auditors are aware of that information.

Auditor

Pursuant to Section 14 of Schedule 1 of the Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008, KPMG LLP has been reappointed as the Syndicate Auditor and will therefore continue in office.

Syndicate annual general meeting

In accordance with the Syndicate Meetings (Amendment No. 1) Byelaw (No. 18 of 2000), notice is hereby given that the managing agent does not propose to hold an annual general meeting of the members of the Syndicate.

On behalf of the Board

J. HASTINGS

CHIEF EXECUTIVE OFFICER

6 MARCH 2025

Statement of Managing Agent’s responsibilities

The Directors are responsible for preparing the Syndicate annual accounts in accordance with applicable law and regulations.

The Insurance Accounts Directive (Lloyd's Syndicate and Aggregate Accounts) Regulations 2008 requires the Directors of the Managing Agent to prepare their Syndicate's annual accounts for each financial year. Under that law they have elected to prepare the annual accounts in accordance with 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 must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Syndicate and of the profit or loss of the Syndicate for that period. In preparing these financial statements, the Directors are required to:

•Select suitable accounting policies and then apply them consistently;

•Make judgements and estimates that are reasonable and prudent;

•State whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

•Assess the Syndicate’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and

•Use the going concern basis of accounting unless they either intend to cease operations or have no realistic alternative but to do so.

The Directors of the Managing Agent are responsible for keeping adequate accounting records that are sufficient to show and explain the Syndicate's transactions and disclose with reasonable accuracy at any time the financial position of the Syndicate and enable them to ensure that the Syndicate annual accounts comply with the Insurance Accounts Directive (Lloyd's Syndicate and Aggregate Accounts) Regulations 2008. They are responsible for such internal control as they determine is necessary to enable the preparation of Syndicate annual accounts that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the 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 Syndicate annual accounts may differ from legislation in other jurisdictions.

J. HASTINGS

CHIEF EXECUTIVE OFFICER

6 MARCH 2025

Independent auditor’s report to the members of W. R. Berkley Syndicate 1967

Opinion

We have audited the Syndicate annual accounts of Syndicate1967(“the Syndicate”) for the year ended 31 December 2024 which comprise the Statement of Profit or Loss: Technical account – General business, Statement of Profit or Loss: non-technical account, Balance Sheet – Assets, Balance Sheet – Liabilities, Statement of Changes in Members’ Balances, Statement of Cash Flows, and related notes, including the accounting policies in note 1.

In our opinion the Syndicate annual accounts:

•give a true and fair view of the state of the Syndicate’s affairs as at 31 December 2024 and of its profit for the year then ended;

•have been properly prepared in accordance with UK accounting standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland; and

•have been prepared in accordance with the requirements of the Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities are described below. We have fulfilled our ethical responsibilities under, and are independent of the Syndicate in accordance with, UK ethical requirements including the FRC Ethical Standard as applied to other entities of public interest. We believe that the audit evidence we have obtained is a sufficient and appropriate basis for our opinion.

Going concern

The Directors of the Managing Agent (“the Directors”) have prepared the Syndicate annual accounts on the going concern basis as they do not intend to cease underwriting or to cease its operations, and as they have concluded that the Syndicate’s financial position means that this is realistic. They have also concluded that there are no material uncertainties that could have cast significant doubt over its ability to continue as a going concern for at least a year from the date of approval of the Syndicate annual accounts (“the going concern period”).

In our evaluation of the Directors’ conclusions, we considered the inherent risks to the Syndicate’s business model and analysed how those risks might affect the Syndicate’s financial resources or ability to continue operations over the going concern period, including reviewing correspondence with Lloyd’s to assess whether there were any known impediments to establishing a further year of account.

Our conclusions based on this work:

•we consider that the Directors’ use of the going concern basis of accounting in the preparation of the Syndicate annual accounts is appropriate; and

•we have not identified and concur with the Directors’ assessment that there is not, a material uncertainty related to events or conditions that, individually or collectively, may cast significant doubt on the Syndicate’s ability to continue as a going concern for the going concern period.

However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the above conclusions are not a guarantee that the Syndicate will continue in operation.

Fraud and breaches of laws and regulations – ability to detect

Identifying and responding to risks of material misstatement due to fraud

To identify risks of material misstatement due to fraud (“fraud risks”) we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures at the Syndicate and Managing Agent included:

•Enquiring of directors, the audit committee, internal audit, compliance, legal and risk and inspection of policy documentation as to the Syndicate and Managing Agent’s high-level policies and procedures to prevent and detect fraud, including the internal audit function, and the Syndicate and Managing Agent’s channel for “whistleblowing”, as well as whether they have knowledge of any actual, suspected, or alleged fraud.

•Reading Board, audit committee and risk and solvency committee minutes.

•Considering remuneration incentive schemes and performance targets for management and directors.

•Using analytical procedures to identify any usual or unexpected relationships.

We communicated identified fraud risks throughout the audit team and remained alert to any indications of fraud throughout the audit.

As required by auditing standards and considering possible pressures to meet profit targets and our overall knowledge of the control environment, we perform procedures to address the risk of management override of controls, in particular the risk that management may be in a position to make inappropriate accounting entries, and the risk of bias in accounting estimates and judgements such as the valuation of claims outstanding and the valuation of estimated premium debtors. We did not identify any additional fraud risks.

We performed procedures including:

•Identifying journal entries and other adjustments to test based on risk criteria and comparing the identified entries to supporting documentation. These included those posted by senior management, journals posted without a user identity, those posted to accounts linked to an accounting estimate and those posted with unusual descriptions or related to run-off if any; and

•Assessing significant accounting estimates for bias.

Identifying and responding to risks of material misstatement due to non-compliance with laws and regulations

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the Annual Return from our general commercial and sector experience and through discussion with the directors and other management (as required by auditing standards), and from inspection of the Managing Agent’s regulatory and legal correspondence and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations.

As the Syndicate is regulated, our assessment of risks involved gaining an understanding of the control environment including the entity’s procedures for complying with regulatory requirements.

We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.

The potential effect of these laws and regulations on the Annual Return varies considerably.

Firstly, the Syndicate is subject to laws and regulations that directly affect the Annual Return including financial reporting legislation (including related Lloyd’s regulations) and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related Annual Return items.

Secondly, the Syndicate is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the Annual Return, for instance through the imposition of fines or litigation or the loss of the Syndicate’s capacity to operate. We identified the following areas as those most likely to have such an effect: regulatory capital and conduct recognizing the financial and regulated nature of the Syndicate’s activities. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.

Context of the ability of the audit to detect fraud or breaches of law or regulation

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the Annual Return, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the Annual Return, the less likely the inherently limited procedures required by auditing standards would identify it.

In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.

Other information - Report of the Directors of the Managing Agent

The Directors are responsible for the Report of the Directors of the Managing Agent. Our opinion on the Syndicate annual accounts does not cover that report and we do not express an audit opinion or, except as explicitly stated below, any form of assurance conclusion thereon.

Our responsibility is to read the Report of the Directors of the Managing Agent and, in doing so, consider whether, based on our Syndicate annual accounts audit work, the information therein is materially misstated or inconsistent with the Syndicate annual accounts or our audit knowledge. Based solely on that work:

•we have not identified material misstatements in the Report of the Directors of the Managing Agent;

•in our opinion the information given in the Report of the Directors of the Managing Agent is consistent with the Syndicate annual accounts; and

•in our opinion the Report of the Directors of the Managing Agent has been prepared in accordance with the requirements of the Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008.

Matters on which we are required to report by exception

Under the Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008, we are required to report to you if, in our opinion:

•adequate accounting records have not been kept on behalf of the Syndicate; or

•the Syndicate annual accounts are not in agreement with the accounting records; or

•certain disclosures of Managing Agent’s emoluments specified by law are not made; or

•we have not received all the information and explanations we require for our audit.

We have nothing to report in these respects.

Responsibilities of the Directors of the Managing Agent

As explained more fully in their statement set out on page 11, 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; such internal control as they determine is necessary to enable the preparation of Syndicate annual accounts that are free from material misstatement, whether due to fraud or error; assessing the Syndicate’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and using the going concern basis of accounting unless they either intend to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities

Our objectives are to obtain reasonable assurance about whether the Syndicate annual accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue our opinion in an auditor’s report. Reasonable assurance is a high level of assurance but does not guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the Syndicate annual accounts.

A fuller description of our responsibilities is provided on the FRC’s website at

www.frc.org.uk/auditorsresponsibilities

The purpose of our audit work and to whom we owe our responsibilities

This report is made solely to the Syndicate’s members, as a body, in accordance with the Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008. 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.

David Maddamsfor and on behalf of KPMG LLP, Statutory Auditor

Chartered Accountants 15 Canada SquareLondonE14 5GL 6 March 2025

Statement of profit or loss and other comprehensive income:

Technical account – General business/long-term business

For the year ended 31 December 2024

Note

2024

$000

2023

$000

Gross premiums written

603,223

554,875

Outwards reinsurance premiums

(208,872)

(191,747)

Premiums written, net of reinsurance

394,351

363,128

Changes in unearned premium

Change in the gross provision for unearned premiums

(23,338)

(31,248)

Change in the provision for unearned premiums reinsurers’ share

11,203

(9,638)

Net change in provisions for unearned premiums

(12,135)

(40,886)

Earned premiums, net of reinsurance

382,216

322,242

Allocated investment return transferred from the non-technical account

26,216

23,070

Other technical income, net of reinsurance

Claims paid

Gross amount

(205,921)

(193,413)

Reinsurers’ share

71,299

63,822

Net claims paid

(134,622)

(129,591)

Change in the provision for claims

Gross amount

(79,751)

(7,338)

Reinsurers’ share

2,028

(15,289)

Net change in provisions for claims

(77,723)

(22,627)

Claims incurred, net of reinsurance

(212,345)

(152,218)

Changes in other technical provisions, net of reinsurance, not shown under other headings

Long term business provision, net of reinsurance

Gross amount

Reinsurers’ share

Net change in long term business provisions

Other technical provisions, net of reinsurance

Net change in other technical provisions

Net operating expenses

(118,092)

(98,953)

Other technical charges, net of reinsurance

Balance on the technical account – general business/long-term business

77,995

94,141

Statement of profit or loss and other comprehensive income: (cont.)

Non-technical account – General business/long-term business

For the year ended 31 December 2024

The accompanying notes from page 22 to 50 form an integral part of these financial statements.

Note

2024$000

2023$000

Balance on the technical account – general business/long-term business

77,995

94,141

Investment income

15,921

11,750

Realised gains/(losses) on investments

3,125

(1,686)

Unrealised gains/(losses) on investments

7,799

13,503

Investment expenses and charges

(629)

(497)

Total investment return

26,216

23,070

Allocated investment return transferred to the general business technical account

(26,216)

(23,070)

Gain/(loss) on foreign exchange

(1,362)

(1,645)

Other income

Other expenses

Profit/(loss) for the financial year

76,633

92,496

Other comprehensive income:

Currency translation gains/(losses)

Realised gains/(losses) on available for sale assets

Unrealised gains/(losses) on available for sale assets

Reclassifications through profit or loss

Other recognised gains/(losses)

Other

Total comprehensive income/(loss) for the year

76,633

92,496

Balance sheet – Assets

As at 31 December 2024

Note

2024$000

2023$000

Financial investments

650,216

547,357

Deposits with ceding undertakings

1,576

693

Investments

651,792

548,050

Provision for unearned premiums

85,046

73,294

Claims outstanding

255,261

258,027

Long term business provision

Reinsurers’ share of technical provisions

340,307

331,321

Debtors arising out of direct insurance operations

140,319

134,562

Debtors arising out of reinsurance operations

76,242

54,312

Other debtors

5,948

17,440

Debtors

222,509

206,314

Tangible assets

Cash at bank and in hand

7,125

8,570

Other

38,971

44,136

Other assets

46,096

52,706

Accrued interest and rent

4,872

2,909

Deferred acquisition costs

54,639

49,681

Other prepayments and accrued income

1,392

1,698

Prepayments and accrued income

60,903

54,288

Total assets

1,321,607

1,192,679

Balance sheet (cont’d) – Liabilities

As at 31 December 2024

Note

2024$000

2023$000

Members’ balances

158,740

122,994

Total capital and reserves

158,740

122,994

Provision for unearned premiums

304,064

286,624

Claims outstanding

672,374

605,074

Long term business provision

Other technical provisions

Technical provisions

976,438

891,698

Provisions for other risks

Deposits received from reinsurers

Creditors arising out of direct insurance operations

3,800

2,696

Creditors arising out of reinsurance operations

145,463

128,480

Reinsurers share of deferred acquisition costs

Other creditors including taxation and social security

10,422

23,618

Amounts owed to credit institutions

Creditors

159,685

154,794

Accruals and deferred income

26,744

23,193

Total liabilities

1,162,867

1,069,685

Total liabilities, capital and reserves

1,321,607

1,192,679

The Syndicate financial statements on pages 16 to 50 were approved by the board of W. R. Berkley Syndicate Management Limited on 6 March 2025 and were signed on its behalf by;

J. HASTINGSCHIEF EXECUTIVE OFFICER6 MARCH 2025

Statement of changes in members’ balances

For the year ended 31 December 2024

2024$000

2023$000

Members’ balances brought forward at 1 January

122,994

24,030

Total comprehensive income/(loss) for the year

76,633

92,496

Payments of profit to members’ personal reserve funds

Losses collected in relation to distribution on closure of underwriting year

Cash calls on open underwriting years

(40,887)

6,468

Members agent fees

Net movement on funds in syndicate

Other

Members’ balances carried forward at 31 December

158,740

122,994

Statement of cash flows

For the year ended 31 December 2024

Note

2024$000

2023$000

Cash flows from operating activities

Profit/(loss) for the financial year

76,633

92,496

Adjustments:

Depreciation and other movements in tangible fixed assets

(Gain)/loss on disposal of tangible fixed assets

Increase/(decrease) in gross technical provisions

84,740

53,262

Increase/(decrease) in reinsurers’ share of gross

technical provisions

(8,986)

24,321

Increase/(decrease) in debtors

(22,816)

(22,874)

Increase/(decrease) in creditors

8,448

(6,703)

Increase/(decrease) in deposits received from reinsurers

Movement in other assets/liabilities

5,165

(2,476)

Investment return

(26,216)

(23,070)

Foreign exchange

Other

Net cash flows from operating activities

116,968

115,021

Cash flows from investing activities

Purchase of tangible fixed assets

Sales of tangible fixed assets

Purchase of equity and debt instruments

(473,229)

(345,665)

Sale of equity and debt instruments

348,682

209,393

Purchase of derivatives

Sale of derivatives

Investment income received

29,211

9,567

Other

16,447

(2,901)

Net cash flows from investing activities

(78,889)

(129,606)

Cash flows from financing activities

Distribution of profit

(40,887)

6,468

Open year profit release

Collection of losses

Capital contributions/open year cash calls made

Funds In Syndicate released to members

Other

Net cash flows from financing activities

(40,887)

6,468

Net increase/(decrease) in cash and cash equivalents

(2,807)

(8,118)

Cash and cash equivalents at the beginning of the year

8,570

15,107

Foreign exchange on cash and cash equivalents

1,362

1,581

Cash and cash equivalents at the end of the year

7,125

8,570

Notes to the financial statements – (forming part of the financial statements)

1.Basis of preparation

Lloyd’s Syndicate 1967 (‘The Syndicate’) comprises a group of members of the Society of Lloyd's that underwrites insurance business in the London Market. It is managed by W. R. Berkley Syndicate Management Limited (“the Managing Agent”). The address of the Managing Agent is 14th floor, 52 Lime Street, London, EC3M 7AF.

The financial statements have been prepared in accordance with the Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 and applicable Accounting Standards in the United Kingdom and the Republic of Ireland, including Financial Reporting Standard 102 (FRS 102). FRS 102 requires the application of Financial Reporting Standard 103 (FRS 103) in relation to insurance contracts., and the Lloyd’s Syndicate Accounts Instructions Version 2.0 as modified by the Frequently Asked Questions Version 1.1 issued by Lloyd’s.

The financial statements have been prepared on the historical cost basis, except for financial assets at fair value through profit or loss and available for sale that are measured at fair value.

The financial statements are presented in US Dollars (‘USD’), which is the Syndicate’s functional currency. All amounts have been rounded to the nearest thousand, unless otherwise indicated.

Going Concern

The Syndicate has financial resources to meet its financial needs and manage its portfolio of insurance risk. The directors have continued to review the business plans, liquidity and operational resilience of the Syndicate and are satisfied that the Syndicate is well positioned to manage its business risks in the current economic environment. The Syndicate 2025 year of account has opened, and the directors have concluded that the Syndicate has sufficient resources to, and a reasonable expectation that it will open a 2026 year of account. The Syndicate has sufficient capital for each year of account in its Funds at Lloyd’s (FAL). There is no intention to cease underwriting or cease the operations of the Syndicate.

2.Use of Judgements and estimates

In preparing these financial statements, the Directors of the Managing Agent have made judgements, estimates and assumptions that affect the application of the Syndicate’s accounting policies and the reported amounts of assets, liabilities, income and expenses.

Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively.

The following critical judgements have been made in applying the Syndicate’s accounting policies:

The provision for claims outstanding comprises the estimated cost of settling all claims incurred but unpaid at the balance sheet date, whether reported or not. This is a judgemental and complex area due to the subjectivity inherent in estimating the impact of claims events that have occurred but for which the eventual outcome remains uncertain. In particular, judgement is applied when estimating the value of amounts that should be provided for claims that have been incurred at the reporting date but have not yet been reported (“IBNR”) to the Syndicate.Further information about the risk that the provision for claims outstanding could be materially different from the ultimate cost of claims settlement is included in the sensitivity analysis within note 4.

The measurement of premium estimates comprises the estimated gross premium written during the year, that have not yet been notified by the financial year-end. For certain insurance contracts, premium is initially recognised based on estimates of ultimate premiums. These estimates, primarily relating to binder business, are judgemental and could result in misstatements of revenue recorded in the financial statements.

The main assumption underlying future premium, is that past premium development can be used to project future premium development.

Notes to the financial statements – (forming part of the financial statements) (cont’d)

3.Significant accounting policies

A.Premiums written

Gross premiums written reflect direct and inwards reinsurance business written during the period, gross of commission payable to intermediaries, and exclude any taxes or duties based on premiums. Premiums written include estimates for ‘pipeline’ premiums representing amounts due to the Syndicate not yet notified and adjustments to estimates of premiums written in previous periods.

Estimated premium income in respect of facility contracts, for example binding authorities and lineslips, are deemed to be written in a manner that reflects the expected profile of the underlying business which has been written.

Outwards reinsurance premiums consist of excess of loss and proportional reinsurance contracts. Initial excess of loss premiums are accounted for in the year of inception. Premiums ceded to reinstate reinsurance cover or additional premiums payable on loss are recognised when they may be assessed with reasonable certainty. Proportional outward reinsurance premiums are accounted for in the same accounting period as the premiums for the related direct or inwards business being reinsured.

B.Unearned premiums

The provision for unearned premiums comprises the proportion of gross premiums written which is estimated to be earned in the following or subsequent financial periods, computed separately for each insurance contract using the daily pro rata method.

Written premium is generally earned using daily pro rata method. This is assessed by management at least annually to ensure it materially reflects the underlying risk profile of the Syndicate’s exposures.

C.Acquisition costs

Costs incurred in acquiring general insurance contracts are deferred. Acquisition costs include direct costs such as brokerage and commission, and indirect costs such as administrative expenses connected with the processing of proposals and the issuing of policies. The deferred acquisition cost asset represents the proportion of acquisition costs which corresponds to the proportion of gross premiums written that is unearned at the balance sheet date.

D.Reinsurance

The Syndicate assumes and cedes reinsurance in the normal course of business. Premiums and claims on reinsurance assumed are recognised in the technical account along the same basis as direct business, taking into account the product classification. Reinsurance premiums ceded and reinsurance recoveries on claims incurred are included in the respective expense and income accounts. Premiums ceded and claims reimbursed are presented on a gross basis in the technical account and balance sheet as appropriate.

Reinsurance outwards premiums are earned according to the nature of the cover. ‘Losses occurring during’ policies are earned evenly over the policy period. ‘Risks attaching’ policies are expensed on the same basis as the inwards business being protected.

E.Claims provisions and related reinsurance recoveries

Claims incurred comprise claims occurring during the year, whether reported or not, including related direct and indirect claims handling expenses (both internal and external) paid in the year and the movement in provision for outstanding claims and settlement expenses. The Syndicate does not discount its liability for outstanding claims, nor the reinsurance share of outstanding claims handling costs.

Outstanding claims include an allowance for the cost of claims incurred by the balance sheet date but not reported until after the year end (IBNR). The liability for outstanding claims is estimated using the input of assessments for individual cases reported to the Syndicate and widely accepted actuarial techniques for the

Notes to the financial statements – (forming part of the financial statements) (cont’d)

claims incurred but not reported (IBNR). 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 and an estimate of the expected ultimate cost of more complex claims that may be affected by external factors, for example, court decisions.

The reinsurers’ share of provisions for claims is based on calculated amounts of outstanding claims and projections for IBNR, net of estimated irrecoverable amounts, having regard to the reinsurance programme in place for the class of business, the claims experience for the year and the current security rating of the reinsurance companies involved. A number of statistical techniques are used to assist in making these estimates.

Reinsurance assets are assessed for impairment at each balance sheet date. A reinsurance asset is deemed impaired if there is objective evidence, as a result of an event that occurred after its initial recognition, that the Syndicate may not recover all amounts due, and that event has a reliably measurable impact on the amount that the Syndicate will receive from the reinsurer. Impairment losses are recognised in profit or loss in the period in which the impairment loss is recognised.

The two most critical assumptions as regards claims provisions are that the past is a reasonable predictor of the likely level of claims development and that the rating and other models used for current business are fair reflections of the likely level of ultimate claims to be incurred.

The Directors consider that the provisions for gross claims and related reinsurance recoveries are fairly stated on the basis of the information currently available to them. However, the ultimate liability will vary as a result of subsequent information and events, and this may result in significant adjustments to the amounts provided. Adjustments to the amounts of claims provisions established in prior years are reflected in the annual accounts for the period in which the adjustments are made. The methods used and the estimates made, are reviewed regularly.

F.Unexpired risks provision

Provision is made for unexpired risks arising from general insurance contracts where the expected value of claims and expenses attributable to the unexpired periods of policies in force at the balance sheet date exceeds the unearned premiums provision in relation to such policies (after the deduction of any deferred acquisition costs). The provision for unexpired risks is calculated by reference to classes of business which are managed together.

G.Foreign currencies

The functional and presentational currency of the Syndicate is US Dollars. Income and expenditure in foreign currencies are translated at the average rates of exchange for the period. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange at the balance sheet date or if appropriate at the forward contract rate. Non-monetary assets and liabilities are translated at the rate of exchange ruling at the date of transaction. All differences arising on translation of foreign currency amounts are included in the profit and loss account.

H.Financial assets and liabilities

In applying FRS 102, the Syndicate has chosen to apply the recognition and measurement provisions of IAS 39 Financial Instruments: Recognition and Measurement (as adopted for use in the EU).

Financial assets and liabilities are recognised when the Syndicate becomes a party to the contractual provisions of the instrument. Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. The Syndicate considers financial assets and liabilities to include debtors and creditors and are stated at cost which is deemed to be fair value.

Classification

The accounting classification of financial assets and liabilities determines the way in which they are measured and changes in those values are presented in the statement of profit or loss account and other comprehensive income.

Notes to the financial statements – (forming part of the financial statements) (cont’d)

Financial assets and liabilities are classified on their initial recognition. Subsequent reclassifications are permitted only in restricted circumstances.

Financial assets and financial liabilities at fair value through profit and loss comprise financial assets and financial liabilities held for trading and those designated as such on initial recognition. Investments in shares and other variable yield securities, units in collective investment schemes, and debt and other fixed income securities are designated as at fair value through profit or loss on initial recognition, as they are managed on a fair value basis in accordance with the Syndicate’s investment strategy.

Deposits with credit institutions are classified as financial investments and debtors and accrued interest are classified as receivables and are held at amortised cost. For this purpose, investments are stated at market value (bid value) and deposits with credit institutions are stated at amortised cost.

Recognition

Financial instruments are recognised when the Syndicate becomes a party to the contractual provisions of the instrument. Financial assets are derecognised if the Syndicate‘s contractual rights to the cash flows from the financial assets expire or if the Syndicate transfers the financial asset to another party without retaining control of substantially all risks and rewards of the asset. A financial liability is derecognised when its contractual obligations are discharged, cancelled, or expire.

Purchases and sales of financial assets are recognised and derecognised, as applicable, on the trade date, i.e. the date that the Syndicate commits itself to purchase or sell the asset.

Measurement

A financial asset or financial liability is measured initially at fair value. If a financial asset or financial liability not at fair value through profit and loss, initial fair value includes transaction costs that are directly attributable to its acquisition or issue.

Financial assets at fair value through profit or loss are measured at fair value with fair value changes recognised immediately in profit or loss. Net gains or net losses on financial assets measured at fair value through profit or loss includes foreign exchange gains/losses arising on their translation to the functional currency but excludes interest income. The investment return is initially recorded in the non-technical account. A transfer is made from the non-technical account to the general business account to reflect the investment return on funds supporting underwriting business.

Debtors, cash and cash equivalents and non-derivative financial liabilities are measured at amortised cost.

Identification and measurement of impairment

At each reporting date the Syndicate assesses whether there is objective evidence that financial assets not at fair value through profit or loss are impaired. Financial assets are impaired when objective evidence demonstrates that a loss event has occurred after the initial recognition of an asset, and that the loss event has an impact on the future cash flows on the asset that can be estimated reliably.

Objective evidence that financial assets are impaired includes observable data that comes to the attention of the Syndicate about any significant financial difficulty of the issuer, or significant changes in the technological, market, economic or legal environment in which the issuer operates.

An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount, and the present value of the estimated future cash flows discounted at the asset’s original effective interest rate. Individually significant financial assets are tested for impairment on an individual basis. The remaining financial assets are assessed collectively in groups that share similar credit risk characteristics.

Notes to the financial statements – (forming part of the financial statements) (cont’d)

An impairment loss recognised reduces directly the carrying amount of the impaired asset. All impairment losses are recognised in profit or loss. An impairment loss is reversed if the reversal can be related objectively to an event occurring after the impairment loss was recognised. For financial assets measured at amortised cost the reversal is recognised in profit or loss.

Off-setting

Financial assets and financial liabilities are set off and the net amount presented in the balance sheet when, and only when, the Syndicate currently has a legal right to set off the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.

Fair Value Hierarchy

The Syndicate utilises a fair value hierarchy that prioritises the inputs to valuation techniques used to measure fair value into three broad levels. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for similar assets in active markets.

Level 3 inputs are unobservable inputs for the asset or liability. Unobservable inputs may only be used to measure fair value to the extent that observable inputs are not available. The fair value of the majority of the Syndicate’s portfolio is based on observable data (other than quoted prices) and, accordingly, is classified as Level 2. Level 3 assets held at 31 December 2024 are the Syndicate Loan to the Lloyd’s Central Fund.

In classifying particular financial securities in the fair value hierarchy, the Syndicate uses its judgement to determine whether the market for a security is active and whether significant pricing inputs are observable.

The Syndicate determines the existence of an active market by assessing whether transactions occur with sufficient frequency and volume to provide reliable pricing information.

The Syndicate determines whether inputs are observable based on the use of such information by pricing services and external investment managers, the uninterrupted availability of such inputs, the need to make significant adjustments to such inputs and the volatility of such inputs over time. If the market for a security is determined to be inactive or if significant inputs used to price a security are determined to be unobservable, the security is categorised in Level 3 of the fair value hierarchy.

I.Investment return

Investment return comprises investment income and movements in unrealised gains and losses on financial instruments at fair value through profit or loss, less investment management expenses, interest expense, realised losses and impairment losses. Investment income comprises interest income, dividends receivable and realised investment gains.

Dividend income is recognised when the right to receive income is established. Usually this is the ex dividend date for equity securities. Interest income on financial assets measured at amortised cost is recognised using the effective interest method. For the purpose of separately presenting investment income and unrealised gains and losses for financial assets at fair value through profit or loss, interest income is calculated using the effective interest method excluding transaction costs that are expensed when incurred. For investments at fair value through profit or loss, realised gains and losses represent the difference between the net proceeds on disposal and the purchase price. For investments measured at amortised cost, realised gains and losses represent the difference between the net proceeds on disposal and the latest carrying value (or if acquired after the last reporting date, the purchase price).

Unrealised investment gains and losses represent the difference between the fair value at the balance sheet date and the fair value at the previous balance sheet date, or purchase price if acquired during the year. Movements in unrealised investment gains and losses comprise the increase/decrease in the reporting period in the value of the

Notes to the financial statements – (forming part of the financial statements) (cont’d)

investments held at the reporting date and the reversal of unrealised investment gains and losses recognised in earlier reporting periods in respect of investment disposals of the current period.

Investment return is initially recorded in the non-technical account. The return is transferred in full to the general business technical account to reflect the investment return on funds supporting underwriting business.

J.Cash and cash equivalents

Cash and cash equivalents comprise cash balances and call deposits with maturities of three months or less from the acquisition date that are subject to an insignificant risk of changes in fair value and are used by the Syndicate in the management of its short-term commitments.

Cash and cash equivalents are carried at amortised cost in the balance sheet.

K.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 (currently at 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 United States Federal Income Tax payable on underwriting results or investment earnings. Any payments on account made by the Syndicate during the year have been included in the balance sheet under the heading ‘other debtors’.

No provision has been made for any other overseas tax payable by members on underwriting results.

L.Pension costs

W. R. Berkley Syndicate Limited (“WRBSL”) and W. R. Berkley London Staff, Limited (“WRBLSL”) operate defined contribution schemes. No pension contributions, relating to staff employed by WRBSL or WRBLSL, were paid directly by the Syndicate.

M.Profit commission

A profit commission is not charged by the Managing Agent.

N.Deposits with ceding undertakings

Deposits with ceding undertakings are funds held by Lloyd’s Europe on behalf of the Syndicate to settle Part VII claims. These funds are held at amortised cost in the balance sheet.

O.Deposits received from reinsurers

Deposits received from reinsurers includes other amounts received in advance from reinsurers against future claims under the Syndicate's reinsurance arrangements. These funds are held at amortised cost in the balance sheet.

P.Operating expenses

Where expenses are incurred by the Managing Agent/Service Company for the administration of the Syndicate, these expenses are apportioned appropriately based on type of expense. Expenses that are incurred jointly are apportioned between the Managing Agent/Service Company and the Syndicate on bases depending on the amount of work performed, resources used, and the volume of business transacted.

Q.Reinsurers’ commission and profit participation

Reinsurers’ commissions and profit participations, which include reinsurance profit commission and overriding commission, are treated as a contribution to expenses.

Notes to the financial statements – (forming part of the financial statements) (cont’d)

R.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.

Reinsurance debtors and creditors include amounts due to and from reinsurers. 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. Reinsurance debtors are measured at amortised cost less any provision for impairments. Reinsurance creditors are stated at amortised cost. Reinsurance debtor principally relates to claims recoveries where the underlying claim has been settled, and the recovery is due. Reinsurance creditors are primarily premiums payable for reinsurance contracts and are recognised as an expense when due.

Other debtors principally consist of amounts due from members and sundry debtors and are carried at amortised cost less any impairment losses.

Other creditors principally consist of amounts due to related syndicates and other related entities, profit commissions payable and other sundry payables. These are stated at amortised cost determined using the effective interest rate method.

S.Classification of insurance and reinsurance contracts

Insurance and reinsurance contracts are classified as insurance contracts where they transfer significant insurance risk. If a contract does not transfer significant insurance risk it is classified as a financial instrument. All of the Syndicates written contracts and purchased reinsurance contracts transfer significant insurance risk and therefore are recognised as insurance contracts.

4.Risk and capital management

Introduction and overview

This note presents information about the nature and extent of strategic, insurance, financial and operational risks to which the Managing Agent and the Syndicate are exposed, and the objectives and approach for managing risk and capital. For the purposes of this note the Managing Agent and the Syndicate either individually or collectively are hereinafter referred to as “the Managing Agent” and “the Syndicate”.

Risk Management Framework, Governance and Oversight

Risk management is a core tenet of the Managing Agent and in accordance with its culture and philosophy, the Syndicate’s individual and aggregate risk exposures are managed proactively with a strong balance sheet, including a high-quality investment portfolio. The Board is responsible for managing all risks facing the business. The Board sets risk appetite as part of the business planning and capital planning processes. A ‘three lines of defence’ governance model is in place that promotes and enables an effective system of risk management and internal control across the Syndicate. An enterprise risk management framework has been developed and implemented to provide the structure through which the Managing Agent identifies, assesses, monitors, measures, prioritises, reports and controls the risks posed to the achievement of strategic and business plan objectives. The enterprise risk management framework is articulated and set out in a comprehensive suite of policy, process and procedural documentation that is subject to a regular cycle of review and enhancement in accordance with business standards and needs; on-going changes in the risk environment; evolving good practice on risk management and governance; and applicable regulatory/supervisory requirements. The Managing Agent’s internal control system supports and enables the management of risks and the undertaking of appropriate related actions on a timely basis.

Notes to the financial statements – (forming part of the financial statements) (cont’d)

The Board delegates certain day-to-day management and oversight to its sub-committees. Further information is provided below about the activities of certain Board sub-committees in accordance with the purpose of this note.

Risk and Capital Committee

The Risk and Capital Committee (“RCC”) provides oversight of the enterprise risk management framework including the own risk and solvency assessment (“ORSA”) process and reporting on behalf of the Board. The RCC reviews and challenges risk profile information and escalates any issues to the Board. The RCC considers the adequacy of available capital and assesses capital requirements based on risk-based calculations and proposes relevant actions to be taken by the Board. The RCC is chaired by an independent non-executive Director.

Actuarial Reserving Committee

The Actuarial Reserving Committee (“ARC”) provides oversight of the process for the determination of GAAP reserves on behalf of the Board. The ARC is responsible for recommending appropriate policies, procedures, methodologies and assumptions to the Board for determining the appropriate levels of ultimate and earned reserves to be held by the Syndicate considering external actuarial and audit sign off where appropriate. The ARC is chaired by the WRBC Senior Vice President – Chief Corporate Actuary.

Audit Committee

The Audit Committee (“AC”) operates independently from other committees and makes recommendations directly to the Board. The AC reviews and considers internal audit and external audit reports on the effectiveness of internal control systems and financial reporting. The AC reviews and makes recommendations to the Board on audited financial statements and returns. The AC is chaired by an independent non-executive Director.

Risk Profile

The Managing Agent is focused on generating superior risk-adjusted returns over the insurance cycle based on an understanding of the amount of risk being assumed by the Syndicate and the proactive management of risk exposures. The Managing Agent manages strategic, insurance, financial and operational risks on an ongoing basis in keeping with its approved risk appetite and system of internal controls.

The principal risks and uncertainties facing the Syndicate are as follows:

—Strategic risk;

—Insurance risk including reserving risk;

—Financial risk including credit risk, liquidity risk and market risk;

—Operational risk including regulatory risk and Group Risk.

Strategic Risk

Strategic risk relates to possible risks, opportunities and challenges to the Managing Agent’s business model that may positively or adversely impact its ambition, and strategic goals, objectives and priorities. The underlying principle of the Managing Agent’s approach to managing strategic risk is that an effective Board properly considers and takes responsibility for the business plan and strategy and articulates a clear risk appetite to support the strategy and oversee an effective risk control framework.

Insurance Risk

Insurance risk is the risk of any deviation from anticipated risk in the Lloyd’s market, the Syndicate is subject to various risks and uncertainties, including but not limited to the cyclical nature of the property casualty industry; the impact of significant competition, including new alternative entrants to the industry; the long-tail and

Notes to the financial statements – (forming part of the financial statements) (cont’d)

potentially volatile nature of the insurance and reinsurance business; product demand and pricing; claims development and the process of estimating reserves; the effects of emerging claim and coverage issues; the uncertain nature of damage theories and loss amounts including claims for cyber security related risks; natural and man-made catastrophic losses, including as a result of terrorist activities; epidemics or pandemics and the potential impact of climate change on physical risks, which may alter the frequency and severity of catastrophe events or may affect non-catastrophe losses as long term weather patterns and sea levels change, and may also lead to potential climate-related legal liability risk exposures and climate related transition risk exposures.

The Managing Agent has established controls for managing its underwriting, pricing, exposure management, reinsurance, claims and reserving activities, processes and deliverables. Where insurance risk exposure moves outside of approved risk appetite, tolerances and limits; action will be taken to manage the insurance risk exposure back to within the approved risk appetite, tolerances and limits in accordance with the Managing Agent’s insurance risk policy.

Concentration of insurance risk

The following table provides an analysis of the geographical breakdown of gross premiums written by class of business:

1.Run-off classes comprise Accident and Health, Asset Protection, Aviation, Contingency, Consortia, Marine, Political Lines and Healthcare.

2024

Property

Engineering & CAR

Professional Indemnity

Financial Lines

Financial Institutions

Reinsurance

Berkley

Run-off classes

Total

$’000

$000

1,731

5,814

31,220

27,296

3,369

11,384

(5,446)

75,368

Europe

4,066

612

860

2,005

1,305

23,015

3,618

35,481

North America

267,873

64,414

3,577

367

469

45,376

(63)

382,013

Central America

4,826

1,189

274

531

249

2,320

9,397

South America

4,483

172

1,755

6,510

Australasia

10,425

25,560

6,383

275

1,192

12,197

(864)

55,172

Asia

2,767

2,657

155

469

11,366

2,669

292

20,408

Middle East

2,287

1,764

428

402

988

5,423

104

11,396

Africa

300

908

867

112

411

4,852

7,478

Total

298,758

103,090

42,947

32,239

7,768

11,370

104,550

2,501

603,223

Notes to the financial statements – (forming part of the financial statements) (cont’d)

The following table provides an analysis of the geographical breakdown of gross written premiums by class of business for the prior period. Classes have been re-presented to align to current class structure.

Sensitivity to insurance risk

The liabilities established could be significantly lower or higher than the ultimate cost of settling the actual claims arising as they are determined. This level of uncertainty varies between the classes of business and the nature of the risk being underwritten and can arise from developments in case reserving for large losses and catastrophes, or from changes in estimates in IBNR. A five per cent increase or decrease in the ultimate cost of settling claims arising is considered to be reasonably possible at the reporting date.4

A five percent increase or decrease in total claims liabilities would have the following effect on profit or loss before application of reinsurance:

2023

Property

Engineering & CAR

Professional Indemnity

Financial Lines

Financial Institutions

Reinsurance

Berkley

Run-off classes

Total

$’000

1,341

5,642

35,896

29,499

1,287

18,291

(3,700)

88,256

Europe

3,953

593

959

3,483

768

22,744

5,832

38,331

North America

257,613

53,986

1,930

160

26,959

1,581

342,302

Central America

4,636

300

256

814

141

2,334

256

8,738

South America

4,307

1,180

380

(2)

5,901

Australasia

10,021

18,762

5,627

6,776

41,278

Asia

2,658

2,105

136

557

11,095

2,023

169

18,743

Middle East

2,197

716

109

185

2,235

1,106

6,581

Africa

291

712

217

2,384

190

1,331

(381)

4,745

Total

287,017

83,996

45,090

36,918

2,743

11,095

83,073

4,941

554,875

2024

2023

5 per cent increase

5 per cent decrease

5 per cent increase

5 per cent decrease

$’000

Property

(9,123)

9,123

(7,340)

7,340

Engineering & CAR

(3,427)

3,427

(2,832)

2,832

Professional Indemnity

(3,626)

3,626

(3,198)

3,198

Financial Lines

(4,301)

4,301

(2,798)

2,798

Reinsurance

(782)

782

(738)

738

Berkley

(9,542)

9,542

(9,561)

9,561

Run-off

(2,818)

2,818

(3,787)

3,787

Total

(33,619)

33,619

(30,254)

30,254

Notes to the financial statements – (forming part of the financial statements) (cont’d)

Gross and Net claims development triangles

Please refer to Note 16

In the financial year there was prior accident year adverse development of claims incurred of $3.0 million (2023: $0.1 million favourable).

Credit risk (part of Financial risk)

Credit risk is the risk of loss as a result of the failure by another party or counterparty to meet its contractual obligations or its failure to perform them in a timely manner. The Syndicate is exposed to a variety of types of credit risk that include but are not limited to reinsurer credit risk; credit risk from intermediaries such as brokers and coverholders; credit risk from third party claims administrators; credit risk associated with the Syndicate’s investments; and credit risk from other third parties including banks. The Managing Agent has established controls to manage its credit risk and mitigate the potential impact of its credit risk exposures to counterparties arising out of its business activities. In circumstances where credit risk exposure moves outside of approved risk appetite, tolerances and limits, action will be taken to manage the credit risk exposure back to within the approved risk appetite, tolerances and limits in accordance with the Managing Agent’s credit risk policy.

Exposure to credit risk

The table below analyses the credit rating of the assets held at the reporting date:

Year 2024

AAA

$000

BBB

$000

Other

$000

Not rated $000

Total

$000

Shares and other variable yield securities and units in unit trusts

44,780

Debt securities and other fixed income securities

306,718

294,457

601,175

Syndicate loans to central fund

4,262

Other investments

17,839

3,946

3,952

3,120

8,401

1,712

38,970

Deposits with ceding undertakings

1,576

Reinsurers’ share of claims outstanding

33,042

213,654

8,565

255,261

Debtors arising out of direct insurance operations

140,319

Debtors arising out of reinsurance operations

79,105

(7,770)

5,578

76,913

Cash at bank and in hand

7,125

Other debtors and accrued interest

151,226

Total

324,557

410,550

266,003

3,120

8,401

308,976

1,321,607

Notes to the financial statements – (forming part of the financial statements) (cont’d)

Exposure to credit risk (Cont.)

Year 2023

AAA

$000

BBB

$000

Other

$000

Not rated $000

Total

$000

Shares and other variable yield securities and units in unit trusts

66,520

Debt securities and other fixed income securities

223,997

251,875

475,872

Syndicate loans to central fund

4,965

Other investments

22,128

3,073

3,218

2,848

1,892

10,977

44,136

Deposits with ceding undertakings

693

Reinsurers’ share of claims outstanding

20,263

231,258

6,505

258,027

Debtors arising out of direct insurance operations

134,562

134,563

Debtors arising out of reinsurance operations

22,731

27,840

3,740

54,312

Other debtors and accrued interest

145,023

Cash at bank and in hand

8,570

Total

246,125

297,942

342,371

2,848

1,892

301,500

1,192,679

Financial assets

An analysis of the carrying amounts of financial assets is presented in the table below:

Neither past due nor impaired assets

Past due but not impaired assets

Gross value of impaired assets

Impairment allowance

Total

2024

$000

Shares and other variable yield securities and units in unit trusts

44,780

Debt securities and other fixed income securities

601,174

Syndicate loans to central fund

4,262

Other investments

38,971

Deposits with ceding undertakings

1,576

Reinsurers' share of claims outstanding

255,261

Debtors arising out of direct insurance operations

82,743

57,576

140,319

Debtors arising out of reinsurance operations

76,913

Other debtors and accrued interest

151,226

Cash at bank and in hand

7,125

Total

1,264,031

57,576

1,321,607

There have been no impairments or write-offs of financial assets in the year (2023: Nil).

Notes to the financial statements – (forming part of the financial statements) (cont’d)

Financial assets (cont’d)

Neither past due nor impaired assets

Past due but not impaired assets

Gross value of impaired assets

Impairment allowance

Total

2023

$000

Shares and other variable yield securities and units in unit trusts

66,520

Debt securities and other fixed income securities

475,872

Syndicate loans to central fund

4,965

Other investments

44,136

Deposits with ceding undertakings

693

Reinsurers' share of claims outstanding

258,027

Debtors arising out of direct insurance operations

93,416

41,146

134,562

Debtors arising out of reinsurance operations

54,312

Other debtors and accrued interest

145,022

Cash at bank and in hand

8,570

Total

1,151,533

41,146

1,192,679

The table below sets out the age analysis of financial assets that are past due but not impaired at the balance sheet date:

Liquidity risk (part of Financial risk)

Liquidity risk is the risk that the Syndicate, although solvent, does not have sufficient readily realisable financial resources available, including liquid assets in the correct currency, to enable it to meet its obligations as they fall due, or can only meet them at excessive cost, in both normal market conditions and in severe but plausible stressed situations. The Syndicate is exposed to a variety of types of liquidity risk that include but are not limited

Past due but not impaired

0-3 months past due

3-6 months past due

6-12 months past due

Greater than 1 year past due

Total

2024

$000

Debtors arising out of direct insurance operations

23,673

15,920

6,493

11,490

57,576

Total

23,673

15,920

6,493

11,490

57,576

Past due but not impaired

0-3 months past due

3-6 months past due

6-12 months past due

Greater than 1 year past due

Total

2023

$000

Debtors arising out of direct insurance operations

12,975

10,754

6,207

11,209

41,146

Total

12,975

10,754

6,207

11,209

41,146

Notes to the financial statements – (forming part of the financial statements) (cont’d)

to funding liquidity risk; intraday liquidity risk; and the potential impact to liquidity following a large market-wide insurable event such as a severe natural catastrophe. The Managing Agent has established controls to mitigate the potential impact from liquidity risk exposures arising out of its business activities. In possible circumstances, where liquidity risk exposure moves outside of approved risk appetite, tolerances and limits, action will be taken to manage the liquidity risk exposure back to within the approved risk appetite, tolerances and limits in accordance with the Managing Agent’s liquidity risk policy.

Liquidity risk (part of Financial risk) (cont’d)

The maturity of liabilities and expected settlement profile for claims liabilities held at the reporting date is shown in the table below:

000

Undiscounted net cash flows

Year 2024

No maturity stated

$000

0-1 yrs

$000

1-3 yrs

$000

3-5 yrs

$000

>5 yrs

$000

Total $000

Claims outstanding

256,689

239,739

100,294

75,652

672,374

Creditors

159,690

Total

416,379

239,739

100,294

75,652

832,064

000

Undiscounted net cash flows

Year 2023

No maturity stated$000

0-1 yrs

$000

1-3 yrs

$000

3-5 yrs

$000

>5 yrs

$000

Total

$000

Claims outstanding

247,473

226,504

85,488

45,609

605,074

Creditors

154,794

Total

402,267

226,504

85,488

45,609

759.868

Market risk (part of Financial risk)

Market risk is the risk of fluctuations in the value of the Syndicate’s assets, the amount of its liabilities, or the income from its assets, as a result of market movements. Market movements include but are not limited to changes in interest rates, credit spreads, volatility of equities and stock market indices, foreign exchange rates, commodity prices, and inflation. Such macro-economic factors could also lead to possible systemic risk affecting the entire financial system. As set out above, there is also credit risk associated with the investment of the Syndicate’s assets. The Managing Agent has established controls to mitigate the potential impact of its market risk exposures arising out of its business activities. In possible circumstances, where market risk exposure moves outside of approved risk appetite, tolerances and limits, action will be taken to manage the market risk exposure back to within the approved risk appetite, tolerances and limits in accordance with the Managing Agent’s market risk policy.

Notes to the financial statements – (forming part of the financial statements) (cont’d)

The table below summarises the assets and liabilities at the reporting date split by currency:

2024

Sterling

US dollar

Euro

Canadian dollar

Australian dollar

Japanese Yen

Other

Total

$000

2024

$000

Investments

68,998

474,317

30,687

64,802

11,413

650,216

Reinsurers' share of technical provisions

43,886

222,283

34,460

16,164

23,513

340,307

Debtors

75,914

130,085

(8,136)

4,453

20,193

222,509

Other assets

12,361

5,675

2,458

12,057

15,121

47,672

Prepayments and accrued income

9,732

36,844

3,930

5,310

5,087

60,903

Total assets

210,891

869,205

63,398

102,786

75,327

1,321,607

Technical provisions

(208,401)

(586,562)

(66,187)

(58,582)

(56,706)

(976,438)

Creditors

(50,279)

(93,772)

(3,246)

(1,198)

(11,190)

(159,685)

Accruals and deferred income

(3,544)

(18,234)

(1,554)

(887)

(2,525)

(26,744)

Total liabilities

(262,224)

(698,567)

(70,988)

(60,667)

(70,421)

(1,162,867)

Total capital and reserves

(51,334)

170,637

(7,589)

42,119

4,906

158,740

Sterling

US dollar

Euro

Canadian dollar

Australian dollar

Japanese Yen

Other

Total

2023

$000

Investments

37,594

388,701

20,697

77,104

23,261

547,357

Reinsurers' share of technical provisions

33,423

237,168

26,414

13,590

20,726

331,321

Debtors

81,385

111,204

(11,076)

5,079

19,721

206,314

Other assets

16,670

4,929

1,430

14,059

16,308

53,397

Prepayments and accrued income

9,926

31,667

4,642

3,955

4,097

54,290

Total assets

178,999

773,669

42,108

113,787

84,114

1,192,679

Technical provisions

(195,183)

(536,913)

(54,431)

(54,783)

(50,386)

(891,696)

Creditors

(46,644)

(98,916)

(297)

(537)

(8,400)

(154,794)

Accruals and deferred income

(2,370)

(15,903)

(2,169)

(523)

(2,226)

(23,192)

Total liabilities

(244,198)

(651,732)

(56,898)

(55,843)

(61,012)

(1,069,684)

Total capital and reserves

(65,199)

121,936

(14,790)

57,944

23,102

122,994

Sensitivity analysis to market risks for financial instruments

Notes to the financial statements – (forming part of the financial statements) (cont’d)

Market risk (part of Financial risk) (cont’d)

An analysis of the Syndicate’s sensitivity to interest rate fluctuations is presented in the table below:

2024

Impact on results before tax

£000

2024

Impact on

members’

balances

£000

2023

Impact on results before tax

£000

2023

Impact on

members’

balances

£000

Interest rate risk

+ 50 basis points shift in yield curves

(6,295)

(5,021)

- 50 basis points shift in yield curves

6,446

5,140

Operational and Group Risk

Operational risk is the risk of loss arising from inadequate or failed internal processes, data, people or systems, or from certain external events including those that impact on an external relationship that can be found in almost all insurance, financial and non-financial activities. For the Managing Agent, operational risk exposures could include but are not limited to risks and uncertainties relating to the Managing Agent’s business activities and its ability to attract and retain key personnel and qualified employees; legislative and regulatory developments, including those related to business practices in the insurance industry; and potential difficulties with technology and/or cyber security breaches of its information technology systems and the information technology systems of its vendors and other third parties. The Managing Agent has established controls to mitigate the potential impact from operational risk exposures to its corporate governance arrangements, organisational and management structures and the day-to-day activities, processes and deliverables from its business functions. In possible circumstances, where operational risk exposure moves outside of approved risk appetite and tolerances, action will be taken to manage the operational risk exposure back to within the approved risk appetite and tolerances in accordance with the Managing Agent’s operational risk policy and operational resilience framework.

Group risk is the risk arising from being part of the wider WRBC group in addition to being part of the Lloyd’s market. WRBC group provides centralised capital and expertise, including investment and reinsurance management, corporate actuarial, financial, ERM, catastrophe modelling, IT and security, and legal support.

Other Risks including Non-Financial and Emerging Risks

The Managing Agent, like all other managing agents, is exposed to continuous change from the external environment that can include political, social, legal, regulatory, governance, economic, industry, and environmental changes. The Managing Agent continuously monitors changes in the external environment to ensure appropriate action is taken in alignment with the enterprise risk management framework and risk appetite.

In recent years, changing weather patterns and climatic conditions, such as global warming, appear to have contributed to the unpredictability, frequency and severity of natural disasters and created additional uncertainty as to future trends and exposures. There is a scientific consensus that global warming and other climate change are altering the frequency, severity and peril characteristics of catastrophic weather events, such as hurricanes, windstorms, floods and other natural disasters. Such changes make it more difficult for the Syndicate to predict and model catastrophic events, reducing the Syndicate’s ability to accurately price its exposure to such events and mitigate our risks. Any increase in the frequency or severity of natural disasters may adversely affect the Syndicate’s financial condition and results.

As a specialist (re)insurer in Lloyd's, the Managing Agent acknowledges that climate and environmental related change presents potential risks and opportunities that need to be carefully and thoughtfully considered and managed as an integrated part of its business strategy, and governance and risk management frameworks. The potential opportunities for the Syndicate include supporting its insureds in navigating a world of climate change-

Notes to the financial statements – (forming part of the financial statements) (cont’d)

influenced weather events and the transition to low-carbon economies. Climate-related physical, transition and liability risk exposures present potential financial and reputational risks that could impact the Syndicate.

The work undertaken to date to advance the Managing Agent’s approach to managing climate-related risks and opportunities in accordance with supervisory and regulatory expectations has also encompassed scenario analysis and developing metrics and measures. This development work will continue to evolve in 2025 and beyond in accordance with market-wide developments including but not limited to the Lloyd’s sustainability guidance for managing agents and the Bank of England Supervisory Statement SS3/19 ‘Enhancing banks’ and insurers’ approaches to managing the financial risks from climate change’.

Further climate risk related information for the Managing Agent as a business of WRBC is also available in the Group sustainability reports that are available on https://www.berkley.com. In preparing these reports, WRBC, on behalf of the Group, has undertaken a strategic assessment of its most important sustainability matters for further consideration. For example, the report provides information on the Managing Agent’s office space in the ‘The Scalpel’ at 52 Lime Street and the approach to minimise the environmental impact from the occupation of office space in the building.

Capital management

i.Capital framework at Lloyd’s

The Society of Lloyd’s (“Lloyd’s”) is a regulated undertaking and subject to supervision by the Prudential Regulatory Authority “PRA” under the Financial Services and Markets Act 2000, and in accordance with the Solvency II Framework.

Within this supervisory framework, Lloyd’s applies capital requirements at member level and centrally to ensure that Lloyd’s would comply with the Solvency II requirements, and beyond that to meet its own financial strength, licence and ratings objectives.

Although, as described below, Lloyd’s capital setting processes use a capital requirement set at syndicate level as a starting point, the requirement to meet Solvency II and Lloyd’s capital requirements apply at overall and member level only respectively, not at syndicate level. Accordingly, the capital requirement in respect of Syndicate 1967 is not disclosed in these financial statements.

ii.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 may be comprised of one or more underwriting members of Lloyd’s. Each member is liable for its own share of underwriting liabilities on the Syndicates on which it is participating but not other members’ shares. Accordingly, the capital requirements that Lloyd’s sets for each member operates on a similar basis.

Each member’s SCR shall thus be determined by the sum of the member’s share of the Syndicate SCR ‘to ultimate’. Where a member participates on more than one syndicate, a credit for diversification is provided to reflect the spread of risk, but consistent with determining an SCR which reflects the capital requirement to cover a 1 in 200 loss ‘to ultimate’ for that member. Over and above this, Lloyd’s applies a capital uplift to the member’s capital requirement, known as the Economic Capital Assessment (ECA). The purpose of this uplift, which is a Lloyd’s not a Solvency II requirement, is to meet Lloyd’s financial strength, licence and ratings objectives. The capital uplift applied for 2024 was 35% (2023: 35%) of the member’s SCR ‘to ultimate’.

Notes to the financial statements – (forming part of the financial statements) (cont’d)

iii.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 (FAL), assets held and managed within a Syndicate (Funds in Syndicate), and the member’s share of the members’ balances on each syndicate on which it participates.

Accordingly, all of the assets less liabilities of the Syndicate, as represented in the members’ balances reported on the balance sheet on page 16, represent resources available to meet members’ and Lloyd’s capital requirements.

5.Analysis of underwriting result

An analysis of the underwriting result before investment return is presented in the table below:

2024

Gross premiums written$000

Gross premiums earned$000

Gross claims incurred$000

Gross operating expenses$000

Reinsurance balance $000

Underwriting result $000

Direct insurance

Accident and health

286

215

(217)

(67)

Motor (third party liability)

(3)

(1)

Motor (other classes)

23,832

20,794

(6,289)

(7,248)

(2,572)

4,685

Marine, aviation, and transport

10,057

8,992

(2,323)

(2,926)

(1,664)

2,078

Fire and other damage to property

296,236

277,819

(129,431)

(71,409)

(38,621)

38,358

Third party liability

164,508

159,554

(87,588)

(50,693)

(17,227)

4,046

Miscellaneous

11,937

14,810

(11,249)

(4,626)

(735)

(1,800)

Total direct insurance

506,867

482,049

(236,669)

(137,123)

(60,885)

47,373

Reinsurance acceptances

96,355

97,835

(49,005)

(28,689)

(15,735)

4,406

Total

603,223

579,885

(285,673)

(165,812)

(76,623)

51,778

The below is an additional disclosure for Lloyd’s reporting purposes and is included to facilitate the classification of the above segments into the Lloyd’s aggregate classes of business:

2024

Gross premiums written$000

Gross premiums earned$000

Gross claims incurred$000

Gross operating expenses$000

Reinsurance balance $000

Underwriting result $000

Additional analysis

Fire and damage to property of which is:

Specialities

49,932

46,827

(21,816)

(12,036)

(6,510)

6,464

Energy

8,756

8,212

(3,826)

(2,111)

(1,142)

1,134

Notes to the financial statements – (forming part of the financial statements) (cont’d)

5.Analysis of underwriting result (Cont’d)

2023

Gross premiums written

$000

Gross premiums earned $000

Gross claims incurred $000

Gross operating expenses $000

Reinsurance balance $000

Underwriting result $000

Direct insurance

Accident and health

134

(168)

224

195

Motor (third party liability)

943

856

(353)

(300)

(103)

100

Motor (other classes)

7,604

6,896

(2,841)

(2,398)

(841)

816

Marine, aviation, and transport

1,023

906

(167)

(697)

Fire and other damage to property

261,559

221,790

(80,887)

(55,963)

(42,046)

42,894

Third party liability

133,810

142,326

(81,331)

(46,861)

(14,400)

(266)

Miscellaneous

35,540

50561

(1,445)

(12,938)

(30,758)

5,420

Total direct insurance

440,479

423,340

(166,890)

(119,325)

(87,901)

49,224

Reinsurance acceptances

114,396

100,287

(33,862)

(23,471)

(21,108)

21,846

Total

554,875

523,627

(200,752)

(142,796)

(109,009)

71,071

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:

2023

Gross premiums written

$000

Gross premiums earned $000

Gross claims incurred $000

Gross operating expenses $000

Reinsurance balance $000

Underwriting result $000

Additional analysis

Fire and damage to property of which is:

Specialities

44,186

37,468

(13,664)

(9,454)

(7,103)

7,247

Energy

6,717

5,696

(2,077)

(1,437)

(1,080)

1,102

The gross premiums written for direct insurance by underwriting location of risk is presented in the table below:

2024

$000

2023

$000

United Kingdom

75,368

88,256

European Union Member States

35,481

38,331

351,668

316,235

Rest of the world

140,706

112,053

Total gross premiums written

603,223

554,875

Notes to the financial statements – (forming part of the financial statements) (cont’d)

6.Net Operating expenses

2024

$000

2023

$000

Acquisition costs

107,964

93,890

Change in deferred acquisition costs

(2,127)

(6,080)

Administrative expenses

63,995

53,337

Reinsurance commissions and profit participation

(51,741)

(42,194)

Net operating expenses

118,092

98,953

Total commissions for direct insurance business for the year amounted to:

2024

$000

2023

$000

Total commission for direct insurance business

98,468

81,803

Administrative expenses include:

2024

$000

2023

$000

Auditors’ remuneration:

fees payable to the Syndicate’s auditor for the audit of these financial statements

480

429

fees payable to the Syndicate’s auditor and its associates in respect of other services pursuant to legislation

118

114

7.Key management personnel compensation

The directors of W. R. Berkley Syndicate Management Limited received the following aggregate remuneration charged to the Syndicate:

2024

$000

2023

$000

Executive Directors’ emoluments

1,410

1,458

Non-Executive Directors’ Fees

448

554

The active underwriters received the following aggregate remuneration charged to the Syndicate.

8.Staff numbers and costs

All staff are employed by affiliated service companies, WRBSL and WRBLSL, and are recharged to the Syndicate by way of the Secondment and Services Agreements and the Managing Agent’s Agreement. WRBSL and WRBLSL made total charges (including staff costs amongst other expenses) to the Managing Agent of $52.3 million (2023: $40.0 million) in accordance with the Secondment and Services Agreements. The Managing Agent made

2024

$000

2023

$000

Emoluments

649

1,271

Notes to the financial statements – (forming part of the financial statements) (cont’d)

a total charge to the Syndicate of $53.2 million (2023: $40.9 million) in accordance with the Managing Agent’s Agreement.

The average number of persons employed by WRBSL and WRBLSL and working for the Syndicate during the year, analysed by category, was as follows:

Number of employees

2024

2023

Administration and finance

Underwriting

Claims

Total

124

The following amounts were recharged by WRBSL and WRBLSL to the Syndicate in respect of payroll costs:

2024

$000

2023

$000

Wages and salaries

28,868

20,193

Pension and Social security costs

4,445

3,883

Total

33,313

24,076

9.Investment return

2024

$000

2023

$000

Interest and similar income

From financial assets designated at fair value through profit or loss

Interest and similar income

15,921

11,750

Gains on the realisation of investments

3,125

Losses on the realisation of investments

(1,686)

Unrealised gains on investments

7,799

13,503

Investment management expenses

(629)

(497)

Total investment return

26,216

23,070

The investment return was wholly allocated to the technical account

10.Distribution and open years of account

A distribution to WRBC Corporate Member Limited of $37.3m will be proposed in relation to the closing year of account 2022.

The table below shows the current reporting year result (total comprehensive income/(loss)) of the years of account remaining open after the three-year period:

2024

$000

2023

$000

2021

(3,147)

2022

2,124

46,365

2023

82,168

45,025

2024

(4,584)

Notes to the financial statements – (forming part of the financial statements) (cont’d)

11.Financial investments

Carrying value

Cost

2024

$000

2023

$000

2024

$000

2023

$000

Shares and other variable yield securities and units in unit trusts

44,780

66,520

44,780

66,520

Debt securities and other fixed income securities

601,174

475,871

593,459

475,679

Syndicate loans to central fund

4,262

4,966

4,262

4,966

Other investments

1,576

693

1,576

693

Total financial investments

651,792

548,050

644,077

547,858

The table below presents an analysis of financial investments by their measurement classification:

2024

$000

2023

$000

Financial assets measured at fair value through profit or loss

651,792

548,050

Total financial investments

651,792

548,050

The Syndicate classifies its financial instruments held at fair value in its balance sheet using a fair value hierarchy based on the inputs used in the valuation techniques as follows:

•Level 1 – financial assets that are measured by reference to published quotes in an active market. A financial instrument is regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service or regulatory agency and those prices represent actual and regularly occurring market transactions on an arm’s length basis.

•Level 2 – financial assets measured using a valuation technique based on assumptions that are supported by prices from observable current market transactions. For example, assets for which pricing is obtained via pricing services but where prices have not been determined in an active market, financial assets with fair values based on broker quotes, investments in private equity funds with fair values obtained via fund managers and assets that are valued using the Syndicate’s own models whereby the significant inputs into the assumptions are market observable.

•Level 3 – financial assets measured using a valuation technique (model) based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data. Therefore, unobservable inputs reflect the Syndicate's own assumptions about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk). These inputs are developed based on the best information available, which might include the Syndicate’s own data.

Notes to the financial statements – (forming part of the financial statements) (cont’d)

11.Financial investments (cont’d)

The table below analyses financial instruments held at fair value in the Syndicate’s balance sheet at the reporting date by its level in the fair value hierarchy:

2024

Level 1

$000

Level 2

$000

Level 3

$000

Assets held at amortised cost

Total

$000

Shares and other variable yield securities and units in unit trusts

44,780

Debt securities and other fixed income securities

601,174

Syndicate loans to central fund

4,262

Other investments

38,971

Total financial investments

684,925

4,262

689,187

Derivative liabilities

Total

684,925

4,262

689,187

2023

Level 1

$000

Level 2

$000

Level 3

$000

Assets held at amortised cost

Total

$000

Shares and other variable yield securities and units in unit trusts

66,520

Debt securities and other fixed income securities

475,871

Syndicate loans to central fund

4,966

Other investments

44,136

Total financial investments

586,527

4,966

591,493

Derivative liabilities

Total

586,527

4,966

591,493

Substantially all of the Company’s fixed maturity securities are deemed as Level 2 and were priced by independent pricing services. The prices provided by the independent pricing services are estimated based on observable market data in active markets utilizing pricing models and processes, which may include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, sector groupings, matrix pricing and reference data. The pricing services may prioritize inputs differently on any given day for any security based on market conditions, and not all inputs are available for each security evaluation on any given day. The pricing services used by the Company have indicated that they will only produce an estimate of fair value if objectively verifiable information is available. The determination of whether markets are active or inactive is based upon the volume and level of activity for a particular asset class. The Company reviews the prices provided by pricing services for reasonableness and periodically performs independent price tests of a sample of securities to ensure proper valuation.

If prices from independent pricing services are not available for fixed maturity securities, the Company estimates the fair value. For Level 2 securities, the Company utilizes pricing models and processes which may include benchmark yields, sector groupings, matrix pricing, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, bids, offers and reference data. Where broker quotes are used, the Company generally requests

Notes to the financial statements – (forming part of the financial statements) (cont’d)

11.Financial investments (cont’d)

two or more quotes and sets a price within the range of quotes received based on its assessment of the credibility of the quote and its own evaluation of the security. The Company generally does not adjust quotes received from brokers. For securities traded only in private negotiations, the Company determines fair value based primarily on the cost of such securities, which is adjusted to reflect prices of recent placements of securities of the same issuer, financial projections, credit quality and business developments of the issuer and other relevant information.

For Level 3 securities, the Company generally uses a discounted cash flow model to estimate the fair value of fixed maturity securities. The cash flow models are based upon assumptions as to prevailing credit spreads, interest rate and interest rate volatility, time to maturity and subordination levels. Projected cash flows are discounted at rates that are adjusted to reflect illiquidity, where appropriate.

12.Debtors arising out of direct insurance operations

2024

$000

2023

$000

Due within one year

140,297

134,515

Due after one year

Total

140,319

134,562

13.Debtors arising out of reinsurance operations

2024

$000

2023

$000

Due within one year

76,197

54,267

Due after one year

Total

76,242

54,312

14.Other debtors

2024

$000

2023

$000

Other related party balances (non-syndicate)

1,673

8,695

Other

4,275

8,745

Total

5,948

17,440

15.Deferred acquisition costs

The table below shows changes in deferred acquisition costs assets from the beginning of the period to the end of the period:

2024

2023

Gross

$000

Reinsurance

$000

Net

$000

Gross

$000

Reinsurance

$000

Net

$000

Balance at 1 January

49,681

(22,819)

26,862

44,369

(24,215)

20,154

Incurred deferred acquisition costs

107,964

51,741

56,223

93,889

(42,194)

51,695

Amortised deferred acquisition costs

(101,817)

47,720

(54,096)

(89,332)

43,884

(45,448)

Foreign exchange movements

1,190

(1,093)

755

(294)

461

Balance at 31 December

54,639

(26,744)

27,894

49,681

(22,819)

26,862

Notes to the financial statements – (forming part of the financial statements) (cont’d)

16.Claims development

The following tables illustrate the development of the estimates of earned ultimate cumulative claims incurred, including claims notified and IBNR, for each successive underwriting year, illustrating how amounts estimated have changed from the first estimates made.

As these tables are on an underwriting year basis, there is an apparent large increase from amounts reported for the end of the underwriting year to one year later as a large proportion of premiums are earned in the year of account’s second year of development.

Balances have been translated at exchange rates prevailing at 31 December 2024 in all cases.

Gross:

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

Total

Pure underwriting year

$000

Estimate of gross claims at end of underwriting year

51,847

63,150

102,861

59,072

64,585

212,015

127,024

150,049

94,679

152,216

1,077,498

one year later

101,835

150,860

174,754

137,745

261,016

407,738

260,717

256,601

214,618

1,965,884

two years later

111,672

169,931

190,079

154,896

268,461

451,261

256,599

263,926

1,866,825

three years later

111,406

172,247

207,272

160,954

258,887

425,670

238,909

1,575,346

four years later

106,011

193,711

213,147

168,042

256,231

429,240

1,366,472

five years later

107,927

191,069

220,092

182,004

263,449

964,541

six years later

111,155

191,527

225,112

189,101

716,895

seven years later

111,973

199,177

225,289

536,439

eight years later

111,857

201,513

313,370

nine years later

108,677

Estimate of gross claims reserves

108,677

201,513

225,289

189,101

263,449

429,240

238,909

263,926

214,618

152,216

2,286,937

Provision in respect of prior years

Less net claims paid

(106,717)

(191,463)

(202,893)

(150,532)

(237,603)

(381,375)

(162,067)

(127,833)

(48,931)

(11,767)

(1,621,180)

Gross claims reserve

1,960

10,051

22.396

38,569

25,847

47,865

76,842

136,093

165,686

140,448

665,757

Notes to the financial statements – (forming part of the financial statements) (cont’d)

16.Claims development (cont’d)

Net:

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

Total

Pure underwriting year

$000

Estimate of net claims

at end of underwriting year

49,783

57,342

64,835

40,714

46,118

71,608

76,359

94,579

65,198

109,323

675,859

one year later

96,381

116,581

112,070

89,320

130,563

154,112

168,986

168,588

151,303

1,187,904

two years later

104,742

130,215

117,431

95,115

124,448

162,538

177,904

179,390

1,091,784

three years later

104,900

125,501

122,057

96,304

103,664

155,084

173,789

881,299

four years later

100,592

128,508

122,908

99,514

103,853

158,317

713,692

five years later

100,414

129,230

128,059

107,297

107,599

572,599

six years later

99,979

128,122

125,922

108,274

462,297

seven years later

100,354

131,041

124,419

355,814

eight years later

100,470

131,290

231,760

nine years later

99,531

Estimate of net claims reserves

99,531

131,290

124,419

108,274

107,599

158,317

173,789

179,390

151,303

109,323

1,343,236

Provision in respect of prior years

Less net claims paid

(97,809)

(125,986)

(117,978)

(93,877)

(94,288)

(129,229)

(120,439)

(100,653)

(44,485)

(5,043)

(929,789)

Net claims reserve

1,722

5,304

6,442

14,397

13,311

29,088

53,350

78,737

106,817

104,279

413,447

17.Technical provisions

The table below shows changes in the insurance contract liabilities and assets from the beginning of the period to the end of the period.

2024

2023

Gross provisions

$000

Reinsurance

assets

$000

Net

$000

Gross provisions

$000

Reinsurance

assets

$000

Net

$000

Claims outstanding

Balance at 1 January

605,074

(258,027)

347,047

587,621

(271,465)

316,156

Claims paid during the year

(205,921)

71,299

(134,622)

(193,413)

63,822

(129,591)

Expected cost of current year claims

270,263

(60,966)

209,297

179,544

(27,175)

152,369

Change in estimates of prior year provisions

15,410

(12,361)

3,049

21,121

(21,272)

(151)

Foreign exchange movements

(12,451)

4,794

(7,657)

10,115

(1,851)

8,264

Balance at 31 December

672,374

(255,261)

417,114

605,074

(258,028)

347,046

Notes to the financial statements – (forming part of the financial statements) (cont’d)

17.Technical provisions (cont’d)

2024

2023

Gross provisions

$000

Reinsurance

assets

$000

Net

$000

Gross provisions

$000

Reinsurance

assets

$000

Net

$000

Unearned premiums

Balance at 1 January

286,624

(73,294)

213,330

250,815

(84,177)

166,638

Premiums written during the year

603,223

(208,872)

394,351

554,875

(191,747)

363,128

Premiums earned during the year

(579,885)

197,669

(382,216)

(523,627)

201,385

(322,242)

Foreign exchange movements

(5,898)

(549)

(6,446)

4,561

1,244

5,805

Balance at 31 December

304,064

(85,046)

219,018

286,624

(73,294)

213,330

Refer to Note 4 for the sensitivity analysis performed over the value of insurance liabilities, disclosed in the accounts, to potential movements in the assumptions applied within the technical provisions.

18.Creditors arising out of direct insurance operations

2024

$000

2023

$000

Due within one year

(3,800)

(2,696)

Total

(3,800)

(2,696)

19.Creditors arising out of reinsurance operations

2024

$000

2023

$000

Due within one year

(145,463)

(128,480)

Total

(145,463)

(128,480)

20.Other creditors

2024

$000

2023

$000

Profit commissions payable

(10,361)

(16,622)

Other liabilities

(61)

(6,996)

Total

(10,422)

(23,618)

Notes to the financial statements – (forming part of the financial statements) (cont’d)

21.Cash and cash equivalents

2024

$000

2023

$000

Cash at bank and in hand

7,125

8,570

Total cash and cash equivalents

7,125

8,570

22.Analysis of net debt

At 1 January 2024

Cash flows

Acquired

Fair value and exchange movements

Non-cash changes

At 31 December 2024

$000

Cash and cash equivalents

8.570

116,969

(124,548)

1,362

4,771

7,125

Total

8,570

116,969

(124,548)

1,362

4,771

7,125

23.Related parties

The Syndicate is managed by the Managing Agent under the terms of a Lloyd’s Managing Agent’s Agreement. A Managing Agent’s fee equal to 0.15% of the stamp capacity of the current underwriting year (2023: 0.15%) plus costs under the terms of the Secondment and Services Agreements (see below) is charged in the current financial year and payable by the Syndicate to the Managing Agent.

Under the terms of the Secondment and Services Agreements the affiliated companies, WRBSL and WRBLSL, provides staff and facilities for the operation of the Syndicate and the Managing Agent. A fee, which equates to costs plus a margin of 6% is charged in the current financial year and payable by the Managing Agent to WRBSL and WRBLSL. The fees charged were $53.1 million (2023: $40.9 million).

Investments are managed by an affiliated company, Berkley Dean & Company, Inc., under the Investment Management Agreement.

The provision of computer and data processing services are provided to the Syndicate and the Managing Agent by an affiliated company, Berkley Technology Services LLC, pursuant to the Master Services Agreement. Fees are charged on a time and materials basis and settled by WRBSL and recharged to the Syndicate.

Certain centralised services are provided by an affiliated company, WRBC Services, Limited, under the Services Agreement. Fees are chargeable on a time and materials basis and settled by WRBSL on behalf of the Syndicate.

All the above charges are considered to have been made on an “arm’s length” basis as set out in the contractual terms and are in the course of normal market conditions.

The Syndicate writes certain international business, classified as “Berkley” business, written on a coverholder basis or on a referral basis with certain affiliated companies within WRBC. The total amount of gross premium written in the year was $3.2 million (2023: $3.1 million).

The Syndicate cedes certain risks to BIC pursuant to the terms of certain reinsurance agreements. For the year ended 31 December 2024, total written premiums ceded to BIC were $123.9 million (2023: $113.8 million) and total recoveries were $37.6 million (2023: $32.8 million).

Notes to the financial statements – (forming part of the financial statements) (cont’d)

24.Off-balance sheet items

The Syndicate has not been party to any arrangement, which is not reflected in its balance sheet, where material risks and benefits arise for the Syndicate.

25.Foreign exchange rates

The following currency exchange rates have been used for principal foreign currency transactions:

2024

2023

Start of period rate

End of period

rate

Average

rate

Start of period rate

End of period rate

Average

rate

Sterling

0.78

0.80

0.78

0.83

0.78

0.81

Euro

0.91

0.97

0.92

0.94

0.91

0.93

US dollar

1.00

Canadian dollar

1.32

1.44

1.36

1.35

1.32

1.35

Australian dollar

1.47

1.62

1.51

1.47

1.51

Japanese Yen

140.98

157.16

150.71

131.94

140.98

139.81

26.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. FAL is 100% provided by WRBC Corporate Member Limited, an indirect wholly owned subsidiary of WRBC.

The level of FAL that Lloyd’s requires a member to maintain is determined by Lloyd’s and is based on PRA requirements and resource criteria as described in the Capital Management section of Note 4. Since FAL is not

under the management of the Managing Agent, no amount has been shown in these annual accounts by way of such capital resources. However, the Managing Agent is able to make a call on the members’ FAL to meet liquidity requirements or to settle losses.