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Syndicate 1609
Annual Report and Accounts for the year ended
31 December 2024
Contents
Directors and administration.................................................................................................. 1
.................................................................................................... 2
Managing Agent's report ....................................................................................................... 5
Statement of Managing Agent's responsibilities .................................................................. 12
........................................ 13
Statement of profit or loss and other comprehensive income .............................................. 17
Statement of Financial Position ........................................................................................... 19
Statement of changes in Members' balances ...................................................................... 21
Statement of cash flows ...................................................................................................... 22
1.  Basis of preparation ..................................................................................................... 23
2.  Critical accounting estimates and judgements ............................................................. 23
3.  Significant accounting policies ..................................................................................... 25
4.  Analysis of underwriting result...................................................................................... 31
5.  Technical provisions .................................................................................................... 34
6.  Net operating expenses ............................................................................................... 35
7.   ................................................................................................. 35
8.  Key management personnel compensation ................................................................. 36
9.  Staff numbers and costs .............................................................................................. 36
10.  Investment return ..................................................................................................... 36
11.  Financial Investments ............................................................................................... 37
12.  Debtors arising out of direct insurance operations .................................................... 40
13.  Debtors arising out of reinsurance operations .......................................................... 40
14.  Other debtors ........................................................................................................... 41
15.  Creditors arising out of direct insurance operations .................................................. 41
16.  Creditors arising out of reinsurance operations ......................................................... 41
17.  Other creditors .......................................................................................................... 41
18.  Cash and cash equivalents....................................................................................... 42
19.  Related parties ......................................................................................................... 43
20.  Disclosure of interests .............................................................................................. 43
21.  Funds at Lloyd's ....................................................................................................... 44
22.  Off-balance sheet items ............................................................................................ 44
23.  Risk management .................................................................................................... 45
24.  Post balance sheet events........................................................................................ 59
   
1
Directors and administration
Managing Agent
Asta Managing Agency Ltd   
Directors
P A Jardine (Chairman)*
R P Barke
C V Barley
S Bradbury
E M Catchpole*
S Fisher*
L Harfitt
D B Jones
L J M McMaster
A F J Neden*
S D Redmond*
K Shah*
Non-Executive Directors*
Managing Agent's registered office
5th Floor
20 Gracechurch Street
London
EC3V 0BG
Managing Agent's registered number
1918744
Active Underwriter
A Jay
Bankers and investment managers
Barclays
Citibank
RBC Dexia
Registered Auditor
PricewaterhouseCoopers LLP
Signing Actuary  
PricewaterhouseCoopers LLP
   
2
Active Underwriter  report
2024: a growth year
The past year proved a successful period of underwriting for Mosaic Syndicate 1609 and a
powerful testament to the clear longer-term vision and goals for the company. In 2024, just our
fourth  year  of  business,  we  demonstrated  continued  global  growth,  a  strategic  scaleup  of
talent,  and  expansion  of  our  proprietary  product  suite  through  thoughtful  innovation  and 
partnerships.  That  combination  has  achieved  considerable  progress  towards  our  core
agency.
Mosaic  distinguishes  itself  by  selecting  complex  specialty  lines  of  business  with  global
relevance, differentiating through superior risk selection with a narrow but deep focus. Indeed,
Mosaic has consciously set itself apart and is well-
market.
Structurally, Syndicate 1609 is at the heart of our agency model and capital stack, bringing
effectively
syndicating capacity into local markets. We deploy capacity from two distinct capital pools: our
own syndicate, 1609, and a capital stack from third parties comprising close to 30 top-rated
delegated to Mosaic-owned entities, provide localized international distribution and empower
our underwriters to access business closer to the client. This distinctive model enables us to
originate business for our third-party capital clients outside the traditional London wholesale
market and at advantageous acquisition costs.
Our organization now has a network of eight offices in seven countries underwriting seven
lines  of  specialty  business.  Combining  with  Syndicate  1609,  our  regulated  service
companies in  the  US,  UK,  Canada,  Bermuda,  Europe,  UAE,  and  Asia can  distribute
meaningful capacity to meet worldwide risks. Our human resources are ready for the future,
-thirds within underwriting
and claims functions, with London and New York the two largest hubs for both. Talent and
track records have been key determinants for the company; Mosaic has hired underwriters
takes a discerning approach to risk selection, a characteristic that also serves to set us apart
in non-commoditized fields. Notably, every employee holds equity in the company, building an
invested, ownership culture.
Mosaic  intentionally  selects non-natural catastrophe-exposed specialty classes  of business
that fulfil key criteria. These guiding principles include strong underlying growth in the class;
demonstrative sustainability across market cycles; and high barriers to entry. Our select seven
lines transactional  liability,  cyber,  environmental  liability,  professional  liability,  political
violence, financial institutions, and political risk, in order of respective GWP are each highly
relevant to current global themes of volatility, uncertainty, and change on the geopolitical and
economic landscapes.
brokers, with insureds, and with syndicated capital clients, and partnership will continue to fuel
our future.
3
Our first year of trading, 2021, was closed through the RITC process at the end of 2023, on a
year-of-account basis. The ultimate gross loss ratio is 36.2% with a very low incurred gross
loss ratio of 10.9% (as at Q4 2024).
2022 has a net combined ratio of 99.6% delivering USD$0.6M of underwriting profit before
investment return on a year of account basis. The 2023 year of account has a net combined
ratio  of  92.2%,  delivering  an  underwriting  profit  of  USD$16.3M.  This  result  is  driven  by
supportive trading conditions and a benign claims environment producing a better than plan,
ultimate net loss ratio of 50.3%.
A year of profitable growth
The 2024 GAAP result produced an excellent 79.4% net combined ratio, driven by recognising
a benign claims environment on prior years and out-performance of loss ratios. The Year of
Account  result  also  looks  strong,  delivering  a  net  combined ratio  of  87.4%.  The  syndicate
experienced 21.8% growth in GWP
US environmental liability team. During 2024, investment was made in augmenting the existing
team with an additional 12 underwriting and claims specialists. This provides a springboard
into 2025, where further growth is anticipated, and it is expected environmental liability will
-largest line of business.
Syndicate  1609  benefitted  from  supportive  trading  conditions  through  2024,  resulting  is
profitable growth. There was increased competition in some segments, but pricing adequacy
remained strong and was combined with a focus on retaining underwriting discipline in risk
selection and  product  deployment. Outwards  reinsurance  treaty  renewals  were  in line  with
expectation,  or  better.  The  introduction  of  whole  account  quota  share  reinsurance  added 
further  protection  for  Syndicate  1609,  optimizing  capital  and  impr
economics.
4
Looking ahead
Our product lines are intentionally selected to ensure global relevance and strong underlying
growth;  as  a  result,  we  continue  to  benefit  from  high  demand.  2024  saw  submission  flow 
increase by 22% on the prior year and this trajectory is expected to continue into 2025.
Seeking  additional  opportunities  to  source  business  directly  from  US  markets  remains  a
strategic imperative. The successful expansion of the US environmental team is testament to
our ability to identify and attract industry leaders to drive profitable growth. We continue to
explore  opportunities  to  enhance  our  product  range  and  increase  our  capabilities,  with 
particular focus on accessing US business in the domestic retail market closer to our broking
partners and policyholders.
The operating environment  continues to provide plenty  of  opportunity.  Exposure premiums
remain  relatively  elevated  after  several  years  of  supportive  market  conditions  and,  in
aggregate, the portfolio pricing adequacy is good.
A changeable economic environment alongside heightened geopolitical and social tensions
remain risk factors influencing our underwriting, however, the select classes of business and
our core industry segments, combined with superior objective risk selection tools, ensure the
team is well placed to navigate these uncertainties.
In  summary,  all  core  infrastructure  and  leadership  are  in  place,  pricing  adequacy  remains
strong, and Syndicate 1609 continues to build a robust track record of profitable, disciplined
growth.
5
Managing Agent's report
The  Syndicate's  Managing  Agent  is  a  company  registered  in  England  and  Wales.  The
Directors of the Managing Agent present their report for the year ended 31 December 2024.
The financial statements herein have been 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  .
Results
The result for calendar year 2024 is a profit of $44,475,000 (2023: profit of $7,578,201).
The Syndicate presents 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 Insurance Contracts.
Principal activity and review of the business
The  Syndicate is  the  underwriting  of  direct  insurance  and  reinsurance
A further review is included in the   
Gross written premium income by class of business for the calendar year was as follows:
2024
$
2023
$
Political Risk  29,573
33,020
Terrorism  (22)
(1,407)
Cyber  51,832
41,696
Financial Institutions  28,269
32,697
M&A  -
(3,161)
Professional Indemnity  (5)
78
Environmental  45,437
28,523
Political Violence  41,685
37,779
Professional Liability  61,102
52,805
Transactional Liability  72,127
67,325
  329,998
289,355
6
The Syndicate's financial key performance indicators during the year were as follows:
2024
$
2023
$
Gross premiums written
329,998
289,355
Profit for the financial year
44,475
7,578
Combined ratio*
79.4%
101.2%
*The  combined  ratio  is  the  ratio  of  net  claims  incurred  and  net  operating  expenses  to  net
premiums earned in the calendar year. Lower ratios represent better performance.
The  performance  of  the  Syndicate  has  been  assessed  by  measuring,  as  a  percentage  of
underwriting capacity, the 36-month  forecasted  result on a funded  accounting basis for  an
individual underwriting year of account  . The return on capacity for each underwriting 
year is shown below.
Note that the 2022 underwriting year is now closed, as of 31 December 2024.
2024 YOA
Open
2023
YOA
Open
2022
YOA
Closed
Capacity ($  
319,080
261,187
212,500
Forecast result ($  
35,189
21,067
15,380
Forecast return on capacity (%)
11.0%
8.1%
7.2%
7
Principal risks and uncertainties
The Syndicate sets risk appetite annually, which is approved by the  Agency as  part of  the
SCR )  process.    The
Agency  Risk  and  Solvency  Committee  meets  at  least  quarterly  to  oversee  the  risk 
management  framework.  The  Syndicate  Board,  a  sub-committee  of  the  Agency  Board,
reviews the risk profile as reflected in the risk register, and monitors performance against risk
appetite using a series of key risk indicators. The principal risk and uncertainties facing the
Syndicate are as follows:
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  Board  and  Underwriting  Committee  manages
insurance risk through challenge and oversight of the approved business plan, which sets out
targets  for volumes,  pricing,  line sizes  and  retention by  class  of  business.    The  Syndicate
Board  then  monitors  performance  against  the  business  plan  and  the  aggregation  of  risk
through exposure management reporting through the year. The Syndicate Board considers
Reserve
adequacy is monitored through quarterly review by the Asta Actuarial team and the Reserving
Committee.
Credit risk
The key aspect of credit risk is reinsurance counterparty risk which is the risk of default by one
Syndicate  policy is to only use
approved reinsurers, supported by collateralisation where required. The Agency Reinsurance
Security Committee sets approval and usage criteria, monitors reinsurer ratings and is required
to approve and oversee the application of the reinsurer approval policy. The Syndicate may
also be exposed to broker credit risk, in particular  where risk transfer arrangements are  in
place. Aged debt reporting for premiums is reviewed in the Syndicate Board.
   
8
Market risk
Market  risk  exposure  impacting  the  Syndicate  relates  to  fluctuations  in  interest  rates  or
exchange rates and inflation. The Syndicate is exposed to foreign exchange movements as
a result of mismatches between the currencies in which assets and liabilities are denominated.
currencies in which they were received or paid. Any surplus or deficit in a core currency would
be subject to review by the Syndicate Board.
Investments  are  monitored  through  Investment  Managers  with  quarterly  Investment
Committees that review the performance, duration and ESG ratings for the investments.
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  Board  and  Investment  Committee  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.
The Syndicate has in place a working capital facility with Mosaic of $5.0m.
Operational risk
This is the risk that errors caused by people, processes, systems and external events lead to
losses to the Syndicate. The Agency seeks to manage this risk through a robust operational
risk  and  control  framework  including  detailed  procedure  manuals  and  a  thorough  training
programme.  This  is  underpinned  by  a  structured  programme  of  testing  of  processes  and
systems by internal audit, who serve as an independent line of assurance, reporting directly to
the Chair of the Agency Audit Committee.  Business continuity and disaster recovery plans
are in place and are regularly updated and tested.
Regulatory risk is the risk of loss owing to a breach of regulatory requirements or failure to
respond to regulatory change. The Agency is required to comply with the requirements of the
Financial Conduct Authority (FCA), Prudential Regulatory Authority (P
.  The
Agency has a Compliance and Governance Director who manages a function that monitors
business activity and regulatory developments to assess any effects on both the Agency and
the Syndicate.
The Syndicate has no appetite for failing to adhere to the requirements of the FCA Consumer
Duty regulations and continues its focus on ensuring that it is treating customers fairly. The
Syndicate manages and monitors consumer duty risk through a suite of risk indicators and
reporting metrics as part of its documented consumer duty risk framework. The consumer duty
risk  framework  is  consistently  applied  across  all  Asta  syndicates  and  is  overseen  by  the
Conduct Oversight Group (COG), which is an Agency Board Committee that includes a non-
executive director as a member who fulfils the role of Consumer Duty Champion.
9
Group and strategic risk
Group Risk is the risk of contagion that arises from being associated with key stakeholders
and the impact that activities and events that occur within other connected or third parties has
on the business.
Strategic risk covers the risks faced by the Syndicate due to changes in underlying strategy of
the business or that of its key stakeholders (including strategic conflicts of interest).
Future developments
The Syndicate will continue to transact the current classes of general direct insurance and
reinsurance business. If opportunities arise to write  new  classes of business,  these will be
investigated at the appropriate time.
The capacity for the 2025 underwriting year is $324m (2024 underwriting year: $261m). 
Environmental, Social and Governance (ESG) and sustainability
The  Syndicate  has documented  a  position  with regard  to  ESG and  sustainability,  which  is
The position has been developed
s  its  principles  for  doing  business  regarding
sustainability,  and  the  Syndicate  continues  to  ensure  its  approach  aligns  with  those 
expectations.
subsequent Dear CEO letter in 2020, Asta have built a climate change framework, applicable
to all syndicates, covering physical, transition and liability climate change risks, based on the
underlying  business  written  by  each  syndicate.
change  risk  where  it  is  an  inherent  part  of  an  insurance  business  model,  providing  it  is
understood,  managed,  and  controlled  and/or  compensated.  There  is  no  appetite  for
uncontrolled, unmanaged exposure to the financial risks of climate change.
The framework ensures Board-level engagement and accountability with   
requirements and expectations, assigning clear responsibilities for managing the financial risks
associated with climate change. The   Chief Risk Officer, who is a Board member, is
responsible for the climate change framework, including identifying and managing financial
climate related risks.
Asta monitors regulatory guidance and expectations on managing the financial risks of climate
change.
10
Emerging risks
developing issue, triggered externally, with
the potential to have a significant business impact but which may not be sufficiently understood
upside opportunity. Emerging risks and opportunities include:
  Syndicate insurable risks, as areas of potential future losses or new product offerings;
and/or lead to unplanned significant costs/income;
  Both new risks and those which are re-emerging in a new context.
The Agency and Syndicate continue to monitor the impact of emerging risks on the Syndicate  
business,  taking  into  account  their  impacts  on  the  strategic  direction  of  the  Syndicate.
Monitoring takes place in various forums, including the Asta Emerging Risks and Opportunities
both  an  internal  and  external  lens.  Specific  areas  of  focus  over  the  external  environment
across the year at Syndicate and Asta level include:
  The geopolitical landscape from a tension and broader political risk impact, including
any exposures stemming from regional conflicts (e.g. Russia - Ukraine conflict).
  The heightened inflationary environment and subsequent volatility surrounding inflation
risk.  This  has  also  been  considered  by  the  Syndicate  within  their  annual  business
planning process and reserve reviews.
Directors and Officers
Details of the Directors of the Managing Agent that were serving at the date of signing these
financial statements are provided on page 1.  Changes to Directors from the last report were
as follows:
K A Green        Resigned 30 September 2024
A F J Neden        Appointed 1 January 2025
S Fisher        Appointed 1 February 2025
Changes to the Active Underwriter from the last report were as follows:
C G Mackay        Resigned 16 September 2024
A Jay          Appointed 16 September 2024
   
11
Disclosure of information to the auditor
So far as each person who was a Director of the Managing Agent at the date of approving the
report  is  aware,  there  is  no  relevant  audit  information,  being  information  needed  by  the
Syndicate  auditor  in  connection  with  the  auditor's  report,  of  which  the  auditor  is  unaware.
Having made enquiries of fellow Directors of the Agency and the Syndicate's auditors, 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.
Auditor
The Managing Agent intends to reappoint PricewaterhouseCoopers LLP as
auditor.
Representation of notes to the Accounts
The  notes  to  the  accounts  have  been  represented  to  align  to  the  Corporation  of  Lloyds 
mandated disclosure. Unless otherwise stated there is no restatement of any figures.
Syndicate Annual General Meeting
In accordance with the Syndicate Meetings (Amendment No 1) Byelaw (No 18 of 2000) the
Managing  Agent  does not  propose holding an  annual  meeting  this  year;  objections to  this
proposal or the intention to reappoint the auditors for a further 12 months can be made by
Syndicate members within 21 days of this notice.
On behalf of the Board
C V Barley
Director
04 March 2025
12
Statement of Managing Agent's responsibilities
The Managing Agent is responsible for preparing the financial statements in accordance with
applicable law and regulations.
The Insurance Accounts Directive (Lloyd's Syndicate and Aggregate Accounts) Regulations
2008 require the managing agent to prepare financial statements at 31 December each year
in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom
Accounting  Standards  and  applicable  law)  including  FRS  102  the  Financial  Reporting
Standard applicable in the UK and Republic of Ireland. The financial statements are required
by law to give a true and fair view of the state of affairs of the Syndicate as at that date and of
its profit or loss for that year.
In preparing the financial statements, the managing agent is required to:
  select suitable accounting policies and then apply them 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 notes to the Syndicate accounts;
and
  prepare the Syndicate Accounts on the basis that the Syndicate will continue to write 
future business unless it is inappropriate to presume that the Syndicate will do so.
The Managing Agent is responsible for keeping adequate accounting records which disclose
with reasonable accuracy at any time the financial position of the Syndicate and enable it to
comply with the Insurance Accounts Directive (Lloyd's Syndicate and Aggregate Accounts)
Regulations  2008.  It  is  also  responsible  for  safeguarding  the  assets  of  the  Syndicate  and
hence  for  taking  reasonable  steps  for  the  prevention  and  detection  of  fraud  and  other
irregularities.
The Managing Agent is responsible for the maintenance and  integrity of the  corporate and
financial  information  included  on  the  business'  website.  Legislation  in  the  United  Kingdom
governing the preparation and dissemination of financial statements may differ from legislation
in other jurisdictions.
The Managing Agent is 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
controls to result in tagging that is free from material non-compliance with the instructions,
whether due to fraud or error.
13
Independent a
s report to the members of Syndicate 1609
Report on the audit of the syndicate annual accounts 
Opinion
and of its profit and cash flows for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted
applicable law); and
have been prepared in accordance with the requirements of The Insurance Accounts
modified by the Fr
We  have  audited  the  syndicate  annual  accounts  included  within  the  Annual  Report  and 
statement of financial position as at 31 December 2024; the statement of profit or loss and
other comprehensive income, the statement of cash flows, and the statement of changes in
which include a description of the significant accounting policies.
Basis for opinion
responsibilities under ISAs (UK) are further described in the
audit of the syndicate annual accounts section of our report. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We remained independent of the syndicate in accordance with the ethical requirements that
Ethical Standard, as applicable to other entities of public interest, and we have fulfilled our
other ethical responsibilities in accordance with these requirements.
To the best of our knowledge and belief, we declare that non-audit services prohibited by the
Other than those disclosed in note 7, we have provided no non-audit services to the syndicate
in the period under audit.
Conclusions relating to going concern 
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
at least twelve months
from when the syndicate annual accounts are authorised for issue.
14
of the going concern basis of accounting in the preparation of the syndicate annual accounts
is appropriate.
However, because not all future events or conditions can be predicted, this conclusion is not
a guarantee as to the syndicate's ability to continue as a going concern.
Our  responsibilities  and  the  responsibilities  of  the  Managing  Agent  with  respect  to  going
concern are described in the relevant sections of this report.
Reporting on other information
The other information comprises  all of  the  information in the Annual Report other than  the
responsible for the other information. Our opinion on the syndicate annual accounts does not
cover the other information and, accordingly, we do not express an audit opinion or, except to
the extent otherwise explicitly stated in this report, any form of assurance thereon.
In connection with our audit of the syndicate annual accounts, 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 audit, or
otherwise appears to be materially misstated. If we identify an apparent material inconsistency
or material misstatement, we are required to perform procedures to conclude whether there is
a material misstatement of the syndicate annual accounts or a material misstatement of the
other  information.  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. We have
nothing to report based on these responsibilities.
  we  also considered  whether  the  disclosures
Regulations 2008 have been included.
Based on our work undertaken in the course of the audit, The Insurance Accounts Directive
certain opinions and matters as described below.
In our opinion, based on the work undertaken in the course of the audit, the information given
syndicate  annual  accounts  and  has  been  prepared  in  accordance  with  applicable  legal
requirements.
In light of the knowledge and understanding of the syndicate and its environment obtained in
Report.
15
Responsibilities for the syndicate annual accounts and the audit
Responsibilities of the Managing Agent for the syndicate annual accounts
Agent is responsible for the preparation of the syndicate annual accounts in accordance with
the  applicable  framework  and  for  being  satisfied  that  they  give  a  true  and  fair  view.  The
Managing Agent is also responsible for such internal control as they determine is necessary
to  enable  the  preparation  of  syndicate  annual  accounts  that  are  free  from
material misstatement, whether due to fraud or error.
In preparing the syndicate annual accounts, the Managing Agent is responsible for
assessing the syndicate’s ability to continue as a going concern, disclosing as applicable,
matters related to going concern and using the going concern basis of accounting unless it is
intended for the syndicate to cease operations, or it has no realistic alternative but to do so.
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
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.
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.
Based on our understanding of the syndicate and industry, we identified that the principal risks
of non-compliance with laws and regulations related to breaches of regulatory principles, such
as those governed by the Prudential Regulation Authority and the Financial Conduct Authority,
non-compliance  might  have  a  material  effect  on  the  syndicate  annual  accounts.  We  also
considered  those  laws  and  regulations  that  have  a  direct  impact  on  the  syndicate  annual
nt  manipulation  of  the  syndicate 
annual accounts (including the risk of override of controls), and determined that the principal
risks  were  related to  the  risk  of  fraud  in  revenue recognition  and  management  override  of
controls, including potential management bias in significant accounting estimates, particularly
in relation to claims incurred but not reported, estimated premium income and the posting of
inappropriate journals. Audit procedures performed by the engagement team included:
Discussions  with  the  Board,  management, and the  compliance function of  the Managing
Agent, including consideration of known or suspected instances of noncompliance with laws
and regulation, and fraud;
Inspecting the meeting minutes of the Syndicate Board and Reserve Committee meetings;
Inspecting  key  correspondence  with  the  Prudential  Regulation  Authority,  the  Financial 
Identifying and testing journal entries based on a risk criteria;
16
Testing  and  challenging  where  appropriate  the  assumptions  and  judgements  made  by
management in their significant accounting estimates, particularly in relation to the estimation
of claims incurred but not reported and the estimation of estimated premiums income; and
Designing audit procedures to incorporate unpredictability around the nature, timing or extent
of our testing
There are inherent limitations in the audit procedures described above. We are less likely to
become aware of instances of non-compliance with laws and regulations that are not closely
related to events and transactions reflected in the syndicate annual accounts. Also, 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.
A further description of our responsibilities for the audit of the syndicate annual accounts is
Use of this report
Syndicate and Aggregate Accounts)  Regulations 2008 and for no other purpose. We do not,
in giving these opinions, accept or assume responsibility for any other purpose or to any other
person to whom this report is shown or into whose hands it may come save where expressly
agreed by our prior consent in writing.
Other required reporting 
Regulations 2008 we are required to report to you if, in our opinion:
we have not obtained all the information and explanations we require for our audit; or
adequate accounting records have not been kept by the Managing Agent in respect of
the syndicate; or 
certain disclosures of Managing Agent remuneration specified by law are not made; or
the syndicate annual accounts are not in agreement with the accounting records.
We have no exceptions to report arising from this responsibility.
Other matter
We  draw attention to the  fact  that this  report may  be  included  within a document  to  which
s Syndicate
Instructions 2.0.
Siobhan Byrne (Senior statutory auditor)  
for and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
London 
04/03/2025 
17
Statement of profit or loss and other comprehensive income
Technical account   general business
For the year ended 31 December 2024
  Notes  2024
$
2023
$
Gross premiums written  4  329,998
289,355
Outward reinsurance premiums    (81,349)
(75,857)
Premiums written, net of reinsurance    248,649
213,498
Changes in unearned premium   
Change in the gross provision for unearned premiums    (41,833)
(44,009)
Change in the provision for unearned premiums
  15,225
9,004
Net change in provisions for unearned premiums  5  (26,608)
(35,005)
Earned premiums, net of reinsurance    222,041
178,493
Allocated investment return transferred from the
non-technical account
  5,171
2,456
Other technical income, net of reinsurance   
Claims paid   
Gross amount    (50,124)
(16,822)
    17,326
1,528
Net claims paid    (32,798)
(15,294)
Changes in the provision for claims   
Gross amount    (72,336)
(111,410)
    16,339
25,735
Net change in provisions for claims    (55,997)
(85,675)
Claims incurred, net of reinsurance    (88,795)
(100,969)
Net operating expenses  6  (87,611)
(79,587)
Balance on the technical account   general
business
  50,806
393
All the amounts above are in respect of continuing operations.
The notes on pages 29 to 59 form part of these financial statements.
   
18
Statement of profit or loss and other comprehensive income continued
Non-technical account   general business 
For the year ended 31 December 2024
  Notes
2024
$
2023
$
Balance on the technical account   general
business
50,806
393
Investment income   
4,684
2,456
Realised gains on investments   
116
-
Unrealised gains on investments   
399
-
Investment expenses and charges   
(28)
-
Total investment return   
5,171
2,456
Allocated investment return transferred to the
general business technical account
(5,171)
(2,456)
Gain/(loss) on foreign exchange
(6,331)
7,185
Profit for the financial year   
44,475
7,578
There  were  no  recognised  gains  and  losses  in  the  year  other  than  those  reported  in  the
statement of profit or loss, and hence no statement of other comprehensive income has been
presented.
All the amounts above are in respect of continuing operations.
The notes on pages 23 to 59 form part of these financial statements.
19
Statement of Financial Position
As at 31 December 2024
 
Notes
2024
$
2023
$
Assets
Investments
Financial investments  11  99,595
57,473
Deposits with ceding undertakings       -
-
Reinsurers' share of technical provisions   
Provision for unearned premiums  5  63,726
49,190
Claims outstanding  5  64,975
49,746
    128,701
98,936
Debtors   
Debtors arising out of direct insurance operations  12  184,639
119,242
Debtors arising out of reinsurance operations  13  93,404
75,790
Other debtors    714
481
    278,757
195,513
Other assets   
Cash at bank and in hand  18  41,302
40,975
Other    8,930
5,853
    50,232
46,828
Prepayments and accrued income   
Deferred acquisition costs  5  56,470
47,142
Other prepayments and accrued income    205
163
    56,675
47,305
  Total assets    613,960
446,055
The notes on pages 23 to 59 form part of these financial statements.
   
20
Statement of financial position continued
As at 31 December 2024
Notes
2024
$
2023
$
Capital and reserves
22,183 (19,259)
22,183 (19,259)
Technical provisions
Provision for unearned premiums 5 244,808 208,907
Claims outstanding 5270,989 202,410
515,797 411,317
Creditors
Creditors arising out of direct insurance operations 15 137 130
Creditors arising out of reinsurance operations 16 57,704 45,319
Amounts owed to credit institutions - -
Other creditors including taxation and social
security
7,429 3,633
65,270 49,082
Accruals and deferred income
10,710 4,915
Total liabilities
591,777 465,314
Total liabilities, capital and reserves
613,960 446,055
The notes on pages 23 to 59 form part of these financial statements.
The financial  statements  on  pages  17 to  59 were  approved  by Board  of  Directors on 18
February 2025 and were signed on its behalf by:
R P Barke
Director
04 March 2025
21
Statement of changes in Members' balances
For the year ended 31 December 2024
2024
$
2023
$
January
(19,259)
(26,631)
Total comprehensive income for the year
44,475
7,578
(2,672)
-
Losses collected on closure of underwriting year
-
-
Cash calls on open underwriting years
-
-
Members agent fees
(361)
(206)
Net movement on funds in syndicate
-
-
Other
-
-
December 
22,183
(19,259)
22
Statement of cash flows   
For the year ended 31 December 2024
Notes
2024
$
2023
$
Cash flows from operating activities    
Profit for the financial year   
44,475
7,578
Adjustments:   
Increase in gross technical provisions   
104,480
161,595
  (29,765)
(35,485)
(Increase) in debtors   
(83,244)
(96,833)
Increase in creditors   
16,188
13,986
(Increase)/decrease in deposits received from
reinsurers
-
-
Movement in other assets/liabilities   
(3,808)
(10,108)
Foreign exchange   
(1,821)
-
Investment return   
(5,171)
(2,456)
Net cash flows from operating activities    41,334
38,277
Cash flows from investing activities   
Purchase of equity and debt instruments
(263,853)
-
Sale of equity and debt instruments    202,060
-
Investment income received    
5,440
2,456
Net cash flows from investing activities    (56,353)
2,456
Cash flows from financing activities   
Distribution of profit    (2,672)
-
Collection of losses    -
-
Injection/(release) of Funds in Syndicate    -
-
Other    (361)
(211)
Net cash flows from financing activities    (3,033)
(211)
  
Net increase/(decrease) in cash and cash
equivalents
 
(18,052)
40,522
Cash and cash equivalents at the beginning of
the year
  98,448
57,922
Foreign exchange on cash and cash equivalents    (904)
4
Cash and cash equivalents at the end of the year
18
79,492
98,448
23
Notes to the financial statements
1.  Basis of preparation
Statement of compliance
The  financial  statements  have  been  prepared  in accordance  with  The  Insurance Accounts
Directive  (Lloyd's  Syndicate  and  Aggregate  Accounts)  Regulations  2008,  applicable 
Accounting Standards in the United Kingdom and the Republic of Ireland, including Financial
Reporting Standard 102 (FRS 102), Financial Reporting Standard 103 (FRS 103) in relation
to  insurance  contracts
modified by the Frequently Asked Questions Version 1.1  . 
The financial statements have been prepared on the historical cost basis, with the exception
of financial assets which are measured at fair value through the profit and loss account.
The financial statements are presented in USD, the  functional currency of  the Syndicate is
USD. All amounts have been rounded to the nearest thousand, unless otherwise indicated.
Going Concern
going concern. As part of this assessment, the Directors have considered cash forecasts, the
availability of financial resources, consistency of loss ratios, credit worthiness of reinsurers,
capital support for the existing underwriting years, business plans for future underwriting years
and availability of future capital support. Following this assessment, the Directors consider it
appropriate  to  adopt  the  going  concern  basis  in  preparing  the  annual  report  and  financial
statements.
2.  Critical accounting estimates and judgements
In  preparing  these  financial  statements,  the  Directors  of  the  Managing  Agent  have  made
judgements,  estimates  and  assumptions  that  affect  the  application  of  the  Syndicate
accounting policies and the reported amounts of assets, liabilities, income and expenses.
The  following  critical  accounting  estimates 
accounting policies:
  Valuation of claims reserves
The  measurement  of  the  provision  for  claims  outstanding  involves  judgements  and
assumptions about the future that have a significant effect on the value recognised in
the financial statements.
The provision for claims outstanding comprises the estimated cost of settling all claims
incurred  but  unpaid  at  the  balance  sheet  date,  whether  reported  or  not.  This  is  a
judgemental and complex area due to the subjectivity inherent in estimating the impact
of  claims  events  that  have  occurred  but  for  which  the  eventual  outcome  remains
uncertain.
Case  estimates  are  generally  set  by  skilled  claims  technicians  applying  their
experience  and  knowledge  to  the  circumstances  of  individual  claims.  Critical
judgement is applied when estimating the value of amounts that should be provided for
24
Critical accounting estimates and judgements continued
claims that have been incurred at the reporting date but have not yet been reported
(IBNR) to the Syndicate. This is a source of significant estimation uncertainty.
The  ultimate  cost  of  outstanding  claims  is  estimated  using  a  range  of  techniques 
including actuarial and statistical projections, benchmarking, case by case review and
judgement.  Statistical techniques assume that  past  claims development experience
can be used as a basis to project ultimate claims costs. Typical methods employed
include, but are not limited to, the chain ladder method and the Bornhuetter-Ferguson
method, whilst plan and pricing loss ratios are also considered.
The reserving process will disaggregate the insured risks into reserving classes   these
are  collections  of  risks  of  a  similar  profile.  Each  reserving  class  will  be  assessed 
separately, and corresponding claims development patterns will be selected as bases
against which to forecast expected claims. Judgement is used to assess the extent to
which past trends may not apply in the future. When selecting historic data to use for
claims forecasting purposes, the suitability and reliability of the dataset is considered.
A dataset that most closely resembles the expected risk profile of a given reserving
class will be selected.   as
reserving  development  patterns,  but  these  can  be  substituted  by  or  blended  with
additional data, providing that this additional data has an established track record and
is relevant.
Whilst the Directors consider that the claims reserves are fairly stated based on the
information  currently  available  to  them,  the  ultimate  liability  will  vary  as  a  result  of
subsequent information and events.
Sensitivities relating to this critical judgement have been assessed in further detail in
note 23.
   
For the majority of assumed (inwards) reinsurance policies, EPI is initially used as the
basis for  reporting gross  premiums written.  EPI  is  a measure  of expected premium
income over the life of a policy. These estimates, typically supplied by the cedent, are
judgemental  and could result in misstatements  of  revenue recorded in the  financial
statements.
  Pipeline premium
Pipeline premium relates to premium that has likely been written as at the report date,
but  due  to  reporting delays through the  distribution chain,  the premium has  not  yet
been  reported  to  the  Syndicate.  Reasons  for  the  reporting  delay  typically  revolve
around a natural lag in receiving the premium bordereaux from brokers or coverholders
bordereaux are generally produced monthly or quarterly in arrears. Pipeline premium
is included within Gross Premiums Written on the statement of profit of loss.
There  is  significant  uncertainty  when  estimating  pipeline  premium.  Estimates  are
frequently based upon information provided by the business producers, or sometimes
a  statistical  approach  is  adopted  based  on  past  experience. Given  that  pipeline
premium relates to hypothetical policies that have been bound just before the balance
sheet date, the vast majority of this premium is usually unearned.
25
3.  Significant accounting policies
The following principal accounting policies have been applied consistently in dealing with items
which are considered material in relation to the Syndicate financial statements.
Gross premiums
Gross written premiums comprise the total premiums receivable for the whole period of cover
provided by the contracts entered into during the reporting period, regardless of whether these
are wholly due for payment in the reporting period, together with any adjustments arising in
the  reporting  period  to  such  premiums  receivable  in  respect  of  business  written  in  prior
reporting periods. They are recognised on the date on which the policy commences. This is
applicable to both direct premium and assured (inwards reinsurance) premium. Gross written
premiums are stated gross of brokerage payable to intermediaries,  and exclude  taxes and
duties levied on the policyholder.
Estimated premium income in respect of facility contracts, for example binding authorities and
lines  slips,  are  deemed  to  be  written  in  a  manner  that  reflects  the  expected  profile  of  the
underlying business which has been written.
Ceded reinsurance premiums
Reinsurance  written  premiums  comprise  the  total  premiums  payable  for  the  whole  cover
provided by contracts entered into the period, including portfolio premiums payable, and are
recognised on the date on which the policy incepts.  Premiums include any adjustments arising
in  the  accounting  period  in  respect  of  reinsurance  contracts  incepting  in  prior  accounting
periods. They are recognised on the date on which the policy commences.
Provisions for unearned premiums
Unearned premiums are those proportions of premiums written up to the reporting date that
relate  to  periods of risk after  the  reporting date. In respect  of  general insurance  business,
written  premiums  are  recognised  as  earned  over  the  period  of  the  policy  on  a  time
apportionment basis having regard where appropriate, to the incidence of risk. The proportion
attributable to subsequent periods is deferred as a provision for unearned premiums.
Unearned reinsurance premiums are those proportions of ceded premiums written up to the
reporting  date  that  relate  to  periods  of  risk  after  the  reporting  date.  Ceded  reinsurance 
premiums are earned on the same basis as the inwards business being protected.
Claims incurred
Claims incurred comprise claims and claims handling expenses (both internal and external)
paid  in  the  year  and  the  movement  in  provision  for  outstanding  claims  and  settlement
expenses processed in the year. The provision for claims comprises amounts set aside for
claims  notified  and  claims  incurred,  but  not  yet  reported  (IBNR).  The  Syndicate  does  not
discount its liability for outstanding claims.
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,
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 can also
relate to specific large losses.
26
Significant accounting policies continued
claims and projections for IBNR, net of estimated irrecoverable amounts, having regard to the
reinsurance programme in place for the class of business and the claims experience for the
year.  The  Syndicate  uses  a  number  of  statistical  techniques  to  assist  in  making  these 
estimates where relevant.
Accordingly, the two most critical assumptions as regards claims provisions are that the past
is a reasonable predictor of the likely level of claims development and that the rating and other
models used for current business are fair reflections of the likely level of ultimate claims to be
incurred.
The Directors consider that the provisions for gross claims and related reinsurance recoveries
are fairly stated on the basis of the information currently available to them. However, ultimate
liability  will  vary  as  a  result  of  subsequent  information  and  events  and  this  may  result  in
significant adjustments to the amounts provided.
Adjustments to the amounts of claims provisions established in prior years are reflected in the
financial statements for the period in which the adjustments are made.  The methods used,
and the estimates made, are reviewed regularly.
Unexpired risks
A provision for unexpired risks is made where claims and related expenses are 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.
The provision for unexpired risks is calculated separately by reference to classes of business
which are managed together.
As at 31 December 2024, the Syndicate had a nil net unexpired risk provision, (2023: nil).
Reinsurance assets
The Syndicate cedes insurance risk in the normal course  of business. Reinsurance assets
represent balances due from reinsurance companies. Amounts recoverable from reinsurers
are estimated in a manner consistent with the outstanding claims provision including IBNR or
settled claims associated with the reinsurer's policies and are in accordance with the related
reinsurance contract.
Reinsurance assets are reviewed for impairment at each reporting date, or more frequently if
an indication of impairment arises during the reporting year. Impairment occurs when there is
objective  evidence  as  a  result  of  an  event  that  occurred  after  initial  recognition  of  the
reinsurance asset that the Syndicate may not receive all outstanding amounts due under the
terms of the contract and the event has a reliably measurable impact on the amounts that the
Syndicate will receive from the reinsurer. The impairment loss is recorded in the statement of
profit or loss.
Gains  or  losses  on  buying  reinsurance  are  recognised  in  the  statement  of  profit  or  loss
immediately at the date of purchase and are not amortised.
Ceded  reinsurance  arrangements  do  not  relieve  the  Syndicate  from  its  obligations  to
policyholders.
27
Significant accounting policies continued
Acquisition costs
Acquisition costs comprise costs arising from the conclusion of insurance contracts, such as
intermediary brokerage and commissions.
of indirect costs, such as the advertising costs or the administrative expenses connected with
the processing of proposals and the issuing of policies, to acquisition costs.
The  deferred  acquisition  cost  asset  represents  the  proportion  of  acquisition  costs
corresponding  to the proportion of gross premiums written that is unearned  at the balance
sheet  date.  Deferred  acquisition  costs  are  amortised  over  the  period  in  which  the  related 
premiums are earned.
Foreign currencies
Transactions  denominated  in  currencies  other  than  the  functional  currency  are  initially
recorded in the functional currency at the exchange rate ruling at the date of the transactions.
Monetary assets and liabilities (which include all assets and liabilities arising from insurance 
contracts including unearned premiums and deferred acquisition costs) denominated in foreign
currencies  are  retranslated  into  the  functional  currency  at  the  exchange  rate  ruling  on  the
reporting date.
Foreign exchange differences are recorded in the non-technical account.
The  following  currency  exchange  rates  have  been  used  for  principal  foreign  currency 
transactions: 
  2024  2024  2024    2023  2023  2023
Start of
Period Rate
End of
Period
Rate
Average
Rate   
Start of
Period
Rate
End of
Period
Rate
Average
Rate
GBP  0.79  0.80  0.78    0.83  0.79  0.81
USD  1.00   1.00  1.00    1.00  1.00  1.00
CAD  1.32   1.44  1.37    1.36  1.32  1.35
EUR  0.91  0.97  0.92    0.94  0.91  0.93
AUD  1.47  1.62  1.52    1.48  1.47  1.51
JPY  141.54  157.52  151.20    132.26  141.54  141.10
SGD  1.32  1.37  1.34    1.34  1.32  1.32
Financial assets and liabilities
In applying FRS 102, the Syndicate has chosen to apply the recognition and measurement
provisions of IAS 39 Financial Instruments: Recognition and Measurement (as adopted for use
in the UK).
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.
28
Significant accounting policies continued
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, reassessment 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. Investments in shares and other variable yield securities, units in unit trusts, and
debt and other fixed income securities are designated as at fair value through profit or loss on
initial  recognition,  as  they  are  managed  on  a  fair  value  basis  in  accordance  with  the
nancial assets, principally certain debt and other fixed
income securities are classified as available for sale.
Deposits  with  credit  institutions,  debtors,  and  accrued  interest  are  classified  as  loans  and
receivables.
Financial instruments are recognised when the Syndicate becomes a party to the 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 way 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.
A financial asset or financial liability is measured initially at fair value plus, for a financial asset
or financial liability not at fair value through profit or loss, transaction costs that are directly
attributable to its acquisition or issue.
Financial assets at fair value through profit or loss are measured at fair value with fair value
changes recognised immediately in profit or loss. Net gains or net losses on financial assets
measured at fair value through profit or loss includes foreign exchange gains/losses arising on
their translation to the functional currency but excludes interest and dividend income.
Financial assets  classified  as  available for  sale  are  initially  recognised at  fair  value,  which
typically equates to the cost, plus transaction costs directly attributable to its acquisition. After
initial measurement, these assets are subsequently measured at fair value. Interest earned
whilst holding available for sale financial assets is reported as interest income.  Impairment
losses and foreign exchange gains or losses are reported in profit or loss. Other fair value
changes are recognised in other comprehensive income. Any gain or loss recognised in OCI
will be recycled to profit and loss on derecognition of the asset.
Loans and receivables and non-derivative financial liabilities are measured at amortised cost
using the effective interest method, except Syndicate Loans to the Central Fund which are
measured at fair value through profit or loss.
Objective evidence that financial assets are impaired includes observable data that comes to
the attention of the Syndicate about any significant financial difficulty of the issuer, or significant
changes  in  the  technological,  market,  economic  or  legal  environment  in  which  the  issuer
operates.
29
Significant accounting policies continued
Impairment losses on available for sale financial assets are recognised by reclassifying the
losses accumulated in other comprehensive income to profit or loss. The net cumulative loss
that is reclassified from other comprehensive income to profit or loss is the difference between
the  acquisition  cost,  net  of  any  principal  repayment,  and  the  current  fair  value,  less  any 
impairment loss recognised previously in profit or loss. If, in a subsequent period, the fair value
of  an  impaired  available  for  sale  debt  security  increases  and  the  increase  can  be  related
objectively to an event occurring after the impairment loss was recognised, the impairment
loss  is  reversed  through  profit  or  loss.  Otherwise  it  is  reversed  through  the  statement  of
comprehensive income.
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.
Investment return
Investment  return  comprises  investment  income  and  movements  in  unrealised  gains  and
losses on financial instruments at fair value through profit or loss, less investment management
expenses,  interest  expense,  realised  losses  and  impairment  losses.  Investment  income
comprises interest income, dividends receivable and realised investment gains.
For the purpose of separately presenting investment income and unrealised gains and losses
for financial assets at fair value through profit or loss, interest income is calculated using the
effective interest method excluding transaction costs that are expensed when incurred. For
investments  at  fair  value  through  profit  or  loss,  realised  gains  and  losses  represent  the
difference between the net proceeds on disposal and the purchase price.
Unrealised investment gains and losses represent the difference between the fair value at the
balance sheet date and the fair value at the previous balance sheet date, or purchase price if
acquired during the year. Movements in unrealised investment gains and losses comprise the
increase/decrease in the reporting period in the value of the investments held at the reporting
date and the reversal of unrealised investment gains and losses recognised in earlier reporting
periods in respect of investment disposals of the current period.
Investment return is initially recorded in the non-technical account. The return is transferred in
full  to  the  general  business  technical  account  to  reflect  the  investment  return  on  funds
supporting underwriting business.
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 management are included as a component of cash and cash equivalents for the purpose
of the statement of cash flows.
30
Significant accounting policies continued
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
Capital appreciation falls within trading income and is also distributed gross of tax.
No provision has been made for any other overseas tax payable by members on underwriting
results or investment earnings. Any payments on account made by the Syndicate during the
debtors .
Profit commission
Profit commission for the closing year is charged by the managing agent at 5% on profits over
£10m,  3.5%  on  the  subsequent  £10m  and  2%  thereafter.  Such  commission  is  recognised
when  the  year  of  account  becomes profitable  but  does  not  become payable until  after  the
appropriate year of account closes normally at 36 months.
Deposits with ceding undertakings
to settle Part VII claims. These funds are held at amortised cost in the balance sheet.
Operating expenses
Where  expenses  are  incurred  by  the  Managing  Agent  for  the  administration  of  managed
syndicates, these expenses are apportioned using various methods depending on the type of
expense. Expenses which are incurred jointly are apportioned between the Managing Agent
and the Syndicate depending on the amount of work performed, resources used, and volume
of business transacted.
commission and overriding commission, are treated as a contribution to expenses.
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.
Where permitted under UK  GAAP accounting standards, insurance creditors are  netted off 
against insurance debtors where the legally enforceable right to offset exists.
Reinsurance debtors and creditors include amounts due to and from reinsurers. These are
classified  as  debt  instruments  as  they  are  non-derivative  financial  assets  with  fixed  or
determinable payments that are  not  quoted  on an  active  market.  Reinsurance debtors  are
measured  at amortised cost less any  provision  for  impairments. Reinsurance  creditors  are
stated at amortised cost. Reinsurance debtor principally relates to claims recoveries where the
underlying claim has been settled and the recovery is due. Reinsurance creditors are primarily
premiums payable for reinsurance contracts and are recognised as an expense when due.
31
4.   Analysis of underwriting result
An analysis of the underwriting result before investment return is presented in the table below:
2024
Gross
premium
written
Gross
premium
earned
Gross
claims
incurred
Net
operating
expenses
Reinsurance
balance
Underwriting
Result
$ 000
$ 000
$ 000
$ 000
$ 000
$ 000
Direct insurance:
Fire and other
damage to property  17,287
15,972
133
(6,470)
(2,610)
7,025
Third-party liability
243,063
211,585
(107,170)
(63,692)
(24,965)
15,758
Total Direct
260,350
227,557
(107,037)
(70,162)
(27,575)
22,783
Reinsurance
acceptances  69,648
60,608
(15,423)
(17,449)
(4,884)
22,852
Total
329,998
288,165
(122,460)
(87,611)
(32,459)
45,635
business:
2024
Gross
premiums
written
Gross
premium
earned
Gross
claims
incurred
Net
operating
expenses
Reinsurance
balance
Underwriting
Result
Additional
analysis
$
$
$
$
$
$
Fire and damage to property
of which is: 
Specialties
13,464
13,043
109
(5,284)
(2,131)
5,737
Energy
-
-
-
-
-
-
Third party liability of which
is:
Energy
-
-
-
-
-
-
    
32
Analysis of underwriting result continued
2023
Gross
premiums
written
Gross
premium
earned
Gross
claims
incurred
Net
operating
expenses
Reinsurance
balance
Underwriting
Result
$ 000
$ 000
$ 000
$ 000
$ 000
$ 000
Direct insurance:
Fire and other
damage to
property  17,862
15,881
(6,671)
(4,846)
(2,619)
1,745
Third-party liability
197,879
183,388
(103,037)
(60,640)
(30,822)
(11,111)
Total Direct
215,741
199,269
(109,708)
(65,486)
(33,441)
(9,366)
Reinsurance
acceptances  73,614
46,077
(18,524)
(14,101)
(6,149)
7,303
Total
289,355
245,346
(128,232)
(79,587)
(39,590)
(2,063)
The
2023
Gross
premiums
written
Gross
premium
earned
Gross
claims
incurred
Net
operating
expenses
Reinsurance
balance
Underwriting
Result
Additional
analysis
$
$
$
$
$
$
Fire and damage to property
of which is: 
Specialties
15,281
13,346
(5,607)
(4,072)
(2,201)
1,466
Energy
-
-
-
-
-
-
Third party liability of which
is:
Energy
-
-
-
-
-
-
33
Analysis of underwriting result continued
The gross premiums written for direct insurance by underwriting location is presented in the
table below:
2024
2023
$
$
Restated
United Kingdom  328,391
288,192
European Union Member States  -
-
US  -
-
Rest of the world  1,607
1,163
Total gross premiums written  329,998
289,355
During the review of financial statement presentation, it was identified that business concluded
in the Rest of the World had been previously incorrectly disclosed against the United Kingdom.
The  reclassification  relates  to  the  above  disclosure  only  and  has  no  impact  on  previously 
reported profit, total comprehensive income, total assets, total liabilities, or total capital and
reserves.
No gains or losses were recognised in profit or loss during the year on buying reinsurance
(2023: nil).
34
5.  Technical provisions
  2024
  Gross
provisions
$
Reinsurance
assets
$
Net
$
Claims outstanding
Balance at 1 January  202,410
(49,746)
152,664
Claims paid during the year  (50,124)
17,326
(32,798)
Expected cost of current year claims  137,723
(34,588)
103,135
Change in estimates of prior year provisions  (15,263)
923
(14,340)
Foreign exchange movements  (3,757)
1,110
(2,647)
Balance at 31 December  270,989
(64,975)
206,014
Unearned premiums
Balance at 1 January  208,907
(49,190)
159,717
Premiums written during the year  329,998
(81,349)
248,649
Premiums earned during the year  (288,165)
66,124
(222,041)
Foreign exchange movements  (5,932)
689
(5,243)
Balance at 31 December  244,808
(63,726)
181,082
Deferred acquisition costs
Balance at 1 January  47,142
(4,060)
43,082
Incurred deferred acquisition costs  75,048
(15,553)
59,495
Amortised deferred acquisition costs  (64,490)
9,567
(54,923)
Foreign exchange movements  (1,230)
200
(1,030)
Balance at 31 December  56,470
(9,846)
46,624
  2023
  Gross
provisions
$
Reinsurance
assets
$
Net
$
Claims outstanding
Balance at 1 January  88,843
(23,470)
65,373
Claims paid during the year  (16,822)
1,528
(15,294)
Expected cost of current year claims  127,983
(27,936)
100,048
Change in estimates of prior year provisions  248
673
921
Foreign exchange movements  2,158
(541)
1,616
Balance at 31 December  202,410
(49,746)
152,664
Unearned premiums
Balance at 1 January  160,879
(39,981)
120,898
Premiums written during the year  289,355
(75,857)
213,498
Premiums earned during the year  (245,346)
66,853
(178,493)
Foreign exchange movements  4,019
(205)
3,814
Balance at 31 December  208,907
(49,190)
159,717
Deferred acquisition costs
Balance at 1 January  37,141
(3,921)
33,220
Incurred deferred acquisition costs  63,922
(10,644)
53,278
Amortised deferred acquisition costs  (54,813)
10,595
(44,218)
Foreign exchange movements  893
(90)
803
Balance at 31 December  47,142
(4,060)
43,082
35
6.  Net operating expenses
2024
2023
$
$ 000
Acquisition costs  (75,048)
(70,342)
Change in deferred acquisition costs   10,558
9,109
Reinsurance commissions and profit participation  9,567
10,595
Administration expenses  (26,426)
(24,332)
  (6,262)
(4,617)
Net operating expenses  (87,611)
(79,587)
Total commissions for direct insurance business for the year amounted to:
  2024
2023
  $
$ 000
Total commission for direct insurance business  (59,444)
(47,356)
7.  Auditor s remuneration     
  2024
2023
  $
$
F
financial statements  (342)
(314)
Fees
respect of other services pursuant to legislation  (249)
(142)
Total  (591)
(456)
Auditors  remuneration is included as part of administrative expenses in note 6.
36
8.  Key management personnel compensation
The  active  underwriter  received  the  following  aggregate  remuneration  charged  to  the 
Syndicate:
  2024
2023
  $
$ 000
Emoluments  (733)
(585)
The  aggregate  emoluments  of  the  Directors  and  staff  of  the  Asta  Group  are  charged  to
companies of the Asta Group in accordance with the proportion of their time associated with
in  the
financial statements of Asta Managing Agency Ltd.
No emoluments of the Directors of Asta Managing Agency Ltd were directly charged to the
Syndicate. No other compensation was payable to key management personnel.
9. Staff numbers and costs
The Syndicate has no employees beyond the Active Underwriter
10. Investment return
2024
2023
From financial assets designated at fair value through profit or
loss 
$
$
Interest and similar income
1,183
73
Dividend income
-
-
Interest on cash at bank
3,427
2,318
Gains on the realisation of investments
327
65
Losses on the realisation of investments
(137)
-
Unrealised gains on investments
819
-
Unrealised losses on investments 
(420)
-
Investment management expenses
(28)
-
Total investment return
5,171
2,456
37
11. Financial Investments
31 December 2024
Carrying
value
Cost
$
$
Shares and other variable yield securities and units in unit trusts  38,191
38,191
Debt securities and other fixed income securities  61,404
61,013
Loans and deposits with credit institutions  -
-
Syndicate loans to central fund  -
-
Other investments  -
-
Total financial investments   99,595
99,203
31 December 2023
Carrying
value
Cost
$
$
Shares and other variable yield securities and units in unit trusts  57,473
57,473
Debt securities and other fixed income securities  -
-
Loans and deposits with credit institutions  -
-
Syndicate loans to central fund  -
-
Other investments  -
-
Total financial investments   57,473
57,473
   
38
Financial investments continued
The  table  below  presents  an  analysis  of  financial  investments  by  their  measurement
classification:
  2024
2023
  $
$
Financial assets measured at fair value through profit or loss  99,595
57,473
Financial assets measured at fair value as available for sale  -
-
Financial assets measured at amortised cost  -
-
Total financial investments   99,595
57,473
The Syndicate classifies its financial instruments held at fair value in its balance sheet using a
fair value hierarchy based on the inputs used in the valuation techniques as follows:
  Level 1   financial assets that are measured by reference to published quotes in an
active market. A financial instrument is regarded as quoted in an active market if quoted
prices are readily and regularly available from an exchange, dealer, broker, industry
group,  pricing  service  or  regulatory  agency  and  those  prices  represent  actual  and 
  Level 2   financial assets measured using a valuation technique based on assumptions
that  are  supported  by  prices  from  observable  current  market  transactions.  For 
example, assets for which pricing is obtained via pricing services but where prices have
not been determined in an active market, financial assets with fair values based on
broker quotes, investments in private equity funds with fair values obtained via fund
significant inputs into the assumptions are market observable.
  Level  3    financial assets measured using a  valuation technique (model)  based on
assumptions  that  are  neither  supported  by  prices  from  observable  current  market
transactions  in  the  same  instrument  nor  are  they  based  on  available  market  data.
Therefore,  unobservable  inputs  reflect  the  Syndicate's  own  assumptions  about  the
assumptions that market participants would use in pricing the asset or liability (including
assumptions about risk). These inputs are developed based on the best information
39
Financial investments continued
The following table shows financial investments recorded at fair value analysed between the
three levels in the fair value hierarchy.
2024  $  
Level 1
Level 2
Level 3
Assets
held at
amortised
cost
Total
Shares and other variable yield
securities and units in unit trusts  38,191
-
-
-
38,191
Debt securities and other fixed
income securities  -
61,404
-
-
61,404
Loans and deposits with credit
institutions  -
-
-
-
-
Syndicate loans to central fund  -
-
-
-
-
Other investments  -
-
-
-
-
Total  38,191
61,404
-
-
99,595
2023  $  
Level 1
Level 2
Level 3
Assets
held at
amortised
cost
Total
Shares and other variable yield
securities and units in unit trusts  57,473
-
-
-
57,473
Debt securities and other fixed
income securities  -
-
-
-
-
Loans and deposits with credit
institutions  -
-
-
-
-
Syndicate loans to central fund  -
-
-
-
-
Other investments  -
-
-
-
-
Total  57,473
-
-
-
57,473
   
40
Financial investments continued
Information on the methods and assumptions used to  determine fair values for each major
category of financial instrument measured at fair value is provided below.
Debt securities are generally valued using prices provided by external pricing vendors. Pricing
vendors  will often determine prices by consolidating  prices of recent trades for identical or
similar securities obtained from a panel of market makers into a composite price. The pricing
service may make adjustments for the elapsed time from a trade date to the valuation date to
take  into  account  available  market  information.  Lacking  recently  reported  trades,  pricing
vendors will use modelling techniques to determine a security price.
Some government and supranational securities are listed on recognised exchanges and are
generally  classified  as  level  1  in  the  fair  value  hierarchy.  Those  that  are  not  listed  on  a
recognised exchange are generally based on composite prices of recent trades in the same
instrument and are generally classified as level 2 in the fair value hierarchy.
Corporate  bonds,  including  asset  backed  securities,  that  are  not  listed  on  a  recognised
exchange or are traded in an established over the counter market are also mainly valued using
composite prices. Where prices are based on multiple quotes and those quotes are based on
actual  recent  transactions  in  the  same  instrument  the  securities  are  classified  as  level  2,
otherwise they are classified as level 3 in the fair value hierarchy.
At the reporting date  Level 1  and  Level 2 financial assets and liabilities were valued using
valuation techniques based on observable market data. All of the investments categorised as
Level 3 are fair valued based on the inputs to the valuation technique used.
12. Debtors arising out of direct insurance operations
  2024
2023
  $
$ 000
Due within one year  184,638
119,242
Due after one year  1
-
Total  184,639
119,242
13. Debtors arising out of reinsurance operations
  2024
2023
  $
$
Due within one year  93,404
75,789
Due after one year  -
1
Total  93,404
75,790
41
14. Other debtors
    2024
2023
  $
$ 000
Due within one year  714
481
Due after one year  -
-
Total   714
481
15. Creditors arising out of direct insurance operations
  2024
2023
  $
$ 000
Due within one year  136
130
Due after one year  1
-
Total  137
130
16. Creditors arising out of reinsurance operations
  2024
2023
  $
$
Due within one year  57,704
45,319
Due after one year  -
-
Total  57,704
45,319
17. Other creditors
  2024
2023
  $
$
Due with one year  7,429
3,633
Due after one year  -
-
Total  7,429
3,633
42
18. Cash and cash equivalents
  2024
2023
  $ 0
$ 000
Cash at bank and in hand  41,302
40,975
Deposits with credit institutions  -
-
Shares and other variable yield securities and units in unit trusts  38,190
57,473
Bank overdrafts  -
-
Total cash and cash equivalents  79,492
98,448
Shares and other variable yield securities and units in unit trusts are investments in nature but
are treated as cash and cash equivalents for cash flow purposes, so therefore are included in
both Financial investments and Cash and cash equivalents.
Deposits with credit institutions with maturities of three months or less that are used by the
Syndicate in the management of its short-term commitments are included in cash and cash
equivalents.
Of  the  total  cash  and  cash  equivalents,  the  following  amount  was  held  in  regulated  bank 
accounts in overseas jurisdictions:
  2024
2023
  $
$
Total cash and cash equivalents held in regulated accounts in overseas
jurisdictions  15,304
33,456
   
43
19. Related parties
The ultimate parent company of Asta Managing Agency Ltd is Tennessee Topco Ltd.
Asta provides services and support to the Syndicate 1609 in its capacity as Managing Agent.
During  the  year,  Managing  Agency  fees  of  $2.2m  were  charged  to  the  Syndicate  (2023:
$1.8m). Asta also recharged $3.6 (2023: $3.5m) of service charges in the year and as at 31
December 2024 an amount of $0.3m (2023: $0.0m) was owed to Asta in respect of this service.
During the year, $18.4m (2023: $14.5m) of admin expenses were charged to the Syndicate
from  Mosaic  entities  ($4.6m  Mosaic  Insurance  Holding  Limited,  $10.2m  Mosaic  Syndicate
Services Limited, $3.6m Mosaic Services US LLC).  
The Syndicate 1609 has recorded an accrual of $1.6m for profit commission payable to Asta
(2023: $0.6m).
From time to time, syndicates managed by Asta enter into (re)insurance contracts with one
elaw provisions. All transactions are on an arm s length
basis.
Asta Capital Ltd, the parent of Asta Managing Agency Ltd, is owned by the Davies Group but
maintains a level of independence by virtue of separate boards and a separate governance
structure. Other entities within the wider Davies Group provide insurance-related services to
. The provision of these services is managed by a
length basis.
20. Disclosure of interests
During 2024 Asta was the Managing Agent for the following syndicates on behalf of third-party
capital providers:
  Syndicates 1322, 1609, 1699, 1892, 1985, 1988, 2525, 2689, 2786, 3123, 4242 and
4747
  Special Purpose Arrangement 1416,
  Syndicates-in-a-Box 1796, 1902, 1922, 1966, 2427, 2880, 3456 and 5183. 
During 2024, Asta took on management of the following syndicates:
  Syndicate 1922 on 1 January 2024
  Syndicate 1966 on 13 June 2024
  Syndicate 2427 on 1 May 2024 
  Syndicate 3123 on 1 July 2024  
On 1 January 2024, Asta reinsured to close Syndicate 2288 into Renaissance Re Syndicate
1458.
On 1 January 2025, Asta took on management of Syndicate 1618.
44
Disclosure of interests continued
The  agency  also  provides  administrative  services  to  syndicates  and  special  purpose
arrangements, also undertaking several ancillary roles for other clients.
The  Financial  Statements  of  the  Managing  Agency  can  be  obtained  by  application  to  the
Registered Office (see page 1).
21. 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  PRA
requirements and resource criteria. 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 members' FAL
to meet liquidity requirements or to settle losses.
22. Off-balance sheet items
The Syndicate has not been party to an arrangement, which is not reflected in its statement of
financial position, where material risks and benefits arise for the Syndicate.
   
45
23. Risk management
a)  Governance framework
The  Syndicate's  risk  and financial management  framework  aims to  protect the  Syndicate's
members  capital  from  events  that  might  otherwise  prevent  the  Syndicate  from  meeting its
policyholder obligations, while maximising the returns to its members. The Directors recognise
the critical importance of having efficient and effective risk management systems in place.
Asta maintains a risk management function for the Syndicate with clear terms of reference
from the Syndicate Board, its committees and sub committees.
Asta  supplements  this  with  a  clear  organisational  structure  with  documented  delegated
authorities and responsibilities from the main Asta Managing Agency board to the Syndicate
who perform the underwriting activities. Lastly, the  Syndicate  policy framework sets its risk
management and control and business conduct standards for operations. Asta reviews and
monitors each policy to ensure compliance with the policy throughout the Syndicate.
The Syndicate Board approves the risk management policies and meets regularly to approve
any commercial, regulatory and organisational requirements of such policies. These policies
define  the  identification  of  risk  and  its  interpretation  to  ensure  the  appropriate  quality  and 
diversification of assets, align underwriting and reinsurance strategy to the Syndicate goals,
and specify reporting requirements. The Syndicate Board places significant emphasis on the
assessment  and  documentation  of  risks  and  controls,  including  the  articulation  of  the
Syndicate's risk appetite.
b)  Capital management objectives, policies and approach
Capital framework at Lloyd's
The Society of Lloyd's (Lloyd's) is a regulated undertaking and subject to the supervision of
the Prudential Regulatory Authority (PRA) under the Financial Services and Markets Act 2000.
Within the supervisory framework, Lloyd's applies capital requirements at member level and
centrally to ensure that Lloyd's complies with Solvency II capital requirements, and beyond
that to meet its own financial strength, licence and ratings objectives.
Although Lloyd's capital setting processes use a capital requirement set at Syndicate level as
a starting point, the requirement to meet Solvency II and Lloyd's capital requirements apply at
overall  and  member  level  only  respectively,  not  at  Syndicate  level.  Accordingly  the  capital
requirement in respect of the Syndicate 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.
46
Risk management continued
A Syndicate may be comprised of one or more underwriting members of Lloyd's. Each member
is liable for its own share of underwriting liabilities on the Syndicate on which it is participating
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%
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 (funds at Lloyd's), held within and managed within a  Syndicate
(funds in Syndicate) or as the member's share of the members' balances on each Syndicate
on which it participates. Accordingly, the ending members balances reported on the Statement
of Financial Position on page 18, represent resources available to meet members' and Lloyd's
capital requirements.
c)  Insurance risk
The principal risk the Syndicate faces under insurance contracts is that the actual claims and
benefit  payments  or  the  timing  thereof,  differ  from  expectations.  This  is  influenced  by  the
frequency of claims, severity of claims, actual benefits paid and subsequent development of
long-term claims. Therefore, the objective of the Syndicate is to ensure that sufficient reserves
are available to cover these liabilities.
The risk exposure is mitigated by diversification across a large portfolio of insurance contracts
and  geographical  areas.  The  variability  of  risks  is  also  improved  by  careful  selection  and
implementation  of  underwriting  strategy  guidelines,  as  well  as  the  use  of  reinsurance
arrangements.
The Syndicate purchases reinsurance as part of its risk mitigation programme. The Syndicates
reinsurance program is covered by multiple contract types including XOL, Cyber Quota Share
and  a  Whole  account  quota  share  contract.  Amounts  recoverable  from  reinsurers  are
estimated in a manner consistent with the outstanding claims provision and are in accordance
with the reinsurance contracts. The Syndicate's placement of reinsurance is diversified such
that it is neither dependent on a single reinsurer nor are the operations substantially dependent
upon any single reinsurance contract.
Sub committees of the Syndicate Board oversee the management of reserving risk. The use
of standardised and internal modelling techniques, as well as benchmarking and the review of
claims development are key in mitigating reserving risk. The purpose of these underwriting,
reinsurance and reserving strategies is to limit exposure to catastrophes or large losses based
on the Syndicate's risk appetite as decided by the Syndicate Board.
The Syndicate uses both its  own and commercially available risk management software to
assess  catastrophe  exposure.  However,  there  is  always  a  risk  that  the  assumptions  and
techniques used in these models are unreliable or that claims arising from an un-modelled
event are greater than those arising from a modelled event.
47
Risk management continued
Key assumptions
The  principal  assumption  underlying  the  liability  estimates  is  that  the  future  claims
development will follow a similar pattern to past claims development experience. This includes
assumptions in respect of average claim costs, claim handling costs, claim  inflation factors
and claim numbers for each underwriting year. Additional qualitative judgements are used to
assess  the  extent  to  which  past  trends  may  not  apply  in  the  future,  for  example:  once-off
occurrence;  changes  in  market  factors  such  as  public  attitude  to  claiming:  economic
conditions:  as  well  as  internal  factors  such  as  portfolio  mix,  policy  conditions  and  claims
handling procedures. Judgement is further used to assess the extent to which external factors
such as judicial decisions and government legislation affect the estimates.
Other key circumstances affecting the reliability of assumptions include variation in interest
rates, delays in settlement and changes in foreign currency rates.
Sensitivities
The claim liabilities are sensitive to the key assumptions that follow. It has not been possible
to quantify the sensitivity of certain assumptions, such as legislative changes, uncertainty in
the  estimation  process.  The  following  analysis  is  performed  for  reasonably  possible
movements in key assumptions with all other assumptions held constant, showing the impact
on  net  liabilities,  profit  and  members  balance.  The  correlation  of  assumptions  will  have  a
significant effect in determining the ultimate claims liabilities, but to demonstrate the impact
due to changes in assumptions, assumptions had to be changed on an individual basis.  It
should be noted that movements in these assumptions are non-linear.
The  method  used  for  deriving  sensitivity  information  and  significant  assumptions  did  not
change from the previous period.
  Sensitivity
General insurance business sensitivities as at 31
December 2024
+5.0%
$
-5.0%
$
Claims outstanding   gross of reinsurance  (13,549)
13,549
Claims outstanding   net of reinsurance  (10,301)
10,301
  Sensitivity 
General insurance business sensitivities as at 31
December 2023
+5.0%
$
-5.0%
$
Claims outstanding   gross of reinsurance  (10,121)
10,121
Claims outstanding   net of reinsurance  (7,633)
7,633
48
Risk management continued
Claims development
The  tables  below  show  the  Syndicate's  cumulative  incurred  claims  development,  including
both  claims  notified  and  IBNR  for  each  underwriting  year,  together  with  the  cumulative
payments to date on a gross and net of reinsurance basis at the balance sheet date.
The Syndicate has elected to translate estimated claims and claims payments at a consistent
rate of exchange as determined by the balance sheet date.
The  uncertainty  associated  with  the  ultimate  claims  experience  of  an  underwriting  year  is
greatest when the underwriting year is at an early stage of development and the margin for
future experience potentially being more adverse than assumed is at its highest. As claims
develop, and the ultimate cost of the claims becomes more certain, the relative level of margin
should decrease. Due, however, to the uncertainty inherent in the claims estimation process,
initial reserves may not always be in a surplus. This is particularly so for large catastrophe
claims where uncertainly is initially great.
Pure underwriting year 
2021
2022
2023
2024
Total
$
$
$
$
$
Estimate of ultimate gross claims
At end of first underwriting year
15,865
32,368
43,731
57,359
149,323
One year later
57,296
107,236
107,543
272,075
Two years later
66,053
118,174
184,227
Three years later
54,930
54,930
Less gross claims paid
11,286
48,102
3,698
3,931
67,017
Gross claims reserves
270,989
Pure underwriting year 
2021
2022
2023
2024
Total
$
$
$
$
$
Estimate of ultimate net
claims
At end of first underwriting
year
11,890
21,309
33,580
41,409
108,188
One year later
44,815
79,265
84,810
208,890
Two years later
53,598
81,487
135,085
Three years later
46,491
46,491
Less net claims paid
11,177
29,419
3,673
3,914
48,183
Net claims reserves
206,014
49
Risk management continued
d)  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.
Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss by failing
to discharge an obligation. The Syndicate has the following policies and procedures in place
to mitigate the exposure to credit risk:
  Reinsurance  is  placed  with  counterparties  that  have  a  good  credit  rating  and
concentration  of  risk  is  avoided  by  following  policy  guidelines  in  respect  of
counterparties' limits. If the counterparty is downgraded or does not have a good credit
rating, then collateral is sought to mitigate any risk. This is monitored by the Syndicate
Board.
The tables below show the maximum exposure to credit risk (including an analysis of financial
assets exposed to credit risk) for the components of the statement of financial position. The
maximum  exposure  is  shown  gross,  before  the  effect  of  mitigation  through  collateral
agreements and the use of credit derivatives.
2024    $  
Neither
past due
n
or
impaired
assets
Past due
but not
impaired
assets
Gross
value of
impaired
assets
Impair
ment
allowance
Total
Shares and other variable
yield securities and units in
unit trusts
38,190
-
-
-
38,190
Debt securities and other
fixed income securities
61,405
-
-
-
61,405
Loans and deposits with
credit institutions
-
-
-
-
-
Syndicate loans to central
fund
-
-
-
-
-
Other investments
-
-
-
-
-
outstanding
64,975
-
-
-
64,975
Debtors arising out of
reinsurance operations
14,946
-
-
-
14,946
Debtors arising out of direct
insurance operations
126,129
58,510
-
-
184,639
Cash at bank and in hand
41,302
-
-
-
41,302
Overseas deposits
8,930
-
-
-
8,930
Other debtors and accrued
interest
173,583
25,990
-
-
199,573
Total
529,460
84,500
-
-
613,960
50
Risk management continued
2023    $  
Neither
past due
n
or
impaired
assets
Past due
but not
impaired
assets
Gross
value of
impaired
assets
Impair
ment
allowance
Total
Shares and other variable
yield securities and units in
unit trusts
57,473
-
-
-
57,473
Debt securities and other
fixed income securities
-
-
-
-
-
Loans and deposits with
credit institutions
-
-
-
-
-
Syndicate loans to central
fund
-
-
-
-
-
Other investments
-
-
-
-
-
outstanding
49,746
-
-
-
49,746
Debtors arising out of
reinsurance operations
105
-
-
-
105
Debtors arising out of direct
insurance operations
119,242
-
-
-
119,242
Cash at bank and in hand
40,975
-
-
-
40,975
Overseas deposits
5,853
-
-
-
5,853
Other debtors and accrued
interest
166,942
5,719
-
-
172,661
Total
440,336
5,719
-
-
446,055
51
Risk management continued
The table below sets out the age analysis of financial assets that are past due but not impaired
at the balance sheet date:
2024    $  
0-
3 months
past due
3-
6 months
past due
6-
12
months
past due
Greater
than 1 year
past due
Total
Shares and other variable
yield securities and units in
unit trusts
-
-
-
-
-
Debt securities and other
fixed income securities
-
-
-
-
-
Loans and deposits with
credit institutions
-
-
-
-
-
Syndicate loans to central
fund
-
-
-
-
-
Other investments
-
-
-
-
-
outstanding
-
-
-
-
-
Debtors arising out of
reinsurance operations
-
-
-
-
-
Debtors arising out of direct
insurance operations
-
-
-
-
-
Cash at bank and in hand
-
-
-
-
-
Overseas deposits
-
-
-
-
-
Other debtors and accrued
interest
-
-
-
-
-
Total 
-
-
-
-
-
52
Risk management continued
2023    $  
0-
3 months
past due
3-
6 months
past due
6-
12
months
past due
Greater
than 1 year
past due
Total
Shares and other variable
yield securities and units in
unit trusts
-
-
-
-
-
Debt securities and other
fixed income securities
-
-
-
-
-
Loans and deposits with
credit institutions
-
-
-
-
-
Syndicate loans to central
fund
-
-
-
-
-
Other investments
-
-
-
-
-
outstanding
-
-
-
-
-
Debtors arising out of
reinsurance operations
-
-
-
-
-
Debtors arising out of direct
insurance operations
-
-
-
-
-
Cash at bank and in hand
-
-
-
-
-
Overseas deposits
-
-
-
-
-
Other debtors and accrued
interest
-
603
837
4,279
5,719
Total
-
603
837
4,279
5,719
53
Risk management continued
The table below provides information regarding the credit risk exposure of the Syndicate at the
reporting  date  by  classifying  assets  according  to  independent  credit  ratings  of  the
counterparties. AAA is the highest possible rating.
2024  $  
AAA  AA  A  BBB  Other  Not
Rated
Total
Shares and other variable
yield securities and units in
unit trusts
-
-
38,190
-
-
-
38,190
Debt securities and other
fixed income securities  8,679
20,695
26,105
5,015
-
909
61,403
Loans and deposits with
credit institutions  -
-
-
-
-
-
-
Syndicate loans to central
fund  -
-
-
-
-
-
-
Other investments  -
-
-
-
-
-
-
outstanding  -
56,493
8,482
-
-
-
64,975
Debtors arising out of
reinsurance operations  -
-
14,946
-
-
78,458
93,404
Debtors arising out of direct
insurance operations  -
-
-
-
-
184,639
184,639
Cash at bank and in hand  -
-
41,302
-
-
-
41,302
Overseas deposits  2,256
348
519
402
184
5,221
8,930
Other debtors and accrued
interest  -
-
-
-
-
121,117
121,117
Total  10,935
77,536
129,544
5,417
184
390,344
613,960
54
Risk management continued
2023  $  
AAA
AA
A
BBB
Other
Not
Rated
Total
Shares and other variable
yield securities and units in
unit trusts
-
-
57,473
-
-
-
57,473
Debt securities and other
fixed income securities  -
-
-
-
-
-
-
Loans and deposits with
credit institutions  -
-
-
-
-
-
-
Syndicate loans to central
fund  -
-
-
-
-
-
-
Other investments  -
-
-
-
-
-
-
outstanding  -
43,252
6,494
-
-
-
49,746
Debtors arising out of
reinsurance operations  -
-
105
-
-
75,685
75,790
Debtors arising out of direct
insurance operations  -
-
-
-
-
119,242
119,242
Cash at bank and in hand  -
-
40,975
-
-
-
40,975
Overseas deposits  1,354
170
206
167
94
3,862
5,853
Other debtors and accrued
interest  -
-
-
-
-
96,976
96,976
Total  1,354
43,422
105,253
167
94
295,765
446,055
Maximum credit exposure
It is the Syndicate's policy to maintain accurate and consistent risk ratings across its credit
portfolio. This enables management to focus on the applicable risks and the comparison of
credit exposures across all lines of business.
55
Risk management continued
Liquidity risk
Liquidity risk is the risk that the Syndicate may not have enough cash to pay insurance claims
and  other  liabilities.  This  risk  is  reduced  by  reviewing  expected  cash
obligations on a weekly basis and keeping adequate cash on deposit to meet those obligations.
Further,  a  Liquidity  Committee  meets  monthly  to  review  liquidity  strength  and  forthcoming
liquidity needs on a monthly basis.
The table below summarises the maturity profile of the Syndicate's financial liabilities based
on remaining undiscounted contractual obligations, including interest payable and outstanding
claim liabilities based on the estimated timing of claim payments resulting from recognised
insurance liabilities. Repayments which are subject to notice are treated as if notice were to
be given immediately.
2024
$  
No stated
maturity
0-1 Year
1-3 Years
3-5 Years
> 5 years
Total
Claims
outstanding
-
56,889
91,390
53,138
69,572
270,989
Creditors
-
65,269
1
-
-
65,270
Total  -
122,158
91,391
53,138
69,572
336,259
2023
$  
No stated
maturity
0-1 Year
1-3 Years
3-5 Years
> 5 years
Total
Claims
outstanding
-
38,425
68,675
41,431
53,879
202,410
Creditors
-
49,082
-
-
-
49,082
Total
-
87,507
68,675
41,431
53,879
251,492
56
Risk management continued
Market risk
Market  risk  is  the  risk  that  the  fair  value  or  future  cash  flows  of  a  financial  instrument  or
insurance contract will fluctuate because of changes in market prices. Market risk comprises
three types of risk: currency risk, interest rate risk and other price risk. Other price risk has
been assessed as negligible, given that the Syndicate does not invest in equities.
The objective of market risk management is to manage and control market risk  exposures 
within acceptable parameters, while optimising the return on risk.
a)  Currency risk
Currency risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in foreign exchange rates.
The Syndicate's functional currency is USD and its exposure to foreign exchange risk arises
primarily  with  respect  to  transactions  in  Great  British  Pound,  Euro,  Canadian  Dollar  and
Australian Dollar. The Syndicate seeks to mitigate the risk by matching the estimated foreign
currency denominated liabilities with assets denominated in the same currency.
The  Syndicate  matches  its  currency  position,  so  it  holds  net  assets  across  a  number  of
currencies. The Syndicate takes into consideration the underlying currency of the Syndicate's
required capital and invests its assets proportionately across these currencies so as to protect
the solvency of the Syndicate, against variation in foreign exchange rates.
The following table summarises the exposure of the financial assets and liabilities to foreign
currency exchange risk at the reporting date, as follows, with all numbers reported in converted
sterling:
57
Risk management continued
2024  $  
  GBP
USD
EUR
CAD
AUD
Other
Total
Investments  6,189
74,906
5,132
13,366
-
-
99,593
technical provisions  15,079
93,880
14,854
4,169
717
4
128,703
Debtors  40,628
188,193
38,397
9,237
1,682
(94)
278,043
Other assets  27,739
40,175
32,196
3,613
3,482
172
107,377
Prepayments and
accrued income  11
166
-
17
49
1
244
Total assets  89,646
397,320
90,579
30,402
5,930
83
613,960
Technical provisions  (84,262)
(341,005)
(66,434)
(19,904)
(4,130)
(62)
(515,797)
Deposits received
from reinsurers  -
-
-
-
-
-
-
Creditors  271
(56,097)
(12,755)
(5,854)
(680)
-
(75,115)
Accruals and deferred
income  (699)
-
-
-
-
(166)
(865)
Total liabilities  (84,690)
(397,102)
(79,189)
(25,758)
(4,810)
(228)
(591,777)
Total capital and
reserves  4,956
218
11,390
4,644
1,120
(145)
22,183
58
Risk management continued
2023  $  
  GBP
USD
EUR
CAD
AUD
Other
Total
Investments  -
48,326
-
9,147
-
-
57,473
share of
technical
provisions  12,094
76,625
7,608
2,481
129
-
98,937
Debtors  39,269
116,097
33,221
8,354
(1,820)
(88)
195,033
Other assets  30,598
33,876
25,386
2,203
2,233
155
94,451
Prepayments
and accrued
income  14
109
-
26
12
-
161
Total assets  81,975
275,033
66,215
22,211
554
67
446,055
Technical
provisions  (72,909)
(271,778)
(49,945)
(16,427)
(253)
-
(411,312)
Deposits
received
from
reinsurers  -
-
-
-
-
-
-
Creditors  (4,185)
(42,183)
(6,571)
(12)
(191)
-
(53,142)
Accruals and
deferred
income  (713)
-
-
-
-
(150)
(863)
Total
liabilities  (77,807)
(313,960)
(56,516)
(16,439)
(443)
(150)
(465,315)
Total capital
and
reserves  4,168
(38,927)
9,699
5,772
111
(83)
(19,260)
Sensitivity to changes
The  table  below  gives  an  indication of  the  impact  on  profit  of  a  percentage change  in  the
relative strength of the US dollar against the value of the Sterling, Euro, Canadian Dollar, Euro
and  Australian  Dollar  simultaneously.  The  analysis  is  based  on  the  information  as  at  the
reporting date.
Currency risk   
  2024
2023
  $
$
10 percent increase in USD/GBP exchange rate  451
379
10 percent decrease in USD/GBP exchange rate  (551)
(463)
10 percent increase in USD/EUR exchange rate  1,035
882
10 percent decrease in USD/EUR exchange rate  (1,266)
(1,078)
10 percent increase in USD/CAD exchange rate  423
525
10 percent decrease in USD/CAD exchange rate  (517)
(641)
59
Risk management continued
b)  Interest rate risk
Interest rate risk is the risk that the value or future cash flows of a financial instrument will
fluctuate in response to changes in market interest rates
Floating rate instruments expose the Syndicate to cash flow interest risk, whereas fixed rate
instruments expose the Syndicate to fair value interest risk.
The analysis below is performed for reasonably possible movements in market interest rates
with  all  other  variables  held  constant,  showing  the  impact  on  the  result  before  tax  due  to
changes in fair value of financial assets (whose fair values are recorded in the profit and loss
Interest rate risk   
  2024
2023
  $
$
50 basis points increase in yield curves  (495)
-
50 basis points decrease in yield curves  495
-
Insurance liabilities are not discounted and therefore are not exposed to interest rate risk.
24. Post balance sheet events
The Syndicate will distribute the 2022 underwriting year profits to members during 2025.