Lloyd’s, which was recently recognised among the top 40 global reinsurers, released an official statement saying the growth was due to existing syndicates (6.5%), new syndicates (2.2%), foreign currency movements (4.1%) and risk-adjusted rate increases (9.1%).
The insurance leader also said major claims represented 3.6% of losses in the first half of the year, while underwriting profit rose year-on-year to £2.5 billion, up from £1.2 billion in the prior year.
The marketplace has disclosed robust financial performance, with a notable combined ratio of 85.2%, marking a significant improvement from the still-healthy 91.4% reported the previous year. Lloyd’s has highlighted that this improvement underscores its ongoing advancements in underwriting performance.
For the first half of the year, Lloyd’s has posted a profit before tax of £3.9 billion, a remarkable turnaround from the £1.8 billion loss recorded in H1 2022. This announcement is accompanied by a total capital figure of £40.8 billion, a slight uptick from last year’s £40.2 billion. The market emphasizes that its central solvency ratio of 438% and market-wide solvency ratio of 194% exemplify its commitment to capital discipline and resilience across various market conditions.
Lloyd’s CEO, John Neal, in response to the results, stated: “We’re pleased to be reporting a very strong set of results for the year so far – with profitability in both our underwriting and investments; a leading combined ratio, strong premium growth and a bulletproof balance sheet that means we can support customers through a range of shocks and scenarios.”
He added: “Combined with the market’s progress in driving sustainable performance, digitalisation and showing leadership from climate transition to culture change – these results set us up to deliver on our positive financial outlook for 2023.”
