Lloyd’s of London, a leading global insurance and reinsurance marketplace, reported solid results for the first half of 2024 with a profit before tax of £4.9bn, up from £3.9bn in the same period last year.
The market maintained disciplined performance, achieving an underwriting profit of £3.1bn, a £0.6bn increase from H1 2023’s £2.5bn.
Gross written premium rose by 6.5% to £30.6bn (excluding a 2.1% foreign exchange impact), driven by 5.0% volume growth and 1.5% price increases, according to Lloyd`s.
The key figures:
- Gross written premium of £30.6bn
- Underwriting profit of £3.1bn
- Combined ratio of 83.7%
- Underlying combined ratio of 80.6%
- Investment return of £2.1bn
- Result before tax of £4.9bn
- Total capital, reserves and subordinated loan notes of £43.5bn
- Central solvency ratio of 520%
- Market-wide solvency ratio of 206%
H1 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
John Neal, CEO, Lloyd’s
“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”, John Neal says.
The combined ratio improved to 83.7%, compared to 85.2% in H1 2023, marking the best interim result since 2007. The underlying combined ratio also saw improvement, reaching 80.6%, down from 81.6%.
Investment returns totaled £2.1bn, an increase from £1.8bn in H1 2023, supported by strong fixed income performance and robust equity market growth.
Efforts to boost performance and lower operational costs led to a 1.7% reduction in the attritional loss ratio to 49.2%, while the expense ratio dropped to 34.5%, down from 35.4% in 2023.
Lloyd’s central solvency ratio strengthened to 520%, up from 503% at the end of 2023, with a market-wide solvency ratio of 206%, highlighting strong capital management.
Lloyd’s financial strength was affirmed by AM Best’s upgrade of its rating to A+ (superior), with a long-term issuer credit rating increase to AA- (superior) and a stable outlook.
by Yana Keller
