Lloyd’s results for 1H 2023: underwriting profit of £2.5bn

Lloyd’s of London announced the results for the 1H 2023, with an underwriting profit of £2.5bn (2022: £1.2bn), an investment return of £1.8bn (2022: £3.1bn loss) and a profit before tax of £3.9bn (2022: loss of £1.8bn).

Lloyd’s continued to support profitable underwriting growth, with gross written premium increasing 21.9% to £29.3bn 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’s combined ratio improved 6.2 percentage points to 85.2% (2022: 91.4%) demonstrating continued progress in underwriting performance.

A combined ratio is a measure of an insurer’s underwriting profitability based on the ratio of net incurred claims plus net operating expenses to net earned premiums. A combined ratio of 100% is break even (before taking into account investment returns). A ratio less than 100% is an underwriting profit.

Lloyd’s balance sheet continued to strengthen with a central solvency ratio of 438% and market-wide solvency ratio of 194%, showing the market’s capital discipline and resilience through a range of market conditions.

John Neal - CEO, Lloyd’s

We’re pleased to be reporting a 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

John Neal – CEO, Lloyd’s

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 Lloyd’s positive financial outlook for 2023.

The key figures* reported in Lloyd’s 2023 half year results are:

The key figures* reported in Lloyd’s 2023 half year results are:
  • 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%)

* Foreign exchange rates may materially fluctuate from the rates prevailing at 30 June 2023 (GBP1 = USD1.27, EUR1.17). Premiums, claims and investment income are translated at the average exchange rate for the period to 30 June 2023 (GBP1 = USD1.23, EUR1.14).

Record revenue driven by price and volume growth

22 consecutive quarters of positive price improvement
22 consecutive quarters of positive price improvement

Sustainable performance supports a digital, inclusive and purpose-led market

Performance

  • Consistent profitable performance with combined ratio of 85.2% 
  • Strong, profitable growth with 22% rise in premiums to £29.3bn. The risk consists of 4% FX, 9% price and 9% growth
  • Exceptionally strong capital position, with increased central solvency ratio at 438% and increased market-wide solvency ratio at 194%
  • Solid investment yields generating total return of £1.8bn
  • Faster Claims Payment solution available for over 80% of delegated authority business

Lloyd’s strong financial strength ratings are A+ (Strong) stable outlook with Standard & Poor’s, A (Excellent) positive outlook with A.M. Best, AA- (Very Strong) stable outlook with Fitch Ratings and AA- (Very Strong) stable outlook with Kroll Bond Rating Agency.

Robust solvency and positive outlook 

Robust solvency and positive outlook 

Lloyd’s is the world’s leading marketplace for insurance and reinsurance. Through the collective intelligence and expertise of the market’s underwriters and brokers, we’re sharing risk to create a braver world.

We’re made up of more than 50 leading insurance companies, over 200 registered Lloyd’s brokers and a global network of over 4,000 local coverholders

The Lloyd’s market offers the resources, capability, and insight to develop new and innovative products for customers in any industry, on any scale, in more than 200 territories.

Behind the Lloyd’s market is the Corporation: an independent organisation and regulator working to maintain the market’s successful reputation and operation.

Yana Keller   by Yana Keller