First Tokio Marine Kiln forecasts to reflect Covid-19 effects released

First Tokio Marine Kiln forecasts to reflect Covid-19 effects released

(PRESS RELEASE) LONDON, 21-May-2020 — /EuropaWire/ — Insurance and reinsurance syndicates firm Tokio Marine Kiln Syndicates Ltd. (TMK) has announced it released forecasts for the 2018 and 2019 years of account for its two non-aligned syndicates. TMK’s forecast ranges have been extended on Syndicate 510 to reflect the uncertainty surrounding the impact of Covid-19 global pandemic.

Brad Irick, Chief Executive Officer of Tokio Marine Kiln, said:

“These latest forecasts are the first from TMK to reflect the effects of Covid-19. Although TMK has not been immune to impact of the pandemic, our underwriting teams are continuing to emphasise strict underwriting discipline, whilst enabling our clients to get back on line and support the economy.

“The pandemic has demonstrated the critical role that the insurance industry plays in supporting people, businesses and industries, and we are committed to supporting our clients through this fluid situation, ensuring that all valid claims are paid fairly and swiftly.”

The previous forecasts, which were announced in February 2020, have been rebased to the same exchange rates (US$1.24 and C$1.77). The forecasts set out below take into account all managing agency and Lloyd’s charges.

 2018 year of account forecasts
 Syndicate Capacity £m Forecast range as at May 2020 % Previous forecast range as at February 2020 %
 510  1,136 -6.9 to 0.6 -5.4 to -0.4
 557  35 -3.0 to 2.0 -3.8 to 1.2
  • The movement in the forecast range for Syndicate 510 is driven by the impact of Covid-19.
  • Improvements in Syndicate 557 are driven by favourable movements on the closed years.
 2019 year of account forecasts
 Syndicate Capacity £m Forecast range as at May 2020 % Previous forecast range as at February 2020 %
 510 1,133 -11.4 to -1.4 0.7 to 5.7
 557 32 9.9 to 14.9 16.8 to 21.8
  • Syndicate 510’s forecast result is reflective of the current Covid-19 pandemic, suffering losses in relation to business disruption and event cancellations.
  • Deterioration in 557 driven by initial Covid-19 loss estimates.

The forecast for Syndicate 308 on the 2017 YOA (which remains open) is unchanged.

ENDS

Media contact

Laura Guerin

+44 (0)20 7767 2111

SOURCE: Tokio Marine Kiln

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