By Michael Jones

March 4 - (The Insurer) - Reserve uncertainty around Russia-Ukraine lessor claims has continued to affect Lloyd’s syndicate forecasts for Atrium 609, Dale 1729 and Tokio Marine Kiln 510, according to Argenta Holdings disclosures.

Atrium 609 has kept its 2021 year of account open due unresolved factors that resulted in too many variations to the reserves it has already booked.

“The decision has been made to leave this year of account open at 31/12/24, and until reserve sensitivity has normalised and a more confident estimate can be made of outstanding liabilities,” Argenta disclosed.

In March 2024, Syndicate 609 upped its ultimate gross reserves for Russia-Ukraine to 264.5 million pounds as at December 31, 2023, with this reducing to 84.5 million pounds net of reinsurance.

The 2021 YoA has been kept open for the second year in a row, with an unchanged profit forecast of 0.0% to 10% on its capacity of 624.85 million pounds.

Dale Syndicate 1729 reported an 11.7 percentage point deterioration in its profit forecast for the 2022 YoA to a 14% loss on its capacity of 209.89 million pounds.

The syndicate said the deterioration was associated with the “rapid payment of claims in relation to stranded aircraft in Russia”.

It said that the syndicate did retain some subrogation rights but these claims should generally be considered as final.

TMK 510 also disclosed an increase in reserve provisions associated with Russia-Ukraine aviation lessor claims, which reduced its profit forecast for the 2022 YoA by 4.9 points.

The Lloyd’s insurer set a midpoint profit forecast of 4.6% of its 1.5 billion pounds of capacity.

Last month Fidelis Insurance Group disclosed that its Q4 and full-year results would be affected by a $287.2 million net adverse development charge in its aviation and aerospace line of business. This charge related to 2021 and 2022 underwriting years affected by Russia-Ukraine aviation litigation.

Aircraft lessors AerCap, Avolon and DAE have also disclosed nine-figure settlements in recent months in relation to agreements with certain insurance companies.