{ “title”: “Ascot’s Lloyd’s Syndicate 1414 Sees Profit Decline in 2024 Due to Catastrophe Losses and Baltimore Bridge Disaster”, “description”: “Ascot’s Lloyd’s Syndicate 1414 experienced a profit decline in 2024, significantly impacted by high catastrophe losses, including the Baltimore Bridge collapse and severe weather events.”, “tags”: “Ascot, Lloyd’s, insurance, Baltimore Bridge, catastrophe losses”, “rewritten_content”: “## Ascot’s Syndicate 1414 Profit Dips in 2024
Ascot’s Lloyd’s Syndicate 1414 saw its profits decrease in 2024, primarily due to substantial losses from catastrophes, according to a recent report. These losses included the collapse of the Baltimore Bridge and a series of severe weather events.
The syndicate reported a profit of $185.1 million, a decrease from $252.6 million the previous year. This decline was largely attributed to a 7.5 percentage point decrease in the current accident year net loss ratio. This was driven by a notable rise in claims related to catastrophes, contrasting with a relatively calm 2023.
The Dali cargo ship collision leading to the Baltimore bridge collapse resulted in a gross loss of $197.8 million for the syndicate, with a net loss of $24 million. Additionally, severe weather conditions contributed to increased claims, with multiple storms, floods, and hurricanes compounding the financial impact. Hurricane Helene caused a net loss of $67.2 million, while Hurricane Milton resulted in a net loss of $26.6 million.
Despite the surge in claims, the syndicate was able to mitigate its exposure through reinsurance protections, the report indicated. The combined ratio worsened, increasing to 91.6 from 86.6 the previous year. Gross written premiums, however, increased to $1.94 billion, up from $1.79 billion. This growth was supported by rate increases, new business, and premiums from catastrophe-related events. Outward reinsurance premiums, including reinstatement premiums, grew by 4%, compared to an 8% rise in gross written premiums.
Deterioration in the prior accident year was due to losses from the Russia-Ukraine war and severe weather in Italy. These losses were somewhat offset by favorable non-event experience and adjustments in actuarial assumptions, specifically benefiting marine, energy, and property segments.
The broader Lloyd’s market also faced considerable losses in 2024.
Lloyd’s CEO John Neal said the market remained resilient.
Lloyd’s reported a pretax profit of £9.63 billion ($12.48 billion), down from £10.66 billion in 2023. Gross written premiums increased to £55.55 billion from £52.15 billion, coupled with the combined ratio deteriorating to 86.9 from 84.0. John Neal, CEO of Lloyd’s, stated that the market showed resilience amid mounting challenges.” }
