The Lloyd’s market has released its interim results, including a combined ratio of 85.2%.
Lloyd’s has announced its results for the first six months of 2023, with an underwriting profit of £2.5bn ($3.1bn), more than double the £1.2bn posted in the same period last year.
Overall, profit before tax was £3.9bn for the first half of this year, recovering from a £1.8bn loss in the same portion of 2022.
The market’s combined ratio improved 6.2 percentage points to reach 85.2%, from 91.4% a year ago, demonstrating continued progress in underwriting performance.
The Lloyd’s market also revealed an investment return of £1.8bn, bouncing back from a £3.1bn loss in the same period of 2022.
Lloyd’s CEO, John Neal said: “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.”
Lloyd’s said it continued to support profitable underwriting growth, with gross written premium increasing 21.9% to £29.3bn.
Premium growth was driven by growth from existing syndicates (6.5%), new syndicates (2.2%), foreign currency movements (4.1%) and risk-adjusted rate increases (9.1%).
Major claims represented 3.6% of losses in the first half of the year, the market revealed.
Lloyd’s balance sheet continued to strengthen with a central solvency ratio of 438% and market-wide solvency ratio of 194%, which the market said showed its capital discipline and resilience through a range of market conditions.
The market produced these snapshot numbers:
• Gross written premium of £29.3bn (HY 2022: £24.0bn)
• Underwriting profit of £2.5bn (HY 2022: £1.2bn)
• Combined ratio of 85.2% (HY 2022: 91.4%)
• Net investment return of £1.8bn (HY 2022: loss of £3.1bn)
• Profit before tax of £3.9bn (HY 2022: loss of £1.8bn)
• Total capital of £40.8bn (FY 2022: £40.2bn)
• Central solvency ratio of 438% (FY 2022: 412%)
• Market-wide solvency ratio of 194% (FY 2022: 181%)
“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,” Neal added.