Neal hails success in Lloyd's massive turnaround as it swings back to profit
Specialist re/insurance market Lloyd's of London has returned to earnings growth despite bracing billions of dollars in claims in the first half of the year, representing a "substantial turnaround" in its profitability and performance from the pandemic-hit 2020.
The market clocked in a profit of £1.4 billion for H1 2021, compared with a loss of £0.4 billion in the first half of 2020. Lloyd's credited substantially improved underwriting result of £1 billion for the turnaround this year.
The market reported that it paid out 80 percent or nearly £10 billion of the claims resulting from the COVID-19 pandemic during the period.
The gross written premiums increased to £20.5 billion in H1 2021, from £20 billion in H1 2020, due to an increase in premium rates, high customer retention and new growth for the first time in four years.
Lloyd's recorded a combined ratio of 92.2 percent, a solid improvement from last years' 110.4 percent.
The corporation highlighted its "strong capital and solvency positions", with net resources increasing by £2.6 billion to £36.5 billion, reinforcing the strength of Lloyd’s balance sheet with central solvency and market solvency ratios of 218 percent and 170 percent, respectively.
Commenting on the results, John Neal (pictured), chief executive of Lloyd’s, said: “In an uncertain world Lloyd’s remains acutely focused on supporting our customers when they need us, and in the first half of 2021 we have paid out nearly £10bn in claims to help the recovery of businesses and economies globally.
“Against this backdrop, Lloyd’s has successfully repositioned the market for sustainable, profitable growth as evidenced in this strong set of financial results. I am encouraged to see that market performance has improved as a result of our ongoing remediation efforts. This, as well as our exceptionally strong balance sheet, brings Lloyd’s performance in line with our global peer group."
He added: “Alongside performance, we are making great strides on all our strategic priorities which focus on improving the culture in the market, the Future at Lloyd’s digital transformation, and sustainability, climate and inclusion which underpin our purpose.”
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