Revised Syndicate Business Forecast and Pre-emption Proposals
Syndicate Affected: 318
Beaufort Underwriting Agency Ltd will be submitting a revised 2010 Syndicate Business Forecast (‘SBF’) to Lloyd’s in respect of Syndicate 318. This follows a review of the underlying assumptions included within the initial submission, with particular reference to anticipated market conditions for 2010.
As a result, premium income estimates for 2010 year of account for the core Worldwide Property account have been reduced by approximately £20m, in view of the levels of rate increases likely for 2010 now being less than was originally projected. However, with rates in the Airline sector continuing to rise, a small increase to forecast premium income in respect of the Aviation account of approximately £3m has been allowed. Therefore, overall Gross Premiums for the 2010 year of account are now expected to be £197m, down from our initial forecast figure of £214m.
On the basis of the original SBF proposal, a pre-emption offer of 25% was made to members which, if fully taken up, would have increased the Syndicate’s capacity to some £252m for the 2010 year of account. The Board of Beaufort has reviewed the level of capacity required to support the revised business forecast and has concluded that this level of increase is no longer appropriate. Accordingly, a revised pre-emption offer of 11.5% will now apply, taking the Syndicate’s capacity to £225m for the 2010 year of account.
Members have previously indicated their support for the Syndicate’s proposed pre-emption of 25%, on the basis that this was subject to any revision downwards, or if the amount subsequently approved by the Franchise Board was less. Accordingly, it has been agreed with the Franchise that the views of members need not be sought in respect of this change.
Date issued: 3 September 2009
Contact Information
Agency contact name: Mr A S Dawe
Agency contact no: + 44 (0)207 220 8200
For auction office use only: D2009007
