Ascot’s Lloyd’s Syndicate 1414 saw its profit decline in 2024, hit by heavy catastrophe losses, including storm activity and the Baltimore Bridge disaster. The syndicate reported a profit of $185.1 million, down from $252.6 million a year earlier.
The underwriting result was affected by a 7.5 percentage point deterioration in the current accident year net loss ratio, driven by a surge in catastrophe claims compared to a relatively quiet 2023. The syndicate recorded a gross loss of $197.8 million from the Dali cargo ship collision and the Baltimore bridge collapse, with a net loss of $24 million.
Severe weather contributed to higher claims, with multiple storms, floods and hurricanes adding to losses. Hurricane Helene accounted for a net loss of $67.2 million. Hurricane Milton resulted in a net loss of $26.6 million. Despite the elevated claims, the syndicate said its exposure was mitigated through reinsurance protections. The combined ratio worsened to 91.6 from 86.6 the previous year.
Meanwhile, gross written premiums increased to $1.94 billion from $1.79 billion, supported by rate increases, new business and reinstatement premiums from catastrophe events. Outward reinsurance premiums, including reinstatement premiums, rose 4%, compared to an 8% increase in gross written premiums.
Prior accident year deterioration was driven by losses from the Russia-Ukraine war and severe weather in Italy. These losses were partially offset by favourable non-event experience and actuarial assumption adjustments, particularly benefiting marine, energy, and property segments.
The broader Lloyd’s market also faced heavy losses in 2024, with hurricanes, floods, and man-made disasters leading to a near tripling of major claims. Lloyd’s reported a pretax profit of £9.63 billion ($12.48 billion), down 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 said the market remained resilient despite mounting challenges, citing continued profitability through geopolitical uncertainty, severe weather events, and evolving risks such as artificial intelligence.
