Syndicate Forecasts 308, 510, 557 and 807
Argenta Comment: Lloyd’s managing agent R.J. Kiln and Co has released updated forecasts as follows for the 2010 and 2011 year of account. Please note that these forecasts do not take any account of Superstorm Sandy. Some of the losses arising from this event will fall to the 2011 year of account, although we anticipate the impact on the 2010 account to be negligible.
Extract from Kiln press release
• Syndicate 510 remains on track to deliver a profit for the 2011 year of account
• Midpoint forecast for Syndicate 510 now showing a profit for the 2010 year of account
• Continuing to develop the business to prepare for future opportunities
R J Kiln & Co Limited, part of the Tokio Marine Group, has released updated forecasts for the 2010 and 2011 years of account for its four non-aligned syndicates as at 30 September 2012.
The previous forecasts were announced in August 2012. The forecasts set out below take into account all managing agency and Lloyd’s charges. These forecasts do not include losses arising from Superstorm Sandy, which took place on 29 October.
2010 year of account
|Syndicate||Capacity £m||Updated Forecast||Previous Forecast|
|308||20||10.5% to 15.5% profit||7.9% to 12.9% profit|
|510||923||1.6% loss to 3.4% profit||3.1% loss to 1.9% profi|
|557||120||28.9% to 23.9% loss||29.3% to 24.3% loss|
|807||140||29.5% to 24.5% loss||32.6% to 27.6% loss|
2011 year of account
|Syndicate||Capaity £m||Updated Forecast||Previous Forecast|
|308||20||4.0% to 9.0% profit||10.1% to 15.1% profit|
|510||922||2.5% to 7.5% profit||2.1% to 7.1% profit|
|557||60||3.5% to 8.5% profit||0.5% to 5.5% profit|
|807||140||4.7% loss to 0.3% profit||4.5% loss to 0.5% profit|
Syndicate 510 remains forecast to make a profit for the 2011 year of account, despite the succession of catastrophes which took place during the 2011 calendar year.
The non-life syndicates benefitted from a net release of catastrophe loadings following a benign third quarter of 2012.
Charles Franks, Chief Executive Officer of R J Kiln & Co, said "Despite the challenges we have seen, I am pleased to report that Syndicate 510 remains forecast to make a profit for the 2011 year of account and that the midpoint forecast for the 2010 year of account has moved into profit.
"This year has been relatively benign in comparison to the same period last year with the exception of Superstorm Sandy. While it is clear that this event is likely to generate significant economic and insured losses for the industry, it is too soon at this stage to assess accurately the financial impact it will have on Kiln. It is important to remember that taking on such risks is what we do and we will continue to support those who rely on us."