Accounts disclaimer
Important information about Syndicate Reports and Accounts Access to this document is restricted
to persons who have given the certification set forth below. If this document has been forwarded to
you and you have not been asked to give the certification, please be aware that you are only
permitted to access it if you are able to give the certification. The syndicate reports and accounts
set forth in this section of the Lloyd’s website, which have been filed with Lloyd’s in accordance with
the Syndicate Accounting Byelaw (No. 8 of 2005), are being provided for informational purposes
only. The syndicate reports and accounts have not been prepared by Lloyd’s, and Lloyd’s has no
responsibility for their accuracy or content. Access to the syndicate reports and accounts is not
being provided for the purposes of soliciting membership in Lloyd’s or membership on any
syndicate of Lloyd’s, and no offer to join Lloyd’s or any syndicate is being made hereby. Members of
Lloyd’s are reminded that past performance of a syndicate in any syndicate year is not predictive of
the related syndicate’s performance in any subsequent syndicate year. You acknowledge and agree
to the foregoing as a condition of your accessing the syndicate reports and accounts. You also
agree that you will not provide any person with a copy of any syndicate report and accounts
without also providing them with a copy of this acknowledgment and agreement, by which they will
also be bound.
Annual report and accounts 2024
Welcome to our Annual report 2024
As a leading global
specialist insurer, we are
passionate about bringing
an innovative and
progressive approach to
helping our clients
mitigate the risks of the
world. 2024 saw this
syndicate achieve its
highest written premium
ever, while focusing on
reinsuring cyber business
from other syndicates at
Lloyd's.
Contents
1
Highlights
2
Strategic report of the managing
agent
4
Managing agent’s report
10
Statement of managing agent’s
responsibilities
11
Independent auditor’s report to the
members of Syndicate 6107
14
Statement of comprehensive income
15
Balance sheet
16
Statement of changes in members’
balances
17
Cash flow statement
18
Notes to the syndicate annual
accounts
35
2022 underwriting year of account for
Syndicate 6107
36
Managing agent’s report
37
Statement of managing agent’s
responsibilities
38
Independent auditor’s report to the
members of Syndicate 6107 – 2022
closed year of account
41
Profit or loss account
42
Statement of changes in members'
balances
43
Balance sheet
44
Cash flow statement
45
Notes to the 2022 syndicate
underwriting year of account
49
Seven-year summary of closed year
results at 31 December 2024
50
Managing agent's corporate
information
Highlights
Syndicate capacity Profit for the financial year Combined ratio
£57.8m $5.9m 95%
(2023: £43.3m) (2023: $25.9m) (2023: 61%)
Gross premiums written Rate (decrease)/increase on renewals Net premiums written
$63.3m (4.2)% $63.8m
(2023: $43.5m) (2023: 0%) (2023: $46.2m)
Claims ratio Earned premiums, net of reinsurance Expense ratio
56% $48.9 39%
(2023: 34%) (2023: $57.4m) (2023: 27%)
www.beazley.com Beazley | Syndicate 6107 Annual report 2024
01
Strategic report of the managing agent
Overview
On the 2024 underwriting year, Syndicate 6107 ('the syndicate') reinsures a proportion of certain classes of cyber business
written by syndicates 623, 2623 and 3623. There was an increase in the reinsurance business written during 2024 as the
cede percentage increased on this ceded cyber business. This increase in cyber business was offset by the reduction in the
property treaty reinsurance book of the syndicate.
The capacities of the syndicates managed by Beazley Furlonge Limited ('BFL') are as follows:
2024 £m 2023 £m
623 887.2 818.6
2623 2,299.6 3,794.5
3622 37.0 33.8
3623 1,325.6 —
4321 — 33.1
5623 396.6 339.8
6107 57.8 43.3
Total
5,003.8 5,063.1
Year of account results
The 2022 underwriting year has closed with a profit of $11.6m, which represents a return on capacity of 13.5% attributable to
strong premium growth, rate increases on the Cyber Risks portfolio and favourable claims experience. The 2023 underwriting
year is currently forecast to close with a return on capacity of 10%. The 2024 underwriting year is currently forecast to be
profitable.
Rating environment
Premium rates for the underlying reinsured business decreased by 4.2% during 2024 (2023: flat, or nil). This has been driven
solely by the softening cyber market during 2024.
Combined ratio
The combined ratio is a measure of operating performance and represents the ratio of the syndicate's total costs (excluding
foreign exchange movements) to total net earned premium. The syndicate’s combined ratio for 2024 worsened to 95% (2023:
61%). This is mostly due to claims ratio increasing by 22 points.
Claims
The claims ratio is a measure of the syndicate's claims experience and represents the ratio of its net insurance claims to net
earned premium. The claims ratio of Syndicate 6107 has deteriorated to 56% in 2024 (2023: 34%). The claims ratio worsened
due to the variability of prior year claims releases year on year. In 2023 there were claims releases across the syndicate's
book. In 2024 while the Property Risks experienced prior year reserve releases, the cyber book demonstrated reserve
strengthening, arising from adverse development on older year risks.
2
Beazley | Syndicate 6107 Annual report 2024 www.beazley.com
Net operating expenses
Net operating expenses, including business acquisition costs, administrative expenses and profit commissions were $19.2m
(2023: $15.3m). The breakdown of these costs is shown below:
2024
2023
$m $m
Brokerage costs 7.0 7.9
Administrative and other expenses
7.5 6.4
Profit commission 4.7 1.0
Net operating expenses
1
19.2 15.3
1 A further breakdown of net operating expenses can be seen in note 4.
Brokerage costs as a percentage of net earned premium were approximately 14% (2023: 14%). Brokerage costs are deferred
and expensed over the life of the associated premiums in accordance with accounting guidelines. Administrative expenses
comprise primarily an overrider commission charged by the host syndicates. The expense ratio is a measure of the net
operating expenses to net earned premium. The expense ratio for 2024 is 39% (2023: 27%). The increase is driven by an
increase in reinsurance profit commission payable to syndicates 2623 and 623 as the 2022 YOA developed profitably over the
year.
Outlook
The 2023 underwriting year is currently forecast to close with a positive return on capacity of approximately 10%. This has been
predominantly driven by rate increases on the cyber book in previous years.
The 2024 underwriting year is developing well and is forecasting a positive return on capacity, with no significant claims events
to date.
Looking ahead to 2025, the syndicate will continue to focus on the Cyber Risks market. It will begin ceding cyber business from
across the Beazley Group. This will include ceding cyber business from Beazley Group's London Market, North American, and
European cyber book.
C C J Wong
Chief Financial Officer
5 March 2025
www.beazley.com Beazley | Syndicate 6107 Annual report 2024
03
Managing agent’s report
The managing agent presents its report for the year ended 31 December 2024 .
This annual report is prepared using the annual basis of accounting as required by Statutory Instrument No 1950 of 2008, the
Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 and applicable United Kingdom
Accounting Standards, including Financial Reporting Standard 102: The Financial Reporting Standard applicable in the United
Kingdom and Republic of Ireland and Financial Reporting Standard 103: Insurance Contracts.
Principal activity
The principal activity of Syndicate 6107 is the transaction of property reinsurance and cyber reinsurance business with
syndicates 623, 2623 and 3623 at Lloyd’s. In 2024, the syndicate only wrote cyber reinsurance business and will continue to
write only cyber reinsurance business in 2025.
Business review
A review of the syndicate’s activities and future outlook is included in the strategic report.
Risk governance and reporting
BFL’s Board of Directors (the 'Board') has the responsibility for defining and monitoring the risk appetite within which BFL and
the syndicates operate (collectively, ‘Beazley’), with key individuals and committees accountable for day-to-day management of
risks and controls. Regular reporting by the risk management team in Board meetings and senior management committees
ensures that risks are monitored and managed as they arise. Beazley is actively "future proofing" its structure across its three
platforms. One of these platforms is its London Wholesale platform which the managing agent governs. This platform focus will
allow strengthening of the managing agent’s leadership and further enhance platform-specific and entity governance, while
continuing to bolster its risk management structure. The managing agent continues to evolve its structure to deliver on this
governance framework.
Climate change/Responsible business
Led by Beazley plc’s Board and supported by the Boards of BFL, Beazley Insurance dac, and Beazley Insurance Company Inc,
Environmental, Social and Governance issues and climate related risks have become regular agenda items throughout 2024. In
March 2021 Beazley launched our first Responsible Business Strategy. This document, and the subsequent update which is
published alongside the Beazley plc annual report and accounts ('ARA'), sets out the goals and targets across a wider range of
sustainability issues, including climate change.
In addition to the summary Responsible Business report, Beazley plc discloses its compliance with the Task Force on Climate-
Related Disclosures ('TCFD') recommendations at the consolidated Group level in the Beazley plc annual report and accounts
produced annually. The 2024 Beazley plc ARA was published on the Group's website in March 2025.
Although not specifically listed in the risk categories detailed further in this report, the Board of BFL deems climate risk to be
inherently embedded within all risks managed across the syndicate.
Risk management
Beazley prides itself on understanding the drivers of risk across the syndicate. The risk management function supports and
challenges management in effectively managing those risks. During the year, Beazley continued to enhance, roll out and embed
elements of the risk management framework. Beazley has continued working with our colleagues across the first and second
lines of defence to support the syndicate strategy, including challenging the oversight of climate-related risks (covering physical,
transition and litigation) and journey in digitisation. The details of the performance of the risk management framework are
considered further in this report.
4
Beazley | Syndicate 6107 Annual report 2024 www.beazley.com
Risk management oversight and framework
The Board delegates direct oversight of the risk management function and framework to its Risk Committee. The Board
delegates executive oversight of the risk management function and framework to the Beazley plc executive Committee, which
fulfils this responsibility primarily through its risk and regulatory Committee.
The risk management framework establishes the approach to identifying, measuring, mitigating, monitoring, and reporting on
principal risks. The risk management framework supports Beazley's strategy and objectives.
Beazley has adopted a ‘three lines of defence’ model, in which the risk management function is part of the second line of
defence. Ongoing communication and collaboration across the three lines of defence ensures that Beazley identifies and
manages risks effectively.
The Board approves the company’s risk appetite statements at least annually and receives updates on monitoring against risk
appetites throughout the year. This includes an assessment of principal risks.
A suite of reports from the risk management function support senior management and the Board in discharging their oversight
and decision-making responsibilities throughout the year. The risk management function's reports include updates on risk
appetite, risk profiles, stress and scenario testing (including reverse stress testing) and analysis, emerging and heightened
risks, and the Own Risk and Solvency Assessment (ORSA) report for BFL.
The business operates a control environment which supports mitigating risks to stay within risk appetite. The risk management
function reviews and challenges the control environment through various risk management activities (e.g. risk opinions, risk
reviews etc). In addition, the risk management function works with the capital modelling and exposure management teams,
particularly in relation to validation of the internal model, preparing parts of the ORSA, monitoring risk appetite and the business
planning process.
The risk management plan considers, among other inputs, the inherent and residual risk scores for the risks in the risk
registers. The risk management function also incorporates results from internal audits and other assurance activities into its
risk assessment process. The internal audit function considers the risk management framework in its audit universe to derive a
risk-based audit plan.
The approach to identifying, managing and mitigating emerging risks includes inputs from across the business, analysis of
lessons learned following incidents and industry thought leadership. The approach considers the potential materiality and
likelihood of impacts, which helps prioritise emerging risks which the company monitors or undertakes focused work on. Key
emerging risks in 2024 included geopolitical and conflict escalation, artificial intelligence, systemic cyber attack, political and
social unrest, supply chain risk and climate change. The Board carries out a robust assessment of the emerging risks at least
annually.
Principal risks
Principal risks are under continuous review with ongoing risk assessments. Whilst our risk profile has remained broadly stable
in 2024, we continue to focus on operational and regulatory risks, to ensure that our control environment keeps pace with
business change and growth initiatives. The table below summarises the principal risks the company faces, and the control
environment, governance and oversight that mitigate these risks. Our approach to managing the risks arising from climate
change are set out within the TCFD section of Beazley plc’s annual Report.
Legend for principal risks table below
Risk outlook
Increasing Stable Decreasing
www.beazley.com Beazley | Syndicate 6107 Annual report 2024
05
Managing agent’s report continued
Insurance
Risk of loss arising from uncertainties and deviations of the
occurrence, frequency, amount and timing of insurance
premium and claim liabilities relative to the assumptions at
the time of underwriting. This includes risk from
underwriting such as market cycle, catastrophe,
reinsurance and reserves.
• Market cycle: potential systematic mispricing of medium-
or long-tailed business that does not support revenue to
invest and cover future claims;
• Catastrophe: one or more large events caused by nature
(e.g. hurricane, windstorm, earthquake and/or wildfire) or
mankind (e.g. coordinated cyber-attack, global pandemic,
losses linked to an economic crisis, an act of terrorism
or an act of war and/or a political event) impacting a
number of policies, and therefore giving rise to multiple
losses;
• Reinsurance arrangements: reinsurance may not be
available or purchases do not support the business
underwritten (e.g. mismatch); and
• Reserving: reserves may not be sufficiently established
to reflect the ultimate paid losses.
Insurance risk is principally managed through pricing tools, analysis of
macro trends and claim frequency/severity and ensures exposure is well
diversified and not overly concentrated in any one area, or line of
business.
Our strategic approach to exposure management and a comprehensive
internal and external reinsurance programme helps to reduce volatility of
profits in addition to managing net exposure through the transfer of risk.
Our prudent and comprehensive approach to reserving ensures
adequate provisions are made for the payment of all valid claims. High
calibre claims and underwriting professionals deliver expert service and
claims handling to insureds, ensuring good customer outcomes.
Beazley carries out periodic analysis to identify significant areas of
concentration risk across its business.
Beazley makes extensive use of modelling, including catastrophe
modelling, the use of our Solvency II model and stress and scenario
testing to ensure insurance risk is within our risk appetite.
Insurance risk outlook continues to be stable as BFL manages the
market cycle across all the lines of business.
Credit
The risk of loss resulting from default in obligations due or
changes in the credit standing of either issuers of
securities, counterparties or any debtors which the
company is exposed to. Exposure to credit risk largely
emanates from the use of reinsurers, brokers, and
coverholders, of which reinsurance asset is the largest
exposure for the syndicate.
Beazley maintains long-term partnerships with strategic reinsurance
partners to support it throughout the insurance cycle and during
potential catastrophic claim events. Beazley uses a range of traditional
and alternative reinsurance mechanisms to diversify reinsurance credit
risk. All reinsurers must meet stringent internal approval criteria,
overseen by the Reinsurance Security Committee. Credit risk from
brokers and coverholders remains low.
The credit risk outlook therefore remains stable, as Beazley manages
reinsurance, broker and coverholder credit risks, maintaining low levels
of aged and/or bad debt.
Group
The contagion risk that an action or inaction of one part of
the Beazley Group adversely affect an area of the
syndicate. This also includes a deterioration in culture
which leads to inappropriate behaviour, actions and/or
decisions including dilution of culture or negative impact on
the brand.
Risk culture is grounded in principles of transparency, accountability,
and awareness. An effective risk culture reflects a mature risk
management function, encourages prudent risk-taking, and fosters
awareness of existing and emerging risks. The Executive Committee and
the Board oversee Group risk, with regular monitoring conducted by the
Risk Management function and overseen by the Risk Committee.
Our Group risk outlook remains stable, with the Executive Committee
continuously managing and improving our risk culture through ongoing
monitoring and enhancements.
Principal risks and summary descriptions Mitigation and monitoring
6
Beazley | Syndicate 6107 Annual report 2024 www.beazley.com
Liquidity
Assets are not available or adequate in order to settle
financial obligations when they fall due.
By actively managing its liquidity needs, Beazley maximizes flexibility in
handling its financial assets. This proactive approach ensures that
clients and creditors are financially protected. Beazley regularly
evaluates the liquidity position of the syndicate.
Our liquidity risk outlook remains stable as we maintain adequate levels
of liquidity.
Regulatory and legal
Non-compliance with regulatory and legal requirements,
failing to operate in line with the relevant regulatory
framework in the territories where the syndicate operates.
This may lead to financial loss (fines, penalties), sanctions,
reputational damage, loss of confidence from regulators,
regulatory intervention, inability to underwrite or pay claims.
Beazley maintains active ongoing dialogue with its principal regulators. A
suite of compliance controls are in place to support the nature, scale
and complexity of the business which are overseen by the Risk and
Regulatory Committee. The Company wants to have a trusting and
transparent relationship with regulators, ensuring coordinated
communication and the following of robust processes, policies and
procedures in the business. In addition, key staff, particularly those who
hold defined roles with regulatory requirements, are experienced and
maintain regular dialogue with regulators.
Beazley is implementing a horizon scanning service to support in-house
activity to identify relevant regulatory and legal matters and emerging
policy so the business can consider their potential impacts on the
business.
Considering the needs of our clients in everything our business does is
of utmost importance to Beazley. We deliver good customer outcomes to
our clients throughout the product lifecycle. The Conduct Review Group
oversees this risk.
The Company has a very low appetite for regulatory and legal risk,
therefore maintaining strong and open relationships with our regulators
is of paramount importance. The outlook for this is increasing as
throughout 2024 and into 2025, we have seen increased engagement
with our regulators as the regulatory environment becomes more
complex and Beazley grows.
Principal risks and summary descriptions Mitigation and monitoring
www.beazley.com Beazley | Syndicate 6107 Annual report 2024
07
Managing agent’s report continued
Principal risks and summary descriptions Mitigation and monitoring
Operational
Failures of people, processes and systems or the impact of
an external event on operations (e.g., a cyber-attack having
a detrimental impact on operations) including
transformation and change related risks.
Beazley attracts and nurtures talented colleagues who champion
diversity of thought, fostering a culture of empowerment, collaboration,
and innovation. This commitment creates an environment of employee
wellbeing, where high-calibre, motivated, loyal, and productive individuals
are empowered to perform their duties competently.
Beazley continues investing in technology and re-engineering processes
to support our operations, overseen by the Operations Committee. Our
business continuity, disaster recovery, and incident response plans
ensure the stability of our processes and systems, enabling our team to
consistently deliver optimal outcomes for our clients.
We expect technology and cyber resilience to continue being key focus
areas. We are dedicated to collaborating with external agencies, and
maintaining robust controls over information security, data, and
operational resilience. We regularly review incident response plans and
continue to invest in cybersecurity training for our employees.
While maintaining a low appetite for operational risk, we observed an
increased frequency of reported risk incidents during 2024, coinciding
with an increasingly complex operating environment. The risk
management function continues to work with first line teams to ensure
that controls and processes in place remain appropriate as the
operating landscape evolves.
Our risks and controls are formally monitored and reported through a
risk and control self-assessment process and the use of quantifiable
Key Risk Indicators.
The outlook for this risk is increased as we continue to strengthen
operationally and realise the benefits of ongoing initiatives to modernise
our systems and processes.
Strategic
The risk of loss resulting from ineffective strategic direction
and implementation that leads to inadequate profitability,
insufficient capital, financial loss and/or reputational
damage for BFL.
Pervasive risks impacting multiple areas of Beazley (e.g.,
reputation, and sustainability) occurring through real or
perceived action, or inaction, by a regulatory body, market
and/or third-party provider.
A negative change to Beazley’s reputation would have a
detrimental impact to the syndicates performance and
public perception.
Beazley consistently addresses key strategic opportunities and
challenges, striving to be the highest performing and most sustainable
specialist insurer. We ensure that we recognise, understand, discuss,
and develop action plans for significant strategic priorities in a timely
manner, while maintaining operational effectiveness and brand
reputation.
Beazley creates an environment that attracts, retains and develops high
performing talent with diverse perspectives, encouraging exploration,
creation, and innovation. By investing in understanding the complexities
of the risks our clients face and deploying our expertise where it adds
value, we thrive. The Executive Committee and the Board oversee these
risks.
Our commitment is to create a sustainable business for our people,
partners, and planet through responsible business goals. We embed
sustainability principles and ambitions, focusing on reducing our carbon
footprint (refer to the Group's TCFD report for more details on climate-
related risks and mitigations), contributing to our social environment,
and practicing good governance. While we consider market
developments, we evaluate each on its individual merits, weighing both
potential opportunities and risks.
As we consolidate and embed our achievements from 2024, our
strategic risk outlook remains stable.
8
Beazley | Syndicate 6107 Annual report 2024 www.beazley.com
Directors
A list of Directors of the managing agent who held office during the year can be found on page 50 of this syndicate
annual report.
Syndicate annual general meeting
In accordance with the Syndicate Meetings (Amendment No. 1) Byelaw (No. 18 of 2000) the managing agent does not propose
to hold a syndicate annual meeting this year. Members may object to this proposal within 21 days of this notice. Any objections
must be made in writing to the managing agent.
Disclosure of information to the auditor
The Directors of the managing agent who held office at the date of approval of this managing agent’s report confirm that, so far
as they are each aware, there is no relevant audit information of which the syndicate’s auditor is unaware; and each Director
has taken all the steps that they ought to have taken as a Director to make themselves aware of any relevant audit information
and to establish that the syndicate’s auditor is aware of that information.
Auditor
Pursuant to Section 14(2) of Schedule 1 of the Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts)
Regulations 2008, the auditor will be deemed to be reappointed and Ernst & Young LLP will therefore continue in office.
On behalf of the Board
C C J Wong
Chief Financial Officer
5 March 2025
www.beazley.com Beazley | Syndicate 6107 Annual report 2024
09
Statement of managing agent’s responsibilities
The Directors of the managing agent are responsible for preparing the syndicate financial statements in accordance with
applicable law and regulations.
The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 requires the Directors of the
managing agent to prepare their syndicate annual accounts for each financial year. Under that law they have elected to prepare
the annual accounts in accordance with UK Accounting Standards and applicable law (UK Generally Accepted Accounting
Practice), including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland.
Under Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 the Directors of the
managing agent must not approve the annual accounts unless they are satisfied that they give a true and fair view of the state
of affairs of the syndicate and of the profit or loss of the syndicate for that period. In preparing these financial statements, the
Directors of the managing agent are required to:
• select suitable accounting policies and then apply them consistently;
• make judgements and estimates that are reasonable and prudent;
• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and
explained in the annual accounts;
• assess the syndicate’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern;
and
• use the going concern basis of accounting unless they either intend to cease trading, or have no realistic alternative but to do
so.
The Directors of the managing agent are responsible for keeping adequate accounting records that are sufficient to show and
explain the syndicate’s transactions and disclose with reasonable accuracy at any time the financial position of the syndicate
and enable them to ensure that the financial statements comply with the Insurance Accounts Directive (Lloyd’s Syndicate and
Aggregate Accounts) Regulations 2008. They are responsible for such internal control as they determine is necessary to enable
the preparation of financial statements that are free from material misstatement, whether due to fraud or error and have
general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the company and to
prevent and detect fraud and other irregularities.
The Directors of the managing agent are responsible for the maintenance and integrity of the syndicate and financial
information included on the syndicate’s website. Legislation in the UK governing the preparation and dissemination of financial
statements may differ from legislation in other jurisdictions.
The Directors of the managing agent are required to comply with the requirements of Section 1 of the Lloyd’s Syndicate
Accounts Instructions version 2.1 as modified by the Frequently Asked Questions version 1.1 issued by Lloyd’s (the Syndicate
Accounts Instructions).
The Directors of the managing agent are responsible for the preparation and review of the iXBRL tagging that has been applied
to the syndicate accounts in accordance with the instructions issued by Lloyd's, including designing, implementing and
maintaining systems, processes and internal controls to result in tagging that is free from material non-compliance with the
instructions issued by Lloyd's, whether due to fraud or error.
On behalf of the Board
C C J Wong
Chief Financial Officer
5 March 2025
10
Beazley | Syndicate 6107 Annual report 2024 www.beazley.com
Independent auditor’s report to the
members of Syndicate 6107
Opinion
We have audited the syndicate annual accounts of Syndicate 6107 (‘the syndicate’) for the year ended 31 December 2024
which comprise the Statement of Comprehensive Income, the Statement of changes in Members’ Balances, the Balance Sheet,
the Cash Flow statement and the related notes 1 to 19, including a summary of significant accounting policies. The financial
reporting framework that has been applied in their preparation is applicable law including The Insurance Accounts Directive
(Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008, United Kingdom Accounting Standards including FRS 102 “The
Financial Reporting Standard applicable in the UK and Republic of Ireland” and FRS 103 “Insurance Contracts” (United Kingdom
Generally Accepted Accounting Practice), and Section 1 of the Lloyd’s Syndicate Accounts Instructions version 2.1 as modified
by the Frequently Asked Questions Version v1.1 issued by Lloyd’s (the Syndicate Accounts Instructions).
In our opinion, the syndicate annual accounts:
• give a true and fair view of the syndicate’s affairs as at 31 December 2024 and of its profit for the year then ended;
• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
• have been prepared in accordance with the requirements of The Insurance Accounts Directive (Lloyd’s Syndicate and
Aggregate Accounts) Regulations 2008 and the Syndicate Accounts Instructions.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)), The Insurance Accounts
Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008, the Syndicate Accounts Instructions, and other
applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of
the syndicate annual accounts section of our report. We are independent of the syndicate in accordance with the ethical
requirements that are relevant to our audit of the syndicate annual accounts in the UK, including the FRC’s Ethical Standard as
applied to other entities of public interest, and we have fulfilled our other ethical responsibilities in accordance with these
requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the syndicate annual accounts, we have concluded that the managing agent’s use of the going concern basis of
accounting in the preparation of the syndicate annual accounts is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that,
individually or collectively, may cast significant doubt on the syndicate’s ability to continue as a going concern for a period of 12
months from when the syndicate annual accounts are authorised for issue.
Our responsibilities and the responsibilities of the managing agent with respect to going concern are described in the relevant
sections of this report. However, because not all future events or conditions can be predicted, this statement is not a guarantee
as to the syndicate’s ability to continue as a going concern.
Other information
The other information comprises the information included in the annual report and accounts other than the syndicate annual
accounts and our auditor’s report thereon. The Directors of the managing agent are responsible for the other information
contained within the annual report and accounts.
Our opinion on the syndicate annual accounts does not cover the other information and, except to the extent otherwise explicitly
stated in this report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially
inconsistent with the syndicate annual accounts or our knowledge obtained in the course of the audit or otherwise appears to
be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to
determine whether this gives rise to a material misstatement in the syndicate annual accounts themselves. If, based on the
work we have performed, we conclude that there is a material misstatement of the other information, we are required to report
that fact.
We have nothing to report in this regard.
11
Beazley | Syndicate 6107 Annual report 2024 www.beazley.com
Independent auditor’s report to the
members of Syndicate 6107 continued
Opinions on other matters prescribed by The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate
Accounts) Regulations 2008
In our opinion, based on the work undertaken in the course of the audit:
• the information given in the managing agent’s report for the financial year in which the syndicate annual accounts are
prepared is consistent with the syndicate annual accounts; and
• the managing agent’s report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the syndicate and its environment obtained in the course of the audit, we
have not identified material misstatements in the managing agent’s report.
We have nothing to report in respect of the following matters where The Insurance Accounts Directive (Lloyd’s Syndicate and
Aggregate Accounts) Regulations 2008 requires us to report to you, if in our opinion:
• the managing agent in respect of the syndicate has not kept adequate accounting records; or
• the syndicate annual accounts are not in agreement with the accounting records; or
• certain disclosures of the managing agents’ emoluments specified by law are not made; or
• we have not received all the information and explanations we require for our audit.
Responsibilities of the managing agent
As explained more fully in the Statement of Managing Agent’s Responsibilities set out on page 10 the managing agent is
responsible for the preparation of the syndicate annual accounts and for being satisfied that they give a true and fair view, and
for such internal control as the managing agent determines is necessary to enable the preparation of the syndicate annual
accounts that are free from material misstatement, whether due to fraud or error.
In preparing the syndicate annual accounts, the managing agent is responsible for assessing the syndicate’s ability to continue
in operation, disclosing, as applicable, matters related to its ability to continue in operation and using the going concern basis
of accounting unless the managing agent either intends to cease to operate the syndicate, or has no realistic alternative but to
do so.
Auditor’s responsibilities for the audit of the syndicate annual accounts
Our objectives are to obtain reasonable assurance about whether the syndicate annual accounts as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always
detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of these syndicate annual accounts.
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect irregularities, including fraud. The risk of not detecting a material misstatement due
to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for
example, forgery or intentional misrepresentations, or through collusion.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. However, the
primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the managing
agent and management.
12
Beazley | Syndicate 6107 Annual report 2024 www.beazley.com
Our approach was as follows:
• We obtained a general understanding of the legal and regulatory frameworks that are applicable to the syndicate and
determined that the most significant are direct laws and regulations related to elements of Lloyd’s Byelaws and Regulations,
and the financial reporting framework (UK GAAP), and requirements referred to by Lloyd’s in the Syndicate Accounts
instructions. Our considerations of other laws and regulations that may have a material effect on the syndicate annual
accounts included permissions and supervisory requirements of Lloyd’s of London, the Prudential Regulation Authority (‘PRA’)
and the Financial Conduct Authority (‘FCA’).
• We obtained a general understanding of how the syndicate is complying with those frameworks by making enquiries of
management, internal audit, and those responsible for legal and compliance matters of the syndicate. In assessing the
effectiveness of the control environment, we also reviewed significant correspondence between the syndicate, Lloyd’s of
London and other UK regulatory bodies; reviewed minutes of the Board and Risk Committee of the managing agent; and
gained an understanding of the managing agent’s approach to governance.
• For direct laws and regulations, we considered the extent of compliance with those laws and regulations as part of our
procedures on the related syndicate annual accounts’ items.
• For both direct and other laws and regulations, our procedures involved: making enquiries of the Directors of the managing
agent and senior management for their awareness of any non-compliance of laws or regulations, enquiring about the policies
that have been established to prevent non-compliance with laws and regulations by officers and employees, enquiring about
the managing agent’s methods of enforcing and monitoring compliance with such policies, and inspecting significant
correspondence with Lloyd’s, the FCA and the PRA
• The syndicate operates in the insurance industry which is a highly regulated environment. As such the Senior Statutory
Auditor considered the experience and expertise of the engagement team to ensure that the team had the appropriate
competence and capabilities, which included the use of specialists where appropriate.
• We assessed the susceptibility of the syndicate’s annual accounts to material misstatement, including how fraud might occur
by considering the controls that the managing agent has established to address risks identified by the managing agent, or
that otherwise seek to prevent, deter or detect fraud. We also considered areas of significant judgement, complex
transactions, performance targets, economic or external pressures and the impact these have on the control environment.
Where this risk was considered to be higher, we performed audit procedures to address each identified fraud risk, including:
– Reviewing accounting estimates for evidence of management bias. Supported by our Actuaries, we assessed if there were
any indicators of management bias in the valuation of insurance liabilities and the recognition of estimated premium
income.
– Evaluating the business rationale for significant and/or unusual transactions.
• These procedures included testing manual journals and were designed to provide reasonable assurance that the syndicate
annual accounts were free from fraud or error.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting
Council’s website at https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Other matter
Our opinion on the syndicate annual accounts does not cover the iXBRL tagging included within these syndicate annual
accounts, and we do not express any form of assurance conclusion thereon.
Use of our report
This report is made solely to the syndicate’s members, as a body, in accordance with The Insurance Accounts Directive (Lloyd’s
Syndicate and Aggregate Accounts) Regulations 2008. Our audit work has been undertaken so that we might state to the
syndicate’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the
fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the syndicate and the
syndicate’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Niamh Byrne (Senior Statutory Auditor)
for and on behalf of Ernst & Young LLP, Statutory Auditor
London
5 March 2025
www.beazley.com Beazley | Syndicate 6107 Annual report 2024
13
Statement of comprehensive income
for the year ended 31 December 2024
| 2024 | 2023 | |
Notes | $'000 | $'000 |
| Gross premiums written 3 | | |
| Outward reinsurance premiums | | |
Premiums written, net of reinsurance | | |
Changes in unearned premium | ||
| Change in the gross provision for unearned premiums 12 | ( | |
Change in the provision for unearned premiums, reinsurers’ share 12 | ( | ( |
| Net change in the provision for unearned premiums | ( | |
Earned premiums, net of reinsurance | | |
| Allocated investment return transferred from the non-technical account 6 | | |
Claims paid | ||
Gross amount 12 | ( | ( |
Reinsurers’ share 12 | | |
| Net claims paid | ( | ( |
Change in the provision for claims | ||
| Gross amount 12 | | |
| Reinsurers' share 12 | ( | ( |
| Net change in provision for claims | ( | |
Claims incurred, net of reinsurance | ( | ( |
Net operating expenses 4 | ( | ( |
Balance on the technical account - general business | | |
| Investment income 6 | | |
| Total investment income | | |
| Allocated investment return transferred to general business technical account | ( | ( |
| Gain/(loss) on foreign exchange | | ( |
Total comprehensive income for the financial year | | |
There were no other comprehensive gains or losses in the year.
The notes on pages 18 to 34 form part of these financial statements.
14
Beazley | Syndicate 6107 Annual report 2024 www.beazley.com
Balance sheet
as at 31 December 2024
2024
2023
*restated
Notes
$'000 $'000
Assets
Reinsurers' share of technical provisions
Provision for unearned premiums 12 — 821
Claims outstanding 12 14,192 24,968
Debtors
Debtors arising out of reinsurance operations
8
Other debtors 9 87,082 105,879
Other assets
Cash at bank and in hand
Prepayments and accrued income
Deferred acquisition costs 10 9,875 4,558
Other prepayments and accrued income 927 934
Total assets
Capital and reserves
Members' balances 22,376 44,039
Liabilities
Technical provisions
Provision for unearned premiums 12 31,660 17,584
Claims outstanding 12 111,358 113,609
Creditors
Creditors arising out of reinsurance operations 13 5,612 5,670
Other creditors 14 1,532 1,676
Accruals and deferred income
Total liabilities
Total liabilities, capital and reserves
*Certain balances have been restated due to a voluntary change in accounting policy. Refer to note 18.
The notes on pages 18 to 34 form part of these financial statements.
The syndicate annual accounts on pages 14 to 34 were approved by the Board of Beazley Furlonge Limited on 5 March 2025
and were signed on its behalf by:
P J Bantick C C J Wong
Director Chief Financial Officer
www.beazley.com Beazley | Syndicate 6107 Annual report 2024
15
Statement of changes in members’ balances
for the year ended 31 December 2024
2024
2023
*restated
$'000 $'000
Members’ balances brought forward at 1 January 44,039 17,460
Total comprehensive income for the financial year 5,871 25,999
Loss collected on closure of underwriting year — 801
Payments of profit to members' personal reserve funds (27,235 ) —
Member agent fees (292 ) (209 )
Other
(7 )
(12 )
Members’ balances carried forward at 31 December
*Certain balances have been restated due to a voluntary change in accounting policy. Refer to note 18.
Members participate in syndicates by reference to years of account (YOA) and their ultimate result, assets and liabilities are
assessed with reference to policies incepting in that YOA in respect of their membership of a particular year.
16
Beazley | Syndicate 6107 Annual report 2024 www.beazley.com
Cash flow statement
for the year ended 31 December 2024
2024
2023
*restated
Notes
$'000 $'000
Cash flows from operating activities
Total comprehensive income 5,871 25,999
Adjustments for:
Increase/(decrease) in gross technical provisions
12
Decrease in reinsurers' share of gross technical provisions
12
Decrease/(increase) in debtors 14,182 (3,456 )
(Increase)/decrease in other assets/liabilities (5,265 ) 3,503
Decrease in creditors (202 ) (5,438 )
Investment return
6
(3,336 ) (3,628 )
Foreign exchange 213 (593 )
Net cash flow from operating activities
Cash flows from investing activities
Investment income received 3,336 3,628
Net cash flow from investing activities
Cash flows from financing activities
Distribution of profit (27,235 ) —
Collection of losses — 801
Other (299 ) (221 )
Net cash flow from financing activities
(27,534 ) 580
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the year 25,727 23,208
Foreign exchange on cash and cash equivalents (213 ) 593
Cash and cash equivalents at the end of the year
*Certain balances have been restated due to a voluntary change in accounting policy. Refer to note 18.
The notes on pages 18 to 34 form part of these financial statements.
www.beazley.com Beazley | Syndicate 6107 Annual report 2024
17
1 Accounting policies
Basis of preparation
Syndicate 6107 (the ‘syndicate’) comprises a group of members of the Society of Lloyd’s that underwrites insurance business
in the London Market. The managing agent of the syndicate is Beazley Furlong Limited ('BFL'), whose registered address and
principal place of business is 22 Bishopsgate, London, EC2N, 4BQ. The ultimate controlling party of BFL is Beazley plc, a
company incorporated in England and Wales.
The syndicate annual accounts have been prepared in accordance with the Insurance Accounts Directive (Lloyd’s Syndicate and
Aggregate Accounts) Regulations 2008, applicable Accounting Standards in the United Kingdom and the Republic of Ireland,
including Financial Reporting Standard 102 ('FRS 102'), Financial Reporting Standard 103 ('FRS 103') in relation to insurance
contracts, and the Lloyd’s Syndicate Accounts Instructions version 2.1 as modified by the Frequently Asked Questions version
1.1 issued by Lloyd’s.
The financial statements have been prepared on the historic cost basis, except for financial assets at fair value through profit or
loss which are measured at fair value. The principal accounting policies applied in the preparation of these financial statements
are set out below. The policies have been consistently applied to all periods presented, unless otherwise stated. All amounts
presented are stated in US dollars, being the syndicate’s functional currency, and in thousands, unless noted otherwise.
Previously, these financial statements were presented in millions of US dollars. The change from presenting in millions to
presenting in thousands has been applied for the first time in these financial statements for the year ended 31 December
2024.
Going concern
The financial statements of the syndicate have been prepared on a going concern basis. The syndicate’s business activities,
together with the factors likely to affect its future development, performance and position, are set out in the managing agent's
report pages 4 - 9. In addition, note 2 includes the syndicate’s risk management objectives and the entity’s objectives, policies
and processes for managing its capital. The syndicate has sufficient capital for each year of account in its Funds at Lloyd's.
There is no intention to cease underwriting or cease the operations of the syndicate.
In assessing the syndicate’s going concern position as at 31 December 2024, the managing agent has considered a number of
factors, including the current statement of financial position and the syndicate’s strategic and financial plan. The assessment
concluded that, for the foreseeable future, the syndicate has sufficient capital and liquidity for the 12 months from the date the
financial statements are authorised for issue.
Use of estimates and judgements
The preparation of financial statements requires the use of estimates and judgements that affect the reported amounts of
assets, liabilities, income and expenses. Actual results may differ from those on which management’s estimates are based.
Estimates and assumptions are continually evaluated and are based on historical experience and other factors. For example,
estimates which are sensitive to economic, regulatory and geopolitical conditions could be impacted by significant changes in
the external environment such as the volatile macroeconomic environment, climate change, international conflicts, and
significant changes in legislation. Any revisions to accounting estimates are recognised in the period in which the estimate is
revised and in any future periods affected.
Specific to climate change, since responses to it are still developing, it is not possible to consider all possible future outcomes
when determining asset and liability valuations, and timing of future cash flows, as these are not yet known. Nevertheless, the
current management view is that reasonably possible changes arising from climate risks would not have a material impact on
asset and liability valuations at the year-end date.
(a) Valuation of insurance contract liabilities
The most critical estimate included within the syndicate’s balance sheet is the estimate for insurance losses incurred but not
reported (‘IBNR’), which is included within total technical provisions and reinsurers’ share of technical provisions in the balance
sheet and note 12. This estimate is critical as it outlines the current liability for future expenses expected to be incurred in
relation to claims. If this estimation was to prove inadequate then an exposure would arise in future years where a liability has
not been provided for.
The best estimate of the most likely ultimate outcome is used when calculating notified claims. This estimate is based upon the
facts available at the time, in conjunction with the claims manager’s view of likely future developments. The total estimate of
gross IBNR as at 31 December 2024 included within claims outstanding is $69,230k (2023: $84,507k).
Notes to the syndicate annual accounts
18
Beazley | Syndicate 6107 Annual report 2024 www.beazley.com
1 Accounting policies continued
(b) Premium estimates
Premium written is initially based on the estimated premium income (‘EPI’) of each contract. Judgement is involved in
determining the ultimate estimates in order to establish the appropriate premium value and, ultimately, the cash to be received.
EPI estimates are updated to reflect changes in an underwriters expectation through consultation with brokers, coverholders
and internal counterparty views, changes in market conditions, historic experience and to reflect actual cash received for a
contract.
Significant accounting policies
The financial statements have been prepared on an annual basis of accounting, whereby the incurred cost of claims,
commissions and related expenses are charged against the earned proportion of premiums, net of reinsurance as follows:
(a) Premium estimates
Gross premiums written comprise premiums on contracts incepted during the financial year together with adjustments to
premiums written in previous accounting periods and estimates for premiums from contracts entered into during the course of
the year. Gross premiums written are stated before the deduction of brokerage, taxes, duties levied on premiums and other
deductions.
(b) Unearned premiums
A provision for unearned premiums (gross of reinsurance) represents that part of the gross premiums written that it is estimated
will be earned in the following financial periods. It is calculated using the daily pro-rata method, under which the premium is
apportioned over the period of risk.
(c) Claims provisions and related reinsurance
Claims represent the cost of claims and claims handling expenses paid during the financial year, together with the movement in
provisions for outstanding claims, IBNR and future claims handling provisions. The provision for claims outstanding comprises
amounts set aside for claims advised and IBNR.
The IBNR amount is based on estimates calculated using widely accepted actuarial techniques which are reviewed quarterly by
the group actuary and annually by the independent syndicate reporting actuary. The techniques generally use projections, based
on past experience of the development of claims over time, to form a view on the likely ultimate claims to be experienced. For
more recent underwriting, regard is given to the variations in the business portfolio accepted and the underlying terms and
conditions. Thus, the critical assumptions used when estimating claims provisions are that the past experience is a reasonable
predictor of likely future claims development and that the rating and other models used to analyse current business are a fair
reflection of the likely level of ultimate claims to be incurred.
A provision is made at the year-end for the estimated cost of claims incurred but not settled at the balance sheet date,
including the cost of claims incurred but not yet reported to the managing agent. The managing agent takes all reasonable
steps to ensure that it has appropriate information regarding its claims exposures. However, given the uncertainty in
establishing claims provisions, it is likely that the final outcome will prove to be different from the original liability established.
(d) Liability adequacy testing
At each reporting date, liability adequacy tests are performed to ensure the adequacy of the claims liabilities net of deferred
acquisition costs and unearned premium reserves. In performing these tests, current best estimates of future contractual cash
flows, claims handling and administration expenses as well as investment income from the assets backing such liabilities are
used. Any deficiency is subsequently charged to the statement of comprehensive income and a liability for unexpired risk
provision is established.
(e) Acquisition costs
Acquisition costs comprise brokerage, premium levies, and staff related costs of the underwriters acquiring the business. The
proportion of acquisition costs in respect of unearned premiums is deferred at the balance sheet date and recognised in later
periods when the related premiums are earned.
(f) Foreign currencies
Foreign currency transactions are translated into the functional currency using average exchange rates applicable to the period
in which the transactions take place and where the syndicate considers these to be a reasonable approximation of the
transaction rate. Foreign exchange gains and losses resulting from the settlement of such transactions and from translation at
the period end of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of
comprehensive income.
www.beazley.com Beazley | Syndicate 6107 Annual report 2024
19
1 Accounting policies continued
(g) Investment return
Syndicate 6107 is accounted for on a cash withheld basis on the three youngest underwriting years. An investment return
payable by the host syndicates to Syndicate 6107 is calculated based on premium and claims held by the host syndicate being
used as a proxy for cash, as outlined under the terms of the reinsurance contract. Investment return is initially recorded in the
non-technical account. A transfer is made from the non-technical account to the general business technical account to reflect
the investment return on funds supporting underwriting business.
(h) Ceded reinsurance
These are contracts entered into by the syndicate with reinsurers under which the syndicate is compensated for losses on
contracts issued by the syndicate and that meet the definition of an insurance contract. Insurance contracts entered into by the
syndicate under which the contract holder is another insurer (inwards reinsurance) are included with insurance contracts.
Any benefits to which the syndicate is entitled under its reinsurance contracts held are recognised as reinsurance assets. These
consist of balances due from reinsurers relating to claims and also includes the provision for unearned premiums, reinsurers’
share. Balances due relating to the reinsurers share of claims are based on calculated amounts of outstanding claims
recoveries and projections for IBNR, net of estimated irrecoverable amounts having regard to the reinsurance programme in
place for the class of business, the claims experience for the period and the current security rating of the reinsurer involved.
Reinsurance liabilities are primarily premiums payable for reinsurance contracts and are recognised as an expense when due.
Reinsurance assets are assessed for impairment at each reporting date. If there is objective evidence of impairment, then the
carrying amount is reduced to its recoverable amount and the impairment loss is recognised in the statement of comprehensive
income.
(i) Insurance debtors and creditors
Insurance debtors and creditors are recognised when the host syndicate is on risk. These include amounts only due from host
syndicate. These are classified as ‘insurance debtors and creditors’ 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 impairment. Insurance creditors are stated at amortised cost. Reinsurance debtors and creditors are referred to in
the previous policy above.
(j) Other debtors
Other debtors principally consist of intercompany debtor balances and are carried at amortised cost less any impairment
losses.
(k) Other creditors
Other creditors principally consist of amounts due to related entities and sundry creditors, and are stated at amortised cost
determined on the effective interest rate method.
(l) Cash and cash equivalents
This consists of cash at bank and in hand, deposits held at call with banks and other short-term highly liquid investments
with maturities of three months or less from the date of acquisition. Cash at bank and in hand balances are classified as
loans and receivables and carried at amortised cost less any impairment losses.
(m) Taxation
Under Schedule 19 of the Finance Act 1993 managing agents are not required to deduct basic rate income tax from trading
income. In addition, all UK basic rate income tax (currently at 20%) deducted from syndicate investment income is recoverable
by managing agents and consequently the distribution made to members or their members’ agents is gross of tax. Capital
appreciation falls within trading income and is also distributed gross of tax.
No provision has been made for any US federal income tax payable on underwriting results or investment earnings. Any
payments on account made by the syndicate during the year have been included in the balance sheet under the heading ‘other
debtors’.
No provision has been made for any other overseas tax payable by members on underwriting results.
Notes to the syndicate annual accounts continued
20
Beazley | Syndicate 6107 Annual report 2024 www.beazley.com
2 Risk management
The managing agent has identified the risks arising from its activities and has established policies and procedures to manage
these items in accordance with its risk appetite. The sections below outline the syndicate’s risk appetite and explain how it
defines and manages each category of risk. The risk management framework is discussed in the Managing agent's report.
2.1 Insurance risk
The syndicate’s insurance business assumes the risk of loss from persons or organisations that are directly exposed to an
underlying loss. Insurance risk arises from this risk transfer due to inherent uncertainties about the occurrence, amount and
timing of insurance liabilities. The four key components of insurance risk are underwriting, reinsurance, claims management and
reserving. Each element is considered below:
(a) Underwriting risk
Underwriting risk comprises four elements that apply to all insurance products offered by the syndicate:
• cycle risk – the risk that business is written without full knowledge as to the (in)adequacy of rates, terms and conditions;
• event risk – the risk that individual risk losses or catastrophes lead to claims that are higher than anticipated in plans and
pricing;
• pricing risk – the risk that the level of expected loss is understated in the pricing process; and
• expense risk – the risk that the allowance for expenses and inflation in pricing is inadequate.
The annual business plans for each underwriting team reflect the syndicate’s underwriting strategy, and set out the classes of
business, the territories and the industry sectors in which business is to be written. These plans are approved by the Board of
BFL and monitored by the Underwriting Committee.
The host syndicates’ underwriters calculate premiums for risks written based on a range of criteria tailored specifically to each
individual risk. These factors include but are not limited to the financial exposure, loss history, risk characteristics, limits,
deductibles, terms and conditions and acquisition expenses.
The host also recognises that insurance events are, by their nature, random, and the actual number and size of events during
any one year may vary from those estimated using established statistical techniques.
To address this, the host sets out the exposure that it is prepared to accept in certain territories to a range of events such as
natural catastrophes and specific scenarios which may result in large industry losses. This is monitored through regular
calculation of Realistic Disaster Scenarios. The aggregate position is monitored at the time of underwriting a risk, and reports
are regularly produced to highlight the key aggregations to which the syndicate is exposed.
The managing agent uses a number of modelling tools to monitor its exposures against the agreed risk appetite set and to
simulate catastrophe losses in order to measure the effectiveness of the syndicate’s reinsurance programmes. Stress and
scenario tests are also run using these models. The range of scenarios considered includes natural catastrophe, cyber, marine,
liability, political, terrorism and war events.
One of the largest types of event exposure relates to natural catastrophe events such as windstorm or earthquake. With the
increasing risk from climate change impacts the frequency and severity of natural catastrophes, the managing agent continues
to monitor its exposure. Where possible the managing agent measures geographic accumulations and uses its knowledge of
the business, historical loss behaviour and commercial catastrophe modelling software to assess the expected range of losses
at different return periods. Upon application of the reinsurance coverage purchased, the key gross and net exposures are
calculated on the basis of extreme events at a range of return periods.
The syndicate also has exposure to man-made claim aggregations, such as those arising from terrorism and data breach
events. The host syndicate choose to underwrite data breach insurance within the Cyber Risks division using its team of
specialist underwriters, claims managers and data breach services managers. Other than for data breach, the host syndicates’
preference is to exclude cyber exposure where possible.
To manage underwriting exposures, the managing agent has developed limits of authority and business plans which are binding
upon all staff authorised to underwrite and are specific to underwriters, classes of business and industry.
www.beazley.com Beazley | Syndicate 6107 Annual report 2024
21
2 Risk management continued
These authority limits are enforced through a comprehensive sign-off process for underwriting transactions including dual sign-
off for all line underwriters and peer review for all risks exceeding individual underwriters authority limits. Exception reports are
also run regularly to monitor compliance.
All underwriters also have a right to refuse renewal or change the terms and conditions of insurance contracts upon renewal.
Rate monitoring details, including limits, deductibles, exposures, terms and conditions and risk characteristics are also
captured and the results are combined to monitor the rating environment for each class of business.
Operating divisions
All risks are underwritten in the UK under one reinsurance contract. All risks relate to property and cyber reinsurance business.
(b) Reinsurance risk
Reinsurance risk to the syndicate arises where reinsurance contracts put in place to reduce gross insurance risk do not perform
as anticipated, result in coverage disputes or prove inadequate in terms of the vertical or horizontal limits purchased. Failure of
a reinsurer to pay a valid claim is considered a credit risk which is detailed separately below.
The syndicate’s reinsurance programmes complement the underwriting team business plans and seek to protect syndicate
capital from an adverse volume or volatility of claims on both a per risk and per event basis. In some cases the syndicate
deems it more economic to hold capital than purchase reinsurance. These decisions are regularly reviewed as an integral part
of the business planning and performance monitoring process.
(c) Claims management risk
Claims management risk may arise within the syndicate in the event of inaccurate or incomplete case reserves and claims
settlements, poor service quality or excessive claims handling costs in the host syndicates. These risks may damage the
Beazley brand and undermine its ability to win and retain business or incur punitive damages. These risks can occur at any
stage of the claims life-cycle.
The managing agent’s claims teams are focused on delivering quality, reliability and speed of service to both internal and
external clients. Their aim is to adjust and process claims in a fair, efficient and timely manner, in accordance with the policy’s
terms and conditions, the regulatory environment, and the business’s broader interests. Case reserves are set for all known
claims liabilities, including provisions for expenses, as soon as a reliable estimate can be made of the claims liability.
(d) Reserving and ultimate reserves risk
Reserving and ultimate reserves risk occurs within the syndicate where established insurance liabilities are insufficient through
inaccurate forecasting, or where there is inadequate allowance for expenses and reinsurance bad debt in provisions.
To manage reserving and ultimate reserves risk, the managing agent's actuarial team uses a range of recognised techniques to
project gross premiums written, monitor claims development patterns and stress test ultimate insurance liability balances. An
external independent actuary also performs an annual review to produce a statement of actuarial opinion for the syndicate.
The objective of the syndicate’s reserving policy is to produce accurate and reliable estimates that are consistent over time and
across classes of business. The estimates of gross premiums written and claims prepared by the actuarial department are
used through a formal quarterly peer review process to independently test the integrity of the estimates produced by the
underwriting teams for each class of business. These meetings are attended by senior management, senior underwriters,
actuarial, claims, and finance representatives.
The syndicate also monitors its exposure to insurance risk by location.
Notes to the syndicate annual accounts continued
22
Beazley | Syndicate 6107 Annual report 2024 www.beazley.com
2 Risk management continued
An increase or decrease in total claims liabilities would have the following impact on profit and members' balances:
Sensitivity to insurance risk (claims reserves)
Impact on profit and members' balances'
2024 2023
$'000 $'000
Claims outstanding - gross of reinsurance
111,358 113,609
Claims outstanding - net of reinsurance
97,166
88,641
5% increase in gross claims reserve
(5,568)
(5,680)
5% decrease in gross claims reserve
5,568
5,680
5% increase in net claims reserve
(4,858)
(4,432)
5% decrease in net claims reserve
4,858
4,432
2.2 Market risk
Market risk arises where the value of assets and liabilities changes as a result of movements in foreign exchange rates and
interest rates.
Foreign exchange risk
The functional and presentational currency of the Syndicate is the US dollar. The effect of this on foreign exchange risk is that
the syndicate is exposed to fluctuations in exchange rates for non-dollar denominated transactions and net assets.
The syndicate has four main settlement currencies: US dollars, sterling, Canadian dollars and euro. Transactions in all
currencies are converted to US dollars on initial recognition and revalued at the reporting date. Remaining foreign exchange risk
is actively managed as described below.
The syndicate’s assets are broadly matched by currency to the principal underlying settlement currencies of its insurance
liabilities. This helps mitigate the risk that future movements in exchange rates would materially impact the syndicate’s assets
required to cover its insurance liabilities. The following table summarises the carrying value of total assets and total liabilities
categorised by currency:
CAD $ EUR € UK £ Subtotal US $ Total
31 December 2024 $'000 $'000 $'000 $'000 $'000 $'000
Reinsurers' share of technical provisions 75 18 129 222 13,970 14,192
Debtors 2,227 3,761 4,066 10,054 101,437 111,491
Other assets 135 10,910 6,750 17,795 18,406 36,201
Prepayments and accrued income 314 198 562 1,074 9,728 10,802
Total assets 2,751 14,887 11,507 29,145 143,541 172,686
Technical provisions (3,933) (12,194) (7,738) (23,865) (119,153) (143,018)
Creditors (114) (143) (351) (608) (6,536) (7,144)
Accruals and deferred income — — (147) (147) (1) (148)
Total liabilities (4,047) (12,337) (8,236) (24,620) (125,690) (150,310)
Total Capital and Reserves (1,296) 2,550 3,271 4,525 17,851 22,376
CAD $ EUR € UK £
Subtotal US $ Total
Reinsurers' share of technical provisions 416 823 922 2,161 23,628 25,789
Debtors* 4,745 (4,797) 12,504 12,452 113,221 125,673
Other assets 1,420 18,226 5,939 25,585 142 25,727
Prepayments and accrued income 120 92 300 512 4,980 5,492
Total assets 6,701 14,344 19,665 40,710 141,971 182,681
Technical provisions (4,824) (13,228) (13,346) (31,398) (99,795) (131,193)
Creditors (120) (132) (565) (817) (6,529) (7,346)
Accruals and deferred income — — (91) (91) (12) (103)
Total liabilities (4,944) (13,360) (14,002) (32,306) (106,336) (138,642)
Total Capital and Reserves 1,757 984 5,663 8,404 35,635 44,039
*Certain balances have been restated due to a voluntary change in accounting policy. Refer to note 18.
www.beazley.com Beazley | Syndicate 6107 Annual report 2024
23
2 Risk management continued
Sensitivity analysis - Foreign exchange risk
In 2024, the managing agent managed the syndicate's foreign exchange risk by periodically assessing its non-dollar exposures
while targeting net assets to be predominately US dollar denominated. On a forward looking basis an assessment is made of
expected future exposure development and appropriate currency trades put in place to reduce risk.
Fluctuations in the syndicate’s trading currencies against the US dollar would result in a change to profit and members'
balances. The table below gives an indication of the impact on profit and members' balances of a percentage change in relative
strength of US dollar against the value of sterling, Canadian dollar and euro, simultaneously.
Impact on profit and members' balances
2024 2023
Change in exchange rate of sterling, Canadian dollar, Australian dollar and euro relative to US dollar
$'000 $'000
Dollar weakens 10% against other currencies 411 (767)
Dollar strengthens 10% against other currencies (411) 767
Interest rate risk
The syndicate receives an investment return from the host syndicates. The host syndicate is exposed to movement in interest
rates and interest rates on its cash deposits.
Price risk
This is not a material risk to the syndicate as it does not hold any financial assets and or liabilities other than those listed
under reinsurance debtors and creditors.
2.3 Credit risk
Credit risk arises from the failure of another party to perform its financial or contractual obligations to the syndicate or host
syndicate in a timely manner. The primary sources of credit risk for the syndicate are:
• reinsurers – whereby reinsurers may fail to pay valid claims against a reinsurance contract held by the syndicate;
• brokers and coverholders – whereby counterparties fail to pass on premiums or claims collected or paid on behalf of the host
syndicate; and
• cash at bank and in hand.
The syndicate’s core business is to accept significant insurance risk and the appetite for other risks is low. This protects the
syndicate’s capital from erosion so that it can meet its insurance liabilities.
The syndicate and host syndicates limit exposure to a single counterparty or a group of counterparties and analyse the
geographical locations of exposures when assessing credit risk.
An approval system also exists for all new brokers, and broker performance is carefully monitored by the host syndicates.
Regular exception reports highlight trading with non-approved brokers, and the host syndicates’ credit control function frequently
assesses the ageing and collectability of debtor balances. Any large, aged items are prioritised and where collection is
outsourced, incentives are in place to support these priorities.
The syndicate has developed processes to formally examine all reinsurers before entering into new business arrangements.
New reinsurers are approved by the Reinsurance Security Committee, which also reviews arrangements with all existing
reinsurers at least annually. Vulnerable or slow-paying reinsurers are examined more frequently.
The following tables summarise the syndicate’s concentrations of credit risk for assets with credit risk:
Notes to the syndicate annual accounts continued
24
Beazley | Syndicate 6107 Annual report 2024 www.beazley.com
2 Risk management continued
AAA AA A BBB Other
Not rated Total
31 December 2024
$'000 $'000 $'000 $'000 $'000 $'000 $'000
Cash at bank and in hand — — 36,201 — — — 36,201
Debtors arising out reinsurance operations — — 10,992 — — 13,417 24,409
Reinsurers’ share of outstanding claims — 7,266 6,267 1 — 658 14,192
Other debtors and accrued interest 87,082 — — — — 927 88,009
Total 87,082 7,266 53,460 1 — 15,002 162,811
AAA AA A BBB Other
Not rated Total
31 December 2023
$'000 $'000 $'000 $'000 $'000 $'000 $'000
Cash at bank and in hand — — 25,727 — — — 25,727
Debtors arising out reinsurance operations — — 7,026 — — 12,768 19,794
Reinsurers’ share of outstanding claims — 13,199 10,663 228 — 878 24,968
Other debtors and accrued interest* 105,879 — — — — 934 106,813
Total 105,879 13,199 43,416 228 — 14,580 177,302
*Certain balances have been restated due to a voluntary change in accounting policy. Refer to note 18.
Based on all evidence available, debtors arising out of reinsurance operations and other debtors have not been impaired and no
impairment provision has been recognised in respect of these assets.
The syndicate has no insurance debtors and reinsurance assets that are past due but not impaired at the reporting date.
Neither past due
nor impaired
Past due but not
impaired
Gross value of
impaired assets
Impairment
allowance Total
31 December 2024
$'000 $'000 $'000 $'000 $'000
Cash at bank and in hand 36,201 — — — 36,201
Debtors arising out reinsurance operations 24,409 — — — 24,409
Reinsurers’ share of outstanding claims 14,192 — — — 14,192
Other debtors and accrued interest 88,009 — — — 88,009
Total 162,811 — — — 162,811
Neither past due
nor impaired
Past due but not
impaired
Gross value of
impaired assets
Impairment
allowance Total
31 December 2023
$'000 $'000 $'000 $'000 $'000
Cash at bank and in hand 25,727 — — — 25,727
Debtors arising out reinsurance operations 19,794 — — — 19,794
Reinsurers’ share of outstanding claims 24,968 — — — 24,968
Other debtors and accrued interest* 106,813 — — — 106,813
Total 177,302 — — — 177,302
*Certain balances have been restated due to a voluntary change in accounting policy. Refer to note 18.
Exposure to credit risk
The carrying amount of financial assets and reinsurance assets represents the maximum credit risk exposure. The syndicate
does not hold any collateral as security or purchase any credit enhancements (such as guarantees, credit derivatives and
netting arrangements that do not qualify for offset).
www.beazley.com Beazley | Syndicate 6107 Annual report 2024
25
2 Risk management continued
2.4 Liquidity risk
Liquidity risk arises where cash may not be available to pay obligations when due at a reasonable cost. As Syndicate 6107
is a special purpose syndicate, liquidity risk is not material to the syndicate as all financial assets have a maturity of less than
one year at the reporting date.
The maturity analysis presented in the table below shows the remaining contractual maturities for the syndicate’s insurance
contracts and financial instrument liabilities. For insurance and reinsurance contracts, the contractual maturity is the estimated
date when the gross undiscounted contractually required cash flows will occur. For financial liabilities, it is the earliest date on
which the gross undiscounted cash flows (including contractual interest payments) could be paid assuming conditions are
consistent with those at the reporting date.
Maturity
Carrying
amount
No maturity
stated 0-1 yrs 1-3 yrs 3-5 yrs >5yrs Total
31 December 2024
$'000 $'000 $'000 $'000 $'000 $'000 $'000
Claims outstanding 111,358 – 39,835 42,930 16,678 11,915 111,358
Creditors 7,144 – 7,144 – – – 7,144
Other liabilities 148 – 148 – – – 148
Total
118,650 – 47,127 42,930 16,678 11,915 118,650
Maturity
Carrying
amount
No maturity
stated 0-1 yrs 1-3 yrs 3-5 yrs >5yrs Total
31 December 2023 $'000 $'000 $'000 $'000 $'000 $'000 $'000
Claims outstanding 113,609 – 46,366 42,605 14,441 10,197 113,609
Creditors 7,346 – 7,346 – – – 7,346
Other liabilities 103 – 103 – – – 103
Total
121,058 – 53,815 42,605 14,441 10,197 121,058
2.5 Capital management
Capital framework at Lloyd’s
The Society of Lloyd’s is a regulated undertaking and subject to the supervision of the Prudential Regulation Authority (PRA)
under the Financial Services and Markets Act 2000.
Within this supervisory framework, Lloyd’s applies capital requirements at a member level and centrally to ensure that Lloyd’s
complies with Solvency II, and beyond that to meet its own financial strength, license and ratings objectives. Although, as
described below, the Lloyd’s capital setting processes use a capital requirement set at syndicate level as a starting point, the
requirement to meet Solvency II and Lloyd’s capital requirements apply at an overall and member level respectively, not at a
syndicate level. Accordingly the capital requirement in respect of Syndicate 6107 is not disclosed in these financial statements.
Lloyd’s capital setting process
In order to meet Lloyd’s requirements, each syndicate is required to calculate its Solvency Capital Requirement ('SCR') for the
prospective underwriting year. This amount must be sufficient to cover a 1 in 200 year loss, reflecting uncertainty in the
ultimate run-off of underwriting liabilities (SCR ‘to ultimate’). The syndicate must also calculate its SCR at the same confidence
level but reflecting uncertainty over a one year time horizon (one year SCR) for Lloyd’s to use in meeting Solvency II
requirements. The SCRs of each syndicate are subject to review by Lloyd’s and approval by the Lloyd’s Capital and Planning
Group.
A syndicate 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(s) on which it participates but not other members’ shares. Accordingly, the capital
requirement that Lloyd’s sets for each member operates on a similar basis. Each member’s SCR shall thus be determined by
the sum of the member’s share of the syndicate SCR ‘to ultimate’. Where a member participates on more than one syndicate, a
credit for diversification is provided to reflect the spread of risk, but consistent with determining an SCR which reflects the
capital requirement to cover a 1 in 200 year loss ‘to ultimate’ for that member. Over and above this, Lloyd’s applies a capital
uplift to the member’s capital requirement, known as the Economic Capital Assessment (‘ECA’). The purpose of this uplift,
which is a Lloyd’s not a Solvency II requirement, is to meet Lloyd’s financial strength, license and ratings objectives. The capital
uplift applied for 2024 was 35% (2023: 35%) of the member’s SCR ‘to ultimate'.
Notes to the syndicate annual accounts continued
26
Beazley | Syndicate 6107 Annual report 2024 www.beazley.com
2 Risk management continued
Provision of capital by members
Each member may provide capital to meet its ECA either by assets held in trust by Lloyd’s specifically for that member (funds at
Lloyd’s), held within and managed within a syndicate (funds in syndicate) and/or as the member’s share of the Solvency II
members’ balances on each syndicate on which it participates.
Accordingly all of the assets less liabilities of the syndicate, as represented in the members’ balances reported on the balance
sheet on page 15, represent resources available to meet members’ and Lloyd’s capital requirements.
3 Analysis of underwriting result
Gross premiums
written
Gross premiums
earned
Gross claims
incurred
Net operating
expenses
Reinsurance
balance
Underwriting
result
2024 $'000 $'000 $'000 $'000 $'000 $'000
Direct Insurance — — — — — —
Reinsurance acceptances 63,311 49,196 (20,726) (19,160) (7,145) 2,165
Total direct insurance and
reinsurance accepted
63,311 49,196 (20,726) (19,160) (7,145) 2,165
Gross premiums
written
Gross premiums
earned
Gross claims
incurred
Net operating
expenses
Reinsurance
balance
Underwriting
result
2023 $'000 $'000 $'000 $'000 $'000 $'000
Direct Insurance — — — — — —
Reinsurance accepted 43,530 57,064 (8,735) (15,298) (10,565) 22,466
Total direct insurance and
reinsurance accepted
43,530 57,064 (8,735) (15,298) (10,565) 22,466
All business was concluded in the UK under one reinsurance contract. The gross premiums written by destination of risk is
presented in the table below:
2024 2023
$'000 $'000
United Kingdom 4,432 1,306
US 46,217 33,518
European Union member states 3,799 2,612
Rest of world 8,863 6,094
Total gross premium written
63,311 43,530
4 Net operating expenses
2024 2023
$'000 $'000
Acquisition costs
8,997 6,190
Change in deferred acquisition costs (2,006) 1,703
Administrative expenses 19 (131)
Members’ standard personal expenses 312 207
Reinsurance commission and profit participation 11,838 7,329
Total
19,160 15,298
Included within reinsurance commission and profit participation is reinsurance profit commission payable to syndicates 2623,
623 and 3623 of $4,718k (2023: 1,009k).
www.beazley.com Beazley | Syndicate 6107 Annual report 2024
27
4 Net operating expenses continued
Administrative expenses is include:
2024 2023
$'000 $'000
Fees payable to the syndicate’s auditor for the audit of these syndicate annual accounts 93 102
Other services pursuant to legislation 121 81
Total
214 183
Fees payable to the syndicate's auditor in relation to other services pursuant to legislation primarily relate to the review and
audit of syndicate regulatory returns along with the statement of actuarial opinion.
5 Staff numbers
The syndicate has no employees. All staff are employed by Beazley Management Limited ('BML'), a related company to the
managing agent, both of which operate within the Beazley Group. The average number of persons employed BML and working
for the syndicate in some capacity are as follows.
Number of employees
2024 2023
Administration and finance 870 799
Underwriting 239 234
Claims 88 75
Investments 8 8
Total
1,205 1,116
6 Investment return
2024 2023
$'000 $'000
Interest and similar income
From financial instruments classified at amortised cost
Interest on cash at bank 1,582 609
Interest and similar income 1,754 3,019
Total investment return
3,336 3,628
Transferred to the technical account from the non-technical account
3,336 3,628
7 Distribution and open years of account
A distribution of $11,635k to members will be proposed in relation to the 2022 year of account which is closing (2023:
distribution of $27,235k profit for 2021 year of account).
Notes to the syndicate annual accounts continued
28
Beazley | Syndicate 6107 Annual report 2024 www.beazley.com
8 Debtors arising out of reinsurance operations
2024 2023
$'000 $'000
Due within one year
24,409
19,794
Due after one year
—
—
24,409
19,794
9 Other debtors
2024
2023
*restated
$'000 $'000
Amounts due from syndicate 2623 54,450 86,845
Amounts due from syndicate 623 12,937 19,034
Amounts due from syndicate 3623
19,695 —
Inter-syndicate balance 87,082 105,879
Amounts due from members — —
87,082 105,879
The above balances are due within one year.
*Certain balances have been restated due to a voluntary change in accounting policy. Refer to note 18.
10 Deferred acquisition costs
2024 2023
Gross Reinsurance Net
Gross Reinsurance Net
$'000 $'000 $'000 $'000 $'000 $'000
Balance at 1 January
4,558
(12) 4,546 4,152 (174) 3,978
Incurred deferred acquisition costs
19,348
— 19,348 4,509 — 4,509
Amortised deferred acquisition costs
(14,005)
12 (13,993) (4,107) 162 (3,945)
Foreign exchange movements
(26) —
(26) 4 — 4
Balance at 31 December
9,875 — 9,875 4,558 (12) 4,546
11 Analysis of net debt
All amounts in $'000
At 1 January
2024
Cash flows Acquired
Fair value and
exchange
movements
Non-cash
changes
At 31
December
2024
Cash at bank and in hand 25,727 10,687 — (213) — 36,201
Short term deposits — — — — — —
Total
25,727 10,687 — (213) — 36,201
All amounts in $'000
At 1 January
2023
Cash flows Acquired
Fair value and
exchange
movements
Non-cash
changes
At 31
December
2023
Cash at bank and in hand 23,208 1,926 — 593 — 25,727
Short term deposits — — — — — —
Total
23,208 1,926 — 593 — 25,727
www.beazley.com Beazley | Syndicate 6107 Annual report 2024
29
12 Technical provisions
2024 2023
Gross
Provisions
Reinsurance
assets Net
Gross
Provisions
Reinsurance
assets Net
Claims outstanding
$'000
$'000
$'000
$'000
$'000
$'000
Balance at 1 January 113,609 (24,968) 88,641 138,667 (42,445) 96,222
Claims paid during the year (22,735) 3,962 (18,773)
(34,566) 6,606
(27,960)
Expected cost of current year claims 25,093 171 25,264
28,583 824
29,407
Change in estimates of prior year provisions (4,367) 6,660 2,293
(19,848) 10,056
(9,792)
Effects of movements in exchange rate (242) (17) (259) 773 (9) 764
Balance at 31 December
111,358 (14,192) 97,166 113,609 (24,968) 88,641
2024 2023
Gross
Provisions
Reinsurance
assets Net
Gross
Provisions
Reinsurance
assets Net
Unearned premiums
$'000
$'000 $'000 $'000
$'000
$'000
Balance at 1 January 17,584 (821) 16,763 31,048 (3,197) 27,851
Premium written during the year 63,311 507 63,818
43,530 2,694
46,224
Premiums earned during the year (49,196) 314 (48,882)
(57,064) (315)
(57,379)
Effect of movements in exchange rate (39) — (39) 70 (3) 67
Balance at 31 December
31,660 — 31,660 17,584 (821) 16,763
The following tables illustrate the development of estimates of ultimate cumulative claims incurred, including claims notified
and IBNR, for each successive underwriting year, illustrating how amounts estimated have changed from the first estimates
made.
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Total
Gross amounts
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
12 months 29,039 29,349 81,411 65,879 78,087 55,385 85,905 60,322 23,291 35,758
24 months 13,469 16,702 71,237 80,086 48,790 65,841 76,843 44,769 20,436
36 months 9,364 16,221 77,609 71,368 38,392 62,504 69,893 40,080
48 months 9,608 16,705 74,076 65,765 35,824 62,589 62,825
60 months 9,757 16,299 72,961 64,154 34,191 60,926
72 months 9,583 16,172 70,589 62,627 50,311
84 months 9,286 15,799 69,075 60,032
96 months 9,149 15,865 68,016
108 months 9,115 15,888
120 months 9,100
9,100 15,888 68,016 60,032 50,311 60,926 62,825 40,080 20,436 35,758 423,372
Provision in respect of prior
years (2014 and earlier)
— — — — — — — — — — 361
Less paid claims (7,755) (15,888) (65,305) (57,673) (28,474) (47,669) (40,953) (22,382) (4,716) (512) (291,327)
Gross claims reserves
(unearned)
1,345 — 2,711 2,359 21,837 13,257 21,872 17,698 15,720 35,246 132,406
Less unearned portion of
ultimate losses
— — — — — — — — (1,066) (19,982) (21,048)
Gross claims reserves 1,345 0 2,711 2,359 21,837 13,257 21,872 17,698 14,654 15,264 111,358
Notes to the syndicate annual accounts continued
30
Beazley | Syndicate 6107 Annual report 2024 www.beazley.com
12 Technical provisions continued
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Total
Net amounts
$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000
12 months 24,603 24,024 56,257 50,470 55,563 52,664 53,624 49,932 22,451
35,758
24 months 11,954 14,028 54,912 54,132 45,659 65,155 56,216 44,589 20,288
36 months 8,565 15,451 56,659 48,973 36,505 61,311 50,190 40,030
48 months 9,080 14,324 57,445 43,724 35,302 61,271 46,503
60 months 9,109 14,785 57,254 45,131 33,650 59,676
72 months 9,211 14,929 55,708 45,184 49,808
84 months 8,979 15,194 54,950 45,254
96 months 8,869 15,418 53,856
108 months 8,834 15,444
120 months 8,822
Total ultimate losses
8,822 15,444 53,856 45,254 49,808 59,676 46,503 40,030 20,288 35,758 375,439
Provision in respect of prior
years (2014 and earlier) — — — — — — — — — — 360
Less paid claims (7,651) (15,444) (53,829) (45,254) (28,304) (47,549) (31,918) (22,397) (4,700) (512) (257,558)
Net claims reserves (unearned) 1,171 — 27 — 21,504 12,127 14,585 17,633 15,588 35,246 118,241
Less unearned portion of
ultimate losses — — — — — — — — (1,093) (19,982) (21,075)
Net claims reserves
1,171 — 27 — 21,504 12,127 14,585 17,633 14,495 15,264 97,166
13 Creditors arising out of reinsurance operations
2024 2023
$'000 $'000
Due within one year
5,612 5,670
Due after one year
— —
5,612 5,670
14 Other creditors
2024 2023
$'000 $'000
Other related party balances (non-syndicate) 48 278
Other creditors 1,484 1,398
1,532 1,676
The above creditor balances are payable within one year.
15 Related parties transactions
The business written by Syndicate 6107 is ceded from syndicates 2623, 623 and 3623 for which Syndicate 6107 pays an
overrider commission and a profit commission. The profit commission payable and overrider commission are disclosed in note
4.
The intercompany positions with other syndicates managed by BFL at 31 December 2024 are disclosed above in note 9 and
note 14 respectively.
BFL, the managing agent of Syndicate 6107, is a wholly-owned subsidiary of Beazley plc. The Directors of BFL during the period
covered by these syndicate annual accounts who participated on Syndicate 623, managed by the managing agent, indirectly
through Beazley Staff Underwriting Limited are on the following page.
www.beazley.com Beazley | Syndicate 6107 Annual report 2024
31
15 Related parties transactions continued
2023 year of account
underwriting capacity £
2024 year of account
underwriting capacity £
2025 year of account
underwriting capacity £
A P Cox 400,000 400,000 500,000
S M Lake 250,000 — —
I Fantozzi 400,000 400,000 —
R Anarfi 112,143 175,000 275,000
P J Bantick
350,000 350,000 500,000
R Quane 100,000 150,000 —
Certain Directors of BFL who held office during the period covered by this report have shareholdings in Beazley plc which
provides the capacity for syndicates 2623, 3622, 3623, on 2023 and 2022 year of account for 4321 and for 5623 on 2024
and 2023 year of accounts.
16 Subsequent events
There have been no balance sheet events which have occurred between the reporting date and the date which the financial
statements have been signed, for which an adjustment and or disclosure is required. The 2022 year of account has closed
with a profit of $11.6m.
17 Funds at Lloyd's
Every member is required to hold capital at Lloyd’s which is held in trust and known as Funds at Lloyd’s (‘FAL’). These funds are
intended primarily to cover circumstances where syndicate assets prove insufficient to meet participating members’ underwriting
liabilities. The level of FAL that Lloyd’s requires a member to maintain is determined by Lloyd’s based on Prudential Regulatory
Authority requirements and resource criteria. The determination of FAL has regard to a number of factors including the nature
and amount of risk to be underwritten by the member and the assessment of the reserving risk in respect of business that has
been underwritten. Since FAL is not under the management of the managing aagent, no amount has been shown in these
Financial Statements by way of such capital resources. However, the managing agent is able to make a call on the Member’s
FAL to meet liquidity requirements or to settle losses.
18 Changes in accounting policies - presentation
The 2023 syndicate accounts were prepared in line with the relevant accounting standards and regulatory requirements and
received an unqualified audit opinion from the syndicate’s auditor. However, the managing agent has voluntarily elected to enact
certain changes in accounting policy relating to the presentation of various items in the financial statements for this syndicate
for the year ended 31 December 2024. The changes are intended to align the presentation of the syndicate’s accounts with the
proforma disclosures set out by Lloyd's during the year as part of their effort to rationalise and standardise reporting across the
Lloyd’s market. These changes have been applied on a retrospective basis and have no impact on the measurement of assets
or liabilities, reported profit or the combined ratio. Further details of each change have been included below. This has impacted
certain comparative notes also.
Members’ agent fees
Members' agent fees are typically funded by the syndicate and then recouped at the time the YOA closes. Historically, the
syndicate has treated these as a separate receivable (recognised within Other debtors on the balance sheet), whereas the
managing agent now presents these as a deficit to members balances. This change in policy has no impact on the settlement
of a YOA and is entirely presentational.
Cash flow statement – presentation and classification
The managing agent has elected to change the presentation and classification of several lines within the cash flow statement in
order to align with the proforma disclosures set out by Lloyd’s. These changes can be summarised as follows:
• Several lines are now combined under a single heading (Movement in other assets/liabilities) where previously these were
presented separately.
• Foreign exchange amounts have been presented separately within operating activities and within the reconciliation from
opening to closing cash and cash equivalents.
• Transfer from/to members in respect of underwriting operations has been disaggregated where previously the total movement
was presented under one line.
Notes to the syndicate annual accounts continued
32
Beazley | Syndicate 6107 Annual report 2024 www.beazley.com
18 Changes in accounting policies - presentation continued
Balance sheet
Previously
disclosed
Adjustment
Restated
Members’ agent
fees
$'000 $'000 $'000
Other debtors
106,539 (660) 105,879
Total assets
183,341 (660) 182,681
Members’ balances
44,699 (660) 44,039
Total capital and reserves
44,699 (660) 44,039
Total liabilities
138,642 — 138,642
Statement of changes in members' balances
Previously
disclosed
Adjustment
Restated
Members’ agent
fees
$'000 $'000 $'000
Members' balances brought forward at 1 January
18,074 (614) 17,460
Loss collected on closure of underwriting year
626 175 801
Member agent fees
— (209) (209)
Other
— (12) (12)
Members' balances carried forward at 31 December
44,699 (660) 44,039
www.beazley.com Beazley | Syndicate 6107 Annual report 2024
33
18 Changes in accounting policies - presentation continued
Statement of cash flows
Adjustment
Previously
disclosed
Cash flow
statement
Restated
$'000 $'000 $'000
(Increase)/decrease in debtors, prepayments and accrued income
(3,186) (270) (3,456)
Increase/(decrease) in net technical provisions
(18,669) 18,669 —
Increase/(decrease) in gross technical provisions
— (38,522) (38,522)
(Increase)/decrease in reinsurers' share of gross technical provisions
— 19,853 19,853
(Increase)/decrease in deferred acquisition costs
3,291 (3,291) —
Increase/(decrease) in creditors, accruals and deferred income
(5,559) 121 (5,438)
Movement in other assets/liabilities
— 3,503 3,503
Foreign exchange
— (593) (593)
Net cash flows from operating activities
(1,752) (530) (2,282)
Net cash flows from investment activities
3,628 — 3,628
Transfer to/from members in respect of underwriting participations
627 (627) —
Collection of losses
— 801 801
Other
— (221) (221)
Net cash flows from financing activities
627 (47) 580
Total impact on net increase/(decrease) in cash and cash equivalents
2,503 (577) 1,926
Foreign exchange on cash and cash equivalents — 593 593
Total impact on Cash and cash equivalents at the end of the year
25,711 16 25,727
19 Foreign exchange rates
The syndicate used the following exchange rates to translate foreign currency assets, liabilities, income and expenses into US
dollars, being the syndicate’s presentational currency:
| 2024 | 2023 | |||||
| Start of period | Average | End of period | Start of period | Average | End of period | |
| Sterling | | | | | | |
| Euro | | | | | | |
| US dollar | | | | | | |
| Canadian dollar | | | | | | |
Notes to the syndicate annual accounts continued
34
Beazley | Syndicate 6107 Annual report 2024 www.beazley.com
2022 underwriting
year of account for
Syndicate 6107
36
Managing agent's report
37
Statement of managing agent’s responsibilities
38
Independent auditor’s report to the members of
Syndicate 6107 – 2022 closed year of account
41
Profit or loss account
42
Statement of changes in members' balances
43
Balance sheet
44
Cash flow statement
45
Notes to the 2022 underwriting year of
account
49
Seven year summary of closed year results at
31 December 2024
50
Managing agent's corporate information
www.beazley.com Beazley | Syndicate 6107 Annual report 2024
35
Managing agent’s report
The syndicate underwriting year accounts have been prepared under the Insurance Accounts Directive (Lloyd’s Syndicate and
Aggregate Accounts) Regulations 2008 (the ‘Lloyd’s Regulations’) and in accordance with the Syndicate Accounting Byelaw
(No.9 of 2005), including Financial Reporting Standard 102 (FRS 102) and Insurance Contracts 103 (FRS 103) in accordance
with the provisions of Schedule 3 of the Large and Medium-size Companies and Groups (Accounts and Reports) Regulations
relating to insurance companies.
Members participate on a syndicate by reference to a year of account ('YOA') and each syndicate YOA is a separate annual
venture. These accounts relate to the 2022 YOA which has been closed by reinsurance to close at 31 December 2024;
consequently the balance sheet represents the assets and liabilities of the 2022 year of account and the profit or loss account
reflects the transactions for that YOA during the 36 months period until closure. The 2022 closed YOA profit of $11.6m
includes a reinsurance to close deficit from the 2021 YOA of $7.1m (note 6) primarily due to negative claims experience on the
2019 YOA. The profit on the 2022 YOA represents a return on capacity of 13.5% and includes the impact of personal members
expenses of $0.3m. Return on capacity excluding these expenses would be 13.9%.
Principal activity
Please refer to the managing agent’s report in the Syndicate 6107 annual accounts for details around the principal activities of
the syndicate. In the 2022 YOA, the syndicate wrote only cyber and property reinsurance business.
Directors
A list of Directors of the managing agent who held office during the current year can be found on page 50 of this document.
Disclosure of information to the auditor
The Directors of the managing agent who held office at the date of approval of this managing agent’s report confirm that, so far
as they are each aware, there is no relevant audit information of which the syndicate’s auditor is unaware; and each Director
has taken all the steps that they ought to have taken as a Director to make themselves aware of any relevant audit information
and to establish that the syndicate’s auditor is aware of that information.
Auditor
Pursuant to Section 14(2) of Schedule 1 of the Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts)
Regulations 2008, the auditor will be deemed to be reappointed and Ernst & Young LLP will therefore continue in office.
On behalf of the Board
C C J Wong
Chief Financial Officer
5 March 2025
36
Beazley | Syndicate 6107 Annual report 2024 www.beazley.com
Statement of managing agent’s responsibilities
The Directors of the managing agent are responsible for preparing the syndicate underwriting year accounts in accordance with
the Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 and the Lloyd’s Syndicate
Accounting Byelaw. They have elected to prepare the accounts in accordance with FRS 102 The Financial Reporting Standard
applicable in the UK and Republic of Ireland.
Under Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 the Directors of the
managing agent must not approve the underwriting year accounts unless they are satisfied that they give a true and fair view of
the result of the underwriting year at closure. In preparing these accounts, the Directors of the managing agent are required to:
• select suitable accounting policies and then apply them consistently and where there are items which affect more than one
year of account, ensure a treatment which is equitable between the members of the syndicate affected is used;
• 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 accounts;
• assess the syndicate’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern;
and
• use the going concern basis of accounting unless they either intend to cease trading, or have no realistic alternative but to do
so. As explained in note 1 the Directors of the managing agent have not prepared the underwriting year accounts on a going
concern basis.
The Directors of the managing agent are responsible for keeping adequate and proper accounting records that are sufficient to
show and explain the syndicate’s transactions and disclose with reasonable accuracy at any time the financial position of the
syndicate and enable them to ensure that the underwriting year accounts comply with the Insurance Accounts Directive (Lloyd’s
Syndicate and Aggregate Accounts) Regulations 2008. They are responsible for such internal control as they determine is
necessary to enable the preparation of accounts that are free from material misstatement, whether due to fraud or error, and
have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the company and
to prevent and detect fraud and other irregularities.
On behalf of the Board
C C J Wong
Chief Financial Officer
5 March 2025
www.beazley.com Beazley | Syndicate 6107 Annual report 2024
37
Independent auditor’s report to the members
of Syndicate 6107 2022 closed year of account
Opinion
We have audited the syndicate underwriting year accounts for the 2022 year of account of Syndicate 6107 (‘the syndicate’) for
the three years ended 31 December 2024 which comprise the Statement of Comprehensive Income, the Statement of
Members’ Balances, Balance Sheet, the Statement of Cash Flows and the related notes 1 to 11, including a summary of
significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law
and United Kingdom Accounting Standards including FRS 102 “The Financial Reporting Standard applicable in the UK and
Republic of Ireland” and FRS 103 “Insurance Contracts” (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the syndicate underwriting year accounts:
• give a true and fair view of the profit for the 2022 closed year of account;
• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
• have been prepared in accordance with the requirements of The Insurance Accounts Directive (Lloyd’s Syndicate and
Aggregate Accounts) Regulations 2008 and have been properly prepared in accordance with the Lloyd’s Syndicate Accounting
Byelaw (no. 8 of 2005).
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our
responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the syndicate
underwriting year accounts section of our report. We are independent of the syndicate in accordance with the ethical
requirements that are relevant to our audit of the syndicate underwriting year accounts in the UK, including the FRC’s Ethical
Standard as applied to other entities of public interest, and we have fulfilled our other ethical responsibilities in accordance
with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Emphasis of matter – closure of the 2022 year of account
We draw attention to the Note 1 which explains that the 2022 year of account of Syndicate 6107 has closed and all assets and
liabilities transferred to the 2023 year of account by reinsurance to close at 31 December 2024.
As a result, the syndicate underwriting year accounts for the 2022 year of account of syndicate 6107 have been prepared under
basis other than going concern.
Our opinion is not modified in respect of this matter.
Other information
The other information comprises the information included in the Underwriting Year report and accounts, other than the
syndicate underwriting year accounts and our auditor’s report thereon. The managing agent is responsible for the other
information contained within the Underwriting Year report and accounts.
Our opinion on the syndicate underwriting year accounts does not cover the other information and, except to the extent
otherwise explicitly stated in this report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially
inconsistent with the syndicate underwriting year accounts or our knowledge obtained in the course of the audit or otherwise
appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are
required to determine whether this gives rise to a material misstatement in the syndicate underwriting year accounts
themselves. If, based on the work we have performed, we conclude that there is a material misstatement of the other
information, we are required to report that fact.
We have nothing to report in this regard.
38
Beazley | Syndicate 6107 Annual report 2024 www.beazley.com
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where The Lloyd’s Syndicate Accounting Byelaw (no. 8 of 2005)
requires us to report to you, if in our opinion:
• the managing agent in respect of the syndicate has not kept adequate accounting records; or
• the syndicate underwriting year accounts are not in agreement with the accounting records.
Responsibilities of the managing agent
As explained more fully in the Statement of Managing Agent’s Responsibilities on page 37 , the managing agent is responsible
for the preparation of the syndicate underwriting year accounts in accordance with The Insurance Accounts Directive (Lloyd’s
Syndicate and Aggregate Accounts) Regulations 2008 and The Lloyd’s Syndicate Accounting Byelaw (no. 8 of 2005) and for
being satisfied that they give a true and fair view, and for such internal control as the managing agent determines is necessary
to enable the preparation of the syndicate underwriting year accounts that are free from material misstatement, whether due to
fraud or error.
In preparing the syndicate underwriting year accounts, the managing agent is responsible for assessing the syndicate’s ability
to realise its assets and discharge its liabilities in the normal course of business, disclosing, as applicable, any matters that
impact its ability to do so.
Auditor’s responsibilities for the audit of the syndicate underwriting year accounts
Our objectives are to obtain reasonable assurance about whether the syndicate underwriting year accounts as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK)
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these syndicate underwriting year accounts.
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect irregularities, including fraud. The risk of not detecting a material misstatement due
to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for
example, forgery or intentional misrepresentations, or through collusion.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. However, the
primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the managing
agent and management.
Our approach was as follows:
• We obtained a general understanding of the legal and regulatory frameworks that are applicable to the syndicate and
determined that the most significant are direct laws and regulations related to elements of Lloyd’s Byelaws and Regulations,
and the financial reporting framework (UKGAAP) and requirements referred to by Lloyd’s in the Instructions. Our
considerations of other laws and regulations that may have a material effect on the syndicate underwriting year accounts
included permissions and supervisory requirements of Lloyd’s of London, the Prudential Regulation Authority (‘PRA’) and the
Financial Conduct Authority (‘FCA’).
• We obtained a general understanding of how the syndicate is complying with those frameworks by making enquiries of
management, internal audit, and those responsible for legal and compliance matters of the syndicate. In assessing the
effectiveness of the control environment, we also reviewed significant correspondence between the syndicate, Lloyd’s of
London and other UK regulatory bodies; reviewed minutes of the Board and Risk Committee of the managing agent; and
gained an understanding of the managing agent’s approach to governance.
• For direct laws and regulations, we considered the extent of compliance with those laws and regulations as part of our
procedures on the related syndicate underwriting year accounts’ items.
• For both direct and other laws and regulations, our procedures involved: making enquiries of the directors of the managing
agent and senior management for their awareness of any non-compliance of laws or regulations, enquiring about the policies
that have been established to prevent non-compliance with laws and regulations by officers and employees, enquiring about
the managing agent’s methods of enforcing and monitoring compliance with such policies, and inspecting significant
correspondence with Lloyd’s, the FCA and the PRA.
• The syndicate operates in the insurance industry which is a highly regulated environment. As such the Senior Statutory
Auditor considered the experience and expertise of the engagement team to ensure that the team had the appropriate
competence and capabilities, which included the use of specialists where appropriate.
www.beazley.com Beazley | Syndicate 6107 Annual report 2024
39
Independent auditor’s report to the members
of Syndicate 6107 2022 closed year of account continued
• We assessed the susceptibility of the syndicate’s underwriting year accounts to material misstatement, including how fraud
might occur by considering the controls that the managing agent has established to address risks identified by the managing
agent, or that otherwise seek to prevent, deter, or detect fraud. We also considered areas of significant judgement, complex
transactions, performance targets, economic or external pressures and the impact these have on the control environment.
Where this risk was considered to be higher, we performed audit procedures to address each identified fraud risk including,
– Reviewing accounting estimates for evidence of management bias. Supported by our Actuaries we assessed if there were
any indicators of management bias in the valuation of insurance liabilities and the recognition of estimated premium
income.
– Evaluating the business rationale for significant and/or unusual transactions.
• These procedures included testing manual journals and were designed to provide reasonable assurance that the syndicate
underwriting year accounts were free from fraud or error.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting
Council’s website at https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the syndicate’s members, as a body, in accordance with The Lloyd’s Syndicate Accounting Byelaw
(no. 8 of 2005) and The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008. Our audit
work has been undertaken so that we might state to the syndicate’s members those matters we are required to state to them
in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the syndicate and the syndicate’s members as a body, for our audit work, for this report, or
for the opinions we have formed.
Niamh Byrne (Senior statutory auditor)
for and on behalf of Ernst & Young LLP, Statutory Auditor
London
5 March 2025
40
Beazley | Syndicate 6107 Annual report 2024 www.beazley.com
Profit or loss account
2022 year of account for the 36 months ended 31 December 2024
Notes
2022 year
of account
$m
Gross premiums written 81.4
Outward reinsurance premiums (0.8)
Earned premiums, net of reinsurance
80.6
Allocated investment return transferred from the non-technical account 4.5
Reinsurance to close premiums received, net of reinsurance 4 47.1
Investment return and reinsurance adjusted premium
51.6
Reinsurance to close premiums payable, net of reinsurance 5 (71.5)
Gross claims paid (31.4)
Reinsurers’ share 4.0
Claims incurred, net of reinsurance
(98.9)
Net operating expenses
7
(21.1)
Balance on the technical account
12.2
Loss on foreign exchange (0.6)
Investment return 4.5
Allocated investment return transferred to the technical account (4.5)
Profit for the 2022 closed YOA
6
11.6
Syndicate allocated capacity (£m) 67.4
Profit for the 2022 closed YOA (£m) 9.1
Return on capacity 13.5 %
There are no recognised gains or losses in the accounting period other than those dealt with within the profit or loss account
above.
www.beazley.com Beazley | Syndicate 6107 Annual report 2024
41
Statement of changes in members’ balances
for the 36 months ended 31 December 2024
2022 year
of account
$m
Profit for the 2022 closed YOA 11.6
Amounts due to members at 31 December 2024 11.6
Members participate in syndicates by reference to YOA and their ultimate result, assets and liabilities are assessed with
reference to policies incepting in that YOA in respect of their membership of a particular year.
42
Beazley | Syndicate 6107 Annual report 2024 www.beazley.com
Balance sheet
closed at 31 December 2024
Notes
2022 year
of account
$m
Assets
Debtors 8 46.2
Reinsurance recoveries anticipated on gross reinsurance
to close premiums payable to close the account
5 9.7
Cash at bank and in hand 36.2
Prepayments and accrued income 0.9
Total assets
93.0
Members' balances and liabilities
Members' balances
Amounts due from members
9 11.6
Liabilities
Reinsurance to close premium payable to close the account – gross amount 5 80.3
Creditors 10 1.1
Total liabilities
93.0
The underwriting year accounts on pages 41 to 48 were approved by the Board of Directors on 5 March 2025 and were signed
on its behalf by:
P J Bantick
Director
C C J Wong
Chief Financial Officer
www.beazley.com Beazley | Syndicate 6107 Annual report 2024
43
Cash flow statement
2022 year of account for the 36 months ended 31 December 2024
2022 year
of account
$m
Cash flows from operating activities
Total comprehensive income for 2022 YOA 11.6
Increase in gross technical provisions 80.3
Increase in reinsurers' share of gross technical provisions (9.7)
Increase in debtors (46.2)
Movement in other assets/liabilities (0.9)
Increase in creditors 1.1
Investment return (4.5)
Foreign exchange –
Net cash flow from operating activities
31.7
Cash flows from investing activities
Investment income received 4.5
Net cash flow from investing activities
4.5
Cash flows from financing activities
Net cash flow from financing activities
–
Net increase/(decrease) in cash and cash equivalents
36.2
Cash and cash equivalents at the beginning of the year 2022 –
Foreign exchange on cash and cash equivalents –
Cash and cash equivalents at the end of the year 2022
36.2
44
Beazley | Syndicate 6107 Annual report 2024 www.beazley.com
1 Accounting policies
Basis of preparation
These underwriting accounts have been prepared in accordance with the Insurance Accounts Directive (Lloyd’s Syndicate
and Aggregate Accounts) Regulations 2008 (‘the Regulations’) and applicable Accounting Standards in the United Kingdom,
including Financial Reporting Standard 102 (FRS 102) and Insurance Contracts (FRS 103). They have also been prepared in
accordance with Lloyd’s Syndicate Accounting Byelaw (N0.8 of 2005) and in accordance with the provisions of Schedule 3 of
the Large and Medium-size Companies and Groups (Accounts and Reports) Regulations relating to insurance companies.
Whilst the Directors of the managing agent have a reasonable expectation that the syndicate has adequate resources to
continue in operational existence for the foreseeable future, these financial statements represent the participation of members
in the 2022 year of account ('YOA') which closed on 31 December 2024. The accumulated profits of the 2022 YOA will be
distributed shortly after publication of these accounts. Therefore the 2022 YOA is not continuing to trade and, accordingly,
the Directors have not adopted the going concern basis in the preparation of these accounts. The amounts reported would
be identical if the accounts had been prepared on a going concern basis as the 2022 YOA will be closed by payment of a
reinsurance to close premium, as outlined in note (a) below, which is consistent with the normal course of business for a
Lloyd’s syndicate and with the approach applied to earlier underwriting years.
The principal accounting policies applied in the preparation of these underwriting accounts are set out below. The policies have
been consistently applied to all periods presented, unless otherwise stated. All amounts presented are stated in US dollars,
being the syndicate’s functional currency, and in millions, unless noted otherwise.
Underwriting transactions
(a) The underwriting accounts for each YOA are normally kept open for three years before the result on that year is determined.
At the end of the three year period, outstanding liabilities can normally be determined with sufficient accuracy to permit the
YOA to be closed by payment of a reinsurance to close premium to the successor YOA.
(b) Gross premiums are allocated to years of account on the basis of the inception date of the policy. Commission and
brokerage are charged to the YOA to which the relevant policy is allocated. Policies written under binding authorities,
lineslips or consortium arrangements are allocated to the YOA into which the arrangement incepts. Additional and return
premiums follow the YOA of the original premium. Premiums in respect of reinsurance ceded are attributed to the same year
as the original risk being protected. Gross premiums are stated before the deduction of brokerage, taxes and duties levied
on them. Estimates are made for pipeline premiums, representing amounts due to the syndicate not yet notified.
(c) Gross claims paid are allocated to the same YOA as that to which the corresponding premiums are allocated and include
internal and external claims settlement expenses. Reinsurance recoveries are allocated to the YOA to which the claim was
charged.
(d) A provision for unexpired risks is made where claims, related expenses and deferred acquisition costs, likely to arise after
the balance sheet date in respect of contracts relating to the closing YOA, are expected to exceed the unearned premiums
and premiums receivable under these contracts, after the deduction of any acquisition costs deferred.
(e) The reinsurance to close premium is determined by reference to outstanding liabilities, including claims incurred but not
yet reported, relating to the closed year and to all previous closed years reinsured therein. Although the estimate of net
outstanding liabilities is considered to be fair and reasonable, it is implicit in the estimation procedure that the ultimate
liabilities will be at variance from the premium so determined. The reinsurance to close premium includes a provision for
unearned premiums and unexpired risks at the balance sheet date, net of deferred acquisition costs.
(f) Please refer to note 1 Accounting policies in the Syndicate 6107 annual accounts for details around measurement of
insurance contracts.
Comparatives
(g) Comparatives are not provided in these syndicate underwriting year accounts as each syndicate YOA is a separate annual
venture.
Investment return
(h) Investment return consists of the syndicates share of the host syndicate’s investment return. The investment return is
wholly allocated to the technical account.
Notes to the syndicate underwriting year accounts
closed at 31 December 2024
www.beazley.com Beazley | Syndicate 6107 Annual report 2024
45
1 Accounting policies continued
Syndicate operating expenses
(i) Acquisition costs comprise brokerage, premium levy, and staff related costs of the underwriters acquiring the business.
Costs incurred by the managing agent in respect of the syndicate are charged to the syndicate. Where expenses do not relate to
any specific YOA they are apportioned between years of account on a basis which reflects the benefit obtained by each YOA
from each type of expense.
(j) Where expenses are incurred jointly by the managing agent and the syndicate, they are apportioned as follows:
• salaries and related costs – according to the staff time spent on dealing with syndicate matters;
• accommodation costs – proportioned based on the overall staff costs allocation above; and
• other costs – as appropriate in each case.
Taxation
(k) 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 income tax deducted from syndicate investment income is recoverable by managing agents
and consequently the distribution made to members or their members’ agents is gross of tax. Capital appreciation falls
within trading income and is also distributed gross of tax. It is the responsibility of members to agree and settle their
individual tax liabilities with the Inland Revenue.
(l) No provision has been made for any US federal income tax payable on the underwriting results or investment earnings. Any
payments on account made by the syndicate during the year have been included in the balance sheet under the heading
‘other debtors’.
No provision has been made for any other overseas tax payable by members on underwriting results. Members resident
overseas for tax purposes are responsible for agreeing and settling any tax liabilities with the taxation authorities of their
country of residence.
Basis of currency translation
(m) The functional and presentational currency of the syndicate is US dollars. Non-USD denominated items going through the
profit or loss account are translated to US dollars at the three years’ average rates of exchange. Assets and liabilities
denominated in foreign currencies at the balance sheet date are retranslated to the functional currency at the foreign
exchange rate at that date.
2 Risk management
The 2022 YOA has closed and all assets and liabilities have been transferred to a reinsuring YOA. The risks that it is exposed
to in respect of the reported financial position and financial performance are significantly less than those relating to the open
YOA's as disclosed in the syndicate annual accounts. Accordingly, these underwriting year accounts do not have associated risk
disclosures as required by section 34 of FRS 102. Full disclosures relating to these risks are provided in the syndicate annual
accounts.
3 Analysis of underwriting result
All business was concluded in the UK under one reinsurance contract. All risks relate to property (43%), digital (5%) and cyber
(52%) business. This is calculated based off the syndicate's gross written premium.
4 Reinsurance to close premiums received
2022 year
of account
$m
Gross reinsurance to close premiums received 70.8
Reinsurance recoveries anticipated (23.7)
Reinsurance to close premiums received, from 2021 and earlier, net of reinsurance
47.1
Notes to the syndicate underwriting year accounts
closed at 31 December 2024 continued
46
Beazley | Syndicate 6107 Annual report 2024 www.beazley.com
5 Reinsurance to close premiums payable
2022 year
of account
$m
Gross reinsurance to close premiums through profit and loss 81.5
Reinsurance recoveries anticipated through profit and loss (10.0)
Foreign exchange (0.9)
Reinsurance to close premiums payable to 2023 net of reinsurance
70.6
Reported IBNR Total
$m $m $m
Gross reinsurance to close premium payable
37.6 42.7 80.3
Reinsurance recoveries anticipated
1.4 (11.1) (9.7)
Reinsurance to close premiums payable, net of reinsurance
39.0 31.6 70.6
6 Analysis of the 2022 year of account result
2022 year
of account
$m
Amount attributable to business allocated to the 2022 year of account 18.7
Deficit on the reinsurance to close for the 2021 year of account (7.1)
11.6
7 Net operating expenses
2022 year
of account
$m
Acquisition costs 10.0
Reinsurance commissions and profit participation 10.7
Administrative expenses 0.4
21.1
Administrative expenses include:
Audit services 0.1
8 Debtors
2022 year
of account
$m
Debtors arising out of reinsurance operations 11.8
Amounts due from other syndicates 34.4
46.2
These balances are due within one year.
www.beazley.com Beazley | Syndicate 6107 Annual report 2024
47
9 Amounts due to members
2022 year
of account
$m
Profit for the 2022 closed YOA before standard personal expenses 11.9
Members standard personal expenses (0.3)
Amounts due to members at 31 December 2024
11.6
10 Creditors
Amounts due to other creditors including taxation for 2022 YOA were $1.1m, which relate to "creditors arising out of direct
insurance operations" in the year. In this balance is a receivable from Beazley Management Limited ('BML') of 0.4m. Balances
are payable within one year.
11 Related parties transactions
Please refer to page 31 of the syndicate annual accounts for further details of related party transactions for the 2022 YOA.
The business written by Syndicate 6107 is ceded from syndicates 2623 and 623, for which Syndicate 6107 pays an overrider
commission and a profit commission. The profit commission payable and the overrider commission are included within
operating expenses and are disclosed in note 7. As at the balance sheet date, the 2022 YOA has a receivable from BML of
$0.4m, and this is included in other creditors, disclosed within note 10. BML provides services to the managing agent, and by
extension, to the syndicate.
The intercompany positions with other syndicates managed by BFL at 31 December 2024 are disclosed above in note 9 of the
syndicate annual accounts.
All transactions between the syndicate and companies within the Beazley Group are conducted on normal market terms.
BFL as the managing agent of the syndicate is responsible for settling intercompany balances with other managed syndicates
and net amounts due to/from other related entities.
BFL, the managing agent of Syndicate 6107, is a wholly-owned indirect subsidiary of Beazley plc.
Notes to the syndicate underwriting year accounts
closed at 31 December 2024 continued
48
Beazley | Syndicate 6107 Annual report 2024 www.beazley.com
Seven-year summary of closed year results
(unaudited)
at 31 December 2024
2022 2021 2020 2019 2018 2017 2016
Syndicate allocated capacity – £’m 67.4 70.5 69.5 67.6 55.1 46.6 28.6
Syndicate allocated capacity – $’m 93.1 87.4 88.3 89.3 71.6 62.4 44.9
Capacity utilised 76 % 98 % 85 % 72 % 83 % 84 % 87 %
Aggregate net premiums – $’m 70.5 85.2 75.0 55.0 43.8 45.1 32.3
Underwriting profit as a percentage
of gross premiums
26.2 % 23.7 % 8.8 % 36.1% (9.3%) (26.2%) 43.6%
Return on capacity 13.5 % 30.8 % (1.0) % 16.9% (8.9%) (27.9%) 33.3%
Results for an illustrative £10,000 share
Gross premiums – $'000s 10.6 14.4 10.8 9.5 10.7 11.8 11.3
Net premiums 10.5 12.1 9.2 8.1 7.9 9.7 11.3
Reinsurance to close from an earlier account 7.0 6.0 4.5 4.0 3.7 1.7 1.9
Net claims (4.1) (6.1) (6.6) (4.0) (7.9) (9.9) (4.4)
Reinsurance to close the year of account (10.6) (6.7) (6.2) (4.7) (4.8) (4.4) (2.9)
Underwriting profit/(loss) 2.8 5.3 0.9 3.4 (1.0) (3.0) 5.9
Profit/(loss) on foreign exchange (0.1) 0.1 0.1 – 0.4 – –
Syndicate operating expenses (1.6) (1.9) (1.2) (1.3) (0.9) (0.9) (0.1)
Balance on technical account 1.1 3.5 (0.2) 2.1 (1.6) (3.9) 5.8
Gross investment return 0.6 0.4 0.1 0.1 0.4 0.3 0.6
Profit/(loss) before personal expenses 1.7 3.9 (0.1) 2.2 (1.2) (3.6) 6.4
Illustrative personal expenses
Illustrative personal expenses — — — — — — (0.1)
Managing agent’s profit commission — — — — — — (2.0)
Profit/(loss) after illustrative profit
commission and personal expenses ($)
1.7 3.9 (0.1) 2.2 (1.2) (3.6) 4.3
Profit/(loss) after illustrative profit
commission and personal expenses (£)
1.4 3.1 (0.1) 1.7 (0.9) (2.8) 3.3
Notes:
1 The illustrative profit commission and personal expenses are estimates of amounts which might be charged on an illustrative share of £10,000. The agency
agreements for 1991 and subsequent years of account only provide for the deduction of fees and profit commission on behalf of the managing agent.
2 The effect of any minimum charges on personal expenses or deficit clauses on profit commission have been ignored.
3 Internal claims settlement expenses have been included in ‘net claims’.
4 The above figures are stated before members’ agents’ fees.
5 Profit after illustrative profit commission and personal expenses is shown in dollars and converted to sterling at the closing rate.
6 Gross and net premium amounts shown above are net of brokerage expenses.
7 The summary of closed years results are on a 'pure year' basis.
www.beazley.com Beazley | Syndicate 6107 Annual report 2024
49
Managing agent's corporate information
Beazley Furlonge Limited has been the managing agent of Syndicate 6107 throughout the period covered by this report and the
registered office is 22 Bishopsgate, London, EC2N 4BQ, United Kingdom.
Directors
R A Stuchbery* - Chair
A P Cox - Chief Executive Officer and Active Underwriter
G P Blunden* - (resigned 31/03/2024)
C C R Bannister* - (resigned 31/03/2024)
A J Reizenstein*
N Walll*
L Santori*
R S Anarfi
R J Clark* - (appointed 23/05/2024)
P J Bantick - (appointed 07/06/2024)
C C J Wong - (appointed 17/09/2024)
S M Lake - (resigned 30/06/2024)
R E Quane - (resigned 04/10/2024)
* Non-Executive Director.
Company secretary
R Yeoman
Managing agent’s registered office
22 Bishopsgate
London
EC2N 4BQ
United Kingdom
Registered number
01893407
Auditor
Ernst & Young LLP
25 Churchill Place
London
E14 5EY
Banker
Deutsche Bank AG
Winchester House
London
1 Great Winchester Street
EC2N 2DB
50
Beazley | Syndicate 6107 Annual report 2024 www.beazley.com
www.beazley.com Beazley | Syndicate 6107 Annual report 2024
51
Beazley Furlonge Limited
Syndicate 6107 at Lloyd’s
22 Bishopsgate
London
EC2N 4BQ
T +44 (0)20 7667 0623
info@beazley.com
www.beazley.com
Syndicate 6107
annual report 2024
investor.relations.beazley.com
52
Beazley | Syndicate 6107 Annual report 2024 www.beazley.com
