Sportscover Underwriting Limited has advised us of the result for the 2010 year of account of Syndicate 3334. This is a loss of £10.5m, which equates to 41.5% of allocated capacity. We have met with both syndicate managers and actuaries to gain a better understanding of this very disappointing result which follows severe deterioration on a number of individual claims prompting a review of all case reserves and a general increase in carried reserves. Recent years have seen a worsening climate for Australian insurers of liability business, and there has been a widespread increase in claims' awards despite the passage of tort reform through the various state legislatures at the beginning of the last decade. The forecast loss at Quarter 3 2012 was a range of 19.2% to 26.3% of capacity.

The use of more cautious claims' development patterns means that the 2011 account is now also forecast to be a loss, and is forecast in the range 0.3% to 5.1% of capacity. As at Quarter 3 2012, a profit in the range 0.3% to 5.2% of capacity was forecast.

The full results schedule is attached