Forecasts & Results

Blenheim syndicate 5886: 2019 Result and Updated 2020 Forecast

Posted 17.02.2022 – Quick takes

Blenheim has announced its result for the 2019 year of account for its syndicate 5886 and has also released an updated forecast for the 2020 year of account.

The 2019 result of  a loss of -3.99% of capacity is below the midpoint of the previous forecast range, which was set between -6.0% and +1.0% of capacity.

The 2020 forecast range has worsened, to a range of between 0% and +7.5% of capacity (midpoint +3.75%). The previous forecast range was between 0 and +10% (midpoint +5%) of capacity.

Alpha comment

It is disappointing that the 2019 year of account has closed below the most recent forecast mid-point and that the mid-point for the 2020 year of account has slightly worsened too. Since the syndicate only commenced underwriting in 2017, the lack of reserves (and diversification in the early years) hampers its ability to smooth its results during this period of heightened catastrophe activity. 2021 will be another difficult year for Blenheim’s Property Reinsurance book, but hopefully the Property D&F portfolio (c40% 2021 SBF) and the other sub-classes (c26% of the 2021 SBF) that the syndicate has added in recent years will allow the syndicate to deliver a profit.

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