Syndicate 807 returns to profit for final year of runoff

R J Kiln & Co Limited has reported improvements to its 2011 and 2012 year of account forecasts for all of its Lloyd’s non-life syndicates over the past quarter.

The largest syndicate by capacity, Syndicate 510, which has 2011 and 2012 capacities of £922 and £1,062m, improved its 2011 forecast to 4.7% to 9.7% from 4.3% to 9.3% and its 2012 forecast to 1.9% to 6.9% from 0.8% to 5.8%.

And Syndicate 807, which is in runoff, returned to a projected profit for its final year with its 2011 year of account forecast to 0.6% to 5.6% from -4.2% to 0.8%. This was driven by reductions to reserves held for Superstorm Sandy and the Thai floods, as well as improvements on the prior years.

R J Kiln & Co chief executive Charles Franks said: “I am delighted to report that Kiln is on track to deliver a strong underwriting performance in 2013. Despite difficult trading conditions, our underlying book is performing well and we have had a relatively benign catastrophe environment with the exception of some minor storm events.

“Market conditions remain challenging, which has reinforced the need to maintain our strict underwriting standards focusing on profit, not premium. Whilst growth year-on-year has been strong into 2013, these conditions will inevitably have some effect on our top line against target.

“I am pleased to report that Syndicate 807, which is in runoff, is forecast to close with a profit in its final year.”

For full forecasts please see the tables (below).

2011 year of account forecasts

SynidcateCapcity (£m)Current Forecast (%)Previous Forecast (%)
5109224.7 to 9.74.3 to 5.3
557605.9 to 10.95.1 to 10.1
8071400.6 to 5.6-4.2 to 0.8

2012 year of account forecasts

SyndicateCapacity (£m)Current Forecast (%)Previous Forecast (%)
5101,0621.9 to 6.90.8 to 5.8
557562.3 to 7.31.7 to 6.7