Tokio Marine Kiln Lloyd's syndicates hit by COVID-19 losses

The latest Lloyd's of London syndicate results and forecasts of Tokio Marine Kiln reflect the effects of COVID-19 having suffered losses in relation to business disruption and event cancellations.

Chief executive Brad Irick said that the company is working to pay all valid claims "fairly and swiftly".

TMK Syndicates have released updated forecasts for the 2018 and 2019 years of account for its two non-aligned syndicates. TMK has extended the forecast ranges on Syndicate 510 to reflect the uncertainty surrounding the impact of COVID-19, taking into account all managing agency and Lloyd’s charges.

For the 2019 year of account, Syndicate 510, with capacity of £1.13 billion, has a forecast range as at May 2020 of -11.4 to -1.4 percent, which compares with a previous forecast range as at February 2020 of 0.7 to 5.7 percent.

Syndicate 557, with capacity of £32 million, has a forecast range as at May 2020 of 9.9 to 14.9 percent, which compares with a previous forecast range as at February 2020 of 16.8 to 21.8 percent.

Syndicate 510’s forecast result reflects losses in relation to business disruption and event cancellations, while Syndicate 557's results show deterioration driven by initial COVID-19 loss estimates.

The forecast for Syndicate 308 on the 2017 YOA, which remains open, is unchanged.

For the 2018 year of account, Syndicate 510 with capacity of £1.136 billion, has a forecast range as at May 2020 of -6.9 to 0.6 percent, compared with a previous forecast range as at February 2020 of -5.4 to -0.4 percent. TMK said the movement in the forecast range for Syndicate 510 is driven by the impact of COVID-19.

Syndicate 557, with capacity of £35 million, has a forecast range as at May 2020 of -3.0 to 2.0 percent, compared with a previous forecast range as at February 2020 of -3.8 to 1.2 percent. The improvements in Syndicate 557 are driven by favourable movements on the closed years.

Irick, CEO of Tokio Marine Kiln, said: “These latest forecasts are the first from TMK to reflect the effects of Covid-19. Although TMK has not been immune to the impact of the pandemic, our underwriting teams are continuing to emphasise strict underwriting discipline, whilst enabling our clients to get back on line and support the economy.

“The pandemic has demonstrated the critical role that the insurance industry plays in supporting people, businesses and industries, and we are committed to supporting our clients through this fluid situation, ensuring that all valid claims are paid fairly and swiftly.”