Several Lloyd's syndicates are releasing results forecasts ahead of market expectations, despite the record 2005 hurricane season.
Amlin has indicated that its result for the year ended 31 December 2005 will be materially ahead of what was expected. It is anticipating a group pre-tax profit of not less than £175m.
It added that, while the 2005 year of account for syndicate 2001 is at an early stage of development, it has forecast a profit of 1.5% to 6.5% of its £850m capacity. The 2005 windstorm losses are reserved at £121.3m, net of reinsurance, or 14.3% of capacity.
Chaucer is also expecting a healthy 2005, with chief underwriting officer Bob Stuchbery saying that its initial 2005 forecasts are encouraging. It forecasts that its result for syndicate 1084, which suffered hits on its marine and property accounts due to the hurricane season, would be in the range of a 5% loss to a 5% profit on its capacity of £400.2m, while its nuclear syndicate, 1176, would record a similar result due to two significant losses in the final quarter of 2005.
Meanwhile, Wellington Underwriting has estimated that its consolidated loss before tax for the 12 months ending 31 December 2005 will be between £25m and £30m ahead of market expectations. It is forecasting a loss of between 12% and 23% for syndicate 2020 for 2005 on capacity of £730m.
However, the company said that trading in 2006 had been good, with average rate increase of 11% for new and renewal business written during January 2006.
Cathedral Underwriting has announced that it expects to make an underwriting profit of about £13.7m on its managed syndicate 2010.
The net impact of hurricanes Katrina, Rita and Wilma combined on the 2005 account was said to be equivalent to around 17% of capacity. But Cathedral declined to issue a formal preliminary forecast for 2005 on the grounds that the year "remains heavily on risk".
