TOP NEWS: Lloyd’s of London has best underwriting result in 17 years

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Lloyd’s of London on Thursday hailed a ‘superb set of results’ for the insurance market in the first half of the year, with both profit from underwriting and investment return improving.

Pretax profit was £4.9 billion in the six months that ended June 30, up 26% from £3.9 million a year before.

Gross written premium was £30.6 billion, up 4.4% from £29.3 billion a year before, and underwriting profit was £3.1 billion, up 24% from £2.5 billion.

The insurance market’s combined ratio improved to 83.7% in the recent half-year from 85.2% a year before and the underlying combined ratio to 80.6% from 81.6%. A combined ratio below 100% indicated profit on underwriting, so the lower the better.

Lloyd’s said the combined ratio in the first half was its best since 2007.

Investment return was £2.1 billion, up from £1.8 billion a year before. Lloyd’s said this was thanks to strong fixed income returns and growth in equity markets.

Lloyd’s said its balance sheet is strong, with a central solvency ratio of 520%, up from 503% a year before. Market-wide, the ratio was 206%, down a notch from 207%.

‘The first half of 2024 has presented a superb set of results for the Lloyd’s market which represents a combination of disciplined underwriting, smart organic growth and real strength in the Lloyd’s balance sheet,’ commented Chief Executive Officer John Neal.

‘This is good news for both investors in the Lloyd’s insurance marketplace and our customers as we continue to support them in an increasingly risky world.’

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