Polo Managing Agency Limited

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Polo Managing Agency Limited

Lloyd’s Syndicate 1347 -

Wakam

Annual Report and Accounts for the year ended

31 December 2024

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Contents

Directors and Administration

..........................................................................................................

Managing agent’s report

................................................................................................................

Statement of Managing Agent’s Responsibilities

...........................................................................

Independent Auditor’s Report to the Member of

Syndicate 1347

................................................

Statement of profit or loss and other comprehensive income:

......................................................

Balance sheet

..............................................................................................................................

Statement of changes in members’ balances

..............................................................................

Statement of cash flows

..............................................................................................................

Notes to the financial statements

.................................................................................................

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Directors and Administration

Managing agent

Polo Managing Agency Limited ("the Managing Agent", "the Agency" or "PMA") is the Managing Agent of

Syndicate 1347.

PMA is a wholly owned subsidiary of Marco Capital Holdings (UK) Limited ("MCHL").

Directors

Directors who served at PMA during the year or up until the period the Report & Accounts were signed are as

follows:

P D Andrews - Chief Executive Officer

M J Bishop - Finance Director

I J Bremner - Chair, Non-Executive Director

K D Curtis - Non-Executive Director

J A Hummerston - Director of Underwriting (Resigned 19/02/2025)

P M Laws - Compliance Director (Resigned 26/4/2024)

C E Layton - Director of Underwriting (Appointed 03/01/2025)

S Minshall - Non-Executive Director

R M Richardson-Bunbury - Chief Actuary

M Sebold-Bender

–

Non-Executive Director

P R Smith - Managing Director

Z Szalkai - Non-Executive Director

P I Wooldridge - Chief Operations Officer

Company Secretary

P M Laws (Appointed 26/4/2024)

Managing agent’s registered office

'Grange Park'

Bishop's Cleeve

Cheltenham

Gloucestershire

United Kingdom

GL52 8YQ

Managing agent’s registered number

03935227

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Directors and Administration (continued)

Syndicate

Run-Off Manager

P D Close

Bankers

Barclays Bank - London

1 Churchill Place

London

E14 5HP

Independent Auditors

PKF Littlejohn LLP

–

statutory auditor

15 Westferry Circus

Canary Wharf

London

E14 4HD

Statement of actuarial opinion signing actuary

PKF Littlejohn LLP

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Managing agent’s report

The Directors of PMA, the Managing Agent, present their report for Syndicate 1347 ("the Syndicate") for the

year ended 31 December 2024.

Principal Activities

The principal activity of Syndicate 1347 was

the transaction of reinsurance business in the Lloyd’s market

. The

Syndicate is wholly aligned being supported by Wakam's corporate name - Nameco (No.1384) Limited.

Review of the business

The result for the Syndicate in calendar year 2024 is a loss of £0.2m (2023: profit of £0.3m).

The Syndicate underwrote quota share reinsurance for three Wakam portfolios - Mobility Europe, Mobility UK

& Ireland and Property UK & Europe. Risks are ceded net of Wakam Group’s

Excess of loss (

“

XOL

”

)

reinsurance, limiting the Syndicate's exposure to their retentions and ensuring low severity. The Syndicate

trades through the Lloyd’s worldwide licenses and rating. Lloyd’s has an A (Excellent) rating from A.M. Best,

AA-

(Very Strong) from Standard & Poor’s, and AA

- (Very strong) r

ating from Fitch Ratings. The Syndicate’s

functional currency is Pounds Sterling.

The Syndicate voluntarily ceased underwriting with effect from 31 December 2023, accordingly the Syndicate

is now in run-off and no longer considered a Going Concern.

Therefore, the financial statements have been

prepared on a basis other than Going Concern.

In June 2024 all technical balances were commuted back to the cedant with payment being made on the 27th

June 2024 to Wakam SA

(“Wakam”)

. As a result, no underwriting technical balances remain on the balance

sheet of Syndicate 1347 and the Syndicate has no future premium.

The Syndicate has presented its results under FRS102, the Financial Reporting Standard applicable in the UK

and Republic of Ireland. In accordance with FRS102, the Syndicate has identified its insurance contracts and

accounted for them in accordance with FRS103.

Review of underwriting activities for 2024

The table below summarises the premium volumes and performance of the Syndicate for 2024.

Key performance indicators

2024

2023

£m

Gross premiums written

0.7

21.8

Net premiums earned

0.7

21.8

(Loss)/profit for the year

(0.2)

0.3

Combined Ratio

98.5%

Combined ratio is a measure of the overall underwriting performance and is the ratio of technical charges to earned premiums net of

reinsurance for the year.

Principal risks and uncertainties

The Managing Agent sets the Syndicate's risk appetite annually, which is approved by the Agency Board as

part of the Syndicate’s business planning process. The PMA Risk Committee meets at least quarterly to oversee

the risk management framework which includes a review of the risk profile as reflected in the risk register, and

monitoring performance against risk appetite using a series of key risk indicators. The principal risk and

uncertainties facing the Syndicate are as follows:

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Managing agent’s report (continued)

Insurance risk

Insurance risk includes the risks that a policy will be written for too low a premium or provide inappropriate cover

(underwriting risk), that the frequency or severity of insured events will be higher than expected (claims risk), or

that estimates of claims subsequently prove to be insufficient (reserving risk). The Syndicate managed

insurance risk through the approved business plan, which sets out targets for volumes, pricing, line sizes and

retention by class of business and monitored performance against the business plan through the year.

Credit risk

The key aspect of credit risk is reinsurance counterparty risk which is the risk of default by one or more of the

Syndicate’s reinsurers and intermediaries. The syndicate has no reinsurance contracts as premium is ceded

net of inuring reinsurance. Therefore, the main source of credit risk for this syndicate is losses arising from

inwards premium debtors and bank counterparty risk.

Market risk

Market risk exposure impacting the Syndicate relates to fluctuations in interest rates or exchange rates. The

Syndicate is exposed to foreign exchange movements as a result of mismatches between the currencies in

which assets and liabilities are denominate

The Agency’s policy is to maintain received income or incurred

expenditure in the core currencies in which they were received or paid. The Managing Agent seeks to minimise

these mismatches via currency sales and purchases, except where specific acceptance is agreed at the

Syndicate Management Committee (“

SMC

”).

The Syndicate's functional currency is Pounds Sterling.

Liquidity risk

This is the risk that the Syndicate will not be able to meet its liabilities as they fall due, owing to a shortfall in

cash or can only meet obligations at excessive cost. To mitigate this risk the Syndicate reviews cash flow

projections regularly and ensures that, where needed, the Syndicate has liquidity facilities in place or has utilised

the option of a cash call from Capital providers. In December 2023 it was agreed that all further expenses from

Jan 2024, for the Syndicate will be paid by the Wakam Group.

Operational Risk

This is the risk that errors caused by people, processes, systems and external events lead to losses to the

Syndicate. The Managing Agent seeks to manage this risk through the use of an operational risk and control

framework, detailed procedures manual, thorough training programme and a structured programme of testing

of processes and systems by internal audit. Business continuity and disaster recovery plans are in place and

are regularly updated and tested.

Regulatory Risk

Regulatory risk is the risk of loss owing to a breach of regulatory requirements or failure to respond to regulatory

change. The Managing Agent is required to comply with the requirements of the Financial Conduct Authority

("FCA"), Prudential Regulation

Authority ("PRA") and Lloyd’s. Lloyd’s requirements include those imposed on

the Lloyd’s market by overseas regulators. PMA's Risk and Compliance functions manages and monitors

business activity and regulatory developments to assess any effects on the Syndicate and Managing Agent.

Future Developments

The syndicate voluntarily ceased underwriting with effect from 31 December 2023. In June 2024 all technical

balances were commuted with a payment being made on the 27

June 2024 to Wakam. As a result, no

underwriting technical balances remain on the balance sheet of s1347 as at 31 December 2024 and the

syndicate has no future premium. The syndicate is expected to reinsure to close at the end of 2025.

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Managing agent’s report (continued)

Following the commutation noted above, it was also agreed that all future expenses for the syndicate will be

paid, and not recharged, by the Wakam Group, to which the syndicate is wholly aligned via the Wakam

Corporate Member.

Capital

Lloyd's unique capital structure provides excellent financial security for policyholders:

•

All premiums received are initially held in trust

•

Funds at Lloyd's ("FAL") provide an additional layer of capital that can be called upon to pay liabilities.

The FAL requirement is set by Lloyd's for new syndicates, until their Internal Model is approved.

•

At the discretion of the Council of Lloyd's, the Central Fund provides a further source of funds to settle

claims. The Central Fund effectively mutualises risk across the market.

Syndicate 1347

does not have its own security rating; however, it does benefit from Lloyd’s global A (Excellent)

rating from A.M. Best, AA-

(Very Strong) rating from Standard and Poor’s, and AA

- (Very Strong) from Fitch

Staff matters

The Managing Agent considers its staff to be a key resource and seeks to provide a good working environment

for its staff that is rewarding and safe and complies with appropriate employee legislation. During the year there

have been no significant injuries to staff in the workplace nor any significant actions taken by any regulatory

bodies with regard to staff matters. Syndicate 1347 does not employ any staff.

Environmental matters

The Managing Agent does not believe this syndicate has a large adverse impact upon the environment

Underwriting has ceased and no investment portfolio is held. As a result, the agent does not manage this

syndicate by reference to any environmental key performance indicators.

Directors’ Interests

None of the Directors of the Managing Agent have any

participation in the Syndicate’s premium income capacity.

Directors who served at PMA during the year or up until the period the Report & Accounts were signed are

detailed in the 'Directors and Administration' section on page 3.

Directors and Officers

Details of the Directors and Officers of the Managing Agent that were serving at the year end and up to the date

of signing of the financial statements are provided on page 3. Changes to directors and officers from the last

report were as follows:

P M Laws - Compliance Director (Resigned 26/4/2024)

P M Laws

–

Company Secretary (Appointed 26/4/2024)

C E Layton - Director of Underwriting (Appointed 03/01/2025)

J A Hummerston - Director of Underwriting (Resigned 19/02/2025)

Syndicate Annual General Meeting

The Managing Agent does not propose to hold an annual general meeting for the member of the Syndicate.

The member is asked to note that any objections to this proposal should be submitted, in writing, to the Risk &

Compliance Director within 21 days of this notice.

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Disclosure of information to auditors

In the case of each of the persons who are directors of the Managing Agent at the time the report is approved:

•

So far as the director is aware, there is no relevant audit information, being information needed by the

Syndicate’s auditor in connection with the auditor’s report, of which the auditor is unaware; and

•

Having made enquiries of fellow directors of the agency and the Syndicate’s auditor, each director has

taken all the steps that he or she ought to have taken as a director to become aware of any relevant

audit information and to

establish that the Syndicate’s auditor is aware of that information.

Approved by order of the Board of Polo Managing Agency Limited and signed on its behalf:

M J Bishop

Finance Director

March 2025

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Statement of Managing Agent’s Responsibilities

The Managing Agent is responsible for preparing the Syndicate annual report and financial statements in

accordance with applicable law and regulations.

The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 (‘the 2008

Regulations’) require the Managing Agent to prepare syndicate annual accounts for each financial year. Under

that law the Managing Agent has elected to prepare the financial statements in accordance with United Kingdom

Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic

of Ireland” , FRS 103 “Insurance Contracts” (United Kingdom Generally Accepted Ac

counting Practice) and the

Lloyd’s Syndicate Accounts Instructions Version 2.0 as modified by the Frequently Asked Questions Version

1.1 issued by Lloyd’s.

The annual accounts are required by law to give a true and fair view of the state of affairs

of the Syndicate as at that date and of its profit or loss for that year.

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

select suitable accounting policies which are applied consistently, subject to changes arising on the

adoption of new accounting standards in the year;

make judgements and estimates that are reasonable and prudent;

state whether applicable accounting standards have been followed, subject to any material departures

disclosed and explained in the financial statements;

prepare the annual accounts on the basis that the Syndicate will continue to write future business and

administer claims, using the going concern basis of accounting, where appropriate; and

The preparation and review of the iXBRL tagging that has been applied to the Syndicate Financial

Statements

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, wheth

er due to error.

The Managing Agent is responsible for keeping proper accounting records which disclose with reasonable

accuracy at any time the financial position of the Syndicate and enable it to ensure that the Syndicate annual

accounts comply with the 2008 Regulations.

It is also responsible for safeguarding the assets of the Syndicate

and hence for taking reasonable steps for prevention and detection of fraud and other irregularities.

Legislation in the UK governing the preparation and dissemination of financial statements may differ from

legislation in other jurisdictions.

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Independent Auditor’s Report to the Member of

Syndicate 1347

Opinion

We have audited the Annual Financial Statements of Syndicate 1347 (the ‘Syndicate’) for the year ended 31

December 2024 which comprise the Statement of Profit or Loss and Other Comprehensive Income, the Balance

Sheet, the Statement of Changes in Members’ B

alances, the Statement of Cash Flows and Notes to the

Financial Statements, including significant accounting policies. The financial reporting framework that has been

applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102

The Financial Reporting Standard applicable in the UK and Republic of Ireland

and FRS 103

Insurance

Contracts

(United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

•

give a true and fair view of the state of the syndicate’s affairs as at 31 December 2024 and of its loss

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 requirements within Lloyd’s Syndicate

Accounts Instructions Version 2.0 as modified by the Frequently Asked Questions Version 1.1 issued

by Lloyd’s (the “Lloyd’s 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 Lloyd’s 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 financial statements section of our report. We are independent

of the Syndicate in accordance with the ethical requirements that are relevant to our audit of the financial

statements in the UK, including the FRC’s Ethical Standard, 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.

Other Matter

This report may be included within a document to which iXBRL

tagging has been applied. This auditors’ report

provides no assurance over whether the iXBRL tagging has been applied in accordance with the Lloyd’s

Syndicate Accounts Instructions.

Emphasis of matter

–

financial statements prepared on a basis other than going concern

We draw attention to Note 1 to the Syndicate Annual Financial Statements which explains that the Syndicate

has voluntarily ceased underwriting and therefore the Managing Agent does not consider it to be appropriate to

adopt the going concern basis of accounting in preparing the Syndicate Annual Financial Statements.

Accordingly, the Syndicate Annual Financial Statements have been prepared on a basis other than going

concern as described in Note 1.

Our opinion is not modified in this respect of this matter.

Other information

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

than the financial statements and our auditor’s report thereon.

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The managing agent is responsible for the other information contained within the Syndicate annual report. Our

opinion on the financial statements does not cover the other information and, except to the extent otherwise

explicitly stated in our 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 financial statements, 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 financial statements themselves.

If, based on the work we have performed, we conclude that there is a material misstatement of this other

information, we are required to report that fact.

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 for which the Syndicate

Annual Financial Statements are prepared is consistent with the Syndicate Annual Financial

Statements; and

•

the managing agent’s report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Syndicate and its environment obtained in the course of

the audit, we have not identified material misstatements in the managing agent’s report.

We have nothing to report in respect of the following matters in relation to which the Insurance Accounts

Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 requires us to report to you if, in our

opinion:

•

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

•

the Syndicate Annual Financial Statements are not in agreement with the accounting records and

returns; or

•

certain disclosures of managing agent emoluments and other benefits specified by law are not made;

•

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, the managing agent is responsible

for the preparation of the Syndicate Annual Financial Statements 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 Syndicate Annual Financial Statements that are free from material misstatement, whether due to

fraud or error.

In preparing the Syndicate Annual Financial Statements, the managing agent is responsible for assessing the

Syndicate’s ability to continue to write new business, disclosing, as applicable, matters related to its ability to

continue to operate and using the going concern basis of accounting, unless the managing agent 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 financial statements

Our objectives are to obtain reasonable assurance about whether the Syndicate Annual Financial Statements

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

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could reasonably be expected to influence the economic decisions of users taken on the basis of these

Syndicate Annual Financial Statements.

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

in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities,

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

detailed below:

•

We updated an understanding of the Syndicate and the insurance sector in which it operates to identify

laws and regulations that could reasonably be expected to have a direct effect on the Syndicate Annual

Financial Statements such as The Insurance Account

s Directive (Lloyd’s Syndicate and Aggregate

Accounts) Regulations 2008 and the Lloyd’s Syndicate Accounts Instructions. We updated our

understanding in this regard through discussions with management, industry research and the

application of our cumulative audit knowledge and experience of the insurance sector.

•

We determined the principal laws and regulations relevant to the Syndicate in this regard to be those

arising from the Financial Conduct Authority (FCA), the Prudential Regulation Authority (PRA

), Lloyd’s

of London and the Insurance Accounts Directive (Lloyd’s Syndicates and Aggregate Accounts)

Regulations 2008, and the financial reporting framework (UK GAAP).

•

We designed our audit procedures to ensure the audit team considered whether there were any

indications of non-compliance by the Syndicate with those laws and regulations. These procedures

included, but were not limited to:

agreement of the Syndicate Annual Financial Statements disclosures to underlying supporting

documentation;

enquiries of management and review of minutes of Board and management committee meetings

throughout the period;

understanding the Syndicate’s policies and procedures in monitoring compliance with laws and

regulations;

inspection of correspondence with Lloyd’s, the PRA and FCA; and

reviewing internal audit reports relating to the Syndicate.

•

We also identified possible risks of material misstatement of the Annual Financial Statements due to

fraud; in particular:

We considered that there is a rebuttable presumption that there is a significant fraud risk over revenue

recognition. We did not consider fraud over the accuracy of revenue to be a significant risk for

transactions that have been processed during the period as there is no area of judgement or subjectivity

with respect to revenue.

As in all of our audits, we addressed the risk of fraud arising from management override of controls by

performing audit procedures which included, but were not limited to, the testing of journals and

reviewing accounting estimates for evidence of bias and evaluating the business rationale of any

significant transactions that are unusual or outside the normal course of business.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including

those leading to a material misstatement in the Syndicate Annual Financial Statements or non-compliance with

laws and regulations. This risk increases the more that compliance with a law or regulation is removed from the

events and transactions reflected in the Syndicate Annual Financial Statements, as we will be less likely to

become aware of instances of non-compliance. This risk is also greater regarding irregularities occurring due

to fraud rather than error, as fraud involves intentional concealment, forgery, conclusion, omission or

misrepresentation.

A further description of our responsibilities for the audit of the Syndicate Annual Financial Statements is located

on the Financial Reporting Council’s website at:

www.frc.org.uk/auditorsresponsibilities

. This description forms

part of our auditor’s report.

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Use of our report

This report is made solely to the Syndicate’s members, as a body, in accordance with Part 2 of 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.

Cheryl Mason

15 Westferry Circus

For and on behalf of PKF Littlejohn LLP

Canary Wharf

Statutory Auditor

London

E14 4HD

March 2025

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Statement of profit or loss and other comprehensive income:

Technical account – General business

For the year ended 31 December 2024

Note

2024

£000

2023

£000

Gross premiums written

711

21,798

Premiums written, net of reinsurance

711

21,798

Earned premiums, net of reinsurance

711

21,798

Allocated investment return transferred from the non

‑

technical

account

Claims paid

Gross amount

(12,977)

(4,438)

Net claims paid

(12,977)

(4,438)

Change in the provision for claims

Gross amount

12,263

(12,423)

Net change in provisions for claims

12,263

(12,423)

Claims incurred, net of reinsurance

(714)

(16,861)

Net operating expenses

(185)

(4,605)

Other technical charges, net of reinsurance

Balance on the technical account – general business

(169)

337

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Non-technical account – General business

For the year ended 31 December 2024

Note

2024

2023

£000

Balance on the technical account – general business

(169)

337

Investment income

Total investment return

Allocated investment return transferred to the general business

technical account

(19)

(5)

Loss on foreign exchange

(40)

(7)

(Loss) / profit for the financial year

(209)

330

Total comprehensive (loss) / income for the year

(209)

330

The accompanying notes from pages 18 to 29 form an integral part of these financial statements.

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Balance sheet

As at 31 December 2024

Note

2024

2023

£000

Assets

Debtors arising out of reinsurance operations

10,423

Other debtors

Debtors

10,423

Cash at bank and in hand

2,664

Other Assets

2,664

Total assets

121

13,087

Liabilities

Members’ balances

121

330

Total Capital and reserves

121

330

Claims outstanding

12,423

Technical provisions

12,423

Accruals and deferred income

334

Total liabilities

12,757

Total liabilities, Capital and reserves

121

13,087

The Syndicate financial statements on pages 14 to 29 were approved by the board of Polo Managing Agency

Limited on 5

March 2025 and were signed on its behalf by;

M J Bishop

Finance Director

March 2025

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Statement of changes in members’ balances

For the year ended 31 December 2024

2024

2023

£000

Members’ balances brought forward at 1 January

330

Total recognised (losses)/gains for the year

(209)

330

Members’ balances carried forward at 31 December

121

330

Statement of cash flows

For the year ended 31 December 2024

Note

2024

2023

£000

Cash flows from operating activities

Total comprehensive (loss) / income

(209)

330

Adjustments:

(Decrease)/increase in gross technical provisions

(12,423)

12,423

(Increase)/decrease in debtors

10,398

(10,423)

Investment return

(19)

(5)

Other

(334)

334

Net cash flows from operating activities

(2,587)

2,659

Cash flows from investing activities

Investment income received

Net cash flows from investing activities

Net cash flows from financing activities

Net (decrease)/increase in cash and cash equivalents

(2,568)

2,664

Cash and cash equivalents at the beginning of the year

2,664

Cash and cash equivalents at the end of the year

2,664

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Notes to the financial statements

1. Basis of preparation

The Syndicate comprises of a member of the Society of Lloyd's that underwrites insurance business in the

London Market. The address of the Syndicate’s managing agent is shown in the Directors and Administration

section on page 3.

The financial statements have been prepared in accordance with the Insurance Accounts Directive (Lloyd’s

Syndicate and Aggregate Accounts) Regulations 2008 and applicable Accounting Standards in the United

Kingdom and the Republic of Ireland, including Financial Reporting Standard 102 (FRS 102). FRS 102 requires

the application of Financial Reporting Standard 103 (FRS 103) in relation to insurance contracts. Additionally,

he Lloyd’s Syndicate Accounts Instructions Version 2.0 as modified by the Frequently Asked Questions Version

1.1 issued by Lloyd’s

has been used as a guide in preparing these financial statements.

The financial statements have been prepared on the historical cost basis. The future cost of concluding the

Syndicate’s business

was assessed with reference to the requirement for a run off provision. A run off provision

was not deemed necessary as all costs are being borne by Big Wakam.

The financial statements are presented in pounds sterling (

“

GBP

”

)

, which is also the Syndicate’s functional

currency.

All amounts have been rounded to the nearest thousand, unless otherwise indicated.

Going concern

The Syndicate voluntarily ceased underwriting with effect from 31 December 2023 and all technical balances

were commuted on the 27

June 2024 with Wakam. As a result, no underwriting technical balances remain on

the balance sheet and the Syndicate has no future premium. These financial statements are prepared under

the historical cost convention as modified by the recognition of certain financial assets and liabilities measured

at fair value. The Syndicate will continue to operate in the normal course of a Lloyd's syndicate meeting its

solvency requirements and continuing to run through to 36 months with an expected RITC of the 2023 year of

account. The Syndicate is no longer considered to be a Going Concern, and the financial statements have been

prepared on a basis other than going concern. A commitment has been received from Big Wakam (a Wakam

Group Company) to absorb future operating expenses of the Syndicate. No further adjustments are necessary

to the amounts at which the net assets are included in these financial statements. FRS 102 and 103 have been

consistently applied. There have been no material changes in accounting policies or values necessary to

address the non-going concern status of the Syndicate.

The directors have a reasonable expectation that the Syndicate has adequate resources, including the funds at

Lloyd’s of the member supporting the Syndicate, to continue in operational existence for the foreseeable future

through an orderly run off to Reinsurance to Close ("RITC").

Use of judgements and estimates

Of the various accounting judgements, assumptions and estimates made in the preparation of these financial

statements those relating to the determination of the technical provisions are considered to be those most critical

to understanding the Syndicate’s

results and financial position.

The Syndicate makes estimates and assumptions concerning the future. The resulting accounting estimates

will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant

risk of causing a material adjustment to the carrying amounts of assets and liabilities both within the next

financial year and further into the future are addressed on the following page.

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Technical Provisions

The accounting policy for technical provisions is described on page 19 and 20 and the related risks are

described within the Risk Management section. The net technical provisions after allowance for the benefit of

the reinsured entity's underlying reinsurance is £nil (2023: £12.4m).

The most uncertain element within the technical provisions is the amount for gross claims outstanding, which

covers amounts where either the claim has been notified to the Syndicate, or where there has not yet been a

notification, or although notified there has been insufficient information to date to be certain regarding its ultimate

costs. This amounted to £nil (2023: £12.4m). As described in the Risk Management section there is a thorough

review process of claims notifications and reserving estimates, including detailed actuarial evaluation of past

claims development. There is however a risk that past performance may not be a good indicator of the future

developments.

3. Significant accounting policies

The following significant accounting policies have been applied consistently in dealing with items which are

considered material in relation to the Syndicate’s financial statements.

A. Premiums written

Gross written premiums are stated gross of brokerage payable and exclude taxes and duties levied on them.

Premiums written comprise adjustments to premiums on contracts incepted in 2023, no new business was

written in 2024.

B. Unearned premiums

Written premium is earned according to the risk profile of the policy. Unearned premiums represent the

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

sheet date, calculated on the basis of established earnings patterns or time apportionment as appropriate. All

of the Syndicates premium is fully earned and therefore no provision for unearned premiums has been made

at the balance sheet date.

C. Acquisition costs

Acquisition costs which represent commission and other related expenses are deferred over the period in which

the related premiums are earned, unless cedants explicitly report the Syndicate's share of deferred acquisition

costs in respect of the underlying policies.

D. Technical provisions

–

claims incurred

Gross claims incurred comprise claims and settlement expenses (both internal and external) occurring during

the year and the movement in provision for outstanding claims and settlement expenses brought forward.

Allowance is made for the cost of claims incurred by the balance sheet date but not reported until after the year-

end.

The provision for claims comprises amounts set aside for claims notified and claims incurred, but not yet

reported ("IBNR").

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

These techniques generally involve projecting from past experience of the development of claims over time to

form a view of the likely ultimate claims to be experienced for more recent underwriting, having regard to

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

includes amounts in respect of internal and external claims handling costs. For the most recent years, where a

high degree of volatility arises from projections, estimates may be based in part on output from rating and other

models of the business accepted and assessments of underwriting conditions. An element of IBNR also relates

to specific large losses, such as catastrophe events.

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The Directors consider that the provisions for gross claims are fairly stated on the basis of the information

currently available to them. Following the commutation, the Directors expect claims to remain at nil with no

further claims being reported.

Claim estimates include both direct claim handling expenses attributable to individual claims, such as legal

costs, and indirect expenses, such as salaries of claims handling staff.

E. Unexpired risks provision

A provision for unexpired risks is made where claims, related expenses and deferred acquisition costs, likely to

arise after the end of the financial period in respect of contracts concluded before that date, are expected to

exceed the unearned premiums and premiums receivable under these contracts, after the deduction of any

acquisition costs deferred. All of the Syndicate premium is written and fully earned, therefore no unexpired risk

provision has been made.

F. Foreign currencies

Transactions in foreign currencies are translated to the functional currency using the average exchange rate for

the year.

The Syndicate’s monetary assets and liabilities denominated in foreign currencies are translated into

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

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

the exchange rate at the date that the fair value was determined. Non-monetary items denominated in foreign

currencies that are measured at historical cost are translated to the functional currency using the exchange rate

at the date of the transaction. For the purposes of foreign currency translation, unearned premiums and deferred

acquisition costs are treated as if they are monetary items.

Differences arising on translation of foreign currency amounts relating to the insurance operations of the

Syndicate are included in the non-technical account.

G. Financial assets and liabilities

The full provisions of FRS 102 have been applied to the treatment of financial instruments. The accounting

classification of financial assets and liabilities determines their basis of measurement and how changes in those

values are presented in the profit or loss or other comprehensive income. These classifications are made at

initial recognition, and subsequent reclassification is only permitted in restricted circumstances.

Classification

The accounting classification of financial assets and liabilities determines the way in which they are measured

and changes in those values are presented in the statement of profit or loss and other comprehensive income.

Financial assets and liabilities are classified on their initial recognition.

The initial classification of a financial instrument shall take into account contractual terms including those relating

to future variations. Once the classification of a financial instrument is determined at initial recognition,

re-assessment is only required subsequently when there has been a modification of contractual terms that is

relevant to an assessment of the classification.

Financial assets and financial liabilities at fair value through profit and loss comprise financial assets and

financial liabilities held for trading and those designated as such on initial recognition.

Recognition

Financial instruments are recognised when the Syndicate becomes a party to the contractual provisions of the

instrument. Financial assets are derecognised if the Syndicate’s contractual rights to the cash flows from the

financial assets expire or if the Syndicate transfers the financial asset to another party without retaining control

of substantially all risks and rewards of the asset. A financial liability is derecognised when its contractual

obligations are discharged, cancelled or expired.

Regular purchases and sales of financial assets are recognised and derecognised, as applicable, on the trade

date, i.e., the date that the Syndicate commits itself to purchase or sell the asset.

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Measurement

All financial assets and liabilities are initially measured at transaction price (including transaction costs), except

for those financial assets classified as at fair value through profit or loss, which are initially measured at fair

value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes

a financing transaction. If an arrangement constitutes a finance transaction, the financial asset or liability is

measured at the present value of the future payments discounted at a market rate of interest for a similar debt

instrument.

Subsequently, financial assets at fair value through profit or loss are measured at fair value with fair value

changes recognised immediately in profit or loss.

Identification and measurement of impairment

At each balance sheet date, the Syndicate assesses whether there is objective evidence of impairment of any

financial assets that are measured at amortised cost. If there is objective evidence of impairment, an impairment

loss is recognised in profit or loss immediately.

Objective evidence that a financial asset or group of assets is impaired includes:

• significant financial difficulty of the issuer or obligor;

• a breach of contract, such as a default or delinquency in interest or principal payments;

• the Syndicate, for economic or legal reasons relating to the debtor’s financial difficulty, granting to the debtor

a concession that would not otherwise be considered;

• it has become probable that the debtor will enter bankruptcy or other financial reorganisation; and

• observable data indicating that there has been a measurable decrease in the estimated future cash flows

from a group of financial assets since the initial recognition of those assets, even though the decrease cannot

yet be identified with the individual financial assets in the group, such as adverse national or local economic

conditions or adverse changesin industry conditions.

Off-setting

Debtors/creditors arising from reinsurance operations shown in the balance sheet include the totals of all

outstanding debit and credit transactions as processed by the Lloyd’s central facility. No account has been taken

of any offsets which may be applicable in calculating the net amounts due between the Syndicate and each of

its counterparty insureds, reinsurers or intermediaries as appropriate.

Financial assets and financial liabilities are offset, and the net amount presented in the balance sheet when,

and only when, the Syndicate currently has a legal right to set off the amounts and intends either to settle on a

net basis or to realise the asset and settle the liability simultaneously.

H. Investment return

Investment return comprises bank interest received.

Cash and cash equivalents

Cash and cash equivalents comprise cash balances and call deposits with maturities of three months or less

from the acquisition date that are subject to an insignificant risk of changes in fair value and are used by the

Syndicate in the management of its short-term commitments.

Cash and cash equivalents are carried at amortised cost in the statement of financial position.

J. 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 25%) 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.

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

investment earnings. Any payments on account made by the Syndicate during the year have been included in

the balance sheet under the heading ‘other debtors’.

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

K. Pension costs

No pension costs are directly borne by the Syndicate.

L. Profit commission

Profit commission is not charged by the Managing Agent.

M. Operating expenses

Where expenses are incurred by the Managing Agent for the administration of the Syndicate, these expenses

are apportioned appropriately based on type of expense and allocated to the year of account for which they are

incurred.

N. Debtors and creditors

Other debtors principally consist of amounts due from Big Wakam

and a refund from Lloyd’s

. Both are carried

at amortised cost less any impairment losses.

Classification of insurance and reinsurance contracts

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

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

P. Commutation Policy

The accounting policy for commutations within the syndicate is the elimination of the existing premium

receivable and claims incurred due from and to Big Wakam respectively. The commutation resulted in a

payment of £2.2m to Big Wakam.

No gain or loss was made on the commutation as the fair value of the claims incurred was equal to the premium

receivable.

Risk and capital management

Introduction and overview

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

Syndicate is exposed, the Managing Agent’s objectives, policies and processes for measuring and managing

insurance and financial risks, and for managing the Syndicate’s capital.

Risk management framework

The Syndicate’s activities expose it to a variety of financial and non

-financial risks. In order to achieve its

business plan and objectives, the Syndicate recognises that it is necessary to take risk and expects to be

rewarded for doing so. The Syndicate is also exposed to several unrewarded risks as a function of its operating

model, such as operational risk. The Managing Agent is responsible for understanding and managing the

Syndicate’s exposure to such risks and does this through the deployment of its

enterprise risk management

(“ERM”) framework.

The Board of Directors of the Managing Agent has overall responsibility for the establishment and oversight of

the Syndicate’s risk management framework.

The Board has established a Risk Committee to oversee the

operation of the Syndicate’s risk management framework and to review and monitor the management of the

risks to which the Syndicate is exposed. The Managing Agent's risk management framework includes processes

such as the annual review and approval of Syndicate risk appetites for the Syndicate as a part of the Syndicate's

Own Risk and Solvency Assessment ("ORSA") and capital setting process, risk and control assessment, regular

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risk appetite monitoring, risk incident root cause analysis, emerging risk horizon scanning and risk management

reporting.

Critical to the risk management of the Syndicate is ensuring sufficient capital is in place to meet the solvency

needs of the Syndicate.

A. Insurance risk

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

expectations of the Syndicate at the time of underwriting. The very nature of the Syndicate’s business exposes

it to the likelihood that claims will arise from business written. Insurance risk is the principal risk the Syndicate

faces and arises from the inherent uncertainties in the occurrence, amount and timing of insurance liabilities.

No insurance risk remains in the syndicate.

B. Financial risk

The focus of financial risk management for the Syndicate is ensuring that the proceeds from its financial assets

are sufficient to fund the obligations arising from its insurance contracts.

a. Credit risk

The key aspect of credit risk is reinsurance counterparty risk which is the risk of default by one or more of the

Syndicate’s reinsurers and intermediaries. The Syndicate has no reinsurance contracts as premium is ceded

net of inuring reinsurance. Therefore, the main source of credit risk for this syndicate is losses arising from

inwards premium debtors and bank counterparty risk.

Management of credit risk

The Syndicate limits the amount of cash and cash equivalents that can be deposited with a single counterparty.

ii.

Exposure to credit risk

The following table shows

credit risk exposure of the Syndicate’s financial assets as at the balance sheet date.

As at 31 December 2024

AAA

BBB

Other

Not rated

Total

£000

Debtors arising out of reinsurance operations

Cash at bank and in hand

Total

As at 31 December 2023

AAA

BBB

Other

Not rated

Total

£000

Debtors arising out of reinsurance operations

10,423

Cash at bank and in hand

2,664

Total

2,664

10,423

13,087

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Financial assets that are past due or impaired

The Syndicate has no debtors arising from direct reinsurance operations that are impaired at the reporting date.

b. Liquidity risk

Liquidity risk is the risk of failure to ensure that sufficient financial resources are available at all times to meet

payment obligations, with financing only being possible at an additional cost.

The nature of the Syndicate’s exposures to liquidity risk and its objectives, policies and processes for managing

liquidity risk have not changed significantly from the prior year.

Management of liquidity risk

To mitigate liquidity risk, the agency monitors cash flow projections and maintains cash levels consistent with

the needs of the Syndicate, providing commentary into the SMC.

Maturity analysis of syndicate liabilities

The Syndicate’s insurance contracts were commuted

on the 27

June 2024 hence there are no insurance

liabilities for 2024. For insurance and reinsurance contracts, the contractual maturity is the estimated date when

the gross undiscounted contractually required cash flows will occur.

Undiscounted net cash flows

Year 2024

No maturity

stated

0-1 yrs

‑

3 yrs

‑

5 yrs

>5 yrs

Total

£000

Claims outstanding

Total

Undiscounted net cash flows

Year 2023

No maturity

stated

0-1 yrs

‑

3 yrs

‑

5 yrs

>5 yrs

Total

£000

Claims outstanding

6,642

5,781

12,423

Total

6,642

5,781

12,423

c. Market risk

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

fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk,

currency risk and other price risk.

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

parameters, while optimising the return on risk. The nature of the Syndicate exposures to market risk and its

objectives, policies and processes for managing market risk have not changed significantly from the prior year.

The syndicate is not exposed to market risk as it does not hold any invested assets.

Management of market risks

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

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

of major risk and the exposure of the Syndicate at the reporting date to each major risk are addressed below.

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ii.

Interest rate risk

The Syndicate’s main exposure to fluctuation in interest rates would be its effect on the valuation of funds

invested in bonds and equities. The Syndicate does not hold any financial investments, hence there is no

exposure to interest rate risk to the Syndicate.

Currency risk

The Syndicate writes business primarily in Sterling, and Euro, and is therefore exposed to currency risk arising

from fluctuations in these exchange rates.

The table below summarises the carrying value of the Syndicate’s assets and liabilities, at the reporting date:

Year 2024

GBP

Euro

Total

£000

Debtors

Other assets

Total assets

121

Technical provisions

Accruals and deferred income

Total liabilities

Total Capital and reserves

121

Year 2023

GBP

Euro

Total

£000

Debtors

5,416

5,007

10,423

Other assets

395

2,269

2,664

Total assets

5,811

7,276

13,087

Technical provisions

(6,139)

(6,284)

(12,423)

Accruals and deferred income

(334)

Total liabilities

(6,473)

(6,284)

(12,757)

Total Capital and reserves

(662)

992

330

C. Capital management

Capital framework at Lloyd’s

The Society of Lloyd’s (Lloyd’s) is a regulated undertaking and subject to the supervision of the PRA under the

Financial Services and Markets Act 2000 and in accordance with Solvency II requirements.

Within this supervisory framework, Lloyd’s applies capital requirements at member level and centrally to ensure

that Lloyd’s

would comply with the Solvency II requirements, and beyond that to meet its own financial strength,

licence and ratings objectives.

Although, as described below, Lloyd’s capital setting processes use a capital requirement set at syndicate level

as a starting point, the requirement to meet Solvency II and Lloyd’s capital requirements apply at overall and

member level only respectively, not at syndicate level. Accordingly, the capital requirement in respect of

Syndicate 1347 is not disclosed in these financial statements.

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ii.

Lloyd’s capital setting process

In order to meet Lloyd’s requirements, each

syndicate is required to calculate its Solvency Capital Requirement

(SCR) for the prospective underwriting year. This amount must be sufficient to cover a 1 in 200-year loss,

reflecting uncertainty in the ultimate run-

off of underwriting liabilities (SCR ‘to ultimate’). The Syndicate must

also calculate its SCR at the same confidence level but reflecting uncertainty over a one-year time horizon (one

year SCR) for Lloyd’s to use in meeting Solvency II requirements.

The SCRs of each syndicate are subject to

review by Lloyd’s and approval by the Lloyd’s Capital and Planning Group.

A syndicate may be comprised of one or more underwriting members of Lloyd’s. Each member is liable for its

own share of underwriting liabilities on the Syndicates on which it is participating but not other members’ shares.

Accordingly, the capital requirem

ents that Lloyd’s sets for each member operates on a similar basis.

Each member’s SCR shall thus be determined by the sum of the member’s share of the Syndicate SCR ‘to

ultimate’. Where a member participates on more than one syndicate, a credit for diversification is provided to

reflect the spread of risk, but consistent with determining an SCR which reflects the capital requirement to cover

a 1 in 200 loss ‘to ultimate’ for that member. Over and above this, Lloyd’s applies a capital uplift to the member’s

capital requirement, known as the Economic Capital Assessment (ECA). The purpose of this uplift, which is a

Lloyd’s not a Solvency II requirement, is to meet Lloyd’s financial strength, licence and ratings objectives. The

capital uplift applied for 2024 was 35% (2023: 35%

) of the member’s SCR ‘to ultimate’.

Provision of capital by members

Each member may provide capital to meet its ECA either by assets held in trust by Lloyd’s specifically for that

member (FAL), assets held and

managed within a syndicate (FIS), or as the member’s share of the members’

balances on each syndicate on which it participates.

Accordingly, all of the assets less liabilities of the Syndicate, as represented in the members’ balances reported

on the balance sheet on page 16

, represent resources available to meet members’ and Lloyd’s capital

requirements.

Analysis of underwriting result

All premiums were concluded in the United Kingdom.

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

Year 2024

Gross

premiums

written

Gross

premiums

earned

Gross

claims

incurred

Gross

operating

expenses

Reinsurance

balance

Underwriting

result

£000

Reinsurance acceptances

711

(714)

(185)

(188)

Total

711

(714)

(185)

(188)

Year 2023

Gross

premiums

written

Gross

premiums

earned

Gross

claims

incurred

Gross

operating

expenses

Reinsurance

balance

Underwriting

result

£000

Reinsurance acceptances

21,798

(16,861)

(4,605)

332

Total

21,798

(16,861)

(4,605)

332

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6. Net operating expenses

2024

2023

£000

Acquisition costs

185

3,219

Administrative expenses

482

Members’ standard personal expenses

904

Net operating expenses

185

4,605

Administrative expenses include:

2024

2023

£000

Auditors’ remuneration:

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

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

pursuant to legislation

A commitment was received from the Big Wakam to absorb future operating expenses of the Syndicate. As a

result the syndicate has not borne any administration expenses in the calendar year.

Key management personnel compensation

No emoluments of the directors of PMA or active underwriter were directly charged to the Syndicate, and

consequently no meaningful disclosure can be made.

No staff of PMA were directly charged to the Syndicate, and no other compensation was payable to key

management personnel.

Staff numbers and costs

All staff are employed by the managing agent, the Syndicate has no employees.

9. Investment return

Investment return comprises bank interest received.

2024

2023

£000

Interest income

Total investment return

Transferred to the technical account from the non

‑

technical account

An investment return of £19k was wholly allocated to the technical account.

10. Debtors arising out of reinsurance operations

2024

2023

£000

Due within one year

10,423

Total

10,423

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11. Other debtors

2024

2023

£000

Other related party balances

Other

Total

Other debtors consist of expenses to be reimbursed by Big Wakam (£12k) and a refund of overcharged Market

Charges from Lloyd’s (13k).

12. Technical provisions

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

period to the end of the period.

2024

2023

Gross

provisions

£000

Net

£000

Gross

provisions

£000

Net

£000

Claims Outstanding

Balance at 1 January

12,423

Claims paid during the year

(12,977)

(4,438)

Expected cost of current year claims

714

16,861

Foreign exchange movements

(160)

Balance at 31 December

12,423

13. Cash and cash equivalents

2024

2023

£000

Cash at bank and in hand

2,664

Total cash and cash equivalents

2,664

14. Related parties

Big Wakam was the sole source of business written in the Syndicate, accordingly all premiums, commissions,

claims, insurance debtors and technical provisions relate to amounts payable and receivable from Big Wakam.

Big Wakam is also the owner of the wholly aligned corporate member (Wakam Corporate Member Limited).

15. Off-balance sheet items

The Syndicate has not been party to an arrangement, which is not reflected in its balance sheet, where material

risks and benefits arise for the Syndicate.

16. Post balance sheet events

There are no post balance sheet events.

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17. Foreign exchange rates

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

2024

2023

Start of

the year

rate

Yearend

rate

Average

rate

Start of

the year

rate

Yearend

rate

Average

rate

Sterling

1.00

Euro

1.15

1.21

1.18

1.13

1.15

18.

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 Prude

ntial 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 m

eet liquidity requirements or to settle losses.

19. Controlling Party of the Managing Agent

The Managing Agent’s immediate parent undertaking is Marco Capital Holdings (UK) Limited, a company

incorporated in England and Wales. Registered address 24 Monument Street, 4th Floor, London, United

Kingdom, EC3R 8AJ.

The Managing Agent’s ultimate parent undertaking is Marco Capital Holdings Limited, a company incorporated

in Malta, whose registered address is 171 Old Bakery Street, Valletta, VLT1455, Malta.

20. Disclosure of Interest

PMA provided services and support to the Syndicate in its capacity as Managing Agent. In the year, Managing

Agency Fees of £0.4m (2023: £0.8m) were charged to Big Wakam, in addition to £1.2k in respect of additional

service charges. At the yearend £nil (2023: £0.3m) was owed to PMA by the Syndicate and Big Wakam.

Managing Agent’s interest:

During 2024 PMA was the Managing Agent for five syndicates. Syndicates 1347, 1975, 1996 and 1254 and on

9 August 2024, PMA took on the management of Syndicate 1110.

The Financial Statements of the Managing Agency can be obtained by application to the Registered Office (see

page 3).

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