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SYNDICATE 3622
ANNUAL REPORT AND ACCOUNTS
YEAR ENDED
31 DECEMBER 2024
CONTENTS
  STRATEGIC REPORT OF THE MANAGING AGENT……………………………………………………………  4
  MANAGING AGENT’S REPORT…………………………………………………………………………………………  6
  STATEMENT OF MANAGING AGENT’S RESPONSIBILITIES………………………………………………  11
  INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SYNDICATE 3622 ………………  12
  STATEMENT OF COMPREHENSIVE INCOME ……………………………………………………………………  15
BALANCE SHEET ………………………………………………………………………………………………………………   16
   
  STATEMENT OF CHANGES IN MEMBERS' BALANCES ………………………………………………………  17
  CASH FLOW STATEMENT …………………………………………………………………………………………………  18
  NOTES TO THE FINANCIAL STATEMENTS …………………………………………………………………………  19
  MANAGING AGENT'S CORPORATE INFORMATION ……………………………………………………………  42
SYNDICATE 3622
31 DECEMBER 2024
3
STRATEGIC REPORT OF THE MANAGING AGENT
Overview
Syndicate 3622 (the ‘syndicate’) underwrites life insurance and reinsurance at Lloyd’s.
The capacities of the syndicates managed by Beazley Furlonge Limited ('BFL') are as follows:
Syndicate Number Capacities
2024 £m
2023 £m
623 887.2 818.6
2623 2,299.6 3,794.5
3622 37.0 33.8
3623 1,325.6 
4321  33.1
5623 396.6 339.8
6107 57.8 43.3
Total 5,003.8 5,063.1
The  result  for  Syndicate  3622  for  the  year  ended  31  December  2024  is  a  profit  of  £7,558k  (2023:
£1,124k).
Year of account results
The  2022  year  of  account  ('YOA')  declares  a  return  on  capacity  of  2%.  The  2023  YOA  is  currently
forecasting to break even. The 2024 YOA is still in the early stages of development.
Rating environment
Overall rates on renewal business increased by 0.5% in 2024 (2023: 1%).
Combined ratio
The combined ratio is a measure of operating performance and represents the ratio of the syndicate's total
costs  (excluding  foreign  exchange)  to  total  net  earned  premium.  The  syndicate’s  combined  ratio  has
decreased in 2024  to  71%  (2023: 98%) primarily driven by  an  decrease  in  the  claims ratio arising from
reserve releases on older years of account.
Claims
The  claims  ratio  is  a  measure  of  the  syndicate's  claims  experience  and  represents  the  ratio  of  its  net
insurance  claims  to  net  earned  premium.  The  claims  ratio  has  decreased  to  18%  (2023:  49%).  This  is
mostly  driven  by  a  claims  release  on  older  years  of  account  relative  to  prior  year  and  favourable  claims
experience in the current year.
Net operating expenses
Net operating expenses, including business acquisition costs and administrative expenses, were £13,613k
(2023: £11,163k). The expense ratio is a measure of net operating expenses to net earned premium. The
expense ratio for 2024 is 53% (2023: 49%).   
2024 2023
£'000 £'000
Brokerage costs
  5,237    4,613
Other acquisition costs
  826    758
Total acquisition costs
  6,063    5,371
Administration and other expenses
  7,550    5,792
Net operating expenses*
  13,613    11,163
* A further breakdown of net operating expenses can be found in note 4.
Brokerage costs as a percentage of net earned premiums are approximately 21% (2023: 20%). Brokerage
costs are deferred  and  expensed over the life of  the  associated premiums in accordance with  accounting
guidelines.  Other  acquisition  costs  comprise  costs  that  have  been  identified  as  being  directly  related  to
underwriting activity (e.g. underwriters’ salaries and Lloyd’s box rental). These costs are also deferred in
line with premium earning patterns. Administrative expenses  comprise  primarily  IT  costs,  facilities costs,
Lloyd’s central costs and other support costs.
SYNDICATE 3622
31 DECEMBER 2024
4
STRATEGIC REPORT OF THE MANAGING AGENT CONTINUED
Administrative  and  other  expenses  increased  over  the  year  due  to  increased  operational  expenses
associated with the growth of the syndicate and enhancement of the underlying business model. 
Reinsurance
In  2024,  the  amount  spent  on  outward  reinsurance  was  £6,464k  (2023:  £6,580k).  As  a  percentage  of
gross premiums written it decreased to 21% in 2024 (2023: 22%). The slight decrease can be attributed
to small movements in quota share cover year on year. There were gross premium decreases on years of
account that had less reinsurance cover than comparative movements last year.
Outlook
The 2023 YOA  is currently forecasting a  breakeven return on capacity.  The 2024 YOA is  still in the early
stages of development.
The rating environment was challenging over the past year. The managing agent will continue to seek out
additional opportunities for this syndicate, taking heed to the rating environment and general condition of
the life market as 2025 develops.
…………………………
C C J Wong
Chief Financial Officer
5 March 2025
SYNDICATE 3622
31 DECEMBER 2024
5
MANAGING AGENT’S REPORT
The managing agent presents its report for the year ended 31 December 2024.
This annual report is prepared using the annual  basis  of  accounting  as  required  by  Statutory Instrument
No  1950  of  2008,  the  Insurance  Accounts  Directive  (Lloyd’s  Syndicate  and  Aggregate  Accounts)
Regulations  2008  and  applicable  United  Kingdom  Accounting  Standards,  including  Financial  Reporting
Standard 102: The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland
and Financial Reporting Standard 103: Insurance Contracts in accordance with the provisions of Schedule
3  of  the  Large  and  Medium-size  Companies  and  Groups  (Accounts  and  Reports)  Regulations  relating  to
insurance companies.
Principal activity
The principal activity of Syndicate 3622 is the underwriting of life business at Lloyd’s.
Business review
A review of the syndicate’s activities and future outlook is included in the strategic report.
Risk governance and reporting
BFL’s Board of Directors  (the  'Board')  has  the  responsibility  for  defining  and  monitoring the risk appetite
within which BFL and the syndicates operate (collectively, ‘Beazley’), with key individuals and committees
accountable for day-to-day management of risks and controls. Regular reporting by the risk management
team  in  board  meetings  and  senior  management  committees  ensures  that  risks  are  monitored  and
managed as they arise. Beazley is actively "future proofing" its structure across its three platforms. One of
these platforms is its London Wholesale platform which the managing agent governs. This platform focus
will  allow  strengthening  of  the  managing  agent’s  leadership  and  further  enhance  platform-specific  and
entity  governance,  while  continuing  to  bolster  its  risk  management  structure.  The  managing  agent
continues to evolve its structure to deliver on this governance framework.
Climate change/Responsible business
Led by Beazley plc's Board and supported by the Boards of BFL, Beazley Insurance dac, and Beazley
Insurance Company Inc, Environmental, Social and Governance issues and climate related risks have
become regular agenda items throughout 2024. In March 2021 we launched our first Responsible Business
Strategy. This document, and the subsequent update which is published alongside the Beazley plc annual
report and accounts ('ARA'), sets out the goals and targets across a wider range of sustainability issues,
including climate change.
In addition to the summary Responsible Business report, Beazley plc has disclosed its compliance with the
Task Force on Climate-Related Disclosures' ('TCFD') Recommendations and  Recommended  Disclosures  at
the consolidated group level in the Beazley plc annual report and accounts. The 2024 Beazley plc ARA was
published on the Group's website in March 2025.
Although not specifically listed in the risk categorises detailed further in this report, the Board of BFL
deems climate risk to be inherently embedded within all risks managed across the syndicate.
Risk management
Beazley  prides  itself  on  understanding  the  drivers  of  risk  across  the  syndicate.  The  risk  management
function  supports  and  challenges  management  in  effectively  managing  those  risks.  During  the  year,
Beazley continued to enhance, roll out, and embed elements of the risk management framework. Beazley
has  continued  working  with  our  colleagues  across  the  first  and  second  lines  of  defence  to  support  the
syndicate  strategy,  including  challenging  the  oversight  of  climate-related  risks  (covering  physical,
transition and litigation) and journey in digitisation. The details of the performance of the risk management
framework are considered further in this report.
Risk management oversight and framework
The  Board  delegates  direct  oversight  of  the  risk  management  function  and  framework  to  its  Risk
Committee. The Board delegates  executive  oversight  of  the risk management function and framework to
the  Beazley  plc  executive  Committee,  which  fulfils  this  responsibility  primarily  through  its  risk  and
regulatory Committee.
The  risk  management  framework  establishes  the  approach  to  identifying,  measuring,  mitigating,
monitoring, and reporting on principal risks. The risk management framework supports Beazley's strategy
and objectives.
SYNDICATE 3622
31 DECEMBER 2024
6
MANAGING AGENT’S REPORT CONTINUED
Beazley has adopted a ‘three lines of defence’ model, in which the risk management function is part of the
second line of defence. Ongoing communication and collaboration across the three lines of defence ensures
that Beazley identifies and manages risks effectively.
The  Board  approves  the  company’s  risk  appetite  statements  at  least  annually  and  receives  updates  on
monitoring against risk appetites throughout the year. This includes an assessment of principal risks.
A  suite  of  reports  from  the  risk  management  function  support  senior  management  and  the  Board  in
discharging their oversight and decision-making responsibilities throughout the year. The risk management
function's  reports  include  updates  on  risk  appetite,  risk  profiles,  stress  and  scenario  testing  (including
reverse  stress  testing)  and  analysis,  emerging  and  heightened  risks,  and  the  Own  Risk  and  Solvency
Assessment (ORSA) report for BFL.
The business operates a control environment which supports mitigating risks to stay within risk appetite.
The  risk  management  function  reviews  and  challenges  the  control  environment  through  various  risk
management  activities  (e.g.  risk  opinions,  risk  reviews  etc).  In  addition,  the  risk  management  function
works with the capital modelling and exposure management teams, particularly in relation to validation of
the  internal  model,  preparing  parts  of  the  ORSA,  monitoring  risk  appetite  and  the  business  planning
process.
The  risk  management  plan  considers,  among  other  inputs,  the  inherent  and  residual  risk  scores  for  the
risks in the risk registers. The risk management function also incorporates results from internal audits and
other  assurance  activities  into  its  risk  assessment  process.  The  internal  audit  function  considers  the  risk
management framework in its audit universe to derive a risk-based audit plan.
The  approach  to  identifying,  managing  and  mitigating  emerging  risks  includes  inputs  from  across  the
business,  analysis  of  lessons  learned  following  incidents  and  industry  thought  leadership.  The  approach
considers  the  potential  materiality  and  likelihood  of  impacts,  which  helps  prioritise  emerging  risks  which
the  company  monitors  or  undertakes  focused  work  on.  Key  emerging  risks  in  2024  included  geopolitical
and conflict escalation, artificial intelligence, systemic cyber attack, political and social unrest, supply chain
risk  and  climate  change.  The  Board  carries  out  a  robust  assessment  of  the  emerging  risks  at  least
annually.
Principal risks
Principal  risks  are  under  continuous  review  with  ongoing  risk  assessments.  Whilst  our  risk  profile  has
remained broadly stable in 2024, we continue to focus on operational and regulatory risks, to ensure that
our  control  environment  keeps  pace  with  business  change  and  growth  initiatives.  The  table  below
summarises the principal risks the company faces, and the control environment, governance and oversight
that  mitigate  these  risks.  Our  approach  to  managing  the  risks  arising  from  climate  change  are  set  out
within the TCFD section of Beazley plc’s annual Report.
Legend for principal risks table below
Risk outlook
Increasing  Stable  Decreasing
SYNDICATE 3622
31 DECEMBER 2024
7
MANAGING AGENT’S REPORT CONTINUED
    
Insurance
Risk of loss arising from uncertainties and
deviations of the occurrence, frequency, amount
and timing of insurance premium and claim
liabilities relative to the assumptions at the time of
underwriting. This includes risk from underwriting
such as market cycle, catastrophe, reinsurance and
reserves.
 Market cycle: potential systematic
mispricing of medium- or long-tailed
business that does not support revenue to
invest and cover future claims;
 Catastrophe: one or more large events
caused by nature (e.g. hurricane,
windstorm, earthquake and/or wildfire) or
mankind (e.g. coordinated cyber-attack,
global pandemic, losses linked to an
economic crisis, an act of terrorism or an
act of war and/or a political event)
impacting a number of policies, and
therefore giving rise to multiple losses;
 Reinsurance arrangements: reinsurance
may not be available or purchases do not
support the business underwritten (e.g.
mismatch); and
 Reserving: reserves may not be
sufficiently established to reflect the
ultimate paid losses.
Insurance risk is principally managed through pricing
tools, analysis of macro trends and claim frequency/
severity and ensures exposure is well diversified and
not overly concentrated in any one area, or line of
business.
Our strategic approach to exposure management and a
comprehensive internal and external reinsurance
programme helps to reduce volatility of profits in
addition to managing net exposure through the transfer
of risk.
Our prudent and comprehensive approach to reserving
ensures adequate provisions are made for the payment
of all valid claims. High calibre claims and underwriting
professionals deliver expert service and claims handling
to insureds, ensuring good customer outcomes.
Beazley carries out periodic analysis to identify
significant areas of concentration risk across its
business.
Beazley makes extensive use of modelling, including
catastrophe modelling, the use of our Solvency II model
and stress and scenario testing to ensure insurance risk
is within our risk appetite.
Insurance risk outlook continues to be stable as BFL
manages the market cycle across all the lines of
business.
    
Credit
The risk of loss resulting from default in obligations
due or changes in the credit standing of either
issuers of securities, counterparties or any debtors
which the company is exposed to. Exposure to
credit risk largely emanates from the use of
reinsurers, brokers, and coverholders, of which
reinsurance asset is the largest exposure for the
Syndicate.
Beazley maintains long-term partnerships with strategic
reinsurance partners to support it throughout the
insurance cycle and during potential catastrophic claim
events. Beazley uses a range of traditional and
alternative reinsurance mechanisms to diversify
reinsurance credit risk. All reinsurers must meet
stringent internal approval criteria, overseen by the
Reinsurance Security Committee. Credit risk from
brokers and coverholders remains low.
The credit risk outlook therefore remains stable, as
Beazley manages reinsurance, broker and coverholder
credit risks, maintaining low levels of aged and/or bad
debt.
   
Group
The contagion risk that an action or inaction of one
part of the Beazley Group adversely affect an area
of the Syndicate. This also includes a deterioration
in culture which leads to inappropriate behaviour,
actions and/or decisions including dilution of culture
or negative impact on the brand.
Risk culture is grounded in principles of transparency,
accountability, and awareness. An effective risk culture
reflects a mature risk management function,
encourages prudent risk-taking, and fosters awareness
of existing and emerging risks. The Executive
Committee and the Board oversee Group risk, with
regular monitoring conducted by the Risk Management
function and overseen by the Risk Committee.
Our Group risk outlook remains stable, with the
Executive Committee continuously managing and
improving our risk culture through ongoing monitoring
and enhancements.
Principal risks and summary descriptions Mitigation and monitoring
   
Liquidity
Assets are not available or adequate in order to
settle financial obligations when they fall due.
By actively managing its liquidity needs, Beazley
maximizes flexibility in handling its financial assets. This
proactive approach ensures that clients and creditors
are financially protected. Beazley regularly evaluates
the liquidity position of the syndicate, under the
oversight of the Risk Committee.
Our liquidity risk outlook remains stable as we
consistently maintain more than adequate levels of
liquidity.
SYNDICATE 3622
31 DECEMBER 2024
8
MANAGING AGENT’S REPORT CONTINUED
Principal risks and summary descriptions Mitigation and monitoring
Regulatory and legal
Non-compliance with regulatory and legal
requirements, failing to operate in line with the
relevant regulatory framework in the territories
where the Syndicate operates. This may lead to
financial loss (fines, penalties), sanctions,
reputational damage, loss of confidence from
regulators, regulatory intervention, inability to
underwrite or pay claims.
Beazley maintains active ongoing dialogue with its
principal regulators. A suite of compliance controls are
in place to support the nature, scale and complexity of
the business which are overseen by the Risk and
Regulatory Committee. The company wants to have a
trusting and transparent relationship with regulators,
ensuring coordinated communication and the following
of robust processes, policies and procedures in the
business. In addition, key staff, particularly those who
hold defined roles with regulatory requirements, are
experienced and maintain regular dialogue with
regulators.
Beazley is implementing a horizon scanning service to
support in-house activity to identify relevant regulatory
and legal matters and emerging policy so the business
can consider their potential impacts on the business.
Considering the needs of our clients in everything our
business does is of utmost importance to Beazley. We
deliver good customer outcomes to our clients
throughout the product lifecycle. The Conduct Review
Group oversees this risk.
The company has a very low appetite for regulatory and
legal risk, therefore maintaining strong and open
relationships with our regulators is of paramount
importance. The outlook for this is increasing as
throughout 2024 and into 2025, we have seen
increased engagement with our regulators as the
regulatory environment becomes more complex and
Beazley grows.
Operational
Failures of people, processes and systems or the
impact of an external event on operations (e.g., a
cyber-attack having a detrimental impact on
operations) including transformation and change
related risks.
Beazley attracts and nurtures talented colleagues who
champion diversity of thought, fostering a culture of
empowerment, collaboration, and innovation. This
commitment creates an environment of employee
wellbeing, where high-calibre, motivated, loyal, and
productive individuals are empowered to perform their
duties competently.
Beazley continues investing in technology and re-
engineering processes to support our operations,
overseen by the Operations Committee. Our business
continuity, disaster recovery, and incident response
plans ensure the stability of our processes and systems,
enabling our team to consistently deliver optimal
outcomes for our clients.
We expect technology and cyber resilience to continue
being key focus areas. We are dedicated to
collaborating with external agencies, and maintaining
robust controls over information security, data, and
operational resilience. We regularly review incident
response plans and continue to invest in cybersecurity
training for our employees.
While maintaining a low appetite for operational risk,
we observed an increased frequency of reported risk
incidents during 2024, coinciding with an increasingly
complex operating environment. The risk management
function continues to work with first line teams to
ensure that controls and processes in place remain
appropriate as the operating landscape evolves.
Our risks and controls are formally monitored and
reported through a risk and control self-assessment
process and the use of quantifiable Key Risk Indicators.
The outlook for this risk is increased as we continue to
strengthen operationally and realise the benefits of
ongoing initiatives to modernise our systems and
processes.
SYNDICATE 3622
31 DECEMBER 2024
9
MANAGING AGENT’S REPORT CONTINUED
Principal risks and summary descriptions Mitigation and monitoring
   
Strategic
The risk of loss resulting from ineffective strategic
direction and implementation that leads to
inadequate profitability, insufficient capital,
financial loss and/or reputational damage for BFL.
Pervasive risks impacting multiple areas of Beazley
(e.g., reputation, and sustainability) occurring
through real or perceived action, or inaction, by a
regulatory body, market and/or third-party
provider.
A negative change to Beazley’s reputation would
have a detrimental impact to the syndicates
performance and public perception.
Beazley consistently addresses key strategic
opportunities and challenges, striving to be the highest
performing and most sustainable specialist insurer. We
ensure that we recognize, understand, discuss, and
develop action plans for significant strategic priorities in
a timely manner, while maintaining operational
effectiveness and brand reputation.
Beazley creates an environment that attracts, retains
and develops high performing talent with diverse
perspectives, encouraging exploration, creation, and
innovation. By investing in understanding the
complexities of the risks our clients face and deploying
our expertise where it adds value, we thrive. The
Executive Committee and the Board oversee these
risks.
Our commitment is to create a sustainable business for
our people, partners, and planet through responsible
business goals. We embed sustainability principles and
ambitions, focusing on reducing our carbon footprint
(refer to the Group's TCFD report for more details on
climate-related risks and mitigations), contributing to
our social environment, and practicing good
governance. While we consider market developments,
we evaluate each on its individual merits, weighing both
potential opportunities and risks.
As we consolidate and embed our achievements from
2024, our strategic risk outlook remains stable.
Directors
A list of Directors of the managing agent who held office during the year and to the date of this report can
be found on page 42.
Syndicate annual general meeting
In  accordance  with  the  Syndicate  Meetings  (Amendment  No.  1)  Byelaw  (No.  18  of  2000)  the  managing
agent does not propose to hold a syndicate annual meeting this year. Members may object to this proposal
within 21 days of this notice. Any objections must be made in writing to the managing agent.
Disclosure of information to the auditor
The  Directors  of  the  managing  agent  who  held  office  at  the  date  of  approval  of  this  Managing  Agent’s
Report  confirm  that,  so  far  as  they  are  each  aware,  there  is  no  relevant  audit  information  of  which  the
syndicate’s auditor is unaware; and each director has taken all the steps that they ought to have taken as
a  director  to  make  themselves  aware  of  any  relevant  audit  information  and  to  establish  that  the
syndicate’s auditor is aware of that information.
Auditor
Pursuant  to  Section  14(2)  of  Schedule  1  of  the  Insurance  Accounts  Directive  (Lloyd’s  Syndicate  and
Aggregate Accounts) Regulations 2008, the auditor will be deemed  to be reappointed and Ernst & Young
LLP will therefore continue in office.
On behalf of the board
…………………………
C C J Wong
Chief Financial Officer
05 March 2025
SYNDICATE 3622
31 DECEMBER 2024
10
STATEMENT OF MANAGING AGENT’S RESPONSIBILITIES
The  Directors  of  the  managing  agent  are  responsible  for  preparing  the  syndicate  financial  statements  in
accordance with applicable law and regulations.
The Insurance Accounts  Directive  (Lloyd’s  Syndicate  and  Aggregate  Accounts) Regulations 2008  requires
the  Directors  of  the  managing  agent  to  prepare  their  syndicate  annual  accounts  for  each  financial  year.
Under  that  law  they  have  elected  to  prepare  the  annual  accounts  in  accordance  with  UK  Accounting
Standards  and  applicable  law  (UK  Generally  Accepted  Accounting  Practice),  including  FRS  102  The
Financial Reporting Standard applicable in the UK and Republic of Ireland.
Under  Insurance  Accounts  Directive  (Lloyd’s  Syndicate  and  Aggregate  Accounts)  Regulations  2008  the
Directors of the managing agent must not approve the annual accounts unless they are satisfied that they
give a true and fair view of the state of affairs of the syndicate and of the profit or loss of the syndicate for
that period. In preparing these financial statements, the Directors of the managing agent are required to:
 select suitable accounting policies and then apply them consistently;
 make judgements and estimates that are reasonable and prudent;
 state  whether  applicable  UK  Accounting  Standards  have  been  followed,  subject  to  any  material
departures disclosed and explained in the annual accounts;
 assess the syndicate’s ability to continue as a going concern, disclosing, as applicable, matters related
to going concern; and
 use  the  going  concern  basis  of  accounting  unless  they  either  intend  to  cease  trading,  or  have  no
realistic alternative but to do so.
The  Directors  of  the  managing  agent  are  responsible  for  keeping  adequate  accounting  records  that  are
sufficient  to  show  and  explain  the  syndicate’s  transactions  and  disclose  with  reasonable  accuracy  at  any
time the financial position of the syndicate and enable them to ensure that the financial statements comply
with the Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008. They
are  responsible  for  such  internal  control  as  they  determine  is  necessary  to  enable  the  preparation  of
financial  statements  that  are  free  from  material  misstatement,  whether  due  to  fraud  or  error  and  have
general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the
company and to prevent and detect fraud and other irregularities.
The  Directors  of  the  managing  agent  are  responsible  for  the  maintenance  and  integrity  of  the  syndicate
and  financial  information  included  on  the  syndicate’s  website.  Legislation  in  the  UK  governing  the
preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
The  Directors  of  the  managing  agent  are  required  to  comply  with  the  requirements  of  Section  1  of  the
Lloyd’s Syndicate Accounts Instructions version 2.1 as modified by the Frequently Asked Questions version
1.1 issued by Lloyd’s (the Syndicate Accounts Instructions).
The Directors of the managing agent are responsible for the preparation and review of the iXBRL tagging
that  has  been  applied  to  the  syndicate  accounts  in  accordance  with  the  instructions  issued  by  Lloyd's,
including  designing,  implementing  and  maintaining  systems,  processes  and  internal  controls  to  result  in
tagging that is free from material non-compliance with the instructions issued by Lloyd's, whether due to
fraud or error.
On behalf of the board
…………………………
C C J Wong
Chief Financial Officer
5 March 2025
SYNDICATE 3622
31 DECEMBER 2024
11
Opinion
We have audited the syndicate annual accounts of syndicate 3622 (‘the syndicate’) for the year ended 31
December 2024 which comprise the Statement of Comprehensive Income, the Statement of changes in
Members’ Balances, the Balance Sheet, the Cash Flow statement and the related notes 1 to 21, including a
summary of significant accounting policies. The financial reporting framework that has been applied in
their preparation is applicable law including The Insurance Accounts Directive (Lloyd’s Syndicate and
Aggregate Accounts) Regulations 2008, United Kingdom Accounting Standards including FRS 102 “The
Financial Reporting Standard applicable in the UK and Republic of Ireland” and FRS 103 “Insurance
Contracts” (United Kingdom Generally Accepted Accounting Practice), and Section 1 of the Lloyd’s
Syndicate Accounts Instructions version 2.1 as modified by the Frequently Asked Questions Version v1.1
issued by Lloyd’s (the Syndicate Accounts Instructions).
In our opinion, the syndicate annual accounts:
 give a true and fair view of the syndicate’s affairs as at 31 December 2024 and of its profit for the
year then ended;
 have been properly prepared in accordance with United Kingdom Generally Accepted Accounting
Practice; and
 have been prepared in accordance with the requirements of The Insurance Accounts Directive
(Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 and the Syndicate Accounts
Instructions.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)), The
Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008, the Syndicate
Accounts Instructions, and other applicable law. Our responsibilities under those standards are further
described in the Auditor’s responsibilities for the audit of the syndicate annual accounts section of our
report. We are independent of the syndicate in accordance with the ethical requirements that are relevant
to our audit of the syndicate annual accounts in the UK, including the FRC’s Ethical Standard as applied to
other entities of public interest, and we have fulfilled our other ethical responsibilities in accordance with
these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Conclusions relating to going concern
In auditing the syndicate annual accounts, we have concluded that the managing agent’s use of the going
concern basis of accounting in the preparation of the syndicate annual accounts is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events
or  conditions  that,  individually  or  collectively,  may  cast  significant  doubt  on  the  syndicate’s  ability  to
continue  as  a  going  concern  for  a  period  of  12  months  from  when  the  syndicate  annual  accounts  are
authorised for issue.
Our  responsibilities  and  the  responsibilities  of  the  managing  agent  with  respect  to  going  concern  are
described in the relevant sections of this report. However, because not all future events or conditions can
be predicted, this statement is not a guarantee as to the syndicate’s ability to continue as a going concern.
Other information
The other information comprises the information included in the annual report and accounts other than the
syndicate  annual  accounts  and  our  auditor’s  report  thereon.  The  Directors  of  the  managing  agent  are
responsible for the other information contained within the annual report and accounts.
Our  opinion  on  the  syndicate  annual  accounts  does  not  cover  the  other  information  and,  except  to  the
extent  otherwise  explicitly  stated  in  this  report,  we  do  not  express  any  form  of  assurance  conclusion
thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information
is materially inconsistent with the syndicate annual accounts  or  our  knowledge  obtained  in  the  course of
the audit or otherwise appears to  be materially misstated. If  we identify such material inconsistencies or
apparent  material  misstatements,  we  are  required  to  determine  whether  this  gives  rise  to  a  material
misstatement in the syndicate annual accounts themselves. If, based on the work we have performed, we
conclude  that  there  is  a  material  misstatement  of  the  other  information,  we  are  required  to  report  that
fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by The Insurance Accounts Directive (Lloyd’s Syndicate
and Aggregate Accounts) Regulations 2008
In our opinion, based on the work undertaken in the course of the audit:
 the information given in the managing agent’s report for the financial year in which the syndicate
annual accounts are prepared is consistent with the syndicate annual accounts; and
 the managing agent’s report has been prepared in accordance with applicable legal requirements.
SYNDICATE 3622
31 DECEMBER 2024
INDEPENDENT AUDITOR’S REPORT TO THE MEMBER OF SYNDICATE 3622
12
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the syndicate and its environment obtained in the
course of the audit, we have not identified material misstatements in the managing agent’s report.
We have nothing to report in respect of the following matters where The Insurance Accounts Directive
(Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 requires us to report to you, if in our
opinion:
 the managing agent in respect of the syndicate has not kept adequate accounting records; or 3.15
 the syndicate annual accounts are not in agreement with the accounting records; or
 certain disclosures of the managing agents’ emoluments specified by law are not made; or
 we have not received all the information and explanations we require for our audit.
Responsibilities of the managing agent
As  explained  more  fully  in  the  Statement  of  Managing  Agent’s  Responsibilities  set  out  on  page  11  the
managing agent is responsible for the preparation of the syndicate annual accounts and for being satisfied
that  they  give  a  true  and  fair  view,  and  for  such  internal  control  as  the  managing  agent  determines  is
necessary  to  enable  the  preparation  of  the  syndicate  annual  accounts  that  are  free  from  material
misstatement, whether due to fraud or error.
In  preparing  the  syndicate  annual  accounts,  the  managing  agent  is  responsible  for  assessing  the
syndicate’s  ability  to  continue  in  operation,  disclosing,  as  applicable,  matters  related  to  its  ability  to
continue in operation and using the going concern basis of accounting unless  the  managing  agent  either
intends to cease to operate the syndicate, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the syndicate annual accounts
Our  objectives  are  to  obtain  reasonable  assurance  about  whether  the  syndicate  annual  accounts  as  a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in  accordance  with ISAs (UK) will always  detect  a material misstatement when it  exists.
Misstatements  can  arise  from  fraud  or  error  and  are  considered  material  if,  individually  or  in  the
aggregate, they could reasonably be expected  to  influence  the  economic decisions of users taken on the
basis of these syndicate annual accounts.
Explanation as to what extent the audit was considered capable of detecting irregularities,
including fraud
Irregularities,  including  fraud,  are  instances  of  non-compliance  with  laws  and  regulations.  We  design
procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. The risk
of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting
from  error,  as  fraud  may  involve  deliberate  concealment  by,  for  example,  forgery  or  intentional
misrepresentations, or through collusion.
The  extent  to  which  our  procedures  are  capable  of  detecting  irregularities,  including  fraud,  is  detailed
below. However, the primary responsibility for the prevention and detection of fraud rests with both those
charged with governance of the managing agent and management.
Our approach was as follows:
 We obtained a general understanding of the legal and regulatory frameworks that are applicable to
the syndicate and  determined  that the most significant are  direct  laws and regulations related to
elements  of  Lloyd’s  Byelaws  and  Regulations,  and  the  financial  reporting  framework  (UK  GAAP),
and requirements referred to by Lloyd’s in the Syndicate Accounts instructions. Our considerations
of  other  laws  and  regulations  that  may  have  a  material  effect  on  the  syndicate  annual  accounts
included permissions and supervisory requirements of Lloyd’s of London, the Prudential Regulation
Authority (‘PRA’) and the Financial Conduct Authority (‘FCA’).
 We obtained a general understanding of how the syndicate is complying with those frameworks by
making  enquiries  of  management,  internal  audit,  and  those  responsible  for  legal  and  compliance
matters  of  the  syndicate.  In  assessing  the  effectiveness  of  the  control  environment,  we  also
reviewed  significant  correspondence  between  the  syndicate,  Lloyd’s  of  London  and  other  UK
regulatory bodies; reviewed minutes of the Board and Risk Committee of the managing agent; and
gained an understanding of the managing agent’s approach to governance.
 For direct laws and regulations, we considered the extent of compliance with those laws and
regulations as part of our procedures on the related syndicate annual accounts’ items.
 For both direct and other laws and regulations, our procedures involved: making enquiries of the
Directors  of  the  managing  agent  and  senior  management  for  their  awareness  of  any  non-
compliance  of  laws  or  regulations,  enquiring  about  the  policies  that  have  been  established  to
prevent non-compliance with laws and regulations by officers and employees, enquiring about the
managing  agent’s  methods  of  enforcing  and  monitoring  compliance  with  such  policies,  and
inspecting significant correspondence with Lloyd’s, the FCA and the PRA.
 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.
SYNDICATE 3622
31 DECEMBER 2024
INDEPENDENT AUDITOR’S REPORT TO THE MEMBER OF SYNDICATE 3622
13
 We assessed the susceptibility of the syndicate’s annual accounts to material misstatement,
including how    fraud might occur by considering the controls that the managing agent has
established to address risks identified by the managing agent, or that otherwise seek to prevent,
deter or detect fraud. We also considered areas of significant judgement, complex transactions,
performance targets, economic or external pressures and the impact these have on the control
environment. Where this risk was considered to be higher, we performed audit procedures to
address each identified fraud risk, including:
 Reviewing  accounting  estimates  for  evidence  of  management  bias.  Supported  by  our
Actuaries, we assessed if there were any indicators of management bias in the valuation of
insurance liabilities and the recognition of estimated premium income.
 Evaluating the business rationale for significant and/or unusual transactions.
 These procedures included testing manual journals and were designed to provide reasonable
assurance that the syndicate 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
Financial  Reporting  Council’s  website  at  https://www.frc.org.uk/auditorsresponsibilities.  This  description
forms part of our auditor’s report.
Other matter
Our opinion on the syndicate annual accounts does not cover the iXBRL tagging included within these
syndicate annual accounts, and we do not express any form of assurance conclusion thereon.
Use of our report
This  report  is  made  solely  to  the  syndicate’s  members,  as  a  body,  in  accordance  with  The  Insurance
Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008. Our audit work has been
undertaken so that we might state to the syndicate’s members those matters we are required to state to
them in  an  auditor’s report  and  for  no  other  purpose.  To  the  fullest  extent  permitted  by  law,  we  do  not
accept  or  assume  responsibility  to  anyone  other  than  the  syndicate  and  the  syndicate’s  members  as  a
body, for our audit work, for this report, or for the opinions we have formed.
Niamh Byrne (Senior statutory auditor)
for and on behalf of Ernst & Young LLP, Statutory Auditor
London
5 March 2025
SYNDICATE 3622
31 DECEMBER 2024
INDEPENDENT AUDITOR’S REPORT TO THE MEMBER OF SYNDICATE 3622
14
2024 2023
Notes £'000 £'000
Gross premiums written 3   31,379    29,858
Outward reinsurance premiums   (6,464)    (6,580)
Premiums written, net of reinsurance
  24,915    23,278
Changes in unearned premium
Change in the gross provision for unearned premiums
15
  681    (41)
Change in the provision for unearned premiums,
reinsurers’ share
15   (137)    (320)
Net change in the provision for unearned
premiums
  544    (361)
Earned premiums, net of reinsurance   25,459    22,917
Allocated investment return transferred from the
non-technical account
7   242    351
Claims paid
Gross amount
15
  (12,931)    (15,025)
Reinsurers’ share
15
  4,824    5,443
Net claims paid   (8,107)    (9,582)
Long term business provision, net of reinsurance
Gross amount 15   5,070    (3,285)
Reinsurers' share
15
  (1,443)    1,705
Net change in long term business provisions   3,627    (1,580)
Claims incurred, net of reinsurance   (4,480)    (11,162)
Net operating expenses 4
  (13,613)    (11,163)
Balance on the technical account - general
business
  7,608    943
Investment income 7   386    343
Investment expenses and charges
7   (168)    
Realised losses on investments
      
Unrealised gains on investments 7
  24    8
Total investment income
  242    351
Allocated investment return transferred to
general business technical account
  (242)    (351)
(Loss)/gain on foreign exchange   (137)    168
Other income   87    13
Total comprehensive income for the financial year
  7,558    1,124
There were no other comprehensive gains or losses in the year.
The notes on pages 19 to 41 form part of these financial statements.
SYNDICATE 3622
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
15
2024
2023
Assets Notes £'000 £'000
Investments
Financial investments 9   3,434    3,714
  3,434    3,714
Reinsurers’ share of technical provisions
Provision for unearned premiums 15   2,338    2,478
Claims outstanding 15   2,114    3,568
  4,452    6,046
Debtors
Debtors arising out of direct insurance operations
10
  14,715    15,787
Debtors arising out of reinsurance operations
11
  5,524    4,108
Other debtors 12   24    17
  20,263    19,912
Other assets
Cash at bank and in hand   8,864    13,774
Prepayments and accrued income
Deferred acquisition costs 13   2,422    2,342
Other prepayments and accrued income   52    207
  2,474    2,549
Total assets   39,487    45,995
Capital and reserves
Members' balances   4,274    1,296
Liabilities
Technical provisions
Provision for unearned premiums 15   12,862    13,575
Claims outstanding 15   14,620    19,768
  27,482    33,343
Creditors
Creditors arising out of direct insurance operations       
Creditors arising out of reinsurance operations 16   3,896    6,714
Other creditors 17   3,092    4,000
  6,988    10,714
Accruals and deferred income   743    642
Total liabilities   35,213    44,699
Total liabilities, capital and reserves   39,487    45,995
The notes on 19 to 41 form part of these financial statements.
The syndicate annual accounts on pages 15 to 41 were approved signed by the board of Beazley Furlonge
Limited on 5 March 2025 and were signed on its behalf by
…………………………                     ……………………
P J Bantick (Director)                 C C J Wong (Chief Financial Officer)
SYNDICATE 3622
BALANCE SHEET
AS AT 31 DECEMBER 2024
16
2024
2023
£'000 £'000
Members’ balances brought forward at 1 January
  1,296    1,566
Total comprehensive income for the financial year   7,558    1,124
Payments of profit to members' personal reserve funds   (4,580)    (1,394)
Member’s balance carried forward at 31 December   4,274    1,296
Members participate in syndicates by reference to YOA and their ultimate result, assets and liabilities are
assessed  with  reference  to  policies  incepting  in  that  YOA  in  respect  of  their  membership  of  a  particular
year.
The notes on pages 19 to 41 form part of these financial statements.
SYNDICATE 3622
STATEMENT OF CHANGES IN MEMBERS’ BALANCES
31 DECEMBER 2024
17
2024 2023
*restated
Notes £'000 £'000
Cash flows from operating activities
Total comprehensive income
  7,558    1,124
Adjustments for:
(Decrease)/increase in gross technical provisions
15
  (5,861)    3,154
Decrease/(increase) in reinsurers' share of gross technical
provisions
15
  1,594    (1,370)
(Increase)/decrease in debtors
  (351)    4,952
Movement in other assets/liabilities
  176    55
Decrease in creditors
  (3,726)    (3,599)
Investment return
7
  (242)    (351)
Foreign exchange
  127    77
Net cash flow from operating activities
  (725)    4,042
Cash flows from investing activities
Purchase of equity and debt securities
      (8)
Sale of equity and debt securities
      72
Investment income received
  218    343
Other
  304    
Net cash flow from investing activities
  522    407
Cash flows from financing activities
Distribution of profit
  (4,580)    (1,394)
Net cash flow from financing activities
  (4,580)    (1,394)
Net (decrease)/increase in cash and cash equivalents
  (4,783)    3,055
Cash and cash equivalents at the beginning of the year
  13,774    10,796
Foreign exchange on cash and cash equivalents
  (127)    (77)
Cash and cash equivalents at the end of the year
  8,864    13,774
*Certain balances have been restated due to a voluntary change in accounting policy. Refer to note 20.
The notes on pages 19 to 41 form part of these financial statements.
SYNDICATE 3622
CASH FLOW STATEMENT
YEAR ENDED 31 DECEMBER 2024
18
1. Accounting policies
Basis of preparation
Syndicate 3622 (the ‘syndicate’) comprises a member of the Society of Lloyd’s that underwrites insurance
business in the London Market. The managing agent of the syndicate is Beazley Furlonge Limited ('BFL'),
whose  registered  address  and  principal  place  of  business  is  22  Bishopsgate,  London,  EC2N  4BQ.  The
ultimate controlling party of BFL is Beazley plc, a company incorporated in England and Wales.
The  syndicate  annual  accounts  have  been  prepared  in  accordance  with  the  Insurance  Accounts  Directive
(Lloyd’s  Syndicate  and  Aggregate  Accounts)  Regulations  2008,  applicable  Accounting  Standards  in  the
United  Kingdom  and  the  Republic  of  Ireland,  including  Financial  Reporting  Standard  102  ('FRS  102'),
Financial Reporting Standard 103 ('FRS 103') in relation to insurance contracts, and the Lloyd’s Syndicate
Accounts  Instructions  version  2.1  as  modified  by  the  Frequently  Asked  Questions  version  1.1  issued  by
Lloyd’s.
The financial statements have been prepared on the historic cost basis, except for financial assets at fair
value through profit or loss which are measured at fair value. The principal accounting policies applied in
the preparation of these financial statements are set out below. The policies have been consistently applied
to all periods presented, unless otherwise stated.  All amounts presented are stated in sterling, being the
syndicate’s functional currency, and in thousands, unless noted otherwise.
Going Concern
The financial  statements of  the  syndicate  have  been  prepared  on  a  going concern  basis.  The  syndicate's
business  activities,  together  with  the  factors  likely  to  affect  its  future  development,  performance  and
position, are set out in the Strategic report contained in the annual report. In addition, note 2 includes the
syndicate's risk management objectives and the entity’s objectives, policies and processes for managing its
capital. The syndicate has sufficient capital for each year of account in it's Funds at Lloyd's (FAL). There is
no intention to cease underwriting or cease the operations of the syndicate.
In  assessing  the  syndicate's  going  concern  position  as  at  31  December  2024,  the  managing  agent  has
considered  a  number  of  factors,  including  the  current  statement  of  financial  position  and  the  syndicate's
strategic and financial plan. The assessment concluded that, for the foreseeable future, the syndicate has
sufficient capital and liquidity for the 12 months from the date the financial statements are authorised for
issue.
Use of estimates and judgements
The preparation of financial statements requires the use  of  certain  estimates  and  judgements  that  affect
the  reported amounts of assets, liabilities, income and expenses. Actual results may differ from those on
which management’s estimates  are  based.  Estimates  and  assumptions  are continually evaluated  and  are
based on historical experience and other factors. For example, estimates which are sensitive to economic,
regulatory  and  geopolitical  conditions  could  be  impacted  by  significant  changes  in  the  external
environment such as the volatile macroeconomic environment, climate change, international conflicts, and
significant  changes  in  legislation.  Any  revisions  to  accounting  estimates  are  recognised  in  the  period  in
which the estimate is revised and in any future periods affected.
Specific  to  climate  change,  since  responses  to  it  are  still  developing,  it  is  not  possible  to  consider  all
possible future outcomes when determining asset and liability valuations, and timing of future cash flows,
as  these  are  not  yet  known.  Nevertheless,  the  current  management  view  is  that  reasonably  possible
changes arising from climate risks would not have a material impact on asset and liability valuations at the
year-end date.
(a) Valuation of insurance contract liabilities
The most critical estimate included within the syndicate’s balance sheet is the estimate for insurance losses
incurred but not reported (‘IBNR’), which is included within total technical provisions and reinsurers’ share
of technical provisions in the balance sheet and note 15. This estimate is critical as it outlines the current
liability for future  expenses  expected to be incurred in  relation  to claims. If this estimation  was to prove
inadequate then an exposure would arise in future years where a liability has not been provided for.
The  best  estimate  of  the  most  likely  ultimate  outcome  is  used  when  calculating  notified  claims.  This
estimate is based upon the facts available at the time, in conjunction  with  the  claims  manager’s  view  of
likely  future  developments.  The  total  estimate  of  gross  IBNR  as  at  31  December  2024  included  within
claims outstanding is £12,598k (2023: £17,787k).
SYNDICATE 3622
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2024
19
19
       
1. Accounting policies continued
(b) Premium estimates
Premium  written  is  initially  based  on  the  estimated  premium  income  (‘EPI’)  of  each  contract.  Where
premium  is  sourced  through  binders,  the  binder  EPI  is  pro-rated  across  the  binder  period. Judgement is
involved in  determining  the  ultimate  estimates  in  order  to  establish  the  appropriate  premium  value  and,
ultimately,  the  cash  to  be  received.    EPI  estimates  are  updated  to  reflect  changes  in  an  underwriters
expectation through consultation with brokers and third-party coverholders, changes in market conditions,
historic experience and to reflect actual cash received for a contract.
Due to the nature of Lloyd’s business and the settlement patterns of the underlying business it is also not
uncommon  for  some  contracts  to  take  a  number  of  years  to  finalise  and  settle,  and  a  receivable  on  the
balance  sheet  remains.  The  amount  of  estimated  future  premium  that  remains  in  insurance  receivables
relating to years of account that  are  more  than  three  years  developed  at  31  December 2024 is £1,431k
(2023: £1,896k).
Significant accounting policies
The financial statements have been prepared on an annual basis of accounting, whereby the incurred cost
of claims, commissions and related expenses are charged against the earned proportion of premiums, net
of reinsurance as follows:
(a) Premiums written
Gross premiums written comprise premiums on contracts incepted during the financial year together
with  adjustments  to  premiums  written  in  previous  accounting  periods  and  estimates  for  premiums
from contracts entered into during the course of the year. Gross written premiums are stated before
the deduction of brokerage, taxes, duties levied on premiums and other deductions.
(b) Unearned premiums
A  provision  for  unearned  premiums  represents  that  part  of  the  gross  premiums  written  that  is
estimated  will  be  earned  in  the  following  or  subsequent  financial  periods.  It  is  calculated  using  the
daily pro rata method, under which the premium is apportioned over the period of risk.
(c) Claims provisions and related reinsurance recoveries
Claims  represent  the  cost  of  claims  and  claims  handling  expenses  paid  during  the  financial  year,
together  with  the  movement  in  provisions  for  outstanding  claims,  IBNR  and  future  claims  handling
provisions. The provision  for claims outstanding comprises  amounts set aside for claims  advised and
IBNR.
The  IBNR  amount  is  based  on  estimates  calculated  using  widely  accepted  actuarial  techniques  (e.g.
chain  ladder)  which  are  reviewed  quarterly  by  the  group  actuary  and  annually  by  the  independent
syndicate  reporting  actuary.  The  techniques  generally  use  projections,  based  on  past  experience  of
the development of claims over time, to form a view on the likely ultimate claims to be experienced.
For more recent underwriting, regard is given to the variations in the business portfolio accepted and
the  underlying  terms  and  conditions.  Thus,  the  critical  assumptions  used  when  estimating  claims
provisions are that the past experience  is a reasonable predictor  of likely future claims development
and that the rating and other models used to analyse current business are a fair reflection of the likely
level of ultimate claims to be incurred.
A provision is made at the year-end for  the  estimated  cost  of  claims  incurred  but not settled at the
balance sheet date, including the cost of claims incurred but not yet reported to the managing agent.
The managing agent takes all reasonable steps to ensure that it has appropriate information regarding
its claims exposures. However, given the uncertainty in establishing claims provisions, it is likely that
the final outcome will prove to be different from the original liability established.
(d) Liability adequacy testing
At each  reporting  date,  liability  adequacy tests  are  performed  to  ensure the  adequacy  of  the  claims
liabilities net of deferred acquisition costs and unearned premium reserves. In performing these tests,
current best estimates of future contractual cash flows, claims handling and administration expenses
as well as investment income from the assets backing such liabilities are used.
Any deficiency is charged to the statement of comprehensive income and an unexpired risk provision
for losses is set up as a liability.
SYNDICATE 3622
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
YEAR ENDED 31 DECEMBER 2024
20
1. Accounting policies continued
(e) Acquisition costs
Acquisition  costs  comprise  brokerage,  premium  levies,  and  staff  related  costs  of  the  underwriters
acquiring  the  business.  The  proportion  of  acquisition  costs  in  respect  of  unearned  premiums  is
deferred  at  the  balance  sheet  date  and  recognised  in  later  periods  when  the  related  premiums  are
earned.
(f) Foreign currencies
Foreign  currency  transactions  are  translated  into  the  functional  currency  using  average  exchange
rates applicable to the period in which the transactions take place and where the syndicate considers
these  to  be  a  reasonable  approximation  of  the  transaction  rate.  Foreign  exchange  gains  and  losses
resulting from the settlement of such transactions and from translation at the period end of monetary
assets  and  liabilities  denominated  in  foreign  currencies  are  recognised  in  the  statement  of
comprehensive income.
(g) Investment return
Investment  return  comprises  all  investment  income,  realised  investment  gains  and  losses  and
movements in unrealised gains and losses, net of investment expenses, charges and interest.
Realised  gains  and  losses  on  investments  carried  at  market  value  are  calculated  as  the  difference
between  sale  proceeds  and  the  original  cost  of  the  investment.  Movements  in  unrealised  gains  and
losses on investments represent the difference between the valuation at the balance sheet date, and
the valuation at the previous period end or purchase value during the period.
Investment return is initially recorded in the non-technical account.  A transfer is made from the non-
technical account to the general business technical account to reflect the investment return on funds
supporting underwriting business.
(h) Ceded reinsurance
These  are  contracts  entered  into  by  the  syndicate  with  reinsurers  under  which  the  syndicate  is
compensated  for  losses  on  contracts  issued  by  the  syndicate  and  that  meet  the  definition  of  an
insurance contract. Insurance contracts entered into by the syndicate under which the contract holder
is another insurer (inwards reinsurance) are included with insurance contracts.
Any benefits to which the syndicate is entitled under its reinsurance contracts held are recognised as
reinsurance assets. These consist of balances due from reinsurers relating to claims and also includes
the provision for unearned premiums, reinsurers’ share. Balances due relating to the reinsurers share
of claims are based on calculated amounts of outstanding claims recoveries and projections for IBNR,
net of estimated irrecoverable amounts having regard to the reinsurance programme in place for the
class of business, the claims experience for the period and the current security rating of the reinsurer
involved.  Reinsurance  liabilities  are  primarily  premiums  payable  for  reinsurance  contracts  and  are
recognised as an expense when due.
Reinsurance assets are assessed for impairment at each reporting date. If there is objective evidence
of  impairment,  then  the  carrying  amount  is  reduced  to  its  recoverable  amount  and  the  impairment
loss is recognised in the statement of comprehensive income.
(i) Financial instruments
Recognition and derecognition
Financial instruments are recognised on the balance sheet at such time that the syndicate becomes a
party to the contractual provisions of the financial instrument. A financial asset is derecognised when:
 the contractual rights to receive cash flows from the financial assets expire;
 the financial assets have been transferred, together with substantially all the risks and rewards of
ownership; or
 despite having retained some, but not substantially all, risks and rewards of ownership, control of
the asset is transferred to another party and the other party has the practical ability to sell the
asset in its entirety to an unrelated third party.
Financial liabilities are derecognised if the syndicate’s obligations specified in the contract expire, are
discharged or cancelled.
SYNDICATE 3622
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
YEAR ENDED 31 DECEMBER 2024
21
1. Accounting policies continued
Financial assets and liabilities measurement
On  acquisition  of  a  financial  asset  or  liability,  the  syndicate  will  measure  the  asset  or  liability  at
transaction  price,  except  for  those  financial  assets  and  liabilities  at  fair  value  through  profit  or  loss
(‘FVTPL’), which  are  initially  measured  at  fair  value.  The  exception  to  this  is  when  the  arrangement
constitutes  a  financing  transaction  however,  the  syndicate  does  not  make  use  of  any  such
arrangements.
All financial investments are designated as FVTPL upon initial recognition because they are managed
and  their  performance  is  evaluated  on  a  fair  value  basis.  Information  about  these  financial
instruments is provided internally on a fair value basis to key management. The investment strategy
is to invest and evaluate their performance with reference to their fair values.
Fair value measurement
Fair value is the price at which an orderly transaction to sell  an asset or to transfer a liability would
take  place  between  market  participants  at  the  measurement  date.  Fair  value  is  a  market-based
measure and in the absence of observable market prices in an active market, it is measured using the
assumptions that market participants would use when pricing the asset or liability.
The  best  evidence  of  the  fair  value  of  a  financial  instrument  at  initial  recognition  is  the  transaction
price,  i.e.,  the  fair  value  of  the  consideration  given  or  received,  unless  the  fair  value  of  that
instrument is evidenced by comparison with other observable current market transactions in the same
instrument  (i.e.,  without  modification  or  repackaging)  or  based  on  a  valuation  technique  whose
variables include only data from observable markets.
When  transaction  price  provides  the  best  evidence  of  fair  value  at  initial  recognition,  the  financial
instrument is initially measured at the transaction price and any difference between this price and the
value  initially  obtained  from  a  valuation  model  is  subsequently  recognised  in  the  statement  of
comprehensive income depending on the individual facts and circumstances of the transaction but not
later  than  when  the  valuation  is  supported  wholly  by  observable  market  data  or  the  transaction  is
closed out.
Upon  initial  recognition,  attributable  transaction  costs  relating  to  financial  instruments  at  FVTPL  are
recognised  in  the  statement  of  comprehensive  income  when  incurred.  Financial  assets  at  FVTPL  are
continuously  measured  at  fair  value,  and  changes  therein  are  recognised  in  the  statement  of
comprehensive income. Net changes in the fair value of financial assets at FVTPL exclude interest and
dividend income, as these items are accounted for separately.
(j) Insurance debtors and creditors
Insurance  debtors  and  creditors  include  amounts  due  to  and  from  agents,  brokers  and  insurance
contract holders. These are classified as debt instruments as they are non-derivative financial assets
with fixed or determinable payments that are not quoted on an active market. Insurance debtors are
measured  at  amortised  cost  less  any  provision  for  impairments.  Insurance  creditors  are  stated  at
amortised cost. The syndicate does not have any debtors directly with policyholders, all transactions
occur via an intermediary.
(k) Other debtors
Other debtors principally consist of intercompany debtor balances and sundry debtors and are carried
at amortised cost less any impairment losses.
(l) Other creditors
Other  creditors  principally  consist  of  amounts  due  to  other  related  entities,  and  profit  commissions
payable. These are stated at amortised cost determined using the effective interest rate method.
(m) Impairment of financial assets
Assessment is made at each reporting date whether there is objective evidence that a financial asset
or  group  of  financial  assets  measured  at  amortised  cost  is  impaired.  A  financial  asset  or  group  of
financial assets is  impaired and impairment losses are  incurred only if there is  objective evidence of
impairment  as  a  result  of  one  or  more  events  that  have  occurred  after  the  initial  recognition  of  the
assets  and  that  event  has  an  impact  on  the  estimated  cash  flows  of  the  financial  asset  or  group  of
financial assets that can be reliably estimated.
SYNDICATE 3622
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
YEAR ENDED 31 DECEMBER 2024
22
1. Accounting policies continued
If  there  is  objective  evidence  that  impairment  exists,  the  amount  of  the  loss  is  measured  as  the
difference  between  the  assets  carrying  amount  and  the  value  of  the  estimated  future  cash  flows
discounted  at  the  financial  asset’s  original  effective  interest  rate.  Where  a  loss  is  incurred  this  is
recognised in the statement of comprehensive income.
(n) Cash and cash equivalents
This consists of cash at bank and in hand, deposits held at call with banks and other short-term highly
liquid investments with maturities of three months or less from the date of acquisition. Cash at bank
and  in  hand  balances  are  classified  as  loans  and  receivables  and  carried  at  amortised  cost  less  any
impairment losses.
(o) Taxation
Under  Schedule  19  of  the  Finance  Act  1993  managing  agents  are  not  required  to  deduct  basic  rate
income tax from trading income. In addition, all UK basic rate income tax (currently at 20%) deducted
from  syndicate  investment  income  is  recoverable  by  managing  agents  and  consequently  the
distribution  made  to  members  or  their  members’  agents  is  gross  of  tax.  Capital  appreciation  falls
within trading income and is also distributed gross of tax.
No  provision  has  been  made  for  any  US  federal  income  tax  payable  on  underwriting  results  or
investment  earnings.  Any  payments  on  account  made  by  the  syndicate  during  the  year  have  been
included in the balance sheet under the heading ‘other debtors’.
No provision has been made for any other overseas tax payable by members on underwriting results.
(p) Pension costs
Pension contributions relating to staff who act on behalf of the syndicate are charged to the syndicate
and included within net operating expenses.
(q) Related party transactions
The syndicate has taken advantage of the exemption contained in FRS 102.1 and has therefore not
disclosed transactions with other wholly owned entities forming part of the Beazley Group.
2 Risk management
The  managing  agent  has  identified  the  risks  arising  from  its  activities  and  has  established  policies  and
procedures  to  manage  these  items  in  accordance  with  its  risk  appetite.  The  sections  below  outline  the
syndicate’s risk appetite and explain how the managing agent defines and manages each category of risk.
The risk management framework is discussed in the managing agent's report.
2.1 Insurance risk
The syndicate’s insurance business assumes the risk of loss from persons or organisations that are directly
exposed to an  underlying  loss.  Insurance  risk  arises  from this risk  transfer  due  to  inherent  uncertainties
about  the  occurrence,  amount  and  timing  of  insurance  liabilities.  The  four  key  components  of  insurance
risk are underwriting, reinsurance, claims management and reserving. Each element is considered below.
a) Underwriting risk
Underwriting risk comprises four elements that apply to all insurance products offered by the syndicate:
 cycle  risk   the  risk  that  business  is  written  without  full  knowledge  as  to  the  (in)adequacy  of  rates,
terms and conditions;
 event  risk   the  risk  that  individual  risk  losses  or  catastrophes  lead  to  claims  that  are  higher  than
anticipated in plans and pricing;
 pricing risk – the risk that the level of expected loss is understated in the pricing process; and
 expense risk – the risk that the allowance for expenses and inflation in pricing is inadequate.
The managing agent manages and model these four elements in the following three categories: attritional
claims, large claims and catastrophe events.
SYNDICATE 3622
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
YEAR ENDED 31 DECEMBER 2024
23
2 Risk management continued
The syndicate’s underwriting strategy is to seek a diverse and balanced portfolio of risks in order to limit
the  variability  of  outcomes.  This  is  achieved  by  accepting  a  spread  of  business  over  time,  segmented
between different products, geography and size.
The  annual  business  plans  for  each  underwriting  team  reflect  the  syndicate’s  underwriting  strategy,  and
set out the classes of business, the territories and the industry sectors in which business is to be written.
These plans are approved by the Board of BFL and monitored by the underwriting committee.
The  managing  agent’s  underwriters  calculate  premiums  for  risks  written  based  on  a  range  of  criteria
tailored  specifically  to  each  individual  risk.  These  factors  include  but  are  not  limited  to  the  financial
exposure,  loss  history,  risk  characteristics,  limits,  deductibles,  terms  and  conditions  and  acquisition
expenses.  The  managing  agent  also  recognises  that  insurance  events  are,  by  their  nature,  random,  and
the  actual  number  and  size  of  events  during  any  one  year  may  vary  from  those  estimated  using
established statistical techniques.
To  address  this,  the  managing  agent  sets  out  the  exposure  that  it  is  prepared  to  accept  in  certain
territories  to  a  range  of  events  such  as  natural  catastrophes  and  specific  scenarios  which  may  result  in
large  industry  losses.  This  is  monitored  through  regular  calculation  of  Realistic  Disaster  Scenarios.  The
aggregate position is monitored at the time of underwriting a risk, and reports are regularly produced to
highlight the key aggregations to which the syndicate is exposed.
The  managing  agent  uses  a  number  of  modelling  tools  to  monitor  its  exposures  against  the  agreed  risk
appetite  set  and  to  simulate  catastrophe  losses  in  order  to  measure  the  effectiveness  of  its  reinsurance
programmes.
Stress  and  scenario  tests  are  also  run  using  these  models.  The  range  of  scenarios  considered  includes
natural catastrophe, cyber, marine, liability, political, terrorism and war events.
One  of  the  largest  types  of  event  exposure  relates  to  natural  catastrophe  events  such  as  windstorm  or
earthquake.  With  the  increasing  risk  from  climate  change  impacts  the  frequency  and  severity  of  natural
catastrophes, the managing agent continues to monitor its exposure. Where possible the managing agent
measures geographic accumulations and uses its knowledge of the business, historical loss behaviour and
commercial  catastrophe  modelling  software  to  assess  the  expected  range  of  losses  at  different  return
periods.  Upon  application  of  the  reinsurance  coverage  purchased,  the  key  gross  and  net  exposures  are
calculated on the basis of extreme events at a range of return periods.
To  manage  underwriting  exposures,  the  managing  agent  has  developed  limits  of  authority  and  business
plans which are binding upon all staff authorised to underwrite and are specific to underwriters, classes of
business and industry.
These authority limits are enforced through a comprehensive sign-off process for underwriting transactions
including  dual  sign-off  for  all  line  underwriters  and  peer  review  for  all  risks  exceeding  individual
underwriters authority limits. Exception reports are also run regularly to monitor compliance.
All  underwriters  also  have  a  right  to  refuse  renewal  or  change  the  terms  and  conditions  of  insurance
contracts  upon  renewal.  Rate  monitoring  details,  including  limits,  deductibles,  exposures,  terms  and
conditions  and  risk  characteristics  are  also  captured  and  the  results  are  combined  to  monitor  the  rating
environment for each class of business.
Binding Authority contracts
A proportion of the syndicate’s insurance risks are transacted by third parties under delegated underwriting
authorities.  Each  third  party  is  thoroughly  vetted  by    the  managing  agent's  coverholder  approval  group
before it can bind risks, and is subject to rigorous monitoring to maintain underwriting quality and confirm
ongoing compliance with contractual guidelines.
b) Reinsurance risk
Reinsurance risk to the syndicate arises where reinsurance contracts put in place to reduce gross insurance
risk do not perform as anticipated, result in coverage disputes or prove inadequate in terms of the vertical
or horizontal limits purchased. Failure of a reinsurer to pay a valid claim is considered a credit risk which is
detailed separately below.
The  syndicate’s  reinsurance  programmes  complement  the  underwriting  team  business  plans  and  seek  to
protect syndicate  capital from an  adverse volume or volatility of claims on both a per risk and per event
basis. In some cases the syndicate deems it more economic to hold capital than purchase reinsurance.
SYNDICATE 3622
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
YEAR ENDED 31 DECEMBER 2024
24
2 Risk management continued
These  decisions  are  regularly  reviewed  as  an  integral  part  of  the  business  planning  and  performance
monitoring process.
The  reinsurance  security  committee  (‘RSC’)  examines  and  approves  all  reinsurers  to  ensure  that  they
possess  suitable  security.  The  syndicate’s  ceded  reinsurance  team  ensures  that  these  guidelines  are
followed, undertakes the administration of reinsurance contracts, monitors and instigates our responses to
any erosion of the reinsurance programmes.
c) Claims management risk
Claims  management  risk  may  arise  within  the  syndicate  in  the  event  of  inaccurate  or  incomplete  case
reserves and claims settlements, poor service quality or excessive claims handling costs. These risks may
damage the Beazley brand and undermine its ability to win and retain business or incur punitive damages.
These risks can occur at any stage of the claims life-cycle.
The  syndicate’s  claims  teams  are  focused  on  delivering  quality,  reliability  and  speed  of  service  to  both
internal  and  external  clients.  Their  aim  is  to  adjust  and  process  claims  in  a  fair,  efficient  and  timely
manner,  in  accordance  with  the  policy’s  terms  and  conditions,  the  regulatory  environment,  and  the
business’s  broader  interests.  Prompt  and  accurate  case  reserves  are  set  for  all  known  claims  liabilities,
including provisions for expenses.
d) Reserving and ultimate reserves risk
Reserving and ultimate reserves risk occurs within the syndicate where established insurance liabilities are
insufficient  through  inaccurate  forecasting,  or  where  there  is  inadequate  allowance  for  expenses  and
reinsurance bad debts in provisions.
To manage reserving and ultimate reserves risk, our actuarial team uses a range of recognised techniques
to project gross premiums written, monitor claims development patterns and stress test ultimate insurance
liability balances. An external independent actuary also performs an annual review to produce a statement
of actuarial opinion for the syndicate.
The  objective  of  the  syndicate’s  reserving  policy  is  to  produce  accurate  and  reliable  estimates  that  are
consistent over time and across classes of business. The estimates of gross premiums written and claims
prepared  by  the  actuarial  department  are  used  through  a  formal  quarterly  peer  review  process  to
independently  test  the  integrity  of  the  estimates  produced  by  the  underwriting  teams  for  each  class  of
business. These meetings are attended by senior management, senior underwriters, actuarial, claims, and
finance representatives.
The syndicate monitors its exposure to insurance risk by location. The geographical breakdown of written
premiums is disclosed in note 3.
A set increase or decrease in total claims liabilities would have the following impact on profit and members'
balances' on the following page:
Sensitivity to insurance risk (claims reserves)
Impact on profit and members'
balances'
2024
£'000
2023
£'000
Claims outstanding - gross of reinsurance   14,620    19,768
Claims outstanding - net of reinsurance   12,506    16,200
5% increase in gross claims reserve
  (731)  (988)
5% decrease in gross claims reserve
  731    988
5% increase in net claims reserve
  (625)  (810)
5% decrease in net claims reserve   625    810
2.2 Market risk
Market  risk  arises  where  the  value  of  assets  and  liabilities  changes  as  a  result  of  movements  in  foreign
exchange rates, interest rates and market prices.
SYNDICATE 3622
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
YEAR ENDED 31 DECEMBER 2024
25
2 Risk management continued
Foreign exchange risk
The  functional  and  presentational  currency  of  the  syndicate  is  the  pound  sterling.  The  effect  of  this  on
foreign  exchange  risk  is  that  the  syndicate  is  exposed  to  fluctuations  in  exchange  rates  for  non-sterling
denominated transactions and net assets.
The syndicate deals in four  main  settlement  currencies: US dollars, sterling, Canadian dollars and  euros.
Transactions in all currencies are converted to sterling on initial recognition and revalued at the reporting
date. Remaining foreign exchange risk is still actively managed as described below.
The  following  table  summarises  the  carrying  value  of  total  assets  and  total  liabilities  categorised  by
currency:
CAD $ EUR € US $ Other Subtotal  UK £
Total
31 December 2024 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Investments
        3    3,162    3,165    269    3,434
Reinsurers' share of technical
provisions
     9    432       441    4,011    4,452
Debtors
  505    (77)    3,244       3,672    16,591    20,263
Other assets
  10    1,421    4,478       5,909    2,955    8,864
Prepayments and accrued income
  3    50    640       693    1,781    2,474
Total assets
  518    1,403    8,797    3,162    13,880    25,607    39,487
Technical provisions
  (208)    (353)    (6,730)       (7,291)    (20,191)    (27,482)
Creditors
  (13)    1,635    (3,455)       (1,833)    (5,155)    (6,988)
Accruals and deferred income
        (3)       (3)    (740)    (743)
Total liabilities
  (221)    1,282    (10,188)       (9,127)    (26,086)    (35,213)
Total Capital and Reserves   297    2,685    (1,391)   3,162    4,753    (479)   4,274
CAD $ EUR € US $ Other Subtotal UK £ Total
31 December 2023 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Investments
        3    3,386    3,389    325    3,714
Reinsurers' share of technical
provisions
  28    6    875       909    5,137    6,046
Debtors
  56    (115)    4,980       4,921    14,991    19,912
Other assets
  10    768    3,037       3,815    9,959    13,774
Prepayments and accrued income
     42    575       617    1,932    2,549
Total assets
  94    701    9,470    3,386    13,651    32,344    45,995
Technical provisions
  (42)    (339)    (6,195)       (6,576)    (26,767)    (33,343)
Creditors
     1,374    (327)       1,047    (11,760)    (10,713)
Accruals and deferred income
                 (643)    (643)
Total liabilities
  (42)   1,035    (6,522)      (5,529)   (39,170)   (44,699)
Total Capital and Reserves
  52    1,736    2,948    3,386    8,122    (6,826)   1,296
Foreign exchange risk - Sensitivity analysis
In  2024,  the  syndicate  managed  its  foreign  exchange  risk  by  periodically  assessing  its  non-sterling
exposures while targeting net assets to be predominately sterling denominated. As at 31 December 2024
the syndicate held no derivatives (2023: nil).
Fluctuations in the syndicate’s trading currencies against pound sterling would result in a change to profit
and members' balances. The table below gives an indication of the impact on profit and members' balances
of a 10% change in relative strength of sterling against the value of US dollar, Canadian dollar and euro,
simultaneously.  The  analysis  is  based  on  the  current  information  available  and  an  assumption  that  the
impact  of  foreign  exchange  on  non-monetary  items  will  be  nil  and  is  presented  net  of  the  impact  of  the
exchange rate derivatives referenced above.
SYNDICATE 3622
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
YEAR ENDED 31 DECEMBER 2024
26
2 Risk management continued
Impact on profit and members
balances
Change in exchange rate of US dollar, Canadian dollar and euro
relative to sterling
2024
£'000
2023
£'000
Sterling weakens 10% against other currencies   172    431
Sterling strengthens 10% against other currencies
  (172)  (431)
Interest rate risk
Some  of  the  syndicate’s  financial  instruments,  including  financial  investments  and  cash  and  cash
equivalents are exposed to movements in market interest rates.
The syndicate manages interest rate risk by primarily investing in short duration financial investments and
cash and cash equivalents. The Investment Committee monitors the duration of these assets on a regular
basis.
The  syndicate  also  entered  into  interest  rate  futures  contracts  to  manage  the  interest  rate  risk  on  fixed
income portfolios.
The following table shows the average duration at the reporting date of the financial instruments that are
exposed  to  movements  in  market  interest  rates.  Duration  is  a  commonly  used  measure  of  volatility  and
gives a better indication than maturity of the likely sensitivity of our portfolio to changes in interest rates.
Duration <1 yr 1-2 yrs 2-3 yrs 3-4 yrs 4-5 yrs 5-10 yrs >10 yrs Total
31 December
2024
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Other investments
  3,165                      3,165
Cash at bank in
hand
  8,864                      8,864
Syndicate loans to
central fund
  269                      269
Total   12,298                      12,298
Duration <1 yr 1-2 yrs 2-3 yrs 3-4 yrs 4-5 yrs 5-10 yrs >10 yrs Total
31 December
2023
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Other
investments
  3,389                   
  3,389
Cash at bank in
hand
  13,774                      13,774
Syndicate loans
to central fund
  80    245                   325
Total  17,243    245                   17,488
Interest rate risk - Sensitivity analysis
The  syndicate  holds  financial  assets  and  liabilities  that  are  exposed  to  interest  rate  risk.  Changes  in
interest yields, with all other variables constant, will not result in changes in the capital value of deposits
held.  The  impact  of  movements  in  interest  rates  was  not  material  to  the  fair  value  of  the  syndicate’s
financial assets at 31 December 2024 or 31 December 2023.
Impact on profit for the year
Impact on members balances
Shift in yield (basis
points)
2024
£'000
2023
£'000
2024
£'000
2023
£'000
50 basis point increase   (57)  (41)   (57)  (41)
50 basis point decrease
  57    41    57    41
SYNDICATE 3622
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
YEAR ENDED 31 DECEMBER 2024
27
2 Risk management continued
Price risk
Financial assets are recognised on the balance sheet at their fair value are not susceptible to losses due
to adverse changes  in  prices.  This  is  referred  to as price  risk. Financial assets include fixed term money
market  deposits,  that  invest  in  fixed  and  floating  debt  securities.  The  fixed  income  securities  are  well
diversified  across  high  quality,  liquid  securities.  The  price  risk  associated  with  these  securities  is
predominantly interest and foreign exchange.
2.3 Credit risk
Credit risk arises from the failure of another party to perform its financial or contractual obligations to the
syndicate in a timely manner. The primary sources of credit risk for the syndicate are:
 reinsurers whereby reinsurers may fail to pay valid claims against a reinsurance contract held by
the syndicate;
 brokers and coverholders whereby counterparties fail to pass on premiums or claims collected or
paid on behalf of the syndicate;
 investments   whereby  issuer  default  results  in  the  syndicate  losing  all  or  part  of  the  value  of  a
financial instrument and derivative financial instrument; and
 cash at bank and in hand.
The syndicate’s core business is to accept significant insurance risk and the appetite for other risks is low.
This protects the syndicate’s capital from erosion so that it can meet its insurance liabilities.
The syndicate limits exposure to a single counterparty or a group of counterparties and analyses the
geographical locations of exposures when assessing credit risk.
An approval system also exists for all new brokers, and broker performance is carefully monitored. Regular
exception reports highlight trading with non-approved brokers, and the syndicate’s credit control function
frequently assesses the ageing and collectability of debtor balances. Any large, aged items are prioritised
and where collection is outsourced, incentives are in place to support these priorities.
The  Investment  Committee  has  established  comprehensive  guidelines  for  the  syndicate’s  investment
managers  regarding  the  type,  duration  and  quality  of  investments  acceptable  to  the  syndicate.  The
performance of investment managers is regularly reviewed to confirm adherence to these guidelines.
The managing agent has developed processes to formally examine all reinsurers before entering into new
business arrangements. New reinsurers are approved by the Reinsurance Security Committee, which also
reviews  arrangements  with  all  existing  reinsurers  at  least  annually.  Vulnerable  or  slow-paying  reinsurers
are examined more frequently.
To assist in the understanding of credit risks, A.M. Best, Moody’s and Standard & Poor’s (‘S&P’) ratings are
used. These ratings have been categorised below as used for Lloyd’s reporting.The tables on the following
page summarise the syndicate’s concentrations of credit risk:
AAA AA A BBB
Other
Not
Rated
Total
31 December 2024 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Investments
Syndicate loans to central fund         269             269
Other investments         3,165             3,165
Total Investments         3,434             3,434
Reinsurers’ share of outstanding
claims      373    1,444          297    2,114
Debtors arising out of direct
insurance operations
                 14,715    14,715
Debtors arising out of direct
reinsurance operations
     12    2,320          3,192    5,524
Cash at bank and in hand
        8,864             8,864
Other debtors and accrued interest   16                60    76
Total    16    385    16,062          18,264    34,727
SYNDICATE 3622
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
YEAR ENDED 31 DECEMBER 2024
28
2 Risk management continued
AAA AA A BBB
Other
Not
Rated
Total
31 December 2023 £'000 £'000 £'000 £'000 £'000 £'000 £'000
Investments
Syndicate loans to central fund         325             325
Other investments         3,389             3,389
Total Investments         3,714             3,714
Reinsurers’ share of outstanding
claims      287    3,281             3,568
Debtors arising out of direct
insurance operations
                 15,787    15,787
Debtors arising out of direct
reinsurance operations
     13    2,138          1,957    4,108
Cash at bank and in hand
     2,998    10,776             13,774
Other debtors and accrued interest   2                222    224
Total   2    3,298    19,909          17,966    41,175
Based  on  all  evidence  available,  debtors  arising  out  of  insurance  operations  and  other  debtors  have  not
been impaired and no impairment provision has been recognised in respect of these assets (2023:Nil). No
other financial assets held at year end were impaired.
The syndicate has insurance debtors and reinsurance assets that are past due but not impaired at the
reporting date. An aged analysis of these is presented below:
Neither Past
due nor
impaired
Past due but
not impaired
Gross value
of impaired
assets
Impairment
allowance
Total
31 December 2024 £'000 £'000 £'000 £'000 £'000
Investments
Syndicate loans to central fund   269             269
Other investments   3,165             3,165
Total Investments   3,434             3,434
Reinsurers’ share of claims outstanding
  2,114             2,114
Debtors arising out of direct insurance
operations
  14,715             14,715
Debtors arising out of reinsurance
operations
  4,567    957          5,524
Cash at bank and in hand
  8,864             8,864
Other debtors and accrued interest   76             76
Total    33,770    957          34,727
SYNDICATE 3622
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
YEAR ENDED 31 DECEMBER 2024
29
2 Risk management continued
Neither Past
due nor
impaired
Past due but
not impaired
Gross value
of impaired
assets
Impairment
allowance
Total
31 December 2023
£'000 £'000 £'000 £'000 £'000
Investments
Syndicate loans to central fund   325             325
Other investments   3,389             3,389
Total financial investments   3,714             3,714
Reinsurers’ share of claims outstanding   3,568             3,568
Debtors arising out of direct insurance
operations
  15,787             15,787
Debtors arising out of reinsurance
operations
  3,307    801          4,108
Cash at bank and in hand
  13,774             13,774
Other debtors and accrued interest   224          
  224
Total    40,374    801          41,175
The table below sets out the reconciliation of changes in impairment allowance during the period for reach
class of financial asset at the balance sheet date.
The  table  below  sets  out  the  age  analysis  of  financial  assets  that  are  past  due  but  not  impaired  at  the
balance sheet date:
Past due but not impaired assets
0 - 3 months
past due
3 - 6 months
past due
6 - 12 months
past due
Greater than 1
year past due
Total
31 December 2024
$'000 $'000 $'000 $'000 $'000
Debtors arising out of reinsurance
operations
     905       52  957
Debtors arising out of direct insurance
operations
              
Total      905       52  957
Past due but not impaired assets
0 - 3 months
past due
3 - 6 months
past due
6 - 12 months
past due
Total
31 December 2023
$'000 $'000 $'000 $'000 $'000
Debtors arising out of reinsurance
operations
     801        801
Debtors arising out of direct insurance
operations
              
Total      801          801
2.4 Liquidity risk
Liquidity  risk  arises  where  cash  may  not  be  available  to  pay  obligations  when  due  at  a  reasonable  cost.
The syndicate is exposed to daily calls on its available cash resources, principally from claims arising from
its insurance business. In the majority of the cases, these claims are settled from the premiums received.
The syndicate’s approach is to manage its liquidity position so that it can reasonably survive a significant
individual or market loss event. This means that the syndicate maintains sufficient liquid assets, or assets
that  can  be  translated  into  liquid  assets  at  short  notice  and  without  any  significant  capital  loss,  to  meet
expected cash flow requirements. These liquid funds are regularly monitored using cash flow forecasting to
ensure that surplus funds are invested to achieve a higher rate of return.The table below summarises the
carrying amount at reporting date of financial instruments analysed by maturity on the following page:
The  maturity  analysis  presented  in  the  table  below  shows  the  remaining  contractual  maturities  for  the
Syndicate’s  insurance  contracts  and  financial  instrument  liabilities.  For  insurance  and  reinsurance
contracts,  the  contractual  maturity  is  the  estimated  date  when  the  gross  undiscounted  contractually
required cash flows will occur. For financial liabilities, it is the earliest date on which the gross
SYNDICATE 3622
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
YEAR ENDED 31 DECEMBER 2024
30
2 Risk management continued
undiscounted cash flows  (including contractual interest payments)  could be paid assuming  conditions are
consistent with those at the reporting date.
Maturity
Carrying
amount
No maturity
stated
0 - 1 yrs 1 - 3 yrs 3 - 5 yrs >5 yrs Total
31 December 2024 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Claims outstanding
  14,620       2,152    4,977    3,477    4,014    14,620
Creditors
  6,988       6,988          
  6,988
Other liabilities
  743       743          
  743
Total   22,351       9,883    4,977    3,477    4,014    22,351
Maturity
Carrying
amount
No maturity
stated
0 - 1 yrs 1 - 3 yrs 3 - 5 yrs >5 yrs Total
31 December 2023 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Claims outstanding
  19,768       3,353    6,805    4,515    5,095    19,768
Creditors
  10,714       10,714          
  10,714
Other liabilities
  642       642          
  642
Total   31,124       14,709    6,805    4,515    5,095   31,124
2.5 Capital management
Capital framework at Lloyd’s
The  Society  of  Lloyd’s  is  a  regulated  undertaking  and  subject  to  the  supervision  of  the  Prudential
Regulation Authority under the Financial Services and Markets Act 2000.
Within this supervisory framework, Lloyd’s applies capital requirements at member level and centrally to
ensure that Lloyd’s complies with Solvency II, and beyond that to meet its own financial strength, license
and  ratings  objectives.  Although,  as  described  below,  the  Lloyd’s  capital  setting  processes  use  a  capital
requirement  set  at  syndicate  level  as  a  starting  point,  the  requirement  to  meet  Solvency  II  and  Lloyd’s
capital  requirements  apply  at  an  overall  and  member  level  respectively,  not  at  a  syndicate  level.
Accordingly  the  capital  requirement  in  respect  of  Syndicate  3622  is  not  disclosed  in  these  financial
statements.
Lloyd’s capital setting process
In  order  to  meet  Lloyd’s  requirements,  each  syndicate  is  required  to  calculate  its  Solvency  Capital
Requirement ('SCR') for the prospective underwriting year. This amount must be sufficient to cover a 1 in
200 year  loss,  reflecting  uncertainty  in  the  ultimate  run-off  of  underwriting  liabilities  (SCR  ‘to  ultimate’).
The syndicate  must  also  calculate  its  SCR  at  the  same  confidence  level  but  reflecting  uncertainty  over  a
one year time horizon (one year SCR) for Lloyd’s to use in meeting Solvency II requirements. The SCRs of
each syndicate are subject to review by Lloyd’s and approval by the Lloyd’s Capital and Planning Group.
A  syndicate  comprises  one  or  more  underwriting  members  of  Lloyd’s.  Each  member  is  liable  for  its  own
share of underwriting liabilities on the syndicate(s) on which it participates but not other members’ shares.
Accordingly, the  capital requirement that  Lloyd’s sets for each member operates on a similar basis. Each
member’s  SCR  shall  thus  be  determined  by  the  sum  of  the  member’s  share  of  the  syndicate  SCR  to
ultimate.
Where a member participates on more than one syndicate, a credit for diversification is provided to reflect
the spread of risk, but consistent with determining an SCR which reflects the capital requirement
to cover a 1 in 200 year loss to ultimate for that member. Over and above this, Lloyd’s applies a capital
uplift  to  the  member’s  capital  requirement,  known  as  the  Economic  Capital  Assessment  (‘ECA’).  The
purpose  of  this  uplift,  which  is  a  Lloyd’s  not  a  Solvency  II  requirement,  is  to  meet  Lloyd’s  financial
strength, licence and ratings objectives. The capital uplift applied for 2024 was 35% (2023: 35%) of the
member’s SCR to ultimate.
SYNDICATE 3622
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
YEAR ENDED 31 DECEMBER 2024
31
2 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), held within and managed within a syndicate (funds in syndicate) and/or as
the member’s share of the Solvency II members’ balances on each syndicate on which it participates.
3 Analysis of underwriting result
31 December 2024
Gross
premiums
written
Gross
premiums
earned
Gross claim
incurred
Net
operating
expenses*
Reinsurance
balance
£'000 £'000 £'000 £'000 £'000 £'000
Direct Insurance
Life   25,602    26,168    (6,292)    (12,018)   (3,207)   4,651
Total direct
insurance
  25,602    26,168    (6,292)   (12,018)  (3,207)  4,651
Reinsurance
acceptances
  5,777    5,892    (1,569)   (1,595)   (13)   2,715
Total   31,379    32,060    (7,861)   (13,613)   (3,220)  7,366
31 December 2023
Gross
premiums
written
Gross
premiums
earned
Gross claim
incurred
Net
operating
expenses*
Reinsurance
balance
Underwriting
result
£'000 £'000 £'000 £'000 £'000 £'000
Direct Insurance
Life   26,781    27,287    (20,338)    (9,653)   547    (2,157)
Total direct
insurance
  26,781    27,287    (20,338)  (9,653)   547    (2,157)
Reinsurance
acceptances
  3,077    2,530    2,028    (1,510)   (299)    2,749
Total   29,858    29,817    (18,310)   (11,163)  248    592
*Included in net operating expenses is income arising from overrider commissions from reinsurance
operations of $47K (2023: ($67K)).
No gains or losses were recognised in profit or loss during the year on buying reinsurance (2023: nil). The
gross premiums written by destination of risk is presented in the table below:
Concentration of insurance risk
2024
£'000
2023
£'000
United Kingdom 17,921 18,747
US      
European Union member states 1,024 1,071
Rest of world 6,657 6,963
Total 25,602 26,781
SYNDICATE 3622
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
YEAR ENDED 31 DECEMBER 2024
32
4 Net operating expenses
2024 2023
£'000 £'000
Acquisition costs
  6,152    5,304
Change in deferred acquisition costs
  (89)    67
Administrative expenses
  7,597    5,725
Reinsurance commission and profit participation   (47)    67
Total   13,613    11,163
Acquisition costs include commissions for direct insurance business as shown below:
2024 2023
£'000 £'000
Total commission for direct insurance business
  5,027    4,209
2024 2023
£’000 £’000
Auditor’s remuneration:
Fees payable to the syndicate’s auditor for
the audit of these annual accounts
  95    93
Fees payable to the syndicate’s auditor and other services pursuant to
legislation
  129    107
Fees payable to the syndicate's auditor in relation to other services pursuant to legislation primarily relate
to the review and audit of syndicate regulatory returns along with the statement of actuarial opinion.
5 Staff numbers and costs
The syndicate has no employees. All staff are employed by Beazley Management Limited ('BML'), a related
company to the managing agent, both of which operate within the Beazley Group. The average number of
persons employed by BML and working for the syndicate in some capacity are as follows.
Number of employees
2024 2023
Administration and finance   870    799
Underwriting   239    234
Claims   88    75
Investments   8    8
Total
  1,205    1,116
The following amounts were recharged to the syndicate in respect of staff costs:
2024 2023
£'000 £'000
Wages and salaries   1,801    1,529
Social security   656    475
Pension costs   541    391
Short term incentive payments   1,734    1,027
Total   4,732    3,422
SYNDICATE 3622
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
YEAR ENDED 31 DECEMBER 2024
33
6 Key management personnel compensation
The  Directors  of  BFL,  excluding  the  active  underwriter,  received  the  following  aggregate  remuneration
charged to Syndicate 3622 and included within net operating expenses:
2024 2023
£'000
£'000
Emoluments
  167
  156
  167    156
The active underwriter received the following aggregate remuneration charged to the Syndicate 3622.
2024 2023
£'000
£'000
Emoluments
70
60
7 Investment return
2024 2023
£'000 £'000
Interest and similar income
From financial instruments designated at fair value through
profit or loss
Interest and similar income   23    123
From financial instruments classified at amortised cost
Interest on cash at bank   195    220
From financial instruments designated at fair value through
profit or loss
Unrealised gains on investments   31    209
Unrealised losses on the investments   (7)    (201)
Total investment return   242    351
Transferred to the technical account from the non-technical account
  242    351
Impairment losses on debtors recognised in administrative expenses
     
8 Distribution and open years of account
A distribution of £646.8K to members will be proposed in relation to the 2022 year of account which is
closing (2023: distribution of £4,580k profit for the 2021 year of account).
SYNDICATE 3622
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
YEAR ENDED 31 DECEMBER 2024
34
9 Financial investments
Market value Cost
2024 2023 2024 2023
Financial assets at fair value £'000 £'000 £'000 £'000
Syndicate loans to central fund
  269    325    264    330
Other investments
  3,165    3,389    3,165    3,389
Total financial investments
3,434 3,714   3,429  3,719
Overseas deposits, included within other investments, are held as a condition of conducting underwriting
business in certain countries.
2024 2023
£'000 £'000
Financial assets measured at fair value through profit or loss   3,434    3,714
Total financial investments
  3,434    3,714
Valuation hierarchy
All  assets  and  liabilities  for  which  fair  value  is  measured  or  disclosed  in  the  financial  statements  are
categorised  within  the  fair  value  hierarchy  described  as  follows,  based  on  the  lowest  level  input  that  is
significant to the fair value measurement as a whole. If the inputs used  to  measure  the  fair  value  of  an
asset or  a  liability  could  be  categorised  in  different  levels  of  the  fair  value  hierarchy,  then the  fair  value
measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level
input that is significant to the entire measurement.
Level 1 Valuations based on quoted prices in active markets for identical instruments. An active market
is  a  market  in  which  transactions  for  the  instrument  occur  with  sufficient  frequency  and  volume  on  an
ongoing  basis  such  that  quoted  prices  reflect  prices  at  which  an  orderly  transaction  would  take  place
between market participants at the measurement date.
Level 2 – Valuations based on quoted prices in markets that are not active, or based on pricing models for
which significant inputs can be corroborated by observable market data, directly or indirectly (e.g. interest
rates, exchange rates). Level 2 inputs include:
 Quoted prices similar assets and liabilities in active markets;
 Quoted prices for identical or similar assets and liabilities in markets that are not active, the prices
are not current, or price quotations vary substantially either over time or among market makers, or
in which little information is released publicly;
 Inputs other than quoted prices that  are observable for the asset  or liability (for example, interest
rates  and  yield  curves  observable  at  commonly  quoted  intervals,  implied  volatilities  and  credit
spreads); and
 Market corroborated inputs. Included within level 2 are government bonds and treasury bills, equity
funds and corporate bonds which are not actively traded, hedge funds and senior secured loans.
Level  3   Valuations  based  on  inputs  that  are  unobservable  or  for  which  there  is  limited  market  activity
against which to measure fair value. The availability of financial data can vary for different financial assets
and is affected by  a  wide  variety  of  factors,  including the type of financial instrument, whether it is new
and not yet  established in the marketplace,  and other characteristics specific to  each transaction. To the
extent that valuation is based on models or inputs that are unobservable in the market, the determination
of fair value requires more judgement. Accordingly the degree of judgement exercised by management in
determining fair value is greatest for instruments classified in level 3. The syndicate uses prices and inputs
that are current as of the measurement date for valuation of these instruments.
Valuation approach
The valuation approach for fair value assets and liabilities classified as level 3 is as follows:
The syndicate loans are loans provided to the Central Fund at Lloyd’s. These instruments are not tradeable
and are valued using discounted cash flow models, designed to appropriately reflect the credit and liquidity
risk of the instruments.
SYNDICATE 3622
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
YEAR ENDED 31 DECEMBER 2024
35
35
       
9 Financial investments continued
The  table  on  the  following  page  shows  the  fair  value  of  financial  instruments  at  31  December  2024,
including their levels in the fair value hierarchy:
2024 Level 1 Level 2 Level 3 Total
Financial assets at fair value
£'000 £'000 £'000 £'000
Syndicate loans to central fund      
  269
  269
Other investments
  3,165       
  3,165
Total financial assets at fair value   3,165       269    3,434
2023 Level 1 Level 2 Level 3 Total
Financial assets at fair value
£'000 £'000 £'000 £'000
Syndicate loans to central fund
        325    325
Other investments
  3,389          3,389
Total financial assets at fair value   3,389       325    3,714
10 Debtors arising out of direct insurance
2024 2023
£'000 £'000
Due within one year   14,715    15,787
Due after one year      
  14,715    15,787
11 Debtors arising out of direct reinsurance
2024 2023
£'000 £'000
Due within one year   5,524    4,108
Due after one year
  
  
  5,524    4,108
12 Other debtors
2024 2023
£'000 £'000
Amount due from syndicate 2623   16    2
Inter syndicate balance 16   2
Net amount due from other related entities
     
Sundry debtors including taxation   8    15
Total other debtors
  24    17
These balances are due within one year.
SYNDICATE 3622
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
YEAR ENDED 31 DECEMBER 2024
36
13 Deferred acquisition costs
2024 2023
Gross Reinsurance Net Gross Reinsurance Net
£'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 January
  2,342    (22)
  2,320
  2,421    (2)   2,419
Incurred deferred acquisition
costs   6,152    (22)   6,130    5,304    (22)   5,282
Amortised deferred
acquisition costs   (6,062)    20    (6,042)    (5,371)   2    (5,369)
Foreign exchange movements
  (10)    
  (10)
  (12)      (12)
Balance at 31 December
  2,422    (24)   2,398    2,342    (22)   2,320
14 Analysis of net debt
All amounts in $'000
At 1
January
2024
Cash flows Acquired
Fair value and
exchange
movements
Non cash
charges
Cash at bank and in
hand
  13,774    (4,783)       (127)      8,864
Total
  13,774    (4,783)      (127)      8,864
All amounts in $'000
At 1
January
2023
Cash flows Acquired
Fair value and
exchange
movements
Non cash
charges
Cash at bank and in
hand
  10,796    3,055       (77)      13,774
Total   10,796    3,055       (77)     13,774
SYNDICATE 3622
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
YEAR ENDED 31 DECEMBER 2024
37
15 Technical Provisions
The table below shows changes in the insurance contract liabilities and assets from the beginning of the
period to the end of the period.
2024 2023
Gross
provisions
Reinsurance
assets
Net
Gross
provisions
Reinsurance
assets
Net
Claims outstanding £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 January
  19,768    (3,568)    16,200    16,611    (1,874)    14,737
Claims paid during the year
  (12,931)    4,824    (8,107)    (15,025)    5,443    (9,582)
Expected cost of current year
claims
  17,837    (5,483)    12,354    21,866    (6,182)    15,684
Change in estimates of prior year   (9,976)    2,102    (7,874)    (3,556)    (966)    (4,522)
Effect of movements in exchange
rate
  (78)    11    (67)    (128)    11    (117)
Balance at 31 December
  14,620    (2,114)  12,506    19,768    (3,568)   16,200
2024 2023
Gross
provisions
Reinsurance
assets
Net
Gross
provisions
Reinsurance
assets
Net
Unearned premiums £'000 £'000 £'000 £'000 £'000 £'000
Balance at 1 January
  13,575    (2,478)    11,097    13,576    (2,802)   10,774
Premiums written during the year
  31,379    (6,464)    24,915    29,858    (6,580)   23,278
Premiums earned during the year
  (32,060)    6,601    (25,459)    (29,817)    6,900
 (22,917) 
Effect of movements in exchange
rate
  (32)    3    (29)    (42)    4    (38)
Balance at 31 December
  12,862    (2,338)   10,524    13,575    (2,478)
11,097
Refer to note 2 for the sensitivity analysis performed over the value of insurance liabilities, disclosed in the
accounts, to potential movements in the assumptions applied within the technical provisions.
SYNDICATE 3622
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
YEAR ENDED 31 DECEMBER 2024
38
15 Technical Provisions continued
The  following  tables  illustrate  the  development  of  the  estimates  of  ultimate  cumulative  claims  incurred,
including  claims  notified  and  IBNR,  for  each  successive  underwriting  year,  illustrating  how  amounts
estimated have changed from the first estimates made.
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Total
Gross amounts
£ '000 £ '000 £ '000 £ '000 £ '000 £ '000 £ '000 £ '000 £ '000 £ '000 £ '000
12 months
10,129 16,174 11,438 17,283 13,361 15,083 16,464 20,656 22,626 20,505
24 months
9,548 15,227 11,494 17,553 14,222 16,432 16,850 23,401 14,449
36 months
9,724 8,701 11,614 16,005 12,028 15,309 15,352 19,305
48 months
9,306 9,232 10,920 13,777 10,238 13,602 13,285
60 months
9,221 9,252 10,870 13,946 9,745 13,113
72 months
9,116 9,112 10,858 12,698 9,571
84 months
9,117 9,119 10,858 12,653
96 months
9,080 9,163 10,861
108 months
9,080 9,163
120 months
9,077
Total Ultimate
Losses (£'000)
9,077 9,163 10,861 12,653 9,571 13,113 13,285 19,305 14,449 20,505 131,982
Provision in
respect of prior
years (2014 and
earlier)
  4
Less gross paid
claims (£'000)
  (9,077)    (9,163)   (10,861)    (9,686)    (9,571)   (13,006)   (13,015)   (18,030)    (11,190)    (7,212)
 (110,811) 
Gross claims
reserves
(unearned)
           2,967       107    270    1,275    3,259    13,293    21,175
Less unearned
portion of
ultimate losses
(£'000)
        (146) (6,409) (6,555)
Gross claims
reserves
(£'000)
           2,967       107    270    1,275    3,113    6,884    14,620
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Total
Net amounts
£ '000 £ '000 £ '000 £ '000 £ '000 £ '000 £ '000 £ '000 £ '000 £ '000 £ '000
12 months
9,918 16,112 11,309 16,976 12,781 12,938 11,684 15,657 16,894 15,396
24 months
9,419 15,171 11,249 17,118 13,709 13,487 11,692 16,571 9,348
36 months
9,642 8,701 11,569 15,575 11,944 12,443 9,764 13,442
48 months
9,262 9,222 10,920 13,774 10,238 11,084 8,219
60 months
9,178 9,253 10,870 13,933 9,737 10,662
72 months
9,073 9,112 10,858 12,696 9,571
84 months
9,074 9,119 10,858 12,653
96 months
9,037 9,163 10,861
108 months
9,037 9,163
120 months
9,034
Total Ultimate
Losses (£'000)
9,034 9,163 10,861 12,653 9,571 10,662 8,219 13,442 9,348 15,396 108,349
Provision in
respect of prior
years (2014 and
earlier)
  4
Less net paid
claims (£'000)
  (9,034)    (9,163)   (10,861)    (9,686)    (9,571)   (10,562)    (8,013)   (12,451)    (6,697)    (5,876)    (91,914)
Net claims
reserves
(unearned)
           2,967       100    206    991    2,651    9,520    16,439
Less unearned
portion of ultimate
losses (£'000)
                          (81)    (3,852)    (3,933)
Net claims
reserves
(£'000)
           2,967       100    206    991    2,570    5,668    12,506
SYNDICATE 3622
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
YEAR ENDED 31 DECEMBER 2024
39
16 Creditors arising out of direct reinsurance operations
2024 2023
£'000 £'000
Due within year   3,896    6,714
Due after one year      
  3,896    6,714
17 Other creditors
2024 2023
£'000 £'000
Amounts due to group undertakings   3,092    4,000
  3,092    4,000
The above other creditors balances are payable within one year.
18 Subsequent events
The proposed distribution to members is disclosed in note 8.
19 Funds at Lloyd's
Every member is required to hold capital at Lloyd’s  which is held in trust and known as Funds at  Lloyd’s
(‘FAL’).  These  funds  are  intended  primarily  to  cover  circumstances  where  Syndicate  assets  prove
insufficient to meet participating members’ underwriting liabilities. The level of FAL that Lloyd’s requires a
member to maintain is determined by Lloyd’s based on Prudential Regulatory Authority requirements and
resource  criteria.  The  determination  of  FAL  has  regard  to  a  number  of  factors  including  the  nature  and
amount of risk to be underwritten by the member and the assessment of the reserving risk in respect of
business that has been underwritten. Since FAL is not under the management of the managing agent, no
amount  has  been  shown  in  these  Financial  Statements  by  way  of  such  capital  resources.  However,  the
managing  agent  is  able  to  make  a  call  on  the  Member’s  FAL  to  meet  liquidity  requirements  or  to  settle
losses
20 Changes in accounting policies - presentation
The 2023 syndicate accounts were prepared in line with the relevant accounting standards and regulatory
requirements  and  received  an  unqualified  audit  opinion  from  the  Syndicate’s  auditor.  However,  the
managing  agent  has  voluntarily  elected  to  enact  certain  changes  in  accounting  policy  relating  to  the
presentation of various items in the financial statements for this syndicate for the year ended 31 December
2024. The  changes  are  intended  to  align  the  presentation  of  the  syndicate’s  accounts  with  the  proforma
disclosures set out by Lloyd's during the year as part of their effort to rationalise and standardise reporting
across the Lloyd’s market. These changes have been applied on a retrospective basis and have no impact
on    the  measurement  of  assets  or  liabilities,  reported  profit  or  the  combined  ratio.  Further  details  have
been included below. This has impacted certain comparative notes also.
Cash flow statement – presentation and classification
The managing agent has elected to change the presentation and classification of several lines within the
cash flow statement in order to align with the proforma disclosures set out by Lloyd’s. These changes can
be summarised as follows:
SYNDICATE 3622
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
YEAR ENDED 31 DECEMBER 2024
40
20 Changes in accounting policies - presentation continued
 Several lines are now combined under a single heading (Movement in other assets/liabilities)
where previously these were presented separately
 Purchases and sales of equities are now presented separately where historically these have been
combined.
 Foreign exchange amounts have been reclassified from investing to operating activities and
presented separately.
 Transfer from/to members in respect of underwriting operations has been disaggregated where
previously the total movement was presented under one line.
Statement of cash flows
Previously disclosed Adjustment Restated
31-Dec-23
$'000 $'000 $'000
Increase/decrease in debtors, prepayments and
accrued income
  4,857    95    4,952
Increase in net technical provisions   1,784    (1,784)    
Increase/(decrease) in gross technical provisions      3,154    3,154
(Increase)/decrease in reinsurers' share of gross
technical provisions
     (1,370)    (1,370)
Increase/decrease in deferred acquisition costs   79    (79)    
Increase/decrease in creditors, accruals and deferred
income
  (3,527)
  (72)    (3,599)
Movement in other assets/liabilities
     55    55
Foreign exchange      77    77
Net cash flows from operating activities   3,966    76    4,042
Net purchase of investments   140    (140)    
Purchase of equity and debt securities
  
  (8)    (8)
Sale of equity and debt securities
     72    72
Total impact on net cash flow from investing activities
     
Net cash flows from investment activities   483    (76)   407
Transfer to/from members in respect of underwriting
participations
  (1,394)    1,394    
Distribution of profit      (1,394)    (1,394)
Other
  
     
Net cash flows from financing activities   (1,394)      (1,394)
Total impact on net increase/decrease in cash
and cash equivalents
  3,055       3,055
Total impact on net increase/decrease in cash
and cash equivalents
  13,774       13,774
21 Foreign exchange rates
The  syndicate  used  the  following  exchange  rates  to  translate  foreign  currency  assets,  liabilities,  income
and
expenses into Pound Sterling, being the syndicate’s presentational currency:
2024 2023
Start of
period
End of
period
Average
Start of
period
End of
period
Average
US Dollars 1.26 1.27 1.28 1.23 1.26 1.24
Sterling 1.00 1.00 1.00 1.00 1.00 1.00
Canadian dollars 1.71 1.80 1.74 1.68 1.71 1.67
Euro 1.16 1.21 1.18 1.16 1.16 1.15
SYNDICATE 3622
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
YEAR ENDED 31 DECEMBER 2024
41
Beazley Furlonge Limited has been the managing agent of Syndicate 3622 throughout the period covered by
this report and the registered office is 22 Bishopsgate, London EC2N 4BQ.
Directors
R A Stuchbery*
A P Cox - Chief Executive Officer and Active Underwriter
G P Blunden* - (resigned 31/03/2024)
C C R Bannister* - (resigned 31/03/2024)
A J Reizenstein*
N Wall*
L Santori*
R S Anarfi
R J Clark* - (appointed 23/05/2024)
P J Bantick - (appointed 07/06/2024)
C C J Wong - (appointed 17/09/2024)
S M Lake - (resigned 30/06/2024)
R E Quane - (resigned 04/10/2024)
* Non-executive director
Company secretary
R Yeoman
  
Managing agent’s registered office
22 Bishopsgate
London
EC2N 4BQ
United Kingdom
Registered number
01893407
Auditor
Ernst & Young LLP
25 Churchill Place
London
E14 5EY
Banker
Deutsche Bank AG
Winchester House
London
1 Great Winchester Street
EC2N 2DB
SYNDICATE 3622
MANAGING AGENT'S CORPORATE INFORMATION
YEAR ENDED 31 DECEMBER 2024
42
42