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The following
commentaries have been prepared based on information contained
in the Managing Agents Report and Accounts as at 31 December
2009.
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Syndicate: 53 |
Managing Agent: Renaissance Syndicate Management Ltd |
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Run-Off Manager: Richard Murphy
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Year(s): |
1998 |
1999 |
|
|
|
|
|
|
|
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Declared Results |
|
(212.9%) |
(63.00%) |
|
|
Cash Calls to date |
|
202.7% |
67.1% |
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Syndicate
53 successfully closed the 1998 and 1999 accounts at 31 December
2009.
The managing agent has
reported an improvement to the overall loss position of both
years of account during the previous 12 months of 4.8% and 4.9%
for the 1998 and 1999 accounts respectively. Names will be
aware from our memorandum of 17 December 2009 of the managing
agents intention to accept a quotation from Shelbourne Syndicate
Services Limited to close the account at 31 December 2009.
The closure will result in
a further cash call of 10.2% of capacity in respect of the 1998
account and a surplus of 4.1% for 1999. Both of which will be
due for settlement in June 2010.
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Syndicate: 340 |
Managing Agent: Travelers Syndicate Management Ltd |
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Run-Off Manager: Stephen Eccles
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Year(s): |
2000 |
2001 |
|
|
|
|
|
|
|
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Declared Results |
|
(70.6%) |
(13.2%) |
|
|
Cash Calls to date |
|
67.7% |
nil |
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Syndicate 340 was unable to
close the 2000 & 2001 years of account at 31 December 2009.
Syndicate
340 was a specialist aviation syndicate and the 2000 and 2001
years of account have material exposure to losses arising from
the terrorist activities in the USA of 11 September 2001.
The scale and complexity of these losses have resulted in there
being significant uncertainty as to their final outcome: the
uncertainty relates to the extent of liability and the quantum
of possible loss settlements.
In the managing agents report as at 31
December 2009 they have advised that negotiations have started
that could give rise to a potential deal. In outline, all
of the subrogating property insurers who had sued in New York
together with most (but not all) of the
insured property plaintiff's
would accept a figure representing a percentage of the total
remaining policy limits of the airlines and security companies.
All of the other aviation defendants would benefit from the
release to be given by the settling plaintiffs. Any deal
along these lines would not end all current and potential
litigation against the aviation defendants, but the airlines
direct insurance characterised their approach as seeking
"relative finality to the greatest extent possible".
In February 2010 a settlement
was concluded formally with all but three of the property
plaintiffs. The liability insurers of the main aviation
defendants have also agreed on how any future resolution of
those three outstanding property claims will be allocated
amongst them.
Under the terms of the
settlement agreement the relevant defendants' liability insurers
have to place the settlement funds into an escrow account and
they are paid out to the settling plaintiffs in the event that
the settlement is approved conclusively by the New York court.
Syndicate 340, as a reinsurer and a retrocessionaire, is paying
its share of these funds. In the meantime the Judge has
ordered that details of the settlement including the amount paid
on behalf of each defendant should remain confidential.
The managing agents report
goes on to say the terms of the settlement as negotiated would
remove many, but not all of the uncertainties which have led to
the syndicate remaining open and lead to a material improvement
in the eventual result of both open years. However, the
managing agent stresses that there are two extremely important
points which cannot be over-emphasised.
1. The settlement would
not extinguish all outstanding liabilities but it would provide
relative finality to a greatest extent possible.
2. It is not definitive
until it is approved conclusively by the New York court.
This decision is awaited.
The settlement has the
potential to allow both years to be closed as at 31 December
2010, but in the event that the settlement is not approved by
the court the managing agent does not anticipate being in a
position to close either year of account before 31 December
2012.
In light of the above we are
more optimistic that the syndicate could be in a position to
close at 31 December 2010.
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Syndicate: 529 |
Managing Agent: Shelbourne Syndicate Services Ltd |
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Run-Off Manager: A D Elliott
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Year(s): |
1998 |
1999 |
|
|
|
|
|
|
|
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Declared Results |
|
(88.2%) |
(110.0%) |
|
|
Cash Calls to date |
|
103.0% |
113.5% |
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Syndicate 529
was unable to close the 1998 and 1999 years of account at 31
December 2009.
The
managing agent reports that the 1998 account has achieved a
marginal improvement of 1% on the loss position during the
calendar year 2009. In contrast the 1999 account has seen
a further deterioration of 6.47%. In the report and
accounts of 31 December 2009 the managing agent has made
particular reference to the syndicates exposure to construction
defects in the United States which has showed adverse
developments during the year with result they have had to revise
their ultimate loss projections in this area which has resulted in
their re-estimating the future liabilities.
On
a more positive note the syndicate will seek quotations from the
third party reinsurance to close market with a view to obtaining
closure at 31 December 2010.
_________________________________________________________________________________
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Syndicate: 957 |
Managing Agent: Duncanson & Holt Syndicate Management Ltd
(CMGL) |
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Run-Off Manager: David McElhiney
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|
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Year(s): |
1997 |
1998 |
1999 |
|
|
|
|
|
|
|
|
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Declared Results |
|
(9.4%) |
(64.33%) |
(106.72%) |
|
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Cash Calls to date |
|
32.89% |
76.98% |
124.6% |
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Syndicate 957
was able to close the 1997, 1998 & 1999 years of account at 31
December 2009.
Names
will be aware from our memorandum of 20 November 2009 that the
managing agent proposed to accept a quotation for closure from
RITC Management Limited, Syndicate 5678. The final result
for each of the three years in run-off was an improvement on the
loss position reported at 31 December 2008. Each year of
account had previously made cash calls in excess of the closing position
and therefore the surplus will be due for release in June 2010.
_________________________________________________________________________________
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Syndicate: 991 |
Managing Agent: Capita Managing Agency Ltd |
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Run-Off Manager: Harvey Simons
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|
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Year(s): |
1998 |
1999 |
2000 |
|
|
|
|
|
|
|
|
|
Declared Results |
|
(31.64%) |
(41.49%) |
(40.5%) |
|
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Cash Calls to date |
|
48.14% |
36.9% |
35.7% |
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Syndicate 991
closed the 1998, 1999 & 2000 years of account at 31
December 2009.
Names
will be aware from our memorandum of 4 December 2009 that Capita
Managing Agency Limited proposed to accept a quotation from
Shelbourne Syndicate Services Limited, Syndicate 2008 which was
approved by the board and the syndicates capital providers with
effect that all run-off years of account closed at 31 December
2009.
The closing result is shown
above together with the cash calls made to date which will
result in a surplus being paid in respect of the 1998 account
and calls made for both 1999 and 2000 years of account for
settlement in June 2010.
_________________________________________________________________________________
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Syndicate: 1007 |
Managing Agent: Novae Syndicates Ltd |
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Run-Off Manager: J R Adams
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|
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Year(s): |
2002 |
|
|
|
|
|
|
|
|
|
|
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Declared Results |
|
(12.10%) |
|
|
|
|
Cash Calls to date |
|
8.5% |
|
|
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Syndicate 1007
was unable to close the 2002 year of account at 31 December 2009.
The reasons for putting the
year of account into run-off included uncertainty over the
eventual outcome on casualty treaty business and in respect of
certain high profile US issues involving investment banks.
Lesser uncertainties include US comprehensive, general liability
business transacted in conjunction with US direct property
business and a modest amount of reinsurance exhaustion which had
the potential to become more pernicious under certain
circumstances.
In the calendar year 2009
some deterioration has been seen in respect of a few specific
claims, outweighing other instances of favourable development.
The managing agent quotes in the latest report and accounts
"that going forward the low level of US interest rates in
particular holds out little prospect of a useful contribution
from investment return over the next 12 months". Under
these circumstances, the managing agent has revised the forecast
of the ultimate outcome to a loss of between 17.5% and 7.5% of
stamp capacity.
In recent years the
uncertainty surrounding some of the issues has diminished
considerably, particularly in relation to casualty treaty
business, following concerted action to deal with this issue,
including some useful reinsurance commutations. The
uncertainty over US comprehensive general liability business has
also diminished with the passage of time. More recently,
there has also been some useful progress in resolving some of
the investment bank issues.
The managing agent will
continue to investigate the possibility of attracting a third
party reinsurer and it is hoped that the syndicate may be in a
position to close at 31 December 2010.
_________________________________________________________________________________
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Syndicate: 1101 |
Managing Agent: Duncanson & Holt Syndicate Management Ltd
(CMGL) |
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|
Run-Off Manager: David McElhiney
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Year(s): |
1997 |
1998 |
1999 |
|
|
|
|
|
|
|
|
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Declared Results |
|
(36.20%) |
(91.0%) |
(64.6%) |
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Cash Calls to date |
|
49.4% |
92.6% |
62.6% |
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Syndicate 1101
closed the 1997, 1998 and 1999 years of account at 31
December 2009.
Names will be aware from
our memorandum of 20 November 2009 that the managing agent
negotiated a reinsurance to close of all the run-off years of
account with RITC Management Limited, Syndicate 5678. As
can be determined from the above result the refunds due on the
1997 and 1998 accounts and the call on the 1999 account will be
due for settlement in June 2010.
_________________________________________________________________________________
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Syndicate: 1171 |
Managing Agent: Ridge Underwriting
Agencies Ltd |
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|
Run-Off Manager: Terry Adams
|
|
|
Year(s): |
1998 |
1999 |
|
|
|
|
|
|
|
|
|
|
Declared Results |
|
(13.9%) |
(2.9%) |
|
|
|
Cash Calls to date |
|
16.8% |
7.5% |
|
|
Syndicate 1171 has been
unable to close the 1998 and 1999 years of account at 31 December 2009.
Syndicate 1171 is a Life
syndicate and can only be reinsured under Lloyd's current
regulations into another Lloyd's Life syndicate as there are
only three Life syndicates trading at Lloyd's the opportunities
are very limited to complete a RITC. It is unlikely
that the syndicate will close at 31 December 2010.
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