ERS Syndicate Management Limited has provided us with the result for the 2015 account of Syndicate 218 as well as an updated forecast for the 2016 account. These are as follows:

 

year of account

Capacity
£000s

Result/
Revised forecast Range

Previous Forecast
Range

Change at
Midpoint

2015

349,828

-4.7% loss

-9.9% to 0.2%

0.1 points better

2016

359,462

-11.0% to -1.0%

-10.9% to -0.9%

0.1 points worse

2017

480,000

No Forecast at this stage

 

ERS has also released details of the results on a calendar year basis and made the following press release

In a year of significant disruption for the UK motor market, specialist motor insurer ERS’ continued focus on specialism has delivered a strong underlying business performance in 2017.

Whilst ERS is announcing a loss of £12.2m for 2017 (2016: £21.7m loss), underlying trading remains strong with double-digit growth in its core specialist products. For the second year in succession the financial result is impacted by the change in the Ogden discount rate and one-offs, resulting in a Combined Operating Ratio (COR) of 104.9% (2016: 108.4%). Without these impacts, ERS’ COR would have been 97.9%.

ERS’ Gross Written Premium (GWP) was £376.1m (2016: 406.1m) which was expected as ERS took a lead in implementing price increases following Ogden and exited underperforming classes where required rates were not being sustained in the market.  The consistent market strategy is bringing benefits to the franchise with the highest ever number of presentations being received from brokers and a new record high (41%) of brokers now considering ERS first for specialist motor risks. 

Ian Parker CEO ERS said  “It is frustrating that for the second year running the significant progress the company has made in executing its strategy has been masked in the financial result by the impact of Ogden and other one offs. The underlying performance though remains strong.  Our underwriting strategy is clear, brokers recognise what ERS stands for, our operational infrastructure is robust, and with Martin Hall now in position the team is complete.  I am excited for the future and that the earnings profile will return to the trend established before the distortions caused by the change in the Ogden discount rate.” 

The result for Syndicate 218 is the final result required for MAPA 7009’s 2015 account. This MAPA has closed with a profit of 12.11% of capacity, a result that is 2.84 points better than the midpoint of the range forecast at 30 September which was for a profit between 6.00% and 12.54% of capacity.

The full list of results and forecasts received to date is available here. There is one remaining syndicate where Argenta clients have a participation that has yet to report its result to us. This is Standard Syndicate 1884. Charles Taylor Managing Agent, the syndicate’s managing agent, has advised us that it will provide results and updated forecasts on Tuesday 6 March.