Lloyd’s booms back to £2.3bn profit after heavy 2020 loss

Lloyd’s, the insurance and reinsurance marketplace for commercial, corporate and specialty risk solutions, has returned to profitability after plunging to a massive loss of £0.9 billion a year ago, thanks to the “decisive action” taken in recent years to improve performance, as well as favourable trading conditions to achieve premium growth.

The marketplace reported its finest results for the last six years, generating an overall profit of £2.3 billion and a combined ratio of 93.5% for the financial year 2021 - a major turnaround from the loss of £0.9 billion and 110.3% CR seen in 2020.

Its drive to improve performance also resulted in an uptick in its gross written premiums, which rose to £39.2 billion in 2021, compared with £35.5 billion a year ago.

The results came despite continuing cat losses.

Lloyd’s settled £19.9 billion of gross claims in 2021. It also paid £2.9 billion to customers impacted by COVID-19 (86% of claims notified to date).

Lloyd’s chief executive officer John Neal (pictured) said: “I’m pleased to see the market return to profitability following the decisive action taken in recent years to improve performance. The market’s underwriting discipline will enable sustainable profitability in the years to come, coupled with a balance sheet that can support our ambition to grow profitably.”

Did you get value from this story?  Sign up to our free daily newsletters and get stories like this sent straight to your inbox.