REG - Lloyds Of London - Notice of Results

Lloyds BankingAnnouncement

07/09/2023 08:15

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RNS Number : 6983L  Lloyds Of London  07 September 2023

Lloyd's reports £3.9bn profit at Half Year 2023

 

07 Sep 2023

 

·      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%)

 

Lloyd's, the world's leading marketplace for insurance and reinsurance, today
announced a strong set of results for the first six months of 2023, with an
underwriting profit of £2.5bn (HY 2022: £1.2bn), an investment return of
£1.8bn (HY 2022: £3.1bn loss) and a profit before tax of £3.9bn (HY 2022:
loss of £1.8bn).

 

The market's combined ratio improved 6.2 percentage points to 85.2% (HY 2022:
91.4%) demonstrating continued progress in underwriting performance.

 

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.

 

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.

 

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.

 

"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."

 

 

ENDS

 

 

 

Notes to editors:

 

1.   For further detail on any forward-looking statements please refer to
the 2023 Half Year Results (https://www.lloyds.com/halfyearresults2023) .

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.

3.   Total capital includes capital, reserves and subordinated loan notes
as reported in the Pro Forma Balance Sheet.

4.   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.

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.

6.   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).

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

 

 

Enquiries to: pressoffice@lloyds.com (mailto:pressoffice@lloyds.com)  

 

About 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 insurance companies, over 200 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.

 

We're working to build solutions for the most current and prevalent threats.
As Chair of the Insurance Task Force for HM King Charles III's Sustainable
Markets Initiative, Lloyd's is bringing the industry together to insure the
transition to net zero. Our research community is pooling expertise from
across the industry to provide cutting edge insight on systemic risks from
climate change to cyber security.

 

And through our digital-led strategy, The Future at Lloyd's
(https://www.lloyds.com/about-lloyds/future-at-lloyds) , we're making it
easier and cheaper to place, price and process cover in the Lloyd's market.

 

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