Lloyd's publishes preliminary financial results

Lloyd’s, the world’s leading insurance and reinsurance marketplace, has unveiled its preliminary performance highlights for the full year 2023 (FY23).

The comprehensive financial results will be disclosed on March 28, alongside insights into expectations for Lloyd’s full-year 2024 outcomes.

Here are the key FY23 metrics:

• Gross written premium: Expanded by 11.6% to £52.1 billion (FY 2022: £46.7 billion), driven by 4% organic growth coupled with a 7% price adjustment.
• Combined ratio: Demonstrated notable improvement, dropping 7.9 percentage points from the previous year to 84.0% (FY 2022: 91.9%).
• Attritional loss ratio: Maintained stability at 48.3% (FY 2022: 48.4%), while the expense ratio remained consistent at 34.4% (FY 2022: 34.4%).
• Investment return: Realized at £5.3 billion (FY 2022: loss of £3.1 billion), reflecting the favourable interest rate landscape and the unwinding of the Mark to Market accounting approach on fixed income portfolios.
• Underwriting profit: Surged by £3.3 billion to £5.9 billion (FY 2022: £2.6 billion).

Burkhard Keese, Lloyd’s chief financial officer, commented: “The year 2023 marked a remarkable period for the Lloyd’s market. We sustained robust, profitable growth and performance, culminating in our strongest underwriting outcome in recent memory and a resilient balance sheet that instills confidence amid uncertainty.

“We remain steadfast in our commitment to underwriting and capital prudence, eagerly anticipating the comprehensive unveiling of our results and strategic strides later this month.”

In other recent news, a Marsh McLennan Lloyd’s facility to support Ukraine’s export trade amid ongoing conflict has been expanded. The “Unity” facility now covers all non-military goods, including key Ukrainian exports like iron ore, steel, electrical equipment, and animal fodder.

Lloyd’s CEO John Neal had voiced support for the Marsh initiative, saying new partnerships between the public and private sector, including the expansion of the Unity facility, are “the hallmark of the Lloyd’s market, bringing insurance experts and policymakers together to solve complex risks.”

What are your thoughts on this story? Please share them in the comments.