Argenta Comment: Beazley has today released results and updated forecasts for the 2010 and 2011 years of its managed syndicates. The press releases are reproduced in full below. These results complete the reporting for third party syndicates and the full schedule is available below. We will receive details of the wholly aligned syndicates and hence the overall Lloyd’s market when Lloyd’s publishes its global results on 27 March. Despite some individually disappointing results, overall the 2010 underwriting result has improved from forecast loss into modest profit. We consider this an impressive achievement given the levels of natural catastrophe sustained by the account. When we have the global results, we should also be able to advise which syndicates, if any, propose to make early releases of profit for the 2011 and 2012 underwriting accounts. .

Beazley press releases

Syndicate 623

The board of Beazley Furlonge Limited, the managing agency for syndicate 623, is pleased to announce the following results on behalf of the syndicate, which writes business on behalf of Names at Lloyd's.

During the year ended 31 December 2012, syndicate 623 recognised total gains of USD$42.8m while recording a combined ratio of 86% (2011: 100%).

We are pleased to announce the 2010 underwriting year is now closed and has returned 6.1% on capacity. The 2011 underwriting year is currently forecasting a 2.5% return on capacity. The 2012 underwriting year, despite the impact of superstorm Sandy, is developing in line with expectations and we are forecasting a return on capacity of 3% at this early stage.

Andrew Horton, the group's chief executive officer, commented,
"We are pleased to report a positive result to our capital providers at Lloyd's on the 2010 underwriting year in spite of the impact of a number of natural catastrophes. Looking ahead underwriting conditions remain competitive, but we have seen rate increases across our entire book, and in particular in catastrophe exposed classes following the extraordinary natural catastrophe loss activity in 2010 and 2011, as well as superstorm Sandy in 2012.”

Syndicate 6107

The board of Beazley Furlonge Limited, the managing agency for syndicate 6107, announces the following results on behalf of the syndicate, which writes business on behalf of Names at Lloyd's.
After the exceptional catastrophe losses of 2011, syndicate 6107 recognised total gains of USD$2.3m in the year ended 31 December 2012, while reporting a combined ratio of 84% (2011: 163%).

The 2010 underwriting year is now closed and has declared a loss of USD$9.3m. This loss, driven by the exceptional series of natural catastrophes in 2010 and 2011, represents a loss of 39.1% of capacity. There has been no deterioration in our estimates of the impact of the 2011 catastrophes since the end of last year, and the 2011 underwriting year is currently forecasting a 5.0% return on capacity. Whilst the 2012 underwriting year has been affected by superstorm Sandy, if there are no further major catastrophe events during the remainder of the exposure period, then we expect the year to close with a healthy profit.

Andrew Horton, the group's chief executive officer, commented, "Syndicate 6107 has developed well in the current financial year. While the syndicate closes with a loss on the 2010 underwriting year, the outlook for both the 2011 and 2012 underwriting years is positive at this stage. The impact of the 2011 catastrophes, and superstorm Sandy in 2012, have lead to rate increases and the syndicate is well placed to take advantage of such rate increases using its increased stamp capacity as we move into 2013.”