SVB syndicate 2147 will remain open at the 36-month stage to control the uncertainty surrounding the run-off of the discontinued unit, SVB Holdings said as it announced forecasts for the 2003 and 2004 years of account.
In its 2002 year of account of wholly owned SVB syndicate 2147 a profit of 12.5% against an underwriting capacity of £154m was reported. SVB said the profit had been attained despite the damaging adverse impact of prior years.
Discontinued US casualty business was absorbed in syndicate 1241, where a -47.2% outcome at the 36 month stage exceeded the predicted -25% to –20%. The syndicate will also remain open at the 36-month stage.
SVB said it has set up an exceptional loss provision of £103.6m to soak up possible future reserve deterioration from the discontinued units.
SVB syndicates forecast a profit increase across its 2003 and 2004 year of accounts despite 2004 being a strong year for hurricane losses.
In its 2003 year of account SVB said forecast of between 13.5% and 18.5% for syndicate 1007 against an underwriting capacity of £151m would remain unchanged. In its 2147 syndicate the forecast of between 13.5% and 18.5% against the £286.4m capacity would also be stagnant.
For the 2004 year of account a forecast of between 7.5% and 15% against £215.6m has been announced for syndicate 1007. In syndicate 2147, which has an underwriting capacity of £286.4m, a forecast of between 5% and 12.5% was predicted.
