Syndicate 1100

Annual report and accounts

For the period ended 31 December 2024

Apollo Syndicate 1100 | Annual Report and Accounts 2024

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Contents

Apollo Syndicate 1100 | Annual Report and Accounts 2024

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Directors and Administration

Managing agent

Apollo Syndicate Management Limited

Registered office

One Bishopsgate

London

EC2N 3AQ

Company registration number

09181578

Company secretary

PC Bowden

Directors

AC Winther

(Non-Executive Chair)

FA Buckley

(Non-Executive Director)

M Cramér Manhem

(Non-Executive Director)

SR Davies

(Non-Executive Director)

SE Hill

(Non-Executive Director)

RD Littlemore

(Non-Executive Director)

DCB Ibeson

(Chief Executive Officer)

TL McHarg

VVV Mistry

JR Slaughter

Active Underwriter

MJ Newman

Registered Auditor

Ernst & Young LLP

25 Churchill Place

Canary Wharf

London

E14 5EY

Apollo Syndicate 1100 | Annual Report and Accounts 2024

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present their annual report, which

incorporates the strategic review, for Syndicate 1100

period ended 31

December 2024.

This Annual Report is prepared using the annual basis of accounting as required by Statutory

Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable

, Financial Reporting Standard 103:

.

Accounts Instructions V2.0 as modified by the

Frequently Asked Questions Version 1.1

Principal activity

The syndicate is a captive syndicate underwriting the first party risks of the parent group of the sole

supporting corporate member Quaerere (Corporate Member) Limited.

Syndicate 1100 benefits from

-

and AA- (Very Strong) from Fitch.

25.0m (

.3

of

1.17). Stamp capacity for the 2025 year of account is £26.0m (

30.7

of

1.18).

Results

Notes:

The claims ratio is the ratio of net claims incurred to net premiums earned.

The expense ratio is the ratio of net operating expenses to net premiums earned.

The combined ratio is the sum of the claims and expense ratios.

The expense and combined ratios exclude investment return and foreign exchanges gains and losses

.

ASML uses the key performance indicators shown in the table above, to measure the performance of

the syndicate against its objectives and overall strategy. These are assessed against plan and are

subject to regular review. The syndicate predominantly writes business denominated in Euros and

therefore reports in that currency.

Apollo Syndicate 1100 | Annual Report and Accounts 2024

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(continued)

Review of the business

Syndicate 1100 underwrote gross written premium in 2024 of

22.9m.

2024 calendar year result

The result for the 2024 calendar year is a profit of

m with a combined ratio of 89.9%. The 2024

calendar year result was slightly below plan due to a reduced amount of premium being written in the

Construction and Professional Liability classes with the latter not being written at all. The calendar year

was also impacted by an increase in the gross ultimate loss ratio for the Construction class during the

fourth quarter from 36% to 46%.

The earned result for the 2024 year of account in the calendar year was a profit of

. The year is

forecast to be profitable at closure.

Capital

available due to the diversification of business written in Syndicate 1100

Syndicate 1100

arket in total. The SCR, together

wit

hree links:

1. All premiums received by syndicates are held in trust as the first resource for settling

2.

intended primarily to cover circumstances where syndicate assets are

insufficient to meet participating

underwriting liabilities. FAL is set with reference to

the ECA

s of the syndicates that the member participates on. Since member FAL is not under

the control of the managing agent, it is not shown in the syndicate accounts. The managing

agent is, however, able to make a call on

FAL to meet liquidity requirements or to

settle underwriting losses if required; and

3.

also retains the right to request a callable contribution equal to 5% of

capacity on the

syndicate.

Principal risks and uncertainties

terms of reference from the ASML Board and its committees as part of a three lines of defence model.

The ASML Board and its committees review and approve the risk management policies and meet

regularly to approve any commercial, regulatory and organisational requirements of these policies.

capital requirement setting process. The ERM function is also responsible for maintaining the

esses and provides regular updates to

the ASML Board. The syndicate ORSA report is approved by the Board annually.

Apollo Syndicate 1100 | Annual Report and Accounts 2024

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(continued)

Principal risks and uncertainties (continued)

meet its objectives and that it is not realistic or possible to eliminate risk entirely. The principal risks and

uncertainties facing the syndicate have been identified as strategic risk, insurance risk, regulatory risk,

operational risk, and financial risk (comprising credit risk, liquidity risk and market risk). A risk owner

has been assigned responsibility for each risk, and it is the responsibility of that individual periodically

to assess the impact of the risk and to ensure appropriate risk mitigation procedures and controls are

in place and operating effectively. External factors facing the business and the internal controls in place

are routinely reassessed and changes made when necessary. The overarching risk framework is

overseen by the ASML Risk Committee on behalf of the ASML Board. The risk culture of the business

is Board led, with new initiatives requiring an objective risk assessment and opinion prior to approval.

Strategic risk is the risk that inadequate, ineffective, or inappropriate business decisions result in

negative impacts on the ability to execute the business objectives and strategy, hence on the

performance of the syndicate. The ASML Board has ultimate responsibility for overseeing the execution

of the approved strategy and consequently the associated strategic risk. All areas of the business are

encouraged to identify areas of potential uncertainty that could impact plan execution and to identify

emerging risks.

Insurance risk refers to fluctuations in the timing, frequency and severity of insured events, relative to

expectations at the time of underwriting. It comprises premium risk and reserving risk. The ASML

Underwriting Committee oversees the management of premium risk and the implementation of a

disciplined underwriting strategy with a robust control and governance framework that is focused on

writing quality business at an acceptable price, and the purchase of a comprehensive outwards

reinsurance programme.

accumulation events both on a gross and net of reinsurance basis and adherence to these limits is

reported monthly to the ASML Underwriting Committee. The ASML Reserving Committee oversees the

overall management of reserving risk. Reserving risk is managed through the use of proprietary and

standardised modelling techniques, internal and external benchmarking, review of claims development

and the ongoing oversight from an independent external reserving process. An independent Statement

The reserving process is overseen by and reports through the ASML Audit Committee.

Regulatory risk is the financial loss or inability to conduct normal business activities owing to a breach

of regulatory requirements or failure to respond to regulatory change. ASML is a regulated entity and

therefore is required to comply with the requir

appropriate level of skilled resources in place to meet its regulatory obligations, including compliance,

risk management and internal audit functions.

Operational risk is the risk of a loss resulting from inadequate or failed internal processes, people and

systems or from external events. The syndicate is constantly exposed to operational risk as this covers

the uncertainties and hazards of undertaking day-to-day business. Controls have been put in place and

documented to try to ensure that these risks are managed on a proportionate basis and within risk

appetite. As operational risks apply across the entire business, all committees have some level of

oversight for operational risk. However, the ASML Change Committee manage risks relating to changes

in systems and processes, and the ASML Board Risk Committee have oversight of any risk events

which require escalation.

Apollo Syndicate 1100 | Annual Report and Accounts 2024

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(continued)

Principal risks and uncertainties (continued)

Financial risk for the syndicate covers all risks related to financial investment and the ability to pay

creditors, and includes credit risk, liquidity risk and market risk. In relation to assets held, an investment

appetite is in place and has been approved by the Board.

the Investment and Treasury Oversight Group.

Credit risk is the risk of financial loss to the syndicate if a counterparty to a financial instrument or a

reinsurance agreement fails to discharge a contractual obligation. ASML manages credit risk by placing

limits on exposure to a single counterparty by reference to the credit rating of the counterparty. On a

quarterly basis the Finance Committee reviews credit exposures, reinsurer security and counterparty

limits, with further oversight provided by the ASML Board and Audit Committee.

its insurance contracts and financial liabilities as they fall due, or that they can only be met by incurring

managing liquidity risk includes use of daily liquidity monitoring,

quarterly cash flow forecasts and management of asset duration. Contingency funding plans are in

place to ensure that adequate liquid financial resources are available to meet obligations as they fall

due in the event of reasonably foreseeable abnormal circumstances.

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, excluding those that are caused by credit downgrades which are

included under credit risk. Market risk comprises three key components: interest rate risk, currency risk

and investment risk. For each of the major components of market risk the syndicate has policies and

procedures in place which detail how each risk should be managed and monitored. The use of financial

for speculative purposes. The Board has agreed key risk indicators and approved the corresponding

risk appetite for each measure.

A quantitative analysis of the risks set out above is included in note 4 to the annual accounts. A traffic

light indicator is used for monitoring current levels of risk based upon agreed thresholds and tolerances.

Emerging risks

An emerging risk is defined as a risk that is new, unforeseen, or unfamiliar. It may result from new or

increased exposure that could pose both as an opportunity or threat to the existing business risk

appetite or tolerance.

The Emerging Risk Working Group, is a cross-agency forum, that enables a diverse set of practitioners

to review thematic risk considerations. The results of these reviews can lead to further deep dive

assessments that in turn are reported through the governance structures to the ASML Board Risk

Committee.

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Corporate governance

The ASML Board is chaired by Angus Winther, who is supported by five further non-executive directors

and all except Stuart Davies are independent. Monica Cramér Manhem was appointed as Non-

Executive Director on 6 June 2024.

Martin Hudson stepped down on 28 February 2025. Robert

Littlemore was appointed as a Non-Executive Director on 28 February 2025.

David Ibeson is

the Chief Executive Officer and there were three further executive directors.

With effect from 1 January

2024, Taryn McHarg, the Apollo Group Chief Financial Officer, was appointed as an executive director

and James MacDiarmid, Hayley Spink and Simon White stepped down from the Board, whilst remaining

on the Executive Committee of ASML.

Defined operational and management structures are in place and terms of reference exist for the Board

and all Board and Management Committees.

The ASML Board meets at least four times a year and more frequently when business needs require.

The Board has a schedule of matters reserved for its decision and is supported by the Audit Committee,

the Risk Committee and the Remuneration and Nominations Committee. These supporting committees

are comprised of non-executive directors and with the exception of Stuart Davies, all members of the

Audit Committee and Risk Committee are independent. All members of the Remuneration and

Nominations Committee are independent.

Section 172 statement

The directors adopt the responsibilities to promote the success of the syndicate as if s172 of the

Companies Act 2006 were applicable and have acted in accordance with these responsibilities during

the year. The Board has identified the following key stakeholders: capital providers to the managed

Throughout the year the Board considered the wider impact of strategic and operational decisions on

its stakeholders. Examples include the development and execution of the business plans for the

syndicate; the assessment and raising of capital; communications with capital providers; and changes

to Board composition. The Board considers that the interests of all stakeholders were aligned for these

decisions.

The support and engagement of capital providers of the syndicate is imperative to the future success

of our business.

ASML maintain open and transparent relationships with our

relationships being managed through our compliance team. Regular meetings are held with

Board.

work to develop and document our Environmental, social, and governance

ESG

principles and

standards and assess our current business model against these standards. There is a defined referral

process for underwriting risks to adhere to our ESG appetite and manage potential reputational risk.

Apollo Syndicate 1100 | Annual Report and Accounts 2024

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(continued)

Section 172 statement (continued)

ESG considerations are integrated into the design of the investment strategy and asset allocation, and

ongoing attention is given to staff engagement, particularly around

.

Further work on ESG activities will continue through 2025.

We have put in place arrangements to assist in managing the financial risks and opportunities

associated with the effects of climate change and to ensure adequate oversight and control of this area

in relation to underwriting, reserving, investment management and operations. The business meets the

requirements for PRA Supervisory Statement 3/19. Whilst the ASML Chief Risk Officer retains overall

accountability for coordinating the approach to managing this risk within ASML, the responsibility is

allocated to relevant managers of each business area. Further developments to ensure appropriate

management of these risks and opportunities will continue through 2025.

Staff matters

We believe that our people are our most valuable asset. Attracting, retaining and nurturing talent is

essential to our success. We are committed, to creating a work environment where employees feel

engaged through communication, acknowledgment and ongoing growth opportunities. We actively

support and promote DEI as well as mental health and wellbeing to ensure that all staff members feel

appreciated, supported and can perform at their best.

We aspire to function as a team where respect and collaboration are standard practices. Our hybrid

working aims to empower employees and to encourage a culture of communication and cooperation.

We have channels for staff to express concerns and to share making our workplace safe, encouraging

and innovative.

insurance market, providing

compensation, benefits, and terms designed to attract and retain top talent. A key focus is on ensuring

our employees perform at their best with opportunities for skill enhancement, to develop their

capabilities and advance their careers within ASML. This is an integral focus of our succession planning

strategy.

Business operations

ASML aims to maintain a lean, efficient operating model utilising technology and outsourcing

arrangements enabling flexibility and scalability to meet the demands of the business. We continue to

invest in resources across the business in order to ensure that there is an effective operating model

and robust three lines of defence model.

Blueprint Two initiatives offer several processing efficiency gains for the market, and we believe

we are well positioned to adopt the new digital services to maximise the benefit to ASML, its syndicates

and its capital providers.

ASML continues to successfully maintain a hybrid working environment with all employees able to work

effectively, both remotely and from the office, with suitable access to business systems.

-Party Oversight policies, Apollo

maintains a disciplined approach to operational resilience. We continue to focus on ensuring we

maintain robust and resilient plans to prevent, respond and recover from operational disruptions with

the primary objective to protect our customers and the integrity of our business.

Apollo Syndicate 1100 | Annual Report and Accounts 2024

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(continued)

Environmental, social and governance

-related

high-level seeks to identify areas of improvement and to ensure progress against the ESG strategy

approved by the ASML Board.

ASML is committed to a long-term sustainable approach to protecting the environment, balancing

underwriting and investment practices are governed by ESG risk appetites that were originally

implemented in 2022 and are reviewed at least annually. ASML is also working to identify new

opportunities that support the transition to a low carbon sustainable economy, including through the

have included:

Integrating climate risk formally into the ERM and governance frameworks which included

enhancements to climate related stress and scenario testing,

Implementing new Investment Guidelines to avoid investing in sectors that do not align with the

ESG risk appetites,

Joining the Partnership for Carbon Accounting Financials and commenced work to baseline

-associated emissions, and

At Apollo our people are at the heart of everything we do. We operate a zero-tolerance policy to bullying,

harassment, and discrimination. This includes protected characteristics under the Equality Act of 2010,

as well as neurodiversity, parental and caring responsibilities, socio-economic status, and working

patterns.

ASML is dedicated to fostering a diverse, equitable, and inclusive workplace, with a focus on inclusive

such, we have implemented several inclusion initiatives and have a comprehensive DEI strategy in

place. Employees have access to mental health and wellbeing resources through independent partners,

as well as additional support through private medical services.

ASML monitors gender and racial diversity metrics, employee satisfaction, and governance related

metrics. This information is used by the ASML Board to track progress against the ESG Strategy.

scopes 1 and 2 and several scope 3 categories (which cover purchased goods and services, fuel and

energy-related activities, waste generated in operations, employee commuting, and upstream leased

assets). Our Scope 1 and 2 GHG are reported to UK Companies House under the Streamline Energy

and Carbon Reporting framework

Apollo Syndicate 1100 | Annual Report and Accounts 2024

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(continued)

Environmental, social and governance (continued)

Directors

The directors who held office at the date of signing this report are shown on page 3.

Annual general meeting

The directors do not propose to hold an Annual General Meeting for the syndicate.

Disclosure of information to the auditor

Each person who is a director of the managing agent at the date of approving this report confirms that:

so far as the director is aware, there is no relevant audit information of which the syndicate's

auditor is unaware; and

each director has taken all the steps that they ought to have taken as a director in order to make

themselves aware of any relevant audit information and to establish that the syndicate's auditor

is aware of that information.

Auditor

Ernst & Young LLP has been appointed

formal notification of the appointment of Ernst & Young LLP as auditor of Syndicate 1100 for this year.

Events after the balance sheet date

The Board has considered events after the balance sheet date which, by their nature, are material to

the syndicate and no items have been identified for disclosure.

Future developments

For 2025, the syndicate will continue to write first party risks of the parent group of the sole supporting

corporate member.

I would like to take this opportunity to thank our staff for their hard work and commitment to the business

during the last year.

Approved by the Board.

TL McHarg

Chief Financial Officer

4 March 2025

Apollo Syndicate 1100 | Annual Report and Accounts 2024

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The Managing Agent is responsible for preparing the syndicate annual accounts in accordance with

applicable law and regulations In addition, in preparing the annual accounts, the Directors of the

Accounts Instructions V2.0 as modified by the Frequently Asked Questions Version 1.1 issued by

The Directors of the Managing Agent are responsible for the preparation and review of the iXBRL

tagging that has been applied to the Syndicate Accounts in accordance with the instructions issued by

systems, processes and internal controls to

result in tagging that is free from material non-

whether due to fraud or error.'

require the managing agent to prepare syndicate annual accounts as at 31 December each year in

accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting

Standards and applicable law). The syndicate annual accounts are required by law to give a true and

fair view of the state of affairs of the syndicate as at that date and of its profit or loss for that year.

In preparing the syndicate annual accounts, the managing agent is required to:

departures disclosed and explained in the notes to the syndicate annual accounts; and

business unless it is inappropriate to presume that the syndicate will do so.

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.

Legislation in the UK governing the preparation and dissemination of annual accounts may differ from

legislation in other jurisdictions.

Apollo Syndicate 1100 | Annual Report and Accounts 2024

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Syndicate 1100

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)),

, and other applicable law. Our responsibilities under those standards

section of our report. We are independent of the syndicate in accordance with the ethical requirements

that are r

Standard as applied to other entities of public interest, and we have fulfilled our other ethical

responsibilities in accordance with these requirements.

Apollo Syndicate 1100 | Annual Report and Accounts 2024

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Syndicate 1100 (continued)

The other information comprises the information included in the annual report and accounts, other than

are responsible for the other information contained within the annual report and accounts.

Our opinion on the syndicate annual accounts does not cover the other information and, except to the

extent otherwise explicitly stated in this report, we do not express any form of assurance conclusion

thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other

information is materially inconsistent with the syndicate annual accounts or our knowledge obtained in

the course of the audit or otherwise appears to be materially misstated. If we identify such material

inconsistencies or apparent material misstatements, we are required to determine whether this gives

rise to a material misstatement in the syndicate annual accounts themselves. If, based on the work we

have performed, we conclude that there is a material misstatement of the other information, we are

required to report that fact.

Apollo Syndicate 1100 | Annual Report and Accounts 2024

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Syndicate 1100 (continued)

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design

procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. The

risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one

resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional

misrepresentations, or through collusion.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed

below. However, the primary responsibility for the prevention and detection of fraud rests with both

those charged with governance of the managing agent and management.

Our approach was as follows:

We obtained a general understanding of the legal and regulatory frameworks that are applicable

to the syndicate and determined that the most significant are direct laws and regulations related to

al reporting framework (UK GAAP),

of other laws and regulations that may have a material effect on the syndicate annual accounts

included permissions and sup

We obtained a general understanding of how the syndicate is complying with those frameworks by

making enquiries of management, internal audit, and those responsible for legal and compliance

matters of the syndicate. In assessing the effectiveness of the control environment, we also

regulatory bodies; reviewed minutes of the Board and Risk Committee of the managing agent; and

gained an understanding of the managing agen

For direct laws and regulations, we considered the extent of compliance with those laws and

regulations as part of our procedures on the

.

For both direct and other laws and regulations, our procedures involved: making enquiries of the

directors of the managing agent and senior management for their awareness of any non-

compliance of laws or regulations, enquiring about the policies that have been established to

prevent non-compliance with laws and regulations by officers and employees, enquiring about the

the FCA and the PRA.

Apollo Syndicate 1100 | Annual Report and Accounts 2024

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Syndicate 1100 (continued)

The syndicate operates in the insurance industry which is a highly regulated environment. As such

the Senior Statutory Auditor considered the experience and expertise of the engagement team to

ensure that the team had the appropriate competence and capabilities, which included the use of

specialists where appropriate.

We assessed the susceptibility of the

including how fraud might occur by considering the controls that the managing agent has

established to address risks identified by the managing agent, or that otherwise seek to prevent,

deter or detect fraud. We also considered areas of significant judgement, complex transactions,

performance targets, economic or external pressures and the impact these have on the control

environment. Where this risk was considered to be higher, we performed audit procedures to

address each identified fraud risk, including:

-

Reviewing accounting estimates for evidence of management bias. Supported by our

Actuaries we assessed if there were any indicators of management bias in the valuation of

insurance liabilities and the recognition of earned premium; and

-

Evaluating the business rationale for significant and/or unusual transactions.

These procedures included testing manual journals and were designed to provide reasonable

assurance that the syndicate annual accounts were free from fraud or error.

A further description of our responsibilities for the audit of the financial statements is located on the

Other matter

Our opinion on the syndicate annual accounts does not cover the iXBRL tagging included within these

syndicate annual accounts, and we do not express any form of assurance conclusion thereon.

Apollo Syndicate 1100 | Annual Report and Accounts 2024

17

Statement of profit or loss and comprehensive

Income:

for the period ended

31 December 2024

All operations relate to continuing activities.

The accompanying notes on pages 23 to 39 form an integral part of these annual accounts.

Apollo Syndicate 1100 | Annual Report and Accounts 2024

18

Statement of profit or loss and comprehensive

income: (continued)

for the period ended 31 December 2024

The accompanying notes from page 23 to 39 form an integral part of these financial statements

.

Apollo Syndicate 1100 | Annual Report and Accounts 2024

19

Balance sheet

as at 31 December 2024

Apollo Syndicate 1100 | Annual Report and Accounts 2024

20

Balance sheet (continued)

as at 31 December 2024

The syndicate annual accounts on pages 17 to 39 were approved by the Board of Apollo Syndicate

Management Limited on 25

th

February 2025 and were signed on its behalf by:

TL McHarg

Chief Financial Officer

4 March 2025

Apollo Syndicate 1100 | Annual Report and Accounts 2024

21

Statement of changes in

balances

for the period ended 31 December 2024

Members participate on syndicates by reference to years of account and their ultimate result, assets

and liabilities are assessed with reference to policies incepting in that year of account in respect of their

membership of a particular year.

Apollo Syndicate 1100 | Annual Report and Accounts 2024

22

Statement of cash flows

for the period ended 31 December 2024

Apollo Syndicate 1100 | Annual Report and Accounts 2024

23

Notes to the financial statements

for the period ended 31 December 2024

1. Basis of preparation

Syndicate 1100 is supported by a single corporate member

s

Syndicate Management Limited, is One Bishopsgate, London, EC2N 3AQ.

Syndicate and Aggregate Accounts) Regulations 2008, Financial Reporting Standard 102 The Financial

Reporting Standard applicable in the UK and Republic of I

and the

Syndicate Accounts Instructions.

The annual accounts have been prepared on the historical cost basis, except for financial assets which

are measured at fair value through profit or loss.

Euro. All amounts have been rounded to the

nearest thousand and are stated in Euro unless otherwise indicated.

After making enquiries, the directors have a reasonable expectation that continued capital support will

be in place such that the syndicate will continue to write new business in future underwriting years of

account. Accordingly, they have

adopted the going concern basis of accounting in preparing the annual

accounts.

2. Critical accounting judgements and key sources of estimation uncertainty

In preparing these annual accounts, the directors of the managing agent have made judgements,

reported amounts of assets, liabilities, income, and expenses. Several of the estimates are based on

actuarial assumptions underpinned by historical experience, market data, and other factors that are

considered to be relevant. The measurement of the provision for claims outstanding, specifically IBNR

involves judgements and assumptions about the future that have the most significant effect on the

amounts recognised in the annual accounts.

Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on

an ongoing basis. Revisions to estimates are recognised in the period in which they are identified where

the revision affects only that period and future periods.

3.

There are no critical judgements, apart from those involving estimations (which are dealt with separately

Key sources of estimation uncertainty

The key assumptions concerning the future, and other key sources of estimation uncertainty at the

balance sheet date, that have a significant risk of causing a material adjustment to the carrying amounts

of assets and liabilities within the next financial year, are discussed below.

Apollo Syndicate 1100 | Annual Report and Accounts 2024

24

Notes to the financial statements (continued)

for the period ended 31 December 2024

3.

Critical accounting judgements and key sources of estimation uncertainty (continued)

Key sources of estimation uncertainty (continued)

Claims outstanding

The measurement of the provision for claims outstanding requires assumptions to be made about the

future that have a significant effect on the amounts recognised in the annual accounts.

The provision for claims outstanding comprises the estimated cost of settling all claims incurred but

unpaid at the balance sheet date and includes

IBNR

. This is a complex

area due to the subjectivity inherent in estimating the impact of claims events that have occurred but

for which the eventual outcome remains uncertain. The estimate of IBNR is generally subject to a

greater degree of uncertainty than that for reported claims.

The amount included in respect of IBNR is based on statistical techniques of estimation applied by the

Aon, the appointed actuaries. These techniques normally involve projecting based on past experience

the development of claims over time, as adjusted for expected inflation, to form a view of the likely

ultimate claims to be expected and, for more recent underwriting years, the use of industry benchmarks

and initial expected loss ratios from business plans. The syndicate writes classes of business for which

there is limited prior experience and considerable use is made of information obtained in the course of

pricing individual risks accepted and experience of analogous business. Account is taken of variations

in business accepted and the underlying terms and conditions. The provision for claims also includes

amounts in respect of internal and external claims handling costs.

Accordingly, the most critical assumptions as regards to claims provisions are that the past is a

reasonable indicator of the likely level of claims development, that the notified claims estimates are

reasonable and that the rating, inflation and other models used for current business are based on fair

reflections of the likely level of ultimate claims to be incurred.

The level of uncertainty with regard to the estimations within these provisions generally decreases with

the length of time elapsed since the underlying contracts were on risk.

estimate reserves are reviewed in detail by the Reserving Committee on a biannual basis. Given the

syndicate is fully aligned, no management margin is added to the reserves. These reserves are then

subject to further review by the Audit Committee on behalf of the Board. The directors consider that the

provisions for gross claims and related reinsurance recoveries are fairly stated on the basis of the

information currently available. The ultimate liability will vary as a result of subsequent information and

events, which may result in significant adjustments to the amounts provided. The estimate of the

provision for claims outstanding will develop over time and the estimated claims expense will continue

to change until all the claims are paid. The historical development of claims incurred estimates is set

out in the loss development triangles by year of account in note 5.

Apollo Syndicate 1100 | Annual Report and Accounts 2024

25

Notes to the financial statements (continued)

for the period ended 31 December 2024

4. Significant accounting policies

The following principal accounting policies have been applied consistently in accounting for items which

are

Gross premiums written

Premiums written comprise premiums on contracts of insurance incepted during the financial year as

well as adjustments made in the year to premiums on policies incepted in prior accounting periods.

Additional or return premiums are treated as a re-measurement of the initial premium. Estimates are

made for pipeline premiums, representing amounts due to the syndicate not yet received or notified.

Premiums are shown gross of brokerage payable and are exclusive of taxes and duties thereon.

Provisions for unearned premiums

Written premiums are recognised as earned over the life of the policy. Unearned premiums represent

the proportion of premiums written that relate to unexpired terms of policies in force at the balance sheet

date, calculated on the basis of earnings patterns reflecting the risk profile of the underlying policies or

time apportionment as appropriate.

Claims provisions

Gross claims incurred comprise the estimated cost of all claims occurring during the year, whether

reported or not, including related direct and indirect claims handling costs.

The provision for claims outstanding is assessed on an individual case by case basis and is based on

the estimated ultimate cost of all claims notified but not settled by the balance sheet date, together with

the provision for related claims handling costs. The provision also includes the estimated cost of IBNR

Unexpired risks provision

A provision for unexpired risks is made where claims and related expenses likely to arise after the end

of the financial period in respect of contracts concluded before that date are expected, in the normal

course of events, to exceed the unearned premiums and premiums receivable under these contracts

after the deduction of any acquisition costs deferred.

A provision for unexpired risks is calculated separately by reference to classes of business which are

regarded as managed together after taking into account relevant investment return. All the classes of

the syndicate are considered to be managed together.

Debtors and creditors

Debtors and creditors are recognised when due.

Which are classified as debtors and creditors as they

are non-derivative financial assets with fixed or determinable payments that are not quoted on an active

market. Debtors are measured at amortised cost less any provision for impairments. Creditors are

stated at amortised cost less any provision for impairments.

Investment return

Investment return is comprised of interest earned on the cash held at bank.

Apollo Syndicate 1100 | Annual Report and Accounts 2024

26

Notes to the financial statements (continued)

for the period ended 31 December 2024

4. Significant accounting policies (continued)

Net operating expenses

Net operating expenses include administrative expenses and the member

standard personal

expenses. Operating expenses are paid by ASML and recharged to the syndicate. No mark-up is

applied.

The managing agent charges a management fee of 0.75% of syndicate capacity. This expense is

recognised over the 12 months following commencement of the underwriting year to which it relates.

Foreign currencies

Transactions in foreign currencies are translated into Euros which is the functional and presentational

currency of the syndicate. Transactions in foreign currencies are translated using the exchange rates

at the date of the transactions if significant or otherwise at the appropriate average rates of exchange

for the period.

the functional currency at the rates of exchange at the balance sheet date. Non-monetary assets and

liabilities denominated in foreign currencies that are measured at fair value are retranslated to the

functional currency at the exchange rate at the date that the fair value was determined.

Non-monetary items denominated in foreign currencies that are measured at historic cost are translated

to the functional currency using the exchange rate at the date of the transaction. For the purposes of

foreign currency translation, unearned premiums and deferred acquisition costs are treated as

monetary items.

Foreign exchange differences arising on translation of foreign currency amounts are included in the

non-technical account.

Pension costs

ASML operates a defined contribution pension scheme. Pension contributions relating to managing

agency staff working on behalf of the syndicate are charged to the syndicate and included within net

operating expenses.

Taxation

Under Schedule 19 of the Finance Act 1993 managing agents are not required to deduct basic rate

income tax from trading income. In addition, all UK basic rate income tax deducted from syndicate

investment income is recoverable by managing agents and consequently the distribution made to the

member or the member agents is gross of tax. Capital appreciation falls within trading income and is

also distributed gross of tax.

No provision has been made for any United States Federal Income Tax payable on underwriting results

or investment earnings. Any payments on account made by the syndicate during the year on behalf of

the

has been made for any other overseas tax payable by the member on underwriting results.

Apollo Syndicate 1100 | Annual Report and Accounts 2024

27

Notes to the financial statements (continued)

for the period ended 31 December 2024

4. Significant accounting policies (continued)

Classification of insurance and reinsurance contracts

Insurance and reinsurance contracts are classified as insurance contracts where they transfer

significant insurance risk. If a contract does not transfer significant insurance risk it is classified as a

financial instrument. All of the Syndicates written contracts transfer significant insurance risk and

therefore are recognised insurance contracts.

5. Risk and capital management

Introduction and overview

This note presents information about the nature and extent of insurance and financial risks to which the

Enterprise risk management framework

The ASML ERM framework has been adopted and embedded by the syndicate. The primary objective

growth and achievement of a consistent financial performance, including failing to maximise

opportunities through informed and appropriate risk taking The Board of ASML has overall responsibility

for the establishment and oversight of the ERM framework. The Board has established an Audit

Committee and a Risk Committee which oversee the operation of

review and monitor the management of the risks to which the syndicate is exposed.

ASML has established an ERM function, together with terms of reference for the Board, its committees

and the associated Executive Management Committees which identify the risk management obligations

of each.

The function is supported by a clear organisational structure with documented authorities and

responsibilities from the Board to Executive Management Committees and senior managers using a

includes controls and business conduct standards.

The management of specific risk grouping is delegated to several executive committees: the Reserving

Committee is responsible for developing and monitoring insurance risk management policies; the

management of aspects of financial risks is the responsibility of the Finance Committee.

In addition, the syndicate is exposed to potential operational risks and the management of aspects of

these risks is the responsibility of the Operations and Change Committee. Accordingly, the ERM

function operates as the second line of defence above these committees. The ERM function reports

quarterly to the ASML Board and Risk Committee on its activities during the quarter and provides a

forward-looking view of the upcoming assurance activities

.

Apollo Syndicate 1100 | Annual Report and Accounts 2024

28

Notes to the financial statements (continued)

for the period ended 31 December 2024

5. Risk and capital management (continued)

Insurance risk

Insurance risk refers to fluctuations in the timing, frequency, and severity of insured events, relative to

expectations at the time of underwriting. It is comprised of premium risk and reserving risk and is the

principal risk the syndicate faces in the writing of insurance contracts.

Management of insurance risk

A key component of the management of insurance risk for the syndicate is a disciplined underwriting

strategy that is focused on writing quality business and not writing for premium volume.

Product pricing is designed to incorporate appropriate premiums for each type of assumed risk. The

together with limits on geographical and industry exposures to ensure that a well-diversified book is

maintained.

Contracts can contain a number of features which help to manage the insurance risk such as the use

of deductibles, or capping the maximum permitted loss, or number of claims (subject to local regulatory

and legislative requirements).

The table below shows the gross premium by the location of the insured as a proxy for risk location.

exposure to loss written in the calendar year by geographic

area.

The Reserving Committee oversees the management of reserving risk. The use of proprietary and

standardised modelling techniques, internal and external benchmarking and the review of claims

development are all instrumental in mitigating reserving risk.

Reserving analysis is performed on a biannual basis, liaising closely with underwriters and claims

personnel. The aim of this exercise is to produce a probability-weighted average of the expected future

cash outflows arising from the settlement of incurred claims and claims on unearned premium. These

projections include an analysis of claims deve

projections.

The Reserving Committee performs a comprehensive review of the projections. Following this review,

the Reserving Committee makes recommendations to the Audit Committee and Board as to the claims

provisions to be established.

The level of year end reserves is validated by external consulting actuaries through their report to

account at 31 December 2024.

Apollo Syndicate 1100 | Annual Report and Accounts 2024

29

Notes to the financial statements (continued)

for the period ended 31 December 2024

5. Risk and capital management (continued)

Sensitivity to insurance risk

The liabilities established could be significantly lower or higher than the ultimate cost of settling the

claims arising. This level of uncertainty varies between the classes of business and the nature of the

risk being underwritten and can arise from developments in case reserving for attritional losses, large

losses and catastrophes, or from changes in estimates of IBNR claims.

The following table presents the sensitivity of the value of insurance liabilities disclosed in the accounts

to potential movements in the assumptions applied within the technical provisions. Given the nature of

the business underwritten by the Syndicate, the approach to calculating the technical provisions for

each class can vary and as a result the sensitivity performed is to apply a beneficial and adverse risk

margin to the total insurance liability.

On a net of reinsurance basis, the effects are the same as no reinsurance is purchased by the Syndicate.

Financial risk

The financial risk faced by the syndicate is managed by ensuring that its financial assets are sufficient

to fund the obligations arising from its insurance contracts as they fall due. The primary objective of the

investment management process is to maintain capital value, which is of particular importance in volatile

financial market conditions. A secondary objective is to optimise the risk-adjusted total return whilst

being constrained by capital preservation and liquidity requirements.

Credit risk

Credit risk is the risk of financial loss to the syndicate if a counterparty fails to discharge a contractual

obligation.

Management of credit risk

The syndicate is exposed to the credit risk ASML limits the amount of cash and cash equivalents that

can be deposited with a single counterparty and maintains an authorised list of counterparties.

Exposure to credit risk

The carrying amount of financial assets and reinsurance assets represents the maximum credit risk

exposure.

Apollo Syndicate 1100 | Annual Report and Accounts 2024

30

Notes to the financial statements (continued)

for the period ended 31 December 2024

5. Risk and capital management (continued)

Credit risk (continued)

Exposure to credit risk (continued)

share of technical provisions, debtors arising out of direct insurance operations, debtors arising out of

reinsurance operations, cash and cash equivalents and overseas deposits that are neither past due,

nor impaired.

Debtors arising out of direct and reinsurance operations are comprised of pipeline premiums and

("LCA

). By their nature, it is

not possible to classify these balances by credit rating and therefore they are included as not rated in

the following tables.

Financial assets that are past due or impaired

The syndicate does not have any directly held receivables that are past due and impaired or any other

impaired assets at the reporting date. These debtors have been individually assessed for impairment

position, patterns of historical payment information, disputes and compliance with ASML terms and

conditions.

There are no impaired debtors arising from direct insurance or reinsurance operations.

Apollo Syndicate 1100 | Annual Report and Accounts 2024

31

Notes to the financial statements (continued)

for the period ended 31 December 2024

5. Risk and capital management (continued)

Credit risk (continued)

Liquidity risk

Liquidity risk is the

its insurance contracts and financial liabilities as they fall due or can only be met by incurring additional

costs.

forecasts are prepared and revised on a regular basis to predict cash outflows from insurance

contracts and overheads over the short, medium and long term;

the syndicate purchases assets with durations not greater than its estimated insurance contract

liabilities and expense outflows;

assets purchased by the syndicate are required to satisfy specified marketability requirements;

the syndicate maintains cash and liquid assets to meet daily calls; and

the syndicate regularly updates its contingency funding plans to ensure that adequate liquid

financial resources are in place to meet obligations as they fall due in the event of reasonably

foreseeable abnormal circumstances.

liquidity stress testing is performed for the syndicate, looking both at cash flow liquidity and shock

loss scenarios.

ASML maintains sufficient premium trust funds to meet daily liquidity requirements. ASML is able to

make cash calls from the member of the managed syndicate to fund losses in the event that funds are

needed ahead of closing the year of account. For insurance contracts, the contractual maturity is the

estimated date when the gross undiscounted contractually required cash flows will occur. Unearned

premium and deferred acquisition cost maturities reflect the expected claim payment profile.

Apollo Syndicate 1100 | Annual Report and Accounts 2024

32

Notes to the financial statements (continued)

for the period ended 31 December 2024

5. Risk and capital management (continued)

Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument or insurance

contract will fluctuate because of changes in market prices, excluding those that are caused by credit

downgrades which are included under credit risk. Market risk comprises three types of risk: interest rate

risk, currency risk and other price risk.

The objective of market risk management is to manage and control market risk exposures within

acceptable parameters, while optimising the return on risk within the framework set by the managing

Management of Market risk

For each of the major components of market risk the syndicate has policies and procedures in place

which detail how each risk should be managed and monitored. The management of each of these major

components of market risk and the exposure of the syndicate at the reporting date to each major

component are addressed below.

Interest rate risk

Interest rate risk arises primarily from the exposure to financial investments and overseas deposits.

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 wrote business primarily in Euro

s, Sterling and US Dollars and is therefore exposed to

currency risk arising from fluctuations in the exchange rates of its functional currency (Euros) against

these currencies.

The foreign exchange policy is to maintain assets in the currency in which the cash flows from liabilities

are to be settled in order to hedge the currency risk inherent in these contracts so far as is allowed by

regulatory requirements and for any profit or loss to be reflected in the net assets of the functional

currency.

Apollo Syndicate 1100 | Annual Report and Accounts 2024

33

Notes to the financial statements (continued)

for the period ended 31 December 2024

5. Risk and capital management (continued)

Currency risk (continued)

sensitivity to currency risk is presented in the table below. The table

shows the effect on profit or loss of reasonably possible changes in the relevant risk variable. The

sensitivity analysis assumes that all other variables remain constant and that the exchange rate

movement occurs at the end of the reporting period. The impact of exchange rate fluctuations could

differ significantly over a longer period. The occurrence of a change in foreign exchange rates may lead

to changes in other market factors as a result of correlations.

Apollo Syndicate 1100 | Annual Report and Accounts 2024

34

Notes to the financial statements (continued)

for the period ended 31 December 2024

5. Risk and capital management (continued)

Capital Management

and Markets Act 2000, and in accordance with the Solvency II Framework.

financial strength, licence and ratings objectives.

apply respectively at overall and member level only, not at syndicate level. Accordingly, the capital

Claims development

The following tables show the estimates of cumulative incurred claims, including both claims notified

and IBNR for the first year of underwriting at the reporting date. Balances have been translated at

exchange rates prevailing at 31 December 2024 in all cases.

Apollo Syndicate 1100 | Annual Report and Accounts 2024

35

Notes to the financial statements (continued)

for the period

ended 31 December 2024

6. Analysis of underwriting result

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

All premiums were underwritten in the United Kingdom.

7. Technical provisions

The table below shows changes in the insurance contract liabilities and assets from the beginning of

the period to the end of the period.

Apollo Syndicate 1100 | Annual Report and Accounts 2024

36

Notes to the financial statements (continued)

for the period ended 31 December 2024

8. Net operating expenses

9

Administrative expenses include fees payable to the auditors and their associates (exclusive of VAT).

10. Staff numbers and costs

All staff are employed by a related company of ASML. ASML recharges expenses for services, the

following amounts were incurred by the syndicate in respect of services:

The average monthly number of employees employed by the managing agency or related companies

but working for the syndicate was as follows:

Apollo Syndicate 1100 | Annual Report and Accounts 2024

37

Notes to the financial statements (continued)

for the period ended 31 December 2024

11

For the purposes of FRS 102, the directors of ASML are deemed to be the key management personnel.

For the period ending 31 December 2024, the remuneration recharged to the syndicate for the directors

of ASML is

k which is charged as a syndicate.expense.

12. Debtors

13. Creditors

14. Prepayments and accrued income

15. Cash

Apollo Syndicate 1100 | Annual Report and Accounts 2024

38

Notes to the financial statements (continued)

for the period ended 31 December 2024

16. Foreign exchange rates

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

17. Related parties

The syndicate is a captive syndicate underwriting the first party risks of the parent organisation of the

sole supporting corporate member.

As at 31 December there were no outstanding balances due to or

from the corporate member, or entities within the parent organisation group.

Apollo Syndicate Management Limited is a wholly owned subsidiary of Apollo Group Holdings Limited

(0.75% of syndicate capacity). These amounts are included as part of operating expenses. Expenses

recharged in 2024 are reported in the table below.

is

which employs all Apollo group staff, including underwriters, claims and reinsurance staff. APL provides

the services of these staff to ASML to enable it to function as managing agent for the syndicate. APL is

an appointed representative of ASML. APL also incurs a large proportion of the expenses in respect of

operating the syndicate. The cost of these services and expenses is recharged to ASML which in turn

recharges these to the syndicate on a basis that reflects its usage of resources, all recharges being

without any mark up on cost. There are no outstanding balances as at 31st December 2024.

Apollo Syndicate 1100 | Annual Report and Accounts 2024

39

Notes to the financial statements (continued)

for the period ended 31 December 2024

18

The

ended primarily to cover circumstances where Syndicate assets prove

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.

or to settle losses

.

19. Subsequent events

There were no material post balance sheet events

.