Chaucer Holdings said 2004 had had an encouraging start, as it released its syndicate forecasts for the 2002 and 2003 years of account.
It said the 2002 forecasts for motor syndicate 587, marine syndicate 1084, and non-marine syndicate 1096 had continued to improve. The forecasts increased by 2, 1.5, and 1 percentage points respectively at the upper and lower ends of the range.
Chaucer said the improved forecast for motor syndicate 587 reflected favourable claims and reserving experience. Forecasts for marine syndicate 1084 and non-marine syndicate 1096 continue to improve as loss development remains at expected levels, said the company.
Syndicate 587's 2003 forecast is ahead of 2002 at the same stage, and the 2003 forecasts for marine syndicate 1084 and non-marine syndicate 1096 are equal to 2002 at the same stage.
Syndicate 587 has a 2003 forecast of 7.5% to 15.0%, syndicate 1084 has a forecast of 7.5% to 15.0%, syndicate 1096 has a forecast of 10.0% to 17.5%, and nuclear syndicate 1176 has a forecast of 10.0% to 17.5%.
The improved forecast for syndicate 587 highlights the benefits of its increased business focus on non-standard risks and disciplined approach to underwriting and cost control, said Chaucer.
It also said syndicate 1084 and syndicate 1096 had benefited from a strong premium rating environment and low levels of major losses in 2003.
Although a significant amount of the business of the two syndicates is still on risk and investment and currency markets remain uncertain, Chaucer said it believes that there is potential for these syndicate forecasts to improve if claims and reinsurance experience remains as expected.
Chief executive Ewen Gilmour said: “I am pleased that Chaucer's positive response to the good market conditions in 2002 and 2003 continues to be rewarded by excellent syndicate forecasts. For the 2002 year of account, we have improved forecasts for our three principal syndicates
