Forecasts & Results
MAP Syndicates 2791 & 6103 2020 Year of Account Result & Updated 2021 Forecast
Posted 23/02/2023 – Quick takes
MAP has announced its result for the 2020 Year of Account for its syndicates 2791 & 6103 and has also released an update for the 2021 year of account
Syndicate 2791
The 2020 profit of 2.0% of capacity is above the midpoint of the previous forecast range, which was set between -5.0% and +2.5% of capacity.
The 2021 forecast range has improved, to a range between 0.0% and +5.0% (midpoint +2.5%) of capacity. The previous forecast range was between -2.5% and +5% (midpoint +1.25%) of capacity.
Syndicate 6103
The 2020 loss of -18.0% of capacity is marginally below the midpoint of the previous forecast range, which was set between -20.0% and -15.0% of capacity.
The 2021 forecast is unchanged at between -12.5% and -5.0% of capacity, midpoint -8.8% of capacity.
Alpha Comment
As a reminder, when MAP issues forecasts for syndicate 2791, it only includes any contribution from the prior years’ reserves at 36 months when the year of account closes. A release of £23m from the prior years has enabled the final 2020 result to be close to the top of the previously reported range. In a year of significant major US catastrophes, this is a reasonable outcome.
It is disappointing that SPA 6103 has made a loss of -18%. As the SPA reinsures to close into the host syndicate 2791, it has no benefit from any prior years reserves to help offset the large US catastrophe losses and no reinsurance programme to protect it against these losses.
