AEGIS London nearly doubles profits in 2020 despite COVID-19 hit

Lloyd’s Syndicate 1225 managed by AEGIS Managing Agency (AEGIS London) increased its profits for the full year 2020 and improved its combined ratio despite COVID-19 losses and an active catastrophe season.

Its chief executive David Croom-Johnson attributed the "excellent" results to the syndicate's disciplined growth strategy and improving market conditions.

The Syndicate posted a UK GAAP profit of £60.3 million, up 94 percent on 2019’s figure of £31.1 million. Gross written premium of commissions was £707.9 million, an increase of 8 percent on 2019’s £653.2 million.

AEGIS’ Syndicate’s combined ratio for 2020 was 91.6 percent, including a £12.3 million net COVID-19 loss provision, which is an improvement of 5.2 points on 2019’s ratio of 96.8 percent.

The 2018 year of account closed with a profit of £39.8 million.

Croom-Johnson said: “This is an excellent outcome for our syndicate and builds on our strategy of disciplined profitable growth. Results like this are, in reality, the fruit of many years’ labour. We’ve been steadily building a well-diversified book of business that’s anchored by long-term partnerships and sensible underwriting. This is a continuation of a long run of profitable results.

“We pride ourselves on having what may be one of the best combined ratios in the Lloyd’s market. It’s been achieved by taking advantage of improving market conditions and keeping a close eye on costs while growing our electronic trading division and the highly attractive business it brings from around the world."

He added: “Our exposure to Covid-19 losses has been limited to date and has allowed us to focus on forging sustainable partnerships with our coverholders and relationships with brokers who value underwriters committed to fairness and transparency. That’s the AEGIS London way – and that’s why we’ve been able to prosper during these challenging times. It’s why we’ve been in the Lloyd’s market’s top quartile of performers over the last decade.

“Our long-term strategy remains unchanged: to respond to the needs of brokers, our clients and coverholders in the traditional Lloyd’s manner while bringing new business into the market via our award winning quote-and-bind platform Opal. Covid has only strengthened our belief that this is the way to approach London market business today.”

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