QBE Syndicate 2999 Annual Report and Accounts 2009

Report of the directors
of the managing agent
The directors of QBE Underwriting Limited (QUL), the managing agent for Syndicate 2999, present the syndicate’s annual report and audited financial
statements for the year ended 31 December 2009.
This annual report is prepared using the annual basis of accounting as required by regulation 5 of the Insurance Accounts Directive (Lloyd’s Syndicate and
Aggregate Accounts) Regulations 2008 (the 2008 Regulations).
Principal activity
Syndicate 2999 is an umbrella syndicate with John Neal as Active Underwriter. For 2009, it comprised the following five actively trading sub-syndicates:
Sub-syndicate Managing Director Classes of business
566 Jonathan Parry Reinsurance: property; aviation; casualty treaty; personal accident; and marine
1036 Colin O’Farrell Marine insurance: hull; energy; liability; specie; cargo; war; and political risks
1886 John Neal Non-marine: general liability; professional and financial lines; motor; specialty; and marine liability
2000 Bernard Mageean Non-marine property insurance: property direct and facultative; property binders; and accident and health
5555 Emilio Di Silvio Aviation insurance: general aviation; airlines; and products and airports
Business review and future developments
For the 2009 financial year Syndicate 2999 produced a combined operating ratio of 85.9% (2008 79.7%) and an insurance profit for the financial year
of £133.7 million (2008 £166.4 million), analysed by sub-syndicate as follows:
2999 2009 2008
566 1036 1886 2000 Group 5555 Total Total
£000 £000 £000 £000 £000 £000 £000 £000
Gross written premium 372,682 352,771 135,186 93,918 – 85,928 1,040,485 852,267
Net earned premiums 300,410 191,416 91,785 72,373 – 71,716 727,700 588,404
Net claims (159,887) (88,021) (45,729) (23,180) – (64,378) (381,195) (316,865)
Acquisition costs (45,720) (52,619) (29,489) (26,542) – (17,906) (172,276) (154,267)
Net underwriting profit 94,803 50,776 16,567 22,651 – (10,568) 174,229 117,272
Profit/(loss) on exchange (13,559) 10,067 170 1,293 – 626 (1,403) 99,591
Other net operating expenses (21,304) (22,322) (7,344) (14,602) – (4,429) (70,001) (97,147)
Investment return 5,264 7,678 2,510 14,590 57 814 30,913 46,638
Total profit/(loss) for the year 65,204 46,199 11,903 23,932 57 (13,557) 133,738 166,354
Claims ratio 53.2% 46.0% 49.8% 32.0% – 89.8% 52.4% 53.9%
Combined operating ratio 80.0% 79.9% 89.8% 87.1% – 120.0% 85.9% 79.7%
The reinsurance to close premium received from Syndicate 566, 2000 and previous years of account of £67.5 million is treated as gross and earned
premium in the above table under sub-syndicate 566. This was the last open year of Syndicate 566 as a separate syndicate.
The investment return shown as 2999 Group income above relates to US trust funds, and is not allocated by sub-syndicate.
On analysis of the account on an underwriting year basis, the 2009 year produced a profit in the financial year of £25.0 million, relative to a loss of
£12.2 million for the 2008 year, reflecting an improved trading environment. The overall 2009 financial profit of £133.7 million was achieved following a
strong prior year performance and resultant reserve releases.
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QBE Syndicate 2999
Annual report 2009