AmTrust at Lloyd's Ltd
Managing Agent Name: AmTrust at Lloyd’s Limited
Subject: Claims Review and 2016 Business Plan
Syndicate Affected: 2526
As advised in auction season 2015 disclosure reference D2015015, in September 2015 the Managing Agent commissioned ReviewAudit And More Consultancy Limited (RAM) to carry out an independent review of the 2013 and prior year claims reserves of Syndicate 2526. RAM reviewed 51% of the open claims. That review was completed in October and indicated the need for a significant strengthening of reserves for the cases reviewed, which the Managing Agent has now implemented.
RAM was also of the view that 20% of the claims it reviewed are subject to material levels of volatility; such volatility has not been factored into the reserve strengthening currently undertaken. Further review work will be carried out on the claims not covered by the RAM review and also to assess the impact on reserving of the volatility identified in the RAM report.
The Managing Agent is currently of the view that the level of uncertainty surrounding the 2013 and prior reserves is such that there is a reasonable possibility that the 2013 year will not be closed as at 31 December 2015.
Following discussions with Lloyd’s, the approval process timetable for the Syndicate's 2016 business plan has been moved to that for aligned syndicates under which the deadline for approval by Lloyd's of a final 2016 business plan is 20 November 2015. At the date of this disclosure, a 2016 business plan for the Syndicate has not been approved. The Managing Agent is providing additional information to Lloyd’s to support the calculation of the ongoing capital requirements for the Syndicate.
Date issued: 09 November 2015
Contact Information
Agency contact name: Donal Barrett
Agency contact no: + 44 (0) 020 3003 6912
For auction office use only: D2015020
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