Syndicate Accounts

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Lloyd’s Syndicate 6136

Annual Report and Accounts for the year ended31 December 2024

Contents

Directors and Advisors

Chairman’s Statement

Report of the Directors of the Managing Agent

Statement of Manging Agent’s responsibilities

Independent auditor’s report to the members of Syndicate 6136

Statement of profit or loss and other comprehensive income

Balance sheet

Statement of changes in members’ balances

Statement of cash flows

Notes to the financial statements

Directors and advisors

MANAGING AGENT’S REGISTERED OFFICE

Ariel Re Managing Agency Limited 9th FloorThe Monument Building11 Monument StreetLondonEC3R 8AF

MANAGING AGENT’S REGISTERED NUMBER

13511920

DIRECTORS

De Saram, Mark Stuart (Chairman)Gokhool, NiveditaKnowles, Rebecca HelenLednor, Darren MarkMather, Ryan Alexander RobertPoole, Jonathan EdwardSchofield, Belinda AnneTrussell, Mary Helen

SYNDICATE

Ariel Re Syndicate 6136

ACTIVE UNDERWRITER

Pickett, Mark

BANKERS

Barclays Bank PlcCitibank NARBC Dexia

INVESTMENT MANAGERS

Conning Asset Management Ltd24 Monument StreetLondon EC3R 8AJ

AUDITORS

Ernst & Young LLPStatutory Auditor25 Churchill PlaceCanary WharfLondon E14 5EY

Chairman’s statement

I present to you my report as Chairman of Ariel Re Managing Agency Limited (‘ARMA’) and its managed Special Purpose Arrangement (“SPA”) 6136 which reinsures Syndicate 1910. ARMA is a subsidiary of Ariel Re Services Holdings (No 1355) Limited and is part of the Ariel Re group of companies (“Ariel Re”), which through ARMA’s direction, provides underwriting and operational services to the Syndicate.

RESULTS SUMMARY

SPA 6136 was put into runoff for the 2024 year of account and hence the result for the year reflects the runoff of the expiring property only liabilities. As of July 2024, this portfolio’s liabilities had expired.

The Syndicate’s UK GAAP result for 2024 was a profit of £8.1m (2023: £25.8m) and total comprehensive income of £8.7m (2023: £25.2m).

The SPA’s premium is now fully earned.

THIRD PARTY CAPITAL

In 2023, new third party capital supported the SPA’s creation as the Ariel Re business sought to expand during the year of account. The capital providers continued to support Ariel Re during 2024, by providing capacity to Syndicate 1910.

STAFF COMMITMENT

The board would like to express our deepest thanks to our employees for their continued hard work and dedication, building the Syndicate portfolios and continuing to improve our operational efficiency at ARMA.

Mark De Saram

Chairman

5 March 2025

Report of the Directors of the Managing Agent

The directors of Ariel Re Managing Agency Limited present their report for the year ended 31 December 2024.

REPORTING BASIS

These Syndicate annual accounts are 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 (“Lloyd’s Regulations 2008”).

RESULTS

The total comprehensive income for calendar year 2024 is £8.7m (2023: £25.2m). Profits will be collected by reference to the result of the individual underwriting year

PRINCIPAL ACTIVITIES AND REVIEW OF THE BUSINESS

The Syndicate was established in 2023 as a ‘sidecar’ Special Purpose Agreement, writing a 13.1% quota share of Syndicate 1910 Property portfolio, for business incepting between 1st April 2023 and 31st December 2023. SPA 6136 will receive a 7% share of investment income from Syndicate 1910 2023 YoA. The Syndicate is charged a share of expenses incurred by Syndicate 1910 as well as its share of all Lloyd’s levies, subscriptions and costs. SPA 6136 was put into run-off for the 2024 YoA. Both Syndicates are managed by Ariel Re Managing Agency Limited.

CALENDAR YEAR RESULTS

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

2024£000

2023£000

Gross written premium

108

55,004

Profit for the financial year

8,121

25,828

Total comprehensive income

8,737

25,238

Combined ratio %

11.6%

34.3%

The combined ratio is made up of the claims and expense ratio.

UNDERWRITING YEARS OF ACCOUNT SUMMARY

The forecast return on capacity for the 2023 year of account at 31 December 2024 is shown below

Year of account summary

2023 F £000

Stamp capacity

67,588

Stamp premium income

49,006

Stamp utilisation

72.5%

Gross written premium

54,345

Profit

35,316

Profit on stamp

52.3%

REINSURANCE PROGRAMME PURCHASE

The Syndicate does not buy reinsurance independently of its host Syndicate 1910, but benefits from the reinsurance protection purchased by Syndicate 1910 in proportion to its 13.1% quota share.

INVESTMENTS

The Syndicate operates on a funds withheld basis and so does not operate its own bank accounts or hold any investments but benefits from the investment return earned by host Syndicate 1910 which cedes a 7% share of net investment income.

FOREIGN EXCHANGE EXPOSURE POLICY

The aim of the host Syndicate’s policy is to minimise foreign exchange volatility in US Dollar terms (the functional currency of the Syndicate). To achieve this, they aim to match assets and liabilities in currency. It is the host Syndicate’s policy to hold its surplus assets (profits) in US Dollars.

PRINCIPAL RISKS AND UNCERTAINTIES

Note 2 in the notes to the financial statements provides an analysis of the key insurance and financial risks to which the Syndicate is exposed.

DONATIONS

Charitable donations during the year amounted to £nil

OUTLOOK AND FUTURE DEVELOPMENTS

Syndicate 6136 began writing business as an SPA in April 2023 to take advantage of the favourable rating environment identified on the S1910 property portfolio. It was decided to integrate the members from S6136 into the main syndicate S1910 from the 2024 YoA, so

S6136 did not participate on the 2024 YoA and was placed into run-off until 31st December 2025 and it is expected that S6136 will RITC into its host S1910. The syndicate does not have any successor year of account.

The capacity for the 2023 year of account is £67.6m

SPA 6136 is not participating on Lloyd’s Europe platform as no direct business is written in Europe.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE

The directors of the Managing Agency believe the Syndicate’s long-term sustainability and profitability for the benefit of its members as a whole will be improved through an active and effective Environmental, Social and Governance (“ESG”) strategy. To help develop this ESG strategy, the Ariel Re Leadership Team have been directed to establish, prioritise and implement Ariel Re’s ESG goals and objectives. The directors intend to monitor, guide and aid the Leadership Team in accomplishing its ESG goals.

DIRECTORS AND OFFICERS SERVING IN THE YEAR

The directors of the Managing Agent, who served during the year ended 31 December 2024 and to the date of this report, were:

Directors and officers

M S De Saram (independent non-executive; Chairman)

N Gokhool

R H Knowles

D M Lednor

R A R Mather

J E Poole

B A Schofield (independent non-executive)

S Sharrock Yates (independent non-executive)

Resigned 30 September 2024

M H Trussell (independent non-executive)

Appointed 1 October 2024

ANNUAL GENERAL MEETING

The directors do not propose to hold an annual general meeting for the Syndicate. If any member agent or direct corporate supporter of the Syndicate wishes to meet with them, the directors are happy to do so.

DISCLOSURE OF INFORMATION TO AUDITORS

So far as each person who was a director of the Managing Agent at the date of approving the report is aware, there is no relevant audit

information, being information needed by the Syndicate auditor in connection with the auditor’s report, of which the auditor is unaware. Having made enquiries of fellow directors of the Agency and the Syndicate’s Auditors, each director has taken all the steps that he or she ought to have taken as a director to become aware of any relevant audit information and to establish that the Syndicate’s auditor is aware of that information.

AUDITORS

The Syndicate’s auditors, Ernst & Young LLP, are deemed to be reappointed under the provisions of The Insurance Accounts Directive (Miscellaneous Insurance Undertakings) Regulations 2008 and Section 487(2) of the companies Act 2006.

Approved by the Board of Ariel re Managing Agency Limited and signed on behalf of the Board.

D M Lednor

Director

5 March 2025

Statement of Managing Agent’s responsibilities

The managing agent is responsible for preparing the annual report and the syndicate annual accounts in accordance with applicable law and regulations.

The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 (“the 2008 Regulations”) requires the managing agent to prepare syndicate annual accounts at 31 December each year, in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), which give a true and fair view of the state of affairs of the syndicate and of its profit or loss for that year.

In preparing these syndicate annual accounts, the managing agent is required to:

•select suitable accounting policies, and 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 syndicate annual accounts; and

•prepare the syndicate annual accounts on the basis that the syndicate will continue to write future business unless it is inappropriate to do so. Accordingly, for the reason stated in Manging agent’s report and note 1, the financial statements have

not been prepared on a going concern basis

The managing agent is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the syndicate and enable it to ensure that the syndicate annual accounts comply with the 2008 Regulations. It is also responsible for safeguarding the assets of the syndicate and hence for taking reasonable steps for prevention and detection of fraud and other irregularities.

The managing agent is responsible for the maintenance and integrity of the corporate and financial information relating to the syndicate included on the managing agent’s website.

The managing agent is responsible for the preparation and review of the iXBRL tagging that has been applied to the Syndicate Accounts in accordance with the instructions issued by 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.

Legislation in the United Kingdom governing the preparation and dissemination of financial information may differ from legislation in other jurisdictions.

Independent auditor’s report to the members of S6136

OPINION

We have audited the syndicate annual accounts of syndicate 6136 (‘the syndicate’) for the year ended 31 December 2024 which comprise the statement of Profit or Loss and Other Comprehensive Income, the Balance Sheet, the Statement of Changes in Members’ Balances, the Statement of Cash Flows and the related notes 1 to15, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law including The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008, United Kingdom Accounting Standards including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” and FRS 103 “Insurance Contracts” (United Kingdom Generally Accepted Accounting Practice), and Section 1 of the Lloyd’s Syndicate Accounts Instructions V2.0 as modified by the Frequently Asked Questions Version 1.1 issued by Lloyd’s (the Syndicate Accounts Instructions).

In our opinion, the syndicate annual accounts:

•give a true and fair view of the syndicate’s affairs as at 31 December 2024 and of its profit for the year then ended;

•have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

•have been prepared in accordance with the requirements of The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 and the Syndicate Accounts Instructions.

BASIS FOR OPINION

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)), The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008, the Syndicate Accounts Instructions, and other applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the syndicate

annual accounts section of our report. We are independent of the syndicate in accordance with the ethical requirements that are relevant to our audit of the syndicate annual accounts in the UK, including the FRC’s Ethical Standard as applied to other entities of public interest, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

EMPHASIS OF MATTER – ANNUAL ACCOUNTS PREPARED ON A BASIS OTHER THAN GOING CONCERN

We draw attention to note 1 which explains that effective from 01 January 2024, the syndicate ceased to write new business and was placed into run off until 31 December 2025 when all of its assets and liabilities will be transferred to Syndicate 1910 through a reinsurance to close arrangement. The syndicate has no successor year of account.

As a result of cessation of principal activity, management do not consider it appropriate to adopt the going concern basis of accounting in preparation of the annual accounts. Accordingly, the annual accounts of the syndicate have been prepared on a basis other than going concern.

Our opinion is not modified in respect of this matter.

OTHER INFORMATION

The other information comprises the information included in the Annual Report and Accounts other than the syndicate annual accounts and our auditor’s report thereon. The directors of the managing agent are responsible for the other information contained within the Annual Report and Accounts.

Our opinion on the syndicate annual accounts does not cover the other information and, except to the extent otherwise explicitly stated in this report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether

the other information is materially inconsistent with the syndicate annual accounts or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the syndicate annual accounts themselves. If, based on the work we have performed, we conclude that there is a material misstatement of the other information, we are required to report that fact.

We have nothing to report in this regard.

OPINIONS ON OTHER MATTERS PRESCRIBED BY THE INSURANCE ACCOUNTS DIRECTIVE (LLOYD’S SYNDICATE AND AGGREGATE ACCOUNTS) REGULATIONS 2008

In our opinion, based on the work undertaken in the course of the audit:

•the information given in the managing agent’s report for the financial year in which the syndicate annual accounts are prepared is consistent with the syndicate annual accounts; and

•the managing agent’s report has been prepared in accordance with applicable legal requirements.

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

In the light of the knowledge and understanding of the syndicate and its environment obtained in the course of the audit, we have not identified material misstatements in the managing agent’s report.

We have nothing to report in respect of the following matters where The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 requires us to report to you, if in our opinion:

•the managing agent in respect of the syndicate has not kept adequate accounting records; or

•the syndicate annual accounts are not in agreement with the accounting records; or

•certain disclosures of the managing agents’ emoluments specified by law are not made; or

•we have not received all the information and explanations we require for our audit.

RESPONSIBILITY OF THE MANAGING AGENT

As explained more fully in the Statement of Managing Agent’s Responsibilities at page 9, the managing agent is responsible for the preparation of the syndicate annual accounts and for being satisfied that they give a true and fair view, and for such internal control as the managing agent determines is necessary to enable the preparation of the syndicate annual accounts that are free from material misstatement, whether due to fraud or error.

In preparing the syndicate annual accounts, the managing agent is responsible for assessing the syndicate’s ability to continue in operation, disclosing, as applicable, matters related to its ability to continue in operation and using the going concern basis of accounting unless the managing agent either intends to cease to operate the syndicate, or has no realistic alternative but to do so.

AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE SYNDICATE ANNUAL ACCOUNTS

Our objectives are to obtain reasonable assurance about whether the syndicate annual accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these syndicate annual accounts.

EXPLANATION AS TO WHAT EXTENT THE AUDIT WAS CONSIDERED CAPABLE OF DETECTING IRREGULARITIES, INCLUDING FRAUD

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the managing agent and management.

Our approach was as follows:

•We obtained a general understanding of the legal and regulatory frameworks that are applicable to the syndicate and determined that the most significant are direct laws and regulations related to elements of Lloyd’s Byelaws and Regulations, and the financial reporting framework (UK GAAP), and requirements referred to by Lloyd’s in the Syndicate Accounts instructions. Our considerations of other laws and regulations that may have a material effect on the syndicate annual accounts included permissions and supervisory requirements of Lloyd’s of London, the Prudential Regulation Authority (‘PRA’) and the Financial Conduct Authority (‘FCA’).

•We obtained a general understanding of how the syndicate is complying with those frameworks by making enquiries of management, internal audit, and those responsible for legal and compliance matters of the syndicate. In assessing the effectiveness of the control environment, we also reviewed significant correspondence between the syndicate, Lloyd’s of London and other UK regulatory bodies; reviewed minutes of the Board and Risk Committee of the managing agent; and gained an understanding of the managing agent’s approach to governance.

•For direct laws and regulations, we considered the extent of compliance with those laws and regulations as part of our procedures on the related syndicate annual accounts’ items.

•For both direct and other laws and regulations, our procedures involved: making enquiries of the directors of the managing agent and senior management for their awareness of any non-compliance of laws or regulations, enquiring about the policies that have been established to prevent non-compliance with laws and regulations by officers and employees, enquiring about the managing agent’s methods of enforcing and monitoring compliance with such policies, and

inspecting significant correspondence with Lloyd’s, the FCA and the PRA.

•The syndicate operates in the insurance industry which is a highly regulated environment. As such the Senior Statutory Auditor considered the experience and expertise of the engagement team to ensure that the team had the appropriate competence and capabilities, which included the use of specialists where appropriate.

•We assessed the susceptibility of the syndicate’s annual accounts to material misstatement, including how fraud might occur by considering the controls that the managing agent has established to address risks identified by the managing agent, or that otherwise seek to prevent, deter or detect fraud. We also considered areas of significant judgementand the impact these have on the control environment. Where this risk was considered to be higher, we performed audit procedures to address each identified fraud risk including:

•Reviewing the accounting estimate, supported by our actuaries, in valuation of gross IBNR claims provisions for evidence of management bias.

•Evaluating the business rationale for significant and / or unusual transactions

•Testing the appropriateness of journal entries recorded throughout the year in the general ledger.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at

https://www.frc.org.uk/auditorsresponsibilities

. This description forms part of our auditor’s report.

OTHER MATTER

Our opinion on the syndicate annual accounts does not cover the iXBRL tagging included within these syndicate annual accounts, and we do not express any form of assurance conclusion thereon.

USE OF OUR REPORT

This report is made solely to the syndicate’s members, as a body, in accordance with The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008. Our audit work has been undertaken so that we might state to the syndicate’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent

permitted by law, we do not accept or assume responsibility to anyone other than the syndicate and the syndicate’s members as a

body, for our audit work, for this report, or for the opinions we have formed.

Angus Millar

(Senior statutory auditor)

for and on behalf of Ernst & Young LLP, Statutory AuditorLondon

05 March 2025

Statement of profit or loss and other comprehensive income:

Technical account – General business

For the year ended 31 December 2024

Note

2024

£000

2023

£000

Gross premiums written

108

55,004

Outwards reinsurance premiums

(9,020)

Premiums written, net of reinsurance

108

45,984

Changes in unearned premium

Change in the gross provision for unearned premiums

6,799

(7,039)

Change in the provision for unearned premiums reinsurers’ share

Net change in provisions for unearned premiums

6,799

(7,039)

Earned premiums, net of reinsurance

6,907

38,945

Allocated investment return transferred from the non-technical account

645

435

Claims paid

Gross amount

(31)

Reinsurers’ share

Net claims paid

(31)

Change in the provision for claims

Gross amount

1,632

(3,011)

Reinsurers’ share

Net change in provisions for claims

1,632

(3,011)

Claims incurred, net of reinsurance

1,662

(3,042)

Net operating expenses

(852)

(10,495)

Balance on the technical account – general business

8,362

25,843

Statement of profit or loss and other comprehensive income: (cont.)

Non-technical account – General business

For the year ended 31 December 2024

The accompanying notes from page 19 to 30 form an integral part of these financial statements.

Note

2024£000

2023£000

Balance on the technical account – general business

8,362

25,843

Investment income

454

169

Realised gains/(losses) on investments

118

Unrealised gains/(losses) on investments

211

Investment expenses and charges

Total investment return

645

435

Allocated investment return transferred to the general business technical account

(645)

(435)

Loss on foreign exchange

(241)

(15)

Profit/(loss) for the financial year

8,121

25,828

Other comprehensive income:

Currency translation gains/(losses)

616

(590)

Total comprehensive income/(loss) for the year

8,737

25,238

Balance sheet

As at 31 December 2024

Note

2024£000

2023£000

Assets

Debtors

Debtors arising out of reinsurance operations

35,259

34,221

Prepayments and accrued income

Deferred acquisition costs

868

Total assets

35,263

35,089

Liabilities

Members’ balances and liabilities

Members’ balances

33,975

25,238

Total capital and reserves

33,975

25,238

Technical provisions

Provision for unearned premiums

6,905

Claims outstanding

1,279

2,946

1,288

9,851

Total liabilities

1,288

9,851

Total liabilities, capital and reserves

35,263

35,089

The accompanying notes from page 19 to 30 form an integral part of these financial statements.

The Syndicate financial statements on pages 14 to 30 were approved by the board of Ariel Re Managing Agency Limited on 5 March 2025 and were signed on its behalf by;

N Gokhool

Director

D M Lednor

Director

Statement of changes in members’ balances

For the year ended 31 December 2024

2024£000

2023£000

Members’ balances brought forward at 1 January

25,238

Total comprehensive income for the year

8,737

25,238

Members’ balances carried forward at 31 December

33,975

25,238

Statement of cash flows

For the year ended 31 December 2024

2024£000

2023£000

Cash flows from operating activities

Profit for the financial year

8,121

25,828

Adjustments:

Increase/(decrease) in gross technical provisions

(8,483)

9,852

(Increase)/decrease in debtors

(152)

(33,786)

Increase/(decrease) in creditors

Movement in other assets/liabilities

294

(591)

Investment return

(645)

(435)

Other

865

(868)

Net cash flows from operating activities

Cash flows from investing activities

Investment income received

Net cash flows from investing activities

Cash flows from financing activities

Capital contributions/open year cash calls made

Net cash flows from financing activities

Net increase/(decrease) in cash and cash equivalents

Cash and cash equivalents at the beginning of the year

Cash and cash equivalents at the end of the year

Notes to the financial statements – (forming part of the financial statements)

Year ended 31 December 2024

1. Accounting policies

STATEMENT OF COMPLIANCE

The financial statements have been prepared in compliance with The Insurance Accounts Directive (Lloyd’s Syndicate and Aggregate Accounts) Regulations 2008 and Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (FRS 102) and Financial Reporting Standard 103 ‘Insurance Contracts’ (FRS 103), being applicable UK GAAP accounting standards, and the Lloyd’s Syndicate Accounts Instructions Version 2.0 as modified by the Frequently Asked Questions Version 1.0 issued by Lloyd’s. and in accordance with the provision of Schedule 3 of the Large and Medium –sized Companies and Groups (Accounts and Reports) Regulations 2008 pursuant to section 369 of the Companies Act 2006.

The financial statements are prepared under the historical cost convention.

BASIS OF PREPARATION

The financial statement of Syndicate 6136 was authorised for issue by the board of directors on 5 March 2025.

The functional currency of the Syndicate is US dollars, and the financial statements are prepared in sterling due to the Lloyd’s regulatory reporting requirements and rounded to the nearest £1,000 unless otherwise stated.

Amounts ceded from Syndicate 1910 to Syndicate 6136 are gross of external reinsurance for the 2023 Year of Account and are recognised as Gross balances in Syndicate 6136. The Syndicate’s share of Syndicate 1910’s external outwards reinsurance is recognised as reinsurance balances in Syndicate 6136. The Syndicate takes a share of investment income and expenses on the 2023 Year of Account from the host Syndicate 1910, and these are recognised in the equivalent account in Syndicate 6136.

Syndicate 6136 operates on a funds withheld basis, so therefore does not hold monetary assets on its balance sheet. This effectively means the Syndicate is cashless, with all funds maintained in a withheld account, distributed upon the closure of the Year of Account.

At 31st December 2023 the financial statements were prepared on a going concern basis as there were more than 12 months left to run before the expected RITC to S1910.

At 31st December 2024, from the date of the authorisation of the accounts, there will be less than 12 months remaining before the RITC. Therefore, it has been concluded that the entity will not be able to continue its operations for the foreseeable future. Hence, the preparation of the accounts, on a basis other than going concern, has been deemed more appropriate given the circumstances.

The financial statements have been prepared on a historical cost basis.

GOING CONCERN

In respect of the 2023 year of account, it is currently the Board’s expectation that Syndicate 6136 will enter into a reinsurance to close arrangement at the 36 month stage with its host syndicate 1910. Syndicate 6136 will cease to operate and will have no subsequent years of account. On this basis the Syndicate is no longer a going concern.

The annual accounts have been prepared on the basis of other than going concern. While these syndicate accounts have not been prepared on a going concern basis, the RITC process is anticipated to occur in the ordinary course of business, and there would be no impact on the valuation of the assets or liabilities of the Syndicate.

RESTATEMENT OF COMPARATIVE BALANCES

To enhance and facilitate the comparability of Syndicate Annual Accounts across the market, Lloyd's has prepared and released Illustrative Syndicate Accounts available on

https://www.lloyds.com/conducting-

business/syndicate-accounts-and-financial-

reporting

. Use of these Illustrative Syndicate Accounts is at the discretion of the Managing Agent. Consequently, the presentation of certain balances within the Statement of Profit or Loss and Other Comprehensive Income and Balance Sheet have been represented to align with the Illustrative Syndicate Accounts. This alignment aims to provide more reliable and relevant information by improving comparability and consistency across the market. It is

important to note that these changes have had no impact on the prior period's profit, total comprehensive income, total assets, total liabilities, or total capital and reserves.

Aggregation changes

To align with Lloyd's reporting requirements whilst maintaining FRS 102 compliance, certain items have been aggregated or disaggregated within the related notes. This includes the presentation of realised and unrealised gains and losses on investments (Note 6) and technical provisions (Note 10) which are now shown on a disaggregated basis in the underlying notes.

JUDGEMENT AND KEY SOURCES OF UNCERTAINTY

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the reporting date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that the actual outcomes could differ from those estimates. The following are the Syndicate’s key sources of estimation uncertainty:

PREMIUMS WRITTEN

Gross written premiums comprise the Syndicate’s share of the total premiums receivable by Syndicate 1910, gross of reinsurance purchased by Syndicate 1910 for the whole period of cover provided by the contracts entered into during the reporting period, regardless of whether these are wholly due for payment in the reporting period, together with any adjustments arising in the reporting period to such premiums receivable in respect of business written in prior reporting periods. Syndicate 1910 recognises premium on the date on which the policy commences. Syndicate 1910 states gross written premium gross of brokerage payable and excludes taxes and duties levied on them.

Syndicate 1910 makes estimates for pipeline premiums, representing amounts due to the Syndicate not yet notified, as well as adjustments made in the year to premiums written in prior accounting periods.

CLAIMS INCURRED AND REINSURER’S SHARE

Claims incurred comprise the Syndicate’s share of claims and settlement expenses (both internal and external) paid by Syndicate 1910 in the year, and the movement in provision for outstanding claims and settlement expenses, including an allowance for the cost of claims incurred by the reporting date, but not reported until after the reporting period end.

The provision for claims in Syndicate 1910 comprises amounts set aside for claims notified and claims incurred, but not yet reported (IBNR).

The amount included in respect of IBNR in Syndicate 1910 is based on statistical techniques of estimation applied by external consulting actuaries. These techniques generally involve projecting from past experience of the development of claims over time to form a view of the likely ultimate claims to be experienced for more recent underwriting, having regard to variations in the business accepted and the underlying terms and conditions. The provision for claims in Syndicate 1910 also includes amounts in respect of internal and external claims handling costs. For the most recent years, where a high degree of volatility arises from projections, estimates may be based in part on output from rating and other models of the business accepted and assessments of underwriting conditions.

The reinsurers’ share of provisions for claims in Syndicate 1910 is based on calculated amounts of outstanding claims and projections for IBNR, net of estimated irrecoverable amounts, having regard to the reinsurance programme in place for the class of business and the claims experience for the year. Syndicate 1910 uses a number of statistical techniques to assist in making these estimates.

Accordingly, the two most critical assumptions as regards claims provisions in Syndicate 1910 are that the past is a reasonable predictor of the likely level of claims development and that the rating and other models used for current business are fair reflections of the likely level of ultimate claims to be incurred.

The directors consider that the Syndicate’s share of the provisions for claims and related reinsurance recoveries in Syndicate 1910 is fairly stated on the basis of the information currently available to them. However, ultimate liability will vary as a result of subsequent information and events, and this may result in significant adjustments to the amounts provided.

Adjustments to the amounts of claims provisions established in prior years are reflected in the financial statements for the period in which the adjustments are made. The methods used, and the estimates made, are reviewed regularly.

SIGNIFICANT ACCOUNTING POLICIES

Unearned Premiums

Written premium is earned in according to the risk profile of the policy. Unearned premiums represent the proportion of premiums written in the year that relate to unexpired terms of policies in force at the date of the balance sheet calculated on the basis of established earnings patterns or time apportionment as appropriate.

Unexpired Risks

A provision for unexpired risks is made where claims and related expenses are likely to arise after the end of the financial period in respect of contracts concluded before that date, are expected to exceed the unearned premiums and premiums receivable under these contracts, after the deduction of any acquisition costs deferred.

The provision for unexpired risks is calculated separately by reference to classes of business which are managed together, after taking into account relevant investment return.

At 31 December 2024 the Syndicate did not have an unexpired risk provision.

Acquisition Costs

Acquisition costs, comprising commission and other costs related to the acquisition of new insurance contracts are recognised by reference to premium written. They are deferred to the extent that they are attributable to and recoverable against premiums unearned at the balance sheet date. All other operating expenses are accounted for on an accruals basis.

Funds Withheld

The Syndicate operates on a “funds with-held basis” and operates no bank accounts of its own and holds no investments. Investment income earned by Syndicate 1910 is ceded to the Syndicate.

Syndicate Operating Expenses

The Syndicate incurs its share of the operating expenses and personal expenses of Syndicate 1910 and also may incur expenses on its own behalf which are then paid by Syndicate 1910 and then recharged to the Syndicate.

Members’ standard personal expenses are included in net operating expenses and include Lloyd’s subscriptions, New Central Fund contributions and Managing Agent’s fees.

Ariel Re Bermuda Limited (“ARBL”), Ariel Re Hong Kong (“ARHK”) and Ariel Re UK Limited (“ARUK”), as Managing General Agencies (MGA), incur significant cost underwriting business on behalf of Syndicate 1910 and are

reimbursed via a coverholder commission of 8.7% for the 2023 YoA on premiums written. This fee is included within net operating expenses under both administrative expenses and acquisition costs.

Foreign Currencies

The Syndicate’s functional currency is US Dollars and its presentational currency is Sterling.

Transactions denominated in currencies other than the functional currency are initially recorded in the functional currency at the exchange rate ruling at the date of the transactions. Monetary assets and liabilities (which include all assets and liabilities arising from insurance contracts including unearned premiums and deferred acquisition costs) denominated in foreign currencies are retranslated into the functional currency at the exchange rate ruling on the reporting date. The exchange difference from translation of functional currency to presentational currency is recognised in Other Comprehensive Income.

Distribution of Profits and Collection of Losses

Lloyd’s has regulations on solvency and the distribution of profits and payment of losses between a Syndicate and its members. Lloyd’s continues to require Syndicate membership to be on an underwriting year basis, and profits and losses belong to members according to their membership. Normally profits and losses are transferred between a Syndicate and its members after results for an underwriting year are finalised after 36 months. This period may be extended if an underwriting year is placed in run-off. The Syndicate may make earlier on account distributions or cash calls according to the cash flow of that underwriting year, subject to Lloyd’s regulations. As the Syndicate has no bank accounts of its own, distributions are made on its behalf by Syndicate 1910 and treated as payments against reinsurance premium receivable balances in the accounts.

Investment Return

The Syndicate receives its share of investment income from Syndicate 1910.

Investment return comprises all investment income, realised investment gains and losses and movements in unrealised gains and losses, net of investment expenses, charges and interest.

Realised gains and losses on investments carried at market value are calculated as the difference between sale proceeds and purchase price. Movements in unrealised gains and losses on investments represent the difference between the valuation at the balance sheet date, together with the reversal of

unrealised gains and losses recognised in earlier accounting periods in respect of investment disposals in the current period.

Allocation of actual investment return on investments supporting the general insurance technical provisions and associated members’ balance is made from the non-technical account to the technical account. Investment return related to non-insurance business and members’ balance is attributed to the non-technical account. Investment return has been wholly allocated to the technical account as all investments relate to technical accounts.

Taxation

Under Schedule 19 of the Finance Act 1993 managing agents are not required to deduct basic rate income tax from trading income.

Managing agents can recover UK basic rate income tax deducted from Syndicate investment income, and consequently any distribution to members or members’ agents is gross of tax. Capital appreciation falls within trading income and is also distributed gross of tax.

No provision has been made for United States federal income tax payable on underwriting results or investment earnings. Any payments on account made by the Syndicate during the year have been included in the balance sheet under the heading ‘Other Debtors’.

No provision has been made for any other foreign taxes payable by members on underwriting results.

2.Risk and capital management

The Syndicate writes a quota share of the host Syndicate 1910. Therefore, the risk policies described below are implemented at the host level.

a)Governance framework

The primary objective of the Syndicate’s risk and financial management framework is to protect the Syndicate’s members from events that hinder the sustainable achievement of financial performance objectives, including failing to exploit opportunities. The Managing Agent recognises the critical importance of having efficient and effective risk management systems in place, as part of a ‘three lines of defence’ governance model.

The Managing Agent has established a risk management function for the Syndicate. Responsibilities are articulated in terms of reference and policies which are cascaded throughout the organizational structure, delegated from the board of directors, its board level committees and the associated executive management forums.

The board of directors of the Managing Agent approves the risk management policies and meets regularly to approve any commercial, regulatory and organisational requirements of such policies. These policies define the identification of risk and its interpretation to ensure the appropriate quality and diversification of assets, align underwriting and reinsurance strategy to the Syndicate goals, and specify reporting requirements. Significant emphasis is placed on assessment and documentation of risks and controls, including the articulation of “risk appetite”. The Board sets risk appetite annually as part of the Syndicate’s business planning and capital setting process. The risk management function is also responsible for reviewing the Syndicate’s Own Risk and Solvency Assessment (‘ORSA’), recommending the assessment to the Board for approval.

b)Capital management objectives, policies and approach

Capital framework at Lloyd’s

The Society of Lloyd’s (Lloyd’s) is a regulated undertaking and subject to the supervision of the Prudential Regulation Authority (PRA) under the Financial Services and Markets Act 2000.

Within the supervisory framework, Lloyd’s applies capital requirements at member level and central to ensure that Lloyd’s complies with Solvency II capital requirements, and beyond that to meet its own financial strength, licence and ratings objectives.

Although Lloyd’s capital setting processes use a capital requirement set at syndicate level as a starting point, the requirement to meet Solvency II and Lloyd’s capital requirements apply at overall and member level only respectively, not at syndicate level. Accordingly, the capital requirement in respect of Syndicate 6136 is not disclosed in these financial statements.

Lloyd’s capital setting process

In order to meet Lloyd’s requirements, each syndicate is required to calculate its Solvency Capital Requirement (SCR) for the prospective underwriting year. This amount must be sufficient to cover a 1 in 200 year loss, reflecting uncertainty in the ultimate run-off of underwriting liabilities (SCR ‘to ultimate’). The syndicate must also calculate its SCR at the same confidence level but reflecting

uncertainty over a one year time horizon (one year SCR) for Lloyd’s to use in meeting Solvency II requirements. The SCRs of each syndicate are subject to review by Lloyd’s and approval by the Lloyd’s Capital and Planning Group.

A syndicate may be comprised of one or more underwriting members of Lloyd’s. Each member is liable for its own share of underwriting liabilities on the syndicate on which it is participating but not other members’ shares. Accordingly, the capital requirement that Lloyd’s sets for each member operates on a similar basis. Each member’s SCR shall thus be determined by the sum of the member’s share of the syndicate SCR ‘to ultimate’. Where a member participates on more than one syndicate, a credit for diversification is provided to reflect the spread of risk, but consistent with determining an SCR which reflects the capital requirement to cover a 1 in 200 year loss ‘to ultimate’ for that member. Over and above this, Lloyd’s applies a capital uplift to the member’s capital requirement, known as the Economic Capital Assessment (ECA). The purpose of this uplift, which is a Lloyd’s not a Solvency II requirement, is to meet Lloyd’s financial strength, licence and ratings objectives. The capital uplift applied for 2023 was 35% of the member’s SCR ‘to ultimate’.

Provision of capital by members

Each member may provide capital to meet its ECA either by assets held in trust by Lloyd’s specifically for that member (funds at Lloyd’s), held within and managed within a syndicate (funds in Syndicate) or as the member’s share of the members’ balances on each syndicate on which it participates. Accordingly, the ending members balances reported on the balance sheet on page 16 represent resources available to meet the member’s and Lloyd’s capital requirements.

c)Insurance risk

The principal risk the Syndicate faces under insurance contracts is that the actual claims and benefit payments or the timing thereof, differ from expectations. This is influenced by the frequency of claims, severity of claims, actual benefits paid and subsequent development of long-term claims. Therefore, the objective of the Syndicate is to ensure that sufficient reserves are available to cover these liabilities.

The variability of risks is also improved by careful selection and implementation of underwriting strategy guidelines, as well as the use of reinsurance arrangements.

The Syndicate writes short-tail property-catastrophe business in the US and internationally. Reserving risk is managed through the Syndicate’s Claims and Reserving Management Forum.

The Syndicate uses both its own and commercially available risk management software to assess catastrophe exposure. However, there is always a risk that the assumptions and techniques used in these models are unreliable or that claims arising from an unmodelled event are greater than those arising from a modelled event.

As a further guide to the level of catastrophe exposure written by the Syndicate, the following table shows hypothetical claims arising out of the Realistic Disaster Scenario (RDS) on the Syndicate’s in-force exposure at 1 July 2024 (Syndicate 6136 share).

Estimated Gross loss £000

Estimated Net loss £000

Two events – North East U.S Windstorm

2,339

913

Florida Windstorm – Miami Dade

–

Florida Windstorm – Pinellas

–

Gulf of Mexico Windstorm – Major Hurricane landing in Galveston, Texas

–

California Earthquake – San Francisco

7,956

326

California Earthquake – Los Angeles

8,835

338

Japanese Earthquake – based on 1923 Great Kanto Earthquake

–

The table below sets out the concentration of outstanding claim liabilities by type of contract (Syndicate 6136 share).

Gross Liabilities £000

2024Re-Insurance Liabilities £000

Net Liabilities £000

Gross Liabilities £000

2023 Re-Insurance Liabilities £000

Net Liabilities £000

RI acceptances

1,279

–

1,279

2,946

–

2,946

All business is written in the UK.

The principal assumption underlying the liability estimates is that the future claims development will follow a similar pattern to past claims development experience. This includes assumptions in respect of average claim costs, claim handling costs, claim inflation factors and claim numbers for each underwriting year. Additional qualitative judgements are used to assess the extent to which past trends may not apply in the future, for example: once-off occurrence; changes in market factors such as public attitude to claiming; economic conditions as well as internal factors such as portfolio mix, policy conditions and claims handling procedures. Judgement is further used to assess the extent to which external factors such as judicial decisions and government legislation affect the estimates.

Other key circumstances affecting the reliability of assumptions include variation in interest rates, delays in settlement and changes in foreign currency rates.

Sensitivities

The claim liabilities are sensitive to the key assumptions that follow. It has not been possible to quantify the sensitivity of certain assumptions such as legislative changes or uncertainty in the estimation process.

The following analysis is performed for reasonably possible movements in key assumptions with all other assumptions held constant, showing the impact on gross and net liabilities, profit and members’ balances. The correlation of assumption will have a significant effect in determining the ultimate claims liabilities, but to demonstrate the impact due to changes in assumptions, assumptions had to be changed on an individual basis. It should be noted that movements in these assumptions are non-linear.

General insurance business sensitivities as at 31 December 2024

Sensitivity

+5.0%£000

-5.0%£000

Claims outstanding – gross of reinsurance

(64)

Claims outstanding – net of reinsurance

(64)

General insurance business sensitivities as at 31 December 2023

Sensitivity

+5.0%£000

-5.0%£000

Claims outstanding – gross of reinsurance

493

(493)

Claims outstanding – net of reinsurance

493

(493)

The method used for deriving sensitivity information and significant assumptions did not change from the previous period.

d)Financial risk

1)Credit risk

Credit risk is the risk that one party to a financial instrument will cause a financial loss to the other party by failing to honour their obligation to the Syndicate. The Syndicate’s net exposure and credit risk is the risk of default by Syndicate 1910.

The table below provides information regarding the credit risk exposure of the Syndicate at the reporting date by classifying assets according to independent credit ratings of the counterparties. AAA is the highest possible rating. Assets that fall outside the range of AAA to BBB are classified as speculative grade and have not been rated, Debtors, other than amounts due from reinsurers, have been excluded from the table as these are not rated.

2024

AAA£000

AA£000

A£000

BBB£000

Other£000

Not rated£000

Total£000

Debtors arising out of reinsurance operations

35,259

2023

AAA£000

AA£000

A£000

BBB£000

Other£000

Not rated£000

Total£000

Debtors arising out of reinsurance operations

34,221

2)Liquidity risk

The Syndicate operates on a funds withheld basis and operates no bank accounts of its own. All transactions are incurred and settled in the first instance by the host Syndicate 1910. On closing a year of account, profits or losses earned by Syndicate 6136 are settled between the host Syndicate and the members.

The table below summarises the maturity profile of the Syndicate’s financial liabilities based on remaining undiscounted contractual obligations, including interest payable, and outstanding claim liabilities based on the estimated timing of claim payments result from recognised insurance liabilities. Repayments which are subject to notice are treated as if notice were to be given immediately.

Undiscounted net cash flows

Year 2024

No maturity stated£000

0-1 yrs£000

1-3 yrs£000

3-5 yrs£000

>5 yrs£000

Total£000

Claims outstanding

1,122

128

1,279

Undiscounted net cash flows

Year 2023

No maturity stated£000

0-1 yrs£000

1-3 yrs£000

3-5 yrs£000

>5 yrs£000

Total£000

Claims outstanding

2,946

3)Market risk

Currency risk

Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates.

The Syndicate’s functional currency is US Dollars and its exposure to foreign exchange risk arises primarily with respect to its share of transactions by Syndicate 1910 in Euro, GBP and Canadian dollars. Syndicate 6136 seeks to mitigate the risk by matching the estimated foreign currency denominated liabilities with assets denominated in the same currency.

The table below summarises the exposure of the Syndicate’s share of the financial assets and liabilities of Syndicate 1910 (translated to Sterling) to foreign currency exchange risk at the reporting date, as follows:

Sterling

US dollar

Euro

Canadian dollar

Australian dollar

Japanese Yen

Other

Total

2024

£000

Total assets

(391)

32,742

100

1,048

1,042

718

35,263

Total liabilities

(977)

(5)

(106)

(105)

(95)

(1,288)

Total capital and reserves

(391)

31,765

942

937

623

33,975

Sterling

US dollar

Euro

Canadian dollar

Australian dollar

Japanese Yen

Other

Total

2023

£000

Total assets

(410)

32,302

1,118

1,133

852

35,089

Total liabilities

(8,122)

(61)

(755)

(301)

(612)

(9,851)

Total capital and reserves

(410)

24,180

363

832

240

25,238

The host Syndicate, Syndicate 1910, matches its currency position so holds net assets across a number of currencies. Syndicate 1910 takes into consideration the underlying currency of the Syndicate’s required capital and invests its assets proportionately across these currencies so as to protect the solvency of Syndicate 1910, against variation in foreign exchange rates. The net assets of Syndicate 6136 are held by Syndicate 1910 on a funds withheld basis and are due to the members of Syndicate 6136 after 3 years.

3.Analysis of underwriting result

An analysis of the underwriting result before investment return is set out below:

2024

Gross premiums written£000

Gross premiums earned£000

Gross claims incurred£000

Gross operating expenses£000

Reinsurance balance£000

Underwriting result£000

Reinsurance acceptances

108

6,907

1,662

(852)

7,717

2023

Gross premiums written£000

Gross premiums earned£000

Gross claims incurred£000

Gross operating expenses£000

Reinsurance balance£000

Underwriting result£000

Reinsurance acceptances

55,004

47,965

(3,042)

(10,495)

(9,020)

25,408

4.Net operating expenses

2024£000

2023£000

Acquisition costs

(450)

7,559

Change in deferred acquisition costs

854

(886)

Administrative expenses

448

3,822

Net operating expenses

852

10,495

premiums written. This fee is included within net operating expenses under both administrative expenses and acquisition costs.

Administrative expenses include:

2024£000

2023£000

Auditors’ remuneration:

fees payable to the Syndicate’s auditor for the audit of these financial statements

fees payable to the Syndicate’s auditor and its associates in respect of other services pursuant to legislation

5.Staff costs and emoluments of the directors of the managing agency

All staff are employed by Ariel Re Management Services Limited (ARMS), which recharges staff costs to the Managing Agent. No emoluments of the directors of Ariel Re Managing Agency Limited were charged to the Syndicate during the year.

The emoluments of the active underwriter are borne by the host Syndicate and are not separately identifiable from the fee charged to the Syndicate.

The host Syndicate cedes to the Syndicate a share of an administration fee that does not separately identify staff costs.

6.Investment return

2024£000

2023£000

Interest and similar income

From financial assets designated at fair value through profit or loss

Interest and similar income

454

169

Other income from investments

From financial assets designated at fair value through profit or loss

Gains on the realisation of investments

123

Losses on the realisation of investments

(5)

(1)

Unrealised gains on investments

129

211

Unrealised losses on the investments

(56)

Investment management expenses

Total investment return

645

435

Transferred to the technical account from the non-technical account

(645)

(435)

7.Debtors arising out of reinsurance operations

2024£000

2023£000

Due within one year

Due after one year

35,259

34,221

Total

35,259

34,221

8.Deferred acquisition costs

The table below shows changes in deferred acquisition costs assets from the beginning of the period to the end of the period:

2024

2023

Gross£000

Reinsurance£000

Net£000

Gross£000

Reinsurance£000

Net£000

Balance at 1 January

869

Incurred deferred acquisition costs

(854)

886

Foreign exchange movements

(11)

(17)

Other

Balance at 31 December

869

9. Claims development

The tables following show the Syndicate’s cumulative incurred claims development, including both claims notified and IBNR for each underwriting year, together with the cumulative payments to date on a gross and net of reinsurance basis at the reporting date.

The Syndicate has elected to translate estimated claims and claims payments at a consistent rate of exchange as determined by the reporting date.

In settling claims provisions, the Syndicate gives consideration to the probability and magnitude of future experience being more adverse than assumed and exercises a degree of caution in setting reserves where there is considerable uncertainty. In general, the uncertainty associated with the ultimate claims experience in an underwriting year is greatest when the underwriting year is at an early stage of development and the margin necessary to provide the necessary confidence in the provisions adequacy is relatively at its highest. As claims develop, and the ultimate cost of claims becomes more certain, the relative level of margin maintained should decrease. However, due to the uncertainty inherent in the estimation process, the actual overall claim provision may not always be in surplus.

2023

Total

Pure underwriting year

£000

Estimate of gross claims

at end of underwriting year

2,975

one year later

1,279

Estimate of gross claims reserve

1,279

Less gross claims paid

Gross claims reserve

1,279

*Gross and net technical items are the same

10.Technical provisions

The table below shows changes in the insurance contract liabilities and assets from the beginning of the period to the end of the period.

2024

2023

Gross provisions£000

Reinsurance

Assets£000

Net£000

Gross provisions£000

Reinsurance

Assets£000

Net£000

Claims outstanding

Balance at 1 January

2,946

Claims paid during the year

(31)

Expected cost of current year claims

378

3,042

Change in estimates of prior year provisions

(2,040)

Foreign exchange movements

(35)

(65)

Other

Balance at 31 December

1,279

2,946

2024

2023

Gross provisions£000

Reinsurance

Assets£000

Net£000

Gross provisions£000

Reinsurance

Assets£000

Net£000

Unearned premiums

Balance at 1 January

6,905

Premiums written during the year

108

55,004

Premiums earned during the year

(6,907)

(47,965)

Foreign exchange movements

(97)

(134)

Other

Balance at 31 December

6,905

11.Related parties

Lloyd’s market regulations require that a managing agent is responsible for employing the underwriting staff and managing the affairs of each Syndicate at Lloyd’s on behalf of the Syndicate members. The managing agent of Syndicate 6136 is Ariel Managing Agency Limited (ARMA).

The immediate parent company of ARMA is Ariel Re Services Holdings (No 1355) Limited. Information on Ariel Re Services Holdings (No 1355) Limited and its subsidiaries is available at www.arielre.com

ARMA has provided service and support to Syndicate 6136 in its capacity as managing agent since 1 April 2023.

For the 2023 Year of Account Syndicate 1910 ceded 13.1% of written premium to the Syndicate on all property lines incepting from 1 April 2023. This cession resulted in the Syndicate receiving £0.1m (2023: £55.0m) of reinsurance premium from Syndicate 1910 during the year and having a balance of £35.3m (2023: 35.1m) receivable from Syndicate 1910 on a funds withheld basis as at 31 December 2024.

ARMA charge a 1% managing agency fee based on Gross Written Premium to Syndicate 1910, who under the quota share agreement recharge a share to Syndicate 6136 who record it under net operating expenses. In 2024 this amounted was £0.0m (2023: £0.6m)

12.Disclosure of interests

Managing Agent’s interest

Ariel Re Managing Agency Limited is currently the Managing Agent for Lloyd’s Syndicates 1910, 6117 and 6136.

The Financial Statements of the Managing Agency can be obtained by application to the Registered Office (see page 4).

13.Off-balance sheet items

The Syndicate has not been party to any arrangement, which is not reflected in its balance sheet, where material risks and benefits arise for the Syndicate. Post balance sheet events.

14.Foreign exchange rates

The following currency exchange rates have been used for principal foreign currency transactions:

2024

2023

Start of period rate

End of period

rate

Average

rate

Start of period rate

End of period rate

Average

rate

Sterling

1.00

Euro

1.15

1.21

1.18

1.13

1.15

US dollar

1.27

1.25

1.28

1.20

1.27

1.24

Canadian dollar

1.68

1.80

1.75

1.63

1.68

Australian dollar

1.87

2.02

1.94

1.77

1.87

Japanese Yen

179.75

196.90

193.53

158.71

179.75

174.97

15.Funds at Lloyd’s

Every member is required to hold capital at Lloyd’s which is held in trust and known as Funds at Lloyd’s (‘FAL’). These funds are intended primarily to cover circumstances where Syndicate assets prove insufficient to meet participating members’ underwriting liabilities. The level of FAL that Lloyd’s requires a member to maintain is determined by Lloyd’s based on Prudential Regulatory Authority requirements and resource criteria. The determination of FAL has regard to a number of factors including the nature and amount of risk to be underwritten by the member and the assessment of the reserving risk in respect of business that has been underwritten. Since FAL is not under the management of the Managing Agent, no amount has been shown in these Financial Statements by way of such capital resources. However, the Managing Agent is able to make a call on the Member’s FAL to meet liquidity requirements or to settle losses