Heavy losses prompt "strategic review" of ProAssurance Lloyd's syndicate
Specialty insurance company ProAssurance Corporation is expecting to report a net loss of $9 million to $10.5 million from its London market business, prompting a "strategic review" of its Lloyd's syndicates.
ProAssurance is the majority capital provider for Lloyd's Syndicate 1729, which is managed by Dale Underwriting Partners. It was launched in 2013 with a six-year commitment of up to $200 million through 2019.
According to the company's preliminary results for the fourth quarter of 2018, its net income will be adversely impacted by mark-to-market losses on its equity trading portfolio which resulted in net realised losses of approximately $46 million, in line with the broader performance of the equity markets in the last quarter of the year.
The performance of the financial markets in the quarter will also contribute to a decline in its equity in earnings of unconsolidated subsidiaries which is estimate at approximately $3.3 million.
Moreover, the company's Lloyd’s Syndicates segment is expected to report a net loss in a range of between $9 million to $10.5 million, as opposed to its forecast of approximately $3.2 million during the third quarter.
ProAssurance said the additional losses are mostly attributable to Hurricane Michael. The company estimates its share of these net pre-tax losses to be approximately $6.8 million, net of reinstatement premiums.
“We are deeply disappointed in the performance of our investment at Lloyd’s and we will be reviewing all our strategic options regarding this investment in the coming months,” said ProAssurance’s chairman and chief executive officer Stan Starnes.
According to the preliminary estimates, the company's gross premiums written in the quarter will be in the range of $210 to $212 million and net earned premium for the quarter is expected to range from $201 million to $203 million.
It anticipate favourable loss development for the quarter will be in the range of $24 million to $26 million. The consolidated net loss ratio will be between 76 to 77 percent for the quarter, and consolidated combined ratio is expected to be in a range between 105.5 percent and 106.5 percent for the quarter.
Get all the latest re/insurance industry news with our daily newsletter - sign up here.
More of today's news
AXA unveils travel insurance via WeChat on Chinese New Year
Challenges of Lloyd’s digitisation via PPL ‘taken very seriously’
Aon seeks claims innovation via new insurtech partnership
Global Risk Partners swoops for six broking, three MGA businesses in UK
Costs of Townsville flood claims set to rise, says ICA
WR Berkley names new president of Vela
Chubb launches new media industry practice for the UK and Ireland
Download our latest whitepaper: 'Why Automation & AI Matters For Commercial Lines'
Already registered?
Login to your account
If you don't have a login or your access has expired, you will need to purchase a subscription to gain access to this article, including all our online content.
For more information on individual annual subscriptions for full paid access and corporate subscription options please contact us.
To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.
For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk
Editor's picks
Editor's picks
More articles
Copyright © intelligentinsurer.com 2024 | Headless Content Management with Blaze