MS Amlin Underwriting Limited Syndicate 2001 announces FY21 results

Simplified operating model and underwriting discipline drives return to profitability

MS Amlin Underwriting Limited, the Lloyd’s global (re)insurer and Managing Agent of Syndicate 2001 (“MS AUL”, “the Company” or “the Syndicate”), today announces its full year results for the twelve months ending 31 December 2021.

Key Highlights*	2021 £m	2020 £m
Gross written premiums	1,339.7	1,370.0
Claims ratio	59%	76%
Expense ratio	43%	43%
Combined ratio	102%	119%
Investment return	36.1	63.5
Profit/(loss) for the financial year	7.9	(178.1)
Profit/(loss) Excluding discontinued classes	105.0	(92.1)

The return to profitability for the Company is set against the backdrop of a year which saw a large number of natural catastrophe events, estimated to be within the top five most costly ever for insured losses. The Syndicate had exposure to the Uri Texas freeze, European Floods, Hurricane Ida and US Tornadoes. Despite these financial headwinds, the Company saw a positive swing of £186m to deliver a profit of £7.9m against a loss of £178.1m in 2020.  Additionally it saw improvements in Claims Ratio during 2021, 59% for the year from 76% in 2020, and a strong performance from its continued classes of business.

The focus on the underlying underwriting discipline is also evidenced in the improved Combined Ratios of the two core divisions of Insurance and Reinsurance, which delivered 91% (FY20 101%) and 92% (FY20 135%) respectively.

The momentum behind the financial, operational and strategic performance of the Company during 2021 was also driven by the restructuring actions completed during the period which enabled the Syndicate to simplify its operating model, enhance strategic and operational oversight, and allow for a focus on its core markets of reinsurance and insurance.

The programme of measures taken following the strategic review in 2019 has included: ceasing underwriting of several lines of business; the reorganisation of MSI’s international business; transferal of some support functions and activities to MS AUL and a new executive and senior management team.

As the Syndicate looks to grow its profitability over the coming years, it will continue to explore a variety of initiatives to manage costs and its capital base, whilst focusing on improving the quality of the existing portfolio of risks.

As part of the ongoing improvement on profitability, post period end, the Company entered into a split reinsurance to close (RITC) contract of the UK property and casualty portfolio of the 2019 and prior years of account with RiverStone International. The RITC became effective on 1 January 2022. This will also improve operational simplification.

The Syndicate has also taken advantage of profitable business produced by ITMA, a specialist US based MGA, acquired in 2021.

Johan Slabbert, CEO of MS Amlin Underwriting Limited, commented: “These results are tangible evidence that the recent years of careful restructuring and remediation are starting to bear fruit. Whilst we have reached our journey to profitability thanks to the renewed strength of our foundation, the simplification of our model and underwriting discipline, it is the potential of this business that is most exciting. We are only at the beginning of what we can achieve, and today we step closer to being able to deliver consistently again for our clients, people, broker partners and our shareholder.

I’m proud of our people for their hard work and commitment, and we will continue to build on our progress over the coming years as we look to improve the profitability of our existing portfolio and grow into a sustainable, future-proof and client-first business.”

* On a UK GAAP basis