Oct 13, 2014 - Best's Credit Ratings are under continuous review and subject to change and/or affirmation. For the lates
Aon Benfield Analytics | Market Analysis
Lloyd’s Update October 2014
Risk. Reinsurance. Human Resources.
Table of Contents Executive Summary ..........................................................................................................3 2014 Interim Results ........................................................................................................4 Premium Income ................................................................................................................ 4 Underwriting Performance ................................................................................................. 5 Investment Return .............................................................................................................. 5 Pre-Tax Results ................................................................................................................... 6 Balance Sheet at June 30, 2014 ........................................................................................7 Investments ....................................................................................................................... 7 Capital ............................................................................................................................... 8 Technical Reserves ............................................................................................................. 9 Looking Ahead to 2015 ..................................................................................................10 2015 Capacity .................................................................................................................. 10 Syndicate News................................................................................................................ 10 Vision 2025 ...................................................................................................................... 10 Financial Strength Ratings ................................................................................................ 10 Appendix 1: Active Syndicate Listing ..............................................................................11
2
Lloyd’s Update – October 2014
Executive Summary Lloyd’s reported its strongest interim result since 2007, despite challenging market conditions. Pretax profit rose by 21% to GBP1.7 billion in the first half of 2014, representing an annualized return on capital employed of 16.5%. Gross premiums written totaled GBP14.9 billion, down 4.1% on a reported basis, but up 0.8% at constant exchange rates. In the aggregate, risk-adjusted rates fell by 3.3%, mainly driven by competitive pressures in property treaty and energy business. Underwriting profit of GBP1.1 billion (1H 2013: GBP1.3 billion) equated to a combined ratio of 88.2% (86.9%). The deterioration was driven by adverse foreign exchange movements and costs associated with Solvency II implementation. Major losses totaled GBP134 million, representing only around a quarter of the long-term average. These occurred predominantly in the Aviation sector, with the loss of Malaysian Airlines flight MH370 costing an estimated GBP75 million net. For the tenth successive year, Lloyd’s reported an overall surplus on prior year reserves. This was broadly in line with last year at GBP760 million, providing 8.0pp of benefit to the combined ratio. Lloyd’s investments produced a total return of GBP642 million or 1.3% in the first half of 2014, more than double the GBP247 million or 0.5% achieved in the prior year period. The improvement was driven by unrealized gains on bond portfolios. Lloyd’s balance sheet strength has been recognized by the leading rating agencies. Investment allocation remains relatively conservative, capital resources remain close to all-time highs and legacy issues appear contained. Overall net resources (capital, reserves and subordinated loan notes) fell by 2% to GBP20.7 billion over the six months to June 30, 2014, reflecting the distribution of profit to capital providers. In September 2014, the Chinese Government granted approval for Lloyd’s to establish a licensed branch in Beijing, further expanding the market’s footprint in China. A.M. Best affirmed their ‘A’ rating of the Lloyd’s market on July 24, 2014 and maintained the positive outlook assigned a year earlier. Standard & Poor’s affirmed their ‘A+’ rating on October 13, 2014 and revised the outlook from positive to stable. Additional capital flows from non-traditional sources continue to fuel increased competition in the market. The limited disclosure from managing agents to date suggests more reductions in capacity than increases going into 2015.
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3
2014 Interim Results Lloyd’s reported its strongest interim result since 2007, despite challenging market conditions, with a pre-tax profit of GBP1.7 billion representing an annualized return on capital employed of 16.5%. Weakening underwriting performance relative to the prior year was out-weighed by improvement in the investment return. Exhibit 1: Lloyd’s Pro-Forma Results Income Statement GBP (millions)
Full Year 2009
Full Year 2010
Full Year 2011
Full Year 2012
Full Year 2013
Interim 2013
Interim 2014
Year-on-Year Change
Gross premiums written
21,973
22,592
23,477
25,500
26,106
15,496
14,863
-4%
Net premiums written
17,218
17,656
18,472
19,435
20,231
11,107
10,894
-2%
Net premiums earned
16,725
17,111
18,100
18,685
19,725
9,592
9,520
-1%
Underwriting result
2,320
1,143
-1,237
1,661
2,605
1,261
1,119
-11%
Investment result
1,769
1,258
955
1,311
839
247
642
160%
Pre-tax result Key Ratios Combined Ratio Investment yield Return on capital*
3,868
2,195
-516
2,771
3,205
1,379
1,667
21%
Full Year 2009
Full Year 2010
Full Year 2011
Full Year 2012
Full Year 2013
Interim 2013
Interim 2014
Year-onYear Change
86.1%
93.3%
106.8%
91.1%
86.8%
86.9%
88.2%
1.3pp
3.9%
2.6%
1.9%
2.6%
1.6%
0.5%
1.3%
0.8pp
23.9%
12.1%
-2.8%
14.8%
16.2%
14.0%
16.5%
2.5pp
Source: Lloyd’s, Aon Benfield Market Analysis
*Capital and reserves
Premium Income
Gross premiums written totaled GBP14.9 billion in the first half of 2014, down 4.1% on a reported basis, but up 0.8% at constant exchange rates. In the aggregate, risk-adjusted rates fell by 3.3%, mainly driven by property treaty and energy business. This offset modest growth in other lines and contributions from new syndicates.
4
Lloyd’s Update – October 2014
Exhibit 2: Lloyd’s Gross Premiums Written 30
Full Year Interim
GBP (billions)
Additional capital flows from non-traditional sources continue to fuel increased competition in the market. Pricing remains under pressure and overall premium growth remains restrained while challenging market conditions continue. Given that interest rates remain low, an emphasis on underwriting discipline continues to be Lloyd’s top priority.
20
10
13.5
13.5
13.5
2009
2010
2011
14.8
15.5
14.9
2012
2013
2014
0 Source: Lloyd’s, Aon Benfield Market Analysis
Underwriting Performance Lloyd’s recorded another strong underwriting performance in the first half of 2014. Technical profit of GBP1.1 billion (1H 2013: GBP1.3 billion) equated to a combined ratio of 88.2% (86.9%).
Exhibit 3: Lloyd’s Interim Combined Ratios 130% 110%
Major Losses Expense Ratio
113.3% 98.7%
88.7%
Loss Ratio* Reserve Releases
86.9%
88.2%
90% 70% 50% 30% 10% -10% 1H 2010
1H 2011
1H 2012
1H 2013
Source: Lloyd’s, Aon Benfield Market Analysis
1H 2014
*Excluding major losses
Exhibit 4 demonstrates that the results were heavily influenced by below average major claims activity and continued favourable prior year reserve development.
On an accident year basis, the underlying combined ratio rose by 2.2 percentage points (pp) to 94.8%. A marginal improvement in the attritional loss ratio was offset by a 2.7pp increase in the expense ratio, driven by adverse foreign exchange movements and costs associated with Solvency II implementation. Major losses totaled GBP134 million, representing only around a quarter of the long-term average. These occurred predominantly in the Aviation sector, with the loss of Malaysian Airlines flight MH370 costing an estimated GBP75 million net. Global weatherrelated losses in the first half have not had a material impact on the Lloyd’s market. For the tenth successive year, Lloyd’s reported an overall surplus on prior year reserves. This was broadly in line with last year at GBP760 million, providing 8.0pp of benefit to the combined ratio. Positive development in most classes was partly offset by further additions to Motor reserves, and increases in wreck removal costs within the Marine sector (Costa Concordia and MV Rena).
Exhibit 4: Composition of Lloyd’s Combined Ratio 100% 80% 60% 40% 20%
92.6%
2.4%
-8.1%
1.4%
94.8%
86.9%
-8.0%
88.2%
Expense Ratio 39.1%
Expense Ratio 36.3%
1H 2013
Attritional Loss Ratio 56.3%
1H 2014
Attritional Loss Ratio 55.7%
0% Accident year*
Major losses
Reserve releases
Accident year*
Calendar year
Major losses
Reserve releases
Source: Lloyd’s, Aon Benfield Market Analysis
Calendar year *Excluding major losses
Investment Return
The three components of the result are shown in Exhibit 5. The return on centrally-held mutual assets was GBP42 million, the notional return on the capital supporting members’ underwriting was GBP120 million and the return on syndicate-level assets was GBP480 million. The central assets portfolio achieved the highest yield, owing to a higher allocation to equities.
Exhibit 5: Lloyd’s Investment Return Investment return on Society assets (GBP) Notional return on Funds at Lloyd's (GBP) Syndicate investment return (GBP) Investment return (%)
2.5 3.9%
2.0
GBP (billions)
Lloyd’s investments produced a total return of GBP642 million or 1.3% in the first half of 2014, more than double the GBP247 million or 0.5% achieved in the prior year period. The improvement was driven by unrealized gains on bond portfolios.
1.5
2.6%
2.6% 1.9%
1.0
5% 4% 3%
1.6%
0.5
1.3% 0.5%
2% 1% 0%
0.0 FY FY FY FY FY 2009 2010 2011 2012 2013
1H 1H 2013 2014
Source: Lloyd’s, Aon Benfield Market Analysis
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5
Pre-Tax Results Lloyd’s reported a 21% increase in pre-tax profit to GBP1,667 million for the first half of 2014. Favourable development of prior year reserves represented 68% of underwriting profit and 46% of the pre-tax result.
The annualized return on capital employed was 16.5% in the first half of 2014, compared with 14.0% in the prior year.
Exhibit 6: Lloyd’s Pre-Tax Result Composition
Exhibit 7: Lloyd’s Return on Capital* (Annualized)
5
Underwriting result* Investment result Pre-tax result
3.9
4
GBP (billions)
2.8
3
Reserve releases Other
Interim
20%
Full year
3.2
2.2 1.4
2
1.7
10%
1 0
0%
-1
-0.5
-2 -3 FY 2009
FY 2010
FY 2011
Source: Lloyd’s, Aon Benfield Market Analysis
6
Lloyd’s Update – October 2014
FY 2012
FY 2013
1H 2013
1H 2014
*Accident year
-10% 2010
2011
Source: Lloyd’s, Aon Benfield Market Analysis
2012
2013
2014 *Capital and reserves
Balance Sheet at June 30, 2014 Lloyd’s balance sheet strength has been recognized by the leading rating agencies. Overall investment allocation remains relatively conservative, capital resources remain close to all-time highs and legacy issues appear contained. Exhibit 8: Summary Lloyd’s Balance Sheet Balance Sheet GBP (millions)
Full Year 2009
Full Year 2010
Full Year 2011
Full Year 2012
Full Year 2013
Interim 2014
Year-to-Date Change
Cash and investments
46,254
48,483
51,415
51,767
51,494
50,154
-3%
Gross technical provisions
43,544
46,428
51,918
51,517
49,821
51,274
3%
9,931
10,237
12,153
12,439
11,466
12,120
6%
Net technical provisions
33,613
36,191
39,765
39,078
38,355
39,154
2%
Net resources*
19,121
19,121
19,114
20,193
21,107
20,719
-2%
Reinsurers’ share
Source: Lloyd’s, Aon Benfield Market Analysis
*Capital, reserves, subordinated loan notes and securities
Investments Cash and investments totaled GBP50.2 billion at June 30, 2014, down 2.6% from the end of 2013. The bond portfolio has seen an increased weighting towards corporates, with government bonds falling to 24% (FY 2013: 27%). The credit rating profile of the GBP20.1 billion corporate bond portfolio, was ‘AAA’ 25% (27%), ‘AA’ 26% (26%), ‘A’ 35% (35%) and lower/unrated 14% (12%). Equities increased from 6% to 7% of the total portfolio.
A slight increase in risk appetite was also evident within the central fund asset portfolio. Bonds fell to 55%, from 67% at the end of 2013, with a higher weighting towards corporates. Cash increased from 2% to 11%, emerging equity increased from 4% to 6%, and hedge funds increased from 5% to 6%. Senior secured loans emerged as a new asset class, replacing a 2% allocation to commodities.
Exhibit 9: Investment Allocation at June 30, 2014 Total Invested Assets: GBP50.2 billion
Central Assets: GBP2.5 billion
Alternative investments Equities 2% 7%
5%
Fixed income - corporate
6%
Fixed income - government* Corporate bonds 40%
Cash and LOCs 27%
Cash
3%
2%
31%
6%
Global equity Emerging equity
12%
Property equity Hedge funds
11% 24%
Emerging markets & high yield bonds Government bonds* 24% Source: Lloyd’s, Aon Benfield Market Analysis
Senior secured loans
*Includes supra nationals and government agencies
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7
Capital Lloyd’s is a partially mutualized market and does not hold conventional equity. The components of the capital base are shown in Exhibit 10. Both Funds at Lloyd’s (FAL) and members’ balances operate on a several liability basis. Overall net resources (capital, reserves and subordinated loan notes) fell by 2% to GBP20.7 billion over the six months to June 30, 2014, reflecting the distribution of profit to capital providers. Assets admissible for solvency purposes were estimated to exceed solvency deficits by GBP3.2 billion.
Exhibit 10: Lloyd’s Capital Base Funds at Lloyd's Central assets Solvency surplus
25 19.1
19.1
19.1
20.2
21.1
3. Central resources: Society of Lloyd’s net assets of GBP1.8 billion, plus subordinated debt of GBP0.7 billion. If the first link needs additional funds, the second link ensures members have resources available. In the rare event that both are insufficient, central resources can be made available at the discretion of the Council of Lloyd’s to ensure valid claims are paid.
20.7
15
Exhibit 11: Lloyd’s Chain of Security at June 30, 2014 Subordinated Debt GBP712 million
Members' Central Assets Assets
GBP (billions)
20
Members' balances Subordinated liabilities
2. Members’ assets: FAL of GBP14.8 billion. Each member, whether corporate or individual, must provide sufficient capital to support their underwriting at Lloyd’s. The capital is held in trust for the benefit of policyholders, but is not available to support the liabilities of other members. Assets supporting FAL requirements must be liquid but may include LOCs and bank guarantees.
10 5 0
Central Fund GBP1,604 million Corporation Assets GBP159 million
Callable Layer (=3%) GBP778 million
Funds at Lloyd's (underlying capital set by Lloyd's) GBP14,814 million
FAL represents capital lodged and held in trust to support members’ underwriting commitments. The total fell by GBP274 million to GBP14.8 billion at June 30, 2014, of which 49% was held in the form of letters of credit (LOCs) and bank guarantees. Members’ balances represent the net profit/(loss) to be distributed/(collected) by syndicates to/(from) capital providers. The total fell by GBP205 million to GBP3.4 billion over the six months to June 30, 2014. Central assets increased by 4% to GBP2.5 billion, including GBP712 million of subordinated debt. Mutual assets stood at GBP1.8 billion, including the Central Fund at GBP1.6 billion. The Chain of Security The resources available to pay claims at Lloyd’s are linked together in a ‘Chain of Security’ as follows: 1. Syndicate assets: Premium Trust Funds (PTFs) of GBP42.6 billion. All premiums received by syndicates are held in trust as the first resource for paying policyholders’ claims. Until all liabilities have been provided for, no profits can be released. Every year, each syndicate’s reserves for future liabilities are independently audited and receive an actuarial review.
8
Lloyd’s Update – October 2014
Syndicate Assets
FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 1H 2014 Source: Lloyd’s, Aon Benfield Market Analysis
Premium Trust Funds GBP42,584 million
Several assets
Mutual assets
Contingent
Source: Lloyd’s
Capital Setting at Lloyd’s Since January 2013, managing agents have been required to prepare an Individual Capital Assessment (ICA) for each syndicate, in accordance with the provisions of Solvency II. This is the level of capital required to cover underlying business risks at a 99.5% confidence level. Lloyd’s reviews all ICAs to assess the adequacy of the proposed capital level. When agreed, each ICA is then ‘uplifted’ by 35% to ensure there is sufficient capital to support the market’s ratings and financial strength. This uplifted ICA is known as the syndicate’s Economic Capital Assessment (ECA) and drives members’ capital levels. Central assets are currently managed to a minimum of 250% of the ICA prepared centrally for the market as a whole. The Corporation regularly runs detailed analyses aiming to balance the need for financial security with the need for cost-effective mutuality of capital. Members’ contributions to the Central Fund remain at 0.5% of gross premiums written for 2014.
Technical Reserves 50
Net claims provision
41 36
34
40
40
38
30 180%
199%
37
21
20
19
216%
10
19
190%
19
20
Net resources
21
178%
Reinsurers' share of claims provision
178%
Unearned premium reserves increased by 21% to GBP14.4 billion over the six months to June 30, 2014, but were down by 3% relative to June 30, 2013. Reinsurers’ share rose by 70% to GBP3.2 billion, but declined by 8% relative to June 30, 2013.
Exhibit 12: Lloyd’s Claims Reserve Leverage
GBP (billions)
Gross provisions for outstanding claims fell by 3% or GBP1.1 billion to GBP36.9 billion over the six months to June 30, 2014. Reinsurers’ share fell by 7% or GBP679 million to GBP8.9 billion. The ratio of claims reserves to overall net resources stood at 178% on a gross basis and 135% net of reinsurance.
0 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 1H 2014 Source: Lloyd’s, Aon Benfield Market Analysis
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9
Looking Ahead to 2015 2015 Capacity The limited disclosure from managing agents to date suggests more reductions in capacity than increases going into 2015. The indicative figures summarised below are still subject to change.
In September, Faraday announced a restructuring (subject to necessary approvals) of its London market business, whereby Faraday Re’s insurance business will be renewed into Syndicate 0435 from January 1, 2015 and treaty business will be renewed into the syndicate on or before January 1, 2016.
In September, Novae announced its intention (subject to necessary approvals) to establish a new Bermuda-based operation which will act as a coverholder for and group reinsurer of Lloyd’s Syndicate 2007.
In October, Ascot and AIG announced a new Bermuda-based reinsurance platform ‘AIG-Ascot Re’ to complement Ascot’s Lloyd’s Syndicate 1414 from January 1, 2015.
Exhibit 13: 2015 Syndicate Capacity Indications 2014 Capacity GBPmn 1,000
2015* Capacity GBPmn 1,000
Change 0%
Syndicate 0033
Managing Agent Hiscox
0218
ERS
438
350
-20%
0386
QBE
413
353
-15%
0623
Beazley
243
226
-7%
0779
ANV
22
22
0%
0958
Canopius
175
185
6%
Vision 2025
1969
ANV
140
160
14%
1991
R&Q
150
119
-20%
2010
Cathedral
350
306
-13%
2014
Pembroke
75
100
33%
2791
MAP
453
400
-12%
5820
ANV
131
131
0%
6104
Hiscox
72
72
0%
Lloyd’s continues to implement ‘Vision 2025’, a long-term strategic plan aimed at ensuring that the market grows beyond the English-speaking world to become the true global hub for specialist insurance and reinsurance business. CEO Inga Beale has reiterated that Lloyd’s intends to expand in underinsured markets, with the aim of increasing premium income in the ten largest high-growth economies at a rate that tracks or exceeds non-life premium growth.
Source: Lloyd’s, Aon Benfield Market Analysis
*Unofficial and subject to change
Syndicate News
Financial Strength Ratings A.M. Best affirmed their ‘A’ rating of the Lloyd’s market on July 24, 2014 and maintained the positive outlook assigned a year earlier. Standard & Poor’s affirmed their ‘A+’ rating on October 13, 2014 and revised the outlook from positive to stable.
Oversight of Syndicate 2526 is expected to be transferred from Asta Managing Agency Ltd to AmTrust at Lloyd’s during 2015 (subject to necessary approvals), in conjunction with an increase in ownership.
Canopius Motor Syndicate 0260 (formerly KGM) is expected to cease trading at the end of 2014. Renewals will be accepted into Canopius Syndicates 0958 and 4444.
Exhibit 14: Lloyd’s Market Ratings
ANV acquired Jubilee in December 2013. From 2015, the property business of Syndicates 1861 and 5820 will be written on a 50:50 split stamp basis (subject to necessary approvals).
10
China Re-backed Special Purpose Syndicate 2088, currently managed by Catlin and providing a whole account quota share reinsurance of Catlin Syndicate 2003 since 2012, has been approved in principle to convert to a standalone syndicate from January 1, 2015.
In September 2014, the Chinese Government granted approval for Lloyd’s to establish a licensed branch in Beijing, further expanding the market’s footprint in China.
In September, Hamilton Re, Bermuda, announced that they had entered into exclusive discussions with Wild Goose Holdings, Australia, regarding a potential acquisition of Sportscover Underwriting Ltd and Syndicate 3334.
Lloyd’s Update – October 2014
Rating
Outlook
Action
A
Positive
Affirmed July 24, 2014
Fitch
AA-
Stable
Upgraded June 10, 2014
Standard & Poor’s
A+
Stable
Affirmed October 13, 2014
A.M. Best
Source: Rating agencies
Appendix 1: Active Syndicate Listing
Aon Benfield Analytics | Market Analysis
11
Exhibit 15: Active Syndicate Listing 2013 GPW GBPmn 823
2013 Combined Ratio 75.2%
2013 Pre-Tax Result as % of NPE 26.6%
9
90.4%
-3.6%
10
406
107.7%
-5.0%
438
67
105.9%
-3.5%
70
31
94.0%
6.6%
32
Munich Re (91.2%)
149
78.9%
22.1%
235
CNA
CNA
291
91.0%
9.8%
330
QBE
QBE (69.6%)
449
94.4%
10.3%
413
Faraday
Berkshire
Berkshire
234
43.6%
59.3%
325
Munich Re
Munich Re
Munich Re
511
88.2%
12.4%
425
0510
Kiln
Tokio Marine
Tokio Marine (55.2%)
1,169
87.5%
13.3%
1,064
0557
Kiln
Tokio Marine
Hampden (52.6%)
30
57.0%
44.1%
39
0566
QBE
Operates as a trading division of Syndicate 2999
0609
Atrium
Enstar/Stone Point
Hampden (36.5%)
380
82.1%
17.9%
420
0623
Beazley
Beazley
Hampden (53.6%)
240
78.3%
20.4%
243
0626
Hiscox
Operates as a trading division of Syndicate 0033
0727
Meacock
Family-owned
Hampden (43.2%)
70
87.0%
16.7%
81
0779
ANV
ANV
Hampden (40.0%)
26
87.8%
12.9%
22
0780
Advent
Fairfax
Fairfax
135
103.2%
2.6%
200
0887
Amlin
Operates as a trading division of Syndicate 2001
0958
Canopius
Sompo
172
98.2%
4.0%
175
1036
QBE
Operates as a trading division of Syndicate 2999
1084
Chaucer
Hanover Ins
Hanover Ins
888
88.7%
11.9%
860
1110
Argenta
Argenta
ProSight Specialty
103
117.3%
-16.7%
150
1176
Chaucer
Hanover Ins
Hanover Ins (57.0%)
27
45.1%
56.4%
32
1183
Talbot
Validus
Validus
698
80.6%
19.8%
625
1200
Argo
Argo
Argo (68.9%)
425
93.0%
7.7%
350
1206
AmTrust
AmTrust
AmTrust
183
115.1%
-13.8%
200
1209
XL
XL
XL
307
93.5%
6.2%
300
1218
Newline
Fairfax
Fairfax
106
97.4%
20.2%
105
1221
Navigators
Navigators
Navigators
235
87.8%
11.9%
215
1225
AEGIS
AEGIS
AEGIS (93.0%)
367
87.1%
15.8%
330
1274
Antares
Qatar Ins
Qatar Ins (75.6%)
246
88.3%
12.7%
242
1301
Torus
Enstar/Stone Point
Torus (64.0%)
148
104.0%
-3.8%
180
1414
Ascot
AIG (20%)
AIG (97.8%)
625
80.2%
20.5%
650
1458
RenRe
RenRe
RenRe
141
95.8%
4.3%
169
1686
Asta
Tawa/Paraline/Skuld
Axis
Commenced trading January 1, 2014
1729
Asta
Tawa/Paraline/Skuld
ProAssurance (57.6%)
Commenced trading January 1, 2014
1861
ANV
ANV
ANV
155
1880
Kiln
Tokio Marine
Tokio Marine
237
1882
Chubb
Chubb
Chubb
81
1886
QBE
Operates as a trading division of Syndicate 2999
1897
Asta
Tawa/Paraline/Skuld
Skuld (66.7%)
75
110.6%
-10.6%
85
1910
Asta
Tawa/Paraline/Skuld
BTG Pactual†
204
57.9%
43.3%
174
1919
Starr
Starr International
Starr International
289
85.6%
15.5%
245
1945
Sirius
White Mountains
White Mountains
59
107.6%
-7.4%
99
1955
Barbican
Barbican
Barbican
279
95.2%
5.2%
192
1967
W.R. Berkley
W.R. Berkley
W.R. Berkley
136
94.0%
6.2%
185
1969
ANV
ANV
Argenta (79.8%)
121
97.2%
3.2%
140
1980
Liberty
Operates as a trading division of Syndicate 4472
1991
R&Q
R&Q
5
n.m.
n.m.
150
Syn. No. 0033
Managing Agent Hiscox
Agency Owner* Hiscox
Largest Capital Provider in 2014* Hiscox (72.5%)
0044
AmTrust
AmTrust
AmTrust
0218
ERS
Aquiline
Aquiline (66.7%)
0260
Canopius
NKSJ
Sompo (92.8%)
0308
Kiln
Tokio Marine
Tokio Marine (50.4%)
0318
Beaufort
Munich Re
0382
Hardy
0386
QBE
0435 0457
Sompo (69.0%)
Argenta (21.2%)
105.3%
2014 Capacity GBPmn 1,000
119 75 -4.8%
175
48.9%
52.6%
360
120.5%
-19.7%
85
*100% unless otherwise stated †Subject to Lloyd’s/regulatory approval Hampden and Argenta are Lloyd's members' agents acting mainly on behalf of third party capital providers
12
Lloyd’s Update – October 2014
Exhibit 15: Active Syndicate Listing (continued) 2013 GPW GBPmn
2013 Combined Ratio
2013 Pre-Tax Result as % of NPE
2014 Capacity GBPmn
Amlin
1,472
92.1%
12.8%
1,400
Catlin
1,922
93.0%
9.9%
1,391
Novae (90.0%)
608
93.4%
8.2%
575
Lancashire
Lancashire (57.8%)
273
66.9%
34.0%
350
Arch
Arch
Arch
158
99.0%
-5.0%
200
Pembroke
Ironshore
Hampden (81.5%)
2015
Channel
SCOR
SCOR
2088
Catlin
Catlin
China Re
2121
Argenta
Argenta
Argenta (86.9%)
2232
Allied World
Allied World
Allied World
2357
Asta
Tawa/Paraline/Skuld
Nephila
2468
Marketform
American Financial
2488
ACE
2525
Asta
2526
Syn. No.
Managing Agent
Agency Owner*
Largest Capital Provider in 2014*
2001
Amlin
Amlin
2003
Catlin
Catlin
2007
Novae
Novae
2010
Cathedral
2012 2014
Formerly SPS 6110, re-launched from January 1, 2014 124
112.2%
-12.0%
75 155
49
102.0%
-0.2%
50
239
87.4%
13.6%
240
96
116.6%
-15.5%
121
9
33.6%
66.5%
73
American Financial (70.0%)
186
99.1%
5.7%
175
ACE
ACE
371
81.2%
19.7%
350
Tawa/Paraline/Skuld
Hampden (45.3%)
39
67.6%
34.2%
42
Asta
Tawa/Paraline/Skuld
AmTrust (60.8%)
53
125.1%
-23.3%
64
2623
Beazley
Beazley
Beazley
1,093
78.0%
24.9%
1,107
2791
MAP
MAP (90.0%)
Hampden (38.1%)
261
69.6%
35.3%
453
2987
Brit
Brit
Brit
1,183
93.6%
9.4%
1,000
2999
QBE
QBE
QBE
1,118
80.7%
21.0%
1,060
3000
Markel
Markel
Markel
369
88.8%
16.9%
500
3002
Catlin
Catlin
Catlin
10
88.7%
11.3%
14
3010
Cathedral
Lancashire
Lancashire
27
108.8%
-8.6%
30
3210
Mitsui
MS&AD
MS&AD
343
90.3%
12.3%
340
3334
Sportscover
Sportscover
Wild Goose
88
108.9%
-8.3%
46
3622
Beazley
Beazley
Beazley
13
115.0%
-15.3%
16
3623
Beazley
Beazley
Beazley
134
105.2%
-5.3%
140
3624
Hiscox
Hiscox
Hiscox
306
100.8%
-0.4%
300
3902
Ark
Operates as a trading division of Syndicate 4020
4000
Pembroke
Ironshore
Ironshore
273
89.9%
11.0%
252
4020
Ark
Ark
Ark
359
86.0%
18.1%
340
4141
HCC
HCC
HCC
87
85.1%
16.2%
120
4242
Asta
Tawa/Paraline/Skuld
Paraline (15.7%)
76
89.2%
10.9%
80
4444
Canopius
Sompo
Sompo (74.0%)
704
89.8%
12.5%
700
4472
Liberty
Liberty
Liberty
1,268
94.7%
6.5%
1,175
4711
Aspen
Aspen
Aspen
279
97.4%
3.0%
365
5000
Travelers
Travelers
Travelers
331
79.9%
21.0%
300
5151
Montpelier
Montpelier
Montpelier
150
90.0%
13.0%
180
5678
Vibe
Soros/Pine Brook
Soros/Pine Brook
Commenced trading July 1, 2014
5820
ANV
ANV
ANV (51.1%)
130
83.5%
16.8%
131
6103
MAP
MAP (90.0%)
Hampden (55.1%)
21
18.6%
80.3%
30
6104
Hiscox
Hiscox
Hampden (45.9%)
43
43.0%
58.6%
72
6105
Ark
Ark
Argenta (43.3%)
13
87.4%
15.2%
60
6107
Beazley
Beazley
Hampden (49.9%)
29
61.0%
35.8%
19
6111
Catlin
Catlin
Hampden (58.0%)
108
96.0%
5.2%
106
6112
Catlin
Catlin
Everest Re
38
96.0%
5.4%
31
6113
Barbican
Barbican
Hampden (35.8%)
23
60.6%
40.1%
34
6115
Canopius
Sompo
Sompo (50.0%)
71
108.7%
-8.5%
70
6117
Asta
Tawa/Paraline/Skuld
Hampden
Commenced trading January 1, 2014
58
6118
Barbican
Barbican
ARIG/Labuan Re
Commenced trading January 1, 2014
25
6119
Catlin
Catlin
GIC
Commenced trading January 1, 2014
14
Source: Lloyd's, Aon Benfield Market Analysis
6
*100% unless otherwise stated †Subject to Lloyd’s/regulatory approval Hampden and Argenta are Lloyd's members' agents acting mainly on behalf of third party capital providers
Aon Benfield Analytics | Market Analysis
13
Contacts Mike Van Slooten
Eleanore Obst
Head of Market Analysis - International Aon Benfield Analytics +44.207.7522.8106
[email protected]
Analyst Market Analysis - International Aon Benfield Analytics +44.207.7522.3823
[email protected]
Mike McClane Head of Market Analysis - Americas Aon Benfield Analytics +1.215.751.1596
[email protected]
Kathryn Moyse Analyst Market Analysis - International Aon Benfield Analytics +44.207.7522.8173
[email protected]
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Lloyd’s Update – October 2014
Aon Benfield Analytics | Market Analysis
15
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