Subject: 2010 BUSINESS PLAN
Syndicate Affected: 958
Omega Underwriting Agency Limited (OUAL) submitted to Lloyd’s on 18th September its ‘final’ business plan for the 2010 year of account in respect of Syndicate 958.
The Syndicate Business Forecast (SBF) submitted contains certain revisions which are as a result of the stated intention to keep under review the assumptions underlying the plan. As a consequence anticipated whole account premium income has been increased from £257.50m (as advised in the SBF submitted in July 2009) to £263.9m.
The increase in income is principally driven by the Syndicate’s offshore energy account. In the July SBF submission, a prudent stance was taken on this account. Whilst the significant corrections in rates, terms and conditions that were taking place as a result of the losses on Hurricanes Gustav and Ike were acknowledged, income compared to 2009 budgets was reduced significantly. This was pending confirmation that the Syndicate’s objective of significantly reducing windstorm aggregate in the Gulf of Mexico (GoM) could be achieved, whilst still being able to maintain broker support. The renewal of the major GoM exposed accounts has now been completed and further analysis has confirmed that wind exposed aggregates have been reduced in line with expectations and participations on key accounts have been maintained. It has therefore been concluded that projected income on the offshore account should be maintained at 2009 levels, resulting in anticipated 2010 income of £53.0m for the marine and energy class, having taken into account the Lloyd’s prescribed 2010 business planning rate of USD 1.50 (2009 USD 1.99). It should be emphasized, however that if, as a result of benign loss activity in 2009, rates on this account come under pressure in 2010, the syndicate will review its position again and reduce income as considered appropriate. The increase in offshore energy income has, however, been offset by the decision to reduce onshore energy writings due to the industry recently experiencing a high incidence of machinery breakdown claims.
As was stated in the auction disclosure made on 4th September, all syndicate business plans and associated ICA require Lloyd’s approval. Such approval must be forthcoming prior to any business being able to be underwritten by the syndicate for the 2010 year of account. Lloyd’s have the right to require changes to business plans submitted prior to approval being granted. Members are therefore reminded that information in the plan submitted on 18th September is subject to review by Lloyd’s and that following the conclusions of that review the plan may be subject to amendment. Similarly any subsequent changes felt necessary to the plan would require Lloyd’s prior approval.
Date issued: 25 September 2009
Contact Information
Agency contact name: Andrew Adie
Agency contact no: + 44 (0)20 7767 3009
For auction office use only: D2009017
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