Kiln updates on syndicates

Lloyd's insurer R J Kiln has released the final results for its managed syndicates for the 2006 year of account, updated forecasts for the 2007 year of account and initial forecasts for the 2008 year of account.

Kiln said the 2006 year of account closed considerably ahead of the company’s expectations, as set out in the November 2008 estimates, in respect of all four Kiln syndicates underwriting on the 2006 year of account. "While Kiln had anticipated good results, the change was due primarily to a strong investment performance in the fourth quarter and reserve releases on the closed years of account," it said.

The 2007 year of account forecasts remained relatively stable for syndicates 510, 557 and 308. The forecast has deteriorated slightly on Syndicate 807 due to increased claims activity in the property account.

Kiln’s initial forecasts on the non-life syndicates for the 2008 year of account reflect an eventful year, set against a challenging economic backdrop, the company said.

"The first half of the year was characterised by falling rates, and Q1 was also subject to a spate of large property losses that were exacerbated by high commodity prices. Rates began to improve again towards the end of the year, in the wake of Hurricanes Ike and Gustav in the US. Kiln has yet to determine the longer term effects of the economic crisis and, in light of the large amounts of premium yet to be earned for the year, these figures should be regarded as preliminary only and are subject to no significant catastrophes or other adverse developments occurring in the future, which may have a detrimental effect on the Kiln portfolio," said Kiln.

R J Kiln chief executive, Charles Franks, said: “I am delighted to report an excellent performance by Kiln for the 2006 year of account. All syndicates have delivered a profit which is well beyond the range of our last forecast. Although we have certainly benefited from the movement in rates of exchange, this should also be recognised as the result of high quality, disciplined underwriting by the Kiln teams.”