LLOYD S UPDATE Results and 2010 Capacity. Capital Access Advocacy Innovation

Size: px
Start display at page:

Download "LLOYD S UPDATE Results and 2010 Capacity. Capital Access Advocacy Innovation"

Transcription

1 LLOYD S UPDATE 2009 Results and 2010 Capacity redefining Capital Access Advocacy Innovation

2 About Aon Benfield As the industry leader in treaty, facultative and capital markets, Aon Benfield is redefining the role of the reinsurance intermediary and capital advisor. Through our unmatched talent and industry-leading proprietary tools and products, we help our clients to redefine themselves and their success. Aon Benfield offers unbiased capital advice and customized access to more reinsurance and capital markets than anyone else. As a trusted advocate, we provide local reach to the world s markets, an unparalleled investment in innovative analytics, including catastrophe management, actuarial, and rating agency advisory, and the right professionals to advise clients in making the optimal capital choice for their business. With an international network of more than 4,000 professionals in 50 countries, our worldwide client base is able to access the broadest portfolio of integrated capital solutions and services. Learn more at aonbenfield.com.

3 AON BENFIELD Contents Capital & Capacity Capacity and Lloyd s Strategy Syndicate New Entrants and Departures 5 Lloyd s Strategic Review Lloyd s 2009 Pro Forma Results 6 Balance Sheet 7 Investment Return 8 Underwriting Profit 9 Listed Integrated Lloyd s Vehicles (ILVs) 11 Balance Sheet 11 Investment Return 11 Underwriting Profit 12 Pre-Tax Profits 14 1Q 2010 Catastrophe Losses 15 Appendix 1 16 Business Split 16 Appendix 2 17 Capacity 17 Appendix 3 20 Lloyd s Market and Syndicate Ratings 20 Appendix 4 22 Lloyd s Chain of Security 22 Appendix 5 23 Realistic Disaster Scenarios (RDS) 23 3

4 LLOYD S UPDATE RESULTS & 2010 CAPACITY Capital & Capacity Lloyd s pro forma capital increased by 28% in 2009, rising to GBP18.2bn. Market estimates suggest that 1 January 2010 stamp capacity increased by 30%, largely due to the need to allow for the significant foreign exchange movements in 2008/9. Gross premiums written increased by 22%, or 8% in local currency terms, to GBP22bn. Reinsurance premiums accounted for 36% of the total, at GBP8bn. Pro forma pre-tax profits doubled to GBP3.9bn, reflecting in part a benign year for natural catastrophes and an 85% increase in the investment return. Lloyd s continues to pursue its stated ambition to be the market of choice, as reiterated in its Strategic Review for published in February During 2009, Lloyd s resolved the Equitas deal and saw its ratings affirmed by A.M. Best, Standard & Poor s and Fitch. As at Lloyd s, 2009 gross written premium growth for the listed Integrated Lloyd s Vehicles (ILVs) was, in general, assisted by foreign currency movements. The ILVs also benefited from improved rates on catastrophe exposed business lines, a relatively benign claims environment and improved investment returns, although this was partly offset by the negative impact of foreign exchange translation of non monetary liabilities. Shareholders funds for the nine listed ILVs increased by 24%, mainly reflecting capital raising by a number of the companies in late 2008 and early Both Lloyd s and a number of the ILVs remain cautious on the outlook for pricing in 2010, particularly given the replenishment of capital levels in the (re)insurance industry. The emphasis was on maintaining underwriting discipline until events result in a change in the pricing environment. To date, it appears that catastrophe losses announced in the first quarter of 2010 are unlikely to result in such a change. 4

5 AON BENFIELD 2010 Capacity and Lloyd s Strategy While Lloyd s no longer publishes capacity figures, market estimates have suggested that opening capacity for 2010 was 30% higher than in The increase was largely due to syndicates allowing for foreign exchange movements, as new capacity from 2010 start-ups was minimal in comparison to previous years. A key element of Lloyd s recently announced Strategic Review was the desire to improve access to the Lloyd s market. Syndicate New Entrants and Departures As detailed in Appendix 2, four new syndicates were formed for 1 January 2010, all by existing Lloyd s players. This was much fewer than the 12 new syndicates formed during 2009 to take advantage of the more attractive rate environment in some of Lloyd s key markets and diversification benefits of the Lloyd s franchise. As shown in Chart 1 capacity for the four new syndicates was GBP165mn, more than offsetting the GBP70mn of capacity lost as syndicate 2112 was placed into run-off. The departing syndicates, 1231 and 4040 have merged into syndicates 5820 and 4141 respectively. Chart 1 Syndicate New Entrants and Exits 2009/ Marlborough Commenced 1/1/2010 Argenta Commenced 1/1/2010 Beaufort Commenced 1/1/ Beazley Special Purpose Syndicate (SPS) Departures New Entrants Jubilee Merged with s.5820 HCC Merged with s.4141 Spectrum In run-off Capacity GBPmn Source: Lloyd s, Moody s, Company data, Aon Benfield Research Lloyd s Strategic Review On February 8, 2010, Lloyd s announced the completion of its Strategic Review. Stated aims were to maintain and develop the attractiveness of the Lloyd s brand, and to focus on underwriting discipline and risk management. In addition, the Corporation s priorities for 2010 were preparations for Solvency II, increased use of The Exchange, claims transformation and improving access to business through streamlining coverholder management. Richard Ward, Lloyd s Chief Executive Officer, placed particular emphasis on reiterating the strength of Lloyd s as a broker market and on the need for Lloyd s to take a more outward view 2. Lloyd s hopes that this greater external focus will enable it to achieve its stated aim to be the market of choice for specialist casualty and property risks while strengthening the position of London as a financial services centre. 1 Company Information, Moody s, Aon Benfield Research 2 Chief Executive Officer s Introduction, Lloyd s Strategy

6 LLOYD S UPDATE RESULTS & 2010 CAPACITY Lloyd s 2009 Pro Forma Results In line with trends experienced in the global reinsurance market, Lloyd s strong performance in 2009 reflected both the recovery of the financial markets and the low level of natural catastrophe losses in the period. As a result, Lloyd s experienced a 104% growth in pro forma pre-tax profits, and a 28% increase in its capital base. Table 1 Lloyd s Pro Forma Results GBPmn FY 2005 FY 2006 FY 2007 FY 2008 FY /08 Change Gross premiums written (GPW) 14,982 16,414 16,366 17,985 21,973 22% Reinsurance as % of GPW 21% 24% 19% 21% 22% 1pp Net premiums written 11,770 13,201 13,256 14,217 17,218 21% Net premiums earned 11,785 12,688 13,097 13,796 16,725 21% Net claims incurred 9,505 6,219 6,547 8,464 8,624 2% Net operating expenses 3,668 4,327 4,451 4,134 5,781 40% Underwriting result -1,388 2,142 2,099 1,198 2,320 94% Combined ratio 111.8% 86.0% 84.0% 91.3% 86.1% -5.2pp Pre-tax profit / loss ,662 3,846 1,899 3, % Net resources (incls sub debt) 10,992 13,333 14,461 15,264 19,121 25% Capital 10,491 12,836 13,449 14,182 18,163 28% Central assets 1,850 2,054 2,465 2,072 2,084 1% Pre-tax return on capital -1% 31% 29% 14% 24% 10pp Source: Lloyd s Chart 2 Pro Forma Results GBPbn % 30% 25% 20% 15% 10% 5% 0% -5% FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 Profit before tax (LH scale) Pre-tax return on capital (RH scale) Source: Lloyd s 6

7 AON BENFIELD Balance Sheet As Lloyd s is a partially mutualized market rather than an insurance company, it does not hold conventional equity. Instead, its capital base is comprised of members Funds at Lloyd s (FAL), Members Balances and Central Reserves. This increased by 28% in 2009 to GBP18.2bn. The main drivers of the increase were a 24% increase in FAL and a 51% increase in Members Balances, reflecting the improved profit contribution from the syndicates during The Central Reserves represent the mutual assets of Lloyd s and increased by 1% in 2009, to GBP1.1bn. Further details of the Lloyd s capital base can be found in Appendix 4. Syndicate premium assets comprise the largest proportion of invested assets for the Lloyd s market. As the syndicates are required to maintain a high level of liquidity, the majority of the investments are held in cash and short-term fixed interest securities. Chart 3 illustrates the composition of Lloyd s Market Invested Assets, which is generally unchanged from The breakdown of corporate bond ratings is also given in Chart 3. 70% of corporate bonds are rated AA or above, compared to 77% in Chart 3 Lloyd s Market Invested Assets 33% FY 2009 Total: GBP46.3bn 2% 2% 28% Cash and LOCs Corporate Bonds Government Bonds* Equities Alternative Investments 21% FY 2009 Corporate Bonds GBP16.2bn 9% 45% AAA AA A Below A 35% 25% *Includes supra nationals and government agencies Source: Lloyd s Chart 4 shows the asset split for the Society of Lloyd s (the Central Fund). This changed significantly during 2009, with corporate bonds increasing to 45% of the total, from 14% at the end of The shift in composition reflected the improvement in the corporate bond market during the year. There was a commensurate reduction in the level of government bonds within the portfolio, from 66% at December 31, 2008, to 35% at the end of

8 LLOYD S UPDATE RESULTS & 2010 CAPACITY Chart 4 Central Fund Assets 5% FY 2008 Central Fund Assets GBP2.1bn 6% 4% 2% 2% 1% 16% Fixed Income - Corporate Fixed Income - Government* Global Equity Hedge Funds Cash Emerging Markets & High Yield Bonds Property Equity 6% FY 2009 Central Fund Assets GBP2.1bn 3% 3%2% 2% 4% 45% 64% *Includes supra nationals and government agencies Source: Lloyd s Emerging Equity 35% Investment Return The pro forma accounts include a notional investment return on FAL, an investment return on central assets and syndicate investment return. This split is illustrated in Chart 5. The investment return includes both realized and unrealized investments. The improvement in the total investment return mainly reflects the recovery in corporate bond values. Chart 5 Investment Return GBPmn 2,500 2,000 1,500 1, Investment Return % 0 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 Investment Return on Society Assets (LH scale)* Notional Return on FAL (LH scale) Syndicate Investment Return (LH scale) Investment Return (RH scale) 0.0 Source: Lloyd s, Aon Benfield Research 8

9 AON BENFIELD Underwriting Profit As shown in Table 1, Lloyd s gross premiums written increased by 22% in Foreign currency movements accounted for 13 percentage points (pp) of this increase, giving a local currency increase in gross premiums written of 8%. Chart 6 shows the development of the combined ratio over the past three years. The 2009 accident year ratio, excluding catastrophes and prior year reserve movements, was 89.6%, compared to 87.8%. Excluding the impact of foreign exchange on non-monetary items, the accident year combined ratio fell to 87.3% in 2009 from 90.5% in Lloyd s benefited strongly from a benign hurricane season, particularly in the Gulf of Mexico. Catastrophe losses added only 2.1% (GBP347mn) to the combined ratio in 2009, compared to 12.7% (GBP1,750mn) in Chart 6 Lloyd s Pro Forma Combined Ratio 110% 90% 84.0% 91.3% 86.1% Combined ratio 70% 50% 30% 10% 86.7% 87.8% 89.6% -10% FY 2007 FY 2008 FY 2009 Accident year Catastrophes Net Prior Year Development Source: Lloyd s Chart 7 depicts the combined ratio by business category, while Chart 8 illustrates the reserve development by line of business. A split of business by 2009 gross premiums written is given in Appendix 1. In 2009, Reinsurance accounted for 36% of business written (2008: 35%). Property and Casualty accounted for a further 23% (23%) and 20% (21%). Prior year reserve releases benefited the combined ratio by 5.6% in 2009, down from 9.2% in Lloyd s flagged that future years are likely to see further reductions in the levels of release 3. 3 Lloyd s Annual Report,

10 LLOYD S UPDATE RESULTS & 2010 CAPACITY Chart 7 Combined Ratio by Business Line 130% Calendar year combined ratio Source: Lloyd s 120% 110% 100% 90% 80% 70% 60% 108.4% 97.1% 92.4% 90.8% 88.7% 84.1% 78.4% Energy Motor Property Casualty Aviation Marine Reinsurance Chart 8 Prior Year Reserve Adjustments Prior year reserve movement % 10% 5% 0% -5% -10% -15% -20% -25% 3.9% -3.4% -7.4% -6.2% -8.3% -5.8% -16.6% -30% Motor Property Marine Energy Casualty Reinsurance Aviation Source: Lloyd s 10

11 AON BENFIELD Listed Integrated Lloyd s Vehicles (ILVs) Due to a combination of capital raising and profit recovery in 2009, shareholders funds for the group increased 24% year on year. Premium growth benefited from currency movements, acquisitions and organic growth as the ILVs took advantage of available rate increases at the start of A benign claims environment, particularly in the Gulf of Mexico, combined with improved investment returns, generated strong profit growth for most of the ILVs, offsetting the negative impact of foreign exchange adjustments. Balance Sheet Table 2 shows shareholders funds of the listed ILVs. Total shareholders funds for the group increased by 24% in 2009, compared to 10% growth in However, there was considerable variation in growth between the companies, largely related to the extent to which each company raised capital in 2008/9. Beazley, Chaucer, Hardy and Omega raised the largest amount of capital relative to their equity base, and delivered the strongest growth in shareholders funds in Brit and Novae did not raise additional capital and therefore delivered the lowest levels of growth. While most of the ILVs stated that capital levels were above the level required, most commented that they wanted to hold additional capital to protect against severe losses and Solvency II. Capital redistribution was mentioned as a possibility if deemed to be in shareholders interests in future. Table 2 Shareholders Funds Company Reporting Currency 31/12/ /12/ /12/ /12/ /12/ /2008 Change Amlin GBPmn ,052 1,216 1,593 31% Beazley GBPmn % Brit GBPmn % Catlin USDmn 931 2,018 3,017 2,469 3,278 33% Chaucer GBPmn % Hardy GBPmn % Hiscox GBPmn ,121 18% Novae GBPmn % Omega USDmn % Source: Company data, Aon Benfield Research Investment Return Chart 9 illustrates the improvement in investment yield experienced by most of the ILVs in In line with the experience of Lloyd s and the Aon Benfield Aggregate companies 4, this recovery was largely driven by the recovery in the corporate bond market during the year. The strongest return on investments was demonstrated by Hiscox at 7.2% (2008: -1.3%), reflecting the recovery of corporate and asset-backed securities in the company s investment portfolio. In contrast, Hardy s relatively low return of 1.7% (5.2%) was indicative of its relatively high exposure to government backed securities, lower corporate bond holdings and absence of asset-backed securities. 4 The Aon Benfield Aggregate, Full year ended December 31, 2009, April

12 LLOYD S UPDATE RESULTS & 2010 CAPACITY Chart 9 Investment Return Investment Return (reported currency) 8% 6% 4% 2% 0% -2% -4% -6% -8% 7.2% 5.9% 5.9% 4.2% 4.3% 2.7% 3.0% 2.8% 1.7% Amlin Beazley Brit Catlin Chaucer Hardy Hiscox Novae Omega Source: Company data Underwriting Profit Premium growth was enhanced by currency movements in the year, and Table 3 shows gross premiums written for the listed ILVs for the last five years. Underlying growth rates in 2009, where available, are shown in Chart 10 and reflect both the improved rating environment at the start of the year and a number of acquisitions. The strongest growth was at Amlin, which benefited from the completion of its acquisition of Amlin Corporate Insurance in July 2009, and contributed EUR236mn to gross premiums written. Beazley benefited from a full year s contribution from Momentum Underwriting Management Ltd (acquired September 2008) and nine months contribution from First State (April 2009). Table 3 Gross Premiums Written Company Reporting Currency FY 2005 FY 2006 FY 2007 FY 2008 FY /2008 Change Amlin GBPmn 994 1,114 1,045 1,034 1,544 49% Beazley GBPmn ,116 27% Brit GBPmn 1,206 1,236 1,265 1,395 1,696 22% Catlin USDmn 1,387 1,605 3,361 3,437 3,715 8% Chaucer GBPmn % Hardy GBPmn % Hiscox GBPmn 861 1,126 1,199 1,147 1,435 25% Novae GBPmn % Omega USDmn % Source: Company data, Aon Benfield Research 12

13 AON BENFIELD Chart 10 Growth in Gross Premiums Written Amlin Hardy Beazley Hiscox Brit Novae Chaucer Catlin Omega GPW growth At constant exchange rates 0% 10% 20% 30% 40% 50% 60% Source: Company data, Aon Benfield Research % Change 2009 was a relatively benign year for natural catastrophe claims and seven out of the nine ILVs saw an improvement in their combined ratio. As illustrated by Table 4, Omega and Hardy posted the biggest improvements, with falls in their combined ratios of 20pp and 13pp respectively. These reflected lower claims ratios due to the lack of U.S. hurricane activity. Only Novae saw its combined ratio increase as it was affected by insurance credit and aviation losses in the first half of 2009, most notably Air France. Table 4 Combined Ratios Company FY 2005 FY 2006 FY 2007 FY 2008 FY /2008 Change Amlin 82.0% 72.0% 63.0% 76.0% 72.0% -4.0pp Beazley 105.0% 88.0% 90.0% 90.0% 90.0% 0.0pp Brit 105.2% 86.9% 92.7% 96.4% 94.0% -2.4pp Catlin 103.1% 88.2% 84.1% 95.0% 89.1% -5.9pp Chaucer 101.5% 84.7% 82.6% 93.9% 93.0% -0.9pp Hardy 92.7% 76.9% 80.5% 91.2% 78.1% -13.1pp Hiscox 96.0% 89.1% 84.4% 91.6% 82.2% -9.4pp Novae 104.1% 82.5% 91.7% 100.4% 105.0% 4.6pp Omega 93.2% 78.8% 79.3% 101.4% 81.4% -20.0pp Source: Company data, Aon Benfield Research All the listed ILVs continued to benefit from the reserve releases in 2009, as illustrated by Table 5. However, for the majority of companies the level of releases was below those seen in Amlin released the highest level of prior year reserves relative to its net premiums earned, at 13.2%. This reflected a number of factors, including an adjustment in the reserving approach to Fleet Motor and Liability classes, reserve releases of EUR19mn from Amlin Corporate Insurance, the finalization of a number of large claims settlements and a generally better than expected claims development. The majority of Novae s prior year reserve releases were from the years of account. 13

14 LLOYD S UPDATE RESULTS & 2010 CAPACITY Table 5 Reserve Releases Company Reporting Currency FY 2007 FY 2007 as % of NPE FY 2008 FY 2008 as % of NPE FY 2009 FY 2009 as % of NPE Amlin GBPmn % % % Beazley GBPmn % % % Brit GBPmn % % % Catlin USDmn % % % Chaucer GBPmn % % % Hardy GBPmn % % % Hiscox GBPmn % % % Novae GBPmn % % % Source: Company data, Aon Benfield Research Pre-Tax Profits Pre-tax profit for the listed ILVs experienced a dramatic turnaround in 2009, with the total for the group increasing by 241%. However, the numbers were distorted in both 2008 and 2009 by exchange translation difference, largely caused by the weakness in sterling over the period. Overall, this resulted in a negative impact of GBP238mn on pretax profits in 2009 in the foreign exchange translation of net-non monetary liabilities 5. This contrasts with a GBP255mn benefit to pre-tax profits for the 2008 full year. Declines in profits at Hardy and Novae primarily resulted from the lower investment return and increased combined ratio in each case. Table 6 Pre-tax Profit / Loss Company Reporting Currency FY 2005 FY 2006 FY 2007 FY 2008 FY /2008 Change Amlin GBPmn % Beazley GBPmn % Brit GBPmn % Catlin USDmn % Chaucer GBPmn % Hardy GBPmn % Hiscox GBPmn % Novae GBPmn % Omega USDmn % Source: Company data, Aon Benfield Research 5 The exchange difference on net non-monetary liabilities arises from translation of unearned premium reserves, deferred reinsurance expenditure and deferred acquisition costs at historical rates, whereas all other related balance sheet items are translated at the closing exchange rates. 14

15 AON BENFIELD 1Q 2010 Catastrophe Losses To date, eight of the nine ILVs have reported estimated losses from 1Q 2010 catastrophes, as summarized in Table 7. The combined estimated loss for the ILVs from the Chilean earthquake and Windstorm Xynthia is currently USD687mn, or 6.1% of 2009 shareholders funds. This stands in comparison to a combined estimate of 2.9% of total shareholders funds for all major reinsurers who have announced loss estimates to date. Substantially all of the loss estimates announced by the ILVs are related to the Chilean earthquake, with little or no exposure reported to Windstorm Xynthia. Assuming an industry loss estimate of USD10bn for the Chilean earthquakes, and applying a 10% share as a guideline for Lloyd s share of an industry loss of this nature, then discounting this figure by 50% for reinsurance recoveries, suggests a maximum loss of GBP500mn for Lloyd s, or 2.8% of its capital base. Table 7 1Q Catastrophe Losses for the ILVs USDmn SHF at 31/12/2009 Chile & Xynthia Combined Loss Estimate Combined Loss as % SHF Comments Amlin 2, % Net catastrophe excess of loss of USD142mn - USD165mn, based on market loss of USD3.9bn - USD7.7bn Beazley % Net loss in the range of USD55mn - USD75mn. Does not expect Xynthia to have a material impact on the group's results Brit 1, % Pre-tax, net of reinsurance and reinstatement premiums. Based on market loss of USD6bn Catlin 3, % Net of reinsurance and reinstatements. Xynthia loss expected to be less than USD10mn Chaucer % Net loss, combined Chile & Xynthia loss GBP25mn, limited exposure to Xynthia Hardy % Net loss estimate in the range of USD27.5mn - USD37.5mn Hiscox 1, % Net loss Omega % Net loss. Based on market estimate of USD5.5bn - USD8.5bn Source: Company announcements, Aon Benfield Research 15

16 LLOYD S UPDATE RESULTS & 2010 CAPACITY Appendix 1 Business Split Chart 11 Business Mix by Region 2009 Gross Premiums Written GBP22bn 6% 4% 16% 9% 45% US & Canada UK Europe Asia/Africa Other Americas Rest of World 20% Source: Lloyd s Chart 12 Business Mix by Class 2009 Gross Premiums Written GBP22bn 7% 20% 6% 5% 3% 36% Reinsurance Property Casualty Marine Energy Motor Aviation 23% Source: Lloyd s 16

17 AON BENFIELD Appendix 2 Capacity Table New Entrants Syndicate Number Managing Agent 2010 Indicative Capacity GBPmn Comments 1110 Argenta Syndicate Management Ltd 53.0 Commenced underwriting 1/1/ Marlborough Underwriting Agency Limited 64.0 New Flagstone Syndicate commenced underwriting 1/1/ Beaufort Underwriting Agency Limited 33.0 New Munich Re Syndicate commenced underwriting 1/1/ Beazley Furlonge Limited 15.0 SPS writing QS of s.623/2623 worldwide catastrophe reinsurance account Total Source: Company Information, Aon Benfield Research, Moody s Table Departures Syndicate Number Managing Agent 2009 Capacity GBPmn Comments 1231 Jubilee Managing Agency Limited 45.0 Merged into s Spectrum Syndicate Management Limited 70.0 In run-off from end HCC Underwriting Agency Limited 53.9 Merged into s Capita Managing Agency Limited n.a. RITC syndicate in run-off Total Source: Company Information, Aon Benfield Research, Moody s Chart 13 Number of Syndicates and Average Estimated Capacity as at 1 January 2010 GBPmn E Average syndicate capacity (LH scale) Number of syndicates (RH scale) Source: Company Information, Moody s, Aon Benfield Research Number of managing agents (RH scale) Number of syndicates 17

18 LLOYD S UPDATE RESULTS & 2010 CAPACITY Chart 14 Stamp 1 Capacity as at 1 January GBPbn E Stamp 1 capacity Source: Company Information, Moody s, Aon Benfield Research Chart 15 Sources of Capacity GBPbn E Names (unlimited liability) Individual members (limited liability) UK listed and other corporate Bermudian insurance industry US insurance industry Worldwide insurance industry Source: Lloyd s, Company Data, Moody s, Aon Benfield Research 18

19 AON BENFIELD Chart 16 Estimated 2010 Capacity for Ten Largest Syndicates 1414 (Ascot Underwriting) 1084 (Chaucer) 2987 (Brit) 2623 (Beazley Furlonge) 4472 (Liberty) 510 (R J Kiln) 2999 (QBE) 33 (Hiscox) 2001 (Amlin) 2003 (Catlin) E Source: Company Information, Moody s, Aon Benfield Research, ,000 1,200 1,400 1,600 GBPmn 19

20 LLOYD S UPDATE RESULTS & 2010 CAPACITY Appendix 3 Lloyd s Market and Syndicate Ratings The Lloyd s market ratings are shown in Table 10 and apply to all business written by all syndicates, and consequently to all policies issued by Lloyd s from the 1993 year of account onwards. Table 10 Ratings for Lloyd s Market Rating Outlook Action A.M. Best A+ (Excellent) Stable Affirmed July 13, 2009 Fitch A+ Stable Affirmed July 23, 2009 Standard & Poor's A+ (Strong) Stable Affirmed August 12, 2009 Source: Rating Agencies While all syndicates benefit from the Lloyd s market ratings above, some syndicates are also rated or graded individually by the rating agencies. Table 11 lists those syndicates which currently carry either an A.M. Best Financial Strength Rating (FSR), Moody s Continuity Opinion (CO) and/or Lloyd s Syndicate Assessment (LSA) grade by Standard & Poor s. The major syndicates of each of the listed integrated Lloyd s vehicles (ILVs) are highlighted. Table 11 Current Lloyd s Syndicate Ratings Syndicate Number Managing Agent A.M. Best FSR Moody s CO S&P LSA 33 Hiscox Syndicates Ltd A s A- NA 218 Equity Syndicate Management Ltd NR A- NA 260 KGM Underwriting Agencies Ltd NR C+ 1pi 308 R J Kiln and Co Ltd NR B 2pi 318 Beaufort Underwriting Agency Ltd NR B+ 2pi 382 Hardy (Underwriting Agencies) Ltd A s B+ 3pi 386 QBE Underwriting Ltd NR A 5/Stable 435 Faraday Underwriting Ltd NR B+ 3pi 457 Munich Re Underwriting Ltd NR B 3pi 510 R J Kiln and Co Ltd A s A- 4pi 557 R J Kiln and Co Ltd NR A- 3pi 570 Atrium Underwriters Ltd A s A- NA 609 Atrium Underwriters Ltd A s A- NA 623 Beazley Furlonge Ltd A s A- 4/Stable 727 S A Meacock & Co Ltd NR B 2pi 779 Jubilee Managing Agency Ltd NR B+ 2pi 780 Advent Underwriting Ltd NR B- 2+/Stable 807 R J Kiln and Co Ltd NR B 3pi 958 Omega Underwriting Agents Ltd A s B+ 3pi 1084 Chaucer Syndicates Ltd A s B+ 3/Stable 1176 Chaucer Syndicates Ltd NR A- 3pi /2 20

21 AON BENFIELD Table 11 Current Lloyd s Syndicate Ratings (cont d) Syndicate Number Managing Agent A.M. Best FSR Moody s CO S&P LSA 1183 Talbot Underwriting Ltd NR B+ NA 1200 Argo Managing Agency NR NR 3pi 1206 Sagicor at Lloyd's Ltd NR B- 1pi 1209 XL London Market Ltd NR B NA 1218 Newline Underwriting Management Ltd NR NR 2pi 1221 Navigators Underwriting Agency Ltd NR B+ NA 1225 AEGIS Managing Agency Ltd A s NR 3pi 1301 Chaucer Syndicates Ltd NR NR 2pi 1414 Ascot Underwriting Ltd NR NR 3pi 1965 Argenta Syndicate Management Ltd NR NR NA 2001 Amlin Underwriting Ltd A+ s A 4/Stable 2003 Catlin Underwriting Agencies Ltd A s B+ 4/Stable 2007 Novae Syndicates Ltd A s B 3-/Stable 2010 Cathedral Underwriting Agencies Ltd A s NR 3pi 2468 Marketform Managing Agency Ltd NR 2pi 2488 ACE Underwriting Agencies Ltd NR A- NA 2623 Beazley Furlonge Ltd A s A- 4/Stable 2791 Managing Agency Partners Ltd NR NR 4pi 2987 Brit Syndicates Ltd NR B 3pi 2999 QBE Underwriting Ltd NR B+ 4-/Stable 3000 Markel Syndicate Management Ltd A s A- 3pi 3210 Mitsui Sumitomo Insurance Underwriting at Lloyd's Ltd NR B+ NA 3334 Sportscover Underwriting Ltd NR NR 1pi 3622 Beazley Furlonge Ltd A s NR 4/Stable 3623 Beazley Furlonge Ltd A s NR 4/Stable 4040 HCC Underwriting Agency Ltd NR NR 2pi 4444 Canopius Managing Agents Ltd NR B- 3-/Stable 4472 Liberty Syndicate Management Ltd NR B NA 5000 Travelers Syndicate Management Ltd NR NR 3-/Stable 5151 Montpelier Underwriting Agencies Ltd NR NR 3-/Stable pi = Syndicate is assessed on a public information basis S&P LSAs are based on the level of dependency a syndicate has on Lloyd's: 1 = very high dependency; 5= very low dependency NA = not assessed; NR = not rated All ratings current as at 12 April 2010 Source: A.M. Best, Moody s, Standard & Poor s 21

22 LLOYD S UPDATE RESULTS & 2010 CAPACITY Appendix 4 Lloyd s Chain of Security Lloyd s security consists of three links in what is called the Chain of Security as shown in Chart 17. The three links are: 1. Syndicate assets: Premium Trust Funds (PTFs) of GBP37.4bn. PTFs consist of premiums for a given year of account managed under trust by the Managing Agent. All claims pertinent to that year of account are paid out of the relevant PTF. There are separate PTFs held for life and non-life lines of business, and also for business written overseas in currencies other than sterling. 2. Members assets: Funds at Lloyd s (FAL) of GBP13.2bn. Capital requirements for each member are determined through the Individual Capital Assessment (ICA) whereby each syndicate states how much capital it requires to cover the underlying business risks. This is agreed with the corporation and then uplifted (by 35% in 2009) to ensure extra capital is in place to support Lloyd s ratings and financial strength. This uplifted ICA is known as the Economic Capital Assessment (ECA). Assets supporting FAL requirements must be liquid but may include letters of credit and bank guarantees. 3. Central resources of the Society. The net assets of the Society as at 31 December 2009 were GBP1.1bn, which included Central Fund net assets of GBP983mn. Syndicate loans, introduced in 2005, have now been replaced with a second tranche of subordinated debt that, together with the 2005 issue, totals GBP958mn and brings central resources to GBP2.1bn. The Council can also call from members PTFs an amount up to 3% of a member s premium limits in aggregate in any one year. The Council of Lloyd s regularly reviews the central assets target and level of contribution. The current target for unencumbered central assets is a minimum of GBP1.7bn. The contribution rate remains at 0.5% of gross premiums written for Chart 17 Assets at Lloyd s as at 31 December 2009 Central Assets Subordinated Debt GBP958mn Central Fund GBP983mn Corporation Assets GBP143mn Callable Layer (=3%) GBP683mn Members' Assets Syndicate Assets Funds at Lloyd's (underlying capital set by Lloyd's) GBP13,159mn Premium Trust Funds GBP37,400mn Several assets Mutual assets Contingent Source: Lloyd s 22

23 AON BENFIELD Appendix 5 Realistic Disaster Scenarios (RDS) Lloyd s has developed a number of Realistic Disaster Scenarios (RDSs) to stress test both individual syndicates and the market as a whole to see how they stand up to exposure to extreme events. These event scenarios are detailed each year by Lloyd s and used to assess both aggregate market exposures and the exposure of each syndicate to those specific events. Every syndicate is required to prepare syndicate-specific scenarios according to the type of business it writes. For Lloyd s, the RDSs form an input to capital setting and facilitate the monitoring of aggregated exposure to specific catastrophe scenarios at a market level on a gross and net basis. This enables Lloyd s to understand existing reinsurance protections and profile prospective reinsurance assets. The current 18 scenarios are listed in Table 12. Table 12 Realistic Disaster Scenarios Industry Loss Generic Scenarios subject to de-minimus tests Specific Event-Based Scenarios 2008 USDbn 2009 USDbn 2010 USDbn 1 Marine Event 9 Two Event Loss of Major Complex 10 Florida Windstorm Aviation Collision 11 California Earthquake Satellite Risks 12 New Madrid Earthquake Liability Risks 13 European Windstorm Political Risks 14 Japanese Earthquake Alternative RDS: A 15 Terrorism n.a. n.a. n.a. 8 Alternative RDS: B 16 Gulf of Mexico Windstorm Japanese Typhoon UK Flood n.a. 6* 6* *UK Flood estimates in GBPbn Source: Lloyd s The offshore component of the Gulf of Mexico Windstorm RDS has been altered for 2010 to an estimated industry loss of USD4bn (2009: USD5.5bn) due to higher retentions and tighter limits for wind cover sold. All other eventbased scenarios remain relatively unchanged. Reflecting its awareness of emerging risks and the potential effects of climate change, Lloyd s added a major UK flood to its set of RDSs for The scenario is based on heavy rainfall resulting in extensive flooding of the River Thames from Oxford to Teddington, with secondary flooding on the River Colne from Ruislip south, and surface flooding on the western and southern edges of Heathrow. The total flood area covers 194 square kilometers and would impact the towns of Oxford, Reading, Slough, Henley and parts of west London. The UK flood RDS generates an estimated industry insured loss of GBP6.2bn. Of this, GBP4.5bn relates to residential losses and GBP1.6bn to commercial losses. 23

24 Should you have questions about this report, please do not hesitate to contact a member of the Aon Benfield Analytics team, including: Kathryn Moyse kathryn.moyse@aonbenfield.com t: +44 (0) Eleanore Obst eleanore.obst@aonbenfield.com t: +44 (0) Aon Benfield Research AonBenfieldResearch@aonbenfield.com t: +44 (0) Aon Limited trading as Aon Benfield (for itself and on behalf of each subsidiary company of Aon Corporation) ( Aon Benfield ) reserves all rights to the content of this report ( Report ). This Report is for distribution to Aon Benfield and the organisation to which it was originally delivered only. Copies may be made by that organisation for its own internal purposes but this Report may not be distributed in whole or in part to any third party without both (i) the prior written consent of Aon Benfield. and (ii) the third party having first signed a recipient of report letter in a form acceptable to Aon Benfield. Aon Benfield cannot accept any liability to any third party to whom this Report is disclosed, whether disclosed in compliance with the preceding sentence of otherwise. To the extent this Report expresses any recommendation or assessment on any aspect of risk, the recipient acknowledges that any such recommendation or assessment is an expression of Aon Benfields opinion only, and is not a statement of fact. Any decision to rely on any such recommendation or assessment of risk is entirely the responsibility of the recipient. Aon Benfield will not in any event be responsible for any losses that may be incurred by any party as a result of any reliance placed on any such opinion. The recipient acknowledges that this Report does not replace the need for the recipient to undertake its own assessment. The recipient acknowledges that in preparing this Report Aon Benfield may have based analysis on data provided by the recipient and/or from third party sources. This data may have been subjected to mathematical and/or empirical analysis and modelling. Aon Benfield has not verified, and accepts no responsibility for, the accuracy or completeness of any such data. In addition, the recipient acknowledges that any form of mathematical and/or empirical analysis and modelling (including that used in the preparation of this Report) may produce results which differ from actual events or losses. The Aon Benfield analysis has been undertaken from the perspective of a reinsurance broker. Consequently this Report does not constitute an opinion of reserving levels or accounting treatment. This Report does not constitute any form of legal, accounting, taxation, regulatory or actuarial advice. 3

25 55 Bishopsgate, London, EC2N 3BD t: +44 (0) f: +44 (0) Copyright Aon Limited trading as Aon Benfield 2009 #3979-4/2010

Lloyd s Update. Interim Management Statements. Nine months ended September 30, Capital Access Advocacy Innovation

Lloyd s Update. Interim Management Statements. Nine months ended September 30, Capital Access Advocacy Innovation Lloyd s Update Interim Management Statements Nine months ended September 30, 2009 redefining Capital Access Advocacy Innovation About Aon Benfield As the industry leader in treaty, facultative and capital

More information

Lloyd s Update. Capital Additions June 2009

Lloyd s Update. Capital Additions June 2009 Lloyd s Update Capital Additions June 2009 Contents Capital Additions 2 New Capacity, Capital and Pricing Trends 3 2009 Capacity 3 Capital Raising 4 2009 Pricing and Income Trends 4 Lloyd s 2008 Pro Forma

More information

Lloyd s Update. Evolution. October Capital Access Advocacy Innovation

Lloyd s Update. Evolution. October Capital Access Advocacy Innovation Lloyd s Update Evolution October 2009 redefining Capital Access Advocacy Innovation About Aon Benfield As the industry leader in treaty, facultative and capital markets, Aon Benfield is redefining the

More information

Lloyd s Update. October Capital Access Advocacy Innovation

Lloyd s Update. October Capital Access Advocacy Innovation Lloyd s Update October 2010 redefining Capital Access Advocacy Innovation Contents 3 Executive Summary 4 2010 Interim Results 9 Outlook for 2011 10 Appendix About Aon Benfield As the industry leader in

More information

The Aon Benfield Aggregate. Full Year Ended December 31, 2010

The Aon Benfield Aggregate. Full Year Ended December 31, 2010 The Aon Benfield Aggregate Full Year Ended December 31, 2010 Contents Global Reinsurer Capital 3 Executive Summary 4 First Quarter 2011 Outlook 4 Aon Benfield Aggregate Capital 5 Capital Development 6

More information

THE AON BENFIELD AGGREGATE

THE AON BENFIELD AGGREGATE THE AON BENFIELD AGGREGATE Nine months ended September 30, 2009 redefining Capital Access Advocacy Innovation AON BENFIELD Contents Capital Recovery 4 Balance Sheet 5 Shareholders Funds 5 Income 10 Premium

More information

THE AON BENFIELD AGGREGATE

THE AON BENFIELD AGGREGATE THE AON BENFIELD AGGREGATE Glass Half Full 1H 2009 redefining Capital Access Advocacy Innovation AON BENFIELD Contents Glass Half Full 4 Balance Sheet 5 Shareholders Funds 5 Invested Assets 8 Income 11

More information

Interim results Six months to 30 June 2006

Interim results Six months to 30 June 2006 Interim results Six months to 30 June 2006 Disclaimer This document and the presentation to which it relates ( Presentation ) do not constitute or form part of, and should not be construed as, an issue

More information

Lloyd s Update. July Empower ResultsTM

Lloyd s Update. July Empower ResultsTM Lloyd s Update July 2014 Empower ResultsTM Contents Executive Summary 3 2014 Market Capacity 4 Top 10 Syndicates 4 New Entrants 5 Mergers & Acquisitions 5 Lloyd s Strategy 6 Management Changes 6 Regulatory

More information

Aon Benfield. Analytics Market Analysis. Lloyd s Update. October Risk. Reinsurance. Human Resources.

Aon Benfield. Analytics Market Analysis. Lloyd s Update. October Risk. Reinsurance. Human Resources. Aon Benfield Analytics Market Analysis Lloyd s Update October 2015 Risk. Reinsurance. Human Resources. Table of Contents Executive Summary... 3 Lloyd s 1H 2015 Results... 3 Looking Ahead to 2016... 3 2015

More information

MarketReView Newsletter

MarketReView Newsletter MarketReView Newsletter Issue #7 July 2015 Welcome to the latest edition of Aon Benfield s monthly MarketReView newsletter. The team continues to update the reinsurer profiles on MarketReView as financials

More information

The Aon Benfield Aggregate

The Aon Benfield Aggregate Aon Benfield Analytics Market Analysis The Aon Benfield Aggregate Results for the six months ended June 30, 2015 Risk. Reinsurance. Human Resources. Table of Contents Global Reinsurer Capital... 3 Executive

More information

Australia and New Zealand

Australia and New Zealand Executive Summary July 1 Renewals Update Catastrophe reinsurance pricing decreased moderately more aggressively for higher margin U.S. business than witnessed at January and June renewals. Catastrophe

More information

Syndicate Business Forecasts

Syndicate Business Forecasts Novae Syndicates Limited Syndicate Business Forecasts February 2009 Introduction The business plan information summarised here relates solely to Syndicate 2007 managed by Novae Syndicates Limited. Most

More information

Aon Benfield. Analytics Market Analysis. Lloyd s Update. August Risk. Reinsurance. Human Resources.

Aon Benfield. Analytics Market Analysis. Lloyd s Update. August Risk. Reinsurance. Human Resources. Aon Benfield Analytics Market Analysis Lloyd s Update August 2016 Risk. Reinsurance. Human Resources. Table of Contents Executive Summary... 3 Regulation and Governance... 4 Regulatory Framework... 4 The

More information

May 16 th, 2011 The Breakers

May 16 th, 2011 The Breakers The State of the Property Reinsurance Market Casualty Actuarial Society May 16 th, 2011 The Breakers Palm Beach Florida Agenda Section 1 Insurance Impact of Tōhoku Earthquake Section 2 Reinsurance Market

More information

eyes on the future Feet on the ground

eyes on the future Feet on the ground eyes on the future Feet on the ground 4US & our business Lloyd s is licensed to underwrite business in 79 territories and can accept risks proposed from over 200 countries and territories in accordance

More information

2016 Annual Results. Lloyd s

2016 Annual Results. Lloyd s 2016 Annual Results Lloyd s Disclaimer This information is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary

More information

MarketReView Newsletter

MarketReView Newsletter Aon Benfield Analytics Market Analysis MarketReView Newsletter Issue #18 December 2016 Welcome to the latest edition of Aon Benfield s MarketReView Newsletter, covering events in the final quarter of 2016.

More information

2017 Interim Results. Analyst Presentation. Lloyd s

2017 Interim Results. Analyst Presentation. Lloyd s 2017 Interim Results Analyst Presentation Lloyd s Disclaimer This information is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution

More information

Aon Risk Solutions Aon Broking. London Market Review Property & Casualty

Aon Risk Solutions Aon Broking. London Market Review Property & Casualty Aon Risk Solutions Aon Broking London Market Review 2013 Contents. Introduction 1 U.S. Property 3 Trends Capacity Post Tropical Cyclone Sandy International Property 7 Trends Capacity Mining and Metal Industries

More information

2007 annual results. 03 April 2008

2007 annual results. 03 April 2008 2007 annual results 03 April 2008 Lloyd s market reports record performance in 2007 m 2006 2007 Gross written premiums 16,414 16,366 Profit before tax 3,662 3,846 Combined ratio 83.1% 84.0% Return on capital

More information

Global Reinsurance Solutions. GIC Re. Your Partner In Risk. General Insurance corporation of India

Global Reinsurance Solutions. GIC Re. Your Partner In Risk. General Insurance corporation of India Global Reinsurance Solutions GIC Re Your Partner In Risk General Insurance corporation of India 1 Vision & Mission Vision To be a Leading Global Reinsurance and Risk Solution Provider Mission Building

More information

Lloyd s seminar Mumbai. Tuesday 7 February 2012

Lloyd s seminar Mumbai. Tuesday 7 February 2012 Lloyd s seminar Mumbai Tuesday 7 February 2012 The Lloyd s Offering to the Indian Insurance Market Jose Ribeiro, Director, International Markets - Lloyd s Explaining the Lloyd s Model Ed Pennock, Manager,

More information

Bermuda Quarterly 9M 2008 Bittersweet December 2008

Bermuda Quarterly 9M 2008 Bittersweet December 2008 Bermuda Quarterly 9M 2008 Bittersweet December 2008 Aon Benfield 1 December 2008 Bermuda Quarterly 9M 2008 Bittersweet Angela Coad T:+44 (0)207 522 8137 F:+44 (0)207 578 7001 angela.coad@aonbenfield.com

More information

Benfield European Quarterly 1H 2008 Challenging Times October 2008

Benfield European Quarterly 1H 2008 Challenging Times October 2008 Benfield European Quarterly 1H 2008 Challenging Times October 2008 BENFIELD GROUP LTD October 2008 Benfield European Quarterly 1H 2008 Challenging Times Lewis Phillips T: +44 (0)20 7522 8207 F: +44 (0)20

More information

lloyd s Chain of security 2009 three layers of financial back-up

lloyd s Chain of security 2009 three layers of financial back-up lloyd s Chain of security 2009 three layers of financial back-up chain of security s strength with stability several assets first second syndicate level assets 38,306m members funds At lloyd s 10,630m

More information

Insurance. Lloyd s of London. Reinsurers / United Kingdom. Full Rating Report. Key Rating Drivers. Rating Sensitivities. Ratings

Insurance. Lloyd s of London. Reinsurers / United Kingdom. Full Rating Report. Key Rating Drivers. Rating Sensitivities. Ratings Reinsurers / United Kingdom Full Rating Report Ratings Insurer Financial Strength Rating AA The Society of Lloyd s Long-Term IDR A+ Subordinated debt A Lloyd s Insurance Company (China) Ltd Insurer Financial

More information

Canopius Managing Agents - Syndicate 4444

Canopius Managing Agents - Syndicate 4444 January 23, 2009 Canopius Managing Agents - Syndicate 4444 Primary Credit Analyst: Eoin Naughton, London (44) 20-7176-7047; eoin_naughton@standardandpoors.com Secondary Credit Analyst: Kevin Willis, London

More information

International Property Treaty

International Property Treaty HOUNDSDITCH BANK THREADNEEDLE ST OLD BROA D S T REE T THREADNEEDLE ST B I S S H O P G A T E C O R N H I L L L E A D E N H A L L CAMOMILE STREET ST, MARY AXE S T R E E T LOMBARD ST KING WILLIAM ST CANNON

More information

RenaissanceRe. Casualty Treaty

RenaissanceRe. Casualty Treaty Syndicate 1458 Casualty Treaty Syndicate 1458 Casualty Treaty operates at Lloyd s of London through Syndicate 1458, which was established in 2009. is a leading global provider of property catastrophe and

More information

Citi conference - 25 October 2011

Citi conference - 25 October 2011 QBE INSURANCE GROUP Citi conference - 25 October 2011 Presented by: Neil Drabsch, Group CFO Frequently asked questions Insurance/reinsurance pricing and market conditions Acquisitions and growth - QBE

More information

Overview of S&P s Request for Comment: Insurers: Rating Methodology

Overview of S&P s Request for Comment: Insurers: Rating Methodology Aon Benfield Analytics Overview of S&P s Request for Comment: Insurers: Rating Methodology July 2012 General Overview On July 9, 2012, Standard & Poor s (S&P) released a Request for Comment (RFC) that

More information

Executive Summary: Capacity Builds Ahead of Mid-Year Renewals 1. Global Reinsurer Capital 2. Growth despite catastrophes 2

Executive Summary: Capacity Builds Ahead of Mid-Year Renewals 1. Global Reinsurer Capital 2. Growth despite catastrophes 2 Contents Executive Summary: Capacity Builds Ahead of Mid-Year Renewals 1 Global Reinsurer Capital 2 Growth despite catastrophes 2 The Aon Benfield Aggregate 2017 Results 3 The ABA in context 3 ABA capital

More information

RenaissanceRe. Casualty Insurance

RenaissanceRe. Casualty Insurance Syndicate 1458 Casualty Insurance Syndicate 1458 Casualty Insurance is a leading global provider of property catastrophe and specialty reinsurance, as well as other insurance coverages. Founded in Bermuda

More information

the world s leading specialist insurance market

the world s leading specialist insurance market 62 syndicates Provide specialist insurance 200 Territories A leading global insurer and reinsurer 89% OF FTSE 100 Insure with Lloyd s the world s leading specialist insurance market 10 Lloyd s marketplace

More information

Underwriting comes first. Effectively balance risk and return. Operate nimbly through the cycle. Analyst Presentation Q3 2017

Underwriting comes first. Effectively balance risk and return. Operate nimbly through the cycle. Analyst Presentation Q3 2017 Underwriting comes first Effectively balance risk and return Operate nimbly through the cycle Analyst Presentation Q3 2017 November 2017 www.lancashiregroup.com Safe harbour statements NOTE REGARDING FORWARD-LOOKING

More information

Post July 2013 Renewal Update

Post July 2013 Renewal Update Catastrophe Reinsurance Post July 213 Renewal Update 1 July 213 Australian and New Zealand Catastrophe reinsurance renewals saw an additional AUD1.2 billion of vertical catastrophe reinsurance purchased

More information

Hiscox Ltd Preliminary results. For the year ended 31 December 2015

Hiscox Ltd Preliminary results. For the year ended 31 December 2015 Hiscox Ltd Preliminary results For the year ended 31 December 2015 A good year Premium growth of 10.7% (2014: 3.3%) Hiscox Retail now 50% of Group GWP Profit before tax 216.1m (2014: 231.1m) Combined ratio

More information

Beazley Group plc Analysts Presentation RDS/Catastrophe Stress Testing

Beazley Group plc Analysts Presentation RDS/Catastrophe Stress Testing Beazley Group plc Analysts Presentation RDS/Catastrophe Stress Testing 4 July 2005 Content Introduction Natural Catastrophe Specialty Lines Offshore Energy Account Conclusion Looking Forward! Content Introduction

More information

Hiscox Ltd Interim results. For the six months ended 30 June 2017

Hiscox Ltd Interim results. For the six months ended 30 June 2017 Hiscox Ltd Interim results For the six months ended 30 June 2017 A good result with FX headwinds Gross written premiums up by 13 Profit before tax excluding FX 133m (2016: 119m) Combined ratio excluding

More information

Beazley Furlonge Ltd. - Syndicate 0623/2623/3622/3623

Beazley Furlonge Ltd. - Syndicate 0623/2623/3622/3623 October 4, 2011 Beazley Furlonge Ltd. - Syndicate 0623/2623/3622/3623 Primary Credit Analyst: Ali Karakuyu, London (44) 20-7176-7301; ali_karakuyu@standardandpoors.com Secondary Contact: Nigel Bond, London

More information

MULTI-LINE REINSURANCE

MULTI-LINE REINSURANCE MULTI-LINE REINSURANCE SPECIALTY LINES PROPERTY PROPERTY CATASTROPHE FLAGSTONE RÉASSURANCE SUISSE SA - BERMUDA BRANCH Important Facts Flagstone Réassurance Suisse SA - Bermuda Branch is a wholly owned

More information

Reinsurance Market Update June 1 - Florida

Reinsurance Market Update June 1 - Florida Reinsurance Market Update June 1 - Florida Catastrophe reinsurance renewal pricing covering risks in Florida at June 1 increased by 10 to 15 percent. The June 1 renewal date is most significant in the

More information

2018 Interim Results. Analyst Presentation 21 September Lloyd s

2018 Interim Results. Analyst Presentation 21 September Lloyd s 2018 Interim Results Analyst Presentation 21 September 2018 Lloyd s Disclaimer This information is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where

More information

Homeowners' ROE Outlook

Homeowners' ROE Outlook Aon Benfield Homeowners' ROE Outlook Growth. Divergent Markets. Technological Innovation. October 7 Homeowners: Growth. Divergent Markets. Technological Innovation. The estimated prospective ROE for homeowners

More information

< Picture to go here > Lloyd s in Poland. Main Facts Witold Janusz, Lloyd s Country Manager to Poland. Meet the Market, 24 October 2013.

< Picture to go here > Lloyd s in Poland. Main Facts Witold Janusz, Lloyd s Country Manager to Poland. Meet the Market, 24 October 2013. Lloyd s in Poland Main Facts Wild Janusz, Lloyd s Country Manager Poland Meet the Market, 24 Ocber 2013 Scope of activities 1. Reinsurance 2. Insurance (two licences) Freedom of Services Freedom of Establishment

More information

European Quarterly 9M 2008 A Lost Year December 2008

European Quarterly 9M 2008 A Lost Year December 2008 European Quarterly 9M 2008 A Lost Year December 2008 Aon Benfield 1 December 2008 European Quarterly 9M 2008 A Lost Year Lewis Phillips T: +44 (0)20 7522 8207 F: +44 (0)20 7816 1600 E: lewis.phillips@aonbenfield.com

More information

A.M. Best October 2018 Lloyd s. Best s Rating of Lloyd s 2018

A.M. Best October 2018 Lloyd s. Best s Rating of Lloyd s 2018 A.M. Best October 2018 Lloyd s Best s Rating of Lloyd s 2018 October 2018 One Lime Street London EC3M 7HA United Kingdom Web: www.lloyds.com AMB#: 85202 AIIN#: AA-1122000 Best s Credit Report: Lloyd s

More information

A.M. Best Ratings Impact from the New Rating Methodology and Stochastic-based BCAR

A.M. Best Ratings Impact from the New Rating Methodology and Stochastic-based BCAR A.M. Best Ratings Impact from the New Rating Methodology and Stochastic-based BCAR September 2017 Prepared by Aon Benfield Executive Summary A.M. Best is expected to finalize new rating criteria by mid-october

More information

Insurance-Linked Securities

Insurance-Linked Securities Aon Benfield Insurance-Linked Securities Fourth Quarter 2014 Update Risk. Reinsurance. Human Resources. 2014 A Record-Breaking Year for ILS The end of the 2014 calendar year marked a new record for annual

More information

Hampden Underwriting plc. Interim Report and Accounts For the six months ended 30 June 2011

Hampden Underwriting plc. Interim Report and Accounts For the six months ended 30 June 2011 Hampden Underwriting plc Interim Report and Accounts For the six months 2011 Contents Six months 2011 Page Highlights and summary of results 2 Chairman s Statement 3 Independent Review Report 4 Condensed

More information

Underwriting empowerment and flexibility, focussing largely on Catastrophe exposures. Our willingness to look at new opportunities.

Underwriting empowerment and flexibility, focussing largely on Catastrophe exposures. Our willingness to look at new opportunities. Property Binders Why MS Amlin? 01 02 03 04 05 A first class client experience delivered by people who understand your needs. Service. A rapid and pragmatic approach to all aspects of underwriting. Underwriting

More information

Investor Presentation Q August 2012

Investor Presentation Q August 2012 Investor Presentation Q2 2012 August 2012 www.lancashiregroup.com safe harbour statements CERTAIN STATEMENTS AND INDICATIVE PROJECTIONS (WHICH MAY INCLUDE MODELED LOSS SCENARIOS) MADE IN THIS RELEASE OR

More information

Helios Underwriting plc. Interim Report and Financial Statements For the six months ended 30 June 2016

Helios Underwriting plc. Interim Report and Financial Statements For the six months ended 30 June 2016 Interim Report and Financial Statements For the six months ended 30 June 2016 Contents Page Chairman s Statement 2 Financial Results Summary 3 Condensed Consolidated Income Statement 5 Condensed Consolidated

More information

Catastrophe Reinsurance Pricing

Catastrophe Reinsurance Pricing Catastrophe Reinsurance Pricing Science, Art or Both? By Joseph Qiu, Ming Li, Qin Wang and Bo Wang Insurers using catastrophe reinsurance, a critical financial management tool with complex pricing, can

More information

Insurance-Linked Securities

Insurance-Linked Securities Aon Benfield Insurance-Linked Securities Q1 2017 Update Risk. Reinsurance. Human Resources. First Quarter 2017 Catastrophe Bond Transaction Review Catastrophe bond issuance for the 2017 calendar year made

More information

Hiscox Ltd Interim results

Hiscox Ltd Interim results Hiscox Ltd Interim results for the six months ended 30 June 2013 1 An excellent start Profit before tax 180.7m (2012: 125.8m) Premium growth of 12.3% (2012: 7.0%) driven by strong growth in insurance lines

More information

AIG Acquisition of Validus Holdings: A Step Forward in AIG s Profitable Growth Strategy. Investor Presentation January 22, 2018

AIG Acquisition of Validus Holdings: A Step Forward in AIG s Profitable Growth Strategy. Investor Presentation January 22, 2018 AIG Acquisition of Validus Holdings: A Step Forward in AIG s Profitable Growth Strategy Investor Presentation January 22, 2018 Disclaimer Forward-Looking Statements Certain statements in this presentation

More information

IACP Member Companies

IACP Member Companies Company Acuity, A Mutual Insurance Company Adair Horne & Associates Inc. Adler Law Group Advent Underwriting AEGIS Insurance Services Inc. Aegis London AIG AIG Europe Limited Alan Gray, Inc. Allied World

More information

Reinsurance Market Review and Outlook

Reinsurance Market Review and Outlook BAKU, June, 2016 Prepared by Aon Benfield Analytics Market Analysis Contents 1. Economic and Financial Market Background 2. Non-traditional Capital 3. Reinsurer Results 9M 2015 4. Rating Agency Update

More information

willis re Conserving 1 April 2009 of 10

willis re Conserving 1 April 2009 of 10 willis re 1ST view 1 April 2009 Conserving capital of 10 TABLE OF CONTENTS RENEWALS 1 APRIL 2009 Introduction 3 Casualty Territory and Placement Type 4 Territory and Comments 4 Rates 4 Specialties Line

More information

Operating and financial review Zurich Financial Services Group Half Year Report 2011

Operating and financial review Zurich Financial Services Group Half Year Report 2011 Operating and financial review 2011 Half Year Report 2011 2 Half Year Report 2011 Operating and financial review The information contained within the Operating and financial review is unaudited. This document

More information

Contents. +44 (0) (0) Willis Limited Ten Trinity Square London EC3P 3AX United Kingdom

Contents. +44 (0) (0) Willis Limited Ten Trinity Square London EC3P 3AX United Kingdom Lloyd s Review OMMQ Contents Introduction Executive summary Global results and forecasts Capitalization Trends in capacity Lloyd s Franchise implementation Regulatory and accounting environment Ratings

More information

Potential Impact of Proposed 2011 Standard Reinsurance Agreement

Potential Impact of Proposed 2011 Standard Reinsurance Agreement Potential Impact of Proposed 2011 Standard Reinsurance Agreement Analysis of Second Draft Released by Risk Management Agency on February 23, 2010 Aon Benfield 200 East Randolph Street Chicago, IL 60601

More information

Aon Benfield Fac. Capabilities Brochure

Aon Benfield Fac. Capabilities Brochure Aon Benfield Fac Capabilities Brochure Aon Benfield Fac Fac buying, once perceived as time consuming and administratively burdensome, is now accessible, efficient and strategic. Aon Benfield Fac is reducing

More information

Lloyd s Cover to Cover

Lloyd s Cover to Cover Lloyd s Cover to Cover Presentation to Reinsurance Under 40 s Hank Watkins, President, Lloyd s North America October 4, 2016 Contents What is Lloyd s? 03 Business Overview 17 Financial Strength and Security

More information

Executive Summary: Supply Weathering the Storm 2. Global Reinsurer Capital 3. Coming off peaks, but supply still strong 3. Traditional capital 4

Executive Summary: Supply Weathering the Storm 2. Global Reinsurer Capital 3. Coming off peaks, but supply still strong 3. Traditional capital 4 Contents Executive Summary: Supply Weathering the Storm 2 Global Reinsurer Capital 3 Coming off peaks, but supply still strong 3 Traditional capital 4 Alternative capital 6 Manageable Global Natural Catastrophe

More information

Benfield European Quarterly FY 2007 Waiting Game April 2008

Benfield European Quarterly FY 2007 Waiting Game April 2008 Benfield European Quarterly FY 2007 Waiting Game April 2008 BENFIELD GROUP LIMITED April 2008 Benfield European Quarterly FY 2007 Waiting Game Lewis Phillips T: +44 (0)20 7522 8207 F: +44 (0)20 7816 1600

More information

Investor Presentation Q November 2012

Investor Presentation Q November 2012 Investor Presentation Q3 2012 November 2012 www.lancashiregroup.com safe harbour statements CERTAIN STATEMENTS AND INDICATIVE PROJECTIONS (WHICH MAY INCLUDE MODELED LOSS SCENARIOS) MADE IN THIS RELEASE

More information

MARSH MARKET IDS FOR SELECTED INSURERS

MARSH MARKET IDS FOR SELECTED INSURERS 2017 MARSH MARKET IDS FOR SELECTED INSURERS AAI Limited 3559 Australia SUNCORP METWAY GROUP D615 ACE American Insurance Company 0437 United States CHUBB LIMITED 3093 ACE European Group Ltd B002 United

More information

Rate Monitor Report and Quarterly U.S. Property & Casualty Profitability Analysis

Rate Monitor Report and Quarterly U.S. Property & Casualty Profitability Analysis Rate Monitor Report and Quarterly U.S. Property & Casualty Profitability Analysis Fourth Quarter 2016 Prepared by Aon Benfield Analytics Table of Contents Section 1 Section 2 Section 3 Section 4 Rate trends

More information

Conference Call on Interim Report 3/2017

Conference Call on Interim Report 3/2017 Conference Call on Interim Report 3/2017 Hannover, 8 November 2017 Q3 losses absorbed within quarterly earnings Positive Q3 result supported by sale of listed equities Group Gross written premium: EUR

More information

Insurance-Linked Securities

Insurance-Linked Securities Aon Benfield Insurance-Linked Securities Second Quarter 2015 Update Risk. Reinsurance. Human Resources. Second Quarter 2015 Catastrophe Bond Transaction Review The second quarter of 2015 saw USD2.96 billion

More information

2015 Interim Results

2015 Interim Results 2015 Interim Results Highlights Solid achievement in the first six months with a profit of 1.19bn and RoC of 10.7% 1 Combined ratio of 89.5% outperforms that of our competitor group for H1 by 3.3 percentage

More information

Homeowners ROE Outlook

Homeowners ROE Outlook Aon Benfield Homeowners ROE Outlook October 21 Risk. Reinsurance. Human Resources. Homeowners: Positive Outlook, Expanding Growth Opportunities For a nationwide, personal lines insurer the overall outlook

More information

AXIS Capital Holdings Limited

AXIS Capital Holdings Limited INVESTOR FINANCIAL SUPPLEMENT FOURTH QUARTER 2005 106 Pitts Bay Road Hamilton HM 08 Bermuda Contact Information: Linda Ventresca Investor Relations 441 297 9513 investorrelations@axiscapital.com Website

More information

1 Jan 2018 Property & Casualty Treaty Renewals. and guidance update 2017 and 2018

1 Jan 2018 Property & Casualty Treaty Renewals. and guidance update 2017 and 2018 Property & Casualty Treaty Renewals and guidance update 2017 and 2018 Renewals Conference Call Hannover, 7 February 2018 Reinsurance markets Our results Our portfolio Structured reinsurance Outlook 2018

More information

MGA & Program Solutions

MGA & Program Solutions MGA & Program Solutions Empower Results Empower Your MGA Results We recognize that Managing General Agents (MGAs) perform a vital role in developing, distributing and underwriting specialty insurance business.

More information

The Construction Consortium at Lloyd s

The Construction Consortium at Lloyd s The Construction Consortium at Lloyd s The Construction Consortium at Lloyd s The Construction Consortium at Lloyd s continues to offer credible lead capacity for a wide range of construction risks where

More information

Captive Reinsurance Characteristics- How to Tame the Unique Animal

Captive Reinsurance Characteristics- How to Tame the Unique Animal Captive Reinsurance Characteristics- How to Tame the Unique Animal Bill Hodson- Vice President, Axiom Re, Inc. Garry Coulter- Executive Vice President, USA Risk Intermediaries Mike Petrocik- Vice President

More information

Global Catastrophe Recap: First Half of 2017

Global Catastrophe Recap: First Half of 2017 Global Catastrophe Recap: First Half of 2017 July 2017 Risk. Reinsurance. Human Resources. Table of Contents Overview 3 Economic Losses 5 Multi-Billion Dollar Economic Loss Events 6 Insured Losses 7 Billion-Dollar

More information

Hiscox Ltd Interim results. For the six months ended 30 June 2018

Hiscox Ltd Interim results. For the six months ended 30 June 2018 Hiscox Ltd Interim results For the six months ended 30 June 2018 A good start to the year GWP up by 21 to $2.2bn Retail up 20 London Market up 16 Re & ILS up 29 Combined ratio 87.9 Profit before tax $164m,

More information

Natural Resources. We can show you more.

Natural Resources. We can show you more. Natural Resources We can show you more. CNA Hardy Natural Resources We partner with customers to help protect assets and operations in the best possible way; a partner with cross class expertise that understands

More information

Meet the Lloyd s Market in Atlanta

Meet the Lloyd s Market in Atlanta Meet the Lloyd s Market in Atlanta Download the Lloyd s Meet the Market mobile app at eventmobi.com/lloydsatlanta US offices Atlanta I Boston I Chicago I Frankfort, KY I Los Angeles I New York I USVI Global

More information

Insurance-Linked Securities

Insurance-Linked Securities Aon Benfield Insurance-Linked Securities Year-End 2016 Update Risk. Reinsurance. Human Resources. 2016 Year-End Catastrophe Bond Transaction Review Catastrophe bond issuance in the third and fourth quarter

More information

STANDARD & POOR S RATING OF THE LLOYD S MARKET December McGRAW-HILL

STANDARD & POOR S RATING OF THE LLOYD S MARKET December McGRAW-HILL STANDARD & POOR S RATING OF THE LLOYD S MARKET December 2011 McGRAW-HILL Standard & Poor s Rating of the Lloyd s Market December 2011 Principal analysts: Dennis Sugrue, Associate Director, London Mark

More information

Willis Re 1st View. Plenty of capacity, plenty of capital. Renewals 1 April Contents. 1st View Willis Re Renewals 1 April 2008

Willis Re 1st View. Plenty of capacity, plenty of capital. Renewals 1 April Contents. 1st View Willis Re Renewals 1 April 2008 1st View Willis Re Willis Re 1st View Plenty of capacity, plenty of capital As predicted in the previous edition of 1st View, the global reinsurance industry posted exceptionally strong financial results

More information

Insurance. Lloyd s of London. Reinsurers/United Kingdom. Full Rating Report. Key Rating Drivers. Rating Sensitivities. Ratings

Insurance. Lloyd s of London. Reinsurers/United Kingdom. Full Rating Report. Key Rating Drivers. Rating Sensitivities. Ratings Reinsurers/United Kingdom Full Rating Report Ratings Insurer Financial Strength Rating AA The Society of Lloyd s Long-Term IDR A+ Subordinated debt A Lloyd s Insurance Company (China) Ltd Insurer Financial

More information

TALISMAN. Underwriting Plc. Report July 2014

TALISMAN. Underwriting Plc. Report July 2014 TALISMAN Underwriting Plc Report July 2014 This document has been produced for shareholders of Talisman Underwriting Plc and may not be reproduced or passed to another person other than their personal

More information

1 Jan 2016 Property & Casualty Treaty Renewals

1 Jan 2016 Property & Casualty Treaty Renewals Property & Casualty Treaty Renewals Hannover, 3 February 2016 R/I markets Our results Our portfolio Outlook Appendix Important note Unless otherwise stated, the renewals part of the presentation is based

More information

Aspen Insurance Holdings Limited. Financial Statements for the period 23 May 2002 to 31 December 2002

Aspen Insurance Holdings Limited. Financial Statements for the period 23 May 2002 to 31 December 2002 Financial Statements for the period 23 May 2002 to 31 December 2002 CONTENTS Page Group Overview 3 Operational Review 4 Consolidated Statement of Operations 8 Consolidated Balance Sheet 9 Consolidated

More information

Investor Presentation Q May

Investor Presentation Q May Investor Presentation Q1 2012 May 2012 www.lancashiregroup.com safe harbour statements CERTAIN STATEMENTS AND INDICATIVE PROJECTIONS (WHICH MAY INCLUDE MODELED LOSS SCENARIOS) MADE IN THIS RELEASE OR OTHERWISE

More information

Highly respected global capital base of committed long term partners. Clear alignment between capital and key staff responsible for delivering profits

Highly respected global capital base of committed long term partners. Clear alignment between capital and key staff responsible for delivering profits Aviation ABOUT US Apollo Syndicate 1969 commenced trading in January 2010. The primary aim is to build a first class privately owned underwriting platform operating at Lloyd s. Highly respected global

More information

Conference Call on Q1/2018 results

Conference Call on Q1/2018 results Conference Call on Q1/2018 results Hannover, 7 May 2018 Favourable start to 2018 EBIT increase of +8.5% outperforms NPE growth GWP 4,547 in m. NPE in m. EBIT in m. Group net income in m. 5,345 +17.6% 3,738

More information

Ivor Edwards, Partner. Clyde & Co, London

Ivor Edwards, Partner. Clyde & Co, London The European insurance industry is more cautious in its approach to M&A as the developing Eurozone crisis combined with widespread regulatory reform, prolonged soft pricing and reserve inadequacy means

More information

Validus Reinsurance, Ltd. (Incorporated in Bermuda)

Validus Reinsurance, Ltd. (Incorporated in Bermuda) (Incorporated in Bermuda) Consolidated financial statements For the Years Ended December 31, 2010 and 2009 (expressed in U.S. dollars) Consolidated Balance Sheets As at December 31, 2010 and 2009 December

More information

Benfield Bermuda Quarterly 1Q 2008 Take the Strain June 2008

Benfield Bermuda Quarterly 1Q 2008 Take the Strain June 2008 Benfield Bermuda Quarterly 1Q 2008 Take the Strain June 2008 BENFIELD GROUP LIMITED June 2008 Benfield Bermuda Quarterly 1Q 2008 Take the strain Benfield Research Leon Janeke T: +44 (0)207 522 3821 F:

More information

Important information about Syndicate Reports and Accounts

Important information about Syndicate Reports and Accounts Important information about Syndicate Reports and Accounts Access to this document is restricted to persons who have given the certification set forth below. If this document has been forwarded to you

More information

Casualty/Liabilities

Casualty/Liabilities Casualty/Liabilities ABOUT US Apollo Syndicate 1969 commenced trading in January 2010. The primary aim is to build a first class privately owned underwriting platform operating at Lloyd s. Highly respected

More information