Ascot’s Syndicate 1414 Profit Dips in 2024
Ascot’s Lloyd’s Syndicate 1414 experienced a profit decline in 2024, significantly impacted by substantial losses from catastrophic events, including severe weather and the Baltimore Bridge disaster. The syndicate’s report revealed a profit of $185.1 million, a decrease from the $252.6 million reported a year earlier.
According to the report, the underwriting result experienced a 7.5 percentage point deterioration in the current accident year net loss ratio. This was primarily driven by a surge in claims related to catastrophes, a stark contrast to the relatively tranquil conditions of 2023. The syndicate was also hit with a gross loss of $197.8 million tied to the Dali cargo ship collision and the subsequent collapse of the Baltimore bridge, resulting in a net loss of $24 million.
Severe weather events further contributed to the elevated claims. Multiple storms, flooding, and hurricanes combined to increase losses. Hurricane Helene alone accounted for a net loss of $67.2 million, while Hurricane Milton resulted in a net loss of $26.6 million.
Despite the substantial claims, the syndicate mentioned that its exposure was somewhat mitigated through reinsurance protections. The combined ratio worsened to 91.6 from 86.6 the previous year. On a more positive note, gross written premiums increased, reaching $1.94 billion, up from $1.79 billion, driven by rate increases, new business, and reinstatement premiums from catastrophe events. Outward reinsurance premiums, which include reinstatement premiums, rose 4% compared to the 8% increase in gross written premiums.
Prior accident year deterioration was attributed to losses stemming from the Russia-Ukraine war and severe weather events in Italy. However, these losses were partially offset by favorable non-event experience and adjustments in actuarial assumptions, which particularly benefited the marine, energy, and property segments.
The broader Lloyd’s market also faced considerable losses in 2024. Hurricanes, floods, and man-made disasters led to a near tripling of major claims. Lloyd’s reported a pretax profit of £9.63 billion ($12.48 billion), a decrease from £10.66 billion in 2023. Gross written premiums increased to £55.55 billion from £52.15 billion, while the combined ratio deteriorated to 86.9 from 84.0.
Lloyd’s CEO John Neal commented that the market remained resilient amid mounting challenges, citing sustained profitability despite geopolitical uncertainty, severe weather occurrences, and evolving risks such as artificial intelligence.
