A comprehensive report on how the Lloyd’s market is performing will soon be published by the Lloyd’s Market Association (LMA) and Insurance Capital Markets Research (ICMR).
In its announcement, the LMA said: “The full report will delve into performance of syndicates and segments of the market by size and line of business, as well as benchmarking the market’s performance against liquid specialty (re)insurance investment and catastrophe bond indices.”
The resource, which aims to take a deep dive into the market’s financials, will become available shortly after the publication of all the syndicates’ accounts later this month.
“Lloyd’s results this year have been exceptional, and this collaborative report with ICMR underscores our commitment to providing our members with valuable insights into Lloyd’s performance,” LMA finance & risk director Paul Davenport commented.
Meanwhile, in a snapshot analysis ahead of the report, Davenport said: “While underwriting performance improved to an 84% combined ratio (91.9% in 2022), the biggest change was in syndicates’ investment returns.
“This showed a positive return of £5.3 billion following the £3.1 billion loss of last year, which itself was more of a mark-to-market loss due to the change in interest rate environment. This has now returned to positive territory and is of similar quantum to underwriting returns.”
The early analysis examined the historical key drivers of Lloyd’s returns – underwriting and syndicate investments – and how they have contributed to Lloyd’s aggregate result over time.
“The importance of syndicate investment returns to Lloyd’s overall result is set to continue with higher risk free rates than generally seen over the last decade,” Davenport highlighted while also pointing out the first time in the last decade that the estimated weighted average cost of capital has been exceeded by Lloyd’s.
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