Lloyd's CEO highlights strong growth and balance sheet in H1 2024

Lloyd's reported pre-tax profits of £4.9 billion in the first half of 2024, up from £3.9 billion in the same period in 2023. The London-based insurance and reinsurance market has revealed that this performance has been driven by systematic underwriting and rising premiums.

The market recorded a net profit of £3.1 billion in the period, up from £2.5 billion in the first half of 2023. Lloyd's underwritten clothing increased by 6.5% to £30.6 billion, driven by a combination of a 5% increase in volume. and a 1.5% price increase. Foreign exchange had a negative impact on growth by 2.1%.

Lloyd's combined ratio improved to 83.7%, compared to 85.2% in the same period last year, marking the market's best short-term result since 2007. The combined base rate also improved, reaching 80.6%, compared to 81.6% in the first quarter in 2023.

Lloyd's investment profits rose to £2.1 billion, from £1.8 billion a year earlier, supported by strong performance in the fixed income and equities markets.

Efforts to reduce business costs at Lloyd's led to a further reduction in the attritional loss ratio to 49.2%, down from 50.9% in the first quarter of 2023. The cost ratio also fell slightly to 34.5% from 35.4% last year.

Lloyd's also reported a strong capital position, with an average solvency ratio of 520%, up from 503% at the end of 2023. The solvency ratio for the entire market stood at 206%, almost unchanged from 207% at the end of last year, underscoring the discipline of the capital market.

The company's financial stability has been recognized by rating agency AM Best, which upgraded Lloyd's financial strength rating to A+ (superior) and its long-term issuer credit rating to AA- (superior), with a stable outlook.

John Neal, CEO of Lloyd's, said the results reflect strong underwriting, organic growth, and the strength of Lloyd's balance sheet. He noted that the results will benefit both market investors and customers navigating an increasingly risky environment.

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