7 April 2016 Insurance

Repositioning hits growth and profits at Liberty Syndicate 4472

Profits at Liberty Syndicate 4472 plummeted last year and its book also shrank thanks to a repositioning of parts of its portfolio before growth in other lines could emerge.

The syndicate reported a profit of $108.7 million for 2015, a decrease of almost 50 percent compared with the $213.7 million it made in 2014.

The syndicate also reported a fall in its gross written premiums (GWP) last year to $1.76 billion, compared with $2.04 billion in 2014.

Its underwriting result also fell to $68.5 million in 2015, compared to $77.5 million in the previous year. However, the syndicated combined ratio stayed stable at 95 percent.

The syndicate said that the creation of Liberty Specialty Markets (LSM) has allowed it to benefit from LSM’s ability to underwrite on twin platforms, from which it has managed to grow its casualty and liability lines of business.

However, it said despite new opportunities and business growth in established lines, the syndicate’s planned decrease in both property and pecuniary lines, re-positioning the syndicate’s motor book to elsewhere within LSM, couples with further rate reductions and continued currency fluctuation, has resulted in a decrease of 13 percent in GWP compared with 2014.

It also said that earnings from longer tail casualty lines will take time to emerge. The net reduction in earned premium of 6 percent was buoyed by a mix of premium income earning on binder business from previous years and changes in quota share arrangements, it said.

Liberty Specialty Markets is the trading name for the combined operation of Liberty Managing Agency, Liberty Mutual Insurance Europe and Liberty Mutual Reinsurance.

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