Cathedral Underwriting – Syndicate 2010 Result and Forecasts - 29.02.08

Cathedral have announced Syndicate 2010’s result at 31 December 2007, the 2006 forecast and intention to make an early profit release on that year which will be made in dollars.
2005 year of account result

The 2005 year of account will close with a profit to Names of £22.7 million, before personal expenses. For a traditional Name on standard terms this equates to a profit of approximately 8.0% on allocated share after managing agent’s fee and profit commission, but before members’ agent’s fees.

2006 year of account result

The forecast 2006 year of account result is maintained at 15% to 20% of capacity. Cathedral intend to make an early release of some of this forecast profit as part of this year’s distribution. This is to be $44.7 million, or 9.0% on allocated share applying a rate of exchange of $1.99 to £1.

2007 year of account result

The 2007 year of account has performed satisfactorily to date, although this year still remains heavily on risk. The calendar year performance is reflected in the annual accounting numbers below and Cathedral will provide an initial year of account forecast within the Q2 QMR.

2007 calendar year result (annual accounting result)

The 2007 calendar year result for Syndicate 2010 is a profit of approximately £43.5 million. The combined ratio for the 2007 calendar year is 78.0% (including all managing agency related names’ personal expenses, except profit commission).