TMK expects positive impact from rate rise on Lloyd’s syndicate results
Specialist insurer Tokio Marine Kiln (TMK) has said that rate rises, particularly in the property, aviation and liability accounts, positively impacted its 2019 year of account and will continue into 2020.
TMK, which is a part of Japan-based Tokio Marine Holdings, has released the final results for its non-aligned Lloyd's syndicates for the 2017 year of account and the updated forecasts for the 2018 year of account.
The company reported that the 2017 year of account remains in a loss position, albeit improvement in Syndicates 510 and 557, driven by heavy catastrophe losses. Syndicate 510 had the capacity of more than £1.1 billion and a result of -2.3 percentage of capacity. Syndicate 557 had the capacity of £32 million and a result of -14.7 percentage of capacity.
The 2018 year of account, also impacted by significant catastrophe losses from California Wildfires, Hurricane Michael and Florence, resulted in forecasted losses for Syndicates 510 and 557. Syndicate 510 had the capacity of more than £1.1 billion and a forecast range as at February 2020 of -5.6 to -0.6 percentage of capacity. Syndicate 557 had the capacity of £31 million and a forecast range of -3.9 to 1.1 percentage of capacity.
Brad Irick, chief executive officer of Tokio Marine Kiln, said: “2017 was a challenging year for the insurance industry, which is reflected in these results. Our market-leading Claims teams continues to work hard to handle remaining losses and support our customers quickly and compassionately, ensuring that we deliver on the commitments we have made to them.
“We have seen some encouraging rate improvements in selected areas of the market and our underwriters are capitalising on those opportunities. Our specialist underwriting expertise positions us well in this changing market and where we see the opportunity to grow profitably we will do so, while maintaining a laser-focus on bottom-line results.”
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