Reinsurance marketplace Lloyd’s of London announced its financial performance for 2023 year, alongside guidance for the full-year 2024 expectations.
Lloyd’s gross written premium increased of 11.6%, reaching £52.1 billion, up from £46.7 billion in FY 2022. This rise consists of 4% organic growth and a 7% change in pricing.
The marketplace’s combined ratio experienced a 7.9% improvement compared to the previous year, settling at 84% (down from 91.9% in FY 2022).
- Gross Written Premium increased by 11.6% to £52.1bn reflecting 4% organic growth and 7% price change.
- The market’s combined ratio improved 7.9 percentage points from the prior year to 84%. The attritional loss ratio remained stable at 48.3%, while the expense ratio remained flat at 34.4%.
- Investment return of £5.3bn.
- Underwriting profit increased £3.3bn to £5.9bn.
The attritional loss ratio remained nearly unchanged at 48.3%, compared to 48.4% in FY 2022, and the expense ratio was consistent at 34.4%.
2023 was an outstanding year for the Lloyd’s reinsurance market. We continued to see sustainable, profitable growth and performance, leading to our best underwriting result in recent history and a rock solid balance sheet that gives us and our stakeholders confidence in an uncertain environment.
Burkhard Keese, Lloyd’s CFO, Member of the Supervisory Bord and Audit Committee Chair of Commerzbank AG
An investment return of £5.3 billion was recorded, a significant shift from a £3.1 billion loss in FY 2022. This change reflects the effects of a higher interest rate environment and the reversal of the Mark to Market accounting treatment on fixed income portfolios.
Underwriting profit surged by £3.3 billion, reaching £5.9 billion, up from £2.6 billion in FY 2022.
“We will maintain our focus on underwriting and capital discipline and we look forward to announcing our full results and strategic progress later this month“, said Burkhard Keese, Lloyd’s CFO.
Lloyd’s will announce its final 2023 Full Year financial results on 28 March 2024 following completion of the relevant audit and assurance work and approval by the Council of Lloyd’s.
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.
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.
“We’re made up of more than 50 leading reinsurance companies, over 380 registered Lloyd’s brokers and a global network of over 4,000 local coverholders”.
Behind the Lloyd’s market is the Corporation: an independent organisation and regulator working to maintain the market’s successful reputation and operation.
by Yana Keller
