REG - Lloyds Of London - Lloyd's of London FY22 Results

Lloyds BankingAnnouncement

23/03/2023 08:15

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RNS Number : 9900T  Lloyds Of London  23 March 2023

Lloyd's reports strong profitable growth in 2022 results

 

Lloyd's, the world's leading marketplace for commercial, corporate and
specialty risk solutions, today announced a strong set of financial results
for the Full Year 2022 (FY2022).

 

The market's profitable growth continued with Gross Written Premium (GWP)
increasing by 19% to £46.7bn (FY2021: £39.2bn), including 4% volume growth.

 

Lloyd's focus on sustainable performance resulted in an underwriting profit of
£2.6bn (FY2021: £1.7bn) and a combined ratio of 91.9% - a 1.6 percentage
point improvement and the strongest result since 2015. In a year that saw
major losses contribute 12.7% to the combined ratio - including substantial
claims from the conflict in Ukraine and Hurricane Ian in the US - Lloyd's paid
out over £21bn to customers.

 

The attritional loss ratio improved again to 48.4% (FY2021: 48.9%) while the
expense ratio improved by 1.1 percentage points to 34.4% (FY 2021: 35.5%),
reflecting efforts to deliver strong performance and reduce the cost of doing
business at Lloyd's. With prices increasing by 8%, the Lloyd's market has now
seen 20 consecutive quarters of positive price improvement.

 

Mark-to-market accounting rules on fixed income investments led to an overall
loss of £0.8bn, however this loss is expected to reverse in the coming years
as assets reach maturity and benefit from favourable interest rates.

 

Lloyd's capital and solvency position continues to strengthen, with a central
solvency and market-wide solvency ratio of 412% and 181% respectively (2021:
388% and 177%). Net resources stood at £40.2bn despite the investment loss,
demonstrating the exceptional strength and resilience of Lloyd's balance
sheet.

 

John Neal, CEO of Lloyd's said: "This is an outstanding underwriting result
that follows several years of performance improvement, a comprehensive plan to
digitalise our market, steady and sustained progress on our culture and
purposeful action to help our industry and society manage the biggest
challenges of our time.

 

"Looking to 2023, Lloyd's expects strong premium growth to around £56bn, a
combined ratio below 95% and a total investment performance on our assets of
more than 3% - enabling us to support customers through the uncertain times
ahead."

 

The key figures reported in Lloyd's 2022 full year results are:

·    Gross written premiums of £46.7bn (2021: £39.2bn)

·    Underwriting profit of £2.6bn (2021: profit of £1.7bn)

·    Combined ratio of 91.9% (2021: 93.5%)

·    Loss before tax of £0.8bn (2021: £2.3bn profit)

·    Attritional loss ratio of 48.4% (2021: 48.9%)

·    Net investment loss of £3.1bn (2021: £0.9bn profit)

·    Net resources of £40.2bn (2021: £36.6bn)

·    Central solvency ratio of 412% (2021: 388%)

·    Market-wide solvency ratio of 181% (2021: 177%)

 

ENDS

 

Notes to editors:

 

1.    For further detail on any forward-looking statements please refer to
the 2022 Full Year Results (http://www.lloyds.com/fullyearresults2022) . 

2.    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. 

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

5.    Members' resources operate on a several basis and are only available
to meet each member's share of claims. Central assets are available at the
Council's discretion to meet the liabilities of any member on a mutual
basis. 

7.    Foreign exchange rates may materially fluctuate from the rates
prevailing at 31 December 2022 (£1 = US$1.20, £1 = €1.13). Premiums,
claims and investment income are translated at the average exchange rate for
the period to 31 December 2022 (£1 = US$1.24, £1 = €1.17)

8.    More news and information available from lloyds.com 
(https://www.lloyds.com/)  

 

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