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Insurance carriers
Syndicate 33
Hiscox can trace its origins in the Lloyd’s
Market to 1901. Today, Hiscox Syndicate 33
is one of the largest composite syndicates at
Lloyd’s, and has an A.M. Best syndicate rating
of A (Excellent). Syndicate 33 underwrites
a mixture of reinsurance, major property and
energy business, as well as a range of specialty
lines including contingency, technology and
media risks among others. The business is
mainly property-related short-tail business;
there is little exposure to aviation or motor
business. Syndicate 33 trades through the
Lloyd’s worldwide licences and ratings. It also
benefits from the Lloyd’s brand. Lloyd’s has
an A (Excellent) rating from A.M. Best, an A+
(Strong) from Standard & Poor’s, and an A+
(Strong) rating from Fitch.
The geographical and currency splits are shown
to the right. One of the main advantages of
trading through Lloyd’s is the considerably
lower capital ratios that are available due
to the diversification of business written in
Syndicate 33 and in Lloyd’s as a whole. For
2010 Syndicate 33 has a capital requirement
ratio of approximately 43% of Syndicate
capacity. The size of the Syndicate is increased
or reduced according to the strength of the
insurance environment in its main classes.
At present, Hiscox owns approximately 72.5%
of the Syndicate, with 27.5% being owned by
third party Lloyd’s Names. Hiscox receives
a fee and a profit commission of approximately
17.5% of profit on the element it does not own.
For the 2010 year of account, Syndicate 33’s
capacity has been increased from £750 million
to £1 billion, primarily to reflect the
strengthening US Dollar.
The chart to the right shows the gross premiums
written of Syndicate 33 for the last nine years.
28
Insurance carriers Hiscox Ltd Report and Accounts 2009
Syndicate 3624
Syndicate 3624 is a wholly owned syndicate
which began underwriting for the 2009 year of
account with an underwriting capacity of £80
million. Syndicate 3624 writes certain business
lines including the US E&O account written
through the Hiscox underwriting agency in
Armonk, New York and a 50% quota share of
Syndicate 33’s TMT business written by Hiscox
owned underwriting agencies. Syndicate 3624
has a capital requirement ratio of 69% of
syndicate capacity. Total underwriting capacity
of Syndicate 3624 has been increased to £150
million for the 2010 year of account.
Syndicate 33
Gross premiums written (£m)
1,200
1,000
800
600
400
200
0
Syndicate 33
2009 Gross premiums written geographical split (%)
4% Asia
567
2001
7% Europe
55% North America
722
2002 2003 2004 2005 2006 2007 2008
6% UK
827
844
830
Rest of world 28%
1,024
994
885
1,034
2009