Syndicate Results at Top End of Forecast Range
Amlin PLC
2 March 2000
1997 YEAR OF ACCOUNT SYNDICATE RESULTS AT TOP END OF FORECAST RANGE
Amlin Underwriting Limited ('AML') and Angerstein Underwriting Limited
('AUL'), the two Lloyd's managing agencies owned by Amlin plc, have released
results for the 1997 year of account and updated forecasts for the 1998 year
of account of their managed Lloyd's syndicates.
The results and forecasts of the individual syndicates are after standard
Names' expenses, including managing agents' fees and profit commissions.
1997 year of account result
The syndicates' 1997 year of account results show, in aggregate, a profit
after standard personal expenses, for the Group's managed syndicates, of £14.8
million, equivalent to 2.3% of the Group's total managed capacity for that
year. This is at the high end of forecasts previously made, compared to a
mid-point of 1.4% for the last forecast.
The forecasts expressed as a percentage of capacity, are as follows:
Syndicate Capacity % owned Result Previous
£m by Amlin % forecast
% to %
902 37.6 14% 12.3 7.5 to 12.5
1141 76.2 6% 0.9 2.00 to 5.00
2001 528.6 11% 1.9 (2.00) to 3.00
1998 year of account
The mid-point of the syndicates' 1998 year of account forecasts, in aggregate,
indicates a loss after standard personal expenses of £27.6 million, equivalent
to 4.3% of capacity, a small deterioration from the previous forecast loss of
3.4% of capacity.
The forecasts for the 1998 year of account, expressed in a range as a
percentage of capacity, are as follows:
Syndicate Capacity % owned Latest Previous
£m by Amlin forecasts forecast
% to % % to %
902 37.6 35% (2.50) to 2.50 (2.00) to 3.00
1141 76.2 22% (7.50) to (2.50) 0.00 to 5.00
2001 528.7 24% (7.00 ) to (2.00) (7.00) to (2.00)
The forecasts for the 1998 year of account are reflective of difficult
conditions for most classes of insurance and reinsurance caused by inadequate
rates and an increased level of loss experience. There has also been a
deterioration in the results of casualty lines, particularly medical
malpractice where fourth quarter notifications indicated that a strengthening
of reserves was required. This has affected, in particular, the projected
result for Syndicate 1141.
Syndicate 2001
The results of Syndicate 2001 for the 1997 and 1998 years of account were
significantly influenced by the poor results of former sub-syndicate 919 and
of extremely poor conditions in the motor market. Sub-syndicate 919 ceased to
operate in 1998 and the motor division has seen strong recovery in trading
conditions. Accordingly, the 1999 year of account is expected to show an
improvement over the 1998 year of account.
Amlin plc
Amlin's share of the forecast loss from managed syndicates in the 1998 year of
account, referred to above, is £6.5 million.
In its balance sheet at 30 June 1999, Amlin plc is carrying reserves of some
£16.0 million in respect of potential losses on its underwriting on the open
years of account from both its managed and 'spread' syndicates.
Enquiries
Charles Philipps, Amlin plc 0171 860 8222
Richard Hextall, Amlin plc 0171 860 8633
David Haggie, Haggie Financial Limited 0171 417 8989
Latest directors dealings
- 2 days ago City of London Investment Group
- 2 days ago Aberdeen Group plc
- 2 days ago NATWEST GROUP
- 2 days ago Ondo Insurtech
- 2 days ago Banco Santander S.A.