Press Article: Charles Taylor targets profit at Standard syndicate 1884 in 2018
14 March 2018
Charles Taylor has targeted a profitable 2018 at the Standard Club syndicate 1884 as it moves beyond the start-up phase.
The syndicate, managed through Charles Taylor’s Management Services division, was established in 2015.
While the syndicate’s business plans up until the end of last year anticipated losses due to start-up costs, this year’s business plan anticipates the syndicate will move beyond the start-up phase to deliver profitable underwriting.
The prospect of Charles Taylor adding further managed syndicates to its portfolio appear unlikely in the near term owing to conditions in the Lloyd’s market.
Charles Taylor’s group chief executive, David Marock, told Insurance Day: “The Lloyd’s market continues to be challenging. There has been some uplift in rates but it has slowed down new entrant syndicates in the market.
“We see [the addition of further turnkey syndicates] as being on a slower trajectory than other growth areas of the business, such as insurtech,” he said.
In its earnings statement Charles Taylor said it had seen some turnover in its managing agency staff last year, and was working “to ensure that its systems and operations meet or exceed the governance standards required to win management contracts to manage further Lloyd’s insurance vehicles”.
The company’s insurtech business, which sits within its Insurance Support Services division, saw strong progress in 2017.
Notably, its delegated authority management solution was chosen by Lloyd’s as its preferred provider, and will now be rolled out to the estimated 6,000 coverholders across the world who work with the Lloyd’s market.
“We believe the insurtech space is a growing one, and that we are well placed to be a winner in that space. We believe the investments we have made so far are paying off,” he said.
Marock said insurtech was one of the areas in which the company will continue to expand.
“We are at the start of the runway. We will continue to invest in that space.”
The group’s Adjusting Services business grew revenue by 14.5%, following a year which saw it enter the high-net-worth adjusting market through the acquisition of Criterion Adjusters.
Across all its businesses, Charles Taylor saw revenue grow nearly 25% to £210.8m ($294.2m) in 2017, with adjusted profit before tax up 3.5% to £15.3m.
Orginally posted on Insurance Day.