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MS Amlin
Underwriting Limited
Syndicate 2001
Annual Report & Financial Statements
31 December 2024
01
Directors and administration 03
Chief Executive Officer Foreword 04
Report of the directors of the managing agent 11
Statement of responsibilities of directors of the managing agent 19
Independent auditor’s report to the member of Syndicate 2001 21
Financial statements
•
Statement of profit or loss and other comprehensive income 25
•
Statement of financial position 26
•
Statement of cash flows 27
•
Statement of change in member’s balance 28
•
Notes to the financial statements 29
Contents
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 202202
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2024 0303
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Directors and administration CEO Foreword Directors’ report Directors’ responsibilities Independent auditor’s report Financial statements
Managing agent’s registered office
The Leadenhall Building
122 Leadenhall Street
London EC3V 4AG
Managing agent’s registered number
02323018
Statutory auditor
KPMG LLP
15 Canada Square
London
E14 5GL
Report details
Item Description
Syndicate number 2001
Managing agent name MS Amlin Underwriting Limited
End of period covered by report 31/12/2024
End date of prior period 31/12/2023
Presentational currency GBP
Functional currency USD
Managing agent
Directors of the managing agent
M T Burke
J Burrows
P J Calnan
A J Carrier
V Desai
A J Downes
Y Hataya
J Hine
S J L Jeffreys
M Kawase
M Tomihari
H S Trilovszky
Active underwriter
M T Burke
Company secretary
J Simek
Directors and administration
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20240404
CEO Foreword
Our market can change in the blink of an eye. An event,
naturally occurring or man-made, can suddenly
devastate, shaping lives and environments in ways
many might think of as unlikely if not impossible.
Alongside this unpredictability, at times it can feel like
our market is unwilling or unable to break the habits and
cycles of the past.
In a cost-pressured environment, reinsurers and insurers
can be too willing to consume under-priced risk,
particularly where volatility is not adequately
compensated. Interpreting the absence of near-term
claims activity as an indicator of reduced long term
volatility is too readily accepted.
We will not accept risk at any price, because we are
students of our own history.
We take the time to consider the unlikely, the
implausible and the seemingly impossible. We are alive
to the fact that the world is a more volatile and
unpredictable place than any of us might like. Increasing
wealth polarity and societal shifts are raising the global
temperature, and this change makes insurance more
important than ever.
Yet the uncertainty that lies at the centre of our purpose,
also presents the greatest opportunity.
Our Strategic Intent
In 2023 we set out three intentions for the coming year,
to guide our actions and decisions.
1.Repeatable.
Our continued transformation and the results of 2023
should not be a one off. The results of this are evident in
our financial performance in 2024, yet our growth does
not simply show itself in our financial results.
2.Resilient.
We had to have a business, a set of results and a
culture that allowed us to manage the cycle of the
market and any shocks that might come our way and
still produce repeatable results.
3.Reputation.
It was imperative we continue to invest in our reputation
with our customers, brokers, partners and parent
company. The confidence and engagement of our
brokers, evidenced by their decision to place more
business with us, tells this story for us.
These intentions take on greater resonance when we
consider our key stakeholders:
• Our customers
• Our shareholder
• Our employees
• Our communities
Our Customers
Thriving partnerships
Many insurers talk about ‘moments of truth’, delivering a
claims service when it matters most. I support this,
however, I believe the greater value comes in
collaborative partnerships. We do this by bringing
together our Underwriting and Claims teams as we
review opportunities, meet with brokers and customers
and pay claims effectively and efficiently. Working in
collaboration is how we create customer value.
2024 was a significant year for mid-sized catastrophes,
both natural and man-made. From events such as the
collapse of the Francis Scott Key Bridge in Baltimore, to
the catastrophic destruction of Hurricanes Helene and
Milton, all of these events and more, relied on our
Underwriting and Claims teams acting in unison to
protect and support our customers.
I am pleased to report that 2024 proved to
be the year where our planned outcomes of
financial resilience and stability became fully
realised. In a year where our purpose, to
provide continuity in an uncertain world, could
never have been more apt, the ability to deliver
another profitable result is more significant
than ever.
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2024
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New Horizons
Our willingness to offer our customers more compelling
propositions saw us develop a brand new capability
with sister company MSIG UK in December 2024,
giving our customers access to dual sources of
insurance capacity for risks within our underwriting
appetite in Trade Credit & Political Risk, Natural
Resources and Accident & Health classes. Giving our
customers choice and flexibility to get the protection
they need in one place.
Our Shareholder
Financial Impact
Our results this year demonstrate clearly our
foundations are stronger than ever, with £1.8 billion of
Gross written premium and a profit for the year figure
of £212.1 million. Profit for the year from Continuing
Business* was £239m (2023: £205m), with a
combined operating ratio of 87.2% (2023: 86.6%). We
have again delivered positive returns for ourselves and
our shareholder across all fronts.
Due to the specialist risk exposures in our portfolio, we
will always have a degree of the unknown in terms of
any impact on our end of year financial position.
However, our headline Loss Ratio of 54.9% visibly
illustrates the fact we can and have comfortably
absorbed major events due to the resilience of our
balance sheet, whilst simultaneously supporting our
customers.
Finally, our Attritional Loss Ratio of 43.3% (2023:
47.6%) highlights the health and quality of our core
business, which gives us added confidence for the
years ahead.
CEO Foreword (continued)
£1.8bn
Gross written premium
With geopolitical tensions running high in 2024,
our Claims team continued to adapt and innovate,
further strengthening our ability to resolve claims
in complex and volatile regions. When an insured’s
assets are in in a conflict zone, sending any expert
to assess the damage can often be too dangerous
and not permitted. To address this, we’re harnessing
cutting-edge technologies like satellite imagery
and digital modelling, which we’ve already used
for natural catastrophe claims response, while
collaborating with specialist crisis management
firms to gather intelligence and assess damage in
areas where traditional claims handling methods
aren’t feasible. By constantly evolving our approach,
we can ensure that businesses receive the
comprehensive coverage and claims support they
need, in an increasingly unpredictable world.
Policy Story:
Resolving claims in conflict zones
*Continuing Business excludes the discontinued business related
to classes of business that Syndicate 2001 ceased to underwrite
and were impacted by the 2023 and 2022 RiverStone contracts.
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20240606
Financial Strength
With Mitsui Sumitomo, we are supported by one of the
largest non-life insurers in the world and are fortunate
to enjoy the benefits of capital of the highest strength,
and impeccable provenance, giving us genuine
resilience.
Despite the fact we have witnessed so early in 2025 a
very significant catastrophe in the shape of the Los
Angeles wildfires, we are confident our portfolio is well
positioned to absorb this event in a managed way.
We have cornerstone capital provided by a thoughtful
and encouraging shareholder, who trusts MS Amlin to
be at the vanguard of its international growth ambitions.
Our People
Balance
I wrote last year about the major strides we took in
2023 to adjust our gender balance at Board, Executive,
senior management and more broadly across our
people base. Our continued efforts in 2024 have
positively reshaped the profile of our company.
Last year we exceeded our goal of reaching 35% of
women in leadership significantly ahead of our
December 2025 target. In four years, we have achieved
more than a fourfold increase in the number of women
in senior leadership positions, from 8% in January 2021
to 36%. At executive level, we made even further
progress, with the balance of women improving from
11% in 2021, to 44%.
We were grateful to have our
efforts acknowledged by the
wider insurance industry and
were delighted to win the
Women in Insurance Award,
amongst others, over the
course of the year.
While we are proud of the
progress we’ve made in the
area of gender, we are committed to doing even more to
ensure everyone can thrive and succeed at MS Amlin,
and we have been simultaneously developing our
activity in the area of ethnicity.
Last year we were delighted to announce ourselves as
founding members of the Lloyd’s Inclusive Futures
coalition. Through the coalition, we are investing in a
programme designed to improve the life chances and
opportunities ‘from the classroom to the boardroom’,
through a variety of
programmes including
outreach, bursaries,
enhancements to recruitment
policy and more.
Our commitment to inclusion
remains proudly steadfast,
whether the topic is one of
ethnicity, gender or sexuality,
and we see our work in this space as part of the
natural fabric of our operating rhythm and behaviour.
As we look forward into 2025, we expect to move our
focus towards our culture of teamwork and
collaboration, so that our time and focus on talent
acquisition can show that the individuals at MS Amlin,
truly add up to more than the sum of our parts.
Our Communities
Our three-year sustainability strategy, launched in
2022 and applicable to all parts of our business,
continued to evolve and shape our thinking, but more
importantly our actions.
In 2024 we focussed our activities in three areas:
1. Building profitable growth, using commercial
insurance to build resilience into systems
2. Measuring and managing our clients’ greenhouse
gas emissions, and
3. Driving real world impact through partnerships
Deploying Insurance to Create Impact
We believe that it is not simply by declining
underwriting risks or excluding certain industries or
sectors that will create true and lasting long-term
benefit. Instead, it is by actively making positive change
happen in the short to medium term, to support
communities and lives that truly effects positive
change.
As a leading and responsible insurer in sustainability,
the single greatest impact we can have is through our
underwriting, supporting our wider business strategy
for sustainable profitable growth; and the most
effective way we can do that is by enabling climate
finance. In other words, providing insurance and
reinsurance capital to initiatives that directly reduce
emissions or, more notably, protect and stabilise
societies from the impact of climate change and nature
loss.
In 2024 we deployed our underwriting expertise in a
number of exciting ways, including the involvement in
the ‘Blue Bonds’ in Ecuador and supporting
communities in emerging markets and developing
economies through the provision of crop protection (re)
insurance, safeguarding yields and maintaining lives
and livelihoods. On the other side of the world, we were
proud to be the first global (re)insurer to join a
groundbreaking initiative to help Ukraine, through a
scheme designed to boost reinsurance capacity and
stimulate its economic growth, while helping to rebuild
the war-torn country.
These are just a selection of examples of how we have
fostered environmental and social stewardship whilst
driving sustainable profitable growth. We are
continuing to build out similar and related opportunities
– all focussed on climate adaptation, responding to the
impacts of climate change and nature loss.
CEO Foreword (continued)
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CEO Foreword (continued)
Policy Story:
‘Blue Bonds’
To address Ecuador’s environmental conservation
needs and debt obligations, a Debt-for-Nature
Swap was configured.
By restructuring debt in exchange for commitments
to protect and restore biodiversity, the initiative
reduced Ecuador’s debt burden while promoting
marine conservation and climate adaptation
MS Amlin provides Credit Risk (re)insurance
coverage for the loan, which is triggered in
case of a default and ensures that investors are
comfortable with a reduced interest rate.
We became the first insurer to sign up to a
groundbreaking EU110m facility that aims to
revitalise Ukraine’s war risk insurance market
and help stimulate economic growth. Developed
by the European Bank for Reconstruction and
Development, the guarantee will provide much-
needed reinsurance capacity to unlock and
accelerate investment in Ukraine. Under the
Ukraine Recovery and Reconstruction Guarantee
Facility, the EBRD will support global reinsurers
through a guarantee covering losses on specific
war-related risks underwritten by local Ukrainian
insurers. By making war risks insurance more
accessible, the facility aims to stimulate business
activity and economic growth, paving the way for
Ukraine’s recovery and reconstruction.
Policy Story:
Leading the way in Ukraine
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20240808
CEO Foreword (continued)
Our focus going forward is our charity partner’s
strategy, which also includes a host of third sector
organisations, giving our people many more
opportunities to support the causes they care most
about.
We offer our teams three volunteer days every year, so
they can give back in a way that makes the most
difference to our official partners, as well as any other
charity organisations they might wish to support.
Last year I wrote that thanks to the support and
confidence our parent company has in us, we effectively
manage the balance between the competing and
sometimes conflicting needs of our stakeholders, and
our commercial imperative.
We continue to walk that line.
Our financial and non-financial results tell their own
story and are a testament to the hard work and
commitment of so many colleagues at MS Amlin who
share our goals, and I want to thank everybody whose
efforts and energy continue to shape our story, today
and in the future.
Andrew Carrier
Chief Executive Officer
MS Amlin Underwriting Limited
Controlling Emissions
We have been working hard to reduce Scope 1,2, and 3
emissions. Our ESG underwriting guidelines factor
sustainability into our decision-making process, we
have stopped writing new stand-alone coal risks, and
all risks determined to be sensitive are reviewed at the
highest level of our organisation.
We’re working with partners across the market, and
within the wider MS&AD group, to find the most
effective ways to measure and manage clients’
emissions, ensuring we have sight of the net-zero
transitions plans for the heaviest emitters of greenhouse
gases. We’re also applying the same logic to our
investments.
When we look closer to home, we use renewable
certifications to support the production of the clean
renewable energy we use to power our London office.
Successful Partnerships
In February 2025 we marked the final year of our
three-year strategic partnership with the British Red
Cross (BRC), supporting their work particularly in
Bangladesh, where the plight of women and girls is
keenly felt, particularly when the country suffers from
the impact of a volatile climate.
Fundraising:
The Felix Project
Partnering with Nuveen asset management,
we hosted a wine tasting event for one of our
core charity partners The Felix Project, who aim
to tackle food waste and hunger in and around
London by preparing delicious and healthy
meals with surplus food that would otherwise
go to waste. The event took place in our offices
to coincide with the UN’s World Food Day, to
raise awareness about global hunger. Over
80 business partners from across the market
attended to support the event and sample
some delicious wines kindly donated by Nuveen
from vineyards that they own and manage
on behalf of their clients, raising £9,000 in the
process. Enough for The Felix Project to provide
over 33,000 meals.
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Report of the directors of the managing agent
The directors of MS Amlin Underwriting Limited (the
‘managing agent’ or ‘MS Amlin’ or ‘the Board’)
present their managing agent’s report for Syndicate
2001 (the ‘Syndicate’) for the year ended 31
December 2024.
The 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 (‘the 2008
Regulations’) and in accordance with United
Kingdom Generally Accepted Accounting Practice
including Financial Reporting Standard 102: the
Financial Reporting standard applicable in the
United Kingdom and Republic of Ireland (‘FRS 102’)
and Financial Reporting Standard 103: Insurance
Contracts (‘FRS 103’).
Business review and principal
activities
The Syndicate is, through MS Amlin Corporate
Member Limited (the ‘Corporate Member’), a wholly
aligned Syndicate of Mitsui Sumitomo Insurance
Company, Limited (‘MSI’). The ultimate parent
company is MS&AD Insurance Group Holdings, Inc.
(‘MS&AD’). The principal activity of Syndicate 2001 is
the transaction of general insurance and reinsurance
business in the United Kingdom and through the
Lloyd’s Brussels platform, through the Society of
Lloyd’s and its component parts.
For its clients, the Syndicate offers a broad spectrum
of insurance and reinsurance products, blending
market knowledge, experience and expertise, with a
practical desire to deliver solutions to support them.
We provide traditional reinsurance services alongside
access to capital markets: Aviation Reinsurance,
Casualty Reinsurance, International Property
Reinsurance, Marine & Energy Reinsurance, Speciality
Reinsurance and US Property Reinsurance.
We offer a broad range of insurance covers that can
support clients across a wide variety of trades and
industries: Casualty, Crisis Management, Marine,
Natural Resources and Property.
The Syndicate will continue to transact predominantly
the current classes of general insurance and
reinsurance business as listed above.
The total premium income capacity, net of brokerage,
of the Syndicate for each of the years of account open
during 2024 was as follows:
£m
2022 year of account 1,600.0
2023 year of account 1,600.0
2024 year of account 2,000.0
The total premium income capacity of the Syndicate
in 2025 is £2,000.0 million.
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20241212
Report of the directors of the managing agent
(continued)
Significant developments
The profit for the financial year is £212.1 million
(2023 £256.8 million) and includes an underwriting
profit of £210.8m (2023: £240.8 million profit). 2024
and 2023 performance includes the impact of the
discontinued business which was subject to the
Reinsurance to Close (“RITC”) and 100% quota
share transactions executed with RiverStone in
2023 and prior. These were finalised in 2024 via a
true up process detailed in note 5. The commentary
hereafter reflects the results of the continuing
business, unless otherwise stated.
For continuing business, profit for the year was
£239.2 million (2023: £205.1 million) with a
corresponding combined ratio of 87.2% (2023:
86.6%). This improvement in profitability reflects a
combination of premium growth and an improved
attritional loss ratio through better risk selection and
positive risk adjusted rate change. The profit for the
year is also after absorbing a higher level of natural
catastrophe losses, net of reinstatements compared
to 2023 and the Baltimore Bridge loss.
Gross written premiums increased to £1,769.4
million (2023: £1,748.7 million). Before adjusting for
the change in binder estimates detailed in note 2.2
(£217.7 million) during the year, this represents an
uplift of 12.6%, driven by the benefits of pricing
increases and new business growth across most
classes.
Net earned premiums increased by 16.4% to
£1,556.0 million after adjusting for the change in
binder estimates of £33.3 million. This follows the
increase in gross premiums, but also reflecting our
strategy to retain more net risk, including the
removal of the Whole Account Quota Share
(‘WAQS’) cession to MS Amlin AG (Bermuda branch)
for the 2023 underwriting year (2022: 7.5%).
The net claims ratio increased to 53.3% (2023:
50.9%). The Syndicate was exposed to four major
catastrophe events in 2024, including two Atlantic
hurricanes, as well as the Baltimore bridge collapse.
As always, our heartfelt condolences are extended to
the people impacted by these events. Overall,
catastrophes generated losses to the Syndicate
totalling £90.9 million net of reinstatements (6.2
points on the net loss ratio), the most material being
Hurricanes Helene and Milton, and the Baltimore
bridge collapse. This compares with £37.0 million of
catastrophe losses in 2023 (2.9 points on the net loss
ratio).
During 2024, prior period reserves, excluding the
impacts of discontinued business, were reduced by
£13.0 million (2023: reduced by £25.3 million),
representing a reduction of 1.0% of the claims ratio
(2023: reduction of 1.9% to the claims ratio).
The expense ratio of 33.9% (2023: 35.7%) improved
mainly due to net earned premium increasing at a
greater rate than expenses, as we continue to grow
our business whilst controlling our costs. The
acquisition cost ratio has decreased year on year
predominantly due to business mix within the
portfolio.
During the year, the Syndicate’s functional currency
changed from pound sterling to US dollars in
reflection of the primary economic environment in
which it operates.
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Divisional Analysis
During 2024, the Syndicate operations were
managed across two divisions, Insurance and
Reinsurance, managed by a single underwriting
management team led by the active underwriter.
This section analyses the underwriting performance
of these two divisions, whilst the impact on
performance of the discontinued business has been
separated out to show the underlying profitability of
the continuing business. This presentation and the
comparatives for 2023 are shown on a consistent
basis and are based on the managing agent’s view
of how the Syndicate is managed. This differs from
the analysis by Lloyd’s class disclosed in note 5.
Insurance
Insurance generated £1,101.1 million of gross
written premium or £1,318.5 million before adjusting
for the impact of the change in binder estimates, an
increase of £175.1 million since the prior year. This
13.8% increase on the prior year is driven by rate
increases and growth in new business. Net earned
premiums, before adjusting for the change in binder
estimates (£32.8 million) increased by 13.5% year
on year, following the trend in gross written
premiums.
The net claims ratio has increased by 5.8 percentage
points in comparison with 2023, mainly driven by an
increase in catastrophe and large losses, and the
Baltimore bridge loss in the first quarter of 2024.
Current year non-cat performance is 1.0 point
adverse to the previous year’s strong performance
on a net basis, in ratio terms. In total, prior period
best estimate reserve movement for the division was
a net £14.0 million strengthening (2023: £3.6 million
release).
The expense ratio has improved by 2.1 points
predominantly driven by the growth in premium,
internal cost control and lower acquisition costs
reflecting the change in mix of business.
Report of the directors of the managing agent
(continued)
Reinsurance
Reinsurance generated £668.4 million of gross
written premium, an increase of £58.2 million, or
9.5%, on the prior year. This increase reflects
favourable rate change, and planned growth
through new business opportunities. Net earned
premiums increased by 19.0% year on year,
following the increased gross written premiums
coupled with external outwards programme savings
following a planned increase in net retention. This
also includes the reduction in the WAQS cession.
The net claims ratio of 54.7% decreased by 5.5
percentage points compared with 2023, with
improved non-cat performance allowing the
business unit to absorb a £26.1 million increase in
catastrophe claims and the Baltimore bridge loss,
year on year. Prior period best estimate reserve
releases were £27.0 million in 2024 (2023 £21.3
million).
The expense ratio has improved by 1.3 points to
27.2% year on year, mainly due to the impact of
growth and tighter cost control.
Discontinued business
Discontinued business relates to classes of business
that Syndicate 2001 ceased to underwrite and were
impacted by the 2023 and 2022 RiverStone
contracts.
Ratio analysis is not meaningful due to net earned
premium levels being distorted by the 2023
RiverStone contract premiums paid and, in 2024,
further changes associated with the agreement and
finalisation of estimates for these contracts. Overall,
discontinued business generated an underwriting
loss of £27.1 million (2023: £42.2 million
underwriting profit) due to the true up process
between the estimates reported in the prior year and
the final balances. This process has been outlined in
note 5.
Underwriting performance by division
Insurance Reinsurance
Total Continuing
business
Discontinued
business Total
2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
£m £m £m £m £m £m £m £m £m £m
Gross written premiums
1,101.1 1,143.4 668.4 610.2 1,769.4 1,753.6 0.0 (4.9) 1,769.4 1,748.7
Net written premiums
986.3 1,071.3 504.0 423.6 1,490.3 1,494.9 (5.1) (1,015.1) 1,485.2 479.8
Net earned premiums
1,093.0 936.0 463.0 401.3 1,556.0 1,337.2 (5.1) (1,013.1) 1,550.9 324.1
Net claims ratio
52.8% 47.0% 54.7% 60.2% 53.3% 50.9% - - 54.9% (115.6%)
Net expense ratio
36.7% 38.8% 27.2% 28.5% 33.9% 35.7% - - 34.0% 147.4%
Net combined ratio
89.5% 85.8% 82.5% 88.7% 87.2% 86.6% - - 88.9% 31.8%
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20241414
Report of the directors of the managing agent
(continued)
Legacy reserves transferred in 2023
In 2023, the managing agent entered into a “Split”
RITC contract for all associated liabilities for 2018
year of account and prior, across all product lines.
The intention being to bring finality to the
Syndicate’s historic liabilities, particularly within its
discontinued lines, and allow the managing agent to
focus on the future, reducing volatility and better
utilise the Syndicate’s capital and resources,
unencumbered by the distraction the legacy portfolio
inherently creates.
For operational reasons, the reserves for a small
number of books of business, as well as certain
Covid liabilities, have been reinsured back to
Syndicate 2001.
Some of the now discontinued books of business
continued to write business into the 2019 and 2020
YOAs. To protect these reserves, the directors of the
managing agent have agreed a quota share
contract with RiverStone (‘Quota Share’). The subject
reserves amounted to £146.2 million at 1 January
2023.
Collectively the 2023 RITC and Quota Share
transactions are referred to as the ‘2023 RiverStone
contracts’.
Investment performance
The Syndicate investment result was a gain of £40.8
million in the year (2023: gain of £37.7 million).
The managing agent’s investment objective is to
increase shareholder value in a way that balances
risk. At the same time, it seeks to align with wider
Group strategies including those relating to
sustainability. Investments are managed on a
multi-asset, multi-manager basis. For the Syndicate
it is pre-dominantly invested in bond and money
market funds, with a modest allocation to alternative
assets (property, private equity and a global credit
hedge fund) through the Funds in Syndicate (‘FIS’)
portfolio. In the prior year there was investment in
global equity funds through the FIS portfolio, but as
part of the release of surplus capital during the year,
this allocation was reduced to nil.
Asset liability management is a core element of
investment management, as the managing agent
seeks to align assets with insurance liabilities by
currency and by duration. Where mismatches occur,
either assets are restructured or appropriate
derivatives are used to address.
Tactical and operational management of
investments is outsourced to a sister company, MS
Amlin Investment Management Limited, governed
through an investment management agreement
incorporating an investment mandate. Further
details on investments can be found in note 12.
Liquidity
For 2024, the Syndicate is reporting very strong
positive flows reflecting the continued improvement
in underwriting resulting in significantly lower claims
outflows, as illustrated in the Statement of cash
flows on page 27. The managing agent has ensured
there is sufficient liquidity in the Syndicate during the
year by utilising letters of credit in providing US trust
fund collateral as an alternative to drawing on the
Syndicate’s free funds. The Syndicate has at the
date of this report, access to a cash-based revolving
credit facility of £160.0 million (2023: £160.0 million),
and to a letter of credit facility for US trust fund
collateral of $320.0 million (2023: $500.0 million).
Further details on the Syndicate’s liquidity facilities
can be found in note 11.
Principal risks
The principal financial risks to the Syndicate, are
insurance risk, market risk (including financial
investment risk and foreign exchange risk), interest
rate risk and credit risk. Detailed explanations of
these risks are provided in notes 12, 13 & 16 to
these financial statements.
The Syndicate is also exposed to strategic risk
(including Environmental, Social and Governance
risk) and operational risk through the execution of its
strategic aims and its participation in the Lloyd’s
market, as well as other more general operational
risks associated with the management of a
Syndicate. Lloyd’s is a mutual society, and the
Syndicate is dependent on Lloyd’s licence and
ratings to operate.
The managing agent does not believe there are any
other principal risks or uncertainties not included in
the notes mentioned above connected with the
Syndicate.
Readiness for significant regulatory
change
At MS Amlin, Operational Resilience is of paramount
importance. Important Business Services (IBS) and
Accountable Executives are supported by a central
Operational Resilience team, to maintain and
improve the Operational Resilience Framework over
the three-year transitional period to 31 March 2025.
During 2024, MS Amlin focussed on the closure and
testing of identified vulnerabilities, together with
oversight of intra-group and external providers
significant to our closure and ongoing resilience. As
such, we are in a position to evidence remediation of
all these vulnerabilities from both a design and
operational effectiveness perspective. This, together
with an operationalised framework, has enabled us
to demonstrate the capability to remain within
impact tolerance (ITOLs) in the event of severe
operational disruption, as stipulated in SYSC 15A.2.9
prior to the deadline of 31 March 2025.
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2024 1515
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Report of the directors of the managing agent
(continued)
accordance with documented terms of references.
The governance structure for sustainability and
climate change is set out on the company’s website
msamlin.com/sustainability, and will continue to
evolve as we further integrate sustainability within
our business.
The Sustainability Committee convenes quarterly
and includes senior individuals from across the
business who have authority, influence and
motivation to prioritise sustainability on MS Amlin’s
strategic agenda. The principal purpose of the
Committee is to help MS Amlin to be a responsible,
resilient and sustainable business. In doing so it:
• Supports the creation of long-term enterprise
value and profitable growth whilst responding to
MS Amlin’s societal and moral obligations with
integrity;
• Ensures MS Amlin fulfils its regulatory and other
sustainability related commitments, thus
managing associated balance sheet and
reputational risk;
• Determines which sustainability and net zero
transition opportunities give MS Amlin the most
effective platforms for positive differentiation on
and what capabilities we should invest in ahead
of time; and
• Balances and seeks to align the interest of our
four main stakeholders – our clients, our
shareholder, our employees, and our community.
Each quarter, the Board (and/or other Board
committees, where appropriate) receives an update
on the progress made in implementing the
Sustainability Strategy. The Head of Sustainability
attends a Board (and/or other Board committees,
where appropriate) meeting at least once a year to
discuss progress in more detail.
ESG considerations and risks are considered within
the company-wide Risk Management Framework
(’RMF’). The RMF is considered in note 16(e) of the
report and accounts. They are also considered
within MS Amlin’s Own Risk and Solvency
Assessment (‘ORSA’). Given the potentially
significant financial risk impacts climate change
might have on our balance sheet, we have mapped
the key climate risks we face across the risk register
and have identified this as a key focus area for
improving quantification of the risk, through stress
and scenario testing and, increasing our ability to
monitor it by evolving existing and introducing new
metrics. We have also reviewed the Risk Register to
further consider Climate Risk; as this is a cross
cutting risk, we have therefore considered the
Climate Risk Drivers within the Risk Register.
Climate Change
The Board has overall responsibility for strategy,
performance and risk management and only
MS Amlin continues to monitor Regulator
communications and proposals to ensure that it
remains aware of, and able to respond to, other
areas of change as and when they are issued by
regulators.
Credit rating
Syndicate 2001 trades through the Lloyd’s
worldwide licences and ratings. It also benefits from
the Lloyd’s brand and Lloyd’s Syndicate 2001 has an
AA- (Very Strong) rating from Standard & Poor’s
issued on 13 December 2023 and an A+ (Superior)
rating from AM Best, issued on 9 August 2024.
Sustainability
Strategy
Our sustainability strategy is centred around the
desire to create long term enterprise value and
designed to support:
• Sustainable, profitable growth through
commercial and responsible opportunity
optimisation;
• Balance sheet and reputational risk management
by fulfilling our societal and moral obligations;
and
• Fair and inclusive transition that reflects the
needs of our clients, shareholder, employees and
communities.
The strategy recognises the intrinsic links between
climate change, nature and biodiversity loss, and
social and economic development agendas, and
applies to all aspects of our business. However, as
an (re)insurance business, we believe that the most
impact we can have is through our underwriting.
In 2023, we focused on managing risk and built on
this in 2024 through activities such as: evolving our
approach to climate scenario analysis, ceasing to
underwrite new business and new construction
standalone coal risks, implementing a referrals
process for ESG risks, starting to measure our clients’
emissions, and analysing the transition plans of the
highest emitters in our portfolio.
In 2024, we also analysed transition opportunities in
a more structured manner and we believe that the
single greatest underwriting transition opportunity
for MS Amlin is in enabling climate finance to drive
capital to where it is needed. This is how we are
defining ‘insuring the transition’.
Governance
The Board has overall responsibly for setting and
overseeing the implementation of the Sustainability
Strategy.
The Board has a number of committees, to which it
delegates oversight and decision-making powers in
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20241616
Report of the directors of the managing agent
(continued)
through careful management in each of these areas
of our business can we achieve our strategic
objectives and manage the risks and opportunities
arising from climate change.
The Board recognises that the impact of climate
change, including the potential to exacerbate
existing societal issues, has the potential for
far-reaching consequences across the globe and to
the MS Amlin business model. Therefore, the Board
has identified climate change (and sustainability,
more broadly) as a key priority area. In doing so, the
Board has taken note of existing and future
requirements for climate-related financial
disclosures as set by the Bank of England (through
the Prudential Regulation Authority) in various
announcements and consultation processes.
The Board is committed to making transparent,
sustainable financial decisions and to actively
managing the long-term financial risks of climate
change, in partnership with clients as a transition
towards to a low carbon future. As such, the Board
had appointed the Chief Underwriting Officer as the
dedicated executive sponsor responsible for climate
change. The Head of Sustainability has been
appointed as the Climate Change Controller for MS
Amlin. The role of the Climate Change Controller is to
integrate group-wide sustainability requirements
into MS Amlin’s operations, liaise with Head Office
on MS Amlin’s climate initiatives and activities, and
engage with other Climate Change Controllers
across the group to address and promote
sustainability efforts.
Notwithstanding the material risks to our business,
climate change presents a huge opportunity as the
increasing frequency and severity of natural
disasters increases the demand for our products and
services. We believe that MS Amlin can play a
critical role in driving capital to projects that protect
and stabilise societies by responding to the impacts
of climate change and nature loss, thereby building
resilience into societies.
Reporting
MS Amlin has been a signatory to the ClimateWise
initiative since its inception in 2007 and used this
platform to produce annual TCFD aligned
sustainability reporting disclosures. While
ClimateWise remains a robust and valid platform,
the IFRS Sustainability Disclosure Standards, issued
by the International Sustainability Standards Board
(‘the ISSB standards’ – the prevailing global baseline
for ESG disclosure) are more closely aligned with our
evolving reporting requirements, and will provide
greater consistency and comparability with
approaches being adopted by our parent company,
the UK Government, and Lloyd’s of London. During
2024, we started to transition from the ClimateWise
framework to the ISSB standards. We remain fully
committed to transparent and comprehensive
sustainability reporting and are assessing the
feasibility of alignment with ISSB standards.
For the 2024 reporting cycle, we will publish a TCFD
compliant annual sustainability report to
demonstrate our progress and specific timelines for
achieving full compliance with ISSB are being
reviewed. This is, in part, dependent on guidance
from the UK government and the approach adopted
by our parent company listed in Japan. We will
continue to work closely with our stakeholders,
including independent external auditors, to ensure
the effective review and oversight of our
sustainability disclosures
Climate Risk Governance
Climate change, and the global response to it,
presents financial risks which are relevant to MS
Amlin. While the financial risks from climate change
may crystallise in full over longer time horizons, they
are also becoming apparent now. In response to this,
MS Amlin considers climate risk though the Climate
Risk Working Group (‘CRWG’), a sub-group of the
Sustainability Committee. The CRWG helps the
business to determine how resilient MS Amlin is to
disruption caused as a result of climate change and
nature loss (i.e. the extent to which we can adapt)
and is responsible for the definition and
implementation of climate change scenarios,
regulatory submissions, review of 3rd party models,
tools and data, as well as setting the scientific
standards of MS Amlin climate risk activities. It also
undertakes horizon scanning to systematically
examine and alert the business to new and future
regulatory, scientific, and business developments
related to climate physical, transition and liability
risk.
Climate Scenario Analysis
MS Amlin use Climate Scenario Analysis (‘CSA’) to
assess the financial risk impacts of climate change
on our balance sheet, providing an indication of our
position under severe, yet plausible scenarios and
stressors. These scenarios are guided by science
and inform our forward-looking strategy and
decision making. MS Amlin continues to build upon
the lessons learnt from the 2021 PRA Climate
Biennial Exploratory Scenario (CBES) exercise and
has continued to develop our analysis throughout
2024.
Acute physical climate risk (‘modelled Nat Cat’)
- Acute physical risk scenarios to understand
potential climate change impacts are more
developed within MS Amlin due to the everyday use
of natural catastrophe models. We have developed
3 scenarios to consider the impact of climate change
on MS Amlin’s most material peril: North Atlantic
Hurricanes.
Chronic physical climate risk (‘non modelled Nat
Cat’) – We have been working with Leeds University
and other market participants to better understand
secondary effects and tipping points, such that MS
Amlin can be better positioned to help our clients to
respond and adjust to expected and actual effects of
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2024 1717
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Report of the directors of the managing agent
(continued)
climate change, thereby reducing their vulnerability
and ‘providing continuity to our clients in an
uncertain world’.
Climate transition risk – Climate transition risk
looks through the lenses of legislation, technology
and changing customer habits; and incorporates
scientific and socio-economic uncertainty e.g. future
development of emissions driven by, for example,
population growth, carbon price, energy mix and
inflation. The 3 scenarios were developed
considering a 5-10 year time horizon and used key
trends across the lines of business likely to be most
impacted.
Climate litigation risk – MS Amlin has developed 3
scenarios, aligned to our definition of Climate
Litigation Risk, and based on inputs from
underwriters and trends in climate litigation activity
observed to date across the most-impacted classes
of business.
Where relevant, MS Amlin scenarios are generated
in consultation with senior underwriters, in-house
and external legal experts, and 3rd parties and will
continue to be iterated in 2025. Analysis of all of
these risks has been considered from a capital
modelling and pricing perspective, to ensure MS
Amlin is sufficiently capturing the risks associated
with climate change.
Senior Appointments
Throughout 2024, the managing agent continued to
leverage a strong leadership bench and talent pool
through a number of key changes.
In October 2024, Andrew Downes was appointed to
the Board as an Independent Non-Executive
Director. Andrew will replace Philip Calnan as Chair
of the Audit Committee in March 2025 when Philip
steps down from the Board. Similarly, Joanne Hine
was appointed to the Board as an Independent
Non-Executive Director in October 2024. Joanne
replaces Julie Hopes as Chair of the Risk and
Solvency Committee when she resigned from the
Board in October 2024. We thank both Philip and
Julie for their services to the organisation.
During March 2024, Hironori Morimoto stepped
down from the Board of MS Amlin Underwriting
Limited and was replaced by Yasuko Hataya in
August 2024. Hironori was key to the acquisition of
the Amlin group by Mitsui Sumitomo Insurance
Company Limited in 2015 and has ensured the
continued success between the organisations.
Following Philip Green’s announcement to retire as
Chief Financial Officer in 2023, Jessie Burrows joined
the business in January 2024. A structured handover
was completed by 1 April 2024 when Jessie formally
took up the role of Chief Financial Officer and was
appointed to the Board. She brings more than 25
years of experience in finance and financial services,
most recently as Managing Director, Customer Sales,
Service and Claims, at Direct Line Group. We thank
Philip for his commitment and leadership, and wish
him well in his retirement.
Grant Baxter, previously Chief Underwriting Officer,
left MS Amlin in October 2023, at which time Martin
Burke was appointed Interim Chief Underwriting
Officer in line with planned succession. This position
became permanent following receipt of regulatory
approvals in January 2024.
With effect from 1 February 2024, Alberto Verga
stepped down as Chief Operating Officer to assume
the role of Managing Director for MS Amlin
Corporate Services Limited. Natalia Wright,
previously Head of Operations, assumed the role of
Operations Director.
Directors of the managing agent
The current directors of the managing agent are
shown on page 3. During the year and up to the
date of signing, the following changes to the Board
of Directors of the managing agent have occurred:
Name Date of appointment Date of resignation
M T Burke 14 March 2024
J Burrows 1 April 2024
A J Downes 1 October 2024
P J Green 1 April 2024
Y Hataya 6 August 2024
J Hine 1 October 2024
J Hopes 31 October 2024
H Morimoto 28 March 2024
A Verga 14 March 2024
Going concern
The Syndicate has financial resources to meet its
financial needs and manages a mature portfolio of
insurance risk through an experienced and stable
team. The directors of the managing agent believe
that the Syndicate is well positioned to manage its
business risks successfully in the current economic
environment. The directors of the managing agent
have continued to review the business plans,
liquidity and operational resilience of the Syndicate.
The 2025 year of account of Syndicate 2001 has
opened and the directors of the managing agent
have concluded that the Syndicate has sufficient
resources to, and a reasonable expectation that it
will, open a 2026 year of account. The Syndicate has
sufficient capital for each year of account in its
Funds at Lloyd’s (FAL) and there is also surplus
capital available in the Corporate Member. There is,
therefore, no intention to cease underwriting or
cease the operations of the Syndicate.
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20241818
Accordingly, the directors of the managing agent
continue to adopt the going concern basis in
preparing the annual report and financial
statements.
Independent 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 KPMG LLP
will therefore continue in office.
Disclosure of information to the
auditor
Each director of the managing agent who held office
at the date of the approval of this report confirms
that:
• so far as the director of the managing agent is
aware, there is no relevant audit information of
which the Syndicate’s auditor is unaware; and
• the director of the managing agent has taken all
the steps that they ought to have taken as a
director of the managing agent in order to make
themself aware of any relevant audit information
and to establish that the Syndicate’s auditor is
aware of that information.
On behalf of the Board
A J Carrier
Chief Executive Officer
26 February 2025
Report of the directors of the managing agent
(continued)
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2024 1919
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Directors and administration CEO Foreword Directors’ report Directors’ responsibilities Independent auditor’s report Financial statements
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’s financial statements for each financial
year. Under that law they have elected to prepare
the financial statements 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 the Insurance Accounts Directive (Lloyd’s
Syndicate and Aggregate Accounts) Regulations
2008 the directors of the managing agent must not
approve the financial statements 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 financial statements;
• Assess the Syndicate’s ability to continue as a
going concern, disclosing, as applicable, matters
related to going concern;
• Use the going concern basis of accounting unless
they either intend to cease trading or have no
realistic alternative but to do so: and
• Prepare and review 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.
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 Syndicate 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.
Statement of responsibilities of the directors of the
managing agent
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20242020
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Independent auditor’s report
to the member of Syndicate 2001
Opinion
We have audited the Syndicate Annual Report and
Accounts of Syndicate 2001 (“the Syndicate”) for the
year ended 31 December 2024 which comprise the
statement of profit or loss and other comprehensive
income, statement of financial position, statement of
cash flows, statement of changes in members’
balances, and related notes, including the
accounting policies in note 3.
In our opinion the Syndicate Annual Report and
Accounts:
• 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 UK accounting standards, including FRS
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 Sections 1
and 5 of the Syndicate Accounts Instructions
Version 2.0 issued by Lloyd’s, as modified by the
Syndicate Accounts Frequently Asked
Questions Version 1.1 dated 18 February 2025
issued by Lloyd’s (together “the Syndicate
Accounts Instructions”).
Basis for opinion
We conducted our audit in accordance with
International Standards on Auditing (UK) (“ISAs
(UK)”), applicable law, and, under the terms of our
engagement letter dated 8 November 2024, the
Syndicate Account Instructions. Our responsibilities
are described below. We have fulfilled our ethical
responsibilities under, and are independent of the
Syndicate in accordance with, UK ethical
requirements including the FRC Ethical Standard as
applied to other entities of public interest. We believe
that the audit evidence we have obtained is a
sufficient and appropriate basis for our opinion.
Going concern
The Directors of the Managing Agent (“the
Directors”) have prepared the Syndicate Annual
Report and Accounts on the going concern basis as
they do not intend to cease underwriting or to cease
its operations, and as they have concluded that the
Syndicate’s financial position means that this is
realistic. They have also concluded that there are no
material uncertainties that could have cast
significant doubt over its ability to continue as a
going concern for at least a year from the date of
approval of the Syndicate Annual Report and
Accounts (“the going concern period”).
In our evaluation of the Directors’ conclusions, we
considered the inherent risks to the Syndicate’s
business model and analysed how those risks might
affect the Syndicate’s financial resources or ability to
continue operations over the going concern period,
including reviewing correspondence with Lloyd’s to
assess whether there were any known impediments
to establishing a further year of account.
Our conclusions based on this work:
• we consider that the Directors’ use of the going
concern basis of accounting in the preparation of
the Syndicate Annual Report and Accounts is
appropriate; and
• we have not identified, and concur with the
Directors’ assessment that there is not, a material
uncertainty related to events or conditions that,
individually or collectively, may cast significant
doubt on the Syndicate’s ability to continue as a
going concern for the going concern period.
However, as we cannot predict all future events or
conditions and as subsequent events may result in
outcomes that are inconsistent with judgements that
were reasonable at the time they were made, the
above conclusions are not a guarantee that the
Syndicate will continue in operation.
Fraud and breaches of laws and regulations
– ability to detect
Identifying and responding to risks of material
misstatement due to fraud
To identify risks of material misstatement due to
fraud (‘fraud risks’) we assessed events or conditions
that could indicate an incentive or pressure to
commit fraud or provide an opportunity to commit
fraud. Our risk assessment procedures at the
Syndicate and Managing Agent included:
• Enquiring of directors, the audit committee,
internal audit, legal, compliance and risk and
inspection of policy documentation as to the
Syndicate and Managing Agent’s high-level
policies and procedures to prevent and detect
fraud, including the internal audit function, and
the Syndicate and Managing Agent’s channel
for “whistleblowing”, as well as whether they
have knowledge of any actual, suspected or
alleged fraud;
• Reading board and audit committee minutes;
• Considering remuneration incentive schemes
and performance targets for management,
directors; and
• Using analytical procedures to identify any
unusual or unexpected relationships.
We communicated identified fraud risks throughout
the audit team and remained alert to any indications
of fraud throughout the audit.
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20242222
As required by auditing standards, and taking into
account possible pressures to meet profit targets
and our overall knowledge of the control
environment, we perform procedures to address the
risk of management override of controls and the risk
of fraudulent revenue recognition, in particular:
• the risk that management may be in a position
to make inappropriate accounting entries; and
• the risk of bias in accounting estimates and
judgements such as the valuation of technical
provisions and the valuation of premium
estimates.
We did not identify any additional fraud risks.
We performed procedures including:
• Identifying journal entries and other
adjustments to test based on risk criteria and
comparing the identified entries to supporting
documentation. These included those posted by
senior management and those who do not
typically post journals, unusual combinations
posted to the gross written premium account
and late adjustments posted to technical
provisions and premium estimates; and
• Assessing whether the judgements made in
making accounting estimates are indicative of a
potential bias.
Identifying and responding to risks of material
misstatement related to compliance with laws
and regulations
We identified areas of laws and regulations that
could reasonably be expected to have a material
effect on the Syndicate Annual Report and Accounts
from our general commercial and sector experience
and through discussion with the directors and other
management (as required by auditing standards),
and from inspection of the Syndicate and Managing
Agent regulatory and legal correspondence and
discussed with the directors and other management
the policies and procedures regarding compliance
with laws and regulations.
As the Syndicate is regulated, our assessment of
risks involved gaining an understanding of the
control environment including the entity’s procedures
for complying with regulatory requirements.
We communicated identified laws and regulations
throughout our team and remained alert to any
indications of non-compliance throughout the audit.
The potential effect of these laws and regulations on
the Syndicate Annual Report and Accounts varies
considerably.
Firstly, the Syndicate is subject to laws and
regulations that directly affect the Syndicate Annual
Report and Accounts including financial reporting
legislation (such as the Insurance Accounts Directive
(Lloyd’s Syndicate and Aggregate Accounts)
Regulations 2008, and the Lloyd’s Syndicate
Accounts Instructions), and we assessed the extent
of compliance with these laws and regulations as
part of our procedures on the related Syndicate
Annual Report and Accounts items.
Secondly, the Syndicate is subject to many other
laws and regulations where the consequences of
non-compliance could have a material effect on
amounts or disclosures in the Annual Return, for
instance through the imposition of fines or litigation
or the loss of the Syndicate’s license to operate. We
identified the following areas as those most likely to
have such an effect: regulatory capital and liquidity,
conduct and financial crime, health and safety, data
protection laws, anti-bribery, employment law,
money laundering, foreign corrupt practices, contract
legislation, competition legislation, and
misrepresentation recognising the financial and
regulated nature of the Syndicate’s activities.
Auditing standards limit the required audit
procedures to identify non-compliance with these
laws and regulations to enquiry of the directors and
other management and inspection of regulatory and
legal correspondence, if any. Therefore if a breach of
operational regulations is not disclosed to us or
evident from relevant correspondence, an audit will
not detect that breach.
Context of the ability of the audit to detect fraud
or breaches of law or regulation
Owing to the inherent limitations of an audit, there is
an unavoidable risk that we may not have detected
some material misstatements in the Syndicate
Annual Report and Accounts, even though we have
properly planned and performed our audit in
accordance with auditing standards. For example,
the further removed non-compliance with laws and
regulations is from the events and transactions
reflected in the Syndicate Annual Report and
Accounts, the less likely the inherently limited
procedures required by auditing standards would
identify it.
In addition, as with any audit, there remained a
higher risk of non-detection of fraud, as these may
involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal
controls. Our audit procedures are designed to
detect material misstatement. We are not
responsible for preventing non-compliance or fraud
and cannot be expected to detect non-compliance
with all laws and regulations.
Other information - Report of the Directors
of the managing agent
The Directors are responsible for the Report of the
Directors of the Managing Agent. Our opinion on the
Syndicate Annual Report and Accounts does not
cover that report and we do not express an audit
opinion or, except as explicitly stated below, any
form of assurance conclusion thereon.
Our responsibility is to read the Report of the
Directors of the Managing Agent and, in doing so,
consider whether, based on our Syndicate Annual
Independent auditor’s report
to the member of Syndicate 2001 (continued)
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2024 2323
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Directors and administration CEO Foreword Directors’ report Directors’ responsibilities Independent auditor’s report Financial statements
Report and Accounts audit work, the information
therein is materially misstated or inconsistent with
the Syndicate Annual Report and Accounts or our
audit knowledge. Based solely on that work:
• we have not identified material misstatements in
the Report of the Directors of the Managing
Agent;
• in our opinion the information given in the Report
of the Directors of the Managing Agent is
consistent with the Syndicate Annual Report and
Accounts; and
• in our opinion the Report of the Directors of the
Managing Agent has been prepared in
accordance with the requirements of the
Insurance Accounts Directive (Lloyd’s Syndicate
and Aggregate Accounts) Regulations 2008.
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 to you if, in our
opinion:
• adequate accounting records have not been kept
on behalf of the Syndicate; or
• the Syndicate Annual Report and Accounts are
not in agreement with the accounting records; or
• certain disclosures of Managing Agent’s
emoluments specified by law are not made; or
• we have not received all the information and
explanations we require for our audit.
We have nothing to report in these respects.
Responsibilities of the Directors of the
Managing Agent
As explained more fully in their statement set out on
page 19, the Directors of the Managing Agent are
responsible for: the preparation of the Syndicate
Annual Report and Accounts in accordance with the
requirements of the Insurance Accounts Directive
(Lloyd’s Syndicate and Aggregate Accounts)
Regulations 2008 and the Syndicate Accounts
Instructions, and for being satisfied that they give a
true and fair view; such internal control as they
determine is necessary to enable the preparation of
Syndicate Annual Report and Accounts that are free
from material misstatement, whether due to fraud or
error; assessing the Syndicate’s ability to continue as
a going concern, disclosing, as applicable, matters
related to going concern; and using the going
concern basis of accounting unless they either intend
to cease operations, or have no realistic alternative
but to do so.
Auditor’s responsibilities
Our objectives are to obtain reasonable assurance
about whether the Syndicate Annual Report and
Accounts as a whole are free from material
misstatement, whether due to fraud or error, and to
issue our opinion in an auditor’s report. Reasonable
assurance is a high level of assurance, but does not
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 aggregate, they could reasonably
be expected to influence the economic decisions of
users taken on the basis of the Syndicate Annual
Report and Accounts.
A fuller description of our responsibilities is provided
on the FRC’s website at www.frc.org.uk/
auditorsresponsibilities.
The Directors of the Managing Agent are required,
under the Syndicate Accounts Instructions, to include
these financial statements within a document to
which XBRL tagging has been applied. This auditor’s
report provides no assurance over whether the
XBRL tagged document has been prepared in
accordance with those requirements.
The purpose of our audit work and to
whom we owe our responsibilities
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 and the
terms of our engagement letter by the Managing
Agent. 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 the further matters we are
required to state to them in accordance with the
terms agreed with the Managing Agent 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.
William Greenfield (Senior Statutory Auditor) for
and on behalf of KPMG LLP, Statutory Auditor
Chartered Accountants
15 Canada Square,
London, E14 5GL
26 February 2025
Independent auditor’s report
to the member of Syndicate 2001 (continued)
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 202224
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2024 2525
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Directors and administration CEO Foreword Directors’ report Directors’ responsibilities Independent auditor’s report Financial statements
Statement of profit or loss and other comprehensive
income for the year ended 31 December 2024
| 2024 | 2023 | ||
| Technical account – general business | Note | £’000 | £’000 |
| Gross written premiums | 6 | ||
| Outward reinsurance premiums | ( | ( | |
| Net written premiums | | ||
Change in the provision for unearned premiums | |||
| Gross amount | 13(c) | | ( |
| Reinsurers’ share | 13(c) | | ( |
| Change in the net provision for unearned premiums | 13(c) | | ( |
| Earned premiums, net of reinsurance | | ||
| Allocated investment return transferred from the non-technical account | 10 | | |
Claims incurred, net of reinsurance | |||
Claims paid | |||
| Gross amount | 13(a) | ( | ( |
| Reinsurers’ share | 13(a) | | |
| Net claims paid | 13(a) | ( | ( |
Change in the provision for claims | |||
| Gross amount | 13(a) | ( | |
| Reinsurers’ share | 13(a) | ( | ( |
| Change in the net provision for claims | 13(a) | ( | |
| Claims incurred, net of reinsurance | 13(a) | ( | |
| Net operating expenses | 7 | ( | ( |
| Balance on the technical account for general business – transferred to non-technical account | |
| 2024 | 2023 | ||
| Non-technical account – general business | Note | £’000 | £’000 |
| Balance on the general business technical account | |||
10 | |||
| Investment income | 10 | | |
| Realised gains/ (losses) on investments | 10 | | ( |
| Unrealised (losses)/ gains on investments | 10 | ( | |
| Investment expenses and charges | ( | ( | |
| Investment return | | ||
| Allocated investment return transferred to general business technical account | ( | ( | |
| Foreign exchange loss | ( | ( | |
| Profit for the financial year |
| 2024 | 2023 | ||
| Other comprehensive income | Note | £’000 | £’000 |
Items that may be reclassified subsequently to profit or loss | |||
| Currency translation differences | | ||
| Total comprehensive income |
All operations of the Syndicate relate to continuing operations.
The accompanying notes and information 29 to 67 form part of these financial statements.
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20242626
Statement of financial position
at 31 December 2024
2024 | Re-presented* 2023 | ||
| Note | £’000 | £’000 | |
| Financial investments | 12(b) | | |
| Deposits with ceding undertakings | | ||
| Investments | | ||
| Provision for unearned premiums | 13(c) | | |
| Claims outstanding | 13(a) | | |
| Reinsurers’ share of technical provisions | | ||
| Debtors arising out of direct insurance operations | 13(e) | | |
| Debtors arising out of reinsurance operations | 13(e) | | |
| Other debtors | 12(c) | | |
| Debtors | | ||
| Cash at bank and in hand | 12(a) | | |
| Other | |||
| Other assets | | ||
- | |||
| Deferred acquisition costs | 13(d) | | |
| Other prepayments and accrued income | | ||
| Prepayments and accrued income | | ||
| Total assets | | ||
| Members’ balance | | ||
| Total capital and reserves | | ||
| Provision for unearned premiums | 13(c) | | |
| Claims outstanding | 13(a) | | |
| Technical provisions | | ||
| Creditors arising out of direct insurance operations | 13(e) | | |
| Creditors arising out of reinsurance operations | 13(e) | | |
| Other creditors | 12(d) | | |
| Creditors | | ||
| Accruals and deferred income | | ||
| Total liabilities | | ||
| Total liabilities, capital and reserves |
* The prior year balances were re-presented as a result of Lloyd’s issuing a new standard proforma on the annual accounts.
The accompanying notes and information on pages 29 to 67 form part of these financial statements.
The financial statements on pages 25 to 28 were approved by the Board of Directors of MS Amlin Underwriting Limited and
were signed on its behalf by
J Burrows
Chief Financial Officer
26 February 2025
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2024 2727
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Directors and administration CEO Foreword Directors’ report Directors’ responsibilities Independent auditor’s report Financial statements
Statement of cash flows
for the year ended 31 December 2024
2024 | Re-presented* 2023 | ||
| Note | £’000 | £’000 | |
Cash flows from operating activities | |||
| Profit for the financial year | | ||
| Increase/ (decrease) in gross technical provisions | ( | ||
| Decrease in reinsurers’ share technical provisions | | ||
| (Increase)/decrease in debtors | ( | | |
| Increase/(decrease) in creditors | ( | ||
| Increase in other assets/liabilities | | ||
| Investment return | ( | ( | |
| Foreign exchange losses/ (gains) | ( | ||
| Net cash inflow/ (outflow) from operating activities | ( | ||
Cash flows from investing activities | |||
| Purchase of equity and debt instruments | ( | ( | |
| Sale of equity and debt instruments | | ||
| Purchase of derivatives | ( | ( | |
| Sale of derivatives | | ||
| Investment income received | | ||
| Other | ( | ( | |
| Net cash (outflow)/ inflow from investing activities | ( | | |
Cash flows from financing activities | |||
| Distribution of profit | ( | ( | |
| Funds in Syndicate releases | ( | ( | |
| Net cash outflow from financing activities | ( | ( | |
| Net (decrease)/ increase in cash and cash equivalents | ( | | |
| Cash and cash equivalents at the beginning of the year | | ||
| Effect of exchange rate on cash and cash equivalents | ( | | |
| Cash and cash equivalents at the end of the year | 12(a) | | |
* The prior year balances were re-presented as a result of Lloyd’s issuing a new standard proforma on the annual accounts.
The accompanying notes and information on pages 29 to 67 form part of these financial statements.
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20242828
Statement of changes in member’s balance
for the year ended 31 December 2024
2024 | Re-presented 2023 | |
| £’000 | £’000 | |
| Member’s balance brought forward at 1 January | | |
| Total comprehensive income for the year | | |
| Payments of profit to member’s personal reserve funds | ( | ( |
| Net movement on Funds in Syndicate | ( | ( |
| Member’s balance carried forward at 31 December | |
Members participate in syndicates by reference to years of account. Assets and liabilities are assessed with reference to policies
incepting in that year of account in respect of their membership of a particular year.
The accompanying notes on pages 29 to 68 form part of these financial statements.
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2024 2929
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Directors and administration CEO Foreword Directors’ report Directors’ responsibilities Independent auditor’s report Financial statements
Notes to the financial statements
for the year ended 31 December 2024
1. Basis of preparation
Syndicate 2001 (the ‘Syndicate’) comprises of one member of the Society of Lloyd’s that underwrites insurance business in
the London Market. The address of the Syndicate’s managing agent is the Leadenhall Building, 122 Leadenhall Street,
London EC3V 4AG.
The financial statements have been prepared using the annual basis of accounting in accordance with the Insurance
Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 and applicable Accounting Standards in
the United Kingdom and the Republic of Ireland, including Financial Reporting Standard 102 (‘FRS 102’). FRS 102 requires
the application of Financial Reporting Standard 103 (‘FRS 103’) in relation to insurance contracts and the Lloyd’s Syndicate
Accounts Instructions Version 2.0 as modified by the Frequently Asked Questions Version 1.1 issued by Lloyd’s. These
requirements have been consistently applied to all years presented.
The financial statements have been prepared on the historical cost basis, except for financial assets at fair value through
profit or loss that are measured at fair value.
Except otherwise stated, all figures in these financial statements are presented in thousands of British pounds sterling
(sterling) shown as £k rounded to the nearest £1,000. Prior year comparative figures presented in tables were unrounded
from millions to thousands in order to align with Lloyd’s requirements. Narratives remain presented in millions.
Following the Reinsurance to Close transaction completed at the end of 2023 (see note 5 ) and the subsequent decision by
the capital provider to increase proportionately the level of US dollars capital, the functional currency of the Syndicate
changed to US dollars from sterling with effect from 1 January 2024. The presentation currency remains sterling .
Going concern
The Syndicate has financial resources to meet its financial needs and manages a mature portfolio of insurance risk through
an experienced and stable team. The directors of the managing agent believe that the Syndicate is well positioned to
manage its business risks successfully in the current economic environment. The directors of the managing agent have
continued to review the business plans, liquidity and operational resilience of the Syndicate.
The 2025 year of account of Syndicate 2001 has opened and the directors of the managing agent have concluded that the
Syndicate has sufficient resources to, and a reasonable expectation that it will, open a 2026 year of account. The Syndicate
has sufficient capital for each year of account in its Funds at Lloyd’s (FAL) and there is also surplus capital available in the
Corporate Member. There is therefore no intention to cease underwriting or cease the operations of the Syndicate.
Accordingly, the directors of the managing agent continue to adopt the going concern basis in preparing the annual report
and financial statements.
Adoption of new and revised standards
New standards, amendments to published standards, and interpretations effective on or after 1 January 2024
There are no new amendments of published standards and interpretations effective from 1 January 2024 that have a
material effect on the Syndicate’s financial statements.
The impact of forthcoming requirements, amendments to published standards and interpretations effective after 31
December 24 are currently under investigation and include changes to:
• FRS 102 section 23 revenue recognition
• FRS 102 section 20 lease accounting requirements
• Other incremental changes to FRS 102
The Syndicate did not early adopt any standards or interpretations.
Re-presentation of comparative information
During 2024, Lloyd’s introduced changes to the syndicate accounts process to rationalise and standardise financial reporting
across the market. As a result, certain comparative information has been re-presented to ensure consistency with current
year presentation and compliance with the Lloyd’s Syndicate Accounts Instructions. The changes comprise:
a) Reclassification changes
Certain financial statement line items have been reclassified whilst the underlying amounts remain unchanged. The principal
change is the reclassification of overseas deposits and derivative liabilities. Overseas deposits were previously shown as a
separate line under other assets and have now been included within financial investments. Derivative liabilities were
previously shown as a net balance with derivative assets under financial investments and have now been reclassified within
other creditors. The comparative balances in the affected notes 5,6,7,8,9,10,11,12 & 13 have been re-presented to align with
the current period presentation.
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20243030
Notes to the financial statements
for the year ended 31 December 2024
1. Basis of preparation
(continued)
Re-presentation of comparative information
(continued)
b) Aggregation changes
To align with Lloyd’s reporting requirements whilst maintaining FRS 102 compliance, certain items have been aggregated or
disaggregated within the financial statements and related notes. This includes the presentation of realised and unrealised gains
and losses on investments, which are now shown on an aggregated basis in the non-technical account of the Statement of
profit or loss.
2. Critical accounting judgements and key sources of estimation uncertainty
The preparation of financial statements in conformity with FRS 102 and FRS 103 requires the use of certain critical accounting
estimates. It also requires the directors of the managing agent to exercise its judgement in the process of applying the
Syndicate’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions
and estimates are significant to the financial statements are disclosed below. The preparation of financial statements requires
the use of estimates and assumptions that affect the reported amounts of assets and liabilities, and the disclosure of contingent
assets and liabilities. Although these estimates are based on managing agent’s best knowledge of current events and actions,
actual results may ultimately differ from those estimates.
Significant accounting estimates Note
Estimation of technical provisions for claims outstanding
2.1
Estimation of gross written premiums 2.2
Estimation of financial instruments 2.3
2.1 Estimation of technical provisions for claims outstanding
The most significant estimate made in the financial statements relates to unpaid claims reserves. The methods, assumptions
and estimates used by the Syndicate to estimate are described in note 13(i).
Unpaid claims reserves are estimated on an undiscounted basis. Provisions are subject to a detailed quarterly review where
forecast unpaid claims reserves and existing amounts provided are reviewed and reassessed. Any changes to the amounts held
are adjusted through the Statement of profit or loss.
Unpaid claims reserves are also subjected to insurance risk and analysis on the sensitivities and further details are in note 13 (f).
2.2 Estimation of gross written premiums
The estimation of gross written premiums is initially based on estimated premium income (‘EPI’) of each contract. The calculation
of EPI is inherently subjective and attained through a combination of underwriters’ best estimates at a policy level and actuarial
techniques at a portfolio level, based on observable historical trends. These estimates are reviewed on a quarterly basis by
underwriters and independently assessed by the actuarial and finance teams. Subsequent adjustments, based on reports of
actual premium by the insureds, ceding companies, intermediaries or coverholders, or revisions in estimates, are recorded in the
period in which they are determined.
The estimation of earned premium uses judgement about the profile of risk over the coverage period of (re)insurance contracts.
Some classes of business may be exposed to a seasonal pattern for the incidence of claims. Where this is the case, the earnings
profile of the related premium is aligned.
The recognition of Gross written premium for binding authorities was updated with effect from 1 January 2024. Prior to 1
January 2024, these policies were deemed to be written in full at the inception of the binding authority contract and earned on
an S-curve profile over 24 months (assuming a 1 year master binder). These policies are now treated on a look-through basis
where underlying contracts are recognised as they are written per the inception profile reflective of the underlying policies
attaching to the master binder and earned on a straight line basis over their exposure period. This relates to a change in
estimation only. The impact on Gross written premium at 31 December 2024 is an increase of £217.7 million, £33.3 million
increase on Gross earned premium and an increase to profit for the year of £8.2 million.
2.3 Significant estimation uncertainty on financial instruments
The fair value of financial assets and financial liabilities that are not traded in an active market (Level 2 and 3) is determined by
valuation models and unobservable inputs (for Level 3 only). Judgement is used to select a variety of valuation methods and
make assumptions that are mainly based on market conditions existing at the end of the reporting period. Details of these
methods and assumptions are described in note 12(f).
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2024 3131
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Directors and administration CEO Foreword Directors’ report Directors’ responsibilities Independent auditor’s report Financial statements
Notes to the financial statements
for the year ended 31 December 2024
3. Significant accounting policies
The principal accounting policies are summarised below. They have been applied consistently throughout the current and
prior years.
Product classification
Insurance contracts are defined as those containing significant insurance risk if, and only if, an insured event could cause an
insurer to make significant additional payments in any scenario, excluding scenarios that lack commercial substance, at the
inception of the contract.
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 classification requirements for insurance contracts are classified as reinsurance
contracts held. Insurance contracts underwritten by the Syndicate under which the contract holder is another insurer
(inwards reinsurance) are included within insurance contracts. Based on the current assessment, all of the products
underwritten by the Syndicate are insurance contracts within the scope of FRS 103.
Gross written premiums
Gross written premiums comprise premium on insurance contracts incepting during the financial year together with
adjustments to premium written in prior periods.
Gross written premiums reflect direct and inwards reinsurance business written during the period, gross of commission
payable to intermediaries, and exclude any taxes or duties based on premiums. The proportion of gross written premium,
gross of commission payable, attributable to periods after the reporting date is deferred as a provision for unearned
premium. The change in this provision is taken to the statement of profit or loss in order that earned premium is recognised
over the period of the risk.
Premium is recognised as earned over the policy contract period. The earned element is calculated separately for each
contract on a basis where the premium is apportioned over the period of risk.
Acquisition costs
Acquisition costs comprise brokerage incurred on insurance contracts written during the financial year. They are deferred on
inception to be expensed on the same basis as the earned proportions of the premiums they relate to.
Outward reinsurance premiums
Outward reinsurance premiums comprise premiums on reinsurance arrangements bought which incept during the financial
year, together with adjustments to premium ceded in prior periods. Premiums on reinsurance assumed are recognised in the
technical account along the same basis as direct business, taking into account the product classification. The proportion of
outward reinsurance premiums attributable to periods after the reporting date is deferred as reinsurers’ share of unearned
premium. Outward reinsurance premiums is earned over the policy contract period in accordance with the terms of the
reinsurance contract.
Claims provisions
Claims paid are defined as those claims transactions settled up to the balance sheet date including the internal and external
claims settlement expenses allocated to those transactions.
Claims reserves are estimated on an undiscounted basis. Unpaid insurance claims reserves are subject to a detailed
quarterly review where forecast unpaid claims reserves and existing amounts provided are reviewed and reassessed.
Unpaid insurance claims reserves are determined by the directors of the managing agent based on experience of claims
settled and on statistical models which require certain assumptions to be made regarding incidence, timing and number of
claims, and any specific factors such as adverse weather conditions. Also included in the estimation of unpaid claims
reserves are factors such as the potential for judicial or legislative inflation. Any changes to the amounts held are adjusted
through the statement of profit or loss. Unpaid claims reserves are established above an actuarial best estimate as an
additional degree of caution. Internal costs incurred to manage and settle claims (unallocated loss adjustment expenses) are
apportioned to outstanding claims.
The unpaid claims reserves also include, if necessary, a reserve for unexpired risks where, at the reporting date, the
estimated costs of future claims and related deferred acquisition costs are expected to exceed the unearned premiums
provision across all years of account (“YOA”).
Some insurance contracts permit the Syndicate to sell (usually damaged) property acquired in settling a claim (for example,
salvage). The Syndicate may also have the right to pursue third parties for payment of some or all costs (for example,
subrogation). Estimates of salvage recoveries and subrogation reimbursements are included as allowances in the
measurement of the technical provisions for unpaid claims, and recognised in insurance and reinsurance receivables when
the liability is settled.
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20243232
Notes to the financial statements
for the year ended 31 December 2024
3. Significant accounting policies
(continued)
Reinsurance recoveries
The Syndicate has reinsurance treaties and other reinsurance contracts that transfer significant insurance risk. The benefits to
which the Syndicate is entitled under its reinsurance contracts held are recognised as reinsurers’ share of claims outstanding.
These assets consist of short-term balances due from reinsurers, as well as longer-term receivables that are dependent on the
expected claims and benefits arising under the related reinsured insurance contracts. Amounts recoverable from or due to
reinsurers are measured consistently with the amounts associated with the reinsured technical provisions for claims outstanding
and in accordance with the terms of each reinsurance contract.
Where there is objective evidence that a reinsurance asset is impaired, the Syndicate reduces the carrying amount of the
reinsurance asset to its recoverable amount and recognises that impairment loss in the statement of profit or loss.
Financial assets and liabilities
The accounting classification of financial assets and liabilities determines the way in which they are measured and changes in
those values are presented in the statement of profit or loss and other comprehensive income. Financial assets and liabilities are
classified on their initial recognition. The initial classification of a financial instrument shall take into account contractual terms
including those relating to future variations.
Once the classification of a financial instrument is determined at initial recognition, re-assessment is only required subsequently
when there has been a modification of contractual terms that is relevant to an assessment of the classification.
The Syndicate’s financial assets are classified at fair value through profit and loss (‘FVPL’). This classification requires all fair
value changes to be recognised immediately within the investment return line in the statement of profit or loss. The Syndicate
has availed itself of the option in FRS 102 to apply the recognition and measurement provisions of IAS 39 Financial Instruments:
Recognition and Measurement to its financial assets and financial liabilities.
Assets at FVPL comprise financial assets and financial liabilities held for trading and those designated as such on initial
recognition. Within the FVPL category, holdings in collective investment schemes, fixed income securities, equity securities,
property funds and certain derivatives are classified as ‘trading’ as the Syndicate buys with the intention to resell. All other
assets at FVPL are designated as such on initial recognition as they are managed, and their performance is evaluated, on a
FVPL basis.
Financial instruments are recognised when the Syndicate becomes a party to the contractual provisions of the instrument.
Financial assets are derecognised if the Syndicate’s contractual rights to the cash flows from the financial assets expire or if the
Syndicate transfers the financial asset to another party without retaining control of substantially all risks and rewards of the
asset. A financial liability is derecognised when its contractual obligations are discharged, cancelled or expired.
Purchases and sales of investments are recognised on the trade date, which is the date the Syndicate commits to purchase or
sell the assets. These are initially recognised at fair value and are subsequently re-measured at fair value based on quoted bid
prices. Transaction costs are recognised directly in the statement of profit or loss when incurred. Changes in the fair value of
investments are included in the statement of profit or loss in the year in which they arise. The uncertainty around valuation is
discussed further in note 12(e).
Financial assets and financial liabilities are offset, and the net amount presented in the balance sheet when, and only when, the
Syndicate currently has a legal right to set off the amounts and intends either to settle on a net basis or to realise the asset and
settle the liability simultaneously.
Reinsurance to Close
A reinsurance to close transaction is treated as the extinguishment of the related net insurance liabilities for the closed
underwriting year. This extinguishment of the liabilities is reflected as a movement in prior period reserve estimates. The net
reinsurance to close premium is determined by reference to estimated outstanding liabilities and related claims settlement costs
(including claims incurred but not reported), net of estimated collectible reinsurance recoveries, relating to the closed year of
account and all previous years of account reinsured therein.
Derivative financial instruments
Derivative financial instruments primarily include currency swaps, currency and interest rate futures, currency options and other
financial instruments that derive their value mainly from underlying interest rates or foreign exchange rates. Derivatives are
initially recognised at fair value on the date on which a derivative contract is entered into and subsequently remeasured to their
fair value at the end of each reporting period. Derivative fair values are determined from quoted prices in active markets where
available or, where these are not available, by using valuation techniques such as discounted cash flow models or option pricing
models. Gains and losses arising from changes in the fair value of derivative instruments are recognised as they arise in the
statement of profit or loss.
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2024 3333
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Directors and administration CEO Foreword Directors’ report Directors’ responsibilities Independent auditor’s report Financial statements
Notes to the financial statements
for the year ended 31 December 2024
3. Significant accounting policies
(continued)
Investment return
The investment return comprises investment income, investment gains and losses, and is net of investment expenses and
charges.
Realised gains or losses are calculated as the difference between the net sales proceeds and their purchase price in the
financial year or their valuation at the commencement of the year. Unrealised gains and losses are calculated as the
difference between the valuation of investments at the balance sheet date and their purchase price in the financial year and
their valuation at the commencement of the year.
All of the investment return arising in the year is reported initially in the non-technical account. A transfer is then made from
the non-technical account to the technical account to reallocate investment return relating to underwriting business.
Tax
No provision has been made in respect of UK income tax on trading income. It is the responsibility of the Corporate Member
to settle tax liabilities arising from Syndicate operations. Overseas taxation comprises US Federal Income tax and Canadian
Federal Income tax. The amounts charged to the member are collected centrally through Lloyd’s Members’ Services Unit as
part of the member’s distribution process. The ultimate tax liability is the responsibility of the Corporate Member.
Foreign currencies
The financial statements are presented in pound sterling (GBP), however from the 1 January 2024, the Syndicate’s functional
currency changed to US dollars (USD).
Transactions in foreign currencies are translated into US dollars at the foreign exchange rates prevailing at the dates of the
transactions. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at
the rates of exchange ruling at the balance sheet date (underwriting related balances, such as Reinsurers’ share of technical
provisions and Technical provisions, are considered to be monetary balances). Exchange differences are recognised within
the ‘non-technical account’.
The presentational currency of the Syndicate is pounds sterling therefore the results and financial position are translated
from US dollars into pounds sterling in the Syndicate’s financial statements, in line with Group policy, as follows:
• assets and liabilities for the balance sheet presented are translated at the closing exchange rate at the date of the
balance sheet;
• income and expenses for the profit and loss account are translated at the exchange rates prevailing at the date of each
transaction, or a practical approximation to these rates;
• translation differences resulted from the above are taken to the Member’s balance and included in other comprehensive
income.
Loans and receivables
Loans and receivables are initially recognised at fair value plus directly related costs and subsequently measured at
amortised cost less any impairment losses. If there is objective evidence that an impairment loss on loans and receivables
has been incurred, the Syndicate measures the amount of the loss as the difference between the carrying amount and the
present value of estimated future cash flows discounted at the effective rate of the loan and receivable at initial recognition.
Impairment losses are recognised in the statement of profit and loss and the carrying amount of the loan and receivable is
reduced by establishing an allowance for the impairment loss. If in a subsequent period the amount of the impairment loss
reduces and the reduction can be ascribed to an event after the impairment was recognised, the previously recognised loss
is reversed by adjusting the allowance.
Other payables
Other payables are initially recognised at fair value and subsequently measured at amortised cost. They represent liabilities
to pay for goods or services that have been received or supplied in the normal course of business, invoiced by the supplier
before the year end, but for which payment has not yet been made.
Insurance debtors and creditors
Insurance debtors and creditors are primarily non-derivative financial assets and liabilities with fixed or determinable
payments and not quoted on an active market. These include amounts due to and from agents, brokers and insurance
contract holders.
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20243434
Notes to the financial statements
for the year ended 31 December 2024
3. Significant accounting policies
(continued)
Insurance debtors and creditors
(continued)
Debtors are initially recognised when due at transaction price, and where applicable are subsequently measured at amortised
cost. The recoverability of these assets is assessed at each balance date and appropriate provision made to ensure that the
balances properly reflect the amounts that will ultimately be received, taking into account counterparty credit risk and the
contractual terms of the contract.
Where a receivable is impaired, the Syndicate reduces the carrying amount of the insurance receivable accordingly and
recognises the impairment loss in the statement of profit or loss. Creditors are initially recognised at transaction price, and where
applicable are subsequently measured at amortised cost.
Cash and cash equivalents
Cash and cash equivalents include cash in hand, unrestricted balances held with banks, and other highly liquid financial assets
with original maturities of less than three months, which are subject to insignificant credit risk, and are used by the Syndicate for
the management of its short-term commitments.
Cash and cash equivalents are carried at amortised cost in the statement of financial position.
Amounts owed to credit institutions, are measured at amortised cost and repayable on demand.
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2024 3535
35
Directors and administration CEO Foreword Directors’ report Directors’ responsibilities Independent auditor’s report Financial statements
Notes to the financial statements
for the year ended 31 December 2024
4. Re-presentation of prior year accounts
The prior year balances were re-presented as a result of Lloyd’s issuing a new standard proforma on the annual accounts.
There was no impact on the statement of profit or loss and other comprehensive income. Changes to the statement of
financial position, statement of cash flows and statement of changes in members’ balance are summarised in the table
below.
The footnotes to the accounts have been similarly re-presented where relevant.
Statement of financial position
31 December 2023 31 December 2023
Note
as previously
reported
£’000
Re-presentations
£’000
as
re-presented
£’000
Financial investments 12(b) 1,186,795 82,437 1,269,232
Deposits and ceding undertakings - 8,758 8,758
Investments 1,186,795 91,195 1,277,990
Reinsurers’ share of technical provision 667,488 - 667,488
Debtors arising out of direct insurance and reinsurance operations 13 932,393 - 932,393
Other debtors 12(c) 211,226 (11,063) 200,163
Debtors 1,143,619 (11,063) 1,132,556
Cash at bank and in hand 12(a) 150,261 - 150,261
Overseas deposits 78,733 (78,733) -
Other - 11,063 11,063
Other assets 228,994 (67,670) 161,324
Prepayments and accrued income 241,776 - 241,776
Total assets 3,468,672 12,462 3,481,134
Capital and reserves 613,061 - 613,061
Technical provisions 13 2,699,900 - 2,699,900
Creditors arising out of direct insurance and reinsurance operations 13(e) 127,857 - 127,857
Other creditors 12(d) 27,854 10,870 38,724
Creditors 155,711 10,870 166,581
Accruals and deferred income - 1,592 1,592
Total liabilities 2,855,611 12,462 2,868,073
Total liabilities, capital and reserves 3,468,672 12,462 3,481,134
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20243636
Notes to the financial statements
for the year ended 31 December 2024
4. Re-presentation of prior year accounts
(continued)
Statement of cash flows
31 December 2023 31 December 2023
as previously
reported
£’000
Re-presentations
£’000
as
re-presented
£’000
Net cash outflow from operating activities (519,723) - (519,723)
Purchase of equity, debt instruments and derivatives (2,148,344) 2,148,344 -
Sale of equity, debt instruments and derivatives 3,041,958 (3,041,958) -
Purchase of equity and debt instruments - (2,050,687) (2,050,687)
Sale of equity and debt instruments - 2,939,469 2,939,469
Purchase of derivatives - (97,657) (97,657)
Sale of derivatives - 102,489 102,489
Investment income received 38,203 - 38,203
Other (4,290) - (4,290)
Net cash inflow/(outflow) from investing activities 927,527 - 927,527
Net cash (outflow)/inflow from financing activities (261,531) - (261,531)
Net increase/(decrease) in cash and cash equivalents 146,273 - 146,273
Cash and cash equivalents at the beginning of the year 2,762 - 2,762
Effect of exchange rate on cash and cash equivalents 1,226 - 1,226
Cash and cash equivalents at the end of the year 150,261 - 150,261
Statement of changes in members’ balance
31 December 2023 31 December 2023
as previously
reported
£’000
Re-presentations
£’000
as
re-presented
£’000
Members’ balance brought forward at 1 January 617,824 - 617,824
Total recognised gains/(losses) for the year 256,768 - 256,768
Funding (returned to)/received from member (261,531) 261,531 -
Payments of profit to members’ personal reserve funds - (13,262) (13,262)
Net movement on Funds in Syndicate - (248,269) (248,269)
Members’ balance carried forward at 31 December 613,061 - 613,061
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2024 3737
37
Directors and administration CEO Foreword Directors’ report Directors’ responsibilities Independent auditor’s report Financial statements
Notes to the financial statements
for the year ended 31 December 2024
5. Impact of RITC and QS transactions
In 2023, the Syndicate entered into two material transactions and paid reinsurance premiums to RiverStone Syndicate 3500
to assume its ongoing liabilities. The nature of these arrangements is that of reinsurance contracts and as such the
Syndicate retains liability in the event of any failure of this Lloyd’s syndicate and the Lloyd’s chain of security. There is no
mechanism for the Syndicate to quantify its exposure in this regard and the directors of the managing agent consider that
the possibility of having to assume these liabilities is remote. The contracts were summarised as follows:
• A (split) reinsurance to close contract for the 2018 and prior years of account. This transfers the financial benefits/
liabilities for all
1
future cash flows to RiverStone Syndicate 3500. (‘2023 RITC’)
• A quota share arrangement, also with RiverStone Syndicate 3500, that allowed for the discontinued lines written in 2019
and subsequent years of account to be fully reinsured. (‘Quota Share’)
(collectively these contracts are referred to as the ‘2023 RiverStone contracts’)
These contracts have a material impact on the primary statements of the Syndicate for 2023 as set out on the next page.
Additional information is included in specific notes where relevant.
The estimates presented below in the 2023 financial statements were subject to a true-up mechanism with RiverStone
during 2024 to finalise the balance. This true up process resulted in a £27.1m charge in the profit and loss during the
finalisation of the RITC and quota share arrangement.
The note from the 2023 financial statements is shown below.
a) Statement of profit or loss
The technical account for general business is divided in the table below between the retained business and business
transferred by the 2023 and 2022 RiverStone contracts.
Technical account – general business
2023
Note
Retained
£’000
Transferred
£’000
As reported
£’000
Gross earned premiums 1,650,411 (3,021) 1,647,390
Earned premiums, net of reinsurance 1,337,248 (1,013,151) 324,097
Allocated investment return transferred from the non-technical account 19,687 - 19,687
Gross incurred claims (721,281) 1,230,352 509,071
Claims incurred, net of reinsurance (680,939) 1,055,519 374,580
Operating expenses 7 (477,451) (119) (477,570)
Balance on the technical account for general business – transferred to
non-technical account
198,545 42,249 240,794
1.Note that certain Covid and Political Risk contracts have been reinsured back to Syndicate 2001.
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20243838
Notes to the financial statements
for the year ended 31 December 2024
5. Impact of RITC and QS transactions
(continued)
b) Statement of financial position
The financial position line items most impacted by the 2023 RiverStone contracts are set out below. The table sets out the
opening balance, the impact of the 2023 RiverStone contracts, the sum of all other movements and the closing position. The
impact of the 2023 RiverStone contracts are presented at a fixed exchange rate for the currencies involved.
Note
2022
£’000
2023
RiverStone
contracts
£’000
Other
movement
£’000
2023
£’000
Investments
Financial investments 2,264,927 (873,441) (122,254) 1,269,232
Deposits with ceding undertakings 12,174 - (3,416) 8,758
2,277,101 (873,441) (125,670) 1,277,990
Reinsurers’ share of technical provisions
Provision for unearned premiums 13(c) 73,770 - (50,930) 22,840
Claims outstanding 13(a) 989,278 (135,950) (208,680) 644,648
1,063,048 (135,950) (259,610) 667,488
Other assets
Other assets/(liabilities) 1,238,050 (153,282) 282,715 1,367,483
Total assets 4,578,199 (1,162,673) (102,565) 3,312,961
Member’s balance 617,825 51,255 (56,019) 613,061
Technical provisions
Provision for unearned premiums 13(c) 915,198 (1,917) 73,292 986,573
Claims outstanding 13(a) 3,045,176 (1,212,011) (119,838) 1,713,327
3,960,374 (1,213,928) (46,546) 2,699,900
Total liabilities 4,578,199 (1,162,673) (102,565) 3,312,961
c) Statement of cash flows
The net cash flow from operating activities in the Statement of cash flows of £731.0 million includes the movement for the
2023 RiverStone contracts and therefore shows a significant cash outflow. When the impact of this is removed, the retained
business has a cash inflow from operating activities of £420.3 million.
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2024 3939
39
Directors and administration CEO Foreword Directors’ report Directors’ responsibilities Independent auditor’s report Financial statements
Notes to the financial statements
for the year ended 31 December 2024
6. Analysis of underwriting result
An analysis of the underwriting result before investment return is presented in the table below:
2024
Gross
written
premiums
£’000
Gross
earned
premiums
£’000
Gross
claims incurred
£’000
Net
operating
expenses
£’000
Reinsurance
balance
£’000
Underwriting
result
£’000
Direct insurance
Accident and health 34,704 42,751 (23,863) (17,031) 1,374 3,231
Motor (third party liability) 13,190 14,982 (8,867) (5,571) 383 927
Motor (other classes) 56,247 82,270 (53,301) (28,554) 658 1,073
Marine, aviation and transport 175,263 192,863 (131,871) (58,623) 16,200 18,569
Fire and other damage to property 422,702 445,452 (270,522) (140,477) 13,596 48,049
Third party liability 117,923 147,593 (82,994) (53,656) 7,261 18,204
Miscellaneous 76,158 63,370 (39,193) (21,215) 9,048 12,010
Total direct insurance 896,187 989,281 (610,611) (325,127) 48,520 102,063
Reinsurance acceptances 873,261 843,297 (454,498) (201,519) (117,052) 70,228
Total 1,769,448 1,832,578 (1,065,109) (526,646) (68,532) 172,291
The below is an additional disclosure for Lloyd’s reporting purposes and is included to facilitate the classification of the
above segments into the Lloyd’s aggregate classes of business:
2024
Gross
written
premiums
£’000
Gross
earned
premiums
£’000
Gross
claims incurred
£’000
Net
operating
expenses
£’000
Reinsurance
balance
£’000
Underwriting
result
£’000
Additional analysis
Fire and damage to property includes:
- Specialities 30,858 33,299 (4,179) (11,738) (2,406) 14,976
- Energy 26,816 24,464 (11,667) (6,268) 118 6,647
Third party liability includes:
- Energy 1,943 1,958 (113) (179) (148) 1,518
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20244040
Notes to the financial statements
for the year ended 31 December 2024
2023
Gross
written
premiums
£’000
Gross
earned
premiums
£’000
Gross
claims incurred
£’000
Net
operating
expenses
£’000
Reinsurance
balance
£’000
Underwriting
result
£’000
Direct insurance
Accident and health 32,962 33,223 (9,441) (12,938) (8,898) 1,946
Motor (third party liability) 16,949 15,975 (7,655) (7,113) (3,150) (1,943)
Motor (other classes) 62,362 74,925 (29,004) (20,636) (23,800) 1,485
Marine, aviation and transport 204,439 197,327 58,320 (58,559) (160,274) 36,814
Fire and other damage to property 399,593 370,037 163,605 (118,415) (369,959) 45,268
Third party liability 141,474 119,767 391,892 (52,750) (438,861) 20,048
Miscellaneous 64,915 57,242 434 (20,341) (29,618) 7,717
Total direct insurance 922,694 868,496 568,151 (290,752) (1,034,560) 111,335
Reinsurance acceptances 825,968 778,894 (59,080) (186,818) (423,224) 109,772
Total 1,748,662 1,647,390 509,071 (477,570) (1,457,784) 221,107
The below is an additional disclosure for Lloyd’s reporting purposes and is included to facilitate the classification of the above
segments into the Lloyd’s aggregate classes of business:
2023
Gross
written
premiums
£’000
Gross
earned
premiums
£’000
Gross
claims incurred
£’000
Net
operating
expenses
£’000
Reinsurance
balance
£’000
Underwriting
result
£’000
Additional analysis
Fire and damage to property includes:
- Specialities 32,773 29,730 29,973 (9,171) (31,456) 19,076
- Energy 23,683 20,562 7,117 (4,989) (18,870) 3,820
Third party liability includes:
-Energy 1,224 1,220 168 (307) (3,165) (2,084)
All premiums are concluded in the UK. The reinsurance balance is gross of commission and profit participation earned by the
Syndicate as detailed in note 7. The analysis on the previous page is as per Lloyd’s requirements and is different to how the
Syndicate is managed by the managing agent.
The extinguishment of liabilities through the 2023 RiverStone contracts has distorted the claims incurred and the reinsurance
balance components of the 2023 segmental analysis.
A net charge of £68,532k was recognised in profit or loss during the year on buying reinsurance (2023: charge £1,457,784k).
The gross premiums written for direct insurance by underwriting location of risk is presented in the table below:
Re-presented
2024
£’000
2023
£’000
UK 164,591 208,017
European Union 9,659 9,512
USA 452,506 452,728
Rest of the world 269,431 252,437
Total 896,187 922,694
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2024 4141
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Directors and administration CEO Foreword Directors’ report Directors’ responsibilities Independent auditor’s report Financial statements
Notes to the financial statements
for the year ended 31 December 2024
7. Net operating expenses
Note
2024
£’000
2023
£’000
Acquisition costs 332,226 335,797
Change in deferred acquisition costs 13(d) 27,308 (21,921)
Administrative expenses 145,367 137,101
Members’ standard personal expenses 29,849 29,215
Reinsurance commission and profit participation (8,104) (2,622)
Net operating expenses 526,646 477,570
Total commissions for direct insurance business for the year are shown in the table below:
2024
£’000
2023
£’000
Total commission for direct insurance business 240,488 226,301
Administrative expenses include:
Auditors’ remuneration
2024
£’000
2023
£’000
– Fees payable to the Syndicate’s auditor for the audit of these financial statements 1,334 1,890
– fees payable to the Syndicate’s auditor and its associates in respect of other services pursuant to legislation 156 55
For the audit of MS Amlin Underwriting Limited’s financial statements, the auditor’s remuneration was £53k (2023: £43.4k).
8. Staff numbers and costs
All staff are employed by MS Amlin Corporate Services Limited (‘MS ACS’). The following amounts were recharged to the
Syndicate in respect of salary costs:
2024
£’000
2023
£’000
Wages and salaries 46,135 45,734
Social security costs 6,091 5,769
Other pension costs 5,329 5,046
Total 57,555 56,549
Pension costs reflect contributions paid to the MS Amlin defined contribution scheme.
The average number of persons employed by MS ACS but working for the Syndicate during the year, analysed by category,
was as follows:
2024 2023
Administration and finance 172 168
Underwriting 224 257
Claims 57 72
Total 453 497
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20244242
Notes to the financial statements
for the year ended 31 December 2024
9. Directors’ emoluments
Certain directors of the managing agent are also directors or employees of other companies within the MSI Group. As such a
proportion of the total emoluments have been allocated to the Syndicate. However, this is not necessarily a reflection of the
amount, if any, charged to the Syndicate by the company employing the director. Only amounts in respect of qualifying services
are disclosed in the table below:
2024 2023
£’000 £’000
Directors’ emoluments 4,312 2,834
Payments were made to three directors of the managing agent (2023: two) in respect of defined contribution pension schemes.
No payments were made in respect of defined benefit pension schemes in the current or prior year. During the year, six directors
of the managing agent were members of long-term incentive schemes (2023: five).
The total above includes payment of deferred awards due to former directors of the managing agent.
The highest paid director of the managing agent received the following proportionate total emoluments during their time in
office:
2024 2023
£’000 £’000
Emoluments 1,546 1,031
The highest paid director of the managing agent is (2023: is) a member of a long-term incentive scheme and did not (2023: did
not) receive payment in respect of either a defined benefit or defined contribution pension scheme.
The active underwriter (2023: two) during the year received the following proportionate remuneration charged as a Syndicate
expense for the period they were appointed:
2024 2023
£’000 £’000
Emoluments 755 430
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2024 4343
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Directors and administration CEO Foreword Directors’ report Directors’ responsibilities Independent auditor’s report Financial statements
Notes to the financial statements
for the year ended 31 December 2024
10. Investment return
2024
£’000
2023
£’000
Interest and similar income
From financial assets designated at fair value through profit or loss
Interest income 20,908 18,264
Dividend income 2,004 1,906
Interest on cash at bank 5,014 5,873
Other income from investments
From financial assets designated at fair value through profit or loss
Gains on the realisation of investments 112,698 83,082
Losses on the realisation of investments (23,183) (87,297)
Unrealised gains on investments 33,414 57,090
Unrealised losses on the investments (101,279) (36,936)
Investment management expenses (8,793) (4,288)
Total investment return 40,783 37,694
Transferred to the technical account from the non-technical account 38,466 19,687
Investment return on Funds in Syndicate 2,317 18,007
The above figures include investment profit of £2.3 million (2023: profit of £18.0 million) on cash, bonds, equity and property
investments deposited by the Corporate Member into the Funds in Syndicate balance.
An investment return of £38.5 million (2023: £19.7 million) was allocated to the technical account from the non-technical
accounts. This is made up of the Syndicate’s underwriting assets. Investment return on the Syndicate’s capital assets remains in
the non-technical account.
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20244444
Notes to the financial statements
for the year ended 31 December 2024
11. Foreign exchange risk
a) Revaluation
The Syndicate’s functional currency is US dollars. The Syndicate holds asset and liability balances in major base currencies of
pound sterling, euro, US dollar and Canadian dollar, and additional currencies of New Zealand dollar, Japanese yen and
Australian dollar. The Syndicate aims as far as possible to match the value of the assets held in these currencies with the
equivalent liabilities to minimise foreign exchange exposure.
Foreign exchange exposure arises when business is written in non-functional currencies. These transactions are translated into
the functional currency US dollars, at the prevailing spot rate once the premiums are received. Consequently, there is exposure to
currency movements between the exposure being written and the premiums being received. Payments in non-base currencies
are converted back into the underlying currency at the time a claim is to be settled or an expense is to be paid; therefore, the
Syndicate is exposed to exchange rate risk between the claim or expense being made and its subsequent settlement.
The average and closing rates of exchange used by the Syndicate to revalue in pound sterling and its functional currency US
dollars are shown below.
GBP 2024 2023
Currency
Start of
period rate
End of period
rate
Average
rate
Start of
period rate
End of period
rate
Average
rate
AUD 1.8685 2.0163 1.9372 1.7736 1.8685 1.8725
CAD 1.6871 1.8013 1.7508 1.6395 1.6871 1.6778
EUR 1.1535 1.2062 1.1812 1.1295 1.1535 1.1498
GBP 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000
JPY 179.5570 196.4510 193.4848 158.4660 179.5570 174.7028
USD 1.2731 1.2559 1.2781 1.2083 1.2731 1.2436
The Syndicate will also occasionally transact currencies on a forward basis particularly when net monetary assets/liabilities
exceed pre-agreed thresholds. All forward contracts are carried out with well-rated banks, so as to limit the counterparty risk.
The investment managers also hold forward foreign exchange contracts in their portfolios at the year-end in order to hedge
non-base currency investments. All forward contracts are marked to market in their valuations.
USD 2024
Currency
Start of
period rate
End of period
rate
Average
rate
AUD 1.4680 1.6054 1.5786
CAD 1.3243 1.4343 1.4248
EUR 0.9059 0.9604 0.9544
GBP 0.7855 0.7962 0.7911
JPY 141.0438 156.4211 153.7264
USD 1.0000 1.0000 1.0000
The Syndicate will also occasionally transact currencies on a forward basis particularly when net monetary assets/liabilities
exceed pre-agreed thresholds. All forward contracts are carried out with investment grade banks, so as to limit the counterparty
credit risk. The investment managers also hold forward foreign exchange contracts in their portfolios at the year-end in order to
hedge non-base currency investments. All forward contracts are marked to market in their valuations.
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2024 4545
45
Directors and administration CEO Foreword Directors’ report Directors’ responsibilities Independent auditor’s report Financial statements
Notes to the financial statements
for the year ended 31 December 2024
11. Foreign exchange risk
(continued)
b) Currency balance sheet
The table below presents the Syndicate’s assets and liabilities by major base currency. The amounts are stated in the pound
sterling equivalent of the local currency using the exchange rates as disclosed in the table above. The financial investments
are presented on a look through basis to the underlying currency and include overseas deposits.
GBP USD EUR CAD AUD JPY Other Total
2024 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Investments 88,011 1,359,584 122,464 176,140 11,082 4,520 38,267 1,800,068
Reinsurers’ share of technical
provisions 50,689 508,409 14,143 20,170 430 - - 593,841
Debtors 177,182 878,567 49,098 35,333 27,112 (1,051) 54,134 1,220,375
Other assets 12,896 217,102 17,676 11,250 10,919 521 11,791 282,155
Prepayments and accrued income 23,295 7,303 117 - - - - 30,715
Total assets 352,073 2,970,965 203,498 242,893 49,543 3,990 104,192 3,927,154
Technical provisions (315,565) (2,215,661) (134,659) (129,962) (119,104) (4,522) (108,368) (3,027,841)
Creditors (57,858) (186,021) (16,288) (10,629) (278) - (17,025) (288,099)
Accruals and deferred income (234) (673) - - (152) - - (1,059)
Total liabilities (373,657) (2,402,355) (150,947) (140,591) (119,534) (4,522) (125,393) (3,316,999)
Total capital and reserves 21,584 (568,610) (52,551) (102,302) 69,991 532 21,201 (610,155)
GBP USD EUR CAD AUD JPY Other Total
2023 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Investments 519,256 480,643 57,129 154,198 14,962 4,925 46,877 1,277,990
Reinsurers’ share of technical
provisions 119,947 494,765 19,842 32,934 - - - 667,488
Debtors 249,890 741,542 27,679 62,139 29,272 (754) 22,788 1,132,556
Other assets 48,340 258,042 13,125 14,937 11,980 454 32,459 379,337
Prepayments and accrued income 23,045 630 - - 13 - 75 23,763
Total assets 960,478 1,975,622 117,775 264,208 56,227 4,625 102,199 3,481,134
Technical provisions (254,871) (1,931,450) (137,044) (155,576) (114,919) (5,423) (100,617) (2,699,900)
Creditors (43,934) (97,162) (984) (6,463) 857 - (18,895) (166,581)
Accruals and deferred income (423) (1,096) - - (73) - - (1,592)
Total liabilities (299,228) (2,029,708) (138,028) (162,039) (114,135) (5,423) (119,512) (2,868,073)
Total capital and reserves (661,250) 54,086 20,253 (102,169) 57,908 798 17,313 (613,061)
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20244646
Notes to the financial statements
for the year ended 31 December 2024
11. Foreign exchange risk
(continued)
c) Sensitivity analysis
The below sensitivity analysis has been presented in the Syndicate’s functional currency in the respective year. If the foreign
currencies were to strengthen/weaken by 10% against US dollars (2023: pound sterling), the movement in the monetary net
assets and liabilities of the Syndicate, before hedging activities, would result in the following gains/(losses) on the result and
member’s balance at 31 December 2024:
31 December 2024 31 December 2023
10%
strengthening
of currency
against GBP
10%
weakening
of currency
against GBP
10%
strengthening
of currency
against GBP
10%
weakening
of currency
against GBP
Currency £’000 £’000 £’000 £’000
Pound sterling (3,012) 2,464 - -
US dollar - - (6,010) 4,917
Canadian dollar 14,276 (11,680) 11,352 (9,288)
Euro 7,333 (6,000) (2,250) 1,841
Australian dollar (9,767) 7,991 (6,434) 5,264
Total 8,830 (7,225) (3,342) 2,734
The foreign exchange gain on translation recognised in other comprehensive income for the year ended 31 December 2024 was
£8.6 million. This reflects the difference between the 2024 monthly average US dollar exchange rates and the closing US dollar
exchange rate of 1.2559 as at 31 December 2024.
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2024 4747
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Directors and administration CEO Foreword Directors’ report Directors’ responsibilities Independent auditor’s report Financial statements
Notes to the financial statements
for the year ended 31 December 2024
12. Financial assets and liabilities
a) Cash and cash equivalents
2024 2023
£’000 £’000
Cash at bank and in hand 92,239 150,261
Analysis of movement
At 1 January
2024
£’000
Cash flows
£’000
Fair value and
exchange
movements
£’000
At 31
December
2024
£’000
Cash and cash equivalents 150,261 (57,403) (619) 92,239
Derivative financial liabilities 12,462 - (2,693) 9,769
Total 162,723 (57,403) (3,312) 102,008
b) Financial investments
Carrying value At Cost
2024 2023 2024 2023
£’000 £’000 £’000 £’000
Shares, other variable yield securities and units in unit trusts 1,350,069 882,491 1,288,891 749,317
Debt securities and other fixed income securities 247,766 219,507 241,543 213,452
Participation in investment pools 124,371 79,975 124,371 79,975
Loans and deposits with credit institutions 119 118 119 118
Derivative assets 12,037 8,408 - -
Other investments 64,026 78,733 64,026 78,733
Total financial investments 1,798,388 1,269,232 1,718,950 1,121,595
Shares, other variable yield securities and units in unit trusts include minority shareholdings held by the Syndicate in unlisted
companies, loans made to the Lloyd’s Central Fund and investment in alternative asset classes. The classification of the
loans is as per Lloyd’s guidance.
The amount ascribable to listed investments is £294.7m (2023: £283.5m).
The table below presents an analysis of financial investments by their measurement classification.
2024 2023
£’000 £’000
Financial assets measured at fair value through profit or loss 1,798,388 1,269,232
Total financial investments 1,798,388 1,269,232
Underwriting liabilities are matched by bonds, investment pools and cash. Other more volatile assets, including equities,
represent capital.
As the Syndicate is fully aligned, the Syndicate partially holds the capital supporting underwriting in Syndicate premium
trust funds. These funds are known as Funds in Syndicate (FIS). At 31 December 2024, the following amount was held as
Funds in Syndicate:
2024 2023
£’000 £’000
Funds in Syndicate (FIS) 285,797 480,764
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20244848
Notes to the financial statements
for the year ended 31 December 2024
12. Financial assets and liabilities
(continued)
b) Financial investments
(continued)
The table below analyses the derivative assets and liabilities by type: 2024 2023
Notional
amount
£’000
Fair value
£’000
Notional
amount
£’000
Fair value
£’000
Foreign exchange forward contracts 16,550 4,926 (4,545) (5,430)
Foreign exchange future options 356,647 (2,659) 63,829 1,376
Total 373,197 2,267 59,284 (4,054)
c) Other debtors
2024 2023
£’000 £’000
Other related party balances (non-syndicate) 206,680 182,940
Other 9,790 17,223
Total 216,470 200,163
Included in other related party balances (non-syndicate) in the current and prior year is a loan to MS ACS. This loan of £56.3
million (2023: £60.4 million) is to fund change projects MS ACS is managing on behalf of the Syndicate. The loan is on a
recurring 1-year term, repayable after a 12-month notice period and does not charge interest. £22.3 m (2023: £11.4m) of the
loan is expected to be repaid within 12 months, with the remainder beyond 12 months.
All other debtor amounts owed are unsecured, have no fixed date of repayment, are payable on demand, are non-interest
bearing and are recoverable within 12 months.
d) Other creditors
2024 2023
£’000 £’000
Other related party balances (non-syndicate) 30,377 13,692
Derivative liabilities 9,769 12,462
Other liabilities 33,497 12,570
73,625 38,724
Other related party balances (non-syndicate) are unsecured, have no fixed date of repayment, are payable on demand and are
non-interest bearing. Other creditors are all current, both in the current and prior years.
e) Fair value hierarchy
The Syndicate classifies its financial instruments held at fair value in its balance sheet using a fair value hierarchy based on the
inputs used in the valuation techniques as follows:
Level 1: Financial assets that are measured by reference to published quotes in an active market. A financial instrument is
regarded as quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer,
broker, industry group, pricing service or regulatory agency and those prices represent actual and regularly occurring
market transactions on an arm’s length basis.
Level 2: Financial assets measured using a valuation technique based on assumptions that are supported by prices from
observable current market transactions. For example, assets for which pricing is obtained via pricing services but
where prices have not been determined in an active market, financial assets with fair values based on broker quotes,
investments in private equity funds with fair values obtained via fund managers and assets that are valued using the
Syndicate’s own models whereby the significant inputs into the assumptions are market observable.
Level 3: Financial assets measured using a valuation technique (model) based on assumptions that are neither supported by
prices from observable current market transactions in the same instrument nor are they based on available market
data. Therefore, unobservable inputs reflect the Syndicate’s own assumptions about the assumptions that market
participants would use in pricing the asset or liability (including assumptions about risk). These inputs are developed
based on the best information available, which might include the Syndicate’s own data.
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2024 4949
49
Directors and administration CEO Foreword Directors’ report Directors’ responsibilities Independent auditor’s report Financial statements
Notes to the financial statements
for the year ended 31 December 2024
12. Financial assets and liabilities
(continued)
e) Fair value hierarchy
(continued)
Shares and other variable yield securities and units in unit trusts
Listed equities traded on a primary exchange in an active market are classified as Level 1. Minority shareholdings held by the
Syndicate in unlisted companies are classified as Level 3.
Variable yield securities are represented by loans to the Lloyd’s Central Fund as well as investment in alternative asset classes
(property, private equity and a global credit hedge fund) and are all classified as Level 3. Level 3 investments in alternative
asset classes are valued using net asset statements provided by independent third parties.
Units in unit trusts represent investments in open-ended investment unit trusts. The fair value of the investment in unlisted
open-ended investments is determined using an unadjusted net asset value, which results in a Level 2 valuation. The
unadjusted net asset value is used as the units are redeemable at the reportable net asset value at the measurement date.
Debt and other fixed income securities
The fair value is based upon quotes from pricing services where available. These pricing services derive prices based on an
average of quotes provided by brokers. Where multiple quotes are not available, the fair value is based upon evaluated pricing
services, which typically use proprietary cash flow models and incorporate observable market inputs, such as credit spreads,
benchmark quotes and other trade data. If such services do not provide coverage of the asset, then fair value is determined
manually using indicative broker quotes, which are corroborated by recent market transactions in similar or identical assets.
Where there is an active market for these assets and their fair value is the unadjusted quoted market price, these are classified
as Level 1. This is typically the case for government bonds. Level 1 also includes bond funds, where fair value is based upon
quoted prices. Where the market is inactive or the price is adjusted, but significant market observable inputs having been used
by the pricing sources, then these are considered to be Level 2. This is typically the case for government agency debt,
corporate debt, mortgage and asset-backed securities and catastrophe bonds.
Participation in investment pools
These are units held in money market funds and the value is based upon unadjusted, quoted and executable prices provided
by the fund manager and classified as Level 1.
Derivatives
Listed derivative contracts, such as futures, that are actively traded are valued using quoted prices from the relevant exchange
and are classified as Level 1. Over the counter currency options are valued by the counterparty using quantitative models with
multiple market inputs such as foreign exchange rate volatility. The market inputs are observable, and the valuation can be
validated through external sources. These are classified as Level 2.
Other investments
Other investments represent overseas deposits held through Lloyd’s. Overseas deposits are lodged as a condition of conducting
underwriting business in certain countries and for local regulatory requirements. They are classified as Level 1 and Level 2.
Net financial investments by fair value grouping:
2024 2023
Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
£’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Assets
Shares, other variable yield
securities and units in unit trusts 16 1,110,844 239,209 1,350,069 726 624,195 257,570 882,491
Debt and other fixed income
securities 116,104 131,662 - 247,766 133,538 85,969 - 219,507
Participation in investment pools 124,371 - - 124,371 79,975 - - 79,975
Loans and deposits with credit
institutions - 119 - 119 - 118 - 118
Derivative assets - 12,037 - 12,037 4,856 3,552 - 8,408
Other investments 20,051 43,975 - 64,026 23,759 54,974 - 78,733
Total financial investments 260,542 1,298,637 239,209 1,798,388 242,854 768,808 257,570 1,269,232
Liabilities
Derivative liabilities (2,659) (7,110) - (9,769) (3,448) (9,014) - (12,462)
Total 257,883 1,291,527 239,209 1,788,619 239,406 759,794 257,570 1,256,770
The table above excludes the Syndicate’s holdings of cash and cash equivalents of £92.2 million (2023: £150.3 million). These
are measured at amortised cost and are categorised as Level 1. The table above discloses overseas deposits within other
investments.
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20245050
Notes to the financial statements
for the year ended 31 December 2024
12. Financial assets and liabilities
(continued)
e) Fair value hierarchy
(continued)
The majority of the Syndicate’s investments are valued based on quoted market information or other observable market data.
The Syndicate holds 13.4% (2023: 20.5%) of its net financial investments at a fair value based on estimates and recorded as
Level 3 investments. Level 3 investments in collective investment schemes are valued using net asset statements provided by
independent third parties. Where estimates are used, these are based on a combination of independent third-party evidence
and internally developed models, calibrated to market observable data where possible.
Transfers between levels of the fair value hierarchy
The managing agent’s policy is to recognise transfers into and transfers out of fair value hierarchy levels at the start of the
relevant reporting period during which the transfers are deemed to have occurred.
There were no transfers between the levels in the current or prior years.
The following table provides an analysis of investments valued with reference to level 3 inputs.
2024 2023
£’000 £’000
At 1 January
257,570 277,351
Purchases
185,845 15,084
Disposals
(196,343) (8,377)
Fair value losses recognised in profit or loss
(7,863) (26,488)
At 31 December
239,209 257,570
f) Investment risk
The following section describes the Syndicate’s investment risk management from a quantitative and qualitative perspective.
The Syndicate has two main categories of assets:
• Underwriting assets – premium received and held to meet future insurance claims.
• Capital assets – capital required by Lloyd’s to support the underwriting business. These represent funds deposited by the
Corporate Member as FIS plus working capital and surplus funds.
Surplus funds/undistributed profits may be held in either category.
Investment governance
The managing agent manages the Syndicate’s investments in accordance with the investment governance framework that is
set by the Board. The framework is reviewed on a regular basis to ensure that the Board’s fiduciary and regulatory
responsibilities are being met. Oversight of investments is delegated to the Investment Committee (‘IC’) and day-to-day
management of the investments is delegated to MS Amlin Investment Management Limited (‘MS AIML’).
The IC comprises the Chief Finance Officer as Chairman, with the Chief Executive Officer and Chief Risk Officer as the other
members. The IC meets at least quarterly and supports the Board in carrying out investment related responsibilities. During the
period, MS AIML was responsible for asset allocation and the appointment of external investment managers and custodians,
within a mandate recommended by the IC and approved by the Board. The IC is kept updated on relevant issues relating to
day-to-day management.
Investment management
Investments are managed on a multi-asset, multi-manager basis. Exposure to the asset classes is achieved using physical
holdings of the asset class or derivative instruments and may be managed by MS AIML or by outsourced managers, on a
segregated, pooled or commingled basis. Manager selection is based on a range of criteria that leads to the expectation that
they will add value to the Syndicate’s assets over the medium to long-term. The external managers have discretion to manage
the investments on a day-to-day basis within investment mandates and / or prospectuses applicable to their portfolios that
ensure that they comply with the investment frameworks. The external managers’ performance, compliance and risk are
monitored on an on-going basis.
Risk tolerance
Investment risk tolerances are set by the Board following recommendation from the Risk & Solvency Committee and IC. The
primary tolerance is the Value at Risk (‘VaR’) metric which is set to be consistent with the risk appetite that maintains the
solvency levels in a 1-in-200 year event and considers factors such as the capital capacity and the capital management policy.
Tolerances may be lower when capital capacity is constrained and vice versa. Investment risk is monitored by MS AIML using a
market-recognised third-party risk model and reported to the IC (with escalations to the R&SC) on a quarterly basis.
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2024 5151
51
Directors and administration CEO Foreword Directors’ report Directors’ responsibilities Independent auditor’s report Financial statements
Notes to the financial statements
for the year ended 31 December 2024
12. Financial assets and liabilities
(continued)
f) Investment risk
(continued)
Asset allocation
The IC is responsible for recommending the investment mandate for approval by the Board. The mandate includes
performance measures, risk tolerances as well as strategic and tactical asset allocation limits. MS AIML have discretion to
manage the asset allocation that they judge will provide the appropriate risk/reward balance, whilst respecting the VaR,
tolerance and asset class, liquidity and counterparty limits set out in the investment mandate. The expected duration for
future cash flows in each currency is calculated by the Actuarial team for policyholder portfolios, the average of these forms
the basis of asset liability duration management. The IC reviews/challenges the MS AIML asset allocation and investment
risk stance on a quarterly basis.
g) Market risk
This section describes the aspects of market risk that concerns the risks associated with valuation and interest rates.
Valuation risk
The Syndicate’s earnings are directly affected by changes in the valuation of the investments held in the portfolios. These
valuations vary according to the movements in the underlying markets. The Syndicate’s assets are marked to market at bid
price. Prices are supplied by the custodians, whose pricing processes are covered by their published annual audits. In
accordance with their pricing policies, prices are sourced from market recognised pricing vendor sources. These pricing
sources use closing trades, or where more appropriate in illiquid markets, pricing models.
The managing agent operates an established control framework with respect to fair value measurement which ensures the
valuation of financial assets and financial liabilities meets the requirements of FRS 102. As part of this process, the
managing agent reviews the valuation policies of its custodians along with the evidence provided by the custodians to
support fair value measurement. The prices are also reconciled to the fund managers’ records to check for reasonableness.
Further details of the fair value measurement of financial assets and financial liabilities are included in note 12(e).
Equity risk
The valuation of investments is sensitive to equity risk. As part of the release of surplus capital during the year, the previous
allocation to listed equities was reduced to nil. The impact on profit for 2023 of a 50 basis point movement in stock market
prices on the Syndicates result and net assets is shown below.
2024 2023
Impact on
results before
tax
Impact on
members’
balance
Impact on
results before
tax
Impact on
members’
balance
£’000 £’000 £’000 £’000
5% increase in equity prices - - 4,065 4,065
5% decrease in equity prices - - (4,065) (4,065)
Interest rate risk
Investors’ expectations for interest rates will impact bond yields. The value of the Syndicate’s bond holdings is therefore
subject to fluctuation as bond yields rise and fall. If the yield falls the capital value will rise, and vice versa. The sensitivity of
the price of a bond is indicated by its duration. The greater the duration of a security the greater its price volatility.
The underwriting liabilities are not currently discounted and therefore their value is not impacted by interest rate
movements. Cash is raised, or the duration of the portfolio reduced, if it is believed that yields may rise and therefore capital
values will fall. Included in the above is £2.5 million (2023: £1.6 million) of accrued interest.
The impact of a 50 basis point movement in interest rates on the Syndicate’s result and net assets is show below.
2024 2023
Impact on
results before
tax
Impact on
members’
balance
Impact on
results before
tax
Impact on
members’
balance
£’000 £’000 £’000 £’000
50 basis point increase in interest rates (17,255) (17,255) (12,800) (12,800)
50 basis point decrease in interest rates 19,034 19,034 13,390 13,390
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20245252
Notes to the financial statements
for the year ended 31 December 2024
12. Financial assets and liabilities
(continued)
h) Liquidity risk
Liquidity risk is the risk that the Syndicate will encounter difficulty in meeting obligations arising from its insurance contracts and
financial liabilities. The Syndicate is exposed to daily calls on its available cash resources mainly from claims arising from
insurance contracts. Levels of cash are therefore managed on a daily basis and buffers of liquid assets are also held in excess of
the immediate requirements. This is to reduce the risk of being forced sellers of any of the Syndicate’s assets, which may result
in realising prices below fair value, especially in periods of below normal investment market activity. The policy of limiting the
extent of duration divergence between the policyholders’ assets and the liabilities helps to reduce the risk of a cash flow
mismatch.
The following table indicates the contractual timing of cash flows arising from insurance contract liabilities as at 31 December
2024:
Expected cash flows (undiscounted)
0-1 yr 1-3 yrs 3-5 yrs >5 yrs Total
Insurance and financial liabilities £’000 £’000 £’000 £’000 £’000
Outstanding claims 845,623 810,094 277,875 176,243 2,109,835
Derivative liabilities 9,769 - - - 9,769
Creditors 278,330 - - - 278,330
Total 1,133,722 810,094 277,875 176,243 2,397,934
at 31 December 2023:
Expected cash flows (undiscounted)
0-1 yr 1-3 yrs 3-5 yrs >5 yrs Total
Insurance and financial liabilities £’000 £’000 £’000 £’000 £’000
Outstanding claims 670,924 561,217 226,779 254,408 1,713,328
Derivative liabilities 12,462 - - - 12,462
Creditors 154,119 - - - 154,119
Total 837,505 561,217 226,779 254,408 1,879,909
Liquidity in the event of a major disaster is tested regularly using internal cash flow forecasts and realistic disaster scenarios. In
addition, the policyholders’ funds investment mandate requires at least 25% of the funds to be held in bonds and/or cash
equivalents, which are highly liquid. If a major insurance event occurs the investment strategy is reviewed to ensure that
sufficient liquidity is also available in the corporate funds.
i) Credit risk
Credit risk is the risk that the Syndicate becomes exposed to loss if a specific counterparty fails to perform its contractual
obligations in a timely manner impacting the Syndicate’s ability to meet its claims as they fall due. Credit risk can also arise from
underlying causes that have an impact upon the creditworthiness of all counterparties of a particular description or
geographical location. The Syndicate is exposed to credit risk in its investment portfolio, its insurance and reinsurance debtors
including reinsurers’ share of claims outstanding, its cash at bank and its overseas deposits.
The Syndicate’s credit risk is mitigated by the collateral received from counterparties, details of which are given in note 12(k).
The Syndicate holds collateral of £505.6 million (2023: £500.7 million) in relation to £99.4 million (2023: £105.9 million) of
reinsurers’ share of outstanding claims.
The following table analyses the credit rating by investment grade of financial investments, debt securities and derivative
financial instruments, reinsurers’ share of claims outstanding, amount due from intermediaries, amounts due from reinsurers in
respect of settled claims, cash and cash equivalents, and other debtors and accrued interest.
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2024 5353
53
Directors and administration CEO Foreword Directors’ report Directors’ responsibilities Independent auditor’s report Financial statements
Notes to the financial statements
for the year ended 31 December 2024
12. Financial assets and liabilities
(continued)
i) Credit risk
(continued)
31 December 2024 AAA AA A BBB Other Not rated Total
£’000 £’000 £’000 £’000 £’000 £’000 £’000
Shares, other variable yield securities
and units in unit trusts - 16,632 - - - 1,333,437 1,350,069
Debt securities and other fixed income
securities 71,481 114,228 53,315 8,742 - - 247,766
Participation in investment pools - - - - - 124,371 124,371
Loans and deposits with credit
institutions - - 119 - - - 119
Derivative assets - - - - - 12,037 12,037
Other investments 22,307 4,135 5,745 4,695 6,887 20,257 64,026
Deposits with ceding undertakings - - - - - 1,680 1,680
93,788 134,995 59,179 13,437 6,887 1,491,782 1,800,068
Reinsurers’ share of claims outstanding - 307,675 222,895 - - 40,318 570,888
Debtors arising out of direct insurance
operations - - - - - 477,071 477,071
Debtors arising out of reinsurance
operations - 68,694 59,617 - - 398,523 526,834
Cash at bank and in hand - - 90,476 - - 1,763 92,239
Other debtors and accrued interest - - - - - 460,054 460,054
Total 93,788 511,364 432,167 13,437 6,887 2,869,511 3,927,154
31 December 2023 AAA AA A BBB Other Not rated Total
£’000 £’000 £’000 £’000 £’000 £’000 £’000
Shares and other variable yield
securities and units in unit trusts - 22,973 - - 859,518 882,491
Debt securities and other fixed income
securities 82,246 71,098 56,062 10,101 - - 219,507
Participation in investment pools - - - - - 79,975 79,975
Loans and deposits with credit
institutions - - 118 - - - 118
Derivative assets - - - - - 8,408 8,408
Other investments 30,446 3,883 5,221 4,216 10,690 24,277 78,733
Deposits with ceding undertakings - - - - - 8,758 8,758
112,692 97,954 61,401 14,317 10,690 980,936 1,277,990
Reinsurers’ share of claims outstanding - 282,106 212,059 - - 150,483 644,648
Debtors arising out of direct insurance
operations - - - - - 470,487 470,487
Debtors arising out of reinsurance
operations - 47,172 79,950 - - 334,784 461,906
Cash at bank and in hand - 42 146,604 - - 3,615 150,261
Other debtors and accrued interest - - - - - 475,842 475,842
Total 112,692 427,274 500,014 14,317 10,690 2,416,147 3,481,134
A significant portion of the Syndicates investments are reported in ‘Not rated’ due to the nature of the assets being held in
UCITS (Undertakings for Collective Investment in Transferable Securities) funds. These investments are highly liquid and can
be sold at short notice. Management do not deem the ‘Not rated’ disclosure of these investments to impact credit risk.
The Syndicate holds substantial collateral, primarily against the ‘Not Rated’ reinsurance debtor balances to recover upon in
the event of a default, some of these balances will have underlying credit ratings.
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20245454
Notes to the financial statements
for the year ended 31 December 2024
12. Financial assets and liabilities
(continued)
i) Credit risk
(continued)
Financial assets that are past due or impaired
The Syndicate has debtors arising from direct insurance and reinsurance operations that are past due but not impaired at the
reporting date. The assets of the Syndicate have been analysed below between those that are neither past due nor impaired
and those that are past due but not impaired.
Neither past due
nor impaired
assets
Past due but not
impaired assets
Gross value of
impaired assets
Impairment
Allowance Total
2024 £’000 £’000 £’000 £’000 £’000
Shares, other variable yield securities and units in
unit trusts
1,350,069 - - - 1,350,069
Debt securities and other fixed income securities
247,766 - - - 247,766
Participation in investment pools
124,371 - - - 124,371
Loans and deposits with credit institutions
119 - - - 119
Derivative assets
12,037 - - - 12,037
Other investments
64,026 - - - 64,026
Deposits with ceding undertakings
1,680 - - - 1,680
Reinsurers’ share of outstanding claims
570,888 - - - 570,888
Debtors arising out of direct insurance operations
406,000 71,071 - - 477,071
Debtors arising out of reinsurance operations
371,467 160,561 - (5,194) 526,834
Other debtors and accrued interest
460,054 - - - 460,054
Cash at bank and in hand
92,239 - - - 92,239
Total
3,700,716 231,632 - (5,194) 3,927,154
Neither past due
nor impaired
assets
Past due but not
impaired assets
Gross value of
impaired assets
Impairment
Allowance Total
2023 £’000 £’000 £’000 £’000 £’000
Shares, other variable yield securities and units in
unit trusts
882,491 - - - 882,491
Debt securities and other fixed income securities
219,507 - - - 219,507
Participation in investment pools
79,975 - - - 79,975
Loans and deposits with credit institutions
118 - - - 118
Derivative assets
8,408 - - - 8,408
Other investments
78,733 - - - 78,733
Deposits with ceding undertakings
8,758 - - - 8,758
Reinsurers’ share of outstanding claims
644,648 - - - 644,648
Debtors arising out of direct insurance operations
439,597 30,890 - - 470,487
Debtors arising out of reinsurance operations
323,201 139,743 - (1,038) 461,906
Other debtors and accrued interest
475,842 - - - 475,842
Cash at bank and in hand
150,261 - - - 150,261
Total
3,311,539 170,633 - (1,038) 3,481,134
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2024 5555
55
Directors and administration CEO Foreword Directors’ report Directors’ responsibilities Independent auditor’s report Financial statements
Notes to the financial statements
for the year ended 31 December 2024
12. Financial assets and liabilities
(continued)
i) Credit risk
(continued)
The table below sets out a reconciliation of changes in impairment allowance during the period for each class of financial
asset at the balance sheet date:
2024
1 Jan
£’000
New
impairment
charges
added in
year
£’000
Changes in
impairment
charges
£’000
Released to
profit and
loss account
£’000
Foreign
exchange
£’000
Others
£’000
31 Dec
£’000
Debtors arising out of reinsurance
operations
1,038 2,150 1,800 - 206 - 5,194
Total
1,038 2,150 1,800 - 206 - 5,194
2023
1 Jan
£’000
New
impairment
charges
added in
year
£’000
Changes in
impairment
charges
£’000
Released to
profit and
loss account
£’000
Foreign
exchange
£’000
Others
£’000
31 Dec
£’000
Debtors arising out of reinsurance
operations
6,495 - 276 - (223) (5,510) 1,038
Total
6,495 - 276 - (223) (5,510) 1,038
The table below sets out the age analysis of financial assets that are past due but not impaired at the balance sheet date:
31 December 2024
0-3 months
past due
£’000
3-6 months
past due
£’000
6-12 months
past due
£’000
Greater than 1
year past due
£’000
Total
£’000
Debtors arising out of direct insurance operations
71,071 - - - 71,071
Debtors arising out of reinsurance operations
145,084 6,198 7,105 2,174 160,561
Total
216,155 6,198 7,105 2,174 231,632
31 December 2023
0-3 months
past due
£’000
3-6 months
past due
£’000
6-12 months
past due
£’000
Greater than 1
year past due
£’000
Total
£’000
Debtors arising out of direct insurance operations
30,859 20 - 11 30,890
Debtors arising out of reinsurance operations
111,262 10,536 14,738 3,207 139,743
Total
142,121 10,556 14,738 3,218 170,633
Insurance and reinsurance
The table above includes premium receivables, representing amounts due from intermediaries. The quality of these
receivables is not graded but based on historical experience there is limited default risk relating to these amounts. Credit risk
in respect of premium debt is overseen by the Syndicate’s Broker Committee and managed through a number of controls
that include broker approval, annual financial review and internal rating of brokers and regular monitoring of premium
settlement performance.
Also included are reinsurance receivables, which represent the amounts due at 31 December 2024, as well as amounts,
expected to be recovered on unpaid outstanding claims (including IBNR) in respect of earned risks. These are stated net of
provisions for impairment. The credit risk in respect of reinsurance receivables, including reinsurers’ share of outstanding
claims, is primarily managed by review and approval of reinsurance security by the Reinsurance Security Committee prior to
the purchase of the reinsurance contract. Due diligence processes are completed and guidelines are applied to restrict
purchase of reinsurance from high-risk counterparties - based on the Security Committee’s view for each reinsurer and
public ratings (from Standard & Poor’s and A.M. Best). Individual reinsurer and broker account experience is considered as
part of this process. Agreements for ceded reinsurances contain also non-avoidance, special termination or similar
downgrade clauses to secure the Syndicate’s rights in the event of disputes and solvency events.
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20245656
Notes to the financial statements
for the year ended 31 December 2024
12. Financial assets and liabilities (continued)
i) Credit risk
(continued)
Insurance and reinsurance
(continued)
The Syndicate holds collateral from certain reinsurers including those that are non-rated as security against potential default.
The details of reinsurance collateral held and placed with third party trust funds are provided in note 11(l). Provisions are made
against the amounts due from certain reinsurers, depending on the age of the debt and the current rating assigned to the
reinsurer. The impact on profit for the financial year of a 1% variation in the reinsurance assets would be £5.7 million (2023:
£6.4 million). The details of overdue reinsurance assets and insurance receivables are provided in note 13(e).
Investments
As well as actual failure of a counterparty to perform its contractual obligations, the price of corporate bond holdings will be
affected by investors’ perception of a borrower’s credit worthiness. Credit risk within the investment funds is managed through
the credit research carried out by the investment managers. The investment guidelines are designed to mitigate credit risk by
ensuring diversification of the holdings. For each portfolio there are limits to the exposure to single issuers and to the total
amount that can be held in each credit quality rating category, as determined by reference to credit rating agencies. At 31
December 2024, directly held bonds accounted for 13.6% of the portfolio (2023: 16.4%), the residual of the portfolio was held
mostly in collective investment schemes. The credit ratings on debt securities are composite ratings based on Standard &
Poor’s, Moody’s and Fitch.
The Syndicate’s derivative transactions with respect to over-the-counter options and currency forwards are subject to
International Swaps and Derivatives Association master netting agreements. Transactions under such agreements meet the
criteria for offsetting in the Syndicate’s statement of financial position. The Syndicate also receives and pledges collateral in the
form of cash in respect of the derivative transactions. The fair value of the Syndicate’s options and currency forwards are not
offset by such collateral as they create a right of set-off that is enforceable only following an event of default, insolvency or
bankruptcy of the Syndicate or the counterparties.
The Syndicate listed futures are transacted under Global Principal Clearing agreements and are not subject to offsetting in the
statement of financial position.
k) Restricted funds held by the Syndicate
At 31 December 2024, the Syndicate holds restricted funds in the form of trust fund investments, letter of credit (‘LOC’)
collateral, initial margin calls on derivative financial instruments and collateral received from reinsurance counterparties.
Trust funds
The Syndicate holds gross assets of £3,927.2 million (2023: £3,481.1 million), offset by gross liabilities of £3,317.0 million (2023:
£2,868.1 million), which are held within individual trust funds. The assets cannot be obtained or used until such time as each
Syndicate underwriting year is closed and profits are distributed, or an advance profit release is made. The Funds in Syndicate,
as set out on page 28 in the Statement of changes in members’ balance are funds deposited by the Corporate Member and
represent restricted capital for regulatory purposes.
Lloyd’s Asia Trust Funds
Included within the assets mentioned above, are assets related to underwriting activities regulated by the Monetary Authority
of Singapore. These assets are recognised as financial investments £87.5 million (2023: £11.9 million) and cash at bank £89.2
million (2023: £128.3 million).
Derivative margins and collateral
Derivative instruments traded give rise to collateral being placed with, or received from, external counterparties. At 31
December 2024, included in other receivables and other payables are £9.1 million (2023: £10.6 million) margins and collateral
pledged.
Reinsurance collateral received
The Syndicate holds collateral of £505.6 million (2023: £500.7 million) in relation to £99.4 million (2023: £105.9 million) of
reinsurers’ share of outstanding claims.
Insurance collateral placed
The Syndicate holds £341.9 million (2023: £730.3 million) of collateral in US trust funds to meet US regulatory requirements, of
which £159.5 million (2023: £415.3 million) is recognised as an asset to the Syndicate, with the balance fulfilled by letters of
credit pledged on behalf of the Syndicate – the facility supplying these is described below.
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2024 5757
57
Directors and administration CEO Foreword Directors’ report Directors’ responsibilities Independent auditor’s report Financial statements
Notes to the financial statements
for the year ended 31 December 2024
12. Financial assets and liabilities (continued)
l) Borrowings
Revolving Credit Facility
On 8 September 2022 the Syndicate, through the Managing Agent, entered into an unsecured £160.0 million multi-currency
revolving credit facility with a syndicate of banks led by National Westminster Bank plc. An accordion clause was included,
where the facility could be increased to £250.0 million, if required. The interest rate basis is determined by the appropriate
rate for each drawdown currency and loan type. This facility has an initial two-year term, with two one-year extension
options at the end of this term.
As at 31 December 2024, no amounts have been drawn on this facility (2023: £nil). During the year, the first one-year
extension option was exercised by agreement between the Managing Agent and the banks. No other changes were made
to the facility during the year.
Letter of Credit Facility
The Syndicate, through the managing agent, has access to two Letter of Credit (‘LOC’) facilities detailed below.
1. Australia New Zealand Banking Group Limited – AU$150.0 million
On 14 April 2022, the Syndicate, through the Managing Agent, entered into a facility to provide letters of credit that can
be issued as collateral for the benefit of the Lloyd’s Australia Trust Fund (‘LATF’). This is a two-year facility, with two
one-year extension options at the end of the original term. An accordion clause is included, where the facility could be
increased to AU$200.0 million, if required.
As at 31 December 2024, AU$98.0 million (£48.6 million) (2023: AU$82.4 million, £44.1 million) of LOCs have been
lodged with the trustees of the LATF. During the year, the first one-year extension option was exercised by agreement
between the Managing Agent and the bank. No other changes were made to the facility during the year.
2. ING Bank N.V. – $320.0 million
On 10 July 2023, the Syndicate, through the Managing Agent, entered into a $500.0 million facility to provide letters of
credit that can be issued as collateral for the benefit of the US Credit for Reinsurance Trust Fund (‘CRTF’) and to the US
Excess or Surplus Lines Trust Fund (‘SLTF’). The CRTF and SLTF are collectively referred to as the Situs funds. This was a
two-year facility, with two one-year extension options at the end of the original term. An accordion clause was included,
where the facility could be increased by $200.0 million, if required.
On 7 August 2023, the new facility became effective, as LOCs were lodged with the trustees of the Situs funds. On 15
May 2024, the Managing Agent part-cancelled the commitments, reducing them from $500.0 million to $320.0 million.
As at 31 December 2024, $249.0 million (£198.3 million) (2023: $420.0 million, £329.9 million) of LOCs have been lodged
with the trustees of the Situs funds. Aside from the part-cancellation above, no other changes were made to the facility
during the year.
13. Insurance liabilities and assets
a) Net outstanding claims
2024 2023
Gross
provisions
Reinsurance
assets Net
Gross
provisions
Reinsurance
assets Net
£’000 £’000 £’000 £’000 £’000 £’000
Balance at 1 January 1,713,327 (644,648) 1,068,679 3,045,176 (989,278) 2,055,898
Claims paid during the year (669,770) 292,389 (377,381) (763,979) 184,577 (579,402)
Expected cost of current year claims 1,079,052 (214,125) 864,927 762,147 (55,868) 706,279
Changes in estimates of prior year provisions (13,943) 936 (13,007) (1,271,218) 190,359 (1,080,859)
Foreign exchange movements 1,169 (5,440) (4,271) (58,799) 25,562 (33,237)
Balance as at 31 December 2,109,835 (570,888) 1,538,947 1,713,327 (644,648) 1,068,679
Further information on the calculation of outstanding claims and the risks associated with them is provided in note 13(i).
The movements arising from prior year claims line in the comparative above includes movements relating to RiverStone
contracts entered into during the prior year.
The managing agent assesses the Syndicate’s reinsurers’ share of outstanding claims for impairment on a quarterly basis by
reviewing counterparty payment history and credit grades provided by rating agencies. The credit ratings of the Syndicate’s
reinsurers’ share of outstanding claims are shown in note 12(i).
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20245858
Notes to the financial statements
for the year ended 31 December 2024
13. Insurance liabilities and reinsurance assets (continued)
a) Net outstanding claims (continued)
At 31 December 2024 and 2023 the reinsurers’ share of outstanding claims was not overdue. The Syndicate holds collateral of
£505.6 million (2023: £500.7 million) in relation to £99.4 million (2023: £105.9 million) of reinsurers’ share of outstanding claims.
b) Claims development
The tables below illustrate the development of the estimates of cumulative claims for the Syndicate on an underwriting year
basis, illustrating how amounts booked have developed from one reporting period to the next. Due to RITC where the 2018 prior
claims were ceded out to RiverStone, the claims table below only showing claims after underwriting year 2018. All tables are
prepared on an undiscounted basis. To aid comparability, currency amounts have been converted using 2024 year end
exchange rates.
2019 2020 2021 2022 2023 2024 Total
Estimate of cumulative gross claims £’000 £’000 £’000 £’000 £’000 £’000 £’000
At end of first year 550,345 537,651 492,939 536,030 364,573 519,731 -
One year later 1,232,498 857,601 950,272 866,849 666,489 - -
Two years later 1,368,848 919,170 991,208 956,384 - - -
Three years later 1,281,498 897,126 1,115,775 - - - -
Four years later 1,286,444 946,800 - - - - -
Five years later 1,270,379 - - - - - -
Estimate of cumulative gross claims
reserve 1,270,379 946,800 1,115,775 956,384 666,489 519,731 5,475,558
Less gross claims paid (1,082,842) (702,321) (712,444) (576,667) (238,629) (52,820) (3,365,723)
Gross claims reserve 187,537 244,479 403,331 379,717 427,860 466,911 2,109,835
2019 2020 2021 2022 2023 2024 Total
Estimate of cumulative net claims £’000 £’000 £’000 £’000 £’000 £’000 £’000
At end of first year 394,915 346,533 282,023 355,172 334,989 477,390 -
One year later 884,288 598,091 544,508 664,422 635,393 - -
Two years later 959,634 653,890 595,106 759,488 - - -
Three years later 925,476 576,521 580,539 - - - -
Four years later 868,769 596,561 - - - - -
Five years later 842,822 - - - - - -
Estimate of cumulative gross claims
reserve 842,822 596,561 580,539 759,488 635,393 477,390 3,892,193
Less gross claims paid (766,310) (452,228) (413,664) (442,841) (227,875) (50,328) (2,353,246)
Gross claims reserve 76,512 144,333 166,875 316,647 407,518 427,062 1,538,947
2024
2023
Total for all underwriting years £’000 £’000
Net reserves recognised
1,538,947 1,068,679
Amounts recovered from reinsurers
570,888 644,648
Gross reserves included in balance sheet
2,109,835 1,713,327
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2024 5959
59
Directors and administration CEO Foreword Directors’ report Directors’ responsibilities Independent auditor’s report Financial statements
Notes to the financial statements
for the year ended 31 December 2024
13. Insurance liabilities and reinsurance assets (continued)
c) Net unearned premium
2024
Re-presented
2023
Gross
provisions
Reinsurance
assets Net
Gross
provisions
Reinsurance
assets Net
Unearned premium £’000 £’000 £’000 £’000 £’000 £’000
Balance at 1 January 986,573 (22,840) 963,733 915,198 (73,770) 841,428
Premiums written during the year 1,769,448 (284,245) 1,485,203 1,748,662 (1,268,852) 479,810
Premiums earned during the year (1,832,578) 281,721 (1,550,857) (1,647,390) 1,323,293 (324,097)
Foreign exchange movements (5,437) 2,411 (3,026) (29,897) (3,511) (33,408)
Balance as at 31 December 918,006 (22,953) 895,053 986,573 (22,840) 963,733
d) Deferred acquisition costs
The reconciliation of opening and closing deferred acquisition costs is as follows:
2024
Re-presented
2023
Gross
provisions
Reinsurance
assets Net
Gross
provisions
Reinsurance
assets Net
Unearned premium Note £’000 £’000 £’000 £’000 £’000 £’000
Balance at 1 January 218,014 (719) 217,295 206,227 (8,224) 198,003
Incurred deferred acquisition costs 7 156,442 (1,213) 155,229 193,393 (174) 193,219
Amortised deferred acquisition costs 7 (183,750) 750 (183,000) (172,236) 7,326 (164,910)
Foreign exchange movements (790) 20 (770) (9,370) 353 (9,017)
Balance as at 31 December 189,916 (1,162) 188,754 218,014 (719) 217,295
e) Insurance and reinsurance receivables and payable
Insurance and reinsurance receivables
2024
Re-presented
2023
£’000 £’000
Due from intermediaries 1,009,098 933,431
Less provision for impairment of receivables (5,193) (1,038)
Insurance and reinsurance receivables 1,003,905 932,393
Receivables arising from reinsurance contracts are comprised principally of amounts recoverable from reinsurers in respect
of paid claims and premium receivables on inward reinsurance business, including reinstatement premium.
The managing agent assesses the Syndicate’s insurance and reinsurance receivables for impairment on a quarterly basis by
reviewing counterparty payment history and for circumstances which may give rise to a dispute or default. At 31 December
2024, insurance and reinsurance receivables at a nominal value of £15.5 million (2023: £28.5 million) were greater than
three months overdue and provided for on the basis of credit rating to the value of £5.2 million (2023: £1.0 million).
The carrying amounts disclosed above are reasonably approximate to the fair value at the reporting date.
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20246060
Notes to the financial statements
for the year ended 31 December 2024
13. Insurance liabilities and reinsurance assets (continued)
e) Insurance and reinsurance receivables and payable (continued)
Insurance and reinsurance receivables (continued)
2024 2023
Debtors arising out of direct insurance operations £’000 £’000
Due within one year 477,071 470,487
Total 477,071 470,487
2024 2023
Debtors arising out of reinsurance operations £’000 £’000
Due within one year 526,834 461,906
Total 526,834 461,906
2024 2023
Creditors arising out of direct insurance operations £’000 £’000
Due within one year 158,342 33,604
Total 158,342 33,604
2024 2023
Creditors arising out of reinsurance operations £’000 £’000
Due within one year 56,132 94,253
Total 56,132 94,253
Insurance and reinsurance payables are all current, both in the current and prior years, However, the nature of claims
negotiations and broker relationships may mean some of these payables result in non-current settlement. The carrying amounts
disclosed above are reasonably approximate to the fair value at the reporting date. Insurance payables are comprised
principally of premium payable for reinsurance, including reinstatement premium.
f) Insurance risk
The Syndicate accepts underwriting risk in a range of classes of business, including both short-and long-tail exposures, through
two underwriting divisions (Insurance and Reinsurance). By underwriting insurance or reinsurance policies the underwriters use
their skill and knowledge to assess each risk. Exposure information and data on past claims experience is used to evaluate the
likely claims cost and therefore the premiums that should be sufficient (across a portfolio of risks) to cover claims costs, expenses
and produce an acceptable profit. However, due to the nature of insurance risk there is no guarantee that the premiums charged
will be sufficient to cover claims costs. This shortfall may originate either from insufficient premiums being calculated and
charged or result from an unexpected, or unprecedented, high level of claims.
A number of controls are deployed to target the amount of insurance exposure underwritten to be in line with the Board’s
appetite. Each year a business plan is prepared and agreed which is used to monitor the amount of premium income, and
exposure, to be written in total and for each class of business. Progress against this plan is monitored during the year. These
premiums and exposures can be exceeded in exceptional circumstances but only with the approval of senior management. All
policies have a per loss limit which caps the size of any individual claims. Lines guides are used to define the maximum liability
per policy that can be written for each class (on a gross or net of facultative reinsurance basis) by each underwriter. The
Syndicate is also exposed to catastrophe losses which may impact many risks in a single event. Reinsurance is purchased to
limit the impact of loss aggregation from such events. These reinsurance arrangements are described below.
Insurance liabilities are written through individual risk acceptances, reinsurance treaties or through facilities whereby the
Syndicate is bound by other underwriting entities. Facility arrangements delegate underwriting authority to other underwriters,
or to agents acting as coverholders, that use their judgement to write risks on the Syndicate’s behalf under clear authority levels.
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2024 6161
61
Directors and administration CEO Foreword Directors’ report Directors’ responsibilities Independent auditor’s report Financial statements
Notes to the financial statements
for the year ended 31 December 2024
13. Insurance liabilities and reinsurance assets (continued)
f) Insurance risk (continued)
The insurance liabilities underwritten by the Syndicate are reviewed on an individual risk, or contract, basis and through
review of portfolio performance. All claims arising are reserved upon notification. Reserves are set for the portfolio by the
Actuarial Function based on a cycle of quarterly reviews and input from other functions including underwriting, exposure
management and claims.
Levels of paid and outstanding (advised but not paid) claims are reviewed and potential future claims are assessed with
a provision for incurred but not reported (IBNR) claims being made. Whilst a detailed and disciplined exercise is carried
out to provide for claims notified, it is possible that known claims could develop and exceed the reserves carried.
Furthermore, there is increased uncertainty in establishing an accurate provision for IBNR claims and there is a possibility
that claims may arise which, in aggregate, exceed the reserve provision established. This is partly mitigated by the
margin policy adopted by the Syndicate which is to carry reserves in excess of the mean actuarial best estimate. More
details on reserving in section i) below.
The review of claims arising may result in underwriters adjusting pricing levels to cater for an unexpectedly higher trend
of claims notifications or payments. However, this may not be possible in a competitive market and underwriters may
respond either by accepting business with lower expected profit margins or declining to renew policies and thus reducing
income. Also, there is a portfolio of risk already underwritten which cannot be re-priced until renewal at the end of the
policy period.
The Syndicate is exposed to the impact of large catastrophe events such as windstorms, earthquakes or terrorist
incidents. Exposure to such events is controlled and measured through loss modelling. It is possible that a catastrophe
event could exceed the maximum expected event loss. This is particularly the case for the direct property proportion of the
loss exposure, where models are used to calculate a damage factor representing the amount of damage expected to
exposed aggregate insured values from a particular scenario. Errors, or incorrect assumptions in the damage factor
calculation, can result in incurred catastrophe event claims higher, or lower, than predicted due to unforeseen
circumstances, inadequacies in data, or shortcomings in the models used.
Sensitivity to insurance risk
The liabilities established could be significantly lower or higher than the ultimate cost of settling the claims arising. This
level of uncertainty varies between the classes of business and the nature of the risk being underwritten and can arise
from developments in case reserving for large losses and catastrophes, or from changes in estimates of claims IBNR.
In addition to catastrophe risk the Syndicate is exposed to systemic risks. This includes, but is not limited to, the potential
for excess inflation to impact a range of risks or legislative changes to result in claims from a previously unforeseen
source.
The following table presents the profit and loss impact of the sensitivity of the value of unpaid claims reserves disclosed
in the accounts to potential movements in the assumptions applied within the technical provisions. Given the nature of the
business underwritten by the Syndicate, the approach to calculating the technical provisions for each class can vary and
as a result the sensitivity performed is to apply a beneficial and adverse risk margin to the total insurance liability. The
amount disclosed in the table represents the profit or loss impact of an increase or decrease in the insurance liability as a
result of applying the sensitivity. The amount disclosed for the impact on claims outstanding – net of reinsurance
represents the impact on both the profit and loss for the year and member balance.
General insurance business sensitivities as at 31 December 2024
Sensitivity
+5.0% -5.0%
£’000 £’000
Claims outstanding – gross of reinsurance (105,492) 105,492
Claims outstanding – net of reinsurance (76,947) 76,947
General insurance business sensitivities as at 31 December 2023
Sensitivity
+5.0% -5.0%
£’000 £’000
Claims outstanding – gross of reinsurance (85,666) 85,666
Claims outstanding – net of reinsurance (53,434) 53,434
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20246262
Notes to the financial statements
for the year ended 31 December 2024
13. Insurance liabilities and reinsurance assets (continued)
g) Reinsurance and other risk mitigation arrangements
The Syndicate purchases a number of excess of loss reinsurances to protect itself from severe frequency or size of losses.
The structure of the programme and type of protection bought will vary from year to year depending on the availability and
price of cover.
The Syndicate previously purchased proportional reinsurance with MS Amlin AG to supplement line size and to reduce
exposure on individual risks. A part of the premiums ceded under such facilities were placed with MS Amlin AG under whole
account quota share renew agreements, covering the net book of the Syndicate (excluding the P&C UK Business). The
remaining open years for the whole account quota share arrangement are 2022 (7.5% share), 2021 and 2020 (both 17.5%
share). These arrangements normally intend to commute after three years in line with the Lloyd’s year of account reporting
cycle.
In 2023, the Syndicate has entered into a Quota Share over the discontinued classes for the 2019 and post years of account
that passes the risk associated with those classes to RiverStone Syndicate 3500. See note 5.
h) Realistic Disaster Scenario (RDS) analysis
The Syndicate has a defined event risk tolerance, which determines the maximum net loss that the Syndicate intends to limit
its exposure to major catastrophe event scenarios. At 31 December 2024 the maximum net loss was £185.7 million (2023:
£203.9 million). The aforementioned numbers are based on the reporting period’s closing FX rates.
These maximum losses are expected only to be incurred in extreme events – with an estimated occurrence probability for the
elemental losses of approximately 1 in 50 years for each relevant natural peril region. The Syndicate also adopts risk
tolerance maximum net limits for a number of other non-elemental scenarios including aviation collision, North Sea rig loss,
terrorism, cyber and casualty events.
The risk tolerance policy recognises that there may be circumstances in which the net event limit could be exceeded. Such
circumstances include changes in rates of exchange, reduced order amount or delay in renewal of reinsurance protection,
reinsurance security failure, or regulatory and legal requirements.
Detailed deterministic and probabilistic analyses of catastrophe exposures are carried out every quarter and measured
against the event risk tolerances, the business plan, and regulatory guidelines e.g. Lloyd’s Franchise Guidelines. The
following assumptions and procedures are used in the process:
• The data used reflects the information supplied to the Syndicate by insureds and ceding companies. The data is checked
for any limitations e.g. data completeness, data quality, and exposures that could develop during the period e.g. binders.
Adjustments are made in accordance with the underwriters that are subsequently reviewed and ratified by the Deputy
Chief Underwriting Officer and the Chief Underwriting Officer.
• Exposures are modelled using a mixture of stochastic models and underwriter input to arrive at damage factors – these
factors are then applied to the assumed aggregate exposure to produce gross loss estimates. The damage factors are
reviewed on a continual basis to ensure assumptions remain appropriate.
• Once Gross numbers are established, the in force reinsurance programme is then applied.
• Reinstatement premiums both payable and receivable are included in our loss estimates.
Due to the severe nature of these events, there is no guarantee that the assumptions and techniques deployed in calculating
the impact of these events are 100% accurate. We review our assumptions when new information comes to light, e.g. post
event analysis, scientific or academic research.
Notwithstanding, there could be a situation where the Syndicate experiences a loss from a severe event that exceeds the
loss estimate or tolerance. The likelihood of a very severe catastrophe is considered to be remote e.g. beyond the 1 in 100
probability, however these scenarios are modelled simulated events that have considerable uncertainty associated with
them but are captured within the probabilistic modelling numbers.
i) Claims reserving and IBNR
The Syndicate adopts a rigorous process in the calculation of an adequate provision for unpaid claims reserves. The
overriding aim is to establish reserves at a best estimate and that there is consistency from year to year. The overall reserves
are set at a level above the mean actuarial ‘best estimate’ position in accordance with the margin policy. However, there is a
risk that, due to unforeseen circumstances, the reserves carried are not sufficient to meet insurance claim liabilities reported
in future years on policy periods which have expired.
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2024 6363
63
Directors and administration CEO Foreword Directors’ report Directors’ responsibilities Independent auditor’s report Financial statements
Notes to the financial statements
for the year ended 31 December 2024
13. Insurance liabilities and reinsurance assets (continued)
i) Claims reserving and IBNR (continued)
Process and methodology
The reserving process commences with the proper recording and reporting of claims information which consists of paid and
notified or outstanding claims. For the Lloyd’s market most claims notifications are received through the Lloyd’s market
bureau (operated by DxC Technology Company on behalf of Lloyd’s), with others received directly. Claims records are
maintained for each policy and class. For notified or outstanding claims, a case reserve is established based on the views of
underwriting management and claims managers, using external legal or expert advice where appropriate. This reserve is
expected to be sufficient to meet the claim payment when it is finally determined. For some classes of business, particularly
liability business, settlement may be several years after the initial notification of the claim, as it may be subject to complexities
or court action. For claims received from the Lloyd’s market bureau, the market reserve is generally set by the lead
underwriter, but there are circumstances with larger claims where the Syndicate will post higher reserves than those notified.
To assist with the process of determining the reserves, triangulation statistics for each class are produced which show the
historical development of premium, as well as paid and incurred losses, for each underwriting year. In all cases, the different
potential development of each class of business is fully recognised. The development period varies by class, by method of
acceptance and is also determined by the deductible of each policy written. For casualty business, the policy form will
determine whether claims can be made on a claims made (as advised) or on a loss occurring (determined by date of loss)
basis. This has a significant impact on the reporting period in which claims can be notified.
The directors of the managing agent obtains a Statement of Actuarial Opinion from an external provider which also assists in
the challenge of best estimate reserves.
IBNR
To establish a provision for IBNR claims, the actuarial team uses their experience and knowledge of the classes of business
to estimate the potential future development of the incurred claims for each class for each underwriting year. This is known
as the ‘best estimate’. In setting the IBNR provision, estimates are made for the ultimate premium and ultimate gross claims
value for each underwriting year. Allowance is then made for anticipated reinsurance recoveries to reach a net claim position.
Reinsurance recoveries are calculated for outstanding and IBNR claims, sometimes through the use of historical recovery
rates or statistical projections, and provisions are made as appropriate for bad debt or possible disputes.
The component of ultimate IBNR provision estimates and reinsurance recoveries that relates to future events occurring to the
existing portfolio is removed in order to reflect generally accepted accounting practice. Meetings are initially held for each
business unit in which underwriters, claims professionals and actuaries discuss the initial proposed estimates and revise
them if it is felt necessary. At the next round of meetings, management discuss reserving issues with the actuaries and
challenge the proposed estimates. At this meeting, management propose the ‘margin’ for risk to be added to the best
estimate. The margin for risk can be used to offset deterioration in best estimate reserves and is established by reference to
diagnostics produced from the internal model and management judgement of future reserving risk. The reserves, including
the proposed margin, are finally challenged at the audit committee meeting which will recommend approval by the Board.
Areas of uncertainty
The reserves established can be more or less than adequate to meet eventual claims arising. The level of uncertainty varies
significantly from class to class but can arise from inadequate case reserves for known large losses and catastrophes or from
inadequate provision for IBNR claims.
Property catastrophe claims, such as earthquake or hurricane losses can take several years to develop as adjusters visit
damaged property and agree claim valuations. Until all the claims are settled it requires an analysis of the area damaged,
contracts exposed and the use of models to simulate the loss against the portfolio of exposure in order to arrive at an
estimate of ultimate loss to the Syndicate. There is uncertainty over the adequacy of information and modelling of major
losses for a period that can range from several months to a number of years after a catastrophe loss. Account should also be
taken of factors which may influence the size of claims such as increased repair cost inflation or a change in law.
The long tail liability classes represent the most difficult classes to project because often claims are notified and settled
several years after the expiry of the policy concerned. This is particularly the case for liability business written on a loss
occurring basis. The use of historical development data is fundamental to reserving these classes. It is used in conjunction
with the advice of lawyers and third party claims adjusters on material single claims. Known changes to wordings or the
claims environment are also considered.
Any trends that are not captured in the historical loss development are considered and adjustments applied if necessary. At
31 December 2024, excess claims inflation not captured in the historical development is considered a reduced risk to the
adequacy of reserves relative to last year, given developments in the economic and legislative environment.
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20246464
Notes to the financial statements
for the year ended 31 December 2024
13. Insurance liabilities and reinsurance assets (continued)
i) Claims reserving and IBNR (continued)
Areas of uncertainty (continued)
The allocation of IBNR to the reinsurance programme is an uncertain exercise as there is limited knowledge of the size or
number of future claims notifications. The assumption over future reinsurance recoveries may be incorrect and unforeseen
disputes could arise which would reduce recoveries made.
The estimated premium income is set by underwriters on inception of the contract, but actual premium may exceed of fail to
meet initial estimates. The magnitude of claims arising may therefore differ from estimates as a result of differences between
estimated and actual premium.
Russia – Ukraine War
The Syndicate has potential exposures to the Russia-Ukraine conflict across a number of lines of business. Estimates of the loss
levels have been based on a combination of exposure analysis, scenario consideration and claims notifications. The key areas of
uncertainty impacting the estimate are:
• Ongoing litigation of aviation losses, overlaid with the potential for Russian government decrees
• Political risk and contract frustration risks which are longer term in nature and therefore subject to changes in the status over
a longer time horizon
• Reinsurance coverage which will be dependent upon the nature, timing and potential aggregation of the losses themselves.
14. Capital
Capital framework at Lloyd’s
The Society of Lloyd’s (‘Lloyd’s’) is a regulated undertaking and subject to the supervision of the Prudential Regulatory Authority
(‘PRA’) under the Financial Services and Markets Act 2000.
Within this supervisory framework, Lloyd’s applies capital requirements at member level and centrally to ensure that Lloyd’s
complies with Solvency II, and beyond that to meet its own financial strength, licence and ratings objectives.
Although, as described below, Lloyd’s capital setting processes use a capital requirement set at syndicate level as a starting
point, the requirement to meet Solvency II and Lloyd’s capital requirements apply at overall and member level only respectively,
not at syndicate level. Accordingly, the capital requirement in respect of Syndicate 2001 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 net loss, reflecting uncertainty in the
ultimate run-off of underwriting liabilities (‘to ultimate SCR’). Each 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 no other members’ shares. Accordingly, the capital
requirement that Lloyd’s sets for each member operate on a similar basis. Each member’s SCR shall thus be determined by the
sum of the member’s share of the syndicate to ultimate SCR. 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 a SCR which reflects the capital
requirement to cover a to ultimate 1 in 200 year net loss for that member. Over and above this, Lloyd’s applies capital uplift to
the member’s capital requirement, known as the Economic Capital Assessment (‘ECA’).
The purpose of this uplift, which is a Lloyd’s not a Solvency II requirement, is to meet Lloyd’s financial strength, licence and
ratings objectives. The capital uplift applied was 35% (2023: 35%) of the member’s to ultimate SCR.
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, ‘FAL’), held within and managed within a syndicate (Funds in Syndicate, ‘FIS’) or as the member’s share of the members’
balances on each syndicate on which it participates.
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2024 6565
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Directors and administration CEO Foreword Directors’ report Directors’ responsibilities Independent auditor’s report Financial statements
Notes to the financial statements
for the year ended 31 December 2024
14. Capital (continued)
Accordingly, all of the assets less liabilities of the Syndicate, as represented in the members’ balance reported on the statement
of financial position on page 26, represent resources available to meet the members’ and Lloyd’s capital requirements.
The Syndicate has only one member, MS Amlin Corporate Member Limited, and all of its capital for the 2024 and prior years of
account is provided as both FIS and FAL.
15. Distribution
A distribution of £34,088k to members will be made in relation to the closing year of account (2022) (2023: £13,395k in relation
to the closing year of account (2021)). No year of account remains open after the three-year period.
16. Other risk disclosures
a) Operational risk
Operational risk is the risk that external events or the failure of people, systems or processes leads to losses to the Syndicate.
This includes cyber security risk which is an ever-evolving external threat, as the attack tools and methods used by attackers
continue to mature and could threaten the Syndicates ability to protect or maintain the confidentiality, integrity or availability of
data. These risks are managed by their Business Owners through the use of detailed procedure manuals and monitoring of
compliance. Internal controls are recorded on the Risk Register and attested to by the Control Owners and Operators on at least
an annual basis, through a process overseen by the Risk Team. In addition to oversight by Risk and Control Owners, the Risk
Compliance Team and the MSI Group Internal Audit function assist the managing agent to meet the strategic and operational
objectives for the Syndicate through an annual Integrated Assurance Plan which is approved by the Board and on a risk based
approach, for the areas selected for review, independent appraisal of the adequacy and effectiveness of internal controls in
operation and to provide reasonable assurance as to the adequacy of systems and procedures to enable compliance with all
relevant regulatory and legal requirements.
b) Regulatory risk
Regulatory risk is one of the operational risks that the Syndicate manages through its internal control process and is the risk that
the Syndicate fails to meet the regulatory requirements of the Financial Conduct Authority, Prudential Regulation Authority and
Lloyd’s. Lloyd’s requirements include those imposed on the Lloyd’s market by overseas regulators, particularly in respect of US
situs business. In addition to the Internal Control Process the managing agent has a Compliance Officer and Team who provide
the managing agency with advice on Compliance matters, monitor regulatory developments and assesses the impact on
agency policy.
c) Reinsurance to Close (RITC)
The Syndicate entered a “Split” Reinsurance to close (‘RITC’) contract on all classes within its 2018 and prior years of account
reserves. The Syndicate paid a RITC premium to another Lloyd’s syndicate to assume its ongoing liabilities in both contracts. The
nature of this arrangement is that of a reinsurance contract and as such the Syndicate retains liability in the event of any failure
of this Lloyd’s syndicate and the Lloyd’s chain of security. There is no mechanism for the Syndicate to quantify its exposure in
this regard and the directors of the managing agent consider that the possibility of having to assume these liabilities is remote.
d) Strategic Risk
Strategic risk is the exposure to loss or uncertainty that the Syndicate has from the pursuit of its given strategy. The Syndicate
manages this risk through a documented strategy and clear articulation of its risk appetites both of which are approved by the
Board. Performance against plan and risk appetites are regularly monitored and reported on to the Board and its committees.
e) Environmental Social & Governance (ESG) Risk
ESG risk, which includes climate risk, is one of the most rapidly evolving and emerging strategic risks and therefore, the risk that
MS Amlin is unable to meet its own expectations in this area as well as the expectations of external stakeholders is a risk that
we monitor closely. This risk is managed through a documented sustainability strategy which we monitor progress against in
the Sustainability Committee (see the Managing agents report for further details of our approach to ESG and Sustainability,
including climate risk).
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20246666
17. Commitments
In June 2023 the managing agent, with the agreement of the Corporate Member, entered into a subscription agreement with
CSSO III GP S.à r.l. as general agent, for investment in two private equity funds, the Crown Secondaries Special
Opportunities III Master SCSp fund and the Crown Secondaries Special Opportunities III Feeder B SCSp fund.
This subscription entails funds of $55.0 million invested over a period of up to five years. Payments made will be from the
Funds in Syndicate balance and be recognised as financial investments on the Statement of financial position.
At 31 December 2024, $21.6 million (£17.2 million) (2023: $7.8 million, £6.1 million) was invested.
18. Related parties
Ultimate parent company
The smallest group of undertakings of which the managing agent and corporate member are members, and for which group
financial statements are prepared is Mitsui Sumitomo Insurance Company, Limited (‘MSI’), a company incorporated in Japan.
The ultimate parent company and controlling party is MS & AD Insurance Group Holdings, Inc., a company incorporated in
Japan and is the largest group of undertakings in which the managing agent is a member, and for which group financial
statements are prepared.
Consolidated financial statements for the smallest and largest group undertakings are available to the public and may be
obtained from the Company Secretary at The Leadenhall Building, 122 Leadenhall Street, London, EC3V 4AG.
The ultimate parent company address is Tokyo Sumitomo Twin Building (West Tower), 27-2, Shinkawa 2 Chome, Chuo-ku,
Tokyo, Japan. The address of MSI is 9, Kanda-Surugadai 3 Chome, Chiyoda-ku, Tokyo, Japan.
Mitsui Sumitomo Insurance Company, Limited
MSI provides capital in support of the Syndicate through FAL. The amount provided as at 31 December 2024 was £405.4
million (2023: £472.7 million), made up of Japanese government, corporate & municipal bonds.
MS Amlin Corporate Member Limited
MS Amlin Corporate Member Limited (the ‘Corporate Member’) is the sole corporate member to the Syndicate. As per note
13, it provides capital to the Syndicate as FAL and FIS.
The amount provided as FIS as at 31 December 2024 was £284.3 million (2023: £491.2 million), including accrued income.
The net decrease is due to movements occurring through Lloyd’s capital requirement processes. The amount provided as
FAL as at 31 December 2024 was provided through letters of credit to the value of $146.3 million (£116.8 million) (2023:
$260.0 million, £204.0 million), sourced from a syndicated £126.5 million letter of credit facility led by Barclays Bank plc
(2023: £460.0 million).
MS Amlin Underwriting Limited
Managing agent’s fees of £16.0 million (2023: £16.0 million) were charged to the Syndicate during the year, of which £nil
(2023: £nil) was outstanding as at 31 December 2024.
There have been no transactions entered into or carried out during the year by the managing agent on behalf of the
Syndicate in which it or any of its executives had directly or indirectly a material interest.
MS Amlin Corporate Services Limited
MS Amlin Corporate Services Limited (‘MS ACS’) was paid £146.5 million during the year (2023: £122.9 million) for expenses
incurred directly and indirectly on behalf of the Syndicate. This included a management charge of £43.3 million (2023: £34.8
million) for central costs of the MSI Group that are attributable to the Syndicate. These expenses are shown in administrative
expenses net of the allocation to claims handling costs. There is no profit element in the amounts paid to MS ACS. At 31
December 2024 the amount payable to MS ACS is £5.3 million (2023: £17.2 million payable). These amounts do not include
the loan receivable from MS ACS as disclosed in note 12(c).
Notes to the financial statements
for the year ended 31 December 2024
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2024 6767
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Directors and administration CEO Foreword Directors’ report Directors’ responsibilities Independent auditor’s report Financial statements
18. Related parties (continued)
MS Amlin AG (Bermuda branch)
Following the decision in 2023 not to renew the whole account quota share reinsurance contract (‘WAQS’) with MS
Amlin AG (‘Bermuda branch’ or ‘AB’), only the 2022 year of account remained active with a 7.5% cession. All
reinsurance contracts are agreed on an arm’s length basis with terms that are consistent with those negotiated with
third parties. Additionally, the 2020 and 2021 contract’s net assets remained on the balance sheet at the beginning of
the calendar year, but were both commuted and settled by year end. The movement reflected through the statement of
profit or loss in the current year is a reflection of the movement in the 2022 contract and a single correction to the 2021
year. The total earned premiums (less commissions retained) payable to AB in respect of 2024 were £5.6 million (2023:
£6.3 million), of which £1.6 million (2023: £9.2 million) were outstanding as at 31 December 2024. The share of
reinsurance recoveries in respect of claims incurred from AB in respect of 2024 was £2.6million (2023: £36.0 million). At
31 December 2024, the outstanding balance was £27.6 million (2023: £50.2 million). The net £26.0m balance
remaining on the final 2022 year is due to be settled by MS Re upon commutation in 2025.
Leadenhall Capital Partners LLP
The Syndicate wrote £5.8 million (2023: £10.9 million) of gross premium and received £0.3 million (2023: £0.5 million) of
commissions through an arrangement with Leadenhall Capital Partners LLP (including its insurance vehicle Horseshoe
Re) during 2024. As at 31 December 2024, the Syndicate had £20.8 million (2023: £14.5 million) receivable, all of which
is collateralised, and £40.7 million payable to Leadenhall Capital Partners (2023: £20.9 million).
MS Amlin Investment Management Limited
MS Amlin Investment Management Limited manages the majority of investments on behalf of the Syndicate and during
2024 the investment management fee charged by MS AIML was £1.8 million. (2023: £3.3 million).
Service companies and brokers
During the year, the Syndicate had £106.9 million (2023: £79.5 million) gross written premium, £27.8 million (2023:
£26.1 million) claims incurred and £19.0 million (2023: £13.6 million) net balance receivable from service companies.
No fees are paid by these companies to any of the directors of the managing agent.
Toro Prism Trust
During the year, the Syndicate invested in the Toro Prism Trust (the ‘Trust’) which is an open-ended investment unit
trust authorised by the Central Bank of Ireland as a UCITS regulated by the European Union. The Trust is controlled by
the MSI Group. The market value of the investments in the Trust at December 2024 is £1,113.1 million (2023: £623.8
million).
19. Events after the reporting period
There have been no significant events between the reporting date and the date these financial statements were
authorised.
Notes to the financial statements
for the year ended 31 December 2024
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 20236868
MS Amlin Underwriting Limited Syndicate 2001 Annual Report & Financial Statements 31 December 2023
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