TMK 510's underwriting profit down 43% as aviation loss widens

By Aidan Gregory

March 20 - (The Insurer) - Tokio Marine Kiln Syndicate 510’s underwriting result fell by almost half in 2024 driven by large losses in aviation and special risks, according to its annual report and accounts published on Thursday.

TMK’s flagship Lloyd’s syndicate reported an underwriting result of 87.7 million pounds ($113.5 million) last year, down 43.3% from 154.7 million pounds in 2023. The syndicate’s gross written premium last year was 1.81 billion pounds, versus 1.79 billion pounds in 2023, while its combined ratio was 93.2%, a deterioration from 86.5% the previous year.

In its accounts, TMK said the sharp drop in underwriting profit was driven by large losses in its aviation and special risks businesses.

The aviation division made an underwriting loss of 60.3 million pounds, compared to a loss of 33.8 million pounds in 2023, which TMK blamed on “an increase in provisions for potential exposures arising from the Russian invasion of Ukraine”, as well as “adverse developments on the prior years of account within the aerospace and excess liability accounts”.

Russia’s invasion of Ukraine was also cited by TMK as a reason for the 8.1 million pound underwriting loss in Syndicate 510’s marine and energy division, alongside its exposure to the Baltimore bridge collapse and hurricanes Milton and Helene.

Special risks, which provides coverage for a range of specialised perils such as political risks and trade credit, suffered a loss of 35 million pounds in 2024, down from a profit of 16.3 million pounds the previous year, which TMK said reflects “heightened claims activity across all years of account”.

Property and motor, Syndicate 510's largest division with 916.7 million pounds of premium, improved its underwriting result to 127 million pounds, up 18.5% from 2023's result.

TMK said that although it expects the market to soften in 2025, Syndicate 510 will target growth in specialty reinsurance, where it plans to hire a dedicated underwriter, as well as marine and energy, cyber and enterprise risk.

Cyber and enterprise risk was a bright spot for Syndicate 510 last year, with its operating result more than doubling to 13.2 million pounds.

Syndicate 510’s stamp capacity has been hiked to 2.25 billion pounds for 2025 following TMK’s decision to fold its sister Syndicate 1880 into Syndicate 510.