1301_Accounts

MARKET BULLETIN

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Confidential

fidential

Confidential

Directors

and

administration

Managing

agent

Inigo Managing Agent Limited

Directors

-

the

directors named

below

held

office

during the year

and

up to the

date

of

signing the

annual

accounts

H

Davies

Non-Executive,

Chairman

A

Bowe

Non-Executive

S

Cifelli

Non-Executive

J

Dean

Non-Executive

T

Hanford

Non-Executive

R

Watson

Chief

Executive

Officer

S

Bridges

Chief

Financial

Officer

R

Merrett

Chief

Underwriting

Officer

V

Hartley

Chief

Risk

Officer

Managing

Agent's

secretary

C

Barrett

2

Confidential

9

Conﬁdenal

The directors of Inigo Managing Agent Limited (“IMAL”), the Managing Agent for Syndicate 1301 (“the Syndicate”),

present their report for the year ended 31 December 2024.

Review of the business and principal acvies

This annual report is prepared using the annual basis of accounng as required by Statutory Instrument No 1950 of

2008, the Insurance Accounts Direcve (Lloyd's Syndicate and Aggregate Accounts) Regulaons 2008 and applicable

United Kingdom Accounng Standards (UK Generally Accepted Accounng Pracce), including Financial Reporng

Standard 102, “The Financial Reporng Standard applicable in the United Kingdom and Republic of Ireland” (FRS102) and

Financial Reporng Standard 103 “Insurance Contracts” (FRS103).

The Syndicate's principal acvity is the transacon of general insurance and reinsurance business in the United Kingdom

at Lloyd's of London.

The Syndicate commenced wring a new porolio of insurance and reinsurance risks for the 2021 year of account under

new management through Inigo Corporate Member Limited (ICML). The Syndicate is fully aligned for the 2022 and prior

years of account, with 100% of capital provided ICML. For the 2023 and the 2024 year of account, a third party provided

addional capital of 1.5% and 3.0% respecvely to the Syndicate. Third-party capital for 2025 year of account is retained

at 3.0%.

The Syndicate trades through the Lloyd’s worldwide licenses and rang plaorm. It also beneﬁts from the Lloyd’s brand.

Lloyd's has an A+ (Superior) rang from A.M. Best, AA- (Very Strong) rang from Standard & Poor's and AA- (Very Strong)

rang from Fitch.

Results, performance and key performance indicators

The result for the year, which includes all years of account combined, was a proﬁt of $163.5m (2023: $138.8m proﬁt).

The net combined rao increased to 87.3% (2023: 85.4%).

The Syndicate’s key ﬁnancial performance indicators during the year were as follows:

Report of the directors of the Managing Agent

2024

$’000

2023

$’000

Growth

%

Gross premiums written 1,339,990 1,099,436

21.9%

Net premiums written 1,058,768 840,990

25.9%

Gross premiums earned 1,228,331 995,805 23.4%

Net premiums earned 957,358 750,834 27.5%

Profit for the financial year

163,523 138,785 17.8%

Net claims ratio

57.5% 55.3%

Net commission ratio

18.8% 19.1%

Net expense ratio

11.0% 11.0%

Net combined ratio

87.3% 85.4%

Confidential

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Confidential

•

▪

Confidential

•

Confidential

•

Confidential

•

Confidential

26

Conﬁdenal

The notes on pages 32 to 73 form an integral part of these ﬁnancial statements.

Income statement: technical account – general business

For the year ended 31 December 2024	Note	2024 $’000	2023 $’000
Written premiums, net of reinsurance
Gross premiums written	5	1,339,990	1,099,436
Outwards reinsurance premiums		(281,222)	(258,446)
		1,058,768	840,990
Change in the provision for unearned premiums
Gross amount		(111,659)	(103,631)
Reinsurers' share		10,249	13,475
	16	(101,410)	(90,156)
Earned premiums, net of reinsurance		957,358	750,834
Allocated investment return transferred from the non- technical account	10	45,231	27,220
Claims paid
Gross amount		(300,817)	(250,926)
Reinsurers’ share		60,569	60,052
	5	(240,248)	(190,874)
Change in the provision for claims
Gross amount		(326,941)	(235,629)
Reinsurers’ share		16,266	11,274
	16	(310,675)	(224,355)
Claims incurred, net of reinsurance		(550,923)	(415,229)
Net Operating Expenses	7	(284,087)	(225,988)
Balance on the technical account – general business		167,579	136,837

27

Conﬁdenal

Prior period comparaves were re-presented to conform with the latest Lloyd’s ﬁnancial statements template. There has

been no impact on proﬁt or net assets as a result of the updated presentaon.

All operaons relate to connuing acvies. The notes on pages 32 to 73 form an integral part of these ﬁnancial

statements.

Income statement: non-technical account

For the year ended 31 December 2024	Note	2024 $’000	2023 $’000
Balance on the technical account - general business		167,579	136,837
Investment income	10	40,260	21,267
Realised gains/(losses) on investments	10	2,570	(157)
Unrealised gains on investments	10	3,050	6,368
Investment expenses and charges	10	(649)	(258)
Total investment return	10	45,231	27,220
Allocated investment return transferred to technical account		(45,231)	(27,220)
Foreign exchange (loss)		(5,308)	(1,755)
Non-technical account - other income		1,347	4,167
Non-technical account – charges		(95)	(464)
Profit for the financial year		163,523	138,785
Other comprehensive income		-	-
Total comprehensive profit for the financial year		163,523	138,785

28

Conﬁdenal

The notes on pages 32 to 73 form an integral part of these ﬁnancial statements.

As at 31 December 2024	Note	2024 $’000	2023 $’000
Investments
Other financial investments		1,172,861	723,982
Deposits with ceding undertakings		-	-
	11	1,172,861	723,982
Reinsurers' share of technical provisions
Provision for unearned premiums		64,237	54,149
Claims outstanding		209,710	194,295
	16	273,947	248,444
Debtors
Debtors arising out of direct insurance operations	12	138,863	112,210
Debtors arising out of reinsurance operations	13	258,365	190,228
Other debtors	14	37	7,512
		397,265	309,950
Other assets
Cash at bank and in hand	20	37,694	63,833
Prepayments and accrued income
Accrued interest		7,871	3,924
Deferred acquisition costs	15	82,827	64,702
Other prepayments and accrued income		4,950	510
		95,648	69,136
Total assets		1,977,415	1,415,345

Statement of ﬁnancial posion: assetsStatement of ﬁnancial posion: assets

29

Conﬁdenal

The notes on pages 32 to 73 form an integral part of these ﬁnancial statements.

The Syndicate ﬁnancial statements on pages 26 to 73 were approved by the Board of Inigo Managing Agent Limited and

were signed on its behalf by:

S J Bridges

Director

6 March 2025

As at 31 December 2024	Note	2024 $’000	2023 $’000
Capital and reserves
Members' balances		260,064	139,387
Technical provisions
Provision for unearned premiums		502,567	393,849
Claims outstanding		1,057,048	739,045
	16	1,559,615	1,132,894
Creditors
Creditors arising out of direct insurance operations	17	1,794	4,315
Creditors arising out of reinsurance operations	18	113,541	115,306
Other creditors including taxation and social security	19	33,900	17,366
		149,235	136,987
Accruals and deferred income		8,501	6,077
Total liabilities		1,717,351	1,275,958
Total liabilities, capital and reserves		1,977,415	1,415,345

Statement of ﬁnancial posion: liabiliesStatement of ﬁnancial positon: liabilies

30

Conﬁdenal

The notes on pages 32 to 73 form an integral part of these ﬁnancial statements.

Members parcipate on syndicates by reference to years of account and their ulmate result, assets and liabilies are

assessed with reference to policies incepng in that year of account in respect of their membership of a parcular year.

The collecon of losses in 2023 of $39.0m relates to the 2020 and prior years of account for SGL No. 1 Limited, a corporate

member of the Enstar Group. These years of account were transferred through Reinsurance to Close (“RITC”) to Syndicate

2008 on 1 January 2023.

Prior period comparaves were re-presented to conform with the latest Lloyd’s ﬁnancial statements template. There has

been no impact on proﬁt or net assets as a result of the updated presentaon.

For the year ended 31 December 2024

	2024 $’000	2023 $’000
Members' balances brought forward at 1 January	139,387	(38,416)
Profit for the year	163,523	138,785
(Distribution of profit)/ Collection of losses	(42,846)	39,018
Members' balances carried forward at 31 December	260,064	139,387

Statement of change in members‘ balances

31

Conﬁdenal

For the year ended 31 December 2024	Note	2024 $’000	2023 $’000
Cash flows from operating activities:
Profit for the year		163,523	138,785
Adjustments
Increase in gross technical provisions		426,721	44,892
Increase/(decrease) in reinsurers' share of technical provisions		(25,503)	71,496
(Decrease) in debtors		(87,315)	(48,124)
Increase in creditors		12,248	28,387
Movement in other assets/liabilities		(24,087)	(32,556)
Investment return		(45,231)	(26,756)
Foreign exchange gains		10,479	1,475
Net cash inflow from operating activities		430,835	177,599
Cash flows from investing activities:
Purchases of equity and debt instruments		(728,569)	(512,457)
Sales of equity and debt instruments		276,021	262,496
Investment income received		40,260	21,110
Other		(572)	(6,667)
Net cash (outflow) from investing activities		(412,860)	(235,518)
Cash flow from financing activities:
(Distribution of profit)/ Collection of losses		(42,846)	39,018
Net cash (outflow)/inflow from financing activities		(42,846)	39,018
Net (decrease) in cash and cash equivalents		(24,871)	(18,901)
Cash and cash equivalents at 1 January		298,061	318,436
Foreign exchange on cash and cash equivalents		(10,479)	(1,474)
Cash and cash equivalents at 31 December	20	262,711	298,061

Confidential

Notes

to the

financial

statements

1. Basis of

preparation

The Syndicate

is a

vehicle

on which (re)insurance

business

is conducted

at Lloyd’s

on behalf of the corporate

capital provider.

ICML for 2022 and prior years of account,

and on behalf of ICML and a third party capital

provider

for 2023 and 2024 years of account

The

Syndicate

is managed by IMAL.The

address

of the Syndicate’s

Managing

Agent is

7th Floor.

One

Creechurch

Place,

London.

EC3A

5AY.

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

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

Reporting

Standard

applicable

in the UK

and

Republic of

Ireland

("FRS

102") as

published

in

September

2024,

and Financial

Reporting

Standard

103 Insurance

Contracts

("FRS 103") as

published

in September 2024.

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

have been recorded at fair value

through

the statement of profit or loss.

The

financial

statements

are presented

in US

Dollars

(“USD"),

which is

the Syndicate’s

functional

currency.

All

amounts

have

been rounded

to the nearest

thousand,

unless

otherwise

indicated.

As permitted by

FRS

103 the Syndicate has continued to apply the accounting policies that existed prior to

this standard

for its insurance

contracts.

Going

concern

The

Directors

of

the Managing

Agent have

prepared

the annual

accounts

on

a

going

concern

basis.

In

adopting

the going concern basis,

the Syndicate’s

current and forecast solvency and liquidity positions

for the next 12

months and beyond has been reviewed.

As part of the consideration of the appropriateness of adopting the

going

concern

basis,

the Directors

used scenario

analysis

to assess

the robustness

of

the Syndicate’s

solvency

and liquidity

positions.

Even in a

severe downside

scenario,

no material

uncertainty in relation

to going concern

has been identified.

This is due to the Syndicate’s strong capital and liquidity positions, which provide considerable

resilience to

these shocks,

underpinned

by the Syndicate’s

approach

to risk management,

which is described

in note 4.

In addition to the above, Lloyd’s require the Syndicate to perform an assessment of certain events on the

financial position of the Syndicate by running specific realistic disaster scenarios (RDS). It can be

demonstrated

that under the selected RDS

scenarios,

the Syndicate will continue

to operate

and any capital

requirements

can be provided

from the members'

FAL.

The capital requirements are set at the member level and a member is not allowed to participate in the

Syndicate

if they have

not met their capital

requirement and

the capacity

of

the Syndicate

is

adjusted

down to

reflect

this.

32

Confidential

•

Confidential

•

Notes

to the

financial

statements

4.

Risk

and

capital

management

(continued)

Sensitivity to insurance

risk (continued)

A

five percent Increase or decrease

in claims liabilities would have

the following effect on profit or loss

and

member

balance:

Sensitivity

+5.0%

$'000

-5.0%

$'000

General

Insurance

business

sensitivities

as

at 31

December 2024

Claims

outstanding

-

gross

of

reinsurance 52,852 (52,852)

Claims

outstanding

-

net of

reinsurance 42,367 (42.367)

Sensitivity

+5.0%

$'000

-5.0%

$'000

General

Insurance

business sensitivities

as

at 31

December 2023

Claims

outstanding

-

gross

of

reinsurance

36,952 (36,952)

Claims

outstanding

-

net of

reinsurance 27,238 (27,238)

The

table

as

at

31 December

2023

was

updated

to

include

the

sensitivity for claims

outstanding

on

a

gross,

as

well

as

a

net of

reinsurance

basis.

Credit risk

Credit

risk

is

the

risk

of

financial

loss

to

the

Syndicate

if

a

counterparty

fails

to

perform

its

financial

obligations

or fails

to perform

them in

a

timely fashion.

The Syndicate is exposed to credit risk through its day to day (re)insurance activities principally through

payments due for the (re)insurance coverages provided by the Syndicate and collections from its outwards

reinsurance counterparties and also

through the credit risk associated with the Syndicate’s investment and

banking

counterparties.

This

includes:

debt securities;

reinsurers'

share

of

insurance

liabilities;

amounts due

from intermediaries;

amounts

due

from reinsurers

in

respect of

settled

claims;

cash

and

cash

equivalents;

and

other debtors

and

accrued

interest.

The

IMAL

Credit

risk

policy

outlines

the

approach

to credit risk and

the

IMAL

Reinsurance

Security

and

Broker

Committee

is

responsible

for overseeing

the management

of credit risk from brokers

and

reinsurers.

45

Confidential

•

Confidential

Interest and similar income

Other income from investments

Total investment return

Confidential

72

Conﬁdenal

20. Cash and cash equivalents

2024 2023

$'000 $'000

Short term debt instruments presented within financial investments

225,017 234,228

Cash at bank and in hand

37,694 63,833

Total cash and cash equivalents

262,711 298,061

21. Related pares

ICML is the sole corporate capital provider for 2022 year of account. ICML provided 98.5% and 97% of the syndicate

capacity for the 2023 and 2024 years of account respecvely, and a third party provided the other 1.5% and 3%.

IMAL acts as the Managing Agent for the Syndicate. ICML and IMAL are wholly owned subsidiaries of the holding

company Inigo Limited. The 2020 & prior years of account were managed by Enstar Managing Agency Limited, and were

transferred through Reinsurance to Close (“RITC”) to Syndicate 2008 on 1 January 2023.

IMAL charged a Managing Agent fee of $12.0m (2023: $10.1m) to the Syndicate for its services for the 2024 calendar

year. At the balance sheet date, the Syndicate owed IMAL $3.2m (2023: $1.0m).

Inigo Limited employs the staﬀ for Inigo Group and provides services to the Syndicate, for which the costs are incurred

and recharged to Syndicate. Inigo Limited charged a total of $102.7m (2023: $80.8m) to the Syndicate in 2024. At the

balance sheet date, the Syndicate owed Inigo Limited $27.4m (2023: $16.0m).

22. Foreign Exchange Rates

The following currency exchange rates have been used for principal foreign currency transacons:

		2024			2023
	Start of period rate	Year-end rate	Average rate	Start of period rate	Year-end rate	Average rate
Australian dollar	1.47	1.62	1.52	1.47	1.47	1.51
Canadian dollar	1.32	1.44	1.37	1.35	1.32	1.35
Euro	0.91	0.97	0.92	0.93	0.91	0.92
Pound sterling	0.79	0.80	0.78	0.83	0.79	0.80
Japanese Yen	141.02	157.35	151.49	131.01	141.02	140.55
US dollar	1.00	1.00	1.00	1.00	1.00	1.00

Notes to the ﬁnancial statementsNotes to the ﬁnancial statements

Confidential