Apollo Syndicates 1969, 1971 & SPA 6133 2019 result and updated 2020 Forecast

Apollo has announced its result for the 2019 year of account for syndicates 1969, 1971 and SPA 6133 and also released an updated forecasts for the 2020 year of account.

Syndicate 1969
The 2019 result of a profit of +5.8% of capacity is slightly above the midpoint of the previous forecast range, which was set at between +2.5% and +7.5% of capacity, midpoint +5%.

The 2020 forecast range is unchanged at between -1.5% and +3.5% of capacity, midpoint +1.0%.

Syndicate 1971
The 2019 result of a profit of +1.8% of capacity is below the midpoint of the previous forecast range, which was set at between 0% and +5.0% of capacity, midpoint +2.5%.

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

Syndicate 6133
The 2019 result of a loss of -7.8% of capacity is at the better end of the previous forecast range, which was set at between -12.5% and -7.5% of capacity, midpoint -10.0%.

The 2020 forecast range has worsened to between -36.5% and -29.0% of capacity, midpoint -32.75%. The previous forecast range was between -32.5% and -25.0% of capacity, midpoint -28.75%.

Alpha comment

These are the final year’s results that affect Alpha members. Alpha withdrew its support for the Apollo syndicates after the 2019 year of account due to its concerns over the Apollo management and its approach to reserving.

On the specific syndicate results:

1969 – This is the welcome first profit reported for this syndicate since 2015 and yet again suffers from a shortfall on the prior years’ reserves.

1971 – Although the result is a little below the previously reported midpoint, this is a reasonable result for the first year of this long tail syndicate, given the considerable shortfall in its projected income.

6133 – Having deteriorated its forecasts during 2020, it is pleasing to see a slight improvement in the final result, despite this catastrophe SPA having been hit hard by large losses in both of its first two years of operation.