Highlights
- Rate rises, particularly in Property, Aviation and Liability accounts are positively impacting the 2019 year of account and are continuing into 2020
- The 2017 year of account remains in a loss position, albeit improving in Syndicates 510 and 557, driven by heavy catastrophe losses
- The 2018 year of account, also impacted by significant catastrophe losses, resulting in forecasted losses for Syndicates 510 and 557 largely in line with our prior forecasts.
Tokio Marine Kiln Syndicates Limited today released the final results for its non-aligned syndicates for the 2017 year of account and updated forecasts for the 2018 year of account.
Brad Irick, Chief Executive Officer of Tokio Marine Kiln, said:
“2017 was a challenging year for the insurance industry, which is reflected in these results. Our market-leading Claims teams continues to work hard to handle remaining losses and support our customers quickly and compassionately, ensuring that we deliver on the commitments we have made to them.
“We have seen some encouraging rate improvements in selected areas of the market and our underwriters are capitalising on those opportunities. Our specialist underwriting expertise positions us well in this changing market and where we see the opportunity to grow profitably we will do so, while maintaining a laser-focus on bottom-line results.”
The previous forecasts, which were announced in November 2019, have been rebased to the same exchange rates (US$1.32 and C$1.72). The forecasts set out below take into account all managing agency and Lloyd’s charges.
- The impact of an active catastrophe environment in the second half of the 2017 financial year is reflected in the forecast losses for Syndicates 510 and 557.
- Improvements in Syndicates 510 and 557 are driven by prior year reserve releases.
- The forecast ranges for Syndicates 510 and 557 reflect early catastrophe losses on the California Wildfires, Hurricane Michael and Florence.
- Improvements in Syndicate 557 driven by improvement on Camp Wildfire.
- Syndicate 308 is in run-off. The 2017 year is not being closed at 31.12.19. We are servicing the existing business professionally and will ensure that there is no detriment to policyholders.
- Syndicate 308’s loss reflects the impact of the run-off book.