Lloyd’s announces half-year financials

Lloyd’s announces half-year financials | Insurance Business Australia

Lloyd’s announces half-year financials

“Strong” is how insurance marketplace Lloyd’s describes its financial results for the first half of 2021.

Here’s how Lloyd’s fared in the half-year (HY) period:

Metric

HY 2021 result

HY 2020 result

Gross written premium

£20.5 billion

£20 billion

Profit/(loss) before tax

£1.4 billion

£(0.4 billion)

Underwriting profit/(loss)

£1 billion

£(1.3 billion)

Combined ratio

92.2%

110.4%

“In an uncertain world, Lloyd’s remains acutely focussed on supporting our customers when they need us, and in the first half of 2021 we have paid out nearly £10 billion in claims to help the recovery of businesses and economies globally,” commented chief executive John Neal when Lloyd’s published its 54-page results report Thursday morning in the UK.

“Against this backdrop, Lloyd’s has successfully repositioned the market for sustainable, profitable growth as evidenced in this strong set of financial results. I am encouraged to see that market performance has improved as a result of our ongoing remediation efforts. This, as well as our exceptionally strong balance sheet, brings Lloyd’s performance in line with our global peer group.”

It was highlighted that the combined ratio improved mainly because of notable reductions in attritional loss and expense ratios. Meanwhile, net resources grew 7.6% to £36.5 billion. Also, according to Neal, it’s the first time in four years that the market demonstrated growth on both a rate and exposure basis while delivering on key metrics.

The CEO added: “Alongside performance, we are making great strides on all our strategic priorities which focus on improving the culture in the market, the Future at Lloyd’s digital transformation, and sustainability, climate, and inclusion which underpin our purpose.”

For the six months ended June 30, 2021, Lloyd’s paid £9.4 billion of claims, including those related to COVID-19.