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Report and Syndicate Annual Accounts 2023 | c
Cover to come
Contents
Section 1: Syndicate 1200 Report and Syndicate Annual Accounts
Directors and Advisors
2
Report of the Directors of the Managing Agent
3
Statement of Managing Agent’s Responsibilities
9
Report of the Independent Auditor
10
Statement of profit or loss and other comprehensive income
13
Statement of Financial Position
14
Statement of Changes in Members’ Balances
15
Statement of Cash Flows
15
Notes to the Financial Statements
16
Section 2: Syndicate 1200 Underwriting Year Accounts
Report of the Directors of the Managing Agent
50
Statement of Managing Agent’s Responsibilities
51
Report of the Independent Auditor
52
2022
Year of Account:
Income Statement
55
Statement of Financial Position
56
Statement of Changes in Members’ Balances
57
Statement of Cash Flows
57
Notes to the Underwriting Year Accounts
58
Section 1:
Syndicate 1200
Section 1:
Syndicate 1200
Report and Syndicate Annual Accounts
Directors and Advisors
2 | WESTFIELD SPECIALTY > SYNDICATE 1200
MANAGING AGENT’S REGISTERED OFFICE
Floor 36
22 Bishopsgate
London EC2N 4BQ
MANAGING AGENT’S REGISTERED NUMBER
03768610
DIRECTORS
DB Duclos (Chairman)
D Argyle
S Chandaria
JE England
GP Evans
JP Fox
H-J Guenther
JA Kuhn
EJ Largent III
DA Lehane
J Zora
SYNDICATE
Westfield Specialty Syndicate 1200
ACTIVE UNDERWRITER
J England
BANKERS
Barclays Bank Plc
1 Churchill Place
London E14 5HP
INVESTMENT MANAGERS
Conning Asset Management Ltd
24 Monument Street
London EC3R 8AJ
AUDITORS
KPMG LLP
15 Canada Square
Canary Wharf
London E14 5GL
Report of the Directors of the Managing Agent
Report and Syndicate Annual Accounts 2023 | 3
The Directors of the Managing Agent present their report for the
year ended 31 December 2024.
REPORTING BASIS
These Syndicate annual accounts are prepared using the annual
basis of accounting, as required by Statutory Instrument 1950 of
2008, the Insurance Accounts Directive (Lloyd’s Syndicate and
Aggregate Accounts) Regulations 2008. The underwriting results
have been determined on an annual accounting basis.
Separate underwriting year accounts, prepared on the three-year
funded basis, show the cumulative result for the closed 2022 year
of account, and are set out on pages 51 to 70.
PRINCIPAL ACTIVITY AND REVIEW OF THE BUSINESS
The principal activity of the business is that of underwriting general
insurance risks, conducted through the Lloyd’s market in the
United Kingdom on behalf of the members of Syndicate 1200.
CALENDAR YEAR RESULTS
The table below sets out the calendar year results of Syndicate 1200:
2024
£000
2023
£000
Gross written premium
653,538
582,433
Total comprehensive income
35,951
61,862
Loss ratio %
52.9
48.2
Expense ratio %
40.7
39.6
Combined ratio %
93.6
87.8
UNDERWRITING YEARS OF ACCOUNT SUMMARY
The tables below show Syndicate 1200’s actual (A) results for the closed 2022 year of account and the forecast (F) results for open years of
account 2023 and 2024:
Year of account summary
2024 F*
£000
2023 F
£000
2022 A
£000
Stamp capacity
550,000
550,000
500,000
Stamp premium income
491,399
465,444
469,186
Stamp utilisation
89.3%
84.6%
93.8%
Gross written premium
658,609
570,997
621,076
Profit
–
51,416
41,401
Return on stamp
–
9.3%
8.3%
* A formal forecast range for the 2024 year of account will be released at the time of publishing results for the 15 months to 31 March 2025.
Report of the Directors of the Managing Agent
4 | WESTFIELD SPECIALTY > SYNDICATE 1200
2022 YEAR OF ACCOUNT – CLOSING YEAR
We are pleased to report a profit for the 2022 closed
year of account with a return on capacity of 8.3% and a profit of
£41.4m. This is an improvement on the forecast result last year
end of £40.1m an 8.0% projected return on stamp.
We expected the favourable underwriting environment
to continue into 2022, although rate increases varied in strength
by individual line of business.
Despite this expected increasing rate environment, we held
capacity at £500m as we had taken the decision to reduce volatility
by exiting certain property lines.
The recent trend of climate related losses continued into 2022
with market losses above the 5-year average. Notable events
included Hurricane Ian, Winter storm Elliott and Hawaii wildfires.
For the third year in a row underlying attritional losses have
continued to develop within our expectations.
2023 YEAR OF ACCOUNT
The favourable underwriting environment continued into the 2023
underwriting year, with rate increases varying in strength by
individual line of business.
Given another year of expected rate increases we increased
capacity to £550m.
However, following the acquisition of the Agency by Westfield the
decision was taken to exit the Bermuda Property D&F class and as
such it was expected that we would not meet the increased
capacity limit for the year.
2023 was also the year where the reinsurance market finally
hardened particularly in property. The impact of this property
hardening was mitigated by the decision described above to exit
Bermuda D&F Property further reducing the volatility of the
Syndicate.
The 2023 calendar year saw market losses below the 5-year
average with events related to severe regional storms rather than
major US Hurricanes.
Underlying attritional loss development has continued to be within
our expectations.
2024 YEAR OF ACCOUNT
The underwriting environment remained positive although to
varying degrees across the business. However, as the year
progressed momentum has flattened with negative pressures
emerging across most lines.
The syndicate introduced three new lines of business for the 2024
year being Property Direct & Facultative, Management Liability
and Financial Institutions.
Reinsurance market conditions were still robust going into 2024.
Given the increased cost to purchase reinsurance we decided where
appropriate to increase our participation in the underlying insurance
risk for certain third party placed excess of loss reinsurance
contracts.
Notable events for the year were US landfall Hurricanes Helene
and Milton and the Baltimore bridge incident.
We continued to see underlying attritional losses develop within
our expectations.
The syndicate continues to underwrite judiciously taking
advantage of rate rises to grow selectively whilst remaining
disciplined in areas where rates are inadequate.
Report and Syndicate Annual Accounts 2024 | 5
The Syndicate’s gross written premium income by class of business comprises:
Year of account
2024 F
%
2023 F
%
2022 A
%
Short tail
Marine Cargo
4.8
5.0
4.9
Yachts & Hull
–
–
0.1
Offshore Energy
3.9
6.1
5.4
Renewable Energy
1.1
0.2
0.1
Power Outage
0.9
0.8
2.4
Personal Accident
3.2
3.8
4.0
Property Facultative
11.1
0.2
15.7
REO & Force Placed
7.8
7.4
5.2
Contingency
–
–
0.2
Political Violence and War
6.9
8.5
4.7
Marine Re
6.1
7.0
3.0
45.8
39.0
45.7
Report of the Directors of the Managing Agent
6 | WESTFIELD SPECIALTY > SYNDICATE 1200
Year of account
2024 F
%
2023 F
%
2022 A
%
Longer-tail
Cyber
–
–
0.9
Professional Indemnity
12.5
14.9
12.5
Directors and Officers
3.6
3.9
5.7
Financial Institutions
1.6
–
–
Management Liability
0.7
–
–
General Liability
10.2
11.2
9.9
International Casualty Treaty – Liability
6.4
8.9
6.8
International Casualty Treaty – Motor
–
–
2.0
Medical Malpractice
2.4
2.7
2.0
Marine Liability
8.3
8.4
6.3
Political Risks and Contract Frustration
8.5
11.0
8.2
54.2
61.0
54.3
100.0
100.0
100.0
The Syndicate’s gross written premium income by geographical region comprises:
Year of account
2024 F
%
2023 F
%
2022 A
%
North America
43.4
39.0
39.3
Caribbean and Latin America
2.3
2.0
10.6
UK
10.8
14.6
14.1
Rest of Europe
10.4
10.4
7.9
Oceania
5.4
8.2
8.3
Rest of the world
27.7
25.8
19.8
Total
100.0
100.0
100.0
REINSURANCE PROGRAMME PURCHASE
Westfield Specialty purchases reinsurance to assist in achieving its strategic objectives by managing risk aggregation and improving the return
on capital of the Syndicate as a whole. The use of proportional and excess of loss protection varies by class depending on the characteristics
and performance of the line of business. The 2024 reinsurance strategy remained in line with 2023 focusing on further reducing the ceded
margin whilst maintaining the Syndicate’s risk profile within appetite. The Syndicate continued to place the reinsurance programme with high
quality reinsurers; 100% (2023: 99%) with Tier 1 reinsurers rated A- to AAA by Standard & Poor’s.
Report and Syndicate Annual Accounts 2024 | 7
INVESTMENTS
Allocation of investments is conservative and is predominantly in
cash and fixed interest securities of high credit quality with little
exposure to volatile asset classes. This satisfies the Syndicate’s
liquidity requirements in respect of routine claim and expense
payments. In addition, Lloyd’s centrally manages various overseas
funds and deposits on behalf of the Syndicate. However, by far the
largest element of the Syndicate’s funds 92.2% (2023: 77.0%) is
held in fixed interest portfolios that are managed by Conning
Investment Management Ltd which therefore has a dominant
influence on the overall investment return. All investments are
managed within risk constraints and duration, liquidity and credit
limits (average must be A/A2 or above) are approved by the Board
of Directors of the Managing Agent. The investment benchmarks
set for the fixed income portfolios are predominantly a
combination of the Barclays 1-3 year government and corporate
indices and the investment manager’s performance is compared
to these benchmarks.
The following table shows the investment yield for
the portfolios actively managed by the Syndicate’s
investment managers.
INVESTMENT YIELD
2024
%
2023
%
United States dollars
4.5
4.9
Canadian dollars
5.4
5.0
FOREIGN EXCHANGE EXPOSURE POLICY
The aim of our policy is to manage foreign exchange volatility
within appetite. To achieve this, we aim to match our assets and
liabilities in currency. It is Syndicate policy to holds its surplus
assets (profits) in US Dollars. The Syndicate manages its FX
exposure through a hedging programme consisting of FX forward
contracts to eliminate imbalances resulting from regulatory
requirements.
PRINCIPAL RISKS AND UNCERTAINTIES
Note 25 in the notes to the financial statements provides an
analysis of the key insurance and financial risks to which the
Syndicate is exposed.
RESEARCH AND DEVELOPMENT
The Syndicate has not participated in any research and
development activity during the period.
DONATIONS
Charitable donations during the year amounted to £nil (2023: £nil).
OUTLOOK
We expect market conditions to be more challenging in 2025 than
in previous years with a negative rating environment across most
lines, however this downward momentum is from a period of
historic highs. Underwriting focus will be on rate adequacy for
each line of business which continues our focus on underwriting
profit and not growth in written premiums. We will continue to
target specific areas where we believe that we can obtain an
adequate return and will exit areas where we do not believe long
term profitability can be achieved. We will continue to operate
with absolute focus in executing our underwriting plans as we
focus on continued underwriting profitability.
Report of the Directors of the Managing Agent
8 | WESTFIELD SPECIALTY > SYNDICATE 1200
DIRECTORS AND OFFICERS SERVING IN THE YEAR
The directors of the Managing Agent, who served during the year ended 31 December 2024 and to the date of this report, were:
Directors and officers
D B Duclos (independent non-executive chairman)
D Argyle
S Chandaria (independent non-executive)
JE England
Appointed 25 April 2024
GP Evans
J P Fox (independent non-executive)
H-J Guenther (independent non-executive)
JA Kuhn
EJ Largent III
D A Lehane (independent non-executive)
J Zora
T Mills (company secretary)
SYNDICATE AUDITOR
KPMG LLP has indicated its willingness to continue in the office of
syndicate auditor.
DISCLOSURE OF INFORMATION TO AUDITOR
The directors who held office at the date of approval of this
directors’ report confirm that, so far as they are individually aware,
there is no relevant audit information of which the syndicate’s
auditor is unaware; and each director has taken all steps that he or
she ought to have taken as a director to make himself or herself
aware of any relevant audit information, and to establish that the
syndicate’s auditor is aware of that information.
ANNUAL GENERAL MEETING
The directors do not propose to hold an annual general meeting
for the Syndicate. If any members’ agent or direct corporate
supporter of the Syndicate wishes to meet with them, the
directors will be happy to do so.
Approved by the Board of Westfield Specialty Managing Agency
Ltd and signed on its behalf:
GP Evans
Chief Executive
5 March 2025
Statement of Managing Agent’s Responsibilities
Report and Syndicate Annual Accounts 2023 | 9
The Managing Agent is responsible for preparing the annual report
and the Syndicate annual accounts in accordance with applicable
law and regulations and in accordance with Sections 1 and 5 of the
Syndicate Accounts Instructions Version 2.0 issued by Lloyd’s, as
modified by the Syndicate Accounts Frequently Asked Questions
Version 1.1 dated 18 February 2025 issued by Lloyd’s.
The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate
Accounts) Regulations 2008 (“the 2008 Regulations”) requires the
Managing Agent to prepare Syndicate annual accounts at 31
December each year, in accordance with United Kingdom
Generally Accepted Accounting Practice (United Kingdom
Accounting Standards and applicable law), which give a true and
fair view of the state of affairs of the Syndicate and of its profit or
loss for that year.
In preparing these Syndicate annual accounts, the Managing Agent
is required to:
• select suitable accounting policies, and apply them consistently;
• make judgements and estimates that are reasonable
and prudent;
• present information, including accounting policies, in a manner
that provides relevant, reliable, comparable and
understandable information;
• provide additional disclosures when compliance with the
specific requirements in applicable law and regulations is
insufficient to enable users to understand the impact of
particular transactions, other events and conditions on the
Syndicate’s financial position and financial performance;
• state whether applicable UK Accounting Standards have been
followed, subject to any material departures disclosed and
explained in the Syndicate annual accounts;
• prepare the Syndicate annual accounts on the basis that the
Syndicate will continue to write future business unless it is
inappropriate to do so; and
• prepare and review the iXBRL tagging that has been applied to
the Syndicate Accounts in accordance with the instructions
issued by Lloyd’s, including designing, implementing and
maintaining systems, processes and internal controls to result
in tagging that is free from material non-compliance with the
instructions issued by Lloyd’s, whether due to fraud or error.
The Managing Agent is responsible for keeping proper accounting
records which disclose with reasonable accuracy at any time the
financial position of the Syndicate and enable it to ensure that the
Syndicate annual accounts comply with the 2008 Regulations.
It is also responsible for safeguarding the assets of the Syndicate
and hence for taking reasonable steps for prevention and
detection of fraud and other irregularities.
The Managing Agent is responsible for the maintenance and
integrity of the corporate and financial information relating to the
Syndicate included on the Managing Agent’s website. Legislation in
the United Kingdom governing the preparation and dissemination
of financial information may differ from legislation in
other jurisdictions.
Report of the Independent Auditor
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SYNDICATE 1200
10 | WESTFIELD SPECIALTY > SYNDICATE 1200
OPINION
We have audited the Syndicate annual accounts of Syndicate 1200
for the year ended 31 December 2024 which comprise the
Statement of profit or loss and other comprehensive income,
Statement of Financial Position, 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 properly prepared in accordance with the
requirements of the Insurance Accounts Directive (Lloyd’s
Syndicate and Aggregate Accounts) Regulations 2008 and
Sections 1 and 5 of the Syndicate Accounts Instructions Version
2.0 issued by Lloyd’s, as modified by the Syndicate Accounts
Frequently Asked Questions Version 1.1 dated 18 February
2025 issued by Lloyd’s (together “the Syndicate Accounts
Instructions”).
BASIS FOR OPINION
We conducted our audit in accordance with International
Standards on Auditing (UK) (“ISAs (UK)”), applicable law, and,
under the terms of our engagement letter dated 21 July 2023 as
amended 25 February 2025, and the Syndicate Accounts
Instructions. Our responsibilities
are described below. We have fulfilled our ethical responsibilities
under, and are independent of the Syndicate in accordance with,
UK ethical requirements including the Financial Reporting Council
(“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 included:
• Enquiring of directors, the audit committee, internal audit,
head of compliance and inspection of policy documentation as
to the Syndicate high-level policies and procedures to prevent
and detect fraud, including the internal audit function, and the
Syndicate channel for “whistleblowing”, as well as whether
they have knowledge of any actual, suspected or alleged fraud.
• Reading Board, audit committee, risk & capital committee,
claims & reserving committee minutes.
• Considering remuneration incentive schemes and performance
targets for management and directors.
• Using analytical procedures to identify any unusual or
unexpected relationships.
Report and Syndicate Annual Accounts 2024 | 11
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, 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 identified fraud risks related to the valuation of claims
outstanding, specifically over incurred but not reported claims, and
the valuation of residual estimated premium debtors.
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 any posted by
Finance senior management, those posted to seldom used
accounts, and those containing key words; and
• Assessing whether the judgements made in making accounting
estimates are indicative of a potential bias.
Identifying and responding to risks of material misstatement
related to compliance with laws and regulations
We identified areas of laws and regulations that could reasonably
be expected to have a material effect on the Syndicate annual
accounts from our general commercial and sector experience and
through discussion with the directors and other management (as
required by auditing standards), and from inspection of the
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 Syndicate
annual accounts varies considerably.
Firstly, the Syndicate is subject to laws and regulations that directly
affect the Syndicate annual accounts including financial reporting
legislation (such as the Insurance Accounts Directive (Lloyd’s
Syndicate and Aggregate Accounts) Regulations 2008, and the
Lloyd’s Syndicate Accounts Instructions) and we assessed the
extent of compliance with these laws and regulations as part of
our procedures on the related Syndicate annual accounts items.
Secondly, the Syndicate is subject to many other laws and
regulations where the consequences of non-compliance could
have a material effect on amounts or disclosures in the Syndicate
annual accounts, 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 recognising the financial and
regulated nature of the Syndicate’s activities. Auditing standards
limit the required audit procedures to identify non-compliance
with these laws and regulations to enquiry of the directors and
other management and inspection of regulatory and legal
correspondence, if any. Therefore, if a breach of operational
regulations is not disclosed to us or evident from relevant
correspondence, an audit will not detect that breach.
Context of the ability of the audit to detect fraud or breaches
of law or regulation
Owing to the inherent limitations of an audit, there is an
unavoidable risk that we may not have detected some material
misstatements in the Syndicate annual accounts, even though we
have properly planned and performed our audit in accordance
with auditing standards. For example, the further removed non-
compliance with laws and regulations is from the events and
transactions reflected in the Syndicate annual accounts, the less
likely the inherently limited procedures required by auditing
standards would identify it.
In addition, as with any audit, there remained a higher risk of non-
detection of fraud, as these may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of
internal controls. Our audit procedures are designed to detect
material misstatement. We are not responsible for preventing
non-compliance or fraud and cannot be expected to detect non-
compliance with all laws and regulations.
Report of the Independent Auditor
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SYNDICATE 1200
12 | WESTFIELD SPECIALTY > SYNDICATE 1200
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 9, the
Directors of the Managing Agent are responsible for: the
preparation of the Syndicate annual accounts in accordance with
the requirements of the Insurance Accounts Directive (Lloyd’s
Syndicate and Aggregate Accounts) Regulations 2008 and the
Syndicate Accounts Instructions, and for being satisfied that they
give a true and fair view; such internal control as they determine is
necessary to enable the preparation of Syndicate annual 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 Directors of the Managing Agent are required, under the
Syndicate Accounts Instructions, to include these financial
statements within a document to which XBRL tagging has been
applied. This auditor’s report provides no assurance over whether
the XBRL tagged document has been prepared in accordance with
those requirements.
THE PURPOSE OF OUR AUDIT WORK AND TO WHOM
WE OWE OUR RESPONSIBILITIES
This report is made solely to the Syndicate’s members, as a body,
in accordance with the Insurance Accounts Directive (Lloyd’s
Syndicate and Aggregate Accounts) Regulations 2008 and the
terms of our engagement letter by the Managing Agent. Our audit
work has been undertaken so that we might state to the
Syndicate’s members those matters we are required to state to
them in an auditor’s report and the further matters we are
required to state to them in accordance with the terms agreed
with the Managing Agent and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume
responsibility to anyone other than the Syndicate and the
Syndicate’s members, as a body, for our audit work, for this report,
or for the opinions we have formed.
Shaun Gealy
(Senior statutory auditor)
for and on behalf of KPMG LLP, Statutory Auditor
Chartered Accountants
15 Canada Square
London
E14 5GL
5 March 2025
Statement of profit or loss and other comprehensive
income
Year ended 31 December 20 24
Report and Syndicate Annual Accounts 2024 | 13
Note
2024
£000
2023
£000
Technical account – general business
Earned premiums, net of reinsurance
Gross premiums written
2, 4
Outward reinsurance premiums
4
(336,374 )
(133,598 )
Net premiums written
Change in the provision for unearned premiums
– Gross amount
2, 4
(61,610 )
– Reinsurers’ share
4
(21,491 )
Change in the net provision for unearned premiums
(11,843 )
Earned premiums, net of reinsurance
Allocated investment return transferred from the non-technical account
Claims incurred, net of reinsurance
Claims paid
– Gross amount
3
(161,852 )
(172,304 )
– Reinsurers’ share
3
Net claims paid
(94,701 )
(108,124 )
Change in the provision for claims
– Gross amount
3
(158,435 )
(94,834 )
– Reinsurers’ share
3
(7,765 )
Change in the net provision for claims
(81,547 )
(102,599 )
Claims incurred, net of reinsurance
(176,248 )
(210,723 )
Net operating expenses
6
(135,710 )
(172,900 )
Balance on the technical account for general business
Non-technical account
Balance on the technical account for general business
Investment income
9
Realised (losses)/gains on investments
9
(49 )
Unrealised gains on investments
9
Investment expenses and charges
9
(340 )
(241 )
Total investment return
9
Allocated investment return transferred to the technical account for general business
9
(11,973 )
(12,402 )
Profit/(loss) on exchange
(3,909 )
Profit for the financial year
Other comprehensive income
Currency translation differences
Total comprehensive income for the year
16
All items relate only to continuing operations
Statement of Financial Position
at 31 December 2024
14 | WESTFIELD SPECIALTY > SYNDICATE 1200
| Note | 2024 £000 | 2023 £000 | |
| Investments | |||
| Financial investments at fair value through profit or loss | 10 | ||
| Deposits with ceding undertakings | |||
| Total investments | |||
| Reinsurers’ share of technical provisions | |||
| Provision for unearned premiums | 4 | | |
| Claims outstanding | 3 | | |
| Debtors | |||
| Debtors arising out of direct insurance operations | 11 | | |
| Debtors arising out of reinsurance operations | 12 | ||
| Other debtors | 13 | ||
| Cash and other assets | |||
| Cash at bank and in hand | 15 | ||
| Other assets | 10, 14 | | |
| Prepayments and accrued income | |||
| Deferred acquisition costs | 5 | | |
| Total prepayments and accrued income | |||
| Total assets | |||
| Members’ balances and liabilities | |||
| Members’ balances | 16 | ||
| Total capital and reserves | |||
| Technical provisions | |||
| Provision for unearned premiums | 4 | | |
| Claims outstanding | 3 | | |
| Creditors | |||
| Creditors arising out of direct insurance operations | 17 | ||
| Creditors arising out of reinsurance operations | 18 | | |
| Other creditors including taxation and social security | 19 | ||
| Total Creditors | |||
| Accruals and deferred income | |||
| Total liabilities | |||
| Total members’ balances and liabilities |
Approved by the Board of Westfield Specialty Managing Agency Ltd on 5 March 2025 and signed on its behalf by:
GP Evans
Director
D Argyle
Director
Statement of Changes in Members’ Balances
Year ended 31 December 2024
Report and Syndicate Annual Accounts 2024 | 15
2024
£000
2023
£000
Members’ balances brought forward at 1 January
(5,604 )
Total comprehensive income for the year
Payment of profits to members’ personal reserve funds
(25,022 )
(15,145 )
Members’ agents’ fees
(11 )
Members’ balances carried forward at 31 December
Members participate on Syndicates by years of account and their ultimate results, assets and liabilities are assessed on policies incepting in
that year of account for their membership of a particular year.
Statement of Cash Flows
Year ended 31 December 2024
Cash flows from operating activities
Note
2024
£000
2023
£000
Profit for the financial year
Increase/(decrease) in gross technical provisions
(259,285 )
(Increase)/decrease in reinsurers’ share of gross technical provisions
(154,480 )
(Decrease)/increase in debtors
(31,820 )
Increase/(decrease) in creditors
(189,632 )
Investment return
(11,973 )
(12,402 )
Movements in other liabilities/(assets)
(10,266 )
Foreign exchange
Net cash inflow/(outflow) from operating activities
(86,194 )
Investing activities
Investment income received
Purchases of debt and equity instruments
(394,847 )
(263,347 )
Sales of debt and equity instruments
Net cash (outflow)/inflow from investing activities
(148,211 )
Financing activities
Distribution of profit
16
(25,022 )
(15,145 )
Net cash flow from financing activities
(25,022 )
(15,145 )
Net increase/(decrease) in cash and cash equivalents
(27,993 )
Cash and cash equivalents at 1 January
Exchange differences on opening cash
(1,496 )
(4,130 )
Cash and cash equivalents at 31 December
15
Notes to the Financial Statements
Year ended 31 December 2024
16 | WESTFIELD SPECIALTY > SYNDICATE 1200
1. ACCOUNTING POLICIES STATEMENT
OF COMPLIANCE
The financial statements have been prepared in accordance with
the Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate
Accounts) Regulations 2008, applicable Accounting Standards in
the United Kingdom and the Republic of Ireland, including
Financial Reporting Standard 102 (FRS 102), Financial Reporting
Standard 103 (FRS 103) in relation to insurance contracts, and the
Lloyd’s Syndicate Accounts Instructions Version 2.0 as modified by
the Frequently Asked Questions Version 1.1 issued by Lloyd’s.
The financial statements are prepared under the historical cost
convention except for certain financial instruments which are
measured at fair value.
BASIS OF PREPARATION
The financial statements for the year ended 31 December 2024
were approved for issue by the Board of Directors on 5 March
2025.
Having considered the solvency and liquidity position of the
Syndicate, the directors of the Managing Agent consider it
appropriate to prepare the accounts on a going concern basis.
The financial statements are prepared in sterling which is the
presentational currency of the Syndicate and rounded to nearest
thousand. The functional currency of the Syndicate is US dollars. The
functional currency was changed from sterling to US dollars from 1
January 2024 to reflect the principal currency in which the Syndicate
operates.
As permitted by FRS 103 the Syndicate continues to apply the
existing accounting policies that were applied prior to this standard
for its insurance contracts. The Syndicate annual accounts have
been prepared on the basis that the Syndicate will continue to
write future business unless it is inappropriate to do so.
During 2024, Lloyd’s introduced changes to the syndicate accounts
process to rationalise and standardise financial reporting across the
market. As a result, the presentation of certain comparative
information has been revisited to ensure consistency with current year
presentation and compliance with the Lloyd’s Syndicate Accounts
instructions. For example, to align with Lloyd’s reporting requirements
whilst maintaining FRS102 compliance, certain items have been
aggregated or disaggregated within the financial statements and
related notes.
JUDGEMENT AND KEY SOURCES OF ESTIMATION
AND UNCERTAINTY
Premiums written
Estimates are made at the date of inception for premiums written
through third parties, including amounts due to the Syndicate not yet
notified. The main assumption underlying these estimates is that past
premium development can be used to project future premium
development.
Claims incurred and reinsurers’ share
The provision for claims outstanding comprises amounts set aside
for claims notified and claims incurred but not yet reported (IBNR).
The amount of IBNR, which is based on statistical techniques of
estimation applied by the Syndicate’s in-house actuaries and reserving
team, is reviewed by external consulting actuaries. These statistical
techniques generally involve projecting, from past experience, the
development of claims over time to form a view of the likely ultimate
claims to be expected for more recent underwriting, having regard to
variations in the business accepted and the underlying terms and
conditions. The provision for claims also includes amounts for internal
and external claims handling costs. For the most recent years, where a
higher degree of volatility may arise from projections, estimates may
partly be based on rating and other models of the business accepted,
and assessments of underwriting conditions.
Large loss case reserves are determined through careful analysis of
the individual claim, often with the advice of legal advisers.
Property catastrophe claims such as earthquake or hurricane losses
can take several months, or years to develop as adjusters visit
damaged property and agree claim valuations. Until all the claims are
settled it requires an analysis of the area damaged, contracts exposed
and the use of models to simulate the loss against the portfolio of
exposure in order to arrive at an estimate of ultimate loss to the
syndicate. There is uncertainty over the adequacy of information and
modelling of major losses for a period of several months after a
catastrophe loss. Consideration should also be taken of factors which
may influence the size of claims such as increased inflation or a change
in law.
Report and Syndicate Annual Accounts 2024 | 17
The reinsurers’ share of provisions for claims is based on calculated
amounts of outstanding claims and projections for IBNR, net of
estimated irrecoverable amounts. The Syndicate will evaluate the
reinsurance programme in place for the class of business, the claims
experience for the year, and the security rating of the reinsurance
companies involved. The Syndicate uses a number of statistical
techniques to assist in these estimates.
Hence the two most critical assumptions for claims provisions are that
the past is a reasonable predictor of future claims development, and
that rating and other models used, including pricing models for recent
business, are fair indicators of the ultimate claims that will be incurred.
The uncertainty of such estimations generally decreases with the
time that has elapsed since policy inception. In addition short tail
claims such as property, where claims are typically notified and
settled quickly, will normally have less uncertainty after a few
years than long tail risks, such as some liability business, where
it may be several years before claims are fully advised and settled.
Where disputes exist over coverage under policies, or the relevant
law governing a claim changes, uncertainty in the estimation of
outcomes may increase.
The assessment of these provisions can be the most subjective aspect
of an insurer’s accounts, and may result in greater uncertainty than
found within the financial statements of other businesses. The
directors of the Managing Agent consider that the provisions for gross
claims and related reinsurance recoveries are fairly stated on the basis
of the information currently available. However, ultimate liability can
be varied by further information and events and this may result in
significant adjustments to the provisions. Modifications to claims
provisions established in prior years are shown in the financial
statements for the period in which the adjustments are made.
Provisions are not discounted for investment earnings that may arise
on funds retained to meet future liabilities. The methods used, and the
estimates made, are reviewed regularly.
Fair value of financial assets
The Syndicate uses the following hierarchy for determining the fair
value of financial instruments by valuation technique:
a. Level 1: quoted (unadjusted) prices in active markets for
identical assets or liabilities.
b. Level 2: other techniques for which all inputs which have a
significant effect on the recorded fair value are observable,
either directly or indirectly.
c. Level 3: techniques which use inputs which have a significant
effect on the recorded fair value that are not based on
observable market data.
See Note 10 for details of financial instruments classified by fair
value hierarchy.
BASIS OF ACCOUNTING
Under the annual basis of accounting, the incurred cost of claims,
commission and related expenses are charged against the earned
proportion of premiums, net of reinsurance as follows:
Product classification
Insurance contracts are those contracts that transfer significant
insurance risk at the inception of the contract. Insurance risk is
transferred when an insurer agrees to compensate a policyholder
if a specified uncertain future event adversely affects the
policyholder. The significance of insurance risk is dependent on
both the probability of an insured event and the magnitude of its
potential effect.
Once a contract has been classified as an insurance contract, it
remains an insurance contract for the remainder of its lifetime,
even if the insurance risk reduces significantly during this period.
Notes to the Financial Statements
Year ended 31 December 2024
18 | WESTFIELD SPECIALTY > SYNDICATE 1200
1. ACCOUNTING POLICIES (CONTINUED)
Premiums written
Premiums written comprise premiums on contracts of insurance
incepted during the financial year and any adjustments made in
the year to estimates of premiums written in prior years.
Premiums are shown gross of commission payable and exclude
taxes and duties levied on them.
Unearned premiums
Written premium is earned according to the risk profile of
the policy. Unearned premiums represent the proportion of
premiums written in the year that relate to unexpired terms of
policies in force at the reporting period end date, calculated on the
basis of established earnings patterns or time apportionment as
appropriate.
Outward reinsurance premiums
Outward reinsurance premiums are accounted for on
an earned basis in the same accounting period as the premiums
for the related direct or inwards business being reinsured, except
Losses Occurring During Treaty reinsurance which is earned from
the start of the reinsurance policy over the life of the policy.
Claims incurred and reinsurers’ share
Gross claims incurred comprise claims and settlement expenses
(both internal and external) occurring during the year, and the
movement in provision for outstanding claims and settlement
expenses brought forward. Allowance is made for the cost of
claims incurred by the reporting period end date but not reported
until after the reporting period end. Incurred claims outstanding
are reduced by anticipated salvage and other recoveries from third
parties.
Unexpired risks provision
A liability adequacy provision (the unexpired risks provision) is
made where the cost of claims and expenses arising after the end
of the financial year from contracts concluded before that date, is
expected to exceed the provision for unearned premiums, net of
deferred acquisition costs.
The assessment of whether a provision is necessary is made by
considering separately each category of business on the basis of
information available at the reporting date, after offsetting surpluses
and deficits arising on products which are managed together.
Investment income is taken into account in calculating the provision.
At 31 December 2024 and 31 December 2023 the Syndicate did
not have an unexpired risks provision.
Reinsurance assets
The Syndicate cedes insurance risk in the normal course of
business for all of its businesses. Reinsurance assets represent
balances due from reinsurance companies. Amounts recoverable
from reinsurers are estimated in a manner consistent with the
outstanding claims provision or settled claims associated with the
reinsurer’s policies and are in accordance with the related
reinsurance contract.
Reinsurance assets are reviewed for impairment at each reporting
date, or more frequently, when an indication of impairment arises
during the reporting year. Impairment occurs when there is
objective evidence as a result of an event that occurred after initial
recognition of the reinsurance asset that the Syndicate may not
receive all outstanding amounts due under the terms of the
contract and the event has a reliably measurable impact on the
amounts that the Syndicate will receive from the reinsurer. The
impairment loss is recorded in the income statement.
Gains or losses on buying reinsurance are recognised in the income
statement immediately at the date of purchase and are not
amortised. There were no such gains recognised in 2024 or 2023.
Reinsurance arrangements do not relieve the Syndicate from its
obligations to policyholders.
Net operating expenses (including acquisition costs)
Net operating expenses include acquisition costs and amounts
charged to members through the Syndicate.
Where expenses are incurred by or on behalf of the Managing Agent
for the administration of the managed Syndicate, they are apportioned
using methods appropriate to the type of expense. Expenses which are
incurred jointly for the Managing Agent and managed Syndicate are
apportioned between the Managing Agent and Syndicate on bases
dependant on the amount of work performed, resources used and the
volume of business transacted.
Acquisition costs, comprising commission and other costs related to
the acquisition of new insurance contracts are recognised by reference
to premium written. They are deferred to the extent that they are
attributable to and recoverable against premiums unearned at the
reporting period end date. All other operating expenses are accounted
for on an accruals basis.
Report and Syndicate Annual Accounts 2024 | 19
Profit commission
Profit commission within these financial statements is
charged at a rate of 15% on the first 15% of the return on stamp
and 20% thereafter. Profit commission is payable on distributed
results and is subject to the operation of a three year deficit clause.
Distribution of profits and collection of losses
Lloyd’s has regulations on solvency and the distribution of profits
and payment of losses between a Syndicate and its members.
Lloyd’s continues to require Syndicate membership to be on an
underwriting year basis, and profits and losses belong to members
according to their membership. Normally profits and losses are
transferred between a Syndicate and its members after results for
an underwriting year are finalised after 36 months. This period
may be extended if an underwriting year is placed in run-off. The
Syndicate may make earlier on account distributions or cash calls
according to the cash flow of that underwriting year, subject to
Lloyd’s regulations.
Foreign currencies
The financial statements are prepared in sterling which is the
presentational currency of the Syndicate. The functional currency of
the Syndicate is US dollars, having been changed from sterling to US
dollars from 1 January 2024 to reflect the shift to principal use of US
dollars over time, being the currency in which most premium is
written, most investments are held, and the home currency of the
Group’s ultimate owners and capital providers.
Transactions denominated in currencies other than the functional
currency are initially recorded in the functional currency at the
exchange rate ruling at the date of the transactions. Monetary
assets and liabilities (which include all assets and liabilities arising
from insurance contracts including unearned premiums and
deferred acquisition costs) denominated in foreign currencies are
translated into the functional currency at the exchange rate ruling
on the reporting date.
Non-monetary items that are measured in terms of historical cost
in a foreign currency are translated using the exchange rate as at
the date of the initial transaction and are not subsequently
restated. Non-monetary items denominated in a foreign currency,
measured at fair value are translated into the functional currency
using the exchange rate ruling at the date when the fair value
was determined.
All monetary and non-monetary assets are presented in sterling at
the exchange rate ruling on the reporting date.
Exchange differences are recorded in the non-technical account,
while translation differences from functional currency to
presentation currency are recorded in other comprehensive
income.
Exchange rates
The rates of exchange used in preparing the financial statements were:
2024
2023
Start of period
rate
End of period
rate
Average
rate
Start of period
rate
End of period
rate
Average
rate
Sterling
Euro
US dollar
Canadian dollar
Japanese yen
Australian dollar
Notes to the Financial Statements
Year ended 31 December 2024
20 | WESTFIELD SPECIALTY > SYNDICATE 1200
Financial investments
As permitted by FRS 102, the Syndicate has elected to apply the
recognition and measurement provisions of IAS 39 – Financial
Instruments (as adopted for use in the EU) to account for all of its
financial instruments.
The Syndicate classifies its financial investments as financial assets
at fair value through profit or loss.
The Syndicate’s documented investment strategy is to manage
financial investments acquired on a fair value basis.
All regular way purchases and sales of financial assets are
recognised on the trade date, i.e., the date on which the Syndicate
commits to purchase or sell the asset. Regular way purchases or
sales of financial assets require delivery of assets within the time
frame generally established by regulation or convention in the
market place.
Derivative financial instruments
The Syndicate uses derivatives in the form of forward foreign
currency contracts. Such derivative financial instruments are
initially recognised at fair value on the date that the derivative
contract is entered into and are subsequently re-measured at fair
value through the profit or loss at each reporting period end date.
The Syndicate has not used hedge accounting for any of its
derivatives.
Financial assets at fair value through profit or loss have two sub
categories namely financial assets held for trading and those
designated at fair value through profit or loss at inception.
Investments typically bought with the intention to sell in the near
future are classified as held for trading as are all derivatives,
including embedded derivatives, that are not designated as
hedging instruments. For investments designated as at fair value
through profit or loss, the following criteria must be met:
• The designation eliminates or significantly reduces the
inconsistent treatment that would otherwise arise from
measuring the assets or liabilities or recognising gains or losses
on a different basis; or
• The assets and liabilities are part of a group of financial assets,
financial liabilities or both which are managed and their
performance evaluated on a fair value basis, in accordance with
a documented risk management or investment strategy.
These investments are initially recorded at fair value. Subsequent
to initial recognition, these investments are
re-measured at fair value at each reporting date. Fair value
adjustments and realised gains and losses are recognised in the
income statement.
Overseas deposits
Overseas deposits are stated at market value as at the reporting
period end date.
Cash and cash equivalents
Cash and cash equivalents in the statement of financial position
comprise cash at bank and in hand and
short-term deposits with an original maturity date of three months
or less. For the purpose of the cash flow statement, cash and cash
equivalents consist of cash and cash equivalents as defined above,
net of outstanding bank overdrafts.
Investment return
Dividends are recognised when the investments to which they
relate are declared ‘ex-dividend’. Interest income is recognised on
a time proportionate basis taking into account effective interest
yield.
Unrealised and realised gains and losses on financial investments
are recognised based on the appropriate classification of financial
investments and are covered in detail under the accounting policy
for financial investments.
An allocation of actual investment return on investments
supporting the general insurance technical provisions and
associated members’ balance is made from the
non-technical account to the technical account. Investment return
related to non-insurance business and members’ balance is
attributed to the non-technical account. Investment return has
been wholly allocated to the technical account as all investments
relate to the technical account.
Taxation
Under Schedule 19 of the Finance Act 1993 managing agents are
not required to deduct basic rate income tax from trading income.
Managing agents can recover UK basic rate income tax deducted
from Syndicate investment income, and consequently any
distribution to members or 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 United States federal income tax
or Canadian 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 foreign taxes payable by
members on underwriting results.
Pension costs
Westfield Specialty Management Services Ltd is a service company
(a fellow group company of the Managing Agent) which operates a
defined contribution pension scheme. Pension contributions are
recharged to group companies and the Syndicate based on
employees’ time. The amounts allocated to the Syndicate for
employee time spent working on the Syndicate are included within
net operating expenses.
Report and Syndicate Annual Accounts 2024 | 21
2. SEGMENTAL ANALYSIS
An analysis of the underwriting result before investment return is set out 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
9,300
9,290
(4,865)
(3,225)
(913)
287
Marine, aviation and transport
53,080
48,573
(18,684)
(16,905)
(7,229)
5,755
Fire and other damage to property
113,679
92,766
(61,932)
(26,461)
(23,904)
(19,531)
Third party liability
179,307
174,967
(97,176)
(64,300)
13,844
27,335
Pecuniary loss
35,865
36,249
(14,008)
(8,079)
(16,541)
(2,379)
Total direct insurance
391,231
361,845
(196,665)
(118,970)
(34,743)
11,467
Reinsurance acceptances
262,307
230,083
(123,622)
(71,072)
(25,701)
9,688
Total
653,538
591,928
(320,287)
(190,042)
(60,444)
21,155
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 other damage to property of which is:
Specialties
–
–
–
–
–
–
Energy
13,586
16,014
(4,072)
(4,550)
(6,529)
863
Third party liability of which is:
Energy
–
–
–
–
–
–
Notes to the Financial Statements
Year ended 31 December 2024
22 | WESTFIELD SPECIALTY > SYNDICATE 1200
2. SEGMENTAL ANALYSIS (CONTINUED)
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
6,100
6,851
(4,688)
(2,532)
11
(358)
Marine, aviation and transport
44,567
40,224
(15,393)
(14,222)
(3,836)
6,773
Fire and other damage to property
62,012
66,967
(28,217)
(13,210)
(30,776)
(5,236)
Third party liability
172,044
175,996
(64,485)
(85,677)
(2,613)
23,221
Pecuniary loss
41,780
35,653
(8,040)
(6,340)
(13,600)
7,673
Total direct insurance
326,503
325,691
(120,823)
(121,981)
(50,814)
32,073
Reinsurance acceptances
255,930
266,390
(146,315)
(72,637)
(26,142)
21,296
Total
582,433
592,081
(267,138)
(194,618)
(76,957)
53,369
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 other damage to property of which is:
Specialties
–
–
–
–
–
–
Energy
20,946
21,181
(17,513)
(5,443)
(2,753)
(4,528)
Third party liability of which is:
Energy
–
–
–
–
–
–
Total commissions for direct insurance accounted for in the year amounted to £102,262k (2023: £99,200k).
No gains or losses were recognised in profit or loss during the year on buying reinsurance (2023: £nil).
All premiums written are for contracts with external customers and are concluded in the UK.
Analysis of gross premiums written by geographical area is shown below:
Gross premiums written
Gross premiums written
2024
£000
2024
%
2023
£000
2023
%
United States
302,890
46.3
247,862
42.6
United Kingdom
89,422
13.7
92,625
15.9
European Union Member States
62,648
9.6
60,770
10.4
Rest of the world
198,578
30.4
181,176
31.1
Total
653,538
100.0
582,433
100.0
Report and Syndicate Annual Accounts 2024 | 23
3. CLAIMS OUTSTANDING
Gross
£000
Reinsurers’
share
£000
Net
£000
At 1 January 2024
533,279
(156,323)
376,956
Claims incurred in current underwriting year
162,206
(66,949)
95,257
Claims incurred in prior underwriting years
158,080
(77,090)
80,990
Claims paid during the year
(161,852)
67,151
(94,701)
Foreign exchange
(3,922)
524
(3,398)
At 31 December 2024
687,791
(232,687)
455,104
Gross
£000
Reinsurers’
share
£000
Net
£000
At 1 January 2023
811,561
(419,737)
391,824
Unallocated loss adjustment expenses
(1,308)
1,308
–
Opening balance (adjusted)
810,253
(418,429)
391,824
Reserves transferred to Syndicate 3500 following RITC of 2020 & prior
(347,836)
243,477
(104,359)
Claims incurred in current underwriting year
109,375
(18,052)
91,323
Claims incurred in prior underwriting years
157,763
(38,363)
119,400
Claims paid during the year
(172,304)
64,180
(108,124)
Foreign exchange
(23,972)
10,864
(13,108)
At 31 December 2023
533,279
(156,323)
376,956
4. PROVISION FOR UNEARNED PREMIUMS
Gross
£000
Reinsurers’
share
£000
Net
£000
At 1 January 2024
288,008
(37,388)
250,620
Premiums written in the year
653,538
(336,374)
317,164
Premiums earned in the year
(591,928)
258,815
(333,113)
Foreign exchange
(2,857)
273
(2,584)
At 31 December 2024
346,761
(114,674)
232,087
Gross
£000
Reinsurers’
share
£000
Net
£000
At 1 January 2023
307,805
(60,543)
247,262
Premiums written in the year
582,433
(133,598)
448,835
Premiums earned in the year
(592,081)
155,089
(436,992)
Foreign exchange
(10,149)
1,664
(8,485)
At 31 December 2023
288,008
(37,388)
250,620
Notes to the Financial Statements
Year ended 31 December 2024
24 | WESTFIELD SPECIALTY > SYNDICATE 1200
5. DEFERRED ACQUISITION COSTS
Gross
£000
Reinsurers’
share
£000
Net
£000
At 1 January 2024
77,614
(7,523)
70,091
Incurred deferred acquisition costs
60,775
(21,591)
39,184
Amortised deferred acquisition costs
(46,368)
2,838
(43,530)
Foreign exchange
(872)
(9,084)
(9,956)
At 31 December 2024
91,149
(35,360)
55,789
Gross
£000
Reinsurers’
share
£000
Net
£000
At 1 January 2023
74,644
(12,799)
61,845
Incurred deferred acquisition costs
55,140
(3,303)
51,837
Amortised deferred acquisition costs
(49,577)
5,841
(43,736)
Foreign exchange
(2,593)
2,738
145
At 31 December 2023
77,614
(7,523)
70,091
6. NET OPERATING EXPENSES
2024
£000
2023
£000
Brokerage and commission
163,752
150,474
Other acquisition costs
11,818
17,467
Acquisition costs
175,570
167,941
Change in deferred acquisition costs
(14,407)
(5,563)
Administrative expenses
19,728
23,895
Members’ personal expenses
9,151
8,345
Reinsurance commissions and profit participations
(54,332)
(21,718)
Total
135,710
172,900
Total commissions for direct insurance business (included above)
102,262
99,246
Administrative expenses include:
Auditors’ remuneration consisting of audit of the Syndicate annual accounts
651
673
Other services pursuant to Regulations and Lloyd’s Byelaws
195
192
846
865
Members’ personal expenses:
Lloyd’s New Central Fund contributions
2,637
2,416
Lloyd’s subscriptions
2,689
2,518
Managing agent’s fees
3,300
3,300
Managing agent’s profit commission
525
111
Total
9,151
8,345
Report and Syndicate Annual Accounts 2024 | 25
7. EMPLOYEES
All staff are employed by Westfield Specialty Management Services Ltd (WSMS), a fellow group company of the Managing Agent. The
following amounts were recharged to the Syndicate as salary costs:
2024
£000
2023
£000
Wages and salaries
28,002
24,600
Social security costs
3,886
3,900
Pension costs
2,980
2,400
Other
1,215
1,300
36,083
32,200
Other costs include severance and redundancy payments and holiday pay.
The average number of full-time equivalent employees employed by WSMS but working for the Syndicate during the year was as follows:
2024
2023
Underwriting
81
71
Administration and finance
105
96
Claims
12
14
Investments
1
1
199
182
8. DIRECTORS’ AND ACTIVE UNDERWRITER’S EMOLUMENTS
The directors of Westfield Specialty Managing Agency Ltd received the following aggregate remuneration, charged to the Syndicate and
included within net operating expenses:
2024
£000
2023
£000
Directors’ emoluments
1,486
1,800
1,486
1,800
The aggregate remuneration paid to the active underwriter, charged as a Syndicate expense:
2024
£000
2023
£000
Emoluments
592
600
592
600
The above amounts exclude any benefits not recharged to the Syndicate. Amounts not recharged in calendar year 2023 included the active
underwriter charges in relation to options granted in the former group holding company, Argo Group International Holdings Ltd.
The active underwriter’s profit share remuneration is charged to Westfield Specialty Managing Agency Ltd.
Notes to the Financial Statements
Year ended 31 December 2024
26 | WESTFIELD SPECIALTY > SYNDICATE 1200
9. INVESTMENT RETURN
2024
£000
2023
£000
From financial assets designated at fair value through profit or loss
Income from investments
9,407
6,448
Other income
Gains on the realisation of investments
3,311
5,676
Losses on the realisation of investments
(3,360)
(1,982)
Total investment income
9,358
10,142
Unrealised gains on investments
3,062
4,599
Unrealised losses on investments
(107)
(2,098)
Investment expenses and charges
(340)
(241)
Total investment return
11,973
12,402
Average funds available for investment by currency
2024
£000
2023
£000
Sterling
13,230
11,500
Euro
11,209
5,500
United States dollars
319,313
246,400
Canadian dollars
118,641
123,300
Australian dollars
37,519
33,000
Japanese yen
2,750
800
Analysis of calendar year investment yield by currency
2024
%
2023
%
Sterling
(1.6)
0.4
United States dollars
2.1
3.4
Canadian dollars
3.8
2.6
Australian dollars
2.6
1.8
“Average fund” is the average of bank balances, overseas deposits and investments held at the end of each month during the calendar year.
For this purpose, investments are revalued at month-end market prices, which include accrued income where appropriate.
Report and Syndicate Annual Accounts 2024 | 27
10. FINANCIAL INVESTMENTS AT FAIR VALUE
Carrying
value
£000
Purchase
price
£000
2024
Designated at fair value through profit or loss
Shares and other variable yield securities and units in unit trusts
37,676
37,676
Debt securities and other fixed income securities
446,801
435,548
Participation in investment pools
5
5
Deposits with ceding undertakings
–
–
Total financial investments
484,482
473,229
2023
Designated at fair value through profit or loss
Shares and other variable yield securities and units in unit trusts
39,228
39,228
Debt securities and other fixed income securities
287,362
279,789
Participation in investment pools
5
5
Deposits with ceding undertakings
2,135
2,135
Total financial investments
328,730
321,157
Debt securities and other fixed income securities are all listed on recognised stock exchanges.
There have been no day 1 profits recognised in respect of financial instruments designated at fair value through profit or loss.
Notes to the Financial Statements
Year ended 31 December 2024
28 | WESTFIELD SPECIALTY > SYNDICATE 1200
10. FINANCIAL INVESTMENTS AT FAIR VALUE (CONTINUED)
The following table shows financial investments recorded at fair value analysed between the three levels in the fair value hierarchy.
Level 1
£000
Level 2
£000
Level 3
£000
Total
£000
31 December 2024
Shares and other variable yield securities and units in unit trusts
37,676
–
–
37,676
Debt securities and other fixed income securities
1,589
445,212
–
446,801
Participation in investment pools
–
5
–
5
Deposits with ceding undertakings
–
–
–
–
Other investments
3,072
51,998
–
55,070
Total assets
42,337
497,215
–
539,552
31 December 2023
Shares and other variable yield securities and units in unit trusts
39,228
–
–
39,228
Debt securities and other fixed income securities
1,332
286,030
–
287,362
Participation in investment pools
–
5
–
5
Deposits with ceding undertakings
2,135
–
–
2,135
Other investments
2,769
43,874
–
46,643
Total assets
45,464
329,909
–
375,373
Included in the level 1 category are 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 Syndicate, pricing service or regulatory agency and those prices represent actual and regularly occurring market transactions on an
arm’s length basis.
Included in the level 2 category are 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.
Included in the level 3 category, are 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.
Using Standard & Poor’s and Moody’s as rating sources, the credit ratings of the debt and other fixed income securities were:
2024
£000
2023
£000
AAA/Aaa
107,685
95,114
AA/Aa
174,784
103,611
A
135,796
70,453
BBB/Baa or lower
28,536
18,184
446,801
287,362
Report and Syndicate Annual Accounts 2024 | 29
The maturity bands of the bond holdings with Conning were:
2024
£000
2024
%
2023
£000
2023
%
Less than 1 year
39,014
8.7
35,601
12.4
1– 2 years
206,121
46.1
113,524
39.5
2– 3 years
176,180
39.5
116,887
40.7
3– 4 years
25,076
5.6
18,988
6.6
4–5 years
–
–
1,067
0.4
Over 5 years
410
0.1
1,295
0.4
446,801
100.0
287,362
100.0
The Syndicate’s fund managers at 31 December 2024 were:
Manager
Funds managed
Conning Asset Management Ltd
Sterling, Euro, US and Canadian dollar bonds
Western Asset Management Co. Ltd
US dollar liquid funds
Fiera Capital Corporation
US and Canadian liquid funds
11. DEBTORS ARISING OUT OF DIRECT INSURANCE OPERATIONS
2024
£000
2023
£000
Due within one year: intermediaries
281,734
262,630
12. DEBTORS ARISING OUT OF REINSURANCE OPERATIONS
2024
£000
2023
£000
Due within one year
30,380
28,825
Due after one year
4,852
–
35,232
28,825
13. OTHER DEBTORS
Due within one year:
2024
£000
2023
£000
Related party balances
7,284
624
Federal Income tax
2,566
1,102
9,850
1,726
Due after one year:
Recoverable taxes
5,262
5,408
15,112
7,134
Amounts due from members for fee advances made to members’ agents are included in members’ balances (see note 16).
Notes to the Financial Statements
Year ended 31 December 2024
30 | WESTFIELD SPECIALTY > SYNDICATE 1200
14. OTHER ASSETS
2024
£000
2023
£000
Overseas deposits in Australia
33,334
27,515
Overseas deposits in Illinois and Kentucky, USA
29
224
Overseas deposits in South Africa and other countries
21,707
18,904
55,070
46,643
Overseas deposits were placed as a condition of carrying on business in these territories.
15. CASH AND CASH EQUIVALENTS
2024
£000
2023
£000
Cash at bank and in hand
42,662
41,013
Short term deposits with financial institutions
37,676
39,228
80,338
80,241
Of the total cash and cash equivalents, the following amount was held in regulated bank accounts in overseas jurisdictions:
2024
£000
2023
£000
Total cash and cash equivalents held in regulated accounts in overseas jurisdictions
7,696
8,524
16. MEMBERS’ BALANCES
A distribution of £41,362 to members will be proposed in relation to the closing year of account (2022) (2023: £25,022k in relation to the
closing year of account (2021)).
2024
£000
2023
£000
Members’ balances brought forward at 1 January
41,102
(5,604)
Total comprehensive income for the year
35,951
61,862
Members’ agents’ fees
–
(11)
Transfers to members’ personal reserve funds
(25,022)
(15,145)
Members’ balances carried forward at 31 December
52,031
41,102
Members participate on Syndicates by years of account and their ultimate results, assets and liabilities are assessed on policies incepting in
that year of account for their membership of a particular year.
17. CREDITORS ARISING OUT OF DIRECT INSURANCE OPERATIONS
2024
£000
2023
£000
Due within one year: intermediaries
13,388
13,784
18. CREDITORS ARISING OUT OF REINSURANCE OPERATIONS
2024
£000
2023
£000
Due within one year
27,405
43,986
Due after one year
179,861
29,659
207,266
73,645
Report and Syndicate Annual Accounts 2024 | 31
19. OTHER CREDITORS INCLUDING TAXATION AND SOCIAL SECURITY
Due within one year:
2024
£000
2023
£000
Related party balances
–
6,158
Due to corporate members
430
432
Profit commission payable
525
111
Sundry creditors
99
19,044
Service company commission payable
784
934
Uncleared investment trades
1,193
1,495
3,031
28,174
Due after one year:
Funds withheld under whole account quota share reinsurance arrangements
6,398
–
9,429
28,174
20. EVENTS AFTER THE REPORTING PERIOD
The following amount will be transferred in sterling to members’ personal reserve funds during the second quarter of 2025:
2024
£000
2023
£000
2022 year of account
41,362
–
2021 year of account
–
25,022
41,362
25,022
21. ITEMS NOT REFLECTED IN THE STATEMENT OF FINANCIAL POSITION
At the balance sheet date, the Syndicate has not been party to an arrangement, which is not reflected in its statement of financial position,
where material risks and benefits arise for the Syndicate.
22. RELATED PARTIES
Lloyd’s market regulations require that a managing agent is responsible for employing the underwriting staff and managing the affairs of each
Syndicate at Lloyd’s on behalf of the Syndicate members. The Managing Agent of Syndicate 1200 is Westfield Specialty Managing Agency Ltd
(WSMA). The immediate parent company of WSMA is Westfield Specialty Ltd (WSL) which was acquired by Ohio Farmers Insurance Company
on 2 February 2023.
Funds at Lloyd’s (FAL) for the following members, whose capacity is shown below, is provided by the Ohio Farmers Insurance group, either
directly or via WSL.
Year of account
2023
2024
2025
£000
%
£000
%
£000
%
Westfield Specialty Capital (No. 604) Ltd
546,100
99.3
550,000
100.0
600,000
100.0
Nomina No 550 LLP
1,100
0.2
–
–
–
–
547,200
99.5
550,000
100.0
600,000
100.0
Notes to the Financial Statements
Year ended 31 December 2024
32 | WESTFIELD SPECIALTY > SYNDICATE 1200
22. RELATED PARTIES (CONTINUED)
FAL for the following member, whose capacity is shown below, is provided by trade insurers through funded limited liability 100% quota share
reinsurance contracts. The corporate member received commission of £4,100 (2023: £28,000) from the providers of these funded limited
liability quota share contracts to cover administrative costs.
Year of account
2022
2023
2024
2025
£000
%
£000
%
£000
%
£000
%
Westfield Specialty Capital (Epsilon)
Ltd
10,000
2.0
–
–
–
–
–
–
WSMA entered into transactions with the Syndicate as follows:
Members’ expenses include agent’s fees and profit commission payable to the Managing Agent, and subscriptions and central guarantee fund
contributions paid to Lloyd’s. These are charged on an underwriting year of account, rather than calendar year, basis. For the 2024
underwriting year of account, WSMA has charged an agent’s fee of 0.6% of capacity. When the year of account result is finalised, usually after
36 months, WSMA will charge a profit commission of 15% on the return on stamp for third party capital providers up to 15%, and 20% above
15% return on stamp (2024: as 2023), subject to the operation of a three year deficit clause. Within the financial statements for the 2024
calendar year, fees of £3.3m have been included in net operating expenses with £525k for profit commission. (2023: fees £3.3m and profit
commission £111k). At 31 December 2024 there were no unpaid fees (2023: £nil) due to be paid in future periods.
Westfield Specialty Management Services Ltd (“WSMS”) incurs a large proportion of the expenses incurred in operating the Syndicate and
recharges them to the Syndicate on a basis that reflects the Syndicate’s use of resources. The recharges are included in net operating
expenses, acquisition costs, claims incurred and investment expenses and charges. Included within the recharges are amounts relating to the
remuneration of directors of WSMA. The total amount recharged by the Managing Agent to the Syndicate during 2024 was £60.0m (2023:
£53.1m) excluding agent’s fees and profit commission.
At 31 December 2024 an amount of £nil was due to the Managing Agent from the Syndicate. At 31 December 2023 an amount of £nil was due
to the Managing Agent from the Syndicate. No interest is payable on this amount.
23. PENSION OBLIGATIONS
WSMS operates a defined contribution pension scheme for its employees including Syndicate staff. Pension contributions relating to Syndicate
staff are charged to the Syndicate and included within net operating expenses. The cost of the contributions made for the year was £3.0m
(2023: £2.4m) and there were no outstanding or prepaid contributions at the end of this year or the previous year.
24. WESTFIELD SPECIALTY DIRECT LTD
Westfield Specialty Direct Ltd (WSDL) is a 100 percent subsidiary of WSMA, set up to write small to medium size commercial liability risks. Any
profits or losses are paid to or reimbursed by the Syndicate. No directors or officers of the Managing Agent receive any remuneration or
benefits from WSDL.
2024
£000
2023
£000
Gross written premium booked through WSDL in year ended 31 December
836
500
Report and Syndicate Annual Accounts 2024 | 33
25. RISK MANAGEMENT
Governance framework
The primary objective of the Syndicate’s risk and financial management framework is to protect the Syndicate’s members from events that
hinder the sustainable achievement of financial performance objectives, including failing to exploit opportunities. Key management recognises
the critical importance of having efficient and effective risk management systems in place.
The Managing Agent has a well-established risk management function for the Syndicate with clear terms of reference from the board of
directors, its committees and the associated executive management committees. This is supplemented with a clear organisational structure
with documented delegated authorities and responsibilities from the board of directors to executive management committees and senior
managers. Lastly, a Syndicate policy framework which sets out the risk profiles for the Syndicate, risk management, control and business
conduct standards for the Syndicate’s operations has been put in place. Each policy has a member of senior management charged with
overseeing compliance with the policy throughout the Syndicate.
The board of directors approves the risk management policies and meets regularly to approve any commercial, regulatory and organisational
requirements of such policies. These policies define the identification of risk and its interpretation to ensure the appropriate quality and
diversification of assets, align underwriting and reinsurance strategy to the Syndicate goals, and specify reporting requirements. Significant
emphasis is placed on assessment and documentation of risks and controls, including the articulation of ‘risk appetite’. The Board sets risk
appetite annually as part of the Syndicate’s business planning and capital setting process. The risk management function is also responsible for
reviewing the Syndicate’s Own Risk and Solvency Assessment (‘ORSA’), recommending the assessment to the Board for approval.
Capital management objectives, policies and approach
Capital framework at Lloyd’s
The Society of Lloyd’s (Lloyd’s) is a regulated undertaking and subject to the supervision of the Prudential Regulation Authority (PRA) and the
Financial Conduct Authority (FCA) under the Financial Services and Markets Act 2000. Lloyd’s is subject to the Solvency II capital regime.
Within the supervisory framework, Lloyd’s applies capital requirements at member level and centrally to ensure that Lloyd’s complies with
Solvency II capital requirements, and beyond that to meet its own financial strength, licence and ratings objectives.
Although Lloyd’s capital setting processes use a capital requirement set at Syndicate level as a starting point, the requirement to meet
Solvency II and Lloyd’s capital requirements apply at overall and member level only respectively, not at Syndicate level. Accordingly the capital
requirement in respect of Syndicate 1200 is not disclosed in these financial statements.
Lloyd’s capital setting process
In order to meet Lloyd’s requirements, each Syndicate is required to calculate its Solvency Capital Requirement (SCR) for the prospective
underwriting year. This amount must be sufficient to cover a 1 in 200-year loss, reflecting uncertainty in the ultimate run-off of underwriting
liabilities (SCR ‘to ultimate’). The Syndicate must also calculate its SCR at the same confidence level but reflecting uncertainty over a one-year
time horizon (one year SCR) for Lloyd’s to use in meeting Solvency II requirements. The SCRs of each Syndicate are subject to review by Lloyd’s
and approval by the Lloyd’s Capital and Planning Group.
A Syndicate may be comprised of one or more underwriting members of Lloyd’s. Each member is liable for its own share of underwriting
liabilities on the Syndicate on which it participates but not other members’ shares. Accordingly, the capital requirement that Lloyd’s sets for
each member operates on a similar basis. Each member’s SCR is thus determined by the sum of the member’s share of the Syndicate SCR ‘to
ultimate’. Where a member participates on more than one Syndicate, a credit for diversification is provided to reflect the spread of risk, but
consistent with determining an SCR which reflects the capital requirement to cover a 1 in 200-year loss ‘to ultimate’ for that member. Over
and above this, Lloyd’s applies a capital uplift to the member’s capital requirement, known as the Economic Capital Assessment (ECA). The
purpose of this uplift, which is a Lloyd’s not a Solvency II requirement, is to meet Lloyd’s financial strength, licence and ratings objectives. The
capital uplift applied for 2024 was 35% of the member’s SCR ‘to ultimate’.
Notes to the Financial Statements
Year ended 31 December 2024
34 | WESTFIELD SPECIALTY > SYNDICATE 1200
25. RISK MANAGEMENT (CONTINUED)
Provision of capital by members
Each member may provide capital to meet its ECA either by assets held in trust by Lloyd’s specifically for that member (Funds at Lloyd’s (FAL)),
held within and managed within a Syndicate (funds in Syndicate) or as the member’s share of the members’ balances on each Syndicate on
which it participates.
Accordingly all of the assets less liabilities of the Syndicate, as represented in the members’ balances reported on the Statement of financial
position on page 14, represent resources available to meet members’ and Lloyd’s capital requirements.
Insurance risk
The principal risk the Syndicate faces under insurance contracts is that the actual claims and benefit payments or the timing thereof, differ
from expectations. This is influenced by the frequency of claims, severity of claims, actual benefits paid and subsequent development of
longer tail claims. Therefore, the objective of the Syndicate is to ensure that sufficient reserves are available to cover these liabilities.
The risk exposure is mitigated by diversification across a large portfolio of insurance contracts and geographical areas. The variability of risks is
also improved by careful selection and implementation of underwriting strategy guidelines, as well as the use of reinsurance arrangements.
The Syndicate purchases reinsurance as part of its risk mitigation programme. Reinsurance ceded is placed on both a proportional and non-
proportional basis. The majority of proportional reinsurance is quota-share reinsurance which is taken out to reduce the overall exposure to
certain classes of business. Non-proportional reinsurance is primarily excess-of-loss reinsurance designed to mitigate the Syndicate’s net
exposure to both catastrophic and large losses. Retention limits for the excess-of-loss reinsurance vary by product line and territory.
Amounts recoverable from reinsurers are estimated in a manner consistent with the outstanding claims provision and are in accordance with
the reinsurance contracts. Although the Syndicate has reinsurance arrangements, it is not relieved of its direct obligations to its policyholders
and thus a credit exposure exists with respect to ceded insurance, to the extent that any reinsurer is unable to meet its obligations assumed
under such reinsurance agreements. The Syndicate’s placement of reinsurance is diversified such that it is neither dependent on a single
reinsurer nor are the operations substantially dependent upon any single reinsurance contract.
The Syndicate principally issues the following types of general insurance contracts: accident and health, third-party liability, marine, fire,
pecuniary loss and peril. Risks usually cover twelve months duration.
The most significant risks arise from the impact of climate change on the frequency and severity of natural disasters and also terrorist
activities. For longer tail claims that take some years to settle, there is also inflation risk.
The above risk exposure is mitigated by diversification across a large portfolio of insurance contracts and geographical areas. The variability of
risks is improved by careful selection and implementation of underwriting strategies, which are designed to ensure that risks are diversified in
terms of type of risk and level of insured benefits. This is largely achieved through diversification across industry sectors and geography.
Furthermore, strict claim review policies to assess all new and ongoing claims, regular detailed review of claims handling procedures and
frequent investigation of possible fraudulent claims are all policies and procedures put in place to reduce the risk exposure of the Syndicate.
The Syndicate further enforces a policy of actively managing and promptly pursuing claims, in order to reduce its exposure to unpredictable
future developments that can negatively impact the business. Inflation risk is mitigated by taking expected inflation into account when
estimating insurance contract liabilities.
Report and Syndicate Annual Accounts 2024 | 35
Catastrophic events
The Syndicate has developed underwriting guidelines which limit the authority of the underwriting teams and limit exposure geographically
and by assured entities. The Syndicate models Realistic Disaster Scenarios (RDS) which provide an estimate of the effect on the Syndicate
results of an aggregation of the claims arising from a large range of disasters including those specified by Lloyd’s. The Syndicate uses a number
of modelling tools to monitor aggregation and to simulate catastrophe losses, which are used to measure the effectiveness of both the
underwriting guidelines to limit exposure to these scenarios and its reinsurance programmes.
The following, taken from recent submissions to Lloyd’s, illustrate the effect of RDS on the underwriting results:
Description of RDS as at 1 July 2024
Industry loss/
Event size
£bn
Gross loss to
Syndicate
£m
Net loss to
Syndicate
£m
Worldwide Property
1. North East US windstorm
64.0
12.7
8.2
2. Gulf of Mexico windstorm
93.3
44.6
27.2
3. Miami windstorm
103.5
45.1
25.0
4. Los Angeles earthquake
61.6
103.1
42.0
5. San Francisco earthquake
63.2
45.0
27.8
6. Japanese earthquake
9.2
2.4
1.6
Description of RDS as at 1 January 2024
Industry loss/
Event size
£bn
Gross loss to
Syndicate
£m
Net loss to
Syndicate
£m
Worldwide Property
1. North East US windstorm
65.2
11.1
5.8
2. Gulf of Mexico windstorm
95.0
18.7
11.1
3. Miami windstorm
105.5
17.7
11.4
4. Los Angeles earthquake
62.8
57.0
22.2
5. San Francisco earthquake
64.4
19.0
12.3
6. Japanese earthquake
10.0
2.4
1.6
Where exposures are not calculated in Sterling they are converted to Sterling using monthly exchange rates advised by Lloyd’s.
Notes to the Financial Statements
Year ended 31 December 2024
36 | WESTFIELD SPECIALTY > SYNDICATE 1200
25. RISK MANAGEMENT (CONTINUED)
The table below sets out the concentration of outstanding claim liabilities by class of business:
31 December 2024
31 December 2023
Gross
liabilities
£000
Re-insurance
of liabilities
£000
Net
liabilities
£000
Gross
liabilities
£000
Re-insurance of
liabilities
£000
Net
liabilities
£000
Accident and health
4,562
(848)
3,714
5,837
–
5,837
Marine
33,673
(8,792)
24,881
23,574
(1,795)
21,779
Fire and other damage to property
94,266
(54,960)
39,306
89,281
(55,981)
33,300
Third-party liability
217,281
(71,245)
146,036
148,199
(29,891)
118,308
Pecuniary loss
17,671
(12,701)
4,970
21,774
(15,156)
6,618
Reinsurance acceptances
320,338
(84,141)
236,197
244,614
(53,500)
191,114
Total
687,791
(232,687)
455,104
533,279
(156,323)
376,956
The geographical concentration of the outstanding claim liabilities is noted below. The disclosure is based on the countries where business is
written. The analysis would not be materially different if based on the countries in which the counterparties are situated.
31 December 2024
31 December 2023
Gross
liabilities
£000
Re-insurance
of liabilities
£000
Net
liabilities
£000
Gross
liabilities
£000
Re-insurance of
liabilities
£000
Net
liabilities
£000
North America
268,206
(90,738)
177,468
182,091
(53,378)
128,713
Caribbean and Latin America
35,130
(11,885)
23,245
51,527
(15,104)
36,423
UK
122,753
(41,528)
81,225
96,144
(28,183)
67,961
Rest of Europe
39,847
(13,481)
26,366
50,179
(14,709)
35,470
Oceania
43,908
(14,854)
29,054
30,451
(8,926)
21,525
Rest of World
177,947
(60,201)
117,746
122,887
(36,023)
86,864
Total
687,791
(232,687)
455,104
533,279
(156,323)
376,956
Report and Syndicate Annual Accounts 2024 | 37
Claims development tables
The following tables show the estimates of cumulative incurred claims, including both claims notified and IBNR for each successive
underwriting year at each reporting date, together with cumulative payments to date. The cumulative claims estimates and cumulative
payments are translated to sterling at the rate of exchange that applied at the end of the underwriting year.
Following the reinsurance to close of 2020 and prior by Riverstone Syndicate 3500, the Syndicate currently has only four years of development
to report. The claims development information will be increased to ten years over time.
In setting claims provisions the Syndicate gives consideration to the probability and magnitude of future experience being more adverse than
assumed and exercises a degree of caution in setting reserves where there is considerable uncertainty. In general, the uncertainty associated
with the ultimate claims experience in an underwriting year is greatest when the underwriting year is at an early stage of development and
the margin necessary to provide the necessary confidence in the provisions adequacy is relatively at its highest. As claims develop, and the
ultimate cost of claims becomes more certain, the relative level of margin maintained should decrease. However, due to the uncertainty
inherent in the estimation process, the actual overall claim provision may not always be in surplus.
Gross insurance contract outstanding claims provision as at 31 December 2024:
Underwriting year
2021
£000
2022
£000
2023
£000
2024
£000
Total
£000
Estimate of cumulative claims incurred
At end of underwriting year
167,136
163,226
103,734
159,659
593,755
One year later
354,378
307,926
212,151
874,455
Two years later
376,059
337,506
713,565
Three years later
385,240
385,240
Current estimate of cumulative claims incurred
385,240
337,506
212,151
159,659
1,094,556
Less cumulative claims paid
244,061
128,611
21,999
12,094
406,765
141,179
208,895
190,152
147,565
687,791
Net insurance contract outstanding claims provision as at 31 December 2024:
Underwriting year
2021
£000
2022
£000
2023
£000
2024
£000
Total
£000
Estimate of cumulative claims incurred
At end of underwriting year
109,139
103,810
95,556
92,250
400,755
One year later
229,193
218,984
193,801
641,978
Two years later
255,441
240,116
495,557
Three years later
255,616
255,616
Current estimate of cumulative claims incurred
255,616
240,116
193,801
92,250
781,783
Less cumulative claims paid
161,848
93,677
65,210
5,944
326,679
93,768
146,439
128,591
86,306
455,104
Rating levels
The Managing Agent produces an annual business plan for the Syndicate under its management. The plan is produced by anticipating rating
levels and terms and conditions attaching to risks expected to be underwritten by the Syndicate. Performance against the plan is monitored
on a regular basis through a system of underwriting committees, as well as regular review by the board of the Managing Agent. If market
conditions materially change after the plan is produced, a revised plan is prepared and authorised by the Managing Agent’s board and Lloyd’s.
In this way, rating levels of both businesses written and reinsurance purchased are subject to constant review. Should risks be assessed as
uneconomical, they will be declined.
Notes to the Financial Statements
Year ended 31 December 2024
38 | WESTFIELD SPECIALTY > SYNDICATE 1200
25. RISK MANAGEMENT (CONTINUED)
Business volume
If the volume of business underwritten is less than that planned by the Syndicate, the expenses ratio is likely to increase. Achieved business
volumes may be linked to rating levels, for instance because of easier or tougher market conditions, in which case the effects of changes in
both rating levels and business volumes will accumulate.
Reserving risk
In order to mitigate reserving risk, the Syndicate uses a number of approaches, including accepted actuarial techniques, to project gross and
net premiums written and insurance liabilities. The results of these analyses are agreed with the underwriting teams and with Syndicate
management and are subject to formal peer review. In addition the Syndicate commissions an external independent actuary to perform their
own assessment of the Syndicate’s gross and net premiums written and insurance liabilities. The Managing Agent ensures that the held
reserves are at least as strong as the external actuary’s reserves.
Assumptions
The reserves carried by the Syndicate are calculated using a number of methods to project ultimate gross and net premiums written and
insurance liabilities. The principal methods applied are:
• A case-by-case review of certain lines of business;
• The use of hurricane modelling techniques for major hurricane events during the year;
• Benchmarking certain lines of business based on previous underwriting experience, in particular the longer tail classes of business;
• Actuarial techniques such as the chain ladder method and the Bornhuetter-Ferguson method. These are mainly applied to the classes of
business that have a relatively stable development pattern.
The major assumptions underlying the reserves established by the Syndicate are:
• The Syndicate’s past claims development experience (with appropriate adjustment for known changes) can be used to project future
claims development factors;
• The Syndicate will experience normal incidence of bad debts against future recoveries.
The loss reserves established by the Syndicate are sensitive to various factors:
• The liabilities established could be significantly lower or higher than the ultimate cost of settling the claims arising. The following table
shows the profit and loss impact of the sensitivity of the value of insurance liabilities disclosed in the accounts to potential movements in
the assumptions applied within the technical provisions. This represents the profit or loss impact of an increase or decrease in the
insurance liability as a result of applying the sensitivity. The amount disclosed for the impact on claims outstanding – net of reinsurance
represents the impact on both the profit and loss for the year and members’ balance.
Year ended 31 December
2024
£000
2023
£000
Sensitivity
5.0%
(5.0%)
5.0%
(5.0%)
Claims outstanding – gross of reinsurance
(34,390)
34,390
(26,664)
26,664
Claims outstanding – net of reinsurance
(22,755)
22,755
(18,848)
18,848
• The percentage of premiums earned during the calendar year. A 10% decrease in the net earned premium, for those years open during the
calendar year, would reduce the profit of the Syndicate by:
Year ended 31 December
2024
£000
2023
£000
Syndicate net result
11,497
15,817
Report and Syndicate Annual Accounts 2024 | 39
Reinsurance risk
Reinsurance risk arises from two different sources:
• The first relates to concentration risk whereby recoveries from claims paid are due from a limited number of reinsurers. To mitigate this
risk, the Syndicate places its reinsurance in line with policy guidelines managed by reference to counterparty limits that are set each year
and are subject to regular reviews.
• The second source of reinsurance risk relates to credit risk. Credit risk arises where reinsurers fail to meet their financial obligations in full
as they fall due.
To understand the Syndicate’s exposure to credit risks both now and in the future, the table below shows the credit rating, categorised by the
rating agencies and used by the Syndicate in its reporting to Lloyd’s.
Moody’s
Standard &
Poor’s
Tier 1
AA+ to A-
AAA to A-
Tier 2
B++ to B+
BBB+ to BB-
Tier 3
B to C-
B+ to CCC
Tier 4
D to NR
R to NR
2024
2023
£000
%
£000
%
Tier 1
232,648
100.0
154,318
98.7
Tier 2
–
–
–
–
Tier 3
–
–
–
–
Tier 4
39
–
2,005
1.3
232,687
100.00
156,323
100.0
None (2023: none) of Tier 1 is collateralised. 100% (2023: 27%) of Tier 4 is collateralised.
Financial risk
Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss to the other party by failing to discharge an obligation.
The following policies and procedures are in place to mitigate the exposure to credit risk:
A credit risk policy setting out the assessment and determination of what constitutes credit risk for the Syndicate. Compliance with the policy
is monitored and exposures and breaches are reported to the Syndicate Risk and Capital Committee. The policy is regularly reviewed for
relevance and for changes in the risk environment.
Net exposure limits are set for each counterparty or asset class (i.e., limits are set for investments and cash deposits and minimum credit
ratings for investments that may be held).
Guidelines determine when to obtain collateral and guarantees (i.e., certain derivative transactions are covered by collateral and derivatives
are only taken out with counterparties that have a suitable credit rating). The Syndicate maintains strict control limits by amount and terms on
net open derivative positions. The amounts subject to credit risk are limited to the fair value of ‘in the money’ financial assets against which
the Syndicate either obtains collateral from counterparties or requires margin deposits. Collateral may be sold or repledged by the Syndicate
and is repayable if the contract terminates or the contract’s fair value falls.
Notes to the Financial Statements
Year ended 31 December 2024
40 | WESTFIELD SPECIALTY > SYNDICATE 1200
25. RISK MANAGEMENT (CONTINUED)
Reinsurance is placed with counterparties that have a good credit rating and concentration of risk is avoided by following policy guidelines in
respect of counterparties’ limits that are set each year by the board of directors and are subject to regular reviews. At each reporting date,
management performs an assessment of creditworthiness of reinsurers and updates the reinsurance purchase strategy, ascertaining suitable
allowance for impairment.
The Syndicate sets the maximum amounts and limits that may be advanced to corporate counterparties by reference to their long-term credit
ratings.
The credit risk in respect of customer balances, incurred on non-payment of premiums or contributions will only persist during the grace
period specified in the policy document or trust deed until expiry, when the policy is either paid up or terminated. Commission paid to
intermediaries is netted off against amounts receivable from them to reduce the risk of doubtful debts.
The tables below show the maximum exposure to credit risk (including an analysis of financial assets exposed to credit risk) for the
components of the statement of financial position. The maximum exposure is shown gross, before the effect of mitigation through collateral
agreements.
31 December 2024
Neither past due
nor impaired
£000
Past due
£000
Impaired
£000
Total
£000
Financial investments
– Debt securities
446,801
–
–
446,801
– Shares and other variable yield securities and unit trusts
37,676
–
–
37,676
– Participation in investment pools
5
–
–
5
Deposits with ceding undertakings
–
–
–
–
Overseas deposits
55,070
–
–
55,070
Reinsurers’ share of claims outstanding
232,687
–
–
232,687
Debtors arising out of direct insurance operations
276,130
5,604
–
281,734
Debtors arising out of reinsurance operations
–
33,586
–
33,586
Other debtors
211,085
11,496
–
222,581
Cash at bank and in hand
42,662
–
–
42,662
1,302,116
50,686
–
1,352,802
At 31 December 2024, the Syndicate had no impaired reinsurance assets (2023: none).
Report and Syndicate Annual Accounts 2024 | 41
31 December 2023
Neither past due
nor impaired
£000
Past due
£000
Impaired
£000
Total
£000
Financial investments
– Debt securities
287,362
–
–
287,362
– Shares and other variable yield securities and unit trusts
39,228
–
–
39,228
– Participation in investment pools
5
–
–
5
Deposits with ceding undertakings
2,135
–
–
2,135
Overseas deposits
46,643
–
–
46,643
Reinsurers’ share of claims outstanding
156,323
–
–
156,323
Debtors arising out of direct insurance operations
258,140
4,490
–
262,630
Debtors arising out of reinsurance operations
–
27,846
–
27,846
Other debtors
115,002
8,113
–
123,115
Cash at bank and in hand
41,013
–
–
41,013
945,851
40,449
–
986,300
The table below sets out the age analysis of financial assets that are past due but not impaired at the balance sheet date.
Past due but not impaired
31 December 2024
0-3 months past
due
£000
3-6 months past
due
£000
6-12 months
past due
£000
Greater than 1
year past due
£000
Total
£000
Debtors arising out of reinsurance operations
32,260
839
267
220
33,586
Debtors arising out of direct insurance operations
3,626
1,408
390
180
5,604
Other debtors
11,496
–
–
–
11,496
47,382
2,247
657
400
50,686
Notes to the Financial Statements
Year ended 31 December 2024
42 | WESTFIELD SPECIALTY > SYNDICATE 1200
25. RISK MANAGEMENT (CONTINUED)
Past due but not impaired
31 December 2023
0-3 months past
due
£000
3-6 months past
due
£000
6-12 months
past due
£000
Greater than 1
year past due
£000
Total
£000
Debtors arising out of reinsurance operations
25,232
1,933
667
13
27,845
Debtors arising out of direct insurance operations
2,413
1,225
702
150
4,490
Other debtors
2,706
–
–
5,408
8,114
30,351
3,158
1,369
5,571
40,449
The table below provides information regarding the credit risk exposure of the Syndicate at 31 December 2024 by classifying assets according
to Standard & Poor’s credit ratings of the counterparties. Debtors, other than amounts due from reinsurers, have been excluded from the
table as these are not rated.
31 December 2024
AAA
£000
AA
£000
A
£000
BBB
£000
<BBB
£000
Not rated
£000
Total
£000
Shares and other variable yield securities and unit
trusts
–
–
27,026
–
10,650
37,676
Debt securities
107,685
174,783
135,796
28,537
–
–
446,801
Participation in investment pools
–
–
–
–
–
5
5
Overseas deposits
32,203
6,892
6,590
4,598
875
3,912
55,070
Deposits with ceding undertakings
–
–
–
–
–
–
–
Reinsurers’ share of claims outstanding
9,195
56,779
166,675
–
–
38
232,687
Cash at bank and in hand
–
–
42,662
–
–
–
42,662
149,083
187,055
430,148
33,135
875
14,605
814,901
Report and Syndicate Annual Accounts 2024 | 43
31 December 2023
AAA
£000
AA
£000
A
£000
BBB
£000
<BBB
£000
Not rated
£000
Total
£000
Shares and other variable yield securities and unit
trusts
–
–
20,128
–
–
19,100
39,228
Debt securities
95,114
103,611
70,453
16,918
538
728
287,362
Participation in investment pools
–
–
–
–
–
5
5
Overseas deposits
30,728
4,270
3,976
3,605
567
3,497
46,643
Deposits with ceding undertakings
–
–
2,135
–
–
–
2,135
Reinsurers’ share of claims outstanding
3,121
7,289
143,908
–
–
2,005
156,323
Cash at bank and in hand
–
–
41,013
–
–
–
41,013
128,963
115,170
281,613
20,523
1,105
25,335
572,709
Maximum credit exposure
It is the Syndicate’s policy to maintain accurate and consistent risk ratings across its credit portfolio. This enables management to focus on the
applicable risks and the comparison of credit exposures across all lines of business, geographic regions and products. The rating system is
supported by a variety of financial analytics combined with processed market information to provide the main inputs for the measurement of
counterparty risk. All internal risk ratings are tailored to the various categories and are derived in accordance with the Syndicate’s rating
policy. The attributable risk ratings are assessed and updated regularly.
During the year, no credit exposure limits were exceeded.
The Syndicate actively manages its product mix to ensure that there is no significant concentration of credit risk.
Liquidity risk
Liquidity risk is the risk that the Syndicate will encounter difficulty in meeting obligations associated with financial instruments. In respect of
catastrophic events there is also a liquidity risk associated with the timing differences between gross cash out-flows and expected reinsurance
recoveries.
The following policies and procedures are in place to mitigate the Syndicate’s exposure to liquidity risk:
a. A liquidity risk policy exists that sets out the assessment and determination of what constitutes liquidity risk. Compliance with the policy is
monitored and exposures and breaches are reported to the Risk and Capital Committee. The policy is regularly reviewed for pertinence
and for changes in the risk environment.
b. Guidelines on asset allocation, portfolio limit structures and maturity profiles of assets are set, in order to ensure that sufficient funding is
available to meet insurance and investment contracts obligations.
c. Contingency funding plans are set up which specify minimum proportions of funds to meet emergency calls as well as specifying events
that would trigger such plans.
d. The Syndicate’s catastrophe excess-of-loss reinsurance contracts contain clauses permitting the immediate draw down of funds to meet
claim payments should claim events exceed a certain size.
Notes to the Financial Statements
Year ended 31 December 2024
44 | WESTFIELD SPECIALTY > SYNDICATE 1200
25. RISK MANAGEMENT (CONTINUED)
Maturity profiles
The table below summarises the maturity profile of the Syndicate’s financial liabilities based on remaining undiscounted contractual
obligations, including interest payable, and outstanding claim liabilities based on the estimated timing of claim payments resulting from
recognised insurance liabilities. Repayments which are subject to notice are treated as if notice were to be given immediately.
Carrying amount
£000
Up to a year
£000
1-3 years
£000
3-5 years
£000
Over 5 years
£000
Total
£000
31 December 2024
Outstanding claim liabilities
687,791
219,945
149,362
222,237
96,247
687,791
Other
230,083
43,825
186,258
–
–
230,083
917,874
263,770
335,620
222,237
96,247
917,874
Carrying amount
£000
Up to a year
£000
1-3 years
£000
3-5 years
£000
Over 5 years
£000
Total
£000
31 December 2023
Outstanding claim liabilities
533,279
210,057
119,912
149,708
53,602
533,279
Other
115,603
43,771
25,825
33,235
12,772
115,603
648,882
253,828
145,737
182,943
66,374
648,882
Market risk
Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices.
Market risk comprises three types of risk:
a. Currency risk;
b. Interest rate risk; and
c. Equity price risk.
The following policies and procedures are in place to mitigate the exposure to market risk:
• A market risk policy exists that sets out the assessment and determination of what constitutes market risk for the Syndicate. Compliance
with the policy is monitored and exposures and breaches are reported to the Risk and Capital Committee. The policy is reviewed regularly
for appropriateness and for changes in the risk environment.
• Strict control over derivative instruments (e.g., derivatives are only permitted to be held to facilitate portfolio management or to reduce
investment risk).
• For assets backing outstanding claims provisions, market risk is managed by matching (within agreed limits) the average duration and
currency of assets to the technical provisions they are backing. This helps manage market risk to the extent that changes in the values of
assets are matched by a corresponding movement in the values of the technical provisions. Foreign exchange hedges are used to mitigate
currency risk where assets and liabilities are not matched.
Investment managers
Conning is the principal investment manager for the Syndicate’s funds.
Conning has been set the objective of managing the main Syndicate fixed income portfolios to benchmarks as follows: Sterling portfolio: 40%
Barclays Sterling Credit Corp 1-3 year ex subord/ 60% Barclays Sterling Gilts 1-3 yr.
Euro portfolios: 40% Barclays Euro Corporates 1-3 yr A- and above / 60% Barclays Euro Gov 1-3 yr ex PT,IE,IT,GR ES.
US dollar portfolios: 40% Barclays US Corporate 1-3 yr A+ 1-3 yr / 60% Barclays US Gov 1-3 yr
Canadian dollar portfolios: 100% Barclays Canadian Issues 300MM 1-3 yr.
US dollar Canadian Situs: 100% Barclays US Treasury: 1-3 yr.
The benchmarks are designed to position the portfolio conservatively (short duration and high quality) whilst allowing Conning to add
corporate bond positions to the portfolio to enhance overall returns.
The investment allocation (excluding surplus cash) at the year-end can be found in note 10.
Report and Syndicate Annual Accounts 2024 | 45
Currency risk
Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange
rates.
The Syndicate’s functional currency is US dollars and its exposure to foreign exchange risk arises primarily with respect to transactions in
Sterling, Euro, Canadian and Australian dollars. The Syndicate seeks to mitigate the risk by matching the estimated foreign currency
denominated liabilities with assets denominated in the same currency. Forward currency contracts are in place to eliminate imbalances
resulting from regulatory requirements. The Syndicate manages its FX exposure through a hedging programme consisting of FX forward
contracts. As at 31 December 2024, the mark to market for open positions was a loss of £0.3m (2023: nil).
The table below summarises the exposure of the financial assets and liabilities to foreign currency exchange risk at the reporting date, as
follows:
31 December 2024
GBP
£000
Euro
£000
USD
£000
CAD
£000
AUD
£000
JPY
£000
Other
£000
Total
£000
Investments
20,872
–
361,344
102,266
–
–
–
484,482
Reinsurers’ share of
technical provisions
38,940
28,456
227,117
27,976
23,445
1,427
–
347,361
Debtors
36,634
8,153
280,190
(13,249)
10,041
(1,601)
(3,202)
316,966
Other assets
32,073
8,477
7,961
21,943
35,930
2,684
3,776
112,844
Prepayments and accrued income
14,755
7,595
51,423
9,608
7,470
298
–
91,149
Total assets
143,274
52,681
928,035
148,544
76,886
2,808
574
1,352,802
Technical provisions
(159,394)
(52,705)
(630,113)
(109,254)
(77,873)
(5,213)
–
(1,034,552)
Creditors
(19,623)
(17,702)
(145,399)
(25,041)
(20,509)
(1,809)
–
(230,083)
Accruals and deferred income
(5,432)
(3,822)
(21,601)
(2,470)
(2,486)
(325)
–
(36,136)
Total liabilities
(184,449)
(74,229)
(797,113)
(136,765)
(100,868)
(7,347)
–
(1,300,771)
Total capital and reserves
(41,175)
(21,548)
130,922
11,779
(23,982)
(4,539)
574
52,031
31 December 2023
GBP
£000
Euro
£000
USD
£000
CAD
£000
AUD
£000
JPY
£000
Other
£000
Total
£000
Investments
19,155
–
211,072
96,368
–
–
–
326,595
Reinsurers’ share of
technical provisions
19,182
22,899
132,287
13,311
5,952
80
–
193,711
Debtors
53,439
9,471
226,042
(4,287)
9,974
57
(3,241)
291,455
Other assets
9,042
7,653
25,823
17,812
35,172
922
501
96,925
Prepayments and accrued income
11,851
6,736
41,621
9,774
7,532
100
–
77,614
Total assets
112,669
46,759
636,845
132,978
58,630
1,159
(2,740)
986,300
Technical provisions
(131,818)
(62,273)
(468,160)
(95,510)
(59,954)
(3,572)
–
(821,287)
Creditors
(53,164)
(25,761)
(77,033)
55,821
(14,610)
(856)
–
(115,603)
Accruals and deferred income
(1,577)
(1,995)
(4,736)
–
–
–
–
(8,308)
Total liabilities
(186,559)
(90,029)
(549,929)
(39,689)
(74,564)
(4,428)
–
(945,198)
Total capital and reserves
(73,890)
(43,270)
86,916
93,289
(15,934)
(3,269)
(2,740)
41,102
Notes to the Financial Statements
Year ended 31 December 2024
46 | WESTFIELD SPECIALTY > SYNDICATE 1200
25. RISK MANAGEMENT (CONTINUED)
Sensitivity to changes in foreign exchange rates
On a quarterly basis the net asset/liability positions by currency of the Syndicate statement of financial position is assessed to ensure there is a
reasonable match to mitigate market risk due to currency fluctuations. As a result, decisions may be taken to buy or sell specific currencies, or
purchase foreign exchange hedges as appropriate. The Syndicate policy is, where practical, to manage surplus assets/(profits) in USD rather
than GBP.
The following table gives an indication of the impact on profit and members’ balances of a percentage change in the relative strength of
Sterling against the value of the US dollar on information as at 31 December 2024.
Impact on profit
and members’ balances
£000
2024
2023
Sterling weakens
10% against USD
33,040
26,800
Sterling strengthens
10% against USD
(27,032)
(22,000)
Interest rate risk
Interest rate risk is the risk that the value or future cash flows of a financial instrument will fluctuate because of changes in market interest
rates.
Floating rate instruments expose the Syndicate to cash flow interest risk, whereas fixed rate instruments expose the Syndicate to fair value
interest risk.
The Syndicate has no significant concentration of interest rate risk.
Insurance liabilities are not discounted and therefore not exposed to interest rate risk.
The analysis below is performed for reasonably possible movements in interest rates with all other variables held constant, showing the
impact on profit and members’ balances of the effects of changes in interest rates on:
• Fixed rate financial assets and liabilities; and
• Variable rate financial assets and liabilities;
The first of these measures the impact on profit or loss for the year (for items recorded at fair value through profit or loss) and on members’
balances (for available for sale investments) that would arise from a reasonably possible change in interest rates at the reporting date on
financial instruments at the period end. The second of these measures the change in interest income or expense over the period of the year
attributable to a reasonably possible change in interest rates, based on floating rate assets and liabilities held at the reporting date. It has been
assessed that the impact on these measures is the same.
The correlation of variables will have a significant effect in determining the ultimate impact on interest rate risk, but to demonstrate the
impact due to changes in variables, the variables were altered on an individual basis. It should be noted that movements in these variables are
non-linear.
Report and Syndicate Annual Accounts 2024 | 47
25. RISK MANAGEMENT (CONTINUED)
Changes in variables
Impact on
result before tax
£000
Impact on
members’
balances
£000
31 December 2024
+50 basis points
(3,908)
(3,908)
-50 basis points
3,954
3,954
31 December 2023
+50 basis points
(2,549)
(2,549)
-50 basis points
2,583
2,583
The method used for deriving sensitivity information and significant variables did not change from the previous period.
Equity price risk
Equity price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices
(other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual
financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market.
The Syndicate’s equity price risk exposure relates to financial assets and financial liabilities whose values will fluctuate as a result of changes in
market prices, principally investment securities.
The equity price risk policy requires the Syndicate to manage such risks by setting and monitoring objectives and constraints on investments,
diversification plans, limits on investments in each sector and market, and careful and planned use of derivative financial instruments.
There is no significant concentration of equity price risk and it has been assessed that the impact on profit or loss and members’ balances is
the same.
The analysis below is performed for reasonably possible movements in market indices on financial instruments with all other variables held
constant, showing the impact on profit due to changes in fair value of financial assets (whose fair values are recorded in the profit and loss
account) and equity (that reflects adjustments to profit and changes in fair value of available for sale financial assets that are equity
instruments). The correlation of variables will have a significant effect in determining the ultimate impact on equity price risk, but to
demonstrate the impact due to changes in variables, the variables were altered on an individual basis. It should be noted that movements in
these variables are non-linear.
Changes in variables – market indices
Change in variables
Impact on
profit before tax
£000
31 December 2024
Impact on members’
balance
£000
Impact on
profit before tax
£000
31 December 2023
Impact on members’
balance
£000
S & P 500
5.0%
negligible
negligible
negligible
negligible
S & P 500
(5.0%)
negligible
negligible
negligible
negligible
The investment manager has determined that the Syndicate’s exposure to equity price risk at December 2024 is negligible.
Notes to the Financial Statements
Year ended 31 December 2023
48 | WESTFIELD SPECIALTY > SYNDICATE 1200
Annual venture risk
Under the Lloyd’s annual venture regime, the Managing Agent (WSMA) has to show annually that each Syndicate under its management has
enough support to carry on underwriting. With effect from the 2024 year of account, Ohio Farmers Insurance Company provides 100 percent
of the Syndicate’s capital.
The table below shows the capital that backs the Syndicate’s underwriting.
2025
%
2024
%
2023
%
Names
–
–
0.3
Trade Capital
–
–
0.2
Ohio Farmers Insurance Group
100.0
100.0
99.5
100.0
100.0
100.0
Operational Risk
Much of the effect of the Syndicate’s exposure to operational risks is reflected in the risk headings above, and is mitigated and managed
through the exercise of the management controls and actions described above. The main additional exposures are in relation to business
continuity, i.e. the risk that the ability of the Syndicate to continue in business will be affected by events not reflected under other headings,
for example the impact of terrorist activity, and in the management of relationships and arrangements with key individuals. The Syndicate
maintains a disaster recovery plan for all IT risks, including those relating to the robustness and sustainability of IT infrastructure and business
applications, and the arrangements to mitigate those risks. This is monitored and updated regularly. In relation to the disaster recovery plan,
the Syndicate has established arrangements designed to achieve an appropriate commonality of interest between the Syndicate and the
suppliers concerned, and these arrangements are reviewed periodically. In addition, the Syndicate seeks to reduce the dependence on any
individual as far as practically possible, by employing sufficient personnel with appropriate experience and expertise, and by succession
planning.
Staff matters
The Managing Agent considers its staff to be a key resource, and seeks to provide a good working environment for its staff that is safe and
complies with appropriate employee legislation. During the year there have not been any actions taken by regulatory bodies with regard to
staff matters. All staff are employed through Westfield Specialty Management Services Ltd and their costs where appropriate are recharged to
the Syndicate.
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. The level of
FAL that Lloyd’s requires a member to maintain is determined by Lloyd’s based on Prudential Regulation Authority requirements and resource
criteria. The determination of FAL has regard to a number of factors including the nature and amount of risk to be underwritten by the
member and the assessment of the reserving risk in respect of business that has been underwritten. Since FAL is not under the management
of the Managing Agent, no amount has been shown in these Financial Statements by way of such capital resources. However, the Managing
Agent is able to make a call on the Member’s FAL to meet liquidity requirements or to settle losses.
Report and Syndicate Annual Accounts 2024 | 49
Report of the Directors of the Managing Agent
50 | WESTFIELD SPECIALTY > SYNDICATE 1200
The directors of the Managing Agent present their report
on the 2022 year of account of Syndicate 1200 as closed at
31 December 2024.
REVIEW OF THE 2022 YEAR OF ACCOUNT
We are pleased to report that the 2022 year has closed with an
8.3% profit on stamp capacity.
Year of account summary
2022
£m
Stamp capacity
500.0
Stamp premium income
482.6
Stamp utilisation
96.5%
Gross premiums written
621.1
Profit
41.4
Result on stamp
8.3%
A full commentary is provided in the annual accounts for the
closing 2022 year of account of Syndicate 1200. Please refer to
page 4.
Review of open years and outline of current trading and likely
future developments
A full commentary is provided in the annual accounts. Please refer
to page 4.
Approved by the Board of Westfield Specialty Managing Agency
Ltd and signed on its behalf:
GP Evans
Chief Executive
5 March 2025
Statement of Managing Agent’s Responsibilities
Report and Syndicate Annual Accounts 2024 | 51
The Insurance Accounts Directive (Lloyd’s Syndicates
and Aggregate Accounts) Regulations 2008 (“the 2008
Regulations”) require the Managing Agent to prepare Syndicate
underwriting year accounts for each Syndicate for any
underwriting year which is being closed by reinsurance to close at
31 December. These Syndicate underwriting year accounts must
give a true and fair view of the result of the closed year of account.
In preparing these Syndicate underwriting year accounts, the
Managing Agent is required by the Syndicate Accounting Byelaw
(No 8 of 2005) (“the Syndicate Accounting Byelaw”), to:
• select suitable accounting policies which are applied consistently
and, where there are items which affect more than one year of
account, ensure a treatment which is equitable as between the
members of the Syndicate affected. In particular, the amount
charged by way of premium in respect of the reinsurance to
close shall, where the reinsuring members and reinsured
members are members of the same Syndicate for different
years of account, be equitable as between them, having regard
to the nature and amount of the liabilities reinsured;
• take into account all income and charges relating to a closed
year of account without regard to the date of receipt or
payment;
• make judgements and estimates that are reasonable and
prudent; and
• state whether applicable UK Accounting Standards have been
followed, subject to any material departures disclosed and
explained in these accounts.
The Managing Agent is responsible for keeping proper accounting
records that disclose with reasonable accuracy at any time the
financial position of the Syndicate and enable it to ensure that the
Syndicate underwriting year accounts comply with the 2008
Regulations and the Syndicate Accounting Byelaw. It is also
responsible for safeguarding the assets of the Syndicate and hence
for taking reasonable steps for the prevention and detection of
fraud and other irregularities.
Report of the Independent Auditor
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE 2022
CLOSED YEAR OF ACCOUNT OF SYNDICATE 1200
52 | WESTFIELD SPECIALTY > SYNDICATE 1200
OPINION
We have audited the Syndicate underwriting year accounts for the
2022 year of account of Syndicate 1200 for the three year period
ended 31 December 2024 which comprise the Income Statement
2022 Year of Account, Statement of Financial Position, Statement
of Changes in Members’ Balances, Statement of Cash Flows 2022
Year of Account, and related notes, including the accounting
policies in Note 1.
In our opinion the Syndicate underwriting year accounts:
• give a true and fair view of the Syndicate’s profit for the 2022
closed year;
• 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 properly prepared in accordance with the
requirements of the Insurance Accounts Directive (Lloyd’s
Syndicate and Aggregate Accounts) Regulations 2008 and in
accordance with the requirements of the Lloyd’s Syndicate
Accounting Byelaw (No. 8 of 2005).
BASIS FOR OPINION
We conducted our audit in accordance with International
Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our
responsibilities are described below. We have fulfilled our ethical
responsibilities under, and are independent of the Syndicate in
accordance with, UK ethical requirements including the Financial
Reporting Council (“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.
EMPHASIS OF MATTER – NON-GOING CONCERN
BASIS OF PREPARATION
We draw attention to the disclosure made in Note 1 to the
Syndicate underwriting year accounts which explains that the
Syndicate underwriting year accounts have not been prepared on
the going concern basis for the reasons set out in that note. Our
opinion is not modified in respect of this matter.
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 included:
• Enquiring of directors, the audit committee, internal audit,
head of compliance and inspection of policy documentation as
to the Syndicate high-level policies and procedures to prevent
and detect fraud, including the internal audit function, and the
Syndicate channel for “whistleblowing”, as well as whether
they have knowledge of any actual, suspected or alleged fraud.
• Reading Board, audit committee, risk & capital committee,
claims & reserving committee minutes.
• Considering remuneration incentive schemes and performance
targets for management and directors.
• Using analytical procedures to identify any unusual or
unexpected relationships.
We communicated identified fraud risks throughout the audit
team and remained alert to any indications of fraud throughout
the audit.
As required by auditing standards and considering possible
pressures to meet profit targets, 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.
Report and Syndicate Annual Accounts 2024 | 53
We identified fraud risks related to the valuation of claims
outstanding, specifically over incurred but not reported claims, and
the valuation of residual estimated premium debtors.
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 any posted by
Finance senior management, those posted to seldom used
accounts, and those containing key words; and
• Assessing whether the judgements made in making accounting
estimates are indicative of a potential bias.
Identifying and responding to risks of material misstatement
related to compliance with laws and regulations
We identified areas of laws and regulations that could reasonably
be expected to have a material effect on the Syndicate
underwriting year accounts from our general commercial and
sector experience and through discussion with the directors and
other management (as required by auditing standards), and from
inspection of the 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 Syndicate
underwriting year accounts varies considerably.
Firstly, the Syndicate is subject to laws and regulations that directly
affect the Syndicate underwriting year accounts including financial
reporting legislation (such as the Insurance Accounts Directive
(Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 and
Lloyd’s Syndicate Accounting Byelaw) and we assessed the extent
of compliance with these laws and regulations as part of our
procedures on the related Syndicate underwriting year accounts
items.
Secondly, the Syndicate is subject to many other laws and
regulations where the consequences of non-compliance could
have a material effect on amounts or disclosures in the Syndicate
underwriting year accounts, 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 recognising the financial
and regulated nature of the Syndicate’s activities. Auditing
standards limit the required audit procedures to identify non-
compliance with these laws and regulations to enquiry of the
directors and other management and inspection of regulatory and
legal correspondence, if any. Therefore, if a breach of operational
regulations is not disclosed to us or evident from relevant
correspondence, an audit will not detect that breach.
Context of the ability of the audit to detect fraud or breaches
of law or regulation
Owing to the inherent limitations of an audit, there is an
unavoidable risk that we may not have detected some material
misstatements in the Syndicate underwriting year accounts, even
though we have properly planned and performed our audit in
accordance with auditing standards. For example, the further
removed non-compliance with laws and regulations is from the
events and transactions reflected in the Syndicate underwriting
year accounts, the less likely the inherently limited procedures
required by auditing standards would identify it.
In addition, as with any audit, there remained a higher risk of non-
detection of fraud, as these may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of
internal controls. Our audit procedures are designed to detect
material misstatement. We are not responsible for preventing
non-compliance or fraud and cannot be expected to detect non-
compliance with all laws and regulations.
Report of the Independent Auditor
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE 2022
CLOSED YEAR OF ACCOUNT OF SYNDICATE 1200
54 | WESTFIELD SPECIALTY > SYNDICATE 1200
REPORT OF THE DIRECTORS OF THE MANAGING
AGENT
The directors of the Managing Agent are responsible for the
Report of the Directors of the Managing Agent. Our opinion on the
Syndicate underwriting year 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 underwriting year accounts audit work, the information
therein is materially misstated or inconsistent with the Syndicate
underwriting year 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.
MATTERS ON WHICH WE ARE REQUIRED TO REPORT
BY EXCEPTION
Under the Insurance Accounts Directive (Lloyd’s Syndicate and
Aggregate Accounts) Regulations 2008 and the Lloyd’s Syndicate
Accounting Byelaw (no. 8 of 2005), 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 underwriting year accounts are not in agreement
with the accounting records; 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 51, the
directors of the Managing Agent are responsible for: the
preparation of the Syndicate underwriting year 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 underwriting year 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 underwriting year 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 underwriting
year 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 members of the 2022 closed year
of account of the Syndicate (“the Syndicate’s Members”), as a
body, in accordance with the Insurance Accounts Directive (Lloyd’s
Syndicate and Aggregate Accounts) Regulations 2008 and Lloyd’s
Syndicate Accounting Byelaw. 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.
Shaun Gealy
(Senior statutory auditor)
for and on behalf of KPMG LLP, Statutory Auditor
Chartered Accountants
15 Canada Square
London
E14 5GL
5 March 2025
Income Statement 2022 Year of Account
Closed at the end of 36 months at 31 December 2024
Report and Syndicate Annual Accounts 2024 | 55
Note
2022
year of
account
£000
Technical account – general business
Earned premiums, net of reinsurance
Gross premiums written
621,076
Outward reinsurance premiums
(211,897)
Earned premiums, net of reinsurance
409,179
Reinsurance to close premium received, net of reinsurance
3
126,978
Allocated investment return transferred from the non-technical account
13,760
Claims incurred, net of reinsurance
Claims paid
Gross amount
(210,647)
Reinsurers’ share
100,315
Net claims paid
(110,332)
Reinsurance to close premium payable, gross amount
4
(350,076)
Reinsurance recoveries anticipated on the reinsurance to close premium payable
4
109,869
Reinsurance to close premium payable, net of reinsurance
4
(240,207)
Claims incurred, net of reinsurance
(350,539)
Net operating expenses
Acquisition costs
(121,642)
Administrative expenses
(20,277)
Personal expenses
(7,702)
Net operating expenses
6
(149,621)
Balance on the technical account for general business
49,757
Non-technical account
Balance on the technical account for general business
49,757
Investment income
12,586
Unrealised gains on investments
4,094
Investment expenses and charges
(106)
Unrealised losses on investments
(2,814)
Allocated investment return transferred to the technical account for general business
9
(13,760)
Loss on exchange
(8,356)
Profit for the closed year of account
15
41,401
There are no recognised gains or losses in the accounting period other than those dealt with in the income statement and so no statement of
other comprehensive income has been prepared.
Statement of Financial Position
2022 Year of Account at 31 December 2024
56 | WESTFIELD SPECIALTY > SYNDICATE 1200
Note
2022
year of
account
£000
Assets
Investments
10
230,868
Debtors
Debtors arising out of direct insurance operations
11
9,930
Debtors arising out of reinsurance operations
12
27,715
Other debtors
13
5,676
43,321
Reinsurance recoveries anticipated on gross reinsurance to close premium payable
4
109,868
Other assets
Cash at bank and in hand
44,408
Other
14
29,080
Total assets
457,545
Liabilities
Members’ balances
15
41,401
Reinsurance to close premium payable, gross amount
4
350,075
Creditors
Creditors arising out of direct insurance operations
16
4,287
Creditors arising out of reinsurance operations
17
42,290
Other creditors including taxation and social security
18
19,277
65,854
Accruals and deferred income
215
Total liabilities
457,545
Approved by the Board of Westfield Specialty Managing Agency Ltd on 5 March 2025 and signed on its behalf by:
GP Evans
Chief Executive
D Argyle
Director
Statement of Changes in Members’ Balances
for the 2022 closed year of account at 31 December 2024
Report and Syndicate Annual Accounts 2024 | 57
2022
year of account
£000
Profit for the 2022 closed year of account
41,401
Members’ agents’ fees
(39)
Amounts due to members at 31 December 2024
41,362
Statement of Cash Flows 2022 Year of Account
for the 36 months ended 31 December 2024
Note
2022
year of
account
£000
Cash flow for Operating activities
Profit on ordinary activities
41,401
Non-cash consideration for net RITC receivable
–
Net RITC premium payable
19
240,207
(Increase) in debtors
(43,282)
Increase in creditors
65,854
Movement in other (assets)/liabilities
(28,864)
Investment return
(13,760)
Cash flow for Investing activities
Purchase of financial instruments
(349,144)
Sale of financial instruments
137,602
Investment income received
12,586
Financing activities
Members’ agents’ fee
(39)
Increase in cash and cash equivalents
62,561
Cash and cash equivalents at 1 January
–
Cash and cash equivalents at 31 December
62,561
Notes to the Underwriting Year Accounts
for the 2022 closed year of account at 31 December 2024
58 | WESTFIELD SPECIALTY > SYNDICATE 1200
1. ACCOUNTING POLICIES
STATEMENT OF COMPLIANCE
The Syndicate underwriting year accounts have been prepared
under the 2008 Regulations and in accordance with the Syndicate
Accounting Byelaw (No.8 of 2005) and applicable accounting
standards in the United Kingdom. Financial Reporting Standard
102 ‘The Financial Reporting Standard applicable in the UK and
Republic of Ireland’ (FRS 102) and Financial Reporting Standard
103 ‘Insurance Contracts’ (FRS 103) have been applied to the
extent that they are relevant for a proper understanding of the
underwriting year accounts.
The result for the 2022 year of account was declared in sterling so
there is no exchange rate risk. To this extent, the risks that it is
exposed to in respect of the reported financial position and
financial performance are significantly less than those relating to
the open years of account as disclosed in the Syndicate Annual
Accounts. Accordingly, these underwriting year accounts do not
have associated risk disclosures as required by section 34 of FRS
102. Full disclosures relating to these risks are provided in the
Syndicate Annual Accounts.
BASIS OF PREPARATION
Members participate on a Syndicate by reference to a year of
account and each Syndicate year of account is a separate annual
venture. These accounts relate to the 2022 year of account which
has been closed by reinsurance to close at 31 December 2024;
consequently the statement of financial position, represents the
assets and liabilities of the 2022 year of account, and the income
statement and statement of cash flows reflect the transactions for
that year of account during the 36 month period until
closure. Therefore the 2022 year of account is not continuing to
trade and, accordingly the directors have not adopted the going
concern basis in the preparation of these accounts. This is
consistent with the normal course of business for a Lloyd’s
syndicate and with the approach we have applied to earlier
underwriting years.
The financial statements for the period ended 31 December 2024
were approved for issue by the board of directors on 5 March
2025.
The financial statements are prepared in sterling which is the
presentational currency of the Syndicate and rounded to nearest
thousand. The functional currency of the Syndicate is US dollars
reflecting the principal currency in which the Syndicate operates.
As permitted by FRS 103 the Syndicate continues to apply the
existing accounting policies that were applied prior to this standard
for its insurance contracts.
As each syndicate year of account is a separate annual venture,
there are no comparative figures.
JUDGEMENT AND KEY SOURCES OF ESTIMATION
AND UNCERTAINTY
Premiums written
Estimates are made at the date of inception for premiums written
through third parties, including amounts due to the Syndicate not
yet notified. The main assumption underlying these estimates is
that past premium development can be used to project future
premium development.
Claims incurred and reinsurers’ share
The provision for claims outstanding comprises amounts set aside
for claims notified and claims incurred but not yet reported (IBNR).
The amount of IBNR, which is based on statistical techniques of
estimation applied by the Syndicate’s in-house actuaries and
reserving team, is reviewed by external consulting actuaries.
These statistical techniques generally involve projecting, from past
experience, the development of claims over time to form a view of
the likely ultimate claims to be expected for more recent
underwriting, having regard to variations in the business accepted
and the underlying terms and conditions. The provision for claims
also includes amounts for internal and external claims handling
costs. For the most recent years, where a higher degree of
volatility may arise from projections, estimates may partly be
based on rating and other models of the business accepted, and
assessments of underwriting conditions.
Large loss case reserves are determined through careful analysis of
the individual claim, often with the advice of legal advisers.
Property catastrophe claims such as earthquake or hurricane
losses can take several months, or years to develop as adjusters
visit damaged property and agree claim valuations. Until all the
claims are settled it requires an analysis of the area damaged,
contracts exposed and the use of models to simulate the loss
against the portfolio of exposure in order to arrive at an estimate
of ultimate loss to the syndicate. There is uncertainty over the
adequacy of information and modelling of major losses for a
period of several months after a catastrophe loss. Consideration
should also be taken of factors which may influence the size of
claims such as increased inflation or a change in law.
The reinsurers’ share of provisions for claims is based on calculated
amounts of outstanding claims and projections for IBNR, net of
estimated irrecoverable amounts. The Syndicate will evaluate the
reinsurance programme in place for the class of business, the
claims experience for the year, and the security rating of the
reinsurance companies involved. The Syndicate uses a number of
statistical techniques to assist in these estimates.
Report and Syndicate Annual Accounts 2024 | 59
Hence the two most critical assumptions for claims provisions are
that the past is a reasonable predictor of future claims
development, and that rating and other models used, including
pricing models for recent business, are fair indicators of the
ultimate claims that will be incurred.
The uncertainty of such estimations generally decreases with the
time that has elapsed since policy inception. In addition short tail
claims such as property, where claims are typically notified and
settled quickly, will normally have less uncertainty after a few
years than long tail risks, such as some liability business, where it
may be several years before claims are fully advised and settled.
Where disputes exist over coverage under policies, or the relevant
law governing a claim changes, uncertainty in the estimation of
outcomes may increase.
The assessment of these provisions can be the most subjective
aspect of an insurer’s accounts, and may result in greater
uncertainty than found within the financial statements of other
businesses. The directors of the Managing Agent consider that the
provisions for gross claims and related reinsurance recoveries are
fairly stated on the basis of the information currently available.
However, ultimate liability can be varied by further information
and events and this may result in significant adjustments to the
provisions. Modifications to claims provisions established in prior
years are shown in the financial statements for the period in which
the adjustments are made. Provisions are not discounted for
investment earnings that may arise on funds retained to meet
future liabilities. The methods used, and the estimates made, are
reviewed regularly.
Fair value of financial assets
The Syndicate uses the following hierarchy for determining the fair
value of financial instruments by valuation technique:
a. Level 1: quoted (unadjusted) prices in active markets for
identical assets or liabilities.
b. Level 2: other techniques for which all inputs which have a
significant effect on the recorded fair value are observable,
either directly or indirectly.
c. Level 3: techniques which use inputs which have a significant
effect on the recorded fair value that are not based on
observable market data.
See Note 10 for details of financial instruments classified by fair
value hierarchy.
BASIS OF ACCOUNTING
Underwriting transactions
The underwriting accounts for each year of account are normally
kept open for three years before the result on that year is
determined. At the end of three years, outstanding liabilities can
normally be estimated with sufficient accuracy to permit the year
to be closed by payment of a reinsurance to close premium,
usually to the successor year of account.
The reinsurance to close premium is determined by reference to
outstanding technical provisions, (including those for outstanding
claims and unexpired risks) relating to the closed year and to all
previous closed years reinsured therein. Although this estimate of
net outstanding liabilities must be fair and reasonable, it is implicit
in the procedure that ultimate liabilities will differ from the
premium so determined. The reinsurance to close premium
transfers liability in respect of all claims, reinsurance premiums,
return premiums and other payments for the closing year (and
previous closed years reinsured therein) to the members of the
successor year of account. It also gives members the benefit of
refunds, recoveries, premiums due and other income insofar as
they have not been credited previously.
Gross premiums are allocated to years of account on the basis of
the inception date of the policy. Commission and brokerage are
charged to the year of account to which the relevant policy is
allocated. Policies written under binding authorities, lineslips or
consortium arrangements are allocated to the year of account into
which the arrangement incepts. Additional and return premiums
follow the year of account of the original premium. Premiums are
shown gross of brokerage payable, and exclude taxes and duties
levied on them.
Outward reinsurance premiums are attributed to the same year as
the original risk being protected.
Notes to the Underwriting Year Accounts
for the 2022 closed year of account at 31 December 2024
60 | WESTFIELD SPECIALTY > SYNDICATE 1200
1. ACCOUNTING POLICIES (CONTINUED)
Gross claims paid are allocated to the same year of account where
the corresponding premiums are allocated, and include internal
and external claims settlement expenses. Notified claims are
estimated on a case-by-case basis as reported, with regard to any
information available from loss adjusters, and previous experience
of the cost of settling claims with similar characteristics.
Reinsurance recoveries are allocated to the year of account to
which the claim was charged.
Derivative financial instruments
The Syndicate uses derivatives in the form of forward foreign
currency contracts. Such derivative financial instruments are
initially recognised at fair value on the date that the derivative
contract is entered into and are subsequently re-measured at fair
value through the profit or loss at each reporting period end date.
The Syndicate has not used hedge accounting for any of its
derivatives.
Investments and investment return
Investments are stated at current value as at the reporting period
end date. For this purpose listed investments and overseas
deposits are stated at market value and deposits with credit
institutions are stated at cost. Unlisted investments for which a
market exists are stated at the average price at which they are
traded on the reporting period end date or the last trading day
before that date.
Investment return is wholly allocated to the general business
technical account.
Income (including interest accrued at the time of purchase, sale or
revaluation of fixed interest securities) and realised and unrealised
capital appreciation are allocated to underwriting accounts in
proportion to average balances on each underwriting account for
the calendar year.
Overseas deposits
Overseas deposits are stated at market value as at the reporting
period end date.
Taxation
The result for a closed year, net of personal expenses, is accounted
to Names and members’ agents, on behalf of the underwriting
members for whom they act.
Under Schedule 19 of the Finance Act 1993 managing agents are
not required to deduct basic rate income tax from trading income
of the Syndicate. Managing agents can recover UK basic rate
income tax deducted from Syndicate investment income, and
consequently any distribution to members or members’ agents is
gross of tax. Capital appreciation falls within trading income and
will also be distributed gross of tax. It remains the responsibility of
underwriting members to agree their personal tax liabilities with
the HM Revenue and Customs.
All payments on account of United States and Canadian federal
income tax, pending receipt of final assessments and
reimbursements by Lloyd’s, are included in the statement of
financial position under the heading of other debtors. It is the
personal responsibility of members resident in the United States or
Canada, to agree and settle their United States or Canadian
taxation liabilities. Members resident in other countries for tax
purposes are responsible for agreeing and settling any tax liabilities
with the taxation authorities of their country of residence.
Syndicate operating expenses
Syndicate operating expenses are allocated to the year of account
for which they are incurred.
Where expenses are incurred by or on behalf of the Managing
Agent for the administration of the managed Syndicate, they are
apportioned using methods appropriate to the type of expense.
Expenses which are incurred jointly for the Managing Agent and
managed Syndicate are apportioned between the Managing Agent
and Syndicate on bases dependent upon the amount of work
performed, resources used and the volume of business transacted.
Syndicate operating expenses do not include expenses incurred in
the settlement of claims.
Report and Syndicate Annual Accounts 2024 | 61
Pension costs
Westfield Specialty Management Services Ltd is a service company
which operates a defined contribution pension scheme. Pension
contributions are recharged to group companies and the Syndicate
based on employees’ time and are included within net operating
expenses.
Profit commission
Profit commission within these financial statements is charged at a
rate of 15% on the first 15% of the return on stamp and 20%
thereafter. Profit commission is payable on distributed results and
is subject to the operation of a three-year deficit clause.
Insurance debtors and creditors
Notes 11, 12, 16 and 17 show the totals of all the Syndicate’s
outstanding debit and credit transactions as processed by
Velonetic Ltd; no account has been taken of any offsets which may
be applicable in calculating the net amounts due between the
Syndicate and each of its counterparty insureds, reinsurers or
intermediaries as appropriate.
Basis of currency translation
Transactions in Euros, US, Canadian, Australian dollars and
Japanese yen are translated at average rates of exchange for each
calendar year as a proxy for transaction rates. The exception to this
is that the reinsurance to close receivable and payable are
translated at the transaction rates of exchange ruling at the
effective dates of the contracts. Underwriting transactions
denominated in other foreign currencies are included at the rate of
exchange ruling at the date the transaction is processed.
Monetary assets and liabilities are retranslated into sterling at the
rate of exchange at the reporting period end date unless contracts
to sell currency for sterling have been entered into prior to the
year end, in which case the contracted rates are used. Any
differences are included in profit and loss on exchange.
Where euros or Canadian dollars are bought or sold relating to the
profit or loss of a closed underwriting account after 31 December,
any exchange profit or loss arises in the underwriting account into
which the liabilities of that year have been reinsured. Where the
US dollar element of the profit or loss of a closed underwriting
account is bought or sold by members on that year, any exchange
profit or loss accrues to those members.
The statement of financial position rates of exchange used in
respect of items in these accounts were:
31 December 2024
EUR 1.21
USD 1.26
CAD 1.81
Notes to the Underwriting Year Accounts
for the 2022 closed year of account at 31 December 2024
62 | WESTFIELD SPECIALTY > SYNDICATE 1200
2. SEGMENTAL ANALYSIS
An analysis of the technical account balance before investment return is set out below:
2022 year of account
Gross premiums
written and
earned
£000
Gross claims
incurred
£000
Gross operating
expenses
£000
Reinsurance
balance
£000
Underwriting
Result
£000
Direct insurance:
Accident and health
9,441
(6,436)
(4,090)
(278)
(1,363)
Marine
35,244
(13,721)
(11,538)
(3,286)
6,699
Energy –Marine
14,871
(13,353)
(4,103)
(4)
(2,589)
Energy – Non Marine
16,498
(24,652)
(2,894)
5,480
(5,568)
Fire and other damage to property
97,767
(69,885)
(19,125)
(7,978)
779
Third party liability
167,878
(88,670)
(74,046)
7,974
13,136
Pecuniary loss
28,852
(11,068)
(7,527)
(10,410)
(153)
370,551
(227,785)
(123,323)
(8,502)
10,941
Reinsurance acceptances
377,503
(285,581)
(56,546)
(10,320)
25,056
Total
748,054
(513,366)
(179,869)
(18,822)
35,997
Reinsurance acceptances includes the reinsurance to close premium of £126,978,000 received from the 2021 year of account of Syndicate
1200. All premiums written are for contracts concluded in the UK.
The analysis of gross premiums by geographical area is as follows:
North America
Caribbean and
Latin America
UK
Rest of Europe
Oceania
Rest of
World
Total
£000
244,084
65,834
101,235
49,065
51,549
109,309
621,076
3. REINSURANCE PREMIUM RECEIVED TO CLOSE THE 2021 ACCOUNT
2022
year of account
£000
Gross reinsurance to close received
194,831
Reinsurance recoveries anticipated
(67,853)
Reinsurance to close premium received, net of reinsurance
126,978
Report and Syndicate Annual Accounts 2024 | 63
4. REINSURANCE PREMIUM PAYABLE TO CLOSE THE 2022 YEAR OF ACCOUNT
2022
year of account
£000
Gross outstanding claims
133,855
Reinsurance recoveries anticipated
(35,469)
Net outstanding claims
98,386
Provision for gross claims incurred but not reported
213,662
Reinsurance recoveries anticipated
(74,400)
Provision for net claims incurred but not reported
139,262
Gross claims handling provision
2,559
Net premium for reinsurance to close
240,207
The 2022 year of account has been reinsured to close into the 2023 year of account of Syndicate 1200.
5. TECHNICAL ACCOUNT BALANCE BEFORE ALLOCATED INVESTMENT RETURN AND NET OPERATING EXPENSES
2022
year of account
£000
Balance excluding investment return and operating expenses, other than acquisition costs
Profit attributable to business allocated to the 2022 pure year of account
60,795
Profit attributable to business reinsured into the 2022 year of account
(5,175)
55,620
Allocated investment return transferred from the non-technical Account
13,760
Net operating expenses other than acquisition costs
(27,979)
41,401
6. NET OPERATING EXPENSES
2022
year of account
£000
Brokerage and commissions
138,452
Other acquisition costs
13,438
Acquisition costs
151,890
Administrative expenses excluding personal expenses
20,277
Lloyd’s central fund contributions
2,112
Lloyd’s subscriptions
2,064
Managing agent’s fees
3,000
Managing agent’s profit commission
526
Reinsurers’ commissions and profit participations
(30,248)
149,621
Administrative expenses include:
Auditors’ remuneration consisting of audit and other services
589
Notes to the Underwriting Year Accounts
for the 2022 closed year of account at 31 December 2024
64 | WESTFIELD SPECIALTY > SYNDICATE 1200
7. EMPLOYEES
All staff are employed by Westfield Specialty Management Services Ltd (WSMS). The following amounts were recharged to the Syndicate as
salary costs (this excludes any benefits where the costs are retained elsewhere in the Managing Agent or other companies in the group):
2022
year of account
£000
Wages and salaries
20,918
Social security costs
3,636
Pension costs
1,708
Other
1,056
27,318
The average number of full-time equivalent employees employed by WSMS but working for the Syndicate during the three years was
as follows:
2022
year of account
Underwriting
75
Administration and finance
99
Claims
14
Investments
1
189
8. DIRECTORS’ AND ACTIVE UNDERWRITER’S EMOLUMENTS
The directors of Westfield Specialty Managing Agency Ltd received the following aggregate remuneration, charged to the Syndicate and
included within net operating expenses:
2022
year of account
£000
Emoluments
933
Payments to defined contribution pension schemes
–
933
The active underwriter received the following aggregate remuneration, charged as a Syndicate expense:
2022
year of account
£000
Emoluments
355
Payments to defined contribution pension schemes
–
355
The above amounts exclude any benefits not recharged to the Syndicate.
The active underwriter’s profit share remuneration is charged to Westfield Specialty Managing Agency Ltd and will be reported in that
company’s accounts.
Report and Syndicate Annual Accounts 2024 | 65
9. NET INVESTMENT INCOME AND EXPENSES
2022
year of account
£000
Income from investments
8,161
Gains on realisation of investments
4,906
Losses on realisation of investments
(481)
Unrealised gains on investments
4,094
Unrealised losses on investments
(2,814)
13,866
Investment management expenses, including interest
(106)
13,760
For further information regarding investment income and average funds, please refer to note 10 of the annual accounts.
10. INVESTMENTS
2022 year of account
Market
value
£000
Cost
£000
Shares and other variable yield securities and units in unit trusts
18,153
18,153
Debt securities and other fixed income securities
212,713
207,355
Participation in investment pools
2
2
230,868
225,510
The following table shows financial investments recorded at fair value analysed between the three levels in the fair value hierarchy.
Level 1
£000
Level 2
£000
Level 3
£000
Total
£000
Shares and other variable yield securities and units in unit trusts
18,153
–
–
18,153
Debt securities and other fixed income securities
757
211,956
–
212,713
Participation in investment pools
–
2
–
2
Overseas Deposits
1,622
27,458
–
29,080
20,532
239,416
–
259,948
11. DEBTORS ARISING OUT OF DIRECT INSURANCE OPERATIONS
2022
year of account
£000
Due within one year: intermediaries
9,930
Notes to the Underwriting Year Accounts
for the 2022 closed year of account at 31 December 2024
66 | WESTFIELD SPECIALTY > SYNDICATE 1200
12. DEBTORS ARISING OUT OF REINSURANCE OPERATIONS
2022
year of account
£000
Due within one year
27,715
13. OTHER DEBTORS
2022
year of account
£000
Due within one year:
Due from Westfield Specialty Direct Ltd
3,185
Federal income tax
1,275
Sundry debtors
1,177
Members’ agents’ fees
39
5,676
14. OTHER ASSETS
2022
year of account
£000
Overseas deposits in Australia
17,314
Overseas deposits in Illinois and Kentucky, USA
29
Overseas deposits in South Africa and other countries
11,737
29,080
Overseas deposits were placed as a condition of carrying on business in these territories.
15. MEMBERS’ BALANCES
2022
year of account
£000
Profit for the 2022 closed year of account
41,401
Members’ agents’ fees (see Note 13)
(39)
Amounts due to members at 31 December 2024
41,362
Report and Syndicate Annual Accounts 2024 | 67
16. CREDITORS ARISING OUT OF DIRECT INSURANCE OPERATIONS
2022
year of account
£000
Due within one year: due to intermediaries
4,287
17. CREDITORS ARISING OUT OF REINSURANCE OPERATIONS
2022
year of account
£000
Due within one year
8,998
Due after more than one year
33,292
42,290
18. OTHER CREDITORS
2022
year of account
£000
Due within one year:
Due to corporate members
430
Profit commission payable
526
Funds withheld under whole account quota share reinsurance arrangements
4,263
Uncleared investment trades
542
Inter-year loan
13,491
Service company commissions
25
19,277
19. MOVEMENT IN CASH, PORTFOLIO INVESTMENTS AND FINANCING
Consideration for the net reinsurance to close premium payable comprised:
Consideration
received
£000
Cash at bank and in hand
44,408
Overseas deposits
29,080
Portfolio investments
230,868
Debtors
28,653
Creditors
(51,401)
2022 Profit to be distributed
(41,401)
Consideration for net reinsurance to close premium received
240,207
Notes to the Underwriting Year Accounts
for the 2022 closed year of account at 31 December 2024
68 | WESTFIELD SPECIALTY > SYNDICATE 1200
20. EVENTS AFTER THE REPORTING PERIOD
The reinsurance premium to close the 2022 year of account at 31 December 2024 was agreed by the Managing Agent on 5 February 2025.
The technical provisions at 31 December 2024 have been presented in the statement of financial position under the headings “reinsurance
recoveries anticipated on gross reinsurance to close premium payable” and “reinsurance to close premium payable, gross amount” in
accordance with the format prescribed by the Syndicate Accounting Byelaw. The following amounts will be transferred to members’ personal
reserve funds in June 2025 in Sterling:
£000
2022 year of account
41,362
21. RELATED PARTIES
All related party information is provided in note 22 to the annual accounts. This is shown on page 31.
22. PENSION OBLIGATIONS
WSMS operates a defined contribution pension scheme for its employees including syndicate staff. Pension contributions relating to syndicate
staff are charged to the Syndicate and included within net operating expenses. The cost of the contributions made was £1,708,000 and there
were no outstanding or prepaid contributions at the end of this year.
23. WESTFIELD SPECIALTY DIRECT LTD
Westfield Specialty Direct Ltd (WSDL) is a 100 percent subsidiary of WSMA, set up to write small to medium size commercial liability risks. Any
profits or losses incurred by the UK branch of WSDL are paid to or reimbursed by the Syndicate. WSDL received commission income of
£41,000 in respect of premium signed in respect of the 2022 year of account. No directors or officers of the Managing Agent receive any
remuneration or benefits from WSDL.
Seven Year Summary
(Unaudited – not forming part of the Syndicate Underwriting Year Accounts)
Report and Syndicate Annual Accounts 2023 | 69
Year of account
2021
2022
Syndicate allocated capacity in £’000
500,000
500,000
Number of underwriting members
10
10
Aggregate net premiums in £’000
425,514
409,179
Capacity utilised
92.3%
96.5%
Net capacity utilised
59.2%
60.2%
Underwriting result as % of stamp
5.0%
8.3%
Results for an illustrative share of £10,000
£
£
Gross premiums
12,327
12,422
Outward reinsurance premiums
(3,817)
(4,238)
Net premiums
8,510
8,184
Reinsurance to close premium received, net of reinsurance
–
2,540
Gross claims paid
(3,576)
(3,266)
Reinsurers’ share
1,297
1,059
Net claims
(2,279)
(2,207)
Reinsurance to close premium payable gross amount
(3,940)
(7,002)
Reinsurance recoveries anticipated on reinsurance to close premium payable
1,362
1,362
Reinsurance to close premium payable, net of reinsurance
(2,578)
(4,804)
Brokerage and commission
(2,303)
(2,164)
Other acquisition costs
(283)
(269)
Administrative expenses, before personal expenses
(489)
(406)
Syndicate operating expenses
(3,075)
(2,838)
Balance on technical account
578
874
Investment return
50
275
Profit/(loss) on exchange
24
(167)
Profit before personal expenses
652
982
Illustrative personal expenses
Managing agent’s fee
(59)
(60)
Managing agent’s profit commission
(3)
(11)
Lloyd’s central fund contribution
(45)
(42)
Lloyd’s subscription
(44)
(41)
Profit after illustrative profit commission and illustrative personal expenses
501
828
The 7 Year Summary shows only the performance of the closed year(s) of account since the 2020 and prior years of account were reinsured to
close by a third party.
