The Challenge
A Lloyd's syndicate with £1.2B in gross written premium struggled with capital allocation across 15 lines of business. Manual portfolio analysis took weeks, limiting ability to respond to market opportunities. The syndicate's combined ratio was 104%, and capital efficiency was poor.
The Solution
Deployed Portfolio Optimization Agent to analyze capital deployment, identify accumulation risks, and recommend rebalancing strategies. The system uses machine learning to predict line profitability and optimize capacity allocation in real-time.
Implementation
Integrated with Lloyd's Crystal, internal underwriting systems, and claims platforms. Aggregated 10 years of historical performance data across all lines.
Built portfolio optimization algorithms considering line correlation, capital requirements, and profitability targets. Backtested against 5 years of actual results.
Created executive dashboard showing real-time portfolio health, accumulation alerts, and rebalancing recommendations updated daily.
Results
Return on equity increased from 8.5% to 10.4% through better capital allocation
Improved from 104% to 96.5% by exiting unprofitable lines
Generated 35% more premium per unit of capital deployed
Portfolio analysis available on-demand vs. quarterly manual reviews
"We've transformed from reactive portfolio management to proactive capital optimization. The competitive advantage is measurable."