Atrium Underwriting's Lloyd's syndicates have revised their estimate of losses from this year's hurricanes to $25m.
This is $9m less than the original forcast of $34m for syndicates 570 and 609.
Atrium also announced the latest 2002 year of account and 2003 pure year of account forecasts for the two syndicates which are managed by its managing agent subsidiary, Atrium Underwriters Ltd., and for its underwriting portfolio of participations in selected syndicates, including 570 and 609.
All forecasts are shown as a percentage return on allocated capacity after deduction of standard personal expenses, but before members' agents' fees.
Managed syndicates 570 and 609
• Total managed capacity for 2005 £365m
• Managed syndicates' forecasts unchanged or improved for 2002 and 2003 years of account
• Net cumulative losses from hurricanes Charley, Frances and Ivan now estimated at $25m, below our initial estimate of $34m
o Total current net losses including Jeanne are estimated at $29m
Underwriting portfolio
• Improvements in mid-point forecasts for 2002 and 2003 confirm expectations of strong returns from these years of account
o Mid-point 2002 forecast improves to 14.2%
o Mid-point 2003 forecast improves to 15.5%
• Net losses from hurricanes will be recognised in the second half group results – current estimate $18m
• Portfolio capacity broadly unchanged for 2005 at £158m (2004 - £159m) with RBC 42% (2004 – 40%)
Nick Marsh, chief executive said: "With 2002 and 2003 forecasts improving and estimates for hurricane losses within previous expectations Atrium enters the current renewals season in good shape.
"I am confident that there remain opportunities for sound underwriting profits heading into 2005. “
