Tokio Marine Kiln Syndicates (TMKS) has today released its latest Lloyd’s syndicate forecasts and trading update, highlighting “exciting rating prospects” for 2018.
Syndicates 510 and 557 showed improvements for the 2015 year of account, following a benign quarter with both forecasting good profits, while Syndicate 510’s forecast for 2016 reflects losses due to the recent hurricane activity in the US and Caribbean, the company revealed in a statement today.
“The significant claims arising from Hurricanes Harvey, Irma and Maria are serving to demonstrate the true value of insurance. Our main priority is to support our customers who have been affected by these devastating catastrophes by handling claims promptly,” Charles Franks, chief executive officer of Tokio Marine Kiln, commented.
“The outlook for the rating environment is very exciting. For the first time in years, we are seeing prices showing marked increases as the market responds to the third quarter catastrophes,” he continued.
“We are poised to seize appropriate opportunities as they arise, focusing on strategically important areas that play to our strengths and enable our customers to thrive, while maintaining underwriting discipline.”
Previous forecasts, which were announced in August 2017, have been rebased to the same exchange rates (US$1.34 and C$1.68), TMKS said.
Updated forecasts show that Syndicate 510 had a capacity of £1062 million and a forecast range of -3.3% to 1.7% in 2016, compared to £1063 million and 7.7% to 12.7% in the previous accounting year.
Syndicate 557 had a capacity of £35 million and a forecast range of 10.0% to 15.0% in 2016, compared to £35 million and between 26.3% to 31.3% in 2015.
TMKS has applied for the cessation of Life Syndicate 308, subject to Lloyd’s consent, it was announced.
“We are committed to ensuring existing business is serviced to the highest standards and that there will be no detriment to policyholders as a result of this action,” Franks said. “No other syndicates or business lines, including Accident and Health business written through Syndicate 510, are affected by this decision. Further communications will be shared once these discussions have concluded.”
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