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CONTENTS
1 Syndicate 6103 Annual Report and Accounts 2024
SYNDICATE 6103
Annual Report and Accounts for the year ended
CONTENTS
2 Syndicate 6103 Annual Report and Accounts 2024
Directors and Administration 3
Managing Agent’s Report 4
Statement of Managing Agent’s Responsibilities 11
Independent Auditor’s Report 12
Statement of Comprehensive Income: Technical Account - General Business 16
Statement of Comprehensive Income: Non-Technical Account 17
Statement of Financial Position 18
Statement of Cash Flows 19
Notes to the Accounts 20
DIRECTORS AND ADMINISTRATION
3 Syndicate 6103 Annual Report and Accounts 2024
MANAGING AGENT
Managing Agent
Directors
K Allchorne (Non-executive)
C E Dandridge (Non-executive)
A S Foote (Non-executive)
T P Froehlich (Non-executive)
A Kong
T R McDermott
J J Parker
D E S Shipley (Non-executive Chairman)
C J Smelt
R K Trubshaw (Active Underwriter)
N D Williams (appointed 1 January 2024)
Company Secretary
J J Parker
Managing Agent’s Registered Office
110 Bishopsgate
London
EC2N 4AY
Managing Agent’s Registration
Registered in England; number: 03985640
SYNDICATE
Active Underwriter
R K Trubshaw
Principal Investment Managers
Schroders Investment Management Limited
Statutory Auditor
Deloitte LLP
1 New Street Square
London
EC4A 3HQ
MANAGING AGENT’S REPORT
4 Syndicate 6103 Annual Report and Accounts 2024
The directors of the managing agent present their report for the year ended 31 December 2024. The principal activity
of the syndicate is that of writing reinsurance business.
This annual report is prepared using the annual basis of accounting as required by the Insurance Accounts Directive
(Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 (‘the 2008 Regulations’), FRS 102 and FRS 103 being
applicable UK GAAP accounting standards, and in accordance with the provisions of Schedule 3 of the Large and
Medium-sized Companies and Groups (Accounts and Reports) Regulations relating to insurance companies.
The syndicate commenced underwriting for the 2007 year of account. All 2021 and prior years have been reinsured
into Syndicate 2791. From the 2022 year of account its business was written by way of a 30% quota share of all US
property catastrophe business (other than terrorism and retrocession business) written by Syndicate 2791.
Worldwide business may be written, as long as the predominant exposure is the United States.
The syndicate is charged a 5% ceding commission and an overriding commission of up to 1% of gross premiums
written under the contract to cover administration expenses, Lloyd’s levies and subscriptions borne by Syndicate
2791. The syndicate does not pay any brokerage costs. A profit commission of 15% of any underwriting profit is
payable to the managing agent. The syndicate purchased reinsurance protection for the 2023 year of account but did
not for the 2022 and 2024 years of account. The maximum net exposure appetite is managed to 125% of capacity,
after reinstatement premium, in any one of Lloyd’s mandated Realistic Disaster Scenarios.
UNDERWRITER’ S REPORT
A Review of the Calendar Year Result
These financial statements are prepared focusing on the calendar year results under UK Generally Accepted
Accounting Practice (GAAP) for insurance companies.
The 2024 calendar year produced an annually accounted profit of £29.3m (2023: £35.0m) on net earned premiums
of £78.7m (2023: £61.4m). All the syndicate’s business comprises US property catastrophe risks. The net combined
ratio was 69.8% (2023: 45.3%).
Movement on underwriting years of account during the 2024 calendar year
2022
£’000
2023
£’000
2024
£’000
Total
£’000
2023
£’000
Gross written premium
130
2,015
77,190
79,335
61,888
Net premium earned
130
6,756
71,796
78,682
60,959
Net claims incurred
1,996
1,636
(49,184)
(45,552)
(19,657)
Operating expenses
(15)
(2,130)
(7,198)
(9,343)
(7,955)
Investment income
583
2,704
1,148
4,435
1,748
Non-technical account foreign currency adjustment
4
6
9
19
(30)
Annual accounted profit
2,698
8,972
16,571
28,241
35,065
Currency translation differences
16
656
397
1,069
(118)
Total
Comprehensive
Income
2,714
9,628
16,968
29,310
34,947
As previously reported
(3,139)
27,616
-
24,477
(12,901)
Cumulative pure year result
(425)
37,244
16,968
53,787
22,046
Net annual accounting ratios:
Claims ratio
57.9
32.2%
Expense ratio
11.9
13.0%
Combined ratio
69.8
45.3%
MANAGING AGENT’S REPORT
continued
5 Syndicate 6103 Annual Report and Accounts 2024
Gross Written
Premium
Net Written
Premium
Net Earned
Premium
Underwriting
Profit/(Loss)
2024
£’000
£’000
£’000
£’000
Property reinsurance
79,335
79,335
78,682
28,222
Gross Written
Premium
Net Written
Premium
Net Earned
Premium
Underwriting
Profit/(Loss)
2023
£’000
£’000
£’000
£’000
Property reinsurance
61,888
61,469
60,959
35,065
2024 Overview
Net earned premium income was up 29% over 2023.
There are no back years, due to the commutation agreement with syndicate 2791; all open years contributed to the
positive result, as prior year loss picks settle out within expectations. There were two major land-falling hurricanes
in 2024. Helene struck the Big Bend of Florida, east of Tallahassee, running north into Georgia and then into the
Carolinas, we believe causing ultimate market losses of nearly $20bn. Milton then struck central Florida, running from
Sarasota through to Volusia. Indicative market losses are less than $20bn. However, it is still very early in the claims
process and we are more comfortable reserving it as a $25bn - $30bn event. At year end we are holding $22.0m for
Helene as an ultimate loss (of which $10.9m has been incurred), and $25.8m for Milton (of which $4.5m has been
incurred). Both Helene and Milton losses are within business plan.
2025 Trading Conditions
The market psychology shifted in the run up to 1/1 2025, with considerable softening in terms and conditions. Whilst
only around 20% of the book renews at this time, year on year we cut back markedly, although we were able to
defend our core regional account to a reasonable degree. Our view is that many in the market have drawn false
comfort from the fact that Milton in particular was a ‘near-miss’. It’s as if, having crossed the street and narrowly
avoided getting hit by a truck, a child draws the conclusion that it is therefore safe to cross streets. We believe is that
the demonstrably elevated incidence of hurricane activity in the Gulf over the last decade shows that our frequency
loads actually need to be increased further rather than reduced. As such we have moved our technical price from
179% to 200% of the indexed historic mean for hurricane risk: which is the maximum calculated level assuming the
last 5 years is now the new norm. Whereas last year there was a modest credit for the lack of hurricane a ctivity
outside the Gulf, this has now been removed.
Of course, if future loss incidence were to reflect more closely the historic indexed mean, then this conservatism in
our frequency loads may be unwound. If, in the meantime, we become relatively uncompetitive then so be it.
Hence, until the California Wildfires erupted, we were looking to adopt a much more defensive stance, and it was
likely that the book would shrink throughout 2025. We now anticipate that, should many of the large Nationwide
covers - most of whom we don’t write due to inadequate technical pricing and extremely broad coverage – incur
meaningful loss for really the first time since hurricane Katrina in 2005, then the market psychology should shift back
to a much more risk averse position. That the loss has happened so early in the year should cause many in the market
to hesitate before discounting price ahead of the US hurricane season, particularly if they only have one (or even no)
limit left of retrocession protection.
In this case, it is likely that we would be able to achieve our business plan targets, and fully utilise the £100m Stamp.
MANAGING AGENT’S REPORT
continued
6 Syndicate 6103 Annual Report and Accounts 2024
FINANCIAL REPORT
Investment Return
The investment return is represented by the syndicate’s share of income earned by Syndicate 2791 on balances
(underwriting, non-technical and statement of financial position funding) received or paid on Syndicate 6103’s behalf.
Income receivable or chargeable is calculated monthly on average balances actually received or paid by Syndicate
2791 at relevant rates for each currency, as set out in the reinsurance agreement.
The investment return contributed a gain of £4.4m (2023: gain of £1.7m) to the annual result.
The syndicate undertakes no lending of securities and does not undertake exchange rate management.
Currency Translation Differences
Whilst virtually all of the syndicate’s assets are held in US dollars the results are published in sterling. The result of
this is that changes in the £:US dollar exchange rate can alter the reported sterling results. However, as capital
providers receive distributions virtually all in US dollars, the accounting exchange movement booked has no effect on
the currency distributions to capital providers.
The accounting exchange gain for the year is £1.1m (2023: loss £0.1m).
Reinsurance Balances
The syndicate has purchased reinsurance for the 2023 year of account but did not do so for the 2024 and 2022 years.
The reinsurance for 2023 is a single Industry Loss Warranty (ILW) contract and is purchased to mitigate Realistic
Disaster Scenario (RDS) size losses/tail events.
Solvency Capital Requirement
The managing agent is required to provide a Solvency Capital Requirement (SCR) to Lloyd’s which sets the capital
required to be held by the members of the syndicate for the prospective underwriting year. Lloyd’s syndicate SCRs are
combined to provide the basis of the Lloyd’s internal model which the Prudential Regulation Authority originally
approved in December 2016.
This amount is derived from the syndicate’s loss distribution, which is calculated internally. It is the loss at the 99.5th
confidence level, 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 on which it is participating but not another member’s 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 for that member. Over and above this, Lloyd’s applies a capital uplift to the member’s capital requirement,
known as the Economic Capital Requirement (ECR). The purpose of this uplift, which is a Lloyd’s not a Solvency II
requirement, is to meet Lloyd’s financial strength, licence and ratings objectives. The capital uplift applied for 2025 is
35% (2024: 35%) of the member SCR ‘to ultimate’.
The syndicate's current capital requirement has been established using our internal Solvency II model which has been
run within the capital regime as prescribed by Lloyd’s. The internal model uses sophisticated mathematical models
reflecting key risks within the syndicate. The risks are principally Insurance (catastrophes, pricing and reserving),
Market (equity, liquidity, currency, interest rate and spread), Credit (brokers, investment and reinsurance) and
Operational. The following table sets out the syndicate’s ECR which is unaudited:
2025
2024
£’m
£’m
6103
227.4
207.3
The syndicate quota share arrangement with Syndicate 2791 has remained at 30% cession for the 202 4 and 2025
years of account which is reflected in similar ECR capital as shown above.
MANAGING AGENT’S REPORT
continued
7 Syndicate 6103 Annual Report and Accounts 2024
European Union Business
To ensure continued market access for syndicates to European (re)insurance business post ‘Brexit’, Lloyd’s established
a Belgian subsidiary – Lloyd’s Insurance Company S.A. (LIC) – authorised and regulated as an insurance entity by the
national Bank of Belgium and regulated by the Belgian Financial Services and Markets Authority.
This 100% owned European domiciled subsidiary is capitalised in accordance with Solvency II rules and is licensed to
write non-life risks across the European economic area (EEA).
From its establishment all ‘live’ business underwritten by Lloyd’s Insurance Company S.A. has been 100% reinsured
back to the originating Lloyd’s syndicate.
Future Developments
The syndicate continues to transact United States reinsurance business that it has transacted in historically.
Research and Development
The syndicate has not participated in any research and development activity during the period.
RISK MANAGEMENT
We have established a risk management framework whose primary objective is to protect the syndicate from events
which negatively impact current and future returns.
Principal Risks and Uncertainties
Syndicate 6103 accepts business under a funds withheld reinsurance contract with Syndicate 2791. The majority of
the principal risks applying to Syndicate 6103 are managed within Syndicate 2791.
Insurance risk
Insurance risk includes the risks that a policy will be written for too low a premium or provide inappropriate cover,
that the frequency or severity of insured events will be higher than expected, or that estimates of claims subsequently
prove to be insufficient. Underwriting strategy is agreed by MAP’s Board and set out in the Syndicate Business Plan
which is submitted to Lloyd’s each year. Processes are in place to identify, quantify and manage aggregate exposures
and technical prices within each of our underwriting classes. Reinsurance is purchased where appropriate to our r isk
appetite and reduces the retained financial impact of catastrophic loss. Reserves set are subject to stress testing and
independent review.
Credit risk
Credit risk is the risk of default or the inability of one or more of the syndicate’s reinsurers or brokers to settle their
debts as they fall due. Where reinsurance is purchased it is placed with security that meets the criteria agreed by the
Board. Use is made of independent rating agencies. Business is only accepted through accredited Lloyd’s brokers who
are reviewed by the Agency’s Security Committee. The syndicate has purchased reinsurance for the 2023 year of
account but did not do so for the 2024 and 2022 years.
Liquidity risk
This is the risk that the syndicate will not be able to meet its liabilities as they fall due, owing to a shortfall in cash.
Liquidity management forms an important part of the financial management practices of the syndicate. Cash flow
projections and budgetary controls are maintained and reported upon to the Board. However, the syndicate has no
cash and investments and this risk is wholly managed by Syndicate 2791.
Market risk
Market risk is the potential adverse financial impact of changes in value of financial instruments caused by
fluctuations in foreign currency, interest rates or equity prices. The potential impact of market risk elements is
reported to the Board and the potential financial impact of changes in market value is principally monitored through
the use of an economic scenario generator in the capital setting process.
MANAGING AGENT’S REPORT
continued
8 Syndicate 6103 Annual Report and Accounts 2024
Foreign currency exchange risk
We operate from the United Kingdom but all our premiums and claims are settled in currencies other than sterling.
Our reported financial results are denominated in sterling and are therefore affected by the exchange rate against
sterling of our main currency assets (US dollars, Euros and Canadian dollars). The syndicate will settle/collect its
surplus assets/liabilities in US dollars as each underwriting year closes, or earlier if a solvency transfer is approved.
We do not therefore seek to hedge the US dollar exposure. Other currencies are tracked against sterling to ensure
the amount of exposure is monitored and if needed appropriate action taken.
Interest rate risk
Interest rate risk is the potential adverse financial impact of changes in value of assets and liabilities caused by rising
or falling market interest rates. For example, debt and fixed income securities are exposed to actual fluctuations or
changes in market perception of current or future interest rates. Exposure to interest rate risk is monitored through
the use of Value-at- Risk analysis, scenario testing, stress testing and duration reviews. Interest rate risk is managed
by matching of assets and liabilities to within five years. Although the syndicate holds no investments it is exposed to
interest rate risk by way of its share of the investment fund held on its behalf by Syndicate 2791.
Operational risk
Operational risk is the potential adverse financial and reputational impact of inadequate or failed internal processes,
people and systems or from external events. An internal risk assessment process has been developed to assess the
potential impact and probability of certain events and a system of internal controls has been implemented to mitigate
the risks. These controls have been monitored by Senior Management and the Board whilst their ongoing
effectiveness is validated through both the ongoing risk assessment and internal audit process.
Regulatory risk
The managing agent and the syndicate are required to comply with the requirements of the Prudential Regulation
Authority (PRA), Financial Conduct Authority (FCA) and Lloyd’s. Lloyd’s requirements include those imposed on the
Lloyd’s market by overseas regulators, particularly in respect of US situs business. Regulatory risk is the risk of loss
owing to a breach of regulatory requirements or failure to respond to regulatory change. The managing agent has a
Risk and Assurance Director who monitors regulatory developments and assesses the impact on agency policy. They
are supported by a Compliance Manager who carries out a compliance monitoring program.
The managing agent continues to monitor its performance, capital strength, financial and reputational credibility
against “The Principles” for doing business at Lloyd’s. We remain committed to nurturing a positive relationship with
Lloyd’s, ensuring open channels of communication are maintained.
Climate change risk
Stress tests have been carried out as part of the ORSA process (and detailed in the Quarterly Risk Report and Annual
ORSA Report), which assess the potential impact of climate change across the major risk categories (Underwriting,
Reserving, Market, Operational and Credit Risk). It was not thought that any of the scenarios stress tested would
materially impact capital or profitability over a one-year time horizon. The Executive and Risk Committee reviewed
the climate change stress testing as part of the ORSA report.
MANAGING AGENT’S REPORT
continued
9 Syndicate 6103 Annual Report and Accounts 2024
CORPORATE GOVERNANCE
Directors and Directors’ Interests
The directors of the managing agent who served during the year ended 31 December 2024 together with their
participations on the syndicate were as follows:
2024 year of
account
2023 year of
account
£’000
£’000
K Allchorne (Non-executive)
-
-
C E Dandridge (Non-executive)
-
-
A S Foote (Non-executive)
(*)
81
76
T P Froehlich (Non-executive)
-
-
A Kong
(*)
246
276
T
R McDermott
-
-
J J Parker
(*)
-
-
D E S Shipley (non-executive Chairman)
(*)
691
597
C J Smelt
(1) (2)
270
257
R K Trubshaw
N Williams
(Appointed 1 January 2024)
2,119
-
1,825
-
*participate via Nomina No 208 LLP, an unaligned corporate members.
The total capacity of the 2024 year of account of the syndicate was £89m.
Governance Framework
MAP maintains a clear organisational and governance framework with the role and responsibility of the Board, sub -
committees, directors and senior staff clearly defined and documented.
An established risk management framework operates in respect of the identification, assessment, management and
monitoring of all core areas of risk to which the business is exposed in its day-to-day activities (insurance risk, market
risk, reserving risk, credit risk, liquidity risk and operational risk) with defined and articulated risk appetites in all
areas.
MAP operates a three lines of defence approach to its operations. the first line of defence is the day-to-day operational
level controls; the second line of defence being a framework for monitoring and managing risks and controls; and the
third being challenge through both:
• oversight committees each comprising a majority of non-executive directors; and
• independent assurance review through the Internal Audit Function.
The Committee Structure is shown below:
Day-to-Day
Operational
Control .
MANAGING AGENT’S REPORT
continued
10 Syndicate 6103 Annual Report and Accounts 2024
Reappointment of Auditors
Deloitte LLP are deemed to be reappointed as the syndicate’s auditors.
Disclosure of Information to the Auditors
So far as each person who was a director of the managing agent at the date of approving this report is aware, there
is no relevant audit information, being information needed by the auditor in connection with its report, of which the
auditor is unaware. Having made enquiries of fellow directors of the agency and the syndicate’s auditor, each director
has taken all the steps that he/she is obliged to take as a director in order to make himself/herself aware of any
relevant audit information and to establish that the auditor is aware of that information.
Annual General Meeting
As permitted under the Syndicate Meetings (amendment no.1) Byelaw (no.18 of 2000) MAP does not propose holding
a Syndicate Annual General Meeting of the members of the syndicate. Members may object to this proposal within
21 days of the issue of these accounts. Any such objection should be addressed to J J Parker, Risk & Assurance Director
at the registered office of Managing Agency Partners Limited.
This managing agent's report was approved by the Board of Managing Agency Partners Limited on 28 February 2025
and signed on its behalf by:
R K Trubshaw J J Parker
Active Underwriter Company Secretary
Managing Agency Partners Limited
London
3 March 2025
STATEMENT OF MANAGING AGENT’S RESPONSIBILITIES
11 Syndicate 6103 Annual Report and Accounts 2024
The managing agent is responsible for preparing the syndicate annual accounts in accordance with applicable law
and regulations.
The insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 require the managing
agent to prepare syndicate annual accounts at 31 December each year in accordance with United Kingdom Generally
Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). The annual accounts are
required by law to give a true and fair view of the state of affairs of the syndicate as at that date and of its profit or
loss for that year.
In preparing the syndicate annual accounts, the managing agent is required to:
1. select suitable accounting policies which are applied consistently;
2. make judgements and estimates that are reasonable and prudent;
3. state whether applicable UK accounting standards have been followed, subject to any material departures
disclosed and explained in the annual accounts; and
4. prepare the annual accounts on the basis that the syndicate will continue to write future business unless it
is inappropriate to presume that the syndicate will do so.
The managing agent is responsible for keeping proper accounting records which disclose with reasonable accuracy at
any time the financial position of the syndicate and enable it to ensure that the syndicate annual accounts comply
with the 2008 Regulations. It is also responsible for safeguarding the assets of the syndicate and hence for taking
reasonable steps for prevention and detection of fraud and other irregularities.
The managing agent is responsible for the maintenance and integrity of the corporate and financial information
included on the business’s website. Legislation in the United Kingdom governing the preparation and dissemination
of annual accounts may differ from legislation in other jurisdictions.
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.
INDEPENDENT AUDITOR’S REPORT
12 Syndicate 6103 Annual Report and Accounts 2024
Independent auditor’s report to the members of Syndicate 6103
Report on the audit of the syndicate annual financial statements
Opinion
In our opinion the syndicate annual financial statements of Syndicate 6103 (the ‘syndicate’):
• give a true and fair view of the state 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,
including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and
Republic of Ireland”; and
• have been prepared in accordance with the requirements of The Insurance Accounts Directive (Lloyd’s
Syndicate and Aggregate Accounts) Regulations 2008 and section 1 of the Syndicate Accounts Instructions
Version 2.0 as modified by the Frequently Asked Questions Version [1.1] issued by Lloyd's (the "Lloyd's Syndicate
Accounts Instructions").
We have audited the syndicate annual financial statements which comprise:
• the income statement: technical account – general business;
• the income statement: non-technical account;
• the statement of comprehensive income;
• the statement of financial position;
• the statement of cash flows; and
• the notes to the accounts on pages 20 to 36.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom
Accounting Standards, including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in
the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).
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 annual financial statements section of our report.
We are independent of the syndicate in accordance with the ethical requirements that are relevant to our audit of
the syndicate annual financial statements in the UK, including the Financial Reporting Council’s (the ‘FRC’s’) Ethical
Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe
that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the managing agent’s use of the going concern basis of
accounting in the preparation of the financial statements 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 in
operations for a period of at least twelve months from when the syndicate financial statements 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.
Other information
The other information comprises the information included in the annual report, other than the syndicate annual
financial statements and our auditor’s report thereon. The managing agent is responsible for the other information
contained within the annual report. Our opinion on the syndicate annual financial statements does not cover the
other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of
assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is
materially inconsistent with the syndicate annual financial statements or our knowledge obtained in the course of
the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent
INDEPENDENT AUDITOR’S REPORT
continued
13 Syndicate 6103 Annual Report and Accounts 2024
material misstatements, we are required to determine whether this gives rise to a material misstatement themselves.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information,
we are required to report that fact.
We have nothing to report in this regard.
Responsibilities of managing agent
As explained more fully in the managing agent’s responsibilities statement, the managing agent is responsible for the
preparation of the syndicate annual financial statements and for being satisfied that they give a true and fair view,
and for such internal control as the managing agent determines is necessary to enable the preparation of syndicate
annual financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the syndicate annual financial statements, the managing agent is responsible for assessing the
syndicate’s ability to continue in operation, disclosing, as applicable, matters related to the syndicate’s ability to
continue in operation and to use the going concern basis of accounting unless the managing agent intends to cease
the syndicate’s operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the syndicate annual financial statements
Our objectives are to obtain reasonable assurance about whether the syndicate annual financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted
in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these syndicate annual financial statements.
A further description of our responsibilities for the audit of the syndicate annual financial statements is located on
the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Extent to which 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 material misstatements in respect of irregularities, including
fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
We considered the nature of the syndicate and its control environment, and reviewed the syndicate’s documentation
of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of
management about their own identification and assessment of the risks of irregularities.
We obtained an understanding of the legal and regulatory frameworks that the syndicate operates in, and identified
the key laws and regulations that:
• had a direct effect on the determination of material amounts and disclosures in the financial statements.
These included the Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts), Regulations
2008 and the Lloyd’s Syndicate Accounting Byelaw (no. 8 of 2005); and
• do not have a direct effect on the financial statements but compliance with which may be fundamental to
the syndicate’s ability to operate or to avoid a material penalty. These included the requirements of Solvency
II.
We discussed among the audit engagement team including relevant internal specialists such as actuarial and IT
specialists regarding the opportunities and incentives that may exist within the organisation for fraud and how and
where fraud might occur in the financial statements.
As a result of performing the above, we identified the greatest potential for fraud or non-compliance with laws and
regulations in the following areas, and our procedures performed to address them are described below:
• Auditing standards require that we presume there to be a significant risk of fraud relating to the recognition
of revenue. The sole source of written premium for Syndicate 6103 is premium ceded under a quota share
reinsurance contract for certain classes of business with Syndicate 2791, which is managed by the same
managing agency. The accuracy of recorded premium therefore has the potential to be manipulated by
management. In response we have tested that management have identified the appropriate policies and
INDEPENDENT AUDITOR’S REPORT
continued
14 Syndicate 6103 Annual Report and Accounts 2024
premiums to be ceded to Syndicate 6103 and have applied the correct ceding percentage as per the quota
share reinsurance terms.
• Valuation of technical provisions includes assumptions requiring significant management judgement and
involves complex calculations, and therefore there is potential for management bias. There is also a risk of
overriding controls by making late adjustments to the technical provisions. In response to these risks, we
involved our actuarial specialists to develop independent estimates of the technical provisions. In addition,
significant management judgement is exercised in the valuation of Catastrophe IBNR reserves given
uncertainties in estimating claims emergence relating to event frequency and severity, data limitations and
reinsurance recoveries. We assessed a sample of Catastrophe IBNR reserves classified as significant risk by
inspecting case documentation, challenging management judgements, and performing benchmarking where
possible.
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk
of management override. In addressing the risk of fraud through management override of controls, we tested the
appropriateness of journal entries and other adjustments; assessed whether the judgements made in making
accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant
transactions that are unusual or outside the normal course of business.
In addition to the above, our procedures to respond to the risks identified included the following:
• reviewing financial statement disclosures by testing to supporting documentation to assess compliance with
provisions of relevant laws and regulations described as having a direct effect on the financial statements;
• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks
of material misstatement due to fraud;
• enquiring of management concerning actual and potential litigation and claims, and instances of non-
compliance with laws and regulations; and
• reading minutes of meetings of those charged with governance, reviewing internal audit reports, and
reviewing correspondence with Lloyd’s.
Report on other legal and regulatory requirements
Opinions on other matters prescribed by The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate
Accounts) Regulations 2008
In our opinion, based on the work undertaken in the course of the audit:
• the information given in the managing agent’s report for the financial year for which the financial statements
are prepared is consistent with the financial statements; and
• the managing agent’s report has been prepared in accordance with applicable legal requirements.
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 any material misstatements in the managing agent’s report.
Matters on which we are required to report by exception
Under The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 we are required
to report in respect of the following matters if, in our opinion:
• the managing agent in respect of the syndicate has not kept adequate accounting records; or
• the syndicate annual financial statements are not in agreement with the accounting records; or
• we have not received all the information and explanations we require for our audit.
We have nothing to report in respect of these matters.
INDEPENDENT AUDITOR’S REPORT
continued
15 Syndicate 6103 Annual Report and Accounts 2024
Use of our report
This report is made solely to the syndicate’s members, as a body, in accordance with regulation 10 of The Insurance
Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008. Our audit work has been undertaken
so that we might state to the syndicate’s members those matters we are required to state to them in an auditor’s
report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to
anyone other than the syndicate’s members as a body, for our audit work, for this report, or for the opinions we have
formed.
As required by the Syndicate Accounts Instructions Version 2.0, these financial statements will form part of the
Electronic Format Annual Syndicate Accounts filed with the Council of Lloyd’s and published on the Lloyd’s website.
This auditors’ report provides no assurance over whether the Electronic Format Annual Syndicate Accounts have been
prepared in compliance with Section 2 of the Syndicate Accounts Instructions Version 2. We have been engaged to
provide assurance on whether the Electronic Format Annual Syndicate Accounts has been prepared in compliance
with Section 2 of the Syndicate Accounts Instructions Version 2 and will privately report to the Council of Lloyd’s on
this.
Ben Newton, ACA (Senior statutory auditor)
For and on behalf of Deloitte LLP
Statutory auditor
London, UK
3 March 2025
STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December 2024
16 Syndicate 6103 Annual Report and Accounts 2024
TECHNICAL ACCOUNT – GENERAL BUSINESS
Note
2024
£’000
2023
£’000
Earned premiums, net of reinsurance
Gross premiums written
4
Outward reinsurance premiums
(419 )
Net premiums written
4
Change in the provision for unearned premiums:
Gross amount
4
(653 )
(510 )
Reinsurers’ share
Change in the net provision for unearned premiums
(653 )
(510 )
Earned premiums, net of reinsurance
Allocated investment return transferred from the non-technical account
10
Claims incurred, net of reinsurance
Claims paid
Gross amount
6
(22,914 )
(34,111 )
Reinsurers’ share
Net claims paid
(22,914 )
(34,111 )
Change in the provision for claims
Gross amount
6
(22,638 )
Reinsurers’ share
6
Change in the net provision for claims
(22,638 )
Claims incurred, net of reinsurance
Net operating expenses
7
(9,343 )
(7,955 )
Balance on the technical account for general business
All operations are continuing.
Management
Committee
MANAGING AGENCY PARTNERS Board of Directors
STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December 2024
17 Syndicate 6103 Annual Report and Accounts 2024
| NON-TECHNICAL ACCOUNT | 2024 | 2023 | |
| Note | £’000 | £’000 | |
| Balance on the general business technical account | |||
| Investment income | 9 | ||
| Allocated investment return transferred to general business technical account | ( | ( | |
| Non-technical account foreign exchange | 11 | ( | |
| Profit for the financial year | |||
| Exchange differences on foreign currency translation | 11 | ( | |
| Total comprehensive income for the year |
STATEMENT OF CHANGES IN MEMBERS’ BALANCES
2024
2023
Note
£’000
£’000
Members’ balances brought forward at 1 January
(21,860 )
Total comprehensive income for the year
Payments of (profit)/receipt of losses from members’ personal reserve funds via
Syndicate 2791 for the 2021 (2020) year of account
Members’ agents fees 2021 (2020) year of account
(293 )
(225 )
Members’ balances carried forward at 31 December
STATEMENT OF FINANCIAL POSITION
as at 31 December 2024
18 Syndicate 6103 Annual Report and Accounts 2024
| 2024 | 2023 | ||
| Note | £’000 | £’000 | |
| Reinsurers’ share of technical provisions | |||
| Provision for unearned premiums | 5 | ||
| Claims outstanding | 6 | ||
| Debtors | |||
| Debtors arising out of reinsurance operations | 12 | ||
| Other debtors | 13 | ||
| Total assets | |||
| Capital and reserves | |||
| Members’ balances | |||
Technical provisions | |||
| Provision for unearned premiums | 5 | ||
| Claims outstanding | 6 | ||
| Creditors | |||
| Creditors arising out of reinsurance operations | 14 | ||
| Other creditors | 15 | ||
| Total liabilities |
The financial statements on pages 16 to 36 were approved by the board of managing agency Partners Limited on 28
February 2025 and were signed on its behalf by:
R K Trubshaw T R McDermott
Active Underwriter Finance Director
3 March 2025
STATEMENT OF CASH FLOWS
for the year ended 31 December 2024
19 Syndicate 6103 Annual Report and Accounts 2024
2024
2023
Note
£’000
£’000
Cash flows from operating activities
Profit for the financial year
Adjustments:
Movement in gross technical provisions
(24,146 )
Movement in reinsurers’ share of gross technical provisions
Movement in debtors
(44,198 )
(18,790 )
Movement in creditors
(6,587 )
(970 )
Investment return
Foreign exchange
(4,435 )
(1,748 )
(118 )
Other
(293 )
(225 )
Net cash (outflow) from operating activities
(7,159 )
(10,932 )
Cash flow from investing activities
Investment income received
Net cash inflow from investing activities
Cash flows from financing activities
Payments of profits to members’ in respect of underwriting participations
Receipt of losses from members in respect of underwriting participations
Net Cash inflow from financing activities
Movement in cash and equivalents
Cash and cash equivalents at 1 January
Cash and cash equivalents at 31 December
16
NOTES TO THE ACCOUNTS
for the year ended 31 December 2024
20 Syndicate 6103 Annual Report and Accounts 2024
1. Basis of Preparation and Statement of Compliance
The financial statements have been prepared in accordance with the Insurance Accounts Directive (Lloyd’s
Syndicate and Aggregate Accounts) Regulations 2008, applicable Accounting Standards in the United Kingdom and
the Republic of Ireland, including Financial Reporting Standard 102 (FRS 102), Financial Reporting Standard 103
(FRS 103) in relation to insurance contracts, and the Lloyd’s Syndicate Accounts Instructions Version 2.0 as
modified by the Frequently Asked Questions Version 1.1 issued by Lloyd’s.
The functional currency is US dollars, but the financial statements are prepared in sterling which is the
presentational currency of the syndicate and rounded to the nearest £’000. As permitted by FRS 103 the syndicate
continues to apply the existing accounting policies that were applied prior to this standard for its insurance
contracts.
The financial statements are prepared under the historical cost convention.
The result for the year is determined on the annual basis of accounting in accordance with UK GAAP.
Syndicate 6103 operates on a funds withheld basis with Syndicate 2791. Syndicate 2791 is also managed by the
managing agent, MAP. Syndicate 6103 holds no cash or investments. All the syndicate’s funds are held by Syndicate
2791 which makes payments of liabilities on Syndicate 6103’s behalf. Debtors and creditors between the
syndicates are grossed up in the syndicate statement of financial position and upon the closure of each year of
account, normally after 36 months, the assets and liabilities of that closing year are netted off as part of the
commutation settlement with Syndicate 2791.
2. Judgements and Key Sources of Estimation Uncertainty
The preparation of the financial statements require management to make judgements, estimates and assumptions
that affect the amounts reported for assets and liabilities as at the statement of financial position date and the
amounts reported for revenues and expenses during the year.
In the course of preparing the financial statements no judgements have been made in the process of applying the
syndicate's accounting policies, other than those involving estimations that have had a significant effect on the
amounts recognised in the financial statements.
However, the nature of estimation means that actual outcomes could differ from those estimates.
The following are the syndicate’s key sources of estimation uncertainty:
Insurance contract technical provisions (see notes 6 & 22)
For insurance contracts, estimates have to be made both for the expected ultimate cost of claims reported at the
reporting date and for the expected ultimate cost of claims incurred but not yet reported (IBNR) at the reporting
date. It can take a significant period of time before the ultimate claims cost can be established with certainty and
for some types of policies, IBNR claims form the majority of the liability in the statement of financial position.
The ultimate cost of outstanding claims is estimated by using a range of standard actuarial claims projection
techniques, such as Chain Ladder, Bornheutter-Ferguson methods and individual reserving at contract level.
The main assumption underlying these techniques is that past claims development experience can be used to
project future claims development and hence ultimate claims costs. The provision for claims outstanding is
assessed on an individual case basis and is based on the estimated ultimate cost of all claims notified but not
settled by the statement of financial position date, together with the provision for related claims handling costs.
The provision also includes the estimated cost of claims IBNR at the statement of financial position date based on
statistical methods.
These methods generally involve projecting from past experience of the development of claims over time to form
a view of the likely ultimate claims to be experienced for more recent underwriting, having regard to variations
in the business accepted and the underlying terms and conditions. For the most recent years, where a high degree
of volatility arises from projections, estimates may be based in part on output from pricing and other models of
the business accepted and assessments of underwriting conditions.
NOTES TO THE ACCOUNTS
continued
21 Syndicate 6103 Annual Report and Accounts 2024
2. Judgements and Key Sources of Estimation Uncertainty (continued)
The two most critical assumptions as regards claims provisions are that the past is a reasonable predictor of the
likely level of future claims development and that the rating and other models used for current business are fair
reflections of the likely level of ultimate claims to be incurred.
The directors consider that the provisions for gross claims and related reinsurance recoveries are fairly stated on
the basis of the information currently available to them. However, the ultimate liability will vary as a result of
subsequent information and events and this may result in significant adjustments to the amounts provided.
Adjustments to the amounts of claims provisions established in prior years are reflected in the financial
statements for the period in which the adjustments are made. In addition, where contracts are yet to expire, or
where losses are not settled until several years after the expiration of the policy in question, the estimates are
considered to be more volatile and consequently are subjected to additional management judgemental prudence
adjustments. The methods used, and the estimates made, are reviewed regularly.
Where the amount of any material salvage and subrogation recoveries is separately identified it is reported as an
asset.
Changes in assumptions, quantum or complexity of claims can affect the value of these provisions.
Estimates of future premiums (see notes 5 & 12)
For certain insurance contracts, premium is initially recognised based on estimates of ultimate premiums. These
estimates are judgemental and the main assumption underlying these estimates is that past premium
development can be used to project future premium development.
Estimates include an element of judgement with regard to the level of claims affected future premiums receivable
by the syndicate. The methods used for assessing future premiums generally involve projecting from past
experience, based on the development of claims and the related inwards premiums receivable against these
claims. The directors consider whether the estimates of gross future premium are fairly stated on the basis of the
information currently available to them. However, the ultimate premium receivable can vary as a result of
subsequent information or events and this may result in significant adjustments.
3. Accounting Policies
Insurance contracts
An insurance contract (including inwards reinsurance contract) is defined as a contract containing significant
insurance risk. Insurance risk is considered significant if, and only if, an insured event could cause the syndicate
to pay significant additional benefits. Such contracts remain insurance contracts until all rights and obligations
are extinguished or expire.
Premiums written
Premiums written comprise premiums on contracts incepted during the financial year of account. Estimates are
made for pipeline premiums, representing amounts due to the syndicate not yet notified, received at the
statement of financial position date.
Differences between such estimates and actual amounts will be recorded in the period in which the actual
amounts are determined.
Premiums are disclosed before the deduction of taxes or duties levied on them.
Premiums for contracts where the syndicate delegates underwriting authority to another party (e.g. binding
authorities, lineslips or proportional treaties) use an estimate of the proportion of premiums incepted at the
reference date as an estimate based on historical inception patterns, if no pattern exists business is assumed to
incept evenly over the term of the delegated authority.
Unearned gross premiums
Written premiums are recognised evenly over the term of the contract for those contracts where the incidence
of risk does not vary over the term. Contracts where the incidence of risk differs over the term are earned based
on the risk profile of the policy. Unearned premiums represent the proportion of premiums written in the year
that relate to unexpired terms of policies in force at the statement of financial position date, calculated on the
basis of established earnings patterns or time apportionment as appropriate.
NOTES TO THE ACCOUNTS
continued
22 Syndicate 6103 Annual Report and Accounts 2024
3. Accounting Policies (continued)
Acquisition costs and deferred acquisition costs
The syndicate is not charged with acquisition costs and has no deferred acquisition costs.
Reinsurance premium ceded
Outwards reinsurance premiums are accounted for in the year of inception. Premiums ceded to reinstate
reinsurance cover or additional premiums payable on loss are recognised when they may be assessed with
reasonable certainty. The syndicate has only purchased reinsurance for the 2023 year of account covered by these
financial statements.
Unearned reinsurance premium
Reinsurance premiums paid to purchase high excess reinsurance contracts are earned evenly over the period at
risk.
Claims provisions and related recoveries
Claims paid comprise claims and claim handling expenses paid during the period.
Gross claims incurred comprise the estimated cost of all claims occurring during the year, whether reported or
not, including related direct and indirect claims handling costs and adjustments to claims outstanding from
previous years. The provision for claims outstanding is assessed on an individual case and class basis, as
appropriate, and is based on the estimated ultimate cost of all claims notified but not settled by the statement
of financial position date, together with the provision for related claims handling costs. The provision also includes
the estimated cost of claims incurred but not reported (‘IBNR’) at the statement of financial position date based
on statistical methods. Separate reserves are established for each year of account.
The reinsurers’ share of provisions for claims is based on the amounts of outstanding claims and projections for
IBNR net of a provision for reinsurance bad debt having regard to the reinsurance programme in place for each
class of business, the claims experience for the year and the current security rating of the reinsurance entities
involved. A number of statistical methods are used to assist in making these estimates.
Future unallocated loss adjustment expenses
An accrual for all future unallocated loss adjustment expenses (ULAE) is made. The ULAE is comprised of those
costs which are related to the settlement of earned claims but which are not directly attributable to individual
claims. ULAE expenses are undiscounted and include the expenses of managing the run-off of the business on the
basis the business is a going concern. Costs of administration of the reinsurance programme are included in the
gross ULAE. Separate reserves are established for each year of account.
Legal provisions
The syndicate may be subject to legal disputes in the normal course of business. Provisions for such events and
their related costs are recognised within expenses and accruals where there is an expected present obligation
relating to a past event or evidence exists of the requirement for a general provision that can be measured reliably
and it is probable that an outflow of economic benefit will be required to settle an obligation.
The directors of the managing agent do not expect the outcome of these claims, either individually or in
aggregate, to have a material effect upon the syndicate’s operations or financial position. As allowed by FRS 102,
further disclosure has not been given as it may seriously prejudice the outcome of any legal proceedings.
Insurance receivables and payables
Insurance receivables and payables are recognised when due and measured on initial recognition at the fair value
of the consideration received. They are derecognised when the obligation is settled, cancelled or expired.
Bad debt
Bad debts are provided for only where specific information becomes available to suggest a debtor may be unable
or unwilling to settle its debts to the syndicate. Specific information may be directly attributed to the debtor
company or may be indirect information from a rating agency or other source. The provision is calculated on a
case-by-case basis.
Unexpired risks provision
A provision for unexpired risks may be made, if necessary, where claims and related expenses arising after the
end of the financial period in respect of contracts concluded before that date exceed unearned premiums and
premiums receivable, after the deduction of any deferred acquisition costs.
NOTES TO THE ACCOUNTS
continued
23 Syndicate 6103 Annual Report and Accounts 2024
3. Accounting Policies (continued)
Unexpired risks provision (continued)
The assessment of whether an unexpired risk provision is required is based on information available at the
statement of financial position date, which may include evidence of relevant previous claims experience on similar
contracts. The assessment is not required to take into account any new claims events occurring after the
statement of financial position date as these are non-adjusting events.
The provision for unexpired risks is calculated by reference to all classes of business, which are all managed
together on a year of account basis, after taking into account relevant future investment return. The provision for
unexpired risks is included in technical provisions in the statement of financial position.
Foreign currency translation
Financial Reporting Standard 102 requires each entity to identify its functional currency and a presentational
currency. The functional currency is identified as the currency of the primary economic environment in which the
entity operates. The functional currency of this syndicate is US dollars as the majority of the underwriting
business, cash flows and expenses are in US dollars . We have chosen to maintain our presentational currency as
comparisons to other Lloyd’s insurance syndicates.
The syndicate records transactions in four settlement currencies being Sterling, US dollars, Canadian dollars and
Euros and when reported these currencies are translated in the income statement at the average rates of
exchange for the period. Underwriting transactions denominated in other foreign currencies are included at the
rate of exchange ruling at the date the transaction is processed.
As permitted by FRS 103, the syndicate has continued with its existing accounting policy to treat non -monetary
assets and liabilities arising from insurance contracts (which include items such as unearned premiums and
deferred acquisition costs) the same as monetary assets and liabilities. Consequently, all assets and liabilities
denominated in foreign currencies are translated at the rate of exchange at the statement of financial position
date, or if appropriate, at the forward contract rate.
Exchange differences from the functional currency (US dollars) arising from the retranslation of opening balances
and between average and year-end rates to the presentational currency are included in the statement of
comprehensive income.
All other exchange differences are included in the general business non-technical account.
The following rates of exchange have been used in the preparation of these accounts:
2024
2023
Start of
period rate
End of period
rate
Average rate
Start of period
rate
End of period
rate
Average
rate
Sterling
US Dollar
Canadian dollar
Euro
Financial investments
The syndicate does not hold any investments or derivatives.
Investment return
Investment return comprises an allocation calculated on the monthly average of the Total Funded Paid Experience
balance (equivalent to the premiums received, claims paid, ceding commission, interest expenses and income).
This return is equal to the rate of investment return achieved by Syndicate 2791 on its invested funds during the
relevant month and is equal to the gross return on its US dollar denominated balances. Interest on other currency
positive balances is credited at rates achieved by Syndicate 2791 on those currencies for the relevant month.
If the average balance is negative, an interest expense is calculated on the monthly average at the relevant
currency six- month duration Treasury Bill rate plus 1.5%. The whole of the return is treated as investment income.
NOTES TO THE ACCOUNTS
continued
24 Syndicate 6103 Annual Report and Accounts 2024
3. Accounting Policies (continued)
Allocation of investment return
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. Investment return has been wholly allocated to the technical
account as all investments relate to the technical account.
Operating expenses
All current and future syndicate expenses at the statement of financial position date, including audit fees, are
charged to and borne by Syndicate 2791 for which the syndicate is charged a ceding commission of 5% of gross
premiums written. Personal expenses (Lloyd’s subscriptions and central fund), which are charged to Syndicate
2791, are covered by an overriding commission of 1% of gross premiums written.
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 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.
No provision has been made for any United States Federal Income Tax payable on underwriting results or
investment earnings. Any payments on account made by the syndicate during the year are included in the
statement of financial position under the heading ‘other debtors’.
No provision has been made for any overseas tax payable by members on underwriting results.
Profit commission
Profit commission is charged by the managing agent at a rate of 15% of profit subject to the operation of a deficit
clause. This is charged to the syndicate on an earned basis but does not become payable until after the year of
account closes, normally at 36 months. When the syndicate makes a loss, that loss will be debited by member
until fully utilised reducing the following two years of account's results for the purpose of calculating profit
commission.
NOTES TO THE ACCOUNTS
continued
25 Syndicate 6103 Annual Report and Accounts 2024
4. Segmental Analysis
An analysis of the technical account before investment return is set out below:
2024
Gross
premiums
written
Gross
premiums
earned
Gross
claims
incurred
Gross
operating
expense
Reinsurance
balance
Underwriting
result
£’000
£’000
£’000
£’000
£’000
£’000
Reinsurance
acceptances
79,335
78,682
(45,552)
(9,343)
-
28,222
Total
79,335
78,682
(45,552)
(9,343)
-
28,222
2023
Gross
premiums
written
Gross
premiums
earned
Gross claims
incurred
Gross
operating
expense
Reinsurance
balance
Underwriting
result
£’000
£’000
£’000
£’000
£’000
£’000
Reinsurance
acceptances
61,888
61,378
(19,657)
(7,955)
(419)
35,095
Total
61,888
61,378
(19,657)
(7,955)
(419)
35,095
All premiums were concluded in the UK.
The geographical analysis of direct premiums written, by location of risk is as follows:
2024
2023
£’000
£’000
US
79,335
61,888
Total
79,335
61,888
5. Provision for Unearned Premiums
Gross
Reinsurers’
share
Net
£’000
£’000
£’000
At 1 January 2024
4,778
-
4,778
Premiums written in year
79,335
-
79,335
Premiums earned in year
(78,682)
-
(78,682)
Foreign exchange
93
-
93
At 31 December 2024
5,524
-
5,524
At 1 January 2023
4,529
-
4,529
Premiums written in year
61,888
(419)
61,469
Premiums earned in year
(61,378)
419
(60,959)
Foreign exchange
(261)
-
(261)
At 31 December 2023
4,778
-
4,778
NOTES TO THE ACCOUNTS
continued
26 Syndicate 6103 Annual Report and Accounts 2024
6. Claims
Gross
Reinsurers’
share
Net
£’000
£’000
£’000
At 1 January 2024
35,077
-
35,077
Expected cost of current year claims
45,552
-
45,552
RITC 2021 YOA commuted into Syndicate 2791
(5,317)
-
(5,317)
Claims paid during year
(22,914)
-
(22,914)
Foreign exchange
977
-