Tokio Marine Kiln Syndicates Limited has released updated forecasts for the 2018 and 2019 years of account of its managed syndicates.

Brad Irick, Chief Executive Officer of Tokio Marine Kiln, said “These latest forecasts are the first from TMK to reflect the effects of Covid-19. Although TMK has not been immune to impact of the pandemic, our underwriting teams are continuing to emphasise strict underwriting discipline, whilst enabling our clients to get back on line and support the economy.

“The pandemic has demonstrated the critical role that the insurance industry plays in supporting people, businesses and industries, and we are committed to supporting our clients through this fluid situation, ensuring that all valid claims are paid fairly and swiftly.”

2018 year of account

 

Syndicate

Capacity
£000s

Revised forecast Range

Previous Forecast
Range

Change at
Midpoint

510

1,135,651

-6.9% to 0.6%

-5.5% to -0.5%

0.1 points worse

557

34,630

-3.0% to 2.0%

-3.9% to 1.1%

0.9 points better

 TMK adds

  • The movement in the forecast range for Syndicate 510 is driven by the impact of Covid-19.
  • Improvements in Syndicate 557 are driven by favourable movements on the closed years

2019 year of account

 

Syndicate

Capacity
£000s

Revised forecast Range

Previous Forecast
Range

Change at
Midpoint

510

1,137,275

-11.4% to -1.4%

+0.7% to +5.7%

9.6 points worse

557

34,636

9.9% to 14.9%

+16.8% to +21.8%

6.9 points worse

 TMK adds

  • Syndicate 510’s forecast result is reflective of the current Covid-19 pandemic, suffering losses in relation to business disruption and event cancellations.
  • Deterioration in 557 driven by initial Covid-19 loss estimates.

The forecast for the 2017 year of account of syndicate 308 is unchanged. This life syndicate remained open at the end of 2019 with a projected loss in the range of 47.2% to 52.2% on a capacity of £31m.

A summary of all syndicate forecasts received to is available here and the complete TMK press release is available here.

Syndicate forecasts are expressed as a percentage of syndicate allocated capacity and are after all standard personal expenses, but before members’ agents’ fees and charges.